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Business Statistics,: 9e, GE (Groebner/Shannon/Fry) Chapter 3 Describing Data Using Numerical Measures
Business Statistics,: 9e, GE (Groebner/Shannon/Fry) Chapter 3 Describing Data Using Numerical Measures
1) If after graphing the data for a quantitative variable of interest, you notice that the distribution is
highly skewed in the positive direction, the measure of central location that would likely provide the best
assessment of the center would be the median.
Answer: TRUE
Diff: 2
Keywords: skew, median, center
Section: 3-1 Measures of Center and Location
Outcome: 1
3) The owner of a local gasoline station has kept track of the number of gallons of regular unleaded sold
at his station every day since he purchased the station. This morning, he computed the mean number of
gallons. This value would be considered a statistic.
Answer: FALSE
Diff: 2
Keywords: statistic, parameter
Section: 3-1 Measures of Center and Location
Outcome: 1
4) The Parks and Recreation manager for the city of Detroit recently submitted a report to the city council
in which he indicated that a random sample of 500 park users indicated that the average number of visits
per month was 4.56. This value should be viewed as a statistic by the city council.
Answer: TRUE
Diff: 2
Keywords: statistic, parameter, average
Section: 3-1 Measures of Center and Location
Outcome: 1
5) A statistic is a value that describes a population characteristic while a parameter is computed from a
sample.
Answer: FALSE
Diff: 2
Keywords: statistic, parameter
Section: 3-1 Measures of Center and Location
Outcome: 1
3-1
Copyright © 2018 Pearson Education, Ltd.
6) The symbol μ is used to represent the sample mean.
Answer: FALSE
Diff: 1
Keywords: measure, spread, mean
Section: 3-1 Measures of Center and Location
Outcome: 1
7) A marketing manager for the Verizon cell phone company selected a random sample of 250 customers
from the list of 10,556 total customers in a particular region. The mean monthly bill for the last six months
based on the sample data is $65.70. The manager should realize that the mean bill for all 10,556 customers
will actually be much higher than the sample mean of $65.70.
Answer: FALSE
Diff: 2
Keywords: sample, mean
Section: 3-1 Measures of Center and Location
Outcome: 1
23 34 11 40 25
If these data were considered to be a population and you computed the mean, you would get the same
answer as if these data were considered to be a sample from a larger population.
Answer: TRUE
Diff: 2
Keywords: population, mean, sample
Section: 3-1 Measures of Center and Location
Outcome: 1
23 34 11 40 25 47
Assuming that the data reflect a sample from a larger population, the sample mean is 30.00.
Answer: TRUE
Diff: 1
Keywords: sample, mean, population
Section: 3-1 Measures of Center and Location
Outcome: 1
3-2
Copyright © 2018 Pearson Education, Ltd.
10) You are given the following data:
23 34 11 40 25 47
Assuming that the data reflect the population of interest, the mean of the population is 36.00.
Answer: FALSE
Diff: 1
Keywords: mean, population
Section: 3-1 Measures of Center and Location
Outcome: 1
11) Data are considered to be right-skewed when the mean lies to the right of the median.
Answer: TRUE
Diff: 1
Keywords: skewed, skew, mean, median
Section: 3-1 Measures of Center and Location
Outcome: 1
12) The sample mean is an estimate of μ and may be either higher or lower than μ depending on the
sample.
Answer: TRUE
Diff: 2
Keywords: mean, sample, population
Section: 3-1 Measures of Center and Location
Outcome: 1
13) A lakeside neighborhood in Washington is home to a couple of successful baseball and football
players in Seattle. If news articles usually report the median household income in that neighborhood
rather than the mean income, this would be because income is a left-skewed distribution.
Answer: FALSE
Diff: 2
Keywords: mean, median, skewed
Section: 3-1 Measures of Center and Location
Outcome: 1
9 11 14 22 31
Assuming that these data reflect the population of interest, these data can be considered symmetric.
Answer: FALSE
Diff: 2
Keywords: mean, median, symmetric
Section: 3-1 Measures of Center and Location
Outcome: 1
3-3
Copyright © 2018 Pearson Education, Ltd.
15) You are given the following data:
23 34 11 40 25 47
Assuming that these data are a sample selected from a larger population, the median value for these
sample data is 25.5.
Answer: FALSE
Diff: 2
Keywords: median, sample
Section: 3-1 Measures of Center and Location
Outcome: 1
16) A distribution is said to be symmetric when the sample mean and the population mean are equal.
Answer: FALSE
Diff: 2
Keywords: mean, sample, population, symmetric
Section: 3-1 Measures of Center and Location
Outcome: 1
17) In a recent study of the sales prices of houses in a Midwestern city, the mean sales price has been
reported to be $167,811 while the median sales price was $155,600. From this information, you can
determine that the data involved in the study are left-skewed.
Answer: FALSE
Diff: 2
Keywords: mean, median, skew, skewed
Section: 3-1 Measures of Center and Location
Outcome: 1
18) One of the primary advantages of using the median as a measure of the center for a set of data is that
the median is not affected by extreme values in the data.
Answer: TRUE
Diff: 1
Keywords: median, center, extreme
Section: 3-1 Measures of Center and Location
Outcome: 1
3-4
Copyright © 2018 Pearson Education, Ltd.
19) Suppose a study of houses that have sold recently in your community showed the following
frequency distribution for the number of bedrooms:
Bedrooms Frequency
1 1
2 18
3 140
4 57
5 11
20) Suppose a study of houses that have sold recently in your community showed the following
frequency distribution for the number of bedrooms:
Bedrooms Frequency
1 1
2 18
3 140
4 57
5 11
Based on this information the mean number of bedrooms in houses that sold is approximately 3.26.
Answer: TRUE
Diff: 2
Keywords: mean, weighted
Section: 3-1 Measures of Center and Location
Outcome: 1
3-5
Copyright © 2018 Pearson Education, Ltd.
21) Suppose a study of houses that have sold recently in your community showed the following
frequency distribution for the number of bedrooms:
Bedrooms Frequency
1 1
2 18
3 140
4 57
5 11
Based on this information, the median number of bedrooms in houses sold is 3.20.
Answer: FALSE
Diff: 2
Keywords: median
Section: 3-1 Measures of Center and Location
Outcome: 1
22) Suppose a study of houses that have sold recently in your community showed the following
frequency distribution for the number of bedrooms:
Bedrooms Frequency
1 1
2 18
3 140
4 57
5 11
Based on this information, it is possible to determine that the distribution of bedrooms in homes sold is
right-skewed.
