# Applied Statistics in Business And Economics 5th Edition by Doane -Test Bank

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###### Applied Statistics in Business And Economics 5th Edition by Doane -Test Bank

Chapter 02

Data Collection

True / False Questions

 1 Categorical data have values that are described by words rather than numbers. True    False

 2 Numerical data can be either discrete or continuous. True    False

 3 Categorical data are also referred to as nominal or qualitative data. True    False

 4 The number of checks processed at a bank in a day is an example of categorical data. True    False

 5 The number of planes per day that land at an airport is an example of discrete data. True    False

 6 The weight of a bag of dog food is an example of discrete data. True    False

 7 In last year’s annual report, Thompson Distributors indicated that it had 12 regional warehouses. This is an example of ordinal level data. True    False

 8 Nominal data refer to data that can be ordered in a natural way. True    False

 9 This year, Oxnard University produced two football All-Americans. This is an example of continuous data. True    False

 10 The type of statistical test that we can perform is independent of the level of measurement of the variable of interest. True    False

 11 Your weight recorded at your annual physical would not be ratio data, because you cannot have zero weight. True    False

 12 The level of measurement for categorical data is nominal. True    False

 13 Temperature measured in degrees Fahrenheit is an example of interval data. True    False

 14 The closing price of a stock is an example of ratio data. True    False

 15 The Statistical Abstract of the United States is a huge annual compendium of data for the United States, and it is available online free of charge. True    False

 16 Ordinal data can be treated as if it were nominal data but not vice versa. True    False

 17 Responses on a seven-point Likert scale are usually treated as ratio data. True    False

 18 Likert scales are especially important in opinion polls and marketing surveys. True    False

 19 Ordinal data are data that can be ranked based on some natural characteristic of the items. True    False

 20 Ratio data are distinguished from interval data by the presence of a zero reference point. True    False

 21 It is better to attempt a census of a large population instead of relying on a sample. True    False

 22 Judgment sampling and convenience sampling are nonrandom sampling techniques. True    False

 23 A problem with judgment sampling is that the sample may not reflect the population. True    False

 24 When the population is large, a sample estimate is usually preferable to a census. True    False

 25 Sampling error is avoidable by choosing the sample scientifically. True    False

 26 A sampling frame is used to identify the target population in a statistical study. True    False

 27 By taking a systematic sample, in which we select every 50th shopper arriving at a specific store, we are approximating a random sample of shoppers. True    False

 28 A worker collecting data from every other shopper who leaves a store is taking a simple random sample of customer opinion. True    False

 29 Creating a list of people by taking the third name listed on every 10th page of the phone book is an example of convenience sampling. True    False

 30 Internet surveys posted on popular websites have no bias since anyone can reply. True    False

 31 Analysis of month-by-month changes in stock market prices during the most recent recession would require the use of time series data. True    False

 32 A cluster sample is a type of stratified sample that is based on geographical location. True    False

 33 An advantage of a systematic sample is that no list of enumerated data items is required. True    False

 34 Telephone surveys often have a low response rate and fail to reach the desired population. True    False

 35 Mail surveys are attractive because of their high response rates. True    False

 36 A problem with convenience sampling is that the target population is not well defined. True    False

 37 If you randomly sample 50 students about their favorite places to eat, the data collected would be referred to as cross-sectional data. True    False

 38 The number of FedEx shipping centers in each of 50 cities would be ordinal level data. True    False

 39 Internet surveys posted on popular websites such as MSN.com suffer from nonresponse bias. True    False

 40 Different variables are usually shown as columns of a multivariate data set. True    False

 41 Each row in a multivariate data matrix is an observation (e.g., an individual response). True    False

 42 A bivariate data set has only two observations on a variable. True    False

 43 Running times for 3,000 runners in a 5k race would be a multivariate data set. True    False

 44 Running times for 500 runners in a 5k race would be a univariate data set. True    False

 45 A list of the salaries, ages, and years of experience for 50 CEOs is a multivariate data set. True    False

 46 The daily closing price of Apple stock over the past month would be a time series. True    False

 47 The number of words on 50 randomly chosen textbook pages would be cross-sectional data. True    False

 48 A Likert scale with an even number of scale points between “Strongly Agree” and “Strongly Disagree” is intended to prevent “neutral” choices. True    False

 49 Private statistical databases (e.g., CRSP) are usually free. True    False

Multiple Choice Questions

50. An investment firm rates bonds for AardCo Inc. as “B+,” while bonds of Deva Corp. are rated “AA.” Which level of measurement would be appropriate for such data?

 A. Nominal

 B. Ordinal

 C. Interval

 D. Ratio

51. Which variable is least likely to be regarded as ratio data?

 A. Length of time required for a randomly chosen vehicle to cross a toll bridge (minutes)

 B. Weight of a randomly chosen student (pounds)

 C. Number of fatalities in a randomly chosen traffic disaster (persons)

 D. Student’s evaluation of a professor’s teaching (Likert scale)

52. Which of the following is numerical data?

 B. The brand of cell phone you own

 C. Whether you have an American Express card

 D. The fuel economy (MPG) of your car

53. Measurements from a sample are called:

 A. statistics.

 B. inferences.

 C. parameters.

 D. variables.

54. Quantitative variables use which two levels of measurement?

 A. Ordinal and ratio

 B. Interval and ordinal

 C. Nominal and ordinal

 D. Interval and ratio

55. Temperature in degrees Fahrenheit is an example of a(n) __________ variable.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

56. Using a sample to make generalizations about an aspect of a population is called:

 A. data mining.

 B. descriptive statistics.

 C. random sampling.

 D. statistical inference.

57. Your telephone area code is an example of a(n) ____________ variable.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

58. Which is least likely to be regarded as a ratio variable?

 A. A critic’s rating of a restaurant on a 1 to 4 scale

 B. Automobile exhaust emission of nitrogen dioxide (milligrams per mile)

 C. Number of customer complaints per day at a cable TV company office

 D. Cost of an eBay purchase

59. Automobile exhaust emission of CO2 (milligrams per mile) is ____________ data.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

60. Your rating of the food served at a local restaurant using a three-point scale of 0 = gross, 1 = decent, 2 = yummy is ___________ data.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

61. The number of passengers “bumped” on a particular airline flight is ____________ data.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

62. Which should not be regarded as a continuous random variable?

 A. Tonnage carried by a randomly chosen oil tanker at sea

 B. Wind velocity at 7 o’clock this morning

 C. Number of personal fouls by the Miami Heat in a game

 D. Length of time to play a Wimbledon tennis match

63. Which of the following is not true?

 A. Categorical data have values that are described by words rather than numbers.

 B. Categorical data are also referred to as nominal or qualitative data.

 C. The number of checks processed at a bank in a day is categorical data.

 D. Numerical data can be either discrete or continuous.

64. Which of the following is true?

 A. The type of charge card used by a customer (Visa, MasterCard, AmEx) is ordinal data.

 B. The duration (minutes) of a flight from Boston to Minneapolis is ratio data.

 C. The number of Nobel Prize-winning faculty at Oxnard University is continuous data.

 D. The number of regional warehouses owned by Jankord Industries is ordinal data.

65. Which statement is correct?

 A. Judgment sampling is preferred to systematic sampling.

 B. Sampling without replacement introduces bias in our estimates of parameters.

 C. Cluster sampling is useful when strata characteristics are unknown.

 D. Focus groups usually work best without a moderator.

66. A Likert scale:

 A. yields interval data if scale distances are equal.

 B. must have an odd number of scale points.

 C. must have a verbal label on each scale point.

 D. is rarely used in marketing surveys.

67. Which is most nearly correct regarding sampling error?

 A. It can be eliminated by increasing the sample size.

 B. It cannot be eliminated by any statistical sampling method.

 C. It can be eliminated by using Excel’s =RANDBETWEEN() function.

 D. It can be eliminated by utilizing systematic random sampling.

68. Which statement is false?

 A. Random dialing phone surveys have low response and are poorly targeted.

 B. Selection bias means that many respondents dislike the interviewer.

 C. Simple random sampling requires a list of the population.

 D. Web surveys are economical but suffer from nonresponse bias.

69. Judgment sampling is sometimes preferred over random sampling, for example, when:

 A. the desired sample size is much larger than the population.

 B. the sampling budget is large and the population is conveniently located.

 C. time is short and the sampling budget is limited.

 D. the population is readily accessible and sampling is nondestructive.

70. An advantage of convenience samples is that:

 A. the required sample size is easier to calculate.

 B. sampling error can be reduced.

 C. computation of statistics is easier.

 D. they are often quicker and cheaper.

71. Before deciding whether to assess heavy fines against noisy airlines, which sampling method would the Federal Aviation Administration probably use to measure the peak noise from departing jets as measured by a ground-level observer at a point one mile from the end of the departure runway?

 B. Simple random sample.

 C. Judgment sample.

 D. Stratified sample.

72. Professor Hardtack chose a sample of 7 students from his statistics class of 35 students by picking every student who was wearing red that day. Which kind of sample is this?

 A. Simple random sample

 B. Judgment sample

 C. Systematic sample

 D. Convenience sample

73. Thirty work orders are selected from a filing cabinet containing 500 work order folders by choosing every 15th folder. Which sampling method is this?

 A. Simple random sample

 B. Systematic sample

 C. Stratified sample

 D. Cluster sample

74. Which of the following is not a likely reason for sampling?

 A. The destructive nature of certain tests

 B. The physical impossibility of checking all the items in the population

 C. Prohibitive cost of studying the entire population

 D. The expense of obtaining random numbers

75. Comparing a census of a large population to a sample drawn from it, we expect that the:

 A. sample is usually a more practical method of obtaining the desired information.

 B. accuracy of the observations in the census is surely higher than in the sample.

 C. sample must be a large fraction of the population to be accurate.

76. A stratified sample is sometimes recommended when:

 A. the sample size is very large.

 B. the population is small compared to the sample.

 C. distinguishable strata can be identified in the populations.

 D. the population is spread out geographically.

77. A random sample is one in which the:

 A. probability that an item is selected for the sample is the same for all population items.

 B. population items are selected haphazardly by experienced workers.

 C. items to be selected from the population are specified based on expert judgment.

 D. probability of selecting a population item depends on the item’s data value.

78. An advantage of convenience samples over random samples is that:

 A. they are easy to analyze.

 B. it is easier to determine the sample size needed.

 C. it is easier to calculate the sampling errors involved.

 D. data collection cost is reduced.

79. To measure satisfaction with its cell phone service, AT&T takes a stratified sample of its customers by age, gender, and location. Which is an advantage of this type of sampling, as opposed to other sampling methods?

