Accounting procedures allow a business to evaluate their inventory costs based on two
methods: LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer
evaluated its finished goods inventory (in $000s) for five products with the LIFO and
FIFO methods. To analyze the difference, they computed (FIFO – LIFO) for each
product. Based on the following results, does the LIFO method result in a lower cost of
inventory than the FIFO method?
What is the null hypothesis?
A. H0: d = 0
B. H0: d ≠ 0
C. H0: d ≤ 0
D. H0: d ≥ 0
Using the following information:
Estimate the value of Ŷ when X = 4.
A. 10.45
B. 3.73
C. 8.718
D. -4.092
If a multiple regression analysis is based on 10 independent variables collected from a
sample of 125 observations, what is the value of the denominator in the calculation of
the multiple standard error of estimate?
A. 125
B. 10
C. 114
D. 115
For a hypothesis comparing two population means, H0: μ1≤ μ2, what is the critical value
for a one-tailed hypothesis test, using a 5% significance level, with both sample sizes
equal to 13? Assume the population standard deviations are equal.
A. 1.711
B. +1.711
C. +2.060
D. +2.064
Shoe style is an example of what level of measurement?
A. Nominal
B. Ordinal
C. Interval
D. Ratio
Two accounting professors decided to compare the variance of their grading procedures.
To accomplish this, they each graded the same 10 exams, with the following results:
What is the critical value of F at the 0.05 level of significance?
A. 5.85
B. 5.35
C. 3.18
D. 4.03
What can we conclude if the global test of regression rejects the null hypothesis?
A. Strong correlations exist among the variables.
B. No relationship exists between the dependent variable and any of the independent
variables.
C. At least one of the net regression coefficients is not equal to zero.
D. Good predictions are not possible.
A company is researching the effectiveness of a new website design to decrease the
time to access a website. Five website users were randomly selected, and their times (in
seconds) to access the website with the old and new designs were recorded. To compare
the times, they computed (new website design time – old website design time). The
results follow.
What is the null hypothesis?
A. H0: d = 0
B. H0: d ≠ 0
C. H0: d ≤ 0
D. H0: d ≥ 0
A sample of small bottles and their contents has the following weights (in grams): 4, 2,
5, 4, 5, 2, and 6. What is the sample variance of bottle weight?
A. 6.92
B. 4.80
C. 1.96
D. 2.33
If the variance is 3.6 grams, what is the standard deviation?
A. 0.600
B. 1.897
C. 6.000
D. 12.96
What is a Type II error?
A. Failing to reject a false null hypothesis
B. Rejecting a false null hypothesis
C. Accepting a false alternate hypothesis
D. Rejecting a false alternate hypothesis
To test if an observed frequency distribution with five classes is normally distributed,
we compute probabilities for each class based on a(n) _________________.
A. Standard normal distribution
B. Chi-square distribution
C. Student’s t distribution
D. F distribution
If the alternate hypothesis states that ≠ 4,000, where is the rejection region for the
hypothesis test?
A. In both tails
B. In the lower or left tail
C. In the upper or right tail
D. In the center
In a market test of a new chocolate raspberry coffee, a poll of 400 people from Dobbs
Ferry showed 250 preferred the new coffee. In Irvington, 170 out of 350 people
preferred the new coffee. To test the hypothesis that there is no difference in preferences
between the two villages, what is the null hypothesis?
A. H0: π1 < π2
B. H0: π1 > π2
C. H0: π1 = π2
D. H0: π1 ≠ π2
Which word is NOT part of the definition of descriptive statistics?
A. Organizing
B. Analyzing
C. Presenting
D. Predicting
If 95% and 98% confidence intervals were developed to estimate the true cost of an
MP3 player with a known population standard deviation, what differences would they
have?
A. The standard errors would be different.
B. The point estimates of the population mean would be different.
C. The sample sizes would be different.
D. The z statistics would be different.
A tennis match requires that a player win three of five sets to win the match. If a player
wins the first two sets, what is the probability that the player wins the match, assuming
that each player is equally likely to win each set?
A. 0.500
B. 0.125
C. 0.875
D. 0.000
What is the general form of the regression equation?
A. Ŷ = ab
B. Ŷ = a+(bX)
C. Ŷ = (a+b)X
D. Ŷ = abX
A sales manager for an advertising agency believes there is a relationship between the
number of contacts that a salesperson makes and the amount of sales dollars earned.
A regression analysis shows the following results:
= 33.4. = 2814.4.
The 95% prediction interval for a particular person making 30 calls is _______.
A. 55.8, 51.5
B. 51.4, 55.9
C. 46.7, 60.6
D. 31.1, 76.2
For a given population, the mean of all the sample means of sample size n, and the
mean of all (N) population observations (X) are _______.
A. Equal to
B. Not equal
C. Equal to
D. Equal to the population mean
Refer to the following distribution of commissions:
For the preceding distribution, what is the midpoint of the class with the greatest
frequency?
A. 1,400
B. 1,500
C. 1,700
D. The midpoint cannot be determined.
A regression analysis yields the following information:
; n = 10; sy∙x = 1.66; ΣX = 32; ΣX2 = 134;
Compute the 95% prediction interval when X = 4.
A. 0.0, 4.05
B. 2.67, 5.33
C. 4.118, 12.226
D. 6.873, 9.527
A survey of an urban university (population of 25,450) showed that 750 of 1,100
students sampled attended a home football game during the season. Using the 99%
level of confidence, what is the confidence interval for the proportion of students
attending a football game?
