The Canadian government would like to test the hypothesis that the average hourly
wage for men is more than $2.00 higher than the average hourly wage for women. The
following data summarizes the sample statistics for hourly wages for men and women.
Assume that the population variances are equal.
If Population 1 is defined as men and Population 2 is defined as women, the degrees of
freedom for this hypothesis test are ________.
A) 34
B) 35
C) 36
D) 38
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.
The predicted number of cars sold in a month for an employee with five years of sales
experience, a base salary of $550, and an associate’s degree is ________.
A) 11.3
B) 12.0
C) 12.4
D) 13.6
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 98% confidence
interval for the difference in population proportions is ________.
A) (0.039, 0.061)
B) (0.011, 0.089)
C) (“0.164, 0.064)
D) (“0.122, 0.222)
A random sample of 150 mortgages in the state of Mississippi was randomly selected.
From this sample, 17 were found to be delinquent on their current payment. Using this
sample, the point estimate for the proportion of delinquent mortgages in Mississippi is
________.
A) 0.080
B) 0.102
C) 0.113
D) 0.137
The _________________ provides an estimate for the population variance whether or
not the null hypothesis is true for one-way ANOVA.
A) sum of squares error
B) total sum of squares
C) mean square between
D) mean square within
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.
If Debbie uses decision making under risk, the order size she will choose is
____________.
A) Order Quantity 1
B) Order Quantity 2
C) Order Quantity 3
D) Order Quantity 4
A ________ predicts the change in a dependent variable due to a one-unit increase in an
independent variable while holding other variables constant.
A) residual
B) regression coefficient
C) correlation coefficient
D) coefficient of determination
The following data represent the number of sweatshirts sold for each of the past six
days for Hoys Department Store at the beach in Avalon, New Jersey.
Using an exponential smoothing with trend adjustment technique with alpha equal to
0.3 and beta equal to 0.6, the mean absolute deviation is ________.
A) 3.9
B) 4.7
C) 6.1
D) 6.8
The process of measuring or observing an activity for the purpose of collecting data is
known as a(n) ____________.
A) experiment
B) sample space
C) simple event
D) simple probability
Use the information below to answer the following question(s).
The Marseille Water Taxi ferries tourists from the harbor at Marseille, France, to the
Frioul Islands in the Mediterranean Sea. The table below shows the number of
passengers on the noontime ferry over seven randomly selected days along with the
current ambient temperature in degrees Celsius.
Use the Marseille Water Taxi data to calculate the total sum of squares, sum of squares
error, and sum of squares regression.
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 grade for each course
is shown below.
If Population 1 is defined as the Marketing exam scores and Population 2 is defined as
the Finance exam scores, the correct hypothesis statement for this hypothesis test would
be
____________________________.
A)
B)
C)
D)
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 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 age of Zappos
employees is less than 36 years old
B) more than the critical value, we cannot conclude that the average age of Zappos
employees is less than 36 years old
C) less than the critical value, we can conclude that the average age of Zappos
employees is less than 36 years old
D) less than the critical value, we cannot conclude that the average age of Zappos
employees is less than 36 years old
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 p-value for this
hypothesis test is ________.
A) 0.0026
B) 0.0087
C) 0.1025
D) 0.1562
A camera manufacturer just shipped a batch of 36 digital cameras to local retailers and
seven of the cameras have a defective sensor. Cutler Electronics received eight of these
digital cameras. What is the mean of this probability distribution?
A) 1.56
B) 1.95
C) 2.28
D) 2.71
Hamburgers are on the menu tomorrow at a school cafeteria and the manager needs to
decide how many to have ready for the lunch hour. Each hamburger costs the school
$1.85 and is sold for $3.50. Leftover hamburgers have no monetary value. The manager
expects demand tomorrow to be 100, 150, 200, or 250 hamburgers and would like to
prepare one of these four quantities for lunchtime. If the manager uses the maximax
criterion, how many hamburgers will be prepared?
A) 100
B) 150
C) 200
D) 250
A method of gathering data while the subjects of interest are in their natural
environment, often unaware they are being watched, is known as ____________.
A) direct observation
B) focus groups
C) experiments
D) surveys
The following chart shows the average market price for five brands of cars in March
2013.
Which of the following statements is not correct?
A) The Nissan Versa has the lowest average market value.
B) The Kia Soul has a higher average market price than the Ford Fiesta.