 A. It is less intrusive on customers’ privacy.

 B. It does not require random numbers.

 C. It gives faster results.

 D. It can give more accurate results.

80. An accounting professor wishing to know how many MBA students would take a summer elective in international accounting did a survey of the class she was teaching. Which kind of sample is this?

 A. Simple random sample

 B. Cluster sample

 C. Systematic sample

 D. Convenience sample

81. A binary variable (also called a dichotomous variable or dummy variable) has:

 A. only two possible values.

 B. continuous scale values.

 C. rounded data values.

 D. ordinal or interval values.

82. A population has groups that have a small amount of variation within them, but large variation among or between the groups themselves. The proper sampling technique is:

 A. simple random.

 B. stratified.

 C. cluster.

 D. judgment.

83. A manager chose two people from his team of eight to give an oral presentation because she felt they were representative of the whole team’s views. What sampling technique did she use in choosing these two people?

 A. Convenience

 B. Simple random

 C. Judgment

 D. Cluster

84. Sampling bias can best be reduced by:

 A. using appropriate data coding.

 B. having a computer tabulate the results.

 C. utilizing random sampling.

 D. taking a judgment sample.

85. A sampling technique used when groups are defined by their geographical location is:

 A. cluster sampling.

 B. convenience sampling.

 C. judgment sampling.

 D. random sampling.

86. If we choose 500 random numbers using Excel’s function =RANDBETWEEN(1,99), we would most likely find that:

 A. numbers near the mean (50) would tend to occur more frequently.

 B. numbers near 1 and 99 would tend to occur less frequently.

 C. some numbers would occur more than once.

 D. the numbers would have a clear pattern.

87. A problem with nonrandom sampling is that:

 A. larger samples need to be taken to reduce the sampling error inherent in this approach.

 B. not every item in the population has the same chance of being selected, as it should.

 C. it is usually more expensive than random sampling.

 D. it generally provides lower response rates than random sampling.

88. From its 32 regions, the FAA selects 6 regions, and then randomly audits 25 departing commercial flights in each region for compliance with legal fuel and weight requirements. This is an example of:

 A. simple random sampling.

 B. stratified random sampling.

 C. cluster sampling.

 D. judgment sampling.

89. Which of the following is a correct statement?

 A. Choosing the third person listed on every fifth page of the phone book is stratified sampling.

 B. An advantage of a systematic sample is that no list of enumerated data items is required.

 C. Convenience sampling is used to study shoppers in convenience stores.

 D. Judgment sampling is an example of true random sampling.

90. Which of the following is false?

 A. Sampling error is the difference between the true parameter and the sample estimate.

 B. Sampling error is a result of unavoidable random variation in a sample.

 C. A sampling frame is chosen from the target population in a statistical study.

 D. The target population must first be defined by a full list or data file of all individuals.

91. When we are choosing a random sample and we do not place chosen units back into the population, we are:

 A. sampling with replacement.

 B. sampling without replacement.

 C. using a systematic sample.

 D. using a voluntary sample.

92. Which method is likely to be used by a journalism student who is casually surveying opinions of students about the university’s cafeteria food for an article that she is writing?

 A. Simple random sample

 B. Systematic random sample

 C. Cluster sample

 D. Convenience sample

93. Which of the following is false?

 A. Mail surveys are cheap but have low response rates.

 B. Coverage error is when respondents give untruthful answers.

 C. Focus groups are nonrandom but can probe issues more deeply.

 D. Surveys posted on popular websites suffer from selection bias.

94. Which is a time series variable?

 A. VISA balances of 30 students on December 31 of this year

 B. Net earnings reported by Xena Corp. for the last 10 quarters

 C. Dollar exchange rates yesterday against 10 other world currencies

 D. Titles of the top 10 movies in total revenue last week

95. An observation in a data set would refer to:

 A. only a variable whose value is recorded by visual inspection.

 B. a data item whose value is numerical (as opposed to categorical).

 C. a single row that contains one or more observed variables.

 D. the values of all the variables in the entire data set.

96. A multivariate data set contains:

 A. more than two observations.

 B. more than two categorical variables.

 C. more than two variables.

 D. more than two levels of measurement.

97. The Centers for Disease Control and Prevention (CDC) wants to estimate the average extra hospital stay that occurs when heart surgery patients experience postoperative atrial fibrillation. They divide the United States into nine regions. In each region, hospitals are selected at random within each hospital size group (small, medium, large). In each hospital, heart surgery patients are sampled according to known percentages by age group (under 50, 50 to 64, 65 and over) and gender (male, female). This procedure combines which sampling methods?

 A. Systematic, simple random, and convenience

 B. Convenience, systematic, and judgment

 C. Cluster, stratified, and simple random

 D. Judgment, systematic, and simple random

98. Which statement is correct?

 A. Selecting every fifth shopper arriving at a store will approximate a random sample of shoppers.

 B. Selecting only shoppers who drive SUVs is a stratified sampling method.

 C. A census is preferable to a sample for most business problems.

 D. Stratified samples are usually cheaper than other methods.

99. Which is a categorical variable?

 A. The brand of jeans you usually wear

 B. The price you paid for your last pair of jeans

 C. The distance to the store where you purchased your last pair of jeans

 D. The number of pairs of jeans that you own

100. Which is a discrete variable?

 A. The time it takes to put on a pair of jeans

 B. The price you paid for your last pair of jeans

 C. The distance to the store where you purchased your last pair of jeans

 D. The number of pairs of jeans that you own

101. A section of the population we have targeted for analysis is:

 A. a statistic.

 B. a frame.

 C. a sample.

 D. a coven.

102. Which is not a time series variable?

 A. Closing checkbook balances of 30 students on December 31 of this year

 B. Net earnings reported by Xena Corp. for the last 10 quarters

 C. Dollar/euro exchange rates at 12 noon GMT for the last 30 days

 D. Movie attendance at a certain theater for each Saturday last year

103. A good Likert scale may not have:

 A. unequal distances between scale points.

 B. an odd number of scale points.

 C. a verbal label on each scale point.

 D. verbal anchors at its end points.

104. A Likert scale with an odd number of scale points between “Strongly Agree” and “Strongly Disagree”:

 A. cannot have equal scale distances.

 B. cannot have a neutral middle point.

 C. must have a verbal label on each scale point.

 D. is often used in marketing surveys.

105. A Likert scale with an even number of scale points between “Strongly Agree” and “Strongly Disagree”:

 A. cannot have equal scale distances.

 B. is intended to prevent “neutral” choices.

 C. must have a verbal label on each scale point.

 D. is rarely used in surveys.

106. Which statement is correct?

 B. Web searches (e.g., Google) often yield unverifiable data.

 C. Government data sources (e.g., www.bls.gov) are often costly.

 D. Private statistical databases (e.g., CRSP) are usually free.

107. Which statement is correct?

 B. Web searches (e.g., Google) yield reliable and easily verified data.

 C. Government data sources (e.g., www.bls.gov) usually are free.

 D. Private statistical databases (e.g., CRSP) usually are free.

 108 Which survey method would you recommend to survey opinions of airline passengers about the cleanliness of the restrooms in the Detroit airport? Why not the others?

 109 What kind of sampling method would you suggest in order to tabulate the number of formulas on a typical page of the Doane-Seward textbook? Defend your choice.

 110 How would you design a study to see whether drivers using hands-free cell phones are distracted enough to slow their reactions to emergency situations? How would you collect data?

 111 Explain the concept of a focus group. In what ways does a focus group resemble a survey? Why is a moderator desirable? What else is required to make a successful focus group?

Chapter 02 Data Collection Answer Key

True / False Questions

 1 Categorical data have values that are described by words rather than numbers. TRUE Categories are nominal data but could also be ranked (e.g., sophomore, junior, senior).

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 2 Numerical data can be either discrete or continuous. TRUE Numerical data can be counts (e.g., cars owned) or continuous scales (e.g., height).

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 3 Categorical data are also referred to as nominal or qualitative data. TRUE Categories are nominal data (nonnumerical), sometimes called qualitative data.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 4 The number of checks processed at a bank in a day is an example of categorical data. FALSE Integers are actually numerical data.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 5 The number of planes per day that land at an airport is an example of discrete data. TRUE Integers are discrete numerical data.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 6 The weight of a bag of dog food is an example of discrete data. FALSE Weight is measured on a continuous scale.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 7 In last year’s annual report, Thompson Distributors indicated that it had 12 regional warehouses. This is an example of ordinal level data. FALSE “Number of” is a count, which is ratio data because a zero exists (better than ordinal).

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 8 Nominal data refer to data that can be ordered in a natural way. FALSE Nominal (categorical) data would be called ordinal only if categories can be ranked.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 9 This year, Oxnard University produced two football All-Americans. This is an example of continuous data. FALSE The “number of” anything is discrete.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 10 The type of statistical test that we can perform is independent of the level of measurement of the variable of interest. FALSE Some statistical operations are restricted unless you have ratio or interval data.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 11 Your weight recorded at your annual physical would not be ratio data, because you cannot have zero weight. FALSE Zero is only a reference point, not necessarily an observable data value.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 12 The level of measurement for categorical data is nominal. TRUE Categorical and nominal are equivalent terms.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 13 Temperature measured in degrees Fahrenheit is an example of interval data. TRUE For temperature, scale distances are meaningful (20 to 25 is the same as 50 to 55 degrees), and 0 degrees Fahrenheit does not mean the absence of heat, so it is not a ratio measurement.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 14 The closing price of a stock is an example of ratio data. TRUE True zero exists as a reference, whether or not it is observed.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 15 The Statistical Abstract of the United States is a huge annual compendium of data for the United States, and it is available online free of charge. TRUE A useful reference for business (e.g., for marketing, economics, or finance).

 AACSB: Technology Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-08 Find everyday print or electronic data sources. Topic: Data Sources

 16 Ordinal data can be treated as if it were nominal data but not vice versa. TRUE You can always go back to a lower level of measurement (but not vice versa).

