Mock Exam Midterm Statistics I1

1) The following table shows the productivity as measured by the sales per square metre
sales area of the six stores of a local supermarket chain. The numbers are given in euros.

Sales per square metre

Store
sales are (€)
A 9570
B 8764
C 6790
D 6620
E 5600
F 5550

What is the arithmetic mean and sample standard deviation (arithmetic mean; sample
standard deviation) of the productivity distribution given in the table? Round your answer to
whole numbers. Use your calculator!
A (€2141; €2651)
B (€7149; €1663)
C (€1255; €1669)
D (€6856; €549)
E (€9570; €1549)

2) The mean annual salary paid to all employees in a company is $36,000. The mean annual
salaries paid to male and female employees of the company is $34,000 and $40,000
respectively. Determine the percentages of males employed by the company.
A 4/6
B 2/3
C 1/2
D 8/10
E 5/6

3) The body style of an automobile (sedan, coupe, wagon, etc.) is an example of a(n):
A discrete variable
B continuous variable
C categorical variable
D constant
E natural number

4) The number of credit cards in a person’s wallet is an example of a:

A continuous variable
B discrete variable
C categorical variable
D constant
E irrational number

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The midterm exam contains 25 questions.
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5) Which of the statement(s) about the error of estimation (EoE) is (are) true?
A The EoE is the sum of the sampling error and the nonsampling error.
B The EoE Is always greater or equal to zero.
C The EoE measures the difference between a parameter and a statistic.
D If the parameter is unknown, the EoE cannot be calculated.
E All answers are correct.

6) Those methods involving the collection, presentation, and characterization of a set of

data in order to properly describe the various features of that set of data are called:
A statistical inference
B the scientific method
C sampling
D descriptive statistics
E observational studies

7) Based on the results of a poll of 500 registered voters, the conclusion that the Republican
candidate for U.S. president will win the upcoming election is an example of:
A inferential statistics
B descriptive statistics
C a parameter
D a statistic
E An experiment

8) Which of the following is a continuous variable?

A The eye color of children eating at a fast-food chain
B The number of employees of a branch of a fast-food chain
C The temperature at which a hamburger is cooked at a branch of a fast-food chain
D The number of hamburgers sold in a day at a branch of a fast-food chain
E The nationality of LBS students

Table A: A public opinion survey explored the relationship between the two variables “age”
and “support”. Support refers to whether a person supports an increase in the minimum
wage. The results are summarized below in a two-way frequency table.

support
For increasing Against increasing
minimum wage minimum wage
21-40 years 36 22
age
41-60 years 42 97

9) Ad Table A: What is the marginal percentage frequency of the category “For increasing
minimum wage”?
A 29.4%
B 46.2%
C 18.3%
D 39.6%
E 22.1%
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10) Ad Table A: What percentage of the surveyed people is between 41 and 60 years old and
against the increase in the minimum wage?
A 49.2%
B 11.2%
C 46.2%
D 18.3%
E All 97%.

11) Ad Table A: What is the conditional frequency of age = 21-40 years |support = “For
increasing the minimum wage”.
A 53.8%
B 62.1%
C 32.0%
D 112.9%
E 46.2%

12) Ad Table A: What percentage of the surveyed people of the age 41-60 is in favor of an
increase in the minimum wage?
A 30.2%
B 53.8%
C 62.1%
D 32.0%
E All answers are wrong.

13) Ad Table A: Which of the following terms provides an accurate description of the
relationship between the variables “age” and “support”.
A The variables “age” and “support” are independent.
B The variables “age” and “support” are dependent.
C The variable “support” has a causal impact on “age”.
D Knowing the age of a person provides valuable information on whether this person
supports an increase in the minimum wage.
E Answers B and D.

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14) Students took a test that had 20 questions. The following graph shows the distribution of
the scores. What are the best measures of spread and center for the data?

A range and median

B IQR and median
C standard deviation and median
D standard deviation and mean
E IQR and mean

15) According to the empirical rule (or the 68-95-99.7 rule), if a population has a normal
distribution, approximately what percentage of values is within two standard deviations
of the mean?
A about 34%
B about 99.7%
C about 95%
D about 68%
E about 5%

16) What does the standard deviation measure?

