SB Test Bank Full Chap

Chapter 02
Chapter 02 Data Collection Answer Key
True / False Questions
1. Categorical data have values that are described by words rather than numbers.
TRUE
Categories are nominal data but could also be ranked (e.g., sophomore, junior, senior).
Accessibility: Keyboard Navigation

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Explain the difference between numerical and categorical data.
Learning Objective: 02-09 Describe basic elements of survey types, survey designs, and response scales.
Topic: Variables and Data
2. Numerical data can be either discrete or continuous.
TRUE
Numerical data can be counts (e.g., cars owned) or continuous scales (e.g., height).

Blooms: Remember
Difficulty: 1 Easy
3. Categorical data are also referred to as nominal or qualitative data.
TRUE
Categories are nominal data (nonnumerical), sometimes called qualitative data.

Blooms: Remember
Difficulty: 1 Easy
4. The number of checks processed at a bank in a day is an example of categorical data.
FALSE
Integers are actually numerical data.

Blooms: Apply
Difficulty: 1 Easy
5. The number of planes per day that land at an airport is an example of discrete data.
TRUE
Integers are discrete numerical data.

Blooms: Apply
Difficulty: 1 Easy
6. The weight of a bag of dog food is an example of discrete data.
FALSE
Weight is measured on a continuous scale.

Blooms: Apply
Difficulty: 1 Easy
7. In last year's annual report, Thompson Distributors indicated that it had 12 regional
warehouses. This is an example of ordinal level data.
FALSE
"Number of" is a count, which is ratio data because a zero exists (better than ordinal).

Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 02-04 Recognize levels of measurement in data and ways of coding data.
Topic: Level of Measurement
8. Nominal data refer to data that can be ordered in a natural way.
FALSE
Nominal (categorical) data would be called ordinal only if categories can be ranked.

Blooms: Remember
Difficulty: 1 Easy
9. This year, Oxnard University produced two football All-Americans. This is an example of
continuous data.
FALSE
The "number of" anything is discrete.

Blooms: Apply
Difficulty: 1 Easy
10. The type of statistical test that we can perform is independent of the level of
measurement of the variable of interest.
FALSE
Some statistical operations are restricted unless you have ratio or interval data.

Blooms: Understand
Difficulty: 1 Easy
11. Your weight recorded at your annual physical would not be ratio data, because you cannot
have zero weight.
FALSE
Zero is only a reference point, not necessarily an observable data value.

Blooms: Apply
Difficulty: 2 Medium
12. The level of measurement for categorical data is nominal.
TRUE
Categorical and nominal are equivalent terms.

Blooms: Remember
Difficulty: 1 Easy
13. Temperature measured in degrees Fahrenheit is an example of interval data.
TRUE
For temperature, scale distances are meaningful (20 to 25 is the same as 50 to 55

degrees), and 0 degrees Fahrenheit does not mean the absence of heat, so it is not a ratio
measurement.

Blooms: Apply
14. The closing price of a stock is an example of ratio data.
TRUE
True zero exists as a reference, whether or not it is observed.

Blooms: Apply
15. The Statistical Abstract of the United States is a huge annual compendium of data for the
United States, and it is available online free of charge.
TRUE
A useful reference for business (e.g., for marketing, economics, or finance).
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-08 Find everyday print or electronic data sources.
Topic: Data Sources
16. Ordinal data can be treated as if it were nominal data but not vice versa.
TRUE
You can always go back to a lower level of measurement (but not vice versa).

Blooms: Understand
Difficulty: 1 Easy
17. Responses on a seven-point Likert scale are usually treated as ratio data.
FALSE
No true zero point exists on a Likert scale.

Blooms: Understand
Difficulty: 1 Easy
18. Likert scales are especially important in opinion polls and marketing surveys.
TRUE
Likert scales are used in all kinds of surveys.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Recognize a Likert scale and know how to use it.
19. Ordinal data are data that can be ranked based on some natural characteristic of the
items.
TRUE
For example, the eras Jurassic, Paleozoic, and Mesozoic can be ranked in time.

Blooms: Remember
Difficulty: 1 Easy
20. Ratio data are distinguished from interval data by the presence of a zero reference point.
TRUE
The true zero is a reference that need not be observable.

Blooms: Remember
21. It is better to attempt a census of a large population instead of relying on a sample.
FALSE
A census may founder on cost and time, while samples can be quick and accurate.

Blooms: Understand
Learning Objective: 02-06 Use the correct terminology for samples and populations.
Topic: Sampling Concepts
22. Judgment sampling and convenience sampling are nonrandom sampling techniques.
TRUE
To be random, every item must have the same chance of being chosen.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-07 Explain the common sampling methods and how to implement them.
Topic: Sampling Methods
23. A problem with judgment sampling is that the sample may not reflect the population.
TRUE
While better than mere convenience, judgment may still have flaws.

Blooms: Remember
Difficulty: 1 Easy
24. When the population is large, a sample estimate is usually preferable to a census.
TRUE
A census may founder on cost and time, while samples can be quick and accurate.

Blooms: Understand
Difficulty: 1 Easy
25. Sampling error is avoidable by choosing the sample scientifically.
FALSE
Sampling error is unavoidable, though it can be reduced by careful sampling.

Blooms: Remember
26. A sampling frame is used to identify the target population in a statistical study.
TRUE
Only some portion of the population may be targeted (e.g., independent voters).

Blooms: Remember
27. By taking a systematic sample, in which we select every 50th shopper arriving at a specific
store, we are approximating a random sample of shoppers.
TRUE
There is no bias if this method is implemented correctly.

Blooms: Apply
28. A worker collecting data from every other shopper who leaves a store is taking a simple
random sample of customer opinion.
FALSE
Not unless the target population is customers who shopped today (cf., all customers).

Blooms: Apply
29. Creating a list of people by taking the third name listed on every 10 th page of the phone
book is an example of convenience sampling.
FALSE
This resembles two-stage cluster sampling combined with systematic sampling.

Blooms: Apply
30. Internet surveys posted on popular websites have no bias since anyone can reply.
FALSE
Self-selection bias exists (respondents may be atypical).
AACSB: Technology
Blooms: Understand
Topic: Surveys
31. Analysis of month-by-month changes in stock market prices during the most recent
recession would require the use of time series data.
TRUE
Data collected and recorded over time would be a time series.

Blooms: Apply
Learning Objective: 02-03 Explain the difference between time series and cross-sectional data.
32. A cluster sample is a type of stratified sample that is based on geographical location.
TRUE
For example, sampling voters randomly within random zip codes.

Blooms: Remember
Difficulty: 1 Easy
33. An advantage of a systematic sample is that no list of enumerated data items is required.
TRUE
Systematic sampling works with a list (like random sampling) but also without one.

Blooms: Remember
Difficulty: 1 Easy
34. Telephone surveys often have a low response rate and fail to reach the desired
population.
TRUE
Phone surveys are cheaper, but it is hard to avoid these problems.

Blooms: Remember
Difficulty: 1 Easy
Topic: Surveys
35. Mail surveys are attractive because of their high response rates.
FALSE
Mail surveys have low response rates and invite self-selection bias.

Blooms: Remember
Difficulty: 1 Easy
Topic: Surveys
36. A problem with convenience sampling is that the target population is not well defined.
TRUE
Convenience sampling is quick but not random, and the target population is unclear.

Blooms: Remember
37. If you randomly sample 50 students about their favorite places to eat, the data collected
would be referred to as cross-sectional data.
TRUE
Data for individuals would be a cross section (not a time series).

Blooms: Apply
38. The number of FedEx shipping centers in each of 50 cities would be ordinal level data.
FALSE
The "number of" anything is ratio data because a true zero reference point exists.

Blooms: Apply
39. Internet surveys posted on popular websites such as MSN.com suffer from nonresponse
bias.
TRUE
Nonresponse or self-selection bias is rampant in such surveys.

Blooms: Apply
Topic: Surveys
40. Different variables are usually shown as columns of a multivariate data set.
TRUE
It is customary to use a column for each variable, while each row is an observation.

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Use basic terminology for describing data and samples.
41. Each row in a multivariate data matrix is an observation (e.g., an individual response).
TRUE
It is customary to use a column for each variable, while each row is an observation.

Blooms: Remember
Difficulty: 1 Easy
42. A bivariate data set has only two observations on a variable.
FALSE
Bivariate refers to the number of variables, not the number of observations.

Blooms: Remember
Difficulty: 1 Easy
43. Running times for 3,000 runners in a 5k race would be a multivariate data set.
FALSE
Regardless of the number of observations, we have only one variable (running time).

Blooms: Remember
Difficulty: 1 Easy
44. Running times for 500 runners in a 5k race would be a univariate data set.
TRUE
Regardless of the number of observations, we have only one variable (running time).

Blooms: Remember
Difficulty: 1 Easy
45. A list of the salaries, ages, and years of experience for 50 CEOs is a multivariate data set.
TRUE
We would have a data matrix with 50 rows and 3 columns.

Blooms: Remember
Difficulty: 1 Easy
46. The daily closing price of Apple stock over the past month would be a time series.
TRUE
Data collected over time is a time series.

Blooms: Apply
47. The number of words on 50 randomly chosen textbook pages would be cross-sectional
data.
TRUE
Data were not collected over time, so we have cross-sectional data.

Blooms: Apply
48. A Likert scale with an even number of scale points between "Strongly Agree" and "Strongly
Disagree" is intended to prevent "neutral" choices.
TRUE
An even number of scale points (e.g., 4) forces the respondent to "lean" toward one end of
the scale or the other.

Blooms: Apply
49. Private statistical databases (e.g., CRSP) are usually free.
FALSE
Private research databases generally require a subscription (often expensive).

Blooms: Remember
Difficulty: 1 Easy
Topic: Data Sources
Multiple Choice Questions

50. An investment firm rates bonds for AardCo Inc. as "B+," while bonds of Deva Corp. are
rated "AA." Which level of measurement would be appropriate for such data?
A. Nomina
l
B. Ordina
l
C. Interva
l
D. Rati
o
Ranks are clear, but interval would require assumed equal scale distances (doubtful).

Blooms: Evaluate
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.

Blooms: Apply
52. Which of the following is numerical data?
A. Your
gender
B. The brand of cell phone you
own
C. Whether you have an American Express
card
D. The fuel economy (MPG) of your
car
Fuel economy is numerical.

Blooms: Apply
Difficulty: 1 Easy
53. Measurements from a sample are called:
A. statistic
s.
B. inferences
.
C. parameters
.
D. variables
.
A measurement calculated from a sample is a statistic.

Blooms: Remember
Difficulty: 1 Easy
54. Quantitative variables use which two levels of measurement?
A. Ordinal and
ratio
B. Interval and
ordinal
C. Nominal and
ordinal
D. Interval and
ratio
Numerical (quantitative) data can be interval or ratio.

Blooms: Remember
55. Temperature in degrees Fahrenheit is an example of a(n) __________ variable.
A. nomina
l
B. ordina
l
C. interva
l
D. rati
o
No true zero exists in temperature measurements except on the Kelvin scale.

Blooms: Apply
Difficulty: 1 Easy
56. Using a sample to make generalizations about an aspect of a population is called:
A. data
mining.
B. descriptive
statistics.
C. random
sampling.
D. statistical
inference.
Generalizing from a sample to a population is an inference.

