## Statistics for Management And Economics 9th Edition by Gerald Keller – Test Bank

**CHAPTER 23: CONCLUSION**

**TRUE/FALSE**

- The same statistical techniques apply whether the data is interval, nominal, or ordinal.

ANS: F PTS: 1 NAT: Analytic; Statistical Inference

- The source of statistical inference is the sampling distribution.

ANS: T PTS: 1 NAT: Analytic; Statistical Inference

- The validity of any statistical outcome depends on the validity of its sample.

ANS: T PTS: 1 NAT: Analytic; Statistical Inference

- Statistical inferences are facts and are not based on probability.

ANS: F PTS: 1 NAT: Analytic; Statistical Inference

- In hypothesis testing, you start out assuming the null hypothesis is false.

ANS: F PTS: 1 NAT: Analytic; Statistical Inference

- If the difference between the null hypothesis and your test statistic is very large, you reject the null hypothesis.

ANS: T PTS: 1 NAT: Analytic; Statistical Inference

- If the probability of making a Type II error decreases, the probability of making a Type I error increases.

ANS: T PTS: 1 NAT: Analytic; Statistical Inference

- A procedure with a very small probability of a Type I error will also have a very small probability of a Type II error.

ANS: F PTS: 1 NAT: Analytic; Statistical Inference

- A larger sample increases the confidence level of a confidence interval.

ANS: F PTS: 1 NAT: Analytic; Statistical Inference

- We can use analysis of variance (ANOVA) in place of the
*t*-test when comparing two population means.

ANS: T PTS: 1 NAT: Analytic; Statistical Inference

- The Student-
*t*and the*F*-distributions have no relationship to each other.

ANS: F PTS: 1 NAT: Analytic; Statistical Inference

- We can use regression analysis with indicator variables in place of analysis of variance (ANOVA).

ANS: T PTS: 1 NAT: Analytic; Statistical Inference

- The techniques used to analyze nominal data involve a ranking procedure.

ANS: F PTS: 1 NAT: Analytic; Statistical Inference

- The techniques used to analyze ordinal data involve a ranking procedure.

ANS: T PTS: 1 NAT: Analytic; Statistical Inference

- The standard normal distribution and the Chi-squared distribution are related to each other.

ANS: T PTS: 1 NAT: Analytic; Statistical Inference

**MULTIPLE CHOICE**

- If you use information about a sample to draw a conclusion about a population, you are doing:

a.

Inferential parameters

b.

Descriptive statistics

c.

Inferential statistics

d.

The wrong kind of statistics

ANS: C PTS: 1 NAT: Analytic; Statistical Inference

- Which of the following is NOT a type of data?

a.

Parameter data

b.

Nominal data

c.

Ordinal data

d.

Interval data

ANS: A PTS: 1 NAT: Analytic; Statistical Inference

- Which type of data involves real numbers?

a.

Nominal data

b.

Interval data

c.

Ordinal data

**d.**

None of these choices.

ANS: B PTS: 1 NAT: Analytic; Statistical Inference

- Which type of data involves categories?

a.

Interval data

b.

Ordinal data

c.

Nominal data

**d.**

None of these

ANS: C PTS: 1 NAT: Analytic; Statistical Inference

- Which type of data involves ratings?

a.

Interval data

b.

Ordinal data

c.

Nominal data

**d.**

None of these

ANS: B PTS: 1 NAT: Analytic; Statistical Inference

- Which of the following is an example of interval data?

a.

The weight of a newborn baby.

b.

The gender of a baby.

c.

Whether or not a baby weighs more than 10 pounds.

d.

Your order of preference of three baby names.

ANS: A PTS: 1 NAT: Analytic; Statistical Inference

- Which of the following statements is true?

a.

Descriptive techniques summarize information from samples.

b.

Inferential techniques allow us to make estimates about a population.

c.

Inferential techniques allow us to draw conclusions about a population.

**d.**

All of these statements are true.

ANS: D PTS: 1 NAT: Analytic; Statistical Inference

- Which of the following is an example of nominal data?

a.

The gender of a baby.

b.

The weight of a newborn baby.

c.

The number of other babies born on the same day.

d.

Your order of preference of three baby names.

ANS: A PTS: 1 NAT: Analytic; Statistical Inference

- Which of the following is an example of ordinal data?

a.

The weight of a newborn baby.

b.

The gender of a baby.

c.

The number of siblings a baby has.

d.

Your order of preference of three baby names.

ANS: D PTS: 1 NAT: Analytic; Statistical Inference

- How do the requirements of nonparametric and parametric techniques compare?

a.

Nonparametric techniques have more restrictions than parametric techniques.

b.

Nonparametric techniques have fewer restrictions than parametric techniques.

c.

Both types of techniques have the same requirements.

d.

