Use the information below to answer the following question(s).
Hats-R-Us would like to produce a new design of hats for the upcoming Major league
Baseball World Series. They need to decide to produce a large quantity or small
quantity of hats prior to the event starting. Eventual demand for this new design will be
strong or weak with a 50/50 chance of each level occurring. The following table shows
the payoff for each combination of production size and demand level, in thousands of
dollars.
Hats-R-Us also has the option of conducting a market survey at a cost of $10,000 to
acquire more accurate information about the likelihood of each demand level. If the
survey results are positive, there is an 83% probability that the eventual demand for the
new hat design will be strong. If the survey results are negative, there is a 23%
probability that the eventual demand for the new hat design will be strong.
Construct a decision tree to answer the following set of questions.
The expected value without sample information, in thousands of dollars is _________.
A) $212.3
B) $240.0
C) $288.6
D) $296.4
The following data represent the discrete probability distribution for the number of stars
that reviewers gave a first edition statistics reference book.
The second edition of this reference book has been released and a random sample of
people that have purchased the book has been collected with the following results.
The publisher would like to know if the probability distribution for reviews has changed
from the first edition to the second edition using α = 0.025. The expected frequency of
five-star reviews is ________.
A) 6
B) 12
C) 15
D) 20
A golfer would like to test the hypothesis that the variance of his golf score equals 10.0.
A random sample of 28 rounds of golf had a sample standard deviation of 3.5. Using α
= 0.10, the conclusion for this hypothesis test would be that because the test statistic is
________________.
A) less than the lower critical value, we fail to reject the null hypothesis and conclude
that the variance for this golfer’s scores is not equal to 10.0
B) between the lower and upper critical values, we reject the null hypothesis and cannot
conclude that the variance for this golfer’s scores is not equal to 10.0
C) more than the upper critical value, we can reject the null hypothesis and conclude
that the variance for this golfer’s scores is not equal to 10.0
D) between the lower and upper critical values, we fail to reject the null hypothesis and
cannot conclude that the variance for this golfer’s scores is not equal to 10.0
The following data represent the number of complaints per month that customer service
received at a large retailer over the last 15 months.
The predicted number of complaints for Month 16 using trend projection is ________.
A) 3.0
B) 3.5
C) 3.9
D) 4.6
The following graph shows the square footage of 10 homes along with their
corresponding heating cost for the most recent month.
Which one of the following statements is not correct?
A) Monthly heating cost is the dependent variable in the graph.
B) Square footage is the independent variable in the graph.
C) As the square footage of the home increases, the monthly heating cost tends to
increase.
D) As the square footage of the home increases, the monthly heating cost tends to
decrease.
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 95% confidence interval for the
regression slope is ________.
A) (“3.957, 1.043)
B) (“2.373, “0.541)
C) (“1.857, “1.057)
D) (“6.057, 3.143)
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 regression for this
sample is ________.
A) 24.17
B) 37.20
C) 40.16
D) 46.25
The following distribution shows the frequency of daily revenue for an Italian
restaurant in Wilmington, Delaware.
What is the probability that a randomly selected day will generate between $2,000 and
under $4,000 in revenue?
A) 0.100
B) 0.125
C) 0.325
D) 0.500
Suppose the average tread-life of a certain brand of tire is 42,000 miles and that this
mileage follows the exponential probability distribution. What is the probability that a
randomly selected tire will have a tread-life between 30,000 and 50,000 miles?
A) 0.1854
B) 0.2719
C) 0.5105
D) 0.6959
According to the Centers for Medicare & Medicaid Services, 21% of nursing homes in
the United States received five stars in overall ratings on a scale of 1 to 5. A random
sample of seven nursing homes was selected. What is the mean of this distribution?
A) 0.40
B) 0.85
C) 1.47
D) 1.97
The following contingency table shows the number of customers who bought various
brands of digital cameras at Walmart and Best Buy.
The probability that a randomly selected customer from this sample bought a Canon
camera or purchased a camera at Walmart is ________.
A) 0.465
B) 0.539
C) 0.600
D) 0.688
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.
The p-value for the hypothesis test for the overall regression model is ________.
A) 0.3265
B) 0.0709
C) 0.0396
D) 4.0112E-07
The main drawback to using secondary data is that _______________________.
A) it may be expensive to obtain the data
B) the subjects of interest need to be directly observed to collect the data
C) the subjects of interest are paid to provide the data
D) you have no control over how the data were collected
Many hotel chains that offer free Wi-Fi service to their customers have experienced
increasing demand for Internet bandwidth and increasing costs. Marriott International
would like to test the hypothesis that the proportion of customers that are carrying two
Wi-Fi devices exceeds 0.60. A random sample of 120 Marriott customers found that 78
have two Wi-Fi devices. Marriott International would like to set α = 0.01. The correct
hypothesis statement for this hypothesis test would be
___________________________.
A)
B)
C)
D)
A random sample of 16 roundtrip flights between Philadelphia and Dallas has an
average airfare of $422.10 with a sample standard deviation of $56.30. The
approximate standard error of the mean for this sample is ________.
