REVIEW

1. What is the purpose of a scatter plot in statistics?

a) To display the distribution of a single variable
b) To show the relationship between two variables
c) To compare two or more groups
d) To summarize the data using summary statistics

Explanation: **b) To show the relationship between two variables.** A scatter plot is used to
visualize the relationship between two variables. Each data point represents a pair of values, and
the scatter plot helps identify patterns or trends in the data.

2. In a hypothesis test, what does the p-value represent?

a) The probability of making a Type I error
b) The probability of making a Type II error
c) The probability of observing the test statistic, assuming the null hypothesis is true
d) The probability of rejecting the null hypothesis when it is true

Explanation: **c) The probability of observing the test statistic, assuming the null hypothesis
is true.** The p-value is the probability of observing the test statistic (or a more extreme value)
given that the null hypothesis is true. It helps determine the strength of evidence against the null
hypothesis.

3. Which of the following is a measure of association between two categorical variables?

a) Pearson correlation coefficient
b) Spearman's rank correlation coefficient
c) Point-biserial correlation coefficient
d) Phi coefficient

Explanation: **d) Phi coefficient.** The Phi coefficient is used to measure association
between two binary (categorical) variables. It is similar to Pearson's correlation coefficient but is
specifically designed for binary variables.

4. What type of probability is based on past data or observations?

a) Theoretical probability
b) Empirical probability
c) Subjective probability
d) Conditional probability

Explanation: **b) Empirical probability.** Empirical probability is based on observed data or

past occurrences. It involves calculating the probability of an event based on its frequency of
occurrence in a sample or population.

5. Which statistical test is used to compare the means of three or more independent groups?
a) Student's t-test
b) Paired t-test
 c) ANOVA (Analysis of Variance)
d) Chi-squared test

Explanation: **c) ANOVA (Analysis of Variance).** ANOVA is used to compare the means
of three or more independent groups to determine if there are statistically significant differences
among them.

6. In a chi-squared test of independence, what is the null hypothesis?

a) There is no relationship between the two variables
b) There is a relationship between the two variables
c) The two variables have the same mean
d) The two variables have the same standard deviation

Explanation: **a) There is no relationship between the two variables.** In a chi-squared test of
independence, the null hypothesis states that there is no relationship between the two categorical
variables being studied. The alternative hypothesis suggests that there is a relationship.

7. What is the purpose of a box plot in statistics?

a) To display the distribution of a single variable
b) To show the relationship between two variables
c) To compare two or more groups
d) To summarize the data using summary statistics

Explanation: **c) To compare two or more groups.** A box plot, also known as a box-and-
whisker plot, is used to compare the distribution of a numerical variable across different
categories or groups. It provides a visual summary of the central tendency, spread, and
variability of the data within each group.

8. Which of the following is NOT a measure of central tendency?

a) Mean
b) Median
c) Mode
d) Range

Explanation: **d) Range.** Range is a measure of variability that indicates the difference
between the largest and smallest values in a dataset. Mean, median, and mode are measures of
central tendency that describe the center or typical value of a distribution.

9. In a hypothesis test, what is the significance level (α) commonly set to?
a) 0.01
b) 0.05
c) 0.10
d) 0.25

Explanation: **b) 0.05.** The significance level (α) in hypothesis testing is commonly set to
0.05, which means that there is a 5% chance of rejecting the null hypothesis when it is actually
true. This value is widely accepted in many fields as a standard threshold for statistical
significance.

10. What is the formula for calculating the interquartile range (IQR)?
a) \( Q3 - Q1 \)
b) \( Q2 - Q1 \)
c) \( Q3 - Q2 \)
d) \( Q1 + Q3 \)

Explanation: **a) \( Q3 - Q1 \).** The interquartile range (IQR) is calculated as the difference
between the third quartile (Q3) and the first quartile (Q1). It represents the spread of the middle
50% of the data and is a measure of variability that is less sensitive to outliers than the range.

11. Which of the following is a measure of association between two continuous variables?
a) Phi coefficient
b) Point-biserial correlation coefficient
c) Pearson correlation coefficient
d) Chi-squared test

Explanation: **c) Pearson correlation coefficient.** The Pearson correlation coefficient, also
known as Pearson's r, measures the strength and direction of the linear relationship between two
continuous variables. It ranges from -1 to 1, where -1 indicates a perfect negative linear
relationship, 0 indicates no linear relationship, and 1 indicates a perfect positive linear
relationship.

