Statistics for Business

Final Examination (Mix)

Students name:________________________Class______________
Instructions:

- This is the open book exam. Students are allowed to use all materials except laptop.
- Time allowed: 120 minutes. Please check that the exam paper includes 8 pages.
- Students are required to do all 71 questions. Please use the answer sheet.
- If any questions you do not find the exact results as indicated in the options. Please select
the one with the closest result as your calculations or write your results down.
- Marking scheme: Total marks is 100 which are distributed equally amongst questions.
- Discussion is strictly prohibited

1. The largest probability of a Type I error is the level of significance of the test.
A. True
B. False
2. In general, when the sample size stays the same, the higher the level of confidence, the narrower the confidence
interval.
A. True
B. False
3. The probability of rejecting the null hypothesis that is true is known as the
A. confidence level.
B. p-value.
C. power of the test.
D. significance level.
4. Last year, 10 percent of all teenagers purchased a new iPhone. This year, a sample of 260 randomly chosen
teenagers showed that 39 had purchased a new iPhone. To test whether the percent has risen, the p-value is
A. 0.0501
B. 0.0314
C. 0.0492
D. 0.0036
5. A student claims that he can correctly identify whether a person is a business major or an agriculture major by the
way the person dresses. Suppose in actuality that he can correctly identify a business major 87% of the time, while
16% of the time he mistakenly identifies an agriculture major as a business
major. Presented with one person and asked to identify the major of this person (who is either a business or agriculture
major), he considers this to be a hypothesis test with the null hypothesis being that the person is a business major and
the alternative that the person is an agriculture major. What would be an example of power of the test?
A. The probability of saying that the person is an agriculture major when in fact the person is a business major.
B. The probability of saying that the person is a business major when in fact the person is a business major.
C. The probability of saying that the person is a business major when in fact the person is an agriculture major.
D. The probability of saying that the person is an agriculture major when in fact the person is an agriculture major.
6. A student group maintains that the average student must travel for at least 25 minutes in order to reach college each
day. The college admissions office obtained a random sample of 36 one-way travel times from students. The sample
had a mean of 19.4 minutes. Assume that the population standard deviation is 9.6 minutes. Does the admissions office
have sufficient evidence to reject the student?s claim? The level of significance for this test is 0.05. What is the null
hypothesis for this test?
A. The mean one-way travel time for students is 19.4 minutes
B. The mean one-way travel time for students is not equal to 25 minutes
C. The mean one-way travel time for students is 25 minutes (or more)
D. The mean one-way travel time for students is less than 25 minutes
7. The owner of Get-A-Away Travel has recently surveyed a random sample of 250 customers of the agency. He
would like to determine whether or not the mean age of the agency customers is over 25. If so, he plans to alter the
destination of the special cruises and tours. If not, no changes will be made. The appropriate hypotheses are. If he
concludes the mean age is over 25 when it is not, he makes a ________ error. If he concludes the mean age is not over
25 when it is, he makes a ________ error.
A. Type II; Type I
B. Type I; Type I
C. Type I; Type II
D. Type II; Type II
8. The owner of Get-A-Away Travel has recently surveyed a random sample of 250 customers of the agency. He
would like to determine whether or not the mean age of the agency customers is over 25. If so, he plans to alter the

