STAT 125-HK.

Business Statistics Midterm Exam

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2 points
on 1

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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

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2 points
on 2
The process of using sample statistics to draw conclusions about
true population parameters is called
a. statistical inference.

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b. the scientific method.

c. sampling.
d. descriptive statistics.

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2 points
on 3

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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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2 points
on 4

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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

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2 points
on 5

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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.

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on 6

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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.

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2 points
on 7

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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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2 points
on 8
Which of the following is not an element of descriptive statistical
problems?

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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.

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on 9

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Which of the following statistics is not a measure of central

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

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2 points
on 10

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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

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2 points
on 11

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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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2 points
on 12

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TABLE 2-6

A 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

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

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2 points
on 13
TABLE 2-5

The following are the durations in minutes of a sample of long-distance phone

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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%

Questi
2 points
on 14

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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

Questi
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on 15

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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.

Questi
2 points
on 16

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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.

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2 points
on 17

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A population frame for a survey contains a listing of 72,345 names.

Using a 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

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2 points
on 18

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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

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

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on 19

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Referring to the histogram from Table 2-3, how many graduating

seniors attended the luncheon?
a. 4
b. 152
c. 275
d. 388

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TABLE 2-4

A 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.
Stem

Leaves

24

03478999

0112345

12566

01

8
9

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

Questi
2 points
on 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

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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.

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on 22

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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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on 23

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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.

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on 24

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TABLE 2-5

The following are the durations in minutes of a sample of long-distance 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, if 10 calls lasted 30 minutes or more, how many calls
lasted less than 5 minutes?
a. 10
b. 185
c. 295
d. 500

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2 points
on 25

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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
b. 0.25

c. 0.667
d. 0.733

Questi
2 points
on 26

Sav
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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

Questi
2 points
on 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.

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Questi
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on 28

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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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on 29

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TABLE 2-6

A 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

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

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on 30

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The collection of all possible events is called

a. a simple probability.
b. a sample space.
c. a joint probability.
d. the null set.

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on 31

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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.

Questi
2 points
on 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.

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Questi
2 points
on 33

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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.

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2 points
on 34

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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

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2 points
on 35

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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?
a. 14%

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

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on 36

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TABLE 2-5

The following are the durations in minutes of a sample of long-distance 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, if 100 calls were randomly sampled, how many calls
lasted 15 minutes or longer?
a. 10
b. 14
c. 26
d. 74

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on 37

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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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on 38

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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.

Questi
2 points
on 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.

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c. All first-year Drummand University students.

d. The 250 students that were monitored.

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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%

Questi
2 points
on 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.

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Questi
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on 42

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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

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

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on 43

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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.

Questi
2 points
on 44
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 the residents of a
household do not own 2 cars and have an income over $25,000 a

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year is:
a. 0.12
b. 0.18
c. 0.22
d. 0.48

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on 45

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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.

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on 46

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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.

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on 47

e
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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on 48

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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

Questi
2 points
on 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.

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Questi
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on 50

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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.

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

Questi
2 points
on 1

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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.

Questi
2 points
on 2
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

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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

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on 3

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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.

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on 4
TABLE 13-2

A 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
Falls

1.30 100

Hudson 1.60 90
Ellswort
1.80 90
h
Prescot
2.00 40
t
Rock
Elm

2.40 38

Stillwat
2.90 32
er

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

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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.

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TABLE 14-5

A 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.
Error
643
Observat
26
ions

ANOV d
SS
A
f

MS

Sig
nif
F

Regre
155797 778988 25. 0.0
2
ssion
77040 8520 432 001
Residu 2 704507 306307
al
3 2780
512
Total

2 226248
5 49820

Coeff

t
PStdErro
Sta valu
r
t
e

Interc 15800.0 6038.2 2.6 0.01

ept
000
999
17 54
Capita
0.6 0.54
0.1245 0.2045
l
09 85
Wages 7.0762 1.4729

4.8 0.00
04 01

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

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on 7

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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
c. equal to
d. not comparable to

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2 points
on 8
TABLE 11-1

Psychologists 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

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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.
Source

d
SS
f

MS

PR
>F

Subject
1380.2 1380. 4.2 0.0
visibilit 1
4
24
6
43
y
Test
1325.1 1325. 4.0 0.0
taker
1
6
16
9
50
success
Interact 3385.8 3385. 10. 0.0
1
ion
0
80
45 02
Error

3 11,664 324.0
6 .00
0

Total

3 17,755
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 the success of the test taker.
d. All of the above are correct interpretations.

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TABLE 13-1

A 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.

