STAT 125-HK.

Business Statistics Midterm Exam

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Question
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1
The probability that house sales will increase in the next 6 months is
estimated to be 0.25. The probability that the interest rates on housing loans
will go up in the same period is estimated to be 0.74. The probability that
house sales or interest rates will go up during the next 6 months is estimated
to be 0.89. The probability that house sales will increase but interest rates will
not during the next 6 months is:
a. 0.065
b. 0.15
c. 0.51
d. 0.89

Question
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2
The process of using sample statistics to draw conclusions about true
population parameters is called
a. statistical inference.
b. the scientific method.
c. sampling.
d. descriptive statistics.

Question
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3
 Which of the following is NOT a reason for obtaining data?
a. Data are needed to formulate a statistical model.
b. Data are needed to evaluate conformance to standards.
c. Data are needed to measure performance of an ongoing production
process.
d. Data are needed to provide input to a study.

Question
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4
A catalog company that receives the majority of its orders by telephone
conducted a study to determine how long customers were willing to wait on
hold before ordering a product. The length of time was found to be a random
variable best approximated by an exponential distribution with a mean equal
to 3 minutes. What proportion of customers having to hold more than 1.5
minutes will hang up before placing an order?
a. 0.86466
b. 0.60653
c. 0.39347
d. 0.13534

Question
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5
Selection of raffle tickets from a large bowl is an example of
a. sampling with replacement.
b. sampling without replacement.
c. subjective probability.
d. None of the above.

Question
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6
The width of each bar in a histogram corresponds to the
a. differences between the boundaries of the class.
b. number of observations in each class.
c. midpoint of each class.
d. percentage of observations in each class.
 Question
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7
If two events are mutually exclusive and collectively exhaustive, what is the
probability that one or the other occurs?
a. 0.
b. 0.50.
c. 1.00.
d. Cannot be determined from the information given.

Question
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8
Which of the following is not an element of descriptive statistical problems?
a. An inference made about the population based on the sample.
b. The population or sample of interest.
c. Tables, graphs, or numerical summary tools.
d. Identification of patterns in the data.

Question
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9
Which of the following statistics is not a measure of central tendency?
a. Mean.
b. Median.
c. Mode.
d. Q3.

Question
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10
Major league baseball salaries averaged $1.5 million with a standard
deviation of $0.8 million in 1994. Suppose a sample of 100 major league
players was taken. Find the approximate probability that the average salary of
the 100 players exceeded $1 million.
a. Approximately 0
b. 0.2357
c. 0.7357
d. Approximately 1
 Question
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11
If two equally likely events A and B are mutually exclusive and collectively
exhaustive, what is the probability that event A occurs?
a. 0.
b. 0.50.
c. 1.00.
d. Cannot be determined from the information given.

Question
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12
TABLE 2-6

A sample of 200 students at a Big-Ten university was taken after the midterm
to ask them whether they went bar hopping the weekend before the midterm
or spent the weekend studying, and whether they did well or poorly on the
midterm. The following table contains the result.

Did Well on Midterm Did Poorly on Midterm

Studying for Exam 80 20
Went Bar Hopping 30 70

Referring to Table 2-6, of those who did well on the midterm in the sample,
_______ percent of them went bar hopping the weekend before the midterm.

a. 15
b. 27.27
c. 30
d. 50

Question
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13
TABLE 2-5

The following are the durations in minutes of a sample of long-distance

phone calls made within the continental United States reported by one long-
distance carrier.

Time (in Minutes) Relative Frequency

0 but less than 5 0.37
 5 but less than 10 0.22
10 but less than 15 0.15
15 but less than 20 0.10
20 but less than 25 0.07
25 but less than 30 0.07
30 or more 0.02

Referring to Table 2-5, what is the width of each class?

a. 1 minute
b. 5 minutes
c. 2%
d. 100%

Question
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14
According to a survey of American households, the probability that the
residents own 2 cars if annual household income is over $25,000 is 80%. Of
the households surveyed, 60% had incomes over $25,000 and 70% had 2
cars. The probability that annual household income is over $25,000 if the
residents of a household do not own 2 cars is:
a. 0.12
b. 0.18
c. 0.40
d. 0.55

Question
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15
A study is under way in Yosemite National Forest to determine the adult
height of American pine trees. Specifically, the study is attempting to
determine what factors aid a tree in reaching heights greater than 60 feet tall.
It is estimated that the forest contains 25,000 adult American pines. The study
involves collecting heights from 250 randomly selected adult American pine
trees and analyzing the results. Identify the population from which the study
was sampled.
a. The 250 randomly selected adult American pine trees.
b. The 25,000 adult American pine trees in the forest.
c. All the adult American pine trees taller than 60 feet.
d. All American pine trees, of any age, in the forest.
 Question
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16
When extreme values are present in a set of data, which of the following
descriptive summary measures are most appropriate?
a. CV and range.
b. mean and standard deviation.
c. interquartile range and median.
d. variance and interquartile range.

Question
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17
A population frame for a survey contains a listing of 72,345 names. Using a
table of random numbers, how many digits will the code numbers for each
member of your population contain?
a. 3
b. 4
c. 5
d. 6

Question
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18
A recent survey of banks revealed the following distribution for the interest
rate being charged on a home loan (based on a 30-year mortgage with a 10%
down payment).
Interest Rate: 7.0% 7.5% 8.0% 8.5% >8.5%
Probability 0.12 0.23 0.24 0.35 0.06

If a bank is selected at random from this distribution, what is the chance that
the interest rate charged on a home loan will exceed 8.0%?

a. 0.06
b. 0.41
c. 0.59
d. 1.00

Question 2 points Save

19
Referring to the histogram from Table 2-3, how many graduating seniors
attended the luncheon?
a. 4
b. 152
c. 275
d. 388

Question
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20
TABLE 2-4

A survey was conducted to determine how people rated the quality of

programming available on television. Respondents were asked to rate the
overall quality from 0 (no quality at all) to 100 (extremely good quality). The
stem-and-leaf display of the data is shown below.

Stem Leaves
3 24
4 03478999
5 0112345
6 12566
7 01
8
9 2

Referring to Table 2-4, what percentage of the respondents rated overall

television quality with a rating between 50 and 75?

a. 0.11
b. 0.40
c. 0.44
d. 0.56

Question
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21
The Central Limit Theorem is important in statistics because
a. for a large n, it says the population is approximately normal.
b. for any population, it says the sampling distribution of the sample mean
 is approximately normal, regardless of the sample size.
c. for a large n, it says the sampling distribution of the sample mean is
approximately normal, regardless of the shape of the population.
d. for any sized sample, it says the sampling distribution of the sample
mean is approximately normal.