A how concentrated the data is around the median
B the likelihood of a data point being within the margin of error
C the center of data within the range
D how far apart the data values are from each other
E how concentrated the data is around the mean

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17) The graph below represents the reported favorite Arkansas state park for a sample of
students at a state university. Noting the measurement scale for the data, what would be
the most appropriate description of the shape of the data distribution?
A Normal
B Uniform
C Skewed
D Symmetrical
E Describing the shape of the data distribution is not appropriate in this context

18) Which of the following data sets has the same standard deviation as the data set with
the numbers 1, 2, 3, 4, 5?
Data Set 1: 6, 7, 8, 9, 10
Data Set 2: –2, –1, 0, 1, 2
Data Set 3: 0.1, 0.2, 0.3, 0.4, 0.5
A Data Set 1
B Data Set 2
C Data Set 3
D Choices A and B
E None of the data sets gives the same standard deviation as the data set 1, 2, 3, 4,

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19) A realtor tells you that the average cost of houses in a town is $176,000. You want to
know how much the prices of the houses may vary from this average. What
measurement do you need?
A standard deviation
B interquartile range
C median
D percentile
E Choice A or C

20) Which of the following exam scores is better relative to other students enrolled in the
course?
 A psychology exam grade of 85; the mean grade for the psychology exam is 92 with a
standard deviation of 3.5
 An economics exam grade of 67; the mean grade for the economics exam is 79 with a
standard deviation of 8
 A chemistry exam grade of 62; the mean grade for the chemistry exam is 62 with a
standard deviation of 5
A The psychology exam score is relatively better
B The economics exam score is relatively better
C The chemistry exam score is relatively better
D All of the exam scores are relatively equivalent
E You cannot tell without further information

21) The distribution of scores for a final exam in math had the following parameters:
Mean: 83%
Median: 94%
Standard deviation: 7%
IQR (interquartile range): 9%
Range: 65% to 100%
What are the best measures of spread and center for the data?
A IQR and median
B range and median
C standard deviation and mean
D standard deviation and median
E IQR and mean

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22) Bob attempts to calculate the five-number summary for a set of exam scores. His results
are as follows:
Minimum = 30
Maximum = 90
1st quartile = 50
3rd quartile = 80
Median = 85
What is wrong with Bob’s five-number summary?
A The minimum and the maximum are too far apart.
B The IQR isn’t provided.
C The median can’t be greater in value than the 3rd quartile.
D The mean isn’t provided.
E All of the above.

23) Students scored the following grades on a statistics test:

80, 80, 82, 84, 85, 86, 88, 90, 91, 92, 92, 94, 96, 98, 100
Calculate the score that represents the 80th percentile.
A 96
B 94
C 80
D 92
E 95

24) What measure(s) of variation is sensitive to outliers?

A range
B interquartile range
C standard deviation
D Choices A and B
E Choices A and C

25) If the average age of retirement for the entire population in a country is 64 years and the
distribution is normal with a standard deviation of 3.5 years, what is the approximate age
range in which 95% of people retire?
A about 58 to 70 years
B about 60.5 to 67.5 years
C about 57 to 71 years
D about 59 to 69 years
E about 61 to 67 years

26) Test scores for an English class are recorded as follows:

72, 74, 75, 77, 79, 82, 83, 87, 88, 90, 91, 91, 91, 92, 96, 97, 97, 98, 100
Find the 1st quartile, median, and 3rd quartile for the data set.
A 1st quartile = 78, median = 89, 3rd quartile = 94
B 1st quartile = 77, median = 88, 3rd quartile = 92
C 1st quartile = 78, median = 90, 3rd quartile = 95
D 1st quartile = 79, median = 90, 3rd quartile = 96
E 1st quartile = 79, median = 89, 3rd quartile = 96

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27) The following box plots represent GPAs of students from two different colleges, call them
College 1 and College 2.

Which data set has a larger sample size?

A The sample sizes for the two data sets are the same.
B There is only one total sample size for this data.
C Impossible to tell without further information.
D College 2
E College 1

28) The table below shows sales numbers for 2010 for the all firms in the shoe industry in
Russia. The numbers are in million Euros.

Firm Sales 2010 Firm Sales 2010

A 20 F 89
B 12 G 3
C 50 H 6
D 83 I 77
E 43 J 33

Compute CR3 and CR4. What numbers are correct?

A 0.60, 0.72
B 0.77, 0.18
C 0.18, 0.18
D 0.39, 0.48
E It is impossible to calculate the concentration ratios given the information.