Answer: TRUE
Diff: 3
Keywords: mean, median, skew, skewed
Section: 3-1 Measures of Center and Location
Outcome: 1
23) A data set in which the mean, median, and mode are all equal is said to be a skewed distribution.
Answer: FALSE
Diff: 1
Keywords: mean, median, mode, symmetric, skewed
Section: 3-1 Measures of Center and Location
Outcome: 1
3-6
Copyright © 2018 Pearson Education, Ltd.
24) First Pacific Bank has determined that the mean checking account balance for all its customers is
currently $743.50. Based on this, it is fair to say that about half the customers have balances exceeding
$743.50.
Answer: FALSE
Diff: 2
Keywords: mean, median
Section: 3-1 Measures of Center and Location
Outcome: 1
25) When analyzing annual incomes of adults in a market area, the marketing manager's report indicated
that the 90th percentile is $123,400. That means that 90 percent of the adult incomes in the market area fall
at or below $123,400.
Answer: TRUE
Diff: 1
Keywords: percentile
Section: 3-1 Measures of Center and Location
Outcome: 1
26) When the median of a data set is 110 and the mean is 127, the percentile associated with the mean
must be higher than 50 percent.
Answer: TRUE
Diff: 2
Keywords: mean, median, percentile
Section: 3-1 Measures of Center and Location
Outcome: 1
27) The second quartile for a set of data will have the same value as the 50th percentile only when the
data are symmetric.
Answer: FALSE
Diff: 2
Keywords: quartile, percentile, symmetric
Section: 3-1 Measures of Center and Location
Outcome: 1
28) If a set of data has 1,500 values, the 30th percentile value will correspond to the 450th value in the data
when the data have been arranged in numerical order.
Answer: TRUE
Diff: 3
Keywords: percentile, location
Section: 3-1 Measures of Center and Location
Outcome: 1
3-7
Copyright © 2018 Pearson Education, Ltd.
29) If a set of data has 540 values, the 3rd quartile corresponds to approximately the 135th value when the
data have been arranged in numerical order.
Answer: FALSE
Diff: 3
Keywords: quartile, percentile, location
Section: 3-1 Measures of Center and Location
Outcome: 1
30) A set of data is considered to be symmetric if the 3rd quartile is three times larger than the 1st
quartile.
Answer: FALSE
Diff: 2
Keywords: quartile, percentile, symmetric
Section: 3-1 Measures of Center and Location
Outcome: 1
31) For a symmetric distribution, if the median value is 150 and the second quartile is 40, the fourth
quartile must also be 40.
Answer: FALSE
Diff: 2
Keywords: mean, median, quartile
Section: 3-1 Measures of Center and Location
Outcome: 1
32) Recently an article in a newspaper stated that 75 percent of the households in the state had incomes of
$20,200 or below. Given this input, it is certain that mean household income is less than $20,200.
Answer: FALSE
Diff: 3
Keywords: mean, percentile
Section: 3-1 Measures of Center and Location
Outcome: 1
33) It is possible for a set of data to have multiple modes as well as multiple medians, but there can be
only one mean.
Answer: FALSE
Diff: 2
Keywords: mean, median, mode
Section: 3-1 Measures of Center and Location
Outcome: 1
34) A box and whisker plot shows where the mean value falls relative to the median for a variable.
Answer: FALSE
Diff: 1
Keywords: box, whisker, mean, median
Section: 3-1 Measures of Center and Location
Outcome: 2
3-8
Copyright © 2018 Pearson Education, Ltd.
35) The right and left edges of the box in a box and whisker plot represent the 3rd and 1st quartiles,
respectively.
Answer: TRUE
Diff: 1
Keywords: quartile, box, whisker, edge
Section: 3-1 Measures of Center and Location
Outcome: 2
36) A recent study involving a sample of 3,000 vehicles in California showed the following statistics
related to the number of miles driven per day: Q1 = 12, Q2 = 45, and Q3 = 56. Based on these data, we
know that the distribution is skewed.
Answer: TRUE
Diff: 3
Keywords: quartile, skew, skewed, median
Section: 3-1 Measures of Center and Location
Outcome: 1
37) A recent study involving a sample of 3,000 vehicles in California showed the following statistics
related to the number of miles driven per day: Q1 = 12, Q2 = 45, and Q3 = 56. Based on these data, if a box
and whisker plot is developed, a value of 110 is an outlier.
Answer: FALSE
Diff: 3
Keywords: box, whisker, limit
Section: 3-1 Measures of Center and Location
Outcome: 2
38) A recent study involving a sample of 3,000 vehicles in California showed the following statistics
related to the number of miles driven per day: Q1 = 12, Q2 = 45, and Q3 = 56. Based on these data, if a box
and whisker plot is developed, the upper limit value is 122 miles.
Answer: TRUE
Diff: 3
Keywords: box, whisker, limit
Section: 3-1 Measures of Center and Location
Outcome: 2
39) In drawing a box and whisker plot the upper limit length of the whiskers is 1.5(Q3-Q1).
Answer: TRUE
Diff: 2
Keywords: box, whisker, limit
Section: 3-1 Measures of Center and Location
Outcome: 2
3-9
Copyright © 2018 Pearson Education, Ltd.
40) When surveyed, a sample of 1,250 patients at a regional hospital provided interviewers with the
following summary statistics pertaining to the hospital charges:
Minimum = $278.00 Q1 = $1,245 Q2 = $3,567 Q3= $4,702.
Based on these data, if you were to construct a box and whisker plot, the value corresponding to the
right-hand edge of the box would be $4,702.
Answer: TRUE
Diff: 2
Keywords: box, whisker, edge
Section: 3-1 Measures of Center and Location
Outcome: 2
41) When surveyed, a sample of 1,250 patients at a regional hospital provided interviewers with the
following summary statistics pertaining to the hospital charges:
Minimum = $278.00 Q1 = $1,245 Q2 = $3,567 Q3= $4,702.
Based on these data, if you were to construct a box and whisker plot, the value $278 would be considered
an outlier.
Answer: FALSE
Diff: 3
Keywords: box, whisker, outlier
Section: 3-1 Measures of Center and Location
Outcome: 2
42) When surveyed, a sample of 1,250 patients at a regional hospital provided interviewers with the
following summary statistics pertaining to the hospital charges:
Minimum = $278.00 Q1 = $1,245 Q2 = $3,567 Q3= $4,702.
Based on these data, the distribution is seen to be symmetric.
