RES 342 Final solution Sample - All 54 questions answers - A++ (7)
RES 342 Final solution Sample - All 54 questions answers - A++ (7)
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Date Created: 11/11/15
1) What are the critical zvalues for a twotailed hypothesis test if the significant level = 0.01? A. ± 1.96 B. ± 1.65 C. ± 2.58 D. ± 2.33 2) If the decision is to reject the null hypothesis of no difference between two population parameters, z distribution at the .01 significant level, what is the correct statement of the alternate hypothesis and rejection region? A. µ1 ≠ µ2 ; z > 2.58 and z < negative 2.58 B. µ1 > µ2; z > 2.33 C. µ1 > µ2; z < negative 2.33 D. µ1 ≠ µ2 ; z > 1.96 and z < negative 1.96 3) The statement that determines if the null hypothesis is rejected or not is called the A. decision rule B. critical value C. alternate hypothesis D. test statistic 4) Doi Winery has two wine shops in the neighboring towns of Seamen and Batavia. The favorite wine, as advertised, is Raspberry wine. A survey of 300 customers at the Seamen store revealed that 225 individuals preferred the Raspberry wine while 290 out of 400 in Batavia preferred the same flavor. To test the hypothesis that there was no difference in preferences in the two towns, what is the alternate hypothesis? A. µ1 < µ2 B. µ1 ≠ µ2 C. µ1 = µ2 D. µ1 > µ2 5) The Roman Senate has become concerned about the loyalty of the army in Gaul commanded by Julius Caesar. They claim that, of the 80,000 men in the army, at least 28,000 are foreign barbarians. Caesar believes there are fewer barbarians, so the Senate should not worry. He polls one legion of 1,000 men and finds that 340 of them are barbarians. What is the test statistic for this hypothesis test? A. (0.350.34)/100 B. (0.340.35)/0.063 C. (0.350.34)/0.2275 D. (0.340.35)/0.015 6) A statistician was setting up a hypothesis test with a level of significance dictated by upper management. However, she was concerned that the test she wished to perform might have unacceptable large possibilities of Type II error, ß. Which of the following would solve this problem? A. Convince upper management to use a larger pvalue. B. Convince upper management to use a smaller pvalue. C. Convince upper management to use a larger sample. D. Convince upper management to reduce the level of significance of the test. 7) If the paired differences are normal in a test of mean differences, then the distribution used for testing is the A. normal distribution B. Student t distribution C. ChiSquare D. F distribution 8) Thomas Delivery has a fleet of 24 trucks that are utilized for the companies; business. Electro Lite, a manufacturer of spark plugs, claims that its spark plugs have an average life in excess of 25,000 miles. The purchasing agent at Thomas Delivery purchased 24 sets and found that the sample average life was 26,300 miles, the sample standard deviation was 1,500 miles, and the computed test statistic was t = 3.423. Based on these findings, at the 0.05 level, is there enough evidence to accept the manufacturer's claim? A. ElectroLite claims are not supported by the test results. B. ElectroLite claims are just an advertising promotion. C. ElectroLite claims cannot be supported or denied with the test results. D. ElectroLite claims are supported; the spark plugs do exceed the mean of 25,000 miles. 9) When testing for differences between two means, the BehrensFisher problem arises when the sample populations are A. normal with equal variances. B. are nonnormal and have equal variances. C. are normal with unequal variances. D. are nonnormal and have unequal variances. 10) Flash Jolt, a manufacturer of camera equipment, annually introduces new models in the fall of the year. At the conclusion of the Christmas season, retail dealers are contacted regarding their stock on hand of each piece of equipment. It has been discovered that unless 47% of the new equipment ordered by the retailers in the fall had been sold by Christmas, immediate production cutbacks are needed. At the end of the 2009 Christmas shopping season a survey of 100 dealers indicated that 45% of Flash Jolt equipment had been sold. It was decided to continue production levels at the current levels. The statistical test was conducted at the 0.05 level. Computed z = – 0.40. A. Wrong decision, should have cut back production B. Cannot determine based on information given C. Correct decision, not a significant difference D. The two percentage points be attributed to sampling error 11) Newton’s, a tire manufacturer, wanted to set a mileage guarantee on its new Road Warrior 60 tire. A sample test of 500 tires revealed that the tire’s mileage is normally distributed with a mean of 50,000 miles and a standard deviation of 1,750 miles. The warranty on the tires is presently set at 47,500 miles. The ztest statistic result was 1.43. The manufacturer wanted to determine if the tires were exceeding the guarantee. At the .05 significant level, it was concluded that the tires are exceeding the manufacturer’s guarantee. A. The decision needs to be delay until more data is collected. B. A decision cannot be made. A. The decision needs to be delay until more data is collected. C. This was the correct decision. D. The evidence does not support this decision. 