Question 1

If p-value of a statistical test >= alpha threshold, you
A) should reject the alternate hypothesis (i.e., significant result).
B) should fail to reject the null hypothesis (i.e., not significant result).
C) accept the null hypothesis.
D) have insufficient evidence to either reject or fail to reject the alternate hypothesis.

Accepted Answer

When the p-value is greater than or equal to the alpha threshold, it indicates that the observed data are consistent with the null hypothesis. Therefore, there is not enough statistical evidence to reject the null hypothesis, leading to the conclusion that the result is not statistically significant.

Question 2

If p-value of a statistical test is 0.09 and a 90% confidence interval, you
A) should reject the null hypothesis (i.e., significant result).
B) should fail to reject the null hypothesis (i.e., not significant result).
C) accept the alternate hypothesis.
D) have insufficient evidence to either reject or fail to reject the null hypothesis.

Accepted Answer

The p-value of 0.09 is equal to the significance level of 0.10 (100% - 90% confidence level), so you reject the null hypothesis.

Question 3

A z-score tells us how many __________, a data point (or observation), x_i, is from its population mean, μ? A) standard deviations B) units C) standard errors D) increments

Accepted Answer

A z-score measures how many standard deviations a data point is from the mean of its population.

Question 4

If the hypothesized relationship is assumed to not exist, this would be an example of a(n) __________ hypothesis.
A) alternative
B) correct
C) null
D) incorrect

Accepted Answer

The null hypothesis typically states that there is no effect or no difference, essentially assuming that the hypothesized relationship does not exist.

Question 5

A __________ is a characteristic of a population.
A) parameter
B) normal distribution
C) sample
D) descriptive statistics

Accepted Answer

A parameter is a characteristic or measure of a population. It is a summary value that describes a given population.

Question 6

Which distribution is a probability distribution with a low mean and highly skewed to the right?
A) Normal distribution
B) Poisson distribution
C) Level distribution
D) Uniform distribution

Accepted Answer

The Poisson distribution is known for modeling the probability of a number of events happening in a fixed interval of time or space, and it can exhibit a low mean and high skewness to the right, especially for low mean values. This makes it suitable for describing rare events.

Question 7

According to the normal distribution, __________% of the data would fit within 1 standard deviations of the mean.
A) 68
B) 99
C) 95
D) 99.7

Accepted Answer

Approximately 68% of the data in a normal distribution is within one standard deviation of the mean.

Question 8

The probability that a population parameter will fall between two set values is called a __________.
A) parameter
B) confidence interval
C) sample
D) descriptive statistics

Accepted Answer

A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Question 9

If p-value of a statistical test is 0.04 and alpha is 0.10, you
A) should reject the null hypothesis (i.e., significant result).
B) should fail to reject the null hypothesis (i.e., not significant result).
C) accept the alternate hypothesis.
D) have insufficient evidence to either reject or fail to reject the null hypothesis.

Accepted Answer

The p-value (0.04) is less than the alpha level (0.10), indicating that the result is statistically significant, and you should reject the null hypothesis.

Question 10

The distribution of hearts within a fair deck of cards would follow the __________.
A) Normal distribution
B) Poisson distribution
C) Level distribution
D) Uniform distribution

Accepted Answer

The distribution of hearts within a fair deck of cards would follow the uniform distribution because each card has an equal probability of being drawn, including the hearts.

Question 11

If an accounts payable transaction has a z-score of 3, with a mean of $20,000 and a standard deviation of $5,000, what is the amount of the related party transaction?
A) $20,000
B) $15,000
C) $25,000
D) $35,000

Accepted Answer

The z-score formula is $z = \frac{(X - \mu)}{\sigma}$, where $X$ is the value, $\mu$ is the mean, and $\sigma$ is the standard deviation. Plugging in the given values: $3 = \frac{(X - 20000)}{5000}$. Solving for $X$ gives $X = 20000 + 3(5000) = 35000$.

Question 12

A histogram is used to understand:
A) the basic statistics, including the mean, standard deviation, minimums, and maximums of a data set.
B) the frequency of the data using a display of rectangles with area proportional to the underlying frequency of the data.
C) the relation between specific dependent variable values and independent variable inputs.
D) the probability of a statistical difference in means between either two independent samples or a paired sample through time.

Accepted Answer

Histograms are graphical representations that display the frequency of data points within specified ranges, using rectangles whose area is proportional to the frequency of the data. They are particularly useful for understanding the distribution of a dataset.