Answer: FALSE
Diff: 2
Keywords: median, quartile, symmetric
Section: 3-1 Measures of Center and Location
Outcome: 1
43) A dairy farm in Wisconsin bottles milk in one gallon containers. At a recent meeting, the production
manager asked top management for a new filling machine that he argued would assure that all
containers had exactly one gallon of milk. Based on sound statistical principles, the top management
group should conclude that the production manager could have merit to his argument.
Answer: FALSE
Diff: 2
Keywords: variation
Section: 3-2 Measures of Variation
Outcome: 3
44) The range is an ideal measure of variation since it is not sensitive to extreme values in the data.
Answer: FALSE
Diff: 1
Keywords: range, variation, sensitive
Section: 3-2 Measures of Variation
Outcome: 3
3-10
Copyright © 2018 Pearson Education, Ltd.
45) When a variance is calculated for a data set, the resulting value is the same regardless of whether the
data set is treated as a population or a sample.
Answer: FALSE
Diff: 1
Keywords: variance, population, sample
Section: 3-2 Measures of Variation
Outcome: 3
46) The Good-Guys Car Dealership has tracked the number of used cars sold at its downtown dealership.
Consider the following data as representing the population of cars sold in each of the 8 weeks that the
dealership has been open.
3 5 2 7 7 7 9 0
47) The Good-Guys Car Dealership has tracked the number of used cars sold at its downtown dealership.
Consider the following data as representing the population of cars sold in each of the 8 weeks that the
dealership has been open.
3 5 2 7 7 7 9 0
48) The Good-Guys Car Dealership has tracked the number of used cars sold at its downtown dealership.
Consider the following data as representing the population of cars sold in each of the 8 weeks that the
dealership has been open.
3 5 2 7 7 7 9 0
3-11
Copyright © 2018 Pearson Education, Ltd.
49) One of the reasons that the standard deviation is preferred as a measure of variation over the variance
is that the standard deviation is measured in the original units.
Answer: TRUE
Diff: 1
Keywords: standard, deviation, variation, units
Section: 3-2 Measures of Variation
Outcome: 3
50) The interquartile range is the difference between the mean and the median.
Answer: FALSE
Diff: 1
Keywords: interquartile range, median, mean
Section: 3-2 Measures of Variation
Outcome: 3
51) A store manager tracks the number of customer complaints each week. The following data reflect a
random sample of ten weeks.
11 19 4 6 8 9 6 4 0 3
52) A store manager tracks the number of customer complaints each week. The following data reflect a
random sample of ten weeks.
11 19 4 6 8 9 6 4 0 3
3-12
Copyright © 2018 Pearson Education, Ltd.
53) A store manager tracks the number of customer complaints each week. The following data reflect a
random sample of ten weeks.
11 19 4 6 8 9 6 4 0 3
54) The interquartile range contains the middle 50 percent of a data set.
Answer: TRUE
Diff: 2
Keywords: interquartile range
Section: 3-2 Measures of Variation
Outcome: 3
55) For a given set of data, if the data are treated as a population, the calculated standard deviation will
be less than it would be had the data been treated as a sample.
Answer: TRUE
Diff: 2
Keywords: sample, standard, deviation, population
Section: 3-2 Measures of Variation
Outcome: 3
56) If a population standard deviation is computed to be 345, it will almost always be the case that a
standard deviation computed from a random sample from that population will be larger than 345.
Answer: TRUE
Diff: 2
Keywords: population, sample, standard, deviation
Section: 3-2 Measures of Variation
Outcome: 3
57) The advantage of using the interquartile range as a measure of variation is that it utilizes all the data
in its computation.
Answer: FALSE
Diff: 2
Keywords: variation, interquartile, range
Section: 3-2 Measures of Variation
Outcome: 3
3-13
Copyright © 2018 Pearson Education, Ltd.
58) Suppose the standard deviation for a given sample is known to be 20. If the data in the sample are
doubled, the standard deviation will be significantly greater.
Answer: FALSE
Diff: 3
Keywords: standard, deviation
Section: 3-2 Measures of Variation
Outcome: 3
59) Populations with larger means will also have larger standard deviations since the data will be more
spread out for populations with larger means.
Answer: FALSE
Diff: 2
Keywords: mean, standard deviation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
60) In comparing two distributions with the same mean, the coefficient of variation is the only way to
assess which distribution has the greatest relative variability.
Answer: FALSE
Diff: 1
Keywords: mean, coefficient, variation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
61) Consider a situation involving two populations where population 1 is known to have a higher
coefficient of variation than population 2. In this situation, we know that population 1 has a higher
standard deviation than population 2.
Answer: FALSE
Diff: 2
Keywords: coefficient, variation, standard deviation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
62) Acme Taxi has two taxi cabs. The manager tracks the daily revenue for each cab. Over the past 20
days, Cab A has averaged $76.00 per night with a standard deviation equal to $11.00. Cab B has averaged
$200.00 per night with a standard deviation of $18.00. Based on this information, Cab B has the greatest
relative variation.
Answer: FALSE
Diff: 3
Keywords: standard deviation, relative variation, coefficient of variation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
3-14
Copyright © 2018 Pearson Education, Ltd.
63) Acme Taxi has two taxi cabs. The manager tracks the daily revenue for each cab. Over the past 20
days, Cab A has averaged $76.00 per night with a standard deviation equal to $11.00. Cab B has averaged
$200.00 per night with a standard deviation of $18.00. Based on this information, the coefficient of
variation for Cab B is 9 percent.
Answer: TRUE
Diff: 2
Keywords: standard deviation, relative variation, coefficient of variation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
64) Based on the empirical rule we can assume that all bell-shaped distributions have approximately 95
percent of the values within ± 2 standard deviations of the mean.
Answer: TRUE
Diff: 1
Keywords: empirical rule
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
65) Suppose a distribution has a mean of 80 and standard deviation of 10. It is found that 84 percent of the
values in the data set lie between 70 and 90. This implies that the distribution is not bell-shaped.
Answer: TRUE
Diff: 2
Keywords: mean, standard deviation, empirical rule
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
66) The credit card balances for customers at State Bank and Trust has a mean equal to $800 and a
standard deviation equal to $60.00. Kevin Smith's balance is $1,352. Based on this, his standardized value
is 9.20.
Answer: TRUE
Diff: 2
Keywords: mean, standard deviation, z score, standardized value
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
67) Based on the empirical rule we can expect about 95 percent of the values in bell-shaped distributions
to be within ± one standard deviation of the mean.
