The table below shows the number of cars sold last month by seven employees at
Concord Motors and their number of years of sales experience.
Management would like to use simple regression analysis to estimate monthly car sales
using the number of years of sales experience. Which one of the following statements
describes the results of the hypothesis test that the population correlation coefficient is
greater than zero using α = 0.05?
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 conclude that the population correlation coefficient is not 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.
The Syracuse University men’s NCAA basketball team needs to decide how many
programs to have available for their upcoming game at the Carrier Dome. Each
program sells for $5.00 and costs the school $1.25 to print. Leftover programs have no
monetary value. The school would like to order 6,000, 8,000, or 10,000 programs for
this game while considering demand levels of 6,000, 8,000, or 10,000 programs.
Determine the number of programs Syracuse should print for the game using the
following criterion.
A) Maximax
B) Maximin
C) Equally likely
D) Minimax regret
E) Hurwicz with
If the null hypothesis is true for one-way ANOVA, the mean square total (MST) would
be a good estimate for the ___________.
A) sample mean
B) population mean
C) population standard deviation
D) population variance
The following data show the number of pairs of men’s New Balance sneakers that were
sold over the last 25 weeks at a discount shoe store.
Construct a frequency distribution for this data.
Lisa is a regional manager for a restaurant chain that has locations in the towns of
Berwick, Milton, and Leesburg. She would like to investigate if a difference exists in
the proportion of customers who rate their experience as satisfactory or better between
the three locations. The following data represent the number of customers who
indicated they were satisfied from random samples taken at each location.
The degrees of freedom for the chi-square critical value is ________.
A) 1
B) 2
C) 3
D) 4
Use the information below to answer the following question(s).
Cape May Realty manages rental beach properties during the summer season for
property owners. They would like to determine if a relationship exists between the
square footage of beach property and the weekly rental rates during the summer season.
Simple regression analysis was performed using a random sample of beach properties
with the results shown below.
The percentage of the variation in weekly rental that is explained by the square footage
of the property is ________.
A) 15.99
B) 22.45
C) 47.38
D) 52.58
Which of the following statements is true regarding z-scores for the normal probability
distribution?
A) z-scores are negative for values of x that are less than the distribution mean.
B) z-scores are positive for values of x that are less than the distribution mean.
C) z-scores are zero for values of x that are less than the distribution mean.
D) z-scores are equal to 1.0 for values of x that are equal to the distribution mean.
Use the information below to answer the following question(s).
Cars.com would like to use simple regression to predict the selling price of a used car,
in thousands of dollars, based on the age of the car in years. A random sample of used
cars was selected and the result of the regression analysis is shown below.
The size of the sample is ________.
A) 5
B) 6
C) 7
D) 8
MFP Research reported that average apartment rent in the U.S. is $1,083. A random
sample of 39 apartments was selected. Using a population standard deviation of $227,
what is the probability that the sample mean will be greater than $1,035?
A) 0.7060
B) 0.7557
C) 0.8319
D) 0.9066
The following distribution shows the frequency of daily revenue for an Italian
restaurant in Wilmington, Delaware.
How many business days does this frequency distribution represent?
A) 100
B) 80
C) 32
D) 18
The table below shows the number of cars sold last month by seven employees at
Concord Motors and their number of years of sales experience.
The test statistic for testing whether the population correlation coefficient is greater than
zero is ________.
A) 1.48
B) 2.25
C) 3.09
D) 3.71
Use the information below to answer the following question(s).
The following decision tree is partially completed for a company that is deciding to
build a large or small facility for a new product that will face demand that is strong or
weak. The company has an option to perform a market survey that will cost $4,000 that
will predict a strong or weak market. The payoffs for each combination of facility size
and demand are also shown.
Given the survey will predict a weak market, the expected monetary value of building a
large facility is ________.
A) “$1,200
B) “$700
C) $2,800
D) $4,300
According to the Deloitte EV Survey, 5% of respondents indicated that they would be
willing to pay an extra $500 or more for an electric vehicle versus one with a gasoline
engine. A random sample of 25 adults has been selected. Use the Poisson distribution to
approximate the binomial distribution to determine the probability that three or four
adults from this sample would be willing to pay an extra $500 or more for an electric
vehicle versus one with a gasoline engine.
A) 0.0775
B) 0.1224
C) 0.2965
D) 0.3452
Deanna has been hired to visit the local shopping mall to conduct a survey about the
upcoming political election. She needs to select respondents at the mall and ask them
questions about their voting tendencies. Voting records show that 50% of the local
population are registered as Republicans, 35% are registered as Democrats, and the
remaining as Independents. Deanna wants to be sure that her final sample has a similar
proportion of voters. Which of the following sampling techniques best describes
Deanna’s method?