Questi
2 points
on 10
TABLE 14-1

Sav
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A 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:
Employ
Y
ee

X1 X2

10
10 7
0

90 3

10

80 8

70 5

60 5

50 7

40 1

30 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

Questi
2 points
on 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

Sav
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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

Questi
2 points
on 12
TABLE 15-4

In 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 +
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 0.98

Sav
e

5
R Square

0.97
0

Standard
Error

9.5

Observatio
20
ns

ANOVA

df SS

MS

Signif
F

Regressi
2832
62. 0.000
5
5664
on
4
2 1
Residual 14 1279 91
Total

19

2906
3

t
Coe StdErr
PSta
ff
or
value
t
Intercept

35.7
32.1

0.383
0.9
4
0

Size

12.2 5.9

2.0 0.059
5 4

Cove

104. 53.5
3

0.071
1.9
5
5

Size*Cove 17.0 8.5

1.9 0.066
9 1

SizeSq

0.220
1.2
4
8

-0.3 0.2

SizeSq*Co
-0.3 0.3
ve

0.274
1.1
9
3

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.

Questi
2 points
on 13

Sav
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TABLE 10-2

A 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

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

Questi
2 points
on 14

Sav
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TABLE 10-3
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.

Questi
2 points
on 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.

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d. n 2.

Questi
2 points
on 16

Sav
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TABLE 12-1

A 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 non-Hispanic) 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?
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.

Questi
2 points
on 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.

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d. no conclusion should be reached.

Questi
2 points
on 18

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TABLE 14-1

A 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:
Employ
Y
ee

X1 X2

10
10 7
0

90 3

10

80 8

70 5

60 5

50 7

40 1

30 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

Questi 2 points

Sav

on 19

e
TABLE 10-9

A 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.
Material

Primary
Supplier

Secondary
Supplier

Difference

$55

$45

$10

$48

$47

$1

$31

$32

-$1

$83

$77

$6

$37

$37

$0

$55

$54

$1

Sum:

$309

$292

$17

Sum of Squares:

$17,573

$15,472

$139

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.

Questi
2 points
on 20

Sav
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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
d. -1.96

Questi
2 points
on 21

Sav
e

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.

Questi
2 points
on 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?

Sav
e

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.

Questi
2 points
on 23

Sav
e

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

Wall Signs

Map

Interior

Exterior

141

224

119

339

238

139

85

226

94

129

126

130

a. Completely randomized design

b. Randomized block design
c. 2 x 2 factorial design
d. Kruskal-Wallis rank test

Questi
2 points
on 24

Sav
e

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.

Questi
2 points
on 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.

Sav
e

Questi
2 points
on 26

Sav
e

TABLE 10-2

A 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

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

Questi
2 points
on 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

Sav
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a. the Z test.
b. the chi-squared test.
c. Both of the above.
d. None of the above.

Questi
2 points
on 28

Sav
e

TABLE 11-4

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. An Excel output of the appropriate analysis is given below:
ANOVA
Source
of
SS
Variati
on
Signs

14008
.33

d
MS
f

PF crit
value

14008 0.112 5.317

.33
67
645

Startin
g
12288
Locatio
n

2.784
395

0.133 5.317
74
645

Interac
48
tion

48

0.919 5.317
506 645

Within

35305
.33

4413.
167

Total

61649 1
.67
1

Referring to Table 11-4, the within (error) degrees of freedom is

a. 1
b. 4
c. 8
d. 11

Questi
2 points
on 29

Sav
e

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-toappraised 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
c. the Wilcoxon Rank Sum Test, using the test statistic T1
d. the Wilcoxon Rank Sum Test, using the test statistic Z

Questi
2 points
on 30
TABLE 12-13

Parents 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

Sav
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Average time
spent reading
storybooks
Average
Less
time
than
spent
1
watching
hour
TV

Betwe
en
1 and
2
hours

More
than
2
hours

Less than
90
2 hours

85

130

More than
655 32
2 hours

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

Questi
2 points
on 31

Sav
e

TABLE 10-2

A 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

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.

Questi
2 points
on 32

Sav
e

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.

Questi
2 points
on 33
TABLE 14-3

An 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

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partially reproduced below.

SUMMARY OUTPUT
Regression
Statistics
Multiple R

0.99
1

R Square

0.98
2

Adjusted R 0.97
Square
6
Standard
Error

0.29
9

Observatio
10
ns

ANOVA

d
SS
f

MS

Signi
fF

Regress 33.41 16.70 186.3 0.00

2
ion
63
82
25
01
Residua 0.627 0.089
7
l
7
7
Total

34.04
40

Coeff

StdErr
Pt Stat
or
value

Interce
0.567 0.883
0.086
pt
4
0.152 7
1
GDP

0.765 0.057 13.34 0.000

4
4
0
1

Price

0.002 0.833
0.000
8
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

Questi
2 points
on 34

Sav
e

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
d. parameter

Questi
2 points
on 35
TABLE 13-7

An 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

Sav
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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.
Standa
Coeffici
rd
T Stat
ents
Error

Pvalue

Inter 4.8660 0.3574 13.613 8.793

cept 04258 3609 63441 2E-13
2.949
0.0715
S&P 0.5025
7.0186 42E97152
13506
2425 07

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.

