ch03

CHAPTER THREE
Descriptive Statistics
C 1. Statistical measures used to yield information about the middle

of a group of numbers are called _______.
E A. averages
Term B. measures of variability
C. measures of central tendency
D. Z scores
C 2. Which of the following is NOT a measure of central tendency?
E A. mean
Term B. median
C. variance
D. mode
69
70 Test Bank
A 3. The most frequently occurring value in a set of data is called the
_______.
E A. mode
Term B. mean
C. median
D. coefficient of variation
A 4. Which of the following is an appropriate measure of central

tendency for nominal data?
E A. mode
Term B. mean
C. median
C 5. Which of the following is an appropriate measure of central

tendency for ordinal data?
E A. standard deviation
Term B. mean
C. median
C 6. The lowest appropriate level of measurement for the mean is

_________.
E A. nominal
Term B. ordinal
C. interval
D. ratio
B 7. The lowest appropriate level of measurement for the median is

_________.
E A. nominal
Term B. ordinal
C. interval
D. ratio
A 8. The lowest appropriate level of measurement for the mode is

_________.
E A. nominal
Term B. ordinal
Chapter 3: Descriptive Statistics 71
C. interval
D. ratio
72 Test Bank
C 9. The middle value in an ordered array of numbers is called the
_______.
E A. mode
Term B. mean
C. median
B 10. Another term for average is _______.
E A. mode
Term B. mean
C. median
D. variance
C 11. The Greek letter usually refers to the _______.
E A. population standard deviation

Term B. sample variance
C. population mean
D. sample mean
A 12. The Greek letter  usually refers to the _________.

C. population mean
D. sample mean
D 13. The notation X usually refers to the _______________.

C. population mean
D. sample mean
B 14. The notation S2 usually refers to the _______________.

C. population mean
D. sample mean
D 15. Which of the following is NOT a commonly used measure of
variability?
M A. variance
Term B. standard deviation
C. mean absolute deviation
D. average deviation
A 16. The sum of deviations about the arithmetic mean is always

equal to _______.
E A. zero
Term B. the variance
C. the mean absolute deviation
D. the standard deviation
C 17. The average of the squared deviations from the arithmetic mean
is called the _______.
M A. standard deviation
Term B. mean absolute deviation
C. variance
B 18. The sample variance is found by taking the square root of

_______.
E A. the sample mean

Term B. the sample variance
C. the coefficient of variation
D. the mean absolute deviation
C 19. The lowest appropriate level of measurement for standard

deviation is _________.
E A. nominal
Term B. ordinal
C. interval
D. ratio
B 20. The lowest appropriate level of measurement for the

Interquartile Range is _________.
E A. nominal
Term B. ordinal
C. interval
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D. ratio
D 21. The number of standard deviations that a value (X) is above or
below the mean is the _________________.
M A. absolute deviation
Term B. coefficient of variation
C. interquartile range
D. Z score
D 22. If the mean of a distribution is greater than the median, then the
distribution is ______.
M A. not skewed
Term B. symmetrical about its mean
C. skewed to the left
D. skewed to the right
C 23. If the median of a distribution is greater than mean, then the
distribution is _________.
M A. not skewed
Term B. symmetrical about its mean
C. skewed to the left
D. skewed to the right
D 24. The interquartile range is _____________.
E A. the largest value minus the least value

Term B. the ratio of the mean to the standard deviation
C. negative if the distribution is skewed to the left
D. Q3 - Q1
B 25. The five numbers used to construct a box and whisker plot are
_______.
M A. the mean, standard deviation, Q1, Q3, and the coefficient of

variation
Term B. Q1, Q2, Q3, the least value of X, and the largest value of X
C. the mean, standard deviation, least value of X, largest value
of X, and Q2
D. the coefficient of variation, IQR, mean, Q2, and mean
absolute deviation
D 26. Which of the following is a measure of relative dispersion?
M A. standard deviation
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Term B. interquartile range
C. mean absolute deviation
D. coefficient of dispersion
A 27. The empirical rule says that approximately what percentage of
the values would be within 2 standard deviations of the mean in
a bell shaped set of data?
M A. 95%
Term B. 68%
C. 50%
D. almost all
B 28. The empirical rule says that approximately what percentage of

