1 At many universities, students are assigned a grade of A, B, C, D, or F at the completion of each course. These letter grades are translated to 4, 3, 2, 1, and 0 grade (quality) points, respectively. The level of data measurement is __________. Select one: A. nominal B. ordinal C. interval D. ratio Question 2 Application of the least squares methods results in values of the y intercept and the slope which minimizes the sum of the squared deviations between the Select one: A. observed values of the independent variable and estimated values of the independent variable B. actual values of the independent variable and estimated values of the dependent variable C. observed values of the dependent variable and the estimated values of the dependent variable D. None of the above answers is correct Question 3 An experiment consists of determining the speed of automobiles on a highway by use of radar equipment. The random variable in this experiment is a Select one: A. discrete random variable B. continuous random variable C. complex random variable D. none of above answers is correct Question 4 According to AAA, a typical business traveler spends an average of $281 per day in Detroit. This cost includes hotels, meals, car rental, and incidentals. A survey of 65 randomly selected business travelers who have been to Detroit on business recently is taken. For the population mean of $281 per day, what is the probability of getting a sample average of more than $293 per day if the population standard deviation is $47? Select one: A. 0.9352 B. 0.9147 C. 0.6147 D. 0.0853 E. None of the above answers is correct Question 5 As the number of degrees of freedom for t distribution increases, the difference between the t distribution and standard normal distribution Select one: A. becomes large B. becomes smaller C. stays the same D. None of the above answers is correct Question 6 Variability in price of stock is one consideration for stock investment. If the only criteria for buying stock is the variability in price of stock which of the following stock should be purchased if the lowest price variability is desired? Select one: A. Stock A with mean price value of $85 and standard deviation of $10 B. Stock B with mean price value of $40 and standard deviation of $5 C. Stock C with mean price value of $185 and standard deviation of $25 D. Stock D with mean price value of $4 and standard deviation of $1 Question 7 Test of hypothesis to determine whether two attributes from a population could be considered independent requires using Select one: A. F distribution B. the t distribution C. the normal distribution D. the chi-square distribution E. None of the above answers is correct Question 8 After computing a confidence interval, the user believes the results are meaningless because the width of the interval is too large. Which one of the following is the best recommendation? Select one: A. Increase the level of confidence for the interval B. Discard the current data and try a different sample C. Increase the sample size D. Reduce the population variance E. None of the above answers is correct Question 9 Correlation analysis is used to determine Select one: A. the equation of the regression line B. the strength of the relationship between the dependent and the independent x-variables C. a specific value of the dependent variable for a given value of the independent variable D. All of the above are correct statements Question 10 Which of the following sampling methods does not lead to probability samples? Select one: A. stratified B. cluster C. systematic D. judgement E. simple random sampling F. None of the above answers is correct Question 11 In factorial design, the response produced when the treatments of one factor interact with the treatments of another factor in influencing the response variable is known as Select one: A. main effect B. replication C. interaction D. partition E. None of the above answers is correct Question 12 If the coefficient of determination is equal to one, then the coefficient of correlation Select one: A. must be equal to one B. can be either -1 or +1 C. can be any value between -1 to +1 D. must be -1 E. None of the above answers is correct Question 13 A statistics professor asked students in a class their ages. On the basis of this information, the professor states that the average age of all the students in university is 23 years. This is an example of Select one: A. a census B. descriptive statistics C. an experiment D. statistical inference E. None of the above answers is correct Question 14 An important application of the chi-square distribution is Select one: A. when making inferences about a single population variance B. when testing for goodness of fit C. when testing for independence of two variables D. All of the above answers are correct E. None of the above answers are correct Question 15 In developing an interval estimate, if the population standard deviation is unknown Select one: A. it is impossible to develop an interval estimate B. the standard deviation is arrived at using historical data C. the sample standard deviation can be used D. None of the above answers is correct Question 16 As the sample size increases Select one: A. standard deviation of the population