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29) What is the mean and the standard deviation of the following data set: 8.3, 2.6, 9.5?
(mean; standard deviation)
A 6.8; 3.7
B 6.8; -2.9
C 8.3; 2.6
D 7.2; 4.1
E 6.8; 3.2

30) In a symmetric distribution:

A the mean is less than the median
B the mean is greater than the median
C the median equals the mean
D the median is less than the mode
E The skewness is negative

31) A business student is writing her master thesis about the export performance of SMEs.
She uses a questionnaire to gather the necessary data from companies. The first
question therein is as follows: “What is the legal status of your business? A) Sole Trader
b) Partnership c) Corporation d) Not-for profit Organisation” Based on the data that
result from this question, which statistic gives a meaningful summary of the gathered
information?
A Mean
B Median
C Standard deviation
D Absolute frequency
E Interquartile range

32) A time series of unemployment rates for Austria shows higher unemployment rates in
winter and lower ones during summer. This pattern is an example of a
A Seasonal pattern
B Trend pattern
C Irregular pattern
D Cyclical pattern
E Monthly pattern

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Example A: The table below shows the number of newborns in Austria with respect to their
birth weights (weight immediately after birth) for the year 2018.

33) Ad Example A: What type of variable is displayed in the table?

A Numerical variable
B Ordinal variable
C Nominal variable
D Continuous variable
E There are two variables in the table, one categorical, the other one interval-ratio

34) Ad Example A: What type of data is displayed in table A?

A Time-Series data
B Panel data
C Cross-Section data
D Big data
E Academic data

35) Ad Example A: What type of distribution is displayed in table A?

A Bivariate frequency distribution
B Multivariate frequency distribution
C Univariate frequency distribution
D Marginal distribution
E C and D

36) Ad Example A: A newborn weighing less than 2 500 g, they are classified as
“underweight. For the year 2018, determine the relative proportion of newborns in
Austria who were classified as “underweight”.
A 0.002
B 1.063
C 0.620
D 6.062
E All answers are wrong.

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37) Ad Example A: Which of the following statements can be justified based on the given
information?
A The mean birth weight is about 3,223 g.
B The number of newborns with a low birth weight (less than 2,500 g) is very high in
Austria.
C The number of newborns with a low birth weight (less than 2,500 g) is higher than in
previous years.
D The median birth weight is at least at least 2,500 g and less than 3,500 g.
E The percentage frequency of babies with a medium birth weight (at least 2,500 g and less
than 3,500 g) is less than for babies with high birth weight (above 3,500 g)

38) What does a histogram show?

A A histogram is a graph in which values of observations are plotted on the horizontal axis,
and their frequency or relative frequency is plotted on the vertical axis.
B A histogram is a graph in which levels of the independent variable are plotted on the
horizontal axis, and the mean of observations is plotted on the vertical axis.
C A histogram is a graph in which values of observations are plotted on the horizontal axis,
and the frequency with which each value occurs in the data set is plotted on the vertical
axis.
D A histogram is a graph in which values of one variable are plotted against values of a
different variable.
E A histogram is a graph which is used for nominal or ordinal data.

39) What is causation?

A A change in one variable induces a change in another variable
B A change in one variable goes together with a change in the other variable
C Knowing the value of one variable gives you some valuable information about the likely
value of the other variable
D If variable X changes, variable Y changes as a result
E Answers A and D

40) Which of the following relationship is relatively unlikely to signify a causal relationship?
A Alcohol consumption and life expectancy
B Student age and grade performance
C Motivation of employees and management style
D Eye colour of a child and of her parents
E Firm technology and productivity

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41) For a particular entrance exam, the maximum score is 10 points. The bar chart shown
below gives the relative frequencies of the points scored as a percentage.

Determine a and b in the boxplot (a,b).

A (5,8)
B (6,4)
C (8,4)
D (9,4)
E (4,7)

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42) The diagram below shows the development of inflation in Austria. The inflation rate is
defined as the percentage change of the consumer price index and shows the increase in
the overall price level.

Which of the following statements about the inflation in Austria are correct, given the
data in the diagram.

A Between 2016 and 2022, the overall price level increased by 19.91% (use the consumer
price index data to calculate the number).
B The inflation rate decreased by 0.6 percentage points from 2018 to 2019.
C The inflation rate increased by 207.1% from 2021 to 2022.
D The inflation rate declined by 4.5% from 2017 to 2018.
E All answers are correct.

43) If a distribution has a strong positive skew, then which of the following is false?
A The distribution has a longer tail on the right than on the left.
B The median is larger than the mean.
C The empirical rule does not apply.
D The distribution is not symmetric.
E The median is larger than the fourth decile.

44) The percentage of a distribution falling below the third quartile

A depends on the shape of the distribution.
B depends on the number of observations.
C depends on the median of the distribution.
D depends on the standard deviation of the distribution.
E Is independent of any other measure of descriptive statistic.

