Applied Statistics in Business and Economics David Doane 6th Edition Test Bank
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Sample Test
Applied Statistics in Business and Economics, 6e (Doane)
Chapter 3 Describing Data Visually
1) It is easier to read the data values on a 3D column chart
than on a 2D column chart.
Answer: FALSE
Explanation: Height is harder to judge on a 3D chart.
Difficulty: 1 Easy
Topic: 03.05 Column and Bar Charts
Learning Objective: 03-06 Make an effective column chart
or bar chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The column chart should be avoided if you are plotting time
series data.
Answer: FALSE
Explanation: Line charts are more common, but column
charts also work for a time series.
Difficulty: 2 Medium
Topic: 03.05 Column and Bar Charts
Learning Objective: 03-06 Make an effective column chart
or bar chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) The line chart is appropriate for categorical (qualitative)
data.
Answer: FALSE
Explanation: Only numerical data can be plotted on a line
chart.
Difficulty: 1 Easy
Topic: 03.04 Line Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) The Pareto chart is used to display the “vital few” causes of
problems.
Answer: TRUE
Explanation: Causes are displayed in a column or bar chart
sorted in order of frequency.
Difficulty: 1 Easy
Topic: 03.05 Column and Bar Charts
Learning Objective: 03-06 Make an effective column chart
or bar chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Excel’s pyramid chart is generally preferred to a plain 2D column
chart.
Answer: FALSE
Explanation: Avoid novelty charts when a plain 2D bar
chart will do.
Difficulty: 1 Easy
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-06 Make an effective column chart
or bar chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Excel’s pyramid charts make it easier to read the data
values.
Answer: FALSE
Explanation: Avoid novelty charts when a plain 2D column
chart will do.
Difficulty: 1 Easy
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-06 Make an effective column chart
or bar chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) Dot plots are similar to histograms with many bins (classes).
Answer: TRUE
Explanation: Height of the dot stack is analogous to bar
height.
Difficulty: 2 Medium
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) Compared to a dot plot, we lose some detail when we present
data in a frequency distribution.
Answer: TRUE
Explanation: Individual data values are easier to see on a
dot plot.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) Stacked dot plots are useful in understanding the association
between two paired quantitative variables (X, Y).
Answer: FALSE
Explanation: You would prefer a scatter plot for X–Y data.
Difficulty: 3 Hard
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) Log scales are common because most people are familiar with
them.
Answer: FALSE
Explanation: Log scales seem to be harder for the average
business person to interpret
Difficulty: 2 Medium
Topic: 03.04 Line Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
11) Sturges’ Rule should override judgment about the “right”
number of histogram bins.
Answer: FALSE
Explanation: Sturges’ Rule is only a starting point or
guideline.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-03 Make a histogram with appropriate
bins.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
12) Sturges’ Rule is merely a suggestion, not an ironclad
requirement.
Answer: TRUE
Explanation: Sturges’ Rule is only a starting point or
guideline.
Difficulty: 1 Easy
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-03 Make a histogram with
appropriate bins.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
13) Excel’s 3D pie charts are usually clearer than 2D pie
charts.
Answer: FALSE
Explanation: Many people like 3D better, but it is harder
to judge slice size.
Difficulty: 1 Easy
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
14) A common error with pie charts is using too few “slices.”
Answer: FALSE
Explanation: The opposite is true (too many slices are
often seen).
Difficulty: 2 Medium
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
15) A pie chart can generally be used instead of a bar chart.
Answer: FALSE
Explanation: No, a pie chart is specialized (only for
parts of a whole).
Difficulty: 2 Medium
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
16) A column chart can sometimes be used instead of a line chart
for time series data.
Answer: TRUE
Explanation: Line charts and column charts may be used to
display time series data.
Difficulty: 2 Medium
Topic: 03.05 Column and Bar Charts
Learning Objective: 03-06 Make an effective column chart
or bar chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
17) Pie charts are attractive to statisticians, but are rarely
used in business or general media.
Answer: FALSE
Explanation: Pie charts make it hard to judge data values
precisely, but often are colorful.
Difficulty: 1 Easy
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
18) Pie charts are useful in displaying frequencies that sum to
a total.
