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STATISTICS FOR BUSINESS

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EDITON BY LIND MARCHAL
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Student: ___________________________________________________________________________
1. i. It is often not feasible to study the entire population because it is impossible to
check all the items in the population.
ii. Sampling a population is often necessary because the cost of studying all the
items in the population is prohibitive.
iii. Sampling is a sign of laziness on the part of the statistician.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).

D. (ii) and (iii) are correct statements but not (i).

E. (i), (ii), and (iii) are all false statements.

2. i. A simple random sample assumes that each item or person in the population
has an equal chance of being included.
ii. We can expect some difference between sample statistics and the corresponding
population parameters. This difference is called the sampling error.
iii. A sampling distribution of the means is a probability distribution consisting of a
list of all possible sample means of a given sample size selected from a population
and the probability of occurrence associated with each sample mean.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

3. i. If probability sampling is done, each item in the population has a chance of

being chosen.
ii. If the size of a sample equals the size of the population, we would not expect any
error in estimating the population parameter.
A. (i) and (ii) are both correct statements.
B. (i) is correct but not (ii).
C. (ii) is correct but not (i).
D. (ii) and (ii) are both false statements.

4. i. If the sample size keeps getting larger and larger and finally equals the size of
the population, there would be no error in predicting the population mean because
the sample size and the size of the population would be the same.
ii. A simple random sample assumes that each item or person in the population has
an equal chance of being included.
iii. We can expect some difference between sample statistics and the corresponding
population parameters. This difference is called the sampling error.
A. (i), (ii), and (iii) are all correct statements

B. (i) and (ii) are correct statements but not (iii).

C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

5. What is it called when all the items in a population have a chance of being
selected in a sample?
A. Random sampling
B. z-score
C. Sampling error
D. Nonprobability sampling

6. Manufacturers were subdivided into groups by volume of sales. Those with more
than $100 million in sales were classified as Class A large; those from $50 to $100
million as Class A medium size; and those between $25 and $50 million, and so on.
Samples were then selected from each of these groups. What is this type of
sampling called?
A. Simple random
B. Stratified random
C. Cluster
D. Systematic

7. Suppose we select every fifth invoice in a file. What type of sampling is this?
A. Simple random
B. Stratified random
C. Cluster
D. Systematic

8. We wish to study the advertising expenditures for the 200 largest companies in
Canada. Suppose the objective of the study is to determine whether firms with high
returns on equity (a measure of profitability) spent more of each sales dollar on
advertising than firms with a low return or deficit. To make sure that the sample is a

fair representation of the 200 companies, the companies are grouped on percent
return on equity

What is this type of sampling called?

A. Simple random
B. Stratified random
C. Cluster
D. Systematic

9. What is the difference between a sample mean and the population mean called?
A. Standard error of the mean
B. Sampling error
C. Interval estimate
D. Point estimate

10. Suppose we select every tenth invoice in a file. What type of sampling is this?
A. Random
B. Cluster
C. Stratified
D. Systematic
E. None of the choices are correct

11. A province-wide sample survey is to be made. First, the province is subdivided

into counties. Seven counties are selected at random and further sampling is
concentrated on these seven counties. What type of sampling is this?
A. Simple random
B. Non proportional
C. Cluster
D. Stratified

12. Sampling error is the difference between a corresponding sample statistic and
the
A. sample mean.
B. biased sample.
C. population parameter.
D. chance error.

13. i. An estimate of the population mean based on a large sample is less reliable
than an estimate made using a small sample.
ii. The standard error of the mean will vary according to the size of the sample that
is in the denominator. As the sample size n gets larger, the variability of the sample
means gets smaller.
iii. To determine the value of the standard error of the mean, the total error is
divided by the sample size.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement, but not (ii) or (iii).
C. (ii) is a correct statement, but not (i) or (iii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

14. (i) As the sample size (n) increases, the spread in the distribution of the sample
means stays the same.
(ii) If the sampling size equals the population size, the sampling error is 1.
(iii) If a population is normally distributed, the sampling distribution of the mean is
normally distributed.
A. (i), (ii), and (iii) are all correct statements.
B. (iii) is a correct statement, but not (i) or (ii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

