RES 342 Final solution Sample - All 54 questions answers - A++ (1)
RES 342 Final solution Sample - All 54 questions answers - A++ (1)
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Date Created: 11/11/15
1) The statement that determines if the null hypothesis is rejected or not is called the A. test statistic B. alternate hypothesis C. decision rule D. critical value 2) 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 3) 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. 4) 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. 5) 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 6) 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 C. pvalue is to alpha D. level of significance is to the test statistic 7) 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 equal variances. C. normal with equal variances. A. are normal with unequal variances. D. are nonnormal and have unequal variances. 8) If the paired differences are normal in a test of mean differences, then the distribution used for testing is the A. ChiSquare B. normal distribution C. Student t distribution D. F distribution 9) You are conducting a twotailed test of means but your software package only calculates a one tailed pvalue equal to 0.13. The actual pvalue for your test is A. 0.065 B. 0.13 C. 0.26 D. need a table to calculate this value. 10) A recent study by College Stat Company reported a nationwide survey of college students determined that students spend 2 hours studying for each hour in the classroom. Professor Baker at State College wants to determine whether the time students spend at her college is significantly different from the national average of 2 hours. A random sample of 20 statistics students resulted in an average of 1.75 hours with a standard deviation of 0.24 hours. A ttest was conducted at the 5% level of significance. The calculated value of t was 4.03. What was Professor Baker decision? A. Fail to reject the null hypothesis. B. Cannot make a decision at this time; more data is required. C. Reject the null hypothesis, the test statistic exceeds the critical value. D. Reject the alternative hypothesis statement. 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. This was the correct decision. B. The decision needs to be delay until more data is collected. C. A decision cannot be made. D. The evidence does not support this decision. 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. Correct decision, not a significant difference B. Wrong decision, should have cut back production C. Cannot determine based on information given D. The two percentage points be attributed to sampling error 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. 2.145 B. 2.179 C. 1.782 D. 1.761 14) Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods inventory (in $ thousands) for five products both ways. 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. This example is what type of test? A. Two sample test of means. B. One sample test of means. C. Paired ttest. D. Test of proportions. 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. Reject the null hypothesis; there is a significant difference. B. This is a two tail test and the critical value for the test is 1.96. C. Accept the null hypothesis; there is not a significant difference. D. There is not enough data available to answer the question. 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) 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. A. Reject the null hypothesis and conclude LIFO is more effective. D. Fail to reject the null hypothesis and conclude LIFO is more effective. 18) 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. You need a table to calculate this value. C. 0.26. D. 0.13. 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. A ttest would be the best choice for the test. B. A decision cannot be made either yes or no. C. There is not enough evidence to support the moving forward with the project. D. There is enough evidence; move forward with the project. 20) 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. A. The accountant belief is not conferred. D. There is not enough evidence to confer or deny the belief. 21) 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. 22) 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. KruskalWallis test B. An ANOVA C. Chi square test D. A paired ttest 23) 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. Regression correlation B. ANOVA C. Chi square D. Two sample test 24) Analysis of variance is used to A. compare nominal data B. compare population proportion C. simultaneously compare several population means D. compute t test 25) 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. 2.33 C. 12.00 D. 4.07 26) 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. 18 in the numerator, 3 in the denominator B. 2 in the numerator, 15 in the denominator C. 6 in the numerator, 15 in the denominator D. 3 in the numerator, 18 in the denominator 27) 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 20.5 20.3 18.5 Premium A. F = 5.67, there is a significant difference between models. B. F = 2.41, there is not a significant difference between models. C. F = 6.54, there is a significant difference between models. D. F = 1.39, there is not a significant difference between models. 28) In the chisquared goodnessoffit test, if the expected frequencies ei and the observed frequencies fi were quite different, we would conclude that the [ID: 29826] A. null hypothesis is false, and we would reject it B. alternative hypothesis is false, and we would reject it C. chisquared distribution is invalid, and we would use the tdistribution instead D. null hypothesis is true, and we would not reject it 29) The chisquare has A. one distribution B. a family of distributions C. a uniform distribution D. two distributions 30) The chisquare distribution becomes more symmetrical as A. number of variables increase B. the chisquare value increases C. degrees of freedom increase D. degrees of freedom decrease 31) 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. The test result is greater than the critical value, so there is a significant difference. B. The test result is less than the critical value, so there is not a significant difference. C. A decision cannot be made; more testing is required. D. Paint B and D are significantly different then paints A and C. A. The test result is greater than the critical value, so there is a significant difference. 