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 appropriate nonparametric procedure for this analysis is the _________________
test.
A) Wilcoxon signed-rank
B) Kruskal-Wallis
C) Wilcoxon rank-sum
D) sign
The average battery life of the iPhone is reported to be 7.0 hours. Assume that the
standard deviation for the battery life for this cell phone is 45 minutes. A random
sample of 38 iPhones had an average battery life of 6.5 hours. Which of the following
statements is correct?
A) The interval that contains 95% of the sample means is 6.76 and 7.24 hours. Because
the sample mean is not between these two values, we do not have support that the
average battery life equals 7.0 hours.
B) The interval that contains 95% of the sample means is 5.50 and 8.50 hours. Because
the sample mean is between these two values, we do not have support that the average
battery life equals 7.0 hours.
C) The interval that contains 95% of the sample means is 5.50 and 8.50 hours. Because
the sample mean is between these two values, we have support that the average battery
life equals 7.0 hours.
D) The interval that contains 95% of the sample means is 6.76 and 7.24 hours. Because
the sample mean is not between these two values, we have support that the average
battery life equals 7.0 hours.
Use the following information to answer the question(s) below.
The National Basketball Association (NBA) would like to develop a multiple regression
model that would predict the number of wins for a team during the season. The
following independent variables were considered for the model: field goal percentage
(FG%), three-point percentage (3PT%), free throw percentage (FT%), turnovers per
game (TO), rebounds per game (REB), assists per game (ASSISTS), and steals per
game (STEALS). The following table shows the results of a general stepwise regression
procedure with “p-value to enter” and “p-value to remove” set to 0.05.
The reason that none of the remaining independent variables were included in the
model is that
________________________________________________________________.
A) general stepwise regression is limited to three independent variables in the final
model
B) multicollinearity would be present in the model if any of these remaining variables
were included
C) the regression coefficients for any of the remaining independent variables would
have a p-value less than 0.05
D) the regression coefficients for any of the remaining independent variables would
have a p-value greater than 0.05
Chris is employed by Silver Lake Resort in Orlando, Florida, and sells timeshares. The
following table shows the number of timeshare sales for Chris for each quarter over the
past three years.
The mean absolute deviation for forecasting timeshares sales using multiplicative
decomposition is ________.
A) 0.58
B) 1.36
C) 1.97
D) 3.07
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 test statistic for this
hypothesis test would be ________.
A) .
B) .
C) .
D) .
The law of large numbers states that when an experiment is conducted a large number
of times, the ________ probabilities of the process will converge to the ________
probabilities.
A) empirical, classical
B) classical, subjective
C) subjective, classical
D) empirical, subjective
Many franchisers favor owners who operate multiple stores by providing them with
preferential treatment. Suppose the Small Business Administration would like to
perform a hypothesis test to investigate if 80% of franchisees own only one location
using α = 0.05. A random sample of 120 franchisees found that 85 owned only one
store. The test statistic for this hypothesis test would be ________.
A)
B)
C)
D)
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 critical
value for this hypothesis test would be ________.
A) 1.282
B) 1.729
C) 2.080
D) 2.977
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.
Using α = 0.10, the conclusion for this hypothesis test would be that because the test
statistic is
______________________________________________________________________
__.
A) more than the critical value, we cannot reject the null hypothesis and conclude that
the probability distribution follows the binomial distribution with p = 0.50 and n = 4
B) less than the critical value, we can reject the null hypothesis and conclude that the
probability distribution follows the binomial distribution with p = 0.50 and n = 4
C) more than the critical value, we can reject the null hypothesis and conclude that the
probability distribution does not follow the binomial distribution with p = 0.50 and n =
4
D) less than the critical value, we cannot reject the null hypothesis and cannot conclude
that the probability distribution does not follow the binomial distribution with p = 0.50
and n = 4
In ________ sampling, every kth member of the population is chosen for the sample.
A) systematic
B) cluster
C) probability
D) nonprobability
Suppose the Department of Labor reported that there was a 50% probability that the
unemployment rate would drop below 8% by the end of the calendar year. This is an
example of using ________ probability.
A) subjective
B) simple
C) empirical
D) classical
Use the information below to answer the following question(s).
Some research has indicated that as people age they need less sleep. A random sample
of adults was selected and the number of hours that they slept last night was recorded.
Simple regression analysis was performed on this sample and the results are shown
below.
The size of the sample is ________.
A) 21
B) 22
C) 23
D) 24
A random sample of computer users were asked which browser they primarily relied on
for surfing the Internet and whether this browser was installed on a desktop or laptop
computer. The following contingency table shows these results.