15. Which of the following is the standard error of the mean?

A.
B. x/n
C.
D. s/n

16. All possible samples of size n are selected from a population and the mean of
each sample is determined. What is the mean of the sample means?
A. Exactly the same as the population mean
B. Larger than the population mean
C. Smaller than the population mean
D. Cannot be estimated in advance

17. The mean of all possible sample means is equal to the

A. population variance.
B. 2/n.
C. sample variance.
D. population mean.

18. An experiment involves randomly selecting a sample of 256 middle managers

for study. One item of interest is their mean annual income. The sample mean is
computed to be $35,420 and the sample standard deviation is $2,050. What is the
standard error of the mean?
A. $5.65
B. $128.13
C. $138.36
D. $2,050
E. $8.01

19. A group of statistics students decided to conduct a survey at their university to

find the average (mean) amount of time students spend studying per week. Based
on a simple random sample, they surveyed 144 students. The statistics showed that

students studied an average of 20 hours per week with a standard deviation of 10

hours.
What is the standard error of the mean?
A. 0.83
B. 10
C. 0.5
D. 2

20. An accounting firm is planning for the next tax preparation season. From last
year's returns, the firm collects a systematic random sample of 100 filings. The 100
filings showed an average preparation time of 90 minutes with a standard deviation
of 140 minutes.
What is the standard error of the mean?
A. 14 minutes
B. 140 minutes
C. 1.4 minutes
D. 90 minutes

21. As the size of the sample increases, what happens to the shape of the sampling
means?
A. Cannot be predicted in advance
B. Approaches a normal distribution
C. Positively skewed
D. Negatively skewed

22. What sample statistic is used to estimate a population parameter?

A. Parameter
B. Sampling error
C.
D. Interval estimate
E. None of the choices are correct

23. For a population that is not normally distributed, the distribution of the sample
means will:
A. be negatively skewed.
B. approach the normal distribution.
C. be positively skewed.
D. take the same shape as the population.

24. i. If a population is not normally distributed, the sampling distribution of the

sample means tends to approximate a normal distribution.
ii. The Central Limit Theorem states that if the sample size n is sufficiently large, the
sampling distribution of the means will be approximately normal no matter whether
the population is normally distributed, skewed, or uniform.
iii. Based on the sampling distribution of the means and the central limit theorem,
the sample mean can be used as a good estimator of the population mean,
assuming that the size of the sample is sufficiently large.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement, but not (ii) or (iii).
C. (ii) is a correct statement, but not (i) or (iii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

25. An accounting firm is planning for the next tax preparation season. From last
year's returns, the firm collects a systematic random sample of 100 filings. The 100
filings showed an average preparation time of 90 minutes with a standard deviation
of 140 minutes.
What assumptions do you need to make about the shape of the population
distribution of all possible tax preparation times to make inferences about the
average time to complete a tax form?
A. The population distribution is skewed to the right.
B. The population distribution is skewed to the left.
C. The population distribution is normal.
D. The shape of the population distribution does not matter.

26. Prince Edward Island Fisheries and Environment has been feeding a special food
to rainbow trout fingerlings in a pond. A sample of the weights of 40 trout revealed
that the mean weight is 402.7 grams and the standard deviation 8.8 grams. What is
the probability that the mean weight for a sample of 40 trout exceeds 405.5 grams?
A. 0.3783
B. 0.0228
C. 1.0
D. 0.5

27. Suppose a research firm conducted a survey to determine the average amount
of money steady smokers spend on cigarettes during a week. A sample of 100
steady smokers revealed that the sample mean is $20 and the sample standard
deviation is $5. What is the probability that a sample of 100 steady smokers spend
between $19 and $21?
A. 0.4772
B. 0.0228
C. 0.9544
D. $20

28. An experiment involves selecting a random sample of 256 middle managers at

random for study. One item of interest is their mean annual income. The sample
mean is computed to be $35,420 and the sample standard deviation is $2,050.
What is the standard error of the mean?
A. $128.125
B. $138.36
C. $2,050
D. $8.01

29. The mean weight of trucks traveling on a particular section of I-475 is not
known. A provincial highway inspector needs an estimate of the mean. He selects a
random sample of 49 trucks passing the weighing station and finds the mean is
15.8 tonnes, with a standard deviation of the sample of 4.2 tonnes. What is
probability that a truck will weigh less than 14.3 tonnes?
A. 0.0062
B. 0.3632

