RES 342 Final solution Sample - All 54 questions answers - A++ (4)
RES 342 Final solution Sample - All 54 questions answers - A++ (4)
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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. so small or so large that the probability of their occurrence under a true null hypothesis is to be expected B. so small or so large that the probability of their occurrence under a true null hypothesis is rather slim C. within the selected confidence interval for the test D. so small or so large that the probability of their occurrence under a false null hypothesis is rather remote 2) What are the critical zvalues for a twotailed hypothesis test if the significant level = 0.01? A. ± 2.58 B. ± 1.65 C. ± 1.96 D. ± 2.33 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. 1.717 B. 1.714 C. 2.069 D. 2.074 4) 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. Cannot accept nor reject it based on the information given B. Reject it C. Fail to reject it D. The test level of .05 is not acceptable 5) In classical hypothesis testing, the test statistic is to the critical value what the ________________. A. test statistic is to the pvalue B. critical value is to alpha C. pvalue is to alpha D. level of significance is to the test statistic 6) The Roman Senate has become concerned about the loyalty of the army in Gaul commanded by Julius Caesar. They claim that, of the 80,000 men in the army, at least 28,000 are foreign barbarians. Caesar believes there are fewer barbarians, so the Senate should not worry. He polls one legion of 1,000 men and finds that 340 of them are barbarians. What is the test statistic for this hypothesis test? A. (0.350.34)/0.2275 B. (0.340.35)/0.015 C. (0.350.34)/100 D. (0.340.35)/0.063 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. 8 B. 1 C. 9 A. 8 D. 7 8) 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. 0.26 B. 0.065 C. 0.13 D. need a table to calculate this value. 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 computed t lies in the region of acceptance. B. Yes, because computed t is less than the critical value. C. Yes, because computed t is greater than the critical value. D. No, because 231.8 is quite close to 230. 10) In a test for the equality of two variances (twotailed), when the populations are normal, a 5% level of significance was used. Sample sizes were n = 13 an1 n = 10. Th2 upper critical value for the test is A. =FINV(0.025, 13, 10). B. =FINV(0.025, 12, 9). C. =FINV(0.05, 12, 9). D. =FINV(10.025, 13, 10). 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. A decision cannot be made. B. This was the correct decision. C. The decision needs to be delay until more data is collected. D. The evidence does not support this decision. 12) 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. Reject the null hypothesis, the test statistic exceeds the critical value. B. Fail to reject the null hypothesis. C. Cannot make a decision at this time; more data is required. D. Reject the alternative hypothesis statement. 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 Product FIFO (F) LIFO (L) 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. Paired ttest. B. Two sample test of means. C. One sample test of means. D. Test of proportions. 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. 1.782 B. 2.145 C. 2.179 D. 1.761 15) When is it appropriate to use the paired difference ttest? A. Two independent samples are compared B. Any two samples are compared C. Four samples are compared at once A. Two independent samples are compared D. Two dependent samples are compared 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. 0.26. B. 0.065. C. 0.13. D. You need a table to calculate this value. 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 alternate hypothesis and conclude LIFO is more effective. B. Fail to reject the null hypothesis and conclude LIFO is more effective. C. Reject the null hypothesis and conclude LIFO is more effective. D. Fail to reject the null hypothesis and conclude LIFO is not more effective. 18) What is the critical value for a onetailed hypothesis test in which a null hypothesis is tested at the 5% level of significance based on two samples, both sample sizes are 13? A. 2.060 B. 1.708 C. 1.711 D. 2.064 19) A trolley system is being planned for the downtown area of Cincinnati, Ohio. To be able to proceed with this project, planners have indicated that at least 20% of the residents of the areas that would be covered need to support the idea. To determine the feelings of these city residents, a sample of 300 residents was taken. Seventeen percent of the sample responded that they would ride the trolley. Is this enough evidence for the project to proceed? Use the .05 level of significant. A. There is not enough evidence to support the moving forward with the project. B. There is enough evidence; move forward with the project. C. A ttest would be the best choice for the test. D. A decision cannot be made either yes or no. 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 sample is too small to be able to decide. B. The null hypothesis is rejected and the difference is significant. C. The data fails to reject the null hypothesis. D. The difference is too close 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. Yes, there is a significant difference. B. No, there is not a significant difference. C. Cannot be predicted based on this data. D. The business journal information is incorrect. 22) Analysis of variance is used to A. compare population proportion B. compare nominal data C. compute t test D. simultaneously compare several population means 23) 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. Chi square test B. A paired ttest C. KruskalWallis test D. An ANOVA 24) 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. ANOVA B. Regression correlation C. Two sample test D. Chi square 25) In ANOVA analysis, when the null hypothesis is rejected, we can find which means are different by A. doing an additional ANOVA B. constructing confidence intervals C. adding another treatment D. doing a t test 26) Each Christmas season there is a hot toy that everyone must have, especially if you are under the age of nine. This prized toy can be purchased at many different types of stores. A consumer group wanted to determine if there was a difference in price for the toy depending on where the toy was purchased. Is the price of this toy the same for the different stores or is there a difference? In the Cincinnati area there are three main stores of concern: WalMart, Meijer, and Toys R Us. Data was collected from different stores around the city. Prices will vary depending on the location of the store. The collected data is as follows (in dollars): WalMart Meijer Toys R Us 15 18 20 12 17 19 12 14 16 14 15 20 13 17 19 Conduct an ANOVA analysis of the data. Is there a significant difference between the three stores? A. A ttest would have been a better test. B. The sample needs to be larger to be able to answer the question. A. A ttest would have been a better test. C. There is not a significant difference between the three stores. D. There is a significant difference between the three stores. 