Business Analytics MCQ1

A weighted moving average having the early periods more heavily weighted (a) is more responsive to recent demand changes (b) is less responsive to recent demand.. (c) places emphasis on the past demand data. (d) is always the most effective weighting scheme. (e) is not a time-series model.

(b) is less responsive to recent demand..

Enrollment in a particular class for the last four semesters had been 120, 126, 110, and 135. The best forecast of enrollment next semester, based on a 3-semester moving average, would be (a) 126. (b) 135. (c) 120. (d) 124. (e) 125.

(d) 124.

Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15. Forecast sales for the next day using a 3-day weighted moving average where the weights are 3, 1, and 1 (the highest weight is for the most recent number). (a) 12.8 (b) 13.0 (c) 70.0 (d) 14.0 (e) none of the above

(d) 14.0

Valentine's Day is the best day of the year for selling roses at River Road Florist. Dozens of roses sold on Valentine's Day over six years are as follows: Year Dozen 1996 104 1997 109 1998 101 1999 114 2000 104 2001 100 What is the forecast for 2001 if we are using 4 year moving average? A. 107 B. 104.75 C. 103 D. None of the above

A. 107

An automobile rental company wants to predict the yearly maintenance expense (Y) for an automobile using the number of miles driven during the year ( ) and the age of the car ( , in years) at the beginning of the year. The company has gathered the data on 10 automobiles and run a regression analysis with the results shown below:. Summary measures Multiple R 0.9689 R-Square 0.9387 Adj R-Square 0.9212 StErr of Estimate 72.218 This model explains: A) 96.89 percent variation in the maintenance costs B) 93.87 percent variation in the maintenance costs C) 92.12 percent variation in the maintenance costs D) None of the above

B) 93.87 percent variation in the maintenance costs

Some measures of variability include: A. Mean, Median, Standard Deviation B. Range, Standard Deviation C. Range, Median D. Mean, Standard Deviation

B. Range, Standard Deviation

R2 tells us A. how to determine someone's score. B. how to describe a relationship. C. the proportion of variability in Y accounted for by X. D. all of the above

C. the proportion of variability in Y accounted for by X.

f a value represents the 95th percentile, this means that: a. 95% of all values are below this value b. 95% of all values are above this value c. 95% of the time you will observe this value d. there is a 5% chance that this value is incorrect e. there is a 95% chance that this value is correct

a. 95% of all values are below this value

The normal curve is also called a a. bell-shaped curve b. Asymmetric curve c. S-curve d. parabola

a. bell-shaped curve

The following data show the number of hours worked by 200 statistics students. Number of Hours Frequency 0 - 9 40 10 - 19 50 20 - 29 70 30 - 39 40 The relative frequency of students working 9 hours or less a. is .2 b. is .45 c. is 40 d. can not be determined from the information given e. None of the above answers is correct.

a. is .2

The median can also be described as the: a. middle observation when the data values are arranged in ascending order and observations are odd b. best estimate of the population mean based on multiple samples c. second percentile d. the average of all values

a. middle observation when the data values are arranged in ascending order and observations are odd

u is an example of a a. population parameter b. sample statistic c. population variance d. mode e. None of the above answers is correct. ANSWER: A

a. population parameter

A histogram that is positively skewed is also called: a. skewed to the right b. skewed to the left c. balanced d. symmetric

a. skewed to the right

How is the median defined if the number of observations is even? a. the average of the two middle observations b. the difference between the two middle observations c. the most frequent observation d. the difference between the highest and smallest observation

a. the average of the two middle observations

A variable is classified as ordinal if: a. there is a natural ordering of categories b. there is no natural ordering of categories c. the data arise from continuous measurements d. we track the variable through a period of time

a. there is a natural ordering of categories

If a distribution has a mean of 35 and a standard deviation of 5, what value would be +1.5 standard deviations from the mean? a. 40 b. 42.5 c. 27.5 d. 30

b. 42.5

If a distribution has a mean of 60 and a standard deviation of 10, what value would be -1 standard deviations from the mean? a. 45 b. 50 c. 55 d. 60

b. 50

What is the most common type of chart for showing the distribution of a numerical variable? a. time series graph b. histogram c. bin d. box plot

b. histogram

If a normal distribution of scores has a mean of 100 and a standard deviation of 10, what percentage of scores would lie below 120? a. 0 b. more than 0.5 c. less than 0.5 d. 1

b. more than 0.5

If a distribution has a mean of 100 and a standard deviation of 10, what value would be +2 standard deviations from the mean? a. 70 b. 115 c. 120 d. 85

c. 120

If a distribution has a mean of 35 and a standard deviation of 5, what value would be -2.5 standard deviations from the mean? a. 35 b. 20 c. 22.5 d. 47.5

c. 22.5

What two scores would divide a normal distribution such that 68.26% of the general population falls within them if the mean is 100 and the standard deviation is 15? a. 90 to 110 b. 80 to 120 c. 85 to 115 d. 75 to 125

c. 85 to 115

An indication of no linear relationship between a dependent variable and an independent variable would be: a. R-squared equal to 1 b. R-squared equal to - 1 c. R-squared equal to 0 d. None of the other answers

c. R-squared equal to 0

The following data show the number of hours worked by 200 statistics students. Number of Hours Frequency 0 - 9 40 10 - 19 50 20 - 29 70 30 - 39 40 The cumulative relative frequency for the class of 10 - 19 a. is 90 b. is .25 c. is .45 d. can not be determined from the information given e. None of the above answers is correct.

