STAT 125-HK.

Business Statistics Midterm Exam

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Question
2 points
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1
The probability that house sales will increase in the next 6 months is estimated
to be 0.25. The probability that the interest rates on housing loans will go up
in the same period is estimated to be 0.74. The probability that house sales or
interest rates will go up during the next 6 months is estimated to be 0.89. The
probability that house sales will increase but interest rates will not during the
next 6 months is:
a. 0.065
b. 0.15
c. 0.51
d. 0.89

Question
2

2 points

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The process of using sample statistics to draw conclusions about true

population parameters is called
a. statistical inference.
b. the scientific method.
c. sampling.
d. descriptive statistics.

Question
3

2 points

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Which of the following is NOT a reason for obtaining data?

a. Data are needed to formulate a statistical model.
b. Data are needed to evaluate conformance to standards.
c. Data are needed to measure performance of an ongoing production
process.
d. Data are needed to provide input to a study.

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4
A catalog company that receives the majority of its orders by telephone
conducted a study to determine how long customers were willing to wait on
hold before ordering a product. The length of time was found to be a random
variable best approximated by an exponential distribution with a mean equal
to 3 minutes. What proportion of customers having to hold more than 1.5
minutes will hang up before placing an order?
a. 0.86466
b. 0.60653
c. 0.39347
d. 0.13534

Question
5

2 points

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Selection of raffle tickets from a large bowl is an example of

a. sampling with replacement.
b. sampling without replacement.
c. subjective probability.
d. None of the above.

Question
6

2 points

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The width of each bar in a histogram corresponds to the

a. differences between the boundaries of the class.
b. number of observations in each class.
c. midpoint of each class.
d. percentage of observations in each class.

Question
7

2 points
If two events are mutually exclusive and collectively exhaustive, what is the
probability that one or the other occurs?
a. 0.
b. 0.50.
c. 1.00.
d. Cannot be determined from the information given.

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Question
8

2 points

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Which of the following is not an element of descriptive statistical problems?

a. An inference made about the population based on the sample.
b. The population or sample of interest.
c. Tables, graphs, or numerical summary tools.
d. Identification of patterns in the data.

Question
9

2 points

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Which of the following statistics is not a measure of central tendency?

a. Mean.
b. Median.
c. Mode.
d. Q3.

Question
2 points
10
Major league baseball salaries averaged $1.5 million with a standard
deviation of $0.8 million in 1994. Suppose a sample of 100 major league
players was taken. Find the approximate probability that the average salary of
the 100 players exceeded $1 million.
a. Approximately 0
b. 0.2357
c. 0.7357
d. Approximately 1

Question
2 points
11
If two equally likely events A and B are mutually exclusive and collectively
exhaustive, what is the probability that event A occurs?
a. 0.
b. 0.50.
c. 1.00.
d. Cannot be determined from the information given.

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Question
2 points
12
TABLE 2-6A sample of 200 students at a Big-Ten university was taken after
the midterm to ask them whether they went bar hopping the weekend before
the midterm or spent the weekend studying, and whether they did well or
poorly on the midterm. The following table contains the result.
Did Well on Midterm
Did Poorly on Midterm
Studying for Exam
80
20
Went Bar Hopping
30
70

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Referring to Table 2-6, of those who did well on the midterm in the sample,
_______ percent of them went bar hopping the weekend before the midterm.
a. 15
b. 27.27
c. 30
d. 50

Question
2 points
13
TABLE 2-5The following are the durations in minutes of a sample of longdistance phone calls made within the continental United States reported by
one long-distance carrier.
Time (in Minutes)
Relative Frequency
0 but less than 5
0.37
5 but less than 10
0.22
10 but less than 15
0.15
15 but less than 20
0.10
20 but less than 25
0.07
25 but less than 30
0.07
30 or more
0.02
Referring to Table 2-5, what is the width of each class?
a. 1 minute
b. 5 minutes
c. 2%
d. 100%

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Question
2 points
14
According to a survey of American households, the probability that the
residents own 2 cars if annual household income is over $25,000 is 80%. Of
the households surveyed, 60% had incomes over $25,000 and 70% had 2
cars. The probability that annual household income is over $25,000 if the
residents of a household do not own 2 cars is:
a. 0.12
b. 0.18
c. 0.40
d. 0.55

Question
2 points
15
A study is under way in Yosemite National Forest to determine the adult
height of American pine trees. Specifically, the study is attempting to
determine what factors aid a tree in reaching heights greater than 60 feet tall.
It is estimated that the forest contains 25,000 adult American pines. The study
involves collecting heights from 250 randomly selected adult American pine
trees and analyzing the results. Identify the population from which the study
was sampled.
a. The 250 randomly selected adult American pine trees.
b. The 25,000 adult American pine trees in the forest.
c. All the adult American pine trees taller than 60 feet.
d. All American pine trees, of any age, in the forest.

Question
2 points
16
When extreme values are present in a set of data, which of the following
descriptive summary measures are most appropriate?
a. CV and range.
b. mean and standard deviation.
c. interquartile range and median.
d. variance and interquartile range.

Question
2 points
17
A population frame for a survey contains a listing of 72,345 names. Using a

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table of random numbers, how many digits will the code numbers for each
member of your population contain?
a. 3
b. 4
c. 5
d. 6

Question
2 points
18
A recent survey of banks revealed the following distribution for the interest
rate being charged on a home loan (based on a 30-year mortgage with a 10%
down payment).
Interest Rate:
7.0%
7.5%
8.0%
8.5%
>8.5%
Probability
0.12
0.23
0.24
0.35
0.06

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If a bank is selected at random from this distribution, what is the chance that
the interest rate charged on a home loan will exceed 8.0%?
a. 0.06
b. 0.41
c. 0.59
d. 1.00

Question
2 points
19
Referring to the histogram from Table 2-3, how many graduating seniors
attended the luncheon?
a. 4
b. 152
c. 275
d. 388

Question
2 points
20
TABLE 2-4A survey was conducted to determine how people rated the
quality of programming available on television. Respondents were asked to
rate the overall quality from 0 (no quality at all) to 100 (extremely good
quality). The stem-and-leaf display of the data is shown below.

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Stem
3
4
5
6
7
8
9

Leaves
24
03478999
0112345
12566
01
2

Referring to Table 2-4, what percentage of the respondents rated overall

television quality with a rating between 50 and 75?
a. 0.11
b. 0.40
c. 0.44
d. 0.56

Question
2 points
21
The Central Limit Theorem is important in statistics because
a. for a large n, it says the population is approximately normal.
b. for any population, it says the sampling distribution of the sample mean
is approximately normal, regardless of the sample size.
c. for a large n, it says the sampling distribution of the sample mean is
approximately normal, regardless of the shape of the population.
d. for any sized sample, it says the sampling distribution of the sample
mean is approximately normal.

