# Chapter 1 Which of the following is a discrete quantitative (numerical) variable

Document Type

Test Prep

Book Title

Basic Business Statistics 13th Edition

Authors

David M. Levine, Kathryn A. Szabat, Mark L. Berenson

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Defining and Collecting Data 1-1

CHAPTER 1: DEFINING AND COLLECTING DATA

1. 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

2. Which of the following is a continuous quantitative (numerical) variable?

a) The color of a student’s eyes

b) The number of employees of an insurance company

c) The amount of milk in a 2-liter carton.

d) The number of gallons of milk sold at the local grocery store yesterday

3. To monitor campus security, the campus police office is taking a survey of the number of

students in a parking lot each 30 minutes of a 24-hour period with the goal of determining when

patrols of the lot would serve the most students. If X is the number of students in the lot each

period of time, then X is an example of

a) a categorical variable.

b) a discrete variable.

c) a continuous variable.

d) a statistic.

1-2 Defining and Collecting Data

4. Researchers are concerned that the weight of the average American school child is increasing

implying, among other things, that children’s clothing should be manufactured and marketed in

larger sizes. If X is the weight of school children sampled in a nationwide study, then X is an

example of

a) a categorical variable.

b) a discrete variable.

c) a continuous variable.

d) a table of random numbers.

5. The classification of student class designation (freshman, sophomore, junior, senior) is an

example of

a) a categorical variable.

b) a discrete variable.

c) a continuous variable.

d) a table of random numbers.

6. The classification of student major (accounting, economics, management, marketing, other) is an

example of

a) a categorical variable.

b) a discrete variable.

c) a continuous variable.

d) a table of random numbers.

Defining and Collecting Data 1-3

7. The chancellor of a major university was concerned about alcohol abuse on her campus and

wanted to find out the proportion of students at her university who visited campus bars on the

weekend before the final exam week. Her assistant took a random sample of 250 students. The

answer on “whether you visited campus bars on the weekend before the final exam week” from

students in the sample is an example of __________.

a) a categorical variable.

b) a discrete variable.

c) a continuous variable.

d) a table of random numbers.

SCENARIO 1-1

The manager of the customer service division of a major consumer electronics company is interested

in determining whether the customers who have purchased a Blu-ray player made by the company

over the past 12 months are satisfied with their products.

8. Referring to Scenario 1-1, the possible responses to the question "How many Blu-ray players

made by other manufacturers have you used?" are values from a

a) discrete variable.

b) continuous variable.

c) categorical variable.

d) table of random numbers.

9. Referring to Scenario 1-1, the possible responses to the question "Are you happy, indifferent, or

unhappy with the performance per dollar spent on the Blu-ray player?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

1-4 Defining and Collecting Data

10. Referring to Scenario 1-1, the possible responses to the question "What is your annual income

rounded to the nearest thousands?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

11. Referring to Scenario 1-1, the possible responses to the question "How much time do you use the

Blu-ray player every week on the average?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

12. Referring to Scenario 1-1, the possible responses to the question "How many people are there in

your household?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

13. Referring to Scenario 1-1, the possible responses to the question "How would you rate the quality

of your purchase experience with 1 = excellent, 2 = good, 3 = decent, 4 = poor, 5 = terrible?" are

values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

Defining and Collecting Data 1-5

14. Referring to Scenario 1-1, the possible responses to the question "What brand of Blu-ray player

did you purchase?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

15. Referring to Scenario 1-1, the possible responses to the question "Out of a 100 point score with

100 being the highest and 0 being the lowest, what is your satisfaction level on the videocassette

recorder that you purchased?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

16. Referring to Scenario 1-1, the possible responses to the question "In which year were you born?"

are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

17. Referring to Scenario 1-1, the possible responses to the question "How many Blu-ray player s

made by other manufacturers have you used?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

18. Referring to Scenario 1-1, the possible responses to the question "Are you happy, indifferent, or

unhappy with the performance per dollar spent on the Blu-ray player?" result in

1-6 Defining and Collecting Data

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

19. Referring to Scenario 1-1, the possible responses to the question "What is your annual income

rounded to the nearest thousands?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

20. Referring to Scenario 1-1, the possible responses to the question "How much time do you use the

Blu-ray player every week on the average?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

21. Referring to Scenario 1-1, the possible responses to the question "How many people are there in

your household?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

Defining and Collecting Data 1-7

22. Referring to Scenario 1-1, the possible responses to the question "How would you rate the quality

of your purchase experience with 1 = excellent, 2 = good, 3 = decent, 4 = poor, 5 = terrible?"

result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

23. Referring to Scenario 1-1, the possible responses to the question "What brand of Blu-ray player

did you purchase?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

24. Referring to Scenario 1-1, the possible responses to the question "Out of a 100 point score with

100 being the highest and 0 being the lowest, what is your satisfaction level with the Blu-ray

player that you purchased?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

1-8 Defining and Collecting Data

25. Referring to Scenario 1-1, the possible responses to the question "What is your age at last

birthday?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

26. True or False: The possible responses to the question “How long have you been living at your

current residence?” are values from a continuous variable.

