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1. What is the primary...

1. What is the primary reason for applying a finite population correction coefficient?

A. If you don't apply the correction coefficient, your confidence intervals will be too narrow, and thus overconfident.

B. If you don't apply the correction coefficient, your confidence intervals will be too broad, and thus less useful in decision

making.

C. When the sample is a very small portion of the population, the correction coefficient is required.

D. If you don't apply the correction coefficient, you won't have values to plug in for all the variables in the confidence interval

formula.

2. When the confidence coefficient is large, which of the following is true?

A. Its value is close to 1.0, but not larger than 1.0.

B. The confidence interval is narrow.

C. It's more likely that the test will lead you to reject the null hypothesis.

D. Its value is 1.0 or larger.

3. A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said that the average price-earnings ratio was 20 for the many stocks that his firm had traded, but the portfolio manager felt that the figure was too high. He randomly selected a sample of 50 price-earnings ratios and found a mean of 18.17 and a standard deviation of 4.60. Assume that the population is normally distributed, and test at the 0.01 level of significance. Which of the following is the correct decision rule for the manager to use in this situation?

A. If t > 2.68 or if t 2.33, reject H0.

D. Because 2.81 is greater than 2.33, reject H0. At the 0.01 level, the sample data suggest that the average price-earnings ratio for the stocks is less than 20.

4. If a teacher wants to test her belief that more than five students in college classes typically receive A as a grade, she'll perform

A. one-tail testing of a mean.

B. one-tail testing of a proportion.

C. two-tail testing of a mean.

D. two-tail testing of a proportion.

5. In a simple random sample from a population of several hundred that's approximately normally distributed, the following data values were collected. 68, 79, 70, 98, 74, 79, 50, 102, 92, 96 Based on this information, the confidence level would be 90% that the population mean is somewhere between

A. 71.36 and 90.24.

B. 69.15 and 92.45.

C. 65.33 and 95.33.

D. 73.36 and 88.24.

6. A human resources manager wants to determine a confidence interval estimate for the mean test score for the next office-skills test to be given to a group of job applicants. In the past, the test scores have been normally distributed with a mean of 74.2 and a standard deviation of 30.9. Determine a 95% confidence interval estimate if there are 30 applicants in the group.

A. 63.14 to 85.26

B. 64.92 to 83.48

C. 68.72 to 79.68

D. 13.64 to 134.76

7. For 1996, the U.S. Department of Agriculture estimated that American consumers would have eaten, on average, 2.6 pounds of cottage cheese throughout the course of that year. Based on a longitudinal study of 98 randomly selected people conducted during 1996, the National Center for Cottage Cheese Studies found an average cottage cheese consumption of 2.75 pounds and a standard deviation of s = 14 ounces. Given this information, which of the following statements would be correct concerning a two-tail test at the 0.05 level of significance?

A. We can conclude that the average cottage cheese consumption in America is at least 0.705 pound more or less than 2.75 pounds per person per year.

B. We can conclude that the average cottage cheese consumption in America isn't 2.6 pounds per person per year.

C. We can conclude that the average cottage cheese consumption in America is actually 2.75 pounds per person per year.

D. We can conclude that we can't reject the claim that the average cottage cheese consumption in America is 2.6 pounds per person per year.

8. A random sample of 10 employees is selected from a large firm. For the 10 employees, the number of days each was absent during the past month was found to be 0, 2, 4, 2, 5, 1, 7, 3, 2, and 4. Of the following values, which would you use as the point estimate for the average number of days absent for all the firm's employees?

A. 2.5

B. 4

C. 30

D. 3

9. A federal auditor for nationally chartered banks, from a random sample of 100 accounts, found that the

average demand deposit balance at the First National Bank of Arkansas was $549.82. If the auditor needed a point estimate for the population mean for all accounts at this bank, what should he use?

A. The auditor should survey the total of all accounts and determine the mean.

B. The average of $54.98 for this sample

C. There's no acceptable value available.

D. The average of $549.82 for this sample

10. Because of the popularity of movies as an entertainment medium for adolescents, an entrepreneur plans to do a national study of the average cost of a movie ticket. If you assume that s = $0.50, what sample size would the entrepreneur have to take to be 95% confident that the estimate was within $0.25 of the true mean ticket prices?

A. 4

B. 15

C. 8

D. 16

11. What is the purpose of sampling?

A. To create a point estimator of the population mean or proportion

B. To estimate a target parameter of the population

C. To verify that the population is approximately normally distributed

D. To achieve a more accurate result than can be achieved by surveying the entire population

12. If the level of significance (α) is 0.005 in a two-tail test, how large is the nonrejection region under the curve of the t distribution?

A. 0.005

B. 0.050

C. 0.9975

D. 0.995

13. A researcher wants to carry out a hypothesis test involving the mean for a sample of n = 20. While the true value of the population standard deviation is unknown, the researcher is reasonably sure that the population is normally distributed. Given this information, which of the following statements would be correct?

