Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the
Plano Power Plant. Ten percent of all plant employees work in the finishing department;
20% of all plant employees are absent excessively; and 7% of all plant employees work
in the finishing department and are absent excessively. A plant employee is selected
randomly; F is the event “works in the finishing department;” and A is the event “is
absent excessively.” P(F|A) = _____________.
a) 0.35
b) 0.70
c) 0.13
d) 0.37
e) 0.10
The coefficient of correlation in a simple regression analysis is = – 0.6. The coefficient
of determination for this regression would be _______.
a) 0.6
b) – 0.6 or + 0.6
c) 0.13
d) – 0.36
e) 0.36
Catherine Chao, Director of Marketing Research, needs a sample of Kansas City
households to participate in the testing of a new toothpaste package. If 40% of the
households in Kansas City prefer the new package, the probability that Catherine’s
random sample of 300 households will have a sample proportion greater than 0.45 is
___________.
a) 0.9232
b) 0.0768
c) 0.4616
d) 0.0384
e) 0.8974
Louis Katz, a cost accountant at Papalote Plastics, Inc. (PPI), is analyzing the
manufacturing costs of a molded plastic telephone handset produced by PPI. Louis’s
independent variable is production lot size (in 1,000’s of units), and his dependent
variable is the total cost of the lot (in $100’s). Regression analysis of the data yielded
the following tables.
Louis’s regression model is ________________.
a) y = -0.358 + 3.996x
b) y = 0.358 + 3.996x
c) y = -3.996 + 0.358x
d) y = 3.996 – 0.358x
e) y = 3.996 + 0.358x
Data from a completely randomized design are shown in the following table.
For a one-way ANOVA using
= 0.05, the critical F value is ________.
a) 3.86
b) 3.59
c) 19.38
d) 4.26
e) 6.8
The following ANOVA table is from a multiple regression analysis.
The MSE value is __________.
a) 31
b) 500
c) 16
d) 2300
e) 8.7
If there is positive correlation between two sets of numbers, then _______.
a) r = 0
b) r < 0
c) r > 0
d) SSE=1
e) MSE = 1
A local pediatrician office is interested in the “no-show” appointment count for each of
the 4 pediatricians. “No-show” appointments represent lost revenues because the
physician will be idle when patients do not show for their scheduled appointments.
Using the data in the table below and an alpha of .10, what is the critical value of χ2?
a) 4.61
b) 6.25
c) 7.78
d) 13.28
e) 15.09
Personnel specialist, Steve Satterfield, is assessing a new supervisor’s ability to follow
company standards for evaluating employees. Steve has the new supervisor rate five
hypothetical employees on a scale of one to ten. He is interested in how the new
supervisor’s ratings correlate with company norms for these benchmark cases.
The Spearman rank correlation coefficient is ___________.
a) 0.80
b) 0.85
c) 0.90
d) 0.95
e) 1.00
The following graphic of cigarettes smoked (sold) per capita (CIG) and deaths per
100K population from lung cancer (LUNG) indicates _________
a) a weak relation between the two variables
b) a pretty strong relation between the two variables
c) when the number of cigarettes smoked (sold) per capita (CIG) increases the deaths
per 100K population from lung cancer (LUNG)decreases
d) a negative relation between the two variables
e) no relation between the two variables
Medical Wonders is a specialized interior design company focused on healing artwork.
The CEO, Kathleen Kelledy claims that artwork has healing effects for patients staying
in a hospital, as measured by reduced length of stay. Her current client is a children’s
cancer hospital. Kathleen is interested in determining the effect of three different pieces
of healing artwork on children. She chooses three paintings (a horse photo, a bright
abstract, and a muted beach scene) and randomly assigns six hospital rooms to each
painting. In Kathleen’s experimental design “reduced length of stay” is _______.
a) the dependent variable
b) a concomitant variable
c) a treatment variable
d) a blocking variable
e) a constant
Sam Hill, Director of Media Research, is analyzing subscribers to the
TravelWorldmagazine. He wonders whether subscriptions are influenced by the head of
household’s highest degree earned. His staff prepared the following contingency table
from a random sample of 300 households.
