Exam 19: Questions that Involve Online Topics

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 return-to-risk ratio criterion is to study 8 hours per week on average for the exam.

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 and has interference,what is the probability that it was with company A?

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 1 as the base year?

Look at the utility function graphed below and select the type of decision-maker that corresponds to the graph.

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.The opportunity loss for buying 200 dozen roses and selling 100 dozen roses at the full price 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 2010 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

The more expensive commodities are overly influential in an unweighted aggregate price index.

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 I error is ________ if the population mean effective time is 8 minutes.

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 0.2 and S2 is 0.8,then the expected monetary value of A1 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 0.10,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 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 2 using year 5 as the base year?

TABLE 19-2 The following payoff matrix is given in dollars. -Referring to Table 19-2,the EVPI is

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 marketing 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.

A researcher is curious about the effect of sleep on students' test performances.He chooses 60 students and gives each 2 tests: one given after 2 hours' sleep and one after 8 hours' sleep.The test the researcher should use would be a related samples test.

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 4 using year 1 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 EVPI for the payoff table is

TABLE 8-2 A wealthy real estate investor wants to decide whether it is a good investment to build a high-end shopping complex in a suburban county near Chicago.His main concern is the total market value of the 3,605 houses in the suburban county.He commissioned a statistical consulting group to take a sample of 200 houses and obtained a sample mean market price of $225,000 and a sample standard deviation of $38,700.The consulting group also found out that the mean differences between market prices and appraised prices was $125,000 with a standard deviation of $3,400.Also the proportion of houses in the sample that are appraised for higher than the market prices is 0.24. -Referring to Table 8-2,what will be the 90% confidence interval for the mean market price of the houses in the suburban county constructed by the consulting group?

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 19-6 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 expected monetary value of spending 8 hours per week on average studying for the exam?