Question
2 points
22
If you were constructing a 99% confidence interval of the population mean
based on a sample of n = 25 where the standard deviation of the sample s =
0.05, the critical value of t will be
a. 2.7969
b. 2.7874
c. 2.4922
d. 2.4851

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Question
2 points
23
A statistics student found a reference in the campus library that contained the
median family incomes for all 50 states. She would report her data as being
collected using
a. a designed experiment.
b. observational data.
c. a random sample.
d. a published source.

Question
2 points
24
TABLE 2-5The following are the durations in minutes of a sample of longdistance phone calls made within the continental United States reported by
one long-distance carrier.
Time (in Minutes)
Relative Frequency
0 but less than 5
0.37
5 but less than 10
0.22
10 but less than 15
0.15
15 but less than 20
0.10
20 but less than 25
0.07
25 but less than 30
0.07
30 or more
0.02

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Referring to Table 2-5, if 10 calls lasted 30 minutes or more, how many calls
lasted less than 5 minutes?
a. 10
b. 185
c. 295
d. 500

Question
2 points
25
The employees of a company were surveyed on questions regarding their
educational background and marital status. Of the 600 employees, 400 had
college degrees, 100 were single, and 60 were single college graduates. The
probability that an employee of the company is single or has a college degree
is:
a. 0.10

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b. 0.25
c. 0.667
d. 0.733

Question
2 points
26
The probability that house sales will increase in the next 6 months is
estimated to be 0.25. The probability that the interest rates on housing loans
will go up in the same period is estimated to be 0.74. The probability that
house sales or interest rates will go up during the next 6 months is estimated
to be 0.89. The probability that neither house sales nor interest rates will
increase during the next 6 months is:
a. 0.11
b. 0.195
c. 0.89
d. 0.90

Question
2 points
27
A confidence interval was used to estimate the proportion of statistics
students that are females. A random sample of 72 statistics students generated
the following 90% confidence interval: (0.438, 0.642). Based on the interval
above, is the population proportion of females equal to 0.60?
a. No, and we are 90% sure of it.
b. No. The proportion is 54.17%.
c. Maybe. 0.60 is a believable value of the population proportion based on
the information above.
d. Yes, and we are 90% sure of it.

Question
2 points
28
Since a _______ is not a randomly selected probability sample, there is no
way to know how well it represents the overall population.
a. simple random sample
b. quota sample
c. stratified sample
d. cluster sample

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Question
2 points
29
TABLE 2-6A sample of 200 students at a Big-Ten university was taken after
the midterm to ask them whether they went bar hopping the weekend before
the midterm or spent the weekend studying, and whether they did well or
poorly on the midterm. The following table contains the result.
Did Well on Midterm
Did Poorly on Midterm
Studying for Exam
80
20
Went Bar Hopping
30
70

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Referring to Table 2-6, _______ percent of the students in the sample went
bar hopping the weekend before the midterm and did well on the midterm.
a. 15
b. 27.27
c. 30
d. 50

Question
2 points
30
The collection of all possible events is called
a. a simple probability.
b. a sample space.
c. a joint probability.
d. the null set.

Question
2 points
31
A lab orders 100 rats a week for each of the 52 weeks in the year for
experiments that the lab conducts. Suppose the mean cost of rats used in lab
experiments turned out to be $13.00 per week. Interpret this value.
a. Most of the weeks resulted in rat costs of $13.00.
b. The median cost for the distribution of rat costs is $13.00.
c. The expected or average cost for all weekly rat purchases is $13.00.
d. The rat cost that occurs more often than any other is $13.00.

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Question
2 points
32
Which of the following is not true about the Students t distribution?
a. It has more area in the tails and less in the center than does the normal
distribution.
b. It is used to construct confidence intervals for the population mean when
the population standard deviation is known.
c. It is bell shaped and symmetrical.
d. As the number of degrees of freedom increases, the t distribution
approaches the normal distribution.

Question
2 points
33
If two events are mutually exclusive, what is the probability that one or the
other occurs?
a. 0.
b. 0.50.
c. 1.00.
d. Cannot be determined from the information given.

Question
2 points
34
Tim was planning for a meeting with his boss to discuss a raise in his annual
salary. In preparation, he wanted to use the Consumer Price Index to
determine the percentage increase in his salary in terms of real income over
the last three years. Which of the 4 methods of data collection was involved
when he used the Consumer Price Index?
a. Published sources
b. Experimentation
c. Surveying
d. Observation

Question
2 points
35
A professor of economics at a small Texas university wanted to determine
what year in school students were taking his tough economics course. Shown
below is a pie chart of the results. What percentage of the class took the
course prior to reaching their senior year?

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a. 14%
b. 44%
c. 54%
d. 86%

Question
2 points
36
TABLE 2-5The following are the durations in minutes of a sample of longdistance phone calls made within the continental United States reported by
one long-distance carrier.
Time (in Minutes)
Relative Frequency
0 but less than 5
0.37
5 but less than 10
0.22
10 but less than 15
0.15
15 but less than 20
0.10
20 but less than 25
0.07
25 but less than 30
0.07
30 or more
0.02

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Referring to Table 2-5, if 100 calls were randomly sampled, how many calls
lasted 15 minutes or longer?
a. 10
b. 14
c. 26
d. 74

Question
2 points
37
The chancellor of a major university was concerned about alcohol abuse on
her campus and wanted to find out the portion of students at her university
who visited campus bars every weekend. Her advisor took a random sample
of 250 students. The portion of students in the sample who visited campus
bars every weekend is an example of __________.
a. a categorical random variable.
b. a discrete random variable.
c. a parameter.
d. a statistic.

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Question
2 points
38
Which of the following statements about the median is not true?
a. It is more affected by extreme values than the mean.
b. It is a measure of central tendency.
c. It is equal to Q2.
d. It is equal to the mode in bell-shaped normal distributions.

Question
2 points
39
Most analysts focus on the cost of tuition as the way to measure the cost of a
college education. But incidentals, such as textbook costs, are rarely
considered. A researcher at Drummand University wishes to estimate the
textbook costs of first-year students at Drummand. To do so, she monitored
the textbook cost of 250 first-year students and found that their average
textbook cost was $300 per semester. Identify the sample in the study.
a. All Drummand University students.
b. All college students.
c. All first-year Drummand University students.
d. The 250 students that were monitored.

