When using the chi-square hypothesis test and the observed frequencies are relatively
close to the expected frequencies, which one of the following statements is true?
A) The scenario will result in a smaller chi-square statistic, which increases the
likelihood that there is support for the null hypothesis.
B) The scenario will result in a smaller chi-square statistic, which increases the
likelihood that there is support for the alternative hypothesis.
C) The scenario will result in a larger chi-square statistic, which increases the likelihood
that there is support for the null hypothesis.
D) The scenario will result in a larger chi-square statistic, which increases the
likelihood that there is support for the alternative hypothesis.
The following data represent the number of sweatshirts sold for each of the past six
days for Hoys Department Store at the beach in Avalon, New Jersey.
Using an exponential smoothing technique with alpha equal to 0.4, the mean absolute
deviation is ________.
A) 3.8
B) 6.7
C) 6.9
D) 7.2
Alison is the chair of a business department that consists of nine full-time faculty. She
needs to schedule a meeting with each faculty to review their performance over the past
year. The number of different ways these nine faculty can be scheduled is ________.
A) 40,320
B) 162,500
C) 362,880
D) 3,628,880
Nintendo Sony would like to test the hypothesis that a difference exists in the average
age of users of a Wii, a PlayStation, or an Xbox console game. The following data
represent the age of a random sample of Wii, PlayStation, and Xbox users.
The test statistic for this hypothesis test would be ________.
A) 2.29
B) 2.97
C) 5.74
D) 6.53
A data set has 60 observations with a minimum value equal to 30 and a maximum value
equal to 72. The estimated class width using the 2k > n rule to determine the number of
classes is
A) 7.
B) 9.
C) 10.
D) 12.
____________ data is strictly qualitative data assigned to predetermined categories or
labels.
A) Nominal
B) Ordinal
C) Interval
D) Ratio
Use the information below to answer the following question(s).
Some research has indicated that as people age they need less sleep. A random sample
of adults was selected and the number of hours that they slept last night was recorded.
Simple regression analysis was performed on this sample and the results are shown
below.
According to these regression results, the average number of hours that a person who is
40 years old is ________.
A) 6.8
B) 7.1
C) 7.7
D) 8.4
Sony would like to test the hypothesis that the average age of a PlayStation user is
different from the average age of an Xbox user. A random sample of 36 PlayStation
users had an average age of 34.2 years while a random sample of 30 Xbox users had an
average age of 32.7 years. Assume that the population standard deviation for the age of
PlayStation and Xbox users is 3.9 and 4.0 years, respectively. Sony would like to set α
= 0.10. The conclusion for this hypothesis test would be that because the absolute value
of the test statistic is
_________________________________________________________.
A) more than the absolute value of the critical value, we can conclude that the average
age of PlayStation users is equal to the average age of Xbox users
B) less than the absolute value of the critical value, we cannot conclude that the average
age of PlayStation users is equal to the average age of Xbox users
C) more than the absolute value of the critical value, we can conclude that the average
age of PlayStation users is different from the average age of Xbox users
D) less than the absolute value of the critical value, we cannot conclude that the average
age of PlayStation users is different from the average age of Xbox users
Sheridan Motors is a car dealership that would like to investigate if there is a difference
in the average number of car sales per month between three sales employees using a
randomized block ANOVA. The following data represent the number of car sales last
year for these employees for six different months.
The sum of squares block for these observations is ________.
A) 48.9
B) 55.2
C) 64.5
D) 72.0
The Dean of the Business School at State University would like to test the hypothesis
that no difference exists between the average final exam grades for the Introduction to
Marketing course and the Introduction to Finance course. A random sample of eight
students who took both courses was selected and their final exam grades for each
course are shown below.
If Population 1 is defined as the Marketing exam scores and Population 2 is defined as
the Finance exam scores, the p-value for this hypothesis test would be between
________.
A) 0.01 and 0.025
B) 0.025 and 0.05
C) 0.05 and 0.10
D) 0.10 and 0.20
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,
which one of the following statements is true?
A) Because the 80% confidence interval includes zero, the manager at Century 21 can
fail to reject the null hypothesis and claim that homes listed with RE/MAX average
more than 10 days on the market when compared to homes listed with his company.
B) Because the 80% confidence interval does not include zero, the manager at Century
21 can reject the null hypothesis and cannot claim that homes listed with RE/MAX
average more than 10 days on the market when compared to homes listed with his
company.