There are no requirements for parametric or nonparametric techniques.

ANS: B PTS: 1 NAT: Analytic; Statistical Inference

- If your hypothesis test has a very small probability for a Type I error, how does this affect the probability of a Type II error?

a.

It will increase.

b.

It will decrease.

c.

It will be the same as for a Type I error.

d.

No way of knowing without more information.

ANS: A PTS: 1 NAT: Analytic; Statistical Inference

- The sampling distributions that are used for interval data are the Student-
*t*and the:

a.

Chi-squared distribution.

b.

Binomial distribution.

c.

Discrete distribution.

d.

*F*-distribution.

ANS: D PTS: 1 NAT: Analytic; Statistical Inference

- The sampling distributions that are used for nominal data are the standard normal distribution and the:

a.

Chi-squared distribution.

b.

Binomial distribution.

c.

*F*-distribution.

d.

Interval distribution.

ANS: A PTS: 1 NAT: Analytic; Statistical Inference

- Which of the following data collection methods is more likely to lead to a definitive conclusion?

a.

Data collected through observation.

b.

Data collected through an experiment.

c.

Data collected through the use of volunteers.

d.

Data collected through a survey.

ANS: B PTS: 1 NAT: Analytic; Statistical Inference

**COMPLETION**

- ____________________ techniques allow us to make estimates and draw conclusions about populations from samples.

ANS: Inferential

PTS: 1 NAT: Analytic; Statistical Inference

- There are three types of data: ____________________; ____________________; and ____________________.

ANS:

interval; nominal; ordinal

interval; ordinal; nominal

nominal; interval; ordinal

nominal; ordinal; interval

ordinal; interval; nominal

ordinal; nominal; interval

PTS: 1 NAT: Analytic; Statistical Inference

- If the difference between our test statistic and the null hypothesis is large, we reject the ____________________ hypothesis.

ANS: null

PTS: 1 NAT: Analytic; Statistical Inference

- The standard that we use to decide whether or not to reject a null hypothesis is the probability of a(n) ____________________.

ANS: Type I error

PTS: 1 NAT: Analytic; Statistical Inference

- In any hypothesis test there are two possible errors, called ____________________ and ____________________.

ANS:

Type I; Type II

Type II; Type I

Type I errors; Type II errors

Type II errors; Type I errors

PTS: 1 NAT: Analytic; Statistical Inference

- Formulas for confidence intervals and test statistics all come from ____________________ distributions.

ANS: sampling

PTS: 1 NAT: Analytic; Statistical Inference

- We can improve the exactitude of a confidence interval estimator by increasing the ____________________.

ANS: sample size

PTS: 1 NAT: Analytic; Statistical Inference

- We can decrease the probability of a Type II error by increasing the ____________________.

ANS: sample size

PTS: 1 NAT: Analytic; Statistical Inference

- The width of a confidence interval ____________________ when more data is collected.

ANS: decreases

PTS: 1 NAT: Analytic; Statistical Inference

- In analyzing interval data, we attempt to explain as much of the ____________________ as possible.

ANS: variation

PTS: 1 NAT: Analytic; Statistical Inference

- The techniques used on ordinal data are based on ranking procedures. We call these ____________________ techniques.

ANS: nonparametric

PTS: 1 NAT: Analytic; Statistical Inference

- To ensure the validity of a statistical technique, we must first check the required ____________________.

ANS: conditions

PTS: 1 NAT: Analytic; Statistical Inference

- We often use a(n) ____________________ technique to analyze data when the conditions for a(n) ____________________ technique are not satisfied.

ANS: nonparametric; parametric

PTS: 1 NAT: Analytic; Statistical Inference

- Two ways in which we can obtain data are through ____________________ or ____________________.

ANS:

experimentation; observation

observation; experimentation

PTS: 1 NAT: Analytic; Statistical Inference

**SHORT ANSWER**

- Describe a plan for estimating the average GPA at your university by using inferential statistics. Include which statistical technique you plan to use to draw your conclusions.

ANS:

Select a random sample of n students from this university, where *n* is large. Find the GPA for each student, and then calculate the mean and standard deviation of the GPA for all n students. Use this information to estimate the average GPA for all students at the university by using a confidence interval.

PTS: 1 NAT: Analytic; Statistical Inference

- One prevailing idea amongst statisticians is the idea of “Garbage in / garbage out.” Explain the meaning of this phrase and give an example of it.

ANS:

The validity of any statistical result or conclusion depends on the validity of the sampling procedure, and the data collection process.

__Example:__ A researcher wants to determine which candidate is being favored in the next presidential election, so she goes to the mall on Saturday and asks the first 100 people she sees. Her results are not credible because she used a biased sample.

PTS: 1 NAT: Analytic; Statistical Inference

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