the values would be within 1 standard deviation of the mean in a
bell shaped set of data?
M A. 95%
Term B. 68%
C. 50%
D. almost all
A 29. Chebyshev's Theorem says that how many values will be within
2 standard deviations of the mean?
H A. at least 75%
Calc B. at least 68%
C. at least 95%
D. at least 89%
D 30. Chebyshev's Theorem says that the number of values within 3

standard deviations of the mean will be _______.
M A. at least 75%
Calc B. at least 68%
C. at least 95%
D. at least 89%
B 31. A statistics student made the following grades on 5 tests: 84, 78,
88, 78, and 72. What is the mean grade?
M A. 78
Calc B. 80
C. 72
D. 84
C 32. A statistics student made the following grades on 5 tests: 84,
78, 88, 72, and 72. What is the median grade?
M A. 88
Calc B. 72
C. 78
D. 80
A 33. A statistics student made the following grades on 5 tests: 84,

78, 88, 78, and 82. What is the mode?
E A. 78
Calc B. 80
C. 88
D. 84
D 34. A commuter travels many miles to work each morning. She has
timed this trip 5 times during the last month. The time (in
minutes) required to make this trip was 34, 39, 41, 35, and 41.
The mean time required for this trip was _______.
M A. 35
Calc B. 41
C. 37.5
D. 38
A 35. A commuter travels many miles to work each morning. She has
The median time required for this trip was _______.
M A. 39
Calc B. 41
C. 37.5
D. 38
B 36. A commuter travels many miles to work each morning. She has
The modal time required for this trip was _______.
E A. 39
Calc B. 41
C. 37.5
D. 38
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B 37. A commuter travels many miles to work each morning. She has
The mean time required for this trip was 40 minutes. What is
the variance for this sample data?
H A. 8.8
Calc B. 11
C. 0
D. 3
A 38. A commuter travels many miles to work each morning. She has
the standard deviation for this sample data?
H A. 3.32
Calc B. 2.97
C. 1.73
D. 11
D 39. A commuter travels many miles to work each morning. She has
the mean absolute deviation for this sample data?
H A. 0
Calc B. 12
C. 3
D. 2.4
D 40. Abel Alonzo, Director of Human Resources, is exploring

employee absenteeism at the Batesville Bottling during the last
operating year. A sample of six personnel records produced the
following data: 0, 2, 4, 7, 2, 9.
The mean number absences per employee is ____________.
M A. 3
BCalc B. 2
C. 5.5
D. 4
B 41. Abel Alonzo, Director of Human Resources, is exploring
following data: 0, 2, 4, 7, 2, 9.
The modal number absences per employee is ____________.
E A. 3
BCalc B. 2
C. 5.5
D. 4
A 42. Abel Alonzo, Director of Human Resources, is exploring

following data: 0, 2, 4, 7, 2, 9.
The median number absences per employee is ____________.
M A. 3
BCalc B. 2
C. 5.5
D. 4
A 43. Abel Alonzo, Director of Human Resources, is exploring

following data: 0, 2, 4, 7, 2, 9.
The variance of the number absences per employee is
____________.
H A. 11.6
BCalc B. 9.67
C. 3.41
D. 3.11
C 44. Abel Alonzo, Director of Human Resources, is exploring

following data: 0, 2, 4, 7, 2, 9.
The standard deviation of the number absences per employee is
____________.
H A. 11.6
BCalc B. 9.67
C. 3.41
D. 3.11
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A 45. The mean life of a particular brand of light bulb is 1000 hours
and the standard deviation is 50 hours. It can be concluded that
at least 75% of the bulbs will last between _______.
H A. 900 and 1100 hours

BCalc B. 950 and 1050 hours
C. 850 and 1150 hours
D. 800 and 1200 hours
C 46. The mean life of a particular brand of light bulb is 1000 hours
and the standard deviation is 50 hours. It can be concluded that
at least 89% of the bulbs will last between _______.
H A. 900 and 1100 hours

BCalc B. 950 and 1050 hours
B 47. The mean life of a particular brand of light bulb is 1000 hours
and the standard deviation is 50 hours. Tests show that the life
of the bulb is approximately normally distributed. It can be
concluded that approximately 68% of the bulbs will last between
_______.
M A. 900 and 1100 hours