Answer: TRUE
Explanation: That is exactly what pie charts are for
(e.g., industry market shares).
Difficulty: 1 Easy
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) Dot plots may not reveal the shape of a distribution when
the sample is small.
Answer: TRUE
Explanation: You need a fairly large sample size to assess
shape on a dot plot.
Difficulty: 1 Easy
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
20) Scatter plots are used to visualize association in samples
of paired data (X, Y).
Answer: TRUE
Explanation: That is exactly what a scatter plot is for.
Difficulty: 1 Easy
Topic: 03.07 Scatter Plots
Learning Objective: 03-08 Make and interpret a scatter
plot.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
21) The zero origin rule may be waived for column or line charts
if the objective is merely to visualize relative change over time.
Answer: FALSE
Explanation: A nonzero origin is always potentially
deceptive if we want to know relative size.
Difficulty: 2 Medium
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-10 Recognize deceptive graphing
techniques.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
22) In a bimodal histogram, the two highest bars will have the
same height.
Answer: FALSE
Explanation: Not necessarily, though they might be the
same.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-04 Identify skewness, modal
classes, and outliers in a histogram.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
23) A frequency distribution is a tabulation of n data values into
classes called bins.
Answer: TRUE
Explanation: This is the definition of a frequency
distribution.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
24) A dot plot would be useful in visualizing scores on an exam
in a class of 30 students.
Answer: TRUE
Explanation: Because the sample is small and data values
are discrete, a dot plot would be good.
Difficulty: 2 Medium
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
25) A frequency distribution usually has equal bin widths.
Answer: TRUE
Explanation: Unequal bins are possible, but rare (software
default is equal bins).
Difficulty: 1 Easy
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
26) Line charts are not used for cross-sectional data.
Answer: TRUE
Explanation: Line charts are for time series data.
Difficulty: 2 Medium
Topic: 03.04 Line Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
27) A scatter plot is useful in visualizing trends over time.
Answer: FALSE
Explanation: Use a line chart to visualize trends.
Difficulty: 1 Easy
Topic: 03.07 Scatter Plots
Learning Objective: 03-08 Make and interpret a scatter
plot.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
28) A scatter plot requires two quantitative variables (i.e.,
not categorical data).
Answer: TRUE
Explanation: An X–Y plot makes no
sense for nonnumerical data.
Difficulty: 2 Medium
Topic: 03.07 Scatter Plots
Learning Objective: 03-08 Make and interpret a scatter
plot.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
29) The number of bins in this histogram (caffeine content in
mg/oz for 65 soft drinks) is consistent with Sturges’ Rule.
Answer: FALSE
Explanation: Sturges’ Rule suggests k = 1 + 3.3 log
(65) = 6.98, or about 7 bins.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-03 Make a histogram with appropriate
bins.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
30) Because most data values are on the left, we would say that
this dot plot (burglary rates per 100,000 persons in 350 U.S. cities) shows a
distribution that is skewed to the left (negatively skewed).
Answer: FALSE
Explanation: The long right tail suggests positive
skewness.
Difficulty: 2 Medium
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-04 Identify skewness, modal classes,
and outliers in a histogram.
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
31) It is possible to construct a histogram or frequency polygon
with open-ended classes.
Answer: FALSE
Explanation: Without limits, we cannot mark bin limits on
a graph.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
32) Except for the Y-axis
scaling, a histogram will look the same if we use relative frequencies instead
of raw frequencies (with the same bin limits).
Answer: TRUE
Explanation: Relative frequencies are just raw frequencies
divided by the sample size.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
33) The ________ can be used to differentiate the “vital few”
causes of quality problems from the “trivial many” causes of quality problems.
1. A)
histogram
2. B)
scatter plot
3. C)
pareto chart
4. D)
box plot
Answer: C
Explanation: A Pareto chart shows the causes in descending
order of frequency.
Difficulty: 1 Easy
Topic: 03.05 Column and Bar Charts
Learning Objective: 03-06 Make an effective column chart
or bar chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
34) Which is not a
characteristic of a dot plot?
