EMBA 876 Final | Course Paper

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True or False: The p chart is a control chart used for monitoring the proportion of items

that meet given specifications.

TABLE 8-9

A university wanted to find out the percentage of students who felt comfortable

reporting cheating by their fellow students. A survey of 2,800 students was conducted

and the students were asked if they felt comfortable reporting cheating by their fellow

students. The results were 1,344 answered “Yes” and 1,456 answered “No.”

True or False: Referring to Table 8-9, the parameter of interest is the total number of

students in the population who feel comfortable reporting cheating by their fellow

students.

True or False: TABLE 17-9

What are the factors that determine the acceleration time (in sec.) from 0 to 60 miles per

hour of a car? Data on the following variables for 171 different vehicle models were

collected:

Accel Time: Acceleration time in sec.

Cargo Vol: Cargo volume in cu. ft.

HP: Horsepower

MPG: Miles per gallon

SUV: 1 if the vehicle model is an SUV with Coupe as the base when SUV and Sedan

are both 0

Sedan: 1 if the vehicle model is a sedan with Coupe as the base when SUV and Sedan

are both 0

The regression results using acceleration time as the dependent variable and the

remaining variables as the independent variables are presented below.

The various residual plots are as shown below.

The coefficient of partial determination ( ) of each of the 5

predictors are, respectively, 0.0380, 0.4376, 0.0248, 0.0188, and 0.0312.

The coefficient of multiple determination for the regression model using each of the 5

variables Xj as the dependent variable and all other X variables as independent variables

( ) are, respectively, 0.7461, 0.5676, 0.6764, 0.8582, 0.6632.

Referring to Table 17-9, the 0 to 60 miles per hour acceleration time of a sedan is

predicted to be 0.6427 seconds higher than that of an SUV.

True or False: TABLE 17-12

The marketing manager for a nationally franchised lawn service company would like to

study the characteristics that differentiate home owners who do and do not have a lawn

service. A random sample of 30 home owners located in a suburban area near a large

city was selected; 15 did not have a lawn service (code 0) and 15 had a lawn service

(code 1). Additional information available concerning these 30 home owners includes

family income (Income, in thousands of dollars), lawn size (Lawn Size, in thousands of

square feet), attitude toward outdoor recreational activities (Attitude 0 = unfavorable, 1

= favorable), number of teenagers in the household (Teenager), and age of the head of

the household (Age).

The Minitab output is given below:

Referring to Table 17-12, there is not enough evidence to conclude that Income makes

a significant contribution to the model in the presence of the other independent

variables at a 0.05 level of significance.

True or False: The answer to the question “What is your favorite color?” is an example

of an ordinal scaled variable.

True or False: CPL > 1 implies that the process mean is more than 3 standard deviations

away from the lower specification limit.

True or False: TABLE 17-5

You worked as an intern at We Always Win Car Insurance Company last summer. You

notice that individual car insurance premiums depend very much on the age of the

individual, the number of traffic tickets received by the individual, and the population

density of the city in which the individual lives. You performed a regression analysis in

EXCEL and obtained the following information:

Referring to Table 17-5, the multiple regression model is significant at a 10% level of

significance.

TABLE 11-8

An important factor in selecting database software is the time required for a user to

learn how to use the system. To evaluate three potential brands (A, B and C) of database

software, a company designed a test involving five different employees. To reduce

variability due to differences among employees, each of the five employees is trained

on each of the three different brands. The amount of time (in hours) needed to learn

each of the three different brands is given below:

Below is the Excel output for the randomized block design:

True or False: Referring to Table 11-8, there is evidence of a significant difference in

the mean amount of time needed to learn Brand A and Brand C at the 5% level of

significance.

TABLE 3-1

Health care issues are receiving much attention in both academic and political arenas. A

sociologist recently conducted a survey of citizens over 60 years of age whose net

worth is too high to qualify for Medicaid. The ages of 25 senior citizens were as

follows:

Referring to Table 3-1, identify which of the following is the correct statement.

A) One fourth of the senior citizens sampled are below 64 years of age.

B) The middle 50% of the senior citizens sampled are between 65.5 and 73.0 years of

age.

C) 25% of the senior citizens sampled are older than 81.5 years of age.

D) All of the above are correct.

TABLE 13-2

A candy bar manufacturer is interested in trying to estimate how sales are influenced by

the price of their product. To do this, the company randomly chooses 6 small cities and

offers the candy bar at different prices. Using candy bar sales as the dependent variable,

the company will conduct a simple linear regression on the data below:

Referring to Table 13-2, what is for these data?