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 17 Responses on a seven-point Likert scale are usually treated as ratio data. FALSE No true zero point exists on a Likert scale.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 18 Likert scales are especially important in opinion polls and marketing surveys. TRUE Likert scales are used in all kinds of surveys.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 19 Ordinal data are data that can be ranked based on some natural characteristic of the items. TRUE For example, the eras Jurassic, Paleozoic, and Mesozoic can be ranked in time.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 20 Ratio data are distinguished from interval data by the presence of a zero reference point. TRUE The true zero is a reference that need not be observable.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 21 It is better to attempt a census of a large population instead of relying on a sample. FALSE A census may founder on cost and time, while samples can be quick and accurate.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Concepts

 22 Judgment sampling and convenience sampling are nonrandom sampling techniques. TRUE To be random, every item must have the same chance of being chosen.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

 23 A problem with judgment sampling is that the sample may not reflect the population. TRUE While better than mere convenience, judgment may still have flaws.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

 24 When the population is large, a sample estimate is usually preferable to a census. TRUE A census may founder on cost and time, while samples can be quick and accurate.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Concepts

 25 Sampling error is avoidable by choosing the sample scientifically. FALSE Sampling error is unavoidable, though it can be reduced by careful sampling.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

 26 A sampling frame is used to identify the target population in a statistical study. TRUE Only some portion of the population may be targeted (e.g., independent voters).

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Concepts

 27 By taking a systematic sample, in which we select every 50th shopper arriving at a specific store, we are approximating a random sample of shoppers. TRUE There is no bias if this method is implemented correctly.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

 28 A worker collecting data from every other shopper who leaves a store is taking a simple random sample of customer opinion. FALSE Not unless the target population is customers who shopped today (cf., all customers).

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

 29 Creating a list of people by taking the third name listed on every 10th page of the phone book is an example of convenience sampling. FALSE This resembles two-stage cluster sampling combined with systematic sampling.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

 30 Internet surveys posted on popular websites have no bias since anyone can reply. FALSE Self-selection bias exists (respondents may be atypical).

 AACSB: Technology Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Topic: Surveys

 31 Analysis of month-by-month changes in stock market prices during the most recent recession would require the use of time series data. TRUE Data collected and recorded over time would be a time series.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 32 A cluster sample is a type of stratified sample that is based on geographical location. TRUE For example, sampling voters randomly within random zip codes.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

 33 An advantage of a systematic sample is that no list of enumerated data items is required. TRUE Systematic sampling works with a list (like random sampling) but also without one.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

 34 Telephone surveys often have a low response rate and fail to reach the desired population. TRUE Phone surveys are cheaper, but it is hard to avoid these problems.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Surveys

 35 Mail surveys are attractive because of their high response rates. FALSE Mail surveys have low response rates and invite self-selection bias.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Surveys

 36 A problem with convenience sampling is that the target population is not well defined. TRUE Convenience sampling is quick but not random, and the target population is unclear.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

 37 If you randomly sample 50 students about their favorite places to eat, the data collected would be referred to as cross-sectional data. TRUE Data for individuals would be a cross section (not a time series).

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 38 The number of FedEx shipping centers in each of 50 cities would be ordinal level data. FALSE The “number of” anything is ratio data because a true zero reference point exists.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 39 Internet surveys posted on popular websites such as MSN.com suffer from nonresponse bias. TRUE Nonresponse or self-selection bias is rampant in such surveys.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Surveys

 40 Different variables are usually shown as columns of a multivariate data set. TRUE It is customary to use a column for each variable, while each row is an observation.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Use basic terminology for describing data and samples. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 41 Each row in a multivariate data matrix is an observation (e.g., an individual response). TRUE It is customary to use a column for each variable, while each row is an observation.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Use basic terminology for describing data and samples. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 42 A bivariate data set has only two observations on a variable. FALSE Bivariate refers to the number of variables, not the number of observations.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Use basic terminology for describing data and samples. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 43 Running times for 3,000 runners in a 5k race would be a multivariate data set. FALSE Regardless of the number of observations, we have only one variable (running time).

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Use basic terminology for describing data and samples. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 44 Running times for 500 runners in a 5k race would be a univariate data set. TRUE Regardless of the number of observations, we have only one variable (running time).

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Use basic terminology for describing data and samples. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 45 A list of the salaries, ages, and years of experience for 50 CEOs is a multivariate data set. TRUE We would have a data matrix with 50 rows and 3 columns.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Use basic terminology for describing data and samples. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 46 The daily closing price of Apple stock over the past month would be a time series. TRUE Data collected over time is a time series.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 47 The number of words on 50 randomly chosen textbook pages would be cross-sectional data. TRUE Data were not collected over time, so we have cross-sectional data.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

 48 A Likert scale with an even number of scale points between “Strongly Agree” and “Strongly Disagree” is intended to prevent “neutral” choices. TRUE An even number of scale points (e.g., 4) forces the respondent to “lean” toward one end of the scale or the other.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

 49 Private statistical databases (e.g., CRSP) are usually free. FALSE Private research databases generally require a subscription (often expensive).

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-08 Find everyday print or electronic data sources. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Data Sources

Multiple Choice Questions

50. An investment firm rates bonds for AardCo Inc. as “B+,” while bonds of Deva Corp. are rated “AA.” Which level of measurement would be appropriate for such data?

 A. Nominal

 B. Ordinal

 C. Interval

 D. Ratio

Ranks are clear, but interval would require assumed equal scale distances (doubtful).

 Accessibility: Keyboard Navigation Blooms: Evaluate Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

51. Which variable is least likely to be regarded as ratio data?

 A. Length of time required for a randomly chosen vehicle to cross a toll bridge (minutes)

 B. Weight of a randomly chosen student (pounds)

 C. Number of fatalities in a randomly chosen traffic disaster (persons)

 D. Student’s evaluation of a professor’s teaching (Likert scale)

Likert scales have no true zero.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

52. Which of the following is numerical data?

 B. The brand of cell phone you own

 C. Whether you have an American Express card

 D. The fuel economy (MPG) of your car

Fuel economy is numerical.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

53. Measurements from a sample are called:

 A. statistics.

 B. inferences.

 C. parameters.

 D. variables.

A measurement calculated from a sample is a statistic.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

54. Quantitative variables use which two levels of measurement?

 A. Ordinal and ratio

 B. Interval and ordinal

 C. Nominal and ordinal

 D. Interval and ratio

Numerical (quantitative) data can be interval or ratio.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

55. Temperature in degrees Fahrenheit is an example of a(n) __________ variable.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

No true zero exists in temperature measurements except on the Kelvin scale.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

56. Using a sample to make generalizations about an aspect of a population is called:

 A. data mining.

 B. descriptive statistics.

 C. random sampling.

 D. statistical inference.

Generalizing from a sample to a population is an inference.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Concepts

57. Your telephone area code is an example of a(n) ____________ variable.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

Area codes are not even ranked, so just nominal.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

58. Which is least likely to be regarded as a ratio variable?

 A. A critic’s rating of a restaurant on a 1 to 4 scale

 B. Automobile exhaust emission of nitrogen dioxide (milligrams per mile)

 C. Number of customer complaints per day at a cable TV company office

 D. Cost of an eBay purchase

Ratings on a Likert scale have no meaningful zero.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

59. Automobile exhaust emission of CO2 (milligrams per mile) is ____________ data.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

True zero exists.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

60. Your rating of the food served at a local restaurant using a three-point scale of 0 = gross, 1 = decent, 2 = yummy is ___________ data.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

Only rankings implied (not equal scale distances).

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

61. The number of passengers “bumped” on a particular airline flight is ____________ data.

 A. nominal

 B. ordinal

 C. interval

 D. ratio

True zero exists (no passengers might be bumped).

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

62. Which should not be regarded as a continuous random variable?

 A. Tonnage carried by a randomly chosen oil tanker at sea

 B. Wind velocity at 7 o’clock this morning

 C. Number of personal fouls by the Miami Heat in a game

 D. Length of time to play a Wimbledon tennis match

Counting things yields integer (discrete) data.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

63. Which of the following is not true?

 A. Categorical data have values that are described by words rather than numbers.

 B. Categorical data are also referred to as nominal or qualitative data.

 C. The number of checks processed at a bank in a day is categorical data.

 D. Numerical data can be either discrete or continuous.

The “number of” anything is a discrete numerical variable.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

64. Which of the following is true?

 A. The type of charge card used by a customer (Visa, MasterCard, AmEx) is ordinal data.

 B. The duration (minutes) of a flight from Boston to Minneapolis is ratio data.

 C. The number of Nobel Prize-winning faculty at Oxnard University is continuous data.

 D. The number of regional warehouses owned by Jankord Industries is ordinal data.

True zero exists (not observable, but as a reference point), so ratios have meaning.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

65. Which statement is correct?

 A. Judgment sampling is preferred to systematic sampling.

 B. Sampling without replacement introduces bias in our estimates of parameters.

 C. Cluster sampling is useful when strata characteristics are unknown.

 D. Focus groups usually work best without a moderator.

Review the characteristics of each sampling method.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

66. A Likert scale:

 A. yields interval data if scale distances are equal.

 B. must have an odd number of scale points.

 C. must have a verbal label on each scale point.

 D. is rarely used in marketing surveys.

Marketers use Likert scales and try to make scales with meaningful intervals.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

67. Which is most nearly correct regarding sampling error?

 A. It can be eliminated by increasing the sample size.

 B. It cannot be eliminated by any statistical sampling method.

 C. It can be eliminated by using Excel’s =RANDBETWEEN() function.

 D. It can be eliminated by utilizing systematic random sampling.

Sampling involves error, though it can be minimized by proper methodology.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Concepts

68. Which statement is false?

 A. Random dialing phone surveys have low response and are poorly targeted.

 B. Selection bias means that many respondents dislike the interviewer.

 C. Simple random sampling requires a list of the population.

 D. Web surveys are economical but suffer from nonresponse bias.

Selection bias occurs when respondents are atypical.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Surveys

69. Judgment sampling is sometimes preferred over random sampling, for example, when:

 A. the desired sample size is much larger than the population.

 B. the sampling budget is large and the population is conveniently located.

 C. time is short and the sampling budget is limited.

 D. the population is readily accessible and sampling is nondestructive.

Judgment sampling can save time and may be better than mere convenience.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

70. An advantage of convenience samples is that:

 A. the required sample size is easier to calculate.

 B. sampling error can be reduced.

 C. computation of statistics is easier.

 D. they are often quicker and cheaper.

Convenience samples are quick, with a possible trade-off of accuracy.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

71. Before deciding whether to assess heavy fines against noisy airlines, which sampling method would the Federal Aviation Administration probably use to measure the peak noise from departing jets as measured by a ground-level observer at a point one mile from the end of the departure runway?

