For the following ANOVA table, the dfTreatmentvalue is ___________.
a) 3
b) 43
c) 1.15
d) 460
e) 150
Performance records for 18 salespersons are selected to investigate whether
compensation methods are a significant motivational factor.
A Kruskal-Wallis test is to be performed with
= 0.01. The null hypothesis is _______.
a) Group 1 = Group 2 = Group 3
b) Group 1 Group 2 Group 3
c) Group 1 Group 2 Group 3
d) Group 1 Group 2 Group 3
e) Group 1 Group 2 ≥Group 3
One of the assumptions made in simple regression is that ______________.
a) the error terms are normally distributed
b) the error terms have unequal variances
c) the model is nonlinear
d) the error terms are dependent
e) the error terms are all equal
A large manufacturing company in Indianapolis produces valves for the chemical
industry.
According to specifications, one particular valve is supposed to have a five-inch
opening on the side. Quality control inspectors take random samples of these valves just
after the hole is bored.
They measure the size of the hole in an effort to determine if the machine is
out”of”adjustment.
The measurement of the diameter of the hole represents which level of data?
a) Interval level
b) Ordinal level
c) Nominal level
d) Central level
e) Ratio level
A variable contains five categories. It is expected that data are uniformly distributed
across these five categories. To test this, a sample of observed data is gathered on this
variable resulting in frequencies of 27, 30, 29, 21, and 24. Using
= .01, the appropriate
decision is _______.
a) reject the null hypothesis that the observed distribution is uniform
b) reject the null hypothesis that the observed distribution is not uniform
c) do not reject the null hypothesis that the observed distribution is uniform
d) do not reject the null hypothesis that the observed distribution is not uniform
e) do nothing
A weighted aggregate price index where the weight for each item is computed by using
the quantities of the base period is known as the
a.Paasche Index
b. Simple Index
c. Laspeyres Index
d. Consumer Price index
e. Producer Price index
The executives of CareFree Insurance, Inc. feel that “a majority of our employees
perceive a participatory management style at CareFree.” A random sample of 200
CareFree employees is selected to test this hypothesis at the 0.05 level of significance.
Eighty employees rate the management as participatory. The null hypothesis is
__________.
a) n= 30
b) n= 200
c) p= 0.50
d) p< 0.50
e) n> 200
A simple regression model developed for 12 pairs of data resulted in a sum of squares
of error, SSE = 246. The standard error of the estimate is _______.
a) 24.6
b) 4.96
c) 20.5
d) 4.53
e) 12.3
A multiple regression analysis produced the following tables.
The regression equation for this analysis is ____________.
a) y = 302689 + 1153309 x1+ 1455998 x2
b) y = -139.609 + 24.24619 x1+ 32.10171 x2
c) y = 2548.989 + 22.25267 x1+ 17.44559 x2
d) y = -0.05477 + 1.089586 x1+ 1.840105 x2
e) y = 0.05477 + 1.089586 x1+ 1.840105 x2
A person has decided to construct a frequency distribution for a set of data containing
60 numbers. The lowest number is 23 and the highest number is 68. If 7 classes are
used, the class width should be approximately _______.
a) 5
b) 7
c) 9
d) 11
e) 12
Abby Kratz, a market specialist at the market research firm of Saez, Sikes, and Spitz, is
analyzing household budget data collected by her firm. Abby’s dependent variable is
monthly household expenditures on groceries (in $’s), and her independent variable is
annual household income (in $1,000’s). Regression analysis of the data yielded the
following tables.
Abby’s sample size (n) is __________.
a) 8
b) 10
c) 11
d) 20
e) 12
Let zbe a normal random variable with mean 0 and standard deviation 1. What is P(z>
2.4)?
a) 0.4918
b) 0.9918
c) 0.0082
d) 0.4793
e) 0.0820
The staff of Mr. Wayne Wertz, VP of Operations at Portland Peoples Bank, prepared a
frequency histogram of waiting time for drive up ATM customers.