A) $10.11
B) $14.08
C) $20.32
D) $24.19
CoStar would like to test if the vacancy rate for “warehouse” stores is more than 8%. A
random sample of 85 warehouse stores was selected and the number of vacant stores
was counted. Assume that the true population proportion of vacant warehouse stores is
0.125. Using α = 0.05, beta equals ________.
A) 0.3627
B) 0.4091
C) 0.5557
D) 0.7188
A car dealership performs a credit check on a potential customer. According to the
credit bureau, the customer’s credit score is 710. This is an example of ________ data.
A) nominal
B) ordinal
C) interval
D) ratio
A method of gathering data when individuals are paid to discuss their attitudes towards
products or services in a group setting controlled by a moderator is known as
____________.
A) direct observation
B) focus groups
C) experiments
D) surveys
________ are the number of different ways in which objects can be arranged in order.
A) Simple events
B) Permutations
C) Random variables
D) Combinations
The following table shows the percentage of e-mails that are sent each day of the
business week according to an Intermedia survey.
Which of the following best displays this data?
A) horizontal bar chart
B) vertical bar chart
C) pie chart
D) histogram
Use the following information to answer the question(s) below.
The National Football League has developed a regression model to predict the number
of wins during a season for a team using the following independent variables:
•Average points per game during the season (PPG)
•Average number of penalties committed per game during the season (PEN)
•Turnover differential during the season (TO)
Turnover differential is defined as the number of times the team took the ball away from
their opponent with a turnover minus the number of times the team gave the ball away to
their opponent with a turnover. For example, if TO = +5, the team had five more
takeaways than giveaways. If TO = “7, the team had seven more giveaways than
takeaways during the season.
The following Excel output shows the partially completed regression output from a
random season.
Which of the following groups of independent variables is significant in this model using
α = 0.05?
A) PEN, PPG, TO
B) PEN, PPG
C) PPG, TO
D) PEN, TO
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.
If the variance inflation factor exceeds ________, enough correlation exists between the
independent variables to claim that multicollinearity is present in the regression model.
A) 3.0
B) 5.0
C) 6.0
D) 10.0
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. The critical value for
this hypothesis test would be ________.
A) 1.282
B) 1.771
C) 2.080
D) 2.977
________ are the future conditions that will occur regardless of any decisions made in
the field of decision analysis.
A) States of nature
B) Alternatives
C) Outcomes
D) Payoffs
In Delaware, cars are inspected each year using state-operated inspection centers. The
Wilmington center has three drive-through lanes where cars are inspected in a sequence
of steps and would like to test to determine if a difference exists in the median wait time
between lanes. The following data show the number of minutes that a random sample of
drivers spent waiting and having their cars inspected in the three lanes each day of the
week.
The critical value for this hypothesis test using α = 0.05 is ________.
A) 2.706
B) 3.841
C) 4.605
D) 5.991
The ratio measurement level is considered qualitative data.
Use the information below to answer the following question(s).
Steve Taylor is the owner of Home Plus, which is a chain of home improvement stores.
He would like to investigate the relationship between month advertising and monthly
sales. The table below shows the amount spent on advertising, in millions of dollars,
over several months along with the corresponding sales, also in millions of dollars.
Use the Home Plus data to:
A) Calculate the standard error of the slope.
B) Test the significance of the regression slope using α = 0.05.
Entertainment Software Association would like to test if the average age of “gamers”
(those that routinely play video games) is more than 30 years old. A Type II error would
occur if Entertainment Software Association concludes that the average age of gamers
is
__________________________.
A) 30 years or less when, in reality, the average age is more than 30 years
B) greater than 30 years when, in reality, the average age is 30 years or less
C) is not equal to 30 years when, in reality, the average age is equal to 30 years
D) is equal to 30 years when, in reality, the average age is not equal to 30 years
An office building has four copier machines that require the administrative assistant to
replenish the paper supply when the paper bin is empty. It is believed that the need for
paper for a copier on any given day follows the binomial distribution with p = 0.50. The
following data represent the number of days that 0, 1, 2, 3, or 4 copiers needed paper
replenished from a random sample of 100 business days.
The test statistic for this sample is ________.
A) 3.107
B) 3.963
C) 11.587
D) 13.242
________ provide a format to display observations that have more than one value
associated with them.
A) Histograms
B) Contingency tables
C) Frequency distributions
D) Pie charts
Consider the partially completed randomized block ANOVA summary table.
Using α = 0.05, the conclusion for this ANOVA procedure would be that because the
main factor test statistic is
________________________________________________________________.
A) more than the critical value, we cannot reject the null hypothesis and conclude that
there is a difference in population means
B) less than the critical value, we can reject the null hypothesis and conclude that there
is no difference in population means
C) less than the critical value, we cannot reject the null hypothesis and conclude that
there is a difference in population means
D) more than the critical value, we can reject the null hypothesis and conclude that
there is a difference in population means
Primary data is data collected by the person or organization that eventually uses the
data.
The National Center for Education Statistics would like to test the hypothesis that the
proportion of Bachelor’s degrees that were earned by women equals 0.60. A random
sample of 140 college graduates with Bachelor degrees found that 75 were women. The
National Center for Education Statistics would like to set α = 0.10. The p-value for this
hypothesis test would be ________.
A) 0.0174
B) 0.0380
C) 0.1008
D) 0.1212
According to LIMRA, 77% of husband-wife families with kids under 18 years old have
life insurance. A random sample of six husband-wife families was selected. What is the
standard deviation of this distribution?
A) 1.031
B) 1.758
C) 2.029
D) 2.607