STAT 3005 On Line

Test 2

June 27, 2016

Take Home Test # 2 Directions

Please read carefully the following directions
1. You will submit your answers for this test on Scholar. You will have only one opportunity to submit the
test.
2. Complete this exam in your exam booklet first!! Do not open the test in Scholar until you are ready to
submit the answers to every question.
3. You will be given one hour and half to enter your answers. You will not be able to pause and return to it
later. After submitting your answers you will receive a grade, please note that the grade will be a partial
grade, there are questions I will manually grade.
4. After submitting your test, you are responsible for printing, saving, or writing down the submission ID
number given to you on the submission confirmation screen. Without it, you have no prove of making a
submission.
5. When submitting your answers, make sure to use a web browser that meets the minimum requirements
under the section named Getting Help with Scholar of your Scholar account.
6. All exam submissions are due before 06:55 pm on Tuesday June 28, 2016. If you are submitting your
answers and the deadline passes while using it, Scholar will only accept the answers that you saved up to
that point. Please do not wait to the last minute to submit your answers.
7. As the student, it is your responsibility to ask your professor to clarify anything that you do not
understand on the exam. Note that the professor will only entertain clarification questions.
8. Finally; by opening an attempt, you agree to abide by the Virginia Tech Honor Code. Please complete
this assignment in such a manner that your level of honesty is not questioned. You can use your book and
notes to answer questions. Any other assistance is not allowed and counts as a violation of the Honor
Code. The professor reserves the right to retest any student if necessary.

STAT 3005 On Line

Test 2

June 27, 2016

Honor Pledge: I have neither given nor received unauthorized aid on this exam AND I
will NOT disclose any information about this exam to anyone until after 06:55pm
Tuesday, June 28, 2016.

1. (4)A class evaluation is administered to students in a large statistics class. Among the

students answering the survey, 77% said they enjoy the class. The value 77% is an example
of a
a.
b.
c.
d.
2.

Population Statistic
Statistic
Parameter
Sample Parameter

(4)Determine whether each of the following statements is True or False.

a. The margin of error for a 95% confidence interval for the mean increases as the
sample size increases. FALSE
b. The margin of error for a confidence interval for the mean , based on a specified
sample size n, increases as the confidence level decreases. FALSE
c. The margin of error for a 95% confidence interval for the mean decreases as the
population standard deviation decreases. TRUE
d. The sample size required to obtain a confidence interval of specified margin of error m
increases as the confidence level increases. TRUE
For questions 3 to 5 use the following:

A one-question survey is to be distributed to a random sample of 1500 adults in Ohio. The question
asks if they support an increase in the state sales tax from 5% to 6%, with the additional revenue
)
p
going to education. Let
denote the proportion of adults in the sample who say they support the
increase. Suppose that 40% of all adults in Ohio support the increase.
)
p

p
3. (3)What is the mean,
a. 5%
b. 6%
c. 40% 5%
d. 0.40

, of the sampling distribution of

)
p

p
4. (3)What is the standard deviation,
a. 0.00016
b. 0.0126
c. 0.24
d. 0.40

, of the sampling distribution of

STAT 3005 On Line

Test 2

June 27, 2016

)
p
5. (5)What is the probability that
a. Less than 0.0001
b. About 0.1
c. 0.4602
d. 0.50

will be more than 50%?

For questions 6 to 8 use the following:

The candy company that makes M&M's claims that 10% of the M&M's it produces are green.
Suppose that the candies are packaged at random in large bags of 200 M&M's. When we randomly
pick a bag of M&M's we may assume that this represents a simple random sample of size n = 200.
Suppose we wish to test H0: p = 0.10 versus Ha: p 0.10.
p
6. (3)Under the null hypothesis, what is the value of the standard error of

, the sample

proportion of green M&M's in a bag of 200?

a.
b.
c.
d.

0.0015
0.021
0.09
18

7. (5)Suppose that in the randomly selected bag of M&M's there are only 12 green M&M's.