Approximately _____ drive up ATM customers waited less than 2 minutes.
a) 20
b) 30
c) 100
d) 180
e) 200
On Monday mornings, customers arrive at the coffee shop drive thru at the rate of 6
cars per fifteen-minute interval. Using the Poisson distribution, the probability that five
cars will arrive during the next fifteen-minute interval is _____________.
a) 0.1008
b) 0.0361
c) 0.1339
d) 0.1606
e) 0.5000
Inspection of the following table of correlation coefficients for variables in a multiple
regression analysis reveals that the first independent variable that will be entered into
the regression model by the forward selection procedure will be ___________.
a) x1
b) x2
c) x3
d) x4
e) x5
A local pediatrician office is interested in the “no-show” appointment count for each of
the 4 pediatricians. “No-show” appointments represent lost revenues because the
physician will be idle when patients do not show for their scheduled appointments.
Using the data in the table below and an alpha of .10, what is the appropriate decision?
a) Reject the null hypothesis and conclude at least one physician differs in the
no-show rates.
b) Reject the null hypothesis and conclude the no show rates differ by day of week
c) Fail to reject the null hypothesis and conclude there is not enough evidence to
demonstrate the no show rate between physician is equal
d) Fail to reject the null hypothesis and conclude there is not enough evidence to show
the no show rate between days of the week is equal
e) Reject the null hypothesis and conclude the no show rates are dependent upon both
day of week and physician.
Consider the following null and alternative hypotheses.
Ho:
67
Ha:
< 67
These hypotheses _______________.
a) indicate a one-tailed test with a rejection area in the right tail
b) indicate a one-tailed test with a rejection area in the left tail
c) indicate a two-tailed test
d) are established incorrectly
e) are not mutually exclusive
Sarah Soliz, Director of Quality Programs, is designing and R charts for the
rod shearing process at Stockton Steel. She has 26 samples of rod length, and each
sample included measurements of 5 rods. The mean of the 26 sample means is 112
inches, and mean of the 26 ranges is 0.15 inch. The centerline for her R chart is ____.
a) 0.15
b) 26
c) 5
d) 112
e) 15
The weight of a USB flash drive is 30 grams and is normally distributed. Periodically,
quality control inspectors at Dallas Flash Drives randomly select a sample of 17 USB
flash drives. If the mean weight of the USB flash drives is too heavy or too light the
machinery is shut down for adjustment; otherwise, the production process continues.
The last sample showed a mean and standard deviation of 31.9 and 1.8 grams,
respectively. . The null hypothesis is ______.
a) n 17
b) n= 17
c) = 30
d) 30
e) m≥34.9
Medical Wonders is a specialized interior design company focused on healing artwork.
The CEO, Kathleen Kelledy claims that artwork has healing effects for patients staying
in a hospital, as measured by reduced length of stay. Her current client is a children’s
cancer hospital. Kathleen is interested in determining the effect of three different pieces
of healing artwork on children. She chooses three paintings (a horse photo, a bright
abstract, and a muted beach scene) and randomly assigns six hospital rooms to each
painting. Kathleen’s null hypothesis is _____________.
a)
1
2
3
b)
1
2
3
c)
1
2
3
d)
1
2
3
e)
1
2≥
3
A chi-square goodness of fit test is to be performed to see if data fit the Poisson
distribution. There are 8 categories, and lambda must be estimated. How many degrees
of freedom should be used?
a) 8
b) 7
c) 6
d) 5
e) 4
Which of the following is not a legitimate probability value?
a) 0.87
b) 12/13
c) 0.05
d) 5/4
e) 0.93
Sami Schmitt believes that number of cars arriving at his Scrub and Shine Car Wash
follow a Poisson distribution. He collected a random sample and constructed the
following frequency distribution to test his hypothesis.