Question
2 points
40
The head librarian at the Library of Congress has asked her assistant for an
interval estimate of the mean number of books checked out each day. The
assistant provides the following interval estimate: from 740 to 920 books per
day. If the head librarian knows that the population standard deviation is 150
books checked out per day, and she asked her assistant to use 25 days of data
to construct the interval estimate, what confidence level can she attach to the
interval estimate?
a. 99.7%
b. 99.0%
c. 98.0%
d. 95.4%

Question 2 points

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41
Which of the following is true regarding the sampling distribution of the
mean for a large sample size?
a. It has the same shape, mean, and standard deviation as the population.
b. It has a normal distribution with the same mean and standard deviation as
the population.
c. It has the same shape and mean as the population, but has a smaller
standard deviation.
d. It has a normal distribution with the same mean as the population but
with a smaller standard deviation.

Question
2 points
42
A lab orders 100 rats a week for each of the 52 weeks in the year for
experiments that the lab conducts. Prices for 100 rats follow the following
distribution:
Price:
$10.00
$12.50
$15.00
Probability:
0.35
0.40
0.25

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How much should the lab budget for next years rat orders be, assuming this
distribution does not change?
a. $520
b. $637
c. $650
d. $780

Question
2 points
43
The portfolio expected return of two investments
a. will be higher when the covariance is zero.
b. will be higher when the covariance is negative.
c. will be higher when the covariance is positive.
d. does not depend on the covariance.

Question
2 points
44
According to a survey of American households, the probability that the

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residents own 2 cars if annual household income is over $25,000 is 80%. Of

the households surveyed, 60% had incomes over $25,000 and 70% had 2
cars. The probability that the residents of a household do not own 2 cars and
have an income over $25,000 a year is:
a. 0.12
b. 0.18
c. 0.22
d. 0.48

Question
2 points
45
Which of the following is most likely a parameter as opposed to a statistic?
a. The average score of the first five students completing an assignment.
b. The proportion of females registered to vote in a county.
c. The average height of people randomly selected from a database.
d. The proportion of trucks stopped yesterday that were cited for bad
brakes.

Question
2 points
46
Which of the mean, median, mode, and geometric mean are resistant
measures of central tendency?
a. The mean and median only.
b. The median and mode only.
c. The mode and geometric mean only.
d. The mean and mode only.

Question
2 points
47
The collection and summarization of the socioeconomic and physical
characteristics of the employees of a particular firm is an example of
a. inferential statistics.
b. descriptive statistics.
c. a parameter.
d. a statistic.

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Question
2 points
48
A population frame for a survey contains a listing of 6,179 names. Using a
table of random numbers, which of the following code numbers will appear
on your list?
a. 06
b. 0694
c. 6946
d. 61790

Question
2 points
49
In left-skewed distributions, which of the following is the correct statement?
a. The distance from Q1 to Q2 is smaller than the distance from Q2 to Q3.
b. The distance from the smallest observation to Q1 is larger than the
distance from Q3 to the largest observation.
c. The distance from the smallest observation to Q2 is smaller than the
distance from Q2 to the largest observation.
d. The distance from Q1 to Q3 is twice the distance from Q1 to Q2.

Question
2 points
50
Why is the Central Limit Theorem so important to the study of sampling
distributions?
a. It allows us to disregard the size of the sample selected when the
population is not normal.
b. It allows us to disregard the shape of the sampling distribution when the
size of the population is large.
c. It allows us to disregard the size of the population we are sampling from.
d. It allows us to disregard the shape of the population when n is large.

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STAT125-HK. BUSINESS STATISTICS (STAT125-HK) > TAKE ASSESSMENT: FINAL

EXAM

Question
1

2 points

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In testing for differences between the means of 2 independent populations,

the null hypothesis is:
a. H0: 1 2 = 2.
b. H0: 1 2 = 0.
c. H0: 1 2 > 0.
d. H0: 1 2 < 2.

Question
2

2 points

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A survey claims that 9 out of 10 doctors recommend aspirin for their patients
with headaches. To test this claim against the alternative that the actual
proportion of doctors who recommend aspirin is less than 0.90, a random
sample of 100 doctors results in 83 who indicate that they recommend
aspirin. The value of the test statistic in this problem is approximately equal
to:
a. -4.12
b. -2.33
c. -1.86
d. -0.07

Question
3

2 points

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If a group of independent variables are not significant individually but are

significant as a group at a specified level of significance, this is most likely
due to
a. autocorrelation.
b. the presence of dummy variables.
c. the absence of dummy variables.
d. collinearity.

Question
4

2 points
TABLE 13-2A candy bar manufacturer is interested in trying to estimate how
sales are influenced by the price of their product. To do this, the company
randomly chooses 6 small cities and offers the candy bar at different prices.
Using candy bar sales as the dependent variable, the company will conduct a
simple linear regression on the data below:
City
Price Sales

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($)
River
1.30
Falls
Hudson 1.60
Ellsworth 1.80
Prescott 2.00
Rock
2.40
Elm
Stillwater 2.90

100
90
90
40
38
32

Referring to Table 13-2, what is the coefficient of correlation for these data?
a. -0.8854
b. -0.7839
c. 0.7839
d. 0.8854

Question
5

2 points

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The Y-intercept (b0) represents the

a. predicted value of Y when X = 0.
b. change in estimated average Y per unit change in X.
c. predicted value of Y.
d. variation around the sample regression line.

Question
6

2 points
TABLE 14-5A microeconomist wants to determine how corporate sales are
influenced by capital and wage spending by companies. She proceeds to
randomly select 26 large corporations and record information in millions of
dollars. The Microsoft Excel output below shows results of this ltiple
regression.SUMMARY OUTPUT
Regression
Statistics
Multiple
0.830
R
R Square 0.689
Adjusted
0.662
R Square

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Standard 17501.6
Error
43
Observati
26
ons

ANOV
A
Regres
sion
Residu
al
Total

d
SS
f
1557977
2
7040
2 7045072
3 780
2 2262484
5 9820

Sign
if F
778988 25.4 0.00
8520
32 01
306307
512
MS

StdErro
r
Interce 15800.00 6038.29
pt
00
99
Coeff

Capital 0.1245
Wages 7.0762

t
PStat value
2.61 0.015
7 4
0.60 0.548
0.2045
9 5
4.80 0.000
1.4729
4 1

Referring to Table 14-5, what are the predicted sales (in millions of dollars)
for a company spending $100 million on capital and $100 million on wages?
a. 15,800.00
b. 16,520.07
c. 17,277.49
d. 20,455.98

Question
7

2 points
If we are performing a two-tailed test of whether = 100, the probability of
detecting a shift of the mean to 105 will be ________ the probability of
detecting a shift of the mean to 110.
a. less than
b. greater than

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c. equal to
d. not comparable to

