Chapter 4

Describing Data: Displaying and Exploring Data

True/False

1. A dot plot and a scatter diagram are different names for the same graph.
Answer: False Difficulty: Easy Goal: 1

2. A dot plot is an easy way to represent the relationship between two variables.
Answer: False Difficulty: Easy Goal: 1

3. A dot plot is useful for quickly graphing frequencies in a small data set.
Answer: True Difficulty: Easy Goal: 1

4. A stem and leaf diagram shows the actual data values.

Answer: True Difficulty: Easy Goal: 2

5. There is some loss of information when raw data is tallied into a stem-and-leaf display.
Answer: False Difficulty: Easy Goal: 2

6. For a stem-and-leaf display, the leaf for the value 98 is 9.

Answer: False Difficulty: Easy Goal: 2

7. The stem in a stem-and-leaf display is the leading digit.

Answer: True Difficulty: Easy Goal: 2

8. In a stem-and-leaf display, the leaf represents a class of a frequency distribution.

Answer: False Difficulty: Easy Goal: 2

9. In a stem-and-leaf display, the leaf represents a member of a class in a frequency distribution.

Answer: True Difficulty: Easy Goal: 2

10. In a stem-and-leaf display, for each class, the leaves are arranged or sorted from smallest to largest.
Answer: True Difficulty: Easy Goal: 2

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 53

11. In a stem-and-leaf display, it is easy to find the range for a data set.
Answer: True Difficulty: Easy Goal: 2

12. Quartiles divide a distribution into four equal parts.

Answer: True Difficulty: Easy Goal: 3

13. A percentile divides a distribution into one hundred equal parts.

Answer: True Difficulty: Medium Goal: 3 AACSB: AS

14. A student scored in the 85th percentile on a standardized test. This means that the student scored
lower than 85% of all students who took the test.
Answer: False Difficulty: Easy Goal: 3

15. Quartiles are another way to describe the central location of a distribution.
Answer: False Difficulty: Easy Goal: 3

16. Quartiles are another way to describe the dispersion of a distribution.

Answer: True Difficulty: Easy Goal: 3

17. The 50th percentile of a distribution is the same as the distribution mean.
Answer: False Difficulty: Easy Goal: 3

18. A percentile can be a decile, but a decile can not be a quartile.

Answer: True Difficulty: Easy Goal: 3

19. A quartile can be a decile, but a decile can not be a percentile.

Answer: False Difficulty: Easy Goal: 3

20. For a distribution, the 2nd quartile, the 5th decile, and the 50th percentile, are the same as the median.
Answer: True Difficulty: Easy Goal: 3

21. The interquartile range is the difference between the values of the first and third quartile, indicating
the range of the middle fifty percent of the observations.
Answer: True Difficulty: Medium Goal: 4

22. A box plot graphically shows data that are in percentiles.

54 Test Bank, Chapter 4

Answer: False Difficulty: Easy Goal: 4

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23. The "box" in a box plot shows the interquartile range.
Answer: True Difficulty: Easy Goal: 4

24. An outlier is a data point that occurs in the first quartile.

Answer: False Difficulty: Easy Goal: 4

25. An outlier is a value in a data set that is inconsistent with the rest of the data.
Answer: True Difficulty: Easy Goal: 4

26. A box plot shows the relative symmetry of a distribution.

Answer: True Difficulty: Medium Goal: 4

27. A box plot shows a distribution's mean and mode.

Answer: False Difficulty: Easy Goal: 4

28. A box plot shows the range of values that correspond to the upper 25% of the distribution.
Answer: True Difficulty: Medium Goal: 4

29. In a box plot, if a value is more than 1.5 times the standard deviation from the first or third quartile,
the value is an outlier.
Answer: False Difficulty: Easy Goal: 4

30. In a box plot, if a value is more than 1.5 times the interquartile range from the first or third quartile,
the value is an outlier.
Answer: True Difficulty: Easy Goal: 4

31. The coefficient of variation is a measure of relative dispersion that expresses the standard deviation
as a percent of the mean.
Answer: True Difficulty: Medium Goal: 5

32. The Pearson's coefficient of skewness is a measure of distribution's symmetry.

Answer: True Difficulty: Medium Goal: 5

33. The coefficient of variation is useful for comparing distributions with different units.
Answer: True Difficulty: Easy Goal: 5

56 Test Bank, Chapter 4

34. The coefficient of variation is computed by dividing the standard deviation by the median and
multiplying the quotient by 100.
Answer: False Difficulty: Medium Goal: 5