destination of the special cruises and tours. If not, no changes will be made. The appropriate hypotheses are. If he
concludes the mean age is over 25 when it is not, he makes a ________ error. If he concludes the mean age is not over
25 when it is, he makes a ________ error.
A. Type II; Type I
B. Type I; Type I
C. Type I; Type II
D. Type II; Type II
9. How many Kleenex should the Kimberly Clark Corporation package of tissues contain? Researchers determined
that 60 tissues is the average number of tissues used during a cold. Suppose a random sample of 10000 Kleenex users
yielded the following data on the number of tissues used during a cold: Give the null and alternative hypothesis to
determine if the number of tissues used during a cold is less than 60.
A. H0: > 60 vs. H1: 60
B. H0: = 60 vs. H1: < 60
C. H0: = 60 vs. H1: 60
D. H0: = 60 vs. H1: > 60
10. A paper manufacturer is not allowed to be over 15%. A buyer wants to test whether the proportion of defectives
exceeds the allowable limit. The buyer takes a random sample of 100 items and finds that 19 are defective. State the
null and alternative hypotheses for this test.
A. H0: p .15, H1: p > .15
B. H0: p < .15, H1: p .1
C. H0: p = .15, H1: p .15
D. H0: p < .15, H1: p > .15
E. none of the above
11. A programmer has written a software package that points out errors in programs. Previously, this was done
manually. The mean number of errors the software picket out of 100 different programs was 15, with a standard
deviation of 8.2. The mean number of errors picked out manually, out of 100 programs, was 13, with a standard
deviation of 4.9. We want to test whether there is evidence that this software picks out more errors than checking
manually does. Assume that the software is population 1 and manual checking is population 2. State the null and
alternative hypotheses to test whether this software does pick out more errors.
A. H0: 1 - 2 0, H1: 1 - 2 > 0
B. H0: 1 - 2 = 0, H1: 1 - 2 0
C. H0: 1 - 2 0, H1: 1 - 2 < 0
D. H0: 1 - 2 > 0, H1: 1 - 2 0 E. none of the above
12. If a hypothesis test leads to the rejection of the null hypothesis
A. a Type I error is always committed
B. a Type II error is always committed
C. a Type I error may have been committed
D. a Type II error may have been committed
13. Two samples each of size 25 are taken from independent populations assumed to be normally distributed with
equal variances. The first sample has a mean of 35.5 and standard deviation of 3.0 while the second sample has a
mean of 33.0 and standard deviation of 4.0. The computed t statistic is _____.
A. 2.5
B. 5
C. 3.6
D. 1.85
14. If we are testing for the difference between the means of two independent samples from a normal population with
samples of nx = 20 and ny = 20, the number of degrees of freedom for the t test statistic is equal to _____.
A. 40
B. 19
C. 38
D. 25
15. A paper manufacturer samples 100 sheets of paper with the a variance in thickness of 0.0025 inches squared.
Construct a 95% confidence interval for the population variance.
A. [0.001990 , 0.003176]
B. [0.001910 , 0.003335]
C. [0.001930 , 0.003368]
D. [0.002011 , 0.003208]
16. A financial institution wishes to estimate the mean balances owed by its credit card customers. The population
standard deviation is estimated to be $300. If a 98 percent confidence interval is used and an interval of $75 is
desired, how many cardholders should be sampled?
A. 3382
B. 62
C. 629
D. 87
17. When the sample size increases, everything else remaining the same, the width of a confidence interval for the
population parameter will:
A. Increase
B. Decrease
C. Remain unchanged
D. Sometimes increases and sometimes decreases
E. Impossible to tell
18. A professor of statistics wants to test that the average amount of money a typical college student spends per day
during spring break is over $70. Based upon previous research, the population standard deviation is estimated to be
$17.32. The professor surveys 35 students and finds that the mean spending is $72.43. Which of the following
statements is most accurate?