12) One hundred women were polled and 60 reported successfully communicating an automobile problem to an auto repairman. A sample of 150 men had 95 reporting the same success. The value of the test statistic for a test of the equality of proportions is A. 0.5319. B. 0.419. C. 0.7293. D. 0.2702. 13) Indy H2O is a water bottling company. They are looking at two different bottling manufacturers’ equipment for the purpose of replacing some old equipment. The net weights of a sample of bottles filled by a machine manufactured by WTR, and the net weights of a sample filled by a similar machine manufactured by Target are (in grams): WTR: 8, 9, 7, 8, 9, and 10 Target: 8, 10, 7, 11, 9, 12, 8, and 9 Testing the claim at the 0.05 level that the mean weight of the bottles filled by the Target machine is greater than the mean weight of the bottles filled by the WTR machine, what is the critical value? A. 2.179 B. 1.782 C. 2.145 D. 1.761 14) When is it appropriate to use the paired difference ttest? A. Four samples are compared at once B. Two independent samples are compared C. Any two samples are compared D. Two dependent samples are compared A. Four samples are compared at once 15) The owner of a bottling company is considering buying a new bottling machine. He has been testing two different machines that are being considered. After collecting 300 samples from each machine over several weeks, he was able to conduct a two sample z test.<p>He decided to utilize a 0.05 significant level for the test. The test was to address the claim that the mean weight of the bottles filled by the Orno machine was greater than the mean weight of the bottles filled by the Edne machine. The test statistics was 2.21. What is the decision regarding the hypothesis? A. There is not enough data available to answer the question. B. Accept the null hypothesis; there is not a significant difference. C. Reject the null hypothesis; there is a significant difference. D. This is a two tail test and the critical value for the test is 1.96. 16) A consumer researcher is testing the difference between two proportions at the 0.05 level of significance. The researcher was utilizing the z distribution for the test. If the computed test statistic z value was 1.12, what was the decision? A. Reject the null hypothesis. B. Do not reject the null hypothesis. C. Take a larger sample. D. Reserve judgment. 17) If the paired differences are normal in a test of mean differences, the distribution used for testing is the A. normal distribution. B. chisquare. C. student t distribution. D. f distribution. 18) What is the critical value for a onetailed hypothesis test in which a null hypothesis is tested at the 5% level of significance based on two samples, both sample sizes are 13? A. 1.708 B. 1.711 C. 2.060 D. 2.064 19) A trolley system is being planned for the downtown area of Cincinnati, Ohio. To be able to proceed with this project, planners have indicated that at least 20% of the residents of the areas that would be covered need to support the idea. To determine the feelings of these city residents, a sample of 300 residents was taken. Seventeen percent of the sample responded that they would ride the trolley. Is this enough evidence for the project to proceed? Use the .05 level of significant. A. There is enough evidence; move forward with the project. B. A ttest would be the best choice for the test. C. There is not enough evidence to support the moving forward with the project. D. A decision cannot be made either yes or no. 20) New college business graduates are finding it difficult to get a job. A business journal has reported that only one in five graduates is able to find a job within 6 months of their graduation. A report by the University of Phoenix indicated that out of a survey of 300 recent business graduates, 75 had jobs. You are a business major at the University of Phoenix and have a concern about getting a job. Based on this data, will a graduate of the University of Phoenix have a better chance of getting a job in the first 6 months after graduation? Use the .05 significant level for the test. A. No, there is not a significant difference. B. Cannot be predicted based on this data. C. Yes, there is a significant difference. D. The business journal information is incorrect. 21) Watson’s TV claims that their televisions have the best performance record on the market. They advertise that after 3 years only 10% of their sold televisions have had any type of repairs. The president of the company wanted to confirm that this statement was correct. To do this, a sample of 60 sets was taken of sets that had been sold and were at least 3 years old. Twelve percent of these television sets had been in for repair. The null hypothesis is that there is no difference between the stated percent and the sample data. At the .05 significant level, what can we conclude about the null hypothesis? A. The null hypothesis is rejected and the difference is significant. B. The data fails to reject the null hypothesis. C. The sample is too small to be able to decide. D. The difference is too close to be able to decide. 