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Final 15 December, questions and answers

Statistics for Business (Trường Đại học Kinh tế Thành phố Hồ Chí Minh)

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Final test (SB)

28. Which of the following statements is correct?

A. A parameter is a measure that is calculated from a


sample.
B. Statistics is the science of collecting, organizing, analyzing, interpreting, and
presenting data.
C. For day-to-day business data analysis, most firms rely on a large staff of
expert statisticians.
D. A statistical test result that is significant also has practical
importance.

Check definitions (parameter, sample, statistics, pitfalls) and uses of statistics.

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Final test (SB)

29. Which is least likely to be an application where statistics will be useful?

A. Predicting whether an airfare is likely to


rise or fall
B. Designing the most desirable features for a
ski pass
C. Deciding whether offering Rice Krispies improves
restaurant sales
D. Choosing the wording of a corporate policy prohibiting
smoking

Policy wording is probably up to writers.

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Final test (SB)

30. Because 25 percent of the students in my morning statistics class watch eight or more
hours of television a week, I conclude that 25 percent of all students at the university
watch eight or more hours of television a week. The most important logical weakness
of this conclusion would be:

A. relying on any sample instead of surveying every


student.
B. using a sample that may not be representative of all
students.
C. failing to correct for unconscious
interviewer bias.
D. assuming cause and effect where none
exists.

Generalizing from a nonrandom sample is risky.

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Final test (SB)

31. Which of the following is not a characteristic of an ideal statistician?

A. Technically current (e.g.,


software)
B. Communicates well (both written
and oral)
C. Advocates client's
objectives
D. Can deal with imperfect
information

There is an unattractive name for a consultant who always agrees with the client.

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Final test (SB)

32. Which of the following statements is not true?

A. Statistics helps refine theories through ongoing


hypothesis testing.
B. Statistics is the science of collecting, organizing, analyzing, interpreting, and
presenting data.
C. Estimating parameters is an important aspect of
descriptive statistics.
D. Statistical challenges include imperfect data and practical
constraints.

Estimating a population parameter is an inference.

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Final test (SB)

33. Which is not a practical constraint facing the business researcher or data analyst?

A. Time and money are always


limited.
B. The world is no laboratory, so some experiments are
impractical.
C. Research on human subjects is fraught with danger and
ethical issues.
D. Survey respondents usually will tell the truth if well
compensated.

Paid respondents may try to tell you what you want to hear.

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Final test (SB)

34. Which is not an essential characteristic of a good business data analyst?

A. Effective
writer
B. Stays current on
techniques
C. Has a Ph.D. or master's degree in
statistics
D. Can deal with imperfect
information

No advanced degree is needed for basic statistics, which is why all business students
study it.

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Final test (SB)

35. An ethical statistical consultant would not always:

A. follow accepted statistical


procedures.
B. support management's desired
conclusions.
C. acknowledge sources of financial
support.
D. report limitations of the
data.

There is a nasty name for a consultant who always agrees with management.

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Final test (SB)

36. The NASA experiences with the Challenger and Columbia disasters suggest that:

A. statistics is not applicable to space


endeavors.
B. limited data may still contain
important clues.
C. good engineers can eliminate risks in
space flight.
D. space flight is only slightly more risky than commercial
air travel.

When small samples are all that we have, we must study them carefully.

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Final test (SB)

37. Which is not a goal of the ethical data analyst?

A. To be an honest broker of
data
B. To learn to downplay inconvenient
data
C. To understand the firm's code of ethics (or help
create one)
D. To look for hidden agendas in data
collection

We do not ignore data unless it is an actual error.

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Final test (SB)

38. Which of the following statements is not true?

A. A statistic is a single measure (usually numerical) that is calculated


from a sample.
B. Statistics is the science of collecting, organizing, analyzing, interpreting, and
presenting data.
C. For day-to-day business data analysis, most firms rely on a large staff of
expert statisticians.
D. A statistical test may be significant yet have no practical
importance.

Few firms have staffs of statistics experts, so all of us need to know the basics.

39. "Smoking is not harmful. My Aunt Harriet smoked, but lived to age 90." This best
illustrates which fallacy?

A. Unconscious
bias
B. Significance versus practical
importance
C. Post hoc
reasoning
D. Small sample
generalization

Individual cases sometimes violate causation.

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Final test (SB)

40. Which best illustrates the distinction between statistical significance and practical
importance?

A. "In 2006, 240 out of 400 statistics students at Oxnard Technical College sold their
textbooks at the end of the semester, compared with 220 out of 330 students in
2005, a significant decrease."
B. "Our new manufacturing technique has increased the life of the 80 GB USB
AsimoDrive external hard disk significantly, from 240,000 hours to 250,000 hours."
C. "In 50,000 births, the new vaccine reduced the incidence of infant mortality in
Morrovia significantly from 14.2 deaths per 1000 births to 10.3 deaths per 1000
births."
D. "The new Sky Penetrator IV business jet's cruising range has increased significantly
from 3,975 miles to 4,000 miles."

Consumers would not notice because 240,000 hours is 27 years.

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Final test (SB)

41. "Circulation fell in the month after the new editor took over the newspaper Oxnard
News Herald. The new editor should be fired." Which is not a serious fallacy in this
conclusion?

A. Generalizing from a small


sample
B. Applying post hoc
reasoning
C. Failing to identify
causes
D. Using a biased
sample

There is no real sample, just shaky logical inferences.

42. An ethical data analyst would be least likely to:

A. check data for


accuracy.
B. cite his/her data sources and their
limitations.
C. acknowledge sources of financial
support.
D. rely on consultants for all
calculations.

When you farm out your calculations, you have lost control of your work.

43. "Tom's SUV rolled over. SUVs are dangerous." This best illustrates which fallacy?

A. Unconscious
bias
B. Significance versus practical
importance
C. Post hoc
reasoning
D. Small sample
generalization

One instance proves little.

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Final test (SB)

51. Which variable is least likely to be regarded as ratio data?

A. Length of time required for a randomly chosen vehicle to cross a toll


bridge (minutes)
B. Weight of a randomly chosen student
(pounds)
C. Number of fatalities in a randomly chosen traffic disaster
(persons)
D. Student's evaluation of a professor's teaching
(Likert scale)

Likert scales have no true zero.