Calc B. 950 and 1050 hours
A 48. Jessica Salas, president of Salas Products, is reviewing the

warranty policy for her company's new model of automobile
batteries. Life tests performed on a sample of 100 batteries
indicated: (1) an average life of 75 months, (2) a standard
deviation of 5 months, and (3) battery life is approximately
normally distributed. Approximately 68% of the batteries will
last between ________________.
M A. 70 and 80 months
BCalc B. 60 and 90 months
C. 65 and 85 months
D. 55 and 95 months
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C 49. Jessica Salas, president of Salas Products, is reviewing the
last between ________________.
C. 65 and 85 months
D. 55 and 95 months
B 50. Jessica Salas, president of Salas Products, is reviewing the

last between ________________.
C. 65 and 85 months
D. 55 and 95 months
C 51. Jessica Salas, president of Salas Products, is reviewing the

normally distributed. What percentage of the batteries will fail
within the first 65 months of use?
H A. 0.5%
BCalc B. 1%
C. 2.5%
D. 5%
B 52. The average starting salary for graduates at a university is

$25,000 with a standard deviation of $2,000. If a histogram of
the data shows the it takes on a mound shape, the empirical rule
says that approximately 95% of the graduates would have a
starting salary between _______.
M A. 23,000 and 27,000
BCalc B. 21,000 and 29,000
C. 19,000 and 31,000
D. 24,000 and 26,000
A 53. The average starting salary for graduates at a university is

$25,000 with a standard deviation of $2,000. If a histogram of
the data shows the it takes on a mound shape, the empirical rule
says that approximately 68% of the graduates would have a
starting salary between _______.
M A. 23,000 and 27,000

BCalc B. 21,000 and 29,000
C. 19,000 and 31,000
D. 24,000 and 26,000
A 54. The average starting salary for graduates at a university is

$25,000 with a standard deviation of $2,000. A histogram of the
data shows the shape to be very erratic so Chebyshev's
Theorem should be used. How many of the graduates would
have a starting salary between 21,000 and 29,000?
H A. at least 75%
BCalc B. at least 89%
C. at least 68%
D. at least 95%
B 55. The average starting salary for graduates at a university is

$25,000 with a standard deviation of $2,000. A histogram of the
data shows the shape to be very erratic so Chebyshev's
Theorem should be used. How many of the graduates would
have a starting salary between 19,000 and 31,000?
H A. at least 75%
BCalc B. at least 89%
C. at least 68%
D. at least 95%
B 56. The ages of students in a class have been put into the frequency
distribution below.
Age Number of Students
18 3
19 5
20 28
21 4
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What is the average age of these students?
M A. 19.50
Calc B. 19.85
C. 20.00
D. 28.00
B 57. The ages of students in a class have been put into the frequency
distribution below.
18 3
19 5
20 28
21 4
What is the standard deviation for this (population) set of data?
H A. 0.494
Calc B. 0.703
C. 1.12
D. 1.25
D 58. The ages of students in a class have been put into the frequency
distribution below.
18 3
19 5
20 28
21 4
What is the median age of these students?
M A. 18
Calc B. 19
C. 19.5
D. 20
C 59. The ages of students in a class have been put into the frequency
distribution below.
18 3
19 5
20 28
21 4
What is the modal age of these students?
E A. 18
Calc B. 19
C. 20
D. 21
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A 60. The mean, median, and mode for the following set of data are all
the same value (20). Data: 18, 19, 20, 20, 21, 22. If the
highest number were changed from 22 to 322, which of the
following would be most affected?
M A. mean
App B. median
C. mode
D. sample size
C 61. In its Industry Norms and Key Business Ratios, Dun & Bradstreet
reported that Q1, Q2, and Q3 for 577 motorcycle dealers' current
ratios were 1.3, 1.6 and 2.9, respectively. From this we can
conclude that __________________.
M A. 68% of these dealers had current ratios between 1.3 and 2.9
BApp B. 95% of these dealers had current ratios between 1.3 and 2.9
C. 50% of these dealers had current ratios between 1.3 and 2.9
D. 75% of these dealers had current ratios between 1.3 and 2.9
C 62. An instructor is evaluating the performance of students on a

test. He records the number of points that each student missed
and created a frequency distribution. This is provided below:
Points missed Number of students
0-under 10 2
10-under 20 4
20-under 30 10
30-under 40 8
40-under 50 6
What is the mean number of points missed?
H A. 20
Calc B. 25
C. 29
D. 30
0-under 10 2
10-under 20 4
20-under 30 10
30-under 40 8
40-under 50 6
What is the variance for this population?
H A. 11.43
Calc B. 135.17
C. 130.67
D. 200
D 64. In its Industry Norms and Key Business Ratios, Dun & Bradstreet
conclude that __________________.
M A. 68% of these dealers had current ratios of 1.6 or less

