Kingfisher School of Business and Finance

Senior High School

Looooooong Quiz
1. The Equal Employment Opportunity Act requires employers to classify their employees by
gender and national origin. Which level of measurement is this? 
a. Nominal c. Interval
b. Ordinal d. Ratio
2. What type of variable is the number of gallons of gasoline pumped by a filling station during a
day? 
a. Continuous c. Qualitative
b. Discrete d. Quantitative
3. What type of variable is the number of robberies reported in your city? 
a. Continuous c. Qualitative
b. Discrete d. Quantitative
4. An example of a qualitative variable is _________________. 
a. Miles between oil changes c. Color of ink in a pen
b. Number of children in a family d. Weight of a person
5. Which one of the following is NOT an example of discrete data? 
a. Number of miles between New York City and Chicago
b. Number of members of the Denver Lions Club
c. Number of households watching the Home Shopping Network
d. Number of employees reporting in sick
6. Refer to the following information from a frequency distribution for "heights of college women"
recorded to the nearest inch: the first two class midpoints are 62.5" and 65.5". What is the class
interval? 
a. 1 c. 3
b. 2 d. 2.5
7. Refer to the following information from a frequency distribution for "heights of college women"
recorded to the nearest inch: the first two class midpoints are 62.5" and 65.5". What are the
class limits for the lowest class? 
a. 61 and up to 64 c. 62 and 65
b. 62 and up to 64 d. 62 and 63
8. A pie chart shows the ______________________. 
a. Frequencies of a ratio variable
b. Frequencies of a nominal variable
c. Relative frequencies of a quantitative variable
d. Relative frequencies of a qualitative variable
9. When data is collected using a quantitative, ratio variable, what is true about a frequency
distribution that summarizes the data? 
a. The "5 to the k rule" can be applied.
b. Number of classes is equal to the number of variable's values.
c. A pie chart can be used to summarize the data.
d. Upper- and lower-class limits must be calculated.
10. When data is collected using a qualitative, nominal variable (in other words, male or female),
what is true about a frequency distribution that summarizes the data? 
a. The "2 to the k rule" can be applied.
b. The number of classes corresponds to the number of a variable's values.
c. The upper- and lower-class limits must be calculated.
d. Class midpoints can be computed.
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11. For the most recent seven years, the U.S. Department of Education reported the following
number of bachelor's degrees awarded in computer science: 4,033; 5,652; 6,407; 7,201; 8,719;
11,154; 15,121. What is the annual arithmetic mean number of degrees awarded? 
a. About 12,240 c. About 8,327
b. About 15,962 d. About 6,217