C) Because the 80% confidence interval includes 10, the manager at Century 21 can fail
to reject the null hypothesis and claim that homes listed with RE/MAX average more
than 10 days on the market when compared to homes listed with his company.
D) Because the 80% confidence interval does not include 10, the manager at Century 21
can reject the null hypothesis and claim that homes listed with RE/MAX average more
than 10 days on the market when compared to homes listed with his company.
According to Manhattan Research, 44% of physicians surveyed said they communicate
with patients through e-mail. A random sample of 120 physicians was selected. What is
the probability that 50 or more from this sample e-mail their patients?
A) 0.4168
B) 0.4830
C) 0.6042
D) 0.6950
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 test statistic for testing the significance of the Age variable is ________.
A) -1.37
B) -0.278
C) -0.144
D) -0.086
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 with
probabilities 0.45, 0.35, and 0.20 respectively.
A) Determine the number of programs Syracuse should print for the game using
decision making under risk
B) Determine the expected value of perfect information.
Sarah is the office manager for a group of financial advisors who provide financial
services for individual clients. She would like to investigate whether a relationship
exists between the number of presentations made to prospective clients in a month and
the number of new clients per month. The following table shows the number of
presentations and corresponding new clients for a random sample of six employees.
Sarah would like to use simple regression analysis to estimate the number of new
clients per month based on the number of presentations made by the employee per
month. The standard error of the estimate is ________.
A) 0.99
B) 1.66
C) 2.18
D) 2.95
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 (X1), the living area
of the house in square feet (X2), and the number of bedrooms (X3). The following
regression model was chosen using a data set of house statistics:
The first house from the data set had the following values:
Selling price = $324,000
Age = 22 years
Square Feet = 2,000
Bedrooms = 3
The residual for this house is ________.
A) 23,558
B) -41,480
C) 10,216
D) -16,095
Scott has decided to invest in constructing and operating a new sandwich shop and
needs to decide how large to build this new facility. The annual profit, including the
depreciated investment, will depend on the demand for his products. The following
decision table shows the payoffs, in thousands of dollars, for various combinations of
facility size and demand along with Scott’s estimates for each demand level.
If Scott uses decision making under risk, the facility size he will choose is
____________.
A) Small
B) Medium
C) Large
D) Very Large
Consider the partially completed randomized block ANOVA summary table.
The degrees of freedom for the sum of squares error for this ANOVA procedure is
_______.
A) 12
B) 15
C) 16
D) 18
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 strong market, the probability that demand for the new
product will be weak is ________.
A) 0.30
B) 0.40
C) 0.50
D) 0.60
A random sample of 25 roundtrip flights between Philadelphia and Dallas has an
average airfare of $393.50 with a sample standard deviation of $50.30. The critical
value for an 80% confidence interval around this sample mean is ________.
A) 0.857
B) 1.318
C) 1.711
D) 2.064
Sara is a regional manager for a restaurant chain that has locations in the towns of
Florence, Camden, and Columbia. A random sample of customers at all three locations
were asked to rate their satisfaction level on a scale of 1 to 20. A two-way ANOVA
procedure was performed on this data using α = 0.05 with Factor A representing each
location and Factor B representing the customer ‘s gender. The results are summarized
below in the ANOVA table.
A conclusion for this ANOVA procedure would be that because the interaction test
statistic is
______________________________________________________________________
____.
A) more than the critical value, we cannot reject the null hypothesis and conclude that
Factors A and B interact
B) more than the critical value, we can reject the null hypothesis and conclude that
Factors A and B interact
C) less than the critical value, we can reject the null hypothesis and can conclude that
Factors A and B do not interact
D) less than the critical value, we cannot reject the null hypothesis and can conclude
that Factors A and B do not interact
Based on the decision tree, which of the following choices describes the final decision
for this company?
A) Conduct the survey and choose to build a large facility regardless of the survey
results
B) Conduct the survey and choose to build a large facility if the survey results are
strong and choose to build a small facility if the survey results are weak.
C) Do not conduct the survey and choose to build a large facility.
D) Do not conduct the survey and choose to build a small facility.
Dwight Howard plays center in the National Basketball Association and averaged 1.8
blocked shots per game during a recent season. Assume that the number of blocked
shots per game follows the Poisson distribution. What is the probability that Dwight
Howard will block two or three shots during the next game?
