## Description

# Business Statistics A First Course 7th Edition Levine Test Bank

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TEST BANK

PIN NG

Northern Arizona University

BUSINESS STATISTICS:

A FIRST COURSE

SEVENTH EDITION

David Levine

Baruch College, City University of New York

Kathryn Szabat

La Salle University

David Stephan

Two Bridges Instructional Technology

The author and publisher of this book have used their best efforts in preparing this book. These efforts include the

development, research, and testing of the theories and programs to determine their effectiveness. The author and

publisher make no warranty of any kind, expressed or implied, with regard to these programs or the documentation

contained in this book. The author and publisher shall not be liable in any event for incidental or consequential

damages in connection with, or arising out of, the furnishing, performance, or use of these programs.

Reproduced by Pearson from electronic files supplied by the author.

Copyright © 2016, 2013, 2010 Pearson Education, Inc.

Publishing as Pearson, 501 Boylston Street, Boston, MA 02116.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any

form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

ISBN-13: 978-0-321-99822-4

ISBN-10: 0-321-99822-7

www.pearsonhighered.com

i

Table of Contents

Getting

Started

Important Things

to Learn First

GS-1

Chapter 1 Defining and Collecting Data 1-1

Chapter 2 Organizing and Visualizing Data 2-1

Chapter 3 Numerical Descriptive Measures 3-1

Chapter 4 Basic Probability 4-1

Chapter 5 Discrete Probability Distributions 5-1

Chapter 6 The Normal Distribution 6-1

Chapter 7 Sampling Distributions 7-1

Chapter 8 Confidence Interval Estimation 8-1

Chapter 9 Fundamentals of Hypothesis Testing: One-Sample Tests 9-1

Chapter 10 Two-Sample Tests and One-Way ANOVA 10-1

Chapter 11 Chi-Square Tests 11-1

Chapter 12 Simple Linear Regression 12-1

Chapter 13 Multiple Regression 13-1

Chapter 14 Statistical Applications in Quality Management 14-1

iv

Preface

The Test Item File contains a variety of multiple-choice, true-false, problem and fill-in questions based

on the definitions, concepts, and ideas developed in each chapter. In addition, numerical problems and

Microsoft® Excel computer output problems are also given with solutions provided in multiple-choice,

true-false, problem and fill-in format.

The Test Item File is intended to assist instructors in preparing examinations. The questions included

herein highlight the key topics covered throughout each chapter. The keywords after each question, and

the Keywords to Subsections Cross-reference and Subsections to Keywords Cross-reference are intended

to help instructors easily locate questions on a specific topic or concept. Explanation is provided when

the rationale of the correct answer to a difficult question is rather obscure. The format for the Test Item

File will facilitate grading and should be helpful to instructors who teach very large sections.

The intended difficulty level (easy, moderate, difficult) of each question in the Test Item File is stated in

order to facilitate test item selection by instructors wishing to create specific types of exams. However,

some words of caution must be given. The classification of question difficulty level is very subjective

and each question should be evaluated based on the emphasis the particular topic was given in class and

how much emphasis is to be given to numerical results obtained by calculator rather than computerized

results obtained from Microsoft® Excel. As an operational definition that is used here, items are classified

as easy if they pertain directly to definitions and fundamental concepts. Test items are classified as

moderate if they require some numerical calculations with more than a minimal number of steps or if they

require a broader understanding of the topic. Test items that are classified as difficult are done so because

of the level of rigor of the subject, the length of the narrative, the amount of effort required for solution,

or for responses that require more thought and analysis.

Instructors are also advised that all answers in the Test Item File are computed using Microsoft® Excel or

PHStat2 with no rounding involved in the intermediate steps. If students use rounding with formulae and

a calculator, their answers might be different from those provided in the answer keys. Likewise, if

students use the statistical tables at the end of the book instead of Microsoft® Excel or PHStat2, their

answers might also differ from those provided in the answer keys due to rounding. Whenever possible,

we provide answers obtained using both Microsoft® Excel/PHStat2 and the statistical tables if they are

very different.

This Test Item File and others that are similar suffer from one major weakness. They do not permit an

evaluation of the students’ written communication skill. The authors highly recommend that, if possible,

instructors who use this Test Item File supplement it with at least one short essay type question so that an

assessment can be made of the students’ understanding of concepts as well as how they can make

connections across various topics.

