Archives: Quiz

How can you describe the moving average method? A. A method that smoothes out a time series. B. A method to deseasonalize a time series. C. A technique that results in a trend line equation. D. A method for computing […]

The college of business was interested in comparing the attendance for three different class times for a business statistics class. The data follow. What is the treatment variable? A. Day B. Class time C. Tuesday D. 8:00 a.m. class The […]

The Kruskal-Wallis one-way analysis of variance by ranks is especially appropriate to test whether three or more population means are equal if the data is measured with an ordinal scale and/or the populations are not normal. A point estimate is […]

The binomial probability distribution is always negatively skewed. An example of a dummy variable is “time to product’s first repair” in years. Answer: FALSE A dummy variable is most commonly a nominal variable such as gender (male or female). A […]

Bayes’ theorem is used to calculate a subjective probability. A population is a collection of all individuals, objects, or measurements of interest. Answer: TRUE The alternate hypothesis states that the correlation between two populations is greater than zero. The test […]

When doing research, knowing the population mean and other population parameters is essential. The 50th percentile of a distribution is the same as the distribution mean. Answer: FALSE The 50th percentile is the same as the median. As a general […]

In a multiple regression equation with three independent variables, X1, X2, and X3, the interaction term is expressed as (Y)(X1). The TRUE sampling error is usually not known because ________. A. is unknown B. is a random variable C. σ2 […]

A test statistic is a value computed from sample information that is used to test the null hypothesis. When sampling is done without replacement and the outcomes are measured as either a success or failure, the hypergeometric distribution should be […]

For the sampling distribution of sample means, sampling error will decrease as sample size increases. The arithmetic mean is the sum of the quantitative observations divided by the total number of observations. Answer: TRUE The Laspeyres method computes a weighted […]

A p-value is a probability. If the computed value of F is 0.99 and the F critical value is 89, we would not reject the null hypothesis. Answer: TRUE In testing the difference between two population proportions, we pool the […]

For a one-tailed test with a 0.05 level of significance, the critical z statistic is 1.645, but the critical t statistic is 1.96. An expected opportunity loss can only be greater than or equal to zero. Answer: TRUE The probability […]

In decision making, if there are one or more unknown factors, then the decision is made under conditions of uncertainty. When estimating the specific seasonals for a monthly time series, the sum of the 12 modified means should theoretically be […]

Some normal probability distributions are positively skewed. When the payoffs are profits, the maximin strategy selects the alternative or act with the maximum gain. Answer: FALSE An interval estimate is a single value used to estimate a population parameter. Answer: […]

If the null hypothesis states that there is no difference between the mean net income of retail stores in Chicago and New York City, then the test is two-tailed. To determine the size of a sample, the standard deviation of […]

The least squares technique minimizes the sum of the squares of the vertical distances between the actual Y values and the predicted values of Y. If 95% and 98% confidence intervals were developed to estimate the Answer: TRUE cost of […]

The Laspeyres method uses the amounts consumed in the base period, q0, as weights to determine a price index. A scatter diagram of sales versus production may be constructed by plotting the minimum, first quartile, median, third quartile, and maximum […]

A scatter diagram of sales versus production is labeled with sales on the Y-axis and production on the X-axis. There are two general types of causes of variations in manufacturing and service processes: chance and assignable causes. Answer: TRUE A […]

The coefficient of skewness is the standard deviation divided by the mean. A cumulative frequency distribution is used when we want to determine how many observations lie above or below certain values. Answer: TRUE An example of a weighted index […]

The multiple coefficient of determination, R2, reports the proportion of the variation in Y that is not explained by the variation in the set of independent variables. The alternative hypothesis used in ANOVA is H1: All population means are equal. […]

The Greek letter used to represent the probability of a Type I error is alpha (α). A simple aggregate index compares the sum of values in the current period to the sum of values in a base period. Answer: TRUE […]

One function of the CPI is to allow consumers to determine the degree to which their purchasing power is being eroded by price increases. A student scored in the 85th percentile on a standardized test. This means that the student […]

A marketing research agency was hired to test a new DVD player. Consumers rated it outstanding, very good, fair, or poor. The level of measurement for this experiment is ordinal. For any distribution, there are an equal number of values […]

A population consists of all the weights of all defensive tackles on a university’s football team. They are Johnson, 204 pounds; Patrick, 215 pounds; Junior, 207 pounds; Kendron, 212 pounds; Nicko, 214 pounds; and Cochran, 208 pounds. What is the […]

Records on a fleet of trucks reveal that the average life of a set of spark plugs is normally distributed with a mean of 22,100 miles. The fleet owner purchased 18 sets and found that the sample average life was […]

A manufacturer claims that less than 1% of all its products do not meet the minimum government standards. A survey of 500 products revealed that 10 did not meet the standard. If the level of significance is 2%, the critical […]