Blooms: Remember
Difficulty: 1 Easy
57. Your telephone area code is an example of a(n) ____________ variable.
A. nomina
l
B. ordina
l
C. interva
l
D. rati
o
Area codes are not even ranked, so just nominal.

Blooms: Understand
58. Which is least likely to be regarded as a ratio variable?
A. A critic's rating of a restaurant on a 1 to 4

scale
B. Automobile exhaust emission of nitrogen dioxide (milligrams per
mile)
C. Number of customer complaints per day at a cable TV company
office
D. Cost of an eBay
purchase
Ratings on a Likert scale have no meaningful zero.

Blooms: Apply
59. Automobile exhaust emission of CO2 (milligrams per mile) is ____________ data.
A. nomina
l
B. ordina
l
C. interva
l
D. rati
o
True zero exists.

Blooms: Apply
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. nomina
l
B. ordina
l
C. interva
l
D. rati
o
Only rankings implied (not equal scale distances).

Blooms: Apply
61. The number of passengers "bumped" on a particular airline flight is ____________ data.
A. nomina
l
B. ordina
l
C. interva
l
D. rati
o
True zero exists (no passengers might be bumped).

Blooms: Apply
Difficulty: 1 Easy
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.

Blooms: Apply
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.

Blooms: Apply
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.

Blooms: Apply
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.

Blooms: Remember
66. A Likert scale:
A. yields interval data if scale distances are

equal.
B. must have an odd number of scale
points.
C. must have a verbal label on each scale
point.
D. is rarely used in marketing
surveys.
Marketers use Likert scales and try to make scales with meaningful intervals.

Blooms: Remember
67. Which is most nearly correct regarding sampling error?
A. It can be eliminated by increasing the sample

size.
B. It cannot be eliminated by any statistical sampling
method.
C. It can be eliminated by using Excel's =RANDBETWEEN()
function.
D. It can be eliminated by utilizing systematic random
sampling.
Sampling involves error, though it can be minimized by proper methodology.

Blooms: Understand
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.

Blooms: Understand
Topic: Surveys
69. Judgment sampling is sometimes preferred over random sampling, for example, when:
A. the desired sample size is much larger than the

population.
B. the sampling budget is large and the population is conveniently
located.
C. time is short and the sampling budget is
limited.
D. the population is readily accessible and sampling is
nondestructive.
Judgment sampling can save time and may be better than mere convenience.

Blooms: Understand
70. An advantage of convenience samples is that:
A. the required sample size is easier to

calculate.
B. sampling error can be
reduced.
C. computation of statistics is
easier.
D. they are often quicker and
cheaper.
Convenience samples are quick, with a possible trade-off of accuracy.

Blooms: Remember
Difficulty: 1 Easy
71. Before deciding whether to assess heavy fines against noisy airlines, which sampling
method would the Federal Aviation Administration probably use to measure the peak noise
from departing jets as measured by a ground-level observer at a point one mile from the
end of the departure runway?
A. Radio survey of
pilots.
B. Simple random
sample.
C. Judgment
sample.
D. Stratified
sample.
From the cockpit, pilots can't assess external noise levels, so a radio survey of pilots is not
useful. Measurements must be taken from the ground. No list is available for the
unpredictable mix of departing flights, so we can't use a simple random sample. A
judgment sample would not provide an objective basis for assessing fines. A reasonable
option would be for ground observers to record the aircraft size, type, and carrier (airline)
for each departing flight for a week and use this information to construct a stratified
sample.

Blooms: Evaluate
Difficulty: 3 Hard
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.

Blooms: Apply
73. Thirty work orders are selected from a filing cabinet containing 500 work order folders by
choosing every 15th folder. Which sampling method is this?
A. Simple random
sample
B. Systematic
sample
C. Stratified
sample
D. Cluster
sample
Classic systematic sample from an accessible but unlisted population.

Blooms: Apply
74. Which of the following is not a likely reason for sampling?
A. The destructive nature of certain

tests
B. The physical impossibility of checking all the items in the
population
C. Prohibitive cost of studying the entire
population
D. The expense of obtaining random
numbers
Random numbers are cheap (e.g., Excel).

Blooms: Understand
75. Comparing a census of a large population to a sample drawn from it, we expect that the:
A. sample is usually a more practical method of obtaining the desired

information.
B. accuracy of the observations in the census is surely higher than in the
sample.
C. sample must be a large fraction of the population to be
accurate.
Census is often impractical, while samples can be extremely accurate.

Blooms: Understand
76. A stratified sample is sometimes recommended when:
A. the sample size is very

large.
B. the population is small compared to the
sample.
C. distinguishable strata can be identified in the
populations.
D. the population is spread out
geographically.
Identifiable strata such as gender, ethnicity, or region can be used.

Blooms: Remember
77. A random sample is one in which the:
A. probability that an item is selected for the sample is the same for all population
items.
B. population items are selected haphazardly by experienced
workers.
C. items to be selected from the population are specified based on expert
judgment.
D. probability of selecting a population item depends on the item's data
value.
Each item must have the same chance of being picked if the sample is random.

Blooms: Remember
78. An advantage of convenience samples over random samples is that:
A. they are easy to

analyze.
B. it is easier to determine the sample size
needed.
C. it is easier to calculate the sampling errors
involved.
D. data collection cost is
reduced.
Convenience samples are often used because they are quick (but maybe not accurate).

Blooms: Remember
Difficulty: 1 Easy
79. To measure satisfaction with its cell phone service, AT&T takes a stratified sample of its
customers by age, gender, and location. Which is an advantage of this type of sampling, as
opposed to other sampling methods?
A. It is less intrusive on customers'

privacy.
B. It does not require random
numbers.
C. It gives faster
results.
D. It can give more accurate
results.
Stratified sampling can yield more complete and accurate information.
AACSB: Diversity
Blooms: Analyze
80. An accounting professor wishing to know how many MBA students would take a summer
elective in international accounting did a survey of the class she was teaching. Which kind
of sample is this?
A. Simple random
sample
B. Cluster
sample
C. Systematic
sample
D. Convenience
sample
She may bias the estimate because only accounting students were surveyed.

Blooms: Apply
81. A binary variable (also called a dichotomous variable or dummy variable) has:
A. only two possible

values.
B. continuous scale
values.
C. rounded data
values.
D. ordinal or interval
values.
Binary variables are used in every field of business to code qualitative (nominal) data.

Blooms: Remember
Difficulty: 1 Easy
82. A population has groups that have a small amount of variation within them, but large
variation among or between the groups themselves. The proper sampling technique is:
A. simple
random.
B. stratifie
d.
C. cluster
.
D. judgment
.
Identifiable strata call for stratified sampling if you can afford the extra time and cost.

Blooms: Apply
Difficulty: 3 Hard
83. A manager chose two people from his team of eight to give an oral presentation because
she felt they were representative of the whole team's views. What sampling technique did
she use in choosing these two people?
A. Convenienc
e
B. Simple
random
C. Judgmen
t
D. Cluste
r
Expert judgment may be better than just pointing a finger (we hope).

Blooms: Apply
84. Sampling bias can best be reduced by:
A. using appropriate data

coding.
B. having a computer tabulate the
results.
C. utilizing random
sampling.
D. taking a judgment
sample.
Sampling error can't be eliminated, but sampling bias can be avoided.

Blooms: Understand
85. A sampling technique used when groups are defined by their geographical location is:
A. cluster
sampling.
B. convenience
sampling.
C. judgment
sampling.
D. random
sampling.
Strata based on location can be targeted through cluster sampling.

Blooms: Remember
86. If we choose 500 random numbers using Excel's function =RANDBETWEEN(1,99), we
would most likely find that:
A. numbers near the mean (50) would tend to occur more

frequently.
B. numbers near 1 and 99 would tend to occur less
frequently.
C. some numbers would occur more than
once.
D. the numbers would have a clear
pattern.
On average, we'd expect each number to occur around five times.

Blooms: Apply
87. A problem with nonrandom sampling is that:
A. larger samples need to be taken to reduce the sampling error inherent in this
approach.
B. not every item in the population has the same chance of being selected, as it
should.
C. it is usually more expensive than random
sampling.
D. it generally provides lower response rates than random
sampling.
Only random sampling gives every item the same chance to be picked.

Blooms: Understand
88. From its 32 regions, the FAA selects 6 regions, and then randomly audits 25 departing
commercial flights in each region for compliance with legal fuel and weight requirements.
This is an example of:
A. simple random
sampling.
B. stratified random
sampling.
C. cluster
sampling.
D. judgment
sampling.
Two-stage cluster sampling is being used (a special form of stratification).

Blooms: Apply
89. Which of the following is a correct statement?
A. Choosing the third person listed on every fifth page of the phone book is stratified
sampling.
B. An advantage of a systematic sample is that no list of enumerated data items is
required.
C. Convenience sampling is used to study shoppers in convenience
stores.
D. Judgment sampling is an example of true random
sampling.
Review the sampling methods and their characteristics.

Blooms: Analyze
90. Which of the following is false?
A. Sampling error is the difference between the true parameter and the sample
estimate.
B. Sampling error is a result of unavoidable random variation in a
sample.
C. A sampling frame is chosen from the target population in a statistical
study.
D. The target population must first be defined by a full list or data file of all
individuals.
Review the terminology of sampling.

Blooms: Understand
91. When we are choosing a random sample and we do not place chosen units back into the
population, we are:
A. sampling with
replacement.
B. sampling without
replacement.
C. using a systematic
sample.
D. using a voluntary
sample.
Sampling without replacement avoids redundancy, yet nonreplacement is biased.

Blooms: Remember
Difficulty: 1 Easy
92. Which method is likely to be used by a journalism student who is casually surveying
opinions of students about the university's cafeteria food for an article that she is writing?
A. Simple random
sample
B. Systematic random
sample
C. Cluster
sample
D. Convenience
sample
Quick and easy may trump true random sampling for a busy journalist.

Blooms: Apply
93. Which of the following is false?
A. Mail surveys are cheap but have low response

rates.
B. Coverage error is when respondents give untruthful
answers.
C. Focus groups are nonrandom but can probe issues more
deeply.
D. Surveys posted on popular websites suffer from selection
bias.
Coverage error is when you miss some segment of the target population.

Blooms: Understand
Topic: Surveys
94. Which is a time series variable?
A. VISA balances of 30 students on December 31 of this

year
B. Net earnings reported by Xena Corp. for the last 10
quarters
C. Dollar exchange rates yesterday against 10 other world
currencies
D. Titles of the top 10 movies in total revenue last
week
If x1, x2,…, xn do not refer to n time periods, it isn't a time series.

Blooms: Apply
95. An observation in a data set would refer to:
A. only a variable whose value is recorded by visual

inspection.
B. a data item whose value is numerical (as opposed to
categorical).
C. a single row that contains one or more observed
variables.
D. the values of all the variables in the entire data
set.
We usually put observations in rows on a spreadsheet, while each column is a variable.

Blooms: Remember
Difficulty: 1 Easy
96. A multivariate data set contains:
A. more than two

observations.
B. more than two categorical
variables.
C. more than two
variables.
D. more than two levels of
measurement.
When you have more than two variables, it is multivariate data.

