@jen.the.tutor: **STAT 2002 – Business Statistics Final Exam Practice (Questions & Answers)** Core Topics Commonly Tested Descriptive statistics Probability & probability distributions Random variables Normal distribution Sampling & sampling distributions Confidence intervals Hypothesis testing Correlation & regression Business decision-making using statistics Practice Questions 1. Which measure is most affected by extreme values (outliers)? A. Median B. Mode C. Mean ✅ D. Interquartile range Answer: C Explanation: The mean uses all data values, so outliers pull it up or down. 2. A dataset has a mean of 50 and a standard deviation of 10. What is the z-score for a value of 70? A. 1 B. 2 ✅ C. 3 D. –2 Answer: B Explanation: 𝑧 = 70 − 50 10 = 2 z= 10 70−50 ​ =2 3. Which probability rule applies when events are independent? A. Addition rule B. Conditional probability C. Multiplication rule ✅ D. Complement rule Answer: C Explanation: For independent events: 𝑃 ( 𝐴 ∩ 𝐵 ) = 𝑃 ( 𝐴 ) × 𝑃 ( 𝐵 ) P(A∩B)=P(A)×P(B) 4. If the probability of an event occurring is 0.25, what is the probability it does NOT occur? A. 0.25 B. 0.50 C. 0.75 ✅ D. 1.25 Answer: C Explanation: 𝑃 ( not A ) = 1 − 0.25 = 0.75 P(not A)=1−0.25=0.75 5. Which distribution is used most often for continuous business data? A. Binomial B. Poisson C. Normal ✅ D. Uniform Answer: C Explanation: The normal distribution models many continuous business variables (sales, costs, test scores). 6. In a normal distribution, approximately what percentage of data lies within ±1 standard deviation of the mean? A. 68% ✅ B. 75% C. 95% D. 99.7% Answer: A Explanation: Empirical Rule: ±1 SD → 68% ±2 SD → 95% ±3 SD → 99.7% 7. What happens to the sampling distribution of the mean as sample size increases? A. It becomes more skewed B. It becomes wider C. It becomes more normally distributed ✅ D. The mean changes Answer: C Explanation: By the Central Limit Theorem, larger samples produce a more normal sampling distribution. 8. A 95% confidence interval means: A. 95% of data points fall in the interval B. The sample mean is correct 95% of the time C. We are 95% confident the population parameter lies in the interval ✅ D. The population mean changes Answer: C Explanation: Confidence refers to the method, not individual samples. 9. Which hypothesis test compares two population means? A. Chi-square test B. One-sample z-test C. Two-sample t-test ✅ D. ANOVA Answer: C Explanation: A two-sample t-test compares means from two independent groups. 10. In hypothesis testing, the null hypothesis (H₀) usually states that: A. There is a significant difference B. The researcher is correct C. There is no effect or no difference ✅ D. The alternative hypothesis is false Answer: C Explanation: H₀ assumes no change or no relationship. 11. If the p-value is less than the significance level (α = 0.05), you should: A. Accept H₀ B. Fail to reject H₀ C. Reject H₀ ✅ D. Increase sample size Answer: C Explanation: p-value < α → Reject the null hypothesis. 12. A correlation coefficient of –0.85 indicates: A. Weak positive relationship B. Strong positive relationship C. Weak negative relationship D. Strong negative relationship ✅ Answer: D Explanation: Values close to –1 show a strong negative linear relationship. 13. Which statement about correlation is TRUE? A. Correlation implies causation B. Correlation measures strength and direction of a relationship ✅ C. Correlation only applies to categorical data D. Correlation must be positive Answer: B Explanation: Correlation shows association, not causation. 14. In linear regression, the slope represents: A. The y-intercept B. Total variation C. Change in y for a one-unit change in x ✅ D. Strength of correlation https://www.learnexams.com/study-content/stat-2002-business-statistics-final-exam-qns-ans-2025-33996

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