A manufacturer claims that less than 1% of all its products do not meet the minimum government standards. A survey of 500 products revealed that 10 did not meet the standard. If the computed z-statistic is -1.960 and the level […]

A data set consists of 40 observations. For a quantitative variable, how many classes would you recommend for the frequency distribution? A silkscreen printing company purchases t-shirts. To ensure the quality of the shipment, 300 t-shirts are randomly selected. Fifteen […]

Describe the normal distribution. In a study of protein breakfast bars, five bars from each of three brands were tested to see if the mean amount of protein per bar differs among the brands. To select a critical F-statistic, the […]

High school students were interested in a teacher’s claim that the longer the length of time (hours) that a student studies for a test, the higher the test score. The students collected the data and the teacher did the regression […]

In a market research study involving 11 people, 7 preferred Product X, 3 preferred Product Y, and 1 expressed no preference. A sign test is selected using the 0.05 level of significance. What is the alternate hypothesis? When dependent samples […]

Assume a student received the following grades for the semester: History, B; Statistics, A; Spanish, C; and English, C. History and English are 5 credit-hour courses, Statistics a 4 credit-hour course, and Spanish is a 3 credit-hour course. If 4 […]

A sample of 25 is selected from a known population of 100 elements. What is the finite population correction factor? A. 8.66 B. 75 C. 0.87 D. Cannot be determined Data for selected fruits purchased at wholesale prices for 2005 […]

The hypothesis to test the slope of a regression equation is H0: α = 0. A survey of 25 grocery stores revealed that the mean price of a gallon of milk was $2.98, with a standard error of $0.10. What […]

A new extended-life light bulb has an average life of 750 hours, with a standard deviation of 50 hours. If the life of these light bulbs approximates a normal distribution, about what percent of the distribution will be between 600 […]

The chi-square test statistic used in a goodness-of-fit test has k – 1 degrees of freedom. Pearson’s coefficient of skewness is a measure of a distribution’s symmetry. Answer: TRUE In a Poisson distribution, the probability of success may vary from […]

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. Answer: TRUE A survey of 50 retail stores revealed that the […]

The mean of a binomial distribution is the product of n and Ï€. The variance of a binomial distribution is found by nÏ€(1 – Ï€). Answer: TRUE The “box” in a box plot shows the interquartile range. Answer: TRUE If […]

At his profit-maximizing level of output, a monopolist’s average total cost curve is tangent to his demand curve. The monopolist a. is earning a negative economic profit. b. may or may not be earning a negative economic profit. c. is […]

Figure 4-3 A 1985 Harvard study showed that the price of cigarettes does not affect how much an individual smokes but whether he smokes. If this is correct, which graph in Figure 4-3 shows the typical individual’s demand curve for […]

Unemployment and inflation are important determinants of short-run material welfare, whereas productivity growth is an important determinant of long-run material well-being. a. True b. False Productivity in manufacturing sectors has risen faster than in service sectors. a. True b. False […]

The contestable market theory best applies to a. pure monopoly. b. oligopoly. c. monopolistic competition. d. perfect competition. Which of the following is not generally considered a failing of market economies? a. Market economies can have severe swings from boom […]

Purchasers of corporate bonds lend money to a corporation. a. True b. False There are about 5 million business firms in the Unites States. a. True b. False Answer: False In the long run, more costs become fixed. a. True […]

Which of the following characteristics of a PPF indicates that tradeoffs must be made? a. the downward slope b. the upward slope c. the constant slope d. the curvature A decrease in price of a certain good most likely will […]

Direct taxes are levied directly on people or corporations. a. True b. False Taxes on polluting firms have a. been tried, but not successfully. b. been successful in Germany in reducing water pollution. c. resulted in bankruptcy of the affected […]

When it is cheaper for one firm to produce a number of different commodities together than it is for a group of small firms to produce those commodities, ____ exist(s). a. economies of scale b. economies of scope c. diminishing […]

Members of the European Union (EU), rely heavily on this form of indirect taxes. a. Value-added tax b. Excise tax c. Property tax d. Sales tax Necessities such as food and shelter have inelastic demand. a. True b. False Answer: […]

A change in consumer preferences will shift the budget line. a. True b. False If a firm has increasing returns to scale at all levels of output, the a. slope of its long-run total cost curve is always negative. b. […]

If a tax is proportional, the average tax rate a. remains the same as income rises. b. rises as income rises. c. falls as income rises. d. falls as income falls. A market transaction causes an externality if someone a. […]

An oligopoly using a maximin strategy must believe that the losses from underestimating a competitor’s skill are worse than those from overestimating it. a. True b. False The marginal productivity theory of distribution has been criticized because a. it assumes […]

Which of the following events create an outward shift of the production possibilities curve? a. The United States moves resources from the production of goods for domestic production to the production of goods for export. b. Tax reductions reduce the […]