BApp B. 95% of these dealers had current ratios of 2.9 or less
C. 50% of these dealers had current ratios of 2.9 or more
D. 75% of these dealers had current ratios of 1.3 or more
A 65. An instructor is evaluating the performance of students on a

0-under 10 2
10-under 20 4
20-under 30 10
30-under 40 8
40-under 50 6
What is the standard deviation for this population?
H A. 11.43
Calc B. 14.14
C. 11.63
D. 135.17

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0-under 10 2
10-under 20 4
20-under 30 10
30-under 40 8
40-under 50 6
If this is considered a sample, what is the standard deviation?
H A. 11.43
Calc B. 14.14
C. 11.63
D. 135.17
D 67. Which of the following is always true?
E A. the median is always one-half of the mean

Term B. the mode is always greater than the mean
C. the mean is always equal to the median
D. the standard deviation is always the square root of the
variance
A 68. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc.,

suspects irregularities in the payroll system, and orders an
inspection of "each and every payroll voucher issued since
January 1, 1993." Each payroll voucher was inspected and the
following frequency distribution was compiled.
Errors Per Voucher Number of Vouchers
0-under 2 500
2-under 4 400
4-under 6 300
6-under 8 200
8-under 10 100
The mean number of errors per voucher is __________.
H A. 3.67
BCalc B. 5
C. 750
D. 300
A 69. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc.,
suspects irregularities in the payroll system, and orders an
inspection of "each and every payroll voucher issued since
January 1, 1993." Each payroll voucher was inspected and the
following frequency distribution was compiled.
Errors Per Voucher Number of Vouchers
0-under 2 500
2-under 4 400
4-under 6 300
6-under 8 200
8-under 10 100
The distribution of errors per voucher is __________.
M A. symmetrical with respect to its mean

BApp B. skewed to the right
C. not skewed
D. negatively skewed
C 70. A sales manager has sampled past sales records to determine

how many refrigerators are sold each day. Daily records for a
sample of 10 days have been selected. The sales on these days
are: 0, 4, 4, 2, 1, 3, 4, 5, 2, 7. What is the mean daily sales?
M A. 2
BCalc B. 4
C. 3.2
D. 10

are: 0, 4, 3, 2, 1, 3, 5, 5, 2, 5. What is the median daily sales?
M A. 3.5
BCalc B. 2
C. 3
D. 4
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D 72. A sales manager has sampled past sales records to determine
are: 0, 4, 4, 2, 1, 3, 4, 5, 2, 7. The mode of data set is ______.
E A. 3.5
BCalc B. 2
C. 3
D. 4
B 73. A sales manager has sampled past sales records to determine
how many televisions are sold each day. Daily records for a
are: 2, 4, 5, 2, 7. What is the mean for this set of data?
E A. 2
BCalc B. 4
C. 5
D. 4.5
A 74. A sales manager has sampled past sales records to determine

are: 2, 4, 5, 2, 7. What is the mode for this set of data?
E A. 2
BCalc B. 4
C. 5
D. 4.5
A 75. In its Industry Norms and Key Business Ratios, Dun & Bradstreet
conclude that __________________.
E A. 50% of these dealers had current ratios of 1.6 or less

BApp B. 68% of these dealers had current ratios of 1.3 or less
C. 50% of these dealers had current ratios of 2.9 or more
D. 95% of these dealers had current ratios of 1.3 or more
are: 2, 4, 5, 2, 7. What is the standard deviation for this set of
sample data?
M A. 2
BCalc B. 0
C. 2.12
D. 4.5

are: 2, 4, 5, 2, 7. What is the variance for this set of sample
data?
M A. 4
BCalc B. 4.5
C. 2
D. 0

are: 2, 4, 5, 2, 7. What is the median for this set of data?
E A. 2
BCalc B. 4
C. 5
D. 4.5

are: 2, 4, 5, 2, 7. What is the mean absolute deviation for this
set of data?
M A. 0
BCalc B. 2
C. 1.6
D. 4
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D 80. Consider the following 3 numbers: 10, 20, 30. In calculating
measures of central tendency and variability for this set of data,
which of the following is true?
M A. you can calculate the mean only if you know if this is a

sample or a population
App B. you can calculate the median only if you know if this is a
C. you can calculate the mode only if you know if this is a
D. you can calculate the variance only if you know if this is a
C 81. Liz Chapa manages a portfolio of 250 common stocks. Her staff
compiled the following performance statistics for two new
stocks.
Rate of Return
Stock Standard
Dev
iati
on
Salas Products, 5%
Inc.
Hot Boards, Inc. 5%
The coefficient of variation for Salas Products, Inc. is __________.
E A. 300%
BCalc B. 100%
C. 33%
D. 5%
B 82. The following box and whisker plot was constructed for the age
of accounts receivable.
The box and whisker plot reveals that the accounts receivable
ages are _______.
E A. skewed to the left