12. Which of the following probability distributions is appropriate for modeling the number of
successes in a fixed number of independent Bernoulli trials?
a) Normal distribution
b) Poisson distribution
c) Binomial distribution
d) Exponential distribution

Explanation: **c) Binomial distribution.** The binomial distribution is used to model the
number of successes in a fixed number of independent Bernoulli trials, where each trial has only
two possible outcomes (success or failure).

13. What is the central limit theorem (CLT) used for?

a) To find the expected value of a sample
b) To calculate confidence intervals
c) To describe the distribution of sample means
d) To estimate population parameters

Explanation: **c) To describe the distribution of sample means.** The central limit theorem
states that the distribution of sample means approaches a normal distribution as the sample size
increases, regardless of the shape of the population distribution. It is used to describe the
distribution of sample means and justify the use of inferential statistics.
14. How many different 4-digit numbers can be formed using the digits 0, 1, 2, 3, 4 without
repetition?
a) 120
b) 240
c) 360
d) 480

Explanation: **a) 120.** To form a 4-digit number without repetition from the given digits,
we have 5 choices for the first digit (as 0 cannot be the first digit) and then 4 choices for the
second digit, 3 choices for the third digit, and 2 choices for the fourth digit. Thus, the total
number of arrangements is (5 times 4 times 3 times 2 = 120).

15. In how many ways can 5 different books be arranged on a shelf?

a) 120
b) 240
c) 480
d) 720

Explanation: **a) 120.** The number of ways to arrange 5 different books on a shelf is given
by the factorial of 5, denoted as \(5! = 5 X 4 X 3 X 2 X 1 = 120\).

16. A box contains 5 red balls, 4 blue balls, and 3 green balls. If 3 balls are drawn at random
without replacement, what is the probability that all of them are red?
a) 1/44
b) 5/33
c) 1/22
d) 5/22

Explanation: **c) 1/22.** The probability of drawing a red ball on the first draw is 5/12, on the
second draw is 4/11, and on the 3/10. By the multiplication rule of probability, the overall
probability is 5/12 X 4/11 X 3/10 = 1/22.

17. If the probability of event A is 0.4 and the probability of event B is 0.5, what is the
probability of both events A and B occurring if they are independent?
a) 0.2
b) 0.3
c) 0.4
d) 0.5

Explanation: **a) 0.2.** If events A and B are independent, the probability of both events
occurring is the product of their individual probabilities. Therefore, P(A) X P(B) = 0.4 X 0.5 =
0.2
18. How many numbers are there between 99 and 1000, having at least one of their digits 7?

Solution:
Numbers between 99 and 1000 are all three-digit numbers.
Total number of 3 digit numbers having at least one of their digits as 7 = (Total numbers of
three-digit numbers) – (Total number of 3 digit numbers in which 7 does not appear at all)
= (9 × 10 × 10) – (8 × 9 × 9)
= 900 – 648
= 252

19. How many 5-digit telephone numbers can be constructed using the digits 0 to 9, if each
number starts with 67 and no digit appears more than once?

Solution:
Let ABCDE be a five-digit number.
Given that the first two digits of each number are 6 and 7.
Therefore, the number is 67CDE.
As repetition is not allowed and 6 and 7 are already taken, the digits available for place C are 0,
1, 2, 3, 4, 5, 8, 9, i.e. eight possible digits.
Suppose one of them is taken at C, now the digits possible at place D is 7.
Similarly, at E, the possible digit is 6.
Therefore, the total five-digit numbers with given conditions = 8 × 7 × 6 = 336.

20. Find the number of permutations of the letters of the word ALLAHABAD.

Solution:
Given word – ALLAHABAD
Here, there are 9 objects (letters) of which there are 4As, 2 Ls and rest are all different.
Therefore, the required number of arrangements
= 9!/(4! 2!)
= (1 × 2 × 3 × 4 × 5 × 6 × 7 × 8 × 9)/ (1 × 2 × 3 × 4 × 1 × 2)
= (5 × 6 × 7 × 8 × 9)/2
= 7560

21. In how many of the distinct permutations of the letters in MISSISSIPPI do the four Is not
come together?

Solution:
Given word – MISSISSIPPI
M–1
I–4
S–4
P–2

Number of permutations = 11!/(4! 4! 2!) = (11 × 10 × 9 × 8 × 7 × 6 × 5 × 4!)/ (4! × 24 × 2)

= 34650
We take that 4 I’s come together, and they are treated as 1 letter,
∴ Total number of letters=11 – 4 + 1 = 8
⇒ Number of permutations = 8!/(4! 2!)
= (8 × 7 × 6 × 5 × 4!)/ (4! × 2)
= 840
Therefore, the total number of permutations where four Is don’t come together = 34650 – 840 =
33810

22-23. A committee of 3 persons is to be constituted from a group of 2 men and 3 women. In

how many ways can this be done? How many of these committees would consist of 1 man and 2
women?

