Consider the terms: information, data, and knowledge.

From a statistical standpoint, list these

terms in terms of increasing usefulness in making decisions.
A. Information, data, and knowledge
B. Data, information, and knowledge
C. Knowledge, information, and data
D. Knowledge, data, and information

1. Suppose a survey is taken of 300 high school seniors. We would probably refer to this group as a
A. sample
B. population
C. system
D. process

2. A summary measure that is computed from a sample to describe a characteristic of the

population is called
A. a parameter B. a statistic
C. a population D. inferential statistics

3. A professor needs to select a volunteer for a project. Which of the following would not be an
example of a simple random sample?
A. He chooses a number between 00 and 99. The student whose phone number has the last two
digits closest to the one the professor has chosen is selected.
B. He chooses that individual whose name is first in alphabetical order
C. He puts all student names in a bowl, mixes them up, and selects one.
D. He has each student select a number between 0 and 99 and write it down. He then selects
the student whose number is closest to the last two digits of his social security number.

5. A summary measure that is computed from a population is called

A. a parameter B. a statistic

C. a population D. inferential statistics

6. You asked ten of your classmates about their weight. On the basis of this information, you
stated that the average weight of all students in your university or college is 142.6 pounds. This
is an example of:

A. descriptive statistics B. inferential statistics

C. a parameter D. a population
 7. When data are collected in a statistical study for only a portion or subset of all elements of
interest we are using

A. a sample B. A parameter.

C. A statistic D). A population

8. Which of the following is not the goal of descriptive statistics?

A. Summarizing data B. Displaying aspects of the collected data

C. Reporting numerical findings D. Estimating characteristics of the population

For numbers 9 – 28, choose from the following options,

A. True B. False

9. We could use descriptive statistics to make a forecast regarding future trends. B

10. Descriptive statistics transform data into information. A

11. Inferential statistics is the study and description of data that result from an experiment. B

12. Inferential statistics transform data into information. B

13. It is possible to use statistics to quantify the relationship between variables. A

14. The role of inferential statistics is to help us understand the characteristics of the sample. B

15. A professor is looking for a volunteer for a project. He chooses a number between 00 and 99.
The student whose phone number has the last two digits closest to the one the professor has
chosen is selected. This is an example of a simple random sample. A

16. The field of statistics can be roughly subdivided into two areas: descriptive statistics and
probability. B

17. A company employs 750 individuals. To ascertain how the employees feel regarding a pension
Bplan, 75 of the employees are surveyed. The proportion of the 75 employees who favor the
pension plan is a parameter. B

18. A professor is looking for a volunteer for a project. He chooses the individual whose name is first
in alphabetical order. This is an example of a simple random sample. B

19. Decisions are often based on incomplete information in an uncertain environment. A

20. “The price of Kodak digital camera is likely to be lower in three months than it is now”. This
statement contains language suggesting a spurious amount of certainty. B
21. One important principle that we must follow in the sample selection process is randomness. A

22. An audit of accounts receivable will generally be based on a population. B

23. Inferential statistics transforms information into knowledge. A

24. Descriptive statistics is a process, not just a numerical result. This process might include
estimation, hypothesis testing, analysis of relationships, or forecasting. B

25. A statistic is a descriptive measure computed from an entire population. B

26. A parameter is a descriptive measure computed from an entire population. A

27. Descriptive statistics is the study of a sample that enables us to make projections or estimates
about the population from which the sample is drawn. B

28. Statistics provides business functional areas with tools to make decisions under conditions of
uncertainty. A

29. If you rolled a 6-sided dice, what is the probability of rolling a 3?

o A. 

1/6

o B. 

2/3

o C. 

3/6

o D. 

5/6
 

30.If you flipped 2 coins, what is the probability that both will land on tails?

o A. 

2/4

o B. 

3/4

o C. 
 1/4

o D. 

0/4
 

31.If you rolled a 6-sided dice, what is the probability of rolling a even
number?

o A. 

2/6

o B. 

