Business Statistics Exam 2 Terms

Question 1

A numerical value used as a summary measure for a population

Answer 1

Population Parameter

Question 2

A numerical value used as a summary measure for a sample

Answer 2

Sample Statistic

Question 3

A sample statistic used to estimate the corresponding population parameter

Answer 3

Point Estimator

Question 4

A measure of central location computed by summing the data values and dividing by the number of observations

Answer 4

Mean

Question 5

A measure of central location provided by the value in the middle when the data are arranged in ascending order

Answer 5

Median

Question 6

A measure of location, defined as the value that occurs with greatest frequency

Answer 6

Mode

Question 7

The mean obtained by assigning each observation a weight that reflects its importance

Answer 7

Weighted Mean

Question 8

A measure of location that is calculated by finding the nth root of the product of n values

Answer 8

Geometric Mean

Question 9

A measure of location that is calculated by removing a percentage of the smallest and largest values from a data set, then calculating the average of remaining values

Answer 9

Trimmed Mean

Question 10

A value such that at least p percent of the observations are less than or equal to this value and at least (100 - p) percent of the observations are greater than or equal

Answer 10

percentile

Question 11

The 25th, 50th, and 75th percentiles, which can be used to divide a data set into four parts, with each part containing approximately 25% of the data

Answer 11

Quartiles

Question 12

A measure of variability, defined to be the largest value minus the smallest value

Answer 12

Range

Question 13

A measure of variability, defined to be the difference between the third and first quartiles

Answer 13

Interquartile Range

Question 14

A technique that used the smallest value, first quartile, median, third quartile, and largest value to summarize the data set

Answer 14

Five-number summar

Question 15

A graphical summary of data based on a five=number summary

Answer 15

Boxplot

Question 16

A measure of variability based on the squared deviations (differences) of the data values about the mean

Answer 16

Variance

Question 17

A measure of variability computed by taking the positive square root of the variance

Answer 17

Standard Deviation

Question 18

A measure of relative variability computed by dividing the standard deviation by the mean and multiplying by 100

Answer 18

Coefficient of Variation

Question 19

A value computed by dividing the deviation (difference) of a data value from the mean by the standard deviation. Sometimes this is referred to as a Standard Score

Answer 19

Z-score

Question 20

An unusually small or unusually large data value

Answer 20

Outlier

Question 21

A measure of the shape of a data distribution

Answer 21

Skewness

Question 22

A theorem that can be used to make statements about the proportion of data values that must be within a specified number of standard deviations of the mean

Answer 22

Chebyshev’s Theorem

Question 23

A rule that can be used to compute the percentage of data values that must be within one, two, and three standard deviations of the mean for data that exhibit a bell-shaped distribution

Answer 23

Empirical Rule

Question 24

A measure of linear association between two variables. Positive values indicate a positive relationship; negative values indicate a negative relationship

Answer 24

Covariance

Question 25

A measure of linear association between two variables that takes on values between -1 and +1. Values near +1 indicate a strong positive linear relationship; values near -1 indicate a strong negative linear relationship; and values near zero indicate the lack of a linear relationship

Answer 25

Correlation Coefficient

Question 26

A price index for a given item that is computed by dividing a current unit price by a base-period unit price and multiplying the result by 100

Answer 26

Price Relative

Question 27

A composite price index based on the prices of a group of items

Answer 27

Aggregate Price Index

Question 28

A composite price index in which the prices of the items in the composite are weighted by their relative importance

Answer 28

Weighted Aggregate Price Index

Question 29

A weighted aggregate price index in which the weight for each item is its current-period quantity

Answer 29

Paasche Index

Question 30

A weighted aggregate price index in which the weight for each item is its base-period quantity

Answer 30

Lapeyre’s Index

Question 31

An index designed to measure changes in quantities over time

Answer 31

Quantity Index

Question 32

A monthly price index that uses the price changes in a market basket of consumer goods and services to measure the changes in consumer prices over time

Answer 32

Consumer Price Index

Question 33

A monthly price index designed to measure changes in prices of goods sold in primary markets (i.e., first purchase of a commodity in nonretail markets)

Answer 33

Producer Price Index

Question 34

A quantity index designed to measure changes in the physical volume or production levels of industrial goods over time

Answer 34

Industrial Production Index

Question 35

Aggregate price indexes designed to show price trends and movements associated with common stocks

Answer 35

Dow Jones Averages