A. The t-test should be used because the sample size is small.

B. The researcher should use the z-test because the sample size is less than 30.

C. The t-test should be used because α and μ are unknown.

D. The researcher should use the z-test because the population is assumed to be normally distributed.

14. H0 is p = 0.45 and H1 is p ≠ 0.45. What type of test will be performed?

A. Two-tail testing of a mean

B. Two-tail testing of a proportion

C. One-tail testing of a proportion

D. One-tail testing of a mean

15. A mortgage broker is offering home mortgages at a rate of 9.5%, but the broker is fearful that this value is higher than many others are charging. A sample of 40 mortgages filed in the county courthouse shows an average of 9.25% with a standard deviation of 8.61%. Does this sample indicate a smaller average? Use α = 0.05 and assume a normally distributed population.

A. Yes, because the test statistic is greater than –1.645.

B. No, because the test statistic falls in the acceptance region.

C. Yes, because the sample mean of 9.25 is below 9.5.

D. No, because the test statistic is –1.85 and falls in the rejection region.

16. In sampling without replacement from a population of 900, it's found that the standard error of the mean, , is only two-thirds as large as it would have been if the population were infinite in size. What is the approximate sample size?

A. 400

B. 200

C. 500

D. 600

17. What sample size is required from a very large population to estimate a population proportion within 0.05 with 95% confidence? Don't assume any particular value for p.

A. 385

B. 767

C. 271

D. 38

18. A woman and her son are debating about the average length of a preacher's sermons on Sunday morning. Despite the mother's arguments, the son thinks that the sermons are more than twenty minutes. For one year, he has randomly selected 12 Sundays and found an average time of 26.42 minutes with a standard deviation of 6.69 minutes. Assuming that the population is normally distributed and using a 0.05 level of significance, he wishes to determine whether he is correct in thinking that the average length of sermons is more than 20 minutes. What is the test statistic?

A. –3.32

B. 0.95

C. 3.32

D. 6.69

19. Determine which of the following four population size and sample size combinations would not require the use of the finite population correction factor in calculating the standard error.

A. N = 15,000; n = 1,000

B. N = 150; n = 25

C. N = 1500; n = 300

D. N = 2500; n = 75

20. Which of the following statements about p-value testing is true?

A. The p represents sample proportion.

B. P-value testing uses a predetermined level of significance.

End of exam

C. P-value testing applies only to one-tail tests.

D. The p-value is the lowest significance level at which you should reject H0.

A. If you don't apply the correction coefficient, your confidence intervals will be too narrow, and thus overconfident.

B. If you don't apply the correction coefficient, your confidence intervals will be too broad, and thus less useful in decision

making.

C. When the sample is a very small portion of the population, the correction coefficient is required.

D. If you don't apply the correction coefficient, you won't have values to plug in for all the variables in the confidence interval

formula.

2. When the confidence coefficient is large, which of the following is true?

A. Its value is close to 1.0, but not larger than 1.0.

B. The confidence interval is narrow.

C. It's more likely that the test will lead you to reject the null hypothesis.

D. Its value is 1.0 or larger.

3. A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said that the average price-earnings ratio was 20 for the many stocks that his firm had traded, but the portfolio manager felt that the figure was too high. He randomly selected a sample of 50 price-earnings ratios and found a mean of 18.17 and a standard deviation of 4.60. Assume that the population is normally distributed, and test at the 0.01 level of significance. Which of the following is the correct decision rule for the manager to use in this situation?

A. If t > 2.68 or if t 2.33, reject H0.

D. Because 2.81 is greater than 2.33, reject H0. At the 0.01 level, the sample data suggest that the average price-earnings ratio for the stocks is less than 20.

4. If a teacher wants to test her belief that more than five students in college classes typically receive A as a grade, she'll perform

A. one-tail testing of a mean.

B. one-tail testing of a proportion.

C. two-tail testing of a mean.

D. two-tail testing of a proportion.

5. In a simple random sample from a population of several hundred that's approximately normally distributed, the following data values were collected. 68, 79, 70, 98, 74, 79, 50, 102, 92, 96 Based on this information, the confidence level would be 90% that the population mean is somewhere between

A. 71.36 and 90.24.

B. 69.15 and 92.45.

C. 65.33 and 95.33.

D. 73.36 and 88.24.

6. A human resources manager wants to determine a confidence interval estimate for the mean test score for the next office-skills test to be given to a group of job applicants. In the past, the test scores have been normally distributed with a mean of 74.2 and a standard deviation of 30.9. Determine a 95% confidence interval estimate if there are 30 applicants in the group.