45) The term "bin width" refers to what aspect of a histogram?

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A The range of data values.
B The average relative frequency of each class.
C A measure of "distribution skew".
D The difference between the top and bottom values of the class intervals.
E The number of observations within each bin.

46) Assume that the number of meals consumer per day at LBS mensa follows a normal
distribution with a mean of 35 and a standard deviation of 10. According to the empirical
rule, determine the minimum and the maximum such that 95% of all meals consumer are
included. (minimum, maximum)
A (34, 36)
B (15,55)
C (30,40)
D (25,35)
E (0,100)

47) Loan grading is a classification system that involves assigning a quality score to a loan
based on a borrower's credit history, quality of the collateral, and the likelihood of
repayment of the principal and interest. Assume that a commercial bank uses a loan
grading scheme from A to G, with A denoting the best grade, i.e. the safest loan from the
perspective of the bank. The controlling has constructed a frequency distribution for the
loan grading variable for all loan applicants in 2022. Which diagram would be an
appropriate display for a presentation to the CFO?
I. Bar chart
II. Histogram
III. Pie chart

A Only I
B Only II
C Only III
D I and II
E I and III

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48) Which of the following procedures most likely results in a representative sample of LBS
students?
A You interview your friends about their opinion.
B You talk to the student cohort representatives.
C You ask all students which eat at the mensa on Wednesday (“Schnitzeltag”).
D You write the names of all LBS students on a piece of paper, put them in a boy and select
a number of them at random.
E You interview every tenth student who arrives in the morning (8:30-10:00 am) at the
front door in Hofzeile.

49) Which study design is best if you want to find out whether more learning leads to better
grades in statistics?
A Ask your colleagues about their grades and study time.
B Ask for volunteers and put them into two groups by using a random mechanism. Then
assign different study times to the two groups and observe the test results.
C This question cannot be answered because every student is different in motivation and
innate ability.
D Interview your professor and he will tell you.
E None of the above.

50) Identify which value represents a statistic.

A American households spent an average of about $52 in 2007 on Halloween merchandise
such as costumes, decorations, and candy.
B Marketing experts conducted a survey in 2008. The survey included 1,500 households
and found that average Halloween spending was $58 per household.
C The average GPA of students in 2001 at a private university was 3.37.
D A survey on a sample of 203 students from the University of Vienna yielded an average
GPA of 3.59 a decade later.
E Answers B and D

51) Which of the following statements about measures of concentration are true? Assume
that all measures are calculated by using percentage numbers.
I. The HHI is always larger than the CR8.
II. The lower the HHI, the more the market structure corresponds to an oligopoly.
III. A concentration ratio above 100% means that the market is dominated by a
monopoly.
A I only
B II only
C I & III
D II & III
E I, II & III

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52) During a two-week period, a surgeon has a mean completion time for three different
surgeries of 4 hours and 32 minutes (i.e. 272 minutes) with a variance of 0 minutes. The
next surgery performed by the surgeon was completed in 4 hours and 14 minutes (i.e.
254 minutes). What is the standard deviation for the four surgery completion times?
A 81 minutes
B 0 minutes
C 9 minutes
D 18 minutes
E All Answers are false.

53) Which of the following is an advantage of a boxplot as compared to a histogram?

I. A boxplot allows you to identify actual measures of variability.
II. A boxplot allows you to identify a precise measure of central tendency.
III. A boxplot makes it easy to compare several distributions by plotting them in the
same graph.

A I
B II and III
C I and III
D I and II
E I, II and III

54) A survey asked managers whether their company is active in the export business (yes,
no) as well as about their revenue (low, high). Consider the table below which is based
on the data from this survey. What can you conclude?
Revenue low Revenue high
Exports no 77% 12%
Exports yes 6% 5%

A Given the information, it cannot be determined whether exports and revenue are
dependent or independent.
B Exports and revenue are independent.
C Exports are the main causal factor which explains the higher revenue for exporting firms.
D Exports and revenue are neither dependent nor independent but jointly determined.
E All answers are incorrect.

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55) To the nearest tenth, what is the sample mean, sample variance and sample standard
deviation of the following data set? { 100 , 45 , 25 , 35 ,50 , 60 , 70 ,72 , 15 }
A x=20.7 , s2=991.4 , s=31.5
B x=50.1 , s 2=91.4 , s=626.3
C x=20.7 , s2=91.4 , s=322.1
D x=52.4 , s2=691.3 , s=26.3
E All answers are wrong.