Question
8

2 points
TABLE 11-1Psychologists have found that people are generally reluctant to
transmit bad news to their peers. This phenomenon has been termed the M
effect. To investigate the cause of the M effect, 40 undergraduates at Duke
University participated in an experiment. Each subject was asked to
administer an IQ test to another student and then provide the test taker with
his or her percentile score. Unknown to the subject, the test taker was a bogus
student who was working with the researchers. The experimenters
manipulated two factors: subject visibility and success of test taker, each at
two levels. Subject visibility was either visible or not visible to the test taker.
Success of the test taker was either visible or not visible to the test taker.
Success of the test taker was either top 20% or bottom 20%. Ten subjects
were randomly assigned to each of the 2 x 2 = 4 experimental conditions,
then the time (in seconds) between the end of the test and the delivery of the
percentile score from the subject to the test taker was measured. (This
variable is called the latency to feedback.) The data were subjected to
appropriate analyses with the following results.
PR
Source df SS
MS F
>F
Subject
1380.
0.04
1 1380.24
4.26
visibility
24
3
Test
1325.
0.05
taker
1 1325.16
4.09
16
0
success
Interacti
3385. 10.4 0.00
1 3385.80
on
80
5
2
3 11,664. 324.0
Error
6 00
0
3 17,755.
Total
9 20
Referring to Table 11-1, in the context of this study, interpret the statement:
Subject visibility and test taker success interact.
a. The difference between the mean feedback time for visible and
nonvisible subjects depends on the success of the test taker.
b. The difference between the mean feedback time for test takers scoring in
the top 20% and bottom 20% depends on the visibility of the subject.
c. The relationship between feedback time and subject visibility depends on

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the success of the test taker.

d. All of the above are correct interpretations.

Question
9

2 points

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TABLE 13-1A large national bank charges local companies for using their
services. A bank official reported the results of a regression analysis designed
to predict the banks charges (Y) measured in dollars per month for
services rendered to local companies. One independent variable used to
predict service charge to a company is the companys sales revenue (X)
measured in millions of dollars. Data for 21 companies who use the banks
services were used to fit the model:E(Y) = 0 + 1X
The results of the simple linear regression are provided below.
Y = -2,700+20X, syx = 65, two-tailed p value = 0.034 (for testing 1)
Referring to Table 13-1, interpret the p value for testing whether 1 exceeds 0.
a. There is sufficient evidence (at the = 0.05) to conclude that sales
revenue (X) is a useful linear predictor of service charge (Y).
b. There is insufficient evidence (at the = 0.10) to conclude that sales
revenue (X) is a useful linear predictor of service charge (Y).
c. Sales revenue (X) is a poor predictor of service charge (Y).
d. For every $1 million increase in sales revenue, we expect a service
charge to increase $0.034.

Question
2 points
10
TABLE 14-1A manager of a product sales group believes the number of sales
made by an employee (Y) depends on how many years that employee has
been with the company (X1) and how he/she scored on a business aptitude test
(X2). A random sample of 8 employees provides the following:
Employee Y X1 X2
1
100 10 7
2
90 3 10
3
80 8 9
4
70 5 4
5
60 5 8
6
50 7 5

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7
8

40 1 4
30 1 1

Referring to Table 14-1, for these data, what is the estimated coefficient for
the variable representing years an employee has been with the company, b1?
a. 0.998
b. 3.103
c. 4.698
d. 21.293

Question
2 points
11
The Journal of Business Venturing reported on the activities of entrepreneurs
during the organization creation process. As part of a designed study, a total
of 71 entrepreneurs were interviewed and divided into 3 groups: those that
were successful in founding a new firm (n1 = 34), those still actively trying to
establish a firm (n2 = 21), and those who tried to start a new firm but
eventually gave up (n3 = 16). The total number of activities undertaken (e.g.,
developed a business plan, sought funding, looked for facilities) by each
group over a specified time period during organization creation was
measured. The objective is to compare the mean number of activities of the 3
groups of entrepreneurs. Because of concerns over necessary assumption of
the parametric analysis, it was decided to use a nonparametric analysis.
Identify the nonparametric method that would be used to analyze the data.
a. Wilcoxon Rank Sums Test
b. Wilcoxon Signed Rank Test
c. Kruskal-Wallis Rank Test for Differences in Medians
d. One-way ANOVA F test

Question
2 points
12
TABLE 15-4In Hawaii, condemnation proceedings are under way to enable
private citizens to own the property that their homes are built on. Until
recently, only estates were permitted to own land, and homeowners leased the
land from the estate. In order to comply with the new law, a large Hawaiian
estate wants to use regression analysis to estimate the fair market value of the
land. Each of the following 3 models were fit to data collected for n = 20
properties, 10 of which are located near a cove.Model 1: Y = 0 + 1X1 + 2X2
+ 3X1X2 + 4X12 + 5X12X2 +

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where
Y = Sale price of property in thousands of dollars
X1 = Size of property in thousands of square feet
X2 = 1 if property located near cove, 0 if not
Using the data collected for the 20 properties, the following partial output
obtained from Microsoft Excel is shown:
Regression
Statistics
Multiple R
R Square
Standard
Error
Observation
s

0.985
0.970
9.5
20

Signif
F
Regression 5 28324 5664 62.2 0.0001
Residual 14 1279 91
Total
19 29063
ANOVA

df SS

MS F

t
Coef StdErro
Sta
f
r
t
Intercept -32.1 35.7
0.9
0
2.0
Size
12.2 5.9
5
Cove
104. 53.5
1.9
3
5
1.9
Size*Cove 17.0 8.5
9
SizeSq
-0.3 0.2
1.2
8
SizeSq*Co -0.3 0.3
-

Pvalue
0.383
4
0.059
4
0.071
5
0.066
1
0.220
4
0.274

1.1
9
3

ve

Referring to Table 15-4, given a quadratic relationship between sale price (Y)
and property size (X1), what test should be used to test whether the curves
differ from cove and non-cove properties?
a. F test for the entire regression model.
b. t test on each of the coefficients in the entire regression model.
c. Partial F test on the subset of the appropriate coefficients.
d. t test on each of the subsets of the appropriate coefficients.

Question
2 points
13
TABLE 10-2A researcher randomly sampled 30 graduates of an MBA
program and recorded data concerning their starting salaries. Of primary
interest to the researcher was the effect of gender on starting salaries.
Analysis of the mean salaries of the females and males in the sample is given
below.
Size
Mean
Std Dev
Females
18
48,266.7
13,577.63
Males
12
55,000
11,741.29
Std Error = 4,764.82
Means Diff = -6,733.3
Z = -1.4528 2-tailed p value = 0.1463
T = -1.4221 2-tailed p value = 0.1574

Save

Referring to Table 10-2, the researcher was attempting to show statistically

that the female MBA graduates have a significantly lower mean starting
salary than the male MBA graduates. According to the test run, which of the
following is an appropriate alternative hypothesis?
a. H1: females > males
b. H1: females < males
c. H1: females males
d. H1: females = males

Question
2 points
14
TABLE 10-3

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The use of preservatives by food processors has become a controversial issue.

