When perfect negative autocorrelation is present in a time series, the Durbin-Watson
statistic will be equal to ________.
A) 0
B) 1
C) 3
D) 4
The ______________________ represents the expected payoff we will realize if we
have prior knowledge about which state of nature will occur.
A) expected value of perfect information (EVPI)
B) expected value under risk (EVUR)
C) expected monetary value (EMV)
D) expected value under certainty (EVUC)
Which of the following is not a characteristic of a binomial experiment?
A) The experiment consists of a fixed number of trials.
B) Each trial has only two possible outcomesa success or a failure.
C) The probability of a success must exceed the probability of a failure.
D) Each trial is independent of the other trials in the experiment.
The __________ criterion is the alternative associated with the highest payoff in the
decision table.
A) equally likely
B) maximax
C) maximin
D) minimax regret
Costco sells paperback books in their retail stores and wanted to examine the
relationship between price and demand. The price of a particular novel was adjusted
each week and the weekly sales were recorded in the table below.
Management would like to use simple regression analysis to estimate weekly demand
for this novel using the price of the novel. The sum of squares error for this sample is
________.
A) 7.63
B) 9.24
C) 11.31
D) 14.30
A _____ chart is a special type of scatter plot in which the data points in the scatter plot
are connected with a line.
A) bar
B) Pareto
C) line
D) pie
Sony would like to test the hypothesis that the standard deviation for the age of
PlayStation users is higher than the standard deviation for the age of Xbox users. The
following table summarizes sample statistics from each population.
Using α = 0.05, the conclusion for this hypothesis test would be that because the test
statistic is ___________________________________.
A) more than the critical value, we fail to reject the null hypothesis and conclude that
the
standard deviation for the age of PlayStation users is higher than the standard deviation
for the age of Xbox users
B) more than the critical value, we reject the null hypothesis and cannot conclude that
the standard deviation for the age of PlayStation users is higher than the standard
deviation for the age of Xbox users
C) less than the critical value, we fail to reject the null hypothesis and conclude that the
standard deviation for the age of PlayStation users is higher than the standard deviation
for the age of Xbox users
D) less than the critical value, we fail to reject the null hypothesis and cannot conclude
that the standard deviation for the age of PlayStation users is higher than the standard
deviation for the age of Xbox users
With the increased demand for Internet access, airlines have been investing in
expanding service on their flights. Recently, 79% of Delta Air Lines’ 727 planes were
equipped with Wi-Fi. A random sample of 200 planes from Delta’s fleet was selected.
What is the probability that 164 or fewer planes from this sample were equipped with
Wi-Fi?
A) 0.6255
B) 0.7324
C) 0.8508
D) 0.8888
Use the information below to answer the following question(s).
The following decision tree is partially completed for a company that is deciding to
build a large or small facility for a new product that will face demand that is strong or
weak. The company has an option to perform a market survey that will cost $4,000 that
will predict a strong or weak market. The payoffs for each combination of facility size
and demand are also shown.
Given the survey will predict a weak market, the expected monetary value of building a
small facility is ________.
A) “$1,200
B) “$700
C) $2,800
D) $4,300
Sheridan Motors is a car dealership that would like to investigate if there is a difference
in the average number of car sales per month between three sales employees using a
randomized block ANOVA. The following data represent the number of car sales last
year for these employees for six different months.
The conclusion for the Tukey-Kramer multiple comparisons test using α = 0.05 is that
_____________________________________________________________________.
A) John and Bill are the only pair of average monthly sales that are different
B) John and Chris are the only pair of average monthly sales that are different
C) Bill and Chris are the only pair of average monthly sales that are different
D) John and Bill have different average monthly sale. John and Chris also have
different average monthly sales
The presence of multicollinearity can be detected in a regression model using the
___________________________.
A) coefficient of determination
B) adjusted coefficient of determination
C) variance inflation factor
D) standard error of the regression coefficient
________ is present in the regression model when independent variables within the
model are highly correlated.
A) Multicollinearity
B) Homoscedasticity
C) Correlation
D) Significance
Dwight Howard plays center in the National Basketball Association and averaged 1.8
blocked shots per game during a recent season. Assume that the number of blocked
shots per game follows the Poisson distribution. What is the probability that Dwight
Howard will block exactly one shot during the next game?
A) 0.2975
B) 0.3960
C) 0.4347
D) 0.5236
A survey by American Express Spending reported that the average amount spent on a
wedding gift for a close family member is $166. A random sample of 45 people who
purchased wedding gifts for a close family member spent an average of $160.50.
Assume that the population standard deviation is $38. Use a 95% confidence interval to
test the validity of this report and choose the one statement that is correct.
A) Because this confidence interval does not include $166, the report by American
Express Spending is not validated.
B) Because this confidence interval does not include $166, the report by American
Express Spending is validated.
C) Because this confidence interval does include $166, the report by American Express
Spending is validated.
D) Because this confidence interval does include $166, the report by American Express
Spending is not validated.
