QUANTITATIVE METHODS

(ONLINE QUIZ)

1) The following describe parts of the statistical problem:

a. The procedure for making inferences about the population based on sample information.
b. The design of the experiment or the sampling procedure.
c. A clear specification of the question and the population of data related to the question.
d. The provision of a measure of goodness for the inference.
e. The collection and analysis of data.

What is the correct order in the approach to the statistical problem?

A d, b, e, a, c.

B c, b, e, d, a.

C c, b, e, a, d.

D c, b, a, e, d.

2) Consider the following set of data:

12 11 16 15 12
13 14 12 11 17
11 13 12 12 15
12 10 14 13 13

Calculate the mean.

A 12.7

B 12.5

C 12.9

D 12.0

3) Refer to the data set in question 2 and calculate the median.

A 12.7

B 12.5

C 12.9

D 12.0

4) Refer to the data set in question 2 and determine the mode.

A 12.7

B 12.5

C 12.9

D 12.0

5) Refer to the data set in question 2. Use the relative values of these three measures to determine whether or
not the data are skewed and, if so, in which direction?

A Skewed left

B Skewed right

C Normally distributed

D None of the above

6) True or False. The objective of statistics is to make inferences about certain characteristics of the population
based on information contained in a sample.

True

False

7) A manufacturer has two machines that produce a certain product. Machine 1 produces 45% of the product and
Machine 2 produces 55%. Machine 1 produces 10% defective items and Machine 2 produces 8% defective items.
If a defective item is observed, what is the probability that it was produced by Machine 2?

A 0.51

B 0.49

C 0.45

D 0.83

8) The random variable x has the following probability distribution:

x01234
p(x) 0.25 0.30 0.25 0.15 0.05

What is the expected value of x?

A E(x) = 2.45

B E(x) = 0.89

C E(x) = 1.28

D E(x) = 1.45

9) Refer to the data set in question 8 and calculate the variance of x.

A σ² = 1.3136

B σ² = 1.3475

C σ² = 1.8496

D σ² = 1.5482

10) Refer to the data set in question 8 and calculate the probability that x exceeds (μ + 2σ)?

A 0.05

B 0.00

C 0.07

D 0.90

11) Refer to the data set in question 8 and calculate the probability that x exceeds (μ + 3σ)?

A 0.25

B 0.00

C 0.75

D 0.87
12) The yield to maturity of industrial bonds depends on the firm’s bond rating and the state of the economy at
the time of issue. For the month ending July 1987 the average yield to maturity of industrial bonds issued during
the month was 9.92. Assume that the distribution of yields on industrial bonds is mound-shaped, with a standard
deviation of 1.

During this period the average yield to maturity for long-term U.S. Treasury bonds was 8.70. Approximately what
percentage of the industrial bonds exceeded the U.S. Treasury bond average during this period?

A 75%

B 50%

C Almost all (Near 100%)

D 60%

13) True or False. The words descriptive statistics and inferential statistics can be used interchangeably.

True

False

14) An investor has the option of investing in two of four recommended securities. Unknown to the investor, only
two of the securities will show a substantial profit within the next five years. Suppose the investor selects the two
securities at random from among the four that have been recommended.

Calculate the probability of event A.

A P(A) = 5/6

B P(A) = 3/6

C P(A) = 1/12

D P(A) = 2/3

15) Refer to the situation in question 14 and calculate the probability of event B.

A P(B) = 1/3

B P(B) = 1/2

C P(B) = 4/6

D P(B) = 5/6

16) Refer to the situation in question 14 and calculate the probability of event AB.

A P(AB) = 1/3

B P(AB) = 5/6

C P(AB) = 2/3

D P(AB) = 1/2

17) Refer to the situation in question 14 and calculate the probability of event A U B.

A P(A U B) = 1/2

B P(A U B) = 3/7

C P(A U B) = 1

D P(A U B) = 1/4
18) Which of the following is the best example of continuous data?

A Year of birth

B Color of hair

C National Identification Number

D Heights

19) True or False. Government census or surveys are considered secondary data.

True

False

20) Use the Binomial Probability Table to evaluate P(x ≥ 2) when n = 15 and p = 0.3.

A 0.00098456

B 0.00007373

C 0.02654684

D 0.56541532

21) The president, vice president, secretary and treasurer are to be selected form a group of 10 candidates. Use
the Permutations Rule to give the number of ways the positions may be filled.

A 1,500

B 5,040

C 2,750

D 4,890

22) True or False. Widget Producing Company has 65,380 employees. 250 staff were surveyed regarding best
practices in the workplace. The population is the 250 staff.

True

False

23) True or False. Mutual exclusivity is an important factor in sampling.