Questi
2 points
on 36
Why would you use the Tukey-Kramer procedure?
a. To test for normality.
b. To test for homogeneity of variance.

Sav
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c. To test independence of errors.

d. To test for differences in pairwise means.

Questi
2 points
on 37

Sav
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TABLE 12-6

One 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

Defec
Avera
t
9
ge
Rate
Low

19

23

10

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

Questi 2 points

Sav

on 38

e
TABLE 12-5

The 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 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)

Questi
2 points
on 39

Sav
e

TABLE 15-5

As 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
Multiple R

9.965
9

R Square

0.933
1

Adjusted R 0.929
Square
4
Standard
Error

0.032
7

Observatio
58
ns

ANOVA

d
SS
f

MS

Signif
F

Regress 0.80 0.26 251.1 1.096

3
ion
94 98 995
4E-31
Residua 5 0.05 0.00
l
4 80 10
Total

5 0.86
7 75

Coeff

StdErr
Pt Stat
or
value

Interce 0.51 0.013 37.46 2.490

pt
18
6
75
4
X1

0.003
0.189
0.00
1.327
4
8
45
5

X2

0.012
5.358
0.23
19.39
3
1E-26
92
42

X3

0.012
0.982
0.00
0.021
3
9
02
4

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.

Questi 2 points

Sav

on 40

e
TABLE 14-4

A 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

0.86
5

R Square

0.74
8

Adjusted R 0.72
Square
6
Standard
Error

5.19
5

Observatio
50
ns

ANOVA

d
SS
f

MS

Regressi
on

3605.77 901.44
36
34

Residual

1214.22 26.982
64
8

Total

4 4820.00
9 00

Signi
fF
0.00
01

Coeff

StdErr
Pt Stat
or
value

Interce
5.807 0.779
1.633
pt
8
0.281 8
5
Income

0.448 0.113 3.954 0.000

5
7
5
3

Size

4.261 0.806
0.000
5.286
5
2
1

0.431 0.138
School 0.651
9
1.509 3
7

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

Questi
2 points
on 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 two-sided 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

Sav
e

d. 1 0.256/2

Questi
2 points
on 42

Sav
e

TABLE 15-5

As 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
Multiple R

9.965
9

R Square

0.933
1

Adjusted R 0.929
Square
4
Standard

0.032

Error

Observatio
58
ns

ANOVA

d
SS
f

MS

Signif
F

Regress 0.80 0.26 251.1 1.096

3
ion
94 98 995
4E-31
Residua 5 0.05 0.00
l
4 80 10
Total

5 0.86
7 75

Coeff

StdErr
Pt Stat
or
value

Interce 0.51 0.013 37.46 2.490

pt
18
6
75
4
X1

0.003
0.189
0.00
1.327
4
8
45
5

X2

0.012
5.358
0.23
19.39
3
1E-26
92
42

X3

0.012
0.982
0.00
0.021
3
9
02
4

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

Questi
2 points
on 43

Sav
e

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.

Questi
2 points
on 44

Sav
e

TABLE 11-3

A 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
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

df

Neighborhoods
Error
Total

SS

MS

PR > F

2.97

0.990

8.31

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

Questi
2 points
on 45
TABLE 12-5

The 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),
you will use
a. a t-test for the difference in two proportions.
b. a z-test for the difference in two proportions.

Sav
e

c. a test for the difference in two proportions.

d. a test for independence.

Questi
2 points
on 46

Sav
e

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

Questi
2 points
on 47

Sav
e

TABLE 10-5

To 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

530

670

690

770

910

1,000

700

710

450

550

820

870

820

770

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.

Questi
2 points
on 48

Sav
e

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.

Questi
2 points
on 49
TABLE 14-5

A 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.

Sav
e

SUMMARY OUTPUT
Regression
Statistics
Multiple
0.830
R
R Square 0.689
Adjusted
0.662
R Square
Standard 17501.
Error
643
Observat
26
ions

ANOV d
SS
A
f

MS

Sig
nif
F

Regre
155797 778988 25. 0.0
2
ssion
77040 8520 432 001
Residu 2 704507 306307
al
3 2780
512
Total

2 226248
5 49820

Coeff

t
PStdErro
Sta valu
r
t
e

Interc 15800.0 6038.2 2.6 0.01

ept
000
999
17 54
Capita
0.6 0.54
0.1245 0.2045
l
09 85
Wages 7.0762 1.4729 4.8 0.00

04 01

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

Questi
2 points
on 50

Sav
e

TABLE 12-3

A 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
Location:

1 2

4 5

Number of
10
9 10
Transactio 82
74
0
2 2
ns:
Number of
Reported 11 12 6
Errors

9 10

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?
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

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