CHAPTER 4 SECTION 1: NUMERICAL DESCRIPTIVE TECHNIQUES

MULTIPLE CHOICE 1. Which of the following statistics is a measure of central location? a. The mean b. The median c. The mode d. All of these choices are true. ANS: D PTS: 1 REF: SECTION 4.1

2. Which measure of central location is meaningful when the data are ordinal? a. The mean b. The median c. The mode d. All of these choices are meaningful for ordinal data. ANS: C PTS: 1 REF: SECTION 4.1

3. Which of the following statements about the mean is not always correct? a. The sum of the deviations from the mean is zero. b. Half of the observations are on either side of the mean. c. The mean is a measure of the central location. d. The value of the mean times the number of observations equals the sum of all observations. ANS: B PTS: 1 REF: SECTION 4.1

4. Which of the following statements is true for the following observations: 7, 5, 6, 4, 7, 8, and 12? a. The mean, median and mode are all equal. b. Only the mean and median are equal. c. Only the mean and mode are equal d. Only the median and mode are equal. ANS: A PTS: 1 REF: SECTION 4.1

5. In a histogram, the proportion of the total area which must be to the left of the median is: a. exactly 0.50. b. less than 0.50 if the distribution is negatively skewed. c. more than 0.50 if the distribution is positively skewed. d. unknown. ANS: A PTS: 1 REF: SECTION 4.1

6. Which measure of central location can be used for both interval and nominal variables? a. The mean b. The median c. The mode d. All of these choices are true. ANS: C PTS: 1 REF: SECTION 4.1

7. Which of these measures of central location is not sensitive to extreme values? a. The mean b. The median c. The mode d. All of these choices are true. ANS: B PTS: 1 REF: SECTION 4.1

8. In a positively skewed distribution: a. the median equals the mean. b. the median is less than the mean. c. the median is larger than the mean. d. the mean can be larger or smaller than the median. ANS: B PTS: 1 REF: SECTION 4.1

9. Which of the following statements about the median is not true? a. It is more affected by extreme values than the mean. b. It is a measure of central location. c. It is equal to Q2. d. It is equal to the mode in a bell shaped distribution. ANS: A PTS: 1 REF: SECTION 4.1

10. Which of the following summary measures is sensitive to extreme values? a. The median b. The interquartile range c. The mean d. The first quartile ANS: C PTS: 1 REF: SECTION 4.1

11. In a perfectly symmetric bell shaped "normal" distribution: a. the mean equals the median. b. the median equals the mode. c. the mean equals the mode. d. All of these choices are true. ANS: D PTS: 1 REF: SECTION 4.1

12. Which of the following statements is true? a. When the distribution is positively skewed, mean > median > mode. b. When the distribution is negatively skewed, mean < median < mode. c. When the distribution is symmetric and unimodal, mean = median = mode. d. When the distribution is symmetric and bimodal, mean = median = mode. ANS: C PTS: 1 REF: SECTION 4.1

13. In a histogram, the proportion of the total area which must be to the right of the mean is: a. less than 0.50 if the distribution is negatively skewed. b. exactly 0.50. c. more than 0.50 if the distribution is positively skewed. d. exactly 0.50 if the distribution is symmetric and unimodal. ANS: D PTS: 1 REF: SECTION 4.1

14. The average score for a class of 30 students was 75. The 20 male students in the class averaged 70. The 10 female students in the class averaged: a. 75. b. 85. c. 65. d. 70. ANS: B TRUE/FALSE 15. The mean is affected by extreme values but the median is not. ANS: T PTS: 1 REF: SECTION 4.1 PTS: 1 REF: SECTION 4.1

16. The mean is a measure of variability. ANS: F PTS: 1 REF: SECTION 4.1

17. In a histogram, the proportion of the total area which must be to the left of the median is more than 0.50 if the distribution is positively skewed. ANS: F PTS: 1 REF: SECTION 4.1

18. A data sample has a mean of 107, a median of 122, and a mode of 134. The distribution of the data is positively skewed. ANS: F PTS: 1 REF: SECTION 4.1

19. is a population parameter and x is a sample statistic. ANS: T PTS: 1 REF: SECTION 4.1

20. In a bell shaped distribution, there is no difference in the values of the mean, median, and mode. ANS: T PTS: 1 REF: SECTION 4.1

