Question 1

Which of the following best describes the difference between discrete and continuous data?

Accepted Answer

Discrete data are counted and typically represented by whole numbers, while continuous data are measured and can take on any value within a range, including decimals.

Question 2

A frequency distribution is constructed for the number of laptops sold per day at a store over 30 days. What is the main purpose of constructing this frequency distribution?

Accepted Answer

To show the number of data observations that fall into specific intervals or classes.

Question 3

Suppose you have a data set of 100 values. According to the $$2^k$$ rule, what is the smallest value of $$k ($$number of classes) that satisfies $$2^k \geq 100$$?

Accepted Answer

$$k = 7$$ because $$2^7 = 128$$ \geq 100$$

Question 4

Which of the following is NOT a recommended rule when constructing classes for grouped data in a frequency distribution?

Accepted Answer

It is acceptable to have empty classes if it makes the histogram look better.

Question 5

A relative frequency distribution is constructed by:

Accepted Answer

Dividing each class frequency by the total number of observations.

Question 6

In a cumulative relative frequency distribution, what should the last cumulative relative frequency value be (ignoring rounding errors)?

Accepted Answer

$$1.00$$

Question 7

Which type of chart is most appropriate for displaying the proportion of students in different majors at a university?

Accepted Answer

Pie chart

Question 8

A business analyst wants to compare the number of customer complaints by type (e.g., late delivery, damaged product, wrong item) and also show the cumulative percentage of complaints. Which chart should they use?

Accepted Answer

Pareto chart

Question 9

Which of the following statements about histograms is TRUE?

Accepted Answer

Histograms display the frequency of data in each class interval using bars with no gaps between them.

Question 10

A stem and leaf display is constructed for a set of exam scores. What is a key advantage of this display compared to a histogram?

Accepted Answer

It shows the original data values.

Question 11

A contingency table is most useful for:

Accepted Answer

Displaying the frequencies of two qualitative variables and identifying relationships between them.

Question 12

Which Excel function is most appropriate for counting the number of times a specific category appears in a qualitative data set?

Accepted Answer

COUNTIF

Question 13

A scatter plot is used to:

Accepted Answer

Display the relationship between two quantitative variables.

Question 14

If a histogram has too few classes, what is a likely consequence?

Accepted Answer

Important patterns in the data may be obscured.

Question 15

Which of the following best describes an ogive?

Accepted Answer

A line graph that plots the cumulative relative frequency distribution.

Question 16

A company wants to visualize the monthly sales revenue over the past year to identify trends. Which chart should they use?

Accepted Answer

Line chart

Question 17

You are constructing a frequency distribution for continuous data. The minimum value is 12, the maximum value is 72, and you want 6 classes. What is the class width?

Accepted Answer

$$\frac{72 - 12}{6} = 10$$

Question 18

Which of the following is a key difference between a bar chart and a histogram?

Accepted Answer

Bar charts have gaps between bars, while histograms have adjacent bars with no gaps.

Question 19

A business wants to compare the sales of three different products over four quarters. Which type of bar chart would best display this information?

Accepted Answer

Clustered bar chart

Question 20

Which of the following best describes the use of sparklines in Excel?

Accepted Answer

They are small charts embedded in a worksheet cell to provide a visual representation of data trends.

Displaying Descriptive Statistics: Tools and Techniques in Business Statistics

Study Guide - Practice Questions

Study Guide - Flashcards