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INDEX 1

Duration: 180 minutes

18:15 21:15 PM

Lecturer

Student ID:

Date:

April 12 th, 2005

Name:

INSTRUCTIONS

1.

This is an open book examination.

2.

Calculator is allowed.

3.

Discussion and material transfer are strictly prohibited.

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

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)

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.

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.

b.

c.

d.

None of above

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.

a.

1.729

b.

2.093

c.

1.725

d.

Other:____________________(specified)

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.

INDEX 1

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

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.

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.

INDEX 1

c.

d.

e.

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

a.

b.

c.

d.

close to -1.00

e.

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.

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)

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

INDEX 1

a.

2.40

b.

2.94

c.

1.60

d.

a.

0.0016

b.

0.0548

c.

0.0164

d.

a.

True

b.

False

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

Source

SS

df

MS

Treatment

59.959

19.986

5.126

Error

81.881

21

3.899

Total

141.84

24

a.

3.0725

b.

2.875

c.

5.0725

d.

None of above:.(Specified)

a.

True

INDEX 1

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.

b.

c.

A number close to 1

d.

None of above:.(Specified)

INDEX 1

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?

INDEX 1

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!

INDEX 1

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