Suppose 2 preservatives are extensively tested and determined safe for use in
meats. A processor wants to compare the preservatives for their effects on
retarding spoilage. Suppose 15 cuts of fresh meat are treated with
preservative A and 15 are treated with preservative B, and the number of
hours until spoilage begins is recorded for each of the 30 cuts of meat. The
results are summarized in the table below.
Referring to Table 10-3, what assumptions are necessary for a comparison of
the population variances to be valid?
a. Both sampled populations are normally distributed.
b. Both samples are random and independent.
c. Neither (a) nor (b) is necessary.
d. Both (a) and (b) are necessary.

Question
2 points
15
In testing for the differences between the means of 2 independent populations
where the variances in each population are unknown but assumed equal, the
degrees of freedom are
a. n 1.
b. n1 + n2 1.
c. n1 + n2 2.
d. n 2.

Question
2 points
16
TABLE 12-1A study published in the American Journal of Public Health was
conducted to determine whether the use of seat belts in motor vehicles
depends on ethnic status in San Diego County. A sample of 792 children
treated for injuries sustained from motor vehicle accidents was obtained, and
each child was classified according to (1) ethnic status (Hispanic or nonHispanic) and (2) seat belt usage (worn or not worn) during the accident. The
number of children in each category is given in the table below.
Hispanic
Non-Hispanic
Seat belts worn
31
148
Seat belts not worn
283
330
Referring to Table 12-1, which test would be used to properly analyze the
data in this experiment?

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a. test for independence in a two-way contingency table.

b. test for equal proportions in a one-way table.
c. ANOVA F test for interaction in a 2 x 2 factorial design.
d. test for a 2 x 2 factorial design.

Question
2 points
17
If the p value is less than in a two-tailed test,
a. the null hypothesis should not be rejected.
b. the null hypothesis should be rejected.
c. a one-tailed test should be used.
d. no conclusion should be reached.

Question
2 points
18
TABLE 14-1A manager of a product sales group believes the number of sales
made by an employee (Y) depends on how many years that employee has
been with the company (X1) and how he/she scored on a business aptitude test
(X2). A random sample of 8 employees provides the following:
Employee Y X1 X2
1
100 10 7
2
90 3 10
3
80 8 9
4
70 5 4
5
60 5 8
6
50 7 5
7
40 1 4
8
30 1 1
Referring to Table 14-1, for these data, what is the estimated coefficient for
the variable representing scores on the aptitude test, b2?
a. 0.998
b. 3.103
c. 4.698
d. 21.293

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Save

Question
2 points
19
TABLE 10-9A buyer for a manufacturing plant suspects that his primary
supplier of raw materials is overcharging. In order to determine if his
suspicion is correct, he contacts a second supplier and asks for the prices on
various materials. He wants to compare these prices with those of his primary
supplier. The data collected is presented in the table below, with some
summary statistics presented (all of these might not be necessary to answer
the questions which follow). The buyer believes that the differences are
normally distributed and will use this sample to perform an appropriate test at
a level of significance of 0.01.
Primary
Secondary
Material
Difference
Supplier
Supplier
1
$55
$45
$10
2
$48
$47
$1
3
$31
$32
-$1
4
$83
$77
$6
5
$37
$37
$0
6
$55
$54
$1
Sum:
$309
$292
$17
Sum of Squares:
$17,573
$15,472
$139

Save

Referring to Table 10-9, the test to perform is a

a. pooled-variance t test for differences in 2 means.
b. separate-variance t test for differences in 2 means.
c. Wilcoxon Rank Sum Test for differences in 2 medians.
d. t-test for mean difference.

Question
2 points
20
TABLE 10-4
A real estate company is interested in testing whether, on average, families in
Gotham have been living in their current homes for less time than families in
Metropolis have. A random sample of 100 families from Gotham and a
random sample of 150 families in Metropolis yield the following data on
length of residence in current homes.
Referring to Table 10-4, what is the standardized value of the estimate of the
mean of the sampling distribution of the difference between sample means?
a. -8.75
b. -3.75
c. -2.33

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d. -1.96

Question
2 points
21
In a multiple regression model, the adjusted r2
a. cannot be negative.
b. can sometimes be negative.
c. can sometimes be greater than +1.
d. has to fall between 0 and +1.

Question
2 points
22
The owner of a local nightclub has recently surveyed a random sample of n =
250 customers of the club. She would now like to determine whether or not
the mean age of her customers is over 30. If so, she plans to alter the
entertainment to appeal to an older crowd. If not, no entertainment changes
will be made. If she wants to be 99% confident in her decision, what rejection
region should she use?
a. Reject H0 if t Z < -2.33.
b. Reject H0 if t Z < -2.55.
c. Reject H0 if t Z > 2.33.
d. Reject H0 if t Z > 2.58.

Question
2 points
23
A campus researcher wanted to investigate the factors that affect visitor travel
time in a complex, multilevel building on campus. Specifically, he wanted to
determine whether different building signs (building maps versus wall
signage) affect the total amount of time visitors require to reach their
destination and whether that time depends on whether the starting location is
inside or outside the building. Three subjects were assigned to each of the
combinations of signs and starting locations, and travel time in seconds from
beginning to destination was recorded. How should the data be analyzed?
Starting Room
Interior
Exterior
141
224
Wall Signs
119
339
238
139

Save

Save

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85
Map
94
126
a. Completely randomized design
b. Randomized block design
c. 2 x 2 factorial design
d. Kruskal-Wallis rank test

226
129
130

Question
2 points
24
TABLE 12-4
A few years ago, Pepsi invited consumers to take the Pepsi Challenge.
Consumers were asked to decide which of two sodas, Coke or Pepsi, they
preferred in a blind taste test. Pepsi was interested in determining what
factors played a role in peoples taste preferences. One of the factors studied
was the gender of the consumer. Below are the results of analyses comparing
the taste preferences of men and women with the proportions depicting
preference for Pepsi.
Referring to Table 12-4, suppose that the two-tailed p value was 0.0734. State
the proper conclusion.
a. At = 0.05, there is sufficient evidence to indicate the proportion of
males preferring Pepsi differs from the proportion of females preferring
Pepsi.
b. At = 0.10, there is sufficient evidence to indicate the proportion of
males preferring Pepsi differs from the proportion of females preferring
Pepsi.
c. At = 0.05, there is sufficient evidence to indicate the proportion of
males preferring Pepsi equals the proportion of females preferring Pepsi.
d. At = 0.08, there is insufficient evidence to indicate the proportion of
males preferring Pepsi differs from the proportion of females preferring
Pepsi.

Question
2 points
25
If a test of hypothesis has a Type I error probability () of 0.01, we mean
a. if the null hypothesis is true, we dont reject it 1% of the time.
b. if the null hypothesis is true, we reject it 1% of the time.
c. if the null hypothesis is false, we dont reject it 1% of the time.
d. if the null hypothesis is false, we reject it 1% of the time.

