SOLUTION – SAMPLE TEST

MULTIPLE CHOICE: Answer key

1) C
Explanation: Area codes are not even ranked, so just nominal.
2) A
Explanation: Classic systematic sample from an accessible but unlisted population.
3) A
Explanation: "Nice" bin limits may be at xmin and xmax.
4) A
Explanation: Labeled axis scales are desirable for numerical data.
5) A
Explanation: Sturges' Rule suggests k = 1 + 3.3 log(62) = 7 bins.
6) C
Explanation: Within μ ± 3σ we would expect 99.73 percent of 10,000, or 9,973 data values.
7) B
Explanation: The upper inner fence is 60 + 1.5(60 - 40) = 90 so John is not an outlier.
8) B
Explanation: Given that the events are independent, the product P(A)P(B) must equal P(A∩B). Thus, P(A or B)
= P(A) + P(B) - P(A∩B) = .50 + .30 - (.50)(.30) = .80 - .15 = .65 using the General Law of Addition.
9) B
Explanation: This is a conditional probability: P(A2|B3) = 32/169.
10) B
Explanation: E(X) = (3/6) × $2 + (3/6) × (-$1) = $0.50.
11) A
Explanation: The standard deviation is [(16 - 10)2/12]1/2 = 1.73.
12) A
Explanation: The mean is halfway between the end points of the distribution.
13) C
Explanation: P(12 < X < 18) = P(-.67 < Z < 1.33) = .6568 (from Appendix C) or .6563 using Excel.
14) B
Explanation: Using Excel =NORM.INV(.20,14,3) = 11.475, or X = 14 - 0.84(3) = 11.48 using Appendix C.
15) A
Explanation: P(Z > 0.67) = 1 - P(Z < 0.67) = 1 - .2514 = .7486.
16) B
Explanation: The width is ts/(n1/2) = (2.492)(5)/(25)1/2 = 2.492.
17) A
Explanation: The standard error of the mean is σ/(n1/2) so replacing n by 4n would cut the SEM in half.
18) A
Explanation: The sampling distribution of the mean is asymptotically normal for any population.
19) C
Explanation: The mean is not used in calculating the width of the confidence interval zσ/(n1/2).
20) A
Explanation: The standard error of the mean is σ/(n1/2).
21) D
Explanation: Student's t approaches z as degrees of freedom increase.
22) A
Explanation: The interval is 85 ± ts/(n1/2) or 85 ± (1.753)(32)/(16)1/2 with d.f. = 15 (don't use z).
23) A
Explanation: The interval width is ± z[p(1 - p)/n]1/2 = ± (1.645)[(.48)(.52)/25]1/2.
24) C
Explanation: The interval is p ± z[p(1 - p)/n]1/2 = .20 ± (1.960)[(.20)(.80)/160]1/2.
25) C
Explanation: Yes, because there were at least 10 "successes" and at least 10 "failures" in the sample. This is a
conservative rule of thumb.
26) C
Explanation: There is an inverse relationship between α and β, but it is not a simple equation.
27) A
Explanation: For a given sample size, there is a trade-off between α and β.
28) B
Explanation: Only a larger sample can allow a reduction in both α and β (ceteris paribus).
29) D
Explanation: The p-value tells the likelihood of the observed sample result (or one more extreme) assuming
that H0 is true.
30) C
Explanation: You cannot find the critical value without specifying α.
31) D
Explanation: tcalc = (37.8 - 40)/[(5.4)/181/2] = -1.72848.
32) C
Explanation: zcalc = (103 - 100)/[(10)/1001/2] = 3.000.
33) D
Explanation: The null hypothesis cannot contain a two-tailed inequality.
34) D
Explanation: p = 39/260 = .15, π0 = .10, zcalc = (.15 - .10)/[(.10)(1 - .10)/260]1/2 = 2.68742.
35) C
Explanation: z.05 = 1.645.
36) D
Explanation: For d.f. = 18, Appendix D gives t.05 = -1.734.
37) A
Explanation: Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in zcalc.
38) C
Explanation: Enter the proportions separately in the formula. (We are not combining the samples.)
39) A
Explanation: It is desirable, but not necessary, that sample sizes be equal in a one-factor ANOVA.
40) A
Explanation: Although its test statistic is based on variances, ANOVA compares several means.
41) B
Explanation: The error variance or unexplained variance is variation within groups.
42) D
Explanation: The F distribution is the ratio of two mean squares, so it cannot be negative.
43) B
Explanation: For between-group variation, we have dfnumerator = c - 1 = 3 - 1 = 2.
44) A
Explanation: The basic identify is SSbetween + SSwithin = SStotal.
45) C
Explanation: We might also call the independent variable a predictor of Y.
46) B
Explanation: The predicted Attendance is 16,500 - 75(90) = 9,750.
47) A
Explanation: In a simple regression, the standard error is the square root of the sum of the squared residuals
divided by (n - 2).
48) C
Explanation: OLS method minimizes the sum of squared residuals.
49) A
Explanation: Fcalc and the p-value cannot be negative.
50) A
Explanation: Multiple regression has more than one independent variable (predictor).

SHORT ANSWER

1) H0: µ ³ 530 bags/hour vs. H1: µ < 530 bags/hour. tcrit = −1.753.
510 - 530
Reject H0 if tcalc < −1.753. tcalc = = -1.6> −1.753 so fail to reject the null hypothesis.
50
16
No significant evidence that the claim is overstated.
2) a.Define p1 = proportion of shoppers that paid by debit card in 2006. Define p2 = proportion of
shoppers that paid by debit card in 2009.
H0: p1 - p 2 ³ 0 vs. H1: p1 - p 2 < 0 . This is a left-tailed test. Reject the null hypothesis if z < −2.33.
42 + 62 .21 - .31
b. pc = = .26 zcalc = = -2.28 > −2.33 so we fail to reject the null
200 + 200 é 1 1 ù
.26(1 - .26) ê +
ë 200 200 úû
hypothesis (although the decision is close.) The sample does not provide strong enough evidence to
conclude that there is a difference in the two proportions.
c. p-value =NORM.S.INV(-2.28,1) = .0113 > .01.
d. Normality is assumed because n1p1 > 10, n2p2 > 10, n1 (1-p1) > 10, and n2 (1-p2) > 10.
3)
Source SS Df MS F
Between 6709.5 7 958.5 5.4
Within 12425 70 177.5
Total 19134.5 77 248.5
4)

(xi-
x_i y_i x_i-x_bar y_i-y_bar (xi-x_bar)(yi-y_bar) x_bar)^2
2 4 -3.2 -4.2 13.44 10.24
3 5 -2.2 -3.2 7.04 4.84
5 7 -0.2 -1.2 0.24 0.04
7 10 1.8 1.8 3.24 3.24
9 15 3.8 6.8 25.84 14.44
Sum 26 41 49.8 32.8
Mean 5.2 8.2 SS_xy SS_xx
x_bar y_bar
 𝑆𝑆"# 49.8
𝑏! = = = 1.518; 𝑏$ = 𝑦/ − 𝑏! 𝑥̅ = 8.2 − 1.518 ∗ 5.2 = 0.305
𝑆𝑆"" 32.8
Therefore, the fitted line using OLS is 𝑦5 = 0.305 + 1.518𝑥.