Question 1

Which of the following is true when using the empirical rule for a set of sample data?

Accepted Answer

A) Almost all observations are in the interval  . 
B) Approximately 68% of all observations are in the interval  . 
C) Approximately 95% of all observations are in the interval  . 
D) Approximately 68% of all observations are in the interval

Question 2

Which of the following statements is most accurate when defining percentiles?

Accepted Answer

A) The pth percentile divides a data set into equal parts. 
B) Approximately p% of the observations are greater than the pth percentile. 
C) Approximately (100-p)% of the observations are less than the pth percentile. 
D) Approximately (100-p)% of the observations are greater than the pth percentile.

Question 3

The standard deviation is the positive square root of the variance.

Accepted Answer

A) True 
 B)False

Question 4

Is it possible for a data set to have more than one mode?

Accepted Answer

A) No,there must always be a single mode,or else there is no mode. 
B) Yes,if two or more values in a data set occur the same number of times. 
C) Yes,if there are at least two different values in a data set,there is always more than one mode. 
D) Yes,if two or more values in a data set occur with the most frequency and the frequency is greater than one.

Question 5

Which of the following relationships may be concluded from examining the correlation coefficient?

Accepted Answer

A) No relationship 
B) A positive relationship 
C) A negative relationship 
D) All of the above

Question 6

The following are daily returns for the Dow Jones Industrial average during the week of October 13^th 2008.The returns are rounded to the nearest whole number. 11%,-1.00%,-8.00%,5.00%,-1.00% A)Calculate the arithmetic mean return. B)Calculate the geometric mean return.

Accepted Answer

The answer of The following are daily returns for the...

Question 7

The following data represents the number of unique visitors and the revenue a website generated for the months of July through December.  a.What is the sample standard deviation for the number of unique visitors and the revenue?
B)Calculate the coefficient of variations.Which variable has a higher relative dispersion?
C)Calculate the sample correlation coefficient between the number of unique visitors and Revenue.
D)Comment on the strength of the linear relationship.What does this mean for the owner of the website?

Accepted Answer

The answer of The following data represents the number of...

Question 8

Professors at a local university earn an average salary of $80,000 with a standard deviation of $6,000.The salary distribution is approximately bell-shaped.What can be said about the percentage of salaries that are at least $74,000?

Accepted Answer

A) About 68 percent 
B) About 84 percent. 
C) About 95 percent. 
D) About 97.5 percent.

Question 9

A college professor collected data on the number of hours spent by his 100 students over the weekend to prepare for Monday's Business Statistics exam.He processed the data by Excel and the following incomplete output is available.  The median is most likely to be

Accepted Answer

A) About 7 hours. 
B) Less than 7 hours. 
C) Greater than 7 hours. 
D) Cannot tell from the information provided.

Question 10

Amounts spent by a sample of 200 customers at a retail store are summarized in the following relative frequency distribution.  The median amount will fall in the following class interval:

Accepted Answer

A) 0 up to 10 
B) 10 up to 20 
C) 20 up to 30 
D) 30 up to 40

Question 11

Which of the following statements about variance is most accurate? Variance:

Accepted Answer

A) is the square root of the standard deviation. 
B) can be a positive number or a negative number. 
C) is denominated in the same units as the original data. 
D) is the average of the squared deviations from the mean.

Question 12

The sample data below shows the number of hours spent by 5 students over the weekend to prepare for Monday's Business Statistics exam.  The interquartile range of the data is closest to:

Accepted Answer

A) 4 hours 
B) 6 hours 
C) 10 hours 
D) 12 hours

Question 13

The variance and standard deviation are the most widely used measures of central location.

Accepted Answer

A) True 
 B)False

Question 14

The coefficient of variation is best described as

Accepted Answer

A) A relative measure of dispersion. 
B) An absolute measure of dispersion. 
C) A relative measure of central location. 
D) An absolute measure of central location.

Question 15

The terms central location or central tendency refer to the way quantitative data tend to cluster around some middle or central value.

Accepted Answer

A) True 
 B)False

Question 16

Which five values are graphed on a box plot?

Accepted Answer

A) Min,Quintile 1,Mean,Quintile 3,Max 
B) Min,Quartile 1,Mean,Quartile 3,Max 
C) Min,Quintile 1,Median,Quintile 3,Max 
D) Min,Quartile 1,Median,Quartile 3,Max

Question 17

The sample data below shows the number of hours spent by 5 students over the weekend to prepare for Monday's Business Statistics exam.  The mean and the median of the numbers of hours spent by the 5 students are

Accepted Answer

A) 2 hours and 5 hours,respectively 
B) 3 hours and 5 hours,respectively 
C) 5 hours and 2 hours,respectively 
D) 5 hours and 3 hours,respectively

Question 18

The table below gives the deviations of a portfolio's annual total returns from its benchmark's annual returns,for a 6-year period ending in 2011.  The arithmetic mean return and median return are closest to:

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 19

A portfolio manager generates a 5% return in 2008,a 12% return in 2009,a negative 6% return in 2010,and a return of 2% (non-annualized)in the first quarter of 2011.The annualized return for the entire period is closest to:

Accepted Answer

A) 3.05% 
B) 3.25% 
C) 3.50% 
D) 3.77%

Question 20

The Sharpe ratio measures the extra reward per unit of risk.

