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 coefficient of determination for this
sample is ________.
A) 0.336
B) 0.624
C) 0.830
D) 0.881
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 95% confidence interval for the regression coefficient for the PPG variable is
________.
A) (“0.398, 1.102)
B) (“0.118, 0.822)
C) (0.098, 0.606)
D) (0.167, 0.537)
Medicare would like to test the hypothesis that the average monthly rate for
one-bedroom assisted-living facility is equal to $3,300. A random sample of 12
assisted-living facilities had an average rate of $3,690 per month. The standard
deviation for this sample was $530. Medicare would like to set α = 0.05. The
conclusion for this hypothesis test would be that because the absolute value of the test
statistic is _________________________________________.
A) more than the absolute value of the critical value, we can conclude that the average
monthly rate for an assisted-living facility is not equal to $3,300
B) less than the absolute value of the critical value, we can conclude that the average
monthly rate for an assisted-living facility is not equal to $3,300
C) more than the absolute value of the critical value, we cannot conclude that the
average monthly rate for an assisted-living facility is not equal to $3,300
D) less than the absolute value of the critical value, we cannot conclude that the average
monthly rate for an assisted-living facility is not equal to $3,300
YouTube would like to test the hypothesis that the average length of an online video
watched by a user is more than 8 minutes. A random sample of 37 people watched
online videos that averaged 8.7 minutes in length. It is believed that the population
standard deviation for the length of online videos is 2.5 minutes. YouTube would like to
set α = 0.02. The p-value for this hypothesis test would be ________.
A) 0.0719
B) 0.0446
C) 0.0245
D) 0.0150
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 test statistic for testing the significance of the PEN variable is ________.
A) “0.85
B) “1.36
C) 4.25
D) 4.88
___________ data has all the properties of ordinal data with the added feature that
allows us to measure the differences between the categories with actual numbers in a
meaningful way.
A) Nominal
B) Ordinal
C) Interval
D) Ratio
Suppose Apple would like to test the hypothesis that the standard deviation for the web
browsing battery life of the iPad equals 3.0 hours. The following data represents the
battery life, in hours, experienced by a random sample of six users.
The test statistic for this hypothesis test would be ________.
A) 5.11
B) 5.67
C) 6.32
D) 6.81
________ data are values collected from a number of subjects (firms, individual, states,
regions, and so forth) during a single time period.
A) Cross-sectional
B) Ordinal
C) Time series
D) Ratio
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. The
p-value for this hypothesis test would be between ________.
A) 0.01 and 0.025
B) 0.025 and 0.05
C) 0.05 and 0.10
D) 0.10 and 0.20
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.
Which group of independent variables is significant in this model using α = 0.05?
A) Exp, Salary, ED1, ED2
B) Salary, ED1, ED2
C) Exp, ED1, ED2
D) Exp, Salary, ED1
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 one of the following statements is true concerning the 95% confidence interval for
the regression coefficient for the TO variable?
A) Because the confidence interval includes zero, we have evidence to conclude that there
is a relationship between the turnover differential per season and the average number of
wins per season for a team.
B) Because the confidence interval includes zero, we have evidence to conclude that there
is no relationship between the turnover differential per season and the average number of
wins per season for a team.
C) Because the confidence interval does not include zero, we have evidence to conclude
that there is a relationship between the turnover differential per season and the average
number of wins per season for a team.
D) Because the confidence interval does not include zero, we have evidence to conclude
that there is no relationship between the turnover differential per season and the average
number of wins per season for a team.
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% confidence interval for the average selling price of houses that are 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)
A property of ________ data is that the differences between categories are not
meaningful and, therefore, cannot be measured.
A) cross-sectional
B) ordinal
C) interval
D) ratio
Taylor’s Mill is a neighborhood comprised of 185 homes. According to the website
Zillow, the average market value of the homes in this neighborhood is $418, 300 with a
standard deviation of $36,500. What is the standard error for a random sample of 32
homes from this neighborhood?
A) $4,153.87
B) $5,883.76
C) $6,452.35
D) $7,510.35
According to the Insurance Research Council, 14% of U.S. drivers are uninsured. A
random sample of seven drivers was selected. What is the probability that less than two
of these drivers are uninsured?
A) 0.6820
B) 0.7444
C) 0.8226
D) 0.8837
Sarah is the office manager for a group of financial advisors who provide financial
services for individual clients. She would like to investigate whether a relationship
exists between the number of presentations made to prospective clients in a month and
the number of new clients per month. The following table shows the number of
presentations and corresponding new clients for a random sample of six employees.
