Applied Statistics in Business and Economics, 6e Doane

Applied Statistics in Business and Economics, 6e (Doane) Chapter 1 Overview of Statistics 1) Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data.

Answer: TRUE

Explanation: This is one of many good definitions of statistics.

Difficulty: 1 Easy

Topic: 01.01 What Is Statistics?

Learning Objective: 01-01 Define statistics and explain some of its uses.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

2) Inferential statistics refers to generalizing from a sample to a population, estimating unknown parameters, drawing conclusions, and making decisions.

Answer: TRUE

Explanation: We can use statistics either to describe data or to infer something about a population.

Difficulty: 1 Easy

Topic: 01.03 Statistics in Business

Learning Objective: 01-01 Define statistics and explain some of its uses.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

3) Descriptive statistics refers to summarizing data rather than generalizing about the population.

Answer: TRUE

Explanation: When we do not infer, we are only describing the available sample data.

Difficulty: 1 Easy

Topic: 01.03 Statistics in Business

Learning Objective: 01-01 Define statistics and explain some of its uses.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

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4) Estimating parameters and testing hypotheses are important aspects of descriptive statistics.

Answer: FALSE

Explanation: When we generalize to a population, we are using inferential statistics.

Difficulty: 2 Medium

Topic: 01.03 Statistics in Business

Learning Objective: 01-01 Define statistics and explain some of its uses.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

5) Inconsistent treatment of data by a researcher is a symptom of poor survey or research design.

Answer: FALSE

Explanation: Good survey data can still be misused or misinterpreted.

Difficulty: 2 Medium

Topic: 01.05 Critical Thinking

Learning Objective: 01-04 State the common challenges facing business professionals using statistics.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

6) Empirical data are collected through observations and/or experiments.

Answer: TRUE

Explanation: Empirical data are contrasted with a priori estimates (e.g., expecting 10 heads in 20 coin flips).

Difficulty: 2 Medium

Topic: 01.05 Critical Thinking

Learning Objective: 01-04 State the common challenges facing business professionals using statistics.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

7) Business intelligence refers to collecting, storing, accessing, and analyzing data on the company's operations in order to make better business decisions.

Answer: TRUE

Explanation: See Wikipedia for similar definitions of business intelligence.

Difficulty: 1 Easy

Topic: 01.03 Statistics in Business

Learning Objective: 01-01 Define statistics and explain some of its uses.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

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8) When a statistician omits data contrary to her findings in a study, she is justified as long as the sample supports her objective.

Answer: FALSE

Explanation: We do not omit data unless it is proven to be an error.

Difficulty: 2 Medium

Topic: 01.04 Statistical Challenges

Learning Objective: 01-04 State the common challenges facing business professionals using statistics.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

9) A strong correlation between A and B would imply that B is caused by A.

Answer: FALSE

Explanation: Temporal sequence does not prove causation.

Difficulty: 1 Easy

Topic: 01.05 Critical Thinking

Learning Objective: 01-05 List and explain common statistical pitfalls.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

10) The post hoc fallacy says that when B follows A then B is caused by A.

Answer: TRUE

Explanation: Temporal sequence does not prove causation.

Difficulty: 1 Easy

Topic: 01.05 Critical Thinking

Learning Objective: 01-05 List and explain common statistical pitfalls.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

11) A statistical test may be significant yet have no practical importance.

Answer: TRUE

Explanation: Large samples sometimes reveal tiny effects that may not matter very much.

Difficulty: 1 Easy

Topic: 01.05 Critical Thinking

Learning Objective: 01-05 List and explain common statistical pitfalls.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

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12) Valid statistical inferences cannot be made when sample sizes are small.

Answer: FALSE

Explanation: Small samples may be all that we have, and statistics does have rules for them.

Difficulty: 2 Medium

Topic: 01.04 Statistical Challenges

Learning Objective: 01-04 State the common challenges facing business professionals using statistics.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

13) Statistics is an essential part of critical thinking because it allows us to transform the empirical evidence from a sample so it will agree with our preferred conclusions.

Answer: FALSE

Explanation: Ethical analysts challenge their beliefs with data rather than forcing data to fit their beliefs.

Difficulty: 1 Easy

Topic: 01.04 Statistical Challenges

Learning Objective: 01-04 State the common challenges facing business professionals using statistics.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

14) Statistical challenges include imperfect data, practical constraints, and ethical dilemmas.

Answer: TRUE

Explanation: The list is longer, but these three are big challenges.

Difficulty: 1 Easy

Topic: 01.04 Statistical Challenges

Learning Objective: 01-05 List and explain common statistical pitfalls.

Bloom's: Understand

AACSB: Ethics

Accessibility: Keyboard Navigation

15) A business data analyst needs a Ph.D. in statistics.

Answer: FALSE

Explanation: Every business person does some statistics.

Difficulty: 1 Easy

Topic: 01.02 Why Study Statistics?

Learning Objective: 01-02 List reasons for a business student to study statistics.

Bloom's: Remember

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

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