C. 0.1368
D. 0.4938

30. Suppose a research firm conducted a survey to determine the average amount
of money steady smokers spend on cigarettes during a week. A sample of 100
steady smokers revealed that the sample mean is $80 and the sample standard
deviation is $20. What is the probability that a sample of 100 steady smokers spend
between $76 and $84?
A. 0.4772
B. 0.0228
C. 0.9544
D. 0.3400
E. 0.9999

31. Mileage tests were conducted on a randomly selected sample of 100 newly
developed automobile tires. The average tread wear was found to be 50,000 miles
with a standard deviation of 3,500 miles. What is the best estimate of the average
tread life in miles for the entire population of these tires?
A. 50,000
B. 3,500
C. (50,000/100)
D. (3,500/100)

32. An accounting firm is planning for the next tax preparation season. From last
year's returns, the firm collects a systematic random sample of 100 filings. The 100
filings showed an average preparation time of 90 minutes with a standard deviation
of 140 minutes.
What is the probability that the mean completion time will be more than 120
minutes?
A. Approximately zero
B. 0.0832
C. 0.4168
D. 0.0162

33. An accounting firm is planning for the next tax preparation season. From last
year's returns, the firm collects a systematic random sample of 100 filings. The 100
filings showed an average preparation time of 90 minutes with a standard deviation
of 140 minutes.
What is the probability that the mean completion time is between 1 and 2 hours,
i.e., 60 and 120 minutes?
A. Approximately 1
B. 0.1664
C. 0.8336
D. 0.9676

34. An accounting firm is planning for the next tax preparation season. From last
year's returns, the firm collects a systematic random sample of 100 filings. The 100
filings showed an average preparation time of 90 minutes with a standard deviation
of 140 minutes.
What is the probability that a sample mean would exceed 90 minutes per filing?
A. 1.0
B. 0.5
C. 1.96
D. Cannot be calculated based on the given information.

35. An accounting firm is planning for the next tax preparation season. From last
year's returns, the firm collects a systematic random sample of 100 filings. The 100
filings showed an average preparation time of 90 minutes with a standard deviation
of 140 minutes.
What is the probability of finding a sample mean less than 80 minutes?
A. 0.7143
B. 0.7625
C. 0.2375
D. 0.0180

36. An accounting firm is planning for the next tax preparation season. From last
year's returns, the firm collects a systematic random sample of 100 filings. The 100

filings showed an average preparation time of 90 minutes with a standard deviation

of 140 minutes.
What is the probability that average preparation time is between 80 and 90
minutes?
A. 0.7143
B. 0.7625
C. 0.2375
D. 0.2625

37. The Intelligence Quotient (IQ) test scores are normally distributed with a mean
of 100 and a standard deviation of 15.

i. What is the probability that a person would score between 85 and 115?
ii. Given a class with 25 students, what is the probability that the class' average IQ
score is between 85 and 115?
A. 0.3414, 0.0228
B. 0.6826, 0.9772
C. 0.6826, Approximately zero
D. 1.0, 0.9544

38. The Intelligence Quotient (IQ) test scores are normally distributed with a mean
of 100 and a standard deviation of 15.

i. What is the probability that a person would score 130 or more on the test?
ii. You enrolled in a class of 25 students. What is the probability that the class'
average IQ exceeds 130?
A. 0.0228, 0.4987
B. 0.4772, 0.300
C. 0.4772, 0.0026
D. 0.0228, approximately zero

39. The daily sales of a small retail store in Toronto for the last 365 days are
normally distributed with a mean of $2,050, and a standard deviation of $300.

i. What is the probability of daily sales exceeding $2,500?

ii. From a sample of 49 days, what is the probability of having a sample mean less
than $2,500?
A. 0.4332, 0.0668
B. 0.0668, 0.9332
C. 0.4332, approximately 100%
D. 0.0668, Approximately 0%
E. 0.0668, Approximately 100%

40. The daily sales of a small retail store in Toronto for the last 365 days are
normally distributed with a mean of $2,050, and a standard deviation of $300. From
a sample of 49 days, what is the probability of having a sample mean more than
$2,000?
A. 0.3790
B. 0.8790
C. 0.121
D. Approximately zero
E. Approximately 100%