What is the value of the large-sample z statistic?

a. Z = -1.886
b. Z = -0.444
c. Z = 1.886
d. Z = 0.444
8. (3)What is the value of the corresponding P-value?
a. P-value = 0.0297
b. P-value = 0.0593
c. P-value = 0.06
d. P-value = 0.3284
For questions 9 and 10 use the following:

The candy company that makes M&M's claims that 10% of the M&M's it produces are green.
Suppose that the candies are packaged at random, and the small bags contain 25 M&M's. When
we randomly pick a bag of M&M's, we may assume that this represents a simple random
sample of size n = 25. Suppose that in a randomly selected small bag of M&M's, there are five
green M&M's.
p%
9. (3)What is the value of the standard error of ?
a. 0.0063
3

STAT 3005 On Line

Test 2

June 27, 2016

b. 0.0794
c. 0.08
d. 0.10
10. (5)At the 1% significance level, are the data statistically significant for testing if the true

proportion of green M&M's is indeed equal to 10%?

a. Yes
b. No
c. This cannot be determined from the information given.
For questions 11 and 12 use the following:

A study was conducted at the University of Waterloo on the impact characteristics of football
helmets used in competitive high school programs. There were three types of helmets
considered, classified according to liner type: suspension, padded-suspension, and padded. In
the study, a measurement called the Gadd Severity Index (GSI) was obtained on each helmet
using a standardized impact test. A helmet was deemed to have failed if the GSI was greater
than 1200. Of the 81 helmets tested, 29 failed the GSI 1200 criterion.
11. (4)Assume that the suspension helmets tested were selected at random. What are the point

estimates of the proportion of suspension helmets that fail and the standard error of the
estimate, respectively?
a. 0.36; 0.0028.
b. 0.64; 0.053.
c. 0.36; 0.053.
d. 0.64; 0.0028.
e. 0.36; 0.089.
12. (8)Based on the sample results, what is the 90% confidence interval estimate for the true

population proportion of suspension helmets that would fail the test?

a.
b.
c.
d.
e.

(0.304, 0.416)
(0.256, 0.464)
(0.213, 0.507)
(0.272, 0.448)
(0.553, 0.737)

For questions 13 to 16 use the following:

A simple random sample of 100 postal employees is used to test if the average time postal
employees have worked for the postal service has changed from the value of 7.5 years recorded 20
x

years ago. The sample mean was = 7 years with a standard deviation of s = 2 years. Assume the
distribution of the time the employees have worked for the postal service is approximately Normal.
The hypotheses being tested are H0: = 7.5, Ha: 7.5. A one-sample t test will be used.
13. (2)What are the appropriate degrees of freedom for this test?
4

STAT 3005 On Line

a.
b.
c.
d.

Test 2

June 27, 2016

7
19
99
100

14. (5)What is the P-value for the one-sample t test?

a. P-value < 0.01
b. 0.01 < P-value < 0.05
c. 0.05 < P-value < 0.10
d. P-value > 0.10
15. (8)What is a 95% confidence interval for , the population mean time the postal service

employees have spent with the postal service?

a. 7 2
b. 7 1.984
c. 7 0.4
d. 7 0.2
16. (3)Suppose the mean and standard deviation obtained were based on a sample of size n = 25

postal workers rather than 100. What do we know about the value of the P-value?
a. It would be larger.
b. It would be smaller.
c. It would be unchanged because the difference between

and the hypothesized value

= 7.5 is unchanged.
d. It would be unchanged because the variability measured by the standard deviation stays

the same.
For questions 17 to 19 use the following:

The Housing Commission of Woodcreek County is interested in finding out more about the number
of rental units that do not meet standard living requirements in both Ridge Township and Crystal
Township. Units are randomly selected in both cities. Of the 85 units sampled in Ridge Township
(call this township 1), 17 do not meet the requirements. Of the 80 units sampled in Crystal
Township (call this township 2), 24 do not meet the requirements.
17. What are the hypotheses to test if the proportions of rental units that do not meet the

requirements in the two townships are equal or not?

18. What is the value of the z statistic for testing for equality of the proportions of rental units

that do not meet the requirements in the two townships?

19. At the 10% significance level, is the observed difference in sample proportions statistically

significant? Explain briefly. Make sure to have your conclusions in terms of the problem.

STAT 3005 On Line

Test 2

June 27, 2016

For questions 20 to 23 use the following:

When firm A combines with firm B and only firm A survives, this is called a merger. During a
recent wave of merger activity, researchers compared profiles of a sample of 18 firms that merged
with those of a sample of 14 firms that did not merge. The table below displays summary measures
obtained on the price-earnings ratios of these firms:
1 Non-merged Firms
2 Merged Firms

n
14
18

Sample Mean
9.9
6.1

Sample Standard Deviation

6.1
5.3

20. What are the hypotheses to test if the merged firms have a smaller price-earnings ratio, on

average, than the non-merged firms?

21. Assume price-earnings ratios are Normally distributed, and population variances unknown

but assumed equal. What is the value of the two-sample t statistic?

22. What can we say about the value of the P-value?
23. At the 5% significance level, is the observed difference in the means statistically

significant? Explain briefly. Make sure to reach your conclusions in terms of the problem.