Name:____________________________

Date: ______________

University of Belize
MATH 2025 Business Statistics Sect. _____
Test I

Time Allowed: 70 minutes

Do all problems and show work in PEN! Good Luck!

1. [3x10=30 points] Mark the following as True (T) or False (F) to the right of each statement.

a. The mode is more applicable to quantitative data than to qualitative data. ( )

b. A histogram has bars that are not separated. ( )

c. Variance and standard deviation are not measures of variability. ( )

d. The mean and median are all measures of central location. ( )

e. The range, (L.V. S.V.), cannot be used to determine an approximate range for standard
deviation. ( )

f. Variance is standard deviation squared. ( )

g. A mean which is less than the median, indicates a rightward skewed. ( )

h. The magnitude of the z-score indicates if the data value is an outlier. ( )

i. A z-score of two indicates a value for x that is two standard deviations above the sample
mean. ( )

j. A z-score of 3.12 does not indicate an outlier. ( )

1
 2. The total annual compensation for a board member of the nations 100 biggest public companies
is based in part on the cash retainer, an annual payment for serving on the board. In addition to
the cash retainer, a board member may receive a stock retainer, a stock grant, a stock option, and
a fee for attending board meetings. The total compensation can easily exceed $100,000 even
with an annual retainer as low as $15,000. The following data show the cash retainer for a
sample of 15 of the nations biggest public companies.

Company Cash Retainer (in $1,000)

American Express 64
Bank of America 36
Boeing 26
Chevron 35
Dell Computer 40
DuPont 35
ExxonMobil 40
Ford Motor 30
General Motors 60
International Paper 36
Kroger 28
Lucent Technology 50
Motorola 20
Sears Roebuck 30
Texaco 15

Compute the following descriptive statistics a to d, and answer questions e to g. [10 points each]

a. Mean, median, and mode Ans:_____, Ans:______, Ans:______

b. The first and third quartiles Ans:_____, Ans:______
c. The range and interquartile range (IQR) Ans:_____, Ans:______
d. The variance and standard deviation Ans:_____, Ans:______
e. What is the z-score of American Express? Ans:_____
f. What is the z-score of Motorola? Ans:_____
g. Are there any outliers and why?