Chapter 1

1. The process of using sample statistics to draw conclusions about true population parameters is called
a) statistical inference.
b) the scientific method.
c) sampling.
d) descriptive statistics.
2. Those methods involving the collection, presentation, and characterization of a set of data in order to
properly describe the various features of that set of data are called
a) statistical inference.
b) the scientific method.
c) sampling.
d) descriptive statistics.

3. The universe or "totality of items or things" under consideration is called

a) a sample.
b) a population.
c) a parameter.
d) a statistic.
4. A summary measure that is computed to describe a characteristic from only a sample of the population
is called
a) a parameter.
b) a census.
c) a statistic.
d) the scientific method.
5. Which of the following is most likely a parameter as opposed to a statistic?
a) The average score of the first five students completing an assignment.
b) The proportion of females registered to vote in a county.
c) The average height of people randomly selected from a database.
d) The proportion of trucks stopped yesterday that were cited for bad brakes.
6. Most analysts focus on the cost of tuition as the way to measure the cost of a college education. But
incidentals, such as textbook costs, are rarely considered. A researcher at Drummand University wishes
to estimate the textbook costs of first-year students at Drummand. To do so, she monitored the
textbook cost of 250 first-year students and found that their average textbook cost was $300 per
semester. Identify the population of interest to the researcher.

a) All Drummand University students.

b) All college students.
c) All first-year Drummand University students.
d) The 250 students that were monitored.
7. Which of the following is a discrete quantitative variable?
a) The Dow Jones Industrial average
b) The volume of water released from a dam
c) The distance you drove yesterday.
d) The number of employees of an insurance company

8. Which of the following is a continuous quantitative variable?

a) The color of a student’s eyes
b) The number of employees of an insurance company
c) The amount of milk produced by a cow in one 24-hour period
d) The number of gallons of milk sold at the local grocery store yesterday
9. Researchers are concerned that the weight of the average American school child is increasing
implying, among other things, that children’s clothing should be manufactured and marketed in larger
sizes. If X is the weight of school children sampled in a nationwide study, then X is an example of
a) a categorical random variable.
b) a discrete random variable.
c) a continuous random variable.
d) a parameter.
10. The chancellor of a major university was concerned about alcohol abuse on her campus and wanted to
find out the proportion of students at her university who visited campus bars on the weekend before the
 final exam week. Her assistant took a random sample of 250 students. The portion of students in the
sample who visited campus bars on the weekend before the final exam week is an example of
__________.
a) a categorical random variable.
b) a discrete random variable.
c) a parameter.
d) a statistic
11. True or False: A statistic is usually unobservable while a parameter is usually observable.
12. True or False: The answer to the question “How do you rate the quality of your business statistics
course” is an example of an ordinal scaled variable.
13. True or False: A professor computed the sample average exam score of 20 students and used it to
estimate the average exam score of the 1,500 students taking the exam was an example of inferential
statistics.
14. The Commissioner of Health in New York State wanted to study malpractice litigation in New York.
A sample of 31 thousand medical records was drawn from a population of 2.7 million patients who
were discharged during the year 1997. The collection, presentation, and characterization of the data
from patient medical records are examples of _______.
15. In purchasing an automobile, there are a number of variables to consider. The color of the car is an
example of a _______ variable.

Chapter 1 (cont)

An insurance company evaluates many numerical variables about a person before deciding on an
appropriate rate for automobile insurance. A representative from a local insurance agency selected a
random sample of insured drivers and recorded, X, the number of claims each made in the last 3 years, with
the following results.
X f
1 14
2 18
3 12
4 5
5 1

1. Referring to Table 2-1, how many drivers are represented in the sample?
a) 5
b) 15
c) 18
d) 50
2. The width of each bar in a histogram corresponds to the
a) differences between the boundaries of the class.
b) number of observations in each class.
c) midpoint of each class.
d) percentage of observations in each class.
TABLE 2-3
Every spring semester, the School of Business coordinates with local business leaders a luncheon for
graduating seniors, their families, and friends. Corporate sponsorship pays for the lunches of each of the
seniors, but students have to purchase tickets to cover the cost of lunches served to guests they bring with
them. The following histogram represents the attendance at the senior luncheon, where X is the number of
guests each graduating senior invited to the luncheon and f is the number of graduating seniors in each
category.
 160 152

140

120

100
85

Frequency
80

60

40
17 18
20
3 0
0
0 1 2 3 4 5
Guests per Student

3. Referring to the histogram from Table 2-3, how many graduating seniors attended the luncheon?
a) 4
b) 152
c) 275
d) 388
A survey was conducted to determine how people rated the quality of programming available on television.
Respondents were asked to rate the overall quality from 0 (no quality at all) to 100 (extremely good
quality). The stem-and-leaf display of the data is shown below.
Stem Leaves
3 24
4 03478999
5 0112345
6 12566
7 01
8
9 2

4. Referring to Table 2-4, what percentage of the respondents rated overall television quality with a rating
of 80 or above?
a) 0
b) 4
c) 96
d) 100
TABLE 2-5
The following are the durations in minutes of a sample of long-distance phone calls made within the
continental United States reported by one long-distance carrier.