27. True or False: The possible responses to the question “How many times in the past three months

have you visited a city park?” are values from a discrete variable.

28. True or False: A continuous variable may take on any value within its relevant range even though

the measurement device may not be precise enough to record it.

29. True or False: Faculty rank (professor to lecturer) is an example of discrete numerical data.

30. True or False: Student grades (A to F) are an example of continuous numerical data.

Defining and Collecting Data 1-9

31. True or False: The amount of coffee consumed by an individual in a day is an example of a

discrete numerical variable.

32. True or False: The answer to the question “What is your favorite color?” is an example of an

ordinal scaled variable.

33. True or False: The answer to the question “How do you rate the quality of your business statistics

course” is an example of an ordinal scaled variable.

34. True or False: The answer to the question “How many hours on average do you spend watching

TV every week?” is an example of a ratio scaled variable.

35. True or False: The answer to the question “What is your sleeping bag temperature rating?” is an

example of a ratio scaled variable.

36. An insurance company evaluates many numerical variables about a person before deciding on an

appropriate rate for automobile insurance. The number of claims a person has made in the last 3

years is an example of a _______ numerical variable.

1-10 Defining and Collecting Data

37. An insurance company evaluates many numerical variables about a person before deciding on an

appropriate rate for automobile insurance. The distance a person drives in a year is an example of

a _______ variable.

38. An insurance company evaluates many numerical variables about a person before deciding on an

appropriate rate for automobile insurance. A person's age is an example of a _______ numerical

variable.

39. An insurance company evaluates many numerical variables about a person before deciding on an

appropriate rate for automobile insurance. How long a person has been a licensed driver is an

example of a _______ numerical variable.

40. An insurance company evaluates many numerical variables about a person before deciding on an

appropriate rate for automobile insurance. The number of tickets a person has received in the last

3 years is an example of a _______ numerical variable.

41. In purchasing an automobile, there are a number of variables to consider. The body style of the

car (sedan, coupe, wagon, etc.) is an example of a _______ variable.

Defining and Collecting Data 1-11

42. In purchasing an automobile, there are a number of variables to consider. The classification of the

car as a subcompact, compact, standard, or luxury size is an example of a _______ variable.

43. In purchasing an automobile, there are a number of variables to consider. The color of the car is

an example of a _______ variable.

44. Most colleges admit students based on their achievements in a number of different areas. Whether

a student has taken any advanced placement courses is an example of a _______ variable.

45. Most colleges admit students based on their achievements in a number of different areas. The

grade obtained in senior level English. (A, B, C, D, or F) is an example of a _______ variable.

46. Most colleges admit students based on their achievements in a number of different areas. The

total SAT score achieved by a student is an example of a _______ numerical variable.

47. The Dean of Students conducted a survey on campus. The gender of the student is an example of

a _______ variable.

1-12 Defining and Collecting Data

48. The Dean of Students conducted a survey on campus. Class designation (Freshman, Sophomore,

Junior, Senior) is an example of a _______ variable.

49. The Dean of Students conducted a survey on campus. Major area of study is an example of a

_______ variable.

50. The Dean of Students conducted a survey on campus. SAT score in mathematics is an example

of a _______ numerical variable.

51. The Dean of Students conducted a survey on campus. Grade point average (GPA) is an example

of a _______ numerical variable.

52. The Dean of Students conducted a survey on campus. Number of credits currently enrolled for is

an example of a _______ numerical variable.

53. The Dean of Students conducted a survey on campus. Number of clubs, groups, teams, and

organizations affiliated with on campus is an example of a _______ numerical variable.

Defining and Collecting Data 1-13

54. A personal computer user survey was conducted. Computer brand primarily used is an example

of a _______ variable.

55. A personal computer user survey was conducted. Number of personal computers owned is an

example of a _______ numerical variable.

56. A personal computer user survey was conducted. The number of years using a personal computer

is an example of a _______ numerical variable.

57. A personal computer user survey was conducted. Hours of personal computer use per week is an

example of a _______ numerical variable

58. A personal computer user survey was conducted. Primary word processing package used is an

example of a _______ variable

59. A personal computer user survey was conducted. The number of computer magazine

subscriptions is an example of a _______ numerical variable.

1-14 Defining and Collecting Data

60. The brand of TV one owns is an example of an ordinal scaled variable.

61. The brand of TV one owns is an example of a numerical variable.

62. Whether the university is private or public is an example of a nominal scaled variable.

63. Whether the university is private or public is an example of a categorical variable.

64. Marital status is an example of an ordinal scaled variable.

65. Marital status is an example of a numerical variable.

66. The grade level (K-12) of a student is an example of a nominal scaled variable.

Defining and Collecting Data 1-15

67. The grade level (K-12) of a student is an example of a numerical variable.

68. The level of satisfaction (“Very unsatisfied”, “Fairly unsatisfied”, “Fairly satisfied”, and “Very

satisfied”) in a class is an example of an ordinal scaled variable.

69. The level of satisfaction (“Very unsatisfied”, “Fairly unsatisfied”, “Fairly satisfied”, and “Very

satisfied”) in a class is an example of a categorical variable.