21. Lily has been keeping track of what she spends to eat out. The last week's expenditures for meals eaten out were $5.69, $5.95, $6.19, $10.91, $7.49, $14.53, and $7.66. The mean amount Lily spends on meals is $8.35. ANS: T PTS: 1 REF: SECTION 4.1

22. In a negatively skewed distribution, the mean is smaller than the median and the median is smaller than the mode. ANS: T PTS: 1 REF: SECTION 4.1

23. The median of a set of data is more representative than the mean when the mean is larger than most of the observations. ANS: T PTS: 1 REF: SECTION 4.1

24. The value of the mean times the number of observations equals the sum of the observations. ANS: T PTS: 1 REF: SECTION 4.1

25. In a histogram, the proportion of the total area which must be to the left of the median is less than 0.50 if the distribution is negatively skewed. ANS: F PTS: 1 REF: SECTION 4.1

26. In a histogram, the proportion of the total area which must be to the right of the mean is exactly 0.50 if the distribution is symmetric and unimodal. ANS: T PTS: 1 REF: SECTION 4.1

27. Suppose a sample of size 50 has a sample mean of 20. In this case, the sum of all observations in the sample is 1,000. ANS: T PTS: 1 REF: SECTION 4.1

28. The median of an ordered data set with 30 items would be the average of the 15th and the 16th observations. ANS: T PTS: 1 REF: SECTION 4.1

29. If the median, median and mode are all equal, the histogram must be symmetric and bell shaped. ANS: F PTS: 1 REF: SECTION 4.1

COMPLETION 30. Another word for the mean of a data set is the ____________________. ANS: average PTS: 1 REF: SECTION 4.1

31. The size of a sample is denoted by the letter ____________________, and the size of a population is denoted by the letter ____________________. ANS: n; N PTS: 1 REF: SECTION 4.1

32. The sample mean is denoted by ____________________ and the population mean is denoted by ____________________. ANS: X; x PTS: 1 REF: SECTION 4.1

33. There are three measures of central location; the mean, the ____________________ and the ____________________. ANS: median; mode mode; median PTS: 1 REF: SECTION 4.1

34. The ____________________ is calculated by finding the middle of the data set, when the data are ordered from smallest to largest. ANS: median PTS: 1 REF: SECTION 4.1

35. The ____________________ is the least desirable of all the measures of central location. ANS: mode PTS: 1 REF: SECTION 4.1

36. The ____________________ is not as sensitive to extreme values as the ____________________. ANS: median; mean median; average PTS: 1 REF: SECTION 4.1

37. The ____________________ mean is used whenever we wish to find the "average" growth rate, or rate of change, in a variable over time. ANS: geometric PTS: 1 REF: SECTION 4.1

38. The ____________________ mean of n returns (or growth rates) is the appropriate mean to calculate if you wish to estimate the mean rate of return (or growth rate) for any single period in the future. ANS: arithmetic PTS: 1 REF: SECTION 4.1

39. If a data set contains an even number of observations, the median is found by taking the ____________________ of these two numbers. ANS: average arithmetic mean PTS: 1 REF: SECTION 4.1

40. If a data set is composed of 5 different numbers, there are ____________________ modes. ANS: 0 no zero PTS: 1 REF: SECTION 4.1

SHORT ANSWER Monthly Rent Monthly rent data in dollars for a sample of 10 one-bedroom apartments in a small town in Iowa are as follows: 220, 216, 220, 205, 210, 240, 195, 235, 204, and 250. 41. {Monthly Rent Narrative} Compute the sample monthly average rent. ANS: x = $219.50 PTS: 1 REF: SECTION 4.1

42. {Monthly Rent Narrative} Compute the sample median. ANS: $218 PTS: 1 REF: SECTION 4.1

43. {Monthly Rent Narrative} What is the mode? ANS: $220 PTS: 1 Pets Survey A sample of 25 families were asked how many pets they owned. Their responses are summarized in the following table. Number of Pets Number of Families 0 3 1 10 2 5 3 4 4 2 5 1 REF: SECTION 4.1

44. {Pets Survey Narrative} Determine the mean, the median, and the mode of the number of pets owned per family. ANS: x = [(0 3) + (1 10) + (2 5) + (3 4) + (4 2) + (5 1)]/25 = 1.80 pets, median = 1 pet, mode = 1 pet. PTS: 1 REF: SECTION 4.1

45. {Pets Survey Narrative} Explain what the mean, median, and mode tell you about this particular data set. ANS: The "average" number of pets owned was 1.80 pets. (This represents the overall average, rather than the number of pets for the average family.) Half the families own at most one pet, and the other half own at least one pet. The most frequent number of pets owned was one pet. PTS: 1 REF: SECTION 4.1

46. How do the mean, median and mode compare to each other when the distribution is: a. b. c. symmetric? negatively skewed? positively skewed?

