Management 484 Test 1 | Course Paper

Unlock access to all the studying documents.

View Full Document

True or False: TABLE 17-10

Given below are results from the regression analysis where the dependent variable is

the number of weeks a worker is unemployed due to a layoff (Unemploy) and the

independent variables are the age of the worker (Age), the number of years of education

received (Edu), the number of years at the previous job (Job Yr), a dummy variable for

marital status (Married: 1 = married, 0 = otherwise), a dummy variable for head of

household (Head: 1 = yes, 0 = no) and a dummy variable for management position

(Manager: 1 = yes, 0 = no). We shall call this Model 1. The coefficient of partial

determination ( ) of each of the 6 predictors are, respectively,

0.2807, 0.0386, 0.0317, 0.0141, 0.0958, and 0.1201.

Model 2 is the regression analysis where the dependent variable is Unemploy and the

independent variables are Age and Manager. The results of the regression analysis are

given below:

Referring to Table 17-10, Model 1, the null hypothesis H0 : Î²1 = Î²2= Î²3 = Î²4 = Î²5 = Î²6

= 0 implies that the number of weeks a worker is unemployed due to a layoff is not

affected by any of the explanatory variables.

TABLE 14-11

A weight-loss clinic wants to use regression analysis to build a model

for weight loss of a client (measured in pounds). Two variables

thought to a”ect weight loss are client’s length of time on the

weight-loss program and time of session. These variables are

described below:

Y = Weight loss (in pounds)

X1 = Length of time in weight-loss program (in months)

X2 = 1 if morning session, 0 if not

Data for 25 clients on a weight-loss program at the clinic were

collected and used to ,t the interaction model:

Y = Î²0 + Î²1X1 + Î²2X2 + Î²3X1X2 + Îµ

Output from Microsoft Excel follows:

True or False: Referring to Table 14-11, the overall model for

predicting weight loss (Y) is statistically signi,cant at the 0.05 level.

TABLE 8-11

A poll was conducted by the marketing department of a video game company to

determine the popularity of a new game that was targeted to be launched in three

months. Telephone interviews with 1,500 young adults were conducted which revealed

that 49% said they would purchase the new game. The margin of error was 3

percentage points.

True or False: Referring to Table 8-11, the sampling error is 3%.

TABLE 11-5

A hotel chain has identically small sized resorts in 5 locations in different small islands.

The data that follow resulted from analyzing the hotel occupancies on randomly

selected days in the 5 locations.

Analysis of Variance

* or p < 0.005, tabular value

True or False: Referring to Table 11-5, the total mean squares is 261.90.

TABLE 14-17

Given below are results from the regression analysis where the

dependent variable is the number of weeks a worker is unemployed

due to a layo” (Unemploy) and the independent variables are the age

of the worker (Age) and a dummy variable for management position

(Manager: 1 = yes, 0 = no).

The results of the regression analysis are given below:

True or False: Referring to Table 14-17, the null hypothesis should be

rejected at a 10% level of signi,cance when testing whether age has

any e”ect on the number of weeks a worker is unemployed due to a

layo” while holding constant the e”ect of the other independent

variable.

The variation attributable to factors other than the relationship between the independent

variables and the explained variable in a regression analysis is represented by

A) regression sum of squares.

B) error sum of squares.

C) total sum of squares.

D) regression mean squares.

TABLE 12-12

Parents complain that children read too few storybooks and watch too much television

nowadays. A survey of 1,000 children reveals the following information on average

time spent watching TV and average time spent reading storybooks.

Referring to Table 12-12, if the null hypothesis of no connection between time spent

watching TV and time spent reading story books is true, how many children watching

less than 2 hours of TV and reading no more than 2 hours of story books on average can

we expect?

A) 35.69

B) 227.23

C) 262.91

D) 969.75

Private colleges and universities rely on money contributed by individuals and

corporations for their operating expenses. Much of this money is put into a fund called

an endowment, and the college spends only the interest earned by the fund. A recent

survey of 8 private colleges in the United States collected information on the

endowment amount. Based on this information, which of the following will you

construct to learn about the mean endowment of all private colleges in the United

States?

A) Confidence interval estimate for the total using the Student’s t distribution

B) Confidence interval estimate for the mean using the Student’s t distribution

C) Confidence interval estimate for the proportion using the standard normal

distribution

D) Confidence interval estimate for the difference between two means using the

standard normal distribution

Which of the following components in an ANOVA table are not additive?

A) Sum of squares

B) Degrees of freedom

C) Mean squares

D) It is not possible to tell.

TABLE 18-2

A political pollster randomly selects a sample of 100 voters each day for 8 successive

days and asks how many will vote for the incumbent. The pollster wishes to construct a

p chart to see if the percentage favoring the incumbent candidate is too erratic.

Referring to Table 18-2, what is the numerical value of the lower control limit for the p

chart?

A) 0.37

B) 0.41

C) 0.50

D) 0.71

TABLE 11-10

An agronomist wants to compare the crop yield of 3 varieties of chickpea seeds. She

plants all 3 varieties of the seeds on each of 5 different patches of fields. She then

measures the crop yield in bushels per acre. Treating this as a randomized block design,

the results are presented in the table that follows.