70. The quality (“terrible”, “poor”, “fair”, “acceptable”, “very good” and “excellent”) of a day care

center is an example of a nominal scaled variable.

71. The quality (“terrible”, “poor”, “fair”, “acceptable”, “very good” and “excellent”) of a day care

center is an example of a numerical variable.

72. The amount of alcohol consumed by a person per week will be measured on an interval scale.

1-16 Defining and Collecting Data

73. The amount of alcohol consumed by a person per week is an example of a continuous variable.

74. The number of defective apples in a single box will be measured on an interval scale.

75. The number of defective apples in a single box is an example of a continuous variable.

76. The amount of calories contained in a 12-ounce package of cheese will be measured on a ratio

scale.

77. The amount of calories contained in a 12-ounce package of cheese is an example of a discrete

variable.

78. The amount of time a student spent studying for an exam will be measured on a ratio scale.

79. The amount of time a student spent studying for an exam is an example of a continuous variable.

Defining and Collecting Data 1-17

SCENARIO 1-2

A Wall Street Journal poll asked 2,150 adults in the U.S. a series of questions to find out their view

on the U.S. economy.

80. Referring to Scenario 1-2, the population of interest is

a) all the males living in the U.S. when the polled was taken.

b) all the females living in the U.S. when the polled was taken.

c) all the adults living in the U.S. when the poll was taken.

d) all the people living in the U.S. when the poll was taken.

81. Referring to Scenario 1-2, the 2,150 adults make up

a) the population

b) the sample

c) the primary data source

d) the secondary data source

82. Referring to Scenario 1-2, the possible responses to the question "How satisfied are you with the

U.S. economy today with 1 = very satisfied, 2 = moderately satisfied, 3 = neutral, 4 = moderately

dissatisfied and 5 = very dissatisfied?” are values from a

a) discrete variable.

b) continuous variable.

c) categorical variable.

d) table of random numbers.

83. Referring to Scenario 1-2, the possible responses to the question "How many people in your

household are unemployed currently?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

1-18 Defining and Collecting Data

84. Referring to Scenario 1-2, the possible responses to the question "What do you think is the

current number of people unemployed in the country?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

85. Referring to Scenario 1-2, the possible responses to the question "How many more months do

you think the U.S. economy will require to get out of a recession?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

86. Referring to Scenario 1-2, the possible responses to the question "How many out of every 10 U.S.

voters do you think feel that the U.S. economy is in a good shape?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

87. Referring to Scenario 1-2, the possible responses to the question "How would you rate the

condition of the U.S. economy with 1 = excellent, 2 = good, 3 = decent, 4 = poor, 5 = terrible?"

are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

Defining and Collecting Data 1-19

88. Referring to Scenario 1-2, the possible responses to the question "Are you 1. Currently employed,

2. Unemployed but actively looking for job, 3. Unemployed and quit looking for job?" are values

from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

89. Referring to Scenario 1-2, the possible responses to the question "In which year do you think the

last recession in the U.S. started?" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

90. Referring to Scenario 1-2, the possible responses to the question "On the scale of 1 to 100 with 1

being extremely anxious and 100 being total not anxious, rate your level of anxiety in this U.S.

economy" are values from a

a) discrete numerical variable.

b) continuous numerical variable.

c) categorical variable.

d) table of random numbers.

91. Referring to Scenario 1-2, the possible responses to the question "How satisfied are you with the

U.S. economy today with 1 = very satisfied, 2 = moderately satisfied, 3 = neutral, 4 = moderately

dissatisfied and 5 = very dissatisfied?” result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

1-20 Defining and Collecting Data

92. Referring to Scenario 1-2, the possible responses to the question "How many people in your

household are unemployed currently?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

93. Referring to Scenario 1-2, the possible responses to the question "What do you think is the

current unemployment rate?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

94. Referring to Scenario 1-2, the possible responses to the question "How many out of every 10 U.S.

voters do you think feel that the U.S. economy is in a good shape?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

95. Referring to Scenario 1-2, the possible responses to the question "How would you rate the

condition of the U.S. economy with 1 = excellent, 2 = good, 3 = decent, 4 = poor, 5 = terrible?"

result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

Defining and Collecting Data 1-21

96. Referring to Scenario 1-2, the possible responses to the question "Are you 1. Currently employed,

2. Unemployed but actively looking for job, 3. Unemployed and quit looking for job?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

97. Referring to Scenario 1-2, the possible responses to the question "In which year do you think the

last recession in the U.S. started?" result in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

98. Referring to Scenario 1-2, the possible responses to the question "On the scale of 1 to 100 with 1

being extremely anxious and 100 being totally not anxious, rate your level of anxiety in this U.S.

economy" results in

a) a nominal scale variable.

b) an ordinal scale variable.

c) an interval scale variable.

d) a ratio scale variable.

99. The universe or "totality of items or things" under consideration is called

a) a sample.

b) a population.

c) a primary data source.

d) a secondary data source.

1-22 Defining and Collecting Data

100. The portion of the universe that has been selected for analysis is called

a) a sample.

b) a frame.

c) a primary data source.

d) a secondary data source.

