MBA

Statistics
Inference (INF)

INF 01. A gas utility company wishes to know how much time is needed for the
serviceperson to handle a service call. A random sample of 16 gave an average time
= 62.2 minutes with the standard deviation of 5.0 minutes. The 95% confidence
interval for the mean service call time is

(A) (61.534, 62,866)

(B) (59.536, 64.864)
(C) (61.587, 62.813)
(D) (59.550, 64.850)
(E) (59.750, 64.650)

INF 02. Suppose we have a random sample of size n from a normal population with
unknown mean 𝜇 and unknown variance 𝜎 ! . Suppose we calculate 92% and 96%
confidence intervals for 𝜇 from this sample. Which of the following is true?

(A) 92% confidence interval is shorter than 96% confidence interval.

(B) 92% confidence interval is wider than 96% confidence interval.
(C) They are equal because it is the same sample.
(D) We cannot compare the lengths since the variance is unknown.
(E) None of the above.

INF 03. We draw a sample of size 9 from a normal distribution and find mean 𝜇 = 75
and s2 = 48. A 95% confidence interval for 𝜇 is

(A) [75 – (1.96)(2.31), 75 + (1.96)(2.31)]

(B) [75 – (2.262)(2.31), 75 + (2.262)(2.31)]
(C) [75 – (2.262)(5.33), 75 + (2.262)(5.33)]
(D) [75 – (2.306)(2.31), 75 + (2.306)(2.31)]
(E) [75 – (2.306)(6.92), 75 + (2.306)(6.92)]

INF 04. A cannery prints "16 ounces" on the label of one of its products. The quality
control supervisor selects 9 cans at random and weighs them. He/She finds that the
average weight of the 9 cans is 15.7 ounces and the standard deviation of the 9 cans
is 0.5. An 80% confidence interval for the average weight of cans of this type is given
by

(A) [15.7 – (1.415)(0.5), 15.7 + (1.415)(0.5)]

(B) [16.0 – (1.415)(0.5), 16.0 + (1.415)(0.5)
(C) [15.7 – (1.28)(0.167), 15.7 + (1.28)(0.167)]
(D) [15.7 – (1.397)(0.167), 15.7 + (1.397)(0.167)]
(E) [15.7 – (1.415)(0.167), 15.7 + (1.415)(0.167))

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 MBA Statistics
Inference (INF)
INF 05. If (2.5,4.7) is a 95% confidence interval (C.I.) for the parameter 𝜇 this means

(A) the probability that 𝜇 lies between 2.5 and 4.7 is 0.95.
(B) the probability that the sample mean lies between 2.5 and 4.7 is 0.95.
(C) (2.5, 4.7) is in 95 of 100 C.I.'s for 𝜇 which will include the true value of 𝜇.
(D) if many random samples (each of the same size) were taken and a 95% C.I.
calculated using each sample, then (in the long run) 95% of these C.I.'s would
cover 𝜇 .
(E) the true value of 𝜇 lies between 2.5 and 4.7.

INF 06. It is desired to estimate the mean dining room and bar tab for parties of four
which dine at a particular restaurant. The resulting confidence interval should have
a width of $10.00 and a confidence coefficient of 95 percent. A reasonable value for
𝜎 is $25.00. The required sample size is:

(A) 10 (B) 25 (C) 97 (D) 338 (E) 480

INF 07. The blood pressure of adult males is normally distributed with a standard
deviation of 5 units. In order to estimate the mean blood pressure to within 2.5 units
with a confidence coefficient of 99%, how large a sample is required?

(A) 6 (B) 14 (C) 16 (D) 22 (E) 27

INF 08. It is assumed that the heights in inches of men are distributed normally with
a variance of 6.25. The unknown mean 𝜇 is to be estimated to within 0.50 inches
with a probability of 0.95; the sample size needed is:

(A) cannot be found without knowing the t-value (B) 97 (C) 100 (D) 385 (E) 68

INF 09. You wish to estimate 𝜇, the average lifetime of a particular type of battery.
You are planning to select n batteries of this type and to operate them continuously
until they fail. You have some feeling that the standard deviation of the lifetimes
should be around 20 hours, and you wish your estimate of 𝜇 to be within 1 hour of 𝜇,
with probability 0.95. How many batteries should you select?

(A) 40 (B) 77 (C) 784 (D) 1083 (E) 1537

INF 10. Suppose we want to estimate the average score that adults living in a large
rural area would get in a current events test. We want to ensure that the estimate of
the mean score will not differ from the true mean score by more than 2.5 units with
probability 0.98. How large a sample will we need, assuming that it is known from
similar studies that the standard deviation of such scores is 10?

(A) 9 (B) 10 (C) 68 (D) 87 (E) 348

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 MBA Statistics
Inference (INF)
INF 11. In constructing confidence intervals for the unknown mean 𝜇 of a normal
distribution with variance, which of the following statements is false?

(A) If the population variance is not known, we use the t-distribution.

(B) If the population variance is known, as the sample size increases so does the
width of the interval.
(C) If the population variance is not known, the width of the interval will, on the
average, be larger.
(D) If the population variance is known, as the confidence coefficient is increased
from 95% to 99%, the interval becomes wider for the same sample.
(E) If the population variance is known, as the sample size is increased, the interval
becomes narrower.

INF 12. A statistician wants to estimate the mean hourly earnings (in dollars) for
employees in a given occupation. Because of other similar studies he/she assumes
that hourly earnings follow a normal distribution with a variance 𝜎 ! = 0.0650. How
large a sample should he/she take in order that the sample mean will not differ from
the population mean 𝜇 by more than $0.05 with probability 0.95?

(A) 25 (B) 100 (C) 71 (D) 18 (E) 87

INF 13. We draw a sample of size 16 from a normal distribution and x = 75 and s 2 =
48.

A 95% confidence interval for 𝜇 has lower confidence limit

(A) 75 – (2.120) (1.73)

(B) 75 – (2.131) (6.93)
(C) 75 – (1.960) (1.73)
(D) 75 – (1.753) (6.93)
(E) 75 – (2.131) (1.73)

INF 14. By law the manufacturer of a food product is required to list the contents of
the product on the package. Suppose a researcher for the magazine "Canadian
Consumer" wishes to estimate the mean sugar content in a 16 oz. box of cornflakes.
The standard deviation of the sugar content in a box of last year's cornflakes was 𝜎 =
0.2 oz. and he/she is willing to assume that this has not changed and the distribution
of the sugar content is normal. Suppose he/she actually samples 5 boxes and finds
the following sugar contents

3.2 3.1 3.5 2.9 3.3

A 95% confidence interval for the mean sugar content has endpoints.

