MBA 610 - Exam 1 This is a take-home exam, containing 50 questions, each worth 2 points (total of 100 points). You may use your book, notes, calculator, Excel, and other resources such as videos and handouts provided to you in the course. You should not discuss this exam, solutions for it, or any part of it with other individuals. You must strictly observe the Honor Code. Do not give help to anyone, or receive help from anyone in completing this exam. Your answers must be original and your own. Read these instructions carefully For several exam questions, you must use data in various worksheets of the Excel data file embedded below. Read exam questions carefully and use the file as instructed. Data for Exam1.xlsx Online students: Submit the completed table below via pasting into BB. Send the file no later than 8:00 p.m. Sunday Feb 19 Feb to your course instructor: Q 1 2 3 4 5 6 7 8 9 10 Answe r Q 11 1 21 31 41 51 61 71 81 92 0 Answe r Q Answe r 2 12 22 32 42 52 62 72 82 93 0 Q 3 13 23 33 43 53 63 73 83 94 0 1 Answe r Q 4 14 24 34 44 54 64 74 84 95 0 Answer Use the following table for Questions 1-4. It shows the data for 10 sample orders for Bob's sporting goods. 1) Customer Experience Rating is a(n)___________variable. A. Ordinal B. Interval C. Nominal D. Ratio 2) Sales Total is measured as a(n)__________variable. A. Ratio B. Nominal C. Interval D. Ordinal 3) How many variables are qualitative? A. 2 B. 3 C. 4 D. 5 4) The Customer Experience Rating was most likely collected through: A. Experiment B. Focus Group C. Survey D. Direct Observation For Questions 5-7, use data from pertinent worksheet in the Excel data file embedded on Page 1 of this exam. It shows the number of complaints to Billy Bob's Emporium. 5) Using the 2k >n rule, how many classes are required? A. 3 B. 4 C. 5 D. 6 2 6) Using class width of 3, set lower and upper bounds for first class to be 2 and 4, respectively. What is the relative frequency of the third class? A. .2 B. .125 C. .25 D. .025 7) Which histogram accurately depicts the data provided? For Questions 8 - 10, use data from pertinent worksheet in the Excel data file embedded on Page 1 of this exam. It shows the number of pizzas sold weekly at Pizza Gallery. 8) Which variable is independent? A. Pizza's sold weekly B. Week C. Could be either variable D. Shown on the vertical axis 3 9) Which stem and leaf plot is an accurate depiction of the data? 10) Which scatter plot accurately describes the data provided? 4 For Questions 11 - 19, use data from pertinent worksheet in the Excel data file embedded on Page 1 of this exam. It is data for car sales at a dealership. 11) The mode for the number of sales people is A. 5 B. 13 C. 17 D. Both B and C are correct 12) The average number of new cars sold is A. 9.98 B. 5.35 C. 11.45 D. 8.82 13) Which of the following statements is true A. New cars sold has a st dev of 3.66 and is more dispersed (less consistent) than Used cars sold B. New cars sold has a st dev of 3.66 and is less dispersed (more consistent) than Used cars sold C. New cars sold has a st dev of 13.41 and is more dispersed (less consistent) than Used cars sold D. New cars sold has a st dev of 13.41 and is less dispersed (more consistent) than Used cars sold 14) The median for Used Cars sold is A. 3.75 B. 7 C. 6 D. 13 15) The range for profit from Used car sales is A. $42,156 B. $68,588 C. $20,958 D. $23,200 16) Use Excel's function to compute the 35th percentile for profit from New car sales? A. $30,049 B. $46,235 C. $28,200 D. 14 5 17) For number of Used cars sold, which of the following are true? A. Store A1 is an outlier B. There are no outliers C. Stores A1, A9, A11, A15 and A22 are outliers D. Stores A2, A5 and A32 are outliers 18) The mode for the BBB rating is? A. 15 B. AAA C. 10 D. AA and AA+ 19) Use Excel's function to compute interquartile range for sales people. A. 6.15 B. 15.00 C. 13.20 D. 7.25 20) Bison football fans making the 18 hour drive from Fargo ND to Frisco TX purchased gasoline 6 times (see table below). What is the average price they paid per gallon of gas? Purchase 1 2 3 4 5 6 A. B. C. D. Gallons Purchased 15 8 22 5 16 14 Price Paid/Gallon $1.90 $2.31 $1.87 $2.85 $1.99 $2.05 $2.16 per gallon $2.04 per gallon $1.87 per gallon $1.99 per gallon Use the following information to answer questions 21-23. 