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FINAL EXAMINATION GTP 8TH INTAKE

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Duration: 180 minutes
18:15 21:15 PM

STATISTICS FOR BUSINESS


Lecturer

Student ID:

Date:
April 12 th, 2005

Assoc Prof. Ho Thanh Phong

Name:

INSTRUCTIONS
1.
This is an open book examination.
2.
Calculator is allowed.
3.
Discussion and material transfer are strictly prohibited.

PART I : (Please answer on the QUESTION SHEET)


1. The average price of product XX is 120 USD, the variance is unknown. Taking a sample of
100 products, sample variance is 30. What is the probability for sample mean X is anywhere
between 118 USD to 125 USD ?
a. 0.812

d. 0.712

b. 0.701

e. Other value: 1

c. 0.679
2. A random sample of size 121 is taken from a population; the sample standard deviation is 22.
The upper bound of 95% Confidence interval is 50, what is the value of sample mean?
a. 46.08

c. 47.5

b. 46.71

d. Other value: __________________

3. A random sample of 100 products yields 10 defectives. Give 99% Confidence interval for the
proportion of defective products?
a. (0.03, 0.17)

d. (0.05, 0.15)

b. (0.046, 0.152)

e. Other value: __________________

c. (0. 023, 0. 177)


This sample is used for the next 3 questions
35, 34, 39, 38, 42, 44, 45, 36, 37, 38, 40, 46, 45, 49, 50, 32
Assume that population is normally distributed
4.

The 95% confidence interval about the population mean is


a.

[36.636, 44.614]

b.

[37.740, 43.510]

c.

[38.252, 42.998]

d.

Other:_____________________(specified)

5.

6.

7.

Given that the confidence interval about the population mean is [34.217, 47.033], the
confidence level is
a.

99%

b.

95%

c.

80%

d.

Other:_____________________(specified)

Given that the population standard deviation is 20. The 90% confidence interval about the
population mean is
a.

[27.746, 53.504]

b.

[30.825, 50.425]

c.

[32.401,48.849]

d.

Other:_____________________(specified)

A production manager is believed that the height of the can less than 15cm. He collects a
sample of 25 cans for his proving. The correct hypothesis test will be:
a.

Two tailed test

b.

Left tailed test

c.

Right tailed test

d.

None of above

Using the following data for the next 2 question


A random sample of size 20 is taken, with the sample mean of 7.48 and sample standard deviation
of 4.0. Assume that the population is normally distributed and using = 0.05 for testing the
following hypothesis:
H0 : 16
H1 : > 16
8.

9.

The critical value is


a.

1.729

b.

2.093

c.

1.725

d.

Other:____________________(specified)

Reject the null hypothesis is


a.

True

b.

False

10. In a survey of 500 people, there are 200 of them interested in the Gold Dragon program. Using
= 0.02 to test whether the proportion of the population interested in this program is greater
or equal 0.5 or not. The testing hypothesis as follows: H0 : p 0.5; H1: p < 0.5.

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Reject the null hypothesis is


a.

True

b.

False

11. Given that = 0.05, n = 9, s2 = 25 and the testing hypothesis: H0 : 2 = 20, H1: 2 20. Accept
the null hypothesis is
a.

True

b.

False

12. Two random samples of size 20 are taken. The mean and standard deviation of the first sample
are 125 and 23.9. The mean and standard deviation of the second sample are 120 and 21.6.
Assume the populations of these samples are normally distributed and their variances are
approximately equal. The hypothesis is given as follow:
H0 : 1 = 2
H1 : 1 2
With = 0.05, accept the null hypothesis is
a.

True

b.

False

13. The standard deviation of 2 samples are s1 = 5.68 and s2 = 3.58. With = 0.1, n1 = 25, n2 =
20, the testing hypothesis: H0:

12 22 ; H1: 12 22

Reject the null hypothesis is


a.

True

b.

False

14. In an ANOVA with k = 5 groups and a total sample size of 65, using = 0.05, the critical
point for the distribution to be used is:
a.

1.7

b.

2.53

c.

2.064

d.

1.96

e.

Other value: __________________

15. In an ANOVA, we find that the p-value is 0.003. We therefore conclude that:
a.

there is no statistical evidence that any population mean is different from any other

b.

no two population means are equal

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c.

the null hypothesis should be accepted

d.

no two variances are equal

e.

there is strong statistical evidence that not all the population means are equal

16. If the r population means are equal, then MSTR/MSE will be


a.

more than 1.00

b.

very close to 0.00

c.

very close to 1.00

d.

close to -1.00

e.

a negative value between 0 and -1

17. In a multiple regression analysis, MSE = 20, n = 54, k = 3, and SST(total) = 2000. What is the
R2 of the regression?
a.

b.

0.01

c.

0.99

d.

e.

0.5

f.

None of above: .. (Specified)

18. Consider the following multiple regression model, with n = 25


y = 5 + 10x1 + 20x2
R2 = 0.90
sb1 = 3.2
sb2 = 5.5
Calculate the t-test statistic to test whether x1 contributes information to the prediction of y
a.

0.32

b.

0.3636

c.

3.125

d.

2.8125

e.

11.11

f.

None of above:.(Specified)

Use the following data to answer the next 3 questions


A manufacturing company produces valves. The valve plate is supposed to have a tensile strength
6 lb/mm. The company tests a random sample of 36 valve plates. The sample mean is 6.0611
lb/mm, with a standard deviation of 1.5 lb/mm. This company want to test whether the valve plates
have an average tensile strength of 6 lb/mm. Using = 0.1 and the testing hypothesis as follow:
H0 : = 6
H1 : 6

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19. The test statistic is


a.

