Submitted By: Humayra Salauddin CWID: 50068944

BA 578-Live: Spring 2011: Final Exam: Total 400 points Starts at 3 pm on Tuesday, May 10th: to be emailed back by 10 pm the same day. Name:-

True/False (6 points each)
1. The sampling distribution of the sample mean is always normally distributed according to the Central Limit Theorem.(Ch7) True False 2. In performing a chi-square test of independence, as the difference between the respective observed and expected frequencies decrease, the probability of concluding that the row variable is independent of the column variable increases. (Ch12) True False 3. In a regression model, a value of the error term depends upon other values of the error term. (Ch13) True False 4. In a regression model, at any given combination of values of the independent variables, the population of potential error terms is assumed to have an Fdistribution. (Chs. 13 and 14) True False 5. In testing the difference between two means from two independent populations, the sample sizes do not have to be equal to be able to use the Z statistic. (Ch10) True False
1

(Ch6) True False 8. with n=150 and p = .1. if the level of significance is less than the p-value. For a hypothesis test about a population proportion or mean.(Ch9) 2 . For a continuous distribution. The correlation coefficient is the ratio of explained variation to total variation.(Ch6) True False 12. The error term in the regression model describes the effects of all factors other than the independent variables on y (response variable). An estimator is called consistent if its variance and standard deviations consistently remain the same regardless of changes in the sample size. Probability of (X less than or equal to 100) is greater than the probability of (X less than 100)(Ch6) True False 11. For a binomial probability experiment.Submitted By: Humayra Salauddin CWID: 50068944 6. (Ch13) True False 10. we can use the normal approximation to the binomial distribution even without continuity correction. (Ch13) True False 9.(Ch7) True False 7. the null hypothesis is rejected. We do not need to perform the continuity correction if the population is 20 times or more than the sample size.

2034] 0. To investigate the rate at which employees with cancer are fired or laid off. a confidence interval for a population mean based on a sample of n=100 will be narrower than a confidence interval for a population mean based on a sample of n=50.0078 E. [0.1361] 0. [0. if the value found for n is 79. Construct a 90% confidence interval for the true percentage of all cancer patients who are fired or laid off due to their illness. [0. (Ch 8) A.2. When the level of confidence and sample standard deviation remain the same. [0.1122] 3 . [0. Seven (7) were either fired or laid off due to their illness.0278 0.Submitted By: Humayra Salauddin CWID: 50068944 True False 13. (Ch8) True False Multiple Choices(10 points each) 16.0371 C.1400] 0. (Ch9) True False 15. we would choose to sample 79 observations. (Ch8) True False 14.0000 B. a telephone survey was taken of 100 cancer survivors who worked while undergoing treatment.1029] 0. When determining the sample size n.0039 D. The level of significance indicates the probability of rejecting a false null hypothesis.

1. sample standard deviation = 0.5 jet engine propulsion parts every hour.00 D.41 18.41 E. Calculate the appropriate test statistic to test the hypotheses. 8. (Ch 9) A. (Ch 9) A.5 ppm. Will be unaffected 19.00 D. Calculate the appropriate test statistic to test the hypotheses. the probability of concluding that the row variable is independent of the column variable: (Ch12) A. 10.20 C.50 4 . -0.00 E. 2.42 with a standard deviation of 0. as the difference between the respective observed and expected frequencies decrease. A manufacturing operation consists of a unique system that produces an average of 15.20 B. A random sample of 50 air specimens produced the following statistics: sample mean = 3. the system was monitored by observing the number of parts produced in each of sixteen randomly selected one-hour periods. After undergoing a complete overhaul. A manufacturer of a chemical used in glue. -0.Submitted By: Humayra Salauddin CWID: 50068944 17.0ppm. Increases C. -2. -8. May increase or decrease depending on the number of rows and columns D. Decreases B. attempting to control the amount of a hazardous chemical its workers are exposed to.00 C. 0.00 B. When we carry out a chi-square test of independence. -1. The mean is 15.1 ppm .16. has given instructions to halt production if the mean amount in the air exceeds 3.

