1)

Daniel Neeson, Human Resources Manager with Auckland First Bank (AFB), is reviewing the employee training programs of AFB branches. His staff randomly selected personnel files for 100 tellers in the Southern Region and determined that their mean training time was 25 hours. Assume that the population standard deviation is 5 hours. The 88% confidence interval for the population mean of training times is:

Select one:

a.24.42 to 25.59.

b.19.15 to 30.85.

c.24.23 to 25.78.

d.17.25 to 32.75.

2)

Ten policyholders file claims with Alliance Insurance. Three of these claims are fraudulent. Claims manager Scarlett Hanks randomly selects three of the ten claims for thorough investigation. If X represents the number of fraudulent claims in Scarlett's sample, P(X = 0) is:

Select one:

a.0.0083.

b.0.3430.

c.0.0159.

d.0.2917.

3)

Ophelia Douglas, Director of Consumer Credit with Auckland First Bank (AFB), monitors the default rate on personal loans at AFB member banks. One of her standards is 'no more than 5% of personal loans should be in default'. Each Friday, the default rate is calculated for a sample of 500 personal loans. Last Friday's sample contained 38 defaulted loans. Using alpha= 0.10, the appropriate decision is:

Select one:

a.increase the sample size.

b.reject the null hypothesis.

c.do not reject the null hypothesis.

d.reduce the sample size.

4)

A carload of steel rods has arrived at Cybermatic Construction Company. The car contains 50,000 rods. George Hemsworth, Quality Assurance Manager, directs his crew to measure the lengths of 100 randomly selected rods. If the population of rods have a mean length of 120 cm and a standard deviation of 0.05 cm, the probability that George's sample has a mean greater than 120.0125 cm is:

Select one:

a.0.0124.

b.0.4938.

c.0.0062.

d.0.9752.

5)

Let Z be a normal random variable with mean 0 and standard deviation 1. Use the normal tables to find P(Z < 1.3).

Select one:

a.0.8485.

b.0.9968.

c.0.9032.

d.0.4032.