If a penny is tossed four times and comes up heads all four times, the probability of
heads on the fifth trial is
a. zero
b. 1/32
c. 0.5
d. larger than the probability of tails
Sixty percent of the student body at UTC is from the state of Tennessee (T), 30%
percent are from other states (O), and the remainder is international students (I). Twenty
percent of students from Tennessee live in the dormitories, whereas 50% of students
from other states live in the dormitories. Finally, 80% of the international students live
in the dormitories.
a. What percentage of UTC students live in the dormitories?
b. Given that a student lives in the dormitory, what is the probability that she/he is an
international student?
c. Given that a student does not live in the dormitory, what is the probability that she/he
is an international student?
Exhibit 1-1
In a recent study based upon an inspection of 200 homes in Daisy City, 120 were found
to violate one or more city codes.
Refer to Exhibit 1-1. The city manager released a statement that 60% of Daisy City’s
3,000 homes are in violation of city codes. The manager’s statement is an example of
a. a census
b. an experiment
c. descriptive statistics
d. statistical inference
Each individual outcome of an experiment is called
a. the sample space
b. a sample point
c. an experiment
d. an individual
Exhibit 5-3
The probability distribution for the number of goals the Lions soccer team makes per
game is given below.
Refer to Exhibit 5-3. What is the probability that in a given game the Lions will score
less than 3 goals?
a. 0.85
b. 0.55
c. 0.45
d. 0.80
The sample variance
a. is always smaller than the true value of the population variance
b. is always larger than the true value of the population variance
c. could be smaller, equal to, or larger than the true value of the population variance
d. can never be zero
The general form of an interval estimate of a population mean or population proportion
is the _____ plus and minus the _____.
a. population mean, standard error
b. level of significance, degrees of freedom
c. point estimate, margin of error
d. planning value, confidence coefficient
In a large university, 75% of students live in the dormitories. A random sample of 5
students is selected.
a. Define the random variable in words for this experiment.
b. What is the probability that the sample contains exactly three students who live in the
dormitories?
c. What is the probability that the sample contains no students who live in the
dormitories?
d. What is the probability that the sample contains more than three students who do not
live in the dormitories?
e. What is the expected number of students (in the sample) who do not live in the
dormitories?
Exhibit 10-11
An insurance company selected samples of clients under 18 years of age and over 18
and recorded the number of accidents they had in the previous year. The results are
shown below.
We are interested in determining if the accident proportions differ between the two age
groups.
Refer to Exhibit 10-11 and let pu represent the proportion under and po the proportion
over the age of 18. The null hypothesis is
a. pu – po 0
b. pu – po 0
c. pu – po 0
d. pu – po = 0
You are given the following information on the quarterly profits for Ajax Corporation.
a. Find the four-quarter centered moving averages.
b. Compute the seasonal-irregular component.
c. Compute the seasonal factors for all four quarters.
d. Represent the deseasonalized series.
Exhibit 8-1
In order to estimate the average time spent on the computer terminals per student at a
local university, data were collected from a sample of 81 business students over a
one-week period. Assume the population standard deviation is 1.2 hours.
Refer to Exhibit 8-1. With a 0.95 probability, the margin of error is approximately
a. 0.26
b. 1.96
c. 0.21
d. 1.64
More evidence against H0 is indicated by
a. lower levels of significance
b. smaller p-values
c. smaller critical values
d. lower probabilities of a Type II error
Which of the following has a chi-square distribution?
a. (n – 1) 2/s2
b. (n – 2) 2/s2
c. (n – 1)s/
d. (n – 1)s2/2
An ANOVA procedure is used for data that was obtained from four sample groups each
comprised of five observations. The degrees of freedom for the critical value of F are
a. 3 and 20
b. 3 and 16
c. 4 and 17
d. 3 and 19
An experiment consists of tossing 4 coins successively. The number of sample points in
this experiment is
a. 16
b. 8
c. 4
d. 2
Quantitative data
a. are always nonnumeric
b. may be either numeric or nonnumeric
c. are always numeric
d. are always labels
Exhibit 6-2
The travel time for a college student traveling between her home and her college is
uniformly distributed between 40 and 90 minutes.
Refer to Exhibit 6-2. What is the random variable in this experiment?
a. the uniform distribution
b. 40 minutes
c. 90 minutes
d. the travel time
Twenty-five percent of the employees of a large company are minorities. A random
sample of 7 employees is selected.
a. Define the random variable in words for this experiment.
b. What is the probability that the sample contains exactly 4 minorities?
c. What is the probability that the sample contains fewer than 2 minorities?
d. What is the probability that the sample contains exactly 1 non-minority?
e. What is the expected number of minorities in the sample?
f. What is the variance of the minorities?
Cluster sampling is
a. a nonprobability sampling method
b. the same as convenience sampling
c. a probability sampling method
d. None of these alternatives is correct.
When a Motorola executive said ‘œThat evaluation is ‘¦. perhaps the most cost-effective,
value-added business consultation available anywhere in the world today’ he was
referring to
a. ISO 9000 standards
b. the Six Sigma philosophy
c. Deming’s 14 Points
d. the Malcolm Baldrige Quality Award
A company has recorded data on the weekly sales for its product (y) and the unit price
of the competitor’s product (x). The data resulting from a random sample of 7 weeks
follows. Use Excel to:
Exhibit 13-2
Refer to Exhibit 13-2. The mean square between treatments equals
a. 288
b. 518.4
c. 1,200
d. 8,294.4
The number of new central air conditioning systems installed by CoolBreeze, Inc. in
each of the last nine years is listed below.
Assuming a linear trend function, forecast the number of system installations
CoolBreeze will perform in 2014 using linear trend regression.
The business manager of a local health clinic is interested in estimating the difference
between the fees for extended office visits in her center and the fees of a newly opened
group practice. She gathered the following information regarding the two offices.
Develop a 95% confidence interval estimate for the difference between the average fees
of the two offices.
Before the rush began for Christmas shopping, a department store had noted that the
percentage of its customers who use the store’s credit card, the percentage of those who
use a major credit card, and the percentage of those who pay cash are the same. During
the Christmas rush in a sample of 150 shoppers, 46 used the store’s credit card; 43 used
a major credit card; and 61 paid cash. With = 0.05, test to see if the methods of
payment have changed during the Christmas rush.
Two employers (A and B) ranked five candidates for a new position. Their rankings of
the candidates are shown below.
Compute the Spearman rank-correlation and test it for significance. Let = 0.05.
One thousand managers with degrees in business administration indicated their fields of
concentration as shown below.
Test at = .01 to determine if the position in management is independent of the major
of concentration.
The weekly earnings of fast-food restaurant employees are normally distributed with a
mean of $395. If only 1.1% of the employees have a weekly income of more than
$429.35, what is the value of the standard deviation of the weekly earnings of the
employees?
To inspect incoming shipments of components, a manufacturer is considering samples
of sizes 12, 15, and 18. Use binomial probabilities to select a sampling plan that
provides a producer’s risk of
= .12 when p0 is .04 and a consumer’s risk of
= .08
when p1 is .25.