Exam 28: Using Statistics for Decision Making

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Use the following to answer the question(s) below. As a result of the financial crisis in the fall of 2008, where the government intervened to help the economy, an investor was considering various strategies for her money and the estimated profits would depend on how successful the intervention would be in helping the economy. The estimated annual return for two different investment strategies are shown in the following table. -Using the maximax approach, the investor should

(Multiple Choice)

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Question 21

Use the following to answer the question(s) below. As a result of the financial crisis in the fall of 2008, where the government intervened to help the economy, an investor was considering various strategies for her money and the estimated profits would depend on how successful the intervention would be in helping the economy. The estimated annual return for two different investment strategies are shown in the following table. -If there is a 30% chance that the economy will decline, 50% that there will be no change and 20% chance that it will rebound, the expected value associated with the best investment strategy is

(Multiple Choice)

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Question 22

The standard deviation associated with the investment strategy of allocating 80% to stocks and 20% to bonds is

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Question 23

Use the following to answer the question(s) below. Sunny Side Condominiums recently purchased land outside of Toronto and is trying to decide the size complex it should build (large or small). The following payoff table (in thousands of dollars) considers three possible levels of demand. -Using the maximax approach, Sunny Side should

(Multiple Choice)

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Question 24

Use the following to answer the question below. The time series graph below shows monthly sales figures for a specialty gift item sold on the Home Shopping Network (HSN). -The dominant time series component in these data is

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Question 25

Machine oil is used by clothing manufacturers to lubricate and protect sewing machines. A company that produces machine oil must ensure that the viscosity of its product meets customer requirements. Consequently, the viscosity of every batch of oil produced is measured. Suppose that the process mean is 101 cP and the process standard deviation is 1.50 cP. What are the limits for a runs chart to be used to see that the process remains control?

(Multiple Choice)

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Question 26

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The standard deviation associated with the investment strategy of allocating 80% to stocks and 20% to bonds is

Use the following to answer the question below. The time series graph below shows monthly sales figures for a specialty gift item sold on the Home Shopping Network (HSN). -The dominant time series component in these data is

Data

Surveys and Sampling

Displaying and Describing Categorical Data

Displaying and Describing Quantitative Data

Scatterplots, Association, and Correlation

Introduction to Linear Regression

Randomness and Probability

Random Variables and Probability Distributions

Sampling Distributions

Confidence Intervals for Proportions

Testing Hypotheses About Proportions

Confidence Intervals and Hypothesis Tests for Means

Comparing Two Means

Design of Experiments and Analysis of Variance Anova

Inference for Counts: Chi-Square Tests

Nonparametric Methods

Inference for Regression

Understanding Regression Residuals

Multiple Regression

Building Multiple Regression Models

Time Series Analysis

Decision Making and Risk

Quality Control

Exploring and Collecting Data

Understanding Probability Distributions and Statistical Inference

Exploring Relationships Among Variables

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