Accepted Answer

A) True 
 B)False

Exam 3: Numerical Descriptive Measures

Which of the following is true when using the empirical rule for a set of sample data?

Which of the following statements is most accurate when defining percentiles?

The standard deviation is the positive square root of the variance.

Is it possible for a data set to have more than one mode?

Which of the following relationships may be concluded from examining the correlation coefficient?

The following are daily returns for the Dow Jones Industrial average during the week of October 13^th 2008.The returns are rounded to the nearest whole number. 11%,-1.00%,-8.00%,5.00%,-1.00% A)Calculate the arithmetic mean return. B)Calculate the geometric mean return.

Professors at a local university earn an average salary of $80,000 with a standard deviation of $6,000.The salary distribution is approximately bell-shaped.What can be said about the percentage of salaries that are at least $74,000?

A college professor collected data on the number of hours spent by his 100 students over the weekend to prepare for Monday's Business Statistics exam.He processed the data by Excel and the following incomplete output is available. The median is most likely to be

Amounts spent by a sample of 200 customers at a retail store are summarized in the following relative frequency distribution. The median amount will fall in the following class interval:

Which of the following statements about variance is most accurate? Variance:

The sample data below shows the number of hours spent by 5 students over the weekend to prepare for Monday's Business Statistics exam. The interquartile range of the data is closest to:

The variance and standard deviation are the most widely used measures of central location.

The coefficient of variation is best described as

The terms central location or central tendency refer to the way quantitative data tend to cluster around some middle or central value.

Which five values are graphed on a box plot?

The sample data below shows the number of hours spent by 5 students over the weekend to prepare for Monday's Business Statistics exam. The mean and the median of the numbers of hours spent by the 5 students are

The table below gives the deviations of a portfolio's annual total returns from its benchmark's annual returns,for a 6-year period ending in 2011. The arithmetic mean return and median return are closest to:

A portfolio manager generates a 5% return in 2008,a 12% return in 2009,a negative 6% return in 2010,and a return of 2% (non-annualized) in the first quarter of 2011.The annualized return for the entire period is closest to:

The Sharpe ratio measures the extra reward per unit of risk.

Exam 3: Numerical Descriptive Measures

Which of the following is true when using the empirical rule for a set of sample data?

Which of the following statements is most accurate when defining percentiles?

The standard deviation is the positive square root of the variance.

Is it possible for a data set to have more than one mode?

Which of the following relationships may be concluded from examining the correlation coefficient?

The following are daily returns for the Dow Jones Industrial average during the week of October 13th 2008.The returns are rounded to the nearest whole number. 11%,-1.00%,-8.00%,5.00%,-1.00% A)Calculate the arithmetic mean return. B)Calculate the geometric mean return.

Professors at a local university earn an average salary of $80,000 with a standard deviation of $6,000.The salary distribution is approximately bell-shaped.What can be said about the percentage of salaries that are at least $74,000?

A college professor collected data on the number of hours spent by his 100 students over the weekend to prepare for Monday's Business Statistics exam.He processed the data by Excel and the following incomplete output is available. The median is most likely to be

Amounts spent by a sample of 200 customers at a retail store are summarized in the following relative frequency distribution. The median amount will fall in the following class interval:

Which of the following statements about variance is most accurate? Variance:

The sample data below shows the number of hours spent by 5 students over the weekend to prepare for Monday's Business Statistics exam. The interquartile range of the data is closest to:

The variance and standard deviation are the most widely used measures of central location.

The coefficient of variation is best described as

The terms central location or central tendency refer to the way quantitative data tend to cluster around some middle or central value.

Which five values are graphed on a box plot?

The sample data below shows the number of hours spent by 5 students over the weekend to prepare for Monday's Business Statistics exam. The mean and the median of the numbers of hours spent by the 5 students are

The table below gives the deviations of a portfolio's annual total returns from its benchmark's annual returns,for a 6-year period ending in 2011. The arithmetic mean return and median return are closest to:

A portfolio manager generates a 5% return in 2008,a 12% return in 2009,a negative 6% return in 2010,and a return of 2% (non-annualized) in the first quarter of 2011.The annualized return for the entire period is closest to:

The Sharpe ratio measures the extra reward per unit of risk.

The following are daily returns for the Dow Jones Industrial average during the week of October 13^th 2008.The returns are rounded to the nearest whole number. 11%,-1.00%,-8.00%,5.00%,-1.00% A)Calculate the arithmetic mean return. B)Calculate the geometric mean return.