An insurance company wants to study whether offering incentives for preventative care reduces overall health care costs (measured in dollars). They select a random sample of 200 of their customers.

They use a random number generator to select 100 customer account numbers to offer the incentive. The remaining 100 customers are assigned to the control group.

1. What are the variable(s)? ( may select more than one)

a. Whether someone has insurance

b. Offering incentives for preventative care

c. Customers

d. Account Balances

e. Health care cost

f. Account Numbers

2. What type of variable(s) are in the above example?

a. 1 Categorical

b. 1 Quantitative and 1 Categorical

c. 2 Quantitative

d. 1 Quantitative

e. 2 Categorical

3. Which of the variable(s) is the explanatory variable?

a. Healthcare cost

b. Account Balances

c. Whether someone has insurance

d. None. There is only one variable.

e. Offering incentives for preventative care

f. Customers

g. Account Numbers

4. What type of sampling design is used in the above?

a. Simple Random Sample

b. Cluster

c. Multi Stage

d. Stratified

5. If the researchers wanted to guarantee that they had an equal number of Democrats, Republicans, and Independent voters as they have in the population they should have used a

a. Cluster Random Sampling

b. Stratified Random Sampling

c. Simple Random Sample

d. Systematic Sampling

e. Multi Stage Sampling

6. At a party there are 30 students over age 21 and 20 students under age 21. You choose at random 3 of those over 21 and separately choose at random 2 of those under 21 to interview about attitudes toward alcohol.

What type of sampling design did you use?

a. Simple Random Sample

b. Multi Stage Sampling

c. luster Sampling

d. Systematic Sampling

e. Stratified Random Sampling

7. An auto analyst is conducting a satisfaction survey, sampling from a list of 10,000 new car buyers. The list includes 2,500 Ford buyers, 2,500 GM buyers, 2,500 Honda buyers, and 2,500 Toyota buyers. The analyst selects a sample of 400 car buyers, by random sampling 100 buyers of each brand.

Is this an example of a simple random sample?

a. Yes, because each buyer in the sample had an equal chance of being sampled.

b. No, because this is an example of stratified random sampling.

c. Yes, because each buyer in the sample was randomly sampled.

d. Yes, because car buyers of every brand were equally represented in the sample.

e. No, because the population consisted of purchasers of four different brands of car.

8. Researchers report that smokers are 10 times as likely to be alcoholics compared to nonsmokers. In this study, which variable is explanatory and which one is response?

a. Explanatory: being a smoker, Response: being an alcoholic

b. Explanatory: being an alcoholic, Response: being a smoker