Question 1

In finance, the is the ratio of a fund's excess returns (annualized total returns minus Treasury bill returns) to its standard deviation.

Accepted Answer

A)  field ratio 
B)  Sortino ratio 
C)  Calmar ratio 
D)  Sharpe ratio 
A)  field ratio 
B)  Sortino ratio 
C)  Calmar ratio 
D)  Sharpe ratio

Question 2

A sample is a subset of a population.

Accepted Answer

A) True 
 B)False

Question 3

Two different sets of data can never have the same z-scores.

Accepted Answer

A) True 
 B)False

Question 4

According to the empirical rules of standard deviation in statistics, approximately 68% of the observations will fall within three standard deviations of the mean.

Accepted Answer

A) True 
 B)False

Question 5

What is statistical thinking? How is it important to making business decisions?

Accepted Answer

Statistical thinking is a philosophy of

Question 6

Compare and contrast methods of summarizing and describing data
Use the spreadsheet below to answer the following question(s).
Below is the table showing rate of shoes sold per day and the highest-priced shoe sold that day for a one-week period. The rate of shoes sold per day (X) and the price of the shoes (Y). $$\begin{array}{l}\begin{array} { | l | l | } 
\hline\text { Shoes sold }\
 \text { in \% (X) } & \text { Price (Y) } \
\hline 15 & \$ 48 \
\hline 27 & \$ 55 \
\hline 10 & \$ 40 \
\hline 13 & \$ 88 \
\hline 25 & \$ 53 \
\hline 9 & \$ 47 \
\hline 18 & \$ 40 \
\hline & \
\hline
\end{array}
\end{array}$$
-Use Excel to calculate the variance of X.

Accepted Answer

A)  271.33 
B)  16.47 
C)  49.57 
D)  7.04 
A)  271.33 
B)  16.47 
C)  49.57 
D)  7.04

Question 7

Compare and contrast methods of summarizing and describing data
Use the table below to answer the following question(s).
Below is a table showing the costs per order of items bought by a computer hardware store. $$\begin{array} { | l | l | l | } 
\hline \text { Supplier } & \text { Item Description } & \text { Cost per Order } \
\hline \text { Aloham Technologies } & \text { Monitors } & \$ 250 \
\hline \text { Aloham Technologies } & \text { Hard Disks } & \$ 220 \
\hline \text { Aloham Technologies } & \text { Power Supply } & \$ 88 \
\hline \text { Aloham Technologies } & \text { Graphics Card } & \$ 300 \
\hline \text { Aloham Technologies } & \text { Processor } & \$ 325 \
\hline \text { Aloham Technologies } & \text { Speakers } & \$ 88 \
\hline \text { MindRoot Hardwares } & \text { Flashdrive } & \$ 9 \
\hline \text { MindRoot Hardwares } & \text { Graphics Card } & \$ 299 \
\hline \text { MindRoot Hardwares } & \text { CD-ROM } & \$ 88 \
\hline \text { MindRoot Hardwares } & \text { Bluetooth Device } & \$ 80 \
\hline
\end{array}$$
-Calculate the mode for the cost per order data.

Accepted Answer

A)  $174.17 
B)  $325 
C)  $88 
D)  $206.5 
A)  $174.17 
B)  $325 
C)  $88 
D)  $206.5

Question 8

The larger the variance, the more the data are spread out from the mean.

Accepted Answer

A) True 
 B)False

Question 9

Two variables can only have a statistical relationship if there is a cause-and-effect factor between them.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true for a mode?

Accepted Answer

A)  Modes are the mid values of data arranged from least to greatest. 
B)  Modes are affected by outliers. 
C)  Modes cannot be used in data having repetitious values. 
D)  The highest bar in a histogram is its mode. 
A)  Modes are the mid values of data arranged from least to greatest. 
B)  Modes are affected by outliers. 
C)  Modes cannot be used in data having repetitious values. 
D)  The highest bar in a histogram is its mode.

Question 11

One of the measures of location is calculated as 88. Which of the following measures of location corresponds to this value?

Accepted Answer

A)  mean 
B)  mode 
C)  median 
D)  midrange 
A)  mean 
B)  mode 
C)  median 
D)  midrange

Question 12

In statistical notation, the elements of a data set are typically labeled as .

Accepted Answer

A)  summation operators 
B)  letters in capitals 
C)  Greek letters 
D)  subscripted variables 
A)  summation operators 
B)  letters in capitals 
C)  Greek letters 
D)  subscripted variables

Question 13

In stock trading, the higher the coefficient of variation for the stock, the smaller the relative risk is for the return provided.

Accepted Answer

A) True 
 B)False

Question 14

According to the interquartile range, extreme outliers are more than 3*IQR away from the left of Q1 or to the right of Q3.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a difference between a mean and a median?

Accepted Answer

A)  A mean divides the data half above it and half below it; a median does not. 
B)  A median is not affected by outliers; a mean is affected by outliers. 
C)  A mean is an observation that occurs most frequently; a median is the average of all observations. 
D)  A median is not meaningful for ratio data; a mean is meaningful to ratio data. 
A)  A mean divides the data half above it and half below it; a median does not. 
B)  A median is not affected by outliers; a mean is affected by outliers. 
C)  A mean is an observation that occurs most frequently; a median is the average of all observations. 
D)  A median is not meaningful for ratio data; a mean is meaningful to ratio data.

Question 16

Which of the following is true of the coefficient of skewness (CS)?

