1. What is the formula for calculating the correlation

coefficient between two variables in Excel?

a) CORREL(array1, array2)

b) COVAR(array1, array2)

c) COEFF(array1, array2)

d) CORR(array1, array2)

Answer: A. The CORREL function returns the Pearson

correlation coefficient of two arrays of numbers.

2. What is the difference between a discrete and a

continuous probability distribution?

a) A discrete distribution has a finite number of possible

outcomes, while a continuous distribution has an infinite

number of possible outcomes.

b) A discrete distribution has an infinite number of possible

outcomes, while a continuous distribution has a finite

number of possible outcomes.

c) A discrete distribution has equal probabilities for all

outcomes, while a continuous distribution has varying

probabilities for different outcomes.

d) A discrete distribution has varying probabilities for

different outcomes, while a continuous distribution has

equal probabilities for all outcomes.

Answer: A. A discrete distribution is one that can take on

only a finite or countable number of values, such as the

number of heads in a coin toss. A continuous distribution is

one that can take on any value in an interval, such as the

height of a person.