Frank Forgione has the right to enter a contest where he has a 50% chance of winning
$50,000 and a 50% chance of losing $0. It costs Frank nothing to enter the contest. If he
is willing to give up his right to enter the contest for a sure payment of $10,000, he is
___.
a) a risk avoider
b) an optimist
c) a risk taker
d) risk neutral (an EMV’er)
e) a gambler
The ages of students in a class have been put into the frequency distribution below.
What is the mode age of these students?
a) 18
b) 19
c) 20
d) 21
e) 23
A multiple regression analysis produced the following output from Excel.
The correlation coefficient is ____________.
a) 0.9787
b) 0.9579
c) 0.9523
d) 67.671
e) 0.0489
Members of the accounting department’s clerical staff were asked to rate their
supervisor’s leadership style as either (1) authoritarian or (2) participatory. This is an
example of _______ .
a) interval level data
b) ordinal level data
c) nominal level data
d) ratio level data
e) relative level data
A quality circle studying the problem of incorrect prices on purchase orders identified
several potential causes: incorrect information from requesting department, out-of-date
catalogs from suppliers, defective computer software, and worker practices in the
purchasing department. These potential cause-and-effect relationships are best
illustrated by a _______________.
a) check list
b) Pareto chart
c) control chart
d) point-and-figure chart
e) Fishbone diagram
Let zbe a normal random variable with mean 0 and standard deviation 1. What
is P(-2.25 < z< -1.1)?
a) 0.3643
b) 0.8643
c) 0.1235
d) 0.4878
e) 0.5000
A researcher is conducting a matched”pairs study. She gathers data on each pair in the
study resulting in:
Assume that the data are normally distributed in the population. The level of
significance is selected to be 0.10. If the alternative hypothesis is that the average
difference is greater than zero, the null hypothesis would be rejected if the observed
value of tis _______.
a) greater than 1.533
b) less than -1.533
c) greater than 2.132
d) less than -2.132
e) equal to 2.333
Suppose a population has a mean of 400 and a standard deviation of 24. If a random
sample of size 144 is drawn from the population, the probability of drawing a sample
with a mean of more than 404.5 is _______.
a) 0.0139
b) 0.4861
c) 0.4878
d) 0.0122
e) 0.5000
The following scatter plot indicates that _________.
a) a log x transform may be useful
b) a y2transform may be useful
c) a x2transform may be useful
d) no transform is needed
e) a 1/x transform may be useful
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 EMV of the Stocks alternative, using revised
probabilities, is ________.
a) $132,300
b) -$73,900
c) $127,600
d) -$99,800
e) $100,000
Lucy Baker is analyzing demographic characteristics of two television programs,
American Idol(population 1) and 60 Minutes (population 2). Previous studies indicate
no difference in the ages of the two audiences. (The mean age of each audience is the
same.) Lucy plans to test this hypothesis using a random sample of 100 from each
audience. Her alternate hypothesis is ____________.
a) 1– 2<0
b) 1– 2>0
c) 1– 2= 0
d) 1– 20
e) 1– 2= 1
A cancer research group surveys 100 women more than 40 years old to test the
hypothesis that 50% of women in this age group have regularly scheduled
mammograms. Forty of the women respond affirmatively. Using a= 0.05, the null
hypothesis is __________.
a) m> 80
b) m 80
c) p > 0.50
d) p =0.50
e) s ≥0.80
The assumption of constant error variance in regression analysis is called _______.
a) heteroscedasticity
b) homoscedasticity
c) residuals
d) linearity
e) nonnormality
Suppose the population of all public Universities shows the annual parking fee per
student is $110 with a standard deviation of $18. If a random sample of size 49 is drawn
from the population, the probability of drawing a sample with a mean of more than
$115 is _______.
a) 0.9738
b) 0.4738
c) 0.0262
d) 0.6103
e) 0.1103
In the regression equation, y = 2.164 + 1.3657x, n = 6, the mean of x is 8.667, Sxx=
89.333 and Se= 3.44. A 95% confidence interval for the average of y when x=8 is
_________
a) (9.13, 17.05)
b) (2.75, 23.43)
c) (10.31, 15.86)
d) (3.56, 22.62)
e) (12.09, 14.09)
The following ANOVA table is from a multiple regression analysis.
The observed F value is __________.
a) 16.25
b) 30.77
c) 500
d) 0.049
e) 0.039
Jim Royo, manager of Billings Building Supply (BBS), wants to develop a model to
forecast BBS’s monthly sales (in $1,000’s). He selects the dollar value of residential
building permits (in $10,000) as the predictor variable. An analysis of the data yielded
the following tables.