12. According to Chebyshev's Theorem, at least what percent of the observations lie within plus and
minus 1.75 standard deviations of the mean? 
a. 67% c. 95%
b. 100% d. 99.7%
13. The weights of a sample of crates ready for shipment to Moscow, Russia are (in kilograms): 103,
97, 101, 106, and 103. What is the mean deviation?
a. 2.4 kg c. 6.9 kg
b. 102.0 kg d. 0 kg
14. The monthly amounts spent for food by families of four receiving food stamps approximates a
symmetrical, normal distribution. The sample mean is $150 and the standard deviation is $20.
Using the Empirical Rule, about 95% of the monthly food expenditures are between what two
amounts? 
a. $100 and $200 c. $85 and $105
b. $110 and $190 d. $205 and $220
15. The mean, as a measure of central location, would be inappropriate for which one of the
following? 
a. Number of pages in textbooks on statistics
b. Incomes of lawyers
c. Ages of adults at a senior citizen center
d. Marital status of college students at a particular university
16. The ages of all the patients in the isolation ward of the hospital are 38, 26, 13, 41, and 22. What
is the population variance? 
a. 91.4 c. 106.8
b. 240.3 d. 42.4
17. A sample of assistant professors on the business faculty at state-supported institutions in Ohio
revealed the mean income to be $72,000 for nine months, with a standard deviation of $3,000.
Using Chebyshev's Theorem, what proportion of the faculty earns more than $66,000, but less
than $78,000? 
a. At least 75% c. At least 25%
b. At least 100% d. At least 50%
18. The distribution of a sample of the outside diameters of PVC pipes approximates a symmetrical,
bell-shaped distribution. The arithmetic mean is 14.0 inches, and the standard deviation is 0.1
inches. About 68% of the outside diameters lie between what two amounts? 
a. 13.0 and 15.0 inches c. 13.5 and 14.5 inches
b. 13.8 and 14.2 inches d. 13.5 and 15.0 inches
19. The sample variance of hourly wages was 10. What is the sample standard deviation? 
a. $10.00 c. $3.16
b. $4.67 d. $1.96
20. What type of probability distribution will most likely be used to analyze warranty repair needs
new cars in the following problem?
                      The service manager for a new Automobile dealership reviewed dealership records
of the past 20 sales of new cars to determine the number of warranty repairs he will be called
on to perform in the next 90 days. Corporate reports indicate that the probability that anyone of
 Kingfisher School of Business and Finance
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their new cars need a warranty repair in the first 90 days is 0.05. The manager assumes that
calls for warranty repair are independent on one another and is interested in predicting the
number of warranties repairs he will be called on to perform in the next 90 days for this batch
of 20 new cars sold.
a. Binomial distribution
b. Poisson distribution
c. Hypergeometric distribution
d. Frequency Distribution

21. What type of probability distribution will most likely be used to analyze the number of
chocolate chip per cookie in the following problem.?
  The quality control manager of Marilyn’s Cookies is inspecting an batch of chocolate chip
cookies. When the production process is in control, the average number of chocolate chip cookie
is 6.0. The manager is interested in analyzing the probability that any particular cookie being
inspected is fewer than 5.0 chip parts.
a. Binomial distribution
b. Poisson distribution
c. Hypergeometric distribution
d. Frequency Distribution

22. If z is a standard normal variable, then the area to the left of z = 0.65 is:
a. 0.35 b. 0.2242 c. 0.2578 d. 0.7422

23. Which of the following examples of experiments wherein a Poisson distribution may not hold?

a. the number of cars that pass through an intersection during a given period of time.
b. the number of spelling mistakes a secretary makes while typing a single page.
c. the number of male in family size of 5
d. the number of phone calls at a call center per minute.

24. A continuous variable;

a. may take only integer values.

b. may take only a finite number of different values.
c. may take on an infinite number of values
d. must be any nonnegative real numbers

25.A probability function is a rule of correspondence or equation that:

a. Finds the mean value of the random variable,

b. Assigns values of x to the events of a probability experiment,
c. Assigns probabilities to the various values of x
d. None of the above. is correct.

26.The standard normal score is:

a. Normally distributed with a mean of zero and with a standard deviation of one.
b. Used to find the probabilities associated any normal distribution.
c. All of the above are correct.
d. None of the above is correct.
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27. In the annual report, a major food chain stated that the distribution of its daily sales is known to be
bell-shaped, and that 95 percent of all daily sales fell between $19,200 and $36,400. Based on this
information, what were the mean sales?
e. Approximately $23,500
f. Approximately $32,100
g. Approximately $27,800
h. Can't be determined without more information

28. If cars arrive to a service center randomly and independently at a rate of 5 per hour on average, what
is the probability that exactly 5 cars will arrive during a given hour?
a. 0.1755 b. 0.6160 c. 0.1277 d. essentially zero
29. A study of a company's practice regarding the payment of invoices revealed that on the average an
invoice was paid 20 days after it was received. The standard deviation equaled five days. Assuming that
the distribution is normal. what percent of the invoices were paid within 15 days of receipt?
a. 15 87% b 37.91% c. 34.13% d, 86.74%

30. A sales rep for a national clothing company makes 4 calls per day. Based on historical records, the
following probability distribution describes the number of successful calls each day:

Successful Calls Probability

0 0.10
1 0.30
2 0.30
3 0.20
4 0.10
Based on this information, the probability that the sales rep will have a total of two successful calls in a
two-day period is:
a. 0.60 b.0.09 c. 0.15 d. 0.06
31. The manager at a local movie theater has collected data for a long period of time and has concluded
that the revenue from concession sales during the first show each evening is normally distributed with
a mean equal to $336.25 and a variance equal to 1,456. Based on this information, what are the chances
that the revenue the first show will exceed $800?
a. 0.1255 b. 0.3745 c. 0.9999 d. essentially zero
32. If the monthly electrical utility bills of all customers for the Far East Power and Light Company are
known to be distributed as a normal distribution with mean equal to $87.00 a month a month and a
standard deviation of $36.00, which of the following would be the largest individual bill that you might
expect to find?
a. Approximately $811.00 c. Nearly $123.00
b. About $195.00 d. more information needed to determine this
33. The monthly electrical utility bills of all the costumers for the Far East Power and Light Company
are known to be distributed as normal distribution with mean equal to $87.00 a month and a standard
deviation of $ 36.00. If the statistical sample n=100 costumers are selected at random, what is the
probability that the mean bill for those sampled will exceed $75.00.
a. -0.33 b. 3.33 c. About 1.00 d. Approximately 0.63
 Kingfisher School of Business and Finance
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34. Suppose it is known that income distribution in a particular region is right-skewed and bimodal. If
bank economists are interested in estimating the mean income, which of the following is true?
A. Provided that the sample size is sufficiently large, the sampling distribution for the sample mean will
be approximately normal with a mean equal to the population mean that they wish to estimate.
B. The sampling distribution will also be right-skewed for a large sample sizes.
C. The standard deviation of the sampling distribution for the sample mean will be proportionally larger
than the population standard deviation, depending on the size of the sample.
D. The sampling distribution will be left-skewed.

35. The J.R. Company Produces frozen French fries that are then sold to costumers such as Mc Donald’s.
The prime line of the fries has an average length OF 6.00 inches with a standard deviation of 0.50
inches. To make sure that it continues the quality standard for prime fries, they plan to select random
sample of n = 100 fries each day. Yesterday, the sample mean was 6.05 inches. What is the probability
that the mean would be 6.50 inches or more if they are meeting the quality standards?
a. 0.2350 b. 0.3413 c. 0.9413 d. 0.1587

36. In an effort to estimate the mean dollars spent by costumers for food store, the manager has
selected random sample of 100 cash register receipts. The mean of this was $45.67 with a sample
standard deviation equal to $12.30. Assuming that he wants to develop 90% confidence interval
estimate, which of the following is the margin of error that will be reported?

a. ± $ 2.02 b. Nearly $50.20 c. $1.645 d. About $ 1.43

38. A major tire manufacturer wishes to estimate the mean tread life in miles for one of their tires. They
wish to develop a confidence interval estimate that would have a maximum sampling error of 500 miles
with 90 percent confidence. A pilot sample of n = 50 tires showed a sample standard deviation equal to
4,000 miles. Based on this information, the required sample size is:
a. 124 b. 246 c. 174 d. 196

39. Thirty-six of the staff of 80 teachers at a local intermediate school are Certified Cardio-Pulmonary
Resuscitation (CPR). In 180 days of school, about how many days can we expect that the teacher on bus
will likely certified in CPR?
a. 5 days b. 45 days c. 65 days d. 81 days

40. A campus program evenly enrolls undergraduate and graduate students. If a random sample of 4
students is selected from the program to be interviewed about the introduction of new fast food outlet
on the ground floor of the campus building, what is the probability that all 4 students selected are
undergraduate students?
a. 0.0256 b. 0.0625 c. 0.16 d. 1.0