Blooms: Remember
Difficulty: 1 Easy
97. The Centers for Disease Control and Prevention (CDC) wants to estimate the average
extra hospital stay that occurs when heart surgery patients experience postoperative atrial
fibrillation. They divide the United States into nine regions. In each region, hospitals are
selected at random within each hospital size group (small, medium, large). In each
hospital, heart surgery patients are sampled according to known percentages by age group
(under 50, 50 to 64, 65 and over) and gender (male, female). This procedure combines
which sampling methods?
A. Systematic, simple random, and

convenience
B. Convenience, systematic, and
judgment
C. Cluster, stratified, and simple
random
D. Judgment, systematic, and simple
random
Identifiable strata were sampled, but also random within strata and regional clusters.

Blooms: Evaluate
Difficulty: 3 Hard
A. Selecting every fifth shopper arriving at a store will approximate a random sample of
shoppers.
B. Selecting only shoppers who drive SUVs is a stratified sampling
method.
C. A census is preferable to a sample for most business
problems.
D. Stratified samples are usually cheaper than other
methods.
Done carefully, systematic sampling is close to random when there is no list.

Blooms: Evaluate
99. Which is a categorical variable?
A. The brand of jeans you usually

wear
B. The price you paid for your last pair of
jeans
C. The distance to the store where you purchased your last pair of
jeans
D. The number of pairs of jeans that you
own
Categories have only names (e.g., Calvin Klein).

Blooms: Remember
Difficulty: 1 Easy
100. Which is a discrete variable?
A. The time it takes to put on a pair of

jeans
B. The price you paid for your last pair of
jeans
C. The distance to the store where you purchased your last pair of
jeans
D. The number of pairs of jeans that you
own
The "number of" anything is discrete numerical data.

Blooms: Remember
Difficulty: 1 Easy
101. A section of the population we have targeted for analysis is:
A. a
statistic.
B. a
frame.
C. a
sample.
D. a
coven.
We must define the segment we want to look at (e.g., independent voters).

Blooms: Remember
Difficulty: 1 Easy
102. Which is not a time series variable?
A. Closing checkbook balances of 30 students on December 31 of this

year
B. Net earnings reported by Xena Corp. for the last 10
quarters
C. Dollar/euro exchange rates at 12 noon GMT for the last 30
days
D. Movie attendance at a certain theater for each Saturday last
year
If x1, x2,…, xn do not refer to n time periods, it isn't a time series.

Blooms: Apply
103. A good Likert scale may not have:
A. unequal distances between scale

points.
B. an odd number of scale
points.
C. a verbal label on each scale
point.
D. verbal anchors at its end
points.
Surveys try to create scales with meaningful intervals.

Blooms: Remember
104. A Likert scale with an odd number of scale points between "Strongly Agree" and "Strongly
Disagree":
A. cannot have equal scale

distances.
B. cannot have a neutral middle
point.
point.
D. is often used in marketing
surveys.
Likert scales should have arguably equal intervals. A middle neutral response is possible
with an odd number of scale points (e.g., 5 or 7).

Blooms: Apply
105. A Likert scale with an even number of scale points between "Strongly Agree" and "Strongly
Disagree":
A. cannot have equal scale

distances.
B. is intended to prevent "neutral"
choices.
point.
D. is rarely used in
surveys.
Likert scales should have arguably equal intervals. An even number of scale points (e.g., 4)
forces the respondent to "lean" toward one end of the scale or the other.

Blooms: Apply
A. Analysts rarely consult business periodicals (e.g., Bloomberg

Businessweek).
B. Web searches (e.g., Google) often yield unverifiable
data.
C. Government data sources (e.g., www.bls.gov) are often
costly.
D. Private statistical databases (e.g., CRSP) are usually
free.
Periodicals are often up-to-date and readily available data sources. Web data may be
unreliable, and searches may be directed toward obtaining payment for data. Private
research databases generally require a subscription, while government data sources
generally are free.

Blooms: Remember
Difficulty: 1 Easy
Topic: Data Sources
A. Analysts avoid business periodicals (e.g., Bloomberg

Businessweek).
B. Web searches (e.g., Google) yield reliable and easily verified
data.
C. Government data sources (e.g., www.bls.gov) usually are
free.
D. Private statistical databases (e.g., CRSP) usually are
free.
Periodicals are often up-to-date and readily available data sources. Web data may be
unreliable, and searches may be directed toward obtaining payment for data. Private
research databases generally require a subscription, while government data sources
generally are free.

Blooms: Remember
Difficulty: 1 Easy
Topic: Data Sources
Short Answer Questions

108. Which survey method would you recommend to survey opinions of airline passengers
about the cleanliness of the restrooms in the Detroit airport? Why not the others?
Restroom users are usually in a hurry and do not wish to talk to anyone while entering or
leaving the facility, so direct observation or handout surveys would not work. A
questionnaire could be e-mailed or mailed to a sample of frequent flyers. No telephone
surveys, because people would distrust the call. A web survey would have nonresponse
bias.
Feedback: This is a difficult sampling problem. Restroom users are usually in a hurry and
do not wish to talk to anyone while entering or leaving the facility. Thus, direct observation
or handout surveys would not work. Perhaps a questionnaire could be e-mailed or mailed
to a sample of frequent flyers who departed or arrived at this airport in a recent month, if a
major airline were willing to cooperate. This assumes that frequent flyers are a reasonable
target population. You would probably not use a telephone survey, because people would
distrust the call. A web survey would have nonresponse bias (i.e., respondents would
probably be those with a gripe). Students may digress into sampling methods (random,
systematic, cluster, stratified) instead of survey types. Ingenious students may propose
other novel methods of sampling opinions.
AACSB: Reflective Thinking

Blooms: Evaluate
Difficulty: 3 Hard
Topic: Surveys
109. What kind of sampling method would you suggest in order to tabulate the number of
formulas on a typical page of the Doane-Seward textbook? Defend your choice.
Pages are numbered, so a simple random sample would be easy, or a systematic sample
(e.g., every 20th page starting at page 17). Case could be made for cluster or stratified
samples (e.g., by chapter or topic).
Feedback: Since the pages are numbered, a simple random sample would be quite easy.
Have Excel print n random integers between 001 and 773 (or whatever the length of the
book is). You would want to exclude the table of contents, appendixes, indexes, and so
on). Another good choice would be a systematic sample (e.g., every 20th page starting at
page 17) or a variation such as every page divisible by 20. These methods would be
unbiased. Possible cases could be made for cluster or stratified samples (e.g., by chapter
or topical area), but these might offer little gain.

Blooms: Evaluate
110. How would you design a study to see whether drivers using hands-free cell phones are
distracted enough to slow their reactions to emergency situations? How would you collect
data?
No observation of drivers (too dangerous). Tests using a simulator would permit data to be
collected automatically and would permit stratified sampling by driver characteristics (e.g.,
age group, gender, cell phone type).
Feedback: Don't use direct observation of drivers (too dangerous). Tests using a simulator
would permit data to be collected automatically on reaction times to emergencies. This
would permit stratified sampling by driver characteristics (e.g., age group, gender, cell
phone type). Many answers are possible. The emphasis should be on how carefully the
student has thought about the question. Beware of simplistic answers or impossible data
collection schemes.

Blooms: Evaluate
Difficulty: 3 Hard
Topic: Surveys
111. Explain the concept of a focus group. In what ways does a focus group resemble a survey?
Why is a moderator desirable? What else is required to make a successful focus group?
Data collected in a focus group are richer in qualitative details and may contain
information that would be missed in a survey. A trained moderator can help keep the
group on track and manage interpersonal issues that may arise.
Feedback: Data collected in a focus group are richer in qualitative details, and may contain
information that would be missed in a survey. Yet a focus group is like a survey in that it
seeks to extract useful information and patterns from individuals. Participants are not
chosen completely at random, but rather are selected to represent different backgrounds
and diverse viewpoints of interest to the researchers. A well-trained moderator can help
keep the group on track and manage interpersonal issues that may arise.

Blooms: Evaluate
Chapter 03 Describing Data Visually Answer Key
1. It is easier to read the data values on a 3D column chart than on a 2D column

chart.
FALSE
Height is harder to judge on a 3D chart.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-06 Know the rules for effective bar charts and pie charts.
Topic: Bar Charts
2. The column chart should be avoided if you are plotting time series data.
FALSE
Line charts are more common, but bar charts also work for a time series.
AACSB: Analytic
Blooms: Understand
Topic: Bar Charts
3. The line chart is appropriate for categorical (qualitative) data.
FALSE
Only numerical data can be plotted on a line chart.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-05 Make an effective line chart using Excel.
Topic: Line Charts
4. The Pareto chart is used to display the "vital few" causes of problems.
TRUE
Causes are displayed in sorted order of frequency.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Bar Charts
5. Excel's pyramid chart is generally preferred to a bar chart.
FALSE
Avoid novelty charts when a plain bar chart will do.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-09 Recognize deceptive graphing techniques.
Topic: Deceptive Graphs
6. Excel's pyramid charts make it easier to read the data values.
FALSE
Avoid novelty charts when a plain bar chart will do.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
7. Dot plots are similar to histograms with many bins (classes).
TRUE
Height of the dot stack is analogous to bar height.
AACSB: Analytic
Blooms: Understand
Learning Objective: 03-01 Make a stem-and-leaf or dot plot by hand or by computer.
Topic: Stem-and-Leaf Displays and Dot Plots
8. Compared to a dot plot, we lose some detail when we present data in a frequency
distribution.
TRUE
Individual data values are easier to see on a dot plot.
AACSB: Analytic
Blooms: Understand
Learning Objective: 03-02 Create a frequency distribution for a data set.
Topic: Frequency Distributions and Histograms
9. Stacked dot plots are useful in understanding the association between two paired
quantitative variables (X, Y).
FALSE
You would prefer a scatter plot for X-Y data.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
10. Log scales are common because most people are familiar with them.
FALSE
Log scales seem to be harder for the average businessperson to interpret.
AACSB: Analytic
Blooms: Remember
Topic: Line Charts
11. Sturges' Rule should override judgment about the "right" number of histogram
bins.
FALSE
Sturges' Rule is only a starting point or guideline.
AACSB: Analytic
Blooms: Remember
Learning Objective: 03-03 Make a histogram with appropriate bins.
12. Sturges' Rule is merely a suggestion, not an ironclad requirement.
TRUE
Sturges' Rule is only a starting point or guideline.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
13. Excel's 3D pie charts are usually clearer than 2D pie charts.
FALSE
Many people like 3D better, but it is harder to judge slice size.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Pie Charts
14. A common error with pie charts is using too few "slices."
FALSE
The opposite is true (too many slices are often seen).
AACSB: Analytic
Blooms: Remember
Topic: Pie Charts
15. A pie chart can generally be used instead of a bar chart.
FALSE
No, a pie chart is specialized (only for parts of a whole).
AACSB: Analytic
Blooms: Understand
Topic: Pie Charts
16. A bar chart can sometimes be used instead of a line chart for time series data.
TRUE
Line charts and bar charts may be used with time series data.
AACSB: Analytic
Blooms: Understand
Topic: Bar Charts
17. Pie charts are attractive to statisticians, but are rarely used in business or general
media.
FALSE
Pie charts make it harder to judge data values.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Pie Charts
18. Pie charts are useful in displaying frequencies that sum to a total.
TRUE
That is exactly what pie charts are for.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Topic: Pie Charts
19. Dot plots may not reveal the shape of a distribution when the sample is small.
TRUE
You need a fairly large sample size to assess shape.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
20. Scatter plots are used to visualize association in samples of paired data (X, Y).
TRUE
That is exactly what a scatter plot is for.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-07 Make and interpret a scatter plot using Excel.
Topic: Scatter Plots
21. The zero origin rule may be waived for bar charts if the objective is merely to
visualize relative change over time.
FALSE
Nonzero origin is always potentially deceptive if we want to know relative size.
AACSB: Analytic
Blooms: Apply
22. In a bimodal histogram, the two highest bars will have the same height.
FALSE
Not necessarily, though they might be the same.
AACSB: Analytic
Blooms: Understand
Learning Objective: 03-04 Identify skewness; modal classes; and outliers in a histogram.
23. A frequency distribution is a tabulation of n data values into classes called bins.
TRUE
This is the definition of a frequency distribution.
AACSB: Analytic
Blooms: Remember
24. A dot plot would be useful in visualizing scores on an exam in a class of 30
students.
TRUE
Because the sample is small and data values are discrete, a dot plot would be
good.
AACSB: Analytic
Blooms: Apply
25. A frequency distribution usually has equal bin widths.
TRUE
Unequal bins are possible, but rare (software default is equal bins).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
26. Line charts are not used for cross-sectional data.
TRUE
Line charts are for time series data.
AACSB: Analytic
Blooms: Understand
Topic: Line Charts
27. A scatter plot is useful in visualizing trends over time.
FALSE
Use a line chart to visualize trends.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
28. A scatter plot requires two quantitative variables (i.e., not categorical data).
TRUE
An X-Y plot makes no sense for nonnumerical data.
AACSB: Analytic
Blooms: Understand
29. The number of bins in this histogram (caffeine content in mg/oz for 65 soft drinks)
is consistent with Sturges' Rule.
FALSE
Sturges' Rule suggests k = 1 + 3.3 log(65) = 6.98, or about 7 bins.
AACSB: Analytic
Blooms: Apply
30. Because most data values are on the left, we would say that this dot plot (burglary
rates per 100,000 persons in 350 U.S. cities) shows a distribution that is skewed
to the left (negatively skewed).
FALSE
Long right tail suggests positive skewness.
AACSB: Analytic
Blooms: Evaluate
31. It is possible to construct a histogram or frequency polygon with open-ended