Question
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22
If you were constructing a 99% confidence interval of the population mean
based on a sample of n = 25 where the standard deviation of the sample s =
0.05, the critical value of t will be
a. 2.7969
b. 2.7874
c. 2.4922
d. 2.4851

Question
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23
A statistics student found a reference in the campus library that contained the
median family incomes for all 50 states. She would report her data as being
collected using
a. a designed experiment.
b. observational data.
c. a random sample.
d. a published source.

Question
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24
TABLE 2-5

The following are the durations in minutes of a sample of long-distance

phone calls made within the continental United States reported by one long-
distance carrier.

Time (in Minutes) Relative Frequency

0 but less than 5 0.37
5 but less than 10 0.22
10 but less than 15 0.15
 15 but less than 20 0.10
20 but less than 25 0.07
25 but less than 30 0.07
30 or more 0.02

Referring to Table 2-5, if 10 calls lasted 30 minutes or more, how many calls
lasted less than 5 minutes?

a. 10
b. 185
c. 295
d. 500

Question
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25
The employees of a company were surveyed on questions regarding their
educational background and marital status. Of the 600 employees, 400 had
college degrees, 100 were single, and 60 were single college graduates. The
probability that an employee of the company is single or has a college degree
is:
a. 0.10
b. 0.25
c. 0.667
d. 0.733

Question
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26
The probability that house sales will increase in the next 6 months is
estimated to be 0.25. The probability that the interest rates on housing loans
will go up in the same period is estimated to be 0.74. The probability that
house sales or interest rates will go up during the next 6 months is estimated
to be 0.89. The probability that neither house sales nor interest rates will
increase during the next 6 months is:
a. 0.11
b. 0.195
c. 0.89
d. 0.90
 Question
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27
A confidence interval was used to estimate the proportion of statistics
students that are females. A random sample of 72 statistics students generated
the following 90% confidence interval: (0.438, 0.642). Based on the interval
above, is the population proportion of females equal to 0.60?
a. No, and we are 90% sure of it.
b. No. The proportion is 54.17%.
c. Maybe. 0.60 is a believable value of the population proportion based on
the information above.
d. Yes, and we are 90% sure of it.

Question
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28
Since a _______ is not a randomly selected probability sample, there is no
way to know how well it represents the overall population.
a. simple random sample
b. quota sample
c. stratified sample
d. cluster sample

Question
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29
TABLE 2-6

A sample of 200 students at a Big-Ten university was taken after the midterm
to ask them whether they went bar hopping the weekend before the midterm
or spent the weekend studying, and whether they did well or poorly on the
midterm. The following table contains the result.

Did Well on Midterm Did Poorly on Midterm

Studying for Exam 80 20
Went Bar Hopping 30 70

Referring to Table 2-6, _______ percent of the students in the sample went
bar hopping the weekend before the midterm and did well on the midterm.

a. 15
b. 27.27
c. 30
 d. 50

Question
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30
The collection of all possible events is called
a. a simple probability.
b. a sample space.
c. a joint probability.
d. the null set.

Question
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31
A lab orders 100 rats a week for each of the 52 weeks in the year for
experiments that the lab conducts. Suppose the mean cost of rats used in lab
experiments turned out to be $13.00 per week. Interpret this value.
a. Most of the weeks resulted in rat costs of $13.00.
b. The median cost for the distribution of rat costs is $13.00.
c. The expected or average cost for all weekly rat purchases is $13.00.
d. The rat cost that occurs more often than any other is $13.00.

Question
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32
Which of the following is not true about the Students t distribution?
a. It has more area in the tails and less in the center than does the normal
distribution.
b. It is used to construct confidence intervals for the population mean when
the population standard deviation is known.
c. It is bell shaped and symmetrical.
d. As the number of degrees of freedom increases, the t distribution
approaches the normal distribution.

Question
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33
If two events are mutually exclusive, what is the probability that one or the
other occurs?
 a. 0.
b. 0.50.
c. 1.00.
d. Cannot be determined from the information given.

Question
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34
Tim was planning for a meeting with his boss to discuss a raise in his annual
salary. In preparation, he wanted to use the Consumer Price Index to
determine the percentage increase in his salary in terms of real income over
the last three years. Which of the 4 methods of data collection was involved
when he used the Consumer Price Index?
a. Published sources
b. Experimentation
c. Surveying
d. Observation

Question
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35
A professor of economics at a small Texas university wanted to determine
what year in school students were taking his tough economics course. Shown
below is a pie chart of the results. What percentage of the class took the
course prior to reaching their senior year?
a. 14%
b. 44%
c. 54%
d. 86%

Question
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36
TABLE 2-5

The following are the durations in minutes of a sample of long-distance

phone calls made within the continental United States reported by one long-
distance carrier.

Time (in Minutes) Relative Frequency

0 but less than 5 0.37
 5 but less than 10 0.22
10 but less than 15 0.15
15 but less than 20 0.10
20 but less than 25 0.07
25 but less than 30 0.07
30 or more 0.02

Referring to Table 2-5, if 100 calls were randomly sampled, how many calls
lasted 15 minutes or longer?

a. 10
b. 14
c. 26
d. 74

Question
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37
The chancellor of a major university was concerned about alcohol abuse on
her campus and wanted to find out the portion of students at her university
who visited campus bars every weekend. Her advisor took a random sample
of 250 students. The portion of students in the sample who visited campus
bars every weekend is an example of __________.
a. a categorical random variable.
b. a discrete random variable.
c. a parameter.
d. a statistic.

Question
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38
Which of the following statements about the median is not true?
a. It is more affected by extreme values than the mean.
b. It is a measure of central tendency.
c. It is equal to Q2.
d. It is equal to the mode in bell-shaped normal distributions.

Question
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39
 Most analysts focus on the cost of tuition as the way to measure the cost of a
college education. But incidentals, such as textbook costs, are rarely
considered. A researcher at Drummand University wishes to estimate the
textbook costs of first-year students at Drummand. To do so, she monitored
the textbook cost of 250 first-year students and found that their average
textbook cost was $300 per semester. Identify the sample in the study.
a. All Drummand University students.
b. All college students.
c. All first-year Drummand University students.
d. The 250 students that were monitored.

Question
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40
The head librarian at the Library of Congress has asked her assistant for an
interval estimate of the mean number of books checked out each day. The
assistant provides the following interval estimate: from 740 to 920 books per
day. If the head librarian knows that the population standard deviation is 150
books checked out per day, and she asked her assistant to use 25 days of data
to construct the interval estimate, what confidence level can she attach to the
interval estimate?
a. 99.7%
b. 99.0%
c. 98.0%
d. 95.4%

Question
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41
Which of the following is true regarding the sampling distribution of the
mean for a large sample size?
a. It has the same shape, mean, and standard deviation as the population.
b. It has a normal distribution with the same mean and standard deviation as
the population.
c. It has the same shape and mean as the population, but has a smaller
standard deviation.
d. It has a normal distribution with the same mean as the population but
with a smaller standard deviation.

