RES 342 Final solution Sample - All 54 questions answers - A++ (5)
RES 342 Final solution Sample - All 54 questions answers - A++ (5)
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1) The area of rejection, on a bell shaped curve, defines the location of all those values that are A. so small or so large that the probability of their occurrence under a false null hypothesis is rather remote B. so small or so large that the probability of their occurrence under a true null hypothesis is to be expected C. within the selected confidence interval for the test D. so small or so large that the probability of their occurrence under a true null hypothesis is rather slim 2) The normally distributed AAA battery life is stated to be 350 days when used in a clock radio. The Big Charge Battery Company has recently modified the AAA batteries so as to extent their life. The owner of the company wanted to know if the improved batteries really did last significantly longer. A sample of 100 of the improved batteries was tested. It was discovered that the mean life was 362 days and the sample standard deviation was 10 days. The research department decided to conduct the test at the 0.05 level of significance whether the modification actually increased the life of the AAA battery. What was their decision rule? A. Reject the null hypothesis if computed z is less than 1.96. B. Do not reject the null hypothesis if computed z is 1.65 or greater. C. Do not reject the null hypothesis if the z test statistics is 1.96 or greater. D. Reject the null hypothesis if computed z is 1.96 or greater. 3) What is the critical value for a twotail, one sample hypothesis test in which a null hypothesis is tested at the 5% level of significance based on a sample size of 23? A. 2.074 B. 1.717 C. 2.069 D. 1.714 4) In classical hypothesis testing, the test statistic is to the critical value what the ________________. A. critical value is to alpha B. test statistic is to the pvalue A. critical value is to alpha C. pvalue is to alpha D. level of significance is to the test statistic 5) K & S Construction, located in Phoenix, Arizona, is working on its business plan for the upcoming year. They did a study to determine if they should focus on building condominiums or individual houses. A building study, which had been conducted by the state, indicated that 60 percent of those families looking to buy a home in Arizona desired to buy a condominium. K & S Construction wanted to know if this figure applied to Phoenix. They collected a sample of 500 individuals that had expressed plans to buy a new home. The zdistribution was selected for this proportion test. The null hypothesis is p = 0.60 and the alternate is p ≠ 0.60. The significant level selected was .05. From the sample of 500, it was determined that 290 wanted to buy a condominium. What decision should be made regarding the null hypothesis? A. Reject it B. Cannot accept nor reject it based on the information given C. Fail to reject it D. The test level of .05 is not acceptable 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 sample. B. Convince upper management to use a smaller pvalue. C. Convince upper management to use a larger pvalue. D. Convince upper management to reduce the level of significance of the test. 7) You are conducting a twotailed test of means but your software package only calculates a onetailed pvalue equal to 0.13. The actual pvalue for your test is A. 0.065 B. 0.26 C. 0.13 A. 0.065 D. need a table to calculate this value. 8) If the paired differences are normal in a test of mean differences, then the distribution used for testing is the A. F distribution B. normal distribution C. ChiSquare D. Student t distribution 9) Cake manufacturer Little Diva’s wants to increase the shelf life of its easytofix cupcake mixes. Company’s records indicate that the average shelf life of the mix is 230 days. A new, improved cupcake mix was developed and a sample of 10 boxes of the cupcake mix had these shelf lives (in days): 231, 233, 232, 233, 228, 231, 234, 229, 235, and 232. If the standard deviation was .67 and at the 0.025 significant level, has the shelf life of the cupcake mix increased? A. No, because 231.8 is quite close to 230. B. Yes, because computed t is greater than the critical value. C. Yes, because computed t is less than the critical value. D. No, because computed t lies in the region of acceptance. 10) 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 evidence does not support this decision. B. The decision needs to be delay until more data is collected. C. This was the correct decision. D. A decision cannot be made. 11) 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. 0.2702. B. 0.5319. C. 0.7293. D. 0.419. 12) 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. The two percentage points be attributed to sampling error B. Wrong decision, should have cut back production C. Correct decision, not a significant difference D. Cannot determine based on information given 13) 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. This is a two tail test and the critical value for the test is 1.96. B. There is not enough data available to answer the question. C. Reject the null hypothesis; there is a significant difference. D. Accept the null hypothesis; there is not a significant difference. 14) 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. 1.761 B. 2.179 C. 2.145 D. 1.782 15) When is it appropriate to use the paired difference ttest? A. Any two samples are compared B. Two dependent samples are compared C. Two independent samples are compared D. Four samples are compared at once 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. Do not reject the null hypothesis. B. Reserve judgment. C. Take a larger sample. D. Reject the null hypothesis. 