C) The Hyundai Accent has a lower average market price than the Toyota Yaris.
D) The Hyundai Accent has a lower average market price than the Nissan Versa.
The MCAT is the admission exam that medical schools use as one of the criteria for
accepting students. The exam is based on a scale of 0-45. The following data shows the
MCAT scores for nine students.
The 35th percentile of this data set is ________.
A) 30
B) 31
C) 31.5
D) 32
The number of home runs hit by the best hitter on the baseball team is an example of
_______ data.
A) nominal
B) ordinal
C) interval
D) ratio
The National Association of Realtors reported that 26% of home buyers in the state of
Florida are foreigners. The correct hypothesis statement to test the validity of this report
would be _______________________.
A)
B)
C)
D)
Based on the decision tree, which of the following choices describes the final decision
for Hats-R-Us?
A) Conduct the survey and choose a large production quantity regardless of the survey
results.
B) Conduct the survey and choose a large production quantity if survey results are
positive and choose a small production quantity if survey results are negative.
C) Do not conduct the survey and choose a large production quantity.
D) Do not conduct the survey and choose a small production quantity.
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. Which one of the following statements describes the results of the hypothesis
test that the population correlation coefficient is greater than zero using α = 0.10?
A) Because the test statistic is greater than the critical value, we can reject the null
hypothesis and conclude that the population correlation coefficient is greater than zero.
B) Because the test statistic is greater than the critical value, we fail to reject the null
hypothesis and conclude that the population correlation coefficient is greater than zero.
C) Because the test statistic is less than the critical value, we fail to reject the null
hypothesis and cannot conclude that the population correlation coefficient is greater
than zero.
D) Because the test statistic is less than the critical value, we can reject the null
hypothesis and conclude that the population correlation coefficient is not greater than
zero.
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.
Given that the survey predicts a strong demand, the probability that the eventual demand is
weak is ________.
A) 0.054
B) 0.092
C) 0.156
D) 0.180
The manager at the local Ruby Tuesday’s restaurant wanted to investigate the effect of
music on the average revenue per customer. Each night for one month, fast-paced music
was played. The following month, slow-paced music was played every night. The
average revenue per customer for each month was compared. This method of gathering
data is known as __________.
A) direct observation
B) focus groups
C) experiments
D) surveys
The following table displays the amount of data that Steve has used each month, in GB,
with his iPhone during the past six months.
The trend projection slope for this data is ________.
A) 1.4000
B) 1.7955
C) 1.9021
D) 2.6611
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 mean absolute
deviation is ________.
A) 2.5
B) 5.0
C) 8.7
D) 10.0
A Type II error occurs in hypothesis testing when we ___________________________.
A) reject the alternative hypothesis and the alternative hypothesis is true
B) fail to reject the alternative hypothesis and the alternative hypothesis is not true
C) fail to reject the null hypothesis and the null hypothesis is not true
D) reject the null hypothesis and the null hypothesis is true
The average natural gas bill for a random sample of 26 homes in the 19808 zip code
during the month of March was $305.30 with a sample standard deviation of $46.50.
The critical value for a 95% confidence interval around this sample mean is ________.
A) 2.060
B) 2.056
C) 1.708
D) 1.706
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 value under perfect information (EVPI), in thousands of dollars, is
_________.
A) $128.00
B) $245.00
C) $288.00
D) $416.00
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.
Using α = 0.01, the conclusion for this hypothesis test would be that because the test
statistic is
______________________________________________________________________.
A) more than the critical value, we reject the null hypothesis and cannot conclude that
credit score and income are independent of one another
B) more than the critical value, we cannot reject the null hypothesis and can conclude
that credit score and income are independent of one another
C) less than the critical value, we cannot reject the null hypothesis and cannot conclude
that credit score and income are not independent of one another
D) less than the critical value, we reject the null hypothesis and cannot conclude that
credit score and income are independent of one another
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 value under certainty (EVUC), in thousands of dollars, is _________.
A) $128.00
B) $245.00
C) $288.00
D) $416.00
The Central Limit Theorem (CLT) states that the sample means
_____________________ ____________________________.
A) of any samples will be normally distributed regardless of the shape of their
population distributions
B) of large-sized samples will be uniformly distributed regardless of the shape of their
population distributions
C) of large-sized samples will be normally distributed regardless of the shape of their
population distributions
D) of any samples will be uniformly distributed regardless of the shape of their
population distributions