Question 2 points Save

42
A lab orders 100 rats a week for each of the 52 weeks in the year for
experiments that the lab conducts. Prices for 100 rats follow the following
distribution:
Price: $10.00 $12.50 $15.00
Probability: 0.35 0.40 0.25

How much should the lab budget for next years rat orders be, assuming this
distribution does not change?

a. $520
b. $637
c. $650
d. $780

Question
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43
The portfolio expected return of two investments
a. will be higher when the covariance is zero.
b. will be higher when the covariance is negative.
c. will be higher when the covariance is positive.
d. does not depend on the covariance.

Question
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44
According to a survey of American households, the probability that the
residents own 2 cars if annual household income is over $25,000 is 80%. Of
the households surveyed, 60% had incomes over $25,000 and 70% had 2
cars. The probability that the residents of a household do not own 2 cars and
have an income over $25,000 a year is:
a. 0.12
b. 0.18
c. 0.22
d. 0.48

Question
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45
Which of the following is most likely a parameter as opposed to a statistic?
 a. The average score of the first five students completing an assignment.
b. The proportion of females registered to vote in a county.
c. The average height of people randomly selected from a database.
d. The proportion of trucks stopped yesterday that were cited for bad
brakes.

Question
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46
Which of the mean, median, mode, and geometric mean are resistant
measures of central tendency?
a. The mean and median only.
b. The median and mode only.
c. The mode and geometric mean only.
d. The mean and mode only.

Question
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47
The collection and summarization of the socioeconomic and physical
characteristics of the employees of a particular firm is an example of
a. inferential statistics.
b. descriptive statistics.
c. a parameter.
d. a statistic.

Question
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48
A population frame for a survey contains a listing of 6,179 names. Using a
table of random numbers, which of the following code numbers will appear
on your list?
a. 06
b. 0694
c. 6946
d. 61790

Question 2 points Save

49
In left-skewed distributions, which of the following is the correct statement?
a. The distance from Q1 to Q2 is smaller than the distance from Q2 to Q3.
b. The distance from the smallest observation to Q1 is larger than the
distance from Q3 to the largest observation.
c. The distance from the smallest observation to Q2 is smaller than the
distance from Q2 to the largest observation.
d. The distance from Q1 to Q3 is twice the distance from Q1 to Q2.

Question
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50
Why is the Central Limit Theorem so important to the study of sampling
distributions?
a. It allows us to disregard the size of the sample selected when the
population is not normal.
b. It allows us to disregard the shape of the sampling distribution when the
size of the population is large.
c. It allows us to disregard the size of the population we are sampling from.
d. It allows us to disregard the shape of the population when n is large.

STAT125-HK. BUSINESS STATISTICS (STAT125-HK) > TAKE ASSESSMENT: FINAL

EXAM

Question
2 points Save
1
In testing for differences between the means of 2 independent populations,
the null hypothesis is:
a. H0: 1 2 = 2.
b. H0: 1 2 = 0.
c. H0: 1 2 > 0.
d. H0: 1 2 < 2.

Question
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2
A survey claims that 9 out of 10 doctors recommend aspirin for their patients
with headaches. To test this claim against the alternative that the actual
 proportion of doctors who recommend aspirin is less than 0.90, a random
sample of 100 doctors results in 83 who indicate that they recommend
aspirin. The value of the test statistic in this problem is approximately equal
to:
a. -4.12
b. -2.33
c. -1.86
d. -0.07

Question
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3
If a group of independent variables are not significant individually but are
significant as a group at a specified level of significance, this is most likely
due to
a. autocorrelation.
b. the presence of dummy variables.
c. the absence of dummy variables.
d. collinearity.

Question
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4
TABLE 13-2

A candy bar manufacturer is interested in trying to estimate how sales are

influenced by the price of their product. To do this, the company randomly
chooses 6 small cities and offers the candy bar at different prices. Using
candy bar sales as the dependent variable, the company will conduct a simple
linear regression on the data below:

Price
City Sales
($)
River
1.30 100
Falls
Hudson 1.60 90
Ellsworth 1.80 90
Prescott 2.00 40
Rock
2.40 38
Elm
Stillwater 2.90 32
 Referring to Table 13-2, what is the coefficient of correlation for these data?

a. -0.8854
b. -0.7839
c. 0.7839
d. 0.8854

Question
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5
The Y-intercept (b0) represents the
a. predicted value of Y when X = 0.
b. change in estimated average Y per unit change in X.
c. predicted value of Y.
d. variation around the sample regression line.

Question
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6
TABLE 14-5

A microeconomist wants to determine how corporate sales are influenced by

capital and wage spending by companies. She proceeds to randomly select 26
large corporations and record information in millions of dollars. The
Microsoft Excel output below shows results of this ltiple regression.

SUMMARY OUTPUT

Regression
Statistics
Multiple
0.830
R
R Square 0.689
Adjusted
0.662
R Square
Standard 17501.6
Error 43
Observati
26
ons
 ANOV d Sign
SS MS F
A f if F
Regres 1557977 778988 25.4 0.00
2
sion 7040 8520 32 01
Residu 2 7045072 306307
al 3 780 512
2 2262484
Total
5 9820

StdErro t P-
Coeff
r Stat value
Interce 15800.00 6038.29 2.61 0.015
pt 00 99 7 4
0.60 0.548
Capital 0.1245 0.2045
9 5
4.80 0.000
Wages 7.0762 1.4729
4 1

Referring to Table 14-5, what are the predicted sales (in millions of dollars)
for a company spending $100 million on capital and $100 million on wages?

a. 15,800.00
b. 16,520.07
c. 17,277.49
d. 20,455.98

Question
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7
If we are performing a two-tailed test of whether = 100, the probability of
detecting a shift of the mean to 105 will be ________ the probability of
detecting a shift of the mean to 110.
a. less than
b. greater than
c. equal to
d. not comparable to
 Question
2 points Save
8
TABLE 11-1

Psychologists have found that people are generally reluctant to transmit bad
news to their peers. This phenomenon has been termed the M effect. To
investigate the cause of the M effect, 40 undergraduates at Duke University
participated in an experiment. Each subject was asked to administer an IQ
test to another student and then provide the test taker with his or her
percentile score. Unknown to the subject, the test taker was a bogus student
who was working with the researchers. The experimenters manipulated two
factors: subject visibility and success of test taker, each at two levels.
Subject visibility was either visible or not visible to the test taker. Success of
the test taker was either visible or not visible to the test taker. Success of the
test taker was either top 20% or bottom 20%. Ten subjects were randomly
assigned to each of the 2 x 2 = 4 experimental conditions, then the time (in
seconds) between the end of the test and the delivery of the percentile score
from the subject to the test taker was measured. (This variable is called the
latency to feedback.) The data were subjected to appropriate analyses with
the following results.

