Question 1

When the normality assumption is not met in a randomized block design,which of the following tests should be used?

Accepted Answer

A) Wilcoxon rank sum test 
B) Wilcoxon signed ranks test 
C) Kruskal-Wallis test 
D) Friedman rank test 
A) Wilcoxon rank sum test 
B) Wilcoxon signed ranks test 
C) Kruskal-Wallis test 
D) Friedman rank test

Question 2

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 coefficient of variation for A1 is

Accepted Answer

A) 0.231 
B) 0.5 
C) 1.5 
D) 2 
A) 0.231 
B) 0.5 
C) 1.5 
D) 2

Question 3

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

Accepted Answer

A) 3 
B) 4.5 
C) 7 
D) 8 
A) 3 
B) 4.5 
C) 7 
D) 8

Question 4

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 are the simple price indices for wheat,corn,soybeans and milk,respectively,in 2006 using 2010 as the base year?

Accepted Answer

196.76,195

Question 5

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?

Accepted Answer

The answer of TABLE 7-1
Times spent studying by students in...

Question 6

TABLE 19-4
A stock portfolio has the following returns under the market conditions listed below.
Market Condition Probability Return
Bull 0.4 $200
Stable 0.3 $100
Bear 0.3 -$100
-Referring to Table 19-4,what is the return to risk ratio?

Accepted Answer

A) 0.64 
B) 1.08 
C) 1.18 
D) 2.00 
A) 0.64 
B) 1.08 
C) 1.18 
D) 2.00

Question 7

Using the Cook's distance statistic Dᵢ to determine influential points in a multiple regression model with k independent variable and n observations and letting Fᵥ₁ᵥ₂ denote the critical value of an F distribution with v₁ and v₂ degrees of freedom at a 0.50 level of significance,Xᵢ is an influential point if

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 8

The Paasche price index uses the consumption quantities in the year of interest as the weights.

Accepted Answer

A) True 
 B)False

Question 9

As a general rule,one can use the normal distribution to approximate a binomial distribution whenever the sample size is at least 15.

Accepted Answer

A) True 
 B)False

Question 10

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 5 for a family that consumed 15 units of electricity,24 units of natural gas and 200 units of fuel oil in year 1 using hear 1 as the base year?

Accepted Answer

The answer of TABLE 16-1
Given below are the average prices...

Question 11

TABLE 19-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature.  
-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

Accepted Answer

A) $4,500. 
B) $2,500. 
C) $1,700. 
D) $1,000. 
A) $4,500. 
B) $2,500. 
C) $1,700. 
D) $1,000.

Question 12

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.

Accepted Answer

A) Two choices: (1)go to court and (2)settle out of court 
B) Two possibilities: (1)win the case in court and (2)lose the case in court 
C) Four consequences resulting from Go/Settle and Win/Lose combinations 
D) The amount of money paid by the doctor 
A) Two choices: (1)go to court and (2)settle out of court 
B) Two possibilities: (1)win the case in court and (2)lose the case in court 
C) Four consequences resulting from Go/Settle and Win/Lose combinations 
D) The amount of money paid by the doctor

Question 13

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,what is the optimal alternative using EMV?

Accepted Answer

A) A1 
B) A2 
C) A3 
D) It cannot be determined. 
A) A1 
B) A2 
C) A3 
D) It cannot be determined.

Question 14

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 unweighted aggregate price index for the group of three energy items in year 5 using year 1 as the base year?

Accepted Answer

The answer of TABLE 16-1
Given below are the average prices...

Question 15

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,which of the following is one of the properties required so that the binomial distribution can be used to compute the probability that no more than 2 computers will require repair on a given day?

Accepted Answer

A) The probability that a computer that will require repair in the morning is the same as that in the afternoon. 
B) A randomly selected computer on a given day will either require a repair or will not. 
C) The number of computers that will require repair in the morning is independent of the number of computers that will require repair in the afternoon. 
D) The probability that two or more computers that will require repair in a given day approaches zero. 
A) The probability that a computer that will require repair in the morning is the same as that in the afternoon. 
B) A randomly selected computer on a given day will either require a repair or will not. 
C) The number of computers that will require repair in the morning is independent of the number of computers that will require repair in the afternoon. 
D) The probability that two or more computers that will require repair in a given day approaches zero.

Question 16

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 have interference is

Accepted Answer

A) 0.014 
B) 0.028 
C) 0.14 
D) 0.986 
A) 0.014 
B) 0.028 
C) 0.14 
D) 0.986

Question 17

TABLE 19-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature.  
-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 EVPI for buying roses is

Accepted Answer

A) $700. 
B) $1,500. 
C) $1,900. 
D) $2,600. 
A) $700. 
B) $1,500. 
C) $1,900. 
D) $2,600.