101. Which of the following is most likely a population as opposed to a sample?

a) respondents to a newspaper survey.

b) the first 5 students completing an assignment.

c) every third person to arrive at the bank.

d) registered voters in a county.

102. A study is under way in Yosemite National Forest to determine the adult height of American

pine trees. Specifically, the study is attempting to determine what factors aid a tree in reaching

heights greater than 60 feet tall. It is estimated that the forest contains 25,000 adult American

pines. The study involves collecting heights from 250 randomly selected adult American pine

trees and analyzing the results. Identify the population from which the study was sampled.

a) The 250 randomly selected adult American pine trees.

b) The 25,000 adult American pine trees in the forest.

c) All the adult American pine trees taller than 60 feet.

d) All American pine trees, of any age, in the forest.

103. A study is under way in Yosemite National Forest to determine the adult height of American

pine trees. Specifically, the study is attempting to determine what factors aid a tree in reaching

heights greater than 60 feet tall. It is estimated that the forest contains 25,000 adult American

pines. The study involves collecting heights from 250 randomly selected adult American pine

trees and analyzing the results. Identify the sample in the study.

a) The 250 randomly selected adult American pine trees.

b) The 25,000 adult American pine trees in the forest.

c) All the adult American pine trees taller than 60 feet.

d) All American pine trees, of any age, in the forest.

Defining and Collecting Data 1-23

104. Most analysts focus on the cost of tuition as the way to measure the cost of a college education.

But incidentals, such as textbook costs, are rarely considered. A researcher at Drummand

University wishes to estimate the textbook costs of first-year students at Drummand. To do so,

she monitored the textbook cost of 250 first-year students and found that their average textbook

cost was $600 per semester. Identify the population of interest to the researcher.

a) All Drummand University students.

b) All college students.

c) All first-year Drummand University students.

d) The 250 students that were monitored.

105. Most analysts focus on the cost of tuition as the way to measure the cost of a college education.

But incidentals, such as textbook costs, are rarely considered. A researcher at Drummand

University wishes to estimate the textbook costs of first-year students at Drummand. To do so,

she monitored the textbook cost of 250 first-year students and found that their average textbook

cost was $600 per semester. Identify the sample in the study.

a) All Drummand University students.

b) All college students.

c) All first-year Drummand University students.

d) The 250 students that were monitored.

106. Researchers suspect that the average number of units earned per semester by college students is

rising. A researcher at Calendula College wishes to estimate the number of units earned by

students during the spring semester at Calendula. To do so, he randomly selects 100 student

transcripts and records the number of units each student earned in the spring term. He found that

the average number of semester units completed was 12.96 units per student. Identify the

population of interest to the researcher.

a) All Calendula College students.

b) All college students.

c) All Calendula College students enrolled in the spring.

d) All college students enrolled in the spring.

1-24 Defining and Collecting Data

107. The manager of the customer service division of a major consumer electronics company is

interested in determining whether the customers who have purchased a Blu-ray player made by

the company over the past 12 months are satisfied with their products. The population of interest

is

a) all the customers who have bought a Blu-ray player made by the company over the past

12 months.

b) all the customers who have bought a Blu-ray player made by the company and brought it

in for repair over the past 12 months.

c) all the customers who have used a Blu-ray player over the past 12 months.

d) all the customers who have ever bought a Blu-ray player made by the company.

108. True or False: A population is the totality of items or things under consideration.

109. True or False: A sample is the portion of the universe that is selected for analysis.

110. The Human Resources Director of a large corporation wishes to develop an employee benefits

package and decides to select 500 employees from a list of all (N = 40,000) workers in order to

study their preferences for the various components of a potential package. All the employees in

the corporation constitute the _______.

111. The Human Resources Director of a large corporation wishes to develop an employee benefits

package and decides to select 500 employees from a list of all (N = 40,000) workers in order to

study their preferences for the various components of a potential package. The 500 employees

who will participate in this study constitute the _______.

Defining and Collecting Data 1-25

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

population is called

a) an ordered array.

b) a summary table.

c) a statistic.

d) a parameter.

113. A summary measure that is computed to describe a characteristic of an entire population is

called

a) a parameter.

b) an ordered array.

c) a statistic.

d) a summary table.

114. Which of the following is most likely a parameter as opposed to a statistic?

a) The average score of the first five students completing an assignment.

b) The proportion of females registered to vote in a county.

c) The average height of people randomly selected from a database.

d) The proportion of trucks stopped yesterday that were cited for bad brakes.

115. The chancellor of a major university was concerned about alcohol abuse on her campus and

wanted to find out the proportion of students at her university who visited campus bars on the

weekend before the final exam week. Her assistant took a random sample of 250 students and

computed the portion of students in the sample who visited campus bars on the weekend before

the final exam. The portion of all students at her university who visited campus bars on the

weekend before the final exam week is an example of

a) a categorical variable.

b) a discrete variable.

c) a parameter.

d) a statistic.