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Question
2 points
26
TABLE 10-2A researcher randomly sampled 30 graduates of an MBA
program and recorded data concerning their starting salaries. Of primary
interest to the researcher was the effect of gender on starting salaries.
Analysis of the mean salaries of the females and males in the sample is given
below.
Size
Mean
Std Dev
Females
18
48,266.7
13,577.63
Males
12
55,000
11,741.29
Std Error = 4,764.82
Means Diff = -6,733.3
Z = -1.4528 2-tailed p value = 0.1463
T = -1.4221 2-tailed p value = 0.1574

Save

Referring to Table 10-2, the researcher was attempting to show statistically

that the female MBA graduates have a significantly lower mean starting
salary than the male MBA graduates. From the analysis in Table 10-2, the
correct test statistic is:
a. 4,634.72
b. -1.4221
c. -1.4528
d. -6,733.33

Question
2 points
27
If we wish to determine whether there is evidence that the proportion of
successes is higher in group 1 than in group 2, the appropriate test to use is
a. the Z test.
b. the chi-squared test.
c. Both of the above.
d. None of the above.

Question
2 points
28
TABLE 11-4A campus researcher wanted to investigate the factors that affect
visitor travel time in a complex, multilevel building on campus. Specifically,

Save

Save

he wanted to determine whether different building signs (building maps

versus wall signage) affect the total amount of time visitors require to reach
their destination and whether that time depends on whether the starting
location is inside or outside the building. Three subjects were assigned to
each of the combinations of signs and starting locations, and travel time in
seconds from beginning to destination was recorded. An Excel output of the
appropriate analysis is given below:
ANOVA
Source
of
d
PSS
MS
F
F crit
Variatio
f
value
n
14008. 14008. 0.1126 5.3176
Signs
33
33
7
45
Starting
2.7843 0.1337 5.3176
Locatio 12288
95
4
45
n
Interacti
0.9195 5.3176
48
48
on
06
45
35305. 4413.1
Within
33
67
61649. 1
Total
67
1
Referring to Table 11-4, the within (error) degrees of freedom is
a. 1
b. 4
c. 8
d. 11

Question
2 points
29
A local real estate appraiser analyzed the sales prices of homes in 2
neighborhoods to the corresponding appraised values of the homes. The goal
of the analysis was to compare the distribution of sale-to-appraised ratios
from homes in the 2 neighborhoods. Random and independent samples were
selected from the 2 neighborhoods from last years homes sales, 8 from each
of the 2 neighborhoods. Identify the nonparametric method that would be
used to analyze the data.
a. the Wilcoxon Signed-Ranks Test, using the test statistic Z
b. the Wilcoxon Signed-Ranks Test, using the test statistic W

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c. the Wilcoxon Rank Sum Test, using the test statistic T1

d. the Wilcoxon Rank Sum Test, using the test statistic Z

Question
2 points
30
TABLE 12-13Parents complain that children read too few storybooks and
watch too ch television nowadays. A survey of 1,000 children reveals the
following information on average time spent watching TV and average time
spent reading storybooks
Average time spent
reading storybooks
Average
Less
time
Between More
than
spent
1 and 2 than
1
watching
hours
2 hours
hour
TV
Less than 2
90
85
130
hours
More than
655 32
8
2 hours

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Referring to Table 12-13, to test whether there is any relationship between

average time spent watching TV and average time spent reading storybooks,
the value of the measured test statistic is
a. -12.59
b. 1.61
c. 481.49
d. 1,368.06

Question
2 points
31
TABLE 10-2A researcher randomly sampled 30 graduates of an MBA
program and recorded data concerning their starting salaries. Of primary
interest to the researcher was the effect of gender on starting salaries.
Analysis of the mean salaries of the females and males in the sample is given
below.
Size
Mean
Std Dev
Females
18
48,266.7
13,577.63
Males
12
55,000
11,741.29

Save

Std Error = 4,764.82

Means Diff = -6,733.3
Z = -1.4528 2-tailed p value = 0.1463
T = -1.4221 2-tailed p value = 0.1574
Referring to Table 10-2, the researcher was attempting to show statistically
that the female MBA graduates have a significantly lower mean starting
salary than the male MBA graduates. What assumptions were necessary to
conduct this hypothesis test?
a. Both populations of salaries (male and female) must have approximate
normal distributions.
b. The population variances are approximately equal.
c. The samples were randomly and independently selected.
d. All of the above assumptions were necessary.

Question
2 points
32
Testing for the existence of correlation is equivalent to
a. testing for the existence of the slope (1).
b. testing for the existence of the Y-intercept (0).
c. the confidence interval estimate for predicting Y.
d. None of the above.

Question
2 points
33
TABLE 14-3An economist is interested to see how consumption for an
economy (in $ billions) is influenced by gross domestic product ($ billions)
and aggregate price (consumer price index). The Microsoft Excel output of
this regression is partially reproduced below.SUMMARY OUTPUT
Regression
Statistics
Multiple R 0.991
R Square
0.982
Adjusted R
0.976
Square
Standard
0.299
Error
Observation
10
s

Save

Save

d
SS
f
Regressi 33.41
2
on
63
0.627
Residual 7
7
34.04
Total
9
40
ANOVA

Coeff

Signi
fF
16.70 186.3 0.000
82
25
1
0.089
7
MS

StdErro
Pt Stat
r
value

Intercep
0.883
0.086 0.5674
t
0.152 7
1
0.765
13.34 0.000
GDP
0.0574
4
0
1
0.833
Price 0.000 0.0028
0.219 0
6
Referring to Table 14-3, one economy in the sample had an aggregate
consumption level of $4 billion, a GDP of $6 billion, and an aggregate price
level of 200. What is the residual for this data point?
a. $4.39 billion
b. $0.39 billion
c. -$0.39 billion
d. -$1.33 billion

Question
2 points
34
A ____________ is a numerical quantity computed from the data of a sample
and is used in reaching a decision on whether or not to reject the null
hypothesis.
a. significance level
b. critical value
c. test statistic

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d. parameter

Question
2 points
35
TABLE 13-7An investment specialist claims that if one holds a portfolio that
moves in opposite direction to the market index like the S&P 500, then it is
possible to reduce the variability of the portfolios return. In other words, one
can create a portfolio with positive returns but less exposure to risk.A sample
of 26 years of S&P 500 index and a portfolio consisting of stocks of private
prisons, which are believed to be negatively related to the S&P 500 index, is
collected. A regression analysis was performed by regressing the returns of
the prison stocks portfolio (Y) on the returns of S&P 500 index (X) to prove
that the private prisons stock portfolio is negatively related to the S&P 500
index at a 5% level of significance. The results are given in the following
EXCEL output.
Coeffici Standar
PT Stat
ents
d Error
value
Interc 4.86600 0.35743 13.6136 8.7932
ept 4258
609
3441
E-13
0.07159
2.9494
S&P 0.50251
7.01862
7152
2E-07
3506
425

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Referring to Table 13-7, which of the following will be a correct conclusion?

a. We cannot reject the null hypothesis and, therefore, conclude that there is
sufficient evidence to show that the prison stock portfolio and S&P 500
index are negatively related.
b. We can reject the null hypothesis and, therefore, conclude that there is
sufficient evidence to show that the prison stock portfolio and S&P 500
index are negatively related.
c. We cannot reject the null hypothesis and, therefore, conclude that there is
not sufficient evidence to show that the prison stock portfolio and S&P 500
index are negatively related.
d. We can reject the null hypothesis and conclude that there is not sufficient
evidence to show that the prison stock portfolio and S&P 500 index are
negatively related.

