# BUS. ECONOMICS: CHAPTER 1 - Problems for Section 1.5

## 11 terms

### Three different beverages are sold at a fast-food restaurant--soft drinks, tea, and coffee. Explain why the type of beverage sold is an example of a categorical variable.

The type of soft drink is a category.

### Soft drinks are sold in three sizes in a fast-food restaurant--small, medium, and large. Explain why the size of the soft drink is a categorical variable.

Small, medium, and large sizes are categories.

### Suppose that you measure the time it takes to download an MP3 file from the Internet. A)Explain why the download time is a numerical variable. B)Is the variable discrete or continuous?

A) It is expressed as a Numeric Value. B) Continuous

### For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. Explain why for each. A) Number of telephones per household B) Length (in minutes) of the longest long-distance call made per month. C) Whether there is a telephone line connected to a computer modem in the household. D) Whether there is a fax machine in the household

A) It is a numerical variable that is discrete because you figure it out through counting. B) Numerical; Continuous; the value is figured out through a measuring process C) It is a categorical variable because the answer can only be yes or no. D) Categorical; it is divided into a yes or no answer.

### The following information is collected from students upon exiting the campus bookstore during the first week of classes: A) Amount of time spent shopping in the bookstore. B) Number of textbooks purchased. C) Academic Major. D) Gender. Classify each of these variables as categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous.

A) Numerical; Continuous because time can be measured B) Numerical; discrete; because it is a value that arises through a counting process. C) Categorical; Because majors can be divided into categories D) Categorical; Because gender can be divided into male or female.

### For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. A) Name of Internet provider. B) Amount of time spent surfing the Internet per week. C) Number of e-mails received in a week. D) Number of online purchases made in a month. D) Number of online purchases made in a month.

A) Categorical B) numerical, continuous; C) numerical, discrete; D) numerical, discrete.

### For each of the following variables, determine whether the variable is categorical or numerical. If the variable is Numerical, determine whether the variable is discrete or continuous. A) Amount of money spent on clothing in the last month. B) Favorite department store. C) Most likely time period during which shopping for clothing takes place (weekday, weeknight, or weekend). D) Number of pairs of winter gloves owned.

A) Numerical; continuous B) Categorical; C) Categorical D) Numerical; discrete

### Suppose the following information is collected from Robert Keeler on his application for a home mortgage loan at the Metro County Savings and Loan Association: A) Monthly Payments: \$1,427 B) Number of Jobs in Past 10 Years: 1 C) Annual Family Salary Income: \$86,000 D) Marital Status: Married. Classify each of the responses by type of data.

A) numerical, continuous B) numerical, discrete C) numerical, continuous D) Categorical

### One of the variables most often included in surveys is income. Sometimes the question is phrased "What is your income (in thousands of dollars)?" In other surveys, the respondent is asked to "Place an X in the circle corresponding to your income level" and given a number of ranges to choose from. A) In the first format, explain why income might be considered either discrete or continuous. B)Which of these two formats would you prefer to use if you were conducting a survey? Why? C) Which of these two formats would likely bring you a greater rate of response? Why?

A) Income is continuous because it is not composed of a finite number of integers. B) I would prefer to use the second format because it would be more stable. C) The second format. People would be more comfortable not having to reveal their exact income.

### If two students score a 90 on the same examination, what arguments could be used to show that the underlying variable-test score-is continuous?

The underlying variable, the ability of the students, may be continuous but the measuring device, the test, does not have enough precision to distinguish between the two students.

A)