Question 1

Exhibit 10-1
In an audit of the outstanding bills in a large multi-national firm, the auditor selected a random sample of 40 of these bills and recorded the dollar value of each outstanding bill.The data were analyzed using Excel (see below).
 
-Refer to Exhibit 10-1.A 99% confidence interval for the population mean dollar value of the outstanding bills is equal to _____.

Accepted Answer

A)  (114.4, 189.0) 
B)  (112.9, 190.6) 
C)  (110.5, 192.9) 
D)  (108.4, 195.1)

Question 2

Exhibit 10-2
A manager of a hotel chain is interested in investigating whether there is a relationship between staff labor hours and bed-day occupancy incurred by a hotel in a month.The manager randomly selected 17 of the hotels in the chain across the country and recorded, for each of the hotels, the staff's total labor hours for the month of July and the number of bed-days of occupancy for that month. (A hotel has occupied one "bed-day" if one bed is occupied (rented)for an entire day.)The manager is interested in seeing if the labor hours incurred can be predicted from the number of bed-days of occupancy on a monthly basis.
The sample data were analyzed using Excel.Shown below is part of the regression analysis output.
 
-Refer to Exhibit 10-2.According to this regression analysis,if the number of bed-days increases by 200,what is the predicted change in the number of labor hours required for a given month?

Accepted Answer

A) a decrease of 5621.2 
B) a decrease of 17.6 
C) an increase of 223.5 
D) an increase of 882.2

Question 3

In simple regression,a function describes how the dependent variable is a function of the independent variable.

Accepted Answer

A) True 
 B)False

Question 4

Characteristics of the population are called:

Accepted Answer

A) point estimates. 
B) random variables. 
C) statistics. 
D) parameters.

Question 5

Which of the following constitutes an approach to reducing sampling error?

Accepted Answer

A) Cross-checking research designs with knowledgeable analysts 
B) Questioning the assumption that tomorrow's and today's population are comparable 
C) Taking a larger sample from the population 
D) Reducing conditions that contribute to dissimilar population segments

Question 6

Explain the three fundamental principles of statistical thinking.Use an example from either your personal life or a work process to illustrate.

Accepted Answer

The answer of Explain the three fundamental principles of statistical...

Question 7

In Deming's view,variation is the root cause of poor quality.Explain the difference between common and special cause variation.Discuss Deming's recommendations to eliminate variation.

Accepted Answer

The answer of In Deming's view,variation is the root cause...

Question 8

If random samples are not used,_____ may be introduced.

Accepted Answer

A) control 
B) bias 
C) projection 
D) probability

Question 9

Exhibit 10-2
A manager of a hotel chain is interested in investigating whether there is a relationship between staff labor hours and bed-day occupancy incurred by a hotel in a month.The manager randomly selected 17 of the hotels in the chain across the country and recorded, for each of the hotels, the staff's total labor hours for the month of July and the number of bed-days of occupancy for that month. (A hotel has occupied one "bed-day" if one bed is occupied (rented)for an entire day.)The manager is interested in seeing if the labor hours incurred can be predicted from the number of bed-days of occupancy on a monthly basis.
The sample data were analyzed using Excel.Shown below is part of the regression analysis output.
 
-Refer to Exhibit 10-2.For the estimated regression equation y = a + bx,what is the value of b?

Accepted Answer

A) -28.106 
B) 0.049 
C) 97.2 
D) 1.117

Question 10

A subset of items selected from a population is called a:

Accepted Answer

A) sample. 
B) statistic. 
C) census. 
D) parameter.

Question 11

In a designed experiment,a _____ measures the difference that a factor has on the response.

Accepted Answer

A) main effect 
B) factorial 
C) control treatment 
D) simple response

Question 12

A sample from a large finished goods inventory is needed to determine the proportion of non-conforming products.Historically,about a 0.8 percent level of nonconformance has been observed.A 95 percent confidence level with an allowable error of 0.3 percent is desired.What is the required sample size?

Accepted Answer

The answer of A sample from a large finished goods...

Question 13

The component of statistical methodology that includes the collection,organization,and summarization of data is called:

Accepted Answer

A) descriptive statistics. 
B) analytical statistics. 
C) inferential statistics. 
D) predictive statistics.

Question 14

Which of the following is Rule 1 in Deming's Funnel Experiment?

Accepted Answer

A) Leave the funnel alone. 
B) Place the funnel over the spot where the marble last comes to rest. 
C) Move the funnel an equal distance in the opposite direction from its current position. 
D) Set the funnel an equal distance in the opposite direction of the error from the target.

Question 15

The following sample data were collected: 12.0,18.3,29.6,14.3 and 27.8.The sample standard deviation for this data is equal to _____.

Accepted Answer

A) 2.18 
B) 7.093 
C) 20.4 
D) 23.9

Question 16

In a simple designed experiment,the different levels of each factor are commonly called _____.

Accepted Answer

A) benchmarks 
B) factor-levels 
C) treatments 
D) confidence levels

Question 17

A census is a representative sample of the population.

Accepted Answer