1. A)
Simplicity
2. B)
Legibility
3. C)
Wide bins
4. D)
Dot stacking
Answer: C
Explanation: In a simple dot plot, “bins” are really
individual data values (not a range). If two dots appear at the same axis
location, they must be stacked.
Difficulty: 1 Easy
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
35) Which display is most likely to reveal association
between X and Y?
1. A)
Dot plot
2. B)
Scatter plot
3. C)
Histogram
4. D)
Pareto chart
Answer: B
Explanation: Scatter plots reveal the degree of covariance
between X and Y.
Difficulty: 1 Easy
Topic: 03.07 Scatter Plots
Learning Objective: 03-08 Make and interpret a scatter
plot.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
36) Which criterion is least
likely to be used in choosing bins (classes) in a frequency
distribution?
1. A) Following
Sturges’ Rule
2. B)
Selecting “nice” class (bin) limits
3. C)
Using aesthetic judgment
4. D)
Always starting at zero
Answer: D
Explanation: Bins can start at any value. Judgment is
often used to select “nice” bins.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
37) Which of the following is true?
1. A)
Line charts are not used for cross-sectional data.
2. B)
Line charts are useful for visualizing categorical data.
3. C)
Pyramid charts are generally preferred instead of column charts.
4. D)
Pie charts can generally be used instead of bar charts.
Answer: A
Explanation: Line charts require numerical data over
time (not categorical data).
Difficulty: 2 Medium
Topic: 03.04 Line Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
38) Histograms generally do not reveal the
1. A)
exact data range.
2. B)
modal classes (bins).
3. C)
degree of skewness.
4. D)
relative frequencies.
Answer: A
Explanation: “Nice” bin limits may not end exactly
at xmin and xmax.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-04 Identify skewness, modal
classes, and outliers in a histogram.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
39) A column chart would be least suitable to display which data?
1. A)
Annual compensation of 500 company CEOs
2. B)
U.S. exports to its six largest trading partners
3. C)
Exxon-Mobil’s quarterly sales for the last four years
4. D)
One-year CD interest rates paid by the eight largest U.S. banks
Answer: A
Explanation: With 500 data values, a column chart would
reveal little. Make a histogram instead.
Difficulty: 2 Medium
Topic: 03.05 Column and Bar Charts
Learning Objective: 03-06 Make an effective column chart
or bar chart.
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
40) A line chart would not be
suitable to display which data?
1. A)
U.S. oil imports from OPEC nations for the last 20 years
2. B)
Annual compensation of the top 50 CEOs
3. C)
Exxon-Mobil’s quarterly sales data for the last five years
4. D)
Daily stock market closing prices of Microsoft for the past month
Answer: B
Explanation: Line charts are for time series data (not
cross-sectional data).
Difficulty: 2 Medium
Topic: 03.04 Line Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
41) Which is not a
tip for effective column charts?
1. A)
Time usually goes on the horizontal axis.
2. B) Column
height should be proportional to the quantity displayed.
3. C)
Label data values at the top of each column unless graphing lots of data.
4. D)
The zero origin rule may be waived for financial reports.
Answer: D
Explanation: Especially in financial reports, the zero
origin rule is vital.
Difficulty: 2 Medium
Topic: 03.05 Column and Bar Charts
Learning Objective: 03-06 Make an effective column chart
or bar chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
42) Which is not a
tip for effective line charts?
1. A)
Line charts are better than bar charts to display cross-sectional data.
2. B)
Numerical labels are omitted on a line chart if there are many data values.
3. C)
Omit data markers (e.g., squares, triangles) when there are many data values.
4. D)
Thick lines make it harder to see exact data values.
Answer: A
Explanation: Line charts are for numerical time
series data.
Difficulty: 2 Medium
Topic: 03.04 Line Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
43) Which is a reason for using a log scale for time series
data?
1. A) It
helps compare growth in time series of dissimilar magnitude.
2. B)
General business audiences find it easier to interpret a log scale.
3. C) On
a log scale, equal distances represent equal dollar amounts.
4. D)
The axis labels are usually easier to read in log units.
Answer: A
Explanation: While less familiar to some people, changing
magnitude may necessitate a log scale.
Difficulty: 2 Medium
Topic: 03.03 Effective Excel Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
44) Which is a not a
characteristic of pie charts?
