The manager of Paul’s fruit and vegetable store is considering the purchase of a new
seedless watermelon from a wholesale distributor. Since this seedless watermelon costs
$4, will sell for $7, and is highly perishable, he only expects to sell between six and
nine of them. What is the opportunity loss for purchasing eight watermelons when the
demand is for eight watermelons?
A. 0
B. 3
C. 4
D. 6
A sample mean is the best point estimate of _______.
A. the population standard deviation
B. the population median
C. the population mean
D. the sample standard deviation
Refer to the following wage breakdown for a garment factory.
What is the class midpoint for the class with the greatest frequency?
A. $5.50
B. $8.50
C. $11.50
D. $14.50
A sampling plan states that if 20 incoming bolts are checked and 2 or less defective
bolts are discovered, the lot will be rejected. If an incoming lot is 10 percent defective,
what is the probability of rejecting the lot?
A. 0
B. 1
C. 0.323
D. 0.667
The wildlife department has been feeding a special food to rainbow trout fingerlings in
a pond. Based on a large number of observations, the distribution of trout weights is
normally distributed with a mean of 402.7 grams and a standard deviation of 8.8 grams.
What is the probability that the mean weight for a sample of 40 trout exceeds 405.5
grams?
A. 0.3782
B. 0.0222
C. 1.0
D. 0.5
The mean of any uniform probability distribution is _________.
A. (b – a)/2
B. (a + b)/2
C.
D. nπ
The forecast for the third quarter is 1,000 units; the seasonal index for the quarter is
1.10. What are the seasonally adjusted sales for the quarter?
A. 1,100
B. 1,110
C. 110
D. 100
The order that runners finish in a race would be an example of continuous data.
The national sales manager for “I colored this” (ICT) T-shirts provides all salespersons
with the payoff table shown next, giving the estimated profit when a retailer purchases
from one to four dozen T-shirts. The probability of demand for each state of nature is
also shown.
What is the value of perfect information if the expected payoff is $180?
A. 0
B. 96
C. 120
D. 150
If the correlation between the two independent variables of a regression analysis is 0.11
and each independent variable is highly correlated to the dependent variable, what does
this indicate?
A. Only one of the independent variables should be used in the regression equation.
B. The independent variables are strongly related.
C. Two separate regression equations are required.
D. Both independent variables should be used to predict the dependent variable.
The null hypothesis for an ANOVA analysis comparing four treatment means is
rejected. The four sample means are = 10, = 12, =
15, = 18. The sample size for each treatment is the same. If ( –
) is significantly different from zero, then ___________.
A. is significantly less than , ,
B. is significantly less than , and
C. are significantly different
D. The treatment means are all equal
It has been hypothesized that overall academic success for college freshmen as
measured by grade point average (GPA) is a function of IQ scores, X1, hours spent
studying each week, X2, and one’s high school average, X3. Suppose the regression
equation is . The multiple standard error is 6.313 and R2 = 0.826.
Which independent variable has the greatest effect on GPA?
For a sample of similar sized all-electric homes, the March electric bills were (to the
nearest dollar): $212, $191, $176, $129, $106, $92, $108, $109, $103, $121, $175, and
$194. What is the range?
A. $100
B. $130
C. $120
D. $112
A new machine is set or calibrated to fill tubes of toothpaste at precisely 6.75 ounces.
Then, once the machine is running, a sample of six tubes is taken every three hours and
weighed with the following results:
What is X-bar for 7 am?
A. 6.72
B. 6.74
C. 6.78
D. 6.80
A national manufacturer of ball bearings is experimenting with two different processes
for producing precision ball bearings. It is important that the diameters be as close as
possible to an industry standard. The output from each process is sampled and the
average error from the industry standard is measured in millimeters. The results are
presented next.
The researcher is interested in determining whether there is evidence that the two
processes yield different average errors. The population standard deviations are
unknown but are assumed equal. What is the null hypothesis?
A. H0: A = B
B. H0: A ≠B
C. H0: A ≤ B
D. H0: A > B
A sample of 100 students is selected from a known population of 1000 students to
construct a 95% confidence interval for the average SAT score. What correction factor
should be used to compute the standard error?
A. 0.949
B. 0.901
C. 1.96
D. Cannot be determined
The Quality Assurance Department selected a sample of 12 printed circuit boards and
tested them. The number of defects in each circuit board was 3, 3, 0, 5, 1, 1, 5, 6, 6, 2,
0, and 1. What kind of control chart should be constructed to monitor the process?
A. mean chart
B. range chart
C. percent defective chart
D. c-bar chart
In a two-way ANOVA table with interaction, the error degrees of freedom is represented
by the equation ________.
The mean monthly income of a group of college students is $500; the standard
deviation is $50. And the mean monthly income is normally distributed. Approximately,
what percent of the incomes will lie between $400 and $600?
A study by a bank compared the average savings of customers who were depositors for
three years or less, with those who had been depositors for more than three years. The
results of a sample are:
What is the computed test statistic? Round to two decimal places.
Describe the process of collecting data for the CPI.
In a frequency distribution, a class defined as “Under $100” and “$1,000 and over” is
called a(n) ____________.
You have a decision to invest $10,000 in any of four different companies. You estimate
the probabilities that the economy will be favorable or unfavorable and you estimate the
percent returns over the next year.
Based on expected opportunity loss, what is the choice?
Product sales since 1999 are:
The least squares trend equation is given as:
Ŷ = 265.12 – 21.18t, where t is set equal to 1 for 1999.
What were the predicted sales in 2006?
A student is planning a trip home for the holidays and has three options: car, train, or
jet. The decision depends on if the weather is good or bad. In addition, the student
estimated the costs for each option. The payoff table follows.
What is the expected value of taking a jet?
The ________ method of computing index numbers has the advantage that the
consumption pattern is always up-to-date.
For a sampling distribution of the means, about ________% of the means would be
between 1.96 standard deviations.