35. Negatively skewed indicates that a distribution is not symmetrical. The long tail is to the left or in the
negative direction.
Answer: True Difficulty: Easy Goal: 5

36. In a negatively skewed distribution, the mean is smaller than the median or mode and the mode
occurs at the peak of the curve.
Answer: True Difficulty: Medium Goal: 5

37. If Pearson's coefficient of skewness is equal to 0, then the mean and median are equal.
Answer: True Difficulty: Easy Goal: 5

38. If Pearson's coefficient of skewness is negative, then the mean is greater than the median.
Answer: False Difficulty: Medium Goal: 5

39. If Pearson's coefficient of skewness is negative, then the distribution is skewed to the left.
Answer: True Difficulty: Medium Goal: 5

40. If Pearson's coefficient of skewness is negative, then the distribution is skewed to the right.
Answer: False Difficulty: Medium Goal: 5

41. A scatter diagram of sales versus production may be constructed by plotting the data on a graph
labeled with sales on the Y-axis and production on the X-axis.
Answer: True Difficulty: Easy Goal: 6

42. A relationship between gender and preference for Coke or Pepsi can be best represented by a scatter
diagram.
Answer: False Difficulty: Easy Goal: 6

43. A relationship between gender and preference for Coke or Pepsi can be best represented by a
contingency table.
Answer: True Difficulty: Easy Goal: 7

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Multiple Choice

44. A dot plot shows

A) The general shape of a distribution
B) The mean, median, and mode
C) The relationship between two variables
D) The interquartile range.
Answer: A Difficulty: Easy Goal: 1

45. A row of a stem-and-leaf chart appears as follows: 3 | 0 1 3 5 7 9. Assume that the data is rounded to
the nearest unit.
A) The frequency of the class is seven.
B) The minimum value in the class is 0.
C) The maximum value in the class is 39.
D) The class interval is 5.
Answer: C Difficulty: Easy Goal: 2

46. The test scores for a class of 147 students are computed. What is the location of the test score
associated with the third quartile?
A) 111
B) 37
C) 74
D) 75%
Answer: A Difficulty: Easy Goal: 3 AACSB: AS

47. What statistics are needed to draw a box plot?

A) Minimum, maximum, median, first and third quartiles
B) Median, mean and standard deviation
C) A median and an interquartile range
D) A mean and a standard deviation.
Answer: A Difficulty: Medium Goal: 4 AACSB: AS

48. A box plot shows

A) The mean and variance
B) The relative symmetry of a distribution for a set of data
C) The percentiles of a distribution
D) The deciles of a distribution
Answer: B Difficulty: Easy Goal: 4

58 Test Bank, Chapter 4

49. What does the interquartile range describe?
A) The lower 50% of the observations
B) The middle 50% of the observations
C) The upper 50% of the observations
D) The lower 25% and the upper 25% of the observations
E) None of the above
Answer: B Difficulty: Medium Goal: 4

50. The coefficient of variation for a set of annual incomes is 18%; the coefficient of variation for the
length of service with the company is 29%. What does this indicate?
A) More dispersion in the distribution of the incomes compared with the dispersion of their length of
service
B) More dispersion in the lengths of service compared with incomes
C) Dispersion in the two distributions (income and service) cannot be compared using percents
D) Dispersions are equal
Answer: B Difficulty: Medium Goal: 5 AACSB: REF

51. Mr. and Mrs. Jones live in a neighborhood where the mean family income is $45,000 with a standard
deviation of $9,000. Mr. and Mrs. Smith live in a neighborhood where the mean is $100,000 and the
standard deviation is $30,000. What is the relative dispersion of the family incomes in the two
neighborhoods?
A) Jones 40%, Smith 20%
B) Jones 20%, Smith 30%
C) Jones 30%, Smith 20%
D) Jones 50%, Smith 33%
E) None of the above
Answer: B Difficulty: Medium Goal: 5

52. A large oil company is studying the number of gallons of gasoline purchased per customer at self-
service pumps. The mean number of gallons is 10.0 with a standard deviation of 3.0 gallons. The median
is 10.75 gallons. What is the Pearson's coefficient of skewness?
A) -1.00
B) -0.75
C) +0.75
D) +1.00
Answer: B Difficulty: Medium Goal: 5

53. What is the value of the Pearson coefficient of skewness for a distribution with a mean of 17, median
of 12 and standard deviation of 6?
A) +2.5
B) -2.5
C) +0.83
D) -0.83
Answer: A Difficulty: Medium Goal: 5