Sarah would like to use simple regression analysis to estimate the number of new
clients per month based on the number of presentations made by the employee per
month. The total sum of squares for this sample is ________.
A) 5.33
B) 8.745
C) 15.33
D) 19.60
A statistics professor has 115 students in a statistics class and would like to estimate the
number of hours each student studied for the last exam. A random sample of 41 students
was found to study an average of 7.3 hours with a standard deviation of 1.9 hours. The
98% confidence interval to estimate the average number of hours studying for the exam
is ________.
A) (5.18, 9.42)
B) (5.82, 8.79)
C) (6.11, 8.49)
D) (6.72, 7.88)
A local grocery store receives strawberries from suppliers in Florida and California.
Currently there are 18 strawberry containers on the shelf and 11 of them are from
Florida. A shopper selects three containers to purchase. What is the standard deviation
of this distribution?
Breyers is a major producer of ice cream and would like to test the hypothesis that the
average American consumes more than 17 ounces if ice cream per month. A random
sample of 15 Americans was found to consume an average of 18.2 ounces of ice cream
last month. The standard deviation for this sample was 3.9 ounces. Breyers would like
to set α = 0.10. The conclusion for this hypothesis test would be that because the test
statistic is ________________.
A) more than the critical value, we can conclude that the average amount of ice cream
consumed per month is not greater than 17 ounces
B) more than the critical value, we can conclude that the average amount of ice cream
consumed per month is greater than 17 ounces
C) less than the critical value, we can conclude that the average amount of ice cream
consumed per month is greater than 17 ounces
D) less than the critical value, we cannot conclude that the average amount of ice cream
consumed per month is greater than 17 ounces
Sony would like to test the hypothesis that the median age of a PlayStation user is
different from the median age of an Xbox user. The following table shows the ages of a
random sample of PlayStation and Xbox users.
The lower and upper critical values for this hypothesis test using are
________.
A) 52, 84
B) 49, 87
C) 57, 95
D) 54, 98
The process of recording information from the entire population is known as
______________.
A) collecting a sample
B) resampling
C) a bootstrap
D) a census
The following graph shows the average grade point average for a particular college
from 2006 until 2013.
Which one of the following statements is correct?
A) Average GPA is the dependent variable in the graph.
B) Year is the dependent variable in the graph.
C) Historically, the Average GPA of the college tends to decrease.
D) There appears to be no relationship between Year and Average GPA.
A beach community on a barrier island has three real estate companies that list rental
properties by location which are classified as ocean-front, beach-block, or mid-island.
The following contingency table shows the number of properties listed by each
company along with their location.
The expected number of listings for Kerr that are a mid-island location is ________.
A) 5.7
B) 8.4
C) 15.9
D) 21.2
According to the IRS, 1.1% of tax returns will be audited next year. A random sample
of 40 tax returns was selected. Use the Poisson distribution to approximate the binomial
distribution to determine the probability that two or three of these tax returns will be
audited.
A) 0.0714
B) 0.1855
C) 0.2540
D) 0.3457
Medicare would like to test the hypothesis that the average monthly rate for
one-bedroom assisted-living facility is equal to $3,300. A random sample of 12
assisted-living facilities had an average rate of $3,690 per month. The standard
deviation for this sample was $530. Medicare would like to set α = 0.05. The correct
hypothesis statement for this hypothesis test would
be______________________________.
A)
B)
C)
D)
Assume that the amount of time that it takes an employee to service a car at an oil
change facility follows the uniform probability distribution between 21 and 38 minutes.
What is the probability that a randomly selected car will require between 25 and 35
minutes to service?
A) 0.3216
B) 0.4133
C) 0.5882
D) 0.6425
Which of the following is not a characteristic of a Poisson experiment?
A) The experiment consists of counting the number of occurrences of an event over a
period of time, area, distance, or any other type of measurement.
B) The mean of the Poisson distribution has to be the same for each interval of
measurement
C) The number of occurrences during one interval has to be dependent of the number of
occurrences in any other interval.
D) The intervals that are defined in the Poisson process cannot be overlapping.
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 more than 225 minutes?
A) 0.195
B) 0.361
C) 0.625
D) 0.700
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
fewer than 55,000 people?
A) 0.9222
B) 0.7788
C) 0.6523
D) 0.5610
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 sum of squares error for this regression model is ________.
A) 12,236,421,969.1
B) 14,263,134,094.3
C) 36,709,265,906.7
D) 50,972,400,000.0