Question 1.1. The degree of flatness or peakedness of a population is measured by the ________.
coefficient of kurtosis xxx
coefficient of skewness
coefficient of variation
coefficient of deviation
Question 2.2. The standard deviation for a sample is denoted as ________.
μ
Ω
s
σ xxxx
Question 3.3. Outcomes such as reliability, defect levels, setup times, time to market, and productivity would be considered ________ outcomes.
customer-focused
workforce-focused
product and process xxx
leadership and governance
Question 4.4. An observation that is radically different from the rest is called ________.
the median
the mean
an outlier xxxx
the mode
Question 5.5. The ________ is the observation that occurs the most frequently in the data set.
arithmetic mean
median
mode xxxx
midrange
Question 6.6. A table that shows the number of observations in each of several nonoverlapping groups is called a ________.
frequency distribution xxx
scatter plot
histogram
chart
Question 7.7. The process of collection, organization, and description of data is called ________.
predictive statistics
statistical inference
descriptive statistics xxxx
decision modeling
Question 8.8. ________ is the quartile representing the 25th percentile.
Q1 xxx
Q2
Q3
Q4
Question 9.9. Suppose that 10 golfers enter a tournament and that their respective skill levels are approximately the same. Six of the entrants are female and two of those are older than 40 years old. Three of the men are older than 40 years old. What is the probability that the winner will be either female or older than 40 years old?
0.000
0.198
0.200
0.900 xxxx
Question 10.10. The number of cell phone minutes used by high school seniors follows a normal distribution with a mean of 500 and a standard deviation of 50. What is the probability that a student uses more than 350 minutes?
0.001
0.999 xxx
0.618
0.382
Question 11.11. The number of cell phone minutes used by high school seniors follows a normal distribution with a mean of 500 and a standard deviation of 50. What is the probability that a student uses fewer than 600 minutes? (Points : 2)
0
0.023
0.841
0.977 xxx
Question 12.12. A production process is known to produce a particular item in such a way that 5 % of these are defective. If two items are randomly selected as they come off the production line, what is the probability that the second item will be defective?
0.05 xxxxx
0.005
0.18
0.20
Question 13.13. Colonel Motors (an automobile company) has prepared a marketing campaign for its best-selling car. The focus of the campaign is quality, and it is claimed that 97 % of the purchasers of this car have no complaints in the first year. You and your sister Kim have each purchased one of these cars. What is the probability that neither of you has a complaint about the car in the first year if the advertising claim is true?
0.7903
0.9730
0.9409 xxx
1.9400
Question 14.14. At a university with 1,000 business majors, there are 200 business students enrolled in an introductory statistics course. Of these 200 students, 50 are also enrolled in an introductory accounting course. There are an additional 250 business students enrolled in accounting but not enrolled in statistics. If a business student is selected at random, what is the probability that the student is enrolled in accounting?
0.20
0.25
0.30 xxx
0.50
Question 15.15. Data for a particular subdivision near downtown Houston indicate that the average price per square foot for a home is $100 with a standard deviation of $5 (normally distributed). What is the probability that the average price per square foot for a home is greater than $90?
0
0.023
0.159
0.977 xxx
Question 16.16. Data for a particular subdivision near downtown Houston indicate that the average price per square foot for a home is $100 with a standard deviation of $5 (normally distributed). What is the probability that the average price per square foot for a home is greater than $110?
0
0.023 xxx
0.841
0.977
Question 17.17. A sampling plan should contain all of the following except ________.
the objectives of the sample activity xxxx
the standards for sample quality
the target population and population frame
the method of sampling including operational procedures for sample collecting
Question 18.18. The margin of error used in a confidence interval is found by ________.
multiplying the standard error by zα/2 xxx
multiplying the population standard deviation and the sample size
dividing the population standard deviation by the sample size
multiplying the level of confidence and the standard error
Question 19.19. The central limit theorem states that no matter what the underlying population, the distribution of the sample means is ________. (
approximately normally distributed xxx
broadly symmetrical
bimodal
unpredictable
Question 20.20. From a sample of 25 items, a sample standard deviation of 4.56 ounces was just measured. What value should be used for the population standard deviation?