c. is .45

The following data show the number of hours worked by 200 statistics students. Number of Hours Frequency 0 - 9 40 10 - 19 50 20 - 29 70 30 - 39 40 The number of students working 19 hours or less a. is 40 b. is 50 c. is 90 d. can not be determined without the original data e. None of the above answers is correct.

c. is 90

The limitation of covariance as a descriptive measure of association is that it a. only captures positive relationships b. does not capture the units of the variables c. is very sensitive to the units of the variables d. is invalid if one of the variables is categorical e. none of these options

c. is very sensitive to the units of the variables

If a normal distribution of scores has a mean of 100 and a standard deviation of 10, what percentage of scores would lie below 70? a. 0 b. more than 0.5 c. less than 0.5 d. 1

c. less than 0.5

The Dow Jones Industrial Average is found to be normally distributed with a mean of 18000 and a standard deviation of 200. The DJIA is currently trading at 18200. What is the probability that it will trade higher? a. 0 b. more than 0.5 c. less than 0.5 d. 1

c. less than 0.5

Correlation is useful only for: a. assessing the weakness of a linear relationship b. conveying the same information in a simpler format than a scatterplot c. measuring the strength of a linear relationship d. automatically calculating covariances e. measuring the strength of a nonlinear relationship

c. measuring the strength of a linear relationship

Gender and states of residence are examples of ____ data. a. discrete b. continuous c. nominal d. ordinal

c. nominal

The difference between the largest and the smallest data values is the a. variance b. interquartile range c. range d. coefficient of variation e. None of the above answers is correct.

c. range

A numerical value used as a summary measure for a sample, such as sample mean, is known as a a. population parameter b. sample parameter c. sample statistic d. population mean e. None of the above answers is correct.

c. sample statistic

One characteristic of a bell-shaped curve is that it is: a. linear b. bi-modal c. symmetrical d. parabolic

c. symmetrical

The daily closing values of the Dow Jones Industrial Average over a period of 30 days are best described as _____ data. a. cross-sectional b. discrete c. time-series d. nominal

c. time-series

Which of the following is not a measure of central location? a. mean b. median c. variance d. mode e. None of the above answers is correct.

c. variance

n publishing the results of some research work, the following values of the R-squared were listed. Which one would appear to be incorrect? a) 0.91 b) 0.06 c) 0.47 d) -0.64 e) 0.00

d) -0.64

The sum of the percent frequencies for all classes will always equal a. one b. the number of classes c. the number of items in the study d. 100 e. None of the above answers is correct.

d. 100

If man's height is normally distributed with a mean of 5 feet 10 inches, which value is least probable? a. 5 feet 6 inches b. 5 feet 10 inches c. 6 feet 1 inch d. 4 feet 11 inches

d. 4 feet 11 inches

If the correlation of variables is close to 0, then we expect to see: a. an upward sloping cluster of points on the scatterplot b. a downward sloping cluster of points on the scatterplot c. a cluster of points around a trendline on the scatterplot d. a cluster of points with no apparent relationship on the scatterplot e. no explanation of how the scatterplot looks based on the correlation

d. a cluster of points with no apparent relationship on the scatterplot

We study relationships among numerical variables using: a. correlation b. covariance c. scatterplot charts d. all of these choices e. none of these choices

d. all of these choices

he mean of a sample is a. always equal to the mean of the population b. always smaller than the mean of the population c. computed by summing the data values and dividing the sum by (n - 1) d. computed by summing all the data values and dividing the sum by the number of items e. None of the above answers is correct.

d. computed by summing all the data values and dividing the sum by the number of items

Which of the following are equal in a normal distribution: a. range / standard deviation / variance b. mean / median / standard deviation c. mode/ median / standard deviation d. mean / median / mode

d. mean / median / mode

As a measure of variability, what is defined as the maximum value minus the minimum value? a. variance b. standard deviation c. mean d. range e. median

d. range

Correlation and covariance measure: a. the direction of a linear relationship between two numerical variables b. the strength and direction of a linear relationship between two categorical variables c. the strength of a linear relationship between two numerical variables d. the strength and direction of a linear relationship between two numerical variables

d. the strength and direction of a linear relationship between two numerical variables

Since the mode is the most frequently occurring data value, it a. can never be larger than the mean b. is always larger than the median c. is always larger than the mean d. must have a value of at least two e. None of the above answers is correct.

e. None of the above answers is correct.

When the population size is larger than the sample size, then the sample statistic a. can never be larger than the population parameter b. can never be equal to the population parameter c. can never be zero d. can never be smaller than the population parameter e. None of the above answers is correct.

e. None of the above answers is correct.