The manager of Paul’s fruit and vegetable store is considering the purchase of a new
seedless watermelon from a wholesale distributor. Since this seedless watermelon costs
$4, will sell for $7, and is highly perishable, he only expects to sell between six and
nine of them. If the merchant purchases eight watermelons, the minimum opportunity
loss occurs when the demand is how many units?
A. 6
B. 7
C. 8
D. 9
In the least squares equation, Ŷ = 10 + 20X, the value of 20 indicates ____________.
A. The Y-intercept increases by 20 units for each unit increase in X
B. That Y increases by 20 units for each unit increase in X
C. That X increases by 20 units for each unit increase in Y
D. The error in prediction
Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are
shown next.
What is the interpretation of the value index?
A. Value rose 28.8%.
B. Value rose 15.6%.
C. Value rose 17.5%.
D. Value rose 20.0%.
The following trend equation is for a manufacturer of women’s purses (in millions of
purses) based on six years of quarterly data.
Ŷ = 2.15 + 1.32t
The following table provides the seasonal factors for each quarter.
The seasonally adjusted forecast for the second quarter of the fifth year is _______.
A. 25.91
B. 15.35
C. 29.15
D. 6.8
The following is a binomial probability distribution with n = 3 and π = 0.20.
The mean of the distribution is _______.
A. 1.50
B. 0.60
C. 0.25
D. 0.00
A new machine used in the production of motor mount bolts was put into operation.
Five samples of size 100 were randomly selected and the number of defectives in each
sample was noted.
What is the lower control limit (LCL)?
A. 0%
B. -2.2%
C. 4.8%
D. 1.6%
To test the null hypothesis that a set of sample data is normally distributed, we compare
an expected normal distribution of the data to an observed distribution of the data.
A sample of experienced typists revealed that their mean typing speed is 87 words per
minute and the median typing speed is 73 words per minute. The standard deviation of
typing speed is 16.9 words per minute. What is the Pearson coefficient of skewness?
A. -2.5
B. -4.2
C. +4.2
D. +2.5
What is the only variable in the Poisson probability formula?
A. π
B. x
C. e
D. P
The following are the ratings (0 to 4) given by 12 individuals for two possible new
flavors of soft drinks.
Wilcoxon rank-sum is to be used.
What is W, if flavor #1 is identified as population 1?
A. 153
B. 156
C. 144
D. 139
The national sales manager for “I colored this” (ICT) T-shirts provides all salespersons
with the following opportunity loss table showing the potential lost profit for each
purchase decision or act from one to four dozen T-shirts. The probability of demand for
each state of nature is also shown.
What is the expected opportunity loss of purchasing four dozen T-shirts?
A. 84
B. 108
C. 156
D. 204
A gumball machine has just been filled with 50 black, 150 white, 100 red, and 100
yellow gumballs that have been thoroughly mixed. Sue and Jim each purchase one
gumball. What is the likelihood that both Sue and Jim will get red gumballs?
A. 0.50
B. 0.062
C. 0.33
D. 0.75
A new machine used in the production of motor mount bolts was put into operation.
Five samples of size 100 were randomly selected and the number of defectives in each
sample was noted.
What is the average percent defective?
A. 2.0%
B. 2.3%
C. 2.6%
D. 2.9%
A dot plot is useful for showing the range of the data.
A sample of the paramedical fees charged by clinics revealed these amounts: $55, $49,
$50, $45, $52, and $55. What is the median charge?
A. $47.50
B. $51.00
C. $52.00
D. $55.00
Giorgio offers the person who purchases an 8-ounce bottle of Allure two free gifts,
chosen from the following: an umbrella, a 1-ounce bottle of Midnight, a feminine
shaving kit, a raincoat, or a pair of rain boots. If you purchased Allure, what is the
probability you randomly selected an umbrella and a shaving kit in that order?
A. 0.00
B. 1.00
C. 0.05
D. 0.20
The proportion of the area under a normal curve that is to the right of z = -1.21 is
_______.
In a frequency distribution, the class with the largest number of observations is called
the ___________.
The maximax strategy is an ________ strategy for decision making.
A financial planner wants to compare the yield of income and growth mutual funds.
Fifty thousand dollars is invested in each of a sample of 35 income and 40 growth
funds. The mean increase for a two-year period for the income funds is $900. For the
growth funds, the mean increase is $875. Income funds have a sample standard
deviation of $35; growth funds have a sample standard deviation of $45. Assume that
the population standard deviations are equal.
At the 0.05 significance level, is there a difference in the mean yields of the two funds?
What is the computed value of the test statistic?
A cell phone salesperson has kept records on the customers who visited his store. Forty
percent of the customers who visited the store were female. Furthermore, the data show
that 35% of the females who visited his store purchased a cell phone, while 20% of the
males who visited his store purchased a cell phone. Let A1 represent the event that a
customer is a female, A2 represent the event that a customer is a male, and B represent
the event that a customer will purchase a phone.
What is the probability that a female customer will purchase a cell phone?