Solution:

Given,
Men = 2
Women = 3
A committee of 3 persons to be constituted.

Here, the order does not matter.

Therefore, we need to count combinations.

There will be as many committees as combinations of 5 different persons taken 3 at a time.

Hence, the required number of ways = 5C3
= 5!/(3! 2!)
= (5 × 4 × 3!)/(3! × 2)
= 10

Committees with 1 man and 2 women:

1 man can be selected from 2 men in 2C1 ways.
2 women can be selected from 3 women in 3C2 ways.
Therefore, the required number of committees = 2C1 × 3C2
= 2 × 3C1
=2×3
=6

24. Determine the number of 5 card combinations out of a deck of 52 cards, if there is exactly
one ace in each combination.

Solution:
Given a deck of 52 cards
There are 4 Ace cards in a deck of 52 cards.
According to the given, we need to select 1 Ace card out of the 4 Ace cards
∴ The number of ways to select 1 Ace from 4 Ace cards is 4C1
⇒ More 4 cards are to be selected now from 48 cards (52 cards – 4 Ace cards)
∴ The number of ways to select 4 cards from 48 cards is 48C4
Number of 5 card combinations out of a deck of 52 cards if there is exactly one ace in each
combination = 4C1 × 48C4
= 4 × [48!/(44! 4!)]
= 4 × [(48 × 47 × 46 × 45 × 44!)/ (44! × 24)]
= 4 × 2 × 47 × 46 × 45
= 778320

25. A group consists of 4 girls and 7 boys. In how many ways can a team of 5 members be
selected if the team has
(i) no girls
(ii) at least one boy and one girl
(iii) at least three girls

Solution:
Given,
Number of girls = 7
Number of boys = 7

(i) No girls
Total number of ways the team can have no girls = 4C0 × 7C5
= 1 × 21
= 21

(ii) at least one boy and one girl

1 boy and 4 girls = 7C1 × 4C4 = 7 × 1 = 7
2 boys and 3 girls = 7C2 × 4C3 = 21 × 4 = 84
3 boys and 2 girls = 7C3 × 4C2 = 35 × 6 = 210
4 boys and 1 girl = 7C4 × 4C1 = 35 × 4 = 140
Total number of ways the team can have at least one boy and one girl = 7 + 84 + 210 + 140
= 441

(iii) At least three girls

Total number of ways the team can have at least three girls = 4C3 × 7C2 + 4C4 × 7C1
= 4 × 21 + 7
= 84 + 7
= 91

26. How many numbers greater than 1000000 can be formed using the digits 1, 2, 0, 2, 4, 2, 4?

Solution:
Given numbers – 1000000
Number of digits = 7
The numbers have to be greater than 1000000, so they can begin either with 1, 2 or 4.
When 1 is fixed at the extreme left position, the remaining digits to be rearranged will be 0, 2, 2,
2, 4, 4, in which there are 3, 2s and 2, 4s.
Thus, the number of numbers beginning with 1 = 6!/(3! 2!) = (6 × 5 × 4 × 3!)/(3! × 2)
= 60
The total numbers begin with 2 = 6!/(2! 2!) = 720/4 = 180
Similarly, the total numbers beginning with 4 = 6!/3! = 720/6 = 120
Therefore, the required number of numbers = 60 + 180 + 120 = 360.

27. How many words can be formed by using the letters from the word “DRIVER” such that all
the vowels are always together?

Solution:
In these types of questions, we assume all the vowels to be a single character, i.e., “IE” is a
single character. So, now we have 5 characters in the word, namely, D, R, V, R, and IE. But, R
occurs 2 times. => Number of possible arrangements = 5! / 2! = 60 Now, the two vowels can be
arranged in 2! = 2 ways.
=> Total number of possible words such that the vowels are always together= 60 x 2 = 120

28. In how many ways, can we select a team of 4 students from a given choice of 15?

Solution:
Number of possible ways of selection = 15 C 4 = 15 ! / ((4 !) x (11 !))
Number of possible ways of selection = (15 x 14 x 13 x 12) / (4 x 3 x 2 x 1) = 1365

29. What procedure is used to test whether or not three or more population means are equal?
A. Analysis of correlation
B. 3-sample t-test
C. Chi-square test
D. Analysis of variance F-test

Answer: D. Analysis of variance F-test

30. Which of the following is a research question that could be addressed using a one-way
analysis of variance?
A. Does mean blood pressure differ for three different age groups?
B. Does the variance of blood pressure differ for three different age groups?
C. Are the proportions of people who oppose capital punishment different for three different age
groups?
D. Is there a relationship between political party preference and age?

