The Department of Transportation would like to test the hypothesis that the average age
of cars on the road is less than 12 years. A random sample of 45 cars had an average age
of 10.6 years. It is believed that the population standard deviation for the age of cars is
4.1 years. The Department of Transportation would like to set α = 0.05. The p-value for
this hypothesis test would be ________.
A) 0.0110
B) 0.0322
C) 0.0788
D) 0.1042
According to comScore, Facebook users spent an average of 432 minutes on the site
during a recent month. Assume that this population has a standard deviation of 127
minutes. A random sample of 50 users was selected from this population. What is the
probability that the average number of minutes on the site in January was less than 410
minutes?
A) 0.0643
B) 0.1112
C) 0.2806
D) 0.3384
Use the information below to answer the following question(s).
A snack food producer is considering introducing a new product to the consumer
market. It can choose to build a new facility for production of the new product, use an
existing facility, or outsource the production to another company. The company
estimates that the probability of strong demand for this product to be 65% and the
probability of weak demand is estimated at 35%. The company also has the option to
hire a marketing research firm to conduct a study to provide additional information
about the demand that has the following track record:
•Historically, this research firm has predicted a strong demand when the eventual
demand was strong 80% of the time.
•Historically, this research firm has predicted a weak demand when the eventual
demand was weak 85% of the time.
The probability that the market survey will predict a strong demand is ________.
A) 0.5725
B) 0.5918
C) 0.6340
D) 0.6675
According to the MIT Airline Data Project, American Airlines controlled 15.5% of the
domestic market during a recent year. A random sample of 125 domestic passengers
that year was selected. Using the normal approximation to the binomial distribution,
what is the probability that 10 or fewer passengers from this sample were on American
Airline flights?
A) 0.0143
B) 0.0485
C) 0.2877
D) 0.4286
Suppose the round-trip airfare between Philadelphia and Los Angeles a month before
the departure date follows the normal probability distribution with a mean of $387.20
and a standard deviation of $68.50. What is the probability that a randomly selected
airfare between these two cities will be between $325 and $425?
A) 0.1548
B) 0.2650
C) 0.3875
D) 0.5274
Medicare would like to test the hypothesis that the standard deviation for the monthly
rate for a one-bedroom assisted-living facility is more than $400. A random sample of
17 assisted living facilities had a standard deviation of $530. The test statistic for this
hypothesis test would be ________.
A) 15.06
B) 19.72
C) 24.56
D) 28.09
The __________________ is the average of the payoffs associated with a particular
alternative weighted with the probabilities for each state of nature.
A) expected value of perfect information (EVPI)
B) expected value under risk (EVUR)
C) expected monetary value (EMV)
D) expected value under certainty (EVUC)
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.
Every additional year in the age of the house will
_________________________________.
A) increase the average selling price by $2,092
B) decrease the average selling price by $581
C) increase the average selling price by $102
D) decrease the average selling price by $109
The following data show the number of pairs of men’s New Balance sneakers that were
sold over the last 25 weeks at a discount shoe store.
Construct a histogram for this data.
During the 2013 Major League Baseball season, the St. Louis Cardinals averaged
41,602 fans per home game. Suppose attendance during the season follows the normal
probability distribution with a standard deviation of 9,440 per game. What is the
probability that a randomly selected game during the 2013 season had an attendance
greater than 50,000 people?
A) 0.0417
B) 0.1867
C) 0.3255
D) 0.3986
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.
Which one of the following statements is true concerning the 95% confidence interval
for the regression coefficient for the Age variable?
A) Because the confidence interval includes zero, we have evidence to conclude that
there is a relationship between the age of a house and the selling price of the house.
B) Because the confidence interval includes zero, we have evidence to conclude that
there is no relationship between the age of a house and the selling price of the house.
C) Because the confidence interval does not include zero, we have evidence to conclude
that there is a relationship between the age of a house and the selling price of the house.
D) Because the confidence interval does not include zero, we have evidence to
conclude that there is no relationship between the age of a house and the selling price of
the house.
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 95% prediction interval for the selling price of a specific house that is 10 years old,
2,400 square feet with four bedrooms is ___________.
A) ($384,090, $488,362)
B) ($402,649, $469,803)
C) ($321,628, $540,824)
D) ($350,152, $522,300)
Costco Wholesale claims that Costco members prefer its Kirkland brand toilet paper
over the leading national brand. To test this claim, Costco recorded the preferences of a
random sample of customers which are summarized in the table below.
The value of S for this hypothesis test is ________.
A) 20
B) 38
C) 58
D) 63
American Greetings would like to test the hypothesis that the median amount of money
spent per person on Mother’s Day increased this year when compared to last year. The
following data represents the amount of money that the same eight individuals spent on
Mother’s Day during the past two holidays.