Answer: FALSE
Diff: 1
Keywords: mean, standard deviation, empirical rule
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
3-15
Copyright © 2018 Pearson Education, Ltd.
68) A major automobile maker has two models of sedans. The first model has been shown to get an
average of 27 mpg on the highway with a standard deviation equal to 5 mpg. The second model gets 33
mpg on average with a standard deviation of 8 mpg. Based on this information the first car model is
relatively more variable than the second car model.
Answer: FALSE
Diff: 2
Keywords: mean, standard deviation, coefficient of variation, relative variation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
69) The distribution of bankcard balances for customers is highly right-skewed with a mean of $1,100 and
a standard deviation equal to $250. Based on this information, approximately 68 percent of the customers
will have bank balances between $850 and $1,350.
Answer: FALSE
Diff: 2
Keywords: skewed, mean, standard deviation, Tchebysheff
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
70) The distribution of dollars paid for car insurance by car owners in a major east coast city is bell-
shaped with a mean equal to $750 every six months and a standard deviation equal to $100. Based on this
information we should use Tchebysheff's theorem to determine the conservative percentage of car owners
that will pay between $550 and $950 for car insurance.
Answer: FALSE
Diff: 2
Keywords: mean, standard deviation, Tchebysheff
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
3-16
Copyright © 2018 Pearson Education, Ltd.
72) If a business manager selected a sample of customers and computed the mean income for this sample
of customers, she has computed:
A) a statistic.
B) an ordinal value.
C) a nominal value.
D) a parameter.
Answer: A
Diff: 1
Keywords: sample, statistic
Section: 3-1 Measures of Center and Location
Outcome: 1
3-17
Copyright © 2018 Pearson Education, Ltd.
75) Consider the following sample data:
25 11 6 4 2 17 9 6
25 11 6 4 2 17 9 6
77) A small company has 7 employees. The numbers of years these employees have worked for this
company are shown as follows:
4 14 3 16 9 8 16
Based upon this information, the mean number of years that employees have been with this company is:
A) 16
B)
C) 8.40
D) 10
Answer: D
Diff: 1
Keywords: population, mean
Section: 3-1 Measures of Center and Location
Outcome: 1
3-18
Copyright © 2018 Pearson Education, Ltd.
78) A small company has 7 employees. The numbers of years these employees have worked for this
company are shown as follows:
4 14 3 16 9 8 16
Based upon this information, the median number of years that employees have been with this company
is:
A) 9 years.
B) 16 years.
C) 10 years.
D) 14 years.
Answer: A
Diff: 2
Keywords: population, median
Section: 3-1 Measures of Center and Location
Outcome: 1
79) A small company has 7 employees. The numbers of years these employees have worked for this
company are shown as follows:
4 14 3 16 9 8 16
Based upon this information, the mode number of years that employees have been with this company is:
A) 16
B) 2
C) 9
D) 10
Answer: A
Diff: 1
Keywords: population, mode
Section: 3-1 Measures of Center and Location
Outcome: 1
80) A sample of people who have attended a college football game at your university has a mean = 3.2
members in their family. The mode number of family members is 2 and the median number is 2.0. Based
on this information:
A) the population mean exceeds 3.2.
B) the distribution is bell-shaped.
C) the distribution is right-skewed.
D) the distribution is left-skewed.
Answer: C
Diff: 2
Keywords: skewed, mean, median
Section: 3-1 Measures of Center and Location
Outcome: 1
3-19
Copyright © 2018 Pearson Education, Ltd.
81) A major retail store has studied customer behavior and found that the distribution of time customers
spend in a store per visit is symmetric with a mean equal to 17.3 minutes. Based on this information,
which of the following is true?
A) The distribution is right-skewed.
B) The median is to the right of the mean.
C) The median is approximately 17.3 minutes.
D) The median is to the left of the mean.
Answer: C
Diff: 1
Keywords: symmetric, mean, median
Section: 3-1 Measures of Center and Location
Outcome: 1
82) A large retail company gives an employment screening test to all prospective employees. Franklin
Gilman recently took the test and it was reported back to him that his score placed him at the 80th
percentile. Therefore:
A) 80 people who took the test scored below Franklin.
B) Franklin scored as high or higher than 80 percent of the people who took the test.
C) Franklin was in the bottom 20 percent of those that have taken the test.
D) Franklin's score has a z-score of 80.
Answer: B
Diff: 2
Keywords: percentile
Section: 3-1 Measures of Center and Location
Outcome: 1
83) A large retail company gives an employment screening test to all prospective employees. If a
prospective employee receives a report saying that she scored at the 40th percentile:
A) she scored above the median.
B) she scored better than 40 percent of people who took the test.
C) she scored in the top 40 percent of people who took the test.
D) her z-score was a 40.
Answer: B
Diff: 2
Keywords: percentile, median
Section: 3-1 Measures of Center and Location
Outcome: 1
3-20
Copyright © 2018 Pearson Education, Ltd.
84) If a data set has 740 values that have been sorted from low to high, which value in the data set will be
the 20th percentile?
A) The average of the 148th and 149th values
B) The 20th value
C) The 148th value
D) None of the above
Answer: A
Diff: 2
Keywords: percentile, location
Section: 3-1 Measures of Center and Location
Outcome: 1
85) If a data set has 1,133 sorted values, what value corresponds to the 3rd quartile?
A) The 250th value
B) The 850th value
C) The 760th value
D) The 849th value
Answer: B
Diff: 2
Keywords: percentile, quartile, value
Section: 3-1 Measures of Center and Location
Outcome: 1
86) At a sawmill in Oregon, a process improvement team measured the diameters for a sample of 1,500
logs. The following summary statistics were computed:
Given this information, the boundaries on the box in a box and whisker plot are:
A) 8.9 in and 15.6 in.
B) 13.5 in ± 1.5 (Q3-Q1).
C) 14.2 in ± 1.5 (Q3-Q1).
D) 8.9 in and 14.2 in.
Answer: A
Diff: 2
Keywords: box, whisker, plot, boundary
Section: 3-1 Measures of Center and Location
Outcome: 2
3-21
Copyright © 2018 Pearson Education, Ltd.
87) At a sawmill in Oregon, a process improvement team measured the diameters for a sample of 1,500
logs. The following summary statistics were computed:
Given this information, in a box and whisker plot, which of these four values will NOT appear?
A) 8.9 in.
B) 13.5 in.
C) 15.6 in.