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54. A study of business faculty at state supported institutions in Ohio revealed that the arithmetic mean
salary for nine months is $52,000 and a standard deviation of $3,000. The study also showed that the
faculty had been employed an average (arithmetic mean) of 15 years with a standard deviation of 4 years.
How does the relative dispersion in the distribution of salaries compare with that of the lengths of
service?
A) Salaries about 100%, service about 50%
B) Salaries about 6%, service about 27%
C) Salaries about 42%, service about 81%
D) Salaries about 2%, service about 6%
Answer: B Difficulty: Medium Goal: 5

55. What is the possible range of values for the coefficient of variation?
A) -1 and +1
B) -3 and +3
C) 0% and 100%
D) Unlimited values
Answer: C Difficulty: Medium Goal: 5

56. A research analyst wants to compare the dispersion in the price-to-earnings ratios for a group of
common stocks with their return on investment (ROI). For the price-to-earnings ratios, the mean is 10.9
and the standard deviation is 1.8. The mean return on investment is 25 percent and the standard deviation
5.2 percent. What is the relative dispersion for the price-to-earnings ratios and return on investment?
A) Price-to-earnings = 32.0 percent, ROI =19.0 percent
B) Price-to-earnings =16.5 percent, ROI = 20.8 percent
C) Price-to-earnings =132.0 percent, ROI =190.0 percent
D) Price-to-earnings = 50.0 percent, ROI =10.0 percent
Answer: B Difficulty: Medium Goal: 5 AACSB: AS

57. A study of the scores on an in-plant course in management principles and the years of service of the
employees enrolled in the course resulted in these statistics:

- Mean test score was 200 with a standard deviation of 40

- Mean number of years of service was 20 years with a standard deviation of 2 years.

In comparing the relative dispersion of the two distributions, what are the coefficients of variation?
A) Test 50%, service 60%
B) Test 100%, service 400%
C) Test 20%, service 10%
D) Test 35%, service 45%
Answer: C Difficulty: Medium Goal: 5

60 Test Bank, Chapter 4

58. A large group of inductees was given a mechanical aptitude and a finger dexterity test. The
arithmetic mean score on the mechanical aptitude test was 200, with a standard deviation of 10. The
mean and standard deviation for the finger dexterity test were 30 and 6 respectively. What is the relative
dispersion in the two groups?
A) Mechanical aptitude 5 percent, finger dexterity 20 percent
B) Mechanical aptitude 20 percent, finger dexterity 10 percent
C) Mechanical aptitude 500 percent, finger dexterity 200 percent
D) Mechanical aptitude 50 percent, finger dexterity 200 percent
Answer: A Difficulty: Medium Goal: 5

59. A sample of experienced typists revealed that their mean typing speed is 87 words per minute and the
median is 73. The standard deviation is 16.9 words per minute. What is the Pearson's coefficient of
skewness?
A) -2.5
B) -4.2
C) +4.2
D) +2.5
Answer: D Difficulty: Medium Goal: 5

60. A study of the net sales of a sample of small corporations revealed that the mean net sales is $2.1
million, the median $2.4 million, the modal sales $2.6 million and the standard deviation of the
distribution is $500,000. What is the Pearson's coefficient of skewness?
A) -9.1
B) +6.3
C) -3.9
D) +2.4
E) None of the above
Answer: E Difficulty: Medium Goal: 5

61. In a scatter diagram, we describe the relationship between

A) two variables measured at the ordinal level
B) two variables, one measured as an ordinal variable and the other as a ratio variable
C) two variables measured at the interval or ratio level
D) a variable measure on the interval or ratio level and time.
Answer: C Difficulty: Easy Goal: 6 AACSB: AS

62. In a contingency table, we describe the relationship between

A) two variables measured at the ordinal or nominal level.
B) two variables, one measured as an ordinal variable and the other as a ratio variable
C) two variables measured at the interval or ratio level
D) a variable measure on the interval or ratio level and time.
Answer: A Difficulty: Easy Goal: 7

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Fill-in-the-Blank

63. What chart or graph is useful for illustrating frequencies? _______________________.

Answer: dot plot Difficulty: Medium Goal: 1

64. For a stem-and-leaf display, what is the stem for the value 67? ____.
Answer: 6 Difficulty: Easy Goal: 2

Essay

65. Construct a stem-and-leaf display for the following data:

2 9 32 3 7 34 3 8 22
3 3 57 2 1 65 3 5 52
4 6 35 5 4 26 5 5 59
2 2 30 3 8 39 3 1 20
6 9 19 5 8 42 5 0 51
Answer:
1| 9
2| 0 1 2 2 6 9
3| 0 1 2 3 4 5 5 7 8 8 9
4| 2 6
5| 0 1 2 4 5 7 8 9
6| 5 9 Difficulty: Medium Goal: 2

66. From the following stem-and-leaf display, find the minimum value, the 1 st quartile, the median, the
3rd quartile, and the maximum value. List and interpret the interquartile range.