A. Unable to reject the null hypothesis at 0.10

C. Reject the null hypothesis at = 0.05

B. Reject the null hypothesis at = 0.10

D. Reject the null hypothesis at = 0.01

19. When testing for the equality of two population proportions, the F distribution is:
A. sometimes appropriate
B. never appropriate
C. only appropriate if both sample sizes are less than 30
D. only appropriate if at least one sample is at least 30
E. used when the two variances are not equal
20. A telephone company wants to estimate the mean number of minutes people in a city spend talking long distance,
to within 5 minutes with 95% confidence. From past records, an estimate a the standard deviation is 12 minutes. What
is the minimum sample size?
A. 28
B. 11
C. 23
D. 19
E. 42
21. The mean annual sales of a company in 36 of its sales offices over the country is $23,860,000, with a standard
deviation of $2,150,000. A manager quotes the annual sales of the company to be $25,000,000. Compute the p-value
to test whether the sample data provide evidence to reject the executives claim that the average annual sales are
$25,000,000.
A. 0.2726
B. 0.3637
C. 0
D. 0.0007
E. 0.0014
22. Paired observations are taken from two independent populations.
A. True
B. False
23. If the sample size increases and the confidence level changes from 90% to 99%, which of the following will be
true?
A. The confidence interval gets narrower.
B. The confidence interval stays the same.
C. The confidence interval gets wider.
D. The standard error changes.
E. It is impossible to tell
24. How much larger should the sample be if we want confidence interval to be one tenth as wide as it is currently?
(Assume estimation of population mean, known population variance)
A. 100 times
B. 10 times
C. 50 times
D. 1000 times
E. Not enough information to determine
25. A 95% confidence interval for the population mean is [106, 116]. The width of a 99% confidence interval for the
mean (assumed known variance), based on this information, would be:
A. 13.1
B. 22.5
C. 10
D. 5
E. Impossible to determine
26. If the sample size is cut to of its present size, all else being the same, the confidence interval will become:
(Assume estimation of population mean, known population variance)
A. twice as wide
B. half as wide
C. four times as wide
D. will not change
D. Not enough information to determine
27. To investigate the efficacy of a diet, a random sample of 16 male patients is drawn from a population of adult
males using the diet. The weight of each individual in the sample is taken at the start of the diet and at a medical
follow-up four weeks later. Assuming that the population of differences in weight before versus after the diet follow a
normal distribution, the t-test for related samples can be used to determine if there was a significant decrease in the
mean weight during this period. Suppose the mean decrease in weights over all 16 subjects in the study is 3.0 pounds
with the standard deviation of differences computed as 6.0 pounds. If d = mean weight before the diet - mean weight
after the diet, in order to see if the diet is effective what is the correct alternative hypothesis?
A. d>0
B. d<0
C. d0
D. Cannot be determined.
28. A hypothesis test was established to test the claim that the proportion of male and female teenagers who use
Instant Messaging (IM) every week are the same. A sample of 300 males determined that 207 used IM each week. A
sample of 350 females determined that 266 used IM each week. What is the test statistic for this sample?
A. +1.28
B. +0.56
C. +3.15
D. +2.00
29. When we test for differences between the means of two independent populations we can only use a t-test.
A. True
B. False

30. In testing for differences between the means of two independent populations if the test statistic is very large, then
the p-value of the test should be very small
A. True
B. False
31. If a judge acquits every defendant, the judge will never commit a Type I error.
A. True
B. False
32. The closer it is necessary for the sample estimate to be to the unknown population parameter, the smaller the
sample size required.
A. True
B. False
33. 87. Performing a t-test for two paired samples is essentially a one sample t-test.
A. True
B. False
34. Given H0: 18 and H1: < 18, we would commit Type I error if we
A. conclude that 18 when the truth is that < 18.
B. conclude that < 18 when the truth is that 18.
C. fail to reject 18 when the truth is that < 18.
D. None of these above
35. Which is not true of p-values?
A. When they are small, we want to reject H0.
B. They must be specified before the sample is taken.
C. They show the chance of Type I error if we reject H0.
D. None of these above
36. 92.Assuming that other factors remain the same, which of the following statements is most nearly correct for a ttest of a mean?
A. The critical value of Student's t is smaller if n is smaller.
B. If tcalc = 1.482 with n = 22, we get a clear-cut rejection in a right-tailed test at = .05.
C. Rejecting H0: = 75 in a two-tailed test implies rejection in a one-tailed test at the same .
D. A calculated p-value of 0.13 would lead us to reject the null hypothesis at = 0.10.
37.93. The null hypothesis
A. Is a statement about the value of the population parameter.
B. Will always contain the equal sign.
C. Cannot include values less than 0.
D. Both a and b are correct.
E. None of these above
38. A Type II error occurs when
A. We accept a false null hypothesis.
C. We reject a false null hypothesis.