D) 14.2 in.
Answer: D
Diff: 2
Keywords: box, whisker, plot
Section: 3-1 Measures of Center and Location
Outcome: 2
88) At a sawmill in Oregon, a process improvement team measured the diameters for a sample of 1,500
logs. The following summary statistics were computed:
89) At a sawmill in Oregon, a process improvement team measured the diameters for a sample of 1,500
logs. The following summary statistics were computed:
Given this information, for a box and whisker plot which of the following statements is appropriate?
A) Seventy-five percent of the trees in the sample have values between 8.9 in. and 15.6 in.
B) Virtually all of the data should fall between 0 in. and 25.65 in.
C) No tree will have a diameter of more than 22.3 in.
D) Fifty percent of the trees will have diameters between 13.5 in. and 15.6 in.
Answer: B
Diff: 3
Keywords: box, whisker, outlier
Section: 3-1 Measures of Center and Location
Outcome: 2
3-22
Copyright © 2018 Pearson Education, Ltd.
90) If a distribution for a quantitative variable is thought to be nearly symmetric with very little variation,
and a box and whisker plot is created for this distribution, which of the following is true?
A) The box will be quite wide but the whisker will be very short.
B) The left and right-hand edges of the box will be approximately equal distance from the median.
C) The whiskers should be about half as long as the box is wide.
D) The upper whisker will be much longer than the lower whisker.
Answer: B
Diff: 2
Keywords: box, whisker, symmetric, median
Section: 3-1 Measures of Center and Location
Outcome: 2
92) For ordinal data, ________ is the preferred measure of central location.
A) the mean
B) the median
C) the percentile
D) the quartile
Answer: B
Diff: 3
Keywords: mean, median, percentile, quartile
Section: 3-1 Measures of Center and Location
Outcome: 1
93) Which of the following is the most frequently used measure of variation?
A) The range
B) The standard deviation
C) The variance
D) The mode
Answer: B
Diff: 1
Keywords: variation, standard deviation
Section: 3-2 Measures of Variation
Outcome: 3
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Copyright © 2018 Pearson Education, Ltd.
94) Which of the following measures is not affected by extreme values in the data?
A) The mean
B) The median
C) The range
D) The standard deviation
Answer: B
Diff: 2
Keywords: extreme, insensitive, median
Section: 3-2 Measures of Variation
Outcome: 3
95) The following data reflect the number of customers who test drove new cars each day for a sample of
20 days at the Redfield Ford Dealership.
5 7 2 9 4
9 7 10 4 7
5 6 4 0 7
6 3 4 14 6
96) The following data reflect the number of customers who test drove new cars each day for a sample of
20 days at the Redfield Ford Dealership.
5 7 2 9 4
9 7 10 4 7
5 6 4 0 7
6 3 4 14 6
5 7 2 9 4
9 7 10 4 7
5 6 4 0 7
6 3 4 14 6
98) The advantage of using the interquartile range versus the range as a measure of variation is:
A) it is easier to compute.
B) it utilizes all the data in its computation.
C) it gives a value that is closer to the true variation.
D) it is less affected by extremes in the data.
Answer: D
Diff: 1
Keywords: range, variation, interquartile range
Section: 3-2 Measures of Variation
Outcome: 3
99) The following data reflect the number of customers who return merchandise for a refund on Monday.
Note these data reflect the population of all 10 Mondays for which data are available.
40 12 17 25 9
46 13 22 16 7
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Copyright © 2018 Pearson Education, Ltd.
100) The following data reflect the number of customers who return merchandise for a refund on
Monday. Note these data reflect the population of all 10 Mondays for which data are available.
40 12 17 25 9
46 13 22 16 7
Assume that this same exact pattern of data were replicated for the next ten days. How would this affect
the standard deviation for the new population with 20 items?
A) The standard deviation would be doubled.
B) The standard deviation would be cut in half.
C) The standard deviation would not be changed.
D) There is no way of knowing the exact impact without knowing how the mean is changed.
Answer: C
Diff: 3
Keywords: standard deviation, population
Section: 3-2 Measures of Variation
Outcome: 3
101) In order to compute the mean and standard deviation, the level of data measurement should be:
A) ratio or interval.
B) qualitative.
C) nominal.
D) ordinal.
Answer: A
Diff: 1
Keywords: mean, standard deviation, ratio, interval
Section: 3-2 Measures of Variation
Outcome: 3
102) Consider the following data, which represent the number of miles that employees commute from
home to work each day. There are two samples: one for males and one for females.
Males:
13 5 2 23 14 5
Females:
15 6 3 2 4 6
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103) Consider the following data, which represent the number of miles that employees commute from
home to work each day. There are two samples: one for males and one for females.
Males:
13 5 2 23 14 5
Females:
15 6 3 2 4 6
104) Consider the following data, which represent the number of miles that employees commute from
home to work each day. There are two samples: one for males and one for females.
Males:
13 5 2 23 14 5
Females:
15 6 3 2 4 6
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Copyright © 2018 Pearson Education, Ltd.
105) If the age distribution of customers at a major retail chain is thought to be bell-shaped with a mean
equal to 43 years and a standard deviation equal to 7 years, the percentage of customers between the ages
of 29 and 57 years is:
A) approximately 81.5.
B) approximately 68.
C) at least 75.
D) approximately 95.
Answer: D
Diff: 1
Keywords: empirical rule, distribution
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
106) Under what circumstances is it necessary to use the coefficient of variation to compare relative
variability between two or more distributions?
A) When the means of the distributions are equal
B) When the means of the distributions are not equal
C) When the standard deviations of the distributions are not equal
D) When the standard deviations of the distributions are equal
Answer: B
Diff: 2
Keywords: coefficient of variation, mean, standard deviation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
107) In the annual report, a major food chain stated that the distribution of daily sales at its Detroit stores
is known to be bell-shaped, and that 95 percent of all daily sales fell between $19,200 and $36,400. Based
on this information, what were the mean sales?
A) Around $20,000
B) Close to $30,000
C) Approximately $27,800
D) Can't be determined without more information.
Answer: C
Diff: 2
Keywords: empirical rule, mean, standard deviation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
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Copyright © 2018 Pearson Education, Ltd.
108) The number of days that homes stay on the market before they sell in Seattle is bell-shaped with a
mean equal to 8 days. Further, 95 percent of all homes are on the market between 2 and 14 days. Based on
this information, what is the standard deviation for the number of days that houses stay on the market in
Seattle?
