Exam 19: Questions that Involve Online Topics

The Laspeyres price index uses the initial consumption quantities as the weights.

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 is the Paasche price index for the basket of four food items in 2010 that consisted of 40 bushels of wheat, 50 bushels of corn, 35 bushels of soybeans and 60 hundredweight of milk in 2010 using 2006 as the base year?

TABLE 9-1 A manufacturer produces light bulbs that have a mean life of at least 500 hours when the production process is working properly. Based on past experience, the population standard deviation is 50 hours and the light bulb life is normally distributed. The operations manager stops the production process if there is evidence that the population mean light bulb life is below 500 hours. -Referring to Table 9-1, if you select a sample of 100 light bulbs and are willing to have a level of significance of 0.10, the probability of a Type I error is ________ if the population mean bulb life is 510 hours.

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 0.10, 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 standard deviation for Action A?

For a given level of significance, if the sample size is increased but the summary statistics remain the same, the power of the test will increase.

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 expected monetary value (EMV) for A2 is

TABLE 12-1 A perfume manufacturer is trying to choose between 2 magazine advertising layouts. An expensive layout would include a small package of the perfume. A cheaper layout would include a "scratch-and-sniff" sample of the product. The manufacturer would use the more expensive layout only if there is evidence that it would lead to a higher approval rate. The manufacturer presents both layouts to 5 groups and determines the approval rating from each group on both layouts. The data are given below. Use this to test whether the median difference in approval rating is different from zero in favor of the more expensive layout with a level of significance of 0.05. -Referring to Table 12-1, what are the lower and upper critical values of the test?

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, how many possible courses of action are there?

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. -Which of the following is not a decision making criterion?

The consumer price index is a Paasche price index.

TABLE 19-2 The following payoff matrix is given in dollars. -For a potential investment of $5,000, a portfolio has an EMV of $1,000 and a standard deviation of $100. The return to risk ratio is

TABLE 9-1 A manufacturer produces light bulbs that have a mean life of at least 500 hours when the production process is working properly. Based on past experience, the population standard deviation is 50 hours and the light bulb life is normally distributed. The operations manager stops the production process if there is evidence that the population mean light bulb life is below 500 hours. -Referring to Table 9-1, if you select a sample of 100 light bulbs and are willing to have a level of significance of 0.05, the probability of the operations manager stopping the process when the process is not working properly is ________ if the population mean bulb life is 490 hours.

TABLE 6-1 A company has 125 personal computers. The probability that any one of them will require repair on a given day is 0.15. -Referring to Table 6-1 and assuming that the number of computers that requires repair on a given day follows a binomial distribution, compute the probability that there will be more than 25 computers that require repair on a given day using a normal approximation.

TABLE 8-1 A random sample of 100 stores from a large chain of 500 garden supply stores was selected to determine the mean number of lawnmowers sold at an end-of-season clearance sale. The sample results indicated a mean of 6 and a standard deviation of 2 lawnmowers sold. A 95% confidence interval (5.623 to 6.377) was established based on these results. -Referring to Table 8-1, of all possible samples of 100 stores taken from the population of 1,000 stores, 95% of the confidence intervals developed will contain the true population mean within the interval.

TABLE 19-4 A stock portfolio has the following returns under the market conditions listed below. -Referring to Table 19-4, what is the EMV?

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 expected profit under certainty?

The more expensive commodities are overly influential in an unweighted aggregate price index.

TABLE 7-1 Times spent studying by students in the week before final exams follow a normal distribution with standard deviation 8 hours. A random sample of 4 students was taken from a population of 50 in order to estimate the mean study time for the population of all students. Use the finite population correction. -Referring to Table 7-1, what is the probability that the sample mean is more than 3 hours below the population mean?

TABLE 16-1 Given below are the average prices for three types of energy products for five consecutive years. -Referring to Table 16-1, what is the Paasche price index for the group of three energy items in year 4 for a family that consumed 13 units of electricity, 26 units of natural gas and 235 units of fuel oil in year 4 using year 1 as the base year?