Deck 30: Selected Topics in Decision Making

Question 1

Three brands of AAA batteries are compared to determine if differences in
Lifetime exist. Each brand is tested in four devices (TV remote, hand-held game,
Flashlight and digital camera). The experiment is run once for each combination of brand
And device. The twelve runs are ordered randomly. The time (in minutes) that each
Battery lasts under continuous usage is recorded. Which of the following statements is
True about this design?

A) This is a completely randomized design in one factor.
B) The devices serve as blocks to account for the variability between the lengths of time batteries last in different devices.
C) The interaction effect between brand of battery and type of device is significant.
D) This is an observational study.
E) This is a retrospective study.

Answer 1

B

Question 2

A major customer for a vendor of plastic containers requires that its containers
Have a volume of 10,000 cubic inches with a tolerance of 50 cubic inches. To ensure that
Its process is under control and meeting its major customer's specifications, the vendor
Uses control charting. Forty subgroups of five containers each were selected periodically
From the production process. The average of the means across all subgroups was found
To be 10,012 cubic inches and the average range was 48 cubic inches. What is the Cp
Index?

A) 4.845
B) 0.807
C) 1.615
D) 2.667
E) 0.203

Answer 2

B

Question 3

Suppose that six different e-readers were evaluated by two senior citizen groups
With respect to their suitability for use among the older segment of the population. The
Rankings from 1 (best) to 6 (worst) are shown below. Using the appropriate
Nonparametric method, the value of the calculated test statistic to determine if there is a
Difference in the rankings between the two magazines is $$\begin{array} { | c | c | c | } \hline \text { Model } & \text { Group 1 } & \text { Group 2 } \\\hline \text { Kindle 3 } & 1 & 1 \\\hline \text { Sony Reader } & 2 & 3 \\\hline \text { Kindle DX } & 3 & 2 \\\hline \text { Alex } & 4 & 6 \\\hline \text { Kobo eReader } & 5 & 4 \\\hline \text { COOL-ER } & 6 & 5 \\\hline\end{array}$$

A) 2.5
B) 3
C) 5.5
D) 7.5
E) 10

Answer 3

7.5

Question 4

Three wines (California, Australian and Italian) were tasted by judges as part of
An annual food and wine festival. The judges graded the wines on overall quality (A =
Excellent to F = poor). Each wine was graded by a different group of judges (the data are
Shown below). Are there differences in the perceived quality among the three wines?
The appropriate nonparametric procedure to use is the $$\begin{array} { | l | l | l | } \hline{ \text { California } } &{ \text { Australian } } & { \text { Italian } } \\\hline \mathrm { B } + & \mathrm { B } + & \mathrm { B } + \\\hline \mathrm { B } - & \mathrm { A } - & \mathrm { A } - \\\hline \mathrm { A } - & \mathrm { B } + & \mathrm { A } - \\\hline \mathrm { C } - & \mathrm { C } & \mathrm { B } + \\\hline \mathrm { B } - & \mathrm { A } - & \mathrm { A } \\\hline\end{array}$$

A) Wilcoxon Signed-Rank test.
B) Wilcoxon Rank Sum test.
C) Kruskal Wallis test.
D) Spearman's rho.
E) Mann-Whitney test.

Question 5

Sunny Side Condominiums recently purchased land outside of Phoenix 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

A) Build a small complex
B) Build a large complex
C) Build a large complex with high demand
D) Build a small complex with low demand
E) Do not build any size complex

Question 6

Suppose that six different e-readers were evaluated by two senior citizen
Consumer groups with respect to their suitability for use among the older segment of the
Population. The rankings from 1 (best) to 6 (worst) are shown below. What
Nonparametric method should be used to determine the association between these
Rankings? $$\begin{array} { | c | c | c | } \hline \text { Model } & \text { Group 1 } & \text { Group 2 } \\\hline \text { Kindle 3 } & 1 & 1 \\\hline \text { Sony Reader } & 2 & 3 \\\hline \text { Kindle DX } & 3 & 2 \\\hline \text { Alex } & 4 & 6 \\\hline \text { Kobo eReader } & 5 & 4 \\\hline \text { COOL-ER } & 6 & 5 \\\hline\end{array}$$

A) Spearman's rho
B) Pearson's rho
C) Wilcoxon Signed-Rank test
D) Mann-Whitney test
E) Wilcoxon's rho

Question 7

A major customer for a vendor of plastic containers requires that its containers
Have a volume of 10,000 cubic inches with a tolerance of 50 cubic inches. To ensure that
Its process is under control and meeting its major customer's specifications, the vendor
Uses control charting. Forty subgroups of five containers each were selected periodically
From the production process. The average of the means across all subgroups was found
To be 10,012 cubic inches and the average range was 48 cubic inches. The lower and
Upper control limits for the R chart are

A) 0 and 111.65 cubic inches
B) 9984.30 and 10,039.70 cubic inches
C) 9910.53 and 10,113.47 cubic inches
D) 0 and 101.47 cubic inches
E) 0 to 98 cubic inches

Question 8

Based on the following plot of residuals, what can you say about the conditions
For ANOVA?