Using
= 0.05, the appropriate decision for this goodness-of-fit test is ____.
a) reject the null hypothesis that the observed distribution is Poisson
b) reject the null hypothesis that the observed distribution is not Poisson
c) do not reject the null hypothesis that the observed distribution is not Poisson
d) do not reject the null hypothesis that the observed distribution is Poisson
e) do nothing
Dan Hein owns the mineral and drilling rights to a 1,000 acre tract of land. If he drills a
well and does not strike oil his net loss will be $50,000, but if he drills a well and
strikes oil his net gain will be $100,000. If he does not drill, his loss is the cost of the
mineral and drilling rights, which amount to $1000. For Dan’s decision problem, the
variable “net loss of $50,000” is one of the ___________.
a) payoffs
b) decision alternatives
c) states of nature
d) revised probabilities
e) prior probabilities
Jennifer Cantu, VP of Customer Services at Tri-State Auto Insurance, Inc., monitors the
claims processing time of the claims division. Her standard includes “a mean processing
time of 5 days or less.” Each week, her staff checks for compliance by analyzing a
random sample of 60 claims. Jennifer’s null hypothesis is ________.
a) > 5
b) > 5
c) n= 60
d) < 5
e) =5
David Desreumaux, VP of Human Resources of American First Banks (AFB), is
reviewing the employee training programs of AFB banks. Based on a recent census of
personnel, David knows that the variance of teller training time in the Southeast region
is 8, and he wonders if the variance in the Southwest region is the same number. His
staff randomly selected personnel files for 15 tellers in the Southwest Region, and
determined that their mean training time was 25 hours and that the standard deviation
was 4 hours. Assume that teller training time is normally distributed. Using = 0.10, the
appropriate decision is ________.
a) increase the sample size
b) reduce the sample size
c) fail to reject the null hypothesis
d) maintain status quo
e) reject the null hypothesis
Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in
the payroll system, and orders an inspection of a random sample of vouchers issued
since January 1, 2006. A sample of ten vouchers is randomly selected, without
replacement, from the population of 2,000 vouchers. Each voucher in the sample is
examined for errors and the number of vouchers in the sample with errors is denoted by
x. If 20% of the population of vouchers contain errors, P(x = 0) is _______________.
a) 0.8171
b) 0.1074
c) 0.8926
d) 0.3020
e) 0.2000
It is known that screws produced by a certain company will be defective with
probability .01 independently of each other. The company sells the screws in packages
of 25 and offers a money-back guarantee that at most 1 of the 25 screws is defective.
Using Poisson approximation for binomial distribution, the probability that the
company must replace a package is approximately _________
a) 0.01
b) 0.1947
c) 0.7788
d) 0.0264
e) 0.2211
Let zbe a normal random variable with mean 0 and standard deviation 1. The
75thpercentile of zis ____________.
a) 0.6700
b) -1.254
c) 0.0000
d) 1.2800
e) 0.5000
Cindy Ho, VP of Finance at Discrete Components, Inc. (DCI), theorizes that the
discount level offered to credit customers affects the average collection period on credit
sales. Accordingly, she has designed an experiment to test her theory using four sales
discount rates (0%, 2%, 4%, and 6%) by randomly assigning five customers to each
sales discount rate. An analysis of Cindy’s data produced the following ANOVA table.
Using
= 0.01, the appropriate decision is _________.
a) reject the null hypothesis
b) reject the null hypothesis
1
2
3
4
c) do not reject the null hypothesis
d) do not reject the null hypothesis
1
2
3
4
5
e) do nothing
The motivation for using an index number is to ________________.
a) transform the data to a standard normal distribution
b) transform the data for a linear model
c) eliminate bias from the sample
d) reduce data to an easier-to-use, more convenient form
e) reduce the variance in the data
Alan Bissell, a market analyst for City Sound Online Mart, is analyzing sales from
heavy metal song downloads. Alan’s dependent variable is annual heavy metal song
download sales (in $1,000,000’s), and his independent variables are website visitors (in
1,000’s) and type of download format requested (0 = MP3, 1 = other). Regression
analysis of the data yielded the following tables.
For the same number of website visitors, what is difference between the predicted sales
for MP3 versus “other” heavy metal song downloads
a) $1,566,666 higher sales for “other” formats
b) the same sales for both formats
c) $1,566,666 lower sales for the “other” format
d) $1,700,000 higher sales for the MP3 format
e) $ 1,700,000 lower sales for the “other” format