A standard deviation of the error of the regression model is called the _______.
a) coefficient of determination
b) sum of squares of error
c) standard error of the estimate
d) R-squared
e) coefficient of correlation
According to Garvin, transcendent quality implies that a product __________.
a) conforms to design and engineering specifications
b) has an innate excellence
c) has no measurable attributes
d) is fit for the consumer’s intended use
e) has measurable attributes
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 critical F value is _________.
a) 5.33
b) 6.21
c) 0.16
d) 5.29
e) 6.89
. Jake Flanaghan, Vice President for inpatient pharmacy, at Great Atlantic Medical
Center, is designing a c chart to monitor the number of inpatient medication errors that
occur each month. The total number of medication errors for January ” December last
year was 37. The lower control limit for Jake’s c chart is ___________.
a) 3.08
b) 37
c) 8.35
d) -2.18
e) 0.00
For the following ANOVA table, the MS Error value is ___________.
a) 4,320
b) 372
c) 348
d) 30
e) 4
The equation of the trend line for the data based on sales (in $1000) of a local restaurant
over the years 2005-2010 is Sales= -265575+132.571 year. Using the trend line, the
forecast sales for the year 2012 is ________
a) $1157.85
b) $1157850
c) $132571
d) $2673304
e) $1000327
Consider the following decision table with rewards in $ millions.
The opportunity loss for the combination “S3” and “d1” is ________.
a) 9
b) 5
c) 3
d) 0
e) -1
A small restaurant owner believes no more than 36 % of his customers travel over 10
miles to his business. He is interested in expanding his customer base through
marketing. However, he would like to test his hypothesis prior to investing money in a
marketing initiative. He intends to use the following null and alternative hypotheses.
Ho: p 0.36
Ha: p> 0.36
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
A study is going to be conducted in which a mean of a lifetime of batteries produced by
a certain method will be estimated using a 90% confidence interval. The estimate needs
to be within +/- 2 hours of the actual population mean. The population standard
deviation is estimated to be around 25. The necessary sample size should be at least
_______.
a) 100
b) 21
c) 923
d) 35
e) 423
Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the
Harrison Haulers Plant during the last operating year. A review of all personnel records
indicated that absences ranged from zero to twenty-nine days per employee. The
following class intervals were proposed for a frequency distribution of absences.
Which of the following represents a problem with this set of intervals?
a) There are too few intervals.
b) Some numbers between 0 and 29, inclusively, would not fall into any interval.
c) The first and second interval overlaps.
d) There are too many intervals.
e) The second and the third interval overlap.
A carload of steel rods has arrived at Cybermatic Construction Company. The car
contains 50,000 rods. Claude Ong, manager of Quality Assurance, directs his crew
measure the lengths of 100 randomly selected rods. If the population of rods has a mean
length of 120 inches and a standard deviation of 0.05 inch, the probability that Claude’s
sample has a mean greater than 120.0125 inches is _____________.
a) 0.0124
b) 0.0062
c) 0.4938
d) 0.9752
e) 1.0000
Given n = 12, s2 = 44.90, and that the population is normally distributed, the 99%
confidence interval for the population variance is ________.
a) 19.0391 175.2888
b) 23.0881 122.3495
c) 25.6253 103.0993
d) 18.4588 189.7279
e) 14.2929 139.2989
A market research firm is investigating the appeal of three package designs. The table
below gives information obtained through a sample of 200 consumers. The three
package designs are labeled A, B, and C. The consumers are classified according to age
and package design preference.
If one of these consumers is randomly selected, what is the probability that the person
prefers design A and is under 25?
a) 0.22
b) 0.11
c) 0.18
d) 0.54
e) 0.78
Jim Royo, manager of Billings Building Supply (BBS), wants to develop a model to
forecast BBS’s monthly sales (in $1,000’s). He selects the dollar value of residential
building permits (in $10,000) as the predictor variable. An analysis of the data yielded
the following tables.
Jim’s calculated value for the Durbin-Watson statistic is 1.93. Using
= 0.05, the
appropriate decision is: _________.
a) do not reject H0:
= 0
b) reject H0:
≠0
c) do not reject:
0
d) the test is inconclusive
e) reject H0:
= 0
Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in
the payroll system. If 10% of the 5,000 payroll vouchers issued since January 1, 2000,
have irregularities, the probability that Pinky’s random sample of 200 vouchers will
have a sample proportion of between .06 and .14 is ___________.
a) 0.4706
b) 0.9706
c) 0.0588
d) 0.9412
e) 0.8765
The following scatter plot indicates that _________.
a) a log x transform may be useful
b) a log y transform may be useful
c) an x2transform may be useful
d) no transform is needed
e) a (“ x) transform may be useful
Ray Crofford is evaluating investment alternatives for the $100,000 which he inherited
from his grandfather. His investment advisor has identified four alternatives and
constructed the following table which shows expected profits (in $10,000’s) for various
market conditions and their probabilities.
