RES 342 Final solution Sample - All 54 questions answers - A++
RES 342 Final solution Sample - All 54 questions answers - A++
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Date Created: 11/17/15
1) 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. Do not reject the null hypothesis if the z test statistics is 1.96 or greater. B. Reject the null hypothesis if computed z is less than 1.96. C . Reject the null hypothesis if computed z is 1.96 or greater. D. Do not reject the null hypothesis if computed z is 1.65 or greater. 2) An independent consumer testing lab preformed a statistical test on 25 typeC alkaline batteries and calculated the mean life for a particular use before they failed was 22.5 hours. The distribution of the lives approximated a normal distribution. The standard deviation of the distribution was 1.1 hours. Information on the package states that the batteries should last 24 hours. The test question was if this difference between the test statistics and the stated life of the battery was significant? The .05 significant level was selected for the test. Which is the correct statement? A . The difference was significant; the batteries do not meet the stated length of time. B. The difference was not significant. C. The difference indicates that the batteries are not good. D. The difference cannot be evaluated with this small of a sample. 3) The statement that determines if the null hypothesis is rejected or not is called the A. test statistic B. alternate hypothesis C. critical value D . decision rule 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 C. level of significance is to the test statistic D . value is to alpha 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 . (0.340.35)/0.015 B. (0.350.34)/0.2275 C. (0.340.35)/0.063 D. (0.350.34)/100 6) 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. The test level of .05 is not acceptable D . Fail to reject it 7) A machine is set to fill the small size packages of Good and Better candies are packaged with 60 pieces of candies in each bag. Sampling results revealed: 3 bags of 61, 2 bags of 59, 1 bag of 58, and 2 bags of 62. How many degrees of freedom are there? A. 1 B. 8 C . 7 D. 9 8) 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. need a table to calculate this value. D. 0.13 9) If the paired differences are normal in a test of mean differences, then the distribution used for testing is the A. ChiSquare B . Student t distribution C. F distribution D. normal distribution 10) 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. 0.7293. B. 0.419. C. 0.2702. D . 0.5319. 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. A decision cannot be made. C. The evidence does not support this decision. D. The decision needs to be delay until more data is collected. 12) In a test for the equality of two variances (twotailed), when the populations are normal, a 5% level of significance was used. Sample sizes were1n = 13 and2n = 10. The upper critical value for the test is A. =FINV(0.025, 12, 9). B. =FINV(0.025, 13, 10). C. =FINV(10.025, 13, 10). D . =FINV(0.05, 12, 9). 13) 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 . Pair test. C. Test of proportions. D. One sample test of means. 14) When is it appropriate to use the paired difference ttest? A. Any two samples are compared B . Two dependent samples are compared C. Four samples are compared at once D. Two independent samples are compared 15) 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. 1.761 C. 2.179 D . 1.782 16) 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. 0.13. D . 0.26. 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. C. normal with equal variances. D. are nonnormal and have equal variances. 18) If the paired differences are normal in a test of mean differences, the distribution used for testing is the A. chisquare. B. f distribution. C. normal distribution. D . studen distribution. 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 enough evidence; move forward with the project. D. There is not enough evidence to support the moving forward with the project. 20) 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. A . The data fails to reject the null hypothesis. C. The null hypothesis is rejected and the difference is significant. D. The sample is too small to be able to decide. 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. No, there is not a significant difference. D . Yes, there is 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. A paired ttest D. Chi square test 23) 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 a continuous distribution. B . It is negatively skewed. C. There is a family of distributions. D. Its values cannot be negative. A. It is a continuous distribution. 24) Which is NOT a valid assumption for the utilization of the ANOVA test? A. The populations have equal standard deviations. B. The samples are independent. C . The MSE/MST provides the test statistics for the F distribution. D. The samples are from populations that follow the normal distribution. 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. 3 in the numerator, 18 in the denominator B. 18 in the numerator, 3 in the denominator C . 2 in the numerator, 15 in the denominator D. 6 in the numerator, 15 in the denominator 26) If an ANOVA test is conducted and the null hypothesis is rejected, what does this indicate? A. No difference between the population means B. Too many degrees of freedom C . A difference between at least one pair of population means D. The variances are the same 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 Premium 20.5 20.3 18.5 A . F = 1.39, there is not a significant difference between models. B. F = 5.67, there is a significant difference between models. C. F = 2.41, there is not a significant difference between models. D. F = 6.54, there is a significant difference between models. 28) The chisquare has A. two distributions B. one distribution C . a family of distributions D. a uniform distribution 29) Of the values for a chisquared test statistic listed below, which one is most likely to lead to rejecting the null hypothesis in a goodnessoffit test? A. 2.1 B . 45 C. 1.2 D. 0 30) The chisquare distribution becomes more symmetrical as A. the chisquare value increases B. number of variables increase C. degrees of freedom decrease D . degrees of freedom increase A. the chisquare value increases 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 less than the critical value, so there is not a significant difference. B. The test result is greater than the critical value, so there is a significant difference. C. Paint B and D are significantly different then paints A and C. D. A decision cannot be made; more testing is required. 32) 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. 