A) 12
B) 3
C) 9
D) 3
Answer: D
Diff: 2
Keywords: empirical rule, mean, standard deviation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
109) Incomes in a particular market area are known to be right-skewed with a mean equal to $33,100. In a
report issued recently, a manager stated that at least 89 percent of all incomes are in the range of $26,700
to $39,500, and this was based on Tchebysheff's theorem. Given these facts, what is the standard
deviation for the incomes in this market area?
A) Approximately $6,400
B) Approximately $3,200
C) Approximately $2,133
D) Approximately $4266
Answer: C
Diff: 3
Keywords: standard deviation, mean, Tchebysheff
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
110) A distribution has a coefficient of variation of 65 percent and mean of 74. What is the value of the
standard deviation?
A) 0.65
B) 4810
C) 113.8
D) 48.1
Answer: D
Diff: 2
Keywords: mean, standard deviation, coefficient of variation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
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Copyright © 2018 Pearson Education, Ltd.
111) The asking price for homes on the real estate market in Baltimore has a mean value of $286,455 and a
standard deviation of $11,200. Four homes are listed by one real estate company with the following
prices:
Home 1: $456,900
Home 2: $306,000
Home 3: $266,910
Home 4: $201,456
Based upon this information, which house has a standardized value that is relatively closest to zero?
A) Home 1
B) Home 2
C) Home 3
D) Home 2 and home 3
Answer: D
Diff: 2
Keywords: mean standard deviation, standardized value, z score
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
112) The asking price for homes on the real estate market in Baltimore has a mean value of $286,455 and a
standard deviation of $11,200. The mean and standard deviation in asking price for homes in Denver are
$188,468 and $8,230, respectively. Recently, one home sold in each city where the asking price for each
home was $193,000. Based on these data, which of the following conclusions can be made?
A) The two homes have approximately the same standardized values.
B) The distribution of asking prices in the two cities is bell-shaped.
C) The house in Baltimore is relatively farther from the mean than the house in Denver.
D) The asking prices of homes in Denver is less variable than those in Baltimore.
Answer: C
Diff: 2
Keywords: mean, standard deviation, standardized value, z score
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
113) The asking price for homes on the real estate market in Baltimore has a mean value of $286,455 and a
standard deviation of $11,200. The mean and standard deviation in asking price for homes in Denver are
$188,468 and $8,230, respectively. Recently, one home sold in each city where the asking price for each
home was $193,000. Assuming that both distributions are bell-shaped, which of the following statements
is true?
A) The Baltimore home has the higher standard z-value.
B) The coefficient of variation for Denver is less than for Baltimore.
C) The Denver home has a higher standard z-value.
D) Both cities have the same coefficient of variation.
Answer: C
Diff: 2
Keywords: mean, standard deviation, standardized value, z score
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
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Copyright © 2018 Pearson Education, Ltd.
114) A report on spending by adults on recreation stated the following: At least 75 percent of the people
in the survey spend between $750 and $1,250 per year. The report also said that at least 88 percent spend
between $625 and $1,375 per year. Given this information, which of the following is most apt to be true?
A) The standard deviation is approximately $125.
B) The distribution of spending on recreation can be assumed to be bell-shaped.
C) The standard deviation is approximately $187.5.
D) The standard deviation is approximately $250.
Answer: A
Diff: 3
Keywords: standard deviation, Tchebysheff
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
115) The distribution of the actual weight of potato chips in a 16 ounce sack is thought to be bell-shaped
with a mean equal to 16 ounces and a standard deviation equal to 0.45 ounces. Based on this, between
what two limits could we expect 95 percent of all sacks to weigh?
A) 14 to 18 ounces
B) 15.10 to 16.90 ounces
C) 15.55 to 16.45 ounces
D) 14.65 to 17.35 ounces
Answer: B
Diff: 2
Keywords: standard deviation, empirical rule
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
116) A recent study in the restaurant business determined that the mean tips for male waiters per hour of
work are $6.78 with a standard deviation of $2.11. The mean tips per hour for female waiters are $7.86
with a standard deviation of $2.20. Based on this information, which of the following statements do we
know to be true?
A) The distribution of tips for both males and females is right-skewed.
B) The variation in tips received by females is more variable than males.
C) The median tips for females exceeds that of males.
D) On a relative basis, males have more variation in tips per hour than do females.
Answer: D
Diff: 2
Keywords: mean, standard deviation, coefficient of variation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
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117) Data was collected on the number of television sets in a household, and it was found that the mean
was 3.5 and the standard deviation was 0.75.
Based on these sample data, what is the standardized value corresponding to 5 televisions?
A) -2.00
B) 1.5
C) 2.00
D) 1.125
Answer: C
Diff: 2
Keywords: mean, standard deviation, sample, z score, standardized value
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
118) Portfolio A of a collection of stocks is considered more risky than portfolio B if:
A) portfolio A has a higher mean than portfolio B.
B) portfolio A has a higher variance than portfolio B.
C) portfolio A has a higher standard deviation.
D) portfolio A has a higher coefficient of variation than portfolio B.
Answer: D
Diff: 3
Keywords: mean, standard deviation, coefficient of variation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
119) When comparing data measured by substantially different scales, we must use:
A) standardized data values.
B) standardized data scales.
C) standardized data variations.
D) standardized data scores.
Answer: A
Diff: 2
Keywords: z-score, standardized value
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
120) The Empirical Rule states that for a bell-shaped distribution, approximately 95 percent of data
should lie within:
A) one standard deviation from either side of the mean.
B) two standard deviations from either side of the mean.
C) three standard deviations from either side of the mean.
D) four standard deviations from either side of the mean.
Answer: B
Diff: 2
Keywords: mean, standard deviation, bell-shaped, empirical rule
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
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Copyright © 2018 Pearson Education, Ltd.
121) A professor wishes to develop a numerical method for giving grades. He intends to base the grade
on homework, two midterms, a project, and a final examination. He wishes the final exam to have the
largest influence on the grade. He wants the project to have 10%, each midterm to have 20%, and the
homework to have 10% of the influence of the semester grade.
Determine the weights the professor should use to produce a weighted average for grading purposes.