1. A)
Pie charts can only convey a general idea of the data values.
2. B)
Pie charts are ineffective when they have too many slices.
3. C)
Exploded and 3D pie charts will allow more “slices.”
4. D)
Pie chart data always represent parts of a whole (e.g., market share).
Answer: C
Explanation: Pie charts with too many slices are hard to
read, regardless whether they are 2D or 3D.
Difficulty: 1 Easy
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
45) Excel’s pyramid charts
1. A)
are generally preferred to pie charts.
2. B)
should be avoided despite their visual appeal.
3. C)
are generally preferred to line charts.
4. D)
show trends more clearly than column charts.
Answer: B
Explanation: Avoid novelty charts in business
presentations. They are fun but unclear.
Difficulty: 2 Medium
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-10 Recognize deceptive graphing
techniques.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
46) Which is not a
reason why pie charts are popular in business?
1. A)
They can convey a general idea of the data to a nontechnical audience.
2. B)
They can display major changes in parts of a whole (e.g., market share).
3. C)
They are more precise than line charts, despite their low visual impact.
4. D)
They can be labeled with data values to facilitate interpretation.
Answer: C
Explanation: Pie charts are attractive to display parts of
a whole, but can be hard to read precisely despite their strong visual impact.
Difficulty: 2 Medium
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
47) Which data would be suitable for a pie chart?
1. A)
Whirlpool Corporation’s sales revenue for the last five years
2. B)
Oxnard University student category (undergraduate, masters, doctoral)
3. C)
Average SAT scores for entering freshmen at 10 major U.S. universities
4. D)
U.S. toy imports from China over the past decade
Answer: B
Explanation: Pie charts are only used to display parts of
a whole (not time series data).
Difficulty: 2 Medium
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
48) Which data would be suitable for a pie chart?
1. A)
Percent vote in the last election by party (Democrat, Republican, Other)
2. B)
Retail prices of six major brands of color laser printers
3. C)
Labor cost per vehicle for 10 major world automakers
4. D)
Prices paid by 10 students for their accounting textbooks
Answer: A
Explanation: Pie charts are only used to display parts of
a whole.
Difficulty: 2 Medium
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
49) Which data would be suitable for a pie chart?
1. A)
Average starting salary of MBA graduates from six ivy-league universities
2. B)
APR interest rates charged by the top five U.S. credit cards
3. C)
Last semester’s average GPA for students in seven majors in a business school
4. D)
The number of U.S. primary care clinics by type (urban, suburban, rural)
Answer: D
Explanation: Pie charts are only used to display parts of
a whole.
Difficulty: 2 Medium
Topic: 03.06 Pie Charts
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
50) Scatter plots are
1. A)
useful in visualizing trends over time.
2. B)
useful in identifying causal relationships.
3. C)
often fitted with a linear equation in Excel.
4. D)
applicable mainly to discrete data.
Answer: C
Explanation: Scatter plots reveal association (not
cause-and-effect). Excel makes it easy to fit a linear equation to a time
series on a scatter plot.
Difficulty: 2 Medium
Topic: 03.07 Scatter Plots
Learning Objective: 03-08 Make and interpret a scatter
plot.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
51) Which is not a
characteristic of an effective summary table?
1. A)
The main point should be clear within 10 seconds.
2. B)
Data to be compared should be displayed in rows, not columns.
3. C)
Data should be rounded to three or four significant digits.
4. D)
Use space instead of lines to separate columns.
Answer: B
Explanation: Research suggests that side-by-side
comparisons are easier. Rounding also helps, as well as not trying to show too
much in one table.
Difficulty: 2 Medium
Topic: 03.08 Tables
Learning Objective: 03-08 Make and interpret a scatter
plot.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
52) Effective summary tables generally
1. A)
have very detailed column headings and footnotes.
2. B)
round their data to three or four significant digits.
3. C)
use plenty of heavy vertical lines to separate the columns.
4. D)
have the raw data listed in a footnote for clarity.
Answer: B
Explanation: We round because too much accuracy may make
it harder to assess magnitudes (e.g., 5.01873 mm and 5.02016 mm both round to
5.02 mm). Modern table style usually omits vertical lines.