classes.
FALSE
Without limits, we can't mark bin limits on a graph.
AACSB: Analytic
Blooms: Understand
32. Except for the Y-axis scaling, a histogram will look the same if we use relative
frequencies instead of raw frequencies (with the same bin limits).
TRUE
Relative frequencies are just raw frequencies divided by the sample size.
AACSB: Analytic
Blooms: Understand
33. The ______________ can be used to differentiate the "vital few" causes of quality
problems from the "trivial many" causes of quality problems.
A. histogra
m
B. scatter
plot
C. Pareto
chart
D. box
plot
A Pareto chart shows the causes in descending order of frequency.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Bar Charts
34. Which is not a characteristic of a dot plot?
A. Simplicit
y
B. Legibilit
y
C. Wide
bins
D. Dot
stacking
In a dot plot, "bins" are really individual data values (not a range).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
35. Which display is most likely to reveal association between X and Y?
A. Dot
plot
B. Scatter
plot
C. Histogra
m
D. Pareto
chart
Scatter plots reveal covariance between X and Y.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
36. Which criterion is least likely to be used in choosing bins (classes) in a frequency
distribution?
A. Following Sturges'
Rule
B. Selecting "nice" class (bin)
limits
C. Using aesthetic
judgment
D. Always starting at
zero
Bins can start at any value.
AACSB: Analytic
Blooms: Understand
37. Which of the following is true?
A. Line charts are not used for cross-sectional

data.
B. Line charts are useful for visualizing categorical
data.
C. Pyramid charts are generally preferred to bar
charts.
D. Pie charts can generally be used instead of bar
charts.
Line charts require numerical data over time.
AACSB: Analytic
Blooms: Understand
Topic: Line Charts
38. Histograms generally do not reveal the:
A. exact data
range.
B. modal classes
(bins).
C. degree of
skewness.
D. relative
frequencies.
"Nice" bin limits may be at xmin and xmax.
AACSB: Analytic
Blooms: Understand
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.
AACSB: Analytic
Blooms: Evaluate
Topic: Bar Charts
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).
AACSB: Analytic
Blooms: Evaluate
Topic: Line Charts
41. Which is not a tip for effective column charts?
A. Time usually goes on the horizontal

axis.
B. Bar height should be proportional to the quantity
displayed.
C. Label data values at the top of each bar 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.
AACSB: Analytic
Blooms: Understand
Topic: Bar Charts
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.
AACSB: Analytic
Blooms: Remember
Topic: Line Charts
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.
AACSB: Analytic
Blooms: Understand
Topic: Excel Charts
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.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Topic: Pie Charts
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.
AACSB: Analytic
Blooms: Remember
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.
AACSB: Analytic
Blooms: Understand
Topic: Pie Charts
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.
AACSB: Analytic
Blooms: Analyze
Topic: Pie Charts
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
AACSB: Analytic
Blooms: Analyze
Topic: Pie Charts
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)
AACSB: Analytic
Blooms: Analyze
Topic: Pie Charts
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.
AACSB: Analytic
Blooms: Remember
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.
AACSB: Analytic
Blooms: Remember
Learning Objective: 03-08 Make simple tables and pivot tables.
Topic: Tables
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 many digits becomes confusing.
AACSB: Analytic
Blooms: Remember
Topic: Tables
53. Pivot tables:
A. are similar in purpose to simple 2D pie

charts.
B. show how the data "pivot" around a
point.
C. show cross-tabulations of
data.
D. are not really tables at
all.
A pivot table shows frequency counts (or sums or averages) in a row-column

format.
AACSB: Analytic
Blooms: Remember
Topic: Tables
54. Which of the following is least useful in visualizing categorical data?
A. Bar
chart
B. Pie
chart
C. Line
chart
D. Pareto
chart
Line charts are for numerical data over time.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Topic: Line Charts
55. Which is considered a novelty chart in Excel?
A. Pie
chart
B. Column
chart
C. Pyramid
chart
D. Line
chart
Pyramid charts utilize the area trick and are hard to read.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
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.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Tables
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.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
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.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
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.
AACSB: Analytic
Blooms: Evaluate
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.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
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.
AACSB: Analytic
Blooms: Understand
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.
AACSB: Analytic
Blooms: Remember
Topic: Line Charts
63. Which is not a characteristic of using a log scale to display time series data?
A. A log scale helps if we are comparing changes in two time series of dissimilar
magnitude.
B. General business audiences find it easier to interpret a log
scale.
C. If you display data on a log scale, equal distances represent equal
ratios.
Some business audiences lack training to understand a simple log scale.
AACSB: Analytic
Blooms: Understand
Topic: Line Charts
64. This histogram shows Chris's golf scores in his last 77 rounds at Devil's Ridge.
Which is not a correct statement?
A. The number of bins is consistent with Sturges'

Rule.
B. The histogram has a noticeable bimodal
shape.
C. The modal class is 78 <
80.
D. About 15 percent of his scores are in the interval 74 <
76.
Sturges' Rule suggests k = 1 + 3.3 log(77) = 7.22 or about 7 bins.
AACSB: Analytic
Blooms: Apply
65. Which is not revealed on a scatter plot?
A. Pairs of observed (xi, yi) data

values
B. Nonlinear relationships between X and
Y
C. Missing data values due to
nonresponses
D. Unusual data values
(outliers)
Excel simply omits missing data for a scatter plot.
AACSB: Analytic
Blooms: Analyze
66. The distribution pictured below is:
A. bimodal and skewed

right.
B. bimodal and skewed
left.
C. skewed
right.
D. skewed
left.
You can see two modes and a longer right tail.
AACSB: Analytic
Blooms: Apply
67. The distribution pictured below is:
A. bimodal and skewed

right.
B. bimodal and skewed
left.
C. skewed
right.
D. skewed
left.
You can see one mode and a long left tail.
AACSB: Analytic
Blooms: Apply
68. The graph below illustrates which deceptive technique?
A. Poor Y axis
scale
B. Area
trick
C. Unclear grid
lines
D. Dramatic
title
Area trick because area increases along with height.
AACSB: Analytic
Blooms: Analyze
69. Which is a characteristic of a histogram's bars?
A. The bar widths reveal the cumulative frequencies of data

values.
B. The bar widths indicate class intervals and their areas indicate
frequencies.
C. The bar widths show class intervals and their heights indicate
frequencies.
D. The bar widths are an exact multiple of the sample
size.
Histogram bar height shows frequencies within each interval.
AACSB: Analytic
Blooms: Understand
70. Below is a frequency distribution of earnings of 50 contractors in a country.
Regarding this distribution, which of the following is correct?
A. The frequency distribution contains too many class

intervals.
B. The class interval limits are
ambiguous.
C. Too few classes were
chosen.
D. The class intervals are too
wide.
Overlapping bin limits.
AACSB: Analytic
Blooms: Apply
71. Bob found an error in the following frequency distribution. What is it?
A. The class limits are overlapping too

much.
B. The classes are not collectively
exhaustive.
C. There are too many classes by Sturges'
Rule.
D. The first class must start at
0.
But where would you put a data value of 23?
AACSB: Analytic
Blooms: Analyze
72. The point halfway between the bin limits in a frequency distribution is known as
the:
A. bin
midpoint.
B. bin
limit.
C. bin
frequency.
D. bin
width.
Bin midpoint is the average of the bin limits.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
73. When using a dot plot with a small sample, which is least apparent?
A. Dispersion of data values within the

array
B. The overall shape of the
distribution
C. Central tendency of data in the data
set
D. Location of data values within the
array
Shape cannot be judged very well in small samples.
AACSB: Analytic
Blooms: Apply
74. If you have 256 data points, how many classes (bins) would Sturges' Rule
suggest?
A. 6
B. 7
C. 8
D. 9
Sturges' Rule suggests k = 1 + 3.3 log (256) = 9 bins.
AACSB: Analytic
Blooms: Apply
75. If you have 32 data points, how many classes (bins) would Sturges' Rule suggest?
A. 5
B. 6
C. 7
D. 8
AACSB: Analytic
Blooms: Apply
76. Which statement is not true concerning Sturges' Rule?
A. It proposes adding one class (bin) to the histogram for each extra
observation.
B. If you double the sample size, you should add one
class.
C. Its purpose is to tell how many classes (bins) to use in a frequency
distribution.
D. It is only a guideline and may be overruled by other
considerations.
Sturges' Rule suggests about k = 1 + 3.3 log (n) bins.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
77. To classify prices from 62 recent home sales, Sturges' Rule would recommend:
A. 7
classes.
B. 8
classes.
C. 9
classes.
D. 10
classes.
AACSB: Analytic
Blooms: Apply
78. A histogram can be defined as:
A. a chart whose bar widths show the cumulative frequencies of data

