PRST 324 Test 1 | Course Paper

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TABLE 7-8

According to a survey, only 15% of customers who visited the website of a major retail

store made a purchase. Random samples of size 50 are selected from a population of

900. Use the finite population correction factor.

Referring to Table 7-8, what is the probability that a random sample of 50 will have at

least 30% of customers who will make a purchase after visiting the website?

A company that sells annuities must base the annual payout on the probability

distribution of the length of life of the participants in the plan. Suppose the probability

distribution of the lifetimes of the participants is approximately a normal distribution

with a mean of 68 years and a standard deviation of 3.5 years. What proportion of the

plan recipients would receive payments beyond age 75?

TABLE 5-8

Two different designs on a new line of winter jackets for the coming winter are

available for your manufacturing plants. Your profit (in thousands of dollars) will

depend on the taste of the consumers when winter arrives. The probability of the three

possible different tastes of the consumers and the corresponding profits are presented in

the following table.

Referring to Table 5-8, if you decide to choose Design A for 90% of the production

lines and Design B for the remaining production lines, what is the coefficient of

variation of your investment?

TABLE 3-5

The rate of return of a Fortune 500 company over the past 15 years are: 3.17%, 4.43%,

5.93%, 5.43%, 7.29%, 8.21%, 6.23%, 5.23%, 4.34%, 6.68%, 7.14%, -5.56%, -5.23%,

-5.73%, -10.34%.

Referring to Table 3-5, what is the shape of the distribution for the rate of return?

TABLE 16-16

Given below are the prices of a basket of four food items from 2008 to 2012.

Referring to Table 16-16, what are the simple price indices for wheat, corn, soybeans

and milk, respectively, in 2009 using 2012 as the base year?

To evaluate two categorical variables at the same time, a ________ could be developed.

TABLE 16-13

Given below is the monthly time-series data for U.S. retail sales of building materials

over a specific year.

The results of the linear trend, quadratic trend, exponential trend, first-order

autoregressive, second-order autoregressive and third-order autoregressive model are

presented below in which the coded month for the 1st month is 0:

Linear trend model:

Quadratic trend model:

Exponential trend model:

First-order autoregressive:

Second-order autoregressive:

Third-order autoregressive:

Below is the residual plot of the various models:

Referring to Table 16-13, what is your forecast for the 13th month using the linear-trend

model?

TABLE 6-2

John has two jobs. For daytime work at a jewelry store he is paid $15,000 per month,

plus a commission. His monthly commission is normally distributed with a mean of

$10,000 and a standard deviation of $2,000. At night he works occasionally as a waiter,

for which his monthly income is normally distributed with a mean of $1,000 and a

standard deviation of $300. John’s income levels from these two sources are

independent of each other.

Referring to Table 6-2, for a given month, what is the probability that John’s income as

a waiter is between $700 and $1,600?

TABLE 10-4

Two samples each of size 25 are taken from independent populations assumed to be

normally distributed with equal variances. The first sample has a mean of 35.5 and

standard deviation of 3.0 while the second sample has a mean of 33.0 and standard

deviation of 4.0.

Referring to Table 10-4, the critical values for a two-tail test of the null hypothesis of no

difference in the population means at the = 0.05 level of significance are ________.