A) 0

B) 1.66

C) 2.54

D) 25.66

According to the Chebyshev rule, at least what percentage of the observations in any

data set are contained within a distance of 2 standard deviations around the mean?

A) 67%

B) 75%

C) 88.89%

D) 95%

TABLE 6-7

A company has 125 personal computers. The probability that any one of them will

require repair on a given day is 0.15.

Referring to Table 6-7, which of the following is one of the properties required so that

the binomial distribution can be used to compute the probability that no more than 2

computers will require repair on a given day?

A) The probability that a computer that will require repair in the morning is the same as

that in the afternoon.

B) The number of computers that will require repair in the morning is independent of

the number of computers that will require repair in the afternoon.

C) The probability that any one of the computers that will require repair on a given day

will not affect or change the probability that any other computers that will require repair

on the same day.

D) The probability that two or more computers that will require repair in a given day

approaches zero.

TABLE 6-1

The number of column inches of classified advertisements appearing on Mondays in a

certain daily newspaper is normally distributed with a population mean of 320 and a

population standard deviation of 20 inches.

Referring to Table 6-1, a single Monday is chosen at random. State in which of the

following ranges the number of column inches of classified advertisement is most likely

to be

A) 300-320.

B) 310-330.

C) 320-340.

D) 330-350.

TABLE 1-3

The manager of the customer service division of a major consumer electronics company

is interested in determining whether the customers who have purchased a Blu-ray

player made by the company over the past 12 months are satisfied with their products.

Referring to Table 1-3, which of the following questions in the survey will not likely

induce a measurement error?

A) How many times have you illegally copied copyrighted sporting events?

B) What is your exact annual income?

C) How many times have you brought the Blu-ray player back for service?

D) How many times have you failed to set the time on the Blu-ray player?

TABLE 1-3

The manager of the customer service division of a major consumer electronics company

is interested in determining whether the customers who have purchased a Blu-ray

player made by the company over the past 12 months are satisfied with their products.

Referring to Table 1-3, the manager decides to ask a sample of customers, who have

bought a Blu-ray player made by the company and filed a complaint over the past year,

to fill in a survey about whether they are satisfied with the product. This method will

most likely suffer from

A) nonresponse error.

B) measurement error.

C) coverage error.

D) non-probability sampling.

If you want to recover the trend using exponential smoothing, you will choose a weight

(W) that falls in the range

A) [0,0.2].

B) [0.2,0.4].

C) [0.6,0.8].

D) [0.9,1.0].

A supplier of silicone sheets for producers of computer chips wants to evaluate her

manufacturing process. She takes sample sizes of 5 from each day’s output and counts

the number of blemishes on each silicone sheet for 20 days consecutive days. Which of

the following would be the most appropriate analysis to perform?

A) Autoregressive modeling

B) Exponential smoothing

C) Multiple linear regression

D) Construct a c chart

The portfolio expected return of two investments

A) will be higher when the covariance is zero.

B) will be higher when the covariance is negative.

C) will be higher when the covariance is positive.

D) does not depend on the covariance.

TABLE 4-2

An alcohol awareness task force at a Big-Ten university sampled 200 students after the

midterm to ask them whether they went bar hopping the weekend before the midterm or

spent the weekend studying, and whether they did well or poorly on the midterm. The

following result was obtained.

Referring to Table 4-2, the events “Did Well on Midterm” and “Did Poorly on Midterm”

are

A) dependent.

B) mutually exclusive.

C) collectively exhaustive.

D) All of the above.

If a categorical independent variable contains 4 categories, then ________ dummy

variable(s) will be needed to uniquely represent these categories.

A) 1

B) 2

C) 3

D) 4

TABLE 12-1

A corporation randomly selects 150 salespeople and finds that 66% who have never

taken a self-improvement course would like such a course. The firm did a similar study

10 years ago in which 60% of a random sample of 160 salespeople wanted a

self-improvement course. The groups are assumed to be independent random samples.

Let and represent the true proportion of workers who would like to attend a

self-improvement course in the recent study and the past study, respectively.

Referring to Table 12-1, what is the critical value when testing whether the population

proportions are different if = 0.10?

A) 1.645

B) 1.96

C) 3.842

D) 2.706

Which of the following methods should not be used for short-term forecasts into the

future?

