Quartiles divide a distribution into ___________.
A. 2 equal parts
B. 4 equal parts
C. 10 equal parts
D. 100 equal parts
Refer to the following distribution:
What is the relative class frequency for the $25 up to $35 class?
A. .02
B. .04
C. .05
D. .10
Using the following information:
What is the correlation coefficient?
A. 0.9184
B. 0.9583
C. -0.9583
D. 0.9004
Each salesperson in a large department store chain is rated on their sales ability and
their potential for advancement. The data for the 500 sampled salespeople are
summarized in the following table.
What is the probability that a salesperson selected at random will have an excellent
potential for advancement given they also have above average sales ability?
A. 0.27
B. 0.60
C. 0.404
D. 0.45
A survey of 25 grocery stores revealed that the average price of a gallon of milk was
$2.98, with a standard error of $0.10. What is the 98% confidence interval to estimate
the true cost of a gallon of milk?
A. $2.73 to $3.23
B. $2.85 to $3.11
C. $2.94 to $3.02
D. $2.95 to $3.01
An electronics retailer believes that, at most, 40% of their cell phone inventory was sold
during November. The retailer surveyed 80 dealers and found that 38% of the inventory
was sold. Since 38% is less than 40%, is this difference of 2 percentage points sampling
error or a significant difference? Test at the 0.05 level. The computed z = -0.37.
A. The 2% is a significant difference.
B. We cannot determine if the 2% is a significant difference.
C. There is not enough information to reach a conclusion.
D. None Apply.
When data is collected using a qualitative, nominal variable (in other words, male or
female), what is true about a frequency distribution that summarizes the data?
A. The upper and lower class limits must be calculated.
B. Class midpoints can be computed.
C. The number of classes corresponds to the number of a variable’s values.
D. The “2 to the k rule” can be applied.
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
A hypothesis regarding the weight of newborn infants at a community hospital is that
the mean is 6.6 pounds. A sample of seven infants is randomly selected and their
weights at birth are recorded as 9.0, 7.3, 6.0, 8.8, 6.8, 8.4, and 6.6 pounds. What is the
alternate hypothesis?
A. H1: = 6.6
B. H1: ≠ 6.6
C. H1: ≥ 6.6
D. H1: > 7.6
If an ANOVA test is conducted and the null hypothesis is rejected, what does this
indicate?
A. The p-value is less than α.
B. The population means are equal.
C. At least one pair of population means is different.
D. All population means are different.
To study the population of consumer perceptions of new technology, sampling of the
population is preferred over surveying the population because _________.
A. Sampling is more accurate
B. We can compute z-scores
C. It is quicker
D. Sampling methods are simple
A researcher is studying the effect of 10 different variables on a critical measure of
business performance. A multiple regression analysis including all 10 variables is
performed. What criterion could be used to eliminate 1 of the 10 variables?
A. Multiple R2
B. Largest p-value
C. Smallest p-value
D. Smallest regression coefficient
The names of the positions in a corporation, such as chief operating officer or
controller, are examples of what type of variable?
A. Qualitative
B. Quantitative
C. Interval
D. Ratio
A recent study focused on the amount of money single men and women save monthly.
The information is summarized next. Assume that the population standard deviations
are equal.
At the .01 significance level, what is the conclusion about the way women and men
save?
A. Reject the null hypothesis and conclude that women save more than men.
B. Reject the null hypothesis and conclude that women and men save the same amount.
C. Fail to reject the null hypothesis.
D. Fail to reject the null hypothesis and conclude the means are different.
Why are unequal class intervals sometimes used in a frequency distribution?
A. To avoid a large number of empty classes
B. For the sake of variety in presenting the data
C. To make the class frequencies smaller
D. To avoid the need for midpoints
The Nielsen Ratings break down the number of people watching a particular television
show by age. What level of measurement is age?
A. Nominal
B. Ordinal
C. Interval
D. Ratio
In the regression equation, what does the letter “b” represent?
A. The Y-intercept
B. The slope of the line
C. Any value of the independent variable that is selected
D. The value of Y when X = 0
The best example of an alternate hypothesis for a global test of a multiple regression
model is ______________.
A. H1: β1 = β2 = β3 = β4 = 0
B. H1: β1 ≠ β2 ≠ β3 ≠ β4 ≠ 0
C. H1: Not all the β’s are equal to 0.
D. If F is less than 20.00, then fail to reject.
In a management trainee program, 80% of the trainees are female, 20% male. A total of
90% of the females attended college, while 78% of the males attended college. A
management trainee is selected at random. What is the probability that the person
selected is a female who did attend college?