decreases B. population mean increases C. standard error of mean decreases D. standard error of mean increases E. None of the above answers is correct Question 17 Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system. She knows that 2,500 payroll vouchers have been issued since January 1, 2000, and her staff doesn't have time to inspect each voucher. So, she randomly selects 53 as a starting point and orders her staff to inspect the 53rd voucher and each voucher at an increment of 100 (53, 153, 253, etc.). Her sample is a __________. Select one: A. stratified sample B. simple random sample C. convenience sample D. systematic sample Question 18 Consider a random variable X. If Z represents the standard score associated with X, what is the probability associated with P(Z 3.5)? Select one: A. 1.0 B. 0.0 C. 0.5 D. There is not enough information to answer this question E. None of the above answers is correct Question 19 Fifty percent of the applications received for a particular credit card are accepted. Among the next twelve applications, what is the probability that less than three applications are accepted? Select one: A. 0.054 B. 0.016 C. 0.019 D. 0.000 E. None of the above answers is correct Question 20 If there is a very strong correlation between two variables, then the coefficient of correlation must be Select one: A. much larger than 1, if the correlation is positive B. much smaller than 1, if the correlation is negative C. Both answers above are correct answers D. None of the above answers is correct Question 21 If a hypothesis is rejected at 0.5% level of significance, it Select one: A. will always be rejected at the 0.49% level B. will always be accepted at the 0.49% level C. will never be tested at the 0.49% level D. may be rejected or not rejected at the 0.49% level Question 22 The most important statistical descriptive measure of the central tendency (location) of a data set is the Select one: A. mean B. mode C. median D. variance E. None of the above answers is correct Question 23 Your investment executive claims that the average yearly rate of return on the stocks you have selected to invest in on your own is at most 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is Select one: A. HO: < 10.0% B. Ha: 10.0% HO: 10.0% Ha: < 10.0% C. HO: > 10.0% Ha: 10.0% D. HO: 10.0% Ha: > 10.0% E. None of the above answers is correct Question 24 If we are interested in testing whether the mean of population 1 is smaller than the mean of population 2, the Select one: A. the null hypothesis should state HO: 1-2 < 0 B. the null hypothesis should state HO: 1-2 0 C. the alternative hypothesis should state Ha: 1-2 0 D. the alternative hypothesis should state Ha: 1-2 0 E. None of the above answers is correct Question 25 If all the points of a scatter diagram lie on the least squares regression line, then the coefficient of determination for these variables based on this data is Select one: A. 0 B. 1 C. either 1 or -1, depending upon whether the relationship is positive or negative D. could be any value between -1 and 1 E. None of the above answers is correct Question 26 The marketing department of a company has designed three different boxes for its product. It wants to determine if sales for these boxes are different. Each box will be marketed in five different stores for a period of a month. Sales data for each box for each of the five stores were recorded. Which of the following would be the appropriate type of test of hypothesis if the objective is to determine whether the sales for these boxes are different? Select one: A. completely randomized design B. factorial design C. randomized block design D. None of the answers listed are correct Question 27 In reference to marketing problem statement, if the objective is to determine whether the sales for these boxes are different, indicate which of the following is a correct statement? Select one: A. the appropriate null hypothesis is 1=2=3=4=5 B. the appropriate null hypothesis is 1=2=3 C. the appropriate alternative hypothesis is 1=2=3 D. None of the above answers is correct Question 28 Express Delivery, Inc. claims that it will deliver packages in less than 48 hours. Office Equipment Company uses Express Delivery, Inc.'s package delivery service for delivering merchandise to its most valued customers. To check the validity of the claim made by Express Delivery, Office Equipment Company checked the delivery time for the last 37 order deliveries and learned that sample mean is 50 hours. Assume that population standard deviation of delivery time for all packages delivered by Express Delivery is 4.9 hours. Which of the following is correct? Select one: A. Ho: < 48 B. Ho: 48 C. Ho: > 48 D. Ha: > 48 E. None of the above is the correct answer. Question 29 Concerning the Express Delivery, Inc. problem statement, if test of hypothesis at 2% level of significance is desired, what is (are) the critical value(s) for test statistics? Select one: A. 2.33 B. +2.33 C. -2.33 D. 2.05 E. +2.05 F. -2.05 Question 30 Concerning the Express Delivery, Inc. problem statement, what is the value of the test statistic? Select one: A. 2.18 B. 2.48 C. 2.68 D. -2.18 E. -2.48 F. None of the above is the correct answer. Question 31 Concerning the Express Delivery, Inc. problem