Difficulty: 2 Medium
Topic: 03.08 Tables
Learning Objective: 03-09 Make simple tables and pivot
tables.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
53) Pivot tables
1. A)
are similar in purpose to simple 2D pie charts.
2. B)
show how the data “pivot” around a point.
3. C)
show cross-tabulations of data.
4. D)
are not really tables at all.
Answer: C
Explanation: A pivot table shows frequency counts (or sums
or averages) in a row-column format.
Difficulty: 2 Medium
Topic: 03.08 Tables
Learning Objective: 03-09 Make simple tables and pivot
tables.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
54) Which of the following is least useful in visualizing
categorical data?
1. A)
Bar chart
2. B)
Pie chart
3. C)
Line chart
4. D)
Pareto chart
Answer: C
Explanation: Line charts are used to display numerical data over
time.
Difficulty: 1 Easy
Topic: 03.04 Line Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
55) Which is considered a novelty chart in Excel?
1. A)
Pie chart
2. B)
Column chart
3. C)
Pyramid chart
4. D)
Line chart
Answer: C
Explanation: Pyramid charts utilize the area trick and are
hard to read.
Difficulty: 1 Easy
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-10 Recognize deceptive graphing
techniques.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
56) We would use a pivot table to
1. A)
cross-tabulate frequencies of occurrence of two variables.
2. B)
rotate the data around a central point.
3. C)
establish cause-and-effect between X and Y.
4. D)
display the data in a 3D scatter plot.
Answer: A
Explanation: A pivot table shows frequency counts (or sums
or averages) in a row-column format.
Difficulty: 1 Easy
Topic: 03.08 Tables
Learning Objective: 03-09 Make simple tables and pivot
tables.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
57) Which is not considered
a deceptive graphical technique?
1. A)
Nonzero origin
2. B)
Elastic graph proportions
3. C)
Dramatic title
4. D)
Axis demarcations
Answer: D
Explanation: Axis demarcations are helpful on graphs with
numerical scales. We try to avoid nonzero origin and leading titles.
Difficulty: 1 Easy
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-10 Recognize deceptive graphing
techniques.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
58) Which is not considered
a deceptive graphical technique?
1. A) Undefined
units
2. B) 2D
graphs
3. C)
Authority figures
4. D)
Distracting pictures
Answer: B
Explanation: 2D graphs are generally acceptable. We avoid
distracting pictures and unclear units of measurement.
Difficulty: 1 Easy
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-10 Recognize deceptive graphing
techniques.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
59) Which is the most
serious deceptive graphical technique?
1. A)
Vague source
2. B)
Using bold colors
3. C)
Nonzero origin
4. D)
Unlabeled data points
Answer: C
Explanation: A nonzero origin can distort relative size.
Difficulty: 2 Medium
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-10 Recognize deceptive graphing
techniques.
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
60) Which is not a
poor graphing technique?
1. A)
Gratuitous pictures
2. B)
Labeled axis scales
3. C) 3D
bar charts
4. D)
Rotated axis
Answer: B
Explanation: Labeled axis scales are desirable for numerical
data. Rotated graphs are harder to read, and we avoid unnecessary pictures.
Difficulty: 1 Easy
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-10 Recognize deceptive graphing
techniques.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
61) Which of these deficiencies would be considered a major graphical
deception?
1. A)
Vague or unclear source
2. B)
Using more than one color or font
3. C)
Bar widths proportional to bar height
4. D)
Using a dramatic graph title
Answer: C
Explanation: The area trick occurs when bar width
increases along with bar height.
Difficulty: 2 Medium
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-10 Recognize deceptive graphing
techniques.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
62) Which is not a
characteristic of a log scale for time series data?
1. A)
Log scales are useful when data change by an order of magnitude.
2. B)
The distance from 5 to 50 is the same as the distance from 50 to 500.
3. C) On
a log scale, equal distances represent equal ratios.
4. D)
Log scales are generally familiar to the average reader.
Answer: D
Explanation: Some readers lack training to understand a
simple log scale, such as the fact that equal distances represent equal ratios.