0.91 ounces
4.56 ounces
none, since the population standard deviation cannot be estimated xxx
0.18 ounces
Question 21.21. The risk that the confidence interval does not contain the population mean can be reduced by ________.
decreasing the sample size
increasing the population size
increasing the sample size xxxx
decreasing the population size
Question 22.22. The α used to calculate a confidence interval can be understood as ________.
the probability that the population mean will not fall in the confidence interval
the difference between the population parameter and the sample statistic xxx
the confidence that the population mean is known
the likelihood that the population mean was properly calculated
Question 23.23. Find the confidence interval for a population mean of 1.6 pounds at a 95% level of confidence with a sample size of 112 and standard deviation of 0.2 pounds.
1.89 to 1.90 pounds
4.52 to 42.52 pounds
1.56 to 1.64 pounds
1.72 to 2.08 pounds
Question 24.24. What is the value of the finite population correction factor when a sample size of 125 was taken from a finite population of 500?
0.75
1.15
0.87
1.33
Question 25.25. Use the below information to answer the following five questions.
A company wishes to test whether the proportion of female managers is the same as the proportion of male managers. The following table provides data for a sample of employees.
Females Males
Number of managers 18 23
Sample size 45 75
Identify the p-value. (Points : 2)
0.1483
0.2966
0.8517
0.7034
Question 26.26. Which of the following is the commonly used significance level for a, in most business applications?
0.5
0.25
0.05
0.0005
Question 27.27. Use the information below to answer the question.
The following table provides data on a sample of customers who visited a local restaurant. The restaurant owner believes that the average profit per customer exceeds $25.
36.73 35.50
25.92 38.36
41.65 25.50
18.78 19.78
33.14 22.22
20.85 26.23
22.13 32.33
28.46 34.15
34.72 24.21
24.20 28.95
21.84 19.74
20.75
Which of the following is the critical value using a level of significance of 0.05?
1.717
-1.717
1.7139
-2.0739
Question 28.28. Use the information below to answer the question.
The following table provides data on a sample of customers who visited a local restaurant. The restaurant owner believes that the average profit per customer exceeds $25.
36.73 35.50
25.92 38.36
41.65 25.50
18.78 19.78
33.14 22.22
20.85 26.23
22.13 32.33
28.46 34.15
34.72 24.21
24.20 28.95
21.84 19.74
20.75
Which of the following is the correct conclusion?
The null hypothesis that the average profit per customer exceeds $25 cannot be rejected.
The null hypothesis that the average profit per customer does not exceed $25 is rejected.
The null hypothesis that the average profit per customer does not exceed $25 cannot be rejected.
The null hypothesis that the average profit per customer exceeds $25 is rejected.
Question 29.29. Another term for p-value is ________.
degrees of freedom
random effect
probability density function
observed significance level
Question 30.30. The hypothesized sampling distribution of the test statistic is divided into ________ parts.
four
two
six
three
Question 31.31. The rejection region is defined by ________.
a critical value
the power of the test
the probability of a Type II error
the sample size
Question 32.32. Hypothesis testing involves drawing inferences about two contrasting ________ relating to the value of a population parameter.
theorems
data sets
assumptions
propositions
Question 33.33. In the construction of decision trees, which of the following shapes represents a state of nature node?
square
circle
diamond
triangle
Question 34.34. In the construction of decision trees, which of the following shapes represents a decision node?
square
circle
diamond
triangle
Question 35.35. A market research study is being conducted to determine if a product modification will be well received by the public. A total of 1,000 consumers are questioned regarding this product.
The table below provides information regarding this sample.
