Managerial Statistics, International Edition 8th Edition By Gerald Keller - Test Bank

Managerial Statistics, International Edition 8th Edition By Gerald Keller – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

CHAPTER 3 SECTION 1-2: ART AND SCIENCE OF GRAPHICAL PRESENTATIONS

 

MULTIPLE CHOICE

 

1. The effect of making the slope of a line chart appear steeper can be created by:

a.	Stretching the vertical axis.
b.	Shrinking the horizontal axis.
c.	Stretching the horizontal axis.
d.	Both a and b

 

ANS:  D                    PTS:   1                    REF:   SECTION 3.1-3.2

 

2. Which of the following is a characteristic of graphical excellence?

a.	Data sets are summarized in tables wherever possible.
b.	The graph includes no more than one variable, to stress clarity.
c.	The substance of the data, and not the form of the graph, is stressed.
d.	All of these choices are true.

 

ANS:  C                    PTS:   1                    REF:   SECTION 3.1-3.2

 

3. Possible methods of graphical deception include:

a.	A graph without a scale on one axis.
b.	A graph’s caption that influences the impression of the viewer.
c.	A graph where absolute changes, rather than percentage changes, are reported.
d.	All of these choices are true.

 

ANS:  D                    PTS:   1                    REF:   SECTION 3.1-3.2

 

4. Possible methods of creating distorted impressions with bar charts include:

a.	Stretching the vertical axis.
b.	Shrinking the horizontal axis.
c.	Constructing the bars so that their widths are proportional to their heights.
d.	All of these choices are true.

 

ANS:  D                    PTS:   1                    REF:   SECTION 3.1-3.2

 

5. Which of the following statements is true?

a.	Graphical techniques should only be used where there is a small amount of data.
b.	Large data sets are best presented in tabular form.
c.	Graphical techniques create a visual impression, which is easy to distort.
d.	All of these choices are true.

 

ANS:  C                    PTS:   1                    REF:   SECTION 3.1-3.2

 

6. Which of the following characteristics apply to achieve graphical excellence?

a.	The graph encourages the viewer to compare two or more variables.
b.	The display induces the viewer to address the substance of the data and not the form of the graph.
c.	There is no distortion of what the data reveal.
d.	All of these choices are true.

 

ANS:  D                    PTS:   1                    REF:   SECTION 3.1-3.2

7. Which of the following statements illustrates graphical deception?

a.	Absolute changes, rather than percentage changes are reported.
b.	To reduce clutter, the scales of the axes are not shown.
c.	The Y-axis is stretched or shrunk to show the data in their best possible light.
d.	All of these choices are true.

 

 

ANS:  D                    PTS:   1                    REF:   SECTION 3.1-3.2

 

8. The following graph shows pepper prices throughout a 12-month period.

 

 

Suppose you made a new graph of the same data, where the maximum value on the Y-axis was changed from 5.0 to 10.0. (Assume everything else stays the same.)

 

Your new graph would appear to have ____ variability in pepper prices compared to the original graph shown above.

a.	more
b.	less
c.	the same
d.	unknown

 

 

ANS:  B                    PTS:   1                    REF:   SECTION 3.1-3.2

 

9. You are less likely to be misled by a graph if you:

a.	Concentrate on the numbers rather than the form of the graph.
b.	Pay more attention to the graph’s caption than to the graph itself.
c.	Ignore the scales used on the axes.
d.	None of these choices.

 

 

ANS:  A                    PTS:   1                    REF:   SECTION 3.1-3.2

10. Is it fair to depict Texas as most tornado prone area of the U.S. by showing it has the highest number of tornados of all states in the U.S.?

a.	Yes, because number of tornadoes is the appropriate measure in this situation.
b.	Yes, because Texas is one of the largest states.
c.	No, because Texas is larger than almost every other state. Number of square miles should also be taken into account.
d.	No, because Texas has a very high population, and you need to report tornados per capita.

 

 

ANS:  C                    PTS:   1                    REF:   SECTION 3.1-3.2

 

TRUE/FALSE

 

11. Graphical techniques should not be used to present data if accurate tabular forms for the same data are available.

 

ANS:  F                    PTS:   1                    REF:   SECTION 3.1-3.2

 

12. Graphical excellence gives the greatest number of ideas in the shortest time with the least ink in the smallest space.