(A) 3.2 ± (1.960) (0.089) (B) 3.2 ± (2.776) (0.1)
(C) 3.2 ± (1.960) (0.1) (D) 3.2 ± (2.776) (0.089)
(E) 3.2 ± (2.776) (0.05)

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 MBA Statistics
Inference (INF)
INF 15. Based on a random sample of 100 cows of a certain breed, a confidence
interval for estimating the true mean yield of milk is given by (41.541, 43.893). If the
yields of milk of a cow may be assumed to be normally distributed, with 𝜎 equal to 6,
what is the level of confidence?

(A) 98% (B) 86% (C) 95% (D) 90% (E) 99%

INF 16. A particular canning company is concerned about the real average amount
of corn put into the cans when its automatic filler is set at 16 ounces. A sample of
100 cans was chosen at random yielding the following results: x = 15.8 oz. and s =
0.3 oz. Find a 98% C.I. For the true average content of the cans of corn.

(A) (15 .10,16.50)

(B) (15.73,15.87)
(C) (15.21, 16.39)
(D) (15.26, 15.72)
(E) (15.93, 16.07)

INF 17. For a given sample, to increase our confidence that a confidence interval
covers the specified parameter, we could always:

(A) shift the interval to the right.

(B) shift the interval to the left
(C) increase the length of the interval.
(D) decrease the length of the interval.
(E) calculate the true value of the parameter.

INF 18. In order to estimate the amounts owed to the city, a city clerk takes a
random sample of 16 files from a cabinet containing delinquent accounts and finds
the mean amount owed to the city to be $230.00 with a sample standard deviation
of $40.00, The 90% confidence interval for the mean amount owed to the city by a
man with a delinquent account is (assume the amount owed is normally
distributed).

(A) (213.55, 246.45)

(B) (212.47, 247.53)
(C) (225.62, 234.38)
(D) (227.41, 232.59)
(E) (216.59, 243.41)

INF 19. A student is interested in estimating the average number of showers per
week taken by college students. Based on a preliminary sample he/she believes that
𝜎 ! is close to 2.1. How large a sample is needed if his/her estimate is to be within
0.3 with probability = 0.95.

(A) 183 (B) 253 (C) 64 (D) 359 (E) 90

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 MBA Statistics
Inference (INF)
INF 20. A 95 percent confidence interval for the mean time taken to process new
insurance policies (in days) is (11, 12). This interval can be interpreted to mean
that:

(A) only 5 percent of all policies take less than 11 or more than 12 days to process.
(B) only 5 percent of all policies take between 11 and 12 days to process.
(C) about 95 out of every 100 such intervals constructed from random samples of
the same size will contain the population mean processing time.
(D) the probability is 0.95 that all policies take between 11 and 12 days to process.
(E) none of the above.

INF 21. An analyst, using a random sample of n = 500 families, obtained a 90 percent
confidence interval for mean monthly family income for a large population: ($600,
$800). If the analyst had used a 99 percent confidence coefficient instead, the
confidence interval would be:

(A) narrower and would involve a larger risk of being incorrect.

(B) wider and would involve a smaller risk of being incorrect.
(C) narrower and would involve a smaller risk of being incorrect.
(D) wider and would involve a larger risk of being incorrect.
(E) wider but it cannot be determined whether the risk of being incorrect would
be larger or smaller.

INF 22. The precision of an interval estimate of a given confidence coefficient is
indicated by:

(A) the confidence coefficient

(B) the width of the confidence interval
(C) the sample size
(D) the corresponding point estimate
(E) none of the above

INF 23. A horticulturist wishes to estimate 𝜇, the mean growth of seedlings in a large
timber plot last year. A random sample of n = 100 seedlings is selected and the one-
year growth for each is measured. The sample results are: x = 5.62 cm and s = 2.50
cm. The 95 percent confidence interval for 𝜇 is:

(A) (3.12, 8.12)

(B) (4.98, 6.26)
(C) (5.13, 6.11)
(D) (5.37, 5.87)
(E) (5.57, 5.67)

INF 24. A symmetric 98% confidence interval is needed for 𝜇, the mean of a normal
population whose variance is 10. What is the smallest sample size required so that
the length of the confidence interval will be no more than 3?

(A) 5 (B) 7 (C) 25 (D) 30 (E) 42

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 MBA Statistics
Inference (INF)
INF 25. A sample of size 16 is taken from a population. The variable which is
measured on units selected into the sample is normally distributed with variance 𝜎 !
= 144 and unknown mean 𝜇. From the sample we calculate x = 25.9 and s 2 = 36. A
95% confidence interval for 𝜇 is:

(A) [25.9 – (1.645)(3),25.9 + (1.645)(3)]

(B) [25.9 – (1.960)(1.5), 25.9 + (1.960)(1.5)]
(C) [25.9 – (2.130)(3), 25 .9 + (2.130)(3)]
(D) [25.9 – (1.960)(3), 25 .9 + (1.960)(3)]
(E) [25.9 – (1.960)(12), 25.9 + (1.960)(12)]

INF 26. You have measured the systolic blood pressure of a random sample of 25
employees of a company. A 95% confidence interval for the mean systolic blood
pressure (SBP) for the employees of this company is (122, 138). Which of the
following statements gives a valid interpretation of this interval?

(A) 95% of the sample of employees have a SBP between 122 and 138.
(B) 95% of the employees in the company have a SBP between 122 and 138.
(C) If the sampling procedure were repeated many times, then approximately 95%
of the resulting confidence intervals would contain the mean SBP for employees
in the company.
(D) If the sampling procedure were repeated many times, then approximately 95%
of the sample means would be between 122 and 138.
(E) The probability that the sample mean falls between 122 and 138 is equal to 0.95.

INF 27. You wish to estimate 𝜇, the average lifetime of a particular type of battery.
You are planning to select "n" batteries of this type and to operate them
continuously until they fail. You have some feeling that the standard deviation of the
lifetimes should be around 20 hours, and you wish a 95% confidence interval for 𝜇
to have a width of 2 hours. How many batteries should you select?

(A) 1537 (B) 784 (C) 40 (D) 77 (E) 1083

INF 28. If (2.5, 4.7) is an observed 95% confidence interval (C.I.) for the parameter
𝜇 this means:

(A) the probability that 𝜇 lies between 2.5 and 4.7 is 0.95.
(B) the probability that x lies between 2.5 and 4.7 is 0.95.
(C) if 100 random samples (each of the same size) were taken, and a 95% C.I.
calculated using each sample, then 95 of them would contain the unknown 𝜇
(D) if many random samples (each of the same size) were taken, and a 95% C.I.
calculated using each sample, then (in the long run) 95% of them would contain
the unknown 𝜇.
(E) both (A) and (C).