Question 18

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.

Accepted Answer

A) Two choices: (1)go to court and (2)settle out of court 
B) Two possibilities: (1)win the case in court and (2)lose the case in court 
C) Four consequences resulting from Go/Settle and Win/Lose combinations 
D) The amount of money paid by the doctor 
A) Two choices: (1)go to court and (2)settle out of court 
B) Two possibilities: (1)win the case in court and (2)lose the case in court 
C) Four consequences resulting from Go/Settle and Win/Lose combinations 
D) The amount of money paid by the doctor

Question 19

The Analysis of Means (ANOM)is more appropriate if you want to identify the group(s)that has(have)a higher or lower mean than the overall mean while the One-Way Analysis of Variance (One-way ANOVA)is more appropriate when you just want to see if the means of all the different groups are the same.

Accepted Answer

A) True 
 B)False

Question 20

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 would be the expected profit if the student had perfect information on whether the exam will be easy or difficult?

Accepted Answer

The answer of TABLE 19-6
A student wanted to find out...

When the normality assumption is not met in a randomized block design,which of the following tests should be used?

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 coefficient of variation for A1 is

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 16-2 Given below are the prices of a basket of four food items from 2006 to 2010. -Referring to Table 16-2,what are the simple price indices for wheat,corn,soybeans and milk,respectively,in 2006 using 2010 as the base year?

TABLE 19-4 A stock portfolio has the following returns under the market conditions listed below. Market Condition Probability Return Bull 0.4 $200 Stable 0.3 $100 Bear 0.3 -$100 -Referring to Table 19-4,what is the return to risk ratio?

The Paasche price index uses the consumption quantities in the year of interest as the weights.

As a general rule,one can use the normal distribution to approximate a binomial distribution whenever the sample size is at least 15.

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,what is the optimal alternative using EMV?

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 unweighted aggregate price index for the group of three energy items in year 5 using year 1 as the base year?

The Analysis of Means (ANOM)is more appropriate if you want to identify the group(s)that has(have)a higher or lower mean than the overall mean while the One-Way Analysis of Variance (One-way ANOVA)is more appropriate when you just want to see if the means of all the different groups are the same.

Introduction

Organizing and Visualizing Data

Numerical Descriptive Measures

Basic Probability

Discrete Probability Distributions

The Normal Distribution and Other Continuous Distributions

Sampling and Sampling Distributions

Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

Two-Sample Tests

Analysis of Variance

Chi-Square Tests and Nonparametric Tests

Simple Linear Regression

Introduction to Multiple Regression

Multiple Regression Model Building

Time-Series Forecasting

Statistical Applications in Quality Management

A Roadmap for Analyzing Data

Filters

Exam 19: Questions that Involve Online Topics

When the normality assumption is not met in a randomized block design,which of the following tests should be used?

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 coefficient of variation for A1 is

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 16-2 Given below are the prices of a basket of four food items from 2006 to 2010. -Referring to Table 16-2,what are the simple price indices for wheat,corn,soybeans and milk,respectively,in 2006 using 2010 as the base year?

TABLE 19-4 A stock portfolio has the following returns under the market conditions listed below. Market Condition Probability Return Bull 0.4 $200 Stable 0.3 $100 Bear 0.3 -$100 -Referring to Table 19-4,what is the return to risk ratio?

The Paasche price index uses the consumption quantities in the year of interest as the weights.

As a general rule,one can use the normal distribution to approximate a binomial distribution whenever the sample size is at least 15.

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,what is the optimal alternative using EMV?

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 unweighted aggregate price index for the group of three energy items in year 5 using year 1 as the base year?

The Analysis of Means (ANOM)is more appropriate if you want to identify the group(s)that has(have)a higher or lower mean than the overall mean while the One-Way Analysis of Variance (One-way ANOVA)is more appropriate when you just want to see if the means of all the different groups are the same.

Introduction

Organizing and Visualizing Data

Numerical Descriptive Measures

Basic Probability

Discrete Probability Distributions

The Normal Distribution and Other Continuous Distributions

Sampling and Sampling Distributions

Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

Two-Sample Tests

Analysis of Variance

Chi-Square Tests and Nonparametric Tests

Simple Linear Regression

Introduction to Multiple Regression

Multiple Regression Model Building

Time-Series Forecasting

Statistical Applications in Quality Management

A Roadmap for Analyzing Data

Filters