The test statistic for this hypothesis test is ________.
A) 4.5
B) 11.0
C) 22.5
D) 26.0
The National Association of Realtors would like to test the hypothesis that 26% of
home buyers in the state of Florida are foreigners. A random sample of 110 home
buyers was selected and the number of foreigners was counted. Assume that the true
proportion of home buyers that are foreigners is 0.216. Using α = 0.10, beta equals
________.
A) 0.8615
B) 0.7222
C) 0.5012
D) 0.2273
________ data use descriptive terms to measure or classify something of interest.
A) Primary
B) Secondary
C) Quantitative
D) Qualitative
The ________ is the most commonly used measure of central tendency.
A) mean
B) median
C) mode
D) standard deviation
A computer system for an organization generates four-letter temporary passwords. The
total number of passwords that the system can generate is ________.
A) 14,950
B) 358,800
C) 456,976
D) none of the above
The following data represent the number of refrigerators sold for each of the past five
months for Templeton Appliances.
Using a two-period weighted moving average with weights 4 and 1, the sales forecast
for Month 6 is ________.
A) 25.0
B) 31.0
C) 36.7
D) 37.2
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.
The degrees of freedom for the sum of squares regression are ________.
A) 2
B) 3
C) 28
D) 31
The ________ measures how consistent the slope of the regression equation would be if
several sets of samples from the population were selected and the regression equation
were derived for each of them.
A) correlation coefficient
B) coefficient of determination
C) standard error of the slope
D) standard error of the estimate
Travelocity would like to test if the average roundtrip airfare between New York and
London is less than $1,400. A random sample of 30 flights between New York and
London was selected and the airfare was recorded. Assume that the standard deviation
for the population of airfares between these two cities is $230 and the true population
mean for airfare is $1,330. Using α = 0.10, beta equals ________.
A) 0.1655
B) 0.2483
C) 0.2730
D) 0.3483
The following graph is a cumulative percent polygon showing the battery life, in hours,
for a sample of iPad 2s and iPad 3s. The diamond markers represent the iPad 2 battery
life while the square markers represent the iPad 3 battery life. Based on this graph,
which of the following statements is true?
A) Approximately 20% of the iPad 2 batteries lasted more than 10 hours.
B) Approximately 20% of the iPad 2 batteries lasted less than 10 hours.
C) Approximately 60% of the iPad 3 batteries lasted more than 8 hours.
D) Approximately 80% of the iPad 3 batteries lasted less than 8 hours.
The ________ states that if there are k1 choices for the first event, choices
for the second event, . . ., and choices for the nth event, then the total
number of possible outcomes are
.
A) law of large numbers
B) fundamental counting principle
C) addition rule
D) empirical rule
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.
The Spearman rank-order correlation coefficient for this sample is ________.
A) “0.871
B) 0.508
C) “0.320
D) 0.733
The birth year of a person would be considered _________ data.
A) nominal
B) ordinal
C) interval
D) ratio
The Dean of the Business School at State University would like to test the hypothesis
that no difference exists between the average final exam grades for the Introduction to
Marketing course and the Introduction to Finance course. A random sample of eight
students who took both courses was selected and their final exam grades for each
course are shown below.
If Population 1 is defined as the Marketing exam scores and Population 2 is defined as
the Finance exam scores, the standard deviation of the matched-pair differences is
________.
A) 6.90
B) 8.54
C) 10.69
D) 14.25
The _______________________ provides us with an upper limit for how much we
should pay for additional information to improve our decision.
A) expected value of perfect information (EVPI)
B) expected value under risk (EVUR)
C) expected monetary value (EMV)
D) expected value under certainty (EVUC)
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
probability that five or more families have life insurance?
A) 0.3667
B) 0.4025
C) 0.5820
D) 0.6621
The following table represents the number of minutes that 20 airline passengers had to
wait in order to pass through security along with the frequency in each class.
What is the approximate standard deviation for the number of minutes that a passenger
waits to pass through security?
A) 9.63
B) 9.88
C) 10.65
D) 10.80
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, the degrees of freedom for this hypothesis test are
________.
A) 28
B) 32
C) 33
D) 34
AT&T would like to test the hypothesis that the proportion of 18- to 34-year-old
Americans that own a cell phone is less than the proportion of 35- to 49-year-old
Americans. A random sample of 200 18- to 34-year-old Americans found that 126
owned a smartphone. A random sample of 175 35- to 49-year-old Americans found that
119 owned a smartphone. If Population 1 is defined as 18- to 34-year-old Americans
and Population 2 is defined as 35- to 49-year-old Americans, the pooled estimate for the
overall proportion is ________.
A) 0.608
B) 0.627
C) 0.653
D) 0.680
The sum of squares ________ measures the amount of variation between each data
value and the grand mean.
A) within
B) between
C) total
D) error