Difficulty: 2 Medium
Topic: 03.04 Line Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
63) Which is not a
characteristic of using a log scale to display time series data?
1. A) A
log scale helps if we are comparing changes in two time series of dissimilar
magnitude.
2. B)
General business audiences find it easier to interpret a log scale.
3. C) If
you display data on a log scale, equal distances represent equal ratios.
Answer: B
Explanation: Some business audiences lack training to
understand a simple log scale, such as the fact that equal distances represent
equal ratios.
Difficulty: 2 Medium
Topic: 03.04 Line Charts
Learning Objective: 03-05 Make an effective line chart.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
64) This histogram shows Chris’s golf scores in his last 77
rounds at Devil’s Ridge. Which is not a
correct statement?
1. A)
The number of bins is consistent with Sturges’ Rule.
2. B)
The histogram has a noticeable bimodal shape.
3. C)
The modal class is 78 < 80.
4. D)
About 15 percent of his scores are in the interval 74 < 76.
Answer: A
Explanation: Sturges’ Rule suggests k = 1 + 3.3 log
(77) = 7.22, or about 7 bins.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-03 Make a histogram with
appropriate bins.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
65) Which is not revealed
on a scatter plot?
1. A)
Pairs of observed (xi, yi) data values
2. B)
Nonlinear relationships between X and Y
3. C)
Missing data values due to nonresponses
4. D)
Unusual data values (outliers)
Answer: C
Explanation: Excel simply omits missing data for a scatter
plot.
Difficulty: 2 Medium
Topic: 03.07 Scatter Plots
Learning Objective: 03-07 Make an effective pie chart.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
66) The distribution pictured below is
1. A)
bimodal and skewed right.
2. B)
bimodal and skewed left.
3. C)
skewed right.
4. D)
skewed left.
Answer: A
Explanation: You can see two modes and a longer right
tail.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-04 Identify skewness, modal
classes, and outliers in a histogram.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
67) The distribution pictured below is
1. A)
bimodal and skewed right.
2. B)
bimodal and skewed left.
3. C)
skewed right.
4. D)
skewed left.
Answer: D
Explanation: You can see one mode and a long left tail.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-04 Identify skewness, modal
classes, and outliers in a histogram.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
68) The graph below illustrates which deceptive technique?
1. A)
Poor Y axis
scale
2. B)
Area trick
3. C)
Unclear grid lines
4. D)
Dramatic title
Answer: B
Explanation: Area trick, because area increases along with
height.
Difficulty: 2 Medium
Topic: 03.09 Deceptive Graphs
Learning Objective: 03-10 Recognize deceptive graphing
techniques.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
69) Which is a characteristic of a histogram’s bars?
1. A)
The bar widths reveal the cumulative frequencies of data values.
2. B)
The bar widths indicate class intervals, and their areas indicate frequencies.
3. C)
The bar widths show class intervals, and their heights indicate frequencies.
4. D)
The bar widths are an exact multiple of the sample size.
Answer: C
Explanation: Histogram bar height shows frequencies within
each interval.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-03 Make a histogram with
appropriate bins.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
70) Below is a frequency distribution of earnings of 50
contractors in a country.
|
Earnings (thousands) |
Number of Contractors |
|
||||
|
|
1–10 |
|
|
2 |
|
|
|
|
11–20 |
|
|
7 |
|
|
|
|
20–30 |
|
|
12 |
|
|
|
|
31–40 |
|
|
15 |
|
|
|
|
41–50 |
|
|
8 |
|
|
|
|
50–60 |
|
|
6 |
|
|
Regarding this distribution, which of the following is correct?
1. A)
The frequency distribution contains too many class intervals.
2. B)
The class interval limits are ambiguous.
3. C)
Too few classes were chosen.
4. D)
The class intervals are too wide.
Answer: B
Explanation: There are overlapping bin limits.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
71) Bob found an error in the following frequency distribution.
What is it?
|
Class |
Frequency |
|||||
|
|
1–10 |
|
|
2 |
|
|
|
|
11–20 |
|
|
6 |
|
|
|
|
25–30 |
|
|
8 |
|
|
|
|
31–40 |
|
|
12 |
|
|
|
|
44–50 |
|
|
6 |
|
|
1. A)
The class limits are overlapping too much.