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 MBA Statistics
Inference (INF)
INF 29. A company that manufactures wheel hubs for AT vehicles knows from past
experience that when the manufacturing process is stable the critical dimension has
a standard deviation, 𝜎, equal to 0.065 millimeter (mm) and that the distribution of
the' measurements looks very similar to the normal distribution. The sample size
that would be required in order for the company to estimate the process mean, 𝜇, so
that a 95% confidence interval would have length 0.035 mm is

(A) 212 (B) 14 (C) 816 (D) 53 (E) 38

INF 30. Assume that you are sampling from a normal population with unknown
mean 𝜇 and known standard deviation 𝜎 = 15.5. How large a sample do you need
when it is desired to estimate 𝜇 with a 95% confidence interval having a width of 4?

(A) 231 (B) 230 (C) 163 (D) 162 (E) 15

INF 31. The 95% confidence interval for 𝜇 which is found to be [20, 30]

(A) is centered at 𝜇.
(B) has width 1.96 𝜎 𝑛.
(C) contains 𝜇 with probability 0.95.
(D) is too large for a sample of size 10.
(E) is centered at x .

INF 32. The commissioner of a baseball league would like to estimate the diameter
of baseballs that are used in league play. The manufacturer has specified that the
baseballs are supposed to come from a population with mean of 7.30 inches and a
standard deviation equal to 0.04 inch. A random sample of 15 baseballs selected
from a shipment gave a sample average of 7.32 inches. A 95% confidence interval
estimate for the true diameter of baseballs in this shipment is given by:

(A) 7.280 ≤ µ ≤ 7.320

(B) 7.242 ≤ µ ≤ 7.398
(C) 7.294 ≤ µ ≤ 7.326
(D) 7.300 ≤ µ ≤ 7.340
(E) 7.298 ≤ µ ≤ 7.342

INF 33. Cholesterol levels in a particular male population are assumed to follow a
normal distribution with value of the mean 𝜇 unknown but with standard deviation
𝜎 = 32 units. You want to estimate the population mean cholesterol level to within
±10 units with 90% confidence. The size of the sample that you would need to take
to achieve this is:

(A) 6 (B) 40 (C) 111 (D) 28 (E) 7

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 MBA Statistics
Inference (INF)
INF 34. Suppose that the yield per tree of a certain fruit variety has variance 𝜎 ! =
900 (lb)2. A random sample of 100 trees this season gave a mean yield of x = 275 lb
per tree. Assume that a 95% confidence interval for the mean yield of this variety
this season has been calculated. If you decreased the sample size to 75 trees, the
width of the confidence interval with the same 95% confidence level, would

(A) remain unchanged

(B) decrease
(C) increase
(D) depend upon the sample average that was obtained
(E) be significantly different at the .05 level

INF 35. It has been found that a certain machine that fills "5-pound" sacks of sugar
actually fills the sacks with an amount that varies from sack to sack according to a
normal distribution with standard deviation 𝜎 = 0.04 pound. Suppose that a sample
of 40 sacks has an average weight of x = 5.08 pounds. A 99% confidence interval
estimate for the mean of the population of all sacks filled by the process in its
current state is:

(A) 5.08 – (1.960)(0.0063) ≤ µ ≤ 5.08 + (1.960)(0.0063)

(B) 5.08 – (1.645)(0.0063) ≤ µ ≤ 5.08 + (1.645)(0.0063)
(C) 5.08 – (2.575)(0.040) ≤ µ ≤ 5.08 + (2.575)(0.040)
(D) 5.08 – (2.575)(0.0063) ≤ µ ≤ 5.08 + (2.575)(0.0063)
(E) 5.08 – (1.960)(0.040) ≤ µ ≤ 5.08 + (1.960)(0.040)

INF 36. The distribution of scores on a Scholastic Aptitude Test among high school
seniors is normal with standard deviation 𝜎 = 90 points. This value is quite stable
from year to year, but the mean changes a bit. How large a sample would be
required to estimate the population mean to within 25 points with probability 0.95?

(A) 36 (B) 50 (C) 6 (D) 600 (E) none of these

INF 37. A scale used in analytical chemistry gives weights in repeated weightings of
the same object that have a normal distribution with mean equal to the true weight
of the object. (That is, the scale has no bias.) The standard deviation of repeated
weightings of the same object is 𝜎 = 0.010 gram. A student weighs a compound three
times, and gets a sample mean of 1.220 grams. A 99% confidence interval for the
true mean weight of the compound is given by:

(A) 1.198 ≤ µ ≤ 1.242

(B) 1.161 ≤ µ ≤ 1.280
(C) 1.208 ≤ µ ≤ 1.232
(D) 1.192 ≤ µ ≤ 1.248
(E) 1.205 ≤ µ ≤ 1.235

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 MBA Statistics
Inference (INF)
INF 38. According to a Food and Drug Administration (FDA) study in 1993, a cup of
coffee contains on average of 115 milligrams of caffeine, with a standard deviation
of 20 milligrams. In contrast, sugar-free Mr. Pibb tested at 58.8 milligrams of
caffeine per 12-ounce serving, Coca-Cola and Diet Coke at 45.6 milligrams, and Pepsi
at 38.4 milligrams. Suppose you want to repeat the FDA experiment in 1995 to
obtain an estimate of the mean caffeine content in a cup of coffee correct to within 5
milligrams with probability 0.95. You are willing to assume that the standard
deviation has not changed since 1993. How many cups of coffee will be in your
sample?

(A) 44 (B) 61 (C) 62 (D) 106 (E) 107

INF 39. Bats, nature's only flying mammals, devour large numbers of insects.
Scientists are interested in the distances between a bat and an insect when the bat
first senses that the insect is there. An experiment is conducted to calculate these
detection distances. The following computer output summarizes the results.

Summary Statistics for Distance

Mean 48.363636 Range 60
Median 45 Variance 327.05455
Numeric 11 Min 23
Cases 11 Max 83
Sum = 532 25th percentile 34
Std Dev 18.084649 75th percentile 62
Interquartile 28

If that detection distances follow a normal distribution, a 95% confidence interval

for the true average detection distances is:

(A) (38.5, 58.4)

(B) (39.4, 57.3)
(C) (36.2, 60.5)
(D) (34.6, 62.1)
(E) (37.7, 59.1)

INF 40. A 95% confidence interval for the mean reading achievement score for a
population of third grade students is (74.2, 84.2). The sample mean is:

(A) 74.2 (B) 84.2 (C) .95 (D) 79.2

(E) the answer cannot be determined from the information given.