41. A new extended-life light bulb has an average service life of 750 hours, with a
standard deviation of 50 hours. The shape of this distribution is unknown. From a
sample of 100 light bulbs, about what percent of the bulbs will last more than 700
hours?
A. 100%
B. 34.13%
C. 84.13%
D. 50%

42. A study of a company's practice regarding the payment of invoices revealed

that on the average an invoice was paid 20 days after it was received. The standard

deviation equalled five days. A sample of 25 invoices is selected. Assuming that the
distribution is normal, what percent of the sampled invoices were paid within 15
days of receipt?
A. 100%
B. 37.91%
C. 34.13%
D. 86.74%

43. The mean rent for a two-bedroom apartment in the Greater Toronto Area is
$2,000 per month. The distribution of the monthly costs does not follow the normal
distribution. In fact, it is positively skewed. What is the probability of selecting a
sample of 36 two-bedroom apartments and finding the mean to be at least $1,500
per month? The standard deviation of the sample is $300.
A. 34.13%
B. 84.13%
C. 50%
D. 100%

44. The mean rent for a two-bedroom apartment in the Greater Toronto Area is
$2,000 per month. The distribution of the monthly costs does not follow the normal
distribution. In fact, it is positively skewed. What is the probability of selecting a
sample of 36 two-bedroom apartments and finding the mean to be under $1,500
per month? The standard deviation of the sample is $300.
A. 34.13%
B. 84.13%
C. 50%
D. 100%

45. GreenFacts, a non-profit organization, reports that the average adult in Europe
consumed 17 litres of alcohol last year. The standard deviation is 2.1 litres. If we
randomly select 42 European adults, what is the probability that the sample mean is
more than 17.8 litres?
A. 0.0068
B. 0.4873

C. 0.0058
D. 0.4863
E. 0.0680

46. The mean rent for a two-bedroom apartment in the Greater Toronto Area is
$2,000 per month. The distribution of the monthly costs does not follow the normal
distribution. In fact, it is positively skewed. What is the probability of selecting a
sample of 36 two-bedroom apartments and finding the mean to be under $1,800
per month? The standard deviation of the sample is $300.
A. 34.13%
B. 0%
C. 50%
D. 100%

47. It has been estimated that 25% of all university students switch majors within
their first two years of starting classes. If a random sample of 500 third-year
students is taken at a city university, what is an estimate of the probability that 20%
or more had switched majors within their first two years?
A. .4951
B. .0049
C. .9951
D. 0.5059

48. Dawson's Repair Service orders parts from an electronic company who
advertises its parts o be no more than 2% defective. What is the probability that Bill
Dawson finds 4 or more parts out of a sample of 50 to be defective?
A. Almost 100%
B. Less than one half of one percent
C. About 1%
D. Almost 50%

49. A convenience store estimates that 25% of its customers come in to buy milk.
What is the probability that out of the next 200 customers, 60 or fewer will buy
milk?

A. 0.4484
B. 0.9484
C. 0.0516
D. Almost no chance
E. 0.0505

50. A retailer claims that 90% of its customers are "pleased" or "very pleased" with
the customer service. In a survey of 300 customers taken last week, what is the
probability that 84% or more will be "pleased" or "very pleased" with the service?
A. 0.1736
B. 0.5736
C. 0.3464
D. Almost 100%
E. Almost no chance

51. A retailer claims that 90% of its customers are "pleased" or "very pleased" with
the customer service. In a survey of 300 customers taken last week, what is the
probability that between 80% and 90% will be "pleased" or "very pleased" with the
service?
A. 0.1736
B. 0.5736
C. 0.3464
D. Almost 100%
E. Almost 50%

52. 70% of North American women have pierced ears. In a survey of 49 women,
what is the probability that less than 30 had pierced ears?
A. 0.0901
B. 0.5901
C. 0.9099
D. 0.4099

53. 70% of North American women have pierced ears. For a survey of 49 women,
what is the standard error?
A. 0.5
B. 0.7
C. 0.0655
D. 0.4245
E. 0.3

