Exam 19: Questions that Involve Online Topics

TABLE 19-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam. He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam. From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Table 19-6, what is the coefficient of variation of spending 8 hours per week on average studying for the exam?

If a new machine of a production plant is functioning properly, only 1% of the items produced will be defective. Out of the 1,000 items the plant produces on a single day, the approximate probability that at least 0.2% of the items will be defective if the new machine is indeed functioning properly is ________.

The Laspeyres price index is a form of weighted aggregate price index.

Blossom's Flowers purchases roses for sale for Valentine's Day. The roses are purchased for $10 a dozen and are sold for $20 a dozen. Any roses not sold on Valentine's Day can be sold for $5 per dozen. The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen roses. Given 0.2, 0.4, and 0.4 are the probabilities for the sale of 100, 200, or 400 dozen roses, respectively, then the optimal EOL for buying roses is

TABLE 19-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. -Referring to Table 19-1, if the probability of S1 is 0.5, then the coefficient of variation for A1 is

TABLE 19-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam. He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam. From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Table 19-6, what is the return-to-risk ratio of spending 8 hours per week on average studying for the exam?

TABLE 9-2 An appliance manufacturer claims to have developed a compact microwave oven that consumes a population mean of no more than 250 W. From previous studies, it is believed that power consumption for microwave ovens is normally distributed with a population standard deviation of 15 W. If there is evidence that the population mean consumption is greater than 250 W, the manufacturer will be unable to make the claim. -Referring to Table 9-2, if you select a sample of 20 compact microwave ovens and are willing to have a level of significance of 0.05, the probability of making a Type II error is ________ if the mean power consumption of all such microwave ovens is in fact 257.3 W.

TABLE 19-5 The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events. -Referring to Table 19-5, what is the EOL for Action B?

At Eastern University, 60% of the students are from suburban areas, 30% are from rural areas, and 10% are from urban areas. Of the students from the suburban areas, 60% are nonbusiness majors. Of the students from the rural areas, 70% are nonbusiness majors. Of the students from the urban areas, 90% are nonbusiness majors. If a randomly selected student is not a business major, the probability that the student is from the urban area is

Blossom's Flowers purchases roses for sale for Valentine's Day. The roses are purchased for $10 a dozen and are sold for $20 a dozen. Any roses not sold on Valentine's Day can be sold for $5 per dozen. The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen roses. The payoff for buying and selling 400 dozen roses at the full price is

TABLE 16-2 Given below are the prices of a basket of four food items from 2006 to 2010. -Referring to Table 16-2, what are the simple price indices for wheat, corn, soybeans and milk, respectively, in 2008 using 2010 as the base year?

Based on past experience, only 0.5% of the invoices of a company contain an error. Out of the 1,500 invoices that the company will issue, what is the approximate probability that at least 4 invoices will contain an error?

TABLE 19-3 The following information is from 2 investment opportunities. -Referring to Table 19-3, which investment has the optimal return to risk ratio?

TABLE 12-2 An agronomist wants to compare the crop yield of 3 varieties of chickpea seeds. She plants all 3 varieties of the seeds on each of 5 different patches of fields. She then measures the crop yield in bushels per acre. Treating this as a randomized block design, the results are presented in the table that follows. -Referring to Table 12-2, the Friedman rank test is valid only if the 5 blocks are independent so that the yields in one block have no influence on the yields in any other block.

Blossom's Flowers purchases roses for sale for Valentine's Day. The roses are purchased for $10 a dozen and are sold for $20 a dozen. Any roses not sold on Valentine's Day can be sold for $5 per dozen. The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen roses. Given 0.2, 0.4, and 0.4 are the probabilities for the sale of 100, 200, or 400 dozen roses, respectively, then the optimal EMV for buying roses is

TABLE 19-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam. He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam. From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Table 19-6, what is the opportunity loss of spending 8 hours per week on average studying for the exam when the exam turns out to be difficult?

The Paasche price index reflects more accurately the consumption cost at a point in time because it uses the consumption quantities in the initial year as the base.

TABLE 7-2 According to a survey, only 15% of customers who visited the website of a major retail store made a purchase. Random samples of size 50 are selected from a population of 900. Use the finite population correction factor. -Referring to Table 7-2, what proportion of the samples will have less than 15% of customers who will make a purchase after visiting the website?

TABLE 9-3 A drug company is considering marketing a new local anesthetic. The effective time of the anesthetic the drug company is currently producing has a normal distribution with a mean of 7.4 minutes with a standard deviation of 1.2 minutes. The chemistry of the new anesthetic is such that the effective time should be normally distributed with the same standard deviation. The company will market the new local anesthetic as being better if there is evidence that the population mean effective time is greater than the 7.4 minutes of the current local anesthetic. -Referring to Table 9-3, if you select a sample of 25 new local anesthetics and are willing to have a level of significance of 0.01, the probability of the company marketing the new local anesthetic when its population mean effective time is greater than the 7.4 minutes is ________ if the population mean effective time is 8 minutes.

TABLE 8-2 A wealthy real estate investor wants to decide whether it is a good investment to build a high-end shopping complex in a suburban county near Chicago. His main concern is the total market value of the 3,605 houses in the suburban county. He commissioned a statistical consulting group to take a sample of 200 houses and obtained a sample mean market price of $225,000 and a sample standard deviation of $38,700. The consulting group also found out that the mean differences between market prices and appraised prices was $125,000 with a standard deviation of $3,400. Also the proportion of houses in the sample that are appraised for higher than the market prices is 0.24. -Referring to Table 8-2, if the investor wants a 95% confidence on estimating the true population mean market price of the houses in the suburban county to be within $10,000, how large a sample will he need?