1-26 Defining and Collecting Data

116. The chancellor of a major university was concerned about alcohol abuse on her campus and

wanted to find out the proportion of students at her university who visited campus bars on the

weekend before the final exam week. Her assistant took a random sample of 250 students. The

portion of students in the sample who visited campus bars on the weekend before the final exam

week is an example of __________.

a) a summary table.

b) a categorical variable.

c) a parameter.

d) a statistic

117. True or False: A statistic is usually used to provide an estimate for a usually unobserved

parameter.

118. True or False: A statistic is usually unobservable while a parameter is usually observable.

119. The Human Resources Director of a large corporation wishes to develop an employee benefits

package and decides to select 500 employees from a list of all (N = 40,000) workers in order to

study their preferences for the various components of a potential package. The Director will use

the data from the sample to compute _______.

120. The Human Resources Director of a large corporation wishes to develop an employee benefits

package and decides to select 500 employees from a list of all (N = 40,000) workers in order to

study their preferences for the various components of a potential package. Information obtained

from the sample will be used to draw conclusions about the true population _______.

Defining and Collecting Data 1-27

121. The oranges grown in corporate farms in an agricultural state were damaged by some unknown

fungi a few years ago. Suppose the manager of a large farm wanted to study the impact of the

fungi on the orange crops on a daily basis over a 6-week period. On each day a random sample

of orange trees was selected from within a random sample of acres. The daily average number of

damaged oranges per tree and the proportion of trees having damaged oranges were calculated.

The two main measures calculated each day (i.e., average number of damaged oranges per tree

and proportion of trees having damaged oranges) are called _______.

122. The oranges grown in corporate farms in an agricultural state were damaged by some unknown

fungi a few years ago. Suppose the manager of a large farm wanted to study the impact of the

fungi on the orange crops on a daily basis over a 6-week period. On each day a random sample

of orange trees was selected from within a random sample of acres. The daily average number of

damaged oranges per tree and the proportion of trees having damaged oranges were calculated.

The two main measures calculated each day (i.e., average number of damaged oranges per tree

and proportion of trees having damaged oranges) may be used on a daily basis to estimate the

respective true population _______.

123. The Quality Assurance Department of a large urban hospital is attempting to monitor and

evaluate patient satisfaction with hospital services. Prior to discharge, a random sample of

patients is asked to fill out a questionnaire to rate such services as medical care, nursing, therapy,

laboratory, food, and cleaning. The Quality Assurance Department prepares weekly reports that

are presented at the Board of Directors meetings and extraordinary/atypical ratings are easy to

flag. Values computed from the sample results each week are called _______.

124. The Quality Assurance Department of a large urban hospital is attempting to monitor and

evaluate patient satisfaction with hospital services. Prior to discharge, a random sample of

patients is asked to fill out a questionnaire to rate such services as medical care, nursing, therapy,

laboratory, food, and cleaning. The Quality Assurance Department prepares weekly reports that

are presented at the Board of Directors meetings and extraordinary/atypical ratings are easy to

flag. True population characteristics estimated from the sample results each week are called

_______.

1-28 Defining and Collecting Data

125. The Commissioner of Health in New York State wanted to study malpractice litigation in New

York. A sample of 31 thousand medical records was drawn from a population of 2.7 million

patients who were discharged during 2010. The proportion of malpractice claims filed from the

sample of 31 thousand patients is a _______.

126. The Commissioner of Health in New York State wanted to study malpractice litigation in New

York. A sample of 31 thousand medical records was drawn from a population of 2.7 million

patients who were discharged during 2010. The true proportion of malpractice claims filed from

the population of 2.7 million patients is a _______.

127. Jared was working on a project to look at global warming and accessed an Internet site where

he captured average global surface temperatures from 1866. Which of the four methods of data

collection was he using?

a) Published sources

b) Experimentation

c) Surveying

d) Observation

128. The British Airways Internet site provides a questionnaire instrument that can be answered

electronically. Which of the 4 methods of data collection is involved when people complete the

questionnaire?

a) Published sources

b) Experimentation

c) Surveying

d) Observation

Defining and Collecting Data 1-29

129. A marketing research firm, in conducting a comparative taste test, provided three types of

peanut butter to a sample of households randomly selected within the state. Which of the 4

methods of data collection is involved when people are asked to compare the three types of

peanut butter?

a) Published sources

b) Experimentation

c) Surveying

d) Observation

130. Tim was planning for a meeting with his boss to discuss a raise in his annual salary. In

preparation, he wanted to use the Consumer Price Index to determine the percentage increase in

his real (inflation-adjusted) salary over the last three years. Which of the 4 methods of data

collection was involved when he used the Consumer Price Index?

a) Published sources

b) Experimentation

c) Surveying

d) Observation

131. Which of the 4 methods of data collection is involved when a person counts the number of cars

passing designated locations on the Los Angeles freeway system?

a) Published sources

b) Experimentation

c) Surveying

d) Observation

132. A statistics student found a reference in the campus library that contained the median family

incomes for all 50 states. She would report her data as being collected using

a) a designed experiment.

b) observational data.

c) a random sample.

d) a published source.