PR
Source df SS MS F
>F
Subject 1380. 0.04
1 1380.24 4.26
visibility 24 3
Test
1325. 0.05
taker 1 1325.16 4.09
16 0
success
Interacti 3385. 10.4 0.00
1 3385.80
on 80 5 2
3 11,664. 324.0
Error
6 00 0
3 17,755.
Total
9 20

Referring to Table 11-1, in the context of this study, interpret the statement:
Subject visibility and test taker success interact.

a. The difference between the mean feedback time for visible and
nonvisible subjects depends on the success of the test taker.
b. The difference between the mean feedback time for test takers scoring in
the top 20% and bottom 20% depends on the visibility of the subject.
c. The relationship between feedback time and subject visibility depends on
the success of the test taker.
d. All of the above are correct interpretations.
 Question
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9
TABLE 13-1

A large national bank charges local companies for using their services. A
bank official reported the results of a regression analysis designed to predict
the banks charges (Y) measured in dollars per month for services
rendered to local companies. One independent variable used to predict
service charge to a company is the companys sales revenue (X) measured
in millions of dollars. Data for 21 companies who use the banks services
were used to fit the model:

E(Y) = 0 + 1X

The results of the simple linear regression are provided below.

Y = -2,700+20X, syx = 65, two-tailed p value = 0.034 (for testing 1)

Referring to Table 13-1, interpret the p value for testing whether 1 exceeds 0.

a. There is sufficient evidence (at the = 0.05) to conclude that sales

revenue (X) is a useful linear predictor of service charge (Y).
b. There is insufficient evidence (at the = 0.10) to conclude that sales
revenue (X) is a useful linear predictor of service charge (Y).
c. Sales revenue (X) is a poor predictor of service charge (Y).
d. For every $1 million increase in sales revenue, we expect a service
charge to increase $0.034.

Question
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10
TABLE 14-1

A manager of a product sales group believes the number of sales made by an

employee (Y) depends on how many years that employee has been with the
company (X1) and how he/she scored on a business aptitude test (X2). A
random sample of 8 employees provides the following:

Employee Y X1 X2
1 100 10 7
2 90 3 10
3 80 8 9
 4 70 5 4
5 60 5 8
6 50 7 5
7 40 1 4
8 30 1 1

Referring to Table 14-1, for these data, what is the estimated coefficient for
the variable representing years an employee has been with the company, b1?

a. 0.998
b. 3.103
c. 4.698
d. 21.293

Question
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11
The Journal of Business Venturing reported on the activities of entrepreneurs
during the organization creation process. As part of a designed study, a total
of 71 entrepreneurs were interviewed and divided into 3 groups: those that
were successful in founding a new firm (n1 = 34), those still actively trying to
establish a firm (n2 = 21), and those who tried to start a new firm but
eventually gave up (n3 = 16). The total number of activities undertaken (e.g.,
developed a business plan, sought funding, looked for facilities) by each
group over a specified time period during organization creation was
measured. The objective is to compare the mean number of activities of the 3
groups of entrepreneurs. Because of concerns over necessary assumption of
the parametric analysis, it was decided to use a nonparametric analysis.
Identify the nonparametric method that would be used to analyze the data.
a. Wilcoxon Rank Sums Test
b. Wilcoxon Signed Rank Test
c. Kruskal-Wallis Rank Test for Differences in Medians
d. One-way ANOVA F test

Question
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12
TABLE 15-4

In Hawaii, condemnation proceedings are under way to enable private

citizens to own the property that their homes are built on. Until recently, only
estates were permitted to own land, and homeowners leased the land from the
estate. In order to comply with the new law, a large Hawaiian estate wants to
use regression analysis to estimate the fair market value of the land. Each of
the following 3 models were fit to data collected for n = 20 properties, 10 of
which are located near a cove.

Model 1: Y = 0 + 1X1 + 2X2 + 3X1X2 + 4X12 + 5X12X2 +

where
Y = Sale price of property in thousands of dollars
X1 = Size of property in thousands of square feet
X2 = 1 if property located near cove, 0 if not

Using the data collected for the 20 properties, the following partial output
obtained from Microsoft Excel is shown:

Regression
Statistics
Multiple R 0.985
R Square 0.970
Standard
9.5
Error
Observation
20
s

Signif
ANOVA df SS MS F
F
Regression 5 28324 5664 62.2 0.0001
Residual 14 1279 91
Total 19 29063

t
Coef StdErro P-
Sta
f r value
t
-
0.383
Intercept -32.1 35.7 0.9
4
0
2.0 0.059
Size 12.2 5.9
5 4
Cove - 53.5 - 0.071
104. 1.9 5
 3 5
1.9 0.066
Size*Cove 17.0 8.5
9 1
-
0.220
SizeSq -0.3 0.2 1.2
4
8
-
SizeSq*Co 0.274
-0.3 0.3 1.1
ve 9
3

Referring to Table 15-4, given a quadratic relationship between sale price (Y)
and property size (X1), what test should be used to test whether the curves
differ from cove and non-cove properties?

a. F test for the entire regression model.

b. t test on each of the coefficients in the entire regression model.
c. Partial F test on the subset of the appropriate coefficients.
d. t test on each of the subsets of the appropriate coefficients.

Question
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13
TABLE 10-2

A researcher randomly sampled 30 graduates of an MBA program and

recorded data concerning their starting salaries. Of primary interest to the
researcher was the effect of gender on starting salaries. Analysis of the mean
salaries of the females and males in the sample is given below.

Size Mean Std Dev

Females 18 48,266.7 13,577.63
Males 12 55,000 11,741.29
Std Error = 4,764.82
Means Diff = -6,733.3
Z = -1.4528 2-tailed p value = 0.1463
T = -1.4221 2-tailed p value = 0.1574

Referring to Table 10-2, the researcher was attempting to show statistically

that the female MBA graduates have a significantly lower mean starting
salary than the male MBA graduates. According to the test run, which of the
following is an appropriate alternative hypothesis?

a. H1: females > males

 b. H1: females < males
c. H1: females males
d. H1: females = males

Question
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14
TABLE 10-3
The use of preservatives by food processors has become a controversial issue.
Suppose 2 preservatives are extensively tested and determined safe for use in
meats. A processor wants to compare the preservatives for their effects on
retarding spoilage. Suppose 15 cuts of fresh meat are treated with
preservative A and 15 are treated with preservative B, and the number of
hours until spoilage begins is recorded for each of the 30 cuts of meat. The
results are summarized in the table below.
Referring to Table 10-3, what assumptions are necessary for a comparison of
the population variances to be valid?
a. Both sampled populations are normally distributed.
b. Both samples are random and independent.
c. Neither (a) nor (b) is necessary.
d. Both (a) and (b) are necessary.