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Final test (SB)

59. Automobile exhaust emission of CO2 (milligrams per mile) is ____________ data.

A. nomin
al
B. ordin
al
C. interv
al
D. rati
o

True zero exists.

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Final test (SB)

60. Your rating of the food served at a local restaurant using a three-point scale of 0 =
gross, 1 = decent, 2 = yummy is ___________ data.

A. nomin
al
B. ordin
al
C. interv
al
D. rati
o

Only rankings implied (not equal scale distances).

61. The number of passengers "bumped" on a particular airline flight is ____________


data.

A. nomin
al
B. ordin
al
C. interv
al
D. rati
o

True zero exists (no passengers might be bumped).

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Final test (SB)

62. Which should not be regarded as a continuous random variable?

A. Tonnage carried by a randomly chosen oil


tanker at sea
B. Wind velocity at 7 o'clock this
morning
C. Number of personal fouls by the Miami Heat in
a game
D. Length of time to play a Wimbledon tennis
match

Counting things yields integer (discrete) data.

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Final test (SB)

63. Which of the following is not true?

A. Categorical data have values that are described by words rather


than numbers.
B. Categorical data are also referred to as nominal or
qualitative data.
C. The number of checks processed at a bank in a day is
categorical data.
D. Numerical data can be either discrete or
continuous.

The "number of" anything is a discrete numerical variable.

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Final test (SB)

64. Which of the following is true?

A. The type of charge card used by a customer (Visa, MasterCard, AmEx) is


ordinal data.
B. The duration (minutes) of a flight from Boston to Minneapolis is
ratio data.
C. The number of Nobel Prize-winning faculty at Oxnard University is
continuous data.
D. The number of regional warehouses owned by Jankord Industries is
ordinal data.

True zero exists (not observable, but as a reference point), so ratios have meaning.

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Final test (SB)

65. Which statement is correct?

A. Judgment sampling is preferred to systematic


sampling.
B. Sampling without replacement introduces bias in our estimates of
parameters.
C. Cluster sampling is useful when strata characteristics are
unknown.
D. Focus groups usually work best without a
moderator.

Review the characteristics of each sampling method.

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Final test (SB)

68. Which statement is false?

A. Random dialing phone surveys have low response and are poorly
targeted.
B. Selection bias means that many respondents dislike the
interviewer.
C. Simple random sampling requires a list of the
population.
D. Web surveys are economical but suffer from
nonresponse bias.

Selection bias occurs when respondents are atypical.

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Final test (SB)

72. Professor Hardtack chose a sample of 7 students from his statistics class of 35
students by picking every student who was wearing red that day. Which kind of
sample is this?

A. Simple random
sample
B. Judgment
sample
C. Systematic
sample
D. Convenience
sample

Quick but may not be representative of all students.

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Final test (SB)

39. A column chart would be least suitable to display which data?

A. Annual compensation of 500 company


CEOs
B. U.S. exports to its six largest trading
partners
C. Exxon-Mobil's quarterly sales for the last
four years
D. One-year CD interest rates paid by the eight largest
U.S. banks

With 500 data values, a column chart would reveal little. Make a histogram instead.

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Final test (SB)

40. A line chart would not be suitable to display which data?

A. U.S. oil imports from OPEC nations for the last


20 years
B. Annual compensation of the top 50
CEOs
C. Exxon-Mobil's quarterly sales data for the last
five years
D. Daily stock market closing prices of Microsoft for the
past month

Line charts are for time series data (not cross-sectional data).

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Final test (SB)

41. Which is not a tip for effective column charts?

A. Time usually goes on the


horizontal axis.
B. Column height should be proportional to the quantity
displayed.
C. Label data values at the top of each column unless graphing
lots of data.
D. The nonzero origin rule may be waived for financial
reports.

Especially in financial reports, the zero origin rule is vital.

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Final test (SB)

42. Which is not a tip for effective line charts?

A. Line charts are better than bar charts to display cross-


sectional data.
B. Numerical labels are omitted on a line chart if there are many
data values.
C. Omit data markers (e.g., squares, triangles) when there are many
data values.
D. Thick lines make it harder to see exact data
values.

Line charts are for numerical time series data.

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Final test (SB)

43. Which is a reason for using a log scale for time series data?

A. It helps compare growth in time series of dissimilar


magnitude.
B. General business audiences find it easier to interpret a
log scale.
C. On a log scale, equal distances represent equal dollar
amounts.
D. The axis labels are usually easier to read in
log units.

Changing magnitude may become a problem unless you use a log scale.

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Final test (SB)

44. Which is a not a characteristic of pie charts?

A. Pie charts can only convey a general idea of the


data values.
B. Pie charts are ineffective when they have too
many slices.
C. Exploded and 3-D pie charts will allow more
"slices."
D. Pie chart data always represent parts of a whole (e.g.,
market share).

Pie charts with too many slices are hard to read whether 2D or 3D.

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Final test (SB)

45. Excel's pyramid charts:

A. are generally preferred to pie


charts.
B. should be avoided despite their visual
appeal.
C. are generally preferred to line
charts.
D. show trends more clearly than column
charts.

Avoid novelty charts in business presentations. They are fun but unclear.

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Final test (SB)

46. Which is not a reason why pie charts are popular in business?

A. They can convey a general idea of the data to a nontechnical


audience.
B. They can display major changes in parts of a whole (e.g.,
market share).
C. They are more precise than line charts, despite their low
visual impact.
D. They can be labeled with data values to facilitate
interpretation.

Pie charts are attractive, but can be hard to read precisely.

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Final test (SB)

47. Which data would be suitable for a pie chart?

A. Whirlpool Corporation's sales revenue for the last


five years
B. Oxnard University student category (undergraduate,
masters, doctoral)
C. Average SAT scores for entering freshmen at 10 major U.S.
universities
D. U.S. toy imports from China over the past
decade

Pie charts are only for parts of a whole.