A) The equal variance assumption is satisfied.
B) The linearity assumption is satisfied.
C) The nearly normal assumption is satisfied.
D) The nearly normal assumption is not satisfied.
E) The additive assumption is satisfied.

Question 9

In an effort to reduce the number of data entry errors on its order forms, a
Company would like to initiate control charting. They begin by counting and recording
The number of data entry errors made on the first order form completed each day for a
Month. An appropriate control chart to use for these data is the

A) p chart
B) c chart
C) x-bar and r chart
D) Pareto chart
E) ARL chart

Question 10

ASQ (American Society for Quality) routinely conducts a "salary survey" of
Quality professionals. Suppose it is interested in determining if the industries within
Which quality professionals work affect their salaries. They have salary data from
Random samples taken in three different industries: (1 = Consumer Goods, 2 = Financial,
3 = Health Care). Based on the partial ANOVA results shown below, the F statistic value
Is
One-way ANOVA: Salary versus Industry $$\begin{array} { l r r r r r } \text { Source } & \text { DF } & \text { SS } & \text { MS } & \text { F } & \text { P } \\\text { Industry } & 2 & 23343 & 11671 & & \\\text { Error } & 27 & 16589 & 614 & \\\text { Total } & 29 & 39932 & &\end{array}$$

A) F = 19.01
B) F = 1.407
C) F = 48.7
D) F = 0.499
E) None of the above

Question 11

Suppose that six different e-readers were evaluated by two senior citizen groups
With respect to their suitability for use among the older segment of the population. The
Rankings from 1 (best) to 6 (worst) are shown below. To determine if there is a difference
In the rankings between the two magazines, the appropriate nonparametric method is the $$\begin{array} { | c | c | c | } \hline \text { Model } & \text { Group 1 } & \text { Group 2 } \\\hline \text { Kindle 3 } & 1 & 1 \\\hline \text { Sony Reader } & 2 & 3 \\\hline \text { Kindle DX } & 3 & 2 \\\hline \text { Alex } & 4 & 6 \\\hline \text { Kobo eReader } & 5 & 4 \\\hline \text { COOL-ER } & 6 & 5 \\\hline\end{array}$$

A) Wilcoxon Rank-Sum test.
B) Wilcoxon Signed-Rank test.
C) Spearman's rho.
D) Kruskal Wallis test.
E) Kendall's tau.

Question 12

A major customer for a vendor of plastic containers requires that its containers
Have a volume of 10,000 cubic inches with a tolerance of 50 cubic inches. To ensure that
Its process is under control and meeting its major customer's specifications, the vendor
Uses control charting. Forty subgroups of five containers each were selected periodically
From the production process. The average of the means across all subgroups was found
To be 10,012 cubic inches and the average range was 48 cubic inches. The lower and
Upper control limits for the X-bar chart are

A) 0 and 111.65 cubic inches
B) 9984.30 and 10,039.70 cubic inches
C) 9910.53 and 10,113.47 cubic inches
D) 0 and 101.47 cubic inches
E) 9950 and 10,050 cubic inches

Question 13

A major customer for a vendor of plastic containers requires that its containers
Have a volume of 10,000 cubic inches with a tolerance of 50 cubic inches. To ensure that
Its process is under control and meeting its major customer's specifications, the vendor
Uses control charting. Forty subgroups of five containers each were selected periodically
From the production process. The average of the means across all subgroups was found
To be 10,012 cubic inches and the average range was 48 cubic inches. The estimated
Process standard deviation ( $( \hat { \sigma } )$
) is

A) 48 cubic inches
B) 22.69 cubic inches
C) 20.64 cubic inches
D) 50 inches
E) 32.99 cubic inches

Question 14

Sunny Side Condominiums recently purchased land outside of Phoenix 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. If there is a
45% chance that the demand level will be low, 30% that it will be medium and 25%
Chance that it will be high, what is the expected value of perfect information?

