Statistics For Data Science Quiz Questions: Section 1 - Introduction
Statistics For Data Science Quiz Questions: Section 1 - Introduction
Section 1 – Introduction
1.2. Population vs sample
1.2.1. The high school principal asked you to conduct a survey on student satisfaction for the entire school.
You must contact your classmates about their opinion. Then you present the results to the principal.
Would you say this was population or sample data? What is the value you presented called?
a) population, statistic
b) population, parameter
c) sample, statistic
d) sample, parameter
Explanation: You interviewed only one class – your own. This is a sample taken from the population of all
students studying in the high school. Since it was a sample, the value associated with it was a statistic.
1.2.2. You are trying to estimate the average valuation of start-ups in the USA. Imagine you are able to
visit 200 start-ups in Silicon Valley in a random manner. What is a possible problem of your study?
Explanation: You were estimating a statistic for all start-ups in the USA. However, your sample was taken
only from startups in Silicon Valley. While this may be a proxy for California, it does not represent the
other 49 states. Therefore, the sample is not representative.
a) categorical, discrete
b) categorical, continuous
c) numerical, discrete
d) numerical, continuous
Explanation: The data is numerical, as it represents a number. As we said in the lesson, weight is a
continuous variable.
2.1.2. A variable represents the gender of a person. What type of data does it represent?
a) categorical
b) numerical, discrete
c) numerical, continuous
a) nominal
b) ordinal
c) interval
d) ratio
Explanation: Gender is a nominal variable. The possible categories cannot be put in any order.
2.2.2. A variable represents the weight of a person. What is the level of measurement?
a) nominal
b) ordinal
c) interval
d) ratio
Explanation: Weight is a ratio variable. It is quantitative and there is a true zero point.
b) A graph representing the possible values of a variable and the probability of their occurrence
c) A distribution is a function that shows the possible values for a variable and the probability of their
occurrence.
d) A distribution is a function that shows the probability of a variable.
Explanation: The Normal distribution approximates a wide number of random variables. However, not
all random variables follow a Normal distribution.
a) The means of the samples we extract will be closer to normally distributed if we extract more
samples.
b) The distribution of the sample means is expected to have a mean equal to the mean of the original
dataset.
c) The distribution of the sample means is expected to have a variance equal to the variance of the
original dataset, divided by the sample size.
d) The means of the samples we extract will be closer to normally distributed, the smaller the samples
we extract.
Explanation: The means of the samples we extract will be closer to normally distributed, the LARGER the
samples we extract.
a) a point estimator
b) a point estimate
c) an interval estimator
d) an interval estimate
Explanation: A point estimate is a single number given by an estimator. The estimator in this case is a
point estimator and is the formula for the mean.
a) Whenever we can’t calculate an interval, the confidence interval is equal to the point estimate.
b) The point estimate is the starting point of the interval.
c) The point estimate is the midpoint of the interval.
d) The point estimate is the ending point of the interval.
Explanation: The Student’s T distribution approximates the Normal distribution but has fatter tails. This
means the probability of values being far away from the mean is bigger. For big enough samples, the
Student’s T distribution coincides with the Normal distribution.
Explanation: A higher statistic increases the ME. A higher standard deviation increases the ME. A higher
sample size decreases the ME. Therefore: a) and c) are ambiguous. as we don’t know which effect is
stronger. With b), the ME will definitely increase. In d) both statements decrease the ME.
b) H0: The average number of ice-creams our shop sells differs from 100.
H1: The average number of ice-creams our shop sells is 100.
Explanation: Since you are testing if you are selling as much as your competitor, then this is your
alternative hypothesis. The null hypothesis is the one we are trying to reject, so it comprises the
statement opposite to our sentiment.
4.1.2. You want to check if your height is above average, compared to your classmates. State the null
and alternative hypotheses of this test.
Explanation: Once again, the null hypothesis states the opposite statement. You want to check if your
height is above average; therefore, the null hypothesis of the test is ‘lower or equal’. You have to include
‘equal’ in the null hypothesis, as you want to understand if you are ABOVE average.
4.1.3. You want to test if the Obama administration issued fewer executive orders than the Bush
administration. State the null and alternative hypotheses of this test.
a) H0: The Obama administration issued more executive orders than the Bush administration.
H1: The Obama administration issued fewer executive orders than the Bush administration.
b) H0: The Obama administration issued fewer executive orders than the Bush administration.
H1: The Obama administration issued more executive orders than the Bush administration.
c) H0: The Obama administration issued at least as many executive orders as the Bush administration.