Jim’s calculated value for the Durbin-Watson statistic is 1.14. Using
= 0.05, the
appropriate decision is: _________.
a) do not reject H0:
= 0
b) reject H0:
= 0
c) do not reject H0:
0
d) the test is inconclusive
e) reject H0:
≠ 0
On Saturdays, cars arrive at David Zebda’s Scrub and Shine Car Wash at the rate of 80
cars per hour during the ten-hour shift. David wants a sample of 40 Saturday customers
to answer the long version of his quality service questionnaire. He instructs the
Saturday crew to select the first 40 customers. His sample is a __________.
a) convenience sample
b) simple random sample
c) systematic sample
d) stratified sample
e) cluster sample
Fitting a linear trend to 36 monthly data points (January 2011 = 1, February 2011 =2,
March 2011 = 3, etc.) produced the following tables.
The projected trend value for January 2014 is ________.
a) 231.39
b) 555.71
c) 339.50
d) 447.76
e) 355.71
You are offered an investment opportunity. Its outcomes and probabilities are presented
in the following table.
Which of the following statements is true?
a) This distribution is skewed to the right.
b) This is a binomial distribution.
c) This distribution is symmetric.
d) This distribution is skewed to the left.
e) This is a Poisson distribution
The Universal Pulp Company has a plant in Portland, Oregon. Management wants to
determine the average number of sick days taken per worker in this plant in 2012. To do
this, the management gathers records on all the workers in the plant and averages the
number of sick days taken in 2012 by each worker. This process is using _______.
a) nonparametric statistics
b) nominal data
c) descriptive statistics
d) inferential statistics
e) a census
Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales
trend.
Specifically, the number of industrial 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. For this study, the set of 1,500
industrial customers is ______________.
a) a parameter
b) a sample
c) the population
d) a statistic
e) the frame
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 Bull market the revised probability of a Bull market, P (S1|F1),
is ________.
a) 0.877
b) 0.894
c) 0.953
d) 0.923
e) 1.000
Suppose an interdisciplinary committee of 3 faculty members is to be selected from a
group consisting of 4 men and 5 women. The probability that all three faculty selected
are men is approximately _______
a) 0.05
b) 0.33
c) 0.11
d) 0.80
e) 0.90
A multiple regression analysis produced the following tables.
For x1= 30 and x2= 100, the predicted value of y is ____________.
a) 753.77
b) 1,173.00
c) 1,355.26
d) 615.13
e) 6153.13
Tamara Hill, fund manager of the Hill Value Fund, manages a portfolio of 250 common
stocks. Tamara is searching for a ‘low risk’ issue to add to the portfolio, i.e., one with a
price variance less than that of the S&P 500 index. Moreover, she assumes an issue is
not ‘low risk’ until demonstrated otherwise. Her staff reported that during the last nine
quarters the price variance for the S&P 500 index (population 1) was 25, and for the last
seven quarters the price variance for XYC common (population 2) was 6. Assume that
stock prices are normally distributed in the population. Using = 0.05, the observed
Fvalue is _______.
a) 17.36
b) 2.04
c) 0.24
d) 4.77
e) 4.17
If the number of parking spots at urban grocery stores is uniformly distributed over the
interval 90 to 140, inclusively (90 x 140), then P(x= exactly 100) is
__________________.
a) 0.750
b) 0.000
c) 0.333
d) 0.500
e) 0.900
Analysis of data for an autoregressive forecasting model produced the following tables.
The actual values of this time series, y, were 228, 54, and 191 for May, June, and July,
respectively. The forecast value predicted by the model for July is __________.
a) -101.00
b) 104.54
c) 218.71
d) 21.56
e) -77.81
The assumptions underlying simple regression analysis include ______________.
a) the error terms are exponentially distributed
b) the error terms have unequal variances
c) the model is nonlinear
d) the error terms are dependent
e) the error terms are independent
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%). Cindy wants to control for the size of the
customer but not to test for it as the main variable of interest so she classified DCI’s
credit customers into three categories by total assets (small, medium, and large). Then,
she randomly assigned four customers from each category to a sales discount rate.
Cindy’s experimental design is a ________.
a) normalized block design
b) completely randomized design
c) factorial design
d) random block design
e) partially randomized design
Which of the following tests should be used to compare the means of two populations if
the samples are independent?
a) Mann-Whitney test
b) Wilcoxon test
c) Runs test
d) Spearman’s test
e) Kruskal-Wallis test
Each day, the manager at Jamie’s Auto Care prepares a frequency distribution and a
histogram of sales transactions by dollar value of the transactions. Friday’s histogram
follows.
On Friday, the approximate number of sales transactions between $150 and $175 was
_____________.
a) 75
b) 200
c) 300
d) 400
e) 500
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 critical value of chi-square is ______________.
a) 5.99
b) 3.84
c) 5.02
d) 7.37
e) 9.99