Question
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15
In testing for the differences between the means of 2 independent populations
where the variances in each population are unknown but assumed equal, the
degrees of freedom are
a. n 1.
b. n1 + n2 1.
c. n1 + n2 2.
d. n 2.

Question
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16
TABLE 12-1

A study published in the American Journal of Public Health was conducted

to determine whether the use of seat belts in motor vehicles depends on
ethnic status in San Diego County. A sample of 792 children treated for
 injuries sustained from motor vehicle accidents was obtained, and each child
was classified according to (1) ethnic status (Hispanic or non-Hispanic) and
(2) seat belt usage (worn or not worn) during the accident. The number of
children in each category is given in the table below.

Hispanic Non-Hispanic
Seat belts worn 31 148
Seat belts not worn 283 330

Referring to Table 12-1, which test would be used to properly analyze the
data in this experiment?

a. test for independence in a two-way contingency table.

b. test for equal proportions in a one-way table.
c. ANOVA F test for interaction in a 2 x 2 factorial design.
d. test for a 2 x 2 factorial design.

Question
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17
If the p value is less than in a two-tailed test,
a. the null hypothesis should not be rejected.
b. the null hypothesis should be rejected.
c. a one-tailed test should be used.
d. no conclusion should be reached.

Question
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18
TABLE 14-1

A manager of a product sales group believes the number of sales made by an

employee (Y) depends on how many years that employee has been with the
company (X1) and how he/she scored on a business aptitude test (X2). A
random sample of 8 employees provides the following:

Employee Y X1 X2
1 100 10 7
2 90 3 10
3 80 8 9
4 70 5 4
 5 60 5 8
6 50 7 5
7 40 1 4
8 30 1 1

Referring to Table 14-1, for these data, what is the estimated coefficient for
the variable representing scores on the aptitude test, b2?

a. 0.998
b. 3.103
c. 4.698
d. 21.293

Question
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19
TABLE 10-9

A buyer for a manufacturing plant suspects that his primary supplier of raw
materials is overcharging. In order to determine if his suspicion is correct, he
contacts a second supplier and asks for the prices on various materials. He
wants to compare these prices with those of his primary supplier. The data
collected is presented in the table below, with some summary statistics
presented (all of these might not be necessary to answer the questions which
follow). The buyer believes that the differences are normally distributed and
will use this sample to perform an appropriate test at a level of significance of
0.01.

Primary Secondary
Material Difference
Supplier Supplier
1 $55 $45 $10
2 $48 $47 $1
3 $31 $32 -$1
4 $83 $77 $6
5 $37 $37 $0
6 $55 $54 $1
Sum: $309 $292 $17
Sum of Squares: $17,573 $15,472 $139

Referring to Table 10-9, the test to perform is a

a. pooled-variance t test for differences in 2 means.

b. separate-variance t test for differences in 2 means.
 c. Wilcoxon Rank Sum Test for differences in 2 medians.
d. t-test for mean difference.

Question
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20
TABLE 10-4
A real estate company is interested in testing whether, on average, families in
Gotham have been living in their current homes for less time than families in
Metropolis have. A random sample of 100 families from Gotham and a
random sample of 150 families in Metropolis yield the following data on
length of residence in current homes.
Referring to Table 10-4, what is the standardized value of the estimate of the
mean of the sampling distribution of the difference between sample means?
a. -8.75
b. -3.75
c. -2.33
d. -1.96

Question
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21
In a multiple regression model, the adjusted r2
a. cannot be negative.
b. can sometimes be negative.
c. can sometimes be greater than +1.
d. has to fall between 0 and +1.

Question
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22
The owner of a local nightclub has recently surveyed a random sample of n =
250 customers of the club. She would now like to determine whether or not
the mean age of her customers is over 30. If so, she plans to alter the
entertainment to appeal to an older crowd. If not, no entertainment changes
will be made. If she wants to be 99% confident in her decision, what rejection
region should she use?
a. Reject H0 if t Z < -2.33.
b. Reject H0 if t Z < -2.55.
c. Reject H0 if t Z > 2.33.
d. Reject H0 if t Z > 2.58.
 Question
2 points Save
23
A campus researcher wanted to investigate the factors that affect visitor travel
time in a complex, multilevel building on campus. Specifically, he wanted to
determine whether different building signs (building maps versus wall
signage) affect the total amount of time visitors require to reach their
destination and whether that time depends on whether the starting location is
inside or outside the building. Three subjects were assigned to each of the
combinations of signs and starting locations, and travel time in seconds from
beginning to destination was recorded. How should the data be analyzed?
Starting Room
Interior Exterior
141 224
Wall Signs 119 339
238 139
85 226
Map 94 129
126 130
a. Completely randomized design
b. Randomized block design
c. 2 x 2 factorial design
d. Kruskal-Wallis rank test

Question
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24
TABLE 12-4
A few years ago, Pepsi invited consumers to take the Pepsi Challenge.
Consumers were asked to decide which of two sodas, Coke or Pepsi, they
preferred in a blind taste test. Pepsi was interested in determining what
factors played a role in peoples taste preferences. One of the factors studied
was the gender of the consumer. Below are the results of analyses comparing
the taste preferences of men and women with the proportions depicting
preference for Pepsi.
Referring to Table 12-4, suppose that the two-tailed p value was 0.0734. State
the proper conclusion.
a. At = 0.05, there is sufficient evidence to indicate the proportion of
males preferring Pepsi differs from the proportion of females preferring
Pepsi.
b. At = 0.10, there is sufficient evidence to indicate the proportion of
males preferring Pepsi differs from the proportion of females preferring
 Pepsi.
c. At = 0.05, there is sufficient evidence to indicate the proportion of
males preferring Pepsi equals the proportion of females preferring Pepsi.
d. At = 0.08, there is insufficient evidence to indicate the proportion of
males preferring Pepsi differs from the proportion of females preferring
Pepsi.

Question
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25
If a test of hypothesis has a Type I error probability () of 0.01, we mean
a. if the null hypothesis is true, we dont reject it 1% of the time.
b. if the null hypothesis is true, we reject it 1% of the time.
c. if the null hypothesis is false, we dont reject it 1% of the time.
d. if the null hypothesis is false, we reject it 1% of the time.