2.40

b.

2.94

c.

1.60

d.

Other: 0.2444 (specified)

20. The p value is:


a.

0.0016

b.

0.0548

c.

0.0164

d.

Other: 0.8069 (specified)

21. Reject the null hypothesis is


a.

True

b.

False

Use the following data to answer the next 3 questions


A company is interested in testing customer satisfaction with four department stores that it owns.
Data are randomly selected as follows:
A
5
8
9
8
7
5

B
9
8
12
10
11
7
9

C
2
5
7
6
9
5

D
5
3
8
8
4
7

22. Fill in the ANOVA table:


Source

SS

df

MS

Treatment

59.959

19.986

5.126

Error

81.881

21

3.899

Total

141.84

24

23. If = 0.05, the critical point(s) is:


a.

3.0725

b.

2.875

c.

5.0725

d.

None of above:.(Specified)

24. Reject the null hypothesis is


a.

True

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b.

False

25. A certain brand of electric bulbs has an average life of 300 hours with a standard deviation of
25. A random sample of 100 bulbs is tested. What is the probability that the sample mean will
be less than 295.
a.

0. 1096

b.

0.0228

c.

0.4452

d.

0.0793

e.

0.0548

f.

None of above:.(Specified)

26. When sampling from a normal population with mean 100 and standard deviation 12, using a
sample size of 36, the probability that the sample mean will exceed 110 is:
a.

A very small number

b.

A very large number

c.

A number close to 1

d.

None of above:.(Specified)

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PART II: (Please answer on ANSWER SHEET)


Question 1:
Safety in motels and hotels is a growing concern among travelers. Suppose a survey was
conducted by the National Motel and Hotel Association to determine the U.S. travelers perception
of safety in various motel chains. The association chose four different national chains from
economy lodging sector and randomly selected 5 people who had stayed overnight in a motel in
each of four chains in the past 2 years. Each selected traveler was asked to rate each motel chain
on a scale from 0 to 100 to indicate how safe he or she felt at that motel. A score of 0 indicates
completely unsafe and score of 100 indicates perfectly safe. The scores follow. To determine
whether there is a significant difference in the safety ratings of four motels. Use = 0.05.
Traveler
1
2
3
4
5

Motel 1
40
65
60
25
50

Motel 2
36
50
55
40
35

Motel 3
55
80
60
55
65

Motel 4
45
70
60
50
60

Question 2:
Given here is the computer output for a multiple regression model that was developed to predict Y
from four independent variables, M1, Lend, Price and Exch. We have R2 = 0.8250 and total
number of observations is 67.
a. Develop the ANOVA table and discuss about results. Given SSR = 500
b. The Coefficients table is given below:
Intercept
M1
Lend
Price
b -4.0155 0.36846 0.0047 0.0365
2.7664 0.06385 0.0492 0.0093
s(b)
t -1.4515 5.7708 0.0955 3.9149
0.1517 0.0000 0.9242 0.0002
p-value
Testing Hypothesis about the coefficients b1, b2, b3,
equation.

Exch.
0.2679
1.1754
0.2279
0.8205
b4. State conclusion about the regression

Question 3:
The marketing director of a large department store wants to estimate the average number of
customers who enter the store every 5 minutes. She has a research assistant randomly select 5minute intervals and count the number of arrivals at store. The assistant obtains the figures 68, 42,
51, 57, 66, 90, 55, 39, 42, and 88. The analyst assumes the number of arrivals is normally
distributed. Using these data, the analyst computes a 95% confidence interval to estimate the mean
for all 5-minute intervals. What interval values does she get?

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Question 4:
A hole punch machine is set to punch a hole 2.05cm in diameter in a strip of sheet metal in a
manufacturing process. The strip of metal is then creased and sent on to the next phase of
production, where a metal rod is slipped through the hole. It is important that the hole be punched
to the specified diameters of 2.05 cm. To test punching accuracy, technicians have randomly
sampled 12 punch holes and measured the diameters. The data (in cm) are 2.02, 2.10, 2.07, 2.04,
2.06, 2.03, 2.08, 2.06, 2.05, 2.07, 2.09, 2.06. Use an alpha of 0.1 to determine whether the holes
are being punched an average of 2.05. Assume the punched holes are normally distributed in the
population.
Question 5:
A large manufacturing company investigated the service it has received from suppliers and
discovered that, in the past, 35% of all materials shipments have been received late. However, the
company recently installed a just in time system in which suppliers are linked more closely to
the manufacturing process. A random sample of 150 deliveries since the just in time system
was installed reveals that 36 deliveries were late. Use this sample information to test whether the
proportion of late deliveries has been reduced significantly. Let = 0.05.
Question 6:
`Eleven employees were put under the care of the company nurse because of high cholesterol
readings. The nurse lectured them on the dangers of this condition and put them on new diet.
Shown are the cholesterol readings of the 11 employees both before the new diet and 1 month after
use of the diet began. Conduct a test to shown that there is an improvement after using of diet and
construct a 95% confidence interval to estimate the population mean difference of cholesterol
readings for people who are involved in this program. Assume differences in cholesterol readings
are normally distributed in the population.
EMPLOYEE
BEFORE
1
250
2
225
3
285
4
237
5
295
6
245
7
210
8
225
9
220
10
214
11
231
Hint: Using pair observations. Testing Hypothesis: H0: D 0

AFTER
192
220
210
210
235
230
185
235
195
198
218

GOOD LUCK!

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