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 MBA Statistics
Inference (INF)
INF 41. The mean and standard deviation for the lifetime of a random sample of 25
light bulbs were found to be 1980 and I50 hours respectively. Assuming normality, a
99% confidence interval for 𝜇 is:

(A) 1980 ± 58.80

(B) 1980 ± 61.92
(C) 1980 ± 83.91
(D) 1980 ± 77.25
(E) 1980 ± 74.76

INF 42. An electrical firm that manufactures a certain type of bulb wants to estimate
its mean life. Assuming that the standard deviation 𝜎 is known to be 40 hours, the
number of bulbs should be tested so as to be 95 percent confident that the estimate
x will not differ from the true mean life 𝜇 by more than 10 hours is:

(A) 60 (B) 87 (C) 62 (D) 78 (E) 100

INF 43. A random sample of nine plots had a mean yield of 100 grams, and a
standard deviation of 15 grams. Find a 98% confidence interval for the unknown
population mean yield 𝜇.

(A) (88.4, 111.6)

(B) (90.2, 109.8)
(C) (85.5, 114.5)
(D) (88.5, 111.5)
(E) (91.8, 108.2)

INF 44. Suppose that the time (in minutes) taken by a biological cell to divide into
two cells has a normal distribution. From past experience, the standard deviation 𝜎
can be assumed to be 3.5 minutes. When sixteen cells were observed, the mean time
taken by them to divide was 31.2 minutes. Estimate the true mean time for a cell
division using a 98% confidence interval.

(A) (30.8, 31.6)

(B) (29.5, 32.9)
(C) (29.8, 32.6)
(D) (29.2, 33.2)
(E) (29.0, 33.4)

INF 45. A new customer of a laboratory that analyzes specimens of pharmaceutical
products to determine the concentration of the active ingredient wants her results
to be accurate to ±0.002 with 95% confidence. If the accuracy of the laboratory
procedure is known to be 𝜎 = 0.008 grams per liter, how many measurements must
be averaged to comply with the request?

(A) 7 (B) 8 (C) 10 (D) 43 (E) 62

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Inference (INF)
INF 46. Here are the Degree of Reading Power (DRP) summary scores for a sample
of 38 third grade students:

Summary Statistics for DRP

Mean 24.760526
Numerical 38
Std Dev 6.5473138


These students can be considered to be a simple random sample of the third graders
in a suburban school district. DRP scores are approximately normal. Suppose that
the standard deviation of scores in this school district is unknown. A 95%
confidence interval for the mean score based on the Summary Statistics for DRP is:

6.54
(A) 24.76&±&(1.96)
38
6.54
(B) 24.76&±&(1.96)
37
6.54
(C) 24.76&±&(1.645)
38
6.54
(D) 24.76&±&(2.021)
38
6.54
(E) 24.76&±&(2.021)
37

INF 47. A company claims that the batteries that they manufacture will, on the
average, operate continuously for at least 1000 hours. You randomly select 40 of
their batteries and find the times until failure. The average lifetime of the 40
batteries is 950 hours, and the standard deviation of the 40 lifetimes is 125 hours.
You would like to know whether you have sufficient evidence to reject the
company's claim. The alternative hypothesis in this problem is

(A) µ < 1000 (B) x < 1000 (C) x ≠ 1000 (D) x > 1000 (E) µ > 1000

INF 48. It is known from past records that the average weight of hogs 6 weeks after
birth is 100 lbs. with a standard deviation of 18 lbs. A new diet which is claimed to
increase the weight is given to a large group of hogs and a random sample of 36
hogs is selected. The average weight x is found to 107.5. The alternative hypothesis
of the test should be

(A) µ ≠ 100 (B) µ < 100 (C) µ > 100 (D) x > 100 (E) x > 107.5

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Inference (INF)
INF 49. To determine whether the mean nicotine content of a brand of cigarettes is
greater than the advertised value of 1.4 mg, a test of

Ho: 𝜇 = 1.4 vs. Ha: 𝜇 > 1.4

is conducted with 𝛼 = 0.05. The calculated value of the test statistic is Z = 2.42.

(A) The result is significant, the P-value is 1.645.

(B) The result is not significant, the P-value is 1.645.
(C) The result is significant, the P-value is 0.4922.
(D) The result is not significant, the P-value is 0.4922.
(E) The result is significant, the P-value is 0.0078.

INF 50. In testing Ho: 𝜇 = 110 vs. Ha: 𝜇 ≠ 110 at the 10% level of significance, Ho, is
rejected if

(A) the value of the test statistic lies in the acceptance region.
(B) the value 110 is contained in the 90% confidence interval.
(C) the P-value is greater than 0.1.
(D) 110 is not contained in the 90% confidence interval.
(E) 110 is not contained in the 95% confidence interval.

INF 51. A significance test gives a P-value of 0.04. From this we can

(A) reject Ho with 𝛼 = 0.01

(B) reject Ho with 𝛼 = 0.05
(C) say the probability that Ho is false is 0.04
(D) say the probability that Ho is true is 0.04
(E) none of the above

INF 52. Based on the following computer output for a z-test,


z-Tests

height: Test Ho: 𝜇 = 64 vs. Ho: 𝜇 ≠ 64
Sample mean = 62.697
z-statistics = –1.955
Reject Ho at alpha = 0.10


the P-value of the test is:

(A) 0.02 (B) 0.05 (C) 0.01 (D) 0.95 (E) 0.90

INF 53. A significance test was performed to test the null hypothesis
Ho: 𝜇 = 2 versus the alternative hypothesis Ha: 𝜇 ≠ 2. The value of the test statistic
is z = 1.40. The P-value for this test is approximately:

(A) 0.16 (B) 0.84 (C) 0.003 (D) 0.92 (E) 0.42

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 MBA Statistics
Inference (INF)

INF 54. Packages of frozen peas are supposed to have a mean weight of 10 oz. The
manufacturer wishes to detect either too Iowa mean weight (which is illegal) or too
high a weight (which reduces profit) Experience shows that the weights have a
normal distribution and that the standard deviation of the population of weights is 𝜎
= 0.5 oz. even when the mean changes. The appropriate null, Ho and alternative, Ha
hypotheses for the manufacturer's problem would be:

(A) Ho: 𝜇 = 10 oz Ha: 𝜇 < 10 oz

(B) Ho: 𝜇 ≤ 10 oz Ha: 𝜇 > 10 oz
(C) Ho: 𝜇 = 𝑥 Ha: 𝜇 ≠ 𝑥
(D) Ho: 𝑥 = 10 oz Ha: 𝑥 ≠ 10 oz
(E) Ho: 𝜇 = 10 oz Ha: 𝜇 ≠ 10 oz