values.
B. a chart whose bar widths indicate class intervals and whose areas indicate
frequencies.
C. a chart whose bar widths show class intervals and whose heights indicate
frequencies.
D. a chart whose bar heights represent the value of each data
point.
Check textbook definition of histogram.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
79. An open-ended bin (e.g., "50 and over") might be seen in a frequency distribution
when:
A. some data values are not

integers.
B. data values are non-
numerical.
C. extremely large data values
exist.
D. some data are
missing.
For example, General Electric's CEO earned $15.2 million in 2010, which would not
fit the bins of a histogram of incomes for ordinary taxpayers.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
80. The width of a class in a frequency distribution is known as the:
A. midpoint
.
B. class
limit.
C. bin
frequency.
D. class
interval.
Bin width and class interval mean the same.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
81. A population is of size 5,500 observations. When the data are represented in a
relative frequency distribution, the relative frequency of a given interval is 0.15.
The frequency in this interval is equal to:
A. 4,675.
B. 800.
C. 675.
D. 825.
15 percent of 5,500 is 825.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
82. A population has 75 observations. One class interval has a frequency of 15
observations. The relative frequency in this category is:
A. 0.20.
B. 0.10.
C. 0.15.
D. 0.75.
15/75 = 0.20, or 20 percent.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
83. Below is a sorted stem-and-leaf diagram for the measured speeds (miles per
hour) of 49 randomly chosen vehicles on highway I-80 in Nebraska. How many
vehicles were traveling exactly the speed limit (70 mph)?
A. 0
B. 1
C. 19
D. Impossible to
tell
Third stem has only one value of 70.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
hour) of 49 randomly chosen vehicles on highway I-80 in Nebraska. What is the
highest observed speed?
A. 92
B. 90
C. 87
D. Impossible to
tell
Last stem top data value is 92.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
mode?
A. 62
B. 79
C. 65
D. Impossible to
tell
The value 65 occurs 4 times (some other data values occur 3 times).
AACSB: Analytic
Blooms: Understand
fourth slowest speed in the sorted data array?
A. 61
B. 60
C. 55
D. Impossible to
tell
Third stem second data value is 61.
AACSB: Analytic
Blooms: Understand
hour) of 49 randomly chosen vehicles on highway I-80 in Nebraska. The modal
class is:
A. 60 but less than

70.
B. 70 but less than
80.
C. 80 but less than
90.
D. impossible to
determine.
All the raw data are available so we can calculate any statistic.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
88. A statistician prepared a bar chart showing, in descending order, the frequency of
six underlying causes of general aviation accidents (pilot error, mechanical
problems, disorientation, miscommunication, controller error, other). What would
we call this type of chart?
A. Pivot
table
B. Pareto
chart
C. Log scale
chart
D. Frequency
polygon
A Pareto chart displays the causes in descending order of frequency.
AACSB: Analytic
Blooms: Remember
Topic: Bar Charts

89. Briefly list strengths and weaknesses of this display. Cite specific principles of
good graphs, as well as offering your own general interpretation.
Colorful, cute subtitle adds nothing; 3D bars hard to read; too many pie slices; too
much information; distracting pictures; no source; no time period; no units of
measurement.
Feedback: Colorful, but cute subtitle adds nothing; 3D bars are hard to read; too
many pie slices; too much information displayed; distracting pictures; no source;
no time period stated; units of measurement not given (e.g., surgeries
performed?).

Blooms: Evaluate
Attractive, attention-getting, but area trick is used (bars get wider as well as
taller), no source, definition is unclear.
Feedback: Attractive, attention-getting, but area trick is used (bars get wider as
well as taller), no source, definition is unclear (whose fire losses—homes?
businesses? all?).

Blooms: Evaluate
Clear graph, clear title, but no source, no definition of calls, no time period, and,
worst of all, a nonzero origin.
Feedback: Sober, clear, attractive graph with clear title, but no source, no
definition of calls (whose?), no time period stated, and, worst of all, the graph has
a nonzero origin, which exaggerates changes.

Blooms: Evaluate
Topic: Bar Charts
Unhelpful title, units not given, no source, no definitions, cluttered. Probably a

table would work better.
Feedback: Unhelpful title, units not given, no source, no definition of what is

shown, too cluttered. Probably a table would work better.

Blooms: Evaluate
Topic: Bar Charts
As pie charts go, not too bad, labeled clearly, 2D is easy to read, colors provide
good contrast, but no year of source is given.
Feedback: As pie charts go, not too bad (not too many slices, labeled clearly, 2D is
easy to read, colors provide good contrast). Basis for the data is not shown (what
year), but source is given.

Blooms: Evaluate
Topic: Pie Charts
94. A study found the following parts per billion of nitrosamines in a sample of
domestic beers. (a) Construct a frequency distribution of four classes with equal
class sizes. (b) Construct another frequency distribution of four classes using
unequal class intervals or an open-ended interval for the highest class. (c) Which
frequency distribution is preferable? Why?
Answers will vary. Sturges' Rule suggests 5 to 6 bins, but the outlier (15.75) poses
a problem that might require unequal bins (e.g., 1.00 < 2.00, 2.00 < 4.00, 4.00 <
8.00, 8.00 < 16.00) instead of four equal-width bins (e.g., 0.00 < 4.00, 4.00 < 8.00,
8.00 < 12.00, 12.00 < 16.00). Equal width bins are usually preferred to avoid visual
distortion, but in this case there would be an empty bin (8.00 < 12.00). An
alternative might be an open-ended top interval.
Feedback: Answers will vary. Sturges' Rule suggests 5 to 6 bins, but the outlier
(15.75) poses a problem that might require unequal bins (e.g., 1.00 < 2.00, 2.00 <
4.00, 4.00 < 8.00, 8.00 < 16.00) instead of four equal-width bins (e.g., 0.00 < 4.00,
4.00 < 8.00, 8.00 < 12.00, 12.00 < 16.00). Equal width bins are usually preferred to
avoid visual distortion, but in this case there would be an empty bin (8.00 <
12.00). An alternative might be an open-ended top interval.

Blooms: Evaluate
95. Students were given a take-home statistics assignment and were asked to write
down how long it took them (in minutes). Their answers are shown below. (a)
Make a dot plot. (b) Use your judgment to construct a frequency distribution using
whatever classes (bins) you wish. (c) Make a histogram. (d) Describe the
distribution. (e) Did your bin choices agree with Sturges' Rule? If not, why not?
Dotplot suggests right-skewness. Sturges' Rule suggests 6 classes, but 7 bins of

size 5 might be needed to show enough detail, while four classes of size 10 might
not show enough detail.
Feedback: The dotplot suggests right-skewness:
Histogram answers will vary depending on the number of classes and the size of
the intervals selected. The histogram will be skewed to the right. Sturges' Rule
suggests 6 classes, but 7 classes of size 5 will be needed to show enough detail
(see below). Four classes of size 10 are OK but may not show enough detail.
Blooms: Evaluate
96. Students were asked to record how many hours they worked at an outside job last
week. Their answers are shown below. (a) Make a dot plot. (b) Use your judgment
to construct a frequency distribution using whatever classes (bins) you wish. (c)
Make a histogram. (d) Describe the distribution. (e) Did your bin choices agree
with Sturges' Rule? If not, why not?
Dotplot suggests right-skewness. Sturges' Rule suggests 5 or 6 classes. Six

classes of size 10 would work, though the two 50s are on the end of the top class.
Feedback: The dotplot suggests right-skewness:
Histogram answers will vary depending on the number of classes and the size of
the intervals selected. The histogram will be slightly skewed to the right. Sturges'
Rule suggests 5 or 6 classes. Six classes of size 10 would work, though the two
50s are on the end of the top class.
Blooms: Evaluate
97. Ten part-time servers at a high-end restaurant were asked how many hours they
worked last week, and how much they earned. The results are shown below. (a)
Make a scatter plot. (b) Describe it. (c) What is your best guess of the average
hourly pay?
Positive relationship on a scatter plot, somewhat linear, with slope about $10.
Feedback: Clearly a positive relationship, somewhat linear. Most students will

guess that the average rate of pay is about $10 (rise over run).
AACSB: Analytic
Blooms: Apply
98. Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD
extended cab short box truck. Describe Craig's gasoline mileage based on this
histogram of 195 tanks of gas.
Strong clustering near 13 MPG, a few possible outliers, only one mode.
Feedback: Strong clustering near 13 MPG but a few possible outliers. Only one
mode.
AACSB: Analytic
Blooms: Evaluate
99. Here are advertised prices of 23 used Chevy Impalas. Describe the distribution's
shape. Is the number of histogram classes correct?
Correct, since Sturges' Rule suggests 5 or 6 classes; shape is somewhat skewed

right.
Feedback: OK since Sturges' Rule suggests 5 or 6 classes. Shape is somewhat

skewed right.

Blooms: Apply
Source given, axes are clearly labeled, title is not dramatic, but does start at zero
and the distracting pictures obscure the data and create a feeling of emotional
distress.
Feedback: Data appear to be from a reliable source, axes are clearly labeled, and
title is not dramatic. But the graph does not start at zero, which exaggerates the
increase in bankruptcies, and the distracting pictures obscure the data and create
a feeling of emotional distress.

Blooms: Evaluate
No source, no units given, area trick distorts the data, no definitions, graphic is
appealing but it adds nothing to the data, title is not dramatic, data labels are
good, Y-axis starts at zero, years are clearly labeled, gridlines are not too
prominent.
Feedback: No source, no units given (dollars? number of players sold?), area trick
distorts the data, and no indication of what the data represent (sales in one store?
One city?). Graphic is appealing, but it adds nothing to the data. Title is not
dramatic, data labels are good, Y-axis starts at zero, years are clearly labeled,
gridlines are not too prominent.

Blooms: Evaluate
Proportions are good, title is clear, units are not defined, no source, a bit cluttered.
Feedback: Proportions are good, and title is clear, but units are not defined
(dollars? units sold?). No source. A bit cluttered, but only alternative would be a
table.

Blooms: Evaluate
Topic: Bar Charts
Eye-catching and colorful, title is vague, units are not given, too many pie slices,
3D makes it hard to assess size of slices, no source, no year.
Feedback: Eye-catching and colorful, but title is vague, units are not given, too
many pie slices, 3D makes it hard to assess size of slices, no source, no year.

Blooms: Evaluate
Topic: Pie Charts
Amusing and colorful, but too much information shown, pictures are distracting,
no time period or dates given, no source, and nonzero origin exaggerates changes.
Feedback: Amusing and colorful, but too much information shown, pictures are
distracting, no time period or dates given, no source, whose stocks are they?
Nonzero origin exaggerates changes.

Blooms: Evaluate
Colorful and amusing, but no clue what is being shown; deceptive area trick; no
dates given; no source; useless title.
Feedback: Colorful and amusing, but no clue what is being shown. Whose
retirement? What kind of investment is this? Deceptive area trick (dollar signs
grow in width as well as height), no dates given, no source, useless title.