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Final test (SB)

48. Which data would be suitable for a pie chart?

A. Percent vote in the last election by party (Democrat,


Republican, Other)
B. Retail prices of six major brands of color laser
printers
C. Labor cost per vehicle for 10 major world
automakers
D. Prices paid by 10 students for their accounting
textbooks

Pie charts are only for parts of a whole.

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Final test (SB)

49. Which data would be suitable for a pie chart?

A. Average starting salary of MBA graduates from six ivy-league


universities
B. APR interest rates charged by the top five U.S.
credit cards
C. Last semester's average GPA for students in seven majors in a
business school
D. The number of U.S. primary care clinics by type (urban,
suburban, rural)

Pie charts are only for parts of a whole.

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Final test (SB)

50. Scatter plots are:

A. useful in visualizing trends over


time.
B. useful in identifying causal
relationships.
C. often fitted with a linear equation in
Excel.
D. applicable mainly to discrete
data.

Excel makes it easy to fit a trend.

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Final test (SB)

51. Which is not a characteristic of an effective summary table?

A. The main point should be clear within 10


seconds.
B. Data to be compared should be displayed in rows, not
columns.
C. Data should be rounded to three or four
significant digits.
D. Use space instead of lines to separate
columns.

Research suggests that side-by-side comparisons are easier.

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Final test (SB)

52. Effective summary tables generally:

A. have very detailed column headings and


footnotes.
B. round their data to three or four significant
digits.
C. use plenty of heavy vertical lines to separate the
columns.
D. have the raw data listed in a footnote for
clarity.

Too much accuracy may make it harder to assess magnitudes (e.g., 5.01873 mm and
5.02016 mm both round to 5.02 mm).

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Final test (SB)

56. We would use a pivot table to:

A. cross-tabulate frequencies of occurrence of two


variables.
B. rotate the data around a central
point.
C. establish cause-and-effect between X
and Y.
D. display the data in a 3D
scatter plot.

A pivot table shows frequency counts (or sums or averages) in a row-column format.

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Final test (SB)

57. Which is not considered a deceptive graphical technique?

A. Nonzero
origin
B. Elastic graph
proportions
C. Dramatic
title
D. Axis
demarcations

Axis demarcations are helpful on graphs with numerical scales.

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Final test (SB)

58. Which is not considered a deceptive graphical technique?

A. Undefined
units
B. 2D
graphs
C. Authority
figures
D. Distracting
pictures

2D graphs are generally acceptable.

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Final test (SB)

59. Which is the most serious deceptive graphical technique?

A. Vague
source
B. Using bold
colors
C. Nonzero
origin
D. Unlabeled data
points

A nonzero origin can distort relative size.

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Final test (SB)

60. Which is not a poor graphing technique?

A. Gratuitous
pictures
B. Labeled axis
scales
C. 3D bar
charts
D. Rotated
axis

Labeled axis scales are desirable for numerical data.

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Final test (SB)

61. Which of these deficiencies would be considered a major graphical deception?

A. Vague or unclear
source
B. Using more than one color or
font
C. Bar widths proportional to bar
height
D. Using a dramatic graph
title

The area trick occurs when bar width increases along with bar height.

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Final test (SB)

62. Which is not a characteristic of a log scale for time series data?

A. Log scales are useful when data change by an order of


magnitude.
B. The distance from 5 to 50 is the same as the distance from
50 to 500.
C. On a log scale, equal distances represent
equal ratios.
D. Log scales are generally familiar to the
average reader.

Some readers lack training to understand a simple log scale.

45. In a sample of 10,000 observations from a normal population, how many would
you expect to lie beyond three standard deviations of the mean?

A. None of
them
B. About
27
C. About
100
D. About
127

Within μ ± 3σ we would expect 99.73 percent of 10,000, or 9,973 data values.

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Final test (SB)

47. Which is not true of an outlier?

A. It is likely to be from a different


population.
B. It suggests an error in recording the
data.
C. It is best discarded to get a better
mean.
D. It is an anomaly that may tell the researcher
something.

We are reluctant to delete outliers, as they may tell us something important.

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Final test (SB)

48. Estimating the mean from grouped data will tend to be most accurate when:

A. observations are distributed uniformly within


classes.
B. there are few classes with wide
class limits.
C. the sample is not very large and bins
are wide.
D. the standard deviation is large relative to
the mean.

Many bins and uniform data distribution within bins would give a result closest to the
ungrouped mean μ.

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Final test (SB)

49. Which is true of the kurtosis of a distribution?

A. A distribution that is flatter than a normal distribution (i.e., thicker tails)


is mesokurtic.
B. A distribution that is more peaked than a normal distribution (i.e., thinner tails)
is platykurtic.
C. It is risky to assess kurtosis if the sample size is
less than 50.
D. The expected range of the kurtosis coefficient increases as n
increases.

Shape is hard to judge in small samples. The 50 is just a rule of thumb. Excel
computes kurtosis for samples of any size, but tables of critical values may not go
down below 50.

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Final test (SB)

50. Which is true of skewness?

A. In business data, positive skewness is


unusual.
B. In a negatively skewed distribution, the mean is likely to exceed
the median.
C. Skewness often is evidenced by one or more
outliers.
D. The expected range of Excel's skewness coefficient increases as
n increases.

Skewness due to extreme data values is common in business data. Right skewness is
common, which increases the mean relative to the median.

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Final test (SB)

52. Which is a correct statement concerning the median?

A. In a left-skewed distribution, we expect that the median will


exceed the mean.
B. The sum of the deviations around the median
is zero.
C. The median is an observed data value in any
data set.
D. The median is halfway between Q1 and Q3 on a
box plot.

The mean is pulled down in left-skewed data, but deviations around it sum to zero in
any data set. The median may be between two data values and may not be in the
middle of the box plot.

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Final test (SB)

53. Which statement is true?

A. With nominal data we can find the


mode.
B. Outliers distort the mean but not the standard
deviation.
C. Business and economic data are rarely skewed to
the right.
D. If we sample a normal population, the sample skewness coefficient
is exactly 0.

The mode works well for nominal data.