A. P (female) P (did not attend college | female)
B. P (did attend college) P (female | did not attend college)
C. P (female) P (did attend college | female)
D. P (did attend college)
A new extended-life light bulb has an average life of 750 hours, with a standard
deviation of 50 hours. If the life of these light bulbs approximates a normal distribution,
about what percent of the distribution will be between 600 hours and 900 hours?
A. 95%
B. 68%
C. 34%
D. 99.47%
Accounting procedures allow a business to evaluate their inventory costs based on two
methods: LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer
evaluated its finished goods inventory (in $000s) for five products with the LIFO and
FIFO methods. To analyze the difference, they computed (FIFO – LIFO) for each
product. Based on the following results, does the LIFO method result in a lower cost of
inventory than the FIFO method?
What is the alternate hypothesis?
A. H1: d = 0
B. H1: d ≠ 0
C. H1: d ≤ 0
D. H1: d > 0
Refer to the following breakdown of responses to a survey of “How confident are you
that you saved enough to retire?”
What type of chart should be used to describe the frequency table?
A. A pie chart
B. A bar chart
C. A histogram
D. A frequency polygon
Chances are 50-50 that a newborn baby will be a girl. For families with five children,
what is the probability that all the children are girls?
A. 0.900
B. 0.031
C. 0.001
D. 0.250
A manufacturer of automobile transmissions uses three different processes.
Management ordered a study of the production costs to see if there is a difference
among the three processes. A summary of the findings is shown next.
In an ANOVA table, what are the degrees of freedom for the treatment source of
variation?
A. 2
B. 3
C. 10
D. 27
What does equal?
A. 640
B. 36
C. 10
D. 120
The average cost of tuition and room and board at small private liberal arts colleges is
reported to be $8,500 per term, but a financial administrator believes that the average
cost is higher. A study conducted using 350 small liberal arts colleges showed that the
average cost per term is $8,745. The population standard deviation is $1,200. Let α =
0.05. What is the p-value for this test?
A. 0.0000
B. 0.0124
C. 0.0500
D. 0.4938
It is claimed that in a bushel of peaches, less than 10% are defective. A sample of 400
peaches is examined and 50 are found to be defective. What is the alternate hypothesis
for a one-sided test?
A. H1: π ≥ 0.10
B. H1: π > 0.10
C. H1: π ≤ 0.10
D. H1: π < 0.10
Which approach to probability assumes that the events are equally likely?
A. Classical
B. Empirical
C. Subjective
D. Mutually exclusive
A research firm needs to estimate within 3% the proportion of junior executives leaving
large manufacturing companies within three years. A 0.95 degree of confidence is to be
used. Several years ago, a study revealed that 21% of junior executives left their
company within three years. To update this study, how many junior executives should
be surveyed?
A. 594
B. 612
C. 709
D. 897
A dot plot can be used to show _________________.
A. The mean, median, and mode
B. The general shape of a distribution for a nominal qualitative variable
C. The distribution for a quantitative variable
D. The interquartile range
The chi-square distribution becomes more symmetrical as the ____________.
A. Number of variables increases
B. The chi-square value increases
C. Degrees of freedom decrease
D. Degrees of freedom increase
In the ANOVA table for a multiple regression analysis, the regression degrees of
freedom is equal to ___________________.
A company wants to study the effect of an employee’s length of employment on their
number of workdays absent. The company collected the following information on a
random sample of seven employees.
What is the dependent variable (Y)?
A probability distribution shows the outcomes of an experiment and the
___________________ of each one occurring.
In a standard normal distribution, = ______ and σ = _____.
In a contingency table, the decision to reject the null hypothesis is based on a
__________ test statistic.
When classes in a frequency table are constructed so that each observation will fit into
only one class, the categories are ______________________.
A ___________ is useful for displaying the relative frequency distribution for a
nominal variable.
A tire manufacturing company is reviewing its warranty for their rainmaker tire. The
warranty is for 40,000 miles. The distribution of tire wear is normally distributed with a
population standard deviation of 15,000 miles. The tire company believes that the tire
actually lasts more than 40,000 miles. A sample of 49 tires revealed that the mean
number of miles is 45,000 miles. What is H1:?
If the coefficient of correlation is 0.80, the coefficient of determination is _____.
A population consists of 12 values. How many samples of size six are possible?
Two events are called _________ when the occurrence of one event does not affect the
occurrence of the other event.
If a hypothesis states that one population mean is greater than another population mean,
then the test is _______________.
When computing a weighed mean, the denominator is always __________.
A manufacturer claims that less than 1% of all its products do not meet the minimum
government standards. A survey of 500 products revealed that 10 did not meet the
standard. Thus, if α = .01, the critical value is ____________.
A statistics professor wants to compare grades in two different classes of the same
course. This is an example of _________ populations.