Blooms: Evaluate
Amusing and colorful but dramatic, leading title, no dates, distracting pictures,
area trick, no source, what institution(s) does the graph refer to?
Feedback: Amusing and colorful but dramatic, leading title, no dates, distracting
pictures, area trick (bars grow wider as well as taller), no source, what
institution(s) does the graph refer to?

Blooms: Evaluate
Funny pictures, attention-getting, but a simple line chart would do, dramatic title
belies the data (no obvious "progress"), whose scores, when, no source given.
Feedback: Funny pictures, attention-getting, but a simple line chart would do.
Leading, dramatic title belies the data (no obvious "progress"). Whose scores?
When? No source given.

Blooms: Evaluate
108. Briefly comment on strengths and weaknesses of this display. Cite specific
principles of good graphs, as well as offering your own general interpretation.
Attractive, but area trick is deceptive (bars get wider as well as taller); distracting
pictures; how many physicians; no source.
Feedback: Attractive, but area trick is deceptive (bars get wider as well as taller);
distracting pictures; how many physicians (otherwise total tells us little—maybe
they just hired more docs).

Blooms: Evaluate
Chapter 06 Discrete Probability Distributions Answer Key
1. A random variable is a function or rule that assigns a numerical value to each

outcome in the sample space of a stochastic (chance) experiment.
TRUE
Review definition of random variable.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions
2. A discrete random variable has a countable number of distinct values.
TRUE
Review definition of random variable.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
3. The expected value of a discrete random variable E(X) is the sum of all X values
weighted by their respective probabilities.
TRUE
Review definition of expected value.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.
4. A discrete distribution can be described by its probability density function (PDF)

or by its cumulative distribution function (CDF).
TRUE
Review definition of PDF and CDF.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-03 Define probability distribution; PDF; and CDF.
5. A random variable may be discrete or continuous, but not both.
TRUE
Review definition of discrete and continuous.
AACSB: Analytic
Blooms: Remember
6. To describe the number of blemishes per sheet of white bond paper, we would
use a discrete uniform distribution.
FALSE
Not all X values would be equally likely (Poisson distribution would be better).
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
7. The outcomes for the sum of two dice can be described as a discrete uniform
distribution.
FALSE
The sum of two uniforms is a triangular distribution, as shown in the textbook

example.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution
8. A discrete binomial distribution is skewed right when π > .50.
FALSE
Most outcomes would be on the right, so a longer left tail exists.
AACSB: Analytic
Blooms: Apply
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
9. When π = .70 the discrete binomial distribution is negatively skewed.
TRUE
Most outcomes would be on the right, so a longer left tail exists.
AACSB: Analytic
Blooms: Apply
10. The Poisson distribution describes the number of occurrences within a randomly
chosen unit of time or space.
TRUE
Poisson describes events per unit of time.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
11. The Poisson distribution can be skewed either left or right, depending on λ.
FALSE
Poisson is always right-skewed.
AACSB: Analytic
Blooms: Remember
12. Although the shape of the Poisson distribution is positively skewed, it becomes
more nearly symmetric as its mean becomes larger.
TRUE
Although always right-skewed, the Poisson approaches a normal as the mean

increases.
AACSB: Analytic
Blooms: Remember
13. As a rule of thumb, the Poisson distribution can be used to approximate a

binomial distribution when n ≥ 20 and π ≤ .05.
TRUE
The Poisson is a better approximation to binomial when n is large and π is small.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
14. The hypergeometric distribution is skewed right.
FALSE
The hypergeometric is skewed right if s/N < .50 (and conversely).
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
15. The hypergeometric distribution assumes that the probability of a success

remains the same from one trial to the next.
FALSE
The point of the hypergeometric is that π is not constant.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
16. The hypergeometric distribution is not applicable if sampling is done with

replacement.
TRUE
The hypergeometric is used when there is no replacement in sampling from a

finite population
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
17. As a rule of thumb, the binomial distribution can be used to approximate the
hypergeometric distribution whenever the population is at least 20 times as large
as the sample.
TRUE
The rule is to use the approximation if n/N < .05.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
18. An example of a geometric random variable is the number of pine trees with pine
beetle infestation in a random sample of 15 pine trees in Colorado.
FALSE
This is a binomial experiment, assuming π is constant.
AACSB: Analytic
Blooms: Apply
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
19. Calculating the probability of getting three aces in a hand of five cards dealt from
a deck of 52 cards would require the use of a hypergeometric distribution.
TRUE
This is a hypergeometric experiment (no replacement).
AACSB: Analytic
Blooms: Understand
20. The Poisson distribution is appropriate to describe the number of babies born in a
small hospital on a given day.
TRUE
Events per unit of time with no clear upper limit.
AACSB: Analytic
Blooms: Apply
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
21. The gender of a randomly chosen unborn child is a Bernoulli event.
TRUE
Two outcomes (0 or 1).
AACSB: Analytic
Blooms: Understand
Topic: Bernoulli Distribution
22. The Poisson distribution has only one parameter.
TRUE
The one parameter is the mean.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
23. The standard deviation of a Poisson random variable is the square root of its
mean.
TRUE
Review Poisson model.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
24. Customer arrivals per unit of time would tend to follow a binomial distribution.
FALSE
This would be a Poisson (arrivals per unit of time).
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
25. The two outcomes (success, failure) in the Bernoulli model are equally likely.
FALSE
The probability of success need not be .50.
AACSB: Analytic
Blooms: Remember
26. The expected value of a random variable is its mean.
TRUE
The mean is another name for expected value.
AACSB: Analytic
Blooms: Remember
27. A discrete probability distribution:
A. is a listing of all possible values of the random

variable.
B. assigns a probability to each possible value of the random
variable.
C. can assume values between -1 and
+1.
D. is independent of the parameters of the
distribution.
A discrete PDF assigns a probability to each X value.
AACSB: Analytic
Blooms: Understand
28. The number of male babies in a sample of 10 randomly chosen babies is a:
A. continuous random
variable.
B. Poisson random
variable.
C. binary random
variable.
D. binomial random
variable.
Constant probability of success in n trials.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
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.
Review definitions of discrete distributions.
AACSB: Analytic
Blooms: Understand
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.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
31. Which is a 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.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
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.
Review characteristics of the distributions. A hypergeometric is symmetric only if

s/N = .50.
AACSB: Analytic
Blooms: Understand
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. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
Geometric model describes the number of trials until the first success.
AACSB: Analytic
Blooms: Apply
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. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
n = 12 Bernoulli trials with fixed probability of success would be a binomial model.
AACSB: Analytic
Blooms: Apply
35. Which distribution is most nearly appropriate to describe the number of fatalities
in Texas in a given year due to poisonous snakebites?
A. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
Events per unit of time with no clear upper limit would resemble a Poisson
distribution.
AACSB: Analytic
Blooms: Apply
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. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
Geometric describes the number of trials to first success.
AACSB: Analytic
Blooms: Apply
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. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
distribution.
AACSB: Analytic
Blooms: Apply
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. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
distribution.
AACSB: Analytic
Blooms: Apply
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. Hypergeometri
c
C. Binomia
l
D. Unifor
m
Sampling (n = 4 printers) without replacement with known number of "successes"

(s = 3 damaged printers) in the population (N = 28 printers).
AACSB: Analytic
Blooms: Apply
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. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
distribution.
AACSB: Analytic
Blooms: Apply
41. Which model best describes the number of blemishes per sheet of white bond
paper?
A. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
Events per unit of area with no clear upper limit would resemble a Poisson
distribution.
AACSB: Analytic
Blooms: Apply
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. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
Sampling (n = 8 calls selected) without replacement with known number of

"successes" (s = 4 incorrect quotes) in the population (N = 40 quotes).
AACSB: Analytic
Blooms: Apply
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. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
Independent events per unit of time with no clear upper limit would be Poisson.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
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. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
Sampling (n = 5 tourists selected) without replacement with known number of

"successes" (s = 10 Europeans) in the population (N = 40).
AACSB: Analytic
Blooms: Apply
45. Which model best describes the number of births in a hospital until the first twins
are delivered?
A. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
Geometric distribution describes the number of trials until the first success.
AACSB: Analytic
Blooms: Apply
46. On a randomly chosen Wednesday, which probability model would you use to
describe the number of convenience store robberies in Los Angeles?
A. Binomia
l
B. Poisso
n
C. Hypergeometri
c
D. Geometri
c
AACSB: Analytic
Blooms: Apply
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. Binomia
l
B. Geometri
c
C. Unifor
m
D. Poisso
n
Geometric distribution describes the number of trials until the first success.
AACSB: Analytic
Blooms: Apply
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.
AACSB: Analytic
Blooms: Apply
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.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
50. A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner
will be selected at random. At what ticket price would a ticket buyer expect to
break even?
A. $0.50
B. $0.25
C. $0.75
D. $1.00
Expected winning is (1/4000) × $1000 = $0.25.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
51. A die is rolled. If it rolls to a 1, 2, or 3 you win $2. If it rolls to a 4, 5, or 6 you lose
$1. Find the expected winnings.
A. $0.50
B. $3.00
C. $1.50
D. $1.00
E(X) = (3/6) × $2 + (3/6) × (-$1) = $0.50.
AACSB: Analytic
Blooms: Apply
52. A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4, 5, or 6 you
lose $1. Find the expected winnings.
A. $0.00
B. $1.00
C. $0.50
D. $0.25
E(X) = (2/6) × $2 + (4/6) × (-$1) = $0.6667 - $0.6667 = 0.
AACSB: Analytic
Blooms: Apply
53. A carnival has a game of chance: a fair coin is tossed. If it lands heads you win
$1.00 and if it lands tails you lose $0.50. How much should a ticket to play this
game cost if the carnival wants to break even?
A. $0.25
B. $0.50
C. $0.75
D. $1.00
E(X) = (.5) × $1 + (.5) × (-$.50) = $0.50 - $0.25 = $0.25.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
54. Ephemeral Services Corporation (ESCO) knows that nine other companies besides
ESCO are bidding for a $900,000 government contract. Each company has an
equal chance of being awarded the contract. If ESCO has already spent $100,000
in developing its bidding proposal, what is its expected net profit?
A. $100,00
0
B. $90,000
C. -
$10,000
D. $
0
E(X) = (1/9) × $900,000 = $100,000. ESCO only can expect to cover its sunk cost
(no profit).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
55. The discrete random variable X is the number of students that show up for
Professor Smith's office hours on Monday afternoons. The table below shows the
probability distribution for X. What is the expected value E(X) for this distribution?
A. 1.2
B. 1.0
C. 1.5
D. 2.0
For each X, multiply X time P(X) and sum the values.
AACSB: Analytic
Blooms: Apply
probability distribution for X. What is the probability that at least 1 student comes
to office hours on any given Monday?
A. .30
B. .40
C. .50
D. .60
P(X ≥ 1) = 1 - P(X = 0) = 1 - .40 = .60.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
probability distribution for X. What is the probability that fewer than 2 students
come to office hours on any given Monday?
A. .10
B. .40
C. .70
D. .90
P(X < 2) = P(X = 0) + P(X = 1) = .40 + .30 = .70.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
58. The discrete random variable X is the number of passengers waiting at a bus stop.
The table below shows the probability distribution for X. What is the expected
value E(X) for this distribution?
A. 1.1
B. 1.3
C. 1.7
D. 1.9
AACSB: Analytic
Blooms: Apply
59. Given the following probability distribution, what is the expected value of the
random variable X?
A. 175
B. 150
C. 200
D. 205
AACSB: Analytic
Blooms: Apply
60. Which of the following characterizes a Bernoulli process?
A. A random experiment that has only two