Referring to Table 11-10, the null hypothesis for the randomized block F test for the

difference in the means is

A) H0 : Field1 = Field2 = Field3 = Field4 = Field5

B) H0 : Smith = Walsh = Trevor

C) H0 : MField1 = MField2 = MField3 = MField4 = MField5

D) H0 : MSmith = MWalsh = MTrevor

TABLE 17-2

One of the most common questions of prospective house buyers pertains to the cost of

heating in dollars (Y). To provide its customers with information on that matter, a large

real estate firm used the following 4 variables to predict heating costs: the daily

minimum outside temperature in degrees of Fahrenheit (X1), the amount of insulation in

inches (X2), the number of windows in the house (X3), and the age of the furnace in

years (X4). Given below are the EXCEL outputs of two regression models.

Referring to Table 17-2, what is your decision and conclusion for the test H0 : Î²2 = 0

vs. H1 : Î²2 < 0 at the Î± = 0.01 level of significance using Model 1?

A) Do not reject H0 and conclude that the amount of insulation has a linear effect on

heating cots.

B) Reject H0 and conclude that the amount of insulation does not have a linear effect on

heating costs.

C) Reject H0 and conclude that the amount of insulation has a negative linear effect on

heating costs.

D) Do not reject H0 and conclude that the amount of insulation has a negative linear

effect on heating costs.

The probability that a new advertising campaign will increase sales is assessed as being

0.80. The probability that the cost of developing the new ad campaign can be kept

within the original budget allocation is 0.40. Assuming that the two events are

independent, the probability that the cost is kept within budget and the campaign will

increase sales is

A) 0.20.

B) 0.32.

C) 0.40.

D) 0.88.

TABLE 12-12

Parents complain that children read too few storybooks and watch too much television

nowadays. A survey of 1,000 children reveals the following information on average

time spent watching TV and average time spent reading storybooks.

Referring to Table 12-12, to test whether there is any relationship between average time

spent watching TV and average time spent reading story books, the value of the

measured test statistic is

A) -12.59.

B) 1.61.

C) 481.49.

D) 1,368.06.

Whenever = 0.1 and n is small, the binomial distribution will be

A) symmetric.

B) right-skewed.

C) left-skewed.

D) None of the above.

TABLE 1-2

A Wall Street Journal poll asked 2,150 adults in the United States a series of questions

to find out their view on the U.S. economy.

Referring to Table 1-2, the possible responses to the question “In which year do you

think the last recession in the United States started?” are values from a

A) discrete numerical variable.

B) continuous numerical variable.

C) categorical variable.

D) table of random numbers.

The ________ curve represents the expected monetary value approach.

A) risk averter’s

B) risk taker’s

C) risk neutral

D) Bernoulli

TABLE 11-11

A student team in a business statistics course designed an experiment to investigate

whether the brand of bubblegum used affected the size of bubbles they could blow. To

reduce the person-to-person variability, the students decided to use a randomized block

design using themselves as blocks.

Four brands of bubblegum were tested. A student chewed two pieces of a brand of gum

and then blew a bubble, attempting to make it as big as possible. Another student

measured the diameter of the bubble at its biggest point. The following table gives the

diameters of the bubbles (in inches) for the 16 observations.

Referring to Table 11-11, what is the null hypothesis for testing the block effects?

A) H0 : A = B = C = D

B) H0 : Kyle = Sarah = Leigh = Isaac

C) H0 : MA = MB = MC = MD

D) H0 : MKyle = MSarah = MLeigh = MIsaac

An entrepreneur is considering the purchase of a coin-operated laundry. The current

owner claims that over the past 5 years, the mean daily revenue was $675 with a

population standard deviation of $75. A sample of 30 days reveals a daily mean revenue

of $625. If you were to test the null hypothesis that the daily mean revenue was $675

and decide not to reject the null hypothesis, what can you conclude?

A) There is not enough evidence to conclude that the daily mean revenue was $675.

B) There is not enough evidence to conclude that the daily mean revenue was not $675.

C) There is enough evidence to conclude that the daily mean revenue was $675.

D) There is enough evidence to conclude that the daily mean revenue was not $675.

Referring to Table 14-15, which of the following is the correct

alternative hypothesis to test whether mean teacher salary has any

e”ect on percentage of students passing the pro,ciency test, taking

into account the e”ect of instructional spending per pupil?

TABLE 14-15

The superintendent of a school district wanted to predict the

percentage of students passing a sixth-grade pro,ciency test. She

obtained the data on percentage of students passing the pro,ciency

test (% Passing), mean teacher salary in thousands of dollars

(Salaries), and instructional spending per pupil in thousands of dollars

(Spending) of 47 schools in the state.

Following is the multiple regression output with Y = % Passing as the

dependent variable, X1 = Salaries and X2 = Spending:

A) H1 : Î²0 â‰ 0

B) H1 : Î²1 â‰ 0

C) H1 : Î²2 â‰ 0

D) H1 : Î²3 â‰ 0

TABLE 12-12

Parents complain that children read too few storybooks and watch too much television

nowadays. A survey of 1,000 children reveals the following information on average

time spent watching TV and average time spent reading storybooks.

Referring to Table 12-12, suppose we want to constrain the probability of committing a

Type I error to 5% when testing whether there is any relationship between average time

spent watching TV and average time spent reading story books, the critical value will be

A) 5.991.

B) 7.378.

C) 12.592.

D) 14.449.

To gather information on the preferences of instructors at universities on topics for a

business statistics textbook that it will publish, a publishing company invited 10 faculty

members who have adopted one of the textbooks that it has published. This is an

example of a

A) systematic sample.

B) judgment sample.

C) simple random sample.

D) stratified sample.

A survey of 150 executives were asked what they think is the most common mistake

candidates make during job interviews. Six different mistakes were given. Which of the

following is the best for presenting the information?

A) a bar chart.

B) a histogram

C) a stem-and-leaf display

D) a contingency table

TABLE 17-10