Business Analysis Statistics Test #5

Question 1

A unique kind of index number is —————.

Accepted Answer

Average

Answer

An index number measures the change in a variable or group of variables over time, relative to a base period. While not an index number itself, an average can serve as a unique kind of reference point or a summary statistic from which an index number might be constructed or compared, representing a typical value in a dataset.

Question 2

The measurements required to determine the variation between the observations in the variable's unit are known as:

Accepted Answer

Absolute measures of dispersion

Answer

Absolute measures of dispersion quantify the spread or variability within a dataset using the original units of the data. These measures, such as range, variance, and standard deviation, directly indicate the extent of variation in the same units as the observations.

Question 3

The numbers are 78, 56, 22, 34, 45, 54, 39, 68, 54, and 84. What is the median?

Accepted Answer

54

Answer

To find the median, first arrange the numbers in ascending order: 22, 34, 39, 45, 54, 54, 56, 68, 78, 84. Since there are 10 numbers (an even count), the median is the average of the two middle numbers. The 5th and 6th numbers are 54 and 54, so their average is (54 + 54) / 2 = 54.

Question 4

Which of the following best describes the dispersion in an absolute sense?

Accepted Answer

Standard deviation

Answer

Standard deviation is a widely used absolute measure of dispersion that quantifies the average amount of variation or spread of data points around the mean. It is expressed in the same units as the original data, providing a direct and interpretable measure of variability.

Question 5

Which of the following is not utilized to summarize data in a five-number summary?

Accepted Answer

the 25th percentile

Answer

A five-number summary consists of the minimum value, the first quartile (Q1 or 25th percentile), the median (Q2), the third quartile (Q3), and the maximum value. Therefore, the 25th percentile is a core component of the five-number summary, representing the point below which 25% of the data falls.

Business Analysis Practice Test

Business Analysis Practice Test

Business Analysis Statistics Test #5