Exam 19: Questions that Involve Online Topics

To determine the probability of getting between 3 and 4 events of interest in a binomial distribution, you will find the area under the normal curve between X = 3.5 and 4.5.

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 2010 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?

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 number of states of nature for the payoff table 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, the perfume manufacturer will

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 EMV for buying 200 dozen roses is

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 is the probability that a random sample of 50 will have at least 30% of customers who will make a purchase after visiting the website?

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 power of the test is ________ if the population mean bulb life is 490 hours.

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 0.1, the power of the test is ________ if the population mean effective time is 8 minutes.

The risk- ________ curve represents the expected monetary value approach.

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 power of the test 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, the confidence interval estimate of the mean with finite population correction will be wider in range than confidence interval estimate without finite population correction.

TABLE 19-2 The following payoff matrix is given in dollars. -Referring to Table 19-2, what is the best action using the maximax criterion?

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

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 power of the test is ________ if the mean power consumption of all such microwave ovens is in fact 257.3 W.

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 actions of this decision-making problem.

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 2009 that consisted of 60 bushels of wheat, 40 bushels of corn, 35 bushels of soybeans and 70 hundredweight of milk in 2009 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, the opportunity loss for A3 when S2 occurs is

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 2004 for a family that consumed 13 units of electricity, 26 units of natural gas and 235 units of fuel oil in year 3 using year 1 as the base year?

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 are the simple price indices for electricity, natural gas and fuel oil, respectively, in year 3 using year 5 as the base year?

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 exceeds the population mean by more than 2 hours?