Relative
Time (in Minutes) Frequency
0 but less than 5 0.37
5 but less than 10 0.22
10 but less than 15 0.15
15 but less than 20 0.10
20 but less than 25 0.07
25 but less than 30 0.07
30 or more 0.02

5. Referring to Table 2-5, what is the width of each class?

a) 1 minute
b) 5 minutes
c) 2%
d) 100%
6. Referring to Table 2-5, if 10 calls lasted 30 minutes or more, how many calls lasted less than 5
minutes?
a) 10
 b) 185
c) 295
d) 500
7. Referring to Table 2-5, if 100 calls were sampled, _______ of them would have lasted less than 5
minutes or at least 30 minutes or more.
a) 35
b) 37
c) 39
d) None of the above.
8. When studying the simultaneous responses to two categorical questions, we should set up a
a) contingency table.
b) frequency distribution table.
c) cumulative percentage distribution table.
d) histogram.
9. You have collected information on the consumption by the 15 largest coffee-consuming nations.
Which of the following is the best for presenting the share of the consumption?
a) A pie chart.
b) A Pareto diagram
c) A side-by-side bar chart.
d) A contingency table.
10. You have collected data on the annual average amount of cash rebate offered by 6 different brands of
automobiles sold in the US in 2006 and 2007. Which of the following is the best for presenting the
data?
a) A contingency table.
b) A stem-and-leaf display
c) A time-series plot.
d) A side-by-side bar chart.
11. Referring to Table 2-12, of those for the plan in the sample, ________ percent were females.
12. Referring to Table 2-12, of the females in the sample, ________ percent were against the plan.
13. Referring to Table 2-12, ________ percent of the 200 were females who were against the plan.

The table 2-14 below contains the number of people who own a portable DVD player in a sample of 600
broken down by gender.

Own a Portable
DVD Player Male Female
Yes 96 40
No 224 240
14. Referring to Table 2-14, of those who owned a portable DVD in the sample, ________ percent were
females.
15. Referring to Table 2-14, of those who did not own a portable DVD in the sample, ________ percent
were males.

Chapter 2

1. Which of the following statistics is not a measure of central tendency?

a) Arithmetic mean.
b) Median.
c) Mode.
d) Q3.
2. Which of the arithmetic mean, median, mode, and geometric mean are resistant measures of central
tendency?
a) The arithmetic mean and median only.
b) The median and mode only.
c) The mode and geometric mean only.
d) The arithmetic mean and mode only.
3. In a perfectly symmetrical bell-shaped "normal" distribution
a) the arithmetic mean equals the median.
b) the median equals the mode.
c) the arithmetic mean equals the mode.
 d) All the above.
4. In general, which of the following descriptive summary measures cannot be easily approximated from
a boxplot?
a) The variance.
b) The range.
c) The interquartile range.
d) The median.
5. In right-skewed distributions, which of the following is the correct statement?
a) The distance from Q1 to Q2 is larger than the distance from Q2 to Q3.
b) The distance from Q1 to Q2 is smaller than the distance from Q2 to Q3.
c) The arithmetic mean is smaller than the median.
d) The mode is larger than the arithmetic mean.
6. According to the empirical rule, if the data form a "bell-shaped" normal distribution, _______ percent
of the observations will be contained within 1 standard deviation around the arithmetic mean.
a) 68.26
b) 75.00
c) 88.89
d) 93.75
7. Which of the following is NOT sensitive to extreme values?
a) The range.
b) The standard deviation.
c) The interquartile range.
d) The coefficient of variation.
8. According to the Chebyshev rule, at least 93.75% of all observations in any data set are contained
within a distance of how many standard deviations around the mean?
a) 1
b) 2
c) 3
d) 4
TABLE 3-1
Health care issues are receiving much attention in both academic and political arenas. A sociologist
recently conducted a survey of citizens over 60 years of age whose net worth is too high to qualify for
Medicaid and have no private health insurance. The ages of 25 uninsured senior citizens were as follows:
60 61 62 63 64 65 66 68 68 69 70 73 73
74 75 76 76 81 81 82 86 87 89 90 92
9. Referring to Table 3-1, identify the first quartile of the ages of the uninsured senior citizens.
10. Referring to Table 3-1, identify which of the following is the correct statement.
a) One fourth of the senior citizens sampled are below 64 years of age.
b) The middle 50% of the senior citizens sampled are between 65.5 and 73.0 years of age.
c) 25% of the senior citizens sampled are older than 81.5 years of age.
d) All of the above are correct.
11. Referring to Table 3-1, calculate the coefficient of variation of the ages of the uninsured senior
citizens.
12. True or False: If the distribution of a data set were perfectly symmetrical, the distance from Q1 to the
median would always equal the distance from Q3 to the median in a boxplot.
13. True or False: The 5-number summary consists of the smallest observation, the first quartile, the
median, the third quartile, and the largest observation.
14. True or False: In a boxplot, the box portion represents the data between the first and third quartile
values.
15. True or False: The geometric mean is a measure of variation or dispersion in a set of data.