Question
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26
TABLE 10-2

A researcher randomly sampled 30 graduates of an MBA program and

recorded data concerning their starting salaries. Of primary interest to the
researcher was the effect of gender on starting salaries. Analysis of the mean
salaries of the females and males in the sample is given below.

Size Mean Std Dev

Females 18 48,266.7 13,577.63
Males 12 55,000 11,741.29
Std Error = 4,764.82
Means Diff = -6,733.3
Z = -1.4528 2-tailed p value = 0.1463
T = -1.4221 2-tailed p value = 0.1574

Referring to Table 10-2, the researcher was attempting to show statistically

that the female MBA graduates have a significantly lower mean starting
salary than the male MBA graduates. From the analysis in Table 10-2, the
correct test statistic is:

a. 4,634.72
b. -1.4221
c. -1.4528
 d. -6,733.33

Question
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27
If we wish to determine whether there is evidence that the proportion of
successes is higher in group 1 than in group 2, the appropriate test to use is
a. the Z test.
b. the chi-squared test.
c. Both of the above.
d. None of the above.

Question
2 points Save
28
TABLE 11-4

A campus researcher wanted to investigate the factors that affect visitor travel
time in a complex, multilevel building on campus. Specifically, he wanted to
determine whether different building signs (building maps versus wall
signage) affect the total amount of time visitors require to reach their
destination and whether that time depends on whether the starting location is
inside or outside the building. Three subjects were assigned to each of the
combinations of signs and starting locations, and travel time in seconds from
beginning to destination was recorded. An Excel output of the appropriate
analysis is given below:

ANOVA
Source
of d P-
SS MS F F crit
Variatio f value
n
14008. 14008. 0.1126 5.3176
Signs
33 33 7 45
Starting
2.7843 0.1337 5.3176
Locatio 12288
95 4 45
n
Interacti 0.9195 5.3176
48 48
on 06 45
35305. 4413.1
Within
33 67
Total 61649. 1
 67 1

Referring to Table 11-4, the within (error) degrees of freedom is

a. 1
b. 4
c. 8
d. 11

Question
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29
A local real estate appraiser analyzed the sales prices of homes in 2
neighborhoods to the corresponding appraised values of the homes. The goal
of the analysis was to compare the distribution of sale-to-appraised ratios
from homes in the 2 neighborhoods. Random and independent samples were
selected from the 2 neighborhoods from last years homes sales, 8 from each
of the 2 neighborhoods. Identify the nonparametric method that would be
used to analyze the data.
a. the Wilcoxon Signed-Ranks Test, using the test statistic Z
b. the Wilcoxon Signed-Ranks Test, using the test statistic W
c. the Wilcoxon Rank Sum Test, using the test statistic T1
d. the Wilcoxon Rank Sum Test, using the test statistic Z

Question
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30
TABLE 12-13

Parents complain that children read too few storybooks and watch too ch
television nowadays. A survey of 1,000 children reveals the following
information on average time spent watching TV and average time spent
reading storybooks

Average time spent

reading storybooks
Average
Less
time Between More
than
spent 1 and 2 than
1
watching hours 2 hours
hour
TV
Less than 2 90 85 130
 hours
More than
655 32 8
2 hours

Referring to Table 12-13, to test whether there is any relationship between

average time spent watching TV and average time spent reading storybooks,
the value of the measured test statistic is

a. -12.59
b. 1.61
c. 481.49
d. 1,368.06

Question
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31
TABLE 10-2

A researcher randomly sampled 30 graduates of an MBA program and

recorded data concerning their starting salaries. Of primary interest to the
researcher was the effect of gender on starting salaries. Analysis of the mean
salaries of the females and males in the sample is given below.

Size Mean Std Dev

Females 18 48,266.7 13,577.63
Males 12 55,000 11,741.29
Std Error = 4,764.82
Means Diff = -6,733.3
Z = -1.4528 2-tailed p value = 0.1463
T = -1.4221 2-tailed p value = 0.1574

Referring to Table 10-2, the researcher was attempting to show statistically

that the female MBA graduates have a significantly lower mean starting
salary than the male MBA graduates. What assumptions were necessary to
conduct this hypothesis test?

a. Both populations of salaries (male and female) must have approximate

normal distributions.
b. The population variances are approximately equal.
c. The samples were randomly and independently selected.
d. All of the above assumptions were necessary.
 Question
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32
Testing for the existence of correlation is equivalent to
a. testing for the existence of the slope (1).
b. testing for the existence of the Y-intercept (0).
c. the confidence interval estimate for predicting Y.
d. None of the above.

Question
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33
TABLE 14-3

An economist is interested to see how consumption for an economy (in $

billions) is influenced by gross domestic product ($ billions) and aggregate
price (consumer price index). The Microsoft Excel output of this regression is
partially reproduced below.

SUMMARY OUTPUT

Regression
Statistics
Multiple R 0.991
R Square 0.982
Adjusted R
0.976
Square
Standard
0.299
Error
Observation
10
s

d Signi
ANOVA SS MS F
f fF
Regressi 33.41 16.70 186.3 0.000
2
on 63 82 25 1
0.627 0.089
Residual 7
7 7
34.04
Total 9
40
 StdErro P-
Coeff t Stat
r value
-
Intercep - 0.883
0.086 0.5674
t 0.152 7
1
0.765 13.34 0.000
GDP 0.0574
4 0 1
-
- 0.833
Price 0.000 0.0028
0.219 0
6

Referring to Table 14-3, one economy in the sample had an aggregate

consumption level of $4 billion, a GDP of $6 billion, and an aggregate price
level of 200. What is the residual for this data point?

a. $4.39 billion
b. $0.39 billion
c. -$0.39 billion
d. -$1.33 billion

Question
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34
A ____________ is a numerical quantity computed from the data of a sample
and is used in reaching a decision on whether or not to reject the null
hypothesis.
a. significance level
b. critical value
c. test statistic
d. parameter

Question
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35
TABLE 13-7

An investment specialist claims that if one holds a portfolio that moves in

opposite direction to the market index like the S&P 500, then it is possible to
reduce the variability of the portfolios return. In other words, one can create
 a portfolio with positive returns but less exposure to risk.

A sample of 26 years of S&P 500 index and a portfolio consisting of stocks of

private prisons, which are believed to be negatively related to the S&P 500
index, is collected. A regression analysis was performed by regressing the
returns of the prison stocks portfolio (Y) on the returns of S&P 500 index (X)
to prove that the private prisons stock portfolio is negatively related to the
S&P 500 index at a 5% level of significance. The results are given in the
following EXCEL output.