C. not skewed
D. normally distributed
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A 83. The following box and whisker plot was constructed for the age
ages are _______.

C. not skewed
A 84. The following frequency distribution was constructed for the age
The frequency distribution reveals that the accounts receivable

ages are _______.

C. not skewed
B 85. The following frequency distribution was constructed for the age

ages are _______.

C. not skewed
B 86. Liz Chapa manages a portfolio of 250 common stocks. Her staff
compiled the following performance statistics for two new
stocks.
Rate of Return
Stock Standard
Dev
iati
on
Salas Products, 5%
Inc.
Hot Boards, Inc. 5%
The coefficient of variation for Salas Products, Inc. is __________.
M A. equal to the coefficient of variation for Hot Boards

BCalc B. greater than the coefficient of variation for Hot Boards
C. less than the coefficient of variation for Hot Boards
D. 25%
D 87. David Desreumaux, VP of Human Resources of American First

Banks (AFB), is reviewing the employee training programs of AFB
banks. His staff compiled the following table of regional
statistics on teller training hours.
Southeast Southwest
Re Region
gi
on
Mean 20 28
Median 20 20
Mode 20 21
Standard 5 7
De
via
tio
n
What can David conclude from these statistics?
M A. the Southeast distribution is skewed to the left

BApp B. the Southeast distribution is skewed to the right
C. the Southwest distribution is skewed to the left
D. the Southwest distribution is skewed to the right
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A 88. David Desreumaux, VP of Human Resources of American First
Southeast Southwest
Re Region
gi
on
Mean 20 28
Median 20 20
Mode 20 21
Standard 5 7
De
via
tio
n
M A. the Southwest distribution has the greater dispersion

BApp B. the Southwest distribution is skewed to the left
C. the Southeast distribution has the greater dispersion
D. the Southeast distribution is skewed to the left
D 89. David Desreumaux, VP of Human Resources of American First

Southeast Southwest
Re Region
gi
on
Mean 20 28
Median 20 20
Mode 20 21
Standard 5 7
De
via
tio
n
M A. the Southwest distribution has the greater relative dispersion

BApp B. the Southwest distribution is skewed to the left
C. the Southeast distribution has the greater relative dispersion
D. the Southeast distribution is not skewed
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D 90. Manuel Banales, Marketing Director of Plano Power Plants, Inc.’s
Electrical Division, is leading a study to assess the relative
importance of product features. Two items on a survey
questionnaire distributed to 100 of Plano’s customers asked
them to rate the importance of “ease of maintenance” and
“efficiency of operation” on a scale of 1 to 10 (with 1 meaning
“not important” and 10 meaning “highly important”). His staff
assembled the following statistics on these two items.
Ease of Maintenance Efficiency of
Operation
Mean 7.5 6.0
Median 8.5 5.5
Mode 9.0 4.5
Standard 1.5 2.5
De
via
tio
n
What can Manuel conclude from these statistics?
M A. the Ease of Maintenance distribution is skewed to the right

BApp B. the Ease of Maintenance distribution is not skewed
C. the Efficiency of Operation distribution is skewed to the left
D. the Efficiency of Operation distribution is positively skewed
B 91. Manuel Banales, Marketing Director of Plano Power Plants, Inc.’s

Operation
Mean 7.5 6.0
Median 8.5 5.5
Mode 9.0 4.5
Standard 1.5 2.5
De
via
tio
n
M A. the Ease of Maintenance distribution has more relative

dispersion
BApp B. the Ease of Maintenance distribution has less dispersion
C. the Efficiency of Operation distribution is skewed to the left
D. the Efficiency of Operation distribution has less dispersion
100 Test Bank
A 92. Manuel Banales, Marketing Director of Plano Power Plants, Inc.’s
Operation
Mean 7.5 6.0
Median 8.5 5.5
Mode 9.0 4.5
Standard 1.5 2.5
De
via
tio
n
M A. Ease of Maintenance is more important than Efficiency of