Chapter 3
1. A single die is tossed and the number of spots appearing on the top face of the die is noted.
Identify the false statement:
A. There are six sample points associated with the sample space
B. The probability that the number of spots appearing is greater than three is 2/3.
C. The sample space is S = {1, 2, 3, 4, 5, 6}
D. The probability of an even number appearing is ?
E. None of the above
 2. The probability of A or B is .8. The probability of B is .3 What is the probability of A if events A
and B are mutually exclusive?
A .11 B -.5 C0 C .5 None of the above

3. Which of the following best expresses the addition rule of probabilities?

A. P(A B) = P(A) + P(B)
B. P(A B) = P(A) + P(B) + P(A B)
C. P(A B) = P(A) + P(B) - P(A B)
D. None of the above

4. A candy bowl contains 8 red M&Ms, 5 blue and 3 yellow. If 2 M&Ms are selected randomly,
what is the probability that one will be blue and one will be yellow?
A. 5 percent B. 20 percent C. 33.3 percent D. 12.5 percent

5. The probability that house sales will increase in the next 6 months is estimated to be 0.25. The
probability that the interest rates on housing loans will go up is estimated to be 0.7. The probability that
house sales and interest rates will go up during the next 6 months is estimated to be 0.20.

a. The probability that house sales or interest rates increase during the next 6 months is
A 0.75 B 0.85 C 0,705 D 0.9

b. The probability that house sales will go up given that the interest rates will increase during the next 6
months is
A 0.11 B 0.195 C 0.285 D 0.4

c. The probability of an increase in house sales and not an increase in interest rates is
A 0.2 B 0.05 C 0.25 D 0.5

6. In the General Addition Rule, which finds the probability of either event A or event B
occurring, P(A) and P(B) are summed, but why is P(A and B) subtracted?
A. This is just part of the theory.
B. P(A and B) has already been counted in P(A) and P(B).
C. You do not have to subtract P(A and B) if A and B are statistically independent.
D. This rule determines the probability of event A OR B occurring, not A AND B, so this factor is subtracted.

7. Consider the following chart of student enrollment at a particular college. A student is selected
at random from this college.

  Nursing Engineering Students

students

Undergraduates 130 70

Graduates 30 20
Let E represent the event an engineering student is selected, N = nursing student, U= undergraduate and
G = graduate student. A single student is selected at random from this set. Identify the statement below
that is false:
A. P (E|U)=7/9 B. P (E|G)=0.4 C. P (N) = 16/25= 0.64 D. P (G|N) = 3/16

8. Two cards are drawn without replacement (no return) from an ordinary deck of 52 cards (no jokers).
Find the probability that both cards are black:
A. 650/2704 B. 1/4 C. 25/102 D. None of the above

9. A Ph.D. graduate has applied for a job with two universities: X and Y. The graduate feels that he has
a 60% chance of receiving an offer from university X and a 50% chance of receiving an offer from
university Y. If he receives an offer from university Y, he believes that he has an 80% chance of
receiving an offer from university X. What is the probability that both universities will make him an
offer?
A 0.48 B 0.40 C 0.30 D 0.04

10. A publisher when deciding whether to offer contracts on two books, in economics and marketing
respectively, estimates that the economics book has a probability of 0.7 of earning a profit while the
marketing book has a probability of 0.5 of earning a profit. Further, she considers that the probability of
both books failing to make a profit is 0.2.
a. Find the probability that at least one book will make a profit.
b. Find the probability that at least one book will fail to make a profit.
c. Find the probability that both books will make a profit

