Practice

exam III
Fall, 2014

1. The number of television sets produced from an assembly line each day is known to
have a standard deviation of 17.4 sets per day. The production line averaged 452.3 sets
per day for 20 randomly selected days. Which of the following represents a 95%
confidence interval for the population mean number of sets per hour?
A) 452.3 9.4
B) 452.3 11.3
C) 452.3 13.8
D) 452.3 7.63

2. Which of the following statements is true regarding the width of a confidence interval
for a population proportion?
A) It is narrower for 95% confidence than for 90% confidence.
B) It is wider for a sample of size 80 than for a sample of size 40.
C) It is wider for 95% confidence than for 99% confidence.
D) It is wider when the sample proportion is 0.50 than when the sample
proportion is 0.20.

3. In a survey of 472 personnel directors, 63% thought that they would be hiring new
personnel over the next three months. Which of the following represents a 98%
confidence interval for the proportion of all personnel directors planning to hire personnel
over the next three months?
A) 0.63 0.057
B) 0.63 0.052
C) 0.63 0.042
D) 0.63 0.022

4. An unbiased estimator is:
A) a sample statistic, which has an expected value equal to the value of the
population parameter
B) any sample statistic used to approximate a population parameter
C) a sample statistic, which is usually less than the population parameter
D) any standard error of the sample mean

5. A 95% confidence interval estimate for a population mean is determined to be 65.48
to 76.52. If a 90% confidence interval for is constructed, it must be:
A) wider than the 95% confidence interval
B) the same as the 95% confidence interval
C) narrower than the 95% confidence interval
D) There is not enough information to answer this question

6. The lower limit of a confidence interval at the 95% level of confidence for the
population proportion if a sample of size 200 had 40 successes is:

A)
B)
C)
D)

0.2554
0.1446
0.2465
0.1535

7. The 95% confidence interval for the population proportion P given a sample size n =
2200 and sample proportion P = .214 is computed as
A) 0.214 1.96 x (0.00874)
B) 0.214 1.645 x (0.00874)
C) 0.214 1.96 x (0.000076)
D) 0.214 1.645 x (0.000076)

8. A husband and wife, both are statisticians, decided to construct a 90% confidence
intervals for an unknown population mean. The husband selected a random sample of 50
observations while his wife's sample size was 30 observations. Which of the following is
true?
A) The wife's confidence interval has a greater degree of confidence.
B) The husbands confidence interval has a greater degree of confidence.
C) The husbands confidence interval is narrower.
D) The husbands confidence interval is wider.

9. If a sample has 20 observations and a 90% confidence estimate for is needed, the
appropriate t-score is:
A) 2.12
B) 1.746
C) 2.131
D) 1.729

10. If a sample of size 121 is selected, the value of A for the probability P(-A t A) =
0.98 is:
A) 1.96
B) 2.576
C) 2.358
D) 2.326

11. For a sample of size 20 taken from a normally distributed population with standard
deviation equal to 7.2, a 90% confidence interval for the population mean would require
the use of:
A) t = 1.328
B) t = 1.729
C) z = 1.96
D) z = 1.645

12. You are interested in determining the average cost of a 3-minute telephone call
to locations within the continental U.S. What sample size must you take to be 96%

confident that the results will be within $.75 of the true mean cost per call given that
= 7.71 ?
A) 185
B) 445
C) 406
D) 574

13. A local company makes a candy that is supposed to weigh 1.00 ounces. A random
sample of 25 pieces of candy produces a mean of 0.996 ounces with a standard
deviation of 0.004 ounces. Construct a 98 percent confidence interval for the mean
weight of all such candy.
A) [0.9645, 1.0275]
B) [0.9860, 1.0060]
C) [0.9940, 0.9980]
D) [0.9956, 0.9964]

14. A local company makes a candy that is supposed to weigh 1.00 ounces. A random
sample of 25 pieces of candy produces a mean of 0.996 ounces with a standard
deviation of 0.004 ounces. How many pieces of candy must we sample if we want to
be 99 percent confident that the sample mean is within 0.001 ounces of the true
mean?
A) 126
B) 124
C) 107
D) 12