3/6

o C. 

4/6

o D. 

5/6
 
 
32.A lolly bag contains 2 red, 3 green and 2 blue gum balls. What is the
probability of selecting a green one?

o A. 

2/7

o B. 

5/7

o C. 

4/7

o D. 

3/7
 
 33. A card is selected from a deck of playing cards. What is the probability of
selecting a red card?

o A. 

1/4

o B. 

3/4

o C. 

0/2

o D. 

1/2
 
34.
What is the probability of selecting the diamond suit from a deck of playing
cards?

o A. 

1/4

o B. 

2/4

o C. 

3/4

o D. 

0/4
 

35.What is the probability of rock beating paper?

o A. 

0/3
 o B. 

1/3

o C. 

2/3

o D. 

1
 

36.If you flipped a coin, what is the probability it will land on heads?

o A. 

0/2

o B. 

1/4

o C. 

3/4

o D. 

1/2
 

37. here are red, yellow and green lollipops in a bag. What is the probability of
selecting a blue one?

o A. 

1/4

o B. 

o C. 

0/3

o D. 
 2/3
 

38. What is the probability of paper losing to scissors?

o A. 

0/3

o B. 

1/3

o C. 

2/3

o D. 

39. State whether the variable is discrete or continuous. The height of a player on a basketball team

A. discrete B. continuous

40. State whether the variable is discrete or continuous. The cost of a Statistics textbook

A. discrete B. continuous

41. The random variable x represents the number of cars per household in a town of 1000
households. Find the probability of randomly selecting a household that has less than two cars.

A. mean: 1.23; standard deviation: 0.44

B. mean: 1.30; standard deviation: 0.32
 C. mean: 1.30; standard deviation: 0.44
D. mean: 1.23; standard deviation: 0.66

42. A test consists of 10 multiple choice questions, each with five possible answers, one of which is
correct. To pass the test a student must get 60% or better on the test. If a student randomly guesses,
what is the probability that the student will pass the test?

A. 0.205 B. 0.006 C. 0.377 D. 0.060

43. Let X be the number of heads obtained in 40 independent tosses of a fair coin. Then X is a Binomial
random variable with

A. n = 40, p = 0

B. n = 0.5, p = 40

C. n = 40, p = 0.5

D. n = 100, p = 0

Correct answer (c): n = Number of repetitions = 40, p = probability of success in a single repetition = 0.5.

44. An experiment consists of repeatedly and independently tossing a fair die until a six is obtained. Let
X denote the number of throws before obtaining a six. Then

A. E[X] = 5

B. E[X] = 1/6 .

C. E[X] = 1

D. E[X] = 6

Correct answer A: X is Geometric 1 6 . Hence, E[X] = 1−1/6 1/6 = 5

45. Which histogram below most closely depicts a normal distribution?

46. Suppose you could take all samples of size 64 from a population with a mean of 12 and a standard
deviation of 3.2. What would be the standard deviation of the sample means?

A. 3.2 B. 0.2 C. 0.4 D. 0.3

47. Which of the following is NOT a characteristic of the sampling distribution of sample means (the
means of all possible samples of a given size)?

A. It is normally distributed.

B. It is centered on the population mean.

C. It has a standard deviation (σx¯) which is larger than the population standard deviation (σ).

D. It has a standard deviation (σx¯) which is smaller than the population standard deviation (σ).

48. Inferential statistics is so named because it allows us to examine a sample and make inferences
about

A. another sample.

B. an element of the sample.

C. the population from which the sample was taken.

D. none of the above.

49. A box of 8 marbles has 4 red, 2 green, and 2 blue marbles. If you select one marble, what is the
probability that it is a red or blue marble.

A. 0.60 B 0.75 C 6.00 D 0.80

50. A box of 8 marbles has 4 red, 2 green, and 2 blue marbles. If you select two marbles, without
replacement, what is the probability that you select a red marble followed by a green marble.

A. 0.0625 B 0.1250 C. 0.1429 D. 0.6000