Chapter 4

1. Which of the following about the binomial distribution is not a true statement?
a) The probability of event of interest must be constant from trial to trial.
b) Each outcome is independent of the other.
c) Each outcome may be classified as either "event of interest" or "not event of interest."
d) The random variable of interest is continuous.
2. If n = 10 and p = 0.70, then the mean of the binomial distribution is
a) 0.07
b) 1.45.
c) 7.00
d) 14.29
3. If n = 10 and p = 0.70, then the standard deviation of the binomial distribution is
a) 0.07
b) 1.45
c) 7.00
d) 14.29
4. The portfolio expected return of two investments
a) will be higher when the covariance is zero.
b) will be higher when the covariance is negative.
c) will be higher when the covariance is positive.
d) does not depend on the covariance.
5. A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts.
Prices for 100 rats follow the following distribution:
Price: $10.00 $12.50 $15.00
Probability: 0.35 0.40 0.25
How much should the lab budget for next year’s rat orders be, assuming this distribution does not
change?
a) $520
b) $637
c) $650
d) $780
6. True or False: The number of males selected in a sample of 5 students taken without replacement from
a class of 9 females and 18 males has a binomial distribution.
7. True or False: If p remains constant in a binomial distribution, an increase in n will increase the
variance.
The probability that a particular type of smoke alarm will function properly and sound an alarm in the
presence of smoke is 0.8. You have 2 such alarms in your home and they operate independently.

8. Referring to Table 5-1, the probability that both sound an alarm in the presence of smoke is ________.
9. Referring to Table 5-1, the probability that at least one sounds an alarm in the presence of smoke is
________.
10. Referring to Table 5-1, the probability that at least one sounds an alarm in the presence of smoke is
________.
Chapter 5

1. In its standardized form, the normal distribution

a) has a mean of 0 and a standard deviation of 1.
b) has a mean of 1 and a variance of 0.
c) has an area equal to 0.5.
d) cannot be used to approximate discrete probability distributions.

2. If a particular batch of data is approximately normally distributed, we would find that approximately
a) 2 of every 3 observations would fall between  1 standard deviation around the mean.
b) 4 of every 5 observations would fall between  1.28 standard deviations around the mean.
c) 19 of every 20 observations would fall between  2 standard deviations around the mean.
d) All the above.
3. For some value of Z, the probability that a standard normal variable is below Z is 0.2090. The value of
Z is
a) – 0.81
b) – 0.31
c) 0.31
d) 1.96
4. For some positive value of X, the probability that a standard normal variable is between 0 and +1.5X is
0.4332. The value of X is
a) 0.10
b) 0.50
c) 1.00
d) 1.50
5. A company that sells annuities must base the annual payout on the probability distribution of the length
of life of the participants in the plan. Suppose the probability distribution of the lifetimes of the
participants is approximately a normal distribution with a mean of 68 years and a standard deviation of
3.5 years. What proportion of the plan recipients would receive payments beyond age 75?
6. If we know that the length of time it takes a college student to find a parking spot in the library parking
lot follows a normal distribution with a mean of 3.5 minutes and a standard deviation of 1 minute, find
the probability that a randomly selected college student will find a parking spot in the library parking
lot in less than 3 minutes.
a) 0.3551
b) 0.3085
c) 0.2674
d) 0.1915
7. True or False: The probability that a standard normal random variable, Z, is between 1.50 and 2.10 is
the same as the probability Z is between – 2.10 and – 1.50.
8. True or False: Theoretically, the mean, median, and the mode are all equal for a normal distribution.
9. The amount of pyridoxine (in grams) in a multiple vitamin is normally distributed with  = 110
grams and  = 25 grams. What is the probability that a randomly selected vitamin will contain
between 82 and 100 grams of pyridoxine?
10. You were told that the mean score on a statistics exam is 75 with the scores normally distributed. In
addition, you know the probability of a score between 55 and 60 is 4.41% and that the probability of a
score greater than 90 is 6.68%. The middle 95.46% of the students will score between which two
scores?