Coeffici Standar P-
T Stat
ents d Error value
Interc 4.86600 0.35743 13.6136 8.7932
ept 4258 609 3441 E-13
- -
0.07159 2.9494
S&P 0.50251 7.01862
7152 2E-07
3506 425

Referring to Table 13-7, which of the following will be a correct conclusion?

a. We cannot reject the null hypothesis and, therefore, conclude that there is
sufficient evidence to show that the prison stock portfolio and S&P 500
index are negatively related.
b. We can reject the null hypothesis and, therefore, conclude that there is
sufficient evidence to show that the prison stock portfolio and S&P 500
index are negatively related.
c. We cannot reject the null hypothesis and, therefore, conclude that there is
not sufficient evidence to show that the prison stock portfolio and S&P 500
index are negatively related.
d. We can reject the null hypothesis and conclude that there is not sufficient
evidence to show that the prison stock portfolio and S&P 500 index are
negatively related.

Question
2 points Save
36
Why would you use the Tukey-Kramer procedure?
a. To test for normality.
b. To test for homogeneity of variance.
c. To test independence of errors.
d. To test for differences in pairwise means.
 Question
2 points Save
37
TABLE 12-6

One criterion used to evaluate employees in the assembly section of a large

factory is the number of defective pieces per 1,000 parts produced. The
quality control department wants to find out whether there is a relationship
between years of experience and defect rate. Since the job is repetitious, after
the initial training period any improvement due to a learning effect might be
offset by a loss of motivation. A defect rate is calculated for each worker in a
yearly evaluation. The results for 100 workers are given in the table below.

Years Since
Training Period
<1 14 59
Year Years Years
High 6 9 9
Defect
Average 9 19 23
Rate
Low 7 8 10

Referring to Table 12-6, find the rejection region necessary for testing at the
0.05 level of significance whether there is a relationship between defect rate
and years of experience.

a. Reject H0 if > 16.919

b. Reject H0 if > 15.507
c. Reject H0 if > 11.143
d. Reject H0 if > 9.488

Question
2 points Save
38
TABLE 12-5

The following EXCEL output contains the results of a test to determine if the
proportions of satisfied guests at two resorts are the same or different.

Hypothesized Difference 0
Level of Significance 0.05
Group 1
Number of Successes 163
Sample Size 227
Group 2
Number of Successes 154
 Sample Size 262
Group 1 Proportion 0.718061674
Group 2 Proportion 0.58778626
Difference in Two Proportions 0.130275414
Average Proportion 0.648261759
Test Statistic 3.00875353
Two-Tailed Test
Lower Critical Value -1.959961082
Upper Critical Value 1.959961082
p-Value 0.002623357

Referring to Table 12-5, if you want to test the claim that Resort 1 (Group 1)
has a higher proportion of satisfied guests compared to Resort 2 (Group 2),
the p-value of the test will be

a. 0.00262
b. 0.00262/2
c. 2*(0.00262)
d. 1 (0.00262/2)

Question
2 points Save
39
TABLE 15-5

As a business statistics project, a student examined the factors that determine

parking meter rates throughout the campus and downtown area. The campus
is a group of buildings located in the center of downtown, with an open
central quadrangle.

Data were collected for the price of parking per hour and the number of
blocks to the quadrangle. In addition, two dummy variables were coded to
indicate the location of the parking meter (See below). The population
regression model hypothesized is

Yi = 0 + 1x1i + 2x2i + 3x3i + i

where
Y is the price per hour
x1 is a numerical variable = the number of blocks to the quadrangle
(Note that
if x1 is less than 2, then the meter is on campus;
if x1 is less than 3, then the meter is downtown)
x2 is a dummy variable = 1 if inside downtown and off campus, 0 otherwise
x3 is a dummy variable = 1 if outside downtown and off campus, 0 otherwise

The following Excel results are obtained.

Regression
Statistics
9.965
Multiple R
9
0.933
R Square
1
Adjusted R 0.929
Square 4
Standard 0.032
Error 7
Observation
58
s

d Signif
ANOVA SS MS F
f F
Regressi 0.80 0.26 251.19 1.0964
3
on 94 98 95 E-31
5 0.05 0.00
Residual
4 80 10
5 0.86
Total
7 75

StdErr P-
Coeff t Stat
or value
Interce 0.511 37.467
0.0136 2.4904
pt 8 5
-
-
X1 0.004 0.0034 0.1898
1.3275
5
- -
5.3581
X2 0.239 0.0123 19.394
E-26
2 2
-
-
X3 0.000 0.0123 0.9829
0.0214
2
 Referring to Table 15-5, if one is already outside of downtown and off
campus but decides to park an additional 3 blocks from the quadrangle, the
estimated average parking meter rate will

a. decrease by 0.0045.
b. decrease by 0.0135.
c. decrease by 0.0139.
d. decrease by 0.4979.

Question
2 points Save
40
TABLE 14-4

A real estate builder wishes to determine how house size (House) is

influenced by family income (Income), family size (Size), and education of
the head of household (School). House size is measured in hundreds of
square feet, income is measured in thousands of dollars, and education is in
years. The builder randomly selected 50 families and ran the ltiple
regression. Microsoft Excel output is provided below:

SUMMARY OUTPUT

Regression
Statistics
Multiple R 0.865
R Square 0.748
Adjusted R
0.726
Square
Standard
5.195
Error
Observation
50
s

Signif
ANOVA df SS MS F
F
Regressi 3605.77 901.443 0.000
on 36 4 1
1214.22
Residual 26.9828
64
 4 4820.00
Total
9 00

StdErro P-
Coeff t Stat
r value
-
Intercep - 0.779
1.633 5.8078
t 0.281 8
5
0.448 3.954 0.000
Income 0.1137
5 5 3
4.261 0.000
Size 0.8062 5.286
5 1
-
- 0.138
School 0.651 0.4319
1.509 3
7

Referring to Table 14-4, one individual in the sample had an annual income
of $10,000, a family size of 1, and an education of 8 years. This individual
owned a home with an area of 1,000 square feet (House = 10.00). What is the
residual (in hundreds of square feet) for this data point?

a. 8.10
b. 5.40
c. -5.40
d. -8.10

Question
2 points Save
41
The sample correlation coefficient between X and Y is 0.375. It has been
found out that the p-value is 0.256 when testing H0: = 0 against the two-
sided alternative H1: 0. To test H0: = 0 against the one-sided alternative
H1: > 0 at a significance level of 0.193, the p-value is
a. 0.256/2
b. 0.256
c. 1 0.256
d. 1 0.256/2

Question 2 points Save

42
TABLE 15-5

As a business statistics project, a student examined the factors that determine

parking meter rates throughout the campus and downtown area. The campus
is a group of buildings located in the center of downtown, with an open
central quadrangle.