 

ANS:  T                    PTS:   1                    REF:   SECTION 3.1-3.2

 

13. Graphical excellence is nearly always univariate.

 

ANS:  F                    PTS:   1                    REF:   SECTION 3.1-3.2

 

14. The techniques of shrinking the horizontal axis or stretching the vertical axis have the effect of making the slope of the graph visually (but not numerically) steeper.

 

ANS:  T                    PTS:   1                    REF:   SECTION 3.1-3.2

 

15. Graphical excellence is a term usually applied to techniques that are informative and concise and that impart information clearly to their viewers.

 

ANS:  T                    PTS:   1                    REF:   SECTION 3.1-3.2

 

16. A popular method of creating distorted impressions with bar charts is to construct the bars so that their widths are proportional to their heights.

 

ANS:  T                    PTS:   1                    REF:   SECTION 3.1-3.2

 

17. If the form of the graph replaces the substance of the data, the graph is performing to function and graphical excellence is achieved.

 

ANS:  F                    PTS:   1                    REF:   SECTION 3.1-3.2

 

18. A pie chart uses relative frequencies to summarize the data so including the sample size is not important.

 

ANS:  F                    PTS:   1                    REF:   SECTION 3.1-3.2

 

19. The scale used on a bar chart does not affect the way the bar chart looks.

 

ANS:  F                    PTS:   1                    REF:   SECTION 3.1-3.2

 

20. A line chart showing the number of crimes in Las Vegas from 2000 to 2005 may exhibit a totally different trend than a line chart showing the crime rate in Las Vegas from 2000 to 2005. (Crime rate is defined as number of crimes per 100,000 people.)

 

ANS:  T                    PTS:   1                    REF:   SECTION 3.1-3.2

 

21. A pie chart showing 80% yes and 20% no would look the same whether it was based on 10,000 observations or 10 observations. This is one way that pie charts can be deceptive.

 

ANS:  T                    PTS:   1                    REF:   SECTION 3.1-3.2

 

22. A bar chart can be made to look deceptive if the Y-axis starts at a number other than zero.

 

ANS:  T                    PTS:   1                    REF:   SECTION 3.1-3.2

 

COMPLETION

 

23. A(n) ____________________ is best defined as a set of symbols (such as people or animals) used to depict data. It often distorts the actual sizes of the items being portrayed.

 

ANS:  pictogram

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

24. Differences in the frequencies of a histogram appear to be less dramatic if you ____________________ the vertical axis.

 

ANS:  shrink

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

25. Differences in the frequencies of a histogram appear to be more dramatic if you ____________________ the vertical axis.

 

ANS:  stretch

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

26. The number of crimes per capita is known as the crime ____________________. It is a fairer way to represent and compare crimes from year to year or place to place.

 

ANS:  rate

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

27. Pie charts only show ____________________, not ____________________. This means you don’t know what the sample size is unless it is stated on the pie chart.

ANS:

relative frequencies; frequencies

percents; counts

percentages; counts

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

28. Slopes and trends in a line chart appear to be less steep if you ____________________ the horizontal (time) axis.

 

ANS:  stretch

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

29. Slopes and trends in a line chart appear to be steeper if you ____________________ the horizontal (time) axis.

 

ANS:  shrink

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

30. A graph showing trends over time is called a(n) ____________________ chart.

 

ANS:  line

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

SHORT ANSWER

 

31. In its 2000 report, a company presented the following data regarding its sales (in millions of dollars), and net income (in millions of dollars).

 

Year	1996	1997	1998	1999	2000
Sales	70	97	80	55	185
Net Income	1.6	5.2	4.1	2.4	7.1

 

The bar chart below was used to present these data.

 

 

Assume that you are an unscrupulous statistician and want to make the data appear more positive than they really are. Redraw the graph by being selective about which years to include, getting the desired effect.

 

ANS:

An unscrupulous statistician could choose to include years 1996, 1997, and 2000 only, as shown in the bar chart below. It would then appear that there has been steady growth in sales and income over the years, because the declines in sales and income in 1998 and 1999 would not be evident. Many readers of this graph will not pay attention to the actual years represented, and will get the wrong idea about sales and income trends.

 

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

Admission to ER

 

The following bar chart shows the type of aspirin (if any) given to 100 cardiac patients within 15 minutes of their admission to the emergency room.

 

 

32. {Admission to ER Narrative} Notice that the Y-axis of the bar chart does not start at a frequency of zero. Create a new bar chart of the displayed data that accurately displays the frequency for each aspirin type.