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Final test (SB)

54. Exam scores in a small class were 10, 10, 20, 20, 40, 60, 80, 80, 90, 100, 100. For this
data set, which statement is incorrect concerning measures of center?

A. The median is
60.00.
B. The mode is not
helpful.
C. The 5 percent trimmed mean would be
awkward.
D. The geometric mean is
35.05.

To find the geometric mean, multiply the data values and take the 11 th root to get G =
41.02. Outliers affect both the mean and the standard deviation. There are multiple
modes in this example.

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Final test (SB)

55. Exam scores in a small class were 0, 50, 50, 70, 70, 80, 90, 90, 100, 100. For this data
set, which statement is incorrect concerning measures of center?

A. The median is
70.
B. The mode is not
helpful.
C. The geometric mean is
useless.
D. The mean is
70.

The median is 75 (halfway between x5 = 70 and x6 = 80 in the sorted array). The


zeros render the geometric mean useless. The modes in this case are not unique.

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Final test (SB)

56. Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90,
100. Which statement is incorrect?

A. The standard deviation is


29.61.
B. The data are slightly left-
skewed.
C. The midrange and mean are almost the
same.
D. The third quartile is
90.

The midrange is (0 + 100)/2 = 50, while the mean is 69.

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Final test (SB)

57. For U.S. adult males, the mean height is 178 cm with a standard deviation of 8 cm
and the mean weight is 84 kg with a standard deviation of 8 kg. Elmer is 170 cm tall
and weighs 70 kg. It is most nearly correct to say that:

A. Elmer's weight is more unusual than his


height.
B. Elmer is heavier than he
is tall.
C. Height and weight have the same degree of
variation.
D. Height has more variation than
weight.

Convert Elmer's height and weight to z-scores. For Elmer's weight, z = (x - μ)/σ = (70 -
84)/8 = -1.75, while for Elmer's height, z = (x - μ)/σ = (170 - 178)/8 = -1.00.
Therefore, Elmer is farther from the mean weight than from the mean height.

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Final test (SB)

58. John scored 85 on Prof. Hardtack's exam (Q1 = 40 and Q3 = 60). Based on the fences,
which is correct?

A. John is an extreme
outlier.
B. John is an
outlier.
C. John is not an
outlier.
D. John is in the 85th
percentile.

The upper inner fence is 60 + 1.5(60 - 40) = 90 so John is not an outlier.

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Final test (SB)

59. John scored 35 on Prof. Johnson's exam (Q1 = 70 and Q3 = 80). Based on the fences,
which is correct?

A. John is unusual but not an


outlier.
B. John is an
outlier.
C. John is neither unusual nor an
outlier.
D. John is in the 30th
percentile.

The lower inner fence is 70 - 1.5(80 - 70) = 55 so John is an outlier. Actually, John is an
extreme outlier because the lower outer fence is 70 - 3.0(80 - 70) = 40.

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lOMoARcPSD|10316952

Final test (SB)

60. A population consists of the following data: 7, 11, 12, 18, 20, 22, 25. The population
variance is:

A. 6.0
7.
B. 36.8
2.
C. 5.1
6.
D. 22.8
6.

Use the population formula or Excel's =VAR.P(Data).

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lOMoARcPSD|10316952

Final test (SB)

61. Consider the following data: 6, 7, 17, 51, 3, 17, 23, and 69. The range and the median
are:

A. 69 and
17.5.
B. 66 and
17.5.
C. 66 and
17.
D. 69 and
17.

Range = xmax - xmin = 69 - 3 = 66. Median is halfway between 17 and 17.

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Final test (SB)

62. When a sample has an odd number of observations, the median is the:

A. observation in the center of the data


array.
B. average of the two observations in the center of the
data array.
C. value of the most frequent
observation.
D. average of Q1 and
Q 3.

Median position is always (n + 1)/2. It need not be halfway between the quartiles.

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Final test (SB)

63. As a measure of variability, compared to the range, an advantage of the standard


deviation is:

A. being calculated easily through the use of a


formula.
B. considering only the data values in the middle of the
data array.
C. describing the distance between the highest and
lowest values.
D. considering all data
values.

The range is easy to calculate but utilizes only two data values, which may be
unusual.

40. Events A and B are mutually exclusive when:

A. their joint probability is


zero.
B. they are independent
events.
C. P(A)P(B) =
0
D. P(A)P(B) = P(A |
B)

Review definition of mutually exclusive.

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Final test (SB)

41. If two events are complementary, then we know that:

A. the sum of their probabilities is


one.
B. the joint probability of the two events
is one.
C. their intersection has a nonzero
probability.
D. they are independent
events.

Review definition of complementary events.

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lOMoARcPSD|10316952

Final test (SB)

42. Regarding probability, which of the following is correct?

A. When events A and B are mutually exclusive, then P(A∩B) =


P(A) + P(B).
B. The union of events A and B consists of all outcomes in the sample space that are
contained in both event A and event B.
C. When two events A and B are independent, the joint probability of the events can
be found by multiplying the probabilities of the individual events.
D. The probability of the union of two events can
exceed one.

Review the rules of probability.

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Final test (SB)

43. Independent events A and B would be consistent with which of the following
statements:

A. P(A) = .3, P(B) = .5, P(A∩B)


= .4.
B. P(A) = .4, P(B) = .5, P(A∩B)
= .2.
C. P(A) = .5, P(B) = .4, P(A∩B)
= .3.
D. P(A) = .4, P(B) = .3, P(A∩B)
= .5.

For independence, the product P(A)P(B) must equal P(A∩B).

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Final test (SB)

44. Find the probability that either event A or B occurs if the chance of A occurring is .5,
the chance of B occurring is .3, and events A and B are independent.

A. .
80
B. .
1
5
C. .
65
D. .
85

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.

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Final test (SB)

45. Regarding the rules of probability, which of the following statements is correct?

A. If A and B are independent events, then P(B) =


P(A)P(B).
B. The sum of two mutually exclusive events
is one.
C. The probability of A and its complement will sum
to one.
D. If event A occurs, then its complement will
also occur.

Review the rules of probabilities.