Data were collected for the price of parking per hour and the number of
blocks to the quadrangle. In addition, two dummy variables were coded to
indicate the location of the parking meter (See below). The population
regression model hypothesized is

Yi = 0 + 1x1i + 2x2i + 3x3i + i

where
Y is the price per hour
x1 is a numerical variable = the number of blocks to the quadrangle
(Note that
if x1 is less than 2, then the meter is on campus;
if x1 is less than 3, then the meter is downtown)
x2 is a dummy variable = 1 if inside downtown and off campus, 0 otherwise
x3 is a dummy variable = 1 if outside downtown and off campus, 0 otherwise

The following Excel results are obtained.

Regression
Statistics
9.965
Multiple R
9
0.933
R Square
1
Adjusted R 0.929
Square 4
Standard 0.032
Error 7
Observation
58
s

d Signif
ANOVA SS MS F
f F
Regressi 0.80 0.26 251.19 1.0964
3
on 94 98 95 E-31
 5 0.05 0.00
Residual
4 80 10
5 0.86
Total
7 75

StdErr P-
Coeff t Stat
or value
Interce 0.511 37.467
0.0136 2.4904
pt 8 5
-
-
X1 0.004 0.0034 0.1898
1.3275
5
- -
5.3581
X2 0.239 0.0123 19.394
E-26
2 2
-
-
X3 0.000 0.0123 0.9829
0.0214
2

Referring to Table 15-5, predict the meter rate per hour if one parks outside of
downtown and off campus, 3 blocks from the quad.

a. $-0.0139
b. $0.2589
c. $0.2604
d. $0.4981

Question
2 points Save
43
If the Type I error () for a given test is to be decreased, then for a fixed
sample size n
a. the Type II error () will also decrease.
b. the Type II error () will increase.
c. the power of the test will increase.
d. a one-tailed test must be utilized.

Question
2 points Save
44
 TABLE 11-3

A realtor wants to compare the average sales-to-appraisal ratios of residential

properties sold in four neighborhoods (A, B, C, and D). Four properties are
randomly selected from each neighborhood and the ratios recorded for each,
as shown below.

A: 1.2, 1.1, 0.9, 0.4

B: 2.5, 2.1, 1.9, 1.6
C: 1.0, 1.5, 1.1, 1.3
D: 0.8, 1.3, 1.1, 0.7

Interpret the results of the analysis summarized in the following table:

Source df SS MS F PR > F
Neighborhoods 2.97 0.990 8.31 0.0260
Error 12
Total 4.40

Referring to Table 11-3, the within group mean squares is

a. 0.119
b. 0.990
c. 1.109
d. 8.31

Question
2 points Save
45
TABLE 12-5

The following EXCEL output contains the results of a test to determine if the
proportions of satisfied guests at two resorts are the same or different.

Hypothesized Difference 0
Level of Significance 0.05
Group 1
Number of Successes 163
Sample Size 227
Group 2
Number of Successes 154
Sample Size 262
Group 1 Proportion 0.718061674
Group 2 Proportion 0.58778626
 Difference in Two Proportions 0.130275414
Average Proportion 0.648261759
Test Statistic 3.00875353
Two-Tailed Test
Lower Critical Value -1.959961082
Upper Critical Value 1.959961082
p-Value 0.002623357

Referring to Table 12-5, if you want to test the claim that Resort 1 (Group 1)
has a lower proportion of satisfied guests compared to Resort 2 (Group 2),
you will use

a. a t-test for the difference in two proportions.

b. a z-test for the difference in two proportions.
c. a test for the difference in two proportions.
d. a test for independence.

Question
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46
If we use the chi-squared method of analysis to test for the differences among
4 proportions, the degrees of freedom are equal to:
a. 3
b. 4
c. 5
d. 1

Question
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47
TABLE 10-5

To test the effects of a business school preparation course, 8 students took a

general business test before and after the course. The results are given below.

Student Exam Score Before Course Exam Score After Course

1 530 670
2 690 770
3 910 1,000
4 700 710
5 450 550
 6 820 870
7 820 770
8 630 610

Referring to Table 10-5, at the 0.05 level of significance, the conclusion for
this hypothesis test would be:

a. the business school preparation course does improve exam score.

b. the business school preparation course does not improve exam score.
c. the business school preparation course has no impact on exam score.
d. It cannot be drawn from the information given.

Question
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48
How many Kleenex should the Kimberly Clark Corporation package of
tissues contain? Researchers determined that 60 tissues is the average number
of tissues used during a cold. Suppose a random sample of 100 Kleenex users
yielded the following data on the number of tissues used during a cold: = 52,
s = 22. Suppose the alternative we wanted to test was H1: < 60. State the
correct rejection region for = 0.05.
a. Reject H0 if t > 1.6604.
b. Reject H0 if t < -1.6604.
c. Reject H0 if t > 1.9842 or Z < -1.9842.
d. Reject H0 if t < -1.9842.

Question
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49
TABLE 14-5

A microeconomist wants to determine how corporate sales are influenced by

capital and wage spending by companies. She proceeds to randomly select 26
large corporations and record information in millions of dollars. The
Microsoft Excel output below shows results of this ltiple regression.

SUMMARY OUTPUT

Regression
Statistics
Multiple
0.830
R
 R Square 0.689
Adjusted
0.662
R Square
Standard 17501.6
Error 43
Observati
26
ons

ANOV d Sign
SS MS F
A f if F
Regres 1557977 778988 25.4 0.00
2
sion 7040 8520 32 01
Residu 2 7045072 306307
al 3 780 512
2 2262484
Total
5 9820

StdErro t P-
Coeff
r Stat value
Interce 15800.00 6038.29 2.61 0.015
pt 00 99 7 4
0.60 0.548
Capital 0.1245 0.2045
9 5
4.80 0.000
Wages 7.0762 1.4729
4 1

Referring to Table 14-5, which of the following values for is the smallest
for which the regression model as a whole is significant?

a. 0.00005
b. 0.001
c. 0.01
d. 0.05

Question
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50
TABLE 12-3
 A computer used by a 24-hour banking service is supposed to randomly
assign each transaction to one of 5 memory locations. A check at the end of a
days transactions gave the counts shown in the table to each of the 5 memory
locations, along with the number of reported errors.

Memory
1 2 3 4 5
Location:
Number of
82 100 74 92 102
Transactions:
Number of
Reported 11 12 6 9 10
Errors

The bank manager wanted to test whether the proportion of errors in

transactions assigned to each of the 5 memory locations differ.

Referring to Table 12-3, which test would be used to properly analyze the
data in this experiment?

a. test for independence in a two-way contingency table

b. test for equal proportions in a one-way table
c. ANOVA F test for main treatment effect
d. Z test for the difference in two proportions