Exam 19: Questions that Involve Online Topics

As a general rule, one can use the normal distribution to approximate a binomial distribution whenever n(π - 1) is at least 5.

Which of the following is used to determine observations that have influential effect on the fitted model?

In portfolio analysis, the ________ is the reciprocal of the return to risk ratio.

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 failing to market 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 8-1 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, if the population had consisted of 400 stores, the confidence interval estimate of the mean with finite population correction would have been wider in range.

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, we do not know for sure whether the true population mean is between 5.623 and 6.377 lawnmowers sold.

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 B with Event 1?

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 opportunity loss (EOL) for A3 is

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 power of the test is ________ if the mean power consumption of all such microwave ovens is in fact 248 W.

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 maximax criterion is to study 8 hours per week on average 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 248 W.

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, there are 10 possible samples of 100 stores that can be selected out of the population of 1,000 stores.

TABLE 19-2 The following payoff matrix is given in dollars. -Referring to Table 19-2, the expected profit under certainty (EPUC) 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 opportunity loss for Action A with Event 1?

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 Laspeyres price index for the basket of four food items in 2008 that consisted of 50 bushels of wheat, 30 bushels of corn, 40 bushels of soybeans and 80 hundredweight of milk in 2006 using 2006 as the base year?

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 profit under certainty (EPUC) 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 is the Paasche price index for the basket of four food items in 2008 that consisted of 50 bushels of wheat, 30 bushels of corn, 40 bushels of soybeans and 80 hundredweight of milk in 2008 using 2006 as the base year?

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, what is the critical value of the Friedman rank test for the difference in the medians at a level of significance of 0.01?

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 opportunity loss for buying 200 dozen roses and selling 100 dozen roses at the full price is

________ is a procedure for revising probabilities based upon additional information.