56) The average annual returns over the past ten years for 20 utility stocks have the
following statistics: 1st quartile = 7; Median = 8; 3rd quartile = 9; Mean = 8.5; Standard
deviation = 2; Range = 5. Give the five numbers that make up the five-number summary
for this data set.
A 2, 2, 7, 8, 9
B 2, 2, 7, 8, 8.5
C The five-number summary can’t be found.
D 5, 7, 8, 8.5, 9
E 2, 7, 8, 8.5, 9

57) Biologists gather data on a sample of fish in a large lake. They capture, measure the
length of, and release 1,000 fish. They find that the standard deviation is 5 centimeters,
and the mean is 25 centimeters. They also notice that the shape of the distribution
(according to a histogram) is very much skewed to the left (which means that some fish
are smaller than most of the others). Approximately what percentage of fish in the lake is
likely to have a length within one standard deviation of the mean?

A about 68%
B about 50%
C about 34%
D about 26%
E cannot be determined with the information given

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58) The following box plots represent GPAs of students from two different colleges, call them
College 1 and College 2.

What information is missing on this graph and on the box plots?

A the total sample size

B the number of students in each college
C the mean of each data set
D Choices A and B
E Choices A, B, and C

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59) The following pie chart shows the proportion of students enrolled in different colleges
within a university.

If some students were enrolled in more than one college, what type of graph would be
appropriate to show the percentage in each college?

A the same pie chart

B a separate pie chart for each college showing what percentage are enrolled and what
percentage aren’t
C a bar graph where each bar represents a college and the height shows what percentage
of students are enrolled
D Choices B and C
E none of the above

60) Which of the following terms describe the overall long-term tendency of a time series?
A Trend
B Cyclical component
C Irregular component
D Seasonal component
E Descriptive component

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61) Which of the following terms is not involved when time series data are recorded
annually?
A Trend
B Cyclical component
C Irregular component
D Seasonal component
E Normative component

Example A: The diagram below shows the relative proportion of the Austrian net wealth
(assets – liabilities) held by the richest members of the population in the year 2017.

62) Ad Example A: Complete the gaps in the following sentence by selecting the correct
combination to fill the two gaps so that the sentence becomes a correct statement based
about wealth distribution in Austria. The first expression in brackets refers to the first
gap. In the year 2017, the_____________ of the population held in
total______________of the Austrian net wealth.
A (poorest 50%; 4%)
B (richest 6%; 43%)
C (poorest 95%; more than 60%)
D (richest 10%; less than the poorest 90%)
E (richest 10%; less than 50%)

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63) Ad Example A: Which of the following statements about Example A is correct?
A Example A displays a histogram.
B Example A displays a bar chart.
C Example A displays a normal distribution.
D Example A displays a binomial distribution.
E Answers A and D.

64) What type of variables and how many of them are displayed in the diagram below?

A 3 ordinal variables, 5 nominal variables

B 2 ordinal variables
C 2 nominal variables, 3 numerical variables
D 2 categorical variables, 1 numerical variable
E 1 numerical variable, 7 ordinal variables, 1 nominal variable

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Formulas
n

∑ xi
x= i=1
n

x w =∑ x i wi with ∑ wi =1
i i

√
n

∑ ( x i−x )2
i=1
s=
n−1

Range=xmax −x min

IQR=Q 3−Q1

xi −x
z i=
sx

Salesi
si=
∑ Salesi
i

CR m=s 1+ …+s m

N
HI =∑ s 2i with si as a percentage
1

Num ber of bins=1+3.3∗log ⁡(n)

Merger guidelines in the US

• Markets in which the HHI is between 1,500 and 2,500 points are considered as moderately
concentrated and markets in which the HHI is in excess of 2,500 points are defined as highly
concentrated.
• Horizontal mergers that increase the HHI by more than 200 points in highly concentrated
markets are presumed likely to enhance market power.
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Solutions
Question Answer Question Answer
1 B 33 B
2 B 34 C
3 C 35 E
4 B 36 E
5 E 37 D
6 D 38 A
7 A 39 E
8 C 40 B
9 D 41 A
10 A 42 E
11 E 43 B
12 A 44 E
13 E 45 D
14 D 46 B
15 C 47 E
16 E 48 D
17 E 49 B
18 D 50 E
19 A 51 A
20 C 52 C
21 A 53 E
22 C 54 E
23 E 55 D
24 E 56 C
25 C 57 E
26 D 58 E
27 C 59 D
28 A 60 A
29 A 61 D
30 C 62 A
31 D 63 B
32 A 64 B

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