Assume that the flight time for a United Airlines flight from Philadelphia to Dallas
follows the uniform probability distribution between 210 and 250 minutes. What is the
probability that a randomly selected flight will take less than 224 minutes?
A) 0.18
B) 0.35
C) 0.46
D) 0.60
Ford would like to develop a regression model that would predict the number of cars
sold per month by a dealership employee based on the employee’s number of years of
sales experience (X1), the employee’s weekly base salary before commissions (X2) and
the education level of the employee. There are three levels of education in the sales
forcehigh school degree, associate’s degree, and bachelor’s degree. The following
dummy variables have been defined.
The following table shows the results of a best subsets regression procedure.
The set of independent variables that would be the most appropriate to predict the
monthly sales volume of an employee is
_________________________________________________.
A) number of years of sales experience and the employee’s weekly base salary before
commissions
B) the employee’s weekly base salary before commissions, X3 and X4
C) number of years of sales experience, the employee’s weekly base salary before
commissions, and X3
D) number of years of sales experience, the employee’s weekly base salary before
commissions, X3 and X4
The ________ probability distribution is used to describe data where lower values tend
to dominate and higher values don’t occur very often.
A) binomial
B) normal
C) exponential
D) uniform
A survey asked randomly selected adults 18-29 years old to indicate their working
status. The results are shown in the following table.
The probability that a randomly selected adult 18-29 years old is working part-time is
________.
A) 0.09
B) 0.24
C) 0.30
D) 0.60
Zappos is an online retailer based in Nevada and employs 1,300 employees. One of
their competitors, Amazon.com, would like to test the hypothesis that the average age
of a Zappos employee is less than 36 years old. A random sample of 22 Zappos
employees was found to have an average age of 33.9 years. The standard deviation for
this sample was 4.1 years. Amazon would like to set α = 0.025. Which one of the
following statements is true?
A) Because the p-value is greater than α, we reject the null hypothesis and cannot
conclude that the average age of Zappos employees is less than 36 years old.
B) Because the p-value is greater than α, we fail to reject the null hypothesis and cannot
conclude that the average age of Zappos employees is less than 36 years old.
C) Because the p-value is less than α, we fail to reject the null hypothesis and conclude
that the average age of Zappos employees is less than 36 years old.
D) Because the p-value is less than α, we reject the null hypothesis and conclude that
the average age of Zappos employees is less than 36 years old.
Use the following information to answer the question(s) below.
Ford would like to develop a regression model that would predict the number of cars
sold per month by a dealership employee based on the employee’s number of years of
sales experience (Exp), the employee’s weekly base salary before commissions (Salary),
and the education level of the employee. There are three levels of education in the sales
forcehigh school degree, associate’s degree, and bachelor’s degree. The following
dummy variables have been defined.
The following Excel output shows the partially completed regression output from a
random sample of employees from the previous month.
Every additional $100 of base salary will
_______________________________________.
A) increase the average number of cars sold per month by 1.6448
B) increase the average number of cars sold per month by 1.27
C) increase the average number of cars sold per month by 0.3265
D) increase the average number of cars sold per month by 1.6352
Sony would like to test the hypothesis that the average age of a PlayStation user is
different from the average age of an Xbox user. A random sample of 36 PlayStation
users had an average age of 34.2 years while a random sample of 30 Xbox users had an
average age of 32.7 years. Assume that the population standard deviation for the age of
PlayStation and Xbox users is 3.9 and 4.0 years, respectively. Sony would like to set α
= 0.10. The p-value for this hypothesis test would be________.
A) 0.0319
B) 0.0643
C) 0.1260
D) 0.1722
A study conducted by Harvard Business School recorded the amount of time CEOs
devoted to various activities during the workweek. Meetings were the single largest
activity averaging 18 hours per week. Assume that the standard deviation for the time
spent in meetings is 5.2 hours. To confirm these results, a random sample of 35 CEOs
was selected. This sample averaged 16.8 hours per week in meetings. Which of the
following statements is correct?
A) The interval that contains 95% of the sample means is 16.3 and 19.7 hours. Because
the sample mean is between these two values, we have support for the results of the
CEO study by the Harvard Business School.
B) The interval that contains 95% of the sample means is 17.1 and 18.9 hours. Because
the sample mean is not between these two values, we do not have support for the results
of the CEO study by the Harvard Business School.
C) The interval that contains 95% of the sample means is 15.7 and 20.3 hours. Because
the sample mean is between these two values, we have support for the results of the
CEO study by the Harvard Business School.
D) The interval that contains 95% of the sample means is 15.7 and 20.3 hours. Because
the sample mean is between these two values, we do not have support for the results of
the CEO study by the Harvard Business School.
Expedia would like to test the hypothesis that the average roundtrip airfare between
Philadelphia and Paris is higher for a flight originating in Philadelphia when compared
to a flight originating in Paris. The following data summarizes the sample statistics for
roundtrip flights originating in both cities. Assume that the population variances are
equal.
If Population 1 is defined as flights originating in Philadelphia and Population 2 is
defined as flights originating in Paris, and using α = 0.05, which one of the following
statements is true?