 

ANS:

A bar chart showing the respective aspirin counts accurately must include a zero point on the vertical scale. Such a graph is shown below. The actual frequencies for each aspirin group are also included.

 

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

33. {Admission to ER Narrative} In what way does the original bar chart distort the data as compared to a bar chart that starts at zero on the Y-axis (frequency axis)?

 

ANS:

As read from the original bar chart, the various aspirin type counts are 20 for baby aspirin; 40 for Ecotrin; 25 for others; and 15 for no aspirin. The original bar chart, with vertical scale beginning at 10, distorts the relationship between the actual aspirin type counts. For example, in the original graph, the bar representing the count for Baby aspirin shows 1/3 the area or height as compared to the bar representing Ecotrin. Yet the actual count of Baby aspirin is 1/2 that of Ecotrin. A bar chart starting at zero alleviates this problem.

 

PTS:   1                    REF:   SECTION 3.1-3.2

Credit Hours

 

The College of Business at The State University of Michigan produced 3,400 credit hours during Winter Semester, 2001. The number and percentage of credit hours produced by each of the four departments in the College of Business is shown below.

 

Department	Percent	Count
Marketing	35.3	1,200
Management	23.5	800
Finance	23.5	800
Accounting	17.6	600

 

The following three-dimensional pie chart was constructed from the table above.

 

 

34. {Credit Hours Narrative} Construct a two-dimensional pie chart showing the percentages of credit hours produced by the four departments.

 

ANS:

The two-dimensional pie chart is shown below:

 

 

PTS:   1                    REF:   SECTION 3.1-3.2

35. {Credit Hours Narrative} In what way does the original three-dimensional pie chart distort the data, compared to a two-dimensional pie chart?

 

ANS:

The management and finance departments clearly produced the same number of credit hours. A two-dimensional pie chart correctly shows this fact whereas the original three-dimensional pie chart (produced from the same data) visually distorts this fact.

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

36. Briefly explain why the histogram below is misleading.

 

 

ANS:

The scale on the Y-axis has been shrunk so the differences in unemployment rates appear to be smaller (less dramatic) than they really are.

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

37. Bob recorded his amount of exercise time (in minutes) for 100 days. Both of the line charts below were created based on his same data set. Which line chart makes his exercise times look more variable and why?

 

 

 

ANS:

The first line chart looks more variable because the scale is more stretched out compared to the second line chart, whose scale has been shrunk. (The second graph is misleading.)

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

 

Sales

 

Data are collected on the number of sales (x) made in a given week by each of 60 sales persons in a certain company. The same data set is displayed in each of the three histograms below.

 

 

 

 

38. {Sales Narrative} How many sales personnel are there in this company?

 

ANS:

60; you get this number by adding up all the frequencies (heights) of the bars. (Note that due to the scales used, it is often impossible to determine exact counts. You can fix this by presenting an accompanying frequency table, or by writing the frequency over each bar.)

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

39. {Sales Narrative} Which histogram makes the differences in the sales appear to be the most dramatic?

 

ANS:

Histogram 2 makes differences look most dramatic. It starts at 7 on the Y-axis and goes in increments of only 1. (That is, the scale has been stretched.)

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

40. {Sales Narrative} Which histogram makes the differences in the sales appear to be the least dramatic?

 

ANS:

Histogram 3 makes the differences look least dramatic. It starts at 0 on the Y-axis and goes by increments of 5. (That is, the scale has been shrunk.) It also ends at 25, creating a great deal of open space at the top of the graph.

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

41. {Sales Narrative}Which graph do you think is the most appropriate display? Justify your answer.

 

ANS:

Histogram 1 seems to give the fairest representation. It fills up the space, starts at 0, and goes by increments of 2. This histogram appears more neutral than the other two.

 

PTS:   1                    REF:   SECTION 3.1-3.2

42. Below are two line charts where the percentage return for a stock is shown over time. The two graphs are made from the same data set.

 

 

 

Explain why these two line charts look different.

 

ANS:

Their scales on the Y-axis are different. Plot A makes differences appear smaller by shrinking the scale. Plot B makes differences appear larger by stretching the scale.

 

PTS:   1                    REF:   SECTION 3.1-3.2

 

 

 

43. An online dating service has a quick poll on its website showing the following results. Critique the graph portion of the table. How can it be improved?

 

 

ANS:

The graph has no scale on it; you can’t tell exactly what the percentages actually are by looking at the graph alone.

 

PTS:   1                    REF:   SECTION 3.1-3.2