Business Statistics, Binder Ready Version: For Contemporary Decision Making 8th Edition

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 possible levels of market demand. If Trey uses the maximin criterion,

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 components d) trend and seasonal components e) irregular components Answer: b Answer: b Answer: b According to the central

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 commissions a market survey to test this hypothesis. The market

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

One of the major uses of residual analysis is to test some of the assumptions underlying regression. Answer: True Answer: True Answer: True Many human characteristics such as height and weight and many measurements such as variables such as household insurance and cost per square foot of rental space are normally distributed. Answer: True Answer: True Answer: True For

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 percent of the quality control staff rated their supervisor "authoritarian,"

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 deviation for this sample data? a) 28.5 b) 11 c) 22.8 d) 5.34 e) 4.77 Answer:

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 c) 1.33 d) 8.08 e) 7.58 Answer: c Answer: c Answer: c A researcher wishes to determine the difference in two

Prior to computing a Friedman test, the data are ranked within each block from smallest to largest. Answer: True Answer: True Answer: True Quality control is the collection of strategies, techniques, and actions taken by an organization to assure itself that it is producing a quality product. Answer: True Answer: True Answer: True Statistics is commonly divided into

If autocorrelation occurs in regression analysis, then the confidence intervals and tests using the t and F distributions are no longer strictly applicable. Answer: True Answer: True Answer: True Variables which take on values only at certain points over a given interval are called continuous random variables Answer: False Answer: False Answer: False Regression output from Minitab software

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 d) 0.7764 e) 0.3336 Answer: a Answer: a Answer: a When constructing a weighted aggregate price index, the weights

Autocorrelation in a regression forecasting model can be detected by the Ftest. Answer: False Answer: False Answer: False Both the Poisson and the binomial distributions are discrete distributions and both have a given number of trials. Answer: False Answer: False Answer: False The area of the rectangle depicting a uniform distribution is always equal to the mean

For the following ANOVA table, the dfTreatmentvalue is ___________. a) 3 b) 43 c) 1.15 d) 460 e) 150 Answer: a Answer: a Answer: a Performance records for 18 salespersons are selected to investigate whether compensation methods are a significant motivational factor. A Kruskal-Wallis test is to be performed with = 0.01. The null hypothesis is _______. a) Group 1 =

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. Answer: True Answer: True Answer: True The alternative hypothesis for the Friedman test is that at least one treatment is different from at least one other treatment. Answer: True Answer: True Answer: True The

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 annual household income (in $1,000's). Regression analysis of the data

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 Answer: c Answer: c Answer: c According to Garvin, transcendent quality implies that a product __________. a) conforms to design and engineering specifications b) has

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 mean length of 120 inches and a standard deviation of

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 problem with this set of intervals? a) There are too many

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 child per academic year. They performed a multiple regression analysis

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 each Friday, the default rate is calculated for a sample

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

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 the average difference is not zero. Scores are obtained on

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 importance of "ease of maintenance" on a scale of 1

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 c) 0.25 d) 0.27 e) 0.73 Answer: a Answer: a Answer: a The following graphic of residential housing data

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. Answer: False Answer: False Answer: False The variability in the estimated slope is smaller when the x-values are more spread

If arrivals at a bank followed a Poisson distribution, then the time between arrivals would follow a binomial distribution. Answer: False Answer: False Answer: False To test hypotheses about the equality of two population variances, the ratio of the variances of the samples from the two populations is tested using the Ftest. Answer: True Answer:

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 work in the finishing department and are absent excessively. A plant

The model y = 0+ 1x1+ 2x2+ 3x3+ is a first-order regression model. Answer: True Answer: True Answer: True In a multiple regression model, the proportion of the variation of the dependent variable, y, accounted for the independent variables in the regression model is given by the coefficient

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 his right to enter the contest for a sure payment of

The sampling distribution of is close to normal provided that n30. Answer: False Answer: False Answer: False 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 Answer: False Answer: False The lowest appropriate level of measurement for the median is ordinal.

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 minutes) required for this trip was _______. a) 35 b) 41 c) 37.5 d)

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) 0.55 b) 0.45 c) 0.35 d) 0.25 e) 0.15 Answer: d Answer: d Answer: d If xis uniformly distributed

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 Answer: a Answer: a Answer: a A researcher is conducting a matched"pairs study. She gathers data on each pair in the study resulting in: Assume that