Positive Neutral Negative
Reaction Reaction Reaction
Male 240 60 100
Female 260 220 120
What is the probability that a randomly selected person would be a female who had a positive reaction?
0.250
0.260
0.455
0.840
Question 36.36. The probability that a typical tomato seed will germinate is 60%. A seed company has developed a hybrid tomato that they claim has an 85% probability of germination. If a gardener plants the new hybrid tomato in batches of 12, what is the probability that 10 or more seeds will germinate in a batch?
0.064
0.083
0.264
0.736
Question 37.37. Historical data indicates that only 20% of cable customers are willing to switch companies. If a binomial process is assumed, then in a sample of 20 cable customers, what is the probability that no more than 3 customers would be willing to switch their cable?
0.85
0.15
0.20
0.411
Question 38.38. Lock combinations are made using 3 digits followed by 2 letters. How many different lock combinations can be made if repetition of digits is allowed?
6
260
6,760
676,000
Question 39.39. In 2012 the stock market took some big swings up and down. One thousand investors were asked how often they tracked their investments. The table below shows their responses. What is the probability that an investor tracks the portfolio weekly?
How often tracked? Response
Daily 235
Weekly 278
Monthly 292
Few times a year 136
Do not track 59
(Points : 2)
0.235
0.278
0.513
0.722
Question 40.40. In hypothesis testing, the null and the alternative hypotheses are ________.
not mutually exclusive
mutually exclusive
always false
always true
Question 41.41. If we fail to reject the null hypothesis, ________.
we have found evidence to support the alternative hypothesis
the null hypothesis is proved to be true
we have only failed to find evidence to support the alternative hypothesis
the hypothesis test is inconclusive
Question 42.42. The probability of a Type I error can be specified by the investigator. The probability of a Type II error is ________.
one minus the probability of Type I error
the result of the hypothesis test itself
also specified by the investigator
not specified by the investigator but computed using the power of the test
Question 43.43. A major consumer products company wants to measure the type and quantity of laundry detergent used by consumers. After choosing a suburban street at random, employees go door-to-door to every fifth house to ask for permission to view their laundry detergent supply. What sampling method is being used for this sampling plan?
simple random sampling
systematic sampling
continuous sampling
subjective sampling
Question 44.44. A major consumer products company wants to measure the quality of the packaging of their products on the store shelves. Five large cities are chosen in different parts of the country. What sampling method is being used for this sampling plan?
simple random sampling
continuous sampling
subjective sampling
stratified sampling
Question 45.45. All of the following are true about the sampling distribution of the mean except ________.
the population standard deviation can be determined when a large sample size is used
the standard deviation of this distribution is called the standard error of the mean
when larger sample sizes are used for this distribution, the sampling error is less
this distribution approaches the normal distribution if the sample size is large enough
Question 46.46. Find the standard error of the mean when the population standard deviation is 4.1 and a sample of size 30 is taken.
7.32
0.08
1.34
0.75
Question 47.47. Expected monetary value (EMV) is
the average or expected monetary outcome of a decision if it can be repeated a large number of times.
the average or expected value of the decision, if you know what would happen ahead of time.
the average or expected value of information if it were completely accurate.
the amount you would lose by not picking the best alternative.
Question 48.48. Which of the following is true about the expected value of perfect information?
It is the amount you would pay for any sample study.
It is calculated as EMV minus EOL.
It is calculated as expected value with perfect information minus maximum EMV.
It is the amount charged for marketing research.
Question 49.49. The expected value of sample information (EVSI) can be used to
establish a maximum amount to spend on additional information.
calculate conditional probabilities.
establish risk avoidance.
provide points on a utility curve.
Question 50.50. When conducting a test of hypothesis, if we elect to use alpha (a) of .05 and the results of our analysis indicate that the null hypothesis should be rejected, which of the following is true?
the p-value is greater than .05
the p-value is less than .05
the p-value is greater than +1.96
the p-value is less than -1.96