Chapter 2 - Review Questions - 2122

A textile manufacturer obtained a sample of 50 bolts of cloth from a​ day's output. Each bolt is carefully inspected and the number of imperfections is recorded in the accompanying table.

The mean, median, and mode of the dataset are:

A random sample of data has a mean of 61 and a variance of 16.

Use​ Chebychev's theorem to determine the percentage of observations between 49 and 73.

• 55.6%

• 75%

• 89%

Suppose you are told that the mean of a sample is below the median. What does this information suggest about the distribution?

• The distribution is symmetric.

• The distribution is skewed to the right or positively skewed.

• The distribution is skewed to the left or negatively skewed.

• There is insufficient information to determine the shape of the distribution.

Over the past 10 years, the return on Stock A has averaged 8.4% with a standard deviation of 2.1%. The return on Stock B has averaged 3.6% with a standard deviation of 0.9%. Both stocks exhibit the same relative variation.

• TRUE

• FALSE

Quartiles are descriptive measures that separate large data sets into:

• two halves

• three thirds

• four quarters

• five fifths

Which of the following statements is false?

• The correlation coefficient measures the strength of a linear relationship between two variables

• The value of the correlation coefficient may be used to confirm a non-linear relationship

• The interquartile range measures the spread of the lower 50% of data values

• For any distribution, the number of values above the mean and below it is the same