3. Statistical Methods

Descriptive Statistics — Quiz

Test your understanding of descriptive statistics with 5 practice questions.

Practice Questions

Question 1

A business analyst is comparing the sales performance of two different product lines. Product Line A has a mean daily sales of $1000$ with a standard deviation of $200$, while Product Line B has a mean daily sales of $5000$ with a standard deviation of $800$. Which product line exhibits greater relative variability in sales, and what is the coefficient of variation for each?

Question 2

A marketing manager is analyzing customer demographics and finds that the distribution of customer ages is bimodal. Which of the following statements best describes a bimodal distribution and its implications for measures of central tendency?

Question 3

A financial analyst is examining the daily returns of a stock. The returns are approximately normally distributed with a mean of $0.05\%$ and a standard deviation of $1.2\%$ . According to the empirical rule (68-95-99.7 rule), what percentage of daily returns are expected to fall between $-2.35\%$ and $2.45\%$?

Question 4

A retail company is analyzing the relationship between the number of hours spent on sales training and the average weekly sales per employee. A scatter plot shows a strong positive linear relationship, and the calculated Pearson correlation coefficient is $0.92$. What can be inferred from this correlation coefficient in the context of business analytics?

Question 5

A data analyst is constructing a dashboard to monitor key performance indicators (KPIs) for a manufacturing process. One KPI is the 'defect rate' (percentage of defective products). Which type of chart would be most effective for visualizing the defect rate over time and identifying any trends or shifts in quality?