The standard error of the mean is also called the sampling error.
In the numerator of a value index, the price and quantity are both from the current
period.
A survey of 50 retail stores revealed that the average price of a microwave was $375,
with a sample standard deviation of $20. Assuming the population is normally
distributed, what is the 95% confidence interval to estimate the
A joint probability measures the likelihood that two or more events will happen
concurrently.
The variance is the mean of the sum of the squared deviations between each
observation and the median.
When data is collected using a quantitative, ratio variable, what is TRUE about a
frequency distribution that summarizes the data?
A. Upper and lower class limits must be calculated.
B. A pie chart can be used to summarize the data.
C. The number of classes is equal to the number of variable’s values.
D. The “5 to the k rule” can be applied.
An interval estimate is a range of values used to estimate a population parameter.
When deciding to collect sample information rather than collecting information from
the population, the amount of time required to collect the information is unimportant.
Which of the following is TRUE regarding the normal distribution?
A. The mean, median, and mode are all equal.
B. It has two modes.
C. It is asymmetrical.
D. The points of the curve meet the x-axis at z = -3 and z = 3.
If a distribution is negatively skewed, the distribution is not symmetrical and the long
tail is to the left.
To apply the normal approximation to a binomial distribution, what must be
A relationship between two nominal variables is summarized by a contingency table.
A survey of 50 retail stores revealed that the average price of a microwave was $375,
with a sample standard deviation of $20. If 90% and 95% confidence intervals were
developed to estimate the
If the sampling distribution of the sample means approximates a normal distribution,
then the population is normally distributed.
A z statistic is used for a problem involving any sample size and an unknown
population standard deviation.
A fishbone diagram is used to determine if a process is out of control.
A diagnostic chart used to identify sources of variation, where the number and types of
defects are tallied, is referred to as a(n):
A. fishbone diagram.
B. X-bar chart.
C. Pareto chart.
D. process control chart.
To calculate monthly typical seasonal indexes, after computing the ratio-to-moving
averages, the averages must be:
A. divided by 12.
B. multiplied by 12.
C. summed and divided by 2.
D. summed and divided by 12.
According to the central limit theorem, _______________.
A. sample size is important when the population is not normally distributed
B. increasing the sample size decreases the dispersion of the sampling distribution
C. the sampling distribution of the sample means is uniform
D. the sampling distribution of the sample means will be skewed
The number of students at a local university increased from 2,500 students to 5,000
students in 10 years. Based on a geometric mean, the university grew at an average
percentage rate of
A. 2,500 students per year.
B. 1.071 percent per year.
C. 7.1 percent per year.
D. 250 students per year.
Using the following information:
Estimate the value of Ŷ when X = 4.
A. 10.45
B. 3.73
C. 8.718
D. -4.092
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
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 value of perfect information?
A. $1.00
B. $0.998
C. $1.998
D. Cannot be computed
Recently, students in a marketing research class were interested in the driving behavior
of students. Specifically, the marketing students were interested in finding out if
exceeding the speed limit was related to social activity. They collected the following
responses from 100 randomly selected students:
Based on the analysis, what can be concluded?
A. Driving behavior and gender are correlated.
B. Driving behavior and gender are not related.
C. Driving behavior and gender are related.
D. No conclusion is possible.
A rug manufacturer has decided to use seven compatible colors in her rugs. However, in
weaving a rug, only five spindles can be used. In advertising, the rug manufacturer
wants to indicate the number of different color groupings for sale. How many color
groupings using the seven colors taken five at a time are there? (This assumes that five
different colors will go into each rug’”in other words, there are no repetitions of color.)
A. 7
B. 21
C. 840
D. 42
Outliers are clearly presented in a _____________.
A. Dot plot
B. Stem-and-leaf display
C. Box plot
D. Contingency table
The following table is a:
A. Dot plot
B. Stem-and-leaf display
C. Box plot
D. Contingency table
The forecast for the third quarter is 3,000 units; the seasonal index for the quarter is
1.05. What are the seasonally adjusted sales for the quarter?
A. 3,000
B. 3,005
C. 3,150
D. 2,360
What is the first step in applying the sign test?
A. Rank the paired data from high to low or vice versa.
B. Apply a correction factor to each observation.
C. Determine the sign of difference between each observed pair of data.
D. Determine the number of degrees of freedom.
A tire manufacturer advertises, “the median life of our new all-season radial tire is
50,000 miles. An immediate adjustment will be made on any tire that does not last
50,000 miles.” You purchased four of these tires. What is the probability that all four
tires will wear out before traveling 50,000 miles?
A. 1/10 or 0.10
B. or 0.25
C. 1/64 or 0.0156
D. 1/16 or 0.0625
A box plot shows ___________.
A. The mean and variance
B. The relative symmetry of a distribution for a set of data
C. The 10th and 90th percentiles of a distribution
D. The deciles of a distribution
The forecast for the third quarter is 2,000 units; the seasonal index for the quarter is
0.79. What are the seasonally adjusted sales for the quarter?
A. 1,921
B. 1,580
C. 790
D. 1,015
If the Consumer Price Index in June 2006 was about 202.9 (1982-84 = 100), what was
the purchasing power of the dollar?
A. $1.00
B. $0.33
C. $0.58
D. $0.49
Use the following table to determine whether or not there is a significant difference
between the average hourly wages at two manufacturing companies.
What is the point estimate of the difference between the means?
A. 15
B. 0.4
C. 0.8
D. -9
Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown
next.
What is Fisher’s ideal index?
A. 112.33
B. 179.08
C. 111.97
D. 109.36
For the third quarter, the sales are 1,000 units; the seasonal index for the quarter is 1.10.
What are the deseasonalized sales for the quarter?
A. 1,000
B. 1,100
C. 909
D. 0.90
A hypothesis test that rho is zero is conducted at the 5% level of significance. If
Spearman’s (rho) is 0.75 for a sample of 15 observations, what is the computed value of
the t statistic?
A. 0.456
B. 4.088
C. 4.391
D. 2.236
A population consists of 15 values. How many samples of size 10 are possible?
A telemarketing firm is monitoring the performance of its employees based on the
number of sales per hour. One employee had the following sales for the last 19 hours.
What is the third quartile for the distribution of number of sales per hour?
Another name for the unweighted method of computing an index is the
_________________.
For the following probability distribution:
The mean is _____________.
The ________ difference between “before and after” measurements is evaluated in a
sign test.
One difference between the Kruskal-Wallis method and one-way ANOVA is that the
Kruskal-Wallace tests do not require the population ___________ to be the same.