Alpha University College of Distance

College Studies

Degree Programme
Statistics for management Examination (Course No MGMT 221 )
Time allowed 1:30 hrs.
March 2021
Directions
Write your Name, Registration No., Department, Exam Center and put "✓" mark for the program
(10 + 1…, level I…) you are attending in the space provided on the answer sheet.
Part I. True or False Questions
Write “True” if the statement is true or write “False” if the statement is false and write
your answer in the space provided on the answer sheet. (2 point(s) each)
1. The time required to assemble a computer is an example of a discrete random variable.
2. The probability that event A will not occur is 1- P (A/)
3. An experiment that has two possible outcomes is necessarily binomial.
4. The difference between the largest and smallest values in an ordered array is called mean range.
5. The number of students living off-campus is an example of a continuous random variable.
6. Covariance and correlation coefficient are used to measure the central location of the data.
7. When the population is normally distributed and the population standard deviation is unknown, then
for any sample size n, the sampling distribution of X is based on the z distribution.
8. Probability of 1 implies that the event is certain to occur.
9. Hyper geometric probability distribution is an example of continuous probability distribution.
10. In a normal distribution the mean, median and the mode are always equal.

Part II. Multiple Choices Questions

Choose the best answer for the questions from the alternatives given and write the letter of
your choice in the space provided on the answer sheet. (2 point(s) each)
1. If two events cannot occur at the same time, then they are said to be
A. Independent C. Dependent
B. Mutually exclusive D. B and C
2. The mean and the variance are always equal in
A. Binomial distribution C. Normal distribution
B. Poisson distribution D. None
3. Which of the following is not true about the standard normal distribution?
A. It is a continuous distribution C. Its mean equals to zero
B. It has a symmetric curve D. None
4. A company is creating 3 new divisions and 7 managers are eligible to be appointed head of division. How
many different ways could the three new heads is appointed?
A. 210 C. 35
B. 40 D. 70
5. The situation in which the null hypothesis is rejected when it is true
A. One tailed hypothesis testing C. Two tailed hypothesis testing
B. Type I error D. Type II error
6. Which of the following can have more than one value?
A. Mean C. Mode
B. Median D. None
7. From Sample of 80 customers 60 reply that they are satisfied with the service they received. What is a 95%
confidence interval for the proportion of satisfied customers?
A. [0.655, 0.845] C. [0.564, 0.746]
B. [0.446, 0.648] D. [0.354, 0.846]
8. As the sample size increases, the t distribution becomes more similar to the ________ distribution.
A. Normal C. F
B. Exponential D. Chi-square

ACDS: Statistics for management Examination 1

March 2021
 Alpha University College of Distance
College Studies

9. In developing an interval estimate, if the population standard deviation is unknown

A. It is impossible to develop an interval estimate
B. The standard deviation is arrived at using the range
C. The sample standard deviation can be used
D. It is assumed that the population standard deviation is 1
10. The null and alternative hypotheses divide all possibilities into:
A. Two sets that overlap C. Two sets that may or may not overlap
B. Two non-overlapping sets
[
D. All
11. The t distribution has degrees of freedom.
A. n B. 2 C. 10 D. n – 1
The data given below is temperature of 30 countries for a certain day
Temperature in oC 9 -2 3 -7 13
Number of countries 5 6 2 10 7
12. Which one of the following is not true about the data?
A. The average temperature is 2 oC C. The median temperature is -2 oC
o
B. The modal temperature is -7 C D. All are true
13. If an automatic teller machine gives service for 3 customers on average in an hour then, the probability that 4
customers will be served in the next hour is :
A. 0.062 B. 0.195 C. 0.168 D. 0.121

14. The telephone bill in a locality is normally distributed with mean 70 birr and standard deviation 20 birr. If a
customer is randomly selected, what is the probability that its bill is less than 75 birr?
A. 0.5987 B. 0.4301 C. 0.4013

.
D. 0.2525
15. If you increase the confidence level, the confidence interval .
A. Decreases C. Stays the same
B. Increases D. May increase or decrease
16. In situation where the population parameter of interest is qualitative in nature the sampling distribution to be
used is:
A. Distribution of variance C. Distribution of two population mean
B. Distribution of mean D. Distribution of proportions
17. Which one of the following is not measure of dispersion?
A. Variance C. Mean dviation
B. Range D. Mean
18. A machine is set up such that the average content of juice per bottle equals μ. A sample of 100 bottles yields an
average content of 48cl. Calculate a 95% confidence interval for the average content. Assume that the
population standard deviation σ = 5cl.
A. [47.98, 48.28] C. [47.02, 48.98]
B. [47, 49] D. [47.2, 48.98]
19. Which of the following statements is true about the standard deviation of x (standard error)?
A. It decreases as the sample size n increases.
B. It increases as the sample size n increases.
C. It does not change as the sample size n increases.
D. It changes each time a new sample is drawn.
20. The value set for  is known as (Hypothesis testing):
A. The rejection level C. The significance level
B. The acceptance level D. The error in the hypothesis test
Part III. Work Out Questions
Work out (solve) the problem(s) given below by showing all the required logical steps. Please note that no point is
given for writing only the answer. (10 point(s) )
1. Time magazine reports information on the time required for caffeine from products such as coffee and soft drinks to
leave the body after consumption. Assume that the 99% confidence interval estimate of the population mean time for
adults is 5.6 hrs to 6.4 hrs.
A. What is the point estimate of the mean time for caffeine to leave the body after consumption? (2 points)

ACDS: Statistics for management Examination 2

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 Alpha University College of Distance
College Studies

B. If the population standard deviation is 2 hrs, how large a sample was used to provide the interval estimate? (3
points)
2. If we toss a coin three times, what is the probability of getting exactly two heads? (2 point)
3. If P (A) = 0.8, P (B) = 0.7, and P (AB) = 0.9, then P (A∩B) is __________. (2 point)
4. The value of 0! is ____________. (1 point)

ACDS: Statistics for management Examination 3

March 2021
 Alpha University College of Distance
College Studies
Answer Sheet
Degree Programme
Statistics for management Examination (Course No. MGMT 221)
March 2021

Please Fill in the Necessary Information Here
Name:_________ ______________
Registration No.: ______________
Program:Degree ,Diploma 
10+1 , 10+2 , 10+3 , Level-3 , Level-4 
 Department: __________________
Exam Center: ________________
Date __ __/___ __/__ __ __ __

Part I. True or False Questions’ Answers (2 point(s) each)

1. _________ 3. ______ 5. ______ 7. ______ 9. ______

2. _________ 4. ______ 6. ______ 8. ______ 10. ______

Part II Multiple Choice Questions’ Answers (2 point(s) each)

1. _____ 5. _____ 9. _____ 13. _____ 17. _____
2. _____ 6. _____ 10. _____ 14. _____ 18. _____
3. _____ 7. _____ 11. _____ 15. _____ 19. _____
4. _____ 8. _____ 12. _____ 16. _____ 20. _____

Part III. Work Out Questions’ Answers (10 point(s) )

1.
2.

3.
4.

ACDS: Statistics for management Examination 4

March 2021