500 employees of your company are listed by age and their score on computer proficiency test: Age 20-29 30-39 40-49 50-59 >60 Total 150< Test Scores 150-169 170-199 >200 10 10 15 5 25 20 20 10 30 55 60 45 65 45 25 25 Total 130 130 120 85 5 45 5 80 10 200 15 175 35 500 21) What is the probability that a randomly selected employee is in 40-49 years age range and scores 170 or more? 6 A. B. C. D. 0.353 0.17 0.708 0.754 22) What is the probability that a randomly selected employee scores 170 or more and is 50 years or older? A. 0.19 B. 0.253 C. 0.412 D. 0.44 23) One of the employees scored in range of 200 or higher. What is the probability this employee is younger than 40? A. 0.22 B. 0.371 C. 0.629 D. 0.722 Use the following information to answer questions 24-25: Chance of winning $100 or more on a type of casino slot machine is 2.3%, when playing the maximum bet for one hour. A couple enters the casino and each plays these machines for an hour. 24) What is the chance that both win $100 or more? A. 0.0005 B. 0.0046 C. 0.046 D. 0.023 25) What is the chance that one of them wins $100 or more? A. 0.046 B. 0.023 C. 0.0225 D. 0.0449 26) What is the probability that neither of them win $100 or more? A. 0.4561 B. 0.9700 C. 0.9545 D. 0.9980 Use the following information to answer questions 27 and 28: Eight balls are in a basket: white, black, blue, green, yellow, red, orange, and violet. You will draw 3 balls from the basket without replacement. After drawing each ball you will not return it 7 to the basket, until all 3 balls are drawn. Then you will return all balls to the basket for the next draw of 3. 27) What is the probability that you will draw the white, yellow, and red balls - in that order - in the first draw of 3 balls? A. 0.029 B. 0.0030 C. 0.0004 D. 0.0021 28) What is the probability that the white and the red balls are, respectively, the first and second balls drawn on the first draw of 3 balls, and again the first and second balls drawn on the second draw of 3 balls? A. 0.0022 B. 0.0001 C. 0.0003 D. 0.0178 Use this information to answer questions 29 and 30: You and your nine friends (a group of 10) are planning for a day of activity. Six of you will play basketball with another team while four will stand by. In the evening the entire group will go to a concert and enjoy your favorite music. 29) Assuming everybody in your group can play but only 6 of you will be in the team, how many different basketball teams can you form? Note: A different team means at least one player is different. A. 5040 B. 3604 C. 860 D. 210 30) In how many different ways can your group line up at the ticket booth of the concert? Assume single file. A. Less than or equal to 100,000 different ways B. More than 100,000 but less than or equal to 1,000,000 different ways C. More than 1,000,000 but less than or equal to 2,000,000 different ways D. More than 2000,000 different ways 31) Historical data shows that 0.65% of finished products (65 in 10,000) from of a production line is faulty and must be either refurbished or scrapped. You are inspecting a box of 100 units from the latest production batch. What is the probability that you will find one faulty unit? Use Excel to solve. Assume Binomial distribution. A. B. C. D. 0.28 0.34 0.65 0.06 8 32) Cars arrive at a gas station at an average rate of 5 per minute. What is the probability that 8 cars arrive at this gas station within the next minute? Assume Poisson distribution. A. 0.28 B. 0.34 C. 0.65 D. 0.06 Use this information to answer questions 33-34: The following probability distribution summarizes sales statistics for a new product for 50 business days: #Units sold during the day 1 2 3 4 5 6 7 8 9 10 Total Freque ncy (days) 3 5 4 8 2 8 7 6 5 2 50 33) What is the expected number of units sold per day? A. Less than 4 B. 4 or more, but less than 5 C. 5 or more, but less than 6 D. More than 6 34) What is the variance of daily sales? A. 82.51 B. 2.54 C. 5.44 D. 