1-30 Defining and Collecting Data

133. The personnel director at a large company studied the eating habits of the company’s

employees. The director noted whether employees brought their own lunches to work, ate at the

company cafeteria, or went out to lunch. The goal of the study was to improve the food service at

the company cafeteria. This type of data collection would best be considered as

a) an observational study.

b) a designed experiment.

c) a random sample.

d) a quota sample.

134. A study attempted to estimate the proportion of Florida residents who were willing to spend

more tax dollars on protecting the beaches from environmental disasters. Twenty-five hundred

Florida residents were surveyed. What type of data collection procedure was most likely used to

collect the data for this study?

a) A designed experiment

b) A published source

c) A random sample

d) Observational data

135. Which of the following is NOT a reason for the need for sampling?

a) It is usually too costly to study the whole population.

b) It is usually too time consuming to look at the whole population.

c) It is sometimes destructive to observe the entire population.

d) It is always more informative by investigating a sample than the entire population.

136. Which of the following is NOT a reason for selecting a sample?

a) A sample is less time consuming than a census.

b) A sample is less costly to administer than a census.

c) A sample is usually not a good representation of the target population.

d) A sample is less cumbersome and more practical to administer.

Defining and Collecting Data 1-31

137. Which of the following sampling methods is a probability sample?

a) Convenience sample

b) Quota sample

c) Stratified sample

d) Judgment sample

138. At US Data Corporation’s web site, they advertised that “Because of our commitment to quality

and our vast amount of industry knowledge and experience, we have grown to be one of

America’s leading providers of mailing lists, marketing data, sales leads and research data. We

maintain databases of information on consumers and businesses nationwide that set industry

standards for mission critical currency, reliability and accuracy.” Trying to reach 500 potential

donors for their annual phone donation campaign, a local fire department purchased a list of

donors from the company. This list is an example of a

a) stratified sample

b) systematic sample

c) judgment sample

d) frame

139. The manager of the customer service division of a major consumer electronics company is

interested in determining whether the customers who have purchased a Blu-ray player made by

the company over the past 12 months are satisfied with their products. Which of the following

will be a good frame for drawing a sample?

a) Telephone directory.

b) Voting registry.

c) The list of customers who returned the registration card.

d) A list of potential customers purchased from a database marketing company.

1-32 Defining and Collecting Data

140. A sample of 300 subscribers to a particular magazine is selected from a population frame of

9,000 subscribers. If, upon examining the data, it is determined that no subscriber had been

selected in the sample more than once,

a) the sample could not have been random.

b) the sample may have been selected without replacement or with replacement.

c) the sample had to have been selected with replacement.

d) the sample had to have been selected without replacement.

141. Which of the following scenarios will yield a nonprobability sample?

a) The subjects of the sample are chosen on the basis of known probability.

b) Items or individuals are chosen without regard to their probability of occurrence.

c) Every individual or item from the frame has an equal chance of being selected. Selection

may be with replacement or without replacement.

d) Decide on a sample size, n; divide the frame of N individuals into groups of k individuals

where k = N/n; randomly select one individual from the first group; select every kth

individual thereafter.

142. To obtain a sample of 10 books in the store, the manager walked to the first shelf next to the

cash register to pick the first 10 books on that shelf. This is an example of a

a) systematic sample

b) simple random sample

c) stratified sample

d) convenience sample

Defining and Collecting Data 1-33

143. To demonstrate a sampling method, the instructor in a class picked the first 5 students sitting in

the last row of the class. This is an example of a

a) systematic sample

b) simple random sample

c) stratified sample

d) convenience sample

144. A company selling apparel online sends out emails every Monday to all its customers who

made a purchase. This is an example of a

a) systematic sample

b) convenience sample

c) simple random sample

d) stratified sample

145. To gather information on the preferences of instructors at universities on topics for a business

statistics textbook that it will publish, a publishing company invited 10 faculty members who

have adopted one of the textbooks that it has published. This is an example of a

a) systematic sample

b) judgment sample

c) simple random sample

d) stratified sample

146. To find out the potential impact of a new zoning law on a neighborhood, the legislators conduct

a focus group interview by inviting the members of the housing owners association of that

neighborhood. This is an example of a

a) systematic sample

b) simple random sample

c) judgment sample

d) cluster sample

1-34 Defining and Collecting Data

147. Which of the following yields a systematic sample?

a) All students in a class are divided into groups of 15. One student is randomly chosen

from the 1st group, the remaining observations are every 15th student thereafter.

b) The best 15 students, according to the opinion of the instructor, in a class are selected.

c) All students in a class are grouped according to their gender. A random sample of 8 is

selected from the males and a separate random sample of 7 is drawn from the females.

d) A random sample of 15 students is selected from a class without replacement.

148. Which of the following yields a stratified sample?

a) All students in a class are divided into groups of 15. One student is randomly chosen

from the 1st group, the remaining observations are every 15th student thereafter.

b) The best 15 students, according to the opinion of the instructor, in a class are selected.

c) All students in a class are grouped according to their gender. A random sample of 8 is

selected from the males and a separate random sample of 7 is drawn from the females.

d) The first 15 students in a class are selected without replacement.