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Final test (SB)

46. Within a given population, 22 percent of the people are smokers, 57 percent of the
people are males, and 12 percent are males who smoke. If a person is chosen at
random from the population, what is the probability that the selected person is either
a male or a smoker?

A. .
67
B. .
79
C. .
22
D. .
43

Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

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Final test (SB)

47. Information was collected on those who attended the opening of a new movie. The
analysis found that 56 percent of the moviegoers were female, 26 percent were under
age 25, and 17 percent were females under the age of 25. Find the probability that a
moviegoer is either female or under age 25.

A. .
79
B. .
82
C. .
65
D. .
50

Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

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Final test (SB)

48. Given the contingency table shown here, find P(V).

A. .
20
B. .
40
C. .
50
D. .
80

This is a marginal probability P(V) = 40/200 = .20.

49. Given the contingency table shown here, find P(V | W).

A. .
400
0
B. .
095
0
C. .
237
5
D. .
587
5

This is a conditional probability P(V|W) = 19/80.

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Final test (SB)

29. A discrete random variable:

A. can be treated as continuous when it has a large range


of values.
B. cannot be treated as
continuous.
C. is best avoided if at all
possible.
D. is usually uniformly
distributed.

For example, the Sunday vehicle count on a freeway is a discrete (but large) number.

30. Which is not a discrete random variable?

A. The number of defects in a 4 × 8 sheet of


plywood
B. The number of female passengers who board
a plane
C. The time until failure of a vehicle
headlamp
D. The number of correct answers on a
statistics exam

Time is continuous.

31. Which is not a discrete random variable?

A. The number of births in a hospital on a


given day
B. The number of fives obtained in four rolls
of a die
C. The hourly earnings of a call center employee in
Boston
D. The number of applicants applying for a civil
service job

Someone's earnings would be more like a continuous measurement.

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Final test (SB)

32. Which statement is incorrect?

A. The Poisson distribution is always


skewed right.
B. The binomial distribution may be skewed left
or right.
C. The discrete uniform distribution is always
symmetric.
D. The hypergeometric distribution is
symmetric.

A hypergeometric distribution is symmetric only if s/N = .50.

33. The random variable X is the number of shots it takes before you make the first free
throw in basketball. Assuming the probability of success (making a free throw) is
constant from trial to trial, what type of distribution does X follow?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

Geometric model describes the number of trials until the first success.

34. Which probability model is most nearly appropriate to describe the number of burned-
out fluorescent tubes in a classroom with 12 fluorescent tubes, assuming a constant
probability of a burned-out tube?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

n = 12 Bernoulli trials with fixed probability of success would be a binomial model.

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Final test (SB)

35. Which distribution is most nearly appropriate to describe the number of fatalities in
Texas in a given year due to poisonous snakebites?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

Events per unit of time with no clear upper limit would resemble a Poisson
distribution.

36. Which model would you use to describe the probability that a call-center operator will
make the first sale on the third call, assuming a constant probability of making a
sale?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

Geometric describes the number of trials to first success.

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lOMoARcPSD|10316952

Final test (SB)

37. In a randomly chosen week, which probability model would you use to describe the
number of accidents at the intersection of two streets?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

Events per unit of time with no clear upper limit would resemble a Poisson
distribution.

38. Which model best describes the number of nonworking web URLs ("This page cannot
be displayed") you encounter in a randomly chosen minute while surfing websites for
Florida vacation rental condos?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

Events per unit of time with no clear upper limit would resemble a Poisson
distribution.

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lOMoARcPSD|10316952

Final test (SB)

39. Which probability model would you use to describe the number of damaged printers
in a random sample of 4 printers taken from a shipment of 28 printers that contains 3
damaged printers?

A. Poisso
n
B. Hypergeomet
ric
C. Binomi
al
D. Unifor
m

Sampling (n = 4 printers) without replacement with known number of "successes" (s


= 3 damaged printers) in the population (N = 28 printers).

40. Which model best describes the number of incorrect fare quotations by a well-trained
airline ticket agent between 2 p.m. and 3 p.m. on a particular Thursday?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

Events per unit of time with no clear upper limit would resemble a Poisson
distribution.

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Final test (SB)

43. The number of people injured in rafting expeditions on the Colorado River on a
randomly chosen Thursday in August is best described by which model?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

Independent events per unit of time with no clear upper limit would be Poisson.

44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing for a
free mule ride. Ten of the entrants are European tourists. Five entrants are
selected at random to get the free mule ride. Which model best describes the
number of European tourists in the random sample?

A. Binomi
al
B. Poisso
41. n model best describes the number of blemishes per sheet of white bond paper?
Which
C. Hypergeomet
ric
D.
A. Geometr
Binomi
ic
al
B. Poisso
Sampling
n (n = 5 tourists selected) without replacement with known number of
"successes" (s = 10 Europeans) in the population (N = 40).
C. Hypergeomet
ric
D. Geometr
ic

Events per unit of area with no clear upper limit would resemble a Poisson
distribution.

42. To ensure quality, customer calls for airline fare quotations are monitored at random.
On a particular Thursday afternoon, ticket agent Bob gives 40 fare quotations, of
which 4 are incorrect. In a random sample of 8 of these customer calls, which model
best describes the number of incorrect quotations Bob will make?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

Sampling (n = 8 calls selected) without replacement with known number of


"successes" (s = 4 incorrect quotes) in the population (N = 40 quotes).
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Final test (SB)

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Final test (SB)

46. On a randomly chosen Wednesday, which probability model would you use to describe
the number of convenience store robberies in Los Angeles?

A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

Events per unit of time with no clear upper limit would be Poisson.

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Final test (SB)

47. Which probability model would you use to describe the number of customers served
at a certain California Pizza Kitchen until the first customer orders split pea soup?

A. Binomi
al
B. Geometr
ic
C. Unifor
m
D. Poisso
n

Geometric distribution describes the number of trials until the first success.

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lOMoARcPSD|10316952

Final test (SB)

48. Which distribution has a mean of 5?

A. Poisson with λ =
25
B. Binomial with n = 200, π
= .05
C. Hypergeometric with N = 100, n = 10,
s = 50

Review model parameters. The hypergeometric mean is ns/N = (10)(50)/100 = 5.