12.592 B. 11.070 C. 13.388 A. 12.592 D . 15.033 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 no difference between days of the week. B. No, there is not a significant difference between days of the week. C . Yes, there is a significant difference between days of the week. D. No, there is 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 . Reject the null hypothesis; there is a relationship. B. Accept the null hypothesis; there is no relationship. A . Reject the null hypothesis; there is a relationship. C. The sample needs to be larger; no decision can be made. D. The null hypothesis is incorrect. 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 distribution of Big Toy House receivables is different than the national averages. B. The manager needs to not be concerned. C. The distribution of Big Toy House receivables is inline with the national averages. D. The two distributions cannot be compared. 36) 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 . The null hypothesis is rejected. B. A different test needs to be used for the analysis. C. The null hypothesis is accepted. D. More information is needed to be able to make a decision. 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. Slope of the line B . Standard error of estimate C. Regression equation D. Least squares principle 38) What is the range of values for a coefficient of correlation? A. –3 to +3 inclusive B . –1.0 to +1.0 inclusive C. 0 to +1.0 D. Unlimited range 39) If the coefficient of multiple determination is 0.72, what percent of variation is not explained? A. 85% B. 71% C . 28% D. 52% 40) In Chicago there are several large entertainment complexes. These entertainment complexes are important components of the overall city’s makeup. Having these complexes to do well is advantageous to the city. The Chamber of Commerce wanted to determine the relationship between total revenue and profit, in billions of dollars, of 10 complexes. The data that was collected is as follows: Company Revenue Profit Company Revenue Profit A 1.562 0.762 F 4.526 2.543 B 7.651 2.343 G 1.891 .0876 C 2.231 0.231 H 3.564 2.789 D 1.879 1.102 I 3.213 3.134 E 8.345 3.546 J 2.432 4.451 Calculate the coefficient of correlation for these two variables. A. 0.234 B. 0.769 C . 0.480 D. 0.434 41) 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 . .681 B. .618 C. .463 D. .861 42) What randomness exists in the linear regression model? A . The randomness from what is unexplained, the error B. None of these C. The randomness of the dependent variable, the Y's D. The randomness from the explanatory variables, the X's 43) Thomas and Thomas, a large plumbing company in Louisville, has a huge staff of plumbers that are utilized on contractual projects. Before a plumber is hired, an aptitude test must be taken and passed. After a plumber is hired they are evaluated on their performance. Each plumber receives a job performance score based on their individual production. The production manager wants to determine if there is a relationship between the performance score and the aptitude test score. Additionally, the manager wanted to investigate the influence that being a union member has on performance (coded as 1 union member and 0 nonmembers). An analysis of 20 plumbers was conducted. The resulting equation was Performance = 28.1 + 4.85 Aptitude + 20.5 Union. What is your interpretation of this analysis? A. These variables are not a good predictor of performance. B . Being a union member increases the typical performance by 20.5. C. The aptitude test is not a significant variable in this equation and needs to be eliminated as a variable. D. The company would be wise to discourage union membership. 44) If the coefficient of correlation is 0.69, the coefficient of determination is A. 0.4401 B . 0.4761 C. 0.6898 D. 0.8306 45) 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 inverse relationship indicates that distance to a fire station is a reliable variable to consider as a factor in determining insurance rates. B . The strong relationship indicates that distance to a fire station is a reasonable factor to be considered when determining insurance rates. C. 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. D. 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. 46) Multiple regression analysis assumes or requires that A. the residuals follow an Fdistribution B. the observations are autocorrelated C . the independent variables and the dependent variable have a linear relationship D. the dependent variable is measured using an ordinal, interval, or ratio scale 47) In a multiple regression ANOVA table, explained variation is represented by A. the total sum of squares B. the correlation matrix C. the regression coefficients D . the regression sum of squares 48) Which of the following statements about multiple regression is TRUE? A. The total sum of squares in a regression model will never exceed the regression sum of squares. B. 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. C . If we have taken into account all relevant explanatory factors, the residuals from a multiple regression should be random. D. A multiple regression is called multiple because it has several data points. 49) Given the trend equation Y' = 24 + 0.6t (base year = 2006), what would be the forecast value for 2010? A . 27 B. 32 C. 31 D. 25 50) If a quarterly seasonal index is 0.66, it implies that A. the quarter's sales are 66% of the year total sales 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 6% above the yearly average 51) The time series component that reflects variability over short, repetitive time periods that last less than one year is called A . seasonal variation. B. long–term trend. C. irregular variation. D. cyclical variation. 52) 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 is no real clear relationship between these variables. B. The age of the furnace has an indirect relationship with heating costs. C. There exist a direct relationship between inches of insulation and heating costs. D . There is an inverse relationship between outdoor temperature and heating costs. 53) 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 in need of more information before making a prediction. B. The manager is providing the investors with a good prediction. A. The manager is in need of more information before making a prediction. C. The manager has interpreted the data correctly. D . The manager is overstating the annual sales. 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 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 . Expansion should be delayed B. Cannot make a decision based on this data C. Expansion decision could go either way based on data D. Expansion should be considered
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