Exam 19: Questions that Involve Online Topics

The use of the finite population correction factor when sampling without replacement from finite populations will

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, the optimal strategy using the expected monetary value criterion is to study 16 hours per week on average for the exam.

A medical doctor is involved in a $1 million malpractice suit. He can either settle out of court for $250,000 or go to court. If he goes to court and loses, he must pay $825,000 plus $175,000 in court costs. If he wins in court the plaintiffs pay the court costs. Identify the states of nature of this decision-making problem.

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 optimal action using the coefficient of variation?

TABLE 19-2 The following payoff matrix is given in dollars. -Referring to Table 19-2, what is the action with the preferable return to risk ratio?

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, the standard error of all the sample proportions of customers who will make a purchase after visiting the website is ________.

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 but less than 30 computers that require repair on a given day using a normal approximation.

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 opportunity loss for Action A with Event 2?

One of the reasons that a correction for continuity adjustment is needed when approximating the binomial distribution with a normal distribution is because the normal distribution is used for a discrete random variable while the binomial distribution is used for a continuous random variable.

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 no more than 0.2% of the items will be defective if the new machine is indeed functioning properly 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 16 hours per week on average studying for the exam when the exam turns out to be easy?

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 optimal action using EOL?

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 incorrectly stopping the process when the process is in fact working properly is ________.

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 optimal action using the return to risk ratio?

In a local cellular phone area, company A accounts for 60% of the cellular phone market, while company B accounts for the remaining 40% of the market. Of the cellular calls made with company A, 1% of the calls will have some sort of interference, while 2% of the cellular calls with company B will have interference. If a cellular call is selected at random, the probability that it will not have interference is

A company that manufactures designer jeans is contemplating whether to increase its advertising budget by $1 million for next year. If the expanded advertising campaign is successful, the company expects sales to increase by $1.6 million next year. If the advertising campaign fails, the company expects sales to increase by only $400,000 next year. If the advertising budget is not increased, the company expects sales to increase by $200,000. Identify the payoffs in this decision-making problem.

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, the mean of all the sample proportions of 50 customers who will make a purchase after visiting the website 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 0.01, the probability of the operations manager stopping the process if the population mean bulb life is 490 hours 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 0.10, the confidence coefficient of the test is ________ if the population mean bulb life is 510 hours.

For a given level of significance, if the sample size is increased but the summary statistics remain the same, the probability of committing a Type I error will increase.