Chapter 3 LearnSmart

The median for the data set: 10,6,4,9,5 is ______________

6

Suppose the values in a data set are 2, 5, 5, 7, and 10. The range is:

8

Calculate the mean absolute deviation of the three numbers 8,7, and 12

2 The mean is 27/3=9. So the absolute deviations are |8-9|=1, |7-9|=2, |12-9|=3, whose average is then 2

The Sharpe ratios for four investments are listed below. Assuming that all other characteristics of these investments are the same, a rational investments are the same, a rational investor would select the investment with a Sharpe ratio of: A. 0.59 B. 0.51 C. 0.42 D. 0.28

A. 0.59

Randall Racer runs 100 meter dash in an average time of 10.4 seconds with a standard deviation of 0.1 seconds. If Randall's times are approximately bell-shaped, what proportion of his times will fall between 10.3 seconds and 10.5 seconds? A. 0.68 B. 0.32 C. 0.95 D. 0.16

A. 0.68

When a box plot is constructed, an outlier is a data point that is farther than ____. A. 1.5XIQR from Q1 or Q3 B. 1.5XIQR from Q2 C. 2XIQR from Q2 D. 3XIQR from Q1 or Q3

A. 1.5XIQR from Q1 or Q3

If a company sells 1000 units in its first year of operation, 1400 units in its second year of operation, and 2100 units in its third year of operation, then the average growth rate of the company's sales over two years is _________. A. 44.9% B. 41.1% C. 40.0% D. 45.0% E. 50.0%

A. 44.9%

What is the most widely-used measure of central location? A. Mean B. Variance C. Range D. Mode

A. Mean

Which of the following statements about variance is MOST accurate? A. Variance is the average of the squared deviations from the mean B. Variance is the square root of the standard deviation C. Variance is denominated in the same units as the original data D. Variance can be a positive number or a negative number

A. Variance is the average of the squared deviations from the mean

When calculating a percentile, the first step is to arrange the data set in A. ascending order (from least to greatest). B. groups of ten units. C. classes of equal width. D. descending order (from greatest to least).

A. ascending order (from least to greatest).

Chebyshev's theorem provides the proportion of observations that lie within k standard deviations of the mean. The value "k" must be: A. greater than 1 B. less than 0 C. less than 1 D. greater than 0

A. greater than 1

The average of the absolute difference between the values of the data set and the mean is A. mean absolute deviation B. standard deviation C. arithmetic mean D. range

A. mean absolute deviation

The notion O^2 represents the A. population variance B. population standard deviation C. sample standard deviation D. sample variance

A. population variance

The Sharpe ratio determines the additional ____________ an investor will receive for each additional until of risk taken. A. reward B. variance C. range D. correlation

A. reward

Assume that the rate of return of a Treasury bill is 3%. If the mean return on an investment fund is 10% with a standard deviation of 14%, then the Sharpe ratio for the investment fund is ___________. A. -0.5 B. 0.5 C. -2.0 D. 2.0

B. 0.5

John's score on the exam places him in the 85th percentile in the class. What percentage of students scored higher than John? A. 85% B. 15% C. 25% D. 75%

B. 15%

In which of the following data sets would the arithmetic mean NOT be a good measure of central location? A. 6,7,7,8,8 B. 7,8,8,9,25 C. 2,3,4,4,5 D. 5,5,6,6,7

B. 7,8,8,9,25

If Fund A has a coefficient of variation of 1.1, and Fund B has a coefficient of variation of 0.9 Fund ____ has the greater relative dispersion. A. B B. A

B. A

Consider the following data set: 4,5,6,9. Find the mode(s) A. 5.5 B. There is no mode C. 4,5,6 and 9 D. 6

B. There is no mode

When calculating average growth rates, we apply the formula for the: A. sample variance B. geometric mean C. mode D. correlation coefficient

B. geometric mean

For a qualitative data set, the most meaningful measure of central location is the __________. A. mean B. mode C. median D. variance

B. mode

The square root of the average of the sum of the squared deviations from the mean is known as the: A. variance B. standard deviation C. mean absolute value D. arithmetic mean

B. standard deviation

All of the following are measures of central location EXCEPT the ____________. A. median B. variance C. mode D. median

B. variance

When a mean is calculated and some observations are given greater importance or value, we refer to this measure of central location as a: A. mode B. weighted means C. population standard deviation D. sample variance

B. weighted means

Nadia purchased 200 shares of XYZ stock at $20 per share. When the stock decreased in value to $15 a share, Nadia purchased 300 more shares of XYZ stock. The weighted average price per share that Nadia paid for XYZ stock is A. $16.50 B. $18.00 C. $17.00 D. $17.50

C. $17.00

Quartiles divide the data set into sections of: A. 10 percentiles B. 20 percentiles C. 25 percentiles D. 33.3 percentiles

C. 25 percentiles

Which of the following values is included in a box plot? A. The mode B. The 90th percentile C. The second quartile D. The mean

C. The second quartile

Is it possible for a data set to have NO mode? A. Yes, if two observations occur twice B. No, if the data set is nonempty, there is always a mode C. Yes, if there are no observations that occur more than once D. No, unless there is an odd number of observations

C. Yes, if there are no observations that occur more than once

The measure of central location where half the values of the data set lie above the measure and half the values of the data set lie below this measure is known as_______________ A. mean B. mode C. median D. outlier

C. median

The notion "x bar" represents the: A. sample variance B. population mean C. sample mean D. population variance

C. sample mean

Two widely used measures of dispersion are: A. the mean and the median B. the mode and the range C. the variance and the standard deviation

C. the variance and the standard deviation

Place in order, from beginning to end, the steps to calculate the mean absolute deviation. A. Find the absolute difference between each value and the mean. B. Sum the absolute differences C. Divide the sample (or the population) size D. Calculate the arithmetic mean for the data set

D. Calculate the arithmetic mean for the data set A. Find the absolute difference between each value and the mean. B. Sum the absolute differences C. Divide the sample (or the population) size

In order to calculate the arithmetic mean, one A. selects the most frequently occurring data point B. adds all the data points, except the outliers, then divides the number of data points C. multiplies all the data points, then divides by the number of data points D. adds all the data points, then divides by the number of data points

D. adds all the data points, then divides by the number of data points

The ____________ is the multiplicative average of a data set. A. arithmetic mean B. median C. sample standard deviation D. geometric mean

D. geometric mean

In general, the best measure of central location for a data set that contains outliers is the __________. A. range B. mean C. mode D. median

D. median

When summarizing a qualitative data set, the ___ is the best measure of central location A. variance B. median C. standard deviation D. mode

D. mode

In a box plot, if the median is right of center and the left whisker is longer than the right whisker, then the distribution is: A. asymptotic B. positively skewed C. symmetric D. negatively skewed

D. negatively skewed

A researcher wants to compare the variability of two data sets that have different units of measurement. Which of the following measures is MOST useful as a relative measure of dispersion? A. the range B. the standard deviation C. the variance D. the coefficient of variation

D. the coefficient of variation

The median is defined as: A. the geometric average of a data set B. the most frequently occurring value of a data set C. the arithmetic average of a data set D. the middle value of a data set

D. the middle value of a data set

When a mean is calculated and some observations are given greater importance or value, we refer to this measure of central location as a: A. mode B. sample variance C. population standard deviation D. weighted mean

D. weighted mean

True or false: The empirical rule should be applied to data sets that are approximately normally distributed.

True

True or false: The geometric mean is the appropriate measure to analyze multi-year investments.

True

Generally, the __________ is the best measure of central location when outliers are present.

median