15. A manufacturer of dodge balls uses a machine to inflate its new balls to a
pressure of 13.5 pounds ( = 0.1). When the machine is properly calibrated, the
mean inflation pressure is 13.5 pounds, but uncontrollable factors can cause the
pressure of individual dodge balls to vary. For quality control purposes, the
manufacturer wishes to estimate the mean inflation pressure to within 0.025
pounds of its true value with 99 percent confidence. What sample size should be
used?
A) 677
B) 107
C) 35
D) 27

16. The Ohio Department of Agriculture tested 203 fuel samples across the state in
1999 for accuracy of the reported octane level. For premium grade, 14 out of 105
samples failed. (They did not meet the ASTM specification and the FTC octane
posting rule.) How many samples would be needed to create a 99 percent
confidence interval that is within 0.02 of the true proportion of premium grade fuel-
quality failures?
A) 4148
B) 2838

C) 1916
D) 744

17. You want to estimate the proportion of customers who are satisfied with their
supermarket at = .10 and within .025 of the true value. It has been estimated that
p = .85. How large of a sample is needed?
A) 1083
B) 553
C) 336
D) 71

18. A professor of statistics wants to test that the average amount of money a typical
college student spends per day during spring break is over $70. Based upon previous
research, the population standard deviation is estimated to be $17.32. The professor
surveys 35 students and finds that the mean spending is $72.43. Which of the following
statements is most accurate?
A) Unable to reject the null hypothesis at 0.10
B) Reject the null hypothesis at = 0.10
C) Reject the null hypothesis at = 0.05
D) Reject the null hypothesis at = 0.01

THE NEXT FOUR QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

The sales representative for a manufacturer of a new product claims that the product will
increase output per machine by at least 29 units per hour. A line manager installs the
product on 15 of the machines, and finds that the average increase was only 26 with a
standard deviation of 6.2.
19. What are the appropriate null and alternative hypotheses?
A) H 0 : = 29 Ha: 29
B) H 0 : 29 Ha: < 29
C) H 0 : = 29 Ha: > 29
D) H 0 : > 29 Ha: 29
20. Using a 5% significance level, which of the following statements is true?
A) Reject H 0 if t statistic < 1.761
B) Reject H 0 if t statistic > 2.16
C) Reject H 0 if t statistic < -1.761
D) Reject H 0 if t statistic < -2.16
21. The value of the test statistic is
A) 1.240
B) 1.874
C) -1.240
D) -1.874

22. Which of the following statements is most accurate?

A) Reject the null hypothesis at = 0.10.
B) Unable to reject the null hypothesis at 0.10.
C) Reject the null hypothesis at = 0.05, but not 0.10.
D) Reject the null hypothesis at = 0.01, but not 0.05.

THE NEXT TWO QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

The U.S. Postal Service advertises that at least 63.4% of all third class mail is read by the
recipients. An environmental group, concerned about waste and protecting the Northern
Spotted Owl habitat, wants to test this assertion. They take a sample of 220 households
and find that only 58.7% read their third class mail.
23. What are the null and alternative hypotheses for the environmental groups test?
A) H 0 : P = 0.634 and Ha: P > 0.634
B) H 0 : P = 0.634 and
Ha: P 0.634
C) H 0 : P 0.634 and
Ha: P < 0.634
D) H 0 : P > 0.634 and
Ha: P 0.634
24. What would the environmental groups decision rule be?
A) Reject H 0 if ( P P0 ) / P (1 P ) / n < - z / 2 .
B) Reject H 0 if ( P P0 ) / P0 (1 P0 ) / n < - z .
C) Reject H 0 if ( P P0 ) / P0 (1 P0 ) / n > - z / 2 .
D) Reject H 0 if ( P P0 ) / P0 (1 P0 ) / n > - z
THE NEXT TWO QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

A dean of college of business in the Midwest claims that he can correctly identify
whether a student is finance major or a music industry management major by the way the
student dresses. Suppose in actuality that he can correctly identify finance major 84% of
the time, while 16% of the time he mistakenly identifies music industry management
major as finance major. Presented with one student and asked to identify the major of this
student (who is either a finance or music industry management major), the dean considers
this to be a hypothesis test with the null hypothesis being that the student is finance major
and the alternative that the student is a music industry management major.
25. Which of the following statements illustrates a Type I error?
A) Saying that the student is music industry management major when in fact the
student is finance major.
B) Saying that the student is finance major when in fact the student is finance
major.
C) Saying that the student is finance major when in fact the student is music
industry management major
D) Saying that the student is music industry management major when in fact the
student is music industry management major.