17) When testing for differences between two means, the BehrensFisher problem arises when the sample populations are A. are normal with unequal variances. B. are nonnormal and have unequal variances. A. are normal with unequal variances. C. are nonnormal and have equal variances. D. normal with equal variances. 18) Two different accounting procedures that are utilized by businesses as a way to evaluate their inventory are LIFO (Last In First Out) and FIFO (First In First Out). ABC manufacturer evaluated its finished goods inventory (in $ thousands) for five products using both procedures. Based on the following results, is LIFO more effective in keeping the value of his inventory lower? Product FIFO (F) LIFO (L) 1 225 221 2 119 100 3 100 113 4 212 200 5 248 245 The 5% level of significance was selected for the t value. The calculated test statistic was 1.93. What is the decision? A. Reject the null hypothesis and conclude LIFO is more effective. B. Fail to reject the null hypothesis and conclude LIFO is not more effective. C. Reject the alternate hypothesis and conclude LIFO is more effective. D. Fail to reject the null hypothesis and conclude LIFO is more effective. 19) The accountant for Thomas’s Furniture Store is concerned regarding the outstanding receivable owed the company. There has been a cash flow problem and it is believed that the slow collection of accounts receivable is partially the blame. The accountant believes that 40% of the present accounts are more than 4 months behind in making payments. To be able to make a decision regarding this belief, a random sample of 100 accounts was taken. It was found that 37 accounts were more than 4 months late. Did the sample data confirm the accountant’s belief? Use the .05 significant level for the statistical test. A. The accountant belief is not conferred. B. The accountant needed to take a larger sample. C. The accountant belief is conferred. D. There is not enough evidence to confer or deny the belief. 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. Cannot be predicted based on this data. B. The business journal information is incorrect. C. Yes, there is a significant difference. D. No, there is not a significant difference. 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 data fails to reject the null hypothesis. B. The difference is too close to be able to decide. C. The sample is too small to be able to decide. D. The null hypothesis is rejected and the difference is significant. 22) In the metro area there are four major supermarket chains. To determine if there was a difference between these stores, regarding their pricing of food, a consumer group did a test. In the Eastgate area of town, each of the supermarket chains has a store. Twentyfive common household items were selected for the test. These items were purchased at each of the four stores and the prices were compared. To analyze this data, what would be the best statistical test to use? A. Chi square B. Two sample test C. ANOVA D. Regression correlation 23) Mr. Thomas owns three different restaurants in Cincinnati, Ohio. He is concerned about the profitability of the restaurants. There are monthly differences between the restaurants and he wants to determine if the differences in profit are significant. Mr. Thomas wants to do a statistical test to see if he should be concerned. The best test to address this problem would be A. to conduct a two sample test B. to conduct two different t tests C. to conduct an ANOVA test D. to conduct a paired ttest 24) Blake’s Mortgage Company utilizes four different appraisers for the purpose of determining the value of a house. There is a concern by the company’s owner that the appraisers are not providing the same estimates. She wants to determine if there is a difference between the four appraisers. Six houses were selected and each appraiser provided an appraisal for each of the six houses. What would be the best statistical test to use for the analysis of this data? A. An ANOVA B. KruskalWallis test C. Chi square test D. A paired ttest 25) Robinson, a large department store, wanted to example to look at which credit cards were being utilized for purchases. A sample of 18 credit card sales was taken and recorded. The amounts charged for each of three different credit cards, MasterCard, Visa, and Discover, were: six MasterCard sales, seven Visa sales, and five Discover sales. The store used an ANOVA to test if the mean sales for each credit card were equal. What are the degrees of freedom for the F statistic? A. 6 in the numerator, 15 in the denominator B. 3 in the numerator, 18 in the denominator C. 2 in the numerator, 15 in the denominator D. 18 in the numerator, 3 in the denominator 26) Ace Car Rental has three main models that are used in it midsize range of cars. The cars are very similar and perform at about the same level. Since the customer has to pay for the gas use during the rental period, the manager is often asked about which car gets the best gas mileage. To be able to address this question, an analysis was done of the three makes of cars. Each car can use any one of four different grades of gasoline. The data collected was for each car for each type of fuel. Performance was measured in miles per gallon. Perform an ANOVA test and state the results. Gasoline Model A Model B Model C Regular 21.4 22.3 20.8 Super Regular 20.6 17.1 19.5 Unleaded 21.3 19.2 20.2 Premium 20.5 20.3 18.5 A. F = 6.54, there is a significant difference between models. B. F = 1.39, there is not a significant difference between models. C. F = 2.41, there is not a significant difference between models. D. F = 5.67, there is a significant difference between models. 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. 