41. A probability distribution in an equation that

a. associates a particular probability of occurrence with each outcome in the sample space.
b. measure outcomes and assign values of X to simple events.
c. assigns a value to the variability of sample space
d. assigns a value to the center of the sample space.
 Kingfisher School of Business and Finance
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42. A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab
conducts. How much should the lab budget for next year's rat orders be, assuming this distribution
does not change? Prices for 100 rats follow the following distribution:
Price: $10.00 $12.50 $15.00
Probability: 0.35 0.40 0.25
a.$520 b. $637 c. $650 d, $780
43.The local police department must write, on average, 5 tickets a day to keep department revenues
at budgeted levels. Suppose the number of tickets written per day follows a Poisson distribution
with a mean of 6,5 tickets per day. Interpret the value of the mean.
a. The number of tickets that is written most often is 6.5 tickets per dos
b. Half of the days have less than 6.5 tickets written and half of the das have more than 6.5 tickets written
c. If we sampled all days, the arithmetic average or expected number of tickets written would be 6.5
tickets per day.
d. The mean has no interpretation since 0.5 ticket can never be written

44. In its standardized form, the normal distribution

a. has a mean of 0 and a standard deviation of 1.
b. has a mean of I and a variance of 0.
c. has an area equal to 0.5
d. cannot be used to approximate discrete probability distributions

45. The owner of a fish market determined that the average weight for a catfish is 3.2 pounds with
a standard deviation of 0.8 pound. A citation catfish should be one of the top 2% in weight.
Assuming the weights of catfish are normally distributed, at what weight (in pounds) should the
citation designation be established?
a. 1.56 pounds b. 4.84 pounds c. 5.20 pounds d. 7.36 pounds
46. The Central Limit Theorem is important in statistics because
a. for a large n, it says the population is approximately normal
b. for any population, it says the sampling distribution of the sample mean approximately normal,
regardless of the sample size.
c. for a large n, it says the sampling distribution of the sample mean 'proximately normal, regardless of
the shape of the population.
d. for any sized sample, it says the sampling distribution of the sample mean is approximately normal
47. Which of the following is true about the sampling distribution of the sample mean?
a. The mean of the sampling distribution IS always
b. The standard deviation of the sampling distribution is always 0'
c. The shape of the sampling distribution is always approximately normal.
d. All of the above are true l.
48, Major league baseball salaries averaged $ I .5 million with a standard deviation of $0.8 million in
1994. Suppose a sample of 100 major league players was taken. Find the approximate probability that
the average salary of the 100 players exceeded $1 million.
a, Approximately 0 b. 0.2357 c. 0.7357 d. Approximately 1
 Kingfisher School of Business and Finance
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49. At a computer manufacturing company, the actual size of computer chips is normally distributed
with a mean of 1 centimeter and a standard deviation of 0, 1 centimeter. A random sample of 12
computer chips is taken. What is the standard error for the sample mean?
a. 0.029 b. 0.050 c. 0.091 d. 0 120
50. The use of the finite population correction factor when sampling without replacement
from finite populations will.
a. increase the standard error of the mean c. reduce the standard error of the mean
b. not affect the standard error of the mean d. only affect the proportion,not the
mean.
51. The standard error of the mean for a sample of 100 is 30, In order to cut the standard error of
the mean to 15, we would
a. increase the sample size to 200 c. decrease the sample size to 50
b. increase the sample size to 400 d. decreases the sample size to 5.
52. The evening host of a dinner dance reached into a bowl, mixed all the tickets around, and
selected the ticket to award the grand door prize, what sampling method was used'?
a. Simple random sample c. Stratified sample
b. Systematic sample d. Cluster sample
53. The Dean of Students mailed a survey to a total of 400 students. The sample included 100
students randomly selected from each of the freshman, sophomore, junior, and senior classes on
campus last term. What sampling method was used?
a. Simple random sample c. Stratified sample
b. Systematic sample d. Cluster sample