The expected monetary payoff with perfect information is ________.
a) $128,000
b) $137,000
c) $144,000
d) $151,000
e) $127,000
According to Garvin, product quality is ____________________.
a) value perceived by the customer
b) an innate excellence of the product
c) not measurable in the product
d) fitness for the consumer’s intended use
e) measurable in the product
A multiple regression analysis produced the following tables.
For x1= 40 and x2= 90, the predicted value of y is ____________.
a) 753.77
b) 1,173.00
c) 1,355.26
d) 3,719.39
e) 1,565.75
A marketing survey is conducted to ascertain the potentiality of several new products. A
series of focus groups is used to conduct this survey. At the end of one of the sessions,
the group members are asked to rank the remaining eight products in order of
desirability. A one indicates the most favored product and an eight is awarded to the
least desirable. These numbers are examples of which level of data?
a) Interval level
b) Ordinal level
c) Nominal level
d) Ratio level
e) Relative level
Which of the following statements is not true regarding probabilities:
a. probability is the basis for inferential statistics
b. probabilities are subjective measures with limited value in business.
c. probabilities are used to determine the likelihood of certain outcomes
d. probabilities can inform many business decisions.
The forecast value for September 21.1 and the actual value turned out to be 18. Using
exponential smoothing with
= 0.30, the forecast value for October would be ______.
a) 18.09
b) 18.93
c) 20.17
d) 21.00
e) 17.07
The local swim team is considering offering a new semi-private class aimed at
entry-level swimmers, but needs a minimum number of swimmers to sign up in order to
be cost effective. Last year’s data showed that during 8 swim sessions the average
number of entry-level swimmers attending was 15. Suppose the instructor wants to
conduct a hypothesis test and the alternative hypothesis is “the population mean is
greater than 15″If the sample size is 5, sis known, and alpha = .01, the critical value of
zis _______.
a) 2.575
b) -2.575
c) 2.33
d) -2.33
e) 2.45
The ages of students in a class have been put into the frequency distribution below.
What is the average age of these students?
a) 19.50
b) 19.83
c) 20.00
d) 22.00
e) 23.00
A study is going to be conducted in which a population mean will be estimated using a
92% confidence interval. The estimate needs to be within 12 of the actual population
mean. The population variance is estimated to be around 2500. The necessary sample
size should be at least _______.
a) 15
b) 47
c) 54
d) 638
e) 700
You are conducting a study on the blood glucose levels of 9 patients who are on strict
diets and exercise routines. To monitor the mean and range of the blood glucose levels
of your patients, you take a blood glucose reading every day for each patient for 20
days. The results are shown below.
The upper control limit for your chart is ________.
a) 112.70
b) 116.18
c) 130.32
d) 145
e) 121.3
A gasoline distributor wonders whether an individual’s income level influences the
grade of gasoline purchased. The following is a contingency table from a random
sample of 300 individuals.
Using
= .05, observed chi-square value is ______________.
a) 15.79
b) 4.44
c) 32.89
d) 51.79
e) 5.79
An chart is being developed using 15 samples of size 9 each. The average
of 15 sample means is 6.20. The average of the 15 ranges is 0.30. The upper control
limit is _______________.
a) 6.301
b) 6.267
c) 6.133
d) 6.099
e) 6.312
A student randomly guesses the answers to a five question true/false test. If there is a
50% chance of guessing correctly on each question, what is the probability that the
student misses no questions?
a) 0.000
b) 0.200
c) 0.500
d) 0.031
e) 1.000
A quality manager is developing a regression model to predict the total number of
defects as a function of the day of week the item is produced. Production runs are done
10 hours a day, 7 days a week. The explanatory variable is ______.
a) day of week
b) production run
c) percentage of defects
d) number of defects
e) number of production runs
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 parent group was concerned with the increasing school cost for families with
school aged children. The parent group was interested in understanding the relationship
between the academic grade level for the child and the total costs spent per child per
academic year. They performed a multiple regression analysis using total cost as the
dependent variable and academic year (x1) as the independent variables. The multiple
regression analysis produced the following tables.
The sample size for this analysis is ____________.
a) 27
b) 29
c) 30
d) 25
e) 28
Data from a completely randomized design are shown in the following table.
For a one-way ANOVA using
= 0.05, the appropriate decision is ________.
a) do not reject the null hypothesis
1
2
3
b) do not reject the null hypothesis
1
2
3
c) reject the null hypothesis
d) reject the null hypothesis
1
2
3
e) do not reject the null hypothesis
1
2
3