H1: The Obama administration issued more executive orders than the Bush administration.
d) H0: The Obama administration issued at least as many executive orders as the Bush administration.
H1: The Obama administration issued fewer executive orders than the Bush administration.
Explanation: We want to test if the Obama administration issued fewer executive orders than the Bush
administration. Therefore, the null hypothesis is: ‘The Obama administration issued at least as many
executive orders as the Bush administration.’ The alternative hypothesis encompasses everything else;
therefore, the alternative is: The Obama administration issued fewer executive orders than the Bush
administration. Answer c) the null hypothesis is right, but the alternative was wrong. The answer is d).
a) 0.05
b) 0.01
c) 0.5
d) 0.1
Explanation: 0.5 is a very high level of significance. Testing with it will not give much credibility to your
test. There is 50% chance you are wrong.
Explanation: If the test value falls into the rejection region, you will reject the null hypothesis. ‘You will
reject the test’ is a meaningless phrase, as the test is not accepted or rejected; it is executed. The
outcome of the test is rejection or acceptance of the null hypothesis. Similarly, rejecting the significance
level has no meaning.
a) false error
b) false negative
c) false positive
d) it has no other name
4.3.3. What is another way to call the probability of rejecting a null hypothesis that is false?
a) Type I error
b) Type II error
c) Type III error
d) Power of the test
4.3.4. You are taking a pregnancy test. The null hypothesis of this test is: I am not pregnant. In reality,
you are not pregnant, but the test says you are. Which type of error occurred?
Explanation: This is a Type I error. You rejected a null hypothesis that is true. It is also called a false
positive, although in this case, it is counter intuitive. While usually no error is made (that’s why
hypothesis testing is so wide-spread), it is impossible to make both errors at the same time.
4.5. p-value
4.5.1. You have a z-score of 2.31. What is the p-value of this test?
a) 0.010
b) 0.021
c) none of those
d) not enough information
Explanation: Since we haven’t specified if this is a one-tailed or a two-tailed test, there is not enough
information to answer this question.
4.5.2. You have a z-score of 2.31 for a one-tailed test. What is the p-value of this test?
a) 0.010
b) 0.021
c) none of those
d) not enough information
Explanation: The p-value for a one-tailed test is 0.010. The p-value for a two-tailed test is twice as big,
therefore 0.021 (while 0.020 is good enough – differences occur due to rounding).
a) Yes
b) No
a) Yes
b) No
Explanation: While it is true that, if you run out of cones, you cannot sell anymore ice-creams, this is not
regression analysis material. The two variables go hand-in-hand as (usually) each ice-cream requires a
cone.
5.3.2. You are trying to predict the amount of beer consumed in the US, depending on the state. Is this
regression material?
a) Yes
b) No
Explanation: Yes, logic shows us that, in different states, people drink different amounts of beer. Some
states are warmer; other are colder etc. While many more things will be a part of this regression, such as
gender, income etc., this is a good basis for regression analysis.
5.7. Decomposition
5.7.1. Which of the following is true?
a) SST = SSR + SSE
b) SSR = SST + SEE
d) SSE = SST + SSR
5.8. R-squared
5.8.1. SST = 1245, SSR = 945, SSE = 300. What is the R-squared of this regression?
a) 0.24
b) 0.52
c) 0.76
d) 0.87
Explanation: The R-squared shows how much of the total variability of the dataset is explained by your
regression model. This may be expressed as: how well your model fits your data. It is incorrect to say
your regression line fits the data, as the line is the geometrical representation of the regression
equation. It also incorrect to say the data fits the model or the regression line, as you are trying to
explain the data with a model, not vice versa.
Explanation: Like the R-squared, the adjusted R-squared measures how well your model fits the data.
However, it penalizes the use of variables that are meaningless for the regression.
Explanation: Almost always, the adjusted R-squared is smaller than the R-squared. The statement is not
true only in the extreme occasions of small sample sizes and a high number of independent variables.
5.14. Assumptions
5.14.1. If a regression assumption is violated:
a) Some things change.
b) You cannot perform a regression.
c) Performing regression analysis will yield an incorrect result.
d) It is no big deal.
Explanation: Nothing stops you from performing the regression analysis, but it will yield an incorrect
result. It is a big deal.
a) True
b) False
Explanation: Omitted variable bias occurs when you forget to include a variable. This is reflected in the
error term as the factor you forgot about is included in the error. In this way, the error is not random
but includes a systematic part (the omitted variable).
Explanation: Autocorrelation is not observed in cross-sectional data. You usually spot it at time series
data, which is a subset of panel data. Sample data is not relevant for this question.