MIDTERM EXAM

Course Title: Probability & Statistics for Business I (BCOR150)

Lecturers: Amira Dridi, Riadh Aloui, Amor Messaoud

Grade /100 Name: ………………..……………………………………...…….. Last Name: …………………………………………………………

Student ID: …………………………….…………………………………………………………………………………………………………………………

Group: ……….………………..………………....……………………………………...

Date: 2022
Working time: 120 minutes
Number of pages: 11
Instructions
- Books and notes are not permitted
- Calculators are allowed
- It is not allowed to use mobile phones
- It is not allowed to share writing instruments

Circle the correct answer and write your answers in the Table in the last page
1- Given below is the scatter plot of the price/earnings ratio versus earnings per share
of 20 U.S. companies. There appear to be a positive relationship between
price/earnings ratio and earnings per share.
a. True
b. False

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Scenario 1 - The following is the distribution of weekly wages of 600 workers in a factory:

2- Referring to Scenario 1, the median wage value is

a. 300
b. 911.38
c. 973.2
d. 1033.08

3- Referring to Scenario 1, the percentage of workers who earned weekly wages less
than 950 is
a. 39.33
b. 50
c. 59
d. 98.33

4- Referring to Scenario 1, the percentage of workers who earned weekly wages

between 950 and 1250 is
a. 39.33
b. 50
c. 59
d. 98.33

5- The percentage polygon is formed by having the lower boundary of each class
represent the data in that class and then connecting the sequence of lower
boundaries at their respective class percentages.
a. True
b. False

6- To determine the width of class interval, divide the number of class groups by the
range of the data.
a. True
b. False
7. Which scale is the simplest form of measurement?

a. Nominal
b. Ordinal
c. Interval
d. Ratio

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 8. Which of the following is NOT a possible value of the correlation coefficient?

e. negative 0.9
f. zero
g. positive 0.15
h. positive 1.5

Scenario 2 - Health care issues are receiving much attention in both academic and political
arenas. A sociologist recently conducted a survey of citizens over 60 years of age whose net
worth is too high to qualify for Medicaid. The ages of 25 senior citizens were as follows:

9- Referring to Scenario 2 and given that the variance of the sample is 94.96, the
skewness statistic for the age of the senior citizens is
a. -0.30
b. 0.0
c. 0.32
d. none of the above

10. Referring to Scenario 2, what type of shape does the distribution of the sample appear
to have?
a. Left-skewed
b. Bell shaped
c. Right-skewed
d. More peaked than the normal

11. Referring to Scenario 2, the coefficient of variation of the ages of the senior citizens
a. 10.50%
b. 13.16%
c. 22.13%
d. none of the above

12. Referring to Scenario 2, determine which of the following is the correct statement.
a. The mean age of senior citizens sampled is 73.5 years of age.
b. The middle 50% of the senior citizens sampled are between 65.5 and 73.0 years
of age.
c. One fourth of the senior citizens sampled are below 65.5 years of age.
d. All of the above are correct.

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 13. Which of the following is NOT sensitive to extreme values?
a. The standard deviation
b. The coefficient of variation
c. The range
d. The interquartile range

14. In exploratory data analysis, a boxplot can be used to illustrate the median, quartiles,
and extreme values.
a. True
b. False

15. For a monthly sales data of a compagny, the most effective graphical display is
a. Histogram
b. Scatter plot
c. Ogive
d. Time series chart
e. Pie chart
16- Suppose, you have data on house prices and the distance of each house from the city
center. You are interested in finding the link between “house price” and “distance of each
house from the city center”. Which is the most appropriate graphical display to assess the
relationship between the variables?

a. Two histograms, one for house prices, and other for distance of house from city center
b. Scatter plot
c. Pie chart
d. Stem and Leaf display
17. In a right-skewed distribution
a. the median is greater than the arithmetic mean.
b. the median equals the arithmetic mean.
c. the median is less than the arithmetic mean.
d. none of the above.
18. In a set of numerical data, the value for Q3 can never be smaller than the value for Q1
a. True
b. False

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19. The sample correlation coefficient between the DJIA (Dow Jones Industrial Average) and
the S&P 500 index is equal to 0.9724. You will expect an increase in the DJIA to be associated
with
a. no predictable change in the S&P 500 index.
b. an increase in the S&P 500 index.
c. a decrease in the S&P 500 index.
d. no predictable change in the DJIA.
20. For a large sample of blood pressure values, the mean is equal to 120 and the standard
deviation is 10. Assuming a bell shaped curve, which interval is likely to be about the interval
that contains 95% of the blood pressures in the sample?

a. 110 to 130
b. 100 to 140
c. 90 to 150
d. 50 to 190

21. Suppose that the average number of years to graduate at a university is 4 years, with a
standard deviation of 0.5 years. Assume a bell-shaped distribution for years to graduate. From
the Empirical Rule, what is a range of values that 99.7% of the students should graduate
between?

a. 2.5 to 5.5 years

b. 3.5 to 4.5 years
c. 3 to 5 years

22. Which of the following is a discrete quantitative (numerical) variable?

a. The Dow Jones Industrial average

b. The volume of water released from a dam
c. The distance you drove yesterday.
d. The number of employees of an insurance company

23.You have collected data on the responses to two questions asked in a survey of 40
college students majoring in business—What is your gender (Male = M; Female = F) and
What is your major (Accounting = A; Computer Information Systems = C; Marketing =
M). Which of the following is the best for presenting the data?
a. A contingency table.
b. A stem-and-leaf display

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 c. A time-series plot.
d. A Pareto chart.