INF 55. An air-driven tool for tightening bolts in car engine assembling is supposed
to apply 200 foot-pounds of torque to the bolts. If more torque or less torque is
applied, engine problems will result. An inspector randomly selects 81 bolts and
manually determines the amount of torque applied to these 81 bolts to have
averaged 197 foot-pounds. The inspector conducts a 5% significance test to
determine if the tool is operating properly. The standard deviation for the torque
delivered by the tool is 15 foot-pounds. The P-value for this situation is:

(A) 0.9641 (B) 0.0359 (C) 0.0500 (D) 0.0718 (E) 0.9282

INF 56. An agronomist wishes to test the claim that a variety of alfalfa hay bas mean
cellulose content of 140 mg/g. The agronomist suspects that the content is higher
than this. Suppose that cellulose content is normally distributed and has 𝜎 = 8 mg/g.
A sample of 12 plots of the hay yielded mean cellulose content x = 145 mg. The P-
value (observed level of significance) of the test statistic is:

(A) 0.266
(B) 0.015
(C) greater than 0.1
(D) between 0.05 and 0.025
(E) 0.485

13
 MBA Statistics
Inference (INF)
INF 57. Suppose you are interested in conducting the statistical test of:

Ho : 𝜇 = 200 against Ha: 𝜇 > 200

You have decided to use the following decision rule: Reject Ho if the mean of a
random sample of 100 items is more than 212. Assume that the standard deviation
of the population is 80. Find 𝛼, the probability of a type I error.

(A) 0.4332 (B) 0.3849 (C) 0.0668 (D) 0.1151 (E) 0.9332

INF 58. Find the critical value for the following z interval in computer output.

z-interval of Individual 𝜇′𝑠

Sigma = 6.50
Individual Confidence 80.00%
Bounds: Lower Bound < 𝜇 < Upper Bound

With 80% Confidence, 23.409208 < 𝜇(MPG) < 26.111845



(A) 2.33 (B) 1.96 (C) 1.64 (D) 1.28 (E) 0.84

INF 59. A significance test was performed to test the null hypothesis Ho: 𝜇 = 2
versus the alternative Ha: 𝜇 ≠ 2. The calculated value of the test statistic is z = 1.40.
The P-value for this test is approximately

(A) 0.1616 (E) 0.0808 (C) 0.0030 (D) 0.9217 (E) 0.7014

INF 60. Water is used for cooling in a power plant Samples are taken from this water
as it is discharged into a river. It is known that as long as the mean temperature of
the discharged water is at most 150°F, there will be no negative effect on the river's
ecosystem. A scientist investigates whether the plant is in compliance with
regulations that prohibit a mean discharge water temperature above 150°F. He
takes 50 water samples at randomly selected times and records the temperature of
each sample. The sample temperatures have a mean of 157°F. The appropriate
hypotheses are:

(A) Ho: µ = 150 Ha: µ > 150
(B) Ho: µ = 150 Ha: µ < 150
(C) Ho: µ = 150 Ha: µ ≠150
(D) Ho: x = 150 Ha: x >150
(E) Ho: x = 150 Ha: x ≠150

14
 MBA Statistics
Inference (INF)
INF 61. A geneticist weighed 28 female lambs at birth. The birth weights, in
kilograms, arc:

4.3, 5.2, 6.2, 6.7, 5.3, 4.9, 4.7, 5.5, 5.3, 4.0, 4.9, 5.2, 4.9, 5.3,
5.4, 5.5, 3.6, 5.8, 5.6, 5.0, 5.2, 5.8, 6.1, 4.9, 4.5, 4.8, 5.4, 4.7

The following is computer output for a 95% confidence interval for , the average
birth weight of a female lamb:

z-interval of Individual 𝜇′𝑠

Sigma = 0.05

Individual Confidence 95.00%

Bounds: Lower Bound < 𝜇 < Upper Bound

With 95% Confidence, 5.1493372 < 𝜇 (Birthweights) < 5.1863771



If we were to test that the true mean birth weight was 5.15 kilograms versus that
the mean birth weight is not 5.15 kilograms at 𝛼 = 0.05 we would:

(A) reject Ho because 5.15 does not fall into our confidence interval
(B) do not reject Ho because 5.15 falls into our confidence interval
(C) do not reject Ho because 5.15 does not fall into our confidence interval
(D) reject Ho because 5.15 falls into our confidence interval
(E) can not answer because not enough information is given

INF 62. The university uses thousands of fluorescent light bulbs each year. The
brand of bulb it currently uses has a mean life of 900 hours. A manufacturer claims
that its new brand of bulbs, which cost the same as those the university currently
uses, has a mean life of more than 900 hours and a standard deviation, 𝜎 = 80 hours.
The university has decided to purchase the new brand if, when tested, the test
evidence supports the manufacturer's claim at the 𝛼 = 0.05 significance level.
Suppose 64 bulbs were tested and their mean life was x = 920 hours. Based on
these findings:

(A) the university will not purchase the new brand of bulb as the P-value is 0.0228
(B) the university will not purchase the new brand of bulb as the P-value is 0.0456
(C) the university will not purchase the new brand of bulb as the P-value is 0.4772
(D) the university will purchase the new brand of bulb as the P-value is 0.0228
(E) the university will purchase the new brand of bulb as the P-value is 0.0456

15
 MBA Statistics
Inference (INF)
INF 63. The Department of Agriculture would like to estimate the average yield of a
new variety of com per acre for farms in the south west. It is desired that the
final estimate be within 5 bushels per acre of the mean yield. Due to cost restraints,
a sample of no more than 65 plots of one acre ground containing the new variety of
corn can be obtained. Assume 𝜎 = 17 bushels per acre. What is (approximately) the
maximum confidence level that could be attained for a confidence interval that
meets the Agriculture Department's specification?

(A) 0.95 (B) 0.90 (C) 0.97 (D) 0.98 (E) 0.99

INF 64. Suppose a mathematics test score X is approximately N (𝜇, 𝜎 = 100). A test
given to 500 seniors yields a mean score of 461. You wish to test the null hypothesis
of Ho: 𝜇 = 450 against the alternative hypothesis of Ha: 𝜇 > 450. What is the P-value
for such a test?

(A) 0.9931 (B) 0.0069 (C) .0.0138 (D) 0.9862

(E) There is insufficient information to solve this problem.