ANS: a. b. c. mean = median = mode mean < median < mode mean > median > mode REF: SECTION 4.1

PTS: 1

47. A basketball player has the following points for seven games: 20, 25, 32, 18, 19, 22, and 30. Compute the following measures of central location: a. b. c. mean median mode

ANS: a. b. c.

x = 23.714 median = 22.0 There is no mode

REF: SECTION 4.1

PTS: 1 Children

The following data represent the number of children in a sample of 10 families from Chicago: 4, 2, 1, 1, 5, 3, 0, 1, 0, and 2. 48. {Children Narrative} Compute the mean number of children. ANS: x = 1.90 PTS: 1 REF: SECTION 4.1

49. {Children Narrative} Compute the median number of children. ANS: Median = 1.5 PTS: 1 REF: SECTION 4.1

50. {Children Narrative} Is the distribution of the number of children symmetric or skewed? Why? ANS: The distribution is positively skewed because the mean is larger than the median. PTS: 1 Weights of Workers The following data represent the weights in pounds of a sample of 25 workers: 164, 148, 137, 157, 173, 156, 177, 172, 169, 165, 145, 168, 163, 162, 174, 152, 156, 168, 154, 151, 174, 146, 134, 140, and 171. 51. {Weights of Workers Narrative} Construct a stem and leaf display for the weights. ANS: Stem 13 14 15 16 17 PTS: 1 Leaf 47 0568 124667 2345889 123447 REF: SECTION 4.1 REF: SECTION 4.1

52. {Weights of Workers Narrative} Find the median weight. ANS: Median = 162 pounds PTS: 1 REF: SECTION 4.1

53. {Weights of Workers Narrative} Find the mean weight. ANS: x = 159.04 pounds PTS: 1 REF: SECTION 4.1

54. {Weights of Workers Narrative} Is the distribution of the weights of workers symmetric or skewed? Why? ANS: The distribution is negatively skewed because the mean is smaller than the median, and the stem and leaf display also shows this negative skewness. PTS: 1 REF: SECTION 4.1

55. The number of hours a college student spent studying during the final exam week was recorded as follows: 7,6, 4, 9, 8, 5, and 10. Compute x for the data and the value in an appropriate unit. ANS: x = 7 hours PTS: 1 Ages of Employees The following data represent the ages in years of a sample of 25 employees from a government department: 31, 43, 56, 23, 49, 42, 33, 61, 44, 28, 48, 38, 44, 35, 40, 64, 52, 42, 47, 39, 53, 27, 36, 35, and 20. 56. {Ages of Employees Narrative} Construct a stem and leaf display for the ages. ANS: Stem 2 3 4 5 6 PTS: 1 Leaf 0378 1355689 022344789 236 14 REF: SECTION 4.1 REF: SECTION 4.1

57. {Ages of Employees Narrative} Find the median age. ANS: Median = 42 years PTS: 1 REF: SECTION 4.1

58. {Ages of Employees Narrative} Compute the sample mean age. ANS: x = 41.2 years PTS: 1 REF: SECTION 4.1

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59. {Ages of Employees Narrative} Find the modal age. ANS: Modes are 35, 42, and 44 PTS: 1 REF: SECTION 4.1

60. {Ages of Employees Narrative} Compare the mean and median ages for these employees and use them to discuss the shape of the distribution. ANS: The mean and median are 41.2 years, 42 years, respectively. They are very close to each other, which tells us the distribution of ages is approximately symmetric. PTS: 1 REF: SECTION 4.1

Salaries of Employees The following data represent the yearly salaries (in thousands of dollars) of a sample of 13 employees of a firm: 26.5, 23.5, 29.7, 24.8, 21.1, 24.3, 20.4, 22.7, 27.2, 23.7, 24.1, 24.8, and 28.2. 61. {Salaries of Employees Narrative} Compute the mean salary. ANS: x = 24.692 thousand dollars PTS: 1 REF: SECTION 4.1

