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# RES 342 Final solution Sample - All 54 questions answers - A++ (5)

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Date Created: 11/17/15

1 The area of rejection on a bell shaped curve defines the location of all those values that are A P so small or so large that the probability of their occurrence under a false null hypothesis is rather remote B P so small or so large that the probability of their occurrence under a true null hypothesis is to be expected 1 C w1th1n the selected conf1dence 1nterval for the test D F 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 005 level of significance whether the modification actually increased the life of the AAA battery What was their decision rule A P Reject the null hypothesis if computed z is less than 196 B P Do not reject the null hypothesis if computed z is 165 or greater C P Do not reject the null hypothesis if the z test statistics is 196 or greater D F Reject the null hypothesis if computed z is 196 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 2074 B P 1717 C P 2 069 D P 1714 4 In classical hypothesis testing the test statistic is to the critical value what the f39 A cr1t1cal value 1s to alpha 1 B test stat1st1c 1s to the pvalue r A cr1t1cal value 1s to alpha i C pvalue is to alpha f39 D level of s1gn1f1cance 1s to the test stat1st1c 5 K amp 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 amp 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 060 and the alternate is p i 060 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 F Reject it B P Cannot accept nor reject it based on the information given C F Fail to reject it D P 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 11 error 3 Which of the following would solve this problem A Convince upper management to use a larger sample r B Conv1nce upper management to use a smaller pvalue r C Conv1nce upper management to use a larger pvalue f39 D Conv1nce upper management to reduce the level of s1gn1f1cance of the test 7 You are conducting a twotailed test of means but your software package only calculates a onetailed pvalue equal to 013 The actual pvalue for your test is A P 0065 B F 026 C P 013 A P 0065 D P 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 F distribution B F normal distribution C F ChiSquare D F 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 0025 significant level has the shelf life of the cupcake mix increased A P No because 2318 is quite close to 230 B F Yes because computed tis greater than the critical value C F Yes because computed tis less than the critical value D P No because computed tlies 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 50000 miles and a standard deviation of 1750 miles The warranty on the tires is presently set at 47500 miles The ztest statistic result was 143 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 The evidence does not support this decision The decision needs to be delay until more data is collected r A P B 3 C Th1s was the correct dec1s1on t 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 P 02702 B F 05319 C P 07293 D P 0419 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 005 level Computed z 040 A P The two percentage points be attributed to sampling error B P Wrong decision should have cut back production C F Correct decision not a significant difference D P 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 2 testltpgtHe decided to utilize a 005 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 221 What is the decision regarding the hypothesis A P This is a two tail test and the critical value for the test is 196 B P There is not enough data available to answer the question C F Reject the null hypothesis there is a significant difference D F 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 005 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 P 1761 B P 2179 C P 2145 D F 1782 15 When is it appropriate to use the paired difference t test Any two samples are compared Two dependent samples are compared Two independent samples are compared PCP Four samples are compared at once 16 A consumer researcher is testing the difference between two proportions at the 005 level of significance The researcher was utilizing the 2 distribution for the test If the computed test statistic 2 value was 112 what was the decision Do not reject the null hypothesis A F f39 B Reserve Judgment C F Take a larger sample D F Reject the null hypothesis 17 When testing for differences between two means the BehrensFisher problem arises when the sample populations are t A are normal w1th unequal var1ances 7 B are nonnormal and have unequal var1ances r A are normal w1th unequal var1ances f39 C are nonnormal and have equal var1ances P D normal w1th equal var1ances 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 nished goods inventory in thousands for ve 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 193 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 F 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 ow 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 P The accountant belief is not conferred B P The accountant needed to take a larger sample C F The accountant belief is conferred D F 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 P Cannot be predicted based on this data B P The business journal information is incorrect C F Yes there is a significant difference D F 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 The data fails to reject the null hypothesis AF B P The difference is too close to be able to decide C P The sample is too small to be able to decide D f39 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 P Chi square B P Two sample test CW ANOVA D F 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 r A An ANOVA B F KruskalWallis test C P Chi square test D P A paired t test 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 F 6 in the numerator 15 in the denominator B P 3 in the numerator 18 in the denominator C F 2 in the numerator 15 in the denominator D P 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 214 223 208 SuperRegular 206 171 195 Unleaded 213 192 202 Premium 205 203 185 F 654 there is a significant difference between models A P B F F 139 there is not a significant difference between models C F F 241 there is not a significant difference between models D f39 F 567 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 005 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 P 1200 B F 407 c P 233 D F 196 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 F KruskalWallis C P MannWhitney D P Students39t 29 The chisquare has A a family of distributions B one distribution C P two distributions D a uniform distribution 30 What are the assumptions required for nonparametric tests regarding the shape of the population distribution A F The populations have equal standard deviations B P The distribution appears like a bellshaped curve C P The samples are independent D F No assumptions are required 31 The reason the computed chisquare value is positive is because the difference between the observed and expected frequencies is uniform A P B F squared C P linear D P always positive 32 Seamen39s Manufacturing has ve 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 signi cant 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 1 7 O 5 O 3 0 Clerical 3 O l l O 3 0 