A. [0.767, 0.814]
B. [0.655, 0.705]
C. [0.644, 0.716]
D. [0.680, 0.681]
What are the degrees of freedom used to test the significance of the slope in a simple
linear regression equation?
A. n – 1
B. n – 2
C. n – 1, n – 2
D. (n – 1)(n – 2)
A purchasing agent for a trucking company is shopping for replacement tires for their
trucks from two suppliers. The suppliers’ prices are the same. However, Supplier A’s
tires have an average life of 60,000 miles with a standard deviation of 10,000 miles.
Supplier B’s tires have an average life of 60,000 miles with a standard deviation of
2,000 miles.
Which of the following statements is true?
A. The two distributions of tire life are the same.
B. On average, Supplier A’s tires have a longer life than Supplier B’s tires.
C. The life of Supplier B’s tire is more predictable than the life of Supplier A’s tires.
D. The dispersion of Supplier A’s tire life is less than the dispersion of Supplier B’s tire
life.
A survey of property owners’ opinions about a street-widening project was taken to
determine if owners’ opinions were related to the distance between their home and the
street. A randomly selected sample of 100 property owners was contacted and the
results are shown next.
What is the expected frequency for people who are undecided about the project and
have property front-footage between 45 and 120 feet?
A. 2.2
B. 3.9
C. 5.0
D. 7.7
Respondents were asked, “Do you now earn more than or less than you did five years
ago?” What is this level of measurement?
A. Interval
B. Ratio
C. Nominal
D. Ordinal
The time to fly between New York City and Chicago is uniformly distributed with a
minimum of 120 minutes and a maximum of 150 minutes. What is the probability that a
flight is less than 135 minutes?
A. 1.00
B. 0.50
C. 0.25
D. 0.00
The mean amount spent by a family of four on food is $500 per month with a standard
deviation of $75. Assuming that the food costs are normally distributed, what is the
probability that a family spends less than $410 per month?
A. 0.2158
B. 0.8750
C. 0.0362
D. 0.1151
Mileage tests were conducted on a randomly selected sample of 100 newly developed
automobile tires. The mean tread wear was 50,000 miles, with a standard deviation of
3,500 miles. What is the best estimate of the average tread life in miles for the entire
population of these tires?
A. 50,000
B. 3,500
C. 500
D. 35
When TV advertisements report “2 out of 3 dentists surveyed indicated they would
recommend Brand X toothpaste to their patients,” an informed consumer may question
the conclusion because the:
A. Sample was only 5 dentists.
B. Sample of dentists is clearly explained.
C. Advertisement does not include the total number of dentists surveyed.
D. Conclusion is not illustrated with a graph.
What distribution does the F distribution approach as the sample size increases?
A. Binomial
B. Normal
C. Poisson
D. Exponential
Using the following information:
The regression equation is _______.
A. Ŷ = 2.1794 – 12.8094 X
B. Ŷ = -12.80894 + 2.1794X
C. 12.8094 X = 2.1794 Ŷ
D. X = -12.8094 + 2.1794 Ŷ
A survey of property owners’ opinions about a street-widening project was taken to
determine if owners’ opinions were related to the distance between their home and the
street. A randomly selected sample of 100 property owners was contacted and the
results are shown next.
At the 5% level of significance, what is the critical value?
The stepwise regression procedure is also called ________.
In a multiple regression analysis, the statistic used to evaluate the presence of correlated
independent variables is __________________.
The weight of a bag of corn chips is normally distributed with a mean of 22 ounces and
a standard deviation of 0.5 ounces. The probability that a bag of corn chips weighs
more than 21 ounces is ____.
A company compared the variance of salaries for employees who have been employed
for 5 years or less with employees who have been employed for 10 years or more. They
randomly selected 21 employees with 5 years or less experience and 15 employees with
10 years or more experience. The standard deviation for the group with 5 years or less
experience was $2,225; the standard deviation for the group with 10 years or more
experience was $1,875. What is the F test statistic for the hypothesis test?
What is special about the standard normal distribution?
The Nile Superstore is conducting a survey of consumer preferences for a new wireless
e-book reader. A sample of 160 people reveals that 120 would buy the new reader.
Estimate the value of the population proportion.
Records on a fleet of trucks reveal that the average life of a set of spark plugs is
normally distributed with a mean of 22,100 miles. The fleet owner purchased 18 sets
and found that the sample average life was 23,400 miles; the sample standard deviation
was 1,412 miles. To decide if the sample data support the company records that the
spark plugs average 22,100 miles, state your decision in terms of the null hypothesis.
Use a 0.05 level of significance.
For a one-tail hypothesis test, the computed test statistic is z = -2.10. What is the
p-value?
The suggested class interval for a frequency distribution with data ranges from 100 to
220 with 50 observations would be _______.
A contingency table shows the frequencies for three levels of income with gender.
There are ______ degrees of freedom to test the null hypothesis that income and gender
are independent.
The size of the standard deviation of the sampling distribution of the mean relative to
the standard deviation of the population under study is __________.
LongLast Inc. produces car batteries. The mean life of these batteries is 60 months. The
distribution of the battery life closely follows the normal probability distribution with a
standard deviation of eight months. As a part of its testing program, LongLast tests a
sample of 25 batteries. What proportion of the samples will have a mean useful life less
than 56 months?
If we test a small number of light bulbs from a large group, the small group is called a
____________.