62. {Salaries of Employees Narrative} Compute the median salary. ANS: median = 24.3 thousand dollars PTS: 1 REF: SECTION 4.1

63. {Salaries of Employees Narrative} Compare the mean salary with the median salary and use them to describe the shape of the distribution. ANS: The mean is $24,692 thousand dollars, and the median is $24,300 thousand dollars. The mean is slightly higher than the median. This tells us that the data are slightly positively skewed, but close to symmetric. PTS: 1 REF: SECTION 4.1

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64. A sample of 12 construction workers has a mean age of 25 years. Suppose that the sample is enlarged to 14 construction workers, by including two additional workers having common age of 25 each. Find the mean of the sample of 14 workers. ANS: x = 25 years PTS: 1 REF: SECTION 4.1

65. The mean of a sample of 15 measurements is 35.6 feet. Suppose that the sample is enlarged to 16 measurements, by including one additional measurement having a value of 42 feet. Find the mean of the sample of the 16 measurements. ANS: x = 36 feet. PTS: 1 REF: SECTION 4.1

66. An investment you made in the years 2000-2003 has the following rates of return shown below: Year Rate of Return 2000 .50 2001 .30 2002 .10 2003 .15

Compute the geometric mean. ANS: R g = 4 (1 + R 1 )(1 + R 2 )(1 + R 3 )(1 + R 4 ) 1

= 4 (1 +.50)(1 +.30)(1 .10)(1 .15) 1 = 0.1052

PTS: 1 2-Year Investment Suppose you make a 2-year investment of $5,000 and it grows by 100% to $10,000 during the first year. During the second year, however, the investment suffers a 50% loss, from $10,000 back to $5,000. 67. {2-Year Investment Narrative} Calculate the arithmetic mean. ANS: R = (R 1 + R 2 ) / 2 = [100 + (50)] / 2 = 25% PTS: 1 REF: SECTION 4.1 REF: SECTION 4.1

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68. {2-Year Investment Narrative} Calculate the geometric mean. ANS:

Rg =

(1 + R 1 )(1 + R 2 ) 1 =

(1 + 1)(1 .5) 1 = 0

PTS: 1

REF: SECTION 4.1

69. {2-Year Investment Narrative} Compare the values of the arithmetic and geometric means. ANS: Because there was no change in the value of the investment from the beginning to the end of the 2-year period, the arithmetic mean (aka the "average" compounded rate of return) is 0%, and this is the value of the geometric mean. This result is somewhat misleading. PTS: 1 REF: SECTION 4.1

Ages of Senior Citizens A sociologist recently conducted a survey of citizens over 65 years of age whose net worth is too high to qualify for Medicaid and who have no private health insurance. The ages of 20 uninsured senior citizens were as follows: 65, 66, 67, 68, 69, 70, 71, 73, 74, 75, 78, 79, 80, 81, 86, 87, 91, 92, 94, and 97. 70. {Ages of Senior Citizens Narrative} Calculate the mean age of the uninsured senior citizens ANS: x = 78.15 years. PTS: 1 REF: SECTION 4.1

71. {Ages of Senior Citizens Narrative} Calculate the median age of the uninsured senior citizens. ANS: 76.5 years. PTS: 1 REF: SECTION 4.1

72. {Ages of Senior Citizens Narrative} Explain why there is no mode for this data set. ANS: There is no mode because every age is different. PTS: 1 REF: SECTION 4.1

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73. Suppose that a firm's sales were $2,500,000 four years ago, and sales have grown annually by 25%, 15%, 5%, and 10% since that time. What was the geometric mean growth rate in sales over the past four years? ANS: If Rg is the geometric mean, then (1 + Rg)4 = (1 + 0.25)(1 + 0.15)(1 0.05)(1 + 0.10) = 1.5022 Rg = 0.1071 or 10.71% PTS: 1 REF: SECTION 4.1

74. Suppose that a firm's sales were $3,750,000 five years ago and are $5,250,000 today. What was the geometric mean growth rate in sales over the past five years? ANS: If Rg is the geometric mean, then 3,750,000 (1 + Rg)5 = 5,250,000 Rg = 0.0696 or 6.96% PTS: 1 REF: SECTION 4.1

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