A) $326.25
B) $310
C) $535
D) $208.75
E) $225

Question 15

Consider a process that manufactures copper wire. To initiate control charting,
Twenty-five samples of size five are periodically taken and the resistance (in ohms) of
Each wire is measured. An appropriate control chart to use for these data is the

A) p chart
B) c chart
C) x-bar and r chart
D) Pareto chart
E) ARL chart

Question 16

The nonparametric alternative to the two sample t-test is the

A) Kruskal-Wallis test.
B) Kendall's tau.
C) Wilcoxon Rank Sum test.
D) Friedman test.
E) Wilcoxon Signed Rank test.

Question 17

Three wines (California, Australian and Italian) were tasted by judges as part of
An annual food and wine festival. The judges graded the wines on overall quality (A =
Excellent to F = poor). Each wine was graded by a different group of judges (the data are
Shown below). Are there differences in the perceived quality among the three wines?
The calculated value of the statistic for the appropriate nonparametric test is $$\begin{array} { | l | l | l | } \hline{ \text { California } } &{ \text { Australian } } & { \text { Italian } } \\\hline \text { A- } & \mathrm { A } & \mathrm { A } \\\hline \text { B- } & \mathrm { A } - & \mathrm { A } - \\\hline \text { A- } & \mathrm { B } + & \mathrm { A } - \\\hline \text { C } & \mathrm { A } & \mathrm { B } + \\\hline \text { B } & \mathrm { A } - & \mathrm { A } \\\hline\end{array}$$

A) 1.25
B) 10.78
C) 9.45
D) 4.34
E) 3.45

Question 18

Three brands of AAA batteries are compared to determine if differences in
Lifetime exist. Each brand is tested in four devices (TV remote, hand-held game,
Flashlight and digital camera). The experiment is run once for each combination of brand
And device. The twelve runs are ordered randomly. The time (in minutes) that each
Battery lasts under continuous usage is recorded. Based on the partial ANOVA results
Shown below, the F-statistic for testing whether the three brands of AAA batteries have
Equal mean lifetimes is
Two-way ANOVA: Time (min) versus Brand, Device $$\begin{array} { l r r r r r } \text { Source } & \text { DF } & \text { SS } & \text { MS } & \text { F } & \text { P } \\\text { Brand } & 2 & 2974 & 1487 & & \\\text { Device } & 3 & 2496533 & 832178 & & \\\text { Error } & 6 & 3017 & 503 & \\\text { Total } & 11 & 2502524 & & &\end{array}$$

A) 2.96
B) 1654.89
C) 0.98
D) 827.49
E) 54.67

Question 19

Sunny Side Condominiums recently purchased land outside of Phoenix 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. If there is a
45% chance that the demand level will be low, 30% that it will be medium and 25%
Chance that it will be high, the expected value (in thousands of dollars) associated with
The best action is

A) $326.25
B) $310
C) $535
D) $208.75
E) $225

Question 20

Three brands of AAA batteries are compared to determine if differences in
Lifetime exist. Each brand is tested in four devices (TV remote, hand-held game,
Flashlight and digital camera). The experiment is run once for each combination of brand
And device. The twelve runs are ordered randomly. The time (in minutes) that each
Battery lasts under continuous usage is recorded. Suppose the P-value associated with the
F-statistic for testing whether brand affects battery lifetime is 0.128. Based on this we
Can conclude that

A) we should reject the null hypothesis.
B) there is a difference in the mean lifetimes among the different brands.
C) there is a difference in the mean lifetimes among the different devices.
D) there is no significant interaction effect.
E) there is no difference in the mean lifetimes among the different brands.

Question 21

Sunny Side Condominiums recently purchased land outside of Phoenix 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. If there is a
45% chance that the demand level will be low, 30% that it will be medium and 25%
Chance that it will be high. Moreover, the standard deviations (in thousands of dollars)
For building a small and large complex are 535 and 976, respectively. Based on the
Resulting coefficients of variation (CV), which of the following statements would be true?

A) The CV of building a large complex is less than that of building a small complex.
B) The CV of building a small complex is less than that of building a large complex.
C) The risk averse action would be to build a large complex.
D) Both A and C
E) Both B and C

Question 22

Disparate databases that include demographic and transactional variables merged
Together are referred to as

A) Data storage bins
B) Data mines
C) OLAP
D) CRISP
E) Data warehouses