26. Which of the following statements illustrates a Type II error?

A) Saying that the student is music industry management major when in fact the
student is finance major.
B) Saying that the student is finance major when in fact the student is finance
major.
C) Saying that the student is finance major when in fact the student is music
industry management major.
D) Saying that the student is music industry management major when in fact the
student is music industry management major.
27. Suppose that you want to test H 0 : P = 0.55 vs. Ha: P 0.55. The appropriate critical
value is:
A) z
B) z / 2
C) tn1, / 2
D) tn 1,
THE NEXT TWO QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

An accountant claims to be able to complete a standard tax return in under an hour. For a
random sample of 24 tax returns, the accountant averaged 63.2 minutes with a standard
deviation of 7.7 minutes.
28. What is the test statistic for this test?
A) Z = 2.04
B) t = 1.79
C) t = 2.04
D) Z = 1.79
29. What are the appropriate null and alternative hypotheses?
A) H 0 : = 60 and Ha: 60
B) H 0 : 60 and Ha: > 60
C) H 0 : = 60 and Ha: < 60
D) H 0 : > 60 and Ha: 60
THE NEXT THREE QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

An exit poll research firm claims that the proportion of Democratic voters in Salt Lake
City is at most 40 percent. A random sample of 175 voters was selected and found to
consist of 35 percent Democrats.
30. What is the value of test statistic for this sample?
A) +2.70
B) -0.85
C) -1.35
D) -1.96

31. What is the p-value for this test?

A) 0.0312
B) 0.0624
C) 0.0443
D) 0.0885
32. What conclusions can be drawn using a level of significance equal to 0.05?
A) Since the p-value equals 0.0312, fail to reject the null hypothesis and conclude
that the proportion of Democrats is not less than 40 percent.
B) Since the p-value equals 0.0885, fail to reject the null hypothesis and conclude
that the proportion of Democrats is not less than 40 percent.
C) Since the p-value equals 0.0624, reject the null hypothesis and conclude that
the proportion of Democrats is less than 40 percent.
D) Since the p-value equals 0.0443, reject the null hypothesis and conclude that
the proportion of Democrats is less than 40 percent.
33. Assume the following null and alternative hypotheses: H 0 : 0 and Ha: > 0 . In
addition, you know . Take a random sample of n observations and choose some value
What is the decision rule for this test?
A) Reject H 0 if ( X 0 ) / / n > z

B) Reject H 0 if ( X 0 ) / / n < za
C) Reject H 0 if ( X 0 ) / / n < z

( )

D) Reject H 0 if ( X ! 0 ) / ! n > z! /2
34. Assume the following null and alternative hypotheses: H 0 : = 277 and H1 : 277,
and you know that = 13.5. Take a random sample of 20 observations and let = 0.05.
For what values of sample mean will you reject the null hypothesis?
A) Sample mean > 282.9.
B) Sample mean = 271.1.
C) Sample mean < 282.9.
D) Sample mean > 271.1.
35. Suppose that we wish to test Ho: 20 versus Ha: < 20, where the population
standard deviation is known to equal 7. Also, suppose that a sample of 49 measurements
randomly selected from the population, and we adopt a 5% significance level. For what
values of the sample mean will we reject the null hypothesis?
A) 19
B) 18.6
C) 18
D) 19.4




Answer Key:
1. D 2. D 3. B 4. A 5. C
6. B 7. A 8. C 9. D 10. C
11. D 12.B 13. C 14. A 15. B
16. C 17. B 18. A 19. B 20. C
21. D 22. A 23. C 24. B 25. A
26. C 27. B 28. C 29. B 30. C
31. D 32. B 33. A 34. A 35. C