Question 1

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 Paasche price index for the group of three energy items in year 5 for a family that consumed 13 units of electricity,26 units of natural gas and 235 units of fuel oil 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 2

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 power of the test is ________ if the population mean effective time is 8 minutes.

Accepted Answer

The answer of TABLE 9-3
A drug company is considering marketing...

Question 3

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 not have interference is

Accepted Answer

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

Question 4

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 optimal action using the return to risk ratio?

Accepted Answer

The answer of TABLE 19-5
The following payoff table shows profits...

Question 5

The consumer price index is a Paasche price index.

Accepted Answer

A) True 
 B)False

Question 6

Based on past experience,only 0.5% of the invoices of a company contain an error.Out of the 1,500 invoices that the company will issue,what is the approximate probability that less than 4 invoices will contain an error?

Accepted Answer

The answer of Based on past experience,only 0.5% of the...

Question 7

In portfolio analysis,the ________ is the reciprocal of the return to risk ratio.

Accepted Answer

The answer of In portfolio analysis,the ________ is the reciprocal...

Question 8

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 expected opportunity loss criterion is to study 16 hours per week on average for the exam.

Accepted Answer

A) True 
 B)False

Question 9

At Eastern University,60% of the students are from suburban areas,30% are from rural areas,and 10% are from urban areas.Of the students from the suburban areas,60% are nonbusiness majors.Of the students from the rural areas,70% are nonbusiness majors.Of the students from the urban areas,90% are nonbusiness majors.The probability that a randomly selected student is a business major is

Accepted Answer

A) 0.66 
B) 0.54 
C) 0.44 
D) 0.34

Question 10

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?

Accepted Answer

A) 10% 
B) 20% 
C) 50% 
D) 100%

Question 11

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 2009 using 2006 as the base year?

Accepted Answer

The answer of TABLE 16-2
Given below are the prices of...

Question 12

To test the effectiveness of a business school preparation course,8 students took a general business test before and after the course.There is evidence that the before and after exam scores are not normally distributed.Which of the following tests will be the most appropriate?

Accepted Answer

A) Pooled-variance t test 
B) Paired t test 
C) Wilcoxon rank sum test 
D) Wilcoxon signed rank test

Question 13

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,the null hypothesis for the Friedman rank test for the difference in the means should be rejected at a 0.01 level of significance.

Accepted Answer

A) True 
 B)False

Question 14

The minimum expected opportunity loss is also equal to

Accepted Answer

A) expected profit under certainty. 
B) expected value of perfect information. 
C) coefficient of variation. 
D) expected value under certainty minus the expected monetary value of the worst alternative.

Question 15

Which of the following is an assumption required by the Analysis of Proportions (ANOP)?

Accepted Answer

A) The variance of the groups is different. 
B) The observations from each of the groups are assumed to be approximately normally distributed. 
C) The shape of the distribution of the observations from the groups is different. 
D) The number of observations in each group has to be large.

Question 16

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,the Friedman rank test is valid only if there is no interaction between the 5 blocks and the 3 treatment levels.

Accepted Answer

A) True 
 B)False

Question 17

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 and assuming that the number of computers that requires repair on a given day follows a binomial distribution,compute the probability that there will be more than 25 computers that require repair on a given day using a normal approximation.

Accepted Answer

The answer of TABLE 6-1
A company has 125 personal computers.The...

Question 18

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 is the Laspeyres price index for the basket of four food items in 2008 that consisted of 50 bushels of wheat,30 bushels of corn,40 bushels of soybeans and 80 hundredweight of milk in 2006 using 2006 as the base year?

Accepted Answer

The answer of TABLE 16-2
Given below are the prices of...

Question 19

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 3 using year 1 as the base year?

Accepted Answer

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

Question 20

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 4 using year 1 as the base year?

Accepted Answer

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

Exam 19: Questions that Involve Online Topics

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 optimal action using the return to risk ratio?

The consumer price index is a Paasche price index.

Based on past experience,only 0.5% of the invoices of a company contain an error.Out of the 1,500 invoices that the company will issue,what is the approximate probability that less than 4 invoices will contain an error?

In portfolio analysis,the ________ is the reciprocal of the return to risk ratio.

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?

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 2009 using 2006 as the base year?

To test the effectiveness of a business school preparation course,8 students took a general business test before and after the course.There is evidence that the before and after exam scores are not normally distributed.Which of the following tests will be the most appropriate?

The minimum expected opportunity loss is also equal to

Which of the following is an assumption required by the Analysis of Proportions (ANOP) ?

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 3 using year 1 as the base year?

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 4 using year 1 as the base year?