Chapter 6

1. Sampling distributions describe the distribution of

a) parameters.
b) statistics.
c) both parameters and statistics.
d) neither parameters nor statistics.
2. Which of the following statements about the sampling distribution of the sample mean is incorrect?
a) The sampling distribution of the sample mean is approximately normal whenever the sample
size is sufficiently large ( n  30 ).
 b) The sampling distribution of the sample mean is generated by repeatedly taking samples of
size n and computing the sample means.
c) The mean of the sampling distribution of the sample mean is equal to  .
d) The standard deviation of the sampling distribution of the sample mean is equal to . 
The average score of all pro golfers for a particular course has a mean of 70 and a standard deviation of 3.0.
Suppose 36 golfers played the course today. Find the probability that the average score of the 36 golfers
exceeded 71.
3. At a computer manufacturing company, the actual size of computer chips is normally distributed with a
mean of 1 centimeter and a standard deviation of 0.1 centimeter. A random sample of 12 computer
chips is taken. What is the standard error for the sample mean?
a) 0.029
b) 0.050
c) 0.091
d) 0.120
4. Which of the following sampling methods will more likely be susceptible to ethical violation?
a) Simple random sample
b) Cluster sample
c) Convenience sample
d) Stratified sample

TABLE 7-5

The manager of the customer service division of a major consumer electronics company is interested in
determining whether the customers who have purchased a videocassette recorder made by the company
over the past 12 months are satisfied with their products.

5. Referring to Table 7-5, the manager decides to ask a sample of customers, who have bought a
videocassette recorder made by the company and filed a complaint over the past year, to fill in a survey
about whether they are satisfied with the product. This method will most likely suffer from
a) non-response error.
b) measurement error.
c) coverage error.
d) non-probability sampling.
6. Referring to Table 7-5, which of the following questions in the survey will NOT likely induce a
measurement error?
a) How many times have you illegally copied copyrighted sporting events?
b) What is your exact annual income?
c) How many times have you brought the videocassette recorder back for service?
d) How many times have you failed to set the time on the videocassette recorder?

7. True or False: The professor of a business statistics class wanted to find out the average amount of time
per week her students spent studying for the class. She divided the fifty students on her roster into ten
groups starting from the first student on the roster. The first student was randomly selected from the
first group. Then every tenth student was selected from the remaining students. This is an example of
a cluster sample.
8. True or False: The professor of a business statistics class wanted to find out the average amount of time
per week her students spent studying for the class. She divided the students into the left, right and
center groups according to the location they sat in the class that day. One of these 3 groups was
randomly selected and everyone in the group was asked the average amount of time per week he/she
spent studying for the class. This is an example of a cluster sample.

9. True or False: To gather opinions on the efficacy of U.S. foreign policies, a sample of 50 faculty
members is selected from the pool of university professors who
have taught political science at the graduate level. This is an example of a judgment sample.
10. True or False: You stand at the main entrance to a departmental store and pick the first 20 customers
that enter the store after it has opened its door for business on a single day. This is an example of a
systematic sample.

Chapter 7
1. The width of a confidence interval estimate for a proportion will be
a) narrower for 99% confidence than for 95% confidence.
b) wider for a sample size of 100 than for a sample size of 50.
c) narrower for 90% confidence than for 95% confidence.
d) narrower when the sample proportion is 0.50 than when the sample proportion is 0.20.
2. A 99% confidence interval estimate can be interpreted to mean that
a) if all possible samples are taken and confidence interval estimates are developed, 99% of them
would include the true population mean somewhere within their interval.
b) we have 99% confidence that we have selected a sample whose interval does include the
population mean.
c) Both of the above.
d) None of the above.
3. If you were constructing a 99% confidence interval of the population mean based on a sample of n=25
where the standard deviation of the sample s = 0.05, the critical value of t will be
a) 2.7969
b) 2.7874
c) 2.4922
d) 2.4851
4. The t distribution
a) assumes the population is normally distributed.
b) approaches the normal distribution as the sample size increases.
c) has more area in the tails than does the normal distribution.
d) All of the above.
5. It is desired to estimate the average total compensation of CEOs in the Service industry. Data were
randomly collected from 18 CEOs and the 97% confidence interval was calculated to be ($2,181,260,
$5,836,180). Which of the following interpretations is correct?
a) 97% of the sampled total compensation values fell between $2,181,260 and $5,836,180.
b) We are 97% confident that the mean of the sampled CEOs falls in the interval $2,181,260 to
$5,836,180.
c) In the population of Service industry CEOs, 97% of them will have total compensations that
fall in the interval $2,181,260 to $5,836,180.
d) We are 97% confident that the average total compensation of all CEOs in the Service industry
falls in the interval $2,181,260 to $5,836,180.
6. A confidence interval was used to estimate the proportion of statistics students that are females. A
random sample of 72 statistics students generated the following 90% confidence interval: (0.438,
0.642). Based on the interval above, is the population proportion of females equal to 0.60?
a) No, and we are 90% sure of it.
b) No. The proportion is 54.17%.
c) Maybe. 0.60 is a believable value of the population proportion based on the information above.
d) Yes, and we are 90% sure of it.
7. Suppose a 95% confidence interval for  turns out to be (1,000, 2,100). To make more useful
inferences from the data, it is desired to reduce the width of the confidence interval. Which of the
following will result in a reduced interval width?
a) Increase the sample size.
b) Increase the confidence level.
c) Increase the population mean.
d) Increase the sample mean.
8. A major department store chain is interested in estimating the average amount its credit card customers
spent on their first visit to the chain’s new store in the mall. Fifteen credit card accounts were randomly
sampled and analyzed with the following results: X  $50.50 and s 2  400 . Construct a 95%
confidence interval for the average amount its credit card customers spent on their first visit to the
chain’s new store in the mall assuming that the amount spent follows a normal distribution.
a) $50.50  $9.09
b) $50.50  $10.12
c) $50.50  $11.00
d) $50.50  $11.08
9. A university dean is interested in determining the proportion of students who receive some sort of
financial aid. Rather than examine the records for all students, the dean randomly selects 200 students
and finds that 118 of them are receiving financial aid. If the dean wanted to estimate the proportion of
 all students receiving financial aid to within 3% with 99% reliability, how many students would need
to be sampled?
a) n = 1,844
b) n = 1,784
c) n = 1,503
d) n = 1,435
10. The head librarian at the Library of Congress has asked her assistant for an interval estimate of the
mean number of books checked out each day. The assistant provides the following interval estimate:
from 740 to 920 books per day. If the head librarian knows that the population standard deviation is
150 books checked out per day, approximately how large a sample did her assistant use to determine
the interval estimate?