12.00 B. 4.07 C. 2.33 D. 1.96 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. ANOVA B. KruskalWallis C. MannWhitney D. Students' t 29) The chisquare has A. a family of distributions B. one distribution C. two distributions D. a uniform distribution 30) What are the assumptions required for nonparametric tests regarding the shape of the population distribution? A. The populations have equal standard deviations. B. The distribution appears like a bellshaped curve. C. The samples are independent. D. No assumptions are required. 31) The reason the computed chisquare value is positive is because the difference between the observed and expected frequencies is A. uniform B. squared C. linear D. always positive 32) Seamen’s Manufacturing has five hundred employees at its plant. These employees are divided into three main groups: administration, clerical, and labor. The company is looking at making some changes to it retirement plan that is available for employees. There are three plans beginning considered. The 500 employees were surveyed regarding their preferences for the various retirement plans. The president is concerned if there is a relationship between the person position in the company and which retirement plan was preferred. Utilize the chi square distribution at the .05 significant level, and determine if there is a relationship between position in company and the retirement plan selected. Position Plan A Plan B Plan C Labor 170 50 30 Clerical 30 110 30 Administration 20 20 40 A. The calculated test result of 7.94 is greater than the critical value, so reject the null hypothesis. B. The calculated test result of 7.94 is less than the critical value, so accept the null hypothesis. C. The calculated test result of 7.94 is less than the critical value, so reject the null hypothesis. D. The calculated test result of 7.94 is greater than the critical value, so accept the null hypothesis. 33) 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 Saturday 9 What is the critical value of chisquare with a significant level of = 0.05? A. 13.388 B. 11.070 C. 12.592 D. 15.033 34) 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 7.815 is > 2.11 B. Fail to reject the null hypothesis because 0.05 < 2.11 C. Fail to reject the null hypothesis because 2.11 < 7.815 A. Reject the null hypothesis because 7.815 is > 2.11 D. Reject the null hypothesis because 2.11 > critical value of 1.96 35) 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 manager needs to not be concerned. B. The distribution of Big Toy House receivables is inline with the national averages. C. The distribution of Big Toy House receivables is different than the national averages. D. The two distributions cannot be compared. 36) Corny’s Feed Company markets four different mixtures of feed for chickens. These feeds have different combinations of ingredients. One question that the manager is often asked by customers is if there is a difference between the four feeds in terms of weight gain. To be able to address this question an analysis was done of the four feeds. They contacted a local farmer to conduct a test regarding the four feeds. There were 28 chickens selected for the test. These chickens were divided into four groups, with each group receiving one of the feeds. The statistical test selected for the analysis was the KruskalWallis test and the .05 significant level was used for the test. The test result was H 4.65. This indicates that A. the feeds are different B. the feeds are the same C. the feeds need to be tested some more before a decision can be made D. some of the feeds are different 37) If the coefficient of multiple determination is 0.72, what percent of variation is not explained? A. 28% B. 52% A. 28% C. 85% D. 71% 38) What is the range of values for a coefficient of correlation? A. 0 to +1.0 B. Unlimited range C. –3 to +3 inclusive D. –1.0 to +1.0 inclusive 39) Based on the regression equation, we can A. predict the value slope of the line B. measure the association between two variables C. predict the value of the dependent variable given a value of the independent variable D. predict the value of the independent variable given a value of the dependent variable 40) Smith’s Appliances is evaluating its advertising budget. The owner is trying to decide if the budget needs to be altered or not. The question: Is there a positive return on the investment that is being made in advertising? What is the relationship between sales and the amount spent on advertising? The owner collected data for the past year by month. The data is in millions of dollars. Month Advertising Expense Sales Revenue January 2 4 February 3 5 March 3 6 April 5 8 May 6 8 June 4 7 July 5 7 August 6 8 September 7 9 October 8 10 November 10 13 December 9 11 Is there a relationship between the two variables? What is the coefficient of correlation for this data? A. Yes, 0.961 B. Yes, 0.980 C. Yes, 0.892 D. No, 0.457 41) What randomness exists in the linear regression model? A. The randomness from the explanatory variables, the X's B. None of these C. The randomness from what is unexplained, the error D. The randomness of the dependent variable, the Y's 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. .861 B. .618 C. .681 D. .463 A. .861 43) In the least squares equation, Y' = 12 + 25X the value of 25 indicates A. for each unit increase in Y, X increases by 25 B. for each unit increase in X, Y increases by 25 C. the Y intercept D. the X factor 44) If the coefficient of correlation is 0.69, the coefficient of determination is A. 0.6898 B. 0.4401 C. 0.8306 D. 0.4761 45) The Actuarial Department of an insurance company was assigned the task of determining the relationship between the distance to a fire station and the amount of damage to a house. This is one factor that is utilized in determining the cost of insurance for a home owner. A sample of 35 claims was selected from last year. When the analysis was completed the following regression equation was the result. (X is the distance to a fire station and Y' is the amount of damage in thousands of dollars) Y' = 11.65 + 5.12X If a house was 10 miles from the fire station, what would be the best estimate of the cost of damages to the house? A. The damages to a house that is 10 miles from a fire station would be about $53,000. B. For every mile that the house is from the fire station, there is an 11.65 increase in cost. C. There is a direct relationship but it is weak. D. For every mile that the house is from the fire station, the damages to the house will increase by the factor 5.12. 