Question 1

A level of data measurement that has an absolute zero is called _______.
A)interval level
B)ordinal level
C)nominal level
D)ratio level
E)relative level

Accepted Answer

The ratio level of measurement not only has the properties of an interval level (equal intervals between values and no true zero), but it also includes a true zero point, where zero indicates the absence of the quantity being measured. This allows for the calculation of ratios, making it the most informative level of measurement.

Question 2

Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales trend. Specifically, the number of customers is stable at 1,500, but they are purchasing less each year.
She orders her staff to search for causes of the downward trend by surveying all 1,500 industrial customers.One question on the survey asked the customers: "How many people does your company employ? The measurement level for this question is __________.
A)interval level
B)ordinal level
C)nominal level
D)relative level
E)ratio level

Accepted Answer

The measurement level for the question "How many people does your company employ?" is ratio level because it involves numerical values that have a true zero point, indicating the absence of employees, and allows for a meaningful comparison of values (e.g., twice as many employees).

Question 3

A market research analyst has asked consumers to rate the appearance of a new package on a scale of 1 to 5.A 1 means that the appearance is awful while a 5 means that it is excellent.The measurement level of this data is _______.
A)interval level data
B)ordinal level data
C)nominal level data
D)ratio level data
E)relative level data

Accepted Answer

The scale of 1 to 5 for rating the appearance of a package represents an order or ranking, where each number signifies a level of preference or quality. This is characteristic of ordinal level data, where the numbers indicate a relative order but not the exact difference between the levels.

Question 4

Members of the accounting department's clerical staff were asked to rate their supervisor's leadership style as either (1)authoritarian or (2)participatory.This is an example of _______.
A)interval level data
B)ordinal level data
C)nominal level data
D)ratio level data
E)relative level data

Accepted Answer

The data collected from the survey is categorical, as it involves categorizing the leadership style into one of two non-numeric categories: authoritarian or participatory. This type of data is known as nominal level data, which is used for labeling variables without any quantitative value.

Question 5

Which scale of measurement has these two properties: linear distance is meaningful and the location of origin (or zero point)is arbitrary?
A)Interval level
B)Ordinal level
C)Nominal level
D)Ratio level
E)Minimal level

Accepted Answer

The interval level of measurement has meaningful distances between measurements and an arbitrary zero point, meaning it does not indicate a lack of the variable being measured (e.g., temperature in Celsius or Fahrenheit).

Question 6

A question in a survey of microcomputer users asked: "Which operating system do you use most often: a.Apple OS 7, b.MS DOS, c.MS Windows 95, d.UNIX." The measurement level for these possible responses is _________________.
A)nominal level
B)ordinal level
C)interval level
D)ratio level
E)relative level

Accepted Answer

The measurement level is nominal because the responses categorize the operating system without implying any order, rank, or measurable difference between the categories.

Question 7

A consumer has been asked to rank five cars based upon their desirability.This level of measurement is _______.
A)interval level
B)ordinal level
C)nominal level
D)ratio level
E)relative level

Accepted Answer

Ranking cars based on desirability places them in a specific order without implying any specific numerical difference between the ranks, which is characteristic of ordinal level measurement.

Question 8

Which of the following statements is correct?
A)Business researchers rarely give attention to collecting meaningful data.
B)Variables are data that can be directly used for decision making.
C)Valid data are the lifeblood of business statistics.
D)Measurements never need to be defined by the business researcher.
E)Business statistics are extremely complex and hard to use for decision making.

Accepted Answer

Valid data are crucial for business statistics because they provide the accurate information needed for making informed decisions. Without valid data, any analysis or conclusion drawn could be misleading or incorrect, impacting the decision-making process negatively.

Question 9

A person has decided to code a particular set of sales data.A value of 0 is assigned if the sales occurred on a weekday, and a value of 1 means it happened on a weekend.This is an example of _______.
A)interval level data
B)ordinal level data
C)nominal level data
D)ratio level data
E)relative level data

Accepted Answer

This coding system represents nominal level data because it categorizes sales data into two distinct categories (weekday or weekend) without any inherent order or ranking. Nominal data classify observations into mutually exclusive categories.

Question 10

The social security number of employees would be an example of what level of data measurement?
A)Interval level data
B)Ordinal level data
C)Nominal level data
D)Ratio level data
E)Relative level data

Accepted Answer

Social security numbers are examples of nominal level data because they are used to categorize or identify individuals without implying any sort of order or ranking.

Question 11

Which scale of measurement has these two properties: linear distance is meaningful and the location of origin (or zero point)is absolute (or natural)?
A)Interval level
B)Ordinal level
C)Nominal level
D)Ratio level
E)Relative level

Accepted Answer

The ratio level of measurement not only allows for the determination of the differences between the values, but it also has a natural zero point, making it possible to make statements about how many times greater one value is than another. This is why it fits the description of having meaningful linear distance and an absolute location of origin.

Question 12

The lowest level of data measurement is _______.
A)interval level
B)ordinal level
C)nominal level
D)ratio level
E)minimal level

Accepted Answer

The nominal level of measurement is the lowest level of data measurement, as it categorizes data without any order or ranking.