6.45 35) Your business plan indicates that the new product line may turn in $68,000 profit next year if demand is strong, $24,000 profit if demand is average and $15,000 loss if demand is weak. Market study shows 35% probability for a strong demand, 40% probability for average demand, and 25% for a weak demand next year. What is the expected monetary value (EMV) of this new product line for next year? A. $29,650 B. $31,440 C. $39,286 D. $41,223 36) A management professor gives a quiz containing 15 True/False questions. Past data suggests the probability to be 0.78 that a student chooses the correct answer for any given question. What is the probability that a student selected at random will answer at least 12 questions correctly? Assume binomial distribution applies. A. 0.2457 B. 0.3269 C. 0.5726 D. 0.6731 9 37) The probability that an article in XYZ magazine has a typographical error is 0.05. The next edition has 18 articles. What is the probability that the magazine (all 18 articles) will be free of typographical errors? Assume binomial distribution. A. 0 B. 0.3972 C. 0.95 D. 1.00 Use the following information to answer Questions 38 - 40. Students arrive at the reference desk of the library at an average rate of 12 per hour. Assume Poisson distribution applies. 38) Compute the probability that exactly 5 students arrive in one hour. A. 0.0127 B. 0.0034 C. 0.0203 D. 0.1606 39) Compute the probability that exactly 5 students arrive in 30 minutes. A. 0.0127 B. 0.0034 C. 0.0203 D. 0.1606 40) Compute the probability that at least 15 students arrive in the next two hours. A. 0.0724 B. 0.9802 C. 0.0344 D. 0.8444 Use the following information to answer Questions 41-42. The time it takes to make a kitchen cabinet is uniformly distributed and ranges between 125 to 200 minutes. 41) What is the probability that it takes exactly 180 minutes to make a kitchen cabinet? A. 0 B. 0.3329 C. 0.7333 D. 1.2861 42) What is the probability that it takes between 150 to 220 minutes to make a kitchen cabinet? A. 0.5 B. 0.3759 C. 0.6667 D. 0.9333 Use the following information to answer Questions 43 - 45. 10 The mean time it takes for a particular make/model of a watch to break down and require repair services from the manufacturer is 30 months, with a standard deviation of 8 months. The manufacturer's warranty for the watch is 1 year (12 months). Assume normal distribution. 43) What is the probability that the watch will break down within the warranty period and the manufacturer must cover the cost of repair? A. 0.0031 B. 0.0122 C. 0.5739 D. 0.7287 44) What is the probability the watch will function for 25 months or longer? A. 0.6917 B. 0.3085 C. 0.2660 D. 0.1288 45) To be more customer-friendly, the manufacturer has decided to change its warranty policy so the probability of service while under warranty is 0.03 or less. How many months should be set as the warranty period? Round up your answer to the nearest integer. A. 13 B. 14 C. 15 D. 16 Use the following information to answer Questions 46-47. The HR department of a local company administers a litmus test to applicants. The mean score on the test is 245 with a standard deviation equal to 28 points. Assume normal distribution. 46) What is the probability that an applicant scores between 230 and 280 points? A. 0.6428 B. 0.7715 C. 0.8329 D. 0.5983 47) The manager wants to consider only those applicants who have scored in the top 5%. What score marks that cut-off point? A. 291 B. 220 C. 199 D. 278 Use the following information to answer Questions 48 - 50. The time between failures for an industrial machine is exponentially distributed with a mean of 37 days. 48) What is the probability that a failure occurs in the next 30 days? 11 A. B. C. D. 0.1288 0.4469 0.5555 0.7253 49) What is the probability that a failure occurs in the next 20 to 50 days? A. 0.1438 B. 0.3659 C. 0.2271 D. 0.3235 50) What is the probability that it will be 65 days or longer before the machine breaks down? A. 0.0925 B. 0.1726 C. 0.4364 D. 0.5002 Page 1 of this Exam has due date, return instructions, and an embedded Excel file that you must use to record/submit answers 12