22) Analysis of variance is used to A. compare nominal data B. compute t test C. compare population proportion D. simultaneously compare several population means 23) Which is NOT a valid assumption for the utilization of the ANOVA test? A. The samples are independent. B. The populations have equal standard deviations. C. The MSE/MST provides the test statistics for the F distribution. D. The samples are from populations that follow the normal distribution. 24) The F distribution is utilized with the ANOVA test. There are some basic assumptions associated with the distribution. Which of these assumptions is NOT valid? A. It is negatively skewed. B. It is a continuous distribution. C. There is a family of distributions. D. Its values cannot be negative. 25) Each Christmas season there is a hot toy that everyone must have, especially if you are under the age of nine. This prized toy can be purchased at many different types of stores. A consumer group wanted to determine if there was a difference in price for the toy depending on where the toy was purchased. Is the price of this toy the same for the different stores or is there a difference? In the Cincinnati area there are three main stores of concern: Wal-Mart, Meijer, and Toys R Us. Data was collected from different stores around the city. Prices will vary depending on the location of the store. The collected data is as follows (in dollars): WalMart Meijer Toys R Us 15 18 20 12 17 19 12 14 16 14 15 20 13 17 19 Conduct an ANOVA analysis of the data. Is there a significant difference between the three stores? A. The sample needs to be larger to be able to answer the question. B. There is not a significant difference between the three stores. C. A ttest would have been a better test. D. There is a significant difference between the three stores. 26) In ANOVA analysis, when the null hypothesis is rejected, we can find which means are different by A. constructing confidence intervals B. adding another treatment C. doing an additional ANOVA D. doing a t test 27) Totto, an automobile manufacturer, has designed a radically new engine and wants to recommend the grade of gasoline that will have the best fuel economy. The four grades are: regular, below regular, premium, and super premium. The test car made three trial runs on the test track using each of the four grades and the miles per gallon were recorded. At the 0.05 level, what is the critical value of F used to test the hypothesis that the miles per gallon for each fuel are the same? A. 1.96 B. 4.07 C. 2.33 D. 12.00 28) What nonparametric test is used when the assumptions for the parametric analysis of variance (ANOVA) cannot be met? Its purpose is to test whether three or more populations are equal. The data must be at least ordinal scaled. A. Students' t B. KruskalWallis C. MannWhitney D. ANOVA 29) What are the assumptions required for nonparametric tests regarding the shape of the population distribution? A. The distribution appears like a bellshaped curve. B. The samples are independent. C. The populations have equal standard deviations. D. No assumptions are required. 30) The chisquare distribution becomes more symmetrical as A. degrees of freedom increase B. degrees of freedom decrease C. number of variables increase D. the chisquare value increases 31) Rachael Smith is the personnel manager at Johnson and Johnston, an accounting firm. She is concerned about tardiness, which seems to be an increasing problem, especially after days off work. She decided to sample the records to determine if tardiness was distributed evenly throughout the 6-day work week. The null hypothesis to be tested was: Tardiness is distributed evenly throughout the week. The 0.01 level was used as the significant level. The sample results were: Day of Week Number Absent Monday 12 Tuesday 9 Wednesday 11 Thursday 10 Friday 9 Day of Week Number Absent Saturday 9 What is the critical value of chisquare with a significant level of = 0.05? A. 15.033 B. 13.388 C. 11.070 D. 12.592 32) The Ohio Department of Highways is in the process of selecting a new paint for highway use. Four different paint companies have been contact regarding this need and each of the companies has supplied paint for testing. Before deciding the winner of the new contract, a test was conducted to determine which paint was the best, in terms of how long it would last. The results of the test are as follows: Category Paint A Paint B Paint C Paint D Days 345 320 350 310 Each paint is expected to last 330 days. Is there a significant difference between these four paints? Use the chi square distribution at the .05 significant level to answer this question. A. A decision cannot be made; more testing is required. B. Paint B and D are significantly different then paints A and C. C. The test result is greater than the critical value, so there is a significant difference. D. The test result is less than the critical value, so there is not a significant difference. 