54. Alpha Corporation receives a shipment of flour every morning from their
supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more
than 5% underweight. The foreman samples 50 bags with each shipment and if the
bags average more than 5% underweight, the whole shipment is returned to the
supplier. Determine the value for the standard error of the proportion.
A. 0.03082
B. 0.0095
C. 0.00707
D. 0.00095
E. 0.09747

55. Alpha Corporation receives a shipment of flour every morning from their
supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more
than 4% underweight. The foreman samples 60 bags with each shipment and if the
bags average more than 4% underweight, the whole shipment is returned to the
supplier. Determine the value for the standard error of the proportion.
A. 0.0250
B. 0.0253
C. 0.00064
D. 0.0064
E. 0.08

56. Dawson's Repair Service orders parts from an electronic company who
advertises its parts o be no more than 2% defective. What is the probability that Bill
Dawson finds 4 or more parts out of a sample of 50 to be defective?
A. Almost 100%

B. Less than one half of one percent

C. About 1%
D. Almost 50%
E. About 2%

57. Dawson's Repair Service orders parts from an electronic company who
advertises its parts o be no more than 2% defective. What is the probability that Bill
Dawson finds 2 or more parts out of a sample of 50 to be defective?
A. Almost 100%
B. 0.0217
C. 0.1562
D. Almost 50%
E. 0.4783

58. Dawson's Repair Service orders parts from an electronic company who
advertises its parts o be no more than 2% defective. What is the probability that Bill
Dawson finds 3 or more parts out of a sample of 50 to be defective?
A. Almost 100%
B. 0.0217
C. 15.62%
D. Almost 50%
E. 34.38%

59. Dawson's Repair Service orders parts from an electronic company who
advertises its parts o be no more than 2% defective. What is the probability that Bill
Dawson finds 3 or more parts out of a sample of 60 to be defective?
A. 4.85%
B. 0.485%
C. 15.62%
D. Almost 50%
E. 22.96%

60. Dawson's Repair Service orders parts from an electronic company who
advertises its parts o be no more than 2% defective. What is the probability that Bill
Dawson finds 4 or more parts out of a sample of 60 to be defective?
A. 4.85%
B. 0.49%
C. 15.62%
D. Almost 50%
E. 22.96%

61. Dawson's Repair Service orders parts from an electronic company who
advertises its parts o be no more than 2% defective. What is the probability that Bill
Dawson finds 2 or more parts out of a sample of 60 to be defective?
A. 4.85%
B. 0.49%
C. 15.62%
D. Almost 50%
E. 22.96%

62. Alpha Corporation receives a shipment of flour every morning from their
supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more
than 5% underweight. The foreman samples 35 bags with each shipment and if the
bags average more than 5% underweight, the whole shipment is returned to the
supplier. Determine the value for the standard error of the proportion.
A. 0.0368
B. 0.00095
C. 0.0014
D. 0.0471
E. 0.00386

63. Alpha Corporation receives a shipment of flour every morning from their
supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more
than 5% underweight. The foreman samples 60 bags with each shipment and if the
bags average more than 5% underweight, the whole shipment is returned to the
supplier. Determine the value for the standard error of the proportion.

A. 0.02814
B. 0.01504
C. 0.00792
D. 0.08898
E. 0.1234

64. Alpha Corporation receives a shipment of flour every morning from their
supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more
than 5% underweight. The foreman samples 36 bags with each shipment and if the
bags average more than 5% underweight, the whole shipment is returned to the
supplier. Determine the value for the standard error of the proportion.
A. 0.00132
B. 0.0363
C. 0.00792
D. 0.08898
E. 0.1234

65. Alpha Corporation receives a shipment of flour every morning from their
supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more
than 4% underweight. The foreman samples 60 bags with each shipment and if the
bags average more than 4% underweight, the whole shipment is returned to the
supplier. Determine the value for the standard error of the proportion.
A. 0.00132
B. 0.0253
C. 0.00064
D. 0.08898
E. 0.0250

66. Alpha Corporation receives a shipment of flour every morning from their
supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more
than 4% underweight. The foreman samples 50 bags with each shipment and if the
bags average more than 4% underweight, the whole shipment is returned to the
supplier. Determine the value for the standard error of the proportion.
A. 0.00132