Administration 2 O 2 O 4 O A F The calculated test result of 794 is greater than the critical value so reject the null hypothesis B P The calculated test result of 794 is less than the critical value so accept the null hypothesis C P The calculated test result of 794 is less than the critical value so reject the null hypothesis D P The calculated test result of 794 is greater than the critical value so accept the null hypothesis 33 Rachael Smith is the personnel manager atJohnson and Johnston an accounting rm 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 6day work week The null hypothesis to be tested was Tardiness is distributed evenly throughout the week The 001 level was used as the signi cant level The sample results were Day of Week Number Absent Monday 1 2 Tuesday 9 Wednesday 1 1 Thursday 1 0 Friday 9 Saturday 9 What is the critical value of chisquare With a significant level of 005 A P 13388 B P 11070 C P 12592 D F 15033 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 211 What is your decision at the 005 level of risk A P Reject the null hypothesis because 7815 is gt 211 B P Fail to reject the null hypothesis because 005 lt 211 C F Fail to reject the null hypothesis because 211 lt 7815 A P Reject the null hypothesis because 7815 is gt 211 D F Reject the null hypothesis because 211 gt critical value of 196 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 6725 What is the correct decision regarding this result The manager needs to not be concerned The distribution of Big Toy House receivables is inline with the national averages A P B F C F The distribution of Big Toy House receivables is different than the national averages D P 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 465 This indicates that the feeds are different the feeds are the same the feeds need to be tested some more before a decision can be made OP D F some of the feeds are different 37 If the coefficient of multiple determination is 072 what percent of variation is not explained A F 28 B P 52 339 A 28 r C 85 P D 71 38 What is the range of values for a coefficient of correlation A 0 to 10 B P Unlimited range C P 3 to 3 inclusive D F 10 to 10 inclusive 39 Based on the regression equation we can A predict the value slope of the line B P measure the association between two variables C F predict the value of the dependent variable given a value of the independent variable D P predict the value of the independent variable given a value of the dependent variable 40 Smith39s 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 January February March April May June July August September October November December 2 OOlOU ilgtOU39IUU K0C3 Advertising Expense Sales Revenue l l l IwoLoooiiooooowoitb Is there a relationship between the two variables What is the coefficient of correlation for this data A F Yes 0961 B 5 Yes 0980 C 5 Yes 0892 D 5 No 0457 41 What randomness exists in the linear regression model A F The randomness from the explanatory variables the X39s B F None of these C F The randomness from What is unexplained the error D P The randomness of the dependent variable the Y39s 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 5 861 B 5 618 C F 681 D 5 463 A P 861 43 In the least squares equation Y39 12 25X the value of 25 indicates A P for each unit increase in Y X increases by 25 B F for each unit increase in X Y increases by 25 C F the Y intercept D F the X factor 44 If the coefficient of correlation is 069 the coefficient of determination is A 06898 B P 04401 C P 08306 D F 04761 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 Y39 is the amount of damage in thousands of dollars Y39 1165 512X 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 P The damages to a house that is 10 miles from a fire station would be about 53000 B P For every mile that the house is from the fire station there is an 1165 increase in cost C P There is a direct relationship but it is weak If D For every mile that the house is from the fire station the damages to the house will increase by the factor 512 46 If the net regression coefficients in the population are significantly different from zero what can be included 3 A At least one of the net regress1on coeff1c1ents 1s not equal to zero B P No relationship exists between the dependent variable and any of the independent variables t C Very strong correlatlons ex1st among the var1ables D P Good predictions are not possible 47 Which of the following statements about multiple regression is TRUE 3 39 A If we have taken 1nto account all relevant explanatory factors the res1duals from a multiple regression should be random f39 B The total sum of squares 1n a regress1on model W111 never exceed the regress1on sum of squares C F A multiple regression is called multiple because it has several data points D F 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 F the regression coefficients B F the total sum of squares C F the regression sum of squares D P the correlation matrix 49 The time series component that re ects variability over short repetitive time periods that last less than one year is called A P long term trend B P irregular variation C F seasonal variation D F cyclical variation 50 If a quarterly seasonal index is 066 it implies that A the quarter39s sales are 6 above the yearly average B F the quarter39s sales are 66 of the yearly average C P the other three quarter percentages Will total 34 D f39 the quarter39s sales are 66 of the year total sales 51 Given the trend equation 1quot 24 06t base year 2006 What would be the forecast value for 2010 A 25 B P 32 C P 31 D F 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 Y39 100989 014213t The manager has been indicating to the company s investors that sales in 2011 will exceed 115 million dollars Is the manager statement accurate The manager is providing the investors With a good prediction A P B F The manager has interpreted the data correctly C F The manager is in need of more information before making a prediction D F 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 0902 Business 0911 0851 Which statement is correct regarding the interpretation of the analysis GPA is explaining about 50 of the variation The belief that there is a relationship between GPA and starting salary is incorrect Nothing can be stated based on this data analysis POP 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 Y39 mean daily outdoor temperature Xl the number of inches of insulation X2 the age in years of the furnace X3 The multiple regression analysis produced the following regression equation Y39 4272 458Xl 1483X2 610X3 Which statement is correct based on this analysis There exist a direct relationship between inches of insulation and heating costs There is an inverse relationship between outdoor temperature and heating costs There is no real clear relationship between these variables PCP The age of the furnace has an indirect relationship with heating costs RES342 Final Exam Thank you Your responses have been recorded Exam Exam Completed Answers Correct Score Confirmation Started 1 1292010 458 FM 11292010 533 PM 4854 8889 xxxxxxxxxxxxxxx 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 ltPrint Screengt or ltPrt Scrgt key in the upperright hand corner of your keyboard open a new document in Microsoft Word then press ltCtrlVgt to paste the screen shot into your 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