Equipment failure would be an example of ____________ variation.
A. chance
B. external
C. assignable
D. standard
The result of a particular experiment is called a(n) ___________.
A. Observation
B. Conditional probability
C. Event
D. Outcome
A study of a company’s practice regarding the payment of invoices revealed that an
invoice was paid an average of 20 days after it was received. The standard deviation
equaled five days. Assuming that the distribution is normal, what percent of the
invoices were paid within 15 days of receipt?
A. 15.87%
B. 37.91%
C. 34.13%
D. 86.74%
For the third quarter, the sales are 2,500 units; the seasonal index for the quarter is 0.95.
What are the deseasonalized sales for the quarter?
A. 1,600
B. 2,632
C. 2,080
D. 2,500
The following graph is a ___________.
A. Dot plot
B. Stem-and-leaf display
C. Box plot
D. Scatter plot
If the average age was $7.67 per hour in 1998 and $14.90 per hour last month, what is
the index of hourly wages for last month based on the 1998 information?
A. 100.0
B. 186.9
C. 151.5
D. 194.3
The probability of a Type II error is represented by ________.
A. α
B. β
C. the Type I error
D. σ
Which of the following assumptions is necessary to apply a goodness-of-fit test?
A. The population must be normally distributed.
B. The data are measured with a nominal or ordinal scale.
C. The population variance must be known.
D. The population mean must be known.
If a company reports that its quarterly earnings will be between $100 million and $125
million, the range is an example of _________ variation.
A. chance
B. external
C. assignable
D. controlled
A normally distributed random variable has _________.
A. Any value between -∞ and + ∞.
B. Discrete values.
C. Any value between specified minimum and maximum values.
D. Only two values, success and failure.
A weighted price index that uses current-period quantities as weights is known as
______________.
A. Fisher’s ideal index
B. Laspeyres index
C. Paasche’s index
D. the value index
The average cost of tuition plus room and board at a small private liberal arts college is
reported to be $8,500 per term, but a financial administrator believes that the average
cost is higher. A study conducted using 350 small liberal arts colleges showed that the
average cost per term is $8,745. The population standard deviation is $1,200. Let α =
0.05. What is the test statistic for this test?
A. 3.82
B. +0.204
C. -3.82
D. +3.82
Refer to the following wage breakdown for a garment factory.
What are the class limits for the class with the smallest frequencies?
A. 3.5 and 6.5
B. 4 and up to 7
C. 13 and up to 16
D. 12.5 and 15.5
A large manufacturing firm tests job applicants. Test scores are normally distributed
with a mean of 500 and a standard deviation of 50. Management is considering placing
a new hire in an upper-level management position if the person scores in the upper sixth
percent of the distribution. What is the lowest score a new hire must earn to qualify for
a responsible position?
A. 50
B. 625
C. 460
D. 578
A group of 100 students was surveyed about their interest in a new International Studies
program. Interest was measured in terms of high, medium, or low. In the study, 30
students responded high interest, 40 students responded medium interest, and 30
students responded low interest. What is the relative frequency of students with high
interest?
A. .30
B. .50
C. .40
D. .030
Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown
next.
What is the value index?
A. 112.70
B. 179.08
C. 111.97
D. 109.36
In which of the following discrete distribution does the probability of a success vary
from one trial to the next?
A. Binomial
B. Poisson
C. Hypergeometric
D. All of these.
A question has these possible responses: excellent, very good, good, fair, and
unsatisfactory. What are the degrees of freedom for a goodness-of-fit test to test the
hypothesis that responses are uniformly distributed?
A. 0
B. 2
C. 4
D. 5
The national sales manager for “I colored this” (ICT) T-shirts provides all salespersons
with the following opportunity loss table showing the potential lost profit for each
purchase decision or act from one to four dozen T-shirts. The probability of demand for
each state of nature is also shown.
What is the expected opportunity loss of purchasing three dozen T-shirts?
A. 84
B. 108
C. 156
D. 204
According to Chebyshev’s theorem, at least what percent of the observations lie within
plus and minus 1.75 standard deviations of the mean?
A. 56%
B. 95%
C. 67%
D. 100%
Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are
shown next.
What is your interpretation of the Laspeyres price index?
A. Prices rose 98.4%.
B. Prices declined 1.6%.
C. Prices rose 7.0%.
D. Prices rose 8.0%.
When testing the hypothesized equality of two population means, the implied null
hypothesis is ____________.
A. H0: 1 = 0
B. H0: 1 – 2 = 0
C. H0: 2 = 0
D. H0: 1 – 2 ≠0
What is the range of values for the coefficient of determination?
A. -1 to +1 inclusive
B. -100% to +100% inclusive
C. -100% to 0% inclusive
D. 0% to 100% inclusive
A company is studying the number of daily debit card purchases. There were 20
purchases and the probability of a debit card purchase is 0.5. What is the standard
deviation of the number of debit card purchases?
In a positively skewed distribution, the 50th percentile is the same as the
______________.
The formula used to compute the standard deviation is ________.
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 the maximax criterion, what is the choice?
What is the difference between seasonal and cyclical variation in a time series?
A chart that shows the relationship between a continuous dependent variable and a
continuous independent variable is called a ____________.
________ causes of variation cannot be entirely eliminated.
In a study of protein breakfast bars, five bars from each of three brands were tested to
see if the mean amount of protein per bar differs among the brands. If the sum of
squares for the brands is 0.07, the mean square for brands is _____.
A new printing machine is set or calibrated to print 25 copies per minute. On each of
four days, the printer’s output is measured five times. The data will be used to construct
a process control chart to monitor the printing process. The results of the printing
process are in the following table.
What is the value of A2, the control limit factor for averages?