Chapter 9

1. Which of the following would be an appropriate null hypothesis?

a) The mean of a population is equal to 55.
b) The mean of a sample is equal to 55.
c) The mean of a population is greater than 55.
d) Only (a) and (c) are true.
2. Which of the following would be an appropriate alternative hypothesis?
a) The mean of a population is equal to 55.
b) The mean of a sample is equal to 55.
c) The mean of a population is greater than 55.
d) The mean of a sample is greater than 55.
3. A Type II error is committed when
a) we reject a null hypothesis that is true.
b) we don't reject a null hypothesis that is true.
c) we reject a null hypothesis that is false.
d) we don't reject a null hypothesis that is false.
4. A Type I error is committed when
a) we reject a null hypothesis that is true.
b) we don't reject a null hypothesis that is true.
c) we reject a null hypothesis that is false.
d) we don't reject a null hypothesis that is false.
5. The power of a test is measured by its capability of
a) rejecting a null hypothesis that is true.
b) not rejecting a null hypothesis that is true.
c) rejecting a null hypothesis that is false.
d) not rejecting a null hypothesis that is false.
6. If an economist wishes to determine whether there is evidence that average family income in a
community exceeds $25,000
a) either a one-tailed or two-tailed test could be used with equivalent results.
b) a one-tailed test should be utilized.
c) a two-tailed test should be utilized.
d) None of the above.
7. If the p-value is less than in a two-tailed test,
a) the null hypothesis should not be rejected.
b) the null hypothesis should be rejected.
c) a one-tailed test should be used.
d) no conclusion should be reached.
8. How many Kleenex should the Kimberly Clark Corporation package of tissues contain? Researchers
determined that 60 tissues is the average number of tissues used during a cold. Suppose a random
sample of 100 Kleenex users yielded the following data on the number of tissues used during a cold:
X = 52, s = 22. Give the null and alternative hypotheses to determine if the number of tissues used
during a cold is less than 60.
a) H0 :   60 and H1 :   60.
b) H0 :   60 and H1 :   60.
c) H0 : X  60 and H1 : X  60.
d) H0 : X  52 and H 1 : X  52.
 9. We have created a 95% confidence interval for  with the result (10, 15). What decision will we
make if we test H0 :  16 versus H1 :   16 at  = 0.10?
a) Reject H0 in favor of H1.
b) Accept H0 in favor of H1.
c) Fail to reject H0 in favor of H1.
d) We cannot tell what our decision will be from the information given.
10. The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the
club. She would now like to determine whether or not the mean age of her customers is over 30. If so,
she plans to alter the entertainment to appeal to an older crowd. If not, no entertainment changes will
be made. Suppose she found that the sample mean was 30.45 years and the sample standard deviation
was 5 years. If she wants to be 99% confident in her decision, what decision should she make?
a) Reject H0.
b) Accept H0.
c) Fail to reject H0.
d) We cannot tell what her decision should be from the information given.
11. A major videocassette rental chain is considering opening a new store in an area that currently does not
have any such stores. The chain will open if there is evidence that more than 5,000 of the 20,000
households in the area are equipped with videocassette recorders (VCRs). It conducts a telephone poll
of 300 randomly selected households in the area and finds that 96 have VCRs. The rental chain's
conclusion from the hypothesis test using a 3% level of significance is:
a) to open a new store.
b) not to open a new store.
c) to delay opening a new store until additional evidence is collected.
d) we cannot tell what the decision should be from the information given