A) cluster
B) convenience
C) simple random
D) stratified
Use the information below to answer the following question(s).
Cars.com would like to use simple regression to predict the selling price of a used car,
in thousands of dollars, based on the age of the car in years. A random sample of used
cars was selected and the result of the regression analysis is shown below.
The percentage of the variation in selling price that is explained by the age of the used
car is ________.
A) 43.12
B) 54.61
C) 62.17
D) 78.85
Entertainment Software Association would like to test if the standard deviation for the
age of “gamers” (those that routinely play video games) is equal to 6.0 years. The
standard deviation for the age from a random sample of 24 gamers is 3.8 years. The test
statistic for this hypothesis test would be ________.
A) 9.23
B) 24.33
C) 31.82
D) 45.61
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 correct hypothesis
statement for this hypothesis test would be
__________________________.
A)
B)
C)
D)
Pie chartsare an excellent tool for comparing proportions for qualitative (categorical)
data.
________ classes are classes with boundaries that do not overlap.
A) Equal-size
B) Open-ended
C) Mutually exclusive
D) Close-ended
The produce manager for a grocery store needs to decide how many heads of lettuce to
order each day. A head of lettuce sells for $1.20 and costs the grocery store $0.75. Any
unsold lettuce at the end of the day is donated to charity. If the manager purchases 250
heads of lettuce for tomorrow and demand for lettuce that day is 400 heads, the profit
will be ________.
A) “$68.25
B) $0
C) $45.00
D) $112.50
The following contingency table shows the number of two-bedroom apartments
grouped by monthly rent and location.
The probability that a randomly selected apartment from this group has a monthly rental
from $700 to under $800 given that it was located in Lancaster is ________.
A) 0.059
B) 0.138
C) 0.362
D) 0.480
When perfect positive autocorrelation is present in a time series, the Durbin-Watson
statistic will be equal to ________.
A) 0
B) 1
C) 3
D) 4
A correlation analysis requires that the data be either ________ data or _______ data.
A) nominal, ratio
B) interval, ratio
C) ordinal, interval
D) nominal, interval
The critical value for a hypothesis test
________________________________________.
A) determines the observed level of significance
B) is based on the significance level and determines the boundary for the rejection
region
C) represents the number of standard deviations between the sample mean and the
population mean according to the alternative hypothesis
D) represents the number of standard deviations between the sample mean and the
population mean according to the null hypothesis
The variable represents the ________ in the regression model.
A) residual
B) value of the independent variable
C) value of the dependent variable
D) predicted value for the dependent variable
The national average price for regular gasoline was recently reported to be $3.29 per
gallon. The standard deviation for the price of regular gasoline was $0.12. A random
sample of 33 gas stations had an average price of $3.26. Which of the following
statements is correct?
A) The interval that contains 95% of the sample means is $3.17 and $3.41. Because the
sample mean is between these two values, we have support that the average price for
regular gasoline is $3.29.
B) The interval that contains 95% of the sample means is $3.20 and $3.38. Because the
sample mean is between these two values, we do not have support that the average price
for regular gasoline is $3.29.
C) The interval that contains 95% of the sample means is $3.23 and $3.35. Because the
sample mean is between these two values, we do not have support that the average price
for regular gasoline is $3.29.
D) The interval that contains 95% of the sample means is $3.25 and $3.33. Because the
sample mean is between these two values, we have support that the average price for
regular gasoline is $3.29.
When working with grouped data, the ________ is the value in the middle of the class
and can be found by taking the average of the endpoints for each class.
A) range
B) midpoint
C) endpoint
D) median
A golfer would like to test the hypothesis that the variance of his golf score equals 10.0.
A random sample of 28 rounds of golf had a sample standard deviation of 3.5. Using α
= 0.10, the upper critical value for this hypothesis test would be ________.
A) 33.196
B) 36.415
C) 39.364
D) 40.113
A novel on the Amazon.com web site has the following ratings, in number of stars,
from reviewers:
What is the standard deviation of this distribution?
A) 4.30
B) 3.29
C) 2.71
D) 1.25
The Department of Housing and Urban Development (HUD) would like to test the
hypothesis that the average size of a newly constructed house last year is different from
the average size of a newly constructed house in 2000. The following data summarizes
the sample statistics for house sizes, in square feet, for both years. Assume that the
population variances are equal.