Given that the randomly selected computer used the Chrome browser, the probability
that the computer was a laptop is ________.
A) 0.433
B) 0.557
C) 0.640
D) 0.762
Consider the following data set:
Variable 1: 20 15 14 10 5 5 8 3
Variable 2: 2 9 5 3 8 10 17 10
The sample correlation coefficient for this data set is _______.
A) “0.80
B) “0.55
C) 0.18
D) 0.47
In general, a four-period simple moving average forecast will experience less
forecasting error than a three-period moving simple average forecast because the
four-period technique uses more historical data.
Suppose Bank of America (B of A) would like to investigate if credit score and income
level of an individual are independent of one another. B of A selected a random sample
of 400 adults and asked them to report their credit score range and their income range.
The following contingency table presents these results.
The degrees of freedom for the critical value is ________.
A) 3
B) 4
C) 5
D) 6
Ten percent of customers who walk into a golf store purchase a golf club and 30% of
customers purchase golf balls. Six percent of customers purchase both clubs and balls.
The percentage of customers who do not purchase clubs or balls is ________.
A) 0.24
B) 0.35
C) 0.41
D) 0.66
The critical value for a one-tail hypothesis test when the population standard deviation
is known, the sample size is 30 or more, and α = 0.01 is ________.
A) 2.05
B) 2.33
C) 2.575
D) 2.96
________ probability represents the likelihood of a single event occurring by itself.
A) Classical
B) Simple
C) Empirical
D) Subjective
The following data represents the number of days that 10 homes were on the market
before being sold.
The 70th percentile of this data set is ________.
A) 95
B) 102
C) 109
D) 113
The mathematical operation of addition can be performed on nominal data.
The p-value for a hypothesis test is defined as the probability of observing a
___________________________________________________.
A) critical value at least as extreme as the one selected for the hypothesis test, assuming
the null hypothesis is true
B) critical value at least as extreme as the one selected for the hypothesis test, assuming
the null hypothesis is false
C) sample mean at least as extreme as the one selected for the hypothesis test, assuming
the null hypothesis is true
D) population mean at least as extreme as the one selected for the hypothesis test,
assuming the alternative hypothesis is true
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, and using α = 0.05, the critical value for this hypothesis test
would be ________.
A) 2.998
B) 1.771
C) 2.365
D) 1.943
If a household has at least one cat, there is a 30% probability that the household has at
least one dog. Thirty percent of households have at least one cat and 33% of households
have at least one dog. Given that a household does not have at least one dog, the
probability that the same household does not have at least one cat is ________.
A) 0.37
B) 0.54
C) 0.61
D) 0.69
Debbie is a buyer for a retail chain and needs to decide what order quantity to place for
women’s coats for the upcoming winter season. Below is a payoff table, in thousands of
dollars, for various order quantities (1 = lowest, 4 = highest) and demand levels for the
winter coats. Also shown in the table are the probabilities that Debbie has estimated for
each demand level.
The expected monetary value (EMV), in thousands of dollars, for Order Quantity 4 is
_______.
A) $138.00
B) $167.50
C) $288.00
D) $322.60
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 monetary value, in thousands of dollars, for a large production quantity if
Hats-R-Us chooses not to conduct a market survey is _________.
A) $190.1
B) $205.3
C) $240.0
D) $310.5
Sheridan Motors is a car dealership that would like to investigate if there is a difference
in the average number of car sales per month between three sales employees using a
randomized block ANOVA. The following data represent the number of car sales last
year for these employees for six different months.
The critical value for the Tukey-Kramer critical range using α = 0.05 is ________.
A) 3.15
B) 3.88
C) 3.95
D) 4.04
The ___________ criterion is the most optimistic method as well as the one with the
highest level of risk.
A) Hurwicz
B) equally likely
C) maximin
D) maximax
Dr. Jordan operates a dental practice with 315 patients and she would like to estimate
the proportion of her patients that have dental insurance from their employers. A
random sample of 75 patients found that 30 had insurance coverage. The 90%
confidence interval to estimate the proportion of patients with dental insurance is
________.
A) (0.252, 0.548)
B) (0.276, 0.524)
C) (0.202, 0.598)
D) (0.319, 0.481)
Sheridan Motors is a car dealership that would like to investigate if there is a difference
in the average number of car sales per month between three sales employees using a
randomized block ANOVA. The following data represent the number of car sales last
year for these employees for six
The Tukey-Kramer critical range using α = 0.05 is ________.
A) 2.40
B) 6.00
C) 7.05
D) 7.60