Questions 1 - 2.A home loan analyst has a research hypothesis:Home loan applicants with high credit scores are more likely to exercise a strategic default than home loan applicants with low credit scores.

1.State the null hypothesis.

A.Home loan applicants are not interested in getting home loans.

B.Home loan applicants with high credit scores are not more likely to exercise a strategic default than home loan applicants with low credit scores.

C.Home loan applicants with high credit scores are less likely to exercise a strategic default than home loan applicants with low credit scores.

D.Home loan applicants with high credit scores are more likely to exercise a strategic default than home loan applicants with low credit scores.

2.What are the cases (observation units), independent variable, and dependent variable?

A.Cases: Home loan applicants;

Independent variable: Credit scores;

Dependent variable: Likelihood to exercise a stratgic default

B.Cases: Home loan analysts;

Independent variable: Morgage payment;

Dependent variable: Likelihood to exercise a stratgic default

C. Cases: Credit analysts;

Independent variable: Likelihood to exercise a stratgic default;

Dependent variable: Irish musicians

D. Cases: Likelihood to exercise a stratgic default;

Independent variable: Likehood to file for personal bankruptcy;

Dependent variable: Credit scores

3-4.Consider the following hypothesis: Technology companies that create their new consumer products extrenally with customers, suppliers, and independent contractors are more likely to be successful with them than technology companies that create their new consumer products internally with their own staff members only.

3. What are the independent variable and the dependent variable?

A. Independent variable: Technology companies;

Dependent variable: Consumers

B. Independent variable: Technology companies;

Dependent variable: Ways of creating consumer products (extenally, internally)

C. Independent variable: Ways of creating consumer products (extenally, internally);

Dependent variable: The level of success with new consumer products

D.Independent variable:Technology company types (Apple, Google);

Dependent variable: Ways of creating consumer products (extenally, internally)

4. How would you measure the independent variable and the dependent variable?

A.

The level of measurement of the Independent variable: Interval-ratio;

The leve of measurement of the dependent variable: Interval-ratio

B.

The level of measurement of the Independent variable: Nominal;

The leve of measurement of the dependent variable: Nominal

C.

The level of measurement of the Independent variable: Interval-ratio;

The level of measurement of the dependent variable: Nominal

D.

The level of measurement of the Independent variable: Nominal;

The level of measurement of the dependent variable: Ordinal

Questions 5 - 6.A marketing researcher learns that young adults in his city purchased an average of 20 DVD movies with a standard deviation of 5 DVD movies last year.He obtained this information from a survey of 500 young adults.Assume that the numbers of DVD movies purchased are normally distributed.

5.) What is the probability of a young adult purchasing more than 35 DVD movies last year?

Note: This question can be answered by going through a two step process. First get the z score using the formula: Z = (Specific Score - Mean) / Standard Deviation. Then get the probability from the probability table on page 95.

A. .0228

B. .0014

C. .1587

D. .5000

6.How many young adults purchased less than 15 DVD movies last year?

Note: This question can be answered by going through a three step process. First get the the z score using the formula: Z = (Specific Score - Mean) / Standard deviation. Then get the probability from the probability table on page 95. Finally, multiply the obtained probability by the total number of cases.The total number of cases is 500.

A. 79.35

B. 22.80

C. 500

D. 11.40