64% E. 6.416 Z = 1. Probabilities for continuous variables can be approximated using discrete 5 .Submitted By: Humayra Salauddin CWID: 50068944 20. As with discrete random variables. D. 19 E.208 Z = 6.208 Z = -6.2? (Ch 6) A. 93. 20 22.68% C. 17 B. E. Historical data shows that on the average 18% of the company airplanes have arrived late.833 23. 16 D. 13. the probability distribution can be approximated by a smooth curve B. Z = 3. 4.32% D. 310 airplanes have arrived late. 3. 43. (Ch 14) A. A property of continuous distributions is that: (Ch6) A. 16 C. If we are conducting a hypothesis test of a single proportion to determine if the proportion of late arrivals has increased: What is the value of the calculated test statistic? (Cch 9) A. What is the probability that the MPG for a selected mid-size car would be: More than 33. 3.416 Z = -3. 3. 86. B.8. The MPG (Miles per Gallon) for a mid-size car is normally distributed with a mean of 32 and a standard deviation of . A major airline company is concerned that its proportion of late arrivals has substantially increased in the past month. A multiple regression analysis with 20 observations on each of three independent variables and the dependent variable would yield ______ and ______ degrees of freedom respectively for regression (explained) and error.36% 21. 3.240 airplanes.32% B. In a random sample of 1. C.

Submitted By: Humayra Salauddin CWID: 50068944 random variables C. 1. Calculate the appropriate test statistic to test the hypotheses. time to complete the exam was an average of 120 minutes. Suppose that the EPA makes 15 measurements in one area of the swamp.02 inches of the true mean bolt length? (Ch8) A. Historically. A state education agency designs and administers high school proficiency exams. (Ch 9) A.94 E. 3. The distribution is symmetric 24. 865 B. Based on a preliminary sample of 100 bolts.3 parts per billion (ppb) and a standard deviation of 5. 100 E.4 ppb.50 26. probabilities can be found using tables D. The EPA wants to test whether the data support the conclusion that the mean level is less than 15 ppb. 1000 25. In a manufacturing process.88 D. Unlike discrete random variables. the sample standard deviation is . yielding a mean level of total phosphorus of 12.94 C. 7. How many bolts should be sampled in order to make us 90% confident that the sample mean bolt length is within . we are interested in measuring the average length of a certain type of bolt. One water-quality parameter of concern is the total phosphorous level.50 B. 1493 D. -1.3 inches. The changing ecology of the swamps in Louisiana has been the subject of much environmental research. 609 C. -7. Unlike discrete random variables. Recently the format of the exam changed and the claim has been made that the time to complete the exam has changed. A sample of 50 new exam times yielded 6 . the probability that a continuous random variable equals a specific value is zero [P(X=x)=0] E.

902 to 3.10 29. 0 to infinity B. 2. -1 to 0 C. What is the 99% confidence interval for the true mean length of the bolt? (Ch 8) A. Pinternet±Pstore ” . The marketing research manager believes that the Internet sales are more than 10% higher than store sales. The null hypothesis would be: (Ch 10) A. 0 to 1 E. [115. 2. 2. Internet sales. The standard deviation is assumed to be 5 minutes. 2.228 to 3. Pinternet±Pstore > . Any real value 7 .61 120. -1 to 1 D. [117.098 B. The company offers two types of sales: 1.33] E. 2.10 E.3 inches.772 E.129 D. [115. Store sales.902 to 3.10 C. Pinternet±Pstore • . In a manufacturing process a random sample of 36 bolts manufactured has a mean length of 3 inches with a standard deviation of . A new company is in the process of evaluating its customer service.117 C.Submitted By: Humayra Salauddin CWID: 50068944 an average time of 118 minutes.884 to 3. [117.10 D. Pinternet±Pstore = . 2.39] C.18] 27. [116. (Ch 8) A.18 119.10 B.36 119. Pinternet±Pstore < .871 to 3.82] D. The range of feasible values for the multiple coefficient of determination is from: (Ch 14) A. Calculate a 99% confidence interval.09] B.82 120.67 120.098 28.