A) 0.1863
B) 0.2595
C) 0.3703
D) 0.4285
The table below shows the numbers of two- to five-bedroom houses in the Belmont
neighborhood.
What is the mean number of bedrooms in a house in this neighborhood?
A) 2.43
B) 2.80
C) 3.82
D) 4.06
Debbie is a buyer for a retail chain and needs to decide what order quantity to place for
women’s coats for the upcoming winter season. Below is a payoff table, in thousands of
dollars, for various order quantities (1 = lowest, 4 = highest) and demand levels for the
winter coats. Also shown in the table are the probabilities that Debbie has estimated for
each demand level.
The expected monetary value (EMV), in thousands of dollars, for Order Quantity 2 is
_______.
A) $138.00
B) $167.50
C) $205.20
D) $245.00
Sara is a regional manager for a restaurant chain that has locations in the towns of
Florence, Camden, and Columbia. A random sample of customers at all three locations
were asked to rate their satisfaction level on a scale of 1 to 20. A two-way ANOVA
procedure was performed on this data using α = 0.05 with Factor A representing each
location and Factor B representing the customer ‘s gender. The results are summarized
below in the ANOVA table.
A conclusion for this ANOVA procedure would be that because the Factor B test
statistic is
______________________________________________________________________
______.
A) more than the critical value, we can reject the null hypothesis and can conclude that
there is a difference in average means for the customer satisfaction scores between the
male and female customers
B) less than the critical value, we cannot reject the null hypothesis and cannot conclude
that there is a difference in average means for the customer satisfaction scores between
the male and female customers
C) less than the critical value, we cannot reject the null hypothesis and conclude that
there is no difference in average means for the customer satisfaction scores between the
male and female customers
D) more than the critical value, we can reject the null hypothesis and conclude that
there is a difference in average means for the customer satisfaction scores between the
male and female customers
The critical value for a two-tail hypothesis test when the population standard deviation
is known, the sample size is 30 or more, and α = 0.01 is ________.
A) 2.05
B) 2.33
C) 2.575
D) 2.96
A ________ is a portion of a population that is representative of the population from
which it is selected.
A) sample
B) survey
C) statistic
D) parameter
Nintendo Sony would like to test the hypothesis that a difference exists in the average
age of users of a Wii, a PlayStation, or an Xbox console game. The following data
represent the age of a random sample of Wii, PlayStation, and Xbox users.
The grand mean for these observations is ________.
A) 30.0
B) 30.9
C) 31.3
D) 31.8
The following data represent the number of minutes eight taxpayers waited on hold for
when calling into the IRS help line.
16 18 1 17 2 1 16 19
Describe the shape of this distribution as symmetrical, left-skewed, or right-skewed.
Use the following information to answer the question(s) below.
Suppose CitiMortgage would like to develop a regression model that would predict a
person’s credit score based on their age, weekly income, years living in their current
residence, and gender (Male = 0, Female = 1). The following data represent the values
for the independent and dependent variables from a random sample of adults.
Determine if multicollinearity is present among these independent variables and, if
necessary, take the necessary steps to eliminate it.
A publication recently reported that the median time that French people spend eating
lunch at a restaurant is more than Americans. Test this hypothesis using α = 0.05 with
the following data which shows the number of minutes a random sample of French and
American diners spent during lunch.
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 test the hypotheses
that the standard deviation for the number of days that houses listed with RE/MAX is
greater than the standard deviation for homes that listed with Century 21. The following
data summarizes the sample statistics for the number of days that houses are on the
market for both companies.
Test the hypothesis using α = 0.05
National Football League (NFL) games consist of four 15-minute quarters. NFL teams
average scoring points on 70% of the quarters in a game. The following data represent
the frequency of quarters in a game that teams scored points from a random sample of
100 games.
Perform a test to investigate if the number of quarters that teams score points follows
the binomial distribution with p = 0.70 and n = 4 using α = 0.05.
Note: The problems below use the following information:
The following data show the minutes that randomly selected flights were delayed from
their scheduled departure at three different airports throughout different time intervals
during the day.
A two-way ANOVA was performed using α = 0.05 by defining Factor A as the airport
and Factor B as the time. The results are shown below.
Test the effects that the airport and time have on the average number of minutes that
flights are delayed from their scheduled departure.