Berenson_solutions_ch01

Solutions

2 SOLUTIONS

CHAPTER 1: INTRODUCTION AND DATA

COLLECTION

Learning Objectives:

In this chapter, you learn:

• How statistics is used in business

• The sources of data used in business

• The types of data used in business

Solutions:

1.2 Three sizes of soft drink are classified into distinct categories –

small, medium, and large – in which order is implied.

1.4 (a) numerical, discrete, ratio scale. (b) numerical, continuous, ratio

scale. (c) categorical, nominal scale. (d) categorical, nominal scale.

1.6 (a) categorical, nominal scale. (b) numerical, continuous, ratio scale.

(c) numerical, discrete, ratio scale. (d) numerical, discrete, ratio scale.

1.8 (a) Income may be considered discrete if we ‘count’ our money. It

may be considered continuous if we ‘measure’ our money; we are only

limited by the way a country’s monetary system treats its currency.

(b) The first format is preferred because the responses represent data

measured on a higher scale. (c) The second format is less threatening

to a respondent and likely leads to a greater response rate.

1.10 A population contains all the items of interest whereas a sample

contains only a portion of the items in the population.

1.12 Descriptive statistical methods deal with the collection,

presentation, summarisation, and analysis of data whereas inferential

statistical methods deal with decisions arising from the projection of

sample information to the characteristics of a population.

1.14 Discrete random variables produce numerical responses that arise

from a counting process. Continuous random variables produce

numerical responses that arise from a measuring process.

1.16 The four types of measurement scales are (i) nominal scale,

(ii) ordinal scale, (iii) interval scale and (iv) ratio

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