Question
2 points
36
Why would you use the Tukey-Kramer procedure?

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a. To test for normality.

b. To test for homogeneity of variance.
c. To test independence of errors.
d. To test for differences in pairwise means.

Question
2 points
37
TABLE 12-6One criterion used to evaluate employees in the assembly
section of a large factory is the number of defective pieces per 1,000 parts
produced. The quality control department wants to find out whether there is a
relationship between years of experience and defect rate. Since the job is
repetitious, after the initial training period any improvement due to a learning
effect might be offset by a loss of motivation. A defect rate is calculated for
each worker in a yearly evaluation. The results for 100 workers are given in
the table below.
Years Since
Training Period
<1 14 59
Year Years Years
High
6
9
9
Defect
Average 9
19
23
Rate
Low
7
8
10

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Referring to Table 12-6, find the rejection region necessary for testing at the
0.05 level of significance whether there is a relationship between defect rate
and years of experience.
a. Reject H0 if > 16.919
b. Reject H0 if > 15.507
c. Reject H0 if > 11.143
d. Reject H0 if > 9.488

Question
2 points
38
TABLE 12-5The following EXCEL output contains the results of a test to
determine if the proportions of satisfied guests at two resorts are the same or
different.Hypothesized Difference
0
Level of Significance
0.05
Group 1
Number of Successes
163

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Sample Size
227
Group 2
Number of Successes
154
Sample Size
262
Group 1 Proportion
0.718061674
Group 2 Proportion
0.58778626
Difference in Two Proportions 0.130275414
Average Proportion
0.648261759
Test Statistic
3.00875353
Two-Tailed Test
Lower Critical Value
-1.959961082
Upper Critical Value
1.959961082
p-Value
0.002623357
Referring to Table 12-5, if you want to test the claim that Resort 1 (Group 1)
has a higher proportion of satisfied guests compared to Resort 2 (Group 2),
the p-value of the test will be
a. 0.00262
b. 0.00262/2
c. 2*(0.00262)
d. 1 (0.00262/2)

Question
2 points
39
TABLE 15-5As a business statistics project, a student examined the factors
that determine parking meter rates throughout the campus and downtown
area. The campus is a group of buildings located in the center of downtown,
with an open central quadrangle.Data were collected for the price of parking
per hour and the number of blocks to the quadrangle. In addition, two dummy
variables were coded to indicate the location of the parking meter (See
below). The population regression model hypothesized is
Yi = 0 + 1x1i + 2x2i + 3x3i + i
where
Y is the price per hour
x1 is a numerical variable = the number of blocks to the quadrangle
(Note that
if x1 is less than 2, then the meter is on campus;
if x1 is less than 3, then the meter is downtown)
x2 is a dummy variable = 1 if inside downtown and off campus, 0 otherwise

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x3 is a dummy variable = 1 if outside downtown and off campus, 0 otherwise

The following Excel results are obtained.
Regression
Statistics
9.965
9
0.933
R Square
1
Adjusted R 0.929
Square
4
Standard 0.032
Error
7
Observation
58
s
Multiple R

d
SS
f
Regressi 0.80
3
on
94
5 0.05
Residual
4 80
5 0.86
Total
7 75
ANOVA

Signif
F
0.26 251.19 1.0964
98 95
E-31
0.00
10
MS F

StdErr
Pt Stat
or
value
Interce 0.511
37.467
0.0136
2.4904
pt
8
5
X1
0.004 0.0034
0.1898
1.3275
5
5.3581
X2
0.239 0.0123 19.394
E-26
2
2
X3
0.000 0.0123
0.9829
0.0214
2
Coeff

Referring to Table 15-5, if one is already outside of downtown and off

campus but decides to park an additional 3 blocks from the quadrangle, the
estimated average parking meter rate will
a. decrease by 0.0045.
b. decrease by 0.0135.
c. decrease by 0.0139.
d. decrease by 0.4979.

Question
2 points
40
TABLE 14-4A real estate builder wishes to determine how house size
(House) is influenced by family income (Income), family size (Size), and
education of the head of household (School). House size is measured in
hundreds of square feet, income is measured in thousands of dollars, and
education is in years. The builder randomly selected 50 families and ran the
ltiple regression. Microsoft Excel output is provided below:SUMMARY
OUTPUT
Regression
Statistics
Multiple R 0.865
R Square
0.748
Adjusted R
0.726
Square
Standard
5.195
Error
Observation
50
s

Signif
F
Regressi
3605.77 901.443 0.000
on
36
4
1
1214.22
Residual
26.9828
64
4 4820.00
Total
9 00
ANOVA df SS

MS

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Coeff
Intercep
1.633
t
5
0.448
Income
5
4.261
Size
5
School 0.651
7

StdErro
Pt Stat
r
value
5.8078

0.779
0.281 8

3.954 0.000
5
3
0.000
0.8062 5.286
1
0.1137

0.4319

0.138
1.509 3

Referring to Table 14-4, one individual in the sample had an annual income
of $10,000, a family size of 1, and an education of 8 years. This individual
owned a home with an area of 1,000 square feet (House = 10.00). What is the
residual (in hundreds of square feet) for this data point?
a. 8.10
b. 5.40
c. -5.40
d. -8.10

Question
2 points
41
The sample correlation coefficient between X and Y is 0.375. It has been
found out that the p-value is 0.256 when testing H0: = 0 against the twosided alternative H1: 0. To test H0: = 0 against the one-sided alternative
H1: > 0 at a significance level of 0.193, the p-value is
a. 0.256/2
b. 0.256
c. 1 0.256
d. 1 0.256/2