A)
Instrument Final Project Midterm 1 Midterm 2 Homework
Weight 40 10 20 20 10
B)
Instrument Final Project Midterm 1 Midterm 2 Homework
Weight 50 10 20 20 10
C)
Instrument Final Project Midterm 1 Midterm 2 Homework
Weight 40 15 15 15 15
D)
Instrument Final Project Midterm 1 Midterm 2 Homework
Weight 30 10 20 20 10
Answer: A
Diff: 3
Keywords: measure of variation
Section: 3-2 Measures of Variation
Outcome: 1
122) A professor wishes to develop a numerical method for giving grades. He intends to base the grade
on homework, two midterms, a project, and a final examination. He wishes the final exam to have the
largest influence on the grade. He wants the project to have 10%, each midterm to have 20%, and the
homework to have 10% of the influence of the semester grade.
For a student with the following grades during the quarter, calculate a weighted average for the course:
A) 68.50
B) 73.30
C) 68.30
D) 70.30
Answer: D
Diff: 1
Keywords: measure of center and location
Section: 3-1 Measures of Center and Location
Outcome: 1
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123) Todd Lindsey & Associates, a commercial real estate company located in Boston, owns six office
buildings in the Boston area that it leases to businesses. The lease price per square foot differs by building
due to location and building amenities. Currently, all six buildings are fully leased at the prices shown
here.
Price per Number of
Square Foot Square Feet
Building 1 $ 75 125,000
Building 2 $ 85 37,500
Building 3 $ 90 77,500
Building 4 $ 45 35,000
Building 5 $ 55 60,000
Building 6 $110 130,000
Compute the weighted average (mean) price per square foot for these buildings.
A) 86.25
B) 83.25
C) 80.15
D) 86.15
Answer: B
Diff: 1
Keywords: measure of center and location
Section: 3-1 Measures of Center and Location
Outcome: 1
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124) Each year, Business Week publishes information and rankings of master of business administration
(MBA) programs. The data file MBA Analysis contains data on several variables for eight reputable MBA
programs as presented in the October 2, 2000, issue of Business Week. The variables include pre- and post-
MBA salary, percentage salary increase, undergraduate GPA, average Graduate Management Admission
Test (GMAT) score, annual tuition, and expected annual student cost. Compute the mean and median for
each of the variables in the database.
A)
Mean Median
Pre-MBA Salary 39077 43337.63
Post-MBA Salary 82203 98902
Percentage Increase in Salary 116 123
Undergraduate GPA 3.46 3.40
GMAT Score 635.00 631.13
Annual Tuition 13163.50 15967.50
Expected Annual Student Cost 23169.5 27980.75
B)
Mean Median
Pre-MBA Salary 46667.63 39077
Post-MBA Salary 98902 84403
Percentage Increase in Salary 113 116
Undergraduate GPA 3.40 3.56
GMAT Score 661.16 635.00
Annual Tuition 15967.50 19163.70
Expected Annual Student Cost 28980.75 23179.5
C)
Mean Median
Pre-MBA Salary 43337.63 39077
Post-MBA Salary 98902 82203
Percentage Increase in Salary 123 116
Undergraduate GPA 3.40 3.46
GMAT Score 631.13 635.00
Annual Tuition 15967.50 13163.50
Expected Annual Student Cost 27980.75 23169.5
D)
Mean Median
Pre-MBA Salary 39077 46667.63
Post-MBA Salary 84403 98902
Percentage Increase in Salary 116 113
Undergraduate GPA 3.56 3.40
GMAT Score 635.00 661.16
Annual Tuition 19163.70 15967.50
Expected Annual Student Cost 23179.5 28980.75
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Copyright © 2018 Pearson Education, Ltd.
Answer: C
Diff: 2
Keywords: measure of center and location
Section: 3-1 Measures of Center and Location
Outcome: 1
125) Dynamic random-access memory (DRAM) memory chips are made from silicon wafers in
manufacturing facilities through a very complex process called wafer fabs. The wafers are routed through
the fab machines in an order that is referred to as a recipe. The wafers may go through the same machine
several times as the chip is created. The data file DRAM Chips contains a sample of processing times,
measured in fractions of hours, at a particular machine center for one chip recipe.
126) Dynamic random-access memory (DRAM) memory chips are made from silicon wafers in
manufacturing facilities through a very complex process called wafer fabs. The wafers are routed through
the fab machines in an order that is referred to as a recipe. The wafers may go through the same machine
several times as the chip is created. The data file DRAM Chips contains a sample of processing times,
measured in fractions of hours, at a particular machine center for one chip recipe.
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Copyright © 2018 Pearson Education, Ltd.
127) Dynamic random-access memory (DRAM) memory chips are made from silicon wafers in
manufacturing facilities through a very complex process called wafer fabs. The wafers are routed through
the fab machines in an order that is referred to as a recipe. The wafers may go through the same machine
several times as the chip is created. The data file DRAM Chips contains a sample of processing times,
measured in fractions of hours, at a particular machine center for one chip recipe.
128) Dynamic random-access memory (DRAM) memory chips are made from silicon wafers in
manufacturing facilities through a very complex process called wafer fabs. The wafers are routed through
the fab machines in an order that is referred to as a recipe. The wafers may go through the same machine
several times as the chip is created. The data file DRAM Chips contains a sample of processing times,
measured in fractions of hours, at a particular machine center for one chip recipe.
129) Suppose that the distribution of grocery purchases is thought to be symmetric. If the mean purchase
is $23.14, what would the median purchase be?
Answer: For a symmetric distribution, the mean and median are equal. Therefore, the median purchase
should also be $23.14.
Diff: 1
Keywords: mean, median, symmetric, distribution
Section: 3-1 Measures of Center and Location
Outcome: 1
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130) The AMI Company has two assembly lines in its Kansas City plant. Line A produces an average of
335 units per day with a standard deviation equal to 11 units. Line B produces an average of 145 units per
day with a standard deviation equal to 8 units. Based on this information, which line is relatively more
consistent?
Answer: At first glance it may appear that Line B is more consistent since it has a smaller standard
deviation. However, if we wish to compare relative variability when the means of two distributions are
different, then we need to compute the coefficient of variation for each. The one with the smallest
coefficient of variation is the more consistent. The coefficient of variation is given by:
CV = 100
Thus, Line A is the more consistent of the two lines with respect to daily production output.
Diff: 2
Keywords: mean standard deviation, relative variation, coefficient of variation
Section: 3-1 Measures of Center and Location
Outcome: 1
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Copyright © 2018 Pearson Education, Ltd.
131) The following sample data reflect electricity bills for ten households in San Diego in March.
Determine three measures of central tendency for these sample data. Then, based on these measures,
determine whether the sample data are symmetric or skewed.