outcomes.
B. The probability of "success" varies with each
trial.
C. Either outcome has the same chance of
occurrence.
D. The "success" must be a desirable
outcome.
Review characteristics of the Bernoulli process.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
61. The binomial distribution describes the number of:
A. trials to obtain the first "success" in a Bernoulli

process.
B. trials to obtain n "successes" in a Bernoulli
process.
C. "successes" or "failures" in a Bernoulli
process.
D. "successes" in n Bernoulli
trials.
Review characteristics of the binomial distribution.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
62. Which of the following is not a requirement of a binomial distribution?
A. Constant probability of
success
B. Only two possible Bernoulli
outcomes
C. Fixed number of
trials
D. Equally likely
outcomes
AACSB: Analytic
Blooms: Remember
63. The binomial distribution is symmetrical when:
A. π = 1 and 1 - π
= 0.
B. π = ¼ and 1 - π =
¾.
C. π = ½ and 1 - π =
½.
D. π = 0 and 1 - π
= 1.
AACSB: Analytic
Blooms: Remember
64. The variance will reach a maximum in a binomial distribution when:
A. π = 1 and 1 - π
= 0.
B. π = ¼ and 1 - π =
¾.
C. π = ½ and 1 - π =
½.
D. π = 0 and 1 - π
= 1.
Review formula for the binomial distribution standard deviation.
AACSB: Analytic
Blooms: Remember
Difficulty: 3 Hard
65. Which distribution is most strongly right-skewed?
A. Binomial with n = 50, π =

.70
B. Binomial with n = 50, π =
.90
C. Binomial with n = 50, π =
.40
D. Binomial with n = 50, π =
.10
AACSB: Analytic
Blooms: Understand
66. A random variable is binomially distributed with n = 16 and π = .40. The expected
value and standard deviation of the variables are:
A. 2.00 and
1.24
B. 4.80 and
4.00
C. 6.40 and
1.96
D. 2.00 and
1.20
AACSB: Analytic
Blooms: Remember
67. The expected value (mean) of a binomial variable is 15. The number of trials is 20.
The probability of "success" is:
A. .25
B. .50
C. .75
D. .30
Set E(X) = nπ = (20)π = 15 and solve for π.
AACSB: Analytic
Blooms: Understand
68. If 90 percent of automobiles in Orange County have both headlights working, what
is the probability that in a sample of eight automobiles, at least seven will have
both headlights working?
A. .6174
B. .3826
C. .8131
D. .1869
Use Appendix A with n = 8 and π = .90 to find P(X ≥ 7) or else use the Excel
function =1-BINOM.DIST(6,8,.90,1) = .8131.
AACSB: Analytic
Blooms: Apply
69. In Quebec, 90 percent of the population subscribes to the Roman Catholic religion.
In a random sample of eight Quebecois, find the probability that the sample
contains at least five Roman Catholics.
A. .0050
B. .0331
C. .9950
D. .9619
AACSB: Analytic
Blooms: Apply
70. Hardluck Harry has a batting average of .200 (i.e., a 20 percent chance of a hit
each time he's at bat). Scouts for a rival baseball club secretly observe Harry's
performance in 12 random times at bat. What is the probability that Harry will get
more than 2 hits?
A. .2055
B. .2362
C. .7946
D. .4417
AACSB: Analytic
Blooms: Apply
71. The probability that a visitor to an animal shelter will adopt a dog is .20. Out of
nine visits, what is the probability that at least one dog will be adopted?
A. .8658
B. .3020
C. .5639
D. .1342
AACSB: Analytic
Blooms: Apply
72. Based on experience, 60 percent of the women who request a pregnancy test at a
certain clinic are actually pregnant. In a random sample of 12 women, what is the
probability that at least 10 are pregnant?
A. .0639
B. .1424
C. .0196
D. .0835
AACSB: Analytic
Blooms: Apply
73. If 5 percent of automobiles in Oakland County have one burned-out headlight,

what is the probability that, in a sample of 10 automobiles, none will have a
burned-out headlight?
A. .5987
B. .3151
C. .0116
D. .1872
Use Appendix A with n = 10 and π = .05 find P(X = 0) or else use the Excel
function =BINOM.DIST(0,10,.05,0) = .59874.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
74. Jankord Jewelers permits the return of their diamond wedding rings, provided the
return occurs within two weeks. Typically, 10 percent are returned. If eight rings
are sold today, what is the probability that fewer than three will be returned?
A. .9950
B. .9619
C. .0331
D. .1488
Use Appendix A with n = 8 and π = .10 to find P(X < 3) or else use the Excel
AACSB: Analytic
Blooms: Apply
75. The probability that an Oxnard University student is carrying a backpack is .70. If
10 students are observed at random, what is the probability that fewer than 7 will
be carrying backpacks?
A. .3504
B. .2001
C. .6177
D. .2668
Use Appendix A with n = 10 and π = .70 to find P(X < 7) or else use the Excel
AACSB: Analytic
Blooms: Apply
76. An insurance company is issuing 16 car insurance policies. Suppose the

probability for a claim during a year is 15 percent. If the binomial probability
distribution is applicable, then the probability that there will be at least two claims
during the year is equal to:
A. .5615
B. .2775
C. .7161
D. .0388
AACSB: Analytic
Blooms: Apply
77. A random variable X is distributed binomially with n = 8 and π = 0.70. The

standard deviation of the variable X is approximately:
A. 0.458
B. 2.828
C. 1.680
D. 1.296
Use the formula for the binomial standard deviation.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
78. Suppose X is binomially distributed with n = 12 and π = .20. The probability that
X will be less than or equal to 3 is:
A. .5584
B. .7946
C. .2362
D. .7638
Use Appendix A with n = 12 and π = .20 to find P(X ≤ 3) or else use the Excel
AACSB: Analytic
Blooms: Apply
79. Which Excel function would generate a single random X value for a binomial
random variable with parameters n = 16 and π = .25?
A. =BINOM.DIST(RAND(), 16, .25,

0)
B. =BINOM.DIST(0, 16, .25,
RAND())
C. =BINOM.INV(16, .25,
RAND())
D. =BINOM.INV(0, 16, .25,
RAND())
This is the Excel 2010 function for the inverse of a binomial.
AACSB: Technology
Blooms: Remember
Difficulty: 3 Hard
80. A network has three independent file servers, each with 90 percent reliability. The
probability that the network will be functioning correctly (at least one server is
working) at a given time is:
A. 99.9
percent.
B. 97.2
percent.
C. 95.9
percent.
D. 72.9
percent.
Use Appendix A with n = 3 and π = .90.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
81. Which statement concerning the binomial distribution is correct?
A. Its PDF covers all integer values of X from 0 to

n.
B. Its PDF is the same as its CDF when π =
.50.
C. Its CDF shows the probability of each value of
X.
D. Its CDF is skewed right when π <
.50.
Review definitions of the binomial distribution. The binomial domain is X = 0, 1, ...,

n.
AACSB: Analytic
Blooms: Remember
82. Historically, 2 percent of the stray dogs in Southfield are unlicensed. On a

randomly chosen day, the Southfield city animal control officer picks up seven
stray dogs. What is the probability that fewer than two will be unlicensed?
A. .8681
B. .9921
C. .3670
D. .0076
Use Appendix A with n = 7 and π = .02.
AACSB: Analytic
Blooms: Apply
83. The domain of X in a Poisson probability distribution is discrete and can include:
A. any real X
value.
B. any integer X
value.
C. any nonnegative integer X
value.
D. any X value except
zero.
For a Poisson random variable, X = 0, 1, 2, … (no upper limit).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
84. On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls per hour.
What is the probability of fewer than three calls in a randomly chosen minute?
A. .1607
B. .8913
C. .2678
D. .7306
Use Appendix B with λ = 108/60 = 1.8.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
85. On average, a major earthquake (Richter scale 6.0 or above) occurs three times a
decade in a certain California county. Find the probability that at least one major
earthquake will occur within the next decade.
A. .7408
B. .1992
C. .1494
D. .9502
Use Appendix B with λ = 3.0.
AACSB: Analytic
Blooms: Apply
86. On average, an IRS auditor discovers 4.7 fraudulent income tax returns per day.
On a randomly chosen day, what is the probability that she discovers fewer than
two?
A. .0518
B. .0427
C. .1005
D. .1523
AACSB: Analytic
Blooms: Apply
87. On a Sunday in April, dog bite victims arrive at Carver Memorial Hospital at a
historical rate of 0.6 victim per day. On a given Sunday in April, what is the
probability that exactly two dog bite victims will arrive?
A. .0875
B. .0902
C. .0988
D. .0919
AACSB: Analytic
Blooms: Apply
88. If tubing averages 16 defects per 100 meters, what is the probability of finding
exactly 2 defects in a randomly chosen 10-meter piece of tubing?
A. .8795
B. .2674
C. .3422
D. .2584
Use Appendix B with λ = 16/10 = 1.6.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
89. Cars are arriving at a toll booth at a rate of four per minute. What is the probability
that exactly eight cars will arrive in the next two minutes?
A. 0.0349
B. 0.1396
C. 0.9666
D. 0.0005
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
90. Arrival of cars per minute at a toll booth may be characterized by the Poisson
distribution if:
A. the arrivals are

independent.
B. no more than one arrival can occur in a
minute.
C. there is only one lane leading to the
booth.
D. the mean arrival rate is at least
30.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
91. The coefficient of variation for a Poisson distribution with λ = 5 is:
A. 35.2
percent.
B. 58.9
percent.
C. 44.7
percent.
D. 31.1
percent.
Use the coefficient of variation with standard deviation equal to the square root of
the mean.
AACSB: Analytic
Blooms: Apply
92. The coefficient of variation for a Poisson distribution with λ = 4 is:
A. 35.2
percent.
B. 58.9
percent.
C. 50.0
percent.
D. 26.4
percent.
The Poisson standard deviation is the square root of the mean.
AACSB: Analytic
Blooms: Apply
93. For which binomial distribution would a Poisson approximation be unacceptable?
A. n = 30, π =
0.02
B. n = 50, π =
0.03
C. n = 200, π =
0.10
D. n = 500, π =
0.01
We want n ≥ 20 and π ≤ .05.
AACSB: Analytic
Blooms: Apply
94. For which binomial distribution would a Poisson approximation be acceptable?
A. n = 60, π =
0.08
B. n = 100, π =
0.15
C. n = 40, π =
0.03
D. n = 20, π =
0.20
We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.
AACSB: Analytic
Blooms: Apply
95. For which binomial distribution would a Poisson approximation not be
acceptable?
A. n = 35, π =
0.07
B. n = 95, π =
0.01
C. n = 80, π =
0.02
D. n = 50, π =
0.03
We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.
AACSB: Analytic
Blooms: Apply
96. The true proportion of accounts receivable with some kind of error is .02 for Venal
Enterprises. If an auditor randomly samples 200 accounts receivable, what is the
approximate Poisson probability that fewer than two will contain errors?
A. .1038
B. .0916
C. .1465
D. .0015
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (200)(.02) = 4.0 and use