B. 0.000768
C. 0.00064
D. 0.02771
E. 0.0250

67. Alpha Corporation receives a shipment of flour every morning from their
supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more
than 4% underweight. The foreman samples 40 bags with each shipment and if the
bags average more than 4% underweight, the whole shipment is returned to the
supplier. Determine the value for the standard error of the proportion.
A. 0.03098
B. 0.00096
C. 0.00064
D. 0.02771
E. 0.0250

68. (i) The type of sampling when a population is first divided into subgroups and
then a sample is selected from each subgroup is called stratified random sampling.
(ii) Auditors may select every 20th file starting with say, the 5th file in the top
drawer. Then file numbers 25, 45, 65, 85,... are audited. This type of sampling is
called systematic sampling.
(iii) The mean of a population is called a parameter.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

69. (i) The type of sampling when a population is first divided into subgroups and
then a sample is selected from each subgroup is called random sampling.
(ii) Auditors may select every 20th file starting with say, the 5th file in the top
drawer. Then file numbers 25, 45, 65, 85,... are audited. This type of sampling is
called systematic sampling.

(iii) The mean of a population is called a parameter.

A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

70. (i) The type of sampling when a population is first divided into subgroups and
then a sample is selected from each subgroup is called stratified random sampling.
(ii) Auditors may select every 20th file starting with say, the 5th file in the top
drawer. Then file numbers 25, 45, 65, 85,... are audited. This type of sampling is
called cluster sampling.
(iii) The mean of a population is called a parameter.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

71. (i) For populations scattered in a wide area, the preferred technique for
sampling is cluster sampling.
(ii) If the population can be divided into homogeneous subgroups, stratified random
sampling is the best sampling method to use.
(iii) If every k-th item in the population sequence is selected, you are using
systematic random sampling.
A. (i), (ii), and (iii) are all correct statements
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

72. (i) For populations scattered in a wide area, the preferred technique for
sampling is simple random sampling.
(ii) If the population can be divided into homogeneous subgroups, stratified random
sampling is the best sampling method to use.
(iii) If every k-th item in the population sequence is selected, you are using
systematic random sampling.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

73. (i) For populations scattered in a wide area, the preferred technique for
sampling is cluster sampling.
(ii) If the population can be divided into homogeneous subgroups, stratified random
sampling is the best sampling method to use.
(iii) If every k-th item in the population sequence is selected, you are using cluster
sampling.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

74. (i) The standard error of the mean is the standard deviation of the sampling
distribution of the sample means.
(ii) The standard deviation of the sampling distribution of the mean is always
smaller than the standard deviation of the population under study.
(iii) For a sampling distribution of the means, 95% of the means would be between
1.96 standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).

D. (ii) and (iii) are correct statements but not (i).

E. (i), (ii), and (iii) are all false statements.

75. (i) The standard error of the mean is the standard deviation of the sampling
distribution of the sample means.
(ii) The standard deviation of the sampling distribution of the mean is always larger
than the standard deviation of the population under study.
(iii) For a sampling distribution of the means, 95% of the means would be between
1.96 standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

76. (i) The standard error of the mean is the standard deviation of the sampling
distribution of the sample means.
(ii) The standard deviation of the sampling distribution of the mean is always
smaller than the standard deviation of the population under study.
(iii) For a sampling distribution of the means, 90% of the means would be between
1.96 standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

77. (i) As the sample size (n) increases, the spread in the distribution of the sample
means decreases.
(ii) If the sampling size equals the population size, the sampling error is zero.
(iii) If a population is normally distributed, the sampling distribution of the mean is
normally distributed.
A. (i), (ii), and (iii) are all correct statements.

B. (i) and (ii) are correct statements but not (iii).

C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

78. (i) As the sample size (n) increases, the spread in the distribution of the sample
means increases.
(ii) If the sampling size equals the population size, the sampling error is zero.
(iii) If a population is normally distributed, the sampling distribution of the mean is
normally distributed.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

79. (i) As the sample size (n) increases, the spread in the distribution of the sample
means decreases.
(ii) If the sampling size equals the population size, the sampling error is 1.
(iii) If a population is normally distributed, the sampling distribution of the mean is
normally distributed.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.