A. 63.14 to 85.26

B. 64.92 to 83.48

C. 68.72 to 79.68

D. 13.64 to 134.76

7. For 1996, the U.S. Department of Agriculture estimated that American consumers would have eaten, on average, 2.6 pounds of cottage cheese throughout the course of that year. Based on a longitudinal study of 98 randomly selected people conducted during 1996, the National Center for Cottage Cheese Studies found an average cottage cheese consumption of 2.75 pounds and a standard deviation of s = 14 ounces. Given this information, which of the following statements would be correct concerning a two-tail test at the 0.05 level of significance?

A. We can conclude that the average cottage cheese consumption in America is at least 0.705 pound more or less than 2.75 pounds per person per year.

B. We can conclude that the average cottage cheese consumption in America isn't 2.6 pounds per person per year.

C. We can conclude that the average cottage cheese consumption in America is actually 2.75 pounds per person per year.

D. We can conclude that we can't reject the claim that the average cottage cheese consumption in America is 2.6 pounds per person per year.

8. A random sample of 10 employees is selected from a large firm. For the 10 employees, the number of days each was absent during the past month was found to be 0, 2, 4, 2, 5, 1, 7, 3, 2, and 4. Of the following values, which would you use as the point estimate for the average number of days absent for all the firm's employees?

A. 2.5

B. 4

C. 30

D. 3

9. A federal auditor for nationally chartered banks, from a random sample of 100 accounts, found that the

average demand deposit balance at the First National Bank of Arkansas was $549.82. If the auditor needed a point estimate for the population mean for all accounts at this bank, what should he use?

A. The auditor should survey the total of all accounts and determine the mean.

B. The average of $54.98 for this sample

C. There's no acceptable value available.

D. The average of $549.82 for this sample

10. Because of the popularity of movies as an entertainment medium for adolescents, an entrepreneur plans to do a national study of the average cost of a movie ticket. If you assume that s = $0.50, what sample size would the entrepreneur have to take to be 95% confident that the estimate was within $0.25 of the true mean ticket prices?

A. 4

B. 15

C. 8

D. 16

11. What is the purpose of sampling?

A. To create a point estimator of the population mean or proportion

B. To estimate a target parameter of the population

C. To verify that the population is approximately normally distributed

D. To achieve a more accurate result than can be achieved by surveying the entire population

12. If the level of significance (α) is 0.005 in a two-tail test, how large is the nonrejection region under the curve of the t distribution?

A. 0.005

B. 0.050

C. 0.9975

D. 0.995

13. A researcher wants to carry out a hypothesis test involving the mean for a sample of n = 20. While the true value of the population standard deviation is unknown, the researcher is reasonably sure that the population is normally distributed. Given this information, which of the following statements would be correct?

A. The t-test should be used because the sample size is small.

B. The researcher should use the z-test because the sample size is less than 30.

C. The t-test should be used because α and μ are unknown.

D. The researcher should use the z-test because the population is assumed to be normally distributed.

14. H0 is p = 0.45 and H1 is p ≠ 0.45. What type of test will be performed?

A. Two-tail testing of a mean

B. Two-tail testing of a proportion

C. One-tail testing of a proportion

D. One-tail testing of a mean

15. A mortgage broker is offering home mortgages at a rate of 9.5%, but the broker is fearful that this value is higher than many others are charging. A sample of 40 mortgages filed in the county courthouse shows an average of 9.25% with a standard deviation of 8.61%. Does this sample indicate a smaller average? Use α = 0.05 and assume a normally distributed population.

A. Yes, because the test statistic is greater than –1.645.

B. No, because the test statistic falls in the acceptance region.

C. Yes, because the sample mean of 9.25 is below 9.5.

D. No, because the test statistic is –1.85 and falls in the rejection region.

16. In sampling without replacement from a population of 900, it's found that the standard error of the mean, , is only two-thirds as large as it would have been if the population were infinite in size. What is the approximate sample size?

A. 400

B. 200

C. 500

D. 600

17. What sample size is required from a very large population to estimate a population proportion within 0.05 with 95% confidence? Don't assume any particular value for p.

A. 385

B. 767

C. 271

D. 38

18. A woman and her son are debating about the average length of a preacher's sermons on Sunday morning. Despite the mother's arguments, the son thinks that the sermons are more than twenty minutes. For one year, he has randomly selected 12 Sundays and found an average time of 26.42 minutes with a standard deviation of 6.69 minutes. Assuming that the population is normally distributed and using a 0.05 level of significance, he wishes to determine whether he is correct in thinking that the average length of sermons is more than 20 minutes. What is the test statistic?

A. –3.32

B. 0.95

C. 3.32

D. 6.69

19. Determine which of the following four population size and sample size combinations would not require the use of the finite population correction factor in calculating the standard error.

A. N = 15,000; n = 1,000

B. N = 150; n = 25

C. N = 1500; n = 300

D. N = 2500; n = 75

20. Which of the following statements about p-value testing is true?

A. The p represents sample proportion.

B. P-value testing uses a predetermined level of significance.

End of exam

C. P-value testing applies only to one-tail tests.

D. The p-value is the lowest significance level at which you should reject H0.

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