One function of the CPI is to allow consumers to determine the degree to which their
purchasing power is being eroded by price increases.
A student scored in the 85th percentile on a standardized test. This means that the
student scored lower than 85% of all students who took the test.
Because the coefficient of determination is expressed as a percent, its value is between
0% and 100%.
If the hypothesis H0: β1 = 0, is rejected, then the sample regression coefficient b1
indicates the change in the predicted value for a unit change in X1 when all other Xi
variables are held constant.
A class interval, or class width, can be determined by subtracting the lower limit of a
class from the lower limit of the next higher class.
The variance of a probability distribution is based on the sum or squared differences
from the mean.
The exponential distribution is a probability distribution for a random variable
measured as a rate of an event occurring.
Assignable causes are usually large in number and random in nature, and they cannot be
entirely eliminated.
Interaction between two factors occurs when the effect of one factor on the response
variable is the same for any value of another factor.
In a stem-and-leaf display, the leaf represents a class of a frequency distribution.
Data measured on a nominal scale can only be classified into categories.
A person is trying to decide if they should buy a lottery ticket. The ticket costs $2.00. If
the ticket is a winner, the prize would be $1,000. Knowing that winning $1,000 is not a
certain outcome (state of nature), the person finds that the probability of winning is
0.001. Based on this information, the following payoff table can be constructed:
What is the expected monetary value of buying the ticket?
A. +$1.00
B. -$0.998
C. +$0.998
D. -$1.998
Twenty-five college seniors were given two brands of organic hamburgers to sample:
Burger A and Burger B. Four students preferred Burger A and 21 preferred Burger B. A
statistician wants to determine if one of the burgers is preferred over the other.
In order to test the null hypothesis, which of the following probability distributions is
used?
A. Poisson
B. Chi-square
C. Standard normal
D. Binomial
For the third quarter, the sales are 2,000 units; the seasonal index for the quarter is 1.15.
What are the deseasonalized sales for the quarter?
A. 1,739
B. 2,015
C. 2,115
D. 115
A coin is tossed four times. The following table summarizes the experiment. What is the
following table called?
A. Probability distribution
B. Cumulative frequency distribution
C. Standard deviation
D. Frequency table
Using the following data, the Wilcoxon signed-rank hypothesis test is used to test the
hypothesis that the test results of a treatment after training are greater than the test
results before the treatment. What is the sum of the ranks?
A. 41
B. 28
C. 19 and -7
D. 6 and 15
The trend forecast equation is Ŷ = 50 + 420t. The next forecast is for period 10. The
typical seasonal index for period 10 is 1.25. What are the forecast sales for period 10?
A. 4,200
B. 4,250
C. 5,313
D. 1,075
In the linear trend equation, Y = a + bt, the coefficient b represents ___________.
A. any value of time that is selected
B. the Y-intercept of the trend line
C. the slope of the trend line
D. the projected value at some point in time
The degrees of freedom for a contingency table with 6 rows and 3 columns is ______.
A. 18
B. 9
C. 10
D. 3
What is the possible range of values for Pearson’s coefficient of skewness?
A. -1 and +1
B. -3 and +3
C. 0% and 100%
D. Unlimited values
Refer to the following breakdown of responses to a survey of room service in a hotel.
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
A quality control chart is used to monitor the customer wait time at a local call center.
Sample means of five times are averaged and plotted over time. The last 50 sample
means are randomly distributed between the upper and lower control limits. The
process is:
A. out of control.
B. in control.
C. improving.
D. showing assignable variation.
A new machine is set or calibrated to fill tubes of toothpaste at precisely 6.75 ounces.
Then, once the machine is running, a sample of six tubes is taken every three hours and
weighed with the following results:
What is the value for the lower control limit (LCL) of the range?
A. 0.00
B. 0.080
C. 0.186
D. 0.203
A manager at a local bank analyzed the relationship between monthly salary and three
independent variables: length of service (measured in months), gender (0 = female, 1 =
male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the
regression results:
Based on the ANOVA, the multiple coefficient of determination is _________.
A. 5.957%
B. 59.3%
C. 40.7%
D. Cannot be computed
A manager at a local bank analyzed the relationship between monthly salary and three
independent variables: length of service (measured in months), gender (0 = female, 1 =
male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the
regression results:
Based on the hypothesis tests for the individual regression coefficients, ____________.
A. All the regression coefficients are not equal to zero
B. “Job” is the only significant variable in the model
C. Only months of service and gender are significantly related to monthly salary
D. “Service” is the only significant variable in the model
Sean McCarthy earns $20,000 a year, while John Nowak earns $35,000. What is John’s
income as an index using Sean’s income as the base?
A. 175.0
B. 75.0
C. 100.0
D. 57.1
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 classified as a maintenance
employee?
A. 0.20
B. 0.50
C. 0.025
D. 1.00
You are given the following information on selected food items:
The Laspeyres price index when the current period is 2013 and the base year is 2006 is
______________.
A. 142.39
B. 135.63
C. 70.23
D. 73.73
When we use a confidence interval to reach a conclusion about the population mean, we
are applying a type of reasoning or logic called __________.
A. descriptive statistics
B. the normal distribution
C. statistical inference
D. graphics
The forecast for the third quarter is 1,000 units; the seasonal index for the quarter is
0.85. What are the seasonally adjusted sales for the quarter?
A. 1,085
B. 850
C. 985
D. 1,015
Since a ski resort does most of its business in the winter, what is the major source of
variation that affects sales?
A. Secular trend
B. Seasonal variation
C. Cyclical effect
D. Episodic effects
What does the coefficient of determination equal if r = 0.89?
A. 0.9412
B. 0.0121
C. 0.7921
D. 0.1100
The seasonal output of a new experimental strain of pepper plants was carefully
weighed. The mean weight per plant is 15.0 pounds, and the standard deviation of the
normally distributed weights is 1.75 pounds. Of the 200 plants in the experiment, how
many produced peppers weighing between 13 and 16 pounds?
A. 100
B. 118
C. 197
D. 53
In an ANOVA problem involving three treatments and 12 observations per treatment,
SSE = 297. The MSE for this scenario is _____.
A. 99
B. 33
C. 19.8
D. 9
A firm offers routine physical examinations as part of a health service program for its
employees. The exams showed that 8% of the employees needed corrective shoes, 15%
needed major dental work, and 3% needed both corrective shoes and major dental work.
What is the probability that an employee selected at random will need either corrective
shoes or major dental work?
A. 0.20
B. 0.25
C. 0.50
D. 1.00
Suppose your annual 2005 salary was $95,000 and your 2010 salary was $125,000.
Assume the annual CPI rose from 177.1 to 215.9 during this period of time.
What was the purchasing power of the dollar in 2005?
The following data was collected comparing car prices and quantity sold (thousands).
Compute the Laspeyres price index to compare car prices in 2010 to 2000.
The weight of a bag of corn chips is normally distributed with a mean of 22 ounces and
a standard deviation of 0.5 ounces. The probability that a bag of corn chips weighs
more than 21 ounces is ____.
The __________________ method is most commonly used to compute typical seasonal
indexes.
Correlation among successive observations of the dependent variable is called
________________.
What is the common purpose of a dot plot and a box plot?
When the CPI determines real income it is called the ___________.
When applying the stepwise regression technique, _________ independent is included
in the first multiple regression model.
The potential loss associated with a future state of nature is called ________________.
For the following probability distribution:
The variance is _____________.