chapter 1

Question 1

Which of the following is a type of question used in survey research?

a) multiple-choice
b) open-ended
c) dichotomous
d) All of the other answers are correct.

Answer 1

d) All of the other answers are correct.

Explanation
All three of the listed question types can be used in survey design.

Question 2

Data collected for a particular study are referred to as a data ________.

a) variable
b) element
c) measurement
d) set

Answer 2

d) set
Explanation
By definition, a variable is a characteristic of an element; a measurement assigns a value to a variable; an element is one unit of a population.

Question 3

When the data being studied are gathered from a published source, this is referred to as a(n) ________.

a) existing data source
b) cross-sectional data source
c) observational data source
d) experimental data source

Answer 3

a) existing data source

Explanation
By definition, an experimental data source is a collection of data where one is able to manipulate values; an observational data source is a collection of data where one is unable to control factors. Cross-sectional is not a defined data source but rather a way of analyzing or displaying the data that have been collected.

Question 4

________ is the difference between a numerical descriptor of the population and the corresponding descriptor of the sample.

a) Nonresponse
b) Observation error
c) Nonobservation error
d) Sampling error

Answer 4

d) sampling error

Explanation
Nonresponse, nonobservation and observation error occur during the survey process. Sampling error is a result of the survey process.

Question 5

________ sampling is where we know the chance that each element will be included in the sample, which allows us to make statistical inferences about the sample population.

a) Convenience
b) Voluntary
c) Judgment
d) Probability

Answer 5

d) probability

Explanation
Convenience, voluntary, and judgment sampling should not be used to make valid statistical inferences about a population.

Question 6

If we collect data on the number of wins the Dallas Cowboys earned each of the past 10 years, we have ________ data.

a) non-historical
b) cross-sectional
c) survey
d) time series

Answer 6

d) time series

Explanation
A time series is a collection of data taken over time, while a cross-section is a collection of data taken at the same point in time.

Question 7

Which of the following is a quantitative variable?

a) a person’s gender
b) whether a person has a charge account
c) mileage of a car
d) the manufacturer of a cell phone
e) whether a person is a college graduate

Answer 7

c) mileage of a car

Explanation
A quantitative variable is measurable and noncategorical.

Question 8

Methods for obtaining a sample are called

a) sample surveys.
b) sampling designs.
c) probability sampling.
d) random sampling.

Answer 8

b) sampling designs

Explanation
Sample surveys are the result of sampling designs. Random sampling, stratified random sampling, cluster sampling, and systematic sampling are sampling designs which are types of probability sampling.

Question 9

The change in the daily price of a stock is what type of variable?

a) random
b) qualitative
c) quantitative
d) ordinal

Answer 9

c) quantitative

Explanation
Qualitative and ordinal have similar definitions; random variables are all characteristics of a population element.

Question 10

Which of the following is a categorical variable?

a) air temperature
b) daily sales in a store
c) whether a person has a traffic violation
d) value of company stock
e) bank account balance

Answer 10

c) whether a person has a traffic violation

Explanation
A categorical variable is qualitative, not measured.

Question 11

A data set provides information about some group of individual ________.

a) measurements
b) statistics
c) elements
d) variables

Answer 11

c) elements

Explanation
By definition, measurements assign values to a variable of an element; statistics is the science of describing aspects of a set of measurements; variables are characteristics of elements in a population.

Question 12

A ratio variable has the following characteristic.

a) predictable
b) categorical in nature
c) inherently defined zero value
d) qualitative

Answer 12

c) inherently defined zero value

Explanation
By definition, ratio variables are quantitative and have an absolute zero value.

Question 13

________ refers to describing the important aspects of a set of measurements.

a) Time series analysis
b) Runs plot
c) Cross-sectional analysis
d) Descriptive statistics

Answer 13

d) descriptive statistics

Explanation
A runs plot and time series analysis both look at data over time; cross-sectional analysis looks at data collected at the same point in time.

Question 14

If we collect data on the number of wins each team in the NFL had during the 2011-12 season, we have ________ data.

a) time series
b) non-historical
c) survey
d) cross-sectional

Answer 14

d) cross sectional

Explanation
A time series is a collection of data taken over time, while a cross-section is a collection of data taken at the same point in time.