INF 65. Consider the following output from a computer package for a hypothesis
concerning the fuel efficiency (miles per gallon) of 38 new automobiles.

z-Test of Individual 𝜇′𝑠
Sigma = 6.50
Individual Confidence 0.10
Ho: 𝜇 = 23 Ha: 𝜇 ≠23

MPG
Test Ho: 𝜇 (MPG) = 23 vs. Ha: 𝜇 (MPG) ≠23
Sample Mean = 24.760526 z-Statistic = 1.670
Reject Ho at Alpha = 0.10
p=0.0950




The 90% confidence interval for the population mean based on the above
information is

(A) [23.4,26.1] (B) [23.0,26.5] (C) [22.7,26.8] (D) [22.0,27.5] (E) [21.6,27.9]

16
 MBA Statistics
Inference (INF)
INF 66. Which of the following statements regarding hypothesis testing is true?

(A) It is not possible to conduct a hypothesis test for the mean if the population
variance is unknown.
(B) It is not possible to conduct a hypothesis test for the mean if the population
isn't normally distributed.
(C) It is not possible to conduct a hypothesis test for the median if the population
isn't normally distributed.
(D) It is not possible to conduct a hypothesis test for the mean from a haphazard
sample.
(E) It is not possible to conduct a hypothesis test for the mean from a simple
random sample of size 10 taken from a normal population.

INF 67. Which of the following is not a correct statement of a null hypothesis?

(A) The two samples were drawn from the same distribution.
(B) The two samples were drawn from the populations which have a mean
difference of 2 units.
(C) The difference between the sample means is zero.
(D) The mean I.Q. of the population is 106.
(E) The proportion of Liberals among registered voters is 0.51.

INF 68. Random samples are taken of adult women in a region (sample 1) and of
adult women in Nova Scotia (sample 2). The heights of the women are measured in
inches and the sample results are summarized as follows:

Sample 1 2
Size 120 150
Mean 62.7 61.8
s.d. 2.50 2.62

In order to see whether there is a difference between the mean heights of adult
women in Region 1 and in Region 2, the hypotheses that we wish to test are

(A) Ho: µ1 = µ2 Ha: µ1 < µ2
(B) Ho: µ1 = µ2 Ha: µ1 ≠ µ2
(C) Ho: µ1 = µ2 Ha: µ1 > µ2
(D) Ho: y1 = y2 Ha: y1 ≠ y2
(E) Ho: y1 = y2 Ha: y1 > y2

17
 MBA Statistics
Inference (INF)
INF 69. A physician compares the blood pressures of four patients before and after
treatment with a drug. The blood pressures are as follows:

PATIENT BEFORE DRUG AFTER DRUG

1 161 140
2 158 148
3 170 150
4 155 140

The physician is interested in testing for a difference in mean blood pressure before
and after treatment with the drug. The absolute value for the test statistic t, is:

(A) 3.2569 (B) 3.7607 (C) 3.9537 (D) 5.0660 (E) 6.5137

INF 70. Refer to the above question. In order to use the t-table to test for significance
of the test statistic, we must assume

(A) independence of the two blood pressure measurements.

(B) equality of population variances for the two sets of measurements.
(C) equality of sample variances for the two sets of measurements.
(D) that the population of differences is normal.
(E) that the population has a t distribution.

INF 71. A statistics professor would like to determine whether students in higher
class showed improved performance on the final examination as compared to the
mid-term examination. A random sample of 4 students selected from a large class
revealed the following mid-term and final scores:

Student #1 #2 #3 #4
Mid-term 70 62 57 68
Final 80 79 87 88

Making the appropriate assumptions, the value of the test statistic is:

19.25 19.25 19.25 19.25 4.15

(A) (B) (C) (D) (E)
8.3 4.15 16.6 1 1 19.25
8.3 +
4 4

INF 72. Following the analysis of some data on two samples drawn from populations
in which the variable of interest is normally distributed, the P-value for the
comparison of the two sample means under the null hypothesis that the two
population means are equal, Ho: 𝜇! = 𝜇! against Ha: 𝜇! ≠ 𝜇! was found to be
0.0063. This P-value indicates that:

(A) there is very little evidence in the data for a conclusion to be reached.
(B) there is rather strong evidence against the null hypothesis.
(C) the evidence against the null hypothesis is not strong.
(D) the null hypothesis should be accepted.
(E) there is rather strong evidence against the alternative hypothesis.

18
 MBA Statistics
Inference (INF)
INF 73. Independent random samples from normal populations with the same
variance gave the following results:

To test the null hypothesis of the equality of the means of the two populations, the
appropriate test statistic is:

Sample n Average (x ) Variance (s2)

1 10 37 21
2 6 31 42

To test the null hypothesis of the equality of the means of the two populations, the
appropriate test statistic is:

37−31 37−31 37−31
(A) (B) (C)
21 42 9(21)+5(42) 21 42
+ +
10 6 14 9 5

37−31 37−31
(D) (D)
9(21)+5(42) " 1 1 % 9(21)+5(42) " 1 1 %
$ + ' $ + '
14 # 10 6 & 12 # 9 5&

INF 74.

The following are the percentages of alcohol found in samples of two brands of beer:

Brand A 5.4 5.6 5.7 5.2

Brand B 4.9 5.3 5.5 5.2

Suppose that we are interested in testing the hypothesis that the average
percentages of alcohol in the two brands of beer are the same. One can use the
following test procedure:

(A) Paired t-test with 3 degrees of freedom.

(B) Paired t-test with 6 degrees of freedom.
(C) Two sample t-test with 7 degrees of freedom.
(D) Two sample t-test with 8 degrees of freedom.
(E) Two sample t-test with 6 degrees of freedom.

19
 MBA Statistics
Inference (INF)
INF 75. A statistic used to estimate a parameter is unbiased if:

(A) it equals the population parameter.

(B) it gets closer and closer to the population parameter as the sample size increases
indefinitely.
(C) the average of the value of the statistic calculated from 50 samples is equal to
the population parameter.
(D) the average of the value of the statistic calculated from 500 samples is equal to
the population parameter.
(E) the mean of the sampling distribution of the statistic is equal to the true value of
the parameter being estimated.

INF 76. The blood sugar levels of 7 rabbits are measured 90 minutes after injection
of 0.8 units of insulin. The data following are in mg/100 ml.

45 34 32 48 39 45 51

Assuming that the distribution of the blood sugar level is normal, a 95% confidence
interval for the mean blood sugar level, for the population of rabbits from which
these 7 rabbits were randomly selected, is 90 minutes after insulin injection is:

(A) 42 ± 1.96 (2.708)

(B) 42 ± 2.447 (2.708)
(C) 42 ± 1.96 (19.402)
(D) 42 ± 2.447 (19.402)
(E) 42 ± 2.365 (2.708)

INF 77. What does the size of the margin of error that is associated with an estimate
in a confidence interval depend on?

(A) the sample size.