Question
2 points
42

Save

Save

TABLE 15-5As a business statistics project, a student examined the factors

that determine parking meter rates throughout the campus and downtown
area. The campus is a group of buildings located in the center of downtown,
with an open central quadrangle.Data were collected for the price of parking
per hour and the number of blocks to the quadrangle. In addition, two dummy
variables were coded to indicate the location of the parking meter (See
below). The population regression model hypothesized is
Yi = 0 + 1x1i + 2x2i + 3x3i + i
where
Y is the price per hour
x1 is a numerical variable = the number of blocks to the quadrangle
(Note that
if x1 is less than 2, then the meter is on campus;
if x1 is less than 3, then the meter is downtown)
x2 is a dummy variable = 1 if inside downtown and off campus, 0 otherwise
x3 is a dummy variable = 1 if outside downtown and off campus, 0 otherwise
The following Excel results are obtained.
Regression
Statistics
9.965
9
0.933
R Square
1
Adjusted R 0.929
Square
4
Standard 0.032
Error
7
Observation
58
s
Multiple R

d
SS
f
Regressi 0.80
3
on
94
5 0.05
Residual
4 80
5 0.86
Total
7 75
ANOVA

Signif
F
0.26 251.19 1.0964
98 95
E-31
0.00
10
MS F

StdErr
Pt Stat
or
value
Interce 0.511
37.467
0.0136
2.4904
pt
8
5
X1
0.004 0.0034
0.1898
1.3275
5
5.3581
X2
0.239 0.0123 19.394
E-26
2
2
X3
0.000 0.0123
0.9829
0.0214
2
Coeff

Referring to Table 15-5, predict the meter rate per hour if one parks outside of
downtown and off campus, 3 blocks from the quad.
a. $-0.0139
b. $0.2589
c. $0.2604
d. $0.4981

Question
2 points
43
If the Type I error () for a given test is to be decreased, then for a fixed
sample size n
a. the Type II error () will also decrease.
b. the Type II error () will increase.
c. the power of the test will increase.
d. a one-tailed test must be utilized.

Question
2 points
44
TABLE 11-3A realtor wants to compare the average sales-to-appraisal ratios
of residential properties sold in four neighborhoods (A, B, C, and D). Four
properties are randomly selected from each neighborhood and the ratios
recorded for each, as shown below.A: 1.2, 1.1, 0.9, 0.4

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B: 2.5, 2.1, 1.9, 1.6

C: 1.0, 1.5, 1.1, 1.3
D: 0.8, 1.3, 1.1, 0.7
Interpret the results of the analysis summarized in the following table:
Source
Neighborhoods
Error
Total

df

SS
2.97

MS
0.990

F
8.31

PR > F
0.0260

12
4.40

Referring to Table 11-3, the within group mean squares is

a. 0.119
b. 0.990
c. 1.109
d. 8.31

Question
2 points
45
TABLE 12-5The following EXCEL output contains the results of a test to
determine if the proportions of satisfied guests at two resorts are the same or
different.Hypothesized Difference
0
Level of Significance
0.05
Group 1
Number of Successes
163
Sample Size
227
Group 2
Number of Successes
154
Sample Size
262
Group 1 Proportion
0.718061674
Group 2 Proportion
0.58778626
Difference in Two Proportions 0.130275414
Average Proportion
0.648261759
Test Statistic
3.00875353
Two-Tailed Test
Lower Critical Value
-1.959961082
Upper Critical Value
1.959961082
p-Value
0.002623357
Referring to Table 12-5, if you want to test the claim that Resort 1 (Group 1)
has a lower proportion of satisfied guests compared to Resort 2 (Group 2),

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you will use

a. a t-test for the difference in two proportions.
b. a z-test for the difference in two proportions.
c. a test for the difference in two proportions.
d. a test for independence.

Question
2 points
46
If we use the chi-squared method of analysis to test for the differences among
4 proportions, the degrees of freedom are equal to:
a. 3
b. 4
c. 5
d. 1

Question
2 points
47
TABLE 10-5To test the effects of a business school preparation course, 8
students took a general business test before and after the course. The results
are given below.
Student Exam Score Before Course
Exam Score After Course
1
530
670
2
690
770
3
910
1,000
4
700
710
5
450
550
6
820
870
7
820
770
8
630
610
Referring to Table 10-5, at the 0.05 level of significance, the conclusion for
this hypothesis test would be:
a. the business school preparation course does improve exam score.
b. the business school preparation course does not improve exam score.
c. the business school preparation course has no impact on exam score.
d. It cannot be drawn from the information given.

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Question
2 points
48
How many Kleenex should the Kimberly Clark Corporation package of
tissues contain? Researchers determined that 60 tissues is the average number
of tissues used during a cold. Suppose a random sample of 100 Kleenex users
yielded the following data on the number of tissues used during a cold: = 52,
s = 22. Suppose the alternative we wanted to test was H1: < 60. State the
correct rejection region for = 0.05.
a. Reject H0 if t > 1.6604.
b. Reject H0 if t < -1.6604.
c. Reject H0 if t > 1.9842 or Z < -1.9842.
d. Reject H0 if t < -1.9842.

Question
2 points
49
TABLE 14-5A microeconomist wants to determine how corporate sales are
influenced by capital and wage spending by companies. She proceeds to
randomly select 26 large corporations and record information in millions of
dollars. The Microsoft Excel output below shows results of this ltiple
regression.SUMMARY OUTPUT
Regression
Statistics
Multiple
0.830
R
R Square 0.689
Adjusted
0.662
R Square
Standard 17501.6
Error
43
Observati
26
ons

ANOV
A
Regres
sion
Residu
al

d
SS
f
1557977
2
7040
2 7045072
3 780

Sign
if F
778988 25.4 0.00
8520
32 01
306307
512
MS

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Total

2 2262484
5 9820

StdErro
r
Interce 15800.00 6038.29
pt
00
99
Coeff

Capital 0.1245
Wages 7.0762

t
PStat value
2.61 0.015
7 4
0.60 0.548
0.2045
9 5
4.80 0.000
1.4729
4 1

Referring to Table 14-5, which of the following values for is the smallest
for which the regression model as a whole is significant?
a. 0.00005
b. 0.001
c. 0.01
d. 0.05

Question
2 points
50
TABLE 12-3A computer used by a 24-hour banking service is supposed to
randomly assign each transaction to one of 5 memory locations. A check at
the end of a days transactions gave the counts shown in the table to each of
the 5 memory locations, along with the number of reported errors.
Memory
1 2 3 4 5
Location:
Number of
82 100 74 92 102
Transactions:
Number of
Reported
11 12 6 9 10
Errors
The bank manager wanted to test whether the proportion of errors in
transactions assigned to each of the 5 memory locations differ.
Referring to Table 12-3, which test would be used to properly analyze the
data in this experiment?

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a. test for independence in a two-way contingency table

b. test for equal proportions in a one-way table
c. ANOVA F test for main treatment effect
d. Z test for the difference in two proportions