(Ch 12) Solution: 8 . we conclude that:(Chs.28 * 0. If we are testing the significance of the independent variable X1 and we reject the null hypothesis H0: b1 = 0. X1 is significantly related to Y B.192 The confidence interval is: 2. Between what two values (in ounces) symmetrically distributed around the population mean will 80% of the apples fall? (Ch8) Solution: The Z value for 80% is 1. The manager took a random sample of 100 absences and created the following table: Monday Tuesday Wednesday Thursday Friday 28 20 12 18 22 At a significance level of = . b1 is significantly related to the dependent variable Y Essay Type (16 points each) 31.28.Submitted By: Humayra Salauddin CWID: 50068944 30.25 ounces and a standard deviation of 0.25 0.192 = [2. X1 is an unimportant independent variable D. An apple juice producer buys all his apples from a conglomerate of apple growers in one northwest state.15 ounce.442] 32. 13 & 14) A. A human resource manager is interested in whether absences occur during the week with equal frequency.058 . The amount of juice squeezed from each of these apples is approximately normally distributed with a mean of 2. 2. X1 is not significantly related to Y C.05 test the Null that the probabilities of absences are the same for all five days. The margin of error is Z*STD = 1.15 = 0.

2 0. the Null Hypothesis of Independence is rejected at 5% level 33.547 SS Analysis of Variance Source DF 9 .48 as calculated Chi-square < the critical Chi-square . Consider the following partial computer output for a multiple regression model.2 0.06 2.2 6.404 Standard Deviation 6.081 -18.225 1.8 % of chi square 47. Predictor Constant X1 X2 Coefficient 41.Submitted By: Humayra Salauddin CWID: 50068944 Expected frequency = 100/5 = 20 df = number of variables -1 = 5-1 = 4 OBS 28 20 12 18 22 Total EXP 20 20 20 20 20 Fo-Fe 8 0 -8 -2 2 (Fo-Fe)^2/Fe 3.353 4.380 1.8 tcritical chi-square at df = 4 & 5% level = 9.94 2.06 0 47.2 0 3.94 100 The calculated chi-square = 6.

Ch 14) Solution: Y bar = 41.3163 * 1.055 MSE = SSE/(n-k-1) = 3585.11 = 3585.26) = 5.3877 ± 2/(29-1)][(29-1)/(29-2-1)] = (0.18.23 F critical (0.75 MSE = SSE/(n-k-1) = 3585.11 + 3585.75 Find Total Sum of Squares.11/2 = 1.91 R2 = SSR/SST = 2270.Submitted By: Humayra Salauddin CWID: 50068944 Regression Error 2 26 2270.11/5855. SSE.86 = 0.2270.53).01.75 / 26 = 137. Explained Variation.75 = 5855.75 / (29 .2.404 X2 n = 2 + 26 + 1 = 29 SST = SSR + SSE = 2270.3877 R2 adjusted = [R2 ± k/(n-1)][(n-1)/(n-k-1)] = [0.23) > F Critical (5.135. 10 .2 .11 3585. R-Squared.86 explained variation = SSR = 2270.3877 .0.081 X1 .53 since F (8. MSE. The coefficient of determination is highly significant and the model is useful.1) = 3585.913 = 8.225 + 1.0769 = 0.75 / 26 = 137.11 SSE = 5855.0714)(28/26) = 0.913 F = MSR / MSE = 1135.86 . H0 is rejected. and Test the overall usefulness of the model at 1% level of significance calculating the FStatistic.3406 MSR = SSR/k = 2270.055/137.

