# A SAMPLE TEST OF BUSINESS STATISTICS

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Essay

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9 pages

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2328 words

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Baptist Health System Sc

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Statistic for Business

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Page 1

A SAMPLE TEST OF BUSINESS STATISTICS (90 MINUTES)

STUDENT NAME: STUDENT ID:

Choose the one alternative that best answers the question.

1) A population has groups that have a small amount of variation within them, but large variation among

or between the groups themselves. The proper sampling technique is

A) simple random. B) stratified.

C) cluster. D) judgment.

2) The distribution pictured below is

A) bimodal and skewed right. B) bimodal and skewed left.

C) skewed right. D) skewed left.

3) Bob found an error in the following frequency distribution. What is it?

Class

Frequency

1–10

2

11–20

6

25–30

8

31–40

12

44–50

6

A) The class limits are overlapping too much.

B) The classes are not collectively exhaustive.

C) There are too many classes by Sturges' Rule.

D) The first class must start at 0.

4) Below is a sorted stem-and-leaf diagram for the measured speeds (miles per hour) of 49 randomly

chosen vehicles on highway I-80 in Nebraska. How many vehicles were traveling exactly the speed limit

(70 mph)?

Stem unit

=

10

Leaf unit

=

1

Frequency

Stem

Leaf

1

4

9

1

5

5

17

6

0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9

19

7

0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9 9

7

8

0 1 3 3 5 5 7

4

9

0 1 2 2

49

A) 0 B) 1

C) 19 D) Impossible to tell

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5) Shown the spending by a sample of 50 breakfast customers of McDonald's. Which statement is least

likely to be correct?

A) The median is very close to the midhinge.

B) The median purchase is slightly less than $5.

C) About 75 percent of the customers spend less than $7.

D) The mean is a reasonable measure of center.

6) Given the contingency table shown here, find P(G | M).

Vehicle Type

Somerset

(S)

Oakland

(O)

Great Lakes

(G)

Row Total

Car (C)

44

49

36

129

Minivan (M)

21

15

18

54

Full-Size Van (F)

2

3

3

8

SUV (V)

19

27

26

72

Truck (T)

14

6

17

37

Col Total

100

100

100

300

A) .1800 B) .0450

C) .3333 D) .1350

7) The manager of Ardmore Pharmacy knows that 25 percent of the customers entering the store buy

prescription drugs, 65 percent buy over-the-counter drugs, and 18 percent buy both types of drugs. What

is the probability that a randomly selected customer will buy at least one of these two types of drugs?

A) .90 B) .85

C) .72 D) .65

8) In a certain city, 5 percent of all drivers have expired licenses and 10 percent have an unpaid parking

ticket. If these events are independent, what is the probability that a driver has both an expired license and

an unpaid parking ticket?

A) .010 B) .005

C) .001 D) Cannot be determined

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9) At Joe's Restaurant, 80 percent of the diners are new customers (N), while 20 percent are returning

customers (R). Fifty percent of the new customers pay by credit card, compared with 70 percent of the

regular customers. If a customer pays by credit card, what is the probability that the customer is a new

customer?

A) .7407 B) .8000

C) .5400 D) .5000

10) To ensure quality, customer calls for airline fare quotations are monitored at random. On a particular

Thursday afternoon, ticket agent Bob gives 40 fare quotations, of which 4 are incorrect. In a random

sample of 8 of these customer calls, which model best describes the number of incorrect quotations Bob

will make?

A) Binomial B) Poisson

C) Hypergeometric D) Geometric

11) A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00, and if it lands

tails you lose $0.50. How much should a ticket to play this game cost if the carnival wants to break even?

A) $0.25 B) $0.50

C) $0.75 D) $1.00

12) A clinic employs nine physicians. Five of the physicians are female. Four patients arrive at once.

Assuming the doctors are assigned randomly to patients, what is the probability that all of the assigned

physicians are female?

A) .0397 B) .0295

C) .0808 D) .0533

13) On average, 15 minutes elapse between discoveries of fraudulent corporate tax returns in a certain

IRS office. What is the probability that less than 30 minutes will elapse before the next fraudulent

corporate tax return is discovered?

A) .1353 B) .6044

C) .7389 D) .8647

14) A software developer makes 175 phone calls to its current customers. There is an 8 percent chance of

reaching a given customer (instead of a busy signal, no answer, or answering machine). The normal

approximation of the probability of reaching at least 20 customers is

A) .022 B) .007

C) .063 D) .937

15) A random sample of 160 commercial customers of PayMor Lumber revealed that 32 had paid their

accounts within a month of billing. The 95 percent confidence interval for the true proportion of

customers who pay within a month would be

A) 0.148 to 0.252 B) 0.138 to 0.262

C) 0.144 to 0.256 D) 0.153 to 0.247

16) The owner of Limp Pines Resort wanted to know the average age of its clients. A random sample of

25 tourists is taken. It shows a mean age of 46 years with a standard deviation of 5 years. The width of a

98 percent confidence interval for the true mean client age is approximately

A) ±1.711 years. B) ±2.326 years.

C) ±2.492 years. D) ±2.797 years.

17) Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs and would like to

know what proportion of the positive lab tests for prostate cancer are actually proven correct through

subsequent biopsy. JBGHI demands a sample large enough to ensure an error of ±2 percent with 90

percent confidence. What is the necessary sample size?

A) 4,148 B) 2,401

C) 1,692 D) 1,604

18) A sample of 16 ATM transactions shows a mean transaction time of 67 seconds with a standard

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