Question 13

Which type of analysis is generally associated with predictive analytics?
A) What-if scenario
B) Fuzzy matching
C) Times series
D) Means, modes, medians, and counts

Accepted Answer

Time series analysis is a statistical technique that deals with time series data, or trend analysis, which is often used in predictive analytics to forecast future events or trends based on historical data.

Question 14

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the independent variable?
A) Factors potentially predicting bankruptcy
B) Bankruptcy
C) There are no dependent variables
D) Cannot be determined

Accepted Answer

The independent variables in a regression model are the factors or predictors that are used to predict the outcome variable. In this case, the factors potentially predicting bankruptcy are the independent variables because they are used to predict the outcome (bankruptcy).

Question 15

Albert Einstein's intelligence quotient (IQ) was reported to be 160. If the population mean IQ is 100 and the standard deviation is 15, what is the z-score associated with Albert Einstein's IQ?
A) 160
B) 4
C) 10.666
D) 100

Accepted Answer

The z-score is calculated by subtracting the mean from the individual score and then dividing by the standard deviation. For Einstein's IQ, the calculation is (160 - 100) / 15 = 60 / 15 = 4.

Question 16

According to the normal distribution, __________% of the data would fit within 2 standard deviations of the mean.
A) 68
B) 99
C) 95
D) 99.7

Accepted Answer

According to the empirical rule (also known as the 68-95-99.7 rule) for a normal distribution, approximately 95% of the data falls within 2 standard deviations of the mean.

Question 17

A(n) __________ hypothesis is a hypothesis used in hypothesis testing that is opposite of the null hypothesis, or a potential result that the analyst may expect.
A) alternative
B) correct
C) null
D) incorrect

Accepted Answer

The alternative hypothesis is the hypothesis used in hypothesis testing that contrasts with the null hypothesis, representing a potential outcome that the researcher expects or is testing for.

Question 18

A statistic is a characteristic of a __________.
A) parameter
B) population
C) sample
D) correlation

Accepted Answer

A statistic is a characteristic or measure obtained by using the data values from a sample.

Question 19

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the dependent variable?
A) Factors potentially predicting bankruptcy
B) Bankruptcy
C) There are no dependent variables
D) Cannot be determined

Accepted Answer

The dependent variable is the outcome variable that the study aims to predict or explain, which in this case is "bankruptcy."

Question 20

If p-value of a statistical test is 0.09 and a 95% confidence interval, you
A) should reject the null hypothesis (i.e., significant result).
B) should fail to reject the null hypothesis (i.e., not significant result).
C) accept the alternate hypothesis.
D) have insufficient evidence to either reject or fail to reject the null hypothesis.

Accepted Answer

A p-value of 0.09 is greater than the common significance level of 0.05 used for a 95% confidence interval, indicating that the result is not statistically significant. Therefore, you should fail to reject the null hypothesis.

Quiz 5: Perform the Analysis: Types and Tools of Data Analyses

If p-value of a statistical test >= alpha threshold, you

If p-value of a statistical test is 0.09 and a 90% confidence interval, you

A z-score tells us how many __________, a data point (or observation) , x_i, is from its population mean, μ?

If the hypothesized relationship is assumed to not exist, this would be an example of a(n) __________ hypothesis.

A __________ is a characteristic of a population.

Which distribution is a probability distribution with a low mean and highly skewed to the right?

According to the normal distribution, __________% of the data would fit within 1 standard deviations of the mean.

The probability that a population parameter will fall between two set values is called a __________.

If p-value of a statistical test is 0.04 and alpha is 0.10, you

The distribution of hearts within a fair deck of cards would follow the __________.

If an accounts payable transaction has a z-score of 3, with a mean of $20,000 and a standard deviation of $5,000, what is the amount of the related party transaction?

A histogram is used to understand:

Which type of analysis is generally associated with predictive analytics?

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy) , what is the independent variable?

Albert Einstein's intelligence quotient (IQ) was reported to be 160. If the population mean IQ is 100 and the standard deviation is 15, what is the z-score associated with Albert Einstein's IQ?

According to the normal distribution, __________% of the data would fit within 2 standard deviations of the mean.

A(n) __________ hypothesis is a hypothesis used in hypothesis testing that is opposite of the null hypothesis, or a potential result that the analyst may expect.

A statistic is a characteristic of a __________.

If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy) , what is the dependent variable?

If p-value of a statistical test is 0.09 and a 95% confidence interval, you