1. Which of the following statements best describes the purpose of

descriptive statistics in business?

A) Descriptive statistics helps to make predictions about future outcomes.

B) Descriptive statistics summarizes data to provide a clear picture of

what has happened.

C) Descriptive statistics tests hypotheses about relationships between

variables.

D) Descriptive statistics helps to estimate population parameters with a

high degree of accuracy.

Answer: B) Descriptive statistics summarizes data to provide a clear

picture of what has happened.

Rationale: Descriptive statistics is used to organize, summarize, and

present data in a meaningful way to provide insight into what has already

occurred.

2. In business, inferential statistics is used for:

A) Describing data with measures of central tendency and dispersion.

B) Making predictions about future outcomes based on historical data.

C) Testing hypotheses and drawing conclusions about populations.

D) Summarizing data to provide a clear picture of past events.

Answer: C) Testing hypotheses and drawing conclusions about

populations.

Rationale: Inferential statistics is used to make inferences or predictions

about a population based on a sample of data.

3. What type of data is most commonly analyzed using descriptive

statistics in business?

A) Qualitative data

B) Discrete data

C) Continuous data

D) Categorical data

Answer: C) Continuous data

Rationale: Continuous data refers to measurements that can be represented

on a continuous scale, such as weight, height, or time, which are