149. Which of the following yields a cluster sample?

a) All students in a class are divided into groups of 15. One student is randomly chosen

from the 1st group, the remaining observations are every 15th student thereafter.

b) The best 15 students, according to the opinion of the instructor, in a class are selected.

c) All students in a class are grouped according to their gender. A random sample of 8 is

selected from the males and a separate random sample of 7 is selected from the females.

d) All students in a class are divided into groups according to the rows that they are seated.

One of the groups is randomly selected.

Defining and Collecting Data 1-35

150. Which of the following yields a simple random sample?

a) All students in a class are divided into groups of 15. One student is randomly chosen

from the 1st group, the remaining observations are every 15th student thereafter.

b) The best 15 students, according to the opinion of the instructor, in a class are selected.

c) The names of 50 students in a class are written on 50 different pieces of paper and put in

a hat. The first 15 pieces of paper are selected blindly one at a time without replacing

them back in the hat after shuffling the papers thoroughly.

d) All students in a class are divided into groups according to the rows that they are seated.

One of the groups is randomly selected.

151. Which of the following yields a simple random sample?

a) All students in a class are grouped according to their gender. A random sample of 8 is

selected from the males and a separate random sample of 7 is drawn from the females.

b) The best 15 students, according to the opinion of the instructor, in a class are selected.

c) The names of 50 students in a class are written on 50 different pieces of paper and put in

a hat. The first 15 pieces of paper are selected blindly one at a time after shuffling the

papers thoroughly and each of the selected pieces is placed back into the hat before the

next piece is selected.

d) All students in a class are divided into groups according to the rows that they are seated.

One of the groups is randomly selected.

152. For a population frame containing N = 1,007 individuals, what code number should you assign

to the first person on the list in order to use a table of random numbers?

a) 0

b) 1

c) 01

d) 0001

1-36 Defining and Collecting Data

153. Which of the following types of samples can you use if you want to make valid statistical

inferences from a sample to a population?

a) A judgment sample

b) A quota sample

c) A convenience sample

d) A probability sample

154. The evening host of a dinner dance reached into a bowl, mixed all the tickets around, and

selected the ticket to award the grand door prize. What sampling method was used?

a) Simple random sample

b) Systematic sample

c) Stratified sample

d) Cluster sample

155. The Dean of Students mailed a survey to a total of 400 students. The sample included 100

students randomly selected from each of the freshman, sophomore, junior, and senior classes on

campus last term. What sampling method was used?

a) Simple random sample

b) Systematic sample

c) Stratified sample

d) Cluster sample

156. A telemarketer set the company’s computerized dialing system to contact every 25th person

listed in the local telephone directory. What sampling method was used?

a) Simple random sample

b) Systematic sample

c) Stratified sample

d) Cluster sample

Defining and Collecting Data 1-37

157. Since a _______ is not a randomly selected probability sample, there is no way to know how

well it represents the overall population.

a) Simple random sample

b) Convenience sample

c) Stratified sample

d) Cluster sample

158. A population frame for a survey contains a listing of 72,345 names. Using a table of random

numbers, how many digits will the code numbers for each member of your population contain?

a) 3

b) 4

c) 5

d) 6

159. A population frame for a survey contains a listing of 6,179 names. Using a table of random

numbers, which of the following code numbers will appear on your list?

a) 06

b) 0694

c) 6946

d) 61790

160. Which of the following can be reduced by proper interviewer training?

a) Sampling error

b) Measurement error

c) Both of the above

d) None of the above

1-38 Defining and Collecting Data

161. Which of the following sampling methods will more likely be susceptible to ethical violation?

a) Simple random sample

b) Cluster sample

c) Convenience sample

d) Stratified sample

162. Which of the following sampling methods will more likely be susceptible to ethical violation

when used to form conclusions about the entire population?

a) Simple random sample

b) Cluster sample

c) Judgment sample

d) Stratified sample

163. Which of the following sampling methods will more likely be susceptible to ethical violation

when used to form conclusions about the entire population?

a) Simple random sample

b) Cluster sample

c) Systematic sample

d) Convenience sample

164. True or False: As a population becomes large, it is usually better to obtain statistical

information from the entire population.

165. True or False: If a simple random sample is chosen with replacement, each individual has the

same chance of selection on every selection.

Defining and Collecting Data 1-39

166. True or False: When dealing with human surveys, we are usually interested in sampling with

replacement.

167. True or False: The only reliable way a researcher can make statistical inferences from a sample

to a population is to use nonprobability sampling methods.

168. True or False: A sample is always a good representation of the target population.

169. True or False: There can be only one sample selected from a population.

170. True or False: Using different frames to generate data can lead to totally different conclusions.

171. True or False: Sampling error can be completely eliminated by taking larger sample sizes.

172. True or False: Sampling error can be reduced by taking larger sample sizes.

1-40 Defining and Collecting Data

173. True or False: A convenience sample is a type of probability sample.

174. True or False: Items or individuals in a judgment sample are chosen according to their

probability of occurrence.

175. True or False: When participants are allowed to self-select into the sample, you have a

nonprobability sample.