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Final test (SB)

49. Of the following, the one that most resembles a Poisson random variable is the
number of:

A. heads in 200 flips of a fair


coin.
B. annual power failures at your
residence.
C. face cards in a bridge hand of 13
cards.
D. defective CDs in a spool containing
15 CDs.

Independent arrivals per unit of time with no clear upper limit would be Poisson.

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lOMoARcPSD|10316952

Final test (SB)

33. A random variable X is best described by a continuous uniform distribution from 20 to


45 inclusive. The mean of this distribution is:

A. 30.
5.
B. 31.
5.
C. 32.
5.
D. 33.
5.

The mean is halfway between the end points of the distribution.

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Final test (SB)

34. A random variable X is best described by a continuous uniform distribution from 20 to


45 inclusive. The standard deviation of this distribution is approximately:

A. 52.
1.
B. 32.
5.
C. 6.8
5.
D. 7.2
2.

The standard deviation is [(45 - 20)2/12]1/2 = 7.22.

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Final test (SB)

35. A random variable X is best described by a continuous uniform distribution from 20 to


45 inclusive. What is P(30 ≤ X ≤ 40)?

A. .
20
B. .
40
C. .
60
D. .
80

The desired area is 10/25 = .40.

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lOMoARcPSD|10316952

Final test (SB)

36. The Excel function =800*RAND() would generate random numbers with standard
deviation approximately equal to:

A. 20
0.
B. 18
8.
C. 23
1.
D. 40
0.

The standard deviation is [(800 - 0)2/12]1/2 = 230.94.

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Final test (SB)

37. The Excel function =40*RAND() would generate random numbers with standard
deviation approximately equal to

A. 13.3
3.
B. 20.0
0.
C. 11.5
5.
D. 19.2
7.

The standard deviation is [(40 - 0)2/12]1/2 = 11.55.

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Final test (SB)

38. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of
waiting more than 0.5 hour for the next arrival is:

A. .
2407
.
B. .
165
3.
C. .
122
2.
D. .
5000
.

P(X > .50) = exp(-3.6 × 0.50) = .1653.

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Final test (SB)

39. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of
waiting less than 0.5 hour for the next arrival is:

A. .
712
2.
B. .
810
5.
C. .
8347
.
D. .
7809
.

P(X < .50) = 1 - exp(-3.6 × 0.50) = 1 - .1653 = .8347.

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Final test (SB)

40. If arrivals occur at a mean rate of 2.6 events per minute, the exponential probability
of waiting more than 1.5 minutes for the next arrival is:

A. .
0202
.
B. .
012
2.
C. .
0535
.
D. .
2564
.

P(X > 1.5) = exp(-2.6 × 1.50) = .0202.

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Final test (SB)

41. If arrivals occur at a mean rate of 1.6 events per minute, the exponential probability
of waiting less than 1 minute for the next arrival is:

A. .
201
9.
B. .
710
4.
C. .
881
2.
D. .
798
1.

(X < 1) = 1 - exp(-1.6 × 1) = 1 - .2019 = .7981.

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Final test (SB)

42. Bob's z-score for the last exam was 1.52 in Prof. Axolotl's class BIO 417, "Life Cycle of
the Ornithorhynchus." Bob said, "Oh, good, my score is in the top 10 percent."
Assuming a normal distribution of scores, is Bob right?

A. Yes
.
B. No
.
C. Must have n to
answer.

P(Z < 1.52) = .9357.

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Final test (SB)

43. The lengths of brook trout caught in a certain Colorado stream are normally
distributed with a mean of 14 inches and a standard deviation of 3 inches. What
proportion of brook trout caught will be between 12 and 18 inches in length?

A. .
656
3
B. .
682
6
C. .
248
6
D. .
408
2

P(12 < X < 18) = P(-.67 < Z < 1.33) = .6568 (from Appendix C) or .6563 using Excel.

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lOMoARcPSD|10316952

Final test (SB)

44. The lengths of brook trout caught in a certain Colorado stream are normally
distributed with a mean of 14 inches and a standard deviation of 3 inches. The first
quartile for the lengths of brook trout would be:

A. 16.01
inches.
B. 11.00
inches.
C. 11.98
inches.
D. 10.65
inches.

Using Excel =NORM.INV(.25,14,3) = 11.98, or Q1 = 14 - 0.675(3) = 11.975 using


Appendix C.

48. A sampling distribution describes the distribution of:

A. a
parameter.
B. a
statistic
.
C. either a parameter or a
statistic.
D. neither a parameter nor a
statistic.

A statistic is a random variable. Its sampling distribution describes its behavior.

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Final test (SB)

49. As the sample size increases, the standard error of the mean:

A. increas
es.
B. decreas
es.
C. may increase or
decrease.

The standard error of the mean is σ/(n1/2).

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Final test (SB)

50. Which statement is most nearly correct, other things being equal?

A. Doubling the sample size will cut the standard error of the
mean in half.
B. The standard error of the mean depends on the
population size.
C. Quadrupling the sample size roughly halves the standard error of
the mean.
D. The standard error of the mean depends on the
confidence level.

The standard error of the mean is σ/(n1/2) so replacing n by 4n would cut the SEM in
half.

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Final test (SB)

51. The width of a confidence interval for μ is not affected by:

A. the sample
size.
B. the confidence
level.
C. the standard
deviation.
D. the sample
mean.

The mean is not used in calculating the width of the confidence interval zσ/(n1/2).

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Final test (SB)

52. The Central Limit Theorem (CLT) implies that:

A. the population will be approximately normal if


n ≥ 30.
B. repeated samples must be taken to obtain
normality.
C. the distribution of the mean is approximately normal
for large n.
D. the mean follows the same distribution as the
population.

The sampling distribution of the mean is asymptotically normal for any population.

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Final test (SB)

53. The owner of Limp Pines Resort wanted to know the average age of its clients. A
random sample of 25 tourists is taken. It shows a mean age of 46 years with a
standard deviation of 5 years. The width of a 98 percent CI for the true mean client
age is approximately:

A. ± 1.711
years.
B. ± 2.326
years.
C. ± 2.492
years.
D. ± 2.797
years.

The width is ts/(n1/2) = (2.492)(5)/(25)1/2 = 2.492.