54. Which of the. following sampling methods will more likely be susceptible to ethical violation?
a. Simple random sample c. convenience sample
b. Cluster sample d. Stratified sample
55. For air travelers, one of the biggest complaints is of the waiting time between when the airplane
taxis away from the terminal until the flight takes off. This waiting time is known to have a skewed
right distribution with a mean of 10 minutes and a standard deviation of 8 minutes. Suppose 100 flights
have been randomly sampled. Describe the sampling distribution of the mean waiting time between
when the airplane taxis away from the terminal until the flight takes off for these 100 flights?
a. Distribution is skewed-right with mean = 10 minutes and standard error = 0.8 minutes.
b. The standard deviation of the sampling distribution is always ơ.
c. Distribution is approximately normal with mean = 10 minutes and standard error = 0.8 minutes.The
shape of the sampling distribution is always approximately normal.

d. Distribution is approximately normal with mean = 10 minutes and standard error = 8 minutes of the
above are true l.

56. A 99% confidence interval estimate can be interpreted to mean that

a. if all possible samples are taken and confidence interval estimates are developed, 99% of them
would include the true population mean somewhere within their interval.
b. we have 99% confidence that we have selected a sample whose interval does include the
population mean.
c. Both of the above.
d. None of the above.
 Kingfisher School of Business and Finance
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57. Suppose a 95% confidence interval for mu turns out to be (1,000, 2, 100). Give a definition of
what it means to be "95% confident" in an inference.
a. In repeated sampling, the population parameter would fall in the given interval 95% of the time.
b. In repeated sampling, 95% of the intervals constructed would contain the population mean.
c. 95% of the observations in the entire population fall in the given interval .
d. 95% of the observations in the sample fall in the given interval.

For Question Numbers 40 - 41

It IS desired to estimate the average total compensation of CEOs in the Service industry. Data were
randomly collected from 18 CEOs and the 97% confidence interval was calculated to be
( $ 2, 181, 260 and $ 5 , 836 ,180 )
40. Which of the following interpretations is correct?
a. 97% of the sampled total compensation values fell between $2,181,260 and $5,836,180.
b. We are 97% confident that the mean of the sampled CEOs falls in the interval $2, 181,260 to $5,836,
180.
c. In the population of Service industry CEOs, 97% of them will have total compensations that fall in the
interval $2, 18 1,260 to $ 5 , 836 ,180
d. We are 97% confident that the average total compensation of all CEOs in the Service industry falls in
the interval $2, 18 1,260 to $ 5 , 836 ,180
58. Based on the interval above, do you believe the average total compensation of CEOs in the Service industry is
more than $3,000,000?
a. Yes, and I am 97% confident of it.
b. Yes, and I am 78% confident of it.
c. I am 97% confident that the average compensation is $ 3, 000 , 000
d. I cannot conclude that the average exceeds $3,000,000 at the 97% confidence level
For Question Numbers 42 - 43'
A major department store chain is interested in estimating the average amount its credit card
customers spent on their first visit to the chain's new store in the mall. Fifteen credit card accounts
were randomly sampled and analyzed with the following results: X = $50.50 and s2=400
59. Assuming the distribution of the amount spent on their first visit is approximately normal, what is the
shape of the sampling distribution of the sample mean that will be used to create the desired
confidence interval for?
a. Approximately normal with a mean of $50.50
b. A standard normal distribution.
c. A t distribution with 15 degrees of freedom.
d. A t distribution with 14 degrees of freedom

60. Construct a 95% confidence interval for the average amount its credit card customers spent on their
first visit to the chain's new store in the mall assuming that the amount spent follows a normal
distribution.
a. $50.50 ± $9.09 b. $50.50 ± $10. 12 c $50.50 ± $ d. $50.50 ± $11.08
 Kingfisher School of Business and Finance
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61. As an aid to the establishment of personnel requirements, the director of a hospital wishes to
estimate the mean number of people who are admitted to the emergency room during a 24-hour
period. The director randomly selects 64 different 24-hour periods and determines the number of
admissions for each. For this sample, X = 19.8 and s 2 = 25. Which of the following assumptions is
necessary in order for a confidence interval to be valid?
a. The population sampled from has an approximate normal distribution.
b. The population sampled from has an approximate t distribution
c. The mean of' the sample equals the mean of the population.
d. None of these assumptions are necessary