(B) the confidence level.
(C) the population standard deviation.
(D) the population mean.
(E) (A), (B) and (C) but not (D).

INF 78. The statement that "(125, 145) is a 95% confidence interval for the average
number of hours. Statistics students spent in studying for the final exam" means
that:

(A) P(125 < µ < 145)= 0.95

" X −µ %
(B) P $$125 < < 145'' = 0.95
# σ n &
(C) 95 intervals out of 100 such intervals for 𝜇 will contain the value of 𝜇.
(D) 95 intervals out of 100 such intervals for x will contain the value of x .
(E) this is just one of a large number of such intervals; 95% of them will contain 𝜇.

20
 MBA Statistics
Inference (INF)
INF 79. Will's blood pressure varies over time. To estimate his average blood
pressure he takes the following daily readings for a week:

127, 120, 101, 135, 152, 153, 132

The statistics reported in computed output are:

Mean 131.4286
Std Dev 18.1554
Std Error Mean 6.8621
Upper 95% Mean 148.2195
Lower 95% Mean 114.6376
N 7.0000
Sum Weights 7.0000

After reviewing this information, he is concerned that the margin of error for the
above confidence interval is too wide. To address his concerns, the best course of
action among those given below is:

(A) increase the t value.

(B) increase the sample size.
(C) increase the variability of his blood pressure.
(D) (A) and (B).
(E) (A) and (C).

INF 80. If we test the null hypothesis Ho: 𝜇 = 5 against the alternative hypothesis
Ha: 𝜇 = 5 and find a P-value of 0.03, then

(A) we reject Ho at level 𝛼 = 0.05.

(B) we reject Ho at level 𝛼 = 0.025.
(e) we fail to reject Ho at level 𝛼 = 0.10.
(0) we fail to reject Ho at level 𝛼 = 0.8.
(E) None of the above.

INF 81. A certain machine produces on the average 12.3 units/hour. An expensive
new machine is being considered as a replacement. It is felt that an added expense is
justified if the new machine can average more than 13 units/hour. To make a
decision regarding the change, 25 new machines were used for one hour. Their
average yield is 13.6 units/hour with a standard deviation of 1.5 units/hour. If the
decision concerning the adoption of the new machine is to be made solely on the
basis of its average hourly production, then we should test:

(A) Ho: 𝜇 = 12.3 vs. Ha: 𝜇 > 12.3

(B) Ho: 𝜇 = 12.3 vs. Ha: 𝜇≠12.3
(C) Ho: 𝜇 = 13 vs. Ha: 𝜇≠13
(D) Ho: 𝜇 = 13 vs. Ha: 𝜇 > 13
(E) Ho: 𝜇 = 13 vs. Ha: 𝜇 < 13

21
 MBA Statistics
Inference (INF)
INF 82. Let X have a normal distribution with an unknown mean 𝜇 and a standard
deviation 𝜎 = 40. We want to test Ho: 𝜇 = 200, vs. Ha: 𝜇 > 200, based on n = 64 and
the sample mean x = 210. The P-value of this test is:

(A) 0.9772
(B) 0.4772
(C) 0.0456
(D) 0.0228
(E) 0.5000

INF 83. In a test of hypotheses, how should the level 𝛼 be chosen if we want very
strong evidence against the null hypothesis Ho before rejecting it?

(A) very small.

(B) very large.
(C) smaller than the P-value.
(D) larger than the P-value.
(E) none of these.

INF 84. A random sample of 16 measurements is taken from a normal distribution
with unknown mean 𝜇 and a standard deviation of 𝜎 = 10. A 95% confidence
interval for 𝜇 is calculated from this sample as (95.1, 104.9). Based on these
information to test Ho: 𝜇 = 96 vs. Ha: 𝜇≠96 at 5% level, we

(A) fail to reject Ho because the test level is only 5%.

(B) reject Ho because 𝜇 = 96 is inside the confidence interval.
(C) reject Ho because the test level is 5%.
(D) fail to reject Ho because 𝜇 = 96 is inside the confidence interval .
(E) cannot make decision because we don't have enough information.

INF 85. Consider the following statistics output:

Test Mean = value

Hypothesized Value 50
Actual Estimate 46.3333

t Test
Test Statistic –2.3723
Prob > 𝑡 0.0451
Prob > t 0.9775
Prob < t 0.0225

To test Ho: 𝜇 = 50 vs. Ha: 𝜇 ≠ 50 at the 3% level, from this analysis, we

(A) fail to reject Ho because the P-value is 0.0225 which is < 0.03.
(B) fail to reject Ho because the P-value is 0.0451 which is > 0.03.
(C) reject Ho because the P-value is 0.0451 which is > 0.03.
(D) reject Ho because the P-value is 0.0225 which is < 0.03.
(E) can't make decision because the P-value is not given.

22
 MBA Statistics
Inference (INF)
INF 86. A limnologist wishes to estimate the mean phosphate content
(nanomole/liter) in lake water. It is known from studies in previous years that the
standard deviation is fairly stable, 𝜎 = 4 nanomole/liter. How many water samples
must the limnologist analyze to be 90% certain that the margin of error does not
exceed 0.8 nonomole/liter?

(A) 68 (B) 41 (C) 17 (D) 9 (E) 96

INF 87. The Sweet Stuff Sugar Factory's 5 kg sugar package production process has a
mean of 5.05 kg and a standard deviation of 0.0333 kg. Once per hour they take a
sample of 4 packages and use these to produce an 𝑥 control chart. What are the
lower control limit, center line and upper control
limit?

(A) 4.95, 5.0, 5.05

(B) 5.00, 5.05, 5.10
(C) 4.9, 5.0, 5.1
(D) 4.95, 5.05, 5.15
(E) not within ±0.0l of any of the above

INF 88. Cholesterol levels in a particular population are assumed to follow a normal
distribution with a known standard deviation of 𝜎 = 32 mg/dl. The population mean
𝜇 is unknown, and you plan to estimate 𝜇 based on a random sample from the
population. You would like your estimate of 𝜇 to have a margin of error of 5 mg/dl
with 95% confidence. What size of sample is required?

(A) 158 (B) 13 (C) 28 (D) 30 (E) 111

INF 89. A sample of 30 packages of candy is selected and the number of candies in
each package is counted. A 90% confidence interval for the mean number of candies
per package is constructed and found to have a lower end of 56.2 and an upper end
of 58.9. This means that

(A) approximately 90% of the packages in the sample have between 56.2 and 58.9
candies.
(B) approximately 90% of the packages in the population have between 56.2 and
58.9 candies.
(C) If we were to repeat this process over and over again, then approximately 90%
of the sampled bags would contain between 56.2 and 58.9 candies.
(D) If we were to repeat this process over and over again, then approximately 90%
of the sample means would fall between 56.2 and 58.9.
(E) If we were to repeat this process over and over again, then approximately 90%
of the constructed confidence intervals would contain the mean number of
candies per package for the population.