46) If the net regression coefficients in the population are significantly different from zero, what can be included? A. At least one of the net regression coefficients is not equal to zero. B. No relationship exists between the dependent variable and any of the independent variables. C. Very strong correlations exist among the variables. D. Good predictions are not possible. 47) Which of the following statements about multiple regression is TRUE? A. If we have taken into account all relevant explanatory factors, the residuals from a multiple regression should be random. B. The total sum of squares in a regression model will never exceed the regression sum of squares. C. A multiple regression is called multiple because it has several data points. D. The coefficient of multiple determination is calculated by taking the ratio of the regression sum of squares over the total sum of squares and subtracting that value from 1. 48) In a multiple regression ANOVA table, explained variation is represented by A. the regression coefficients B. the total sum of squares C. the regression sum of squares D. the correlation matrix 49) The time series component that reflects variability over short, repetitive time periods that last less than one year is called A. long–term trend. B. irregular variation. C. seasonal variation. D. cyclical variation. 50) If a quarterly seasonal index is 0.66, it implies that A. the quarter's sales are 6% above the yearly average B. the quarter's sales are 66% of the yearly average C. the other three quarter percentages will total 34% D. the quarter's sales are 66% of the year total sales 51) Given the trend equation Y' = 24 + 0.6t (base year = 2006), what would be the forecast value for 2010? A. 25 B. 32 C. 31 D. 27 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 is providing the investors with a good prediction. B. The manager has interpreted the data correctly. C. The manager is in need of more information before making a prediction. D. The manager is overstating the annual sales. 53) An analysis of graduates from a local business college was performed to determine if there was a relationship between GPA and starting salary of recent graduates. It was believed that a higher GPA would result in a higher starting salary. The analysis of data collected from recent graduates produced the following correlation matrix. Salary GPA 0.902 Business 0.911 0.851 Which statement is correct regarding the interpretation of the analysis? A. GPA is explaining about 50% of the variation. B. The belief that there is a relationship between GPA and starting salary is incorrect. C. Nothing can be stated based on this data analysis. D. The belief that there is a relationship between GPA and starting salary is correct. 54) A research company has been hired by a reality company to do an analysis of heating cost of homes in the region. The reality company wanted to be able to predict the heating cost of a typical single family home. The realtor company was constantly being asked questions regarding heating costs by potential home buyers. It was believed that these variables would impact heating costs (Y'): mean daily outdoor temperature (X1), the number of inches of insulation (X2), the age in years of the furnace (X3). The multiple regression analysis produced the following regression equation: Y' = 427.2 – 4.58X1 – 14.83X2 + 6.10X3. Which statement is correct based on this analysis? A. There exist a direct relationship between inches of insulation and heating costs. B. There is an inverse relationship between outdoor temperature and heating costs. C. There is no real clear relationship between these variables. D. The age of the furnace has an indirect relationship with heating costs. RES/342 Final Exam Thank you. Your responses have been recorded. Exam Exam Completed Answers Correct Score Confirmation # Started 11/29/2010 11/29/2010 (5:33 PM) 48/54 88.89% xxxxxxxxxxxxxxx (4:58 PM) Submission Instructions Please submit a copy of this summary results page to your instructor through the Assignments section of the classroom. To take a screen shot of your summary results, press the <Print Screen> or <Prt Scr> key in the upperright hand corner of your keyboard, open a new document in Microsoft Word, then press <CtrlV> to paste the screen shot into your document. Save the document to your desktop, then click on the Assignments tab and find your assignment under the current week. Once found, select the Assignment Title to bring Exam Started Exam Completed Answers Correct Score Confirmation # up the Details page. In order to submit the document to your instructor, simply click the Browse button and select the word document you have saved to your desktop. Document status will show Submitted to faculty as confirmation that your submission was successful. Note: Your quiz results, along with additional feedback if available, will post to your individual forum, but you are still responsible for submitting a screen shot to the Assignments section in order to receive credit. If you experience technical difficulty with posting of exam results, please contact Technical Support for assistance. Technical Support can be reached at 1866334 7332 and is available 24 hours a day, 7 days a week.
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