Using
= .05, the appropriate decision is ______________.
a) reject the null hypothesis and conclude the two variables are independent
b) do not reject the null hypothesis and conclude the two variables are independent
c) reject the null hypothesis and conclude the two variables are not independent
d) do not reject the null hypothesis and conclude the two variables are not independent
e) do nothing
Abby Kratz, a market specialist at the market research firm of Saez, Sikes, and Spitz, is
analyzing household budget data collected by her firm. Abby’s dependent variable is
monthly household expenditures on groceries (in $’s), and her independent variable is
annual household income (in $1,000’s). Regression analysis of the data yielded the
following tables.
Using
= 0.05, Abby should ________________.
a) reject H0:
1= 0
b) not reject H0:
1= 0
c) increase the sample size
d) suspend judgment
e) reject H0:
0= 0
The average time between phone calls arriving at a call center is 30 seconds. Assuming
that the time between calls is exponentially distributed, find the probability that less
than two minutes elapse between calls.
a) 0.018
b) 0.064
c) 0.936
d) 0.982
e) 1.000
Ophelia O’Brien, VP of Consumer Credit of American First Banks (AFB), monitors the
default rate on personal loans at the AFB member banks. One of her standards is “no
more than 5% of personal loans should be in default.” On each Friday, the default rate
is calculated for a sample of 500 personal loans. Last Friday’s sample contained 30
defaulted loans. Using = 0.10, the critical zvalue is _______.
a) 1.645
b) -1.645
c) 1.28
d) -1.28
e) 2.28
Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for
non-business communications. A random sample of 200 e-mail messages was selected.
Thirty of the messages were not business related. The 95% confidence interval for the
population proportion is _________.
a) 0.108 to 0.192
b) 0.153 to 0.247
c) 0.091 to 0.209
d) 0.101 to 0.199
e) 0.199 to 0.201
A researcher is testing a hypothesis of a single mean. The critical zvalue for
= .05 and an one”tailed test is 1.645. The observed zvalue from sample data is 1.13. The
decision made by the researcher based on this information is to ______ the null
hypothesis.
a) reject
b) fail to reject
c) redefine
d) change the alternate hypothesis into
e) restate the null hypothesis
Ray Crofford is evaluating investment alternatives for the $100,000 which he inherited
from his grandfather. His investment advisor has identified two alternatives and
constructed the following tables which show (1) expected profits (in $10,000’s) for
various market conditions and their probabilities, and (2) the advisor’s track record on
predicting Bull and Bear markets.
If the advisor predicts a Bear market the revised probability of a Bear market, P
(S2|F2), is ________.
a) 0.524
b) 0.636
c) 0.784
d) 0.812
e) 0.000
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 appropriate decision is _________.
a) reject the null hypothesis
b) reject the null hypothesis
1
2
3
4
c) do not reject the null hypothesis
d) do not reject the null hypothesis
1
2
3
4
e) do nothing
Medical Wonders is a specialized interior design company focused on healing artwork.
The CEO, Kathleen Kelledy claims that artwork has healing effects for patients staying
in a hospital, as measured by reduced length of stay. Her current client is a children’s
cancer hospital. Kathleen is interested in determining the effect of three different pieces
of healing artwork on children. She chooses three paintings (a horse photo, a bright
abstract, and a muted beach scene) and randomly assigns six hospital rooms to each
painting. Analysis of Kathleen’s data yielded the following ANOVA table.
Using
= 0.05, the observed F value is _____________.
a) 16738.1
b) 1769.75
c) 33476.19
d) 26546.18
e) 9.457912
Annie Mikhail, market analyst for a national company specializing in historic city tours,
is analyzing the relationship between the sales revenue from historic city tours and the
size of the city. She gathers data from six cities in which the tours are offered. Annie’s
dependent variable is annual sales revenues and her independent variable is the city
population. Regression analysis of the data yielded the following tables.
