Untitled Quiz

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Questions and Answers

What is the most common sampling method to ensure that a sample is representative?

Stratified sampling

Random sampling (correct)

Systematic sampling

Cluster sampling

Observational studies involve interaction with units being observed.

False

What type of data collection method involves asking questions to a sample of people?

Survey

________ bias occurs when certain members of a population are excluded from the sampling process.

Selection Signup and view all the answers

Match the following types of biases with their descriptions:

Selection Bias = Exclusion of a population subset prior to sampling Non-response Bias = Responses not obtained from all sample members Measurement Error = Inaccuracy in recorded data Signup and view all the answers

Which of the following is NOT a fundamental element of statistics?

Graphing Signup and view all the answers

Statistical literacy is only important for decision-making in professional settings.

False Signup and view all the answers

Name the two types of statistical applications used in business.

Descriptive and Inferential Signup and view all the answers

Which of the following best describes descriptive statistics?

Describing collected data Signup and view all the answers

Inferential statistics allow for making generalizations about a population based on sample data.

True Signup and view all the answers

What is an experimental unit in statistics?

The object of interest in a study. Signup and view all the answers

____ data cannot be meaningfully transformed into quantitative data.

Qualitative Signup and view all the answers

Match the types of data with their descriptions:

Quantitative Data = Measured on a naturally occurring scale Qualitative Data = Measured by classification only Interval Data = Data with relative zero Ratio Data = Data with absolute zero Signup and view all the answers

What type of statistical technique is used when observing the average age at graduation from a sample of students?

Inferential Statistics Signup and view all the answers

Nominal data has a meaningful order.

False Signup and view all the answers

Provide an example of a statistical measure of reliability.

Confidence interval Signup and view all the answers

The average Return-to-Pay Ratio of Financial Industry CEOs in 2003 was ___.

24.63 Signup and view all the answers

What type of data is illustrated by a bank balance?

Ratio data Signup and view all the answers

Study Notes

Chapter 1: Statistics, Data, and Statistical Thinking

Statistics is the science of data, involving collection, evaluation (classification, summary, organization, and analysis), and interpretation.
Descriptive Statistics describe collected data. Examples include: "51.4% of credit card purchases in the 1st quarter of 2003 were made with a Visa Card" or "The average Return-to-Pay Ratio of Financial Industry CEOs (2003) was 24.63".
Inferential Statistics make generalizations about a group based on a subset (sample) of that group. An example is "Services Industry CEOs are underpaid relative to CEOs in Telecommunications."

Fundamental Elements of Statistics

Experimental Unit: The object of interest. Example: A graduating senior.
Population: The complete set of units of interest. Example: All 1450 graduating seniors at "State U."
Variable: A characteristic of a single experimental unit. Example: Age at graduation.
Sample: A subset of the population. Example: 100 graduating seniors at "State U."
Statistical Inference: Generalizations about a population based on sample data. Example: The average age at graduation is 21.9 (based on a sample of 100).
Measure of Reliability: A statement about the uncertainty associated with an inference.

Elements of Descriptive Statistical Problems

Population/sample of interest
Investigative variables
Numerical summary tools (charts, graphs, tables)
Pattern identification in data

Elements of Inferential Statistical Problems

Population of interest
Investigative variables
Sample taken from the population
Inference about the population based on sample data
Reliability measure for the inference

Types of Data

Quantitative Data: Measured on a naturally occurring scale, with equal intervals that allow for meaningful mathematical calculations. Data with absolute zero is ratio data (e.g., bank balance, grade). Data with relative zero is interval data (e.g., temperature).
Qualitative Data: Measured by classification only. It's non-numerical in nature. Categories can be meaningfully ordered (ordinal data—e.g., best to worst ranking, age categories) or without a meaningful order (nominal data—e.g., political affiliation, industry classification, ethnic/cultural groups).
Different statistical techniques are used for quantitative and qualitative data. Qualitative and quantitative data can be used together in some techniques. Quantitative can be transformed into qualitative data through category creation. Qualitative data cannot be meaningfully transformed into quantitative data.

Collecting Data

Data Sources:
- Published Sources: books, journals, abstracts
- Primary vs. Secondary (e.g., Designed Experiments)
- Surveys
- Observational studies
Sampling: Essential for inferential statistics. Samples need to be representative of the population of interest. Random sampling is a common method to ensure representativeness, allowing each subset of a fixed size an equal chance of selection. A key example is that a survey selecting every 10th person exiting a polling station is not a random sample.

The Role of Statistics in Managerial Decision Making

Statistical literacy is important for informed decisions at work and home.
Statistical thinking allows for critical assessment of data and inferences drawn from it, and helps identify research flaws from unethical statistical practices.
Common Sources of Error in Surveys:
- Selection Bias: Excluding subsets of the population of interest before sampling.
- Non-response Bias: Not getting responses from all sample members.
- Measurement Error: Inaccuracies in recorded data (due to survey design, interviewer impact, or transcription errors).