 B. Simple random sample.

 C. Judgment sample.

 D. Stratified sample.

From the cockpit, pilots can’t assess external noise levels, so a radio survey of pilots is not useful. Measurements must be taken from the ground. No list is available for the unpredictable mix of departing flights, so we can’t use a simple random sample. A judgment sample would not provide an objective basis for assessing fines. A reasonable option would be for ground observers to record the aircraft size, type, and carrier (airline) for each departing flight for a week and use this information to construct a stratified sample.

 Accessibility: Keyboard Navigation Blooms: Evaluate Difficulty: 3 Hard Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

72. Professor Hardtack chose a sample of 7 students from his statistics class of 35 students by picking every student who was wearing red that day. Which kind of sample is this?

 A. Simple random sample

 B. Judgment sample

 C. Systematic sample

 D. Convenience sample

Quick but may not be representative of all students.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

73. Thirty work orders are selected from a filing cabinet containing 500 work order folders by choosing every 15th folder. Which sampling method is this?

 A. Simple random sample

 B. Systematic sample

 C. Stratified sample

 D. Cluster sample

Classic systematic sample from an accessible but unlisted population.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

74. Which of the following is not a likely reason for sampling?

 A. The destructive nature of certain tests

 B. The physical impossibility of checking all the items in the population

 C. Prohibitive cost of studying the entire population

 D. The expense of obtaining random numbers

Random numbers are cheap (e.g., Excel).

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Concepts

75. Comparing a census of a large population to a sample drawn from it, we expect that the:

 A. sample is usually a more practical method of obtaining the desired information.

 B. accuracy of the observations in the census is surely higher than in the sample.

 C. sample must be a large fraction of the population to be accurate.

Census is often impractical, while samples can be extremely accurate.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Concepts

76. A stratified sample is sometimes recommended when:

 A. the sample size is very large.

 B. the population is small compared to the sample.

 C. distinguishable strata can be identified in the populations.

 D. the population is spread out geographically.

Identifiable strata such as gender, ethnicity, or region can be used.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

77. A random sample is one in which the:

 A. probability that an item is selected for the sample is the same for all population items.

 B. population items are selected haphazardly by experienced workers.

 C. items to be selected from the population are specified based on expert judgment.

 D. probability of selecting a population item depends on the item’s data value.

Each item must have the same chance of being picked if the sample is random.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

78. An advantage of convenience samples over random samples is that:

 A. they are easy to analyze.

 B. it is easier to determine the sample size needed.

 C. it is easier to calculate the sampling errors involved.

 D. data collection cost is reduced.

Convenience samples are often used because they are quick (but maybe not accurate).

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

79. To measure satisfaction with its cell phone service, AT&T takes a stratified sample of its customers by age, gender, and location. Which is an advantage of this type of sampling, as opposed to other sampling methods?

 A. It is less intrusive on customers’ privacy.

 B. It does not require random numbers.

 C. It gives faster results.

 D. It can give more accurate results.

Stratified sampling can yield more complete and accurate information.

 AACSB: Diversity Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Topic: Sampling Methods

80. An accounting professor wishing to know how many MBA students would take a summer elective in international accounting did a survey of the class she was teaching. Which kind of sample is this?

 A. Simple random sample

 B. Cluster sample

 C. Systematic sample

 D. Convenience sample

She may bias the estimate because only accounting students were surveyed.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

81. A binary variable (also called a dichotomous variable or dummy variable) has:

 A. only two possible values.

 B. continuous scale values.

 C. rounded data values.

 D. ordinal or interval values.

Binary variables are used in every field of business to code qualitative (nominal) data.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

82. A population has groups that have a small amount of variation within them, but large variation among or between the groups themselves. The proper sampling technique is:

 A. simple random.

 B. stratified.

 C. cluster.

 D. judgment.

Identifiable strata call for stratified sampling if you can afford the extra time and cost.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

83. A manager chose two people from his team of eight to give an oral presentation because she felt they were representative of the whole team’s views. What sampling technique did she use in choosing these two people?

 A. Convenience

 B. Simple random

 C. Judgment

 D. Cluster

Expert judgment may be better than just pointing a finger (we hope).

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

84. Sampling bias can best be reduced by:

 A. using appropriate data coding.

 B. having a computer tabulate the results.

 C. utilizing random sampling.

 D. taking a judgment sample.

Sampling error can’t be eliminated, but sampling bias can be avoided.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

85. A sampling technique used when groups are defined by their geographical location is:

 A. cluster sampling.

 B. convenience sampling.

 C. judgment sampling.

 D. random sampling.

Strata based on location can be targeted through cluster sampling.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

86. If we choose 500 random numbers using Excel’s function =RANDBETWEEN(1,99), we would most likely find that:

 A. numbers near the mean (50) would tend to occur more frequently.

 B. numbers near 1 and 99 would tend to occur less frequently.

 C. some numbers would occur more than once.

 D. the numbers would have a clear pattern.

On average, we’d expect each number to occur around five times.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

87. A problem with nonrandom sampling is that:

 A. larger samples need to be taken to reduce the sampling error inherent in this approach.

 B. not every item in the population has the same chance of being selected, as it should.

 C. it is usually more expensive than random sampling.

 D. it generally provides lower response rates than random sampling.

Only random sampling gives every item the same chance to be picked.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

88. From its 32 regions, the FAA selects 6 regions, and then randomly audits 25 departing commercial flights in each region for compliance with legal fuel and weight requirements. This is an example of:

 A. simple random sampling.

 B. stratified random sampling.

 C. cluster sampling.

 D. judgment sampling.

Two-stage cluster sampling is being used (a special form of stratification).

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

89. Which of the following is a correct statement?

 A. Choosing the third person listed on every fifth page of the phone book is stratified sampling.

 B. An advantage of a systematic sample is that no list of enumerated data items is required.

 C. Convenience sampling is used to study shoppers in convenience stores.

 D. Judgment sampling is an example of true random sampling.

Review the sampling methods and their characteristics.

 Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

90. Which of the following is false?

 A. Sampling error is the difference between the true parameter and the sample estimate.

 B. Sampling error is a result of unavoidable random variation in a sample.

 C. A sampling frame is chosen from the target population in a statistical study.

 D. The target population must first be defined by a full list or data file of all individuals.

Review the terminology of sampling.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Concepts

91. When we are choosing a random sample and we do not place chosen units back into the population, we are:

 A. sampling with replacement.

 B. sampling without replacement.

 C. using a systematic sample.

 D. using a voluntary sample.

Sampling without replacement avoids redundancy, yet nonreplacement is biased.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

92. Which method is likely to be used by a journalism student who is casually surveying opinions of students about the university’s cafeteria food for an article that she is writing?

 A. Simple random sample

 B. Systematic random sample

 C. Cluster sample

 D. Convenience sample

Quick and easy may trump true random sampling for a busy journalist.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

93. Which of the following is false?

 A. Mail surveys are cheap but have low response rates.

 B. Coverage error is when respondents give untruthful answers.

 C. Focus groups are nonrandom but can probe issues more deeply.

 D. Surveys posted on popular websites suffer from selection bias.

Coverage error is when you miss some segment of the target population.

 Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Surveys

94. Which is a time series variable?

 A. VISA balances of 30 students on December 31 of this year

 B. Net earnings reported by Xena Corp. for the last 10 quarters

 C. Dollar exchange rates yesterday against 10 other world currencies

 D. Titles of the top 10 movies in total revenue last week

If x1, x2,…, xn do not refer to n time periods, it isn’t a time series.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

95. An observation in a data set would refer to:

 A. only a variable whose value is recorded by visual inspection.

 B. a data item whose value is numerical (as opposed to categorical).

 C. a single row that contains one or more observed variables.

 D. the values of all the variables in the entire data set.

We usually put observations in rows on a spreadsheet, while each column is a variable.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Use basic terminology for describing data and samples. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

96. A multivariate data set contains:

 A. more than two observations.

 B. more than two categorical variables.

 C. more than two variables.

 D. more than two levels of measurement.

When you have more than two variables, it is multivariate data.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Use basic terminology for describing data and samples. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

97. The Centers for Disease Control and Prevention (CDC) wants to estimate the average extra hospital stay that occurs when heart surgery patients experience postoperative atrial fibrillation. They divide the United States into nine regions. In each region, hospitals are selected at random within each hospital size group (small, medium, large). In each hospital, heart surgery patients are sampled according to known percentages by age group (under 50, 50 to 64, 65 and over) and gender (male, female). This procedure combines which sampling methods?

 A. Systematic, simple random, and convenience

 B. Convenience, systematic, and judgment

 C. Cluster, stratified, and simple random

 D. Judgment, systematic, and simple random

Identifiable strata were sampled, but also random within strata and regional clusters.

 Accessibility: Keyboard Navigation Blooms: Evaluate Difficulty: 3 Hard Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

98. Which statement is correct?

 A. Selecting every fifth shopper arriving at a store will approximate a random sample of shoppers.

 B. Selecting only shoppers who drive SUVs is a stratified sampling method.

 C. A census is preferable to a sample for most business problems.

 D. Stratified samples are usually cheaper than other methods.

Done carefully, systematic sampling is close to random when there is no list.

 Accessibility: Keyboard Navigation Blooms: Evaluate Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Methods

99. Which is a categorical variable?

 A. The brand of jeans you usually wear

 B. The price you paid for your last pair of jeans

 C. The distance to the store where you purchased your last pair of jeans

 D. The number of pairs of jeans that you own

Categories have only names (e.g., Calvin Klein).

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

100. Which is a discrete variable?

 A. The time it takes to put on a pair of jeans

 B. The price you paid for your last pair of jeans

 C. The distance to the store where you purchased your last pair of jeans

 D. The number of pairs of jeans that you own

The “number of” anything is discrete numerical data.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Variables and Data

101. A section of the population we have targeted for analysis is:

 A. a statistic.

 B. a frame.

 C. a sample.

 D. a coven.

We must define the segment we want to look at (e.g., independent voters).