33) The reason the computed chisquare value is positive is because the difference between the observed and expected frequencies is A. always positive B. uniform C. squared D. linear 34) Clermont Savings and Loan has four branches located throughout the county. The activity level at these four branches appears to be different but the manger needs verification. Turnover rate, how quickly money is withdrawn from an account after being deposited, was selected as the variable to be measured. A total sample of 22 accounts was collected from the four Branches. The KruskalWallis test, at the .01 significant level, was selected for the statistical analysis. The null hypothesis being tested was that the population distribution between the four branches is identical. The test statistics was H = 12.453. What is the correct interpretation of this result? A. More information is needed to be able to make a decision. B. A different test needs to be used for the analysis. C. The null hypothesis is accepted. D. The null hypothesis is rejected. 35) To determine whether four population means are equal, a sample from each population was selected at random and using the KruskalWallis test, H was computed to be 2.11. What is your decision at the 0.05 level of risk? A. Reject the null hypothesis because 2.11 > critical value of 1.96 B. Reject the null hypothesis because 7.815 is > 2.11 C. Fail to reject the null hypothesis because 0.05 < 2.11 D. Fail to reject the null hypothesis because 2.11 < 7.815 36) The Big Toy House is a local company that specializes in selling children outdoor playhouses. With many businesses there is a certain amount of difficulty in collecting money on past due accounts. This has become a concern of the owner. A recent trade magazine indicated that the national averages for account receivable were: 65% current, 25% late, and 10% not collectable. A recent study of the company’s records indicated that 60 percent of the account receivable is current. Thirty percent of the accounts were late and the remaining 10% of receivable were viewed as being not collectable. To determine if his store was inline with the national average, the manager had a statistical analysis performed. The chi square test was selected for the analysis and the .05 significant level was used. The test statistics was X² = 6.725. What is the correct decision regarding this result? A. The two distributions cannot be compared. B. The manager needs to not be concerned. C. The distribution of Big Toy House receivables is inline with the national averages. D. The distribution of Big Toy House receivables is different than the national averages. A. The two distributions cannot be compared. 37) What is the measure that indicates how precise a prediction of Y is based on X or, conversely, how inaccurate the prediction might be? A. Least squares principle B. Standard error of estimate C. Regression equation D. Slope of the line 38) What is the variable used to predict another variable called? A. Causal variable B. Important variable C. Independent variable D. Dependent variable 39) A simple linear regression generated a correlation coefficient of 0.01. This tells us that A. we shall reject the null at less than a 5% significance level. B. the two variables barely relate to each other. C. SSR is almost zero. D. SSE is almost zero. 40) The Ohio Electric Company is investigating electric consumption by single family homes based on the number of rooms. The investigators wanted to determine the relationship between number of rooms and electric consumption in kilowatt-hours (thousands). A sample of 12 homes was selected and the data is as follows: Number of Rooms KilowattHours Number of Rooms KilowattHours 10 10 8 9 9 8 10 11 7 6 10 9 12 13 8 9 8 7 6 7 11 12 5 6 A. The two distributions cannot be compared. What percent of the variation is explained by the variable, number of rooms? A. .901 B. .812 C. .451 D. .949 41) What randomness exists in the linear regression model? A. None of these B. The randomness of the dependent variable, the Y's C. The randomness from the explanatory variables, the X's D. The randomness from what is unexplained, the error 42) The Golden Park and Recreation Department wants to determine a better way to estimate income at the various recreational centers. One relationship that was investigated was between family size and amount spent on recreation. The question was if smaller families spent less money than larger families. A regression analysis tool was selected to be used to address this question. Data was collected from 15 member families regarding what they spent each week on recreation. Their data was as follows: Family Size Amount Spent Family Size Amount Spent Family Size Amount Spent 4 $109 3 $101 3 $115 5 114 4 120 6 174 3 161 4 125 5 156 5 159 6 170 4 145 5 164 3 104 5 145 Compute the coefficient of correlation. A. .618 B. .463 C. .861 A. The two distributions cannot be compared. A. .618 D. .681 43) The least squares regression equation is Y' = 1312 + 245X. When X = 5, what does Y' equal? A. 4,050 B. 2537 C. 2357 D. 1557 44) When an insurance company is going to write a new home owner policy, one concern is the distance between the house and the nearest fire department station. This is one factor that goes in to determining the cost of the insurance for the home owner. ETB Insurance Company wants to determine if there is a relationship between the distance to a fire station and the amount of fire damage to a house. A random sample of 50 claims was selected for analysis. The correlation coefficient was 0.78. Which is the correct interpretation and recommendation? A. The strong relationship indicates that distance to a fire station is a reasonable factor to be considered when determining insurance rates. B. The strong inverse relationship indicates that distance to a fire station is a reliable variable to consider as a factor in determining insurance rates. C. There is not a strong enough relationship so as to be able to use distance to a firehouse as a factor in determining insurance rates. D. The variable, distance to a fire station, is able to explain 78% of the variation in the problem and so it is a reasonable factor to use in determining insurance rates. 