B. We reject a true alternate hypothesis.

D. None of the above.

39. Weekly sales of diet coke at each of twelve Target stores are recorded before and after installing a new eyecatching display. To determine if the display is effective in increasing sales, what type of statistical test would you
expect to perform?
A. Comparison of means using an independent sample t-test.
B. Comparison of means using a paired t-test.
C. Comparison of means using a z-test.
D. None of these above
40. The alternative hypothesis
A. Is accepted if the null hypothesis is rejected.
C. Tells the value of the sample mean.

B. Will always contain the equal sign.

D. None of the above.

41. A 99% confidence interval can be interpreted as:

A. In 99% of the samples, the mean of the samples will be outside the interval.
B. There is a 1% chance that the true parameter value is outside the interval.
C. Both A and B

D. None of these above.

42. The rate of married women's participation in the work force has increased steadily over the past several years.
How does wives' employment status affect their husbands' well being? To answer this question, a survey of the job
satisfaction of 25 male accountants who were employed full-time and married was conducted. In this sample, 15
wives were employed and 10 were unemployed. The goal of the study is to compare the mean job satisfaction levels of
the two groups of husbands: (1) those with working wives and (2) those with unemployed wives. The observed
significance level (p-value) of the test, obtained from a computer printout, is .03. Is this sufficient evidence to
conclude that the mean satisfaction level of husbands with working wives is less than the mean satisfaction level of
husbands with unemployed wives?
A. Yes, at

= .01

B. No, at

= .10

C. Yes, at

= .05

D. No, at

= .04

43. The sample size needed to estimate a population mean to within 10 units was found to be 68. If the population
standard deviation was 50, then the confidence level used was
A. 99%
B. 95%
C. 90%
D. 80%
44. In a right-tailed test of hypothesis for a population mean with 13 degrees of freedom, the value of the test statistic
was 1.863. The p-value is
A. less than .025.
B. between .025 and .05.
C. between .05 and .10 D. greater than .10
45.102. In a sample size calculation for a mean, if the confidence level decreases, the required sample size will
increase.
A. True
B. False
46. Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs and would like to know what
proportion of the positive lab tests for prostate cancer are actually proven correct through subsequent biopsy. JBGHI
demands a sample large enough to ensure an error of 2% with 90% confidence. What is the necessary sample size?
A. 2,401
B. 1,692 (1691.26)
C. 1,604
D. 609
47. Which of the following statements is true regarding the width of a confidence interval for a population proportion?
It is narrower for 95% confidence than for 90% confidence.
It is wider for a sample of size 80 than for a sample of size 40.
It is wider for 95% confidence than for 99% confidence.
It is wider when the sample proportion is 0.50 than when the sample proportion is 0.20.
2
48. Let X 1 , X 2 , X 3 , and X 4 be a random sample of observations from a population with mean and variance .

Consider the following estimator of : 1 = 0.15 X 1 + 0.35 X 2 + 0.20 X 3 + 0.30 X 4 . What is the variance of 1 ?

A. 0.275

2
B. 0.275

C. 0.55

49. Which of the following factors do not affect the margin of error?
A. Sample mean
B. Population variance C. Sample size

D. 0.55
D. Confidence level

50. In developing an interval estimate for a population mean, the population standard deviation was assumed to be
8. The interval estimate was 45.82 2.36. Had equaled 16, the interval estimate would be:
A. 45.82 4.72
B. 55.82 2.36
C. 45.85 9.44
D. 91.64 4.72
51. A 98% confidence interval for the population mean can be interpreted as follows:
A. If all possible samples are taken and confidence intervals are calculated, 98% of those intervals would include the
true population mean somewhere in their interval.
B. One can be 98% confident that you have selected a sample whose range does not include the population mean.
C. One can be 98% confident that the true population mean is within the confidence interval.
D. All of the above.
52. My sample size is 6, and the sample mean is 38 with sample standard deviation of 16. At = 0.05, I should:
A. strongly reject the null hypothesis
B. mildly reject the null hypothesis
C. fail to reject the null hypothesis
D. accept the alternative hypothesis
E. there is insufficient information to determine

THE NEXT TWO QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

2
Let X 1 , X 2 , X 3 , and X 4 be a random sample of observations from a population with mean and variance .
Consider the following two point estimators of :

1 = 0.10 X 1 + 0.40 X 2 + 0.40 X 3 + 0.10 X 4 and

2 = 0.20 X 1 + 0.30 X 2 + 0.30 X 3 + 0.20 X 4
53. Which of the following is true?