Chapter 10

1. The t test for the difference between the means of 2 independent populations assumes that the
respective
a) sample sizes are equal.
b) sample variances are equal.
c) populations are approximately normal.
d) All of the above.
2. The t test for the mean difference between 2 related populations assumes that the
a) population sizes are equal.
b) sample variances are equal.
c) population of differences is approximately normal or sample sizes are large enough.
d) All of the above.
3. If we are testing for the difference between the means of 2 related populations with samples of n1 = 20
and n2 = 20, the number of degrees of freedom is equal to
a) 39.
b) 38.
c) 19.
d) 18.
4. In testing for differences between the means of two related populations, the null hypothesis is
a) H 0 :  D  2 .
b) H0 : D  0 .
c) H 0 :  D  0 .
d) H 0 :  D  0 .

TABLE 10-1

Are Japanese managers more motivated than American managers? A randomly selected group of each
were administered the Sarnoff Survey of Attitudes Toward Life (SSATL), which measures motivation for
upward mobility. The SSATL scores are summarized below.

American Japanese
Sample Size 211 100
 Mean SSATL Score 65.75 79.83
Population Std. Dev. 11.07 6.41

5. Referring to Table 10-1, judging from the way the data were collected, which test would likely be most
appropriate to employ?
a) Paired t test
b) Pooled-variance t test for the difference between two means
c) Independent samples Z test for the difference between two means
d) Related samples Z test for the mean difference
6. Referring to Table 10-1, give the null and alternative hypotheses to determine if the average SSATL
score of Japanese managers differs from the average SSATL score of American managers.
a) H 0 :  A –  J  0 versus H1 :  A –  J  0
b) H0 :  A –  J  0 versus H 1 :  A –  J  0
c) H0 :  A –  J  0 versus H1 :  A –  J  0
d) H 0 : X A – X J  0 versus H 1 : X A – X J  0

TABLE 10-4

A real estate company is interested in testing whether, on average, families in Gotham have been living in
their current homes for less time than families in Metropolis have. Assume that the two population
variances are equal. A random sample of 100 families from Gotham and a random sample of 150 families
in Metropolis yield the following data on length of residence in current homes.
Gotham: X G = 35 months, sG2 = 900 Metropolis: X M = 50 months, sM2 =
1050

7. Referring to Table 10-4, which of the following represents the relevant hypotheses tested by the real
estate company?
a) H0 :  G – M  0 versus H1 :  G –  M  0
b) H0 : G –  M  0 versus H1 :  G –  M  0
c) H0 :  G – M  0 versus H1 :  G –  M  0
d) H 0 : X G – X M  0 versus H1 : X G – X M  0

8. Referring to Table 10-4, suppose  = 0.1. Which of the following represents the correct conclusion?
a) There is not enough evidence that, on average, families in Gotham have been living in their
current homes for less time than families in Metropolis have.
b) There is enough evidence that, on average, families in Gotham have been living in their current
homes for less time than families in Metropolis have.
c) There is not enough evidence that, on average, families in Gotham have been living in their
current homes for no less time than families in Metropolis have.
d) There is enough evidence that, on average, families in Gotham have been living in their current
homes for no less time than families in Metropolis have.

TABLE 10-5

To test the effectiveness of a business school preparation course, 8 students took a general business test
before and after the course. The results are given below.
Exam Score Exam Score
Student Before Course (1) After Course (2)
1 530 670
2 690 770
3 910 1,000
4 700 710
5 450 550
6 820 870
7 820 770
8 630 610
 9. Referring to Table 10-5, the number of degrees of freedom is
a) 14.
b) 13.
c) 8.
d) 7.
10. Referring to Table 10-5, at the 0.05 level of significance, the conclusion for this hypothesis test would
be:
a) the business school preparation course does improve exam score.
b) the business school preparation course does not improve exam score.
c) the business school preparation course has no impact on exam score.
d) It cannot be drawn from the information given.