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-06 Use the correct terminology for samples and populations. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Sampling Concepts

102. Which is not a time series variable?

 A. Closing checkbook balances of 30 students on December 31 of this year

 B. Net earnings reported by Xena Corp. for the last 10 quarters

 C. Dollar/euro exchange rates at 12 noon GMT for the last 30 days

 D. Movie attendance at a certain theater for each Saturday last year

If x1, x2,…, xn do not refer to n time periods, it isn’t a time series.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-03 Explain the difference between time series and cross-sectional data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

103. A good Likert scale may not have:

 A. unequal distances between scale points.

 B. an odd number of scale points.

 C. a verbal label on each scale point.

 D. verbal anchors at its end points.

Surveys try to create scales with meaningful intervals.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-02 Explain the difference between numerical and categorical data. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

104. A Likert scale with an odd number of scale points between “Strongly Agree” and “Strongly Disagree”:

 A. cannot have equal scale distances.

 B. cannot have a neutral middle point.

 C. must have a verbal label on each scale point.

 D. is often used in marketing surveys.

Likert scales should have arguably equal intervals. A middle neutral response is possible with an odd number of scale points (e.g., 5 or 7).

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

105. A Likert scale with an even number of scale points between “Strongly Agree” and “Strongly Disagree”:

 A. cannot have equal scale distances.

 B. is intended to prevent “neutral” choices.

 C. must have a verbal label on each scale point.

 D. is rarely used in surveys.

Likert scales should have arguably equal intervals. An even number of scale points (e.g., 4) forces the respondent to “lean” toward one end of the scale or the other.

 Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-05 Recognize a Likert scale and know how to use it. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Level of Measurement

106. Which statement is correct?

 B. Web searches (e.g., Google) often yield unverifiable data.

 C. Government data sources (e.g., www.bls.gov) are often costly.

 D. Private statistical databases (e.g., CRSP) are usually free.

Periodicals are often up-to-date and readily available data sources. Web data may be unreliable, and searches may be directed toward obtaining payment for data. Private research databases generally require a subscription, while government data sources generally are free.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-08 Find everyday print or electronic data sources. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Data Sources

107. Which statement is correct?

 B. Web searches (e.g., Google) yield reliable and easily verified data.

 C. Government data sources (e.g., www.bls.gov) usually are free.

 D. Private statistical databases (e.g., CRSP) usually are free.

Periodicals are often up-to-date and readily available data sources. Web data may be unreliable, and searches may be directed toward obtaining payment for data. Private research databases generally require a subscription, while government data sources generally are free.

 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-08 Find everyday print or electronic data sources. Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales. Topic: Data Sources

 108 Which survey method would you recommend to survey opinions of airline passengers about the cleanliness of the restrooms in the Detroit airport? Why not the others? Restroom users are usually in a hurry and do not wish to talk to anyone while entering or leaving the facility, so direct observation or handout surveys would not work. A questionnaire could be e-mailed or mailed to a sample of frequent flyers. No telephone surveys, because people would distrust the call. A web survey would have nonresponse bias. Feedback: This is a difficult sampling problem. Restroom users are usually in a hurry and do not wish to talk to anyone while entering or leaving the facility. Thus, direct observation or handout surveys would not work. Perhaps a questionnaire could be e-mailed or mailed to a sample of frequent flyers who departed or arrived at this airport in a recent month, if a major airline were willing to cooperate. This assumes that frequent flyers are a reasonable target population. You would probably not use a telephone survey, because people would distrust the call. A web survey would have nonresponse bias (i.e., respondents would probably be those with a gripe). Students may digress into sampling methods (random, systematic, cluster, stratified) instead of survey types. Ingenious students may propose other novel methods of sampling opinions.

 AACSB: Reflective Thinking Blooms: Evaluate Difficulty: 3 Hard Topic: Surveys

 109 What kind of sampling method would you suggest in order to tabulate the number of formulas on a typical page of the Doane-Seward textbook? Defend your choice. Pages are numbered, so a simple random sample would be easy, or a systematic sample (e.g., every 20th page starting at page 17). Case could be made for cluster or stratified samples (e.g., by chapter or topic). Feedback: Since the pages are numbered, a simple random sample would be quite easy. Have Excel print n random integers between 001 and 773 (or whatever the length of the book is). You would want to exclude the table of contents, appendixes, indexes, and so on). Another good choice would be a systematic sample (e.g., every 20th page starting at page 17) or a variation such as every page divisible by 20. These methods would be unbiased. Possible cases could be made for cluster or stratified samples (e.g., by chapter or topical area), but these might offer little gain.

 AACSB: Reflective Thinking Blooms: Evaluate Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Topic: Sampling Methods

 110 How would you design a study to see whether drivers using hands-free cell phones are distracted enough to slow their reactions to emergency situations? How would you collect data? No observation of drivers (too dangerous). Tests using a simulator would permit data to be collected automatically and would permit stratified sampling by driver characteristics (e.g., age group, gender, cell phone type). Feedback: Don’t use direct observation of drivers (too dangerous). Tests using a simulator would permit data to be collected automatically on reaction times to emergencies. This would permit stratified sampling by driver characteristics (e.g., age group, gender, cell phone type). Many answers are possible. The emphasis should be on how carefully the student has thought about the question. Beware of simplistic answers or impossible data collection schemes.

 AACSB: Reflective Thinking Blooms: Evaluate Difficulty: 3 Hard Topic: Surveys

 111 Explain the concept of a focus group. In what ways does a focus group resemble a survey? Why is a moderator desirable? What else is required to make a successful focus group? Data collected in a focus group are richer in qualitative details and may contain information that would be missed in a survey. A trained moderator can help keep the group on track and manage interpersonal issues that may arise. Feedback: Data collected in a focus group are richer in qualitative details, and may contain information that would be missed in a survey. Yet a focus group is like a survey in that it seeks to extract useful information and patterns from individuals. Participants are not chosen completely at random, but rather are selected to represent different backgrounds and diverse viewpoints of interest to the researchers. A well-trained moderator can help keep the group on track and manage interpersonal issues that may arise.

 AACSB: Reflective Thinking Blooms: Evaluate Difficulty: 2 Medium Learning Objective: 02-07 Explain the common sampling methods and how to implement them. Topic: Sampling Methods

Chapter 16

Nonparametric Tests

True / False Questions

 1 Nonparametric tests can be used in small samples. True    False

 2 Nonparametric tests may require special tables for small samples. True    False

 3 Nonparametric tests generally are more powerful than parametric tests when normality cannot be assumed. True    False

 4 Parametric tests generally are more powerful than nonparametric tests when normality can be assumed. True    False

 5 Rejection of a hypothesis using a nonparametric test is less convincing than using an equivalent parametric test, since nonparametric tests generally make fewer assumptions. True    False

 6 Rejection of a hypothesis using a nonparametric test is more convincing than using an equivalent parametric test when the data are badly skewed. True    False

 7 If the population is normal, we would usually prefer a nonparametric test. True    False

 8 Most nonparametric tests assume ordinal data. True    False

 9 Most nonparametric tests require data measured on a ratio scale. True    False

 10 The one-sample runs test compares medians of two or more groups. True    False

 11 The one-sample runs test uses binary data (only two possible values). True    False

 12 The Spearman rank correlation test compares medians of two paired data sets. True    False

 13 The one-sample runs test uses a test statistic that is normally distributed, as long as the number of runs of each type is large enough. True    False

 14 The one-sample runs test is useful to detect nonrandom patterns in time-series data. True    False

 15 The one-sample runs test is similar to a test for autocorrelation. True    False

 16 The one-sample runs test is also called the Wald-Wolfowitz test named after its inventors. True    False

 17 The Wilcoxon signed-rank test is useful to compare one sample median with a benchmark. True    False

 18 The Wilcoxon signed-rank test is useful to compare more than two sample medians. True    False

 19 The Wilcoxon signed-rank test is analogous to a one-sample parametric test of a mean. True    False

 20 The Wilcoxon signed-rank test is analogous to a parametric two-sample t test of means from independent samples. True    False

 21 The Wilcoxon signed-rank test is analogous to a parametric t test comparing three or more medians. True    False

 22 The Wilcoxon signed-rank test is robust to outliers in the data if the population is at least somewhat symmetric. True    False

 23 The Wilcoxon signed-rank test does not assume a normal population, but it does require a roughly symmetric population. True    False

 24 The Wilcoxon signed-rank test is less powerful than a one-sample test of a mean when the population is actually normal. True    False

 25 The Wilcoxon signed-rank test has good power over a range of nonnormal populations. True    False

 26 The Wilcoxon signed-rank test is an alternative to the one-sample t test for paired observations. True    False

 27 The Wilcoxon rank sum test (Mann-Whitney test) can be used as a test for equality of two population medians. True    False

 28 The Wilcoxon rank sum test (Mann-Whitney test) requires two independent samples. True    False

 29 The Wilcoxon rank sum test (Mann-Whitney test) can be used even if population variances are unequal. True    False

 30 The Wilcoxon rank sum test (Mann-Whitney test) utilizes the ranks of two independent samples. True    False

 31 The Mann-Whitney test is sometimes called the “Wilcoxon rank sum test” because it was formulated independently by different statisticians. True    False

 32 We sometimes call the Wilcoxon rank sum test the Mann/Whitney test, but the two are the same. True    False

 33 The Mann-Whitney test is analogous to a one-sample t test comparing a mean with a benchmark. True    False

 34 The Kruskal-Wallis test requires c independent samples (where usually c > 2). True    False

 35 The Kruskal-Wallis test applies even if the c samples to be compared are not independent. True    False

 36 The Kruskal-Wallis test is analogous to the one-sample parametric t test for a mean. True    False

 37 The Kruskal-Wallis test is analogous to the parametric one-factor ANOVA. True    False

 38 The Kruskal-Wallis test does not require normal populations, but it does require them to be of similar shape. True    False

 39 The Kruskal-Wallis test is equivalent to comparing medians in c groups. True    False

 40 The Kruskal-Wallis test is a test for randomness in sequential data. True    False

 41 The Kruskal-Wallis test is less useful in finance or marketing, because normal populations can usually be assumed in financial or marketing data. True    False

 42 The Kruskal-Wallis test is almost as powerful as one-factor ANOVA even when normality can be assumed. True    False

 43 The Friedman test is a nonparametric equivalent to two-factor ANOVA without replication. True    False

 44 The Friedman test is a nonparametric equivalent to a parametric one-sample t test comparing a mean with a benchmark. True    False