A. 1 is biased, but 2 is unbiased estimator of .

B. 1 is unbiased, but 2 is biased estimator of .

C. Both 1 and 2 are unbiased estimators of . D. Both 1 and 2 are biased estimators of .
54. Which of the following is true?

A. Var( 1 ) = Var( 2 ). B. Var( 1 ) > Var( 2 ).

C. Var( 1 ) < Var( 2 ).

D. Cannot tell the relationship between Var( 1 ) and Var( 2 ).

55. The sample size needed to estimate a population mean to within 10 units was found to be 68. If the population
standard deviation was 50, then the confidence level used was
A. 99%
B. 95%
C. 90%
D. 80%
THE NEXT TWO QUESTIONS (49, 50) ARE BASED ON THE FOLLOWING INFORMATION:
A dean of college of business in the Midwest claims that he can correctly identify whether a student is finance major
or a music industry management major by the way the student dresses. Suppose in actuality that he can correctly
identify finance major 84% of the time, while 16% of the time he mistakenly identifies music industry management
major as finance major. Presented with one student and asked to identify the major of this student (who is either a
finance or music industry management major), the dean considers this to be a hypothesis test with the null hypothesis
being that the student is finance major and the alternative that the student is a music industry management major.
56. Which of the following statements illustrates a Type II error?
A. Saying that the student is music industry management major when in fact the student is finance major.
B. Saying that the student is finance major when in fact the student is finance major.
C. Saying that the student is finance major when in fact the student is music industry management major.
D. Saying that the student is music industry management major when in fact the student is music industry
management major.
57. Which of the following statements is an example of power?
A. The probability of saying that the student is a music industry management major when in fact the student is finance
major.
B. The probability of saying that the student is finance major when in fact the student is finance major.
C. The probability of saying that the student is finance major when in fact the student is a music industry management
major.
D. The probability of saying that the student is a music industry management major when in fact the student is a music
industry management major.
58. An assembly line will be shut down for maintenance if the defect rate exceeds 2.3%. Suppose you adopt a 5%
significance level and take a random sample of 200 items from the assembly line and compute the proportion of
defective items. For what values of the sample proportion will the assembly line be shut down?
A. 0.034
B. 0.038
C. 0.036
D. 0.040
59. The manufacturer of bags of cement claims that they fill each bag with at least 50.2 pounds of cement. Assume
that the standard deviation for the amount in each bag is 1.2 pounds. The decision rule is adopted to shut down the
filling machine if the sample mean weight for a sample of 40 bags is below 49.8. Suppose that the true mean weight
of bags is 50 pounds. Using this decision rule, what is the probability of a Type II error?
A. 0.85
B. 0.70
C. 0.80
D. 0.75