140.23 ± (188.57/7 = 3.75/1.Submitted By: Humayra Salauddin CWID: 50068944 34.9 * 21.08 Y average = Y/n =188.23 ™XY =590.75 11 . =8 X=M+6z X=69+(8*1.99 SSxx = X2 ± (( X)^2/n) = 68.57 ™X2 =68.9 ™Y2 =5.9/7 = 26.31 ™Y = 188. A data set with 7 observations yielded the following.31 ± (21.96) X=69+15.57^2/7) = 1.75 B1 = SSxy/ SSxx = 8. ™X =21.83 Calculate the Correlation coefficient. Use the simple linear regression model.84 = 4.68 35.84 SSyy = Y2 ± (( Y)^2/n) = 5140.(Ch 13) Solution: X average = X/n =21. A set of final examination grades in a calculus course was found to be normally distributed with a mean of 69 and a standard deviation of 8. Only 5% of the students taking the test scored higher than what grade? (Ch 6) Solution: µ=69 .83 .68=84.9^2/7) = 42.57 /7) = 8. and the Standard Error of Estimate.(188.63 SSxy = XY ± (( X Y/n)= 590. Coefficient of determination and SSE.

83 12 .75) = 1.8565 = 0.75/ 8.57 ™X2 =68.99-(4.75*8.9879 Coefficient of Determination R squared = SSR / SST = b1*SSxy /SSyy =4.0675 MSE = SSE/df = 1.75 / sqrt(1.84*42.Submitted By: Humayra Salauddin CWID: 50068944 B0 = 26.23 ™XY =590.9 ™Y2 =5. ™X =21. A data set with 7 observations yielded the following.0675/(7-2) = 0.2135 Standard Error of Estimate = sqrt(MSE) = 0.35 Correlation Coefficient r = SSxy / (sqrt(SSxxSSyy)) = 8.75/42.75 * 8. Use the simple linear regression model.31 ™Y = 188.9749 SSE = SST ± SSR = SSyy ± b1*SSxy = 42.75*3.08) = 12.63 ± (4.140.462 36.63) = 8.63 = 0.

0675 MSE = SSE/df = 1.75*8.84) = 0.35 + 4.462 Sb1 = Se/sqrt(SSxx) = 0.75/0.9 * 21.75*3.2135 Standard Error of Estimate Se = sqrt(MSE) = 0.(188.Submitted By: Humayra Salauddin CWID: 50068944 Write the Regression Equation showing Intercept and slope and test the significance of slope at 1% significance level.31 ± (21.84 SSyy = Y2 ± (( Y)^2/n) = 5140.63 SSxy = XY ± (( X Y/n)= 590.57/7 = 3.83 .032 as t b1 > Critical t .462/sqrt(1.340 t b1 = b1 / Sb1 = 4.0675/(7-2) = 0.75 B0 = 26.99-(4.23 ± (188.84 = 4.75 B1 = SSxy/ SSxx = 8.08) = 12.63 ± (4.35 Y = B0 + B1*X Y = 12.340 = 13.08 Y average = Y/n =188.95 the critical t value at df = 5 & 1% test = 4.75) = 1.9/7 = 26.57^2/7) = 1. the slope coefficient appears significant at 1% level 13 .75/1.99 SSxx = X2 ± (( X)^2/n) = 68.57 /7) = 8.9^2/7) = 42.75 * X SSE = SST ± SSR = SSyy ± b1*SSxy = 42.(Ch13) Solution: X average = X/n =21.