 45 The Friedman test requires groups of equal size. True    False

 46 The Friedman test compares medians when there are two grouping factors (rows, columns). True    False

 47 The Friedman test resembles the Kruskal-Wallis test except that there are two grouping factors (rows, columns) instead of one grouping factor (columns). True    False

 48 The Friedman test is often almost as powerful as two-factor ANOVA without replication (randomized block design). True    False

 49 Spearman’s rank correlation always lies within the range -1.00 to +1.00. True    False

 50 Spearman’s rank correlation coefficient lies within the range 0 to 1.00 inclusive. True    False

 51 Spearman’s rank correlation is named for a British brewer who was testing beer samples. True    False

 52 Spearman’s rank correlation is named for a British behavioral psychologist who was studying human intelligence. True    False

 53 Spearman’s rank correlation is used to measure agreement in rankings of paired (x, y) data. True    False

Multiple Choice Questions

54. All of these are nonparametric tests except:

 A. Spearman rank correlation test.

 B. Friedman test.

 C. Student’s t test.

 D. Kruskal-Wallis test.

55. Which nonparametric test is analogous to a parametric two-sample t test for means?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

56. Which nonparametric test is analogous to a parametric k-sample test for means?

 A. Kruskal-Wallis test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Wald-Wolfowitz one-sample runs test

57. Which nonparametric test is used to compare a one-sample median with a benchmark?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

58. Which nonparametric test has no parametric counterpart?

 A. Wald-Wolfowitz one-sample runs test

 B. Spearman rank correlation test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

59. Which nonparametric test is analogous to a parametric one-sample t test for differences in paired data?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

60. Which nonparametric test would we use to compare ratings assigned to n pairs of bonds by two different rating agencies, if the bonds are rated on an ordinal scale (Aaa, Aa, A, Baa, Ba B, etc.)?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

61. Which is not true of the one-sample runs test?

 A. It is also called the Wald-Wolfowitz test named after its inventors.

 B. Its purpose is to detect nonrandomness.

 C. It cannot be applied to sequential observations.

 D. It is similar to a test for autocorrelation.

62. Which nonparametric test is used to detect nonrandomness in sequential observations?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

63. Which is a nonparametric test for runs (autocorrelation) in a sequence of binary data?

 A. Kruskal-Wallis test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Wald-Wolfowitz one-sample runs test

64. Which parametric test resembles the nonparametric Spearman’s rank test?

 A. t test of a correlation coefficient

 B. t test of two sample means

 C. t test of one sample mean

 D. F test of variances

65. Which nonparametric test is used to test for agreement in ranks of paired data?

 A. Spearman test

 B. Friedman test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

66. Twenty customers are randomly chosen and each is given a sample of Nut Butter ice cream to taste. The customers rank the taste of the ice cream on a 10-point scale. Each is then given a sample of Chewy Gooey ice cream to taste and rank on a 10-point scale. Based on the 20 customers’ ratings of each flavor, the research analyst conducting the survey wishes to determine if one flavor is preferred over the other. Which nonparametric test would you use to determine if there is a difference in the ratings?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

67. Which is not a characteristic of the Wilcoxon rank sum (Mann-Whitney) test?

 A. It can be used as a test for equality of two population medians.

 B. It is analogous to a one-sample t test comparing a mean with a benchmark.

 C. It requires independent samples from populations with equal variances.

 D. It is similar to one-factor ANOVA when we have c independent samples.

68. Delta Air Lines wants to determine if the number of no-shows for flights originating from Detroit is higher than from Minneapolis. A sample of 20 flights from each city is taken and the number of no-shows is determined for each flight. Which nonparametric test would you use to determine whether the number of no-shows is greater in Detroit?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

69. The dean of Oxnard business school wants to know if there is a difference in computer skills in four majors (marketing, finance, operations, accounting). A 20-question skills test is given to 10 randomly chosen students in each major. Which nonparametric test could be used by the dean to see if there is a difference in computer skills of students in the various majors?

 A. Wald-Wolfowitz test

 B. Wilcoxon signed-rank test

 C. Mann-Whitney test

 D. Kruskal-Wallis test

70. Which is not a characteristic of the Kruskal-Wallis test?

 A. It is analogous to the parametric one-factor ANOVA.

 B. It does not make any assumptions about the populations.

 C. It is useful in comparing the medians in c groups.

 D. It does not require normal distributions of populations.

71. Individuals in four different age groups are asked to rate, on a scale of 1 to 10, three flavors of ice creams. Each group has the same number of individuals. Median ratings by the individuals are grouped by the flavor of ice cream and by age group. Which nonparametric test could be used to see if there is a difference in median ratings among the four age groups and three flavors?

 A. Wilcoxon signed-rank test

 B. Friedman test

 C. Mann-Whitney test

 D. Kruskal-Wallis test

72. Which nonparametric test is analogous to a two-factor ANOVA without replication?

 A. Wilcoxon signed-rank test

 B. Friedman test

 C. Mann-Whitney test

 D. Kruskal-Wallis test

73. If there are three or more populations with ordinal data, what is the appropriate test to determine whether the distributions are equal?

 A. Friedman test

 B. t test

 C. ANOVA

 D. Kruskal-Wallis test

74. Hoping to reduce the waiting time, a doctor’s office tried a new way of scheduling its appointments. Populations of waiting times are believed to be similar except in central tendency. However, waiting times may not be normally distributed, so a nonparametric test was chosen to compare the waiting times. The Wilcoxon/Mann-Whitney test results are shown below:

Which is the best conclusion?

 A. The medians differ at α = .01.

 B. The means differ at α = .01.

 C. The samples differ at α = .01.

 D. There are no differences at α = .01.

75. At the Food Barn, children can order from the adult menu (A) or the child’s menu (C). Below is the pattern of menu orders for 24 children last Wednesday evening.

A, A, A, A, C, A, A, C, C, C, A, A, A, A, A, A, C, C, C, A, C, C, C, C

Which test would you choose to see if this pattern is random?

 A. Kruskal-Wallis test

 B. Wilcoxon rank sum (Mann-Whitney) test

 C. Wald-Wolfowitz one-sample runs test

 D. Wilcoxon test

76. At the Food Barn, children can order from the adult menu (A) or the child’s menu (C). Below is the pattern of menu orders for 24 children last Wednesday evening.

A, A, A, A, C, A, A, C, C, C, A, A, A, A, A, A, C, C, C, A, C, C, C, C

Which statement is most accurate?

 A. Neither sample size (for outcomes A or C) is large enough for a runs test using z.

 B. Both sample sizes (for outcomes A and C) are large enough for a runs test using z.

 C. Only one outcome has a large enough sample for a runs test using z.

 D. This type of data would not be suited for a runs test using z.

77. A clinic has four doctors. They wish to compare the amount of time that doctors spend with their patients. It is suspected that times may not be normally distributed but are otherwise assumed similar except in center, so a nonparametric test was chosen. The Kruskal-Wallis test results are shown below.

Which is the best conclusion?

 A. The doctors have the same median times at α = .01.

 B. The doctors have different median times at α = .01.

 C. The sample size is insufficient for this kind of test.

 D. A one-factor ANOVA would be a better kind of test.

78. Returns on an investor’s stock portfolio (n = 19 stocks) are compared for the same stock in each of two consecutive quarters. Since the returns are not normally distributed (normality test p-values were .005 and .126 respectively), a nonparametric test was chosen. The test results are shown below.

Which is the best conclusion?

 A. The means are the same at α = .01.

 B. The medians are the same at α = .01.

 C. The means differ at α = .01.

 D. The medians differ at α = .01.

79. Returns on an investor’s stock portfolio (n = 19 stocks) are compared for the same stock in each of two consecutive quarters. Since the returns are not normally distributed (normality test p-values were .005 and .126 respectively), a nonparametric test was chosen. The test results are shown below.

Which is the best conclusion?

 A. The returns are correlated neither at α = .05 nor at α = .01.

 B. The returns are correlated at α = .05 but not at α = .01.

 C. The returns are correlated at α = .01 but not at α = .05.

 D. The returns are correlated both at α = .05 and at α = .01.

80. Attendees at an outdoor concert can buy pavilion tickets (A) or lawn tickets (B). Below is the output for the one-sample runs to test whether there is a pattern in 32 consecutive ticket purchases.

The best conclusion at α = .05 would be:

 A. the pattern is random.

 B. there is a difference in medians.

 C. the sample sizes are too small.

 D. the sample sizes must be equal.

81. To compare the cost of three shipping methods, a firm shipped five orders to each of four different destinations over a six-month period. Their total shipping costs are shown below.

Which nonparametric test would you use to compare the median shipping costs among destinations and among shippers?

 A. Friedman test

 B. Kruskal-Wallis test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Lebesgue-Stieltjes test

82. At the Seymour Clinic, the total number of patients seen by three doctors over three days is as follows:

Which nonparametric test would you use to compare the median number of patients seen by the doctors on each day?