H1 : 8.3. You take a

60. Suppose you have the following null and alternative hypotheses: H 0 : = 8.3 and
sample of 30 observations, and find a sample mean of 7.3 with a standard deviation of 3.2. Which of the following is
the most accurate statement about the p-value?
A. p-value < 0.05
B. p-value < 0.10
C. p-value > 0.10
D. p-value < 0.01
61. Suppose you have the following null and alternative hypotheses: H 0 : 34.5 and H 0 : 34.5 .If you take a
random sample of 15 observations and find that s = 48.1, what is the most accurate statement that can be made about
the p-value for this test?
A. p-value < 0.025
B. p-value < 0.05
C. p-value < 0.01
D. p-value < 0.10
62. The test for the equality of two population variances is based on the
A. ratio of the two sample variances
B. difference between the two sample variances
C. difference between the two population variances
D. difference between the sample variances divided by the difference between the sample means
63. The manufacturer of bags of cement claims that they fill each bag with at least 50.1 pounds of cement. Assume
that the standard deviation for the amount in each bag is 1.2 pounds. The decision rule is adopted to shut down the
filling machine if the sample mean weight for a sample of 40 bags is below 49.7. What is the probability of a Type I
error?
A. 0.018
B. 0.024
C. 0.030
D. 0.036
64. In a hypothesis test of the difference between two population means, if the probability of Type II error is 0.25, then
A. the probability of rejecting H 0 , given that H 0 is false is 0.75.
A the probability of Type I error is 0.75.
B the probability of rejecting H 0 , given that H 0 is true, is 0.75.
C Both (A) and (B) are true.
65. When doing an analysis of variance, where each population is assumed to have the same variance, we are more
likely to reject the null hypothesis of equality of population means when there is:
A. high variability among (between) the sample means and high variability around within the sample means.
B. low variability among (between) the sample means and low variability around within the sample means.
C. high variability among (between) the sample means and low variability around within the sample means.
D. low variability among (between) the sample means and high variability around within the sample means.
66. For some positive value of Z, the probability that a standard normal variable is between 0 and Z is 0.3770. The
value of Z is
A. 0.18
B. 0.81
C. 1.16
D. 1.47
60. For some positive value of X, the probability that a standard normal variable is between 0 and +1.5X is 0.4332.
The value of X is
A. 0.10
B. 0.50
C. 1.00
D. 1.50
61. A catalog company that receives the majority of its orders by telephone conducted a study to determine how long
customers were willing to wait on hold before ordering a product. The length of time was found to be a random
variable best approximated by an exponential distribution with a mean equal to 3 minutes. What proportion of
customers having to hold more than 4.5 minutes will hang up before placing an order?
A. 0.22313
B. 0.48658
C. 0.51342
D. 0.77687
62. The owner of a fish market determined that the average weight for a catfish is 3.2 pounds with a standard deviation
of 0.8 pound. A citation catfish should be one of the top 2% in weight. Assuming the weights of catfish are normally
distributed, at what weight (in pounds) should the citation designation be established?
A. 1.56 pounds
B. 4.84 pounds
C. 5.20 pounds
D. 7.36 pounds
63. Sampling distributions describe the distribution of
A. parameters.
B. statistics.
C. both parameters and statistics.

D. neither parameters nor statistics

64. For air travelers, one of the biggest complaints is of the waiting time between when the airplane taxis away from
the terminal until the flight takes off. This waiting time is known to have a skewed-right distribution with a mean of
10 minutes and a standard deviation of 8 minutes. Suppose 100 flights have been randomly sampled. Describe the
sampling distribution of the mean waiting time between when the airplane taxis away from the terminal until the flight
takes off for these 100 flights.
A. Distribution is skewed-right with mean = 10 minutes and standard error = 0.8 minutes.
B. Distribution is skewed-right with mean = 10 minutes and standard error = 8 minutes.
C. Distribution is approximately normal with mean = 10 minutes and standard error = 0.8 minutes.
D. Distribution is approximately normal with mean = 10 minutes and standard error = 8 minutes.
65. Major league baseball salaries averaged $1.5 million with a standard deviation of $0.8 million in 1994. Suppose a
sample of 100 major league players was taken. Find the approximate probability that the average salary of the 100
players exceeded $1 million.
A. Approximately 0
B. 0.2357
C. 0.7357
D. Approximately 1
66. A sample of 25 bottles is taken from the production line at a local bottling plant. Assume that the fill amounts
follow a normal distribution. Which of the following statements is the most accurate estimate of the probability that
the sample standard deviation is more than 40% of the population standard deviation?
A. The probability is smaller than 0.95
B. The probability is smaller than 0.975
C. The probability is smaller than 0.995
D. The probability is greater than 0.995
67. The results of a recent survey indicated that 17.7% of all U.S. adults had taken a commercial airplane flight during
the last year. If we take a random sample of 40 adults, the probability is 0.37 that the sample proportion is greater than
what number?
A. 0.221
B. 0.197
C. 0.214
D. 0.191
68. Why is the Central Limit Theorem important in statistics?
A. Because for a large sample size n, it says the population is approximately normal.
B. Because for any population, it says the sampling distribution of the sample mean is approximately normal,
regardless of the shape of the population.
C. Because for a large sample size n, it says the sampling distribution of the sample mean is approximately normal,
regardless of the shape of the population.
D. Because for any sample size n, it says the sampling distribution of the sample mean is approximately normal.
69. What is the name of the parameter that determines the shape of the chi-square distribution?
A. The mean
B. The variance
C. The proportion
D. The degrees of freedom
70. Let the random variable X follow a normal distribution with a mean and a standard deviation . Let X be the
mean of a sample of n randomly chosen observations from this population. Which of the following statements is true?