If Population 1 is defined as homes built in 2000 and Population 2 is defined as homes
built last year, and using α = 0.10, the conclusion for this hypothesis test would be that
because the absolute value of the test statistic is
_______________________________________________.
A) less than the absolute value of the critical value, HUD cannot conclude that the
average size of a newly constructed house last year is different from the average size of
a newly constructed house in 2000
B) less than the absolute value of the critical value, HUD can conclude that the average
size of a newly constructed house last year is different from the average size of a newly
constructed house in 2000
C) more than the absolute value of the critical value, HUD can conclude that the
average size of a newly constructed house last year is different from the average size of
a newly constructed house in 2000
D) more than the absolute value of the critical value, HUD cannot conclude that the
average size of a newly constructed house last year is different from the average size of
a newly constructed house in 2000
Use the following information to answer the question(s) below.
A home appraisal company would like to develop a regression model that would predict
the selling price of a house based on the age of the house in years (Age), the living area
of the house in square feet (Living Area) and the number of bedrooms (Bedrooms). The
following Excel output shows the partially completed regression output from a random
sample of homes that have recently sold.
The 95% confidence interval for the regression coefficient for the Living Area variable
is ________.
A) (26, 148)
B) (60, 114)
C) (-23, 197)
D) (-63, 237)
Two real estate companies, Century 21 and RE/MAX, compete with one another in a
local market. The manager of the Century 21 office would like to advertise that homes
listed with RE/MAX average more than 10 days on the market when compared to
homes listed with his company. The following data shows the sample size and average
number of days on the market for the two companies along with the population standard
deviations.
If Population 1 is defined as RE/MAX and Population 2 is defined as Century 21, and
using α = 0.10, the conclusion for this hypothesis test would be because the test statistic
is
___________________________________________________________________.
A) more than the critical value, the manager at Century 21 can claim that homes listed
with RE/MAX average more than 10 days on the market when compared to homes
listed with his company
B) less than the critical value, the manager at Century 21 can claim that homes listed
with RE/MAX average more than 10 days on the market when compared to homes
listed with his company
C) more than the critical value, the manager at Century 21 cannot claim that homes
listed with RE/MAX average more than 10 days on the market when compared to
homes listed with his company
D) less than the critical value, the manager at Century 21 cannot claim that homes listed
with RE/MAX average more than 10 days on the market when compared to homes
listed with his company
Costco Wholesale claims that Costco members prefer its Kirkland brand toilet paper
over the leading national brand. To test this claim, Costco recorded the preferences of a
random sample of customers which are summarized in the table below.
The test statistic for this hypothesis test is ________.
A) 1.02
B) 1.38
C) 2.23
D) 2.70
In Delaware, cars are inspected each year using state-operated inspection centers. The
Wilmington center has three drive-through lanes where cars are inspected in a sequence
of steps. The following data show the number of minutes that a random sample of
drivers spent waiting and having their cars inspected in the three lanes each day of the
week.
The state of Delaware would like to perform a randomized block ANOVA to test for a
difference in the average times the drivers spend in the three lanes using the weekday as
a blocking factor with α = 0.05. The main factor test statistic for this hypothesis test
would be ________.
A) 5.06
B) 6.55
C) 8.48
D) 9.11
The Department of Labor would like to test the hypothesis that the average hourly wage
for recent college graduates is less than $20. A random sample of 24 recent college
graduates averaged $19.30 per hour with a standard deviation of $3.20 per hour. The
Department of Labor would like to set α = 0.10. Use the critical value approach to test
this hypothesis.
Expedia would like to test the hypothesis that the standard deviation for the roundtrip
airfare between Philadelphia and Paris is higher for a flight originating in Philadelphia
when compared to a flight originating in Paris. The following data summarizes the
sample statistics for roundtrip flights originating in both cities.
Test the hypothesis using α = 0.05.
The following data represent the number of ceiling fans sold for each of the past five
days for a Home Depot store.
Calculate the sales forecast for Day 6 using exponential smoothing with α = 0.2.
A business school at a particular university has 25 full-time faculty. The following table
shows the number of faculty grouped by years of teaching experience.
What is the approximate standard deviation for years of teaching experience for this
population?
The following data shows the number of students that came to office hours per day for a
particular faculty member.
Construct a relative frequency distribution for this data and determine the probability
that one student will come to office hours today.
A manufacturer of flash drives for data storage operates a production facility that runs
on three 8-hour shifts per day. The following contingency table shows the number of
flash drives that were defective and not defective from each shift.
Perform a hypothesis test to determine if the quality of the flash drive production and
the production shift are independent variables using α = 0.05.
Note: The problems below are based on the following information:
You have been assigned to test the hypothesis that the average number of cars waiting
in line for the drive-thru window during lunch hour differs between Chick-fil-A,
Wendy’s, and McDonald’s. The following data show the number of cars in line during
randomly selected times during the lunch hour at all three chains.
Perform a one-way ANOVA using α = 0.05 to determine if a difference exists in the
average number of cars waiting in line at the drive-thru during the lunch hour between
these chains.