 A. Wilcoxon test

 B. Kruskal-Wallis test

 C. Anderson-Darling test

 D. Friedman test

83. Systolic blood pressure of randomly selected HMO patients was recorded on a particular Wednesday, with the results shown here:

The appropriate hypothesis test to compare the medians is:

 A. Wilcoxon test.

 B. Kruskal-Wallis test.

 C. Levene’s test.

 D. Friedman test.

84. You do not wish to assume normality in the population, yet you wish to compare central tendency in c samples. You decide to utilize MegaStat, whose menu is shown here:

 A. Hypothesis Tests

 B. Nonparametric Tests

 C. Correlation/Regression

 D. Analysis of Variance

85. You do not wish to assume normality in the population, yet you wish to compare central tendency in c samples. You decide to utilize MINITAB, whose menu is shown here:

 A. ANOVA

 B. Regression

 C. Nonparametrics

 D. EDA

Chapter 16 Nonparametric Tests Answer Key

True / False Questions

 1 Nonparametric tests can be used in small samples. TRUE Special tables (or suitable software) are required when sample sizes are small.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

 2 Nonparametric tests may require special tables for small samples. TRUE Special tables (or suitable computer software) will be required for small samples.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

 3 Nonparametric tests generally are more powerful than parametric tests when normality cannot be assumed. TRUE When justified, parametric tests generally have more power (but at the cost of making more restrictive assumptions).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

 4 Parametric tests generally are more powerful than nonparametric tests when normality can be assumed. TRUE When justified, parametric tests generally have more power.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

 5 Rejection of a hypothesis using a nonparametric test is less convincing than using an equivalent parametric test, since nonparametric tests generally make fewer assumptions. FALSE Rejection in a nonparametric test is persuasive because fewer assumptions are made.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

 6 Rejection of a hypothesis using a nonparametric test is more convincing than using an equivalent parametric test when the data are badly skewed. TRUE Rejection in a nonparametric test is persuasive when normality is in doubt.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

 7 If the population is normal, we would usually prefer a nonparametric test. FALSE When justified, parametric tests generally have more power.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

 8 Most nonparametric tests assume ordinal data. TRUE Many nonparametric tests convert ratio or interval data into ranks (ordinal data).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

 9 Most nonparametric tests require data measured on a ratio scale. FALSE Many nonparametric tests convert ratio or interval data into ranks (ordinal data).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

 10 The one-sample runs test compares medians of two or more groups. FALSE The runs test checks for randomness.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

 11 The one-sample runs test uses binary data (only two possible values). TRUE Data may be any sequence of two values (e.g., + or -).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

 12 The Spearman rank correlation test compares medians of two paired data sets. FALSE To compare medians we use a Mann-Whitney test (Wilcoxon rank sum test).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-07 Use the Spearman rank correlation test. Topic: Spearman Rank Correlation Test

 13 The one-sample runs test uses a test statistic that is normally distributed, as long as the number of runs of each type is large enough. TRUE As long as we have enough runs of each type, we can use a normal z test.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

 14 The one-sample runs test is useful to detect nonrandom patterns in time-series data. TRUE Random pattern is essentially the null hypothesis.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

 15 The one-sample runs test is similar to a test for autocorrelation. TRUE We can use the runs test to check for autocorrelation in regression residuals.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

 16 The one-sample runs test is also called the Wald-Wolfowitz test named after its inventors. TRUE Wald and Wolfowitz first demonstrated the runs test, so it goes by either name.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

 17 The Wilcoxon signed-rank test is useful to compare one sample median with a benchmark. TRUE The null hypothesis is for one population median versus a target or benchmark.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 18 The Wilcoxon signed-rank test is useful to compare more than two sample medians. FALSE For two medians, we would use the Wilcoxon rank sum test (Mann-Whitney test).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 19 The Wilcoxon signed-rank test is analogous to a one-sample parametric test of a mean. TRUE The idea is to test a measure of center (in this case, a median) against a benchmark.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 20 The Wilcoxon signed-rank test is analogous to a parametric two-sample t test of means from independent samples. FALSE For two medians, we would use the Wilcoxon rank sum test (Mann-Whitney test).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 21 The Wilcoxon signed-rank test is analogous to a parametric t test comparing three or more medians. FALSE The null hypothesis is for one population median versus a target or benchmark.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 22 The Wilcoxon signed-rank test is robust to outliers in the data if the population is at least somewhat symmetric. TRUE The test does require reasonably symmetric populations.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 23 The Wilcoxon signed-rank test does not assume a normal population, but it does require a roughly symmetric population. TRUE The test does require reasonably symmetric populations.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 24 The Wilcoxon signed-rank test is less powerful than a one-sample test of a mean when the population is actually normal. TRUE When justified, a t test of a mean would generally be more powerful.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 25 The Wilcoxon signed-rank test has good power over a range of nonnormal populations. TRUE Studies show good power when populations are not too skewed.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 26 The Wilcoxon signed-rank test is an alternative to the one-sample t test for paired observations. TRUE One version of the Wilcoxon signed-rank test utilizes paired data.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

 27 The Wilcoxon rank sum test (Mann-Whitney test) can be used as a test for equality of two population medians. TRUE This test for identical populations is a test of medians if variances are equal.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

 28 The Wilcoxon rank sum test (Mann-Whitney test) requires two independent samples. TRUE Samples must be independent.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

 29 The Wilcoxon rank sum test (Mann-Whitney test) can be used even if population variances are unequal. FALSE WMW is a test for identical populations, but it is a test for equal medians if variances are equal.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

 30 The Wilcoxon rank sum test (Mann-Whitney test) utilizes the ranks of two independent samples. TRUE Raw data in each sample are converted into ranks.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

 31 The Mann-Whitney test is sometimes called the “Wilcoxon rank sum test” because it was formulated independently by different statisticians. TRUE This test has two names.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

 32 We sometimes call the Wilcoxon rank sum test the Mann/Whitney test, but the two are the same. TRUE This test has two names.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

 33 The Mann-Whitney test is analogous to a one-sample t test comparing a mean with a benchmark. FALSE The Wilcoxon rank sum test (Mann-Whitney test) compares two populations.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

 34 The Kruskal-Wallis test requires c independent samples (where usually c > 2). TRUE Kruskal-Wallis compares several populations.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

 35 The Kruskal-Wallis test applies even if the c samples to be compared are not independent. FALSE Samples must be independent in the Kruskal-Wallis test.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

 36 The Kruskal-Wallis test is analogous to the one-sample parametric t test for a mean. FALSE Kruskal-Wallis compares several populations.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

 37 The Kruskal-Wallis test is analogous to the parametric one-factor ANOVA. TRUE Kruskal-Wallis compares c population medians (similar to comparing c means).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

 38 The Kruskal-Wallis test does not require normal populations, but it does require them to be of similar shape. TRUE Kruskal-Wallis is a test for identical populations but becomes a test for equal medians if population shapes are the same.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

 39 The Kruskal-Wallis test is equivalent to comparing medians in c groups. TRUE Kruskal-Wallis is a test for identical populations, but it becomes a test for equal medians if population shapes are the same.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

 40 The Kruskal-Wallis test is a test for randomness in sequential data. FALSE Kruskal-Wallis compares c population medians. To test for randomness, you would use a runs test rather than a Kruskal-Wallis test.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

 41 The Kruskal-Wallis test is less useful in finance or marketing, because normal populations can usually be assumed in financial or marketing data. FALSE Normal populations are rare in many business applications, so the K-W test is useful.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

 42 The Kruskal-Wallis test is almost as powerful as one-factor ANOVA even when normality can be assumed. TRUE Studies suggest that the K-W test is about as powerful as the F test (ANOVA).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

 43 The Friedman test is a nonparametric equivalent to two-factor ANOVA without replication. TRUE Unreplicated ANOVA data can be tested using the Friedman test.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

 44 The Friedman test is a nonparametric equivalent to a parametric one-sample t test comparing a mean with a benchmark. FALSE The Friedman test is a nonparametric equivalent to two-factor ANOVA without replication.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

 45 The Friedman test requires groups of equal size. TRUE By definition, there must be one observation per cell.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

 46 The Friedman test compares medians when there are two grouping factors (rows, columns). TRUE We can think of the Friedman test as comparing medians if population shape is similar.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

 47 The Friedman test resembles the Kruskal-Wallis test except that there are two grouping factors (rows, columns) instead of one grouping factor (columns). TRUE The Friedman test is analogous to unreplicated two-factor ANOVA.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

 48 The Friedman test is often almost as powerful as two-factor ANOVA without replication (randomized block design). TRUE The Friedman test has good power versus two-factor unreplicated ANOVA.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

 49 Spearman’s rank correlation always lies within the range -1.00 to +1.00. TRUE Spearman’s rho lies between -1 and +1.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-07 Use the Spearman rank correlation test. Topic: Spearman Rank Correlation Test

 50 Spearman’s rank correlation coefficient lies within the range 0 to 1.00 inclusive. FALSE Spearman’s rho lies between -1 and +1.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-07 Use the Spearman rank correlation test. Topic: Spearman Rank Correlation Test

 51 Spearman’s rank correlation is named for a British brewer who was testing beer samples. FALSE Charles Spearman was a behavioral psychologist.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-07 Use the Spearman rank correlation test. Topic: Spearman Rank Correlation Test

 52 Spearman’s rank correlation is named for a British behavioral psychologist who was studying human intelligence. TRUE Charles Spearman was a behavioral psychologist studying human IQs.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-07 Use the Spearman rank correlation test. Topic: Spearman Rank Correlation Test

 53 Spearman’s rank correlation is used to measure agreement in rankings of paired (x, y) data. TRUE Spearman’s rho is similar in this regard to the usual (Pearson) correlation.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-07 Use the Spearman rank correlation test. Topic: Spearman Rank Correlation Test

Multiple Choice Questions

54. All of these are nonparametric tests except:

 A. Spearman rank correlation test.

 B. Friedman test.

 C. Student’s t test.

 D. Kruskal-Wallis test.

Student’s t test (Chapter 10) is a parametric test.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

55. Which nonparametric test is analogous to a parametric two-sample t test for means?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

The Wilcoxon rank sum (Mann-Whitney) test compares medians (assuming that populations have similar shape).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

56. Which nonparametric test is analogous to a parametric k-sample test for means?

 A. Kruskal-Wallis test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Wald-Wolfowitz one-sample runs test

The K-W test compares medians (assuming populations have similar shape).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

57. Which nonparametric test is used to compare a one-sample median with a benchmark?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

The Wilcoxon signed-rank test compares a median with a benchmark or target.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

58. Which nonparametric test has no parametric counterpart?

 A. Wald-Wolfowitz one-sample runs test

 B. Spearman rank correlation test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

The runs test is not quite like any parametric test.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

59. Which nonparametric test is analogous to a parametric one-sample t test for differences in paired data?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

One version of the Wilcoxon signed-rank test is for paired data.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

60. Which nonparametric test would we use to compare ratings assigned to n pairs of bonds by two different rating agencies, if the bonds are rated on an ordinal scale (Aaa, Aa, A, Baa, Ba B, etc.)?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

One version of the Wilcoxon signed-rank test is for paired data.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

61. Which is not true of the one-sample runs test?

 A. It is also called the Wald-Wolfowitz test named after its inventors.

 B. Its purpose is to detect nonrandomness.

 C. It cannot be applied to sequential observations.

 D. It is similar to a test for autocorrelation.

The runs test is for randomness in a sequence of two-valued data (e.g., + and -).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

62. Which nonparametric test is used to detect nonrandomness in sequential observations?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

The runs test is for randomness in a sequence of two-valued data (e.g., + and -).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