A) Because the p-value is greater than α, Expedia cannot conclude that the average
roundtrip airfare between Philadelphia and Paris is higher for a flight originating in
Philadelphia when compared to a flight originating in Paris.
B) Because the p-value is greater than α, Expedia can conclude that the average
roundtrip airfare between Philadelphia and Paris is higher for a flight originating in
Philadelphia when compared to a flight originating in Paris.
C) Because the p-value is less than α, Expedia can conclude that the average roundtrip
airfare between Philadelphia and Paris is higher for a flight originating in Philadelphia
when compared to a flight originating in Paris.
D) Because the p-value is less than α, Expedia cannot conclude that the average
roundtrip airfare between Philadelphia and Paris is higher for a flight originating in
Philadelphia when compared to a flight originating in Paris.
The following table displays the amount of data that Steve has used each month, in GB,
with his iPhone during the past six months.
The residual for Month 3 is ________.
A) -0.7
B) -3.8
C) 1.0
D) 2.2
A professor would like to test the hypothesis that the average number of minutes that a
student needs to complete a statistics exam is equal to 45 minutes. A Type I error would
occur if the professor concludes that the average exam time is
_________________________________.
A) not equal to 45 minutes when, in reality, the average time is equal to 45 minutes
B) not equal to 45 minutes when, in reality, the average time is greater than 45 minutes
C) equal to 45 minutes when, in reality, the average time is less than 45 minutes
D) equal to 45 minutes when, in reality, the average time is not equal to 45 minutes
The following chart shows the percentage of adults from various countries who
admitted to texting while driving in a recent survey.
Which of the following statements is not correct?
A) The USA has the highest percentage of adults who admitted to texting while driving.
B) The United Kingdom has a higher percentage of adults who admit to texting while
driving when compared to Germany.
C) Spain has the lowest percentage of adults who admitted to texting while driving.
D) The United Kingdom has a lower percentage of adults who admit to texting while
driving when compared to France.
________ probability is the probability of Event A occurring knowing that Event B has
already occurred.
A) Joint
B) Conditional
C) Prior
D) Marginal
Recently, Experian reported that the average credit score for a new-car loan was 753.
Suppose Ally Financial, a bank holding company that finances car loans, would like to
test the hypothesis that the average credit score has increased since the Experian report.
A random sample of 20 new-car loans had an average credit score of 764.2 with a
sample standard deviation of 34.5. Ally Financial would like to set α = 0.05. Which one
of the following statements is true?
A) Because the p-value is greater than α, we reject the null hypothesis and conclude that
the average credit score for a new-car loan is more than 753.
B) Because the p-value is greater than α, we fail to reject the null hypothesis and cannot
conclude that the average credit score for a new-car loan is more than 753.
C) Because the p-value is less than α, we fail to reject the null hypothesis and conclude
that the average credit score for a new-car loan is more than 753.
D) Because the p-value is less than α, we reject the null hypothesis and cannot conclude
that the average credit score for a new-car loan is more than 753.
According to the Mortgage Bankers Association, 11% of U.S. mortgages were
delinquent last year. A delinquent mortgage is one that has missed at least one payment
but has not yet gone to foreclosure. A random sample of six mortgages was selected.
What is the probability that less than three of these mortgages are delinquent?
A) 0.7044
B) 0.7525
C) 0.8236
D) 0.9794
Consider the partially completed two-way ANOVA summary table.
Using α = 0.05, a conclusion for this ANOVA procedure would be that because the
interaction test statistic is
_________________________________________________________________.
A) more than the critical value, we cannot reject the null hypothesis and can conclude
that Factors A and B interact
B) less than the critical value, we can reject the null hypothesis and can conclude that
Factors A and B interact
C) less than the critical value, we cannot reject the null hypothesis and can conclude
that Factors A and B do not interact
D) more than the critical value, we can reject the null hypothesis and can conclude that
Factors A and B do not interact
Use the following information to answer the question(s) below.
A home appraisal company would like to develop a regression model that would predict
the selling price of a house based on the age of the house in years (Age), the living area
of the house in square feet (Living Area) and the number of bedrooms (Bedrooms). The
following Excel output shows the partially completed regression output from a random
sample of homes that have recently sold.
The degrees of freedom for the sum of squares error are ________.
A) 3
B) 5
C) 11
D) 14
The federal government would like to test the hypothesis that the average age of men
filing for Social Security is higher than the average age of women set using α = 0.05
with the following data:
If Population 1 is defined as men and Population 2 is defined as women, the standard
error of the difference between two means for this hypothesis test would be ________.
A) 0.756
B) 0.994
C) 1.265
D) 1.843
Use the information below to answer the following question(s).
The Marseille Water Taxi ferries tourists from the harbor at Marseille, France, to the
Frioul Islands in the Mediterranean Sea. The table below shows the number of
passengers on the noontime ferry over seven randomly selected days along with the
current ambient temperature in degrees Celsius.
Use the Marseille Water Taxi data to perform a hypothesis test to determine if the
population correlation coefficient is more than zero using α = 0.05.