Question 15

________ consists of a set of concepts and techniques that are used to describe populations and samples and to make statistical inferences about populations by using samples.

a) Time series analysis
b) Data mining
c) Traditional statistics
d) Random sampling

Answer 15

c) traditional statistics

Explanation
Definition of traditional statistics.

Question 16

An analyst studies a data set of the year-end book value per share for all companies listed on the New York Stock Exchange. This data set is best described as

a) cross-sectional data
b) a combination of time series and cross-sectional data.
c) time series data.
d) neither time series nor cross-sectional data.

Answer 16

a) cross sectional data

Cross-sectional data refers to data collected by recording a characteristic of many subjects without regard to differences in time.

Question 17

At the end of a semester college students evaluate their instructors by assigning them to one of the following categories: Excellent, Good, Average, Below Average, and Poor. The measurement scale is a(n)

a) ratio scale.
b) interval scale.
c) ordinal scale.Correct
d) nominal scale.

Answer 17

c) ordinal scale

A standard way to record the ratings is to use ordinal scale.

Question 18

Nonoverlapping groups of similar elements in a population are called

a) stages.
b) strata.
c) clusters.
d) frames.

Answer 18

b) strata

Strata are groups within a population sample which do not overlap.

Question 19

When a characteristic of interest differs among various observations, then it can be termed a

a) variable.
b) data.
c) parameter.
d) information.

Answer 19

a) variable

A variable is the general characteristic being observed on a set of people, objects, or events, where each observation varies in kind or degree.

Question 20

The Fahrenheit scale for measuring temperature would be classified as a(n)

a) ordinal scale.
b) interval scale.
c) ratio scale.
d) nominal scale.

Answer 20

b) interval scale

Zero in Fahrenheit degrees does not mean “no temperature.” We cannot say, for example, that today is twice as warm as six months ago, which characterizes the ratio scale.

Question 21

Sampling is used heavily in manufacturing and service settings to ensure high-quality products. In which of the following areas would sampling be inappropriate

a) Computer assembly
b) Cell phone manufacturing
c) Technical support by phone
d) Custom cabinet making

Answer 21

d) custom cabinet making

Custom cabinets are not meant to be standardized in their characteristics. Therefore, sampling would make no sense.

Question 22

Differences between categories are meaningless with _________ data.

a) interval
b) continuous
c) ordinal
d) ratio

Answer 22

c) ordinal

The differences between the ranked values are meaningless for ordinal scale data.

Question 23

Which of the following characteristics does the interval scale not have?

a) There is a true zero point.
b) The differences between values are valid.
c) Values can be categorized.
d) Values can be ranked.

Answer 23

a) there is a true zero point

Only ratio scale data have a true zero point.

Question 24

Examining all population measurements is called ________.

a) census
b) sample
c) frame
d) variable

Answer 24

a) census

By definition, a census looks at the entire population.

Question 25

A recent survey of 200 small firms (annual revenue less than $10 million) asked whether an increase in the minimum wage would cause the firm to decrease capital spending. Possible responses to the survey question were: “Yes,” “No,” or “Don’t Know.” This data is best classified as

a) nominal scale.
b) ordinal scale.
c) interval scale.
d) ratio scale.

Answer 25

a) nominal scale

With nominal data all we can do is categorize or group the data.

Question 26

Which of the following is an example of cross-sectional data?

a) Quarterly housing starts collected over the last 60 years
b) GDP of the United States from 1990–2010
c) Results of market research testing consumer preferences for soda
d) Daily price of DuPont stock during the first quarter

Answer 26

c) results of market research testing consumer preference for soda

Cross-sectional data refers to data collected by recording a characteristic of many subjects at the same point in time, or without regard to differences in time

Question 27

A population that consists of all the customers who will use the drive-thru of the local fast food restaurant is called a(n) ________.

a) statistical population
b) finite population
c) random sample population
d) infinite population

Answer 27

b) finite population

It is a finite population because only a finite number of customers will use the drive-thru. An infinite population would be defined as the theoretical potential number of customers.