Quantitative methods for

Management
Model paper
• A survey in which customers taste five
different brands of ice cream, and rank their
favorites from 1 to 5, would be an example of
which type of scale of measurement?
– Ordinal
– Nominal
– Interval
– Ratio
• State whether the following question provided
is qualitative or quantitative data and
indicates the measurement scale appropriate -
What is your age?
– Qualitative, ratio
– Quantitative, ratio
– Qualitative, nominal
– Quantitative, ordinal
• Abel Alonzo, Director of Human Resources, is
exploring the causes of employee absenteeism at
Batesville Bottling during the last operating year
(January 1, 1999 through December 31, 1999). For
this study, the set of all employees who worked at
Batesville Bottling during the last operating year is
a(a)____________________.

    Population   Statistic   Parameter   Sample
• A student makes an 82 on the first test in a
statistics course. From this, she assumes that her
average at the end of the semester (after other
tests) will be about 82. This is an example of
(a)____________________.
 Descriptive statistics 
  Inferential statistics  
 Nonparametric statistics  
 Wishful thinking
• A statistics instructor collects information about the
background of his students. About 30% have taken
economics and about 40% have taken accounting.
There are 23 male students and 27 female students in
this class. This is an example
of(a)____________________.
   Descriptive statistics  
 Inferential statistics  
 Nominal data  
 Nonparametric statistics
• Consider the following frequency distribution:-

What is the relative frequency of the first class?

 (a) 0.15
(b) 0.30
(c) 0.10
(d) None of the above
• The 1999 and 2000 market share data of the three competitors
(A, B and C) in an oligopolistic industry are presented in the
following pie charts:-

• Which of the following is true?

(a) Only company B gained market share
(b) Company A lost market share
(c) Only company C lost market share
(d) Company B lost market share
• A statistics student made the following grades
on 5 tests: 84, 78, 88, 72, and 72. What is the
median grade?
(a) 78
(b) 80
(c) 88
(d) 72
• Let A be the event that a student is enrolled in an
accounting course and let S be the event that a student is
enrolled in a statistics course. It is known that 30% of all
students are enrolled in an accounting course and 40% of
all students are enrolled in statistics. Included in these
numbers are 15% who are enrolled in both statistics and
accounting. Find P(S).
 (a) 0.30
 (b) 0.55
 (c) 0.15
 (d) 0.40
• Given P(A) = 0.40, P(B) = 0.50, P(A ∩ B) = 0.15.
Which of the following is true?
(a)  A and B are collectively exhaustive 
(b)  A and B are mutually exclusive 
(c)  A and B are independent 
(d)  A and B are not independent 
• Variables which take on values only at certain
points over a given interval are
called(a)____________________.
  Value variables   Continuous random
variables   Point variables  O Discrete
random variables
• The amount of time a patient waits in a
doctor's office is an example
of(a)____________________.
(a)   A discrete random variable   The
binomial distribution   The normal
distribution    A continuous random variable
• Twenty five items are sampled. Each of these
has the same probability of being defective.
The probability that exactly 2 of the 25 are
defective could best be found by using
the(a)____________________.
(a)   Normal distribution   Poisson
distribution   Exponential distribution   
 Binomial distribution
• If x is a binomial random variable with n=8 and
p=0.2, the variance of x is
(a)____________________.
(a)   0.96   4     1.28   1.6
• The long-run average or mean of a Poisson
distribution is usually referred to as:-
 (a) λ
 (b) σ
 (c) µ
 (d) α
• The area to the left of the mean in any normal
distribution is(a)____________________.
  Equal to 0.5   Equal to the
mean   Equal to 1   Equal to the variance
• Let z be a normal random variable with mean
0 and standard deviation 1. Use the normal
tables to find P(z > 2.4).
(a) 0.4793
(b) 0.9918
(c) 0.0082
(d) 0.4918
• Regression was used to develop a model to predict
sales based on advertising dollars spent. The
equation developed is Y = 1,000 + 20X, where X is
advertising dollars and Y is sales. If $300 is spent on
advertising, what would be the best prediction for
sales?
(a)  $1,600 
(b)  $7,000 
(c)  $6,000 
(d)  None of the above 
• Which of the following is an example of
nonprobabilistic sampling?
a. simple random sampling

b. stratified simple random sampling

c. cluster sampling

d. judgment sampling
• Stratified random sampling is a method of
selecting a sample in which
a. the sample is first divided into strata, and then
random samples are taken from each stratum
b. various strata are selected from the sample
c. the population is first divided into strata, and
then random samples are drawn from each
stratum
d. None of these alternatives is correct.
• A tabular representation of the payoffs for a
decision problem is a
• a. decision tree
• b. payoff table
• c. matrix
• d. sequential matrix
• For a decision alternative, the weighted
average of the payoffs is known as
a. the expected value of perfect information
b. the expected value
c. the expected probability
d. perfect information
• The number of degrees of freedom for the
appropriate chi-square distribution in a test of
independence is
• a. n-1
• b. K-1
• c. number of rows minus 1 times number of
columns minus 1
• d. a chi-square distribution is not used
• In order to determine whether or not a particular medication was
effective in curing the common cold, one group of patients was given the
medication, while another group received sugar pills. The results of the
study are shown below.We are interested in determining whether or not
the medication was effective in curing the common cold.The test statistic
is
 
Patients Cured Patients Not Cured
• Received medication 70 10
• Received sugar pills 20 50
•  
• a. 10.08
• b. 54.02
• c. 1.96
• d. 1.645
• An assumption made about the value of a
population parameter is called a
• a. hypothesis
• b. conclusion
• c. confidence
• d. significance
• In a regression and correlation analysis if r2 =
1, then
• a. SSE = SST
• b. SSE = 1
• c. SSR = SSE
• d. SSR = SST
• If a data set has SSR = 400 and SSE = 100, then
the coefficient of determination is
• a. 0.10
• b. 0.25
• c. 0.40
• d. 0.80
• If the coefficient of correlation is 0.4, the
percentage of variation in the dependent
variable explained by the variation in the
independent variable
• a. is 40%
• b. is 16%.
• c. is 4%
• d. can be any positive value
As the sample size increases, the margin of error
• a. increases
• b. decreases
• c. stays the same
• d. increases or decreases depending on the
size of the mean