DeVry MATH 533 Final Exam

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Question 1.1.(TCO E) McCave Development Enterprises is considering whether to build a
shopping mall in Statesville. The manager wants you to analyze the relationship between
mall size and the rate of return on invested capital. You select a random sample of 16 cities
similar to Statesville in demographic and economic characteristics and collect the following
data onFOOTAGE(in 10,000 square feet) andRETURN(rate of return as a %).

Q2)Correlations: RETURN, FOOTAGE

Pearson correlation of RETURN and FOOTAGE = -0.954

P-Value = 0.000
a. Analyze the above output to determine the regression equation.
b. Find and interpret1in the context of this problem.
c. Find and interpret the coefficient of determination (r-squared).
d. Find and interpret coefficient of correlation.
e. Does the data provide significant evidence (a = .05) that Footage can be used to predict
Return? Test the utility of this model using a two-tailed test. Find the observed p-value and
interpret.
f. Find the 95% confidence interval for the mean rate of return on capital investment for
malls that have square footage of 150,000. Interpret this interval.
g. Find the 95% prediction interval for the rate of return on capital investment for a mall that

has square footage of 150,000. Interpret this interval.

h. What can we say about the rate of return on capital investment for a mall that has square
footage of 75,000?
(Points : 48)

1.(TCO E) The manager of a retail outlet suspects that sales of air conditioners are
associated with the price of the air conditioners, as well as the mean temperature. Twelve
weeks are selected at random. The results are found in the MINITAB printout below.

1. (TCO A) Consider the following age data, which is the result of selecting a random
sample of 22 Boeing 747 airplanes that are owned by United Airlines. The age of each
airplane is given in years.
17 5 5 12 8 5 8 16 14 12 22
15 5 8 17 5 4 2 22 17 20 23
3. Compute themean,median,mode, andstandard deviation, Q1, Q3, Min, and
Maxfor the above sample data on age of Boeing 747 airplanes owned by United
Airlines.
b. In the context of this situation, interpret the Median, Q1, and Q3. (Points : 33)

2. (TCO B) JR Trucking buys tires from three suppliers: Goodyear, Michelin, and
Bridgestone. Data on the last 1,000 tires that were purchased are described in the
table below.
Defective

Not Defective Total

3.
Goodyear

495

500

Michelin

294

300

Bridgestone

10

190

200

Total

21

979

1000

If you choose a tire at random, then find the probability that the tire
a. was made by Michelin.
b. was made by Goodyear and was defective.
c. was not defective, given that the tire was made by Bridgestone. (Points : 18)

3. (TCO B) A source in the Internal Revenue Service has stated that historically 90% of
federal tax returns filed are free of arithmetic errors. A random sample of 25 returns
are selected and checked carefully for arithmetic errors. Assuming independence,
find the probability thata. all 25 returns are free of arithmetic errors.
b. at most 23 returns are free of arithmetic errors.
c. more than 17 are free of arithmetic errors. (Points : 18)
4. (TCO B) Fuel efficiency for cars made in the United States is normally distributed with
a mean of 28.8 mpg and a standard deviation of 8.2 mpg.a. What percentage of cars
made in the United States have fuel efficiency above 40 mpg?
b. What percentage of cars made in the United States have fuel efficiency between 25
and 35 mpg?
c. A special tax credit is planned for the best (highest) 8% of cars made in the United
States in terms of fuel efficiency. How high must the fuel efficiency be in order to
qualify for this special tax credit? (Points : 18)

5. (TCO C) The manufacturer of batteries used in small electrical appliances wants to

estimate the average life of a battery. A random sample of 12 batteries yields the
following results.Sample Size = 12
Sample Mean = 34.2 hours
Sample Standard Deviation = 5.9 hours
a. Construct the 90% confidence interval for the average life of a battery.
b. Interpret this interval.
c. How many batteries should be sampled if we wish to generate a 90% confidence
interval for the average life of a battery that has a margin of error of 1 hour? (Points :
18)
7. (TCO D) A contract dispute between the National Football League and the Players
Association arose regarding the retirement system. The NFL agreed to a settlement
only if it could be shown convincingly that less than 60% of the players retired with 5
years or less playing time in their careers. A random sample of 200 retired NFL
players is selected with 116 having played for 5 years or less. Does the sample data
provide evidence to conclude that the percentage of players retiring with 5 years or
less of playing time is less than 60% (using a = .01)?a. Formulate the null and
alternative hypotheses.
b. State the level of significance.
c. Find the critical value (or values), and clearly show the rejection and nonrejection
regions.
d. Compute the test statistic.
e. Decide whether you can reject Ho and accept Ha or not.
f. Explain and interpret your conclusion in part e. What does this mean?
g. Determine the observed p-value for the hypothesis test and interpret this value.
What does this mean?
h. Does this sample data provide evidence (with a = .01), that the percentage of
players retiring with 5 years or less of playing time is less than 60%? (Points : 24)

8. (TCO D) A restaurant franchise company has a policy of opening new restaurants only
in areas that have a mean household income in excess of $65,000. The company is
currently considering an area to open a new restaurant. A random sample of 144
households from this area is selected yielding the following results.Sample Size = 144
Sample Mean = $66,124
Sample Standard Deviation = $7,400
Does the sample data provide evidence to conclude that the population mean annual
household income is in excess of $65,000 (using a = .05)? Use the hypothesis testing
procedure outlined below.
a. Formulate the null and alternative hypotheses.
b. State the level of significance.
c. Find the critical value (or values), and clearly show the rejection and nonrejection
regions.
d. Compute the test statistic.
e. Decide whether you can reject Ho and accept Ha or not.
f. Explain and interpret your conclusion in part e. What does this mean?
g. Determine the observed p-value for the hypothesis test and interpret this value.
What does this mean?
h. Does the sample data provide evidence to conclude that the population mean
annual household income is in?
6. (TCO C) An auditor for the U.S. Postal Service wants to examine its special TwoDay Priority mail handling to determine the proportion of parcels that actually require
longer than 2 days for delivery. A randomly selected sample of 100 such parcels is
found to contain seven that required longer than 2 days for delivery.a. Compute the
90% confidence interval for the population proportion of parcels that require longer
than 2 days for delivery.
b. Interpret this confidence interval.
c. How large a sample size will need to be selected if we wish to have a 90%

confidence interval that is accurate to within 1%? (Points : 18)

DeVry MATH 533 Final Exam

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http://devryfinalexams.com/products/math-533-final-exam/