Key Terms
In your own words, describe what Statistics is, and provide an example of how it is used in business
The science of collecting, organizing, presenting, analyzing, and interpreting data to assist in making more effective decisions.
(Chapter 1, Slides 3-4)
What is a relative frequency, and how is it calculated?
To find the relative frequencies, simply take the class frequency and divide by the total number of observations
(Chapter 2, Slide 13)
What is a frequency distribution?
A grouping of quantitative data
into mutually exclusive and collectively exhaustive classes showing the number of observations in each class.
(Chapter 2, Slide 8)
What is different between the sample variance and population variance formulas?
Population variance uses the population mean, and is divided by n
Sample variance uses the sample mean, and is divided by n-1
(Chapter 3, Slides 18-21)
What is qualitative data? What is an example of qualitative data?
An object or individual is observed
and recorded as a non-numeric characteristic or attribute.
Examples: gender, state of birth, eye color
(Chapter 1, Slides 8-10)
These are the number of each flavor of cupcakes sold at Luna's Bakery:
2 chocolate
7 vanilla
8 peanut butter
3 snickerdoodle
What is the relative frequency of peanut butter cupcakes?
0.40
(Chapter 2, Slide 13)
What is the four-step process for constructing a frequency distribution?
1. Decide on the number of classes
2. Determine the class interval
3. Set the individual class limits
4. Tally the data into classes and determine the
number of the observations in each class
(Chapter 2, Slide 8)
Calculate the population variance for the following data set:
7, 9, 10, 12
3.25
(Chapter 3, Slide 18)
What is quantitative data? What is an example of quantitative data?
A variable that is reported numerically.
Examples: balance in your checking account, the life of a car battery, the number of people employed by a company
(Chapter 1, Slides 8-10)
These are the number of each flavor of cupcakes sold at Luna's Bakery:
2 chocolate
7 vanilla
8 peanut butter
3 snickerdoodle
Luna's Bakery sold $140 in cookies yesterday. Assuming all cookies are the same price, how much money did Luna earn from selling peanut butter cookies?
$64
(Chapter 2, Slide 13)
Using the following data, construct a Relative Frequency Table (classes, interval, frequency, and relative frequency)
8 10 11 7 3
4 9 7 12 15
(Chapter 2, slides 8-12)
Calculate the population standard deviation for the following data set:
7, 9, 10, 12
1.80
(Chapter 3, Slide 20)