The trend forecast equation is Ŷ = 120 + 100t. The next forecast is for period 11. The
typical seasonal index for period 11 is 0.82. What are the forecast sales for period 11?
A. 1,100
B. 1,220
C. 1,000
D. 640
Refer to the following breakdown of responses to a survey of room service in a hotel.
What is the class with the greatest frequency?
A. Not satisfied
B. Satisfied
C. Highly satisfied
D. None Apply
The trend forecast equation is Ŷ = 100 + 120t. The next forecast is for period 8. The
typical seasonal index for period 8 is 1.15. What are the forecast sales for period 8?
A. 1,060
B. 1,219
C. 960
D. 1,075
The probability distribution for the number of automobiles lined up at a Lakeside Olds
dealer at opening time (7:30 a.m.) for service is:
On a typical day, how many automobiles should Lakeside Olds expect to be lined up at
opening time?
A. 10.00
B. 1.00
C. 2.85
D. 1.96
A person is trying to decide if they should buy a lottery ticket. The ticket costs $2.00. If
the ticket is a winner, the prize would be $1,000. Knowing that winning $1,000 is not a
certain outcome (state of nature), the person finds that the probability of winning is
0.001. Based on this information, the following payoff table can be constructed:
What is the probability of losing $2.00?
A. 0.001
B. 0.999
C. 1.00
D. Cannot be computed
In the Kruskal-Wallis test for the following data, what are the degrees of freedom?
A. 5
B. 2
C. 16
D. 15
A sample distribution of hourly earnings in Paul’s Cookie Factory is:
The limits of the class with the smallest frequency are:
A. $6.00 and $9.00
B. $12.00 and up to $14.00
C. $11.75 and $14.25
D. $12.00 and up to $15.00
The mean annual incomes of certified welders are normally distributed with the mean
of $50,000 and a standard deviation of $2,000. The ship building association wishes to
find out whether their welders earn more or less than $50,000 annually. The alternate
hypothesis is that the mean is not $50,000. Which of the following is the alternate
hypothesis?
A. H1: π ≠$50,000
B. H1: ≠$50,000
C. H1: < $50,000
D. H1: = $50,000
The Spearman coefficient of rank correlation computes the correlations for
____________ scaled data.
The manager of Paul’s fruit and vegetable store is considering the purchase of a new
seedless watermelon from a wholesale distributor. Since this seedless watermelon costs
$4, will sell for $7, and is highly perishable, he only expects to sell between six and
nine of them. What is the opportunity loss for purchasing nine watermelons when the
demand is for seven watermelons?
A. 0
B. 4
C. 8
D. 12
Consider a left-tailed test, where the p-value is found to be 0.10. If the sample size n for
this test is 49, then the t statistic will have a value of ________.
A. +1.677
B. -1.677
C. +1.299
D. -1.299
A group of employees of Unique Services will be surveyed about a new pension plan.
In-depth interviews with each employee selected in the sample will be conducted. The
employees are classified as follows:
What is the probability that the first person selected is either in management or in
supervision?
A. 0.00
B. 0.06
C. 0.15
D. 0.21
What is the general equation for the logarithmic trend equation to forecast Ŷ?
A. log a + log b(t)
B. log at log b(t)
C. at b(t)
D. ab(t)
For the rank correlation coefficient, what test statistic is used to test the null hypothesis
that the correlation is zero?
A. chi-square
B. Student’s t statistic
C. z statistic
D. H
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
On a finance exam, 15 accounting majors had an average grade of 90. On the same
exam, 7 marketing majors averaged 85, and 10 finance majors averaged 93. What is the
weighted mean for all 32 students taking the exam?
A. 89.84
B. 89.33
C. 89.48
D. 10.67
What is the median of 26, 30, 24, 32, 32, 31, 27, and 29?
A. 32
B. 29
C. 30
D. 29.5
If the coefficient of skewness is equal to zero, the shape of the distribution is
__________.
A. Negatively skewed
B. Symmetric
C. Positively skewed
D. Unknown
Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are
shown next.
What is your interpretation of the Laspeyres price index?
A. Value rose 16.67%.
B. Value rose 35.56%.
C. Value rose 16.71%.
D. Value rose 16.45%.
The national sales manager for “I colored this” (ICT) T-shirts provides all salespersons
with the payoff table shown next, giving the estimated profit when a retailer purchases
from one to four dozen T-shirts. The probability of demand for each state of nature is
also shown.
What would be the best decision if the maximin strategy is used?
A. 1
B. 2
C. 3
D. 4
The regression equation is Ŷ = 30 + 2.56X, the sample size is 14, and the standard
error of the slope is 0.97. What is the critical value to test the significance of the slope
at the 0.05 significance level?
A. z = 1.96
B. t = 2.179
C. t = 2.145
D. t = +2.145
The manager of Paul’s fruit and vegetable store is considering the purchase of a new
seedless watermelon from a wholesale distributor. Since this seedless watermelon costs
$4, will sell for $7, and is highly perishable, he only expects to sell between six and
nine of them. What is the payoff value for the purchase of nine watermelons when the
demand is for eight watermelons?
A. 6
B. 13
C. 20
D. 27
A typical sales index of 96 for January indicates that sales are ____________________.
Describe the difference between a population and a sample.
We are interested in knowing if the following frequency distribution is normally
distributed. The population mean and standard deviation are 600 and 160, respectively.
To test the hypothesis that the frequency distribution is normally distributed, what are
the degrees of freedom for the chi-square statistic?
The relationship between interest rates as a percent (X) and housing starts (Y) is given
by the linear equation Ŷ = 4094 – 269X. At what interest rate will there be no permits
for housing starts?
Autocorrelation occurs when successive residuals are _________.
A bottle cap manufacturer with four machines and six operators wants to see if variation
in production is due to the machines and/or the operators. The ANOVA table follows.
What are the degrees of freedom for the machines?
Twenty-one executives in a large corporation were randomly selected to study the effect
of several factors on annual salary (expressed in $000s). The factors selected were age,
seniority, years of college, number of company divisions they had been exposed to, and
the level of their responsibility. The results of the regression analysis follow:
Which independent variable has the most significant effect on annual salary?
The measure of central location that uses all of the observations in its calculation is
called the ___________.
We are interested in knowing if the following frequency distribution is normally
distributed. The population mean and standard deviation of the data are 600 and 160,
respectively.
If the distribution was normally distributed, what is the probability that an observation
would be a member of the “800 up to 1000” class?
If the binomial distribution is used to develop an operating characteristic curve for an
acceptance sampling plan, there can be a total of _____ possible outcomes.