Exam 19: Questions that Involve Online Topics

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. What is the coefficient of variation?

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 less than 0.2% of the items will be defective if the new machine is indeed functioning properly 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 Laspeyres price index for the group of three energy items in year 3 for a family that consumed 15 units of electricity, 24 units of natural gas and 200 units of fuel oil in year 1 using year 1 as the base year?

TABLE 19-3 The following information is from 2 investment opportunities. -Referring to Table 19-3, what is the return to risk ratio for Investment B?

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 II error will increase.

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 probability of a Type II error is ________ if the population mean effective time is 8 minutes.

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 maximum amount that the student is willing to pay to obtain perfect information?

The Laspeyres price index has the disadvantage that the consumption pattern in the initial period might be quite different from that in the current period and, hence, does not reflect accurately the current consumption cost.

TABLE 19-2 The following payoff matrix is given in dollars. -Referring to Table 19-2, the EOL for Action A 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 EVPI for this problem?

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, 10% of all the samples of 4 will have a sample mean of at least how many hours below the population mean?

To determine the probability of getting between 2 and 4 events of interest in a binomial distribution, you will find the area under the normal curve between X = 1.5 and 4.5.

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, 90% of the samples will have less than what percentage of customers who will make a purchase after visiting the website?

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 value of the test statistic for the Friedman rank test for the difference in the medians?

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 expected profit under certainty (EPUC) for this 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. -True or False: Referring to Table 7-2, the requirements for using a normal distribution to approximate a binomial distribution is fulfilled.

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 257.3 W.

When you use the Poisson distribution to approximate the binomial distribution, the mean is nπ where n is the sample size and π is the probability of an event of interest.

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 is the value of the test statistic?

If we are performing a two-tail test of whether μ = 100, the probability of detecting a shift of the mean to 105 will be ________ the probability of detecting a shift of the mean to 110.