For Question Numbers 63-64

An economist is Interested in studying the Incomes of consumers in a particular region.
The population standard deviation is known to be $1,000. A random sample of 50 individuals resulted
in an average income of $15,000
63. What is the width of the 90% confidence interval?
a. 232.60 b. 364.30 c. 465.23 d. 728.60
0
64. What sample size would the economist need to use for a 95 /0 confidence interval if the width of
the interval should not be more than $100?
a. n = 1537 b. n = 385 c. n = 40 d. n = 1,435

For Question Numbers 65-66.

The head librarian at the Library of Congress has asked her assistant for an interval estimate of the
mean number of books checked out each day. The assistant provides the following interval estimate:
from 740 to 920 books per day
65. What is an efficient, unbiased point estimate of the number of books checked out each day at the
Library of Congress?
a. 740 b. 830 c. 920 d. 1660
66.If the head librarian knows that the population standard deviation is 150 books checked out per
day, and she asked her assistant for a 95% confidence interval, approximately how large a sample did
her assistant use to determine the interval estimate?
a. 125 b. 13 c. 11 d. 4
67. Private colleges and universities rely on money contributed by individuals and corporations for
their operating expenses. Much of this money is put into a fund called an endowment, and the college
spends only the interest earned by the fund. A recent survey of 8 private colleges in the United States
revealed the following endowments (in millions of dollars): 60.2, 410, 235 1, 490 0, 122.6, 177 5, 95 4,
and 220 0, What value will be used as the point estimate for the mean endowment of all private colleges
in the United States.
a. $1,447.8 b $180.975 c. $143.0421 d. $8

68. The probability of impossible event is

a. zero c. undefined
b. Infinite d. one
69. Which of the following events are mutually exclusive?
a. Events "ace or black card" c. Events "king and red"
 Kingfisher School of Business and Finance
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b. Events "queen or face card" d. Events "diamond or black jack"
70. If a and b are two independent events and P ( A ) = 9 and P(not B)= 0.2, find
P(not A)
a. 0.8 b. 0.9 c. 0.7 d. 0.6
71. If the probability of defective bolt is 0.20, how many bolts are expected to be defective if there are a
total of 600 bolts?
a. 100 b. 105 c. 115 d. 120
72. A book case contains 6 different math books and 12 different physics books. If a student randomly
selects two of these books, the probability they are both math and physics books is?
a. 1/3 b. 4/17 c. 4/13 d. 2/9
73.A sales representative calls on four hospitals in Westchester County. It is immaterial what order he
calls on them. How many ways can he organize his calls?
a. 4 b. 24 c..120 d. 37
74.Which of the following is always correct if r > l and n > r?
a. nCn=1 b. nCn=n! c. nCn=0 d.nCn=( n−1 ) !
75. How many permutations are there in STATISTICS?
a. 3,628,800 c. 50,400
b. 151,200 d. 52,400
76. How many possible samples of Size 2 is available if the population size is 5?
a. 5 c. 20
b. 12 d. 10

77.The statement "probability of selecting a male(M) given that he works in Middle East (E)" is the
same as
c. P(M and E) c. P ( M or E )
d. P(M/E) d. P ( M*E )
78. A lamp manufacturer designed five lamp bases and four lampshades that could be used together.
How many different arrangements of base and shade can be offered?
a. 5 b. 10 c.15 d. 20

6!2!
79. What does 4 ! 3 ! equal?

a. 640 b. 10
c.15 d.120

80. The result of a particular experiment is called a(n) ?

a. Observation c. event
b. conditional probability d. outcome