176. True or False: Systematic samples are less efficient than a stratified sample.

177. True or False: The professor of a business statistics class wanted to find out the mean amount of

time per week her students spent studying for the class. Among the 50 students in her class, 20%

were freshmen, 50% were sophomores and 30% were juniors. She decided to select 2 students

randomly from the freshmen, 5 randomly from the sophomores and 3 randomly from the juniors.

This is an example of a systematic sample.

178. To estimate the mean number of hours a student at a major university spent in the library, a

researcher obtained the list of students from the registrar’s office, from which she can select a

random sample 200 students. This list is a _______.

Defining and Collecting Data 1-41

179. ________ results from the exclusion of certain groups of subjects from a population frame.

180. Coverage error results in a ________.

181. ________ results from the failure to collect data on all subjects in the sample.

182. The sampling process begins by locating appropriate data sources called ___________.

183. True or False: If you randomly select a student from the first row of a business statistics class

and then every other fifth student thereafter until you get a sample of 20 students, this is an

example of a convenience sample.

184. True or False: You stand at the main entrance to a departmental store and pick the first 20

customers that enter the store after it has opened its door for business on a single day. This is an

example of a systematic sample.

1-42 Defining and Collecting Data

185. True or False: An electronic appliance chain gathered customer opinions on their services

using the customer feedback forms that are attached to the product registration forms. This is an

example of a convenience sample.

186. True or False: To gather opinions on the efficacy of U.S. foreign policies, a sample of 50

faculty members is selected from the pool of university professors who have taught political

science at the graduate level. This is an example of a judgment sample.

187. True or False: In a business statistics class students sit randomly without particular preferences.

A sample is selected by including everybody who sits in the first row. This is an example of a

cluster sample.

188. True or False: The question “How many times have you abused illicit drugs in the last 6

months?” will most likely result in nonresponse error.

189. True or False: The question “Is your household income last year somewhere between $50,000

and $100,000?” will most likely result in coverage error.

190. True or False: The only way one can eliminate sampling error is to take the whole population

as the sample.

Defining and Collecting Data 1-43

191. True or False: Coverage error can become an ethical issue if a particular group is intentionally

excluded from the frame.

192. True or False: Measurement error will become an ethical issue when the findings are presented

without reference to sample size and margin of error.

193. True or False: Measurement error can become an ethical issue when a survey sponsor chooses

leading questions that guide the responses in a particular direction.

194. True or False: Measurement error can become an ethical issue when an interviewer purposely

guides the responses in a particular direction.

195. True or False: Sampling error becomes an ethical issue if the findings are purposely presented

without reference to sample size and margin of error so that the sponsor can promote a viewpoint

that might otherwise be truly insignificant.

196. True or False: The professor of a business statistics class wanted to find out the mean amount of

time per week her students spent studying for the class. She divided the students into the left,

right and center groups according to the location they sat in the class that day. One of these 3

groups was randomly selected and everyone in the group was asked the mean amount of time per

week he/she spent studying for the class. This is an example of a cluster sample.

1-44 Defining and Collecting Data

197. True or False: The professor of a business statistics class wanted to find out the mean amount of

time per week her students spent studying for the class. She divided the fifty students on her

roster into ten groups starting from the first student on the roster. The first student was randomly

selected from the first group. Then every tenth student was selected from the remaining students.

This is an example of a cluster sample.

198. True or False: Selection bias occurs more frequently in systematic samples than in simple

random samples.

199. True or False: The question: “Have you used any form of illicit drugs over the past 2 months?”

will most likely result in measurement error if the question is answered.

200. True or False: The question: “How much did you earn last year rounded to the nearest hundreds

of dollars?” will most likely result in measurement error.

Defining and Collecting Data 1-45

SCENARIO 1-3

The manager of the customer service division of a major consumer electronics company is interested

in determining whether the customers who have purchased a Blu-ray player made by the company

over the past 12 months are satisfied with their products.

201. Referring to Scenario 1-3, the manager decides to ask a sample of customers, who have bought

a Blu-ray player made by the company and filed a complaint over the past year, to fill in a survey

about whether they are satisfied with the product. This method will most likely suffer from

a) nonresponse error.

b) measurement error.

c) coverage error.

d) non-probability sampling.

202. Referring to Scenario 1-3, if there are 4 different brands of Blu-ray players made by the

company, the best sampling strategy would be to use a

a) a simple random sample.

b) a stratified sample.

c) a cluster sample.

d) a systematic sample.

203. Referring to Scenario 1-3, which of the following questions in the survey will NOT likely

induce a measurement error?

a) How many times have you illegally copied copyrighted sporting events?

b) What is your exact annual income?

c) How many times have you brought the Blu-ray player back for service?

d) How many times have you failed to set the time on the Blu-ray player?

1-46 Defining and Collecting Data

204. Referring to Scenario 1-3, if a customer survey questionnaire is included in all the Blu-ray

players made and sold by the company over the past 12 months, this method of collecting data

will most like suffer from

a) nonresponse error.

b) measurement error.

c) coverage error.

d) nonprobability sampling.

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