23
 MBA Statistics
Inference (INF)
INF 90. Boxes of breakfast cereal have "525 grams (net)" on the label. The quality
control supervisor selects 9 boxes at random and weighs the· contents. She finds
that the average net weight of the 9 boxes is 522.5 grams and the standard deviation
of the 9 net weights is 5.2 grams. The quality control inspector wishes to see
whether she has sufficient evidence to conclude that the average net weight of boxes
of this type is less than 525 grams. The alternative hypothesis is:

(A) 𝜇 ≠ 525 (B) 𝜇 < 525 (C) 𝑥 ≠ 525 (D) 𝑥 < 525 (E) 𝑥 > 525

INF 91. If the P-value is small, then

(A) there is strong evidence in favor of the null hypothesis.

(B) we cannot distinguish between the null and alternative hypothesis.
(C) there is weak evidence in favor of the alternative hypothesis.
(D) there is strong evidence against the null hypothesis.
(E) there is weak evidence against the alternative hypothesis.

INF 92. In a test of Ho: 𝜇 = 20 against Ha: 𝜇 > 20, with 𝜎 known, the value of the test
statistic is z = 2.40. Thus the P-value is equal to:

(A) 0.0050 (B) 0.9918 (C) 0.0041 (D) 0.0164 (E) 0.0082

INF 93. It is known that the tar contents of cigarettes of a particular brand follow a
normal distribution with standard deviation 𝜎 = 0.3. Under normal conditions the
mean tar content is 𝜇 = 14.1 mg/cig (milligrams of tar per cigarette). However,
changes in the composition of the tobacco and changes in the processing methods
sometimes cause the mean tar content to shift. Suppose that, on a particular day, an
SRS of five cigarettes yields the following results: 14.5, 14.2, 14.4, 14.8 and 14.1
mg/cig, and the associated computer output is as follows:

Test Mean = value

Hypothesized Value 14.1
Actual Estimate 14.4
Using std dev of 0.3

t Test
Test Statistic 2.2361
Prob > 𝑡 0.0253
Prob > t 0.0127
Prob < t 0.0225

(A) fail to reject Ho because the P-value is 0.0253, which is < 0.05.
(B) fail to reject Ho because the P-value is 0.0127, which is < 0.05.
(C) reject Ho because the P-value is 0.0253, which is < 0.05.
(D) reject Ho because the P-value is 0.0127, which is < 0.05.
(E) fail to reject Ho because the P-value is 0.9873, which is > 0.05.

24
 MBA Statistics
Inference (INF)
INF 94. A sprinter runs the 100 yard dash on 4 separate occasions. Her times have
mean 11 seconds and standard deviation 0.2 seconds. What is the standard error of
the mean?

(A) 0.10 (B) 20 (C) 2.75 (D) 0.05 (E) 0.32

INF 95. To assess the accuracy of a laboratory scale, a "standard" 20 gram weight is
repeatedly weighed. If the scale has no bias, then the average weight should be 20
grams in the long run. Suppose you weigh the weight 9 times and obtain a mean
weight of 19.997 and a standard deviation of 0.003. What is the P-value for testing
Ho: 𝜇 = 20 against Ha: 𝜇 ≠ 20?

(A) between 0.005 and 0.01

(B) between 0.01 and 0.02
(C) between 0.025 and 0.05
(D) between 0.05 and 0.10
(E) less than 0.01

INF 96. An SRS of 5 packages of sesame seeds gave net weights of 66, 63, 64, 62, and
65 grams. Assuming that the distribution of net weights is normal, a 95% confidence
interval for the population mean net weight is given by:

(A) 64 ± 2.776 (0.5811)

(B) 64 ± 1.960 (0.7071)
(C) 64 ± 2.571 (0.7071)
(D) 64 ± 2.571 (1.5811)
(E) 64 ± 2.776 (0.7071)

INF 97. In the problem above, Fertilizer A is the standard. Thus, the researcher will
continue to recommend that Fertilizer A be used unless there is convincing evidence
that another fertilizer produces higher average yields. In carrying out the
appropriate t-test in this problem:

(A) the null hypothesis is that Fertilizer B is better, and the appropriate t-test has 19
degrees of freedom.
(B) the alternative hypothesis is that Fertilizer B is better, and the appropriate t-test
has 19 degrees of freedom.
(C) the null hypothesis is that Fertilizer B is better, and the appropriate t-test has 9
degrees of freedom.
(D) the alternative hypothesis is that Fertilizer B is better, and the appropriate t-test
has 9 degrees of freedom.
(E) the null hypothesis is that Fertilizer B is better, and the appropriate t-test has 10
degrees of freedom.

25
 MBA Statistics
Inference (INF)
INF 98. The following was obtained from computer output:

Test Mean = value
Hypothesized Value 50
Actual Estimate 46.3333

t Test
Test Statistic –2.3723
Prob > 𝑡 0.0451
Prob > t 0.9775
Prob < t 0.0225

To test Ho : 𝜇 = 50 vs. Ha : 𝜇 ≠ 50 at the 3% level, from this analysis, we

(A) fail to reject Ho because the P-value is 0.0225 which is < 0.03.
(B) fail to reject Ho because the P-value is 0.0451 which is > 0.03.
(C) reject Ho because the P-value is 0.0451 which is > 0.03.
(D) reject Ho because the P-value is 0.0225 which is < 0.03.
(E) can't make decision because the P-value is not given.

26
 MBA Statistics
Inference (INF)
Answers

1) B 34)C 67)C
2) A 35)D 68)B
3) D 36)B 69)E
4) D 37)E 70)D
5) D 38)C 71)B
6) C 39)C 72)B
7) E 40)D 73)D
8) B 41)C 74)E
9) E 42)C 75)E
10)D 43)C 76)B
11)B 44)D 77)E
12)B 45)E 78)E
13)E 46)D 79)B
14)A 47)A 80)A
15)C 48)C 81)D
16)B 49)E 82)D
17)C 50)D 83)B
18)B 51)B 84)D
19)E 52)B 85)B
20)E 53)A 86)B
21)E 54)E 87)B
22)A 55)D 88)A
23)C 56)B 89)E
24)C 57)C 90)B
25)D 58)D 91)D
26)C 59)A 92)E
27)A 60)A 93)C
28)D 61)B 94)A
29)D 62)D 95)B
30)A 63)D 96)E
31)E 64)B 97)D
32)D 65)B 98)B
33)D 66)D

27