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Trey Leeman, Operations Manager at National Consumers, Inc. (NCI), is evaluating alternatives for increasing capacity at NCI’s Fountain Hill plant. He has identified four alternatives, and has constructed the following payoff table which shows payoffs (in $1,000,000’s) for the three […]

Calculating the “ratios of actuals to moving average” is a common step in time series decomposition. The results (the quotients) of this step estimate the ________. a) trend and cyclical components b) seasonal and irregular components c) cyclical and irregular […]

Golf course designer Roberto Langabeer is evaluating two sites, Palmetto Dunes and Ocean Greens, for his next golf course. He wants to prove that Palmetto Dunes residents (population 1) play golf more often than Ocean Greens residents (population 2). Roberto […]

Two popular general categories of smoothing techniques are averaging models and exponential models. If a researcher selects every kth item from a population of N items, then she is likely conducting a systematic random sampling. Answer: True One of the […]

One of the major uses of residual analysis is to test some of the assumptions underlying regression. Many human characteristics such as height and weight and many measurements such as variables such as household insurance and cost per square foot […]

The staffs of the accounting and the quality control departments rated their respective supervisor’s leadership style as either (1) authoritarian or (2) participatory. Sixty-eight percent of the accounting staff rated their supervisor “authoritarian,” and thirty-two percent rated him “participatory.” Forty […]

A commuter travels many miles to work each morning. She has timed this trip 5 times during the last month. The time (in minutes) required to make this trip was 38, 33, 36, 47, and 41. What is the standard […]

Suppose a researcher is testing a null hypothesis that  = 61. A random sample of n= 36 is taken resulting in a sample mean of 63 and s = 9. The observed tvalue is _______. a) -0.22 b) 0.22 […]

Prior to computing a Friedman test, the data are ranked within each block from smallest to largest. Quality control is the collection of strategies, techniques, and actions taken by an organization to assure itself that it is producing a quality […]

If autocorrelation occurs in regression analysis, then the confidence intervals and tests using the t and F distributions are no longer strictly applicable. Variables which take on values only at certain points over a given interval are called continuous random […]

Suppose 30% of the U.S. population has green eyes. If a random sample of size 1200 U.S. citizens is drawn, then the probability that less than 348 U.S. citizens have green eyes is _______. a) 0.2236 b) 0.2764 c) 0.2900 […]

Autocorrelation in a regression forecasting model can be detected by the Ftest. Both the Poisson and the binomial distributions are discrete distributions and both have a given number of trials. Answer: False The area of the rectangle depicting a uniform […]

For the following ANOVA table, the dfTreatmentvalue is ___________. a) 3 b) 43 c) 1.15 d) 460 e) 150 Performance records for 18 salespersons are selected to investigate whether compensation methods are a significant motivational factor. A Kruskal-Wallis test is […]

A qualitative variable which represents categories such as geographical territories or job classifications may be included in a regression model by using indicator or dummy variables. The alternative hypothesis for the Friedman test is that at least one treatment is […]

Abby Kratz, a market specialist at the market research firm of Saez, Sikes, and Spitz, is analyzing household budget data collected by her firm. Abby’s dependent variable is monthly household expenditures on groceries (in $’s), and her independent variable is […]

A standard deviation of the error of the regression model is called the _______. a) coefficient of determination b) sum of squares of error c) standard error of the estimate d) R-squared e) coefficient of correlation According to Garvin, transcendent […]

A carload of steel rods has arrived at Cybermatic Construction Company. The car contains 50,000 rods. Claude Ong, manager of Quality Assurance, directs his crew measure the lengths of 100 randomly selected rods. If the population of rods have a […]

The following class intervals for a frequency distribution were developed to provide information regarding the starting salaries for students graduating from a particular school: Before data was collected, someone questioned the validity of this arrangement. Which of the following represents […]

A local parent group was concerned with the increasing school cost for families with school aged children. The parent group was interested in understanding the relationship between the academic grade level for the child and the total costs spent per […]

Ophelia O’Brien, VP of Consumer Credit of American First Banks (AFB), monitors the default rate on personal loans at the AFB member banks. One of her standards is “no more than 5% of personal loans should be in default.” On […]

Systematic sampling is a type of random sampling technique. The middle value in an ordered array of numbers is called the mode. Answer: False The slope of the regression line, y = 21 − 5x, is 5. Answer: False For […]

A researcher wants to conduct a before/after study on 11 subjects to determine if a new cholesterol medication results in higher HDL cholesterol readings. The null hypothesis is that the average difference is zero while the alternative hypothesis is that […]

Eugene Gates, Marketing Director of Mansfield Motors Manufacturers, Inc.’s Electrical Division, is leading a study to assess the relative importance of product features. An item on a survey questionnaire distributed to 100 of Mansfield’s customers asked them to rate the […]

Inquiries arrive at a record message device according to a Poisson process of rate 15 inquiries per minute. The probability that it takes more than 12 seconds for the first inquiry to arrive is approximately _________ a) 0.05 b) 0.75 […]

Although seasonal effects can confound a trend analysis, a regression model is robust to these effects and the researcher does not need to adjust for seasonality prior to using a regression model to analyze trends. The variability in the estimated […]

If arrivals at a bank followed a Poisson distribution, then the time between arrivals would follow a binomial distribution. To test hypotheses about the equality of two population variances, the ratio of the variances of the samples from the two […]

Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the Plano Power Plant. Ten percent of all plant employees work in the finishing department; 20% of all plant employees are absent excessively; and 7% of all plant employees […]

The model y =  0+  1×1+  2×2+  3×3+  is a first-order regression model. In a multiple regression model, the proportion of the variation of the dependent variable, y, accounted for the independent variables in the […]

Frank Forgione has the right to enter a contest where he has a 50% chance of winning $50,000 and a 50% chance of losing $0. It costs Frank nothing to enter the contest. If he is willing to give up […]

The sampling distribution of is close to normal provided that n≥30. Given the error we are willing to tolerate, the sample size is determined by the mean of the population and the confidence level. Answer: False The lowest appropriate level […]

A commuter travels many miles to work each morning. She has timed this trip 5 times during the last month. The time (in minutes) required to make this trip was 34, 39, 41, 35, and 41. The mean time (in […]

A researcher wants to estimate the proportion of the population which possesses a given characteristic. A random sample of size 1800 is taken resulting in 450 items which possess the characteristic. The point estimate for this population proportion is _______. […]

A time series with forecast values and error terms is presented in the following table. The mean error (ME) for this forecast is ___________. a) 1.67 b) 1.34 c) 6.68 d) 3.67 e) 2.87 A researcher is conducting a matched”pairs […]