85 Z= 1.035/0.035) .05 the standard error S p1-p2 = square root (p0(1.05*0.645. Indicate which test you are performing. show the test statistic and the critical values and mention whether one-tailed or two-tailed.01 at = . n2 = 400.Test H0: 1± 2 ” .85 > 1. p2 = . HA: 1± 2 > .85 One-tailed critical value for the 5% is 1.D1] / [standard error S p1-p2] = (0.01 / 0. n1 = 200. 1020 of the sampled citizens were in favor of an increase in cigarette taxes. Solution: it is a one tailed (right) test P0 =(( 0. The opinion poll recently sampled 1500 voting age citizens.0189 = 1.08*200) + (0. A recent study conducted by the state government attempts to determine whether the voting public supports further increase in cigarette taxes.08-0.01.05*0.0075)=sqrt(0.05 where p1 = .p0)[(1/ n1) + (1/ n2)] = the standard error S p1-p2 = sqrt(0. The state government would like to decide if there is enough evidence to establish whether the proportion of citizens 14 .95*(1/200+1/400)) the standard error S p1-p2 = sqrt(0.00035625) the standard error S p1-p2 = 0.0.035.035*400 ))/ (200+400) = 16+14 / 600 = 30/600 = 0.Submitted By: Humayra Salauddin CWID: 50068944 37.0189 Z = [(p1-p2) .95*0.08.0189 = 0.645 the null hypothesis is rejected at 5% significance test level 38. as the calculated Z > Critical Z 1.

error p = square root (pi(1-pi)/n)= square root (0.66 Here p = 1020/1500 = 0.28 as Z > Zc in the 10% the null hypothesis is rejected at 10% significance level as Z < Zc in the 5% the null hypothesis is not rejected at 5% significance level 15 .66)/1500)= 0.0122 = 1. and n(1. So.normal approximation is appropriate The std.Submitted By: Humayra Salauddin CWID: 50068944 supporting an increase in cigarette taxes is significantly greater than . For 5% significance level Zc =1.02/0.0122 = 0.68-0. Pi(population proportion) = 0.66 H1 : p > 0.645 for 10% significance level Zc = 1. n*pi= 1500*(0.66(1-0. Indicate which test you are performing.66) = 495.0122 z = 0. the test statistic and the critical values and mention whether one-tailed or two-tailed.66/.pi) = 1500*(1-0.66) = 990.68.66 and n = 1500.635 it is a one-tailed test. show the hypotheses.66 at 5% and 10% significance levels. (Ch9) Solution: H0 : p <= 0.

s =1.25 z = (X average.645 for 1% and 5% significance level tests. Z critical for one-tailed test are 2.33.01? Indicate which test you are performing. =4.44 = 1/0. ” 26 H1 : mean avg. As z > z critical at 5% .Submitted By: Humayra Salauddin CWID: 50068944 39. Assume that the population from which the sample is selected is normally distributed. show the hypotheses.01 and .05 and 0. A random sample of 81 European professional soccer players has an average age of 27 years. its rejected at 5% significance level test.44 sample = (27 ± 26) / 0. What is the decision at =.(Ch9) Solution: H0 : mean avg.Historically the average age of European soccer players is reported as 26 years with a standard deviation of 4 years.8.(Ch 9) Solution: 16 .0)/ it is a one-tailed (right-tailed) test. show the test statistic and the critical values and mention whether one-tailed or two-tailed.44 = 2. But as z < z critical at 1% . n = 81 .2 and n =16 at = . X average = 27 sample = / square root (n) = 4 / 9 = 0. its not rejected under the 1% significance level test. Indicate which test you are performing. 40. the test statistic and the critical values and mention whether one-tailed or two-tailed. 1. We would like to decide if there is enough evidence to establish that average age of European soccer players has increased significantly. > 26 0 = 26 .Test H0: µ = 42 versus HA: µ  42 when = 42.05.

8-42)/0. So the calculated test statistic is less than the critical values tÖ > tc at 5% level of significance. we cannot reject the null hypothesis 17 . tÖ < tc at 1% level of significance.947 for 1% significance level.667 The df = n-1 = 16-1 = 15 The degree of freedom (df) = 16-1 = 15.3 = 2.2/4 = 0.Submitted By: Humayra Salauddin CWID: 50068944 x = s/sq rt(n) = 1.131 for 5% significance level and 2. So its rejected at 5% level of significance.3 tÖ = ( x -µ)/ x = (42. t-values are: 2.

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