statement, ASSUMING that null hypothesis should be rejected, what statement can be made concerning the validity of claim made by Express Delivery, Inc.? Select one: A. No conclusion can be drawn. B. There is not enough information to answer this question. C. The claim is not valid. D. The claim is valid. E. None of the above is the correct answer. Question 32 General Motors and Ford have produced cars with the same size diesel engine. We are interested in determining whether or not there is a significant difference in the gas consumption of the two models of automobiles. A random sample of 7 cars from each manufacturer is selected, and 7 drivers are selected to drive one of GM and one of Ford cars for a specified distance implying that driver 1 drove the first GM car and the first Ford car, driver 2 drove the second GM car and the second Ford car, driver 3 drove third GM car and the third Ford car, and so on. The MPG (miles per gallon) data is recorded and summarized in the following table: Driver General Motors Model (MPG) Ford Model (MPG) 1 29 26 2 25 23 3 26 27 4 25 25 5 22 24 6 24 23 7 27 25 Which of the following is a correct statement if the objective of the test of hypothesis is to determine whether there is a difference in the gas consumption of the two models? Select one: A. Ho: GM = Ford B. Ho: D = 0 (where D is the mean population difference) C. Ho: GM Ford D. Ho: D 0 E. None of the above answers is correct. Question 33 Concerning the diesel engine gas mileage problem, what is (are) the critical value(s) of test statistics if significance level is 5%? Select one: A. 2.447 B. +1.943 C. -1.943 D. 1.96 E. 1.645 F. -1.645 Question 34 Concerning diesel engine gas mileage problem, ASSUMING that null hypothesis can not be rejected at 5% significance level, what conclusion can be drawn concerning the gas mileage for GM and Ford car models using this type of engine? Select one: A. there is no difference in the gas mileage for this type of cars using this type of diesel engine for the two manufactures B. there is a difference in the gas mileage for this type of cars using this type of diesel engine for the two manufacturers C. GM cars equipped with this type of diesel engine get a higher gas mileage than Ford cars equipped with the same type of engine D. Ford cars equipped with type of diesel engine get a higher gas mileage than GM cars equipped with the same type of engine Question 35 Concerning diesel engine gas mileage problem, ASSUMING that null hypothesis can be rejected at 5% significance level and conclusion is drawn that there is a difference in the gas mileage for this type of cars using this type of diesel engine for the two manufacturers, what is the probability that this conclusion is the wrong conclusion? Select one: A. 95% B. 100% C. 5% D. 0% E. 0.5% F. There is not enough information to answer this question. Question 36 Benson Medical Equipment is specialized in cardiovascular surgery equipment. The result of simple regression analysis conducted on data gathered over ten years resulted in the linear equation Y=9.75+13.2X, where X is the number of sales persons employed and Y is the sales volume in millions of dollars. If Benson Medical Equipment plans to employ 20 salespersons next year, what would be the predicted sales volume next year? Select one: A. $274,000,000 B. $273,750,000 C. $273.75 D. $274.00 E. None of the above answers is correct. Question 37 Concerning the Benson Medical problem statement, the slope of regression equation implies that: Select one: A. the sales volume is independent of the number of salespersons employed. B. the sales volume decreases with a decrease in the number of salespersons employed. C. the sales volume decreases with an increase in the number of salespersons employed. D. the sales volume increases with a decrease in the number of salespersons employed. E. None of the above answers is correct. Question 38 Concerning Benson Medical problem statement, the coefficient of determination is determined to be equal to 0.94. What percentage of data is explained by this regression equation? Select one: A. 97.0% B. 88.4% C. 94.0% D. There is not enough information to answer this question. E. None of the above is the correct answer. Question 39 Concerning Benson Medical problem statement, what is the value of the coefficient of correlation? Select one: A. +0.9695 B. -0.9695 C. +0.8836 D. -0.8836 E. +0.9400 F. None of the above is the correct answer. Question 40 Concerning Benson Medical problem statement, which of the following is the appropriate alternative hypothesis if the objective is to evaluate the overall significance of the model? Select one: A. Ha: < 0 B. Ha: > 0 C. Ha: 0 D. None of the above answers is correct. Question 41 Concerning Benson Medical problem statement, what conclusion can be drawn if the null hypothesis can not be rejected at significance level of 1% when conducting a t-test? Select one: A. The slope of regression model is statistically significant. B. The slope of the regression model is not statistically significant. C. The slope of regression model is negative. D. No specific conclusion can be drawn. E. None of the above answers is correct. Question 42 A group of 550 Michigan registered voters were asked about