2. B)
The classes are not collectively exhaustive.
3. C)
There are too many classes by Sturges’ Rule.
4. D)
The first class must start at 0.
Answer: B
Explanation: Bin limits overlap. Where would you put a
data value of 23?
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
72) The point halfway between the bin limits in a frequency
distribution is known as the
1. A)
bin midpoint.
2. B)
bin limit.
3. C)
bin frequency.
4. D)
bin width.
Answer: A
Explanation: Bin midpoint is the average of the bin
limits.
Difficulty: 1 Easy
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
73) When using a dot plot with a small sample, which is least apparent?
1. A)
Dispersion of data values within the array
2. B)
The overall shape of the distribution
3. C)
Central tendency of data in the data set
4. D)
Location of data values within the array
Answer: B
Explanation: Dot plots reveal center and variation, but
shape cannot be judged very well in small samples.
Difficulty: 2 Medium
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
74) If you have 256 data points, how many classes (bins) would
Sturges’ Rule suggest?
1. A) 6
2. B) 7
3. C) 8
4. D) 9
Answer: D
Explanation: Sturges’ Rule suggests k = 1 + 3.3 log
(256) = 9 bins.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
75) If you have 32 data points, how many classes (bins) would
Sturges’ Rule suggest?
1. A) 5
2. B) 6
3. C) 7
4. D) 8
Answer: B
Explanation: Sturges’ Rule suggests k = 1 + 3.3 log
(32) = 6 bins.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
76) Which statement is not true
concerning Sturges’ Rule?
1. A) It
proposes adding one class (bin) to the histogram for each extra observation.
2. B) If
you double the sample size, you should add one class.
3. C)
Its purpose is to tell how many classes (bins) to use in a frequency distribution.
4. D) It
is only a guideline and may be overruled by other considerations.
Answer: A
Explanation: Sturges’ Rule suggests about k = 1 + 3.3 log (n) bins.
Difficulty: 3 Hard
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
77) To classify prices from 62 recent home sales, Sturges’ Rule
would recommend
1. A) 7
classes.
2. B) 8
classes.
3. C) 9 classes.
4. D) 10
classes.
Answer: A
Explanation: Sturges’ Rule suggests k = 1 + 3.3 log
(62) = 7 bins.
Difficulty: 2 Medium
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
78) A histogram can be defined as
1. A) a
chart whose bar widths show the cumulative frequencies of data values.
2. B) a
chart whose bar widths indicate class intervals and whose areas indicate
frequencies.
3. C) a
chart whose bar widths show class intervals and whose heights indicate
frequencies.
4. D) a
chart whose bar heights represent the value of each data point.
Answer: C
Explanation: Check the textbook definition of histogram.
Difficulty: 1 Easy
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-03 Make a histogram with
appropriate bins.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
79) An open-ended bin (e.g., “50 and over”) might be seen in a
frequency distribution when
1. A)
some data values are not integers.
2. B)
data values are nonnumerical.
3. C)
extremely large data values exist.
4. D)
some data are missing.
Answer: C
Explanation: For example, General Electric’s CEO earned
$15.2 million in 2010, which would not fit the bins of a histogram of incomes
for ordinary taxpayers.
Difficulty: 1 Easy
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-03 Make a histogram with
appropriate bins.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
80) The width of a class in a frequency distribution is known as
the
1. A)
midpoint.
2. B)
class limit.
3. C)
bin frequency.
4. D)
class interval.
Answer: D
Explanation: Bin
width and class
interval have the same meaning.
Difficulty: 1 Easy
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-03 Make a histogram with
appropriate bins.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
81) A population is of size 5,500 observations. When the data
are represented in a relative frequency distribution, the relative frequency of
a given interval is 0.15. The frequency in this interval is equal to
1. A)
4,675
2. B)
800
3. C)
675
4. D)
825
Answer: D
Explanation: 15 percent of 5,500 is 825.
Difficulty: 1 Easy
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
82) A population has 75 observations. One class interval has a
frequency of 15 observations. The relative frequency in this category is
1. A)
0.20
2. B)
0.10
3. C)
0.15
4. D)
0.75
Answer: A
Explanation: 15/75 = 0.20, or 20 percent.