2n ) < P ( X <
n ).
2n ) < P ( X <
n ).
A. P( X <
B. P( X <

C. P( X <

n )=P(X <
n ).

D. P( X <

n )<P(X <
n

THE NEXT TWO QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

Sales at a local wholesaler consist of both retail as well as online sales. During the course of a month, retail sales have
a mean of $96,780 with a standard deviation of $12,520. Over the same time period, online sales average $229,620
with a standard deviation of $234,100. Assume that the retail sales are independent of online sales.
83. What is the mean of the wholesalers monthly sales?
A. $326,400
B. $135,620
C. $132,840

D. $163,200

84. What is the standard deviation of the wholesaler monthly sales? (26547.66)
A. $35,620.0
B. $26,274.7
C. $71,240.0
D. $68,960.3

90. Last year, 10 percent of all teenagers owned an iPhone. This year, a sample of 260 randomly chosen teenagers
showed that 39 owned an iPhone. The test statistic to find out whether the percent has risen is
A. 2.687
B. 2.758
C. 0.0256
D. 2.258
91. The Board of Surgeons recommends a postoperative examination six months after a prostatectomy. In a sample
from the records of Cutter Memorial Hospital, follow-up exams were given in 90 out of 200 cases. In a sample of
records from Paymor Hospital, follow-up exams were given in 110 out of 200 cases. In a left-tailed test for equality of
proportions, the test statistic is ( p value =0.228)
A. 1.96
B. 2.58
C. 2.00
D. 3.47
E. None of the above
(n 10 and n(1) 10 for each sample)
92. Assuming that other factors remain the same, which of the following statements is most nearly correct for a t-test
of a mean?
A. The critical value of Student's t is smaller if n is smaller.
B. If tcalc = 1.482 with n = 22, we get a clear-cut rejection in a right-tailed test at = .05.
C. Rejecting H0: = 75 in a two-tailed test implies rejection in a one-tailed test at the same .
D. A calculated p-value of 0.13 would lead us to reject the null hypothesis at = 0.10.
96. The Central Limit Theorem states that as the sample size increases, the distribution of the sample mean approaches
a normal distribution with mean equal to the population mean and standard deviation equal to the population standard
deviation.
A. True
B. False
97. Carver Memorial Hospital's surgeons have a new procedure that they think will decrease the time to perform an
appendectomy. A sample of 8 appendectomies using the old method had a mean of 38 minutes with a variance of 36
minutes, while a sample of 10 appendectomies using the experimental method had a mean of 29 minutes with a
variance of 16 minutes. For a right-tail test of means (assume equal variances) the test statistic is
A. 2.365
B. 3.814
C. 3.000
D. 1.895
E. None of the above
(critical values at = .10 are: two-tailed test 3.29 and 0.272)
right-tail test 1.337

100. I would like to test the null hypothesis that the population mean is 50 versus the alternative that it is not 50. My
sample size is 6, and the sample mean is 38 with sample standard deviation of 16. At = 0.05, I should:
A. strongly reject the null hypothesis
B. mildly reject the null hypothesis
C. fail to reject the null hypothesis
D. accept the alternative hypothesis
E. there is insufficient information to determine