1| 9
2| 0 1 2 2 6 9
3| 0 1 2 3 4 5 5 7 8 8 9
4| 2 6
5| 0 1 2 4 5 7 8 9
6| 5 9
Answer:
Minimum=19
1st quartile = 29.75
median = 37.5
3rd quartile = 52.5
Maximum = 69.
Interquartile range is 52.5-29.75 = 22.75. It means that 50% or 15 of the 30 observations are between
52.5 and 29.75 Difficulty: Medium Goal: 4

62 Test Bank, Chapter 4

Fill-in-the-Blank

67. For a stem-and-leaf display, what is the leaf for the value 123? ____.
Answer: 3 Difficulty: Easy Goal: 2

68. If you are constructing a stem-and-leaf display, the "3" in 19.3 would be the ____________.
Answer: leaf Difficulty: Medium Goal: 2

69. If you are constructing a stem-and-leaf display, the "20" in 20.5 would be the _____________.
Answer: stem Difficulty: Medium Goal: 2

70. What is the best way to display the relationship between two variables measured on an interval or
ratio level?
Answer: scatter diagram Difficulty: Medium Goal: 6

71. What is the main advantage of a stem-and-leaf chart over a histogram? ___________________
Answer: The identity of each observation is not lost Difficulty: Easy Goal: 2

72. The percentile range is the distance between any two _______________.
Answer: percentiles Difficulty: Medium Goal: 3

73. In a symmetric distribution, where is the 99th percentile located? _______________

Answer: In the far right tail Difficulty: Medium Goal: 3

74. In a positively skewed distribution, where is the 99th percentile located? _______________
Answer: In the far right tail Difficulty: Medium Goal: 3

75. In a negatively skewed distribution, where is the 1st percentile located? _______________
Answer: In the far left tail Difficulty: Medium Goal: 3

76. If the mean of a distribution is smaller than the median and mode, what is the sign of Pearson's
coefficient of skewness? _______________
Answer: negative Difficulty: Medium Goal: 5

77. A frequency distribution may be divided into how many percentiles? ___
Answer: 99 Difficulty: Medium Goal: 3

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64 Test Bank, Chapter 4
78. For a set of data, how many quartiles are there? _____
Answer: three Difficulty: Medium Goal: 3

79. If two sets of data are measured in different units, what statistic can be used to compare their
dispersions? ___________________________________
Answer: coefficient of variation Difficulty: Medium Goal: 5

80. What unit of measurement is used to express the coefficient of variation? _________
Answer: percent Difficulty: Medium Goal: 5

81. The coefficient of variation is a measure of _______________.

Answer: relative dispersion Difficulty: Medium Goal: 5

82. The research director of a large oil company conducted a study of the buying habits of consumers
with respect to the amount of gasoline purchased at full-service pumps. The arithmetic mean amount is
11.5 gallons and the median amount is 11.95 gallons. The standard deviation of the sample is 4.5 gallons.
What is the Pearson's coefficient of skewness? ________
Answer: -0.30 Difficulty: Hard Goal: 5

83. Rainbow Trout, Inc. feeds fingerling trout in special ponds and markets them when they attain a
certain weight. A group of 9 trout (considered the population) were isolated in a pond and fed a special
food mixture called Grow Em Fast. At the end of the experimental period, the weights of the trout were
(in grams): 124, 125, 123, 120, 124, 127, 125, 126 and 121. Another special mixture, Fatso 1B, was used
in another pond. The mean of the population was computed to be 126.9 grams and the standard deviation
was 1.20 grams. Which food results in a more uniform weight? ____________
Answer: Fatso 1B Difficulty: Hard Goal: 5

84. The annual incomes of the five vice presidents of Elly's Industries are: $41,000, $38,000, $32,000,
$33,000 and $50,000. The annual incomes of Unique, another firm similar to Elly's Industries, were also
studied and found to have a mean of $38,900 and a standard deviation of $6,612. What company has the
greater coefficient of variation? ______________
Answer: Elly, (19.0) > Unique (17.0) Difficulty: Hard Goal: 5