Operation
BApp B. Efficiency of Operation is more important than Ease of
Maintenance
C. Efficiency of Operation and Ease of Maintenance are equally
important
D. the Efficiency of Operation distribution has less dispersion
B 93. In its Industry Norms and Key Business Ratios, Dun & Bradstreet
reported that Q1, Q2, and Q3 for 2,037 gasoline service stations'
sales to inventory ratios were 20.8, 33.4, and 53.8, respectively.
From this we can conclude that ____________.
E A. 68% of these service stations had sales to inventory ratios of

20.8 or less
BApp B. 50% of these service stations had sales to inventory ratios of
33.4 or less
C. 50% of these service stations had sales to inventory ratios of
53.8 or more
D. 95% of these service stations had sales to inventory ratios of
20.8 or more
A 94. Albert Abbasi, VP of Operations at Ingleside International Bank,
is evaluating the service level provided to walk-in customers.
Accordingly, his staff prepared the following distribution of
waiting time for walk-in customers.
Waiting Time Number of Customers
(in minutes)
0-under 2 60
2-under 4 30
4-under 6 10
The mean waiting time for this sample of walk-in customers is
_________.
H A. 2 minutes
BCalc B. 66.67 minutes
C. 33.33 minutes
D. 3 minutes
B 95. Albert Abbasi, VP of Operations at Ingleside International Bank,

is evaluating the service level provided to walk-in customers.
Accordingly, his staff prepared the following distribution of
waiting time for walk-in customers.
(in minutes)
0-under 2 60
2-under 4 30
4-under 6 10
The standard deviation of waiting time for this sample of walk-in
customers is ______.
H A. 2 minutes
BCalc B. 1.35 minutes
C. 1.82 minutes
D. 1.80 minutes
C 96. David Desreumaux, VP of Human Resources of American First

banks. His staff reports several statistics for teller training
hours. The mean is 20 hours, the standard deviation is 5 hours,
the median is 15 hours, and mode is 10 hours.
The Pearsonian coefficient of skewness for teller training hours is
__________.
M A. 6
BCalc B. 1
C. 3
D. 4
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C 97. The following box and whisker plot was constructed for the age
ages are _______.

C. not skewed
C 98. The following frequency distribution was constructed for the age

ages are _______.

C. not skewed
D. positively skewed
A 99. Which Excel function returns the second quartile?
E A. median()
Term B. mode()
C. max()
D. quart2()
B 100. Which Excel function returns the population standard deviation?
M A. pstdev()
Term B. stdevp()
C. stdev()
D. stdevpop()
C 101. Which Excel function returns the sample standard deviation?
M A. sstdev()
Term B. stdevs()
C. stdev()
D. stdevsample()
D 102. Which Excel function returns the arithmetic mean?
M A. amean()
Term B. meana()
C. mean()
D. average()
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103. Albert Abbasi, VP of Operations at Ingleside International Bank
(IIB), is evaluating the service level provided to walk-in
customers. Accordingly, his staff prepared the following
distribution of waiting time for walk-in customers.
(in minutes)
0-under 2 120
2-under 4 40
4-under 6 25
6-under 8 10
8-under 10 5
In a recent survey, 70% of the walk-in customers indicated that
waiting four minutes (or more) was unacceptable. Presently, IIB
has no direct competitors, but a competing bank is under
construction across the street.
Discuss the managerial and business implications of this

situation. What alternatives should Albert consider? What
graphic depiction should he choose for his presentation to the
bank’s board of directors?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
104. Angelina Arnott, Director of National Industrial Sales, is
concerned by a deteriorating sales trend. Specifically, the
number of customers is stable at 1,500, but they are purchasing
less each year. She orders her staff to search for causes of the
downward trend by surveying all 1,500 industrial customers.
One question on the survey asked the customers to rate
“Merchandise is delivered on time” on a scale of 1 to 5, with 1
meaning “never” and 5 meaning “always”.
Merchandise Delivered On Time Number of Customers
1 100
2 200
3 300
4 700
5 100
No Response 100
Discuss the managerial and business implications of Angelina’s