Appendix B to find P(X ≤ 1), or else use the Excel cumulative distribution function
=POISSON.DIST(1,4.0,1) = .09158.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
97. The probability that a rental car will be stolen is 0.0004. If 3500 cars are rented,
what is the approximate Poisson probability that 2 or fewer will be stolen?
A. .3452
B. .2417
C. .5918
D. .8335

Appendix B to find P(X ≤ 2), or else use the Excel cumulative distribution function
=POISSON.DIST(2,1.4,1) = .8335.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
98. The probability that a customer will use a stolen credit card to make a purchase at
a certain Target store is 0.003. If 400 purchases are made in a given day, what is
the approximate Poisson probability that 4 or fewer will be with stolen cards?
A. .0053
B. .0076
C. .9923
D. .0555

Appendix B, or else use the Excel cumulative distribution function
=POISSON.DIST(4,.003*400,1) = .9923.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
99. The probability that a ticket holder will miss a flight is .005. If 180 passengers take
the flight, what is the approximate Poisson probability that at least 2 will miss the
flight?
A. .9372
B. .0628
C. .1647
D. .2275
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (.005)(180) = 0.9 and use

Appendix B to find P(X ≥ 2), or else use the Excel cumulative distribution function
= 1-POISSON.DIST(1,0.9,1) = .2275.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
100. The probability that a certain daily flight's departure from ORD to LAX is delayed
is .02. Over six months, this flight departs 180 times. What is the approximate
Poisson probability that it will be delayed fewer than 2 times?
A. .4471
B. .3028
C. .1257
D. .1771

Appendix B to find P(X ≤ 1) or else use the Excel cumulative distribution function
=POISSON.DIST(1,3.6,1) = .12569.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
101. If X is a discrete uniform random variable ranging from 0 to 12, find P(X ≥ 10).
A. .1126
B. .1666
C. .2308
D. .2500
3 out of 13 outcomes (don't forget to count 0 as an outcome).
AACSB: Analytic
Blooms: Apply
102. If X is a discrete uniform random variable ranging from one to eight, find P(X < 6).
A. .6250
B. .5000
C. .7500
D. .3750
We count five out of eight outcomes that meet this requirement.
AACSB: Analytic
Blooms: Apply
103. If X is a discrete uniform random variable ranging from one to eight, its mean is:
A. 4.0
B. 4.5
C. 5.0
D. 5.5
The mean is halfway between the lower and upper limits 1 and 8.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
104. If X is a discrete uniform random variable ranging from 12 to 24, its mean is:
A. 18.5.
B. 16.0.
C. 18.0.
D. 19.5.
The mean is halfway between the lower and upper limits 12 and 24.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
105. At Ersatz University, the graduating class of 480 includes 96 guest students from
Latvia. A sample of 10 students is selected at random to attend a dinner with the
Board of Governors. Use the binomial model to obtain the approximate
hypergeometric probability that the sample contains at least three Latvian
students.
A. .3222
B. .1209
C. .8791
D. .6778
Since n/N < .05 we can use Appendix A with n = 10 and π = 96/480 = .20 to find
P(X ≥ 3).
AACSB: Analytic
Blooms: Apply
106. There are 90 passengers on a commuter flight from SFO to LAX, of whom 27 are
traveling on business. In a random sample of five passengers, use the binomial
model to find the approximate hypergeometric probability that there is at least one
business passenger.
A. .3087
B. .1681
C. .3602
D. .8319
P(X ≥ 1).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
107. Use the binomial model to find the approximate hypergeometric probability of at
least two damaged flash drives in a sample of five taken from a shipment of 150
that contains 30 damaged flash drives.
A. 0.9421
B. 0.0579
C. 0.7373
D. 0.2627
P(X ≥ 2).
AACSB: Analytic
Blooms: Apply
108. On a particular day, 112 of 280 passengers on a particular DTW-LAX flight used
the e-ticket check-in kiosk to obtain boarding passes. In a random sample of eight
passengers, use the binomial model to find the approximate hypergeometric
probability that four will have used the e-ticket check-in kiosk to obtain boarding
passes.
A. .2322
B. .8263
C. .2926
D. .5613
P(X = 4).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
109. A clinic employs nine physicians. Five of the physicians are female. Four patients
arrive at once. Assuming the doctors are assigned randomly to patients, what is
the probability that all of the assigned physicians are female?
A. .0397
B. .0295
C. .0808
D. .0533
You can't use the binomial approximation because we have sampled more than
5% of the population (n/N = 4/9 = .444) so use the hypergeometric formula with x
= 4, n = 4, s = 5, N = 9 or use the Excel function =HYPGEOM.DIST(4,4,5,9,0) =
.03938.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
110. There is a .02 probability that a customer's Visa charge will be rejected at a
certain Target store because the transaction exceeds the customer's credit limit.
What is the probability that the first such rejection occurs on the third Visa
transaction?
A. .0192
B. .0025
C. .0247
D. .0200
Use the formulas for the geometric PDF (not the CDF) with π = .02 to find P(X =
3) = .02(1 - .02)3-1 = .02(.98)2 = .02(.9604) = .019208.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
111. Ten percent of the corporate managers at Axolotl Industries majored in

humanities. What is the probability that the first humanities major is the fifth
manager you meet?
A. .0656
B. .8561
C. .5904
D. .4095
5) = .10(1 - .10)5-1 = .10(.90)4 = .10(.6561) = .06561.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
112. Ten percent of the corporate managers at Axolotl Industries majored in

humanities. What is the expected number of managers to be interviewed until
finding the first one with a humanities major?
A. 15
B. 20
C. 10
D. 17
The geometric mean is 1/π = 1/(.10) = 10.
AACSB: Analytic
Blooms: Apply
113. When you send out a resume, the probability of being called for an interview is
.20. What is the probability that the first interview occurs on the fourth resume
that you send out?
A. .4096
B. .1024
C. .2410
D. .0016
4) = .20(1 - .20)4-1 = .20(.80)3 = .20(.512) = .1024.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
.20. What is the expected number of resumes you send out until you get the first
interview?
A. 5
B. 7
C. 10
D. 12
AACSB: Analytic
Blooms: Apply
.20. What is the probability that you get your first interview within the first five
resumes that you send out?
A. .6723
B. .1024
C. .2410
D. .0016
Use the formulas for the geometric CDF (not the PDF) with π = .20 to find P(X ≤
5) = 1 -(1-.20)5 = = 1 - (.80)5 = 1 - .32678 = .67232.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
What is the probability that the first such rejection occurs within the first 20 Visa
transactions?
A. .1362
B. .4000
C. .3324
D. .4538
20) = 1 -(1-.02)20 = = 1 - (.98)20 = 1 - .6676 = .3324.
AACSB: Analytic
Blooms: Apply
What is the expected number of Visa transactions until the first one is rejected?
A. 10
B. 20
C. 50
D. 98
AACSB: Analytic
Blooms: Apply
118. The geometric distribution best describes:
A. the number of successes in a sample of n

trials.
B. the number of trials until the first
success.
C. the number of events in a given unit of
time.
D. the process of sampling without
replacement.
Review the definition of geometric distribution.
AACSB: Analytic
Blooms: Remember
119. The CDF for the geometric distribution shows:
A. the probability of success in a random experiment consisting of n independent

trials.
B. the probability that the first success will occur within a given number of
trials.
C. the probability that no success will be obtained in a given Bernoulli
trial.
D. the probability of more than one success in the first n
trials.
Review the definition of geometric distribution.
AACSB: Analytic
Blooms: Remember
120. If the probability of success is .25, what is the probability of obtaining the first
success within the first three trials?
A. .4218
B. .5781
C. .1406
D. .2228
3) = 1 -(1-.25)3 = 1 - (.75)3 = 1 - .421875 = .578125.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
121. If the probability of success is .30, what is the probability of obtaining the first
success within the first five trials?
A. .0024
B. .8319
C. .1681
D. .9976
5) = 1 -(1-.30)5 = 1 - (.70)5 = 1 - .16807 = .83193.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
122. A project has three independent stages that must be completed in sequence. The
time to complete each stage is a random variable. The expected times to complete
the stages are μ1 = 23, μ2 = 11, μ3 = 17. The expected project completion time
is:
A. 51.
B. 23.
C. 40.
D. 32.
The means can be summed because the stages are independent.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)
123. A project has 3 independent stages that must be completed in sequence. The time
to complete each stage is a random variable. The standard deviations of the
completion times for the stages are σ1 = 5, σ2 = 4, σ3 = 6. The standard
deviation of the overall project completion time is:
A. 8.77
B. 15.0
C. 14.2
D. 9.24
The variances can be summed because the stages are independent (Rule 4). You
have to square the standard deviations to get the variances σ12 = 25, σ22 = 16,
σ32 = 36, then add them and take the square root of the sum. Be careful - the
standard deviations cannot be summed.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
124. A stock portfolio consists of two stocks X and Y. Their daily closing prices are
independent random variables with standard deviations σX = 2.51 and σY = 5.22.
What is the standard deviation of the sum of the closing prices of these two
stocks?
A. 33.55
B. 6.48
C. 7.73
D. 5.79
The variances can be summed because the stages are independent (Rule 4). You
have to square the standard deviations to get the variances σX2 = 6.3001 and σY2
= 27.2484, then add them and take the square root of the sum. Be careful - the
standard deviations cannot be summed.
AACSB: Analytic
Blooms: Apply
125. A stock portfolio consists of two stocks X and Y. Their daily closing prices are
correlated random variables with variances σX2 = 3.51 and σY2 = 5.22, and
covariance σXY = -1.55. What is the standard deviation of the sum of the closing
prices of these two stocks?
A. 5.63
B. 7.18
C. 8.73
D. 2.68
Use the formula for the variance of correlated (nonindependent) events. We sum
the variances and covariance, and then take the square root: σX+Y = [σX2 + σY2 +
σXY ]1/2 = [3.51 + 5.22 - 1.55]1/2 = [7.18]1/2 = 2.67955.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
126. The expected value of a random variable X is 140 and the standard deviation is 14.
The standard deviation of the random variable Y = 3X - 10 is:
A. 42
B. 6.48
C. 14
D. 32
Use the rule for functions of a random variable (Rule 2) to get σY = 3σX = (3)(14)
= 42. The constant -10 merely shifts the distribution and has no effect on the
standard deviation. The mean of Y is not requested.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
127. The expected value of a random variable X is 10 and the standard deviation is 2.
The standard deviation of the random variable Y = 2X - 10 is:
A. 2
B. 4
C. -
10
D. -
6
Use the rule for functions of a random variable (Rule 2) to get σY = 2σX = (2)(2)
= 4. The constant -10 merely shifts the distribution and has no effect on the
standard deviation. The mean of Y is not requested.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Test Bank Chapter 4
Question 1
Which of the following statements is likely to be true?
Select one:
a. The median personal income of California taxpayers would probably be near the mean.
b. The interquartile range offers a measure of income inequality among California
residents.
c. For personal incomes in California, outliers in either tail would be equally likely.