Answer: The three measures of central tendency are the mean, median, and mode. These are computed
as follows:
Mean: = = = $108.60
Median: Arrange the data in order from low to high. Since we have an even number of values, the
median is the mean of the 5th and 6th values.
$67.88 $76.90 $88.42 $89.34 $110.34 $118.20 $127.89 $129.10 $133.40 $144.56
Mode: The mode is the value in the data that occurs most frequently. Since no value in this sample occurs
more frequently than one time, there is no mode.
Data are symmetric if the mean and the median are equal. Since the sample mean = $108.60 and the
median equals $114.27 the data are not symmetric. Since the mean is less than median, we conclude that
the sample data are left-skewed.
Diff: 2
Keywords: central tendency, mean, median, mode
Section: 3-1 Measures of Center and Location
Outcome: 1
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Copyright © 2018 Pearson Education, Ltd.
132) The following sample data reflect electricity bills for ten households in San Diego in March.
Compute the range, variance, and standard deviation for these sample data. Discuss which of these three
measures you would prefer to use as a measure of variation.
Answer: The range is found as follows:
Range = High - Low = $144.56 - $67.88 = $76.68
S2 =
= = = 108.60
We then sum the deviations of the individual values from the sample mean giving:
S2 = = = 692.99
The sample deviation is found by taking the square root of the sample variance:
S= = = $26.32
Although the range is far easier to compute, it contains information only from the extremes in the data.
The variance is in squared units and therefore does not have any meaning in the context of money spent
on electricity. The standard deviation is preferred since it uses all the data in its calculation and is
expressed in the original units.
Diff: 2
Keywords: mean, standard deviation, range, variance
Section: 3-2 Measures of Variation
Outcome: 3
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133) Why is it that when we find the sample standard deviation, we divide by n-1 but when we find the
population standard deviation we divide by n?
Answer: The technical answer to this question is beyond the scope of the text. However, we can think of
it this way. If our objective in computing the sample standard deviation is to estimate the population
standard deviation, we would want an estimate that would be correct on the average. That means that if
we took repeated random samples from the population and for each sample we computed the standard
deviation, we would want the average of the sample standard deviations to equal the population
standard deviation. If our formula for the sample standard deviation uses n-1, this occurs.
Diff: 3
Keywords: sample, population, standard deviation
Section: 3-2 Measures of Variation
Outcome: 3
134) Explain when the empirical rule can be used to help describe data in a population or a sample,
defining which data distributions cannot be explained by this rule.
Answer: The empirical rule applies when the data distribution is bell-shaped. When this is the case, we
know that approximately 68 percent of the data will fall with ± 1 standard deviation of the mean,
approximately 95 percent will fall within ± 2 standard deviations of the mean, and virtually all of the data
will fall within ± 3 standard deviations of the mean. However, if a data distribution is right or left
skewed, it cannot be analyzed using these methods. Other methods have to be researched to analyze the
placement of data.
Diff: 2
Keywords: empirical rule, bell-shaped, standard deviation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
135) Explain how Tchebysheff's theorem can be used to help describe data in a population or a sample.
Answer: If the data in a sample or a population are known to be bell-shaped, the empirical rule can be
used to help us describe the data. However, when the sample or the population is not bell-shaped,
Tchebysheff's theorem is very useful. It is a conservative theorem because it applies to any distribution. If
we know the mean and standard deviation, Tchebysheff tells us that at least 75 percent of the data values
will fall with ± 2 standard deviations of the mean and at least 88 percent will lie within 3 standard
deviations of the mean. Keep in mind that in most instances, the percentage of observations will exceed
these minimum amounts, but at least it gives us some idea of how the data are distributed without
actually looking at all the data.
Diff: 2
Keywords: Tchebysheff, data, population, sample
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
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136) Explain what is meant by percentiles and quartiles.
Answer: Percentiles and quartiles are measures that help us understand how the data are distributed.
Percentiles divide the data into 100 parts so that the same number of observations fall in each percentile.
In order to construct the percentiles, the data must be arranged in order from low to high. The percentile
value is determined by determining the location of the data value that corresponds to the percent of the
way through the ordered data that we wish to go. For example, if we want to find the 80th percentile, we
locate the value using:
i= n where P = 80 and n equal the number of values in the data set. If we have 1400 data values, then
Quartiles are similar to percentages except that the ordered data are divided into four segments with an
equal number of values in each. The 1st quartile corresponds to the 25th percentile, the 2nd quartile
corresponds to the 50th percentile, and the 3rd quartile corresponds to the 75th percentile.
Diff: 2
Keywords: percentile, quartile
Section: 3-2 Measures of Variation
Outcome: 3
137) Consumer products are required by law to contain at least as much as the amount printed on the
package. For example a bag of potato chips that is labeled as 10 ounces should contain at least 10 ounces.
Assume that the standard deviation of the packaging equipment yields a bag weight standard deviation
of 0.2 ounces. Explain what average bag weight must be used to achieve at least 97.5 percent of the bags
having 10 or more ounces in the bag. Assume the bag weight distribution is bell-shaped.
Answer: If the average bag weight were 10 ounces this would mean only 50 percent of the bags would
weigh enough and the other 50 percent would be underweight, so the average must be set higher to
achieve 97.5 percent having at least 10 ounces. We want to allow only 2.5 percent of the bags be
underweight. Based on the empirical rule, about 95 percent of the bags will be within 2 standard
deviations of the mean. This means that 5 percent of the bags will be farther from the mean, and since the
distribution is symmetrical that puts 2.5 percent in each tail. Therefore the mean needs to be 2 standard
deviations above 10 to have only 2.5 percent in the lower tail below 10 ounces.
Z = -2.0 = so, μ = 10 + 2.0(0.2) = 10.4 ounces
Diff: 3
Keywords: standardized value, empirical distribution
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 5
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Copyright © 2018 Pearson Education, Ltd.
138) What is meant by the concept, standardizing the data? Explain why a decision maker may wish to
compute a standardized value.
Answer: The concept, standardized data, refers to the number of standard deviations a value is from the
mean of the sample or population from which it was selected. The population standardized value is
referred to as the z-value and is computed as follows:
z=
The reason that we might want to use the standardized value rather than the original value is if we are
interested in comparing individual values from two or more distributions that have different means and
standard deviations. By comparing z-values, we are able to determine which original value falls relatively
more closely to its mean or which value is relatively more extreme compared to the other data in the
sample or population.
Diff: 2
Keywords: standardized value, z-score, mean, standard deviation
Section: 3-3 Using the Mean and Standard Deviation Together
Outcome: 4
3-43
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