45) If the coefficient of correlation is 0.69, the coefficient of determination is A. 0.4761 B. 0.4401 C. 0.8306 D. 0.6898 A. The two distributions cannot be compared. A. 0.4761 46) In a multiple regression ANOVA table, explained variation is represented by A. the correlation matrix B. the total sum of squares C. the regression sum of squares D. the regression coefficients 47) Multiple regression analysis assumes or requires that A. the observations are autocorrelated B. the residuals follow an Fdistribution C. the dependent variable is measured using an ordinal, interval, or ratio scale D. the independent variables and the dependent variable have a linear relationship 48) Conducting a multiple regression analysis, the residual analysis is used to test the requirement that A. the variation in the residuals is the same for all fitted values of Y` B. the number of independent variables included in the analysis is correct C. the independent variables are the direct cause of the dependent variable D. prediction error is minimized 49) The following linear trend equation was developed for the annual sales of the Tractor Manufacturing Company. Y' = 355 + 50t (in $ thousands). How much are sales increasing by? A. $6,000 per year B. $5,000 per month C. $50,000 per year A. The two distributions cannot be compared. A. $6,000 per year D. $500,000 per year 50) A time series is A. a model that attempts to forecast the future value of a variable. B. a set of measurements on a variable taken over some time period in chronological order. C. a set of measurements on a variable collected at the same time or approximately the same period of time. D. a model that attempts to analyze the relationship between a dependent variable and one or more independent variables. 51) The time series component that reflects variability over short, repetitive time periods that last less than one year is called A. irregular variation. B. cyclical variation. C. long–term trend. D. seasonal variation. 52) Big House Lumber Company, located in Dayton, Ohio, is preparing its annual business report. The manager has performed an analysis of the business annual sales starting in 2004 and concluding with 2009. This analysis produced an annual sales linear trend equation of Y' = 10.0989 + 0.14213t. The manager has been indicating to the company’s investors that sales in 2011 will exceed $11.5 million dollars. Is the manager statement accurate? A. The manager has interpreted the data correctly. B. The manager is overstating the annual sales. C. The manager is providing the investors with a good prediction. D. The manager is in need of more information before making a prediction. 53) With the increased cost in fuel, there has been a shift in the buying habits of new car purchasers. A local car dealer was interested in determining if there was A. The two distributions cannot be compared. a significant difference in fuel efficiencies between three sizes of car: compact, midsize and large. The manager did a random sample of 27 cars. An ANOVA was used as the analysis tool using a significant level of .01. The results of the ANOVA were as follows: Source of Variation SS df MS F pvalue Between Groups 130.44 2 65.22 7.97 0.00017 Within Groups 196.24 24 8.18 Total 326.68 36 The manger’s decision would be A. the mean fuel efficiency of the car cannot be compared B. this was not the correct test for this data; a series of student t tests would have been better C. to accept the null hypothesis; there is not a significant difference between cars D. to reject the null hypothesis; there is a significant difference between cars 54) The owner of a local construction company that specializes in outdoor structures desires to make a prediction regarding the next business year sales. Expansion of the business is one possible decision that could be made. It has been determined thatbusiness needs to be at least $8 million dollars in annual sales before expansion could be considered. The following is data for the past 6 years. (Sales in millions of dollars.) Year Sales Year Sales 2004 7.45 2007 7.94 2005 7.83 2008 7.76 2006 8.07 2009 7.90 The statistical analysis of the data produced this least square trend equation. Y' = 7.634 + 0.05457t What should the owner's decision be regarding expansion in 2010? A. Expansion decision could go either way based on data B. Expansion should be considered C. Cannot make a decision based on this data A. The two distributions cannot be compared. A. Expansion decision could go either way based on data D. Expansion should be delayed
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