situation. Identify some possible causes of the trend. What
corrective actions are available for each cause? What graphic
depiction(s) should she choose for her report to the VP of
Marketing?
M _________________________________________________________________
BApp _________________________________________________________________
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106 Test Bank
105. Annualized rates of return were calculated from closing prices of
Caterpillar (CAT) and General Mills (GIS) common stock.
Descriptive statistics of these rates of return presented in the
following table.
CAT GIS
Mean 0.233621705 0.139744793
Standard Error 0.162775427 0.097267227
Median 0.194367839 0.122108626
Mode #N/A 0
Standard Deviation 1.091930758 0.652488394
Sample Variance 1.19231278 0.425741105
Kurtosis 6.478114897 -0.59713571
Skewness 1.647492156 0.058132445
Range 6.669350226 2.710777183
Minimum -1.770866463 -1.256246317
Maximum 4.898483762 1.454530866
Sum 10.51297674 6.288515695
Count 45 45
Describe what these descriptive statistics reveal about the

market performance of these two stocks.
M
BApp
106. Descriptive statistics of daily sales ($'s) were calculated for two
Bob's Quick Shops -- the Southside store, and the Midcity store.
Southside Midcity
Mean 5025.622 2733.333
Standard Error 118.306 249.1417
Median 5110.73 2000
Mode #N/A 1000
Standard Deviation 916.394 1929.843
Sample Variance 839778 3724294
Kurtosis -0.64387 -0.49322
Skewness -0.05517 0.860968
Range 3949.172 6000
Minimum 3133.362 1000
Maximum 7082.534 7000
Sum 301537.3 164000
Count 60 60
Describe what these descriptivie statistics indicate about daily

sales at these two stores.
M
BApp
108 Test Bank

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CHAPTER THREE

C 1. Statistical measures used to yield information about the middle

C 2. Which of the following is NOT a measure of central tendency?

A 4. Which of the following is an appropriate measure of central

C 5. Which of the following is an appropriate measure of central

C 6. The lowest appropriate level of measurement for the mean is

B 7. The lowest appropriate level of measurement for the median is

A 8. The lowest appropriate level of measurement for the mode is

B 10. Another term for average is _______.

E A. population standard deviation

E A. population standard deviation

D 13. The notation X usually refers to the _______________.

E A. population standard deviation

B 14. The notation S2 usually refers to the _______________.

E A. population standard deviation

A 16. The sum of deviations about the arithmetic mean is always

B 18. The sample variance is found by taking the square root of

E A. the sample mean

C 19. The lowest appropriate level of measurement for standard

B 20. The lowest appropriate level of measurement for the

D 24. The interquartile range is _____________.

E A. the largest value minus the least value

M A. the mean, standard deviation, Q1, Q3, and the coefficient of

D 26. Which of the following is a measure of relative dispersion?

B 28. The empirical rule says that approximately what percentage of

D 30. Chebyshev's Theorem says that the number of values within 3

A 33. A statistics student made the following grades on 5 tests: 84,

D 40. Abel Alonzo, Director of Human Resources, is exploring

A 42. Abel Alonzo, Director of Human Resources, is exploring

A 43. Abel Alonzo, Director of Human Resources, is exploring

C 44. Abel Alonzo, Director of Human Resources, is exploring

H A. 900 and 1100 hours

H A. 900 and 1100 hours

M A. 900 and 1100 hours

A 48. Jessica Salas, president of Salas Products, is reviewing the

B 50. Jessica Salas, president of Salas Products, is reviewing the

C 51. Jessica Salas, president of Salas Products, is reviewing the

B 52. The average starting salary for graduates at a university is

A 53. The average starting salary for graduates at a university is

M A. 23,000 and 27,000

A 54. The average starting salary for graduates at a university is

B 55. The average starting salary for graduates at a university is

C 62. An instructor is evaluating the performance of students on a

M A. 68% of these dealers had current ratios of 1.6 or less

A 65. An instructor is evaluating the performance of students on a

C 66. An instructor is evaluating the performance of students on a

D 67. Which of the following is always true?

E A. the median is always one-half of the mean

A 68. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc.,

M A. symmetrical with respect to its mean

C 70. A sales manager has sampled past sales records to determine

C 71. A sales manager has sampled past sales records to determine

A 74. A sales manager has sampled past sales records to determine

E A. 50% of these dealers had current ratios of 1.6 or less

B 77. A sales manager has sampled past sales records to determine

B 78. A sales manager has sampled past sales records to determine

C 79. A sales manager has sampled past sales records to determine

M A. you can calculate the mean only if you know if this is a

E A. skewed to the left