85. The spread in the annual prices of stocks selling under $10 and those selling over $60 are to be
compared. The mean price of the stocks selling under $10 is $5.25 and the standard deviation is $1.52.
The mean price of those stocks selling over $60 is $92.50 and the standard deviation is $5.28. Why
should the coefficient of variation be used to compare the dispersion in the prices?
______________________
Answer: means differ vastly Difficulty: Medium Goal: 5

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86. The lengths of stay on the cancer floor of Community Hospital were organized into a frequency
distribution. The mean length was 28 days, the median 25 days and the modal length 23 days. The
standard deviation was computed to be 4.2 days. What is the Pearson's coefficient of skewness?
__________
Answer: 2.14 Difficulty: Medium Goal: 5

87. A sample of the homes currently offered for sale revealed that the mean asking price is $75,900, the
median $70,100 and the modal price is $67,200. The standard deviation of the distribution is $5,900.
What is the Pearson's coefficient of skewness? __________
Answer: 2.95 Difficulty: Medium Goal: 5

88. The Pearson's coefficient of skewness (Sk) measures the amount of skewness and may range from
-3.0 to +3.0. It is computed by subtracting the median from the mean, multiplying the result by 3 and
dividing by? ________________
Answer: standard deviation Difficulty: Hard Goal: 5

Essay

89. Given the sample information in the following table regarding public opinion on gun control, who is
more likely to favor gun control?

O p in io n o n G u n C o n tro l
P a rty A ffilia tio n Favor O p p o se N o o p in io n T o ta l
D em o crat 90 98 46 234
R e p u b lic a n 90 54 10 154
T o ta l 180 152 56 388

Answer: Republicans are more likely to favor gun control with 58% favoring gun control. Only 38%
of democrats favor gun control. Difficulty: Medium Goal: 7

Fill-in-the-Blank

Use the following to answer questions 90-94:

A telemarketing firm is monitoring the performance of its employees based on the number of sales per
hour. One employee had the following sales for the last 20 hours

9 5 2 6 5 6 4 4 4 7
4 4 7 8 4 4 5 5 4 8

90. What is the median for the distribution of number of sales per hour? ____________
Answer: Median = 5 sales per hour Difficulty: Medium Goal: 4

66 Test Bank, Chapter 4

91. What is the first quartile for the distribution of number of sales per hour? ________________
Answer: Q1 = 4 sales per hour Difficulty: Medium Goal: 4

92. What is the third quartile for the distribution of number of sales per hour? _____________
Answer: Q3 = 6.5 sales per hour Difficulty: Medium Goal: 4

93. For the distribution of number of sales per hour, 50% are greater than ____________
Answer: The median or 5 sales per hour Difficulty: Medium Goal: 4

94. For the distribution of number of sales per hour, 50% of the observations are between __________
and ____________.
Answer: Q1 (4) and Q3 (6.5) Difficulty: Medium Goal: 4

Use the following to answer questions 95-101:

The following stem and leaf display reports the number of boat shipments per week by Ottertail Boats,
Inc.

11| 1 5 9
12| 0 1 2 2 6 9
13| 0 1 2 3 4 5 5 7 8 8 9
14| 2 6 8
15| 0 1 2 4 5 7 8 9
16| 1 5 7 9

95. How many weeks were included in the study?____________

Answer: 35 weeks Difficulty: Easy
Goal 2

96. How many observations are in the third class?__________

Answer: 11 weeks Difficulty: Easy Goal 2

97. What are the smallest and largest values?___________

Answer: 111 and 169 orders Difficulty: Easy Goal 2

98. List the actual values in the fourth class._______________

Answer: 142, 146, and 148 orders Difficulty: Easy Goal 2

99. How often did the company complete 111 shipments? ____________
Answer: 1 or once Difficulty: Easy Goal 2

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100. How often did the company complete more than 140 shipments? __________
Answer: 15 times Difficulty: Easy Goal 2

101. What is the median value? _______________

Answer: 138 shipments, Difficulty: Easy Goal 2

Essay

102. What is the common purpose of a scatter diagram and a contingency table?
Answer: Both are used to summarize two variables: Difficulty: Medium Goal: 6, 7

103. What is the difference between a scatter diagram and a contingency table?
Answer: A scatter diagram requires interval or ratio scaled variables, a contingency table requires nominal
or ordinal variables. Difficulty: Medium Goal: 6,7

104. Draw a negatively or positively skewed distribution and show the relative locations of the mean,
median, and mode.
Answer: See Text: Difficulty: Medium Goal: 4

68 Test Bank, Chapter 4