Question 13

A researcher wants to know the average variation in the altimeters of small, privately owned airplanes.The task of determining this is expensive and time consuming, if even possible, given the large number of such airplanes.The researcher decides to use government records to randomly locate the owners of ten such planes and then get permission to test the altimeters in those planes.When the researcher is done, he will use the data gathered from the group of ten to reach conclusions about all small, privately owned airplanes.This process can best be described as _______.
A)data statistics
B)research statistics
C)descriptive statistics
D)inferential statistics
E)nonparametric statistics

Accepted Answer

The process described is inferential statistics, where a sample (in this case, ten airplanes) is used to make inferences or draw conclusions about the larger population (all small, privately owned airplanes).

Question 14

Which of the following is not a random variable when flipping a coin?
A)Assigning 1 when Tail and 0 when Head
B)Assigning 0 when Head and 1 when Tail
C)The list of outcomes Head and Tail
D)The number of Heads
E)Assigning 1 when Tail or Head

Accepted Answer

The answer of Which of the following is not a...

Question 15

Which of the following operations is meaningful for processing ordinal data, but is meaningless for processing nominal data?
A)Addition
B)Multiplication
C)Ranking
D)Counting
E)Division

Accepted Answer

Ranking is meaningful for ordinal data because ordinal data has an inherent order, allowing for comparisons of greater than or less than. This operation is meaningless for nominal data, which consists of categories without any intrinsic order.

Question 16

A researcher wants to know the average variation in the altimeters of small, privately owned airplanes.The task of determining this is expensive and time consuming, if even possible, given the large number of such airplanes.The researcher decides to use government records to randomly locate the owners of ten such planes and then get permission to test the altimeters in those planes.When the researcher is done, he will use the data gathered from the group of ten to reach conclusions about all small, privately owned airplanes.The average variation computed using the data gathered on the group of ten airplanes is best described as a _______.
A)measurement
B)data
C)statistic
D)parameter
E)census

Accepted Answer

The average variation computed from the group of ten airplanes is a statistic because it is a summary measure calculated from a sample drawn from a larger population.

Question 17

Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales trend. Specifically, the number of customers is stable at 1,500, but they are purchasing less each year.
She orders her staff to search for causes of the downward trend by surveying all 1,500 industrial customers.One question on the survey asked the customers: "Which of the following best describes your primary business: a.manufacturing, b.wholesaler, c.retail, d.service." The measurement level for these possible responses is _________________.
A)interval level
B)ordinal level
C)nominal level
D)ratio level
E)relative level

Accepted Answer

The measurement level for the responses is nominal level because the categories (manufacturing, wholesaler, retail, service) are names that do not imply any order, rank, or measurable intervals between them.

Question 18

Which of the following operations is meaningful for processing nominal data?
A)Addition
B)Multiplication
C)Ranking
D)Counting
E)Division

Accepted Answer

Counting is meaningful for processing nominal data because it allows for the enumeration of occurrences within categories without implying any mathematical operations that assume ordinal, interval, or ratio properties, which nominal data does not possess.

Question 19

Morningstar Mutual Funds analyzes the risk and performance of mutual funds.Each mutual fund is assigned an overall rating of one to five stars.One star is the lowest rating, and five stars is the highest rating.This level of measurement is __________.
A)ordinal level
B)interval level
C)nominal level
D)ratio level
E)relative level

Accepted Answer

The rating system of one to five stars represents an ordinal level of measurement because it categorizes mutual funds into ordered groups based on their performance and risk, without indicating the exact difference in performance between the ratings.

Question 20

Which of the following measurement processes is least likely to yield usable data?
A)Counting the number of shoppers entering the department store between 12 pm and 2 pm.
B)Studying cell phone bills and recording the number of text messages sent per month.
C)Performing a consumer survey of preferences in fast food chains.
D)Asking students to list three things that are important to them.
E)Calculating the percent of college students who work at least 20 hours while attending school.

Accepted Answer

Asking students to list three things that are important to them is less likely to yield usable data because it produces qualitative, subjective responses that are difficult to quantify or compare directly, unlike the other options which involve counting, recording, or calculating specific, quantifiable data.

Quiz 1: Introduction to Statistics and Business Analytics

A level of data measurement that has an absolute zero is called _______.

A market research analyst has asked consumers to rate the appearance of a new package on a scale of 1 to 5.A 1 means that the appearance is awful while a 5 means that it is excellent.The measurement level of this data is _______.

Members of the accounting department's clerical staff were asked to rate their supervisor's leadership style as either (1) authoritarian or (2) participatory.This is an example of _______.

Which scale of measurement has these two properties: linear distance is meaningful and the location of origin (or zero point) is arbitrary?

A question in a survey of microcomputer users asked: "Which operating system do you use most often: a.Apple OS 7, b.MS DOS, c.MS Windows 95, d.UNIX." The measurement level for these possible responses is _________________.

A consumer has been asked to rank five cars based upon their desirability.This level of measurement is _______.

Which of the following statements is correct?

A person has decided to code a particular set of sales data.A value of 0 is assigned if the sales occurred on a weekday, and a value of 1 means it happened on a weekend.This is an example of _______.

The social security number of employees would be an example of what level of data measurement?

Which scale of measurement has these two properties: linear distance is meaningful and the location of origin (or zero point) is absolute (or natural) ?

The lowest level of data measurement is _______.

Which of the following is not a random variable when flipping a coin?

Which of the following operations is meaningful for processing ordinal data, but is meaningless for processing nominal data?

Which of the following operations is meaningful for processing nominal data?

Morningstar Mutual Funds analyzes the risk and performance of mutual funds.Each mutual fund is assigned an overall rating of one to five stars.One star is the lowest rating, and five stars is the highest rating.This level of measurement is __________.

Which of the following measurement processes is least likely to yield usable data?