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 = 2.41, there is not a significant difference between models. B. F = 5.67, there is a significant difference between models. C. F = 1.39, there is not a significant difference between models. D. F = 6.54, there is a significant difference between models. 28) Which of the following values of Spearman's (rho) indicates the strongest relationship between two variables? A. +0.67 B. 0.90 C. 0.06 D. +0.88 29) The chisquare has A. a family of distributions B. one distribution C. two distributions D. a uniform distribution 30) 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. KruskalWallis B. MannWhitney C. ANOVA D. Students' t 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. Paint B and D are significantly different then paints A and C. C. A decision cannot be made; more testing is required. D. The test result is greater than the critical value, so there is a significant difference. 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 6day 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. 13.388 C. 15.033 D. 11.070 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. No, there is a significant difference between days of the week. D. Yes, there is a significant difference between days of the week. 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. Fail to reject the null hypothesis because 2.11 < 7.815 B. Reject the null hypothesis because 7.815 is > 2.11 C. Reject the null hypothesis because 2.11 > critical value of 1.96 D. Fail to reject the null hypothesis because 0.05 < 2.11 35) 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. More information is needed to be able to make a decision. D. The null hypothesis is accepted. 36) 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. C. The null hypothesis is incorrect. D. The sample needs to be larger; no decision can be made. 37) If the coefficient of multiple determination is 0.72, what percent of variation is not explained? A. 85% B. 71% C. 52% D. 28% 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. Unlimited range D. 0 to +1.0 39) Correlation coefficients of positive 0.88 and negative 0.88 represent relationships between two variables that have A. equal strength but different directions B. equal strength inverse relationships C. equal weak relationships D. strong positive relationships 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. 0.434 D. 0.480 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 Family Size Amount Spent Family Size Amount Spent Family Size Amount Spent 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. .463 C. .618 D. .861 42) What randomness exists in the linear regression model? A. The randomness from what is unexplained, the error B. The randomness of the dependent variable, the Y's C. None of these D. The randomness from the explanatory variables, the X's 43) The least squares regression equation is Y' = 1312 + 245X. When X = 5, what does Y' equal? A. 1557 B. 2357 C. 4,050 D. 2537 44) When an insurance company is going to write a new home owner policy, one concern is the distance between the house and the nearest fire department station. This is one factor that goes in to determining the cost of the insurance for the home owner. ETB Insurance Company wants to determine if there is a relationship between the distance to a fire station and the amount of fire damage to a house. A random sample of 50 claims was selected for analysis. The correlation coefficient was 0.78. Which is the correct interpretation and recommendation? A. The strong inverse relationship indicates that distance to a fire station is a reliable variable to consider as a factor in determining insurance rates. B. 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. C. The strong relationship indicates that distance to a fire station is a reasonable factor to be considered when determining insurance rates. D. The variable, distance to a fire station, is able to explain 78% of the variation in the problem and so it is a reasonable factor to use in determining insurance rates. 45) 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. For every mile that the house is from the fire station, there is an 11.65 increase in cost. B. There is a direct relationship but it is weak. C. For every mile that the house is from the fire station, the damages to the house will increase by the factor 5.12. D. The damages to a house that is 10 miles from a fire station would be about $53,000. 46) In a multiple regression ANOVA table, explained variation is represented by A. the total sum of squares B. the regression sum of squares C. the correlation matrix A. the total sum of squares D. the regression coefficients 47) If there are four independent variables in a multiple regression equation, there are also four A. regression coefficients B. Yintercepts C. constant terms D. dependent variables 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. A multiple regression is called multiple because it has several data points. C. 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. D. If we have taken into account all relevant explanatory factors, the residuals from a multiple regression should be random. 49) 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 6% above the yearly average C. the quarter's sales are 66% of the yearly average D. the other three quarter percentages will total 34% 50) 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. $5,000 per month B. $50,000 per year C. $6,000 per year D. $500,000 per year 51) The time series component that reflects variability over short, repetitive time periods that last less than one year is called A. cyclical variation. B. long–term trend. C. irregular variation. D. seasonal variation. 52) 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. The belief that there is a relationship between GPA and starting salary is incorrect. B. The belief that there is a relationship between GPA and starting salary is correct. C. GPA is explaining about 50% of the variation. D. Nothing can be stated based on this data analysis. 53) With the increased cost in fuel, there has been a shift in the buying habits of new car purchasers. A local car dealer was interested in determining if there was a 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. this was not the correct test for this data; a series of student t tests would have been better B. to accept the null hypothesis; there is not a significant difference between cars C. the mean fuel efficiency of the car cannot be compared D. to reject the null hypothesis; there is a significant difference between cars 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 is an inverse relationship between outdoor temperature and heating costs. 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 no real clear relationship between these variables.
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