Business Statistics 714: Essential Practice Questions Set 7

Business and Statistics 714 practice questions Set 7 1. Which of the following measures of central tendency is affected most by outliers? a) Mean b) Median c) Mode d) Range Correct Answer: a) Mean 2. In probability theory, what does P(A | B) represent? a) Probability of event A and event B occurring b) Probability of event A occurring given that event B has occurred c) Probability of event A or event B occurring d) Probability of event A occurring Correct Answer: b) Probability of event A occurring given that event B has occurred 3. What does a negative skewness indicate in a distribution? a) The distribution is symmetric b) The tail of the distribution is longer on the right side c) The tail of the distribution is longer on the left side d) The distribution is bimodal Correct Answer: c) The tail of the distribution is longer on the left side 4. Which of the following is NOT a property of the normal distribution? a) Symmetric b) Unimodal c) Skewed

d) Bell-shaped Correct Answer: c) Skewed 5. What is the formula for calculating variance? a) Standard deviation / Mean b) (Sum of squares) / Sample size c) Mean / Standard deviation d) (Sum of squares) / (Sample size - 1) Correct Answer: d) (Sum of squares) / (Sample size - 1) 6. In hypothesis testing, what does the alpha level represent? a) The probability of making a Type I error b) The probability of making a Type II error c) The critical value for the test statistic d) The level of significance for the test Correct Answer: a) The probability of making a Type I error 7. What is the purpose of stratified sampling? a) To ensure every member of the population has an equal chance of being selected b) To divide the population into subgroups and then randomly select samples from each subgroup c) To select samples based on convenience d) To select samples based on a predetermined order Correct Answer: b) To divide the population into subgroups and then randomly select samples from each subgroup 8. Which of the following is a measure of variability in a data set? a) Mean b) Median

c) Mode d) Range Correct Answer: d) Range 9. What is the main purpose of analysis of variance (ANOVA)? a) To compare means of two groups b) To compare variances of two groups c) To compare means of three or more groups d) To compare variances of three or more groups Correct Answer: c) To compare means of three or more groups 10. What does the term "p-value" represent in hypothesis testing? a) The probability of rejecting the null hypothesis when it is true b) The probability of accepting the null hypothesis when it is false c) The probability of observing the data if the null hypothesis is true d) The probability of observing the data if the alternative hypothesis is true Correct Answer: c) The probability of observing the data if the null hypothesis is true 11. What is the formula for calculating the coefficient of variation? a) Standard deviation / Mean b) Mean / Standard deviation c) Standard deviation * Mean d) Mean * Standard deviation Correct Answer: a) Standard deviation / Mean 12. What does the term "confidence level" represent in statistics? a) The probability of rejecting the null hypothesis when it is true b) The probability of accepting the null hypothesis when it is false c) The range of values within which the population parameter is likely to lie

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d) The range of values within which the sample mean is likely to lie Correct Answer: c) The range of values within which the population parameter is likely to lie 13. Which of the following probability distributions is used to model the number of successes in a fixed number of trials? a) Normal distribution b) Binomial distribution c) Poisson distribution d) Exponential distribution Correct Answer: b) Binomial distribution 14. What does a correlation coefficient of 0 indicate? a) A perfect positive relationship b) A perfect negative relationship c) No relationship between variables d) Strong relationship between variables Correct Answer: c) No relationship between variables 15. What is the formula for calculating the z-score? a) (Value - Mean) / Standard deviation b) (Mean - Value) / Standard deviation c) (Value - Standard deviation) / Mean d) (Standard deviation - Value) / Mean Correct Answer: a) (Value - Mean) / Standard deviation 16. In a statistical study, what does the term "sample" refer to? a) The entire population b) A subset of the population

c) The mean of the population d) The variance of the population Correct Answer: b) A subset of the population 17. Which of the following is NOT a measure of dispersion? a) Range b) Standard deviation c) Variance d) Median Correct Answer: d) Median 18. What is the formula for calculating the standard error of the mean? a) Standard deviation / Sample size b) Sample size / Standard deviation c) Standard deviation * Sample size d) Sample size * Standard deviation Correct Answer: a) Standard deviation / Sample size 19. What does a positive correlation coefficient indicate? a) A perfect positive relationship b) A perfect negative relationship c) No relationship between variables d) A strong positive relationship between variables Correct Answer: d) A strong positive relationship between variables 20. Which of the following is NOT a characteristic of a normal distribution? a) Symmetric b) Bell-shaped c) Skewed

d) Unimodal Correct Answer: c) Skewed

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Business and Statistics 714 practice questions Set 7

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