True

False

24) Use the Binomial Probability Table to evaluate the probability of P(x ≤ 2) when n = 15 and p = 0.3.

A 0.0886837

B 0.656358

C 0.000095

D 0.007651
25) An experiment was conducted with two jars containing a combination of white and red balls. One jar contains
two white and two red balls, and a second jar contains one white and four red balls. The first jar can be chosen
with a probability of 0.6 and the second with a probability of 0.4.

If a jar is chosen and one ball randomly selected from the jar, what is the probability that the ball chosen is white?

A 0.25

B 0.78

C 0.63

D 0.38

26) Refer to the experiment in question 25. If a ball selected is white, what is the probability that it was selected
from the first jar?

A 0.2347

B 0.7895

C 0.5413

D 0.6714

27) True or False. If P( A U B) = 0.6, P(A) = 0.2 and P(B) = 0.4, A and B are mutually exclusive.

True

False

28) True or False. If P( A U B) = 0.6, P(A) = 0.2 and P(B) = 0.4, A and B are independent.

True

False

29) True or False. If P(A UB) = 0.65, P(A) = 0.3, P(B) = 0.5, A and B are mutually exclusive?

True

False

30) True or False. If P(A UB) = 0.65, P(A) = 0.3, P(B) = 0.5, A and B are independent.

True

False

31) True or False. If P (A U B) = 0.70, P(A) = 0.4 and P(B) = 0.5, A and B are mutually exclusive.

True

False

32) True or False. If P (A U B) = 0.70, P(A) = 0.4 and P(B) = 0.5, A and B are independent.

True

False

33) A survey of consumers in a particular community showed that 10% were dissatisfied with appliance repair jobs
done in their homes. Fifty percent of the complaints dealt with company A and company A does 40% of the
appliance repair jobs in the town.

What is the probability that you will obtain an unsatisfactory appliance repair job, given that company A does the
job?

A 0.525

B 0.897

C 0.125

D 0.096

34) Refer to the survey of consumers in question 33. What is the probability that you will obtain a satisfactory
repair job, given that company A does the job?

A 0.875

B 0.756

C 0.473

D 0.925

35) True or False. Within the three measures of Central Tendency, the Mode is not affected by extreme values.

True

False

36) Use the Binomial Probability Table to evaluate the probability P(x = 2) when n = 15 and p = 0.3.

A 0.1687

B 0.5893

C 0.3125

D 0.2347

37) True or False. Approximately 99.7% of the data in a bell-shaped distribution lies within ±3σ of μ.

True

False

38) Use the Binomial Probability Tables to evaluate the probability of P(x < 2) when n = 15 and p = 0.3.

A 0.86456

B 0.21686

C 0.38742

D 0.52371

39) An experiment consists of randomly tossing three coins and observing the upper face on each coin. Observing
2 heads is a simple event.

True

False

40) An experiment consists of randomly tossing three coins and observing the upper face on each coin. Observing
a head on the first two coins only is a compound event.
True

False

41) An experiment consists of randomly tossing three coins and observing the upper face on each coin. Observing
an even number is a simple event.

True

False

42) An experiment consists of randomly tossing three coins and observing the upper face on each coin. Observing
a number less than 3 is a compound event.

True

False

43) Let x b e a Poisson random variable with mean μ = 2. Calculate the probability P(x > 1).

A 0.846552

B 0.126468

C 0.534562

D 0.593994

44) Let x be a hypergeometric random variable with N = 15, n = 3 and k = 4. Calculate p(1).

A p(1) = 4/455

B p(1) = 220/455

C p(1) = 66/455

D p(1) = 165/455

45) The following data have been randomly selected from a production line:

0.105 0.090 0.112 0.005 0.070 0.085 0.164 0.095 0.100 0.045

Calculate x̄.

A x̄ = 0.2327

B x̄ = 0.0871

C x̄ = 0.5793

D x̄ = 0.0074

46) Refer to the data set in question 45. Calculate s².

A s² = 0.0017668

B s² = 0.0000885

C s² = 0.0078935

D s² = 0.0000541

47) Refer to the data set in question 45. Calculate s.

A s = 0.029
B s = 0.125

C s = 0.042

D s = 0.637

48) True or False. As n gets larger, σ would tend to decrease.

True

False

49) Let x be a binomial random variable with n = 20 and p = 0.1. Calculate P(x ≤ 2) using the Binomial Probability
Tables.

A 0.671

B 0.677

C 0.676

D 0.679

50) Let x be a binomial random variable with n = 20 and p = 0.1. Use the Poisson approximation to calculate P(x ≤
2).

A 0.1355

B 0.6951

C 0.6767

D 0.8635