Answer: A

31. Which of these situations could be analyzed with a one-way analysis of variance?
A. The relationship between gender (male or female) and opinion about the death penalty (favor,
oppose,
uncertain)
B. The relationship between weight and height for 12-year old girls
C. A comparison of four different age groups with regard to mean hours of watching television
per day
D. A comparison of four different age groups with regard to proportion that opposes legalization
of marijuana

Answer: C

32. . Which one of the following statements is false?

A. The standard error measures the variability of a population parameter.
B. The standard error of a sample statistic measures, roughly, the average difference between the
values of
the statistic and the population parameter.
C. Assuming a fixed value of s = sample standard deviation, the standard error of the mean
decreases as the
sample size increases.
D. The standard error of a sample proportion decreases as the sample size increases.

Answer: A

33. Which one of the following statements is false?

A. A sampling distribution is the probability distribution of a sample statistic. It describes how
values of a
sample statistic vary across all possible random samples of a specific size that can be taken from
a
population.
B. For all five scenarios considered, the sampling distribution is approximately normal as long as
the sample
size(s) are large enough.
C. The mean value of a sampling distribution is the mean value of a sample statistic over all
possible random
samples. For the five scenarios, this mean equals the value of the statistic.
D. The standard deviation of a sampling distribution measures the variation between all possible
values of the
sample statistic and their mean over all possible random samples. For the five scenarios, this
mean equals
the value of the parameter.

Answer : C

34. If the sample size (n) is large, and the sample is a random sample, then the distribution of the
sample proportion p is approximately a ____________________.
A. binomial distribution
B. uniform distribution
C. normal distribution
D. none of the above

Answer: C
36. Suppose that the mean of the sampling distribution for the difference in two sample
proportions is 0. This tells
us that
A. The two sample proportions are both 0.
B. The two sample proportions are equal to each other.
C. The two population proportions are both 0.
D. The two population proportions are equal to each other.

Answer: D

37. The mean of the sampling distribution for a sample proportion depends on the value(s) of
A. the true population proportion but not the sample size
B. the sample size but not the true population proportion
C. the sample size and the true population proportion
D. neither the sample size nor the true population proportion

Answer : A

38. An investment firm rates bonds for AardCo Inc. as "B+," while bonds of Deva Corp. are
rated "AA." Which level of measurement would be appropriate for such data?
a. Nominal b. Ordinal
c. Interval d. Ratio

Answer: B

39. Which variable is least likely to be regarded as ratio data?

a. Length of time required for a randomly chosen vehicle to cross a toll bridge (minutes)
b.Weight of a randomly chosen student (pounds)
c. Number of fatalities in a randomly chosen traffic disaster (persons)
d. Student's evaluation of a professor's teaching (Likert scale)

Answer: D

40. Using a sample to make generalizations about an aspect of a population is called

_______________.
a.data mining b.descriptive statistics
c.random sampling d.statistical inference

Answer: D

41. Which is most nearly correct regarding sampling error?

A.It can be eliminated by increasing the sample size.
B.It cannot be eliminated by any statistical sampling method.
C.It can be eliminated by using Excel's =RANDBETWEEN() function.
D.It can be eliminated by utilizing systematic random sampling.
Answer: B
Note: Sampling involves error, though it can be minimized by proper methodology.

42. Judgment sampling is sometimes preferred over random sampling, for example, when:
A.the desired sample size is much larger than the population.
B.the sampling budget is large and the population is conveniently located.
C.time is short and the sampling budget is limited.
D.the population is readily accessible and sampling is nondestructive.

Answer: C

43. A binary variable (also called a dichotomous variable or dummy variable) has:
A.only two possible values.
B.continuous scale values.
C.rounded data values.
D.ordinal or interval values.

Answer: A
Note: Binary variables are used in every field of business to code qualitative (nominal) data.

44. Sampling bias can best be reduced by:

A.using appropriate data coding.
B.having a computer tabulate the results.
C.utilizing random sampling.
D.taking a judgment sample.

Answer: C
Note: Sampling error can't be eliminated, but sampling bias can be avoided.

45. From its 32 regions, the FAA selects 6 regions, and then randomly audits 25 departing
commercial flights in each region for compliance with legal fuel and weight requirements. This
is an example of:
A.simple random sampling.
B.stratified random sampling.
C.cluster sampling.
D.judgment sampling

Answer: C