63. Which is a nonparametric test for runs (autocorrelation) in a sequence of binary data?

 A. Kruskal-Wallis test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Wald-Wolfowitz one-sample runs test

The runs test is for randomness in a sequence of two-valued data (e.g., + and -).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

64. Which parametric test resembles the nonparametric Spearman’s rank test?

 A. t test of a correlation coefficient

 B. t test of two sample means

 C. t test of one sample mean

 D. F test of variances

The t test of a correlation coefficient can be used to test for zero correlation.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 16-07 Use the Spearman rank correlation test. Topic: Spearman Rank Correlation Test

65. Which nonparametric test is used to test for agreement in ranks of paired data?

 A. Spearman test

 B. Friedman test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

To see if the ranks agree, we could use Spearman’s rho.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: 16-07 Use the Spearman rank correlation test. Topic: Spearman Rank Correlation Test

66. Twenty customers are randomly chosen and each is given a sample of Nut Butter ice cream to taste. The customers rank the taste of the ice cream on a 10-point scale. Each is then given a sample of Chewy Gooey ice cream to taste and rank on a 10-point scale. Based on the 20 customers’ ratings of each flavor, the research analyst conducting the survey wishes to determine if one flavor is preferred over the other. Which nonparametric test would you use to determine if there is a difference in the ratings?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

For two independent samples, use the Wilcoxon rank sum test (Mann-Whitney).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

67. Which is not a characteristic of the Wilcoxon rank sum (Mann-Whitney) test?

 A. It can be used as a test for equality of two population medians.

 B. It is analogous to a one-sample t test comparing a mean with a benchmark.

 C. It requires independent samples from populations with equal variances.

 D. It is similar to one-factor ANOVA when we have c independent samples.

The Wilcoxon/Mann-Whitney test uses two samples (not c samples).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

68. Delta Air Lines wants to determine if the number of no-shows for flights originating from Detroit is higher than from Minneapolis. A sample of 20 flights from each city is taken and the number of no-shows is determined for each flight. Which nonparametric test would you use to determine whether the number of no-shows is greater in Detroit?

 A. Wald-Wolfowitz one-sample runs test

 B. Wilcoxon signed-rank test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Kruskal-Wallis test

For two independent samples, use the Wilcoxon rank sum test (Mann-Whitney).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

69. The dean of Oxnard business school wants to know if there is a difference in computer skills in four majors (marketing, finance, operations, accounting). A 20-question skills test is given to 10 randomly chosen students in each major. Which nonparametric test could be used by the dean to see if there is a difference in computer skills of students in the various majors?

 A. Wald-Wolfowitz test

 B. Wilcoxon signed-rank test

 C. Mann-Whitney test

 D. Kruskal-Wallis test

Because we have four samples, we would use the K-W test to compare the medians.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

70. Which is not a characteristic of the Kruskal-Wallis test?

 A. It is analogous to the parametric one-factor ANOVA.

 B. It does not make any assumptions about the populations.

 C. It is useful in comparing the medians in c groups.

 D. It does not require normal distributions of populations.

The K-W test requires populations of similar shape if we want to compare medians.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

71. Individuals in four different age groups are asked to rate, on a scale of 1 to 10, three flavors of ice creams. Each group has the same number of individuals. Median ratings by the individuals are grouped by the flavor of ice cream and by age group. Which nonparametric test could be used to see if there is a difference in median ratings among the four age groups and three flavors?

 A. Wilcoxon signed-rank test

 B. Friedman test

 C. Mann-Whitney test

 D. Kruskal-Wallis test

This is a two-factor comparison using medians, so we would use Friedman’s test.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

72. Which nonparametric test is analogous to a two-factor ANOVA without replication?

 A. Wilcoxon signed-rank test

 B. Friedman test

 C. Mann-Whitney test

 D. Kruskal-Wallis test

Friedman’s test uses a two-factor experiment with one observed median per cell.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

73. If there are three or more populations with ordinal data, what is the appropriate test to determine whether the distributions are equal?

 A. Friedman test

 B. t test

 C. ANOVA

 D. Kruskal-Wallis test

K-W is a test for identical populations (or equal medians, if populations differ only in center).

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

74. Hoping to reduce the waiting time, a doctor’s office tried a new way of scheduling its appointments. Populations of waiting times are believed to be similar except in central tendency. However, waiting times may not be normally distributed, so a nonparametric test was chosen to compare the waiting times. The Wilcoxon/Mann-Whitney test results are shown below:

Which is the best conclusion?

 A. The medians differ at α = .01.

 B. The means differ at α = .01.

 C. The samples differ at α = .01.

 D. There are no differences at α = .01.

The p-value is less than .01, so we reject equal medians.

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 1 Easy Learning Objective: 16-04 Use the Wilcoxon rank sum test for two samples. Topic: Wilcoxon Rank Sum Test

75. At the Food Barn, children can order from the adult menu (A) or the child’s menu (C). Below is the pattern of menu orders for 24 children last Wednesday evening.

A, A, A, A, C, A, A, C, C, C, A, A, A, A, A, A, C, C, C, A, C, C, C, C

Which test would you choose to see if this pattern is random?

 A. Kruskal-Wallis test

 B. Wilcoxon rank sum (Mann-Whitney) test

 C. Wald-Wolfowitz one-sample runs test

 D. Wilcoxon test

Use the runs test for sequences that indicate a nonrandom pattern.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

76. At the Food Barn, children can order from the adult menu (A) or the child’s menu (C). Below is the pattern of menu orders for 24 children last Wednesday evening.

A, A, A, A, C, A, A, C, C, C, A, A, A, A, A, A, C, C, C, A, C, C, C, C

Which statement is most accurate?

 A. Neither sample size (for outcomes A or C) is large enough for a runs test using z.

 B. Both sample sizes (for outcomes A and C) are large enough for a runs test using z.

 C. Only one outcome has a large enough sample for a runs test using z.

 D. This type of data would not be suited for a runs test using z.

We need 10 outcomes of each type to use a large-sample z test.

 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

77. A clinic has four doctors. They wish to compare the amount of time that doctors spend with their patients. It is suspected that times may not be normally distributed but are otherwise assumed similar except in center, so a nonparametric test was chosen. The Kruskal-Wallis test results are shown below.

Which is the best conclusion?

 A. The doctors have the same median times at α = .01.

 B. The doctors have different median times at α = .01.

 C. The sample size is insufficient for this kind of test.

 D. A one-factor ANOVA would be a better kind of test.

The p-value is less than .01.

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

78. Returns on an investor’s stock portfolio (n = 19 stocks) are compared for the same stock in each of two consecutive quarters. Since the returns are not normally distributed (normality test p-values were .005 and .126 respectively), a nonparametric test was chosen. The test results are shown below.

Which is the best conclusion?

 A. The means are the same at α = .01.

 B. The medians are the same at α = .01.

 C. The means differ at α = .01.

 D. The medians differ at α = .01.

The p-value is less than .01.

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-03 Use the Wilcoxon signed-rank test. Topic: Wilcoxon Signed-Rank Test

79. Returns on an investor’s stock portfolio (n = 19 stocks) are compared for the same stock in each of two consecutive quarters. Since the returns are not normally distributed (normality test p-values were .005 and .126 respectively), a nonparametric test was chosen. The test results are shown below.

Which is the best conclusion?

 A. The returns are correlated neither at α = .05 nor at α = .01.

 B. The returns are correlated at α = .05 but not at α = .01.

 C. The returns are correlated at α = .01 but not at α = .05.

 D. The returns are correlated both at α = .05 and at α = .01.

The correlation differs from zero at α = .05 and .01 (close decision).

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-07 Use the Spearman rank correlation test. Topic: Spearman Rank Correlation Test

80. Attendees at an outdoor concert can buy pavilion tickets (A) or lawn tickets (B). Below is the output for the one-sample runs to test whether there is a pattern in 32 consecutive ticket purchases.

The best conclusion at α = .05 would be:

 A. the pattern is random.

 B. there is a difference in medians.

 C. the sample sizes are too small.

 D. the sample sizes must be equal.

The p-value is greater than .05 so we cannot reject randomness.

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-02 Use the one-sample runs test. Topic: One-Sample Runs Test

81. To compare the cost of three shipping methods, a firm shipped five orders to each of four different destinations over a six-month period. Their total shipping costs are shown below.

Which nonparametric test would you use to compare the median shipping costs among destinations and among shippers?

 A. Friedman test

 B. Kruskal-Wallis test

 C. Wilcoxon rank sum (Mann-Whitney) test

 D. Lebesgue-Stieltjes test

It’s like unreplicated two-factor ANOVA except that data are converted to ranks.

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

82. At the Seymour Clinic, the total number of patients seen by three doctors over three days is as follows:

Which nonparametric test would you use to compare the median number of patients seen by the doctors on each day?

 A. Wilcoxon test

 B. Kruskal-Wallis test

 C. Anderson-Darling test

 D. Friedman test

Like unreplicated two-factor ANOVA except that data are converted to ranks.

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 2 Medium Learning Objective: 16-06 Use the Friedman test for related samples. Topic: Friedman Test for Related Samples

83. Systolic blood pressure of randomly selected HMO patients was recorded on a particular Wednesday, with the results shown here:

The appropriate hypothesis test to compare the medians is:

 A. Wilcoxon test.

 B. Kruskal-Wallis test.

 C. Levene’s test.

 D. Friedman test.

Like one-factor ANOVA except that data are converted to ranks.

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 1 Easy Learning Objective: 16-05 Use the Kruskal-Wallis test for c independent samples. Topic: Kruskal-Wallis Test for Independent Samples

84. You do not wish to assume normality in the population, yet you wish to compare central tendency in c samples. You decide to utilize MegaStat, whose menu is shown here:

 A. Hypothesis Tests

 B. Nonparametric Tests

 C. Correlation/Regression

 D. Analysis of Variance

We would need the Kruskal-Wallis nonparametric test for c medians.

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 1 Easy Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

85. You do not wish to assume normality in the population, yet you wish to compare central tendency in c samples. You decide to utilize MINITAB, whose menu is shown here:

 A. ANOVA

 B. Regression

 C. Nonparametrics

 D. EDA

We would need the Kruskal-Wallis nonparametric test for c medians.

 AACSB: Analytical Thinking Blooms: Apply Difficulty: 1 Easy Learning Objective: 16-01 Define nonparametric tests and explain when they may be desirable. Topic: Why Use Nonparametric Tests?

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