Chapter 15

11. In a one-way ANOVA, if the computed F statistic exceeds the critical F value we may
a) reject H0 since there is evidence all the means differ.
b) reject H0 since there is evidence of a treatment effect.
c) not reject H0 since there is no evidence of a difference.
d) not reject H0 because a mistake has been made.
12. Which of the following components in an ANOVA table are not additive?
a) Sum of squares.
b) Degrees of freedom.
c) Mean squares.
d) It is not possible to tell.
13. A completely randomized design
a) has only one factor with several treatment groups.
b) can have more than one factor, each with several treatment groups.
c) has one factor and one block.
d) has one factor and one block and multiple values.
14. The F test statistic in a one-way ANOVA is
a) MSW/MSA.
b) SSW/SSA.
c) MSA/MSW.
d) SSA/SSW.
15. In a one-way ANOVA, the null hypothesis is always
a) there is no treatment effect.
b) there is some treatment effect.
c) all the population means are different.
d) some of the population means are different.
16. Interaction in an experimental design can be tested in
a) a completely randomized model.
b) a randomized block model.
c) a two-factor model.
d) all ANOVA models.

TABLE 11-1

Psychologists have found that people are generally reluctant to transmit bad news to their peers. This
phenomenon has been termed the “MUM effect.” To investigate the cause of the MUM effect, 40
undergraduates at Duke University participated in an experiment. Each subject was asked to administer an
IQ test to another student and then provide the test taker with his or her percentile score. Unknown to the
subject, the test taker was a bogus student who was working with the researchers. The experimenters
manipulated two factors: subject visibility and success of test taker, each at two levels. Subject visibility
was either visible or not visible to the test taker. Success of the test taker was either top 20% or bottom
20%. Ten subjects were randomly assigned to each of the 2 x 2 = 4 experimental conditions, then the time
(in seconds) between the end of the test and the delivery of the percentile score from the subject to the test
taker was measured. (This variable is called the latency to feedback.) The data were subjected to
appropriate analyses with the following results.

Source df SS MS F PR > F
Subject visibility 1 1380.24 1380.24 4.26 0.043
Test taker success 1 1325.16 1325.16 4.09 0.050
Interaction 1 3385.80 3385.80 10.45 0.002
Error 36 11,664.00 324.00
Total 39 17,755.20

17. Referring to Table 11-1, what type of experimental design was employed in this study?
a) Completely randomized design with 4 treatments
b) Randomized block design with four treatments and 10 blocks
c) 2 x 2 factorial design with 10 observations
d) None of the above
18. Referring to Table 11-1, in the context of this study, interpret the statement: “Subject visibility and test
taker success interact.”
a) The difference between the mean feedback time for visible and nonvisible subjects depends on
the success of the test taker.
b) The difference between the mean feedback time for test takers scoring in the top 20% and
bottom 20% depends on the visibility of the subject.
c) The relationship between feedback time and subject visibility depends on the success of the
test taker.
d) All of the above are correct interpretations.
19. An airline wants to select a computer software package for its reservation system. Four software
packages (1, 2, 3, and 4) are commercially available. The airline will choose the package that bumps as
few passengers, on the average, as possible during a month. An experiment is set up in which each
package is used to make reservations for 5 randomly selected weeks. (A total of 20 weeks was included
in the experiment.) The number of passengers bumped each week is given below. How should the data
be analyzed?
Package 1: 12, 14, 9, 11, 16
Package 2: 2, 4, 7, 3, 1
Package 3: 10, 9, 6, 10, 12
Package 4: 7, 6, 6, 15, 12

a) F test for differences in variances.

b) One-way ANOVA F test.
c) t test for the differences in means.
d) t test for the mean difference.
TABLE 11-3

A realtor wants to compare the average sales-to-appraisal ratios of residential properties sold in four
neighborhoods (A, B, C, and D). Four properties are randomly selected from each neighborhood and the
ratios recorded for each, as shown below.
A: 1.2, 1.1, 0.9, 0.4 C: 1.0, 1.5, 1.1, 1.3
B: 2.5, 2.1, 1.9, 1.6 D: 0.8, 1.3, 1.1, 0.7

Interpret the results of the analysis summarized in the following table:

Source df SS MS F PR > F
Neighborhoods 3.1819 1.0606 10.76 0.001
Error 12
Total 4.3644

20. Referring to Table 11-3, the among group degrees of freedom is

a) 3
b) 4
c) 12
d) 16
21. Referring to Table 11-3, the within group sum of squares is
a) 1.0606
b) 1.1825
c) 3.1819
d) 4.3644
22. Referring to Table 11-3,
a) at the 0.05 level of significance, the mean ratios for the 4 neighborhoods are not all the same.
b) at the 0.01 level of significance, the mean ratios for the 4 neighborhoods are all the same.
c) at the 0.10 level of significance, the mean ratios for the 4 neighborhoods are not significantly
different.
d) at the 0.05 level of significance, the mean ratios for the 4 neighborhoods are not significantly
different from 0.