32) The reason the computed chisquare value is positive is because the difference between the observed and expected frequencies is A. squared B. linear C. always positive D. uniform 33) The city of Denver has several golf courses around the city. The Recreational Park manager is trying to set the schedule for the employees at these courses. His concern is that he wants to have enough staff to handle the daily demands but to not be overstaffed. He has concerns about the next year’s budget and is trying to curb expenses where possible. To be able to make a decision regarding staffing, he collected data regarding the number of rounds of golf played during the week. The weekend was excluded because the weekends are always very busy. He wanted to see if there was a significant difference between the days of the week in terms of rounds being played. If there was a difference, then he could use this information to help make staffing decisions. The result of the data collection is as follows: Day of Week Rounds Monday 150 Tuesday 90 Wednesday 120 Thursday 100 Friday 140 What is the result of the statistical test? Can the manager’s staff schedule vary for different days of the week? Use the chi square distribution at the .05 significant level. A. Yes, there is a significant difference between days of the week. B. Yes, there is no difference between days of the week. C. No, there is a significant difference between days of the week. A. Yes, there is a significant difference between days of the week. D. No, there is not a significant difference between days of the week. 34) State Insurance Company believes that the age of the driver and number of accidents that occurs are related. The feeling is that younger drivers are more careless and will have more accidents. The claims department wants to determine if this line of thinking is correct. To answer this question a random sample of 1500 policyholders was investigated. A chi square analysis was performed on the data at the .05 significant level. The analysis produced a chi square value of 47.56. What is the correct decision regarding the null hypothesis that whether a claim is filed and the age of the policyholder are not related? A. The sample needs to be larger; no decision can be made. B. Reject the null hypothesis; there is a relationship. C. The null hypothesis is incorrect. D. Accept the null hypothesis; there is no relationship. 35) 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 need to be tested some more before a decision can be made C. the feeds are the same D. some of the feeds are different 36) What is your decision regarding the differences between the observed and expected frequencies if the critical value of chisquare is 7.815 and the computed value is 6.789? A. The difference is probably due to sampling error; do not reject the null hypothesis. B. Not due to chance; reject the null hypothesis. C. Too close; reserve judgment. D. Not due to chance; do not reject the alternate hypothesis. 37) Based on the regression equation, we can A. predict the value slope of the line B. predict the value of the dependent variable given a value of the independent variable C. measure the association between two variables D. predict the value of the independent variable given a value of the dependent variable 38) What does a coefficient of correlation of 0.70 infer? A. Almost no correlation because 0.70 is close to 1.0 B. Coefficient of nondetermination is 0.30 C. Coefficient of determination is 0.49 D. 70% of the variation in one variable is explained by the other 39) What is the variable used to predict another variable called? A. Independent variable B. Causal variable C. Important variable D. Dependent variable 40) A researcher was investigating the relationship between the variables grades in high school and grades in college. The investigator wanted to determine if a relationship existed and if so, to what extent. A regression analysis was perform on the data and the correlation value was r = .71. Based on this finding, which statement is correct? A. The researcher was able to explain about 71% of the variation in the problem by this variable. B. The researcher was able to explain about 80 percent of the variation in the problem by this variable. C. The researcher was able to explain about 36 percent of the variation in the problem by this variable. D. The researcher was able to explain about 50 percent of the variation in the problem by this variable. 41) 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. No, 0.457 D. Yes, 0.892 42) 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 of the dependent variable, the Y's D. The randomness from what is unexplained, the error 43) If the coefficient of correlation is 0.69, the coefficient of determination is A. 0.8306 B. 0.4761 C. 0.6898 D. 0.4401 44) 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. There is a direct relationship but it is weak. B. For every mile that the house is from the fire station, the damages to the house will increase by the factor 5.12. C. The damages to a house that is 10 miles from a fire station would be about $53,000. D. For every mile that the house is from the fire station, there is an 11.65 increase in cost. 45) In the least squares equation, Y' = 12 + 25X the value of 25 indicates A. the Y intercept B. for each unit increase in Y, X increases by 25 C. for each unit increase in X, Y increases by 25 D. the X factor 46) Conducting a multiple regression analysis, the residual analysis is used to test the requirement that A. the independent variables are the direct cause of the dependent variable B. prediction error is minimized C. the number of independent variables included in the analysis is correct D. the variation in the residuals is the same for all fitted values of Y` 47) Which of the following statements about multiple regression is TRUE? A. A multiple regression is called multiple because it has several data points. B. If we have taken into account all relevant explanatory factors, the residuals from a multiple regression should be random. A. A multiple regression is called multiple because it has several data points. C. The total sum of squares in a regression model will never exceed the regression sum of squares. 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 sum of squares B. the regression coefficients C. the total 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. seasonal variation. C. cyclical variation. D. irregular variation. 50) Given the trend equation Y' = 24 + 0.6t (base year = 2006), what would be the forecast value for 2010? A. 25 B. 31 C. 27 D. 32 51) 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. $50,000 per year B. $500,000 per year C. $5,000 per month D. $6,000 per year 52) 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 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. to accept the null hypothesis; there is not a significant difference between cars B. to reject the null hypothesis; there is a significant difference between cars C. this was not the correct test for this data; a series of student t tests would have been better D. the mean fuel efficiency of the car cannot be compared 53) 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 that the business 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. Cannot make a decision based on this data B. Expansion should be delayed C. Expansion should be considered D. Expansion decision could go either way based on data 54) Midwest State University Office of Registrar is reviewing the university’s enrollment for the past 10 years. It is know that there are seasonal variable that affects the university’s enrollment. To be better able to address business decisions that are affected by enrollment, an analysis of data was necessary. The school operates on a quarter system of enrollment starting typically with fall quarter and ending with summer quarter. The analysis of the data produced these four quarterly indexes. Fall Winter Spring Summer 1.2617 1.1896 1.040 0.4447 Which statement is correct based on this analysis? A. Summer quarter appears to be too low. B. The pattern is predictable and reasonable. C. Fall quarter needs to receive major attention to handle enrollment. D. Winter and spring quarters should be treated differently.
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