Accepted Answer

A)  If the CS is positive, the distribution of values tails off to the left. 
B)  If the CS value is between 0.5 and 1, the skewness is considered to be moderate. 
C)  If the CS is closer to zero, the degree of skewness is considered to be high. 
D)  If the CS value is between -0.5 and -1, the skewness is considered negligible. 
A)  If the CS is positive, the distribution of values tails off to the left. 
B)  If the CS value is between 0.5 and 1, the skewness is considered to be moderate. 
C)  If the CS is closer to zero, the degree of skewness is considered to be high. 
D)  If the CS value is between -0.5 and -1, the skewness is considered negligible.

Question 17

Which of the following is an example of a subset?

Accepted Answer

A)  The number of individuals who have a Ford car 
B)  The number of IT employees out of all employees working in an office of Google 
C)  The number of members in the Democratic Party 
D)  The population of Canada 
A)  The number of individuals who have a Ford car 
B)  The number of IT employees out of all employees working in an office of Google 
C)  The number of members in the Democratic Party 
D)  The population of Canada

Question 18

Which of the following values of the coefficients of variation of stocks represents the least risky stock?

Accepted Answer

A)  1.0 
B)  0.005 
C)  0.5 
D)  0.045 
A)  1.0 
B)  0.005 
C)  0.5 
D)  0.045

Question 19

Calculate the standard deviation for cost per order in the following table. $$\begin{array} { | l | l | } 
\hline \text { Observation } & \text { Cost per order } \
\hline X 1 & \$ 1345 \
\hline X 2 & \$ 4364 \
\hline X 3 & \$ 1768 \
\hline X 4 & \$ 2278 \
\hline X 5 & \$ 4332 \
\hline X 6 & \$ 2984 \
\hline X 7 & \$ 3326 \
\hline
\end{array}$$

Accepted Answer

The formula for standard deviation, S =

Question 20

In statistics, refers to the peakedness or flatness of a histogram.

Accepted Answer

A)  Sharpe ratio 
B)  entropy rate 
C)  Markov chain 
D)  kurtosis 
A)  Sharpe ratio 
B)  entropy rate 
C)  Markov chain 
D)  kurtosis

In finance, the is the ratio of a fund's excess returns (annualized total returns minus Treasury bill returns) to its standard deviation.

A sample is a subset of a population.

Two different sets of data can never have the same z-scores.

According to the empirical rules of standard deviation in statistics, approximately 68% of the observations will fall within three standard deviations of the mean.

What is statistical thinking? How is it important to making business decisions?

The larger the variance, the more the data are spread out from the mean.

Two variables can only have a statistical relationship if there is a cause-and-effect factor between them.

Which of the following is true for a mode?

One of the measures of location is calculated as 88. Which of the following measures of location corresponds to this value?

In statistical notation, the elements of a data set are typically labeled as .

In stock trading, the higher the coefficient of variation for the stock, the smaller the relative risk is for the return provided.

According to the interquartile range, extreme outliers are more than 3*IQR away from the left of Q1 or to the right of Q3.

Which of the following is a difference between a mean and a median?

Which of the following is true of the coefficient of skewness (CS)?

Which of the following is an example of a subset?

Which of the following values of the coefficients of variation of stocks represents the least risky stock?

Calculate the standard deviation for cost per order in the following table. Observation Cost per order X1 \ 1345 X2 \ 4364 X3 \ 1768 X4 \ 2278 X5 \ 4332 X6 \ 2984 X7 \ 3326

In statistics, refers to the peakedness or flatness of a histogram.

Business Analytics

Analytics on Spreadsheets

Visualizing and Exploring Data

Probability Distributions and Data Modeling

Sampling and Estimation

Statistical Inference

Trendlines and Regression Analysis

Forecasting Techniques

Introduction to Data Mining

Spreadsheet Modeling and Analysis

Monte Carlo Simulation and Risk Analysis

Linear Optimization

Applications of Linear Optimization

Integer Optimization

Decision Analysis

Filters

Exam 4: Descriptive Statistical Measures

In finance, the is the ratio of a fund's excess returns (annualized total returns minus Treasury bill returns) to its standard deviation.

A sample is a subset of a population.

Two different sets of data can never have the same z-scores.

According to the empirical rules of standard deviation in statistics, approximately 68% of the observations will fall within three standard deviations of the mean.

What is statistical thinking? How is it important to making business decisions?

The larger the variance, the more the data are spread out from the mean.

Two variables can only have a statistical relationship if there is a cause-and-effect factor between them.

Which of the following is true for a mode?

One of the measures of location is calculated as 88. Which of the following measures of location corresponds to this value?

In statistical notation, the elements of a data set are typically labeled as .

In stock trading, the higher the coefficient of variation for the stock, the smaller the relative risk is for the return provided.

According to the interquartile range, extreme outliers are more than 3*IQR away from the left of Q1 or to the right of Q3.

Which of the following is a difference between a mean and a median?

Which of the following is true of the coefficient of skewness (CS)?

Which of the following is an example of a subset?

Which of the following values of the coefficients of variation of stocks represents the least risky stock?

Calculate the standard deviation for cost per order in the following table. Observation Cost per order X1 \ 1345 X2 \ 4364 X3 \ 1768 X4 \ 2278 X5 \ 4332 X6 \ 2984 X7 \ 3326

In statistics, refers to the peakedness or flatness of a histogram.

Business Analytics

Analytics on Spreadsheets

Visualizing and Exploring Data

Probability Distributions and Data Modeling

Sampling and Estimation

Statistical Inference

Trendlines and Regression Analysis

Forecasting Techniques

Introduction to Data Mining

Spreadsheet Modeling and Analysis

Monte Carlo Simulation and Risk Analysis

Linear Optimization

Applications of Linear Optimization

Integer Optimization

Decision Analysis

Filters