Using
= 0.05, Annie should ________________.
a) increase the sample size
b) not reject H0:
1= 0
c) reject H0:
1= 0
d) suspend judgment
e) reject H0:
0= 0
A local pediatrician office is interested in the “no-show” appointment count for each of
the 4 pediatricians. “No-show” appointments represent lost revenues because the
physician will be idle when patients do not show for their scheduled appointments.
Using the data in the table below and an alpha of .10, what is the observed value of χ2?
a) 85.68
b) 75.0
c) 13.68
d) 10.68
e) 23.45
A human resources analyst is developing a regression model to predict electricity
production plant manager compensation as a function of production capacity of the
plant, number of employees at the plant, and plant technology (coal, oil, and nuclear).
The “plant technology” variable in this model is ______.
a) a response variable
b) a dependent variable
c) a quantitative variable
d) an independent variable
e) a constant
Ray Crofford is evaluating investment alternatives for the $100,000 which he inherited
from his grandfather. His investment advisor has identified two alternatives and
constructed the following tables which show (1) expected profits (in $10,000’s) for
various market conditions and their probabilities, and (2) the advisor’s track record on
predicting Bull and Bear markets.
The probability that the advisor predicts a Bull market and the Bull market is the actual
condition p(F1Sᴖ1) is ________.
a) 0.78
b) 0.9
c) 0.953
d) 0.923
e) 0.72
The lowest level of data measurement is _______.
a) interval level
b) ordinal level
c) nominal level
d) ratio level
e) minimal level
Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales
trend.
Specifically, the number of customers is stable at 1,500, but they are purchasing less
each year.
She orders her staff to search for causes of the downward trend by surveying all 1,500
industrial customers. One question on the survey asked the customers: “Which of the
following best describes your primary business: a. manufacturing, b. wholesaler, c.
retail, d. service.” The measurement level for this question is _________________.
a) interval level
b) ordinal level
c) nominal level
d) ratio level
e) relative level
What proportion of San Diego’s registered voters favor trade restrictions with China? In
an effort to determine this, a research team calls every registered voter in San Diego and
contacts them. The proportion determined from the data gathered is a _______.
a) parameter
b) sample
c) population
d) statistic
e) frame
Let zbe a normal random variable with mean 0 and standard deviation 1. The
50thpercentile of zis ____________.
a) 0.6700
b) -1.254
c) 0.0000
d) 1.2800
e) 0.5000
Data from a randomized block design are shown in the following table.
The Error Sum of Squares (SSE) is ________.
a) 4.67
b) 12
c) 2.33
d) 28.67
e) 11
Dan Hein owns the mineral and drilling rights to a 1,000 acre tract of land. If he drills a
well and does not strike oil his net loss will be $50,000, but if he drills a well and
strikes oil his net gain will be $100,000. If he does not drill, his loss is the cost of the
mineral and drilling rights, which amount to $1000. The probability of the state of
nature “oil in the tract” is unknown. If Dan is an optimist, he would choose the
_____________.
a) maximin criterion
b) maximax criterion
c) Hurwicz criterion
d) minimax regret strategy
e) maximin regret strategy
Inspection of the following table of correlation coefficients for variables in a multiple
regression analysis reveals that the first independent variable entered by the forward
selection procedure will be ___________.
a) x1
b) x2
c) x3
d) x4
e) x5
Jack Joyner, Director of Quality Control at Covington Castings (CC), is designing a c
chart to monitor the number of nonconformances per aluminum casting produced at
CC. The total number of nonconformances for 26 castings is 91. The centerline for
Jack’s c chart is ___________.
a) 117.00
b) 0.2857
c) 3.50
d) 65.00
e) 26.00
If x and y in a regression model are totally unrelated, _______.
a) the correlation coefficient would be -1
b) the coefficient of determination would be 0
c) the coefficient of determination would be 1
d) the SSE would be 0
e) the MSE would be 0s