The following tabular display is a breakdown of the number of questions in each chapter by type.

v

Chapter Multiple

Choice

True/False Fill in Problem Total

GS 8 19 6 0 33

1 82 49 39 0 170

2 59 51 84 24 218

3 41 34 38 78 191

4 60 20 38 53 171

5 21 12 61 49 143

6 19 12 32 83 146

7 30 37 41 31 139

8 30 111 37 30 208

9 79 89 39 22 229

10 131 58 60 65 314

11 49 41 24 18 132

12 80 46 78 46 250

13 107 84 48 36 275

14 44 59 38 18 159

Total 840 722 663 553 2778

vi

Keywords to Subsections Cross-reference

Keyword Chapter Section

a priori probability 4 1

A2 factor 14 5

addition rule 4 1

adjusted coefficient of determination 13 2

adjusted r-square 13 2

analysis of means 10 5

analysis of proportions 11 2

arithmetic mean 3 1

assumption 9 1

assumption 10 1

assumption 10 2

assumption 10 4

assumption 10 5

assumption 11 2

assumption 11 3

assumption 12 4

assumption 12 5

assumption 13 3

autocorrelation 12 4

autocorrelation 12 5

autocorrelation 12 6

bar chart 2 3

Bayes’ theorem 4 3

beta-risk 9 1

big data GS 3

binomial distribution 5 2

boxplot 3 3

business analytics GS 3

c chart 14 4

capability index 14 6

categorical variable 1 1

center line 14 2

center line 14 4

center line 14 5

central limit theorem 7 2

central limit theorem 8 1

central limit theorem 8 2

central limit theorem 8 3

challenges in visualizing data 2 7

Chebyshev rule 3 4

chi-square test 11 1

chi-square test 11 2

chi-square test 11 3

Chi-square test for difference in two proportions 11 1

Chi-square test of independence 11 3

choice of chart 2 3

choice of chart 2 4

vii

Keyword Chapter Section

choice of chart 2 5

class boundaries 2 2

class interval 2 2

class midpoint 2 2

cluster sample 1 3

coefficient of correlation 12 7

coefficient of determination 12 3

coefficient of multiple determination 13 2

coefficient of variation 3 2

collective exhaustive 4 1

column percentages 2 1

combination 4 4

common causes of variation 14 1

common causes of variation 14 2

common causes of variation 14 3

common causes of variation 14 6

complement 4 1

completely randomized design 10 5

conclusion 9 1

conclusion 9 2

conclusion 9 3

conclusion 9 4

conclusion 10 1

conclusion 10 2

conclusion 10 3

conclusion 10 4

conclusion 10 5

conclusion 11 1

conclusion 11 2

conclusion 11 3

conclusion 12 7

conclusion 13 2

conclusion 13 4

conclusion 13 5

conditional probability 4 2

confidence coefficient 9 1

confidence interval 8 1

confidence interval 8 2

confidence interval 8 3

confidence interval 9 1

confidence interval 9 2

confidence interval 9 4

confidence interval 10 1

confidence interval 10 2

confidence interval 10 3

confidence interval 12 7

confidence interval 12 8

confidence interval 13 4

contingency table 2 1

contingency table 2 6

viii

Keyword Chapter Section

contingency table 4 1

contingency table 11 1

contingency table 11 2

contingency table 11 3

continuous variable 1 1

control chart 14 1

control chart 14 2

control chart 14 4

control chart 14 5

control limit 14 1

control limit 14 2

control limit 14 4

control limit 14 5

convenience sample 1 3

counting rule 4 4

covariance 3 5

coverage error 1 4

Cp index 14 6

Cpk index 14 6

CPL index 14 6

CPU index 14 6

critical value 8 1

critical value 8 2

critical value 8 3

critical value 9 1

critical value 9 2

critical value 9 3

critical value 9 4

critical value 10 1

critical value 10 2

critical value 10 3

critical value 10 4

critical value 10 5

critical value 11 1

critical value 11 2

critical value 11 3

critical value 12 7

critical value 13 2

critical value 13 4

critical value 13 5

cumulative distribution 2 2

cumulative percentage distribution 2 2

cumulative percentage distribution 2 4

cumulative percentage polygon (ogive) 2 4

cumulative relative frequency 2 4

d2 factor 14 5

d3 factor 14 5

D3 factor 14 5

D4 factor 14 5

data GS 2

ix

Keyword Chapter Section

DCOVA framework GS 1

decision 9 1

decision 9 2

decision 9 3

decision 9 4

decision 10 1

decision 10 2

decision 10 3

decision 10 4

decision 10 5

decision 11 1

decision 11 2

decision 11 3

decision 12 7

decision 13 2

decision 13 4

decision 13 5

degrees of freedom 10 1

degrees of freedom 10 2

degrees of freedom 10 4

degrees of freedom 10 5

degrees of freedom 11 1

degrees of freedom 11 2

degrees of freedom 11 3

degrees of freedom 12 7

degrees of freedom 13 2

degrees of freedom 13 4

Deming’s 14 points 14 7

descriptive statistics GS 2

difference among more than two means 10 5

difference between two means 10 1

difference between two means 10 2

difference between two proportions 10 3

difference between two variances 10 4

discrete variable 1 1

dummy variable 13 5

Durbin-Watson statistic 12 6

empirical probability 4 1

empirical rule 3 4

estimation 12 7

estimation 12 8

estimation 13 1

estimation of mean values 12 8

estimation of mean values 13 1

ethical issues 1 4

ethical issues 8 5

ethical issues 9 5

F distribution 10 4

F test 10 4

F test for factor 10 5

x

Keyword Chapter Section

F test on slope 12 7

F test on the entire regression 13 2

five-number summary 3 3

form of hypothesis 9 1

form of hypothesis 9 2

form of hypothesis 9 3

form of hypothesis 9 4

form of hypothesis 10 1

form of hypothesis 10 2

form of hypothesis 10 3

form of hypothesis 10 4

form of hypothesis 10 5

form of hypothesis 11 1

form of hypothesis 11 2

form of hypothesis 11 3

form of hypothesis 12 7

form of hypothesis 13 2

form of hypothesis 13 4

form of hypothesis 13 5

frame 1 3

frequency distribution 2 2

histogram 2 4

homoscedasticity 12 4

homoscedasticity 12 5

homoscedasticity 13 3

independence 4 2

inferential statistics GS 2

interaction 13 5

intercept 12 2

intercept 13 1

interpretation 2 1

interpretation 2 2

interpretation 2 3

interpretation 2 4

interpretation 3 5

interpretation 8 1

interpretation 8 2

interpretation 8 3

interpretation 10 5

interpretation 12 2

interpretation 12 3

interpretation 12 4

interpretation 12 7

interpretation 13 1

interpretation 13 2

interpretation 13 4

interpretation 13 5

interquartile range 3 3

joint probability 4 1

judgment sample 1 3

xi

Keyword Chapter Section

lean six sigma 14 8

least squares 12 2

level of significance 9 1

level of significance 9 2

level of significance 9 3

level of significance 9 4

marginal probability 4 1

marginal probability 4 2

mean 3 1

mean 6 2

mean 7 2

mean 8 1

mean 8 2

mean 9 1

mean 9 2

mean 9 3

mean (expected value) 5 1

mean (expected value) 5 2

mean (expected value) 5 3

mean difference 10 2

mean squares 10 5

mean squares 13 2

measure of central tendency 3 1

measure of variation 3 2

measurement error 1 4

median 3 1

mode 3 1

multidimensional contingency table 2 6

multiplication rule 4 2

mutually exclusive 4 1

nonprobability sample 1 3

nonresponse error 1 4

normal distribution 3 4

normal distribution 6 2

normal distribution 6 3

normal probability plot 6 3

normality 13 3

number of classes 2 2

one-tailed test 9 3

one-way analysis of variance 10 5

p chart 14 2

parameter 1 2

parameter 8 1

parameter 8 2

parameter 8 3

parameter 9 1

parameter 9 2

parameter 9 3

parameter 9 4

Pareto chart 2 3

xii

Keyword Chapter Section

percentage distribution 2 2

percentage polygon 2 4

permutation 4 4

pie chart 2 3

point estimate 8 1

point estimate 10 1

point estimate 10 3

Poisson distribution 5 3

polygon 2 4

pooled variance 10 1

population 1 2

population mean 3 4

population standard deviation 3 4

population variance 3 4

power 9 1

prediction interval 12 8

prediction of individual values 12 8

prediction of individual values 13 2

probability 6 2

probability 7 2

probability 7 3

probability distribution 5 1

probability distribution 5 2

probability distribution 5 3

probability sample 1 3

probability sample 1 4

process capability 14 6

properties 5 2

properties 5 3

properties 6 2

properties 7 1

properties 8 1

properties 8 2

properties 8 3

properties 8 4

properties 10 4

properties 10 5

properties 11 1

properties 11 2

properties 11 3

properties 12 2

properties 12 3

properties 12 4

properties 12 5

properties 12 6

properties 12 7

properties 12 8

properties 13 2

properties 13 3

properties 13 5

xiii

Keyword Chapter Section

proportion 7 3

proportion 8 3

proportion 9 4

p-value 9 1

p-value 9 2

p-value 9 3

p-value 9 4

p-value 10 1

p-value 10 2

p-value 10 3

p-value 10 4

p-value 10 5

p-value 11 1

p-value 11 2

p-value 11 3

p-value 12 7

p-value 13 2

p-value 13 4

quartile 3 3

R chart 14 5

random number 1 3

range 3 2

reasons for learning statistics GS 1

reasons for sampling 1 3

red bead experiment 14 3

rejection region 9 1

rejection region 9 2

rejection region 9 3

rejection region 9 4

rejection region 10 1

rejection region 10 2

rejection region 10 3

rejection region 10 4

rejection region 10 5

relative frequency distribution 2 2

residual 12 5

residual 13 3

residual plot 12 5

residual plot 13 3

resistant to outliers 3 1

resistant to outliers 3 2

row percentages 2 1

sample 1 2

sample 1 3

sample size 9 1

sample size 10 1

sample size 10 2

sample size 10 3

sample size 10 4

sample size determination 8 4

xiv

Keyword Chapter Section

sample space 4 1

sampling distribution 10 2

sampling error 1 4

sampling error 8 1

sampling error 8 4

sampling method 1 3

sampling with replacement 1 3

sampling with replacement 4 2

sampling without replacement 1 3

sampling without replacement 4 2

scatter chart 2 5

scatter chart 12 1

scatter chart 12 2

scatter chart 12 6

scatter chart 12 7

scatter chart 12 9

selection bias 1 3

selection bias 1 4

shape 3 3

Shewhart Deming cycle 14 7

side-by-side chart 2 3

simple random sample 1 3

six sigma management 14 8

slope 12 2

slope 12 7

slope 13 1

slope 13 4

source of data 1 2

special causes of variation 14 1

special causes of variation 14 2

special causes of variation 14 3

special causes of variation 14 4

special causes of variation 14 5

special causes of variation 14 6

special causes of variation 14 7

standard deviation 3 2

standard deviation 3 4

standard error 7 2

standard error 7 3

standard error 10 1

standard error 10 2

standard error 10 3

standard error 12 7

standard error 14 2

standard error of estimate 12 3

standard error of estimate 13

standardized normal distribution 6 2

standardized normal distribution 8 1

standardized normal distribution 8 3

standardized normal distribution 8 4

xv

Keyword Chapter Section

statistic 1 2

statistical control 14 1

statistical control 14 2

statistical control 14 4

statistical control 14 5

statistical independence 4 2

statistical package GS 1

statistics 7 1

stem-and-leaf display 2 4

stratified sample 1 3

subjective probability 4 1

sum of squares 10 5

sum of squares 12 3

sum of squares 13 2

survey worthiness 1 4

systematic sample 1 3

t distribution 8 2

t test 9 2

t test 9 3

t test 10 1

t test 10 2

t test for correlation coefficient 12 7

t test on slope 12 7

t test on slope 13 4

test statistic 9 1

test statistic 9 2

test statistic 9 3

test statistic 9 4

test statistic 10 1

test statistic 10 2

test statistic 10 3

test statistic 10 4

test statistic 10 5

test statistic 11 1

test statistic 11 2

test statistic 11 3

test statistic 12 6

test statistic 12 7

test statistic 13 2

test statistic 13 4

test statistic 13 5