Applied Statistics in Business and Economics David Doane 6th Edition Test Bank by carrysources

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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: 0306 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: 0306 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: 0305 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: 0306 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: 0306 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: 0306 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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf 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: 0302 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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf 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: 0305 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: 0303 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: 0303 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: 0307 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: 0307 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: 0307 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: 0306 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: 0307 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: 0307 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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf 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: 0308 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: 0310 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: 0304 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: 0302 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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf 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: 0302 Create a frequency distribution for a data set. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 26) Line charts are not used for crosssectional data. Answer: TRUE Explanation: Line charts are for time series data. Difficulty: 2 Medium

Topic: 03.04 Line Charts Learning Objective: 0305 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: 0308 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: 0308 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: 0303 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 StemandLeaf Displays and Dot Plots

Learning Objective: 0304 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: 0302 Create a frequency distribution for a data set. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 32) Except for the Yaxis 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: 0302 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: 0306 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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf 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: 0308 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: 0302 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 crosssectional 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: 0305 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: 0304 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) ExxonMobil’s quarterly sales for the last four years 4. D) Oneyear 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: 0306 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) ExxonMobil’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 crosssectional data). Difficulty: 2 Medium Topic: 03.04 Line Charts Learning Objective: 0305 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: 0306 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 crosssectional 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: 0305 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: 0305 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: 0307 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: 0310 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: 0307 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: 0307 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: 0307 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 ivyleague 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: 0307 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 causeandeffect). 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: 0308 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 sidebyside 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: 0308 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: 0309 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 crosstabulations 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 rowcolumn format. Difficulty: 2 Medium Topic: 03.08 Tables Learning Objective: 0309 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: 0305 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: 0310 Recognize deceptive graphing techniques. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

56) We would use a pivot table to 1. A) crosstabulate frequencies of occurrence of two variables. 2. B) rotate the data around a central point. 3. C) establish causeandeffect 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 rowcolumn format. Difficulty: 1 Easy Topic: 03.08 Tables Learning Objective: 0309 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: 0310 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: 0310 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: 0310 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: 0310 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: 0310 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: 0305 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: 0305 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: 0303 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: 0307 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: 0304 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: 0304 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: 0310 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: 0303 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

1–10

11–20

20–30

31–40

41–50

50–60

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: 0302 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

11–20

25–30

31–40

44–50

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: 0302 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: 0302 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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf 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: 0302 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: 0302 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: 0302 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: 0302 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: 0303 Make a histogram with appropriate bins. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation

79) An openended 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: 0303 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: 0303 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: 0302 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: 0302 Create a frequency distribution for a data set. Bloom’s: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation 83) Below is a sorted stemandleaf diagram for the measured speeds (miles per hour) of 49 randomly chosen vehicles on highway I80 in Nebraska. How many vehicles were traveling exactly the speed limit (70 mph)?

Stem unit

Leaf unit

Stem

Leaf

Frequency

0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9

0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9

0 1 3 3 5 5 7

0 1 2 2

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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf or dot plot. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

84) Below is a sorted stemandleaf diagram for the measured speeds (miles per hour) of 49 randomly chosen vehicles on highway I80 in Nebraska. What is the highest observed speed?

Stem unit

Leaf unit

Stem

Leaf

Frequency

0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9

0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9

0 1 3 3 5 5 7

0 1 2 2

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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf or dot plot. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 85) Below is a sorted stemandleaf diagram for the measured speeds (miles per hour) of 49 randomly chosen vehicles on highway I80 in Nebraska. What is the mode?

Stem unit

Leaf unit

Stem

Leaf

Frequency

0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9

0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9

0 1 3 3 5 5 7

0 1 2 2

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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf or dot plot. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 86) Below is a sorted stemandleaf diagram for the measured speeds (miles per hour) of 49 randomly chosen vehicles on highway I80 in Nebraska. What is the fourth slowest speed in the sorted data array?

Stem unit

Leaf unit

Stem

Leaf

Frequency

0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9

0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9

0 1 3 3 5 5 7

0 1 2 2

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 StemandLeaf Displays and Dot Plots Learning Objective: 0301 Make a stemandleaf or dot plot. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation