BUA 548 Quiz 1 | Course Paper

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True or False: The original data values cannot be determined once they are grouped into

a frequency distribution table.

True or False: TABLE 17-10

Given below are results from the regression analysis where the dependent variable is

the number of weeks a worker is unemployed due to a layoff (Unemploy) and the

independent variables are the age of the worker (Age), the number of years of education

received (Edu), the number of years at the previous job (Job Yr), a dummy variable for

marital status (Married: 1 = married, 0 = otherwise), a dummy variable for head of

household (Head: 1 = yes, 0 = no) and a dummy variable for management position

(Manager: 1 = yes, 0 = no). We shall call this Model 1. The coefficient of partial

determination ( ) of each of the 6 predictors are, respectively,

0.2807, 0.0386, 0.0317, 0.0141, 0.0958, and 0.1201.

Model 2 is the regression analysis where the dependent variable is Unemploy and the

independent variables are Age and Manager. The results of the regression analysis are

given below:

Referring to Table 17-10 and using both Model 1 and Model 2, there is sufficient

evidence to conclude that the independent variables that are not significant individually

are also not significant as a group in explaining the variation in the dependent variable

at a 5% level of significance.

TABLE 8-10

A sales and marketing management magazine conducted a survey on salespeople

cheating on their expense reports and other unethical conduct. In the survey on 200

managers, 58% of the managers have caught salespeople cheating on an expense report,

50% have caught salespeople working a second job on company time, 22% have caught

salespeople listing a ‘strip bar” as a restaurant on an expense report, and 19% have

caught salespeople giving a kickback to a customer.

True or False: Referring to Table 8-10, it is possible that the 95% confidence interval

calculated from the data will not contain the sample proportion of managers who have

caught salespeople cheating on an expense report.

TABLE 8-6

After an extensive advertising campaign, the manager of a company wants to estimate

the proportion of potential customers that recognize a new product. She samples 120

potential consumers and finds that 54 recognize this product. She uses this sample

information to obtain a 95% confidence interval that goes from 0.36 to 0.54.

True or False: Referring to Table 8-6, it is possible that the true proportion of people

that recognize the product is not between 0.36 and 0.54.

TABLE 11-3

As part of an evaluation program, a sporting goods retailer wanted to compare the

downhill coasting speeds of 4 brands of bicycles. She took 3 of each brand and

determined their maximum downhill speeds. The results are presented in miles per hour

in the table below.

True or False: Referring to Table 11-3, based on the Tukey-Kramer procedure with an

overall level of significance of 0.05, the retailer would decide that the 3 means other

than the mean for Tornado are not significantly different from each other.

True or False: A convenience sample is a type of probability sample.

TABLE 8-12

A random sample of 100 stores from a large chain of 500 garden supply stores was

selected to determine the mean number of lawnmowers sold at an end-of-season

clearance sale. The sample results indicated a mean of 6 and a standard deviation of 2

lawnmowers sold. A 95% confidence interval (5.623 to 6.377) was established based on

these results.

True or False: Referring to Table 8-12, if the population had consisted of 1,000 stores,

the confidence interval estimate of the mean with finite population correction would

have been wider in range.

True or False: A sample is used to obtain a 95% confidence interval for the mean of a

population. The confidence interval goes from 15 to 19. If the same sample had been

used to test the null hypothesis that the mean of the population is equal to 20 versus the

alternative hypothesis that the mean of the population differs from 20, the null

hypothesis could be rejected at a level of significance of 0.05.

True or False: TABLE 17-8

The superintendent of a school district wanted to predict the percentage of students

passing a sixth-grade proficiency test. She obtained the data on percentage of students

passing the proficiency test (% Passing), daily mean of the percentage of students

attending class (% Attendance), mean teacher salary in dollars (Salaries), and

instructional spending per pupil in dollars (Spending) of 47 schools in the state.

Following is the multiple regression output with Y = % Passing as the dependent

variable, X1 = % Attendance, X2 = Salaries and X3 = Spending:

Referring to Table 17-8, there is sufficient evidence that at least one of the explanatory

variables is related to the percentage of students passing the proficiency test at a 5%

level of significance.

TABLE 8-9

A university wanted to find out the percentage of students who felt comfortable

reporting cheating by their fellow students. A survey of 2,800 students was conducted

and the students were asked if they felt comfortable reporting cheating by their fellow

students. The results were 1,344 answered “Yes” and 1,456 answered “No.”

True or False: Referring to Table 8-9, we are 99% confident that between 45.57% and

50.43% of the student population feel comfortable reporting cheating by their fellow

students.

True or False: If the data set is approximately bell-shaped, the empirical rule will more

accurately reflect the greater concentration of data close to the mean as compared to the

Chebyshev rule.

True or False: An investment consultant is recommending a certain class of mutual

funds to the clienteles based on its exceptionally high probability of gain. It is an

unethical practice not to also recommend a class of mutual funds with an exceptionally

high probability of loss.

True or False: The professor of a business statistics class wanted to find out the mean

amount of time per week her students spent studying for the class. She divided the

students into the left, right and center groups according to the location they sat in the

class that day. One of these 3 groups was randomly selected and everyone in the group

was asked the mean amount of time per week he/she spent studying for the class. This

is an example of a cluster sample.

True or False: Every spring semester, the School of Business coordinates a luncheon for

graduating seniors, their families, and friends with local business leaders . Corporate

sponsorship pays for the lunches of each of the seniors, but students have to purchase

tickets to cover the cost of lunches served to guests they bring with them. Data on the

number of guests each graduating senior invited to the luncheon and the number of

graduating seniors in each category were collected. A histogram can be used to present

this information.

TABLE 12-4

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 day’s transactions

gave the counts shown in the table to each of the 5 memory locations, along with the

number of reported 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 12-4, which test would be used to properly analyze the data in this

experiment?

A) X2 test of independence

B) X2 test for difference among more than two proportions

C) McNemar test for the difference between two proportions

D) McNemar test for the difference among more than two proportions

TABLE 2-2

At a meeting of information systems officers for regional offices of a national company,

a survey was taken to determine the number of employees the officers supervise in the

operation of their departments, where X is the number of employees overseen by each

information systems officer.

Referring to Table 2-2, how many regional offices are represented in the survey results?

A) 5

B) 11

C) 15

D) 40

A major Blu-ray rental chain is considering opening a new store in an area that

currently does not have any such stores. The chain will open if there is evidence that

more than 5,000 of the 20,000 households in the area are equipped with Blu-ray

players. It conducts a telephone poll of 300 randomly selected households in the area

and finds that 96 have Blu-ray players. Which of the following tests will be the most

appropriate?

A) t test for the mean

B) Z test for the proportion

C) Pooled-variance t test

D) Separate-variance t test

The minimum expected opportunity loss is also equal to

A) expected profit under certainty.

B) expected value of perfect information.

C) coefficient of variation.

D) expected value under certainty minus the expected monetary value of the worst

alternative.

TABLE 9-2

A student claims that he can correctly identify whether a person is a business major or

an agriculture major by the way the person dresses. Suppose in actuality that if someone

is a business major, he can correctly identify that person as a business major 87% of the

time. When a person is an agriculture major, the student will incorrectly identify that

person as a business major 16% of the time. Presented with one person and asked to

identify the major of this person (who is either a business or an agriculture major), he

considers this to be a hypothesis test with the null hypothesis being that the person is a

business major and the alternative that the person is an agriculture major.

Referring to Table 9-2, what would be a Type II error?

A) Saying that the person is a business major when in fact the person is a business

major.

B) Saying that the person is a business major when in fact the person is an agriculture

major.

C) Saying that the person is an agriculture major when in fact the person is a business

major.

D) Saying that the person is an agriculture major when in fact the person is an

agriculture major.

In multiple regression, the ________ procedure permits variables to enter and leave the

model at different stages of its development.

A) forward selection

B) residual analysis

C) backward elimination

D) stepwise regression

TABLE 11-1

An airline wants to select a computer software package for its reservation system. Four

software packages (1, 2, 3, and 4) are commercially available. The airline will choose

the package that bumps as few passengers as possible during a month. An experiment is

set up in which each package is used to make reservations for 5 randomly selected

weeks. (A total of 20 weeks was included in the experiment.) The number of passengers

bumped each week is obtained, which gives rise to the following Excel output:

ANOVA

Referring to Table 11-1, the total degrees of freedom is

A) 3.

B) 4.

C) 16.

D) 19.

The owner of a fish market has an assistant who has determined that the weights of

catfish are normally distributed, with a mean of 3.2 pounds and a standard deviation of

0.8 pound. If a sample of 25 fish yields a mean of 3.6 pounds, what is the Z-score for

this observation?

A) 18.750

B) 2.500

C) 1.875

D) 0.750

TABLE 4-4

Suppose that patrons of a restaurant were asked whether they preferred water or

whether they preferred soda. 70% said that they preferred water. 60% of the patrons

were male. 80% of the males preferred water.

Referring to Table 4-4, the probability that a randomly selected patron is a female who

prefers water is ________.

Suppose a 95% confidence interval for has been constructed. If it is decided to take a

larger sample and to decrease the confidence level of the interval, then the resulting

interval width would ________. (Assume that the sample statistics gathered would not

change very much for the new sample.)

A) be larger than the current interval width

B) be narrower than the current interval width

C) be the same as the current interval width

D) be unknown until actual sample sizes and reliability levels were determined

The curve for the ________ will show a rapid increase in utility for initial amounts of

money followed by a gradual leveling off for increasing dollar amounts.

A) risk taker

B) risk averter

C) risk neutral

D) profit seeker

TABLE 15-3

A chemist employed by a pharmaceutical firm has developed a muscle relaxant. She

took a sample of 14 people suffering from extreme muscle constriction. She gave each a

vial containing a dose (X) of the drug and recorded the time to relief (Y) measured in

seconds for each. She fit a curvilinear model to this data. The results obtained by

Microsoft Excel follow

True or False: Referring to Table 15-3, suppose the chemist decides to use a t test to

determine if there is a significant difference between a linear model and a curvilinear

model that includes a linear term. If she used a level of significance of 0.01, she would

decide that the linear model is sufficient.

TABLE 2-3

Every spring semester, the School of Business coordinates a luncheon with local

business leaders for graduating seniors, their families, and friends. Corporate

sponsorship pays for the lunches of each of the seniors, but students have to purchase

tickets to cover the cost of lunches served to guests they bring with them. The following

histogram represents the attendance at the senior luncheon, where X is the number of

guests each graduating senior invited to the luncheon and f is the number of graduating

seniors in each category.

Referring to the histogram from Table 2-3, how many graduating seniors attended the

luncheon?

A) 4

B) 152

C) 275

D) 388

Four surgical procedures currently are used to install pacemakers. If the patient does not

need to return for follow-up surgery, the operation is called a “clear” operation. A heart

center wants to compare the 4 procedures, and collects the following numbers of

patients from their own records:

Which of the following tests will be the most appropriate to find out which of the 4

procedures is the most effective?

A) Ï‡2 test for difference in proportions

B) Z test for difference in proportions

C) One-way ANOVA F test for differences among more than two means

D) The Marascuilo procedure

TABLE 13-13

In this era of tough economic conditions, voters increasingly ask the question: “Is the

educational achievement level of students dependent on the amount of money the state

in which they reside spends on education?” The partial computer output below is the

result of using spending per student ($) as the independent variable and composite score

which is the sum of the math, science and reading scores as the dependent variable on

35 states that participated in a study. The table includes only partial results.

Referring to Table 13-13, the decision on the test of whether composite score depends

linearly on spending per student using a 10% level of significance is to ________

(reject or not reject) .

TABLE 19-3

The following information is from 2 investment opportunities.

Referring to Table 19-3, what is the coefficient of variation for investment A?

A) 90.0%

B) 11.1%

C) 8.3%

D) 5.0%

Referring to Table 14-4, one individual in the sample had an annual income of $40,000

and a family size of 1. 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?

TABLE 14-4

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

family income (Income) and family size (Size). House size is measured in hundreds of

square feet and income is measured in thousands of dollars. The builder randomly

selected 50 families and ran the multiple regression. Partial Microsoft Excel output is

provided below:

Also SSR (X1âˆ£ X2) = 36400.6326 and SSR (X2âˆ£ X1) = 3297.7917

You were told that the amount of time lapsed between consecutive trades on the New

York Stock Exchange followed a normal distribution with a mean of 15 seconds. You

were also told that the probability that the time lapsed between two consecutive trades

to fall between 16 to 17 seconds was 13%. The probability that the time lapsed between

two consecutive trades would fall below 13 seconds was 7%. What is the probability

that the time lapsed between two consecutive trades will be between 13 and 16

seconds?

TABLE 12-3

The director of transportation of a large company is interested in the usage of her van

pool. She considers her routes to be divided into local and non-local. She is particularly

interested in learning if there is a difference in the proportion of males and females who

use the local routes. She takes a sample of a day’s riders and finds the following:

She will use this information to perform a chi-square hypothesis test using a level of

significance of 0.05.

Referring to Table 12-3, the value of the test statistic is ________.

TABLE 2-10

The histogram below represents scores achieved by 200 job applicants on a personality

profile.

Referring to the histogram from Table 2-10, ________ percent of the applicants scored

between 20 and below 50.

TABLE 5-10

An accounting firm in a college town usually recruits employees from two of the

universities in town. This year, there are fifteen graduates from University A and five

from University B and the firm decides to hire six new employees from the two

universities.

Referring to Table 5-10, what is the probability that none of the new employees will be

from University B?

TABLE 16-5

The number of passengers arriving at San Francisco on the Amtrak cross-country

express on 6 successive Mondays were: 60, 72, 96, 84, 36, and 48.

Referring to Table 16-5, the number of arrivals will be smoothed with a 3-term moving

average. The first smoothed value will be ________.

In a game called Taxation and Evasion, a player rolls a pair of dice. If on any turn the

sum is 7, 11, or 12, the player gets audited. Otherwise, she avoids taxes. Suppose a

player takes 5 turns at rolling the dice. The probability that she gets audited no more

than 2 times is ________.

TABLE 9-11

An appliance manufacturer claims to have developed a compact microwave oven that

consumes a population mean of no more than 250 W. From previous studies, it is

believed that power consumption for microwave ovens is normally distributed with a

population standard deviation of 15 W. If there is evidence that the population mean

consumption is greater than 250 W, the manufacturer will be unable to make the claim.

Referring to Table 9-11, if you select a sample of 20 compact microwave ovens and are

willing to have a level of significance of 0.01, the probability of making a Type II error

is ________ if the mean power consumption of all such microwave ovens is in fact

257.3 W.