103. The owner of Limp Pines Resort wanted to know the average age of its clients. A random sample of 25 tourists is
taken. It shows a mean age of 46 years with a standard deviation of 5 years. The width of a 98 percent confidence
interval for the true mean client age is approximately
2.06 years.
B. 2.33 years.
C. 2.49 years.
D. 2.79 years.
104. Calculate the pooled variance for the following sample data.
Sample mean
40
30
A. 3.33

Sample Variance
10
12

B. 124.64

Sample Size
12
15
C. 11.12

D. 34.4

E. none of the above

106. In a test of a new surgical procedure, the five most respected surgeons in FlatBroke Township were invited to
Carver Hospital. Each surgeon was assigned two patients of the same age, gender, and overall health. One patient was
operated upon in the old way, and the other in the new way. Both procedures are considered equally safe. The time (in
minutes) to complete each procedure is shown:
Surgeon

Allen

Daphn Edgar
e
Old Way
36
55
28
40
62
New Way
31
45
28
35
57
In a right-tail test for a difference of means at = .05, the critical value is
A. 3.162, paired t-test
C. 1.645, independent samples t-test
(the test statistic is 3.162)

Bob

Chloe

B. 2.132, paired t-test

D. 2.776, independent samples t-test

107. A random sample of 16 ATM transactions at the Last National Bank of Flatrock revealed a mean transaction time
of 2.8 minutes with a standard deviation of 1.2 minutes. The width (in minutes) of the 95% confidence interval for the
true mean transaction time is
0.639
B. 0.588
C. 0.300
D. 2.131
108. A poll showed that 48 out of 120 randomly chosen graduates of California medical schools last year intended to
specialize in family practice. What is the width of a 90% confidence interval for the proportion that plan to specialize
in family practice?
.04472
B. .07357
C. .08765
D. .00329
110. Investment A has an expected return of 7.8% with a standard deviation of 2%. Investment B has an expected
return of 7.2% with a standard deviation of 3.1%. Which stock is more likely to have a return greater than 10%?
A. Stock A
B. Stock B
C. The probability is the same for both A and B.
D. Unable to determine.
111. One normal distribution has a mean of 5 and a standard deviation of 2. A second normal distribution has a mean
of 6 and a standard deviation of 1. Which of the following statements is true?
A. The width of the first distribution is wider than the second distribution
B. The central location of the first distribution is higher than the second distribution
C. The dispersions of both distributions are the same
D. The locations of both distributions are the same
112. The distribution of annual incomes of a sample of college graduates is normally distributed with a mean of
$52,000 and a standard deviation of 1,000. About 68 percent of the incomes lie between what two income levels?
A. 52,000 and 62,000 B. 50,000 and 60,000
C. 51,000 and 53,000
D.53,000 and 57,000
THE NEXT TWO QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Investment A has an expected return of 8% with a standard deviation of 2.5%. Investment B has an expected return of
6% with a standard deviation of 1.2%. Assume you invest equally in both investments and that the rates of return are
independent.
113. What is the expected return of your portfolio?
A. 8%
B. 7%
C. 6%

D. 4%

114. What is the standard deviation of the return on your portfolio? Assume that the returns on the two investments
are independent. (1.38)
A. 2.77
B. 2.50
C. 7.69
D. 6.25
115. The owner of a fish market determined that the average weight for a catfish is 3.4 pounds with a standard
deviation of 0.8 of a pound. A citation catfish should be one of the top 2% in weight. Assuming the weights of catfish
are normally distributed, at what weight (in pounds) should the citation designation be established?
A. 1.65 pounds
B. 5.04 pounds
C. 5.42 pounds D. 6.76 pounds

119. If the null hypothesis is rejected at a level of significance of .01, it will also be rejected at a level of significance
of .05.
A. True
B. False

10

120. For any significance level , the two-sided rejection region Z z / 2 or Z z / 2 has a Type I error pro/bability
equal to 1 - .
A. True
B. False

11