their political party affiliation and how they would cast a vote concerning the proposal to increase federal income tax rate to resolve the federal budget deficit over the next ten years. The following data was obtained: Political Party Affiliation Favor Undecided Democrat 180 80 40 300 Republican 150 20 30 200 Independent 10 20 20 50 Total 120 90 550 340 Oppose Total Which of the following is the appropriate null hypothesis if the objective is to determine whether the register voters in Michigan will vote along the party line on the proposal to increase the federal income tax rate? Select one: A. The casting of the vote is dependent on voter's political party affiliation. B. The casting of the vote is independent of voter's political party affiliation. C. There is not enough information to answer this question. D. None of the above answers is correct. Question 43 Concerning Michigan registered voter problem statement, what is the critical value of test statistic if the significance level is 10%? Select one: A. 1.28 B. 7.7794 C. 14.6387 D. 26.2962 E. None of the above answers is correct. Question 44 Concerning Michigan registered voter problem statement, ASSUMING that null hypothesis can not be rejected based on significance level of 10%, what conclusion can be drawn? Select one: A. The casting of the vote is dependent on voter's political party affiliation. B. The casting of the vote is independent of voter's political party affiliation. C. There is not enough information to answer this question. D. None of the above answers is correct. Question 45 Nick Nader is in charge of a mail processing office in a large corporation. He wants to determine if there is a significant difference in the daily mail processing for three different types of mail-sorting methods. He has selected 12 mail processing office employees at random and has randomly assigned 4 employees each to use the three proposed mail- processing methods. Data was gathered on the number of mails processed during a one-hour period and summarized in the following table: Method 1 Method 2 Method 3 32 33 26 30 35 34 26 30 28 28 38 32 What would be the appropriate null hypothesis if the objective of the test of hypothesis is to determine whether there is any significant difference in the average number of mails processed per hour using the three different methods of processing mail? Select one: A. Ho: There is a significant difference in the average number of mails processed per hour for the three methods. B. Ho: 1 23 C. Ho: 1 = 2 = 3 D. None of the above answers is correct. Question 46 Concerning the mail processing problem statement, the sum of square due to treatment is 56 and sum of square due to error is 94. What is the value of the test statistic if test of hypothesis is to be conducted at significance level of 0.10? Select one: A. 1.68 B. 2.68 C. 3.68 D. 4.68 E. None of the above is the correct answer. Question 47 Concerning mail processing problem statement, what is the critical value of the test statistics if test of hypothesis is to be conducted at significance level of 0.10? Select one: A. 9.38 B. 1.28 C. 3.01 D. 2.92 E. None of the above answers is correct. Question 48 Concerning the mail processing problem statement, what statement can be made about null hypothesis based on the test statistic and its critical value? Select one: A. Null hypothesis can be rejected. B. Null hypothesis cannot be rejected. C. There is not enough information to answer this question. D. None of the above answers is correct. Question 49 Concerning the mail processing problem statement, considering the test statistic and its critical value, what specific conclusion related to the problem statement can drawn? Select one: A. There is a significant difference in the average number of mails processed per hour for the three methods. B. There is not a significant difference in the average number of mails processed per hour for the three methods. C. There is not enough information to answer this question. D. None of the above answers is correct. Question 50 A multiple regression analysis produced the following tables. Predictor Coefficients Standard Error t Statistic p-value Intercept 752.0833 336.3158 2.236241 0.042132 x1 11.87375 5.32047 2.231711 0.042493 x2 1.908183 0.662742 2.879226 0.01213 Source df SS MS F p-value Regression 2 203693.3 101846.7 6.745406 0.010884 Residual 12 181184.1 15098.67 Total 14 384877.4 The regression equation for this analysis is ____________. Select one: A. y = 752.0833 + 11.87375 x1 + 1.908183 x2 B. y = 752.0833 + 336.3158 x1 + 2.236241 x2 C. y = 336.3158 + 5.32047 x1 + 0.662742 x2 D. y = 2.236241 + 2.231711 x1 + 2.879226 x2 E. y = 2.236241 + 2.231711 x1 - 2.879226 x2 Question 51 A human resources analyst is developing a regression model to predict electricity production plant manager compensation as a function of production capacity of the plant, number of employees at the plant, and plant technology (coal, oil, and nuclear). The "plant technology" variable in this model is ______. Select one: A. a quantitative variable B. a dependent variable C. a response variable D. an indicator variable E. an independent variable Question 52 In regression analysis, outliers may be identified by examining the ________. Select one: A. coefficient of determination B. coefficient of correlation C. p-values for the partial coefficients D. residuals E. R-squared value Question 53 An appropriate method to identify multicollinearity in a regression model is to ____. Select one: A. examine a residual plot B. examine the ANOVA table C. examine a correlation matrix D. examine the partial regression coefficients E. examine the R2 of the regression model Question 54 A multiple regression analysis produced the following tables. Coefficients Standard Error t Statistic p-value Intercept 707.9144 435.1183 1.626947 0.114567 x1 2.903307 81.62802 0.035568 0.971871 x12 11.91297 3.806211 3.129878 0.003967 df SS MS F p-value Regression 2 32055153 16027577 47.34557 1.49E-09 Residual 27 9140128 338523.3 Total 29 41195281 Using a = 0.05 to test the null hypothesis H0: 2 = 0, the critical t value is ____. Select one: A. 1.311 B. 1.699 C. 1.703 D. 2.052 E. 2.502 Question 55 A multiple regression analysis produced the following tables. Coefficients Standard Error t Statistic p-value Intercept 707.9144 435.1183 1.626947 0.114567 x1 2.903307 81.62802 0.035568 0.971871 x12 11.91297 3.806211 3.129878 0.003967 df SS MS F p-value Regression 2 32055153 16027577 47.34557 1.49E-09 Residual 27 9140128 338523.3 Total 29 41195281 The regression equation for this analysis is ____________. Select one: A. y = 707.9144 + 2.903307 x1 + 11.91297 x12 B. y = 707.9144 + 435.1183 x1 + 1.626947 x12 C. y = 435.1183 + 81.62802 x1 + 3.806211 x12 D. y = 1.626947 + 0.035568 x1 + 3.129878 x12 E. y = 1.626947 + 0.035568 x1 - 3.129878 x12 Question 56 A multiple regression analysis produced the following tables. Coefficients Standard Error t Statistic p-value Intercept 707.9144 435.1183 1.626947 0.114567 x1 2.903307 81.62802 0.035568 0.971871 x12 11.91297 3.806211 3.129878 0.003967 df SS MS F p-value Regression 2 32055153 16027577 47.34557 1.49E-09 Residual 27 9140128 338523.3 Total 29 41195281 The sample size for this analysis is ____________. Select one: A. 27 B. 29 C. 30 D. 25 E. 28 Question 57 An "all possible regressions" search of a data set containing 7 independent variables will produce ______ regressions. Select one: A. 13 B. 127 C. 48 D. 64 E. 97 Question 58 After a transformation ofthe y-variable values into log y, and performing a regression analysis produced the following tables. Coefficients Standard Error t Statistic p-value Intercept 2.005349 0.097351 20.59923 4.81E-18 x 0.027126 0.009518 2.849843 0.008275 df SS MS F p-value Regression 1 0.196642 0.196642 8.121607 0.008447 Residual 26 0.629517 0.024212 Total 27 0.826159 For x1= 10, the predicted value of y is ____________. Select one: A. 155.79 B. 1.25 C. 2.42 D. 189.06 E. 18.90 Question 59 Large correlations between two or more independent variables in a multiple regression model could result in the problem of ________. Select one: A. multicollinearity B. autocorrelation C. partial correlation D. rank correlation E. non-normality Question 60 An acceptable method of managing multicollinearity in a regression model is the ___. Select one: A. use the forward selection procedure B. use the backward elimination procedure C. use the forward elimination procedure D. use the stepwise regression procedure E. use all possible regressions Question 61 Using a three-month moving average, the forecast value for October made at the end of September in the following time series would be ____________. July 12 Aug 5 Sept 7 Oct 11 Select one: A. 7.67 B. 8 C. 9 D. 6.89 E. 7.25 Question 62 Using 2000 as the base year, the 2002 value of a simple price index for the following price data is _____________. Year 1998 1999 2000 2001 2002 2003 Price 29.88 32.69 42.04 46.18 47.98 48.32 Select one: A. 77.60 B. 114.13 C. 160.58 D. 99.30 E. 100.00 Question 63 In exponential smoothing models, the value of the smoothing constant, , may be any number between ___________. Select one: A. -1 and 1 B. -5 and 5 C. 0 and 1 D. 0 and 10 E. 0 and 100 Question 64 A time series with forecast values and error terms is presented in the following table. The mean absolute deviation (MAD) for this forecast is ___________. Month Actual Forecast Error July 5 Aug 11 5 6.00 Sept 13 6.8 6.20 Oct 6 8.66 -2.66 Nov 5 7.862 -2.86 Select one: A. 3.54 B. 7.41 C. 4.43 D. 17.72 E. 4.34 Question 65 In an autoregressive forecasting model, the independent variable(s) is (are) ______. Select one: A. time-lagged values of the dependent variable B. first-order differences of the dependent variable C. second-order, or higher, differences of the dependent variable D. first-order quotients of the dependent variable E. time-lagged values of the independent variable Question 66 A time series with forecast values and error terms is presented in the following table. The mean squared error (MSE) for this forecast is ___________. Month Actual Forecast Error July 5 Aug 11 5 6.00 Sept 13 6.8 6.20 Oct 6 8.66 -2.66 Nov 5 7.862 -2.86 Select one: A. 13.33 B. 17.94 C. 89.71 D. 22.43 E. 32.34 Question 67 For a problem statement in which it is required to establish a 95% confidence interval, what happens to standard error of mean if the confidence level changes to 90%? Select one: A. will increase B. will decrease C. remains unchanged D. becomes negative E. None of the above answers is correct