24. For the data illustrated in the scatter plot below, what is the correlation?

a. 0.00
b. +1.00
c. -1.00
d. You cannot tell from the scatter plot.
Scenario 3 :This box plot shows the quiz grades in statistic class.

25. According to Scenario 3, The boxplot shows that the distribution is

a. Left skewed
b. Right skewed
c. Symmetric

26. According to Scenario 3, 50% of the students scored less then what value

a. 70
b. 86
c. 77
d. 58
e. 96

27. According to Scenario 3, Based on the previous qusetion, 25% of the students scored more
than
a. 70
b. 86
c. 77
d. 58
e. 96

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28. Which of the following characteristics does a histogram help you identify.
a. The shape of distribution
b. The approximate center of a distribution
c. The amount of spread in a distribution
d. All of these are true

29. A politician who is running for the office of governor of a state with 4 million registered
voters commissions a survey. In the survey, 54% of the 5,000 registered voters interviewed
say they plan to vote for her. The population of interest is:
a. the 4 million registered voters in the state.
b. the 5,000 registered voters interviewed.
c. the 54% who plan to vote for her.
d. all the residents of the state.

30. An example of Chebyshev's Theorem is:

a. for a bell shaped frequency distribution, at least 95% of the observations are in the
range of plus or minus two standard deviations from the mean.
b. for a negatively skewed frequency distribution, at least 95% of the observations are in
the range of plus or minus two standard deviations from the mean.
c. for any frequency distribution, at least 75% of the observations are in the range of plus
or minus two standard deviations from the mean.
d. for a positively skewed frequency distribution, at least 68% of the observations are in
the range of plus or minus two standard deviations from the mean.

31. A financial analyst’s sample of six companies’ book value were $25, $7, $22, $33, $18,
$15. The sample mean and sample standard deviation are (approximately):
a. 20 and 79.2 respectively
b. 20 and 8.9 respectively.
c. 120 and 79.2 respectively.
d. 20 and 8.2 respectively.
e. 120 and 8.9 respectively

32. The term test scores of 15 students enrolled in a Business Statistics class were recorded in
ascending order as follows: 4, 7, 7, 9, 10, 11, 13, 15, 15, 15, 17, 17, 19, 19, 20 After
calculating the mean, median, and mode, an error is discovered: one of the 15’s is really a 17.
The measures of central tendency which will change are:
a. the mean only
b. the mode only
c. the median only
d. the mean and mode
e. all three measures

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33. The distribution of the heights of students in a large class is roughly bell-shaped. Moreover,
the average height is 68 inches, and approximately 95% of the heights are between 62 and 74
inches. Thus, the standard deviation of the height distribution is approximately equal to:
a. 2
b. 3
c. 6
d. 9
e. 12

34. In general, which of the following statements is FALSE?

a. The sample mean is more sensitive to extreme values than the median.
b. The sample range is more sensitive to extreme values than the standard deviation.
c. The sample standard deviation is a measure of spread around the sample mean.
d. The sample standard deviation is a measure of central tendency around the median.
e. If a distribution is symmetric, then the mean will be equal to the median.

35. For a set of qualitative data, which among the following characteristics is meaningful:
a. The mean
b. The standard deviation
c. The frequency table
d. The median

36. Which of the following would indicate that a dataset is not bell-shaped?
a. The range is equal to 5 standard deviations.
b. The range is larger than the interquartile range.
c. The mean is much smaller than the median.
d. There are no outliers.

37. The term test scores of 15 students enrolled in a Business Statistics class were recorded in
ascending order as follows:
4, 7, 7, 9, 10, 11, 13, 15, 15, 15, 17, 17, 19, 19, 20.
After calculating the mean, median, and mode, an error is discovered: one of the 15’s is really
a 17. The measures of central tendency which will change are:
a. the mean only
b. the mode only
c. the median only
d. the mean and mode
e. all three measures

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38. Fill in the missing words to the quote: “Statistical methods may be described as methods
for drawing conclusions about ………………… based on computed …………………from
the ……………….”
a. statistics, samples, populations
b. populations, parameters, samples
c. statistics, parameters, samples
d. parameters, statistics, populations
e. populations, statistics, samples

39. An instructor decides to “curve grades” in a course depending upon the percentile measures.
Here are some summary statistics:

Which of the following is FALSE?

a. About 1/4 of the class received a score of 55 or less.
b. About 3/4 of the class received a score of 75% or less.
c. About 50% of the class received grades between 55 and 78.
d. This method always has half of the class at or above the median grade.

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 Please write your answers in the following Table
Question Answer Mark
N°
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Good Luck

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