CBE Business Statistics and Data Analysis Flashcards
6 cards from real CBE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CBE Business Statistics and Data Analysis flashcards as text
Multicollinearity in multiple regression analysis causes:
Answer: Unstable and imprecise coefficient estimates with inflated standard errors
Multicollinearity makes it difficult to isolate the individual effects of correlated predictors, inflating standard errors and making coefficient estimates unstable.
A probability distribution where all outcomes are equally likely is called a:
Answer: Uniform distribution
A uniform distribution assigns equal probability to all outcomes within a defined range, unlike skewed or bell-shaped distributions.
The Law of Large Numbers states that as sample size increases:
Answer: The sample mean converges to the true population mean
The Law of Large Numbers guarantees that the sample mean gets arbitrarily close to the population mean as more observations are collected.
In business statistics, a p-value represents:
Answer: The probability of observing results as extreme as the data, assuming the null hypothesis is true
The p-value is the probability of obtaining a test statistic at least as extreme as observed, under the assumption that the null hypothesis holds.
Seasonal adjustment of economic data is performed in order to:
Answer: Eliminate recurring calendar-based patterns to reveal underlying trends
Seasonal adjustment removes predictable periodic fluctuations (e.g., holiday retail spikes) so analysts can identify genuine cyclical and trend movements.
A scatter plot showing a cloud of points with no discernible pattern indicates:
Answer: Little to no linear correlation between the two variables
When plotted data points show no systematic pattern, the correlation coefficient is near zero, suggesting the two variables are not linearly related.