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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. Based on a maximin decision strategy, what alternative is selected?
A. Order 6
B. Order 7
C. Order 8
D. Order 9
The average cost of tuition plus room and board at small private liberal arts colleges is
reported to be $8,500 per term, but a financial administrator believes that the average
cost is higher. A study conducted using 350 small liberal arts colleges showed that the
average cost per term is $8,745. The population standard deviation is $1,200. Let α =
0.05. What is the p-value for this test?
A. 0.0000
B. 0.0124
C. 0.0500
D. 0.4938
A group of statistics students decided to conduct a survey at their university to find the
average (mean) amount of time students spent studying per week. They sampled 240
students and found a mean of 22.3 hours per week. Assuming a population standard
deviation of six hours, what is the 99% level of confidence?
A. [21.80, 22.80]
B. [16.3, 28.3]
C. [21.30, 23.30]
D. [20.22, 22.0]
Probabilities are important information when __________.
A. Summarizing a data set with a frequency chart
B. Applying descriptive statistics
C. Computing cumulative frequencies
D. Using inferential statistics
The preferred method used to smooth the trend in a time series is called a
____________.
A. weighted moving average
B. moving average
C. linear trend
D. deseasonalized adjustment
Which approach to probability is exemplified by the following formula?
A. The classical approach
B. The empirical approach
C. The subjective approach
D. None of these.
Consider the following regression analysis between sales (Y in $1,000) and social
media advertising (X in dollars).
= 55,000 + 7X
The regression equation implies that an:
A. increase of $7 in advertising is associated with an increase of $7,000 in sales.
B. increase of $1 in advertising is associated with an increase of $7 in sales.
C. increase of $1 in advertising is associated with an increase of $62,000 in sales.
D. increase of $1 in advertising is associated with an increase of $7,000 in sales.
The wholesale price of a straight back desk chair in 2004 was $70; in 2005, $80.50; and
in 2006, $63. What were the indexes for 2005 and 2006 using 2004 = 100?
A. 115.0 and 90.0
B. 1.15 and 0.9
C. 1150.0 and 900.0
D. 87.0 and 111.1
When testing for differences between treatment means, a confidence interval is
computed with __________________.
A. the mean square error
B. the standard deviation
C. the sum of squared errors
D. the standard error of the mean
An experiment may have ____________.
A. only one outcome
B. only two outcomes
C. one or more outcomes
D. several events
Which probability distribution is used to develop an operating characteristic curve?
A. Normal distribution
B. Chi-square distribution
C. Poisson distribution
D. Binomial distribution
Based on the Nielsen ratings, the local CBS affiliate claims its 11 p.m. newscast reaches
41% of the viewing audience in the area. In a survey of 100 viewers, 36% indicated that
they watch the late evening news on this local CBS station. What is the z test statistic?
A. 1.02
B. 1.22
C. -1.02
D. -1.22
The mean weight of newborn infants at a community hospital is 6.6 pounds. A sample
of seven infants is randomly selected and their weights at birth are recorded as 9.0, 7.3,
6.0, 8.8, 6.8, 8.4, and 6.6 pounds. Does the sample data show a significant increase in
the average birthrate at a 5% level of significance?
A. Fail to reject the null hypothesis and conclude the mean is 6.6 lb.
B. Reject the null hypothesis and conclude the mean is lower than 6.6 lb.
C. Reject the null hypothesis and conclude the mean is greater than 6.6 lb.
D. Cannot calculate because the population standard deviation is unknown.
What is the variable used to predict another variable called?
A. Independent variable
B. Dependent variable
C. Important variable
D. Causal variable
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. What is the payoff value for the purchase of seven watermelons when the
demand is for seven or more watermelons?
A. 18
B. 21
C. 24
D. 42
If the least squares equation for sales data going from 2004 to 2008 is Ŷ = 10 + 1.3t (in
$millions), what is the value of t and the forecast for 2010?
A. t = 6, Ŷ = 17.8
B. t = 0, Ŷ = 10.0
C. t = 7, Ŷ = 19.1
D. t = 10, Ŷ = 0.0
Which one of the following is referred to as the population mean?
A.
B. s
C. σ
D. χ
When an experiment is conducted "without replacement," __________.
A. Events are dependent
B. Events are equally likely
C. The experiment can be illustrated with a Venn diagram
D. The probability of two or more events is computed as a joint probability
How is the purchasing power of the dollar computed?
A. ($1/CPI) (100)
B. ($1 - CPI) (100)
C. ($1 * CPI) (100)
D. (CPI/$1) (100)
A fishbone diagram classifies potential causes into categories. What are they?
A. Chance and assignable variation
B. Methods, materials, equipment, and personnel
C. Percent defective and percent non-defective
D. Causes and effects
Using the following statistics to describe a distribution of data, what is the interquartile
range?
Minimum = 10
Q1 = 25
Median = 50
Q3 = 75
Maximum = 95
A. 85
B. 50
C. 15
D. 20
A pie chart shows the ______________________.
A. Relative frequencies of a qualitative variable
B. Relative frequencies of a quantitative variable
C. Frequencies of a nominal variable
D. Frequencies of a ratio variable
A variable that can assume only one of two possible outcomes that take on the values of
either 0 or 1, and is used to incorporate the effect of qualitative variables in a regression
model is referred to as ________.
A. a dummy variable
B. a constant endogenous variable
C. an interaction
D. a constant
When the order of a set of objects selected from a single group is important, this is
called ________.
Sugar is packaged in 16-ounce bags. If 42 bags are sampled, with a mean of 15.95
ounces and a standard deviation of 0.4 ounces, what is the 99% confidence interval
estimate of the population mean?
What-statistic is used to assess multicollinearity in multiple regression analysis?
In a deck of 52 cards, what is the probability of selecting two kings from the deck
without replacement?
In acceptance sampling, it is possible that an incoming lot of computer chips contains
more defective chips than it should, but it is still accepted. In acceptance sampling, this
probability is called _____________.