Difficulty: 1 Easy
Topic: 03.02 Frequency Distributions and Histograms
Learning Objective: 03-02 Create a frequency distribution
for a data set.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
83) Below is a sorted stem-and-leaf diagram for the measured
speeds (miles per hour) of 49 randomly chosen vehicles on highway I-80 in
Nebraska. How many vehicles were traveling exactly the speed limit (70 mph)?
|
|
|
|
|
|
Stem unit |
= |
10 |
|
|
Leaf unit |
= |
1 |
|
|
|
|
|
|
|
Frequency |
Stem |
Leaf |
|
|
|
1 |
4 |
9 |
|
|
1 |
5 |
5 |
|
|
17 |
6 |
0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9 |
|
|
19 |
7 |
0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9 9 |
|
|
7 |
8 |
0 1 3 3 5 5 7 |
|
|
4 |
9 |
0 1 2 2 |
|
|
49 |
|
|
1. A) 0
2. B) 1
3. C) 19
4. D)
Impossible to tell
Answer: B
Explanation: The fourth stem has only one value of 70.
Difficulty: 1 Easy
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
84) Below is a sorted stem-and-leaf diagram for the measured
speeds (miles per hour) of 49 randomly chosen vehicles on highway I-80 in
Nebraska. What is the highest observed speed?
|
|
|
|
|
|
Stem unit |
= |
10 |
|
|
Leaf unit |
= |
1 |
|
|
|
|
|
|
|
Frequency |
Stem |
Leaf |
|
|
|
1 |
4 |
9 |
|
|
1 |
5 |
5 |
|
|
17 |
6 |
0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9 |
|
|
19 |
7 |
0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9 9 |
|
|
7 |
8 |
0 1 3 3 5 5 7 |
|
|
4 |
9 |
0 1 2 2 |
|
|
49 |
|
|
1. A) 92
2. B) 90
3. C) 87
4. D)
Impossible to tell
Answer: A
Explanation: The maximum data value in the top stem is 92.
Difficulty: 1 Easy
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
85) Below is a sorted stem-and-leaf diagram for the measured
speeds (miles per hour) of 49 randomly chosen vehicles on highway I-80 in
Nebraska. What is the mode?
|
|
|
|
|
|
Stem unit |
= |
10 |
|
|
Leaf unit |
= |
1 |
|
|
|
|
|
|
|
Frequency |
Stem |
Leaf |
|
|
|
1 |
4 |
9 |
|
|
1 |
5 |
5 |
|
|
17 |
6 |
0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9 |
|
|
19 |
7 |
0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9 9 |
|
|
7 |
8 |
0 1 3 3 5 5 7 |
|
|
4 |
9 |
0 1 2 2 |
|
|
49 |
|
|
1. A) 62
2. B) 79
3. C) 65
4. D)
Impossible to tell
Answer: C
Explanation: The value 65 occurs 4 times. Some other data
values occur 3 times.
Difficulty: 2 Medium
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
86) Below is a sorted stem-and-leaf diagram for the measured
speeds (miles per hour) of 49 randomly chosen vehicles on highway I-80 in
Nebraska. What is the fourth slowest speed in the sorted data array?
|
|
|
|
|
|
Stem unit |
= |
10 |
|
|
Leaf unit |
= |
1 |
|
|
|
|
|
|
|
Frequency |
Stem |
Leaf |
|
|
|
1 |
4 |
9 |
|
|
1 |
5 |
5 |
|
|
17 |
6 |
0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9 |
|
|
19 |
7 |
0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9 9 |
|
|
7 |
8 |
0 1 3 3 5 5 7 |
|
|
4 |
9 |
0 1 2 2 |
|
|
49 |
|
|
1. A) 61
2. B) 60
3. C) 55
4. D)
Impossible to tell
Answer: A
Explanation: The second data value in the third stem is 61
(this is the fourth item in the sorted data array).
Difficulty: 2 Medium
Topic: 03.01 Stem-and-Leaf Displays and Dot Plots
Learning Objective: 03-01 Make a stem-and-leaf or dot
plot.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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