A) Exponential smoothing

B) Moving averages

C) Linear trend model

D) Autoregressive modeling

An airline wants to select a computer software package for its reservation system. Four

software packages (1, 2, 3, and 4) are commercially available. An experiment is set up

in which each package is used to make reservations for 5 randomly selected weeks and

data on the number of passengers that are bumped over a month are collected. (A total

of 20 weeks was included in the experiment.) The variance on the number of passengers

that are bumped is found to be roughly the same for the 4 packages. Which of the

following tests will be the most appropriate to find out if the mean number of

passengers being bumped over a month is the same across the 4 packages?

A) Paired t test

B) Pooled-variance t test

C) One-way ANOVA F test for differences among more than two means

D) Two-way ANOVA F test for interaction effect

A physician and president of a Tampa Health Maintenance Organization (HMO) are

attempting to show the benefits of managed health care to an insurance company. The

physician believes that certain types of doctors are more cost-effective than others. To

investigate this, the president obtained independent random samples of 20 HMO

physicians from each of 4 primary specialties – General Practice (GP), Internal

Medicine (IM), Pediatrics (PED), and Family Physicians (FP) – and recorded the total

charges per member per month for each. A second variable which the president believes

influences total charges per member per month is whether the doctor is a foreign or

USA medical school graduate. To investigate this, the president also collected data on

20 foreign medical school graduates in each of the 4 primary specialty types described

above. Altogether, information on charges for 40 doctors (20 foreign and 20 USA

medical school graduates) was obtained for each of the 4 specialties. Which of the

following tests will be the most appropriate to find out if the primary specialty and the

origin of medical school degree interact to affect the charges?

A) Tukey-Kramer multiple comparisons procedure for one-way ANOVA

B) One-way ANOVA F test for differences among more than two means

C) One-way ANOVA F test for interaction effect

D) Two-way ANOVA F test for interaction effect

TABLE 9-9

The president of a university claimed that the entering class this year appeared to be

larger than the entering class from previous years but their mean SAT score is lower

than previous years. He took a sample of 20 of this year’s entering students and found

that their mean SAT score is 1,501 with a standard deviation of 53. The university’s

record indicates that the mean SAT score for entering students from previous years is

1,520. He wants to find out if his claim is supported by the evidence at a 5% level of

significance.

Referring to Table 9-9, the parameter the president is interested in is

A) the mean number of entering students to his university this year.

B) the mean number of entering students to all U.S. universities this year.

C) the mean SAT score of the entering students to his university this year.

D) the mean SAT score of the entering students to all U.S. universities this year.

The amount of juice that can be squeezed from a randomly selected orange out of a box

of oranges with approximately the same size can most likely be modeled by which of

the following distributions?

A) Uniform distribution

B) Poisson distribution

C) Normal distribution

D) Exponential distribution

The difference between expected payoff under certainty and expected value of the best

act without certainty is the

A) expected monetary value.

B) expected net present value.

C) expected value of perfect information.

D) expected rate of return.

A manager of the credit department for an oil company would like to determine whether

the mean monthly balance of credit card holders is equal to $75. An auditor selects a

random sample of 100 accounts and finds that the mean owed is $83.40 with a sample

standard deviation of $23.65. If you were to conduct a test to determine whether the

auditor should conclude that there is evidence that the mean balance is different from

$75, which test would you use?

A) Z test of a population mean

B) Z test of a population proportion

C) t test of population mean

D) t test of a population proportion

TABLE 16-4

The number of cases of merlot wine sold by a Paso Robles winery in an 8-year period

follows.

Referring to Table 16-4, exponential smoothing with a weight or smoothing constant of

0.2 will be used to forecast wine sales. The forecast for 2013 is ________.

Referring to Table 14-19, what is the estimated odds ratio for a home

owner with a family income of $50,000 and a lawn size of 5,000

square feet?

TABLE 14-19

The marketing manager for a nationally franchised lawn service

company would like to study the characteristics that differentiate

home owners who do and do not have a lawn service. A random

sample of 30 home owners located in a suburban area near a large

city was selected; 11 did not have a lawn service (code 0) and 19 had

a lawn service (code 1). Additional information available concerning

these 30 home owners includes family income (Income, in thousands

of dollars) and lawn size (Lawn Size, in thousands of square feet).

The PHStat output is given below:

TABLE 12-3

The director of transportation of a large company is interested in the usage of her van

pool. She considers her routes to be divided into local and non-local. She is particularly

interested in learning if there is a difference in the proportion of males and females who

use the local routes. She takes a sample of a day’s riders and finds the following:

She will use this information to perform a chi-square hypothesis test using a level of

significance of 0.05.

Referring to Table 12-3, the expected cell frequency in the Female/Non-Local cell is

________.

TABLE 17-12