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lOMoARcPSD|10316952

Final test (SB)

54. In constructing a confidence interval for a mean with unknown variance with a sample
of 25 items, Bob used z instead of t. "Well, at least my interval will be wider than
necessary, so it was a conservative error," said he. Is Bob's statement correct?

A. Yes
.
B. No
.
C. It depends on
μ.

z is always smaller than t (ceteris paribus), so the interval would be narrower than is
justified.

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lOMoARcPSD|10316952

Final test (SB)

55. A random sample of 16 ATM transactions at the Last National Bank of Flat Rock
revealed a mean transaction time of 2.8 minutes with a standard deviation of 1.2
minutes. The width (in minutes) of the 95 percent confidence interval for the true
mean transaction time is:

A. ±
0.639
B. ±
0.588
C. ±
0.300
D. ±
2.131

The width is ts/(n1/2) = (2.131)(1.2)/(16)1/2 = 0.639.

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Final test (SB)

56. We could narrow a 95 percent confidence interval by:

A. using 99 percent
confidence.
B. using a larger
sample.
C. raising the standard
error.

A larger sample would narrow the interval width zs/(n1/2).

55. After testing a hypothesis regarding the mean, we decided not to reject H0. Thus,
we are exposed to:

A. Type I
error.
B. Type II
error.
C. Either Type I or Type II
error.
D. Neither Type I nor Type II
error.

Failure to reject H0 could lead to Type II error (but not Type I error).

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Final test (SB)

56. After testing a hypothesis, we decided to reject the null hypothesis. Thus, we are
exposed to:

A. Type I
error.
B. Type II
error.
C. Either Type I or Type II
error.
D. Neither Type I nor Type II
error.

Rejecting H0 could lead to Type I error (but not Type II error).

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Final test (SB)

57. Which statement about α is not correct?

A. It is the probability of committing a Type I


error.
B. It is the test's significance
level.
C. It is the probability of rejecting a
true H0.
D. It is equal to 1
- β.

There is an inverse relationship between α and β, but it is not a simple equation.

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Final test (SB)

58. Which of the following is correct?

A. When sample size increases, both α and β may


decrease.
B. Type II error can only occur when you
reject H0.
C. Type I error can only occur if you fail to
reject H0.
D. The level of significance is the probability of Type
II error.

Only a larger sample can allow a reduction in both α and β (ceteris paribus).

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Final test (SB)

59. Which of the following is incorrect?

A. The level of significance is the probability of making a


Type I error.
B. Lowering both α and β at once will require a higher
sample size.
C. The probability of rejecting a true null hypothesis increases as
n increases.
D. When Type I error increases, Type II error must decrease,
ceteris paribus.

The critical value for the desired α takes the sample size into consideration.

60. John rejected his null hypothesis in a right-tailed test for a mean at α = .025 because
his critical t value was 2.000 and his calculated t value was 2.345. We can be sure
that:

A. John did not commit a Type I


error.
B. John did not commit a Type II
error.
C. John committed neither a Type I nor Type II
error.
D. John committed both a Type I and a Type II
error.

John could have committed Type II error only if he failed to reject H0.

61. "My careful physical examination shows no evidence of any serious problem," said
Doctor Morpheus. "However, a very costly lab test can be performed to check for the
rare condition known as estomalgia fatalis. The test is almost invariably negative for
persons with your age and symptoms. My personal hypothesis is that the occasional
stomach pain you reported is due to indigestion caused by eating tacos with too much
hot sauce. But you must decide for yourself." As you consider your doctor's
hypothesis, what would be the consequence of Type I error on your part?

A. It can't be determined without knowing the type


of test.
B. Your estomalgia fatalis will go
undetected.
C. You will waste money on an unnecessary
lab test.
D. Your survivors will enjoy a sizeable
malpractice award.

Type I error is rejecting the doctor's advice when it was correct.

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Final test (SB)

62. Which of the following statements is correct?

A. Increasing α will make it more likely that we will reject H0,


ceteris paribus.
B. Doubling the sample size roughly doubles the test statistic,
ceteris paribus.
C. A higher standard deviation would increase the power of a test
for a mean.
D. The p-value shows the probability that the null
hypothesis is false.

A larger α will make it easier to reject H0 (e.g., z.05 = 1.645 versus z.01 = 2.326).

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Final test (SB)

63. "I believe your airplane's engine is sound," states the mechanic. "I've been over it
carefully, and can't see anything wrong. I'd be happy to tear the engine down
completely for an internal inspection at a cost of $1,500. But I believe that roughness
you heard in the engine on your last flight was probably just a bit of water in the fuel,
which passed harmlessly through the engine and is now gone." As the pilot considers
the mechanic's hypothesis, the cost of Type I error is:

A. the pilot will experience the thrill of no-


engine flight.
B. the pilot will be out $1,500
unnecessarily.
C. the mechanic will lose a good
customer.
D. impossible to determine without
knowing α.

Type I error is rejecting the mechanic's advice when it was correct.

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Final test (SB)

64. A study over a 10-year period showed that a certain mammogram test had a 50
percent rate of false positives. This indicates that:

A. about half the tests indicated


cancer.
B. about half the tests missed a cancer
that exists.
C. about half the tests showed a cancer that
didn't exist.
D. about half the women tested actually had no
cancer.

This is a 50 percent chance of Type I error.

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Final test (SB)

65. You are driving a van packed with camping gear (total weight 3,500 pounds including
yourself and family) into a northern wilderness area. You take a "short cut" that turns
into a one-lane road, with no room to turn around. After 11 miles you come to a
narrow bridge with a faded sign saying, "Safe Up to 2 Tons." About a half-mile ahead,
you can see that your road rejoins the main highway. You consider the sign's
hypothesis carefully before making a decision. The cost of Type I error is:

A. you pass safely over the bridge and


everyone's happy.
B. about $23,900, not including
medical bills.
C. you will find out just how cold that river
actually is.
D. your kids will think you're a
chicken.

Type I error is rejecting the sign's message when it was correct.

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Final test (SB)

66. After lowering the landing gear, the pilot notices that the "gear down and locked" light
is not illuminated. "It's probably just a burned out light bulb," she says, as she
proceeds on final approach for landing. Considering the pilot's hypothesis, which is
the result of Type I error?

A. The sound of metal scraping on concrete will be heard upon


landing.
B. The landing is delayed unnecessarily while the bulb and gear
are checked.
C. We cannot be sure without knowing whether or not the bulb is
actually faulty.

Type I error is concluding there is a problem when there was not.

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Final test (SB)

67. As you are crossing a field at the farm, your country cousin Jake assures you, "Don't
worry about that old bull coming toward us. He's harmless." As you consider Jake's
hypothesis, what would be Type I error on your part?

A. You will soon feel the bull's


horns.
B. You will run away for no good
reason.
C. Jake will not have any more visits
from you.

Type I error is rejecting Jake's advice when he was right.

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Final test (SB)

68. Which is not true of p-values?

A. When they are small, we want to


reject H0.
B. They measure the probability of an incorrect
decision.
C. They show the chance of Type I error if we
reject H0.
D. They do not require α to be specified a
priori.

The p-value tells the likelihood of the observed sample result (or one more extreme)
assuming that H0 is true.

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Final test (SB)

69. For a test of a mean, which of the following is incorrect?

A. H0 is rejected when the calculated p-value is less than the critical value of the
test statistic.
B. In a right-tailed test, we reject H0 when the test statistic exceeds the
critical value.
C. The critical value is based on the researcher's chosen level of
significance.
D. If H0: μ ≤ 100 and H1: μ > 100, then the test is
right-tailed.

We compare the p-value with α (not with the critical value).

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Final test (SB)

29. In a right-tailed test comparing two means with known variances, the sample sizes
were n1 = 8 and n2 = 12. At α = .05, the critical value would be:

A. 1.96
0
B. 1.64
5
C. 1.73
4
D. 1.28
2

For a right-tailed test with known variances, we would use z.05 = 1.645.

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Final test (SB)

30. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and
p2 = 18/50. The test statistic is approximately:

A. -
1.44
.
B. -
1.3
1.
C. -
1.67
.
D. Must know α to
answer.

Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in zcalc.

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Final test (SB)

31. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and
p2 = 18/50. The pooled proportion is:

A. .
20
B. .
24
C. .
36
D. .
30

Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in the
calculation.

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Final test (SB)

32. If the sample proportions were p1 = 12/50 and p2 = 18/50, the 95 percent confidence
interval for the difference of the population proportions is approximately:

A. [-.144,
+.244].
B. [-.120,
+.120].
C. [-.298,
+.058].
D. [-.011,
+.214].

Enter the proportions separately in the formula. (We are not combining the samples.)

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Final test (SB)

33. John wants to compare two means. His sample statistics were

and . Assuming equal variances, the 95 percent confidence


interval for the difference of the population means is approximately:

A. [2.44,
6.19].
B. [1.17,
5.08].
C. [0.08,
4.32].
D. [-0.09,
3.19].

Pool the variances and add the degrees of freedom, because equal variances are
assumed.

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Final test (SB)

34.
John wants to compare two means. His sample statistics were
and . Assuming equal variances, the pooled variance is:

A. 4.
5
B. 4.
9
C. 5.
1
D. 3.
8

The pooled variance is [(n1 - 1)s12 + (n2 - 1)s22]/[(n1 - 1) + (n2 - 1)] = 4.5.

35.
John wants to compare two means. His sample statistics were

and . Assuming equal variances, the test statistic is:

A. 2.3
7
B. 2.2
0
C. 1.9
6
D. Must know α to
answer.

The pooled variance is (n1 - 1)s12 + (n2 - 1)s22 = (9 - 1)(5.4) + (9 - 1)(3.6) = 4.5.

36.
John wants to compare two means. His sample statistics were

and . Assuming equal variances, the degrees of freedom for


his test will be:

A. 1
6.
B. 1
8.
C. 9
.
D. 8
.

With pooled samples, we add the d.f. = (n1 - 1) + (n2 - 1) = (9 - 1) + (9 - 1) = 16.

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Final test (SB)

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Final test (SB)

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Final test (SB)

37. In a random sample of patient records in Cutter Memorial Hospital, six-month


postoperative exams were given in 90 out of 200 prostatectomy patients, while in
Paymor Hospital such exams were given in 110 out of 200 cases. In comparing these
two proportions, normality of the difference may be assumed because:

A. the populations are large enough to be assumed


normal.
B. the probability of success can reasonably be assumed
constant.
C. the samples are random, so the proportions are unbiased
estimates.
D. nπ ≥ 10 and n(1 - π) ≥ 10 for each sample taken
separately.

We have at least 10 successes (x1 = 90, x2 = 110) and 10 failures (n1 - x1 = 110, n2 -
x2 = 90).

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Final test (SB)

38. In a random sample of patient records in Cutter Memorial Hospital, six-month


postoperative exams were given in 90 out of 200 prostatectomy patients, while in
Paymor Hospital such exams were given in 110 out of 200 cases. In a left-tailed test
for equality of proportions, the test statistic is:

A. -
1.9
6
B. -
2.00
C. -
4.00
D. -
3.48

Combined pc = (90 + 110)/(200 + 200) = .50, so zcalc = (p1 - p2)/[pc(1 - pc)/n1 + pc(1 -
pc)/n2]1/2 = -2.000.

39. In a random sample of patient records in Cutter Memorial Hospital, six-month


postoperative exams were given in 90 out of 200 prostatectomy patients, while in
Paymor Hospital such exams were given in 110 out of 200 cases. In a left-tailed test
for equality of proportions, the p-value is:

A. .
977
2
B. .
022
8
C. .
477
2
D. .
051
7

Combined pc = (90 + 110)/(200 + 200) = .50, so zcalc = (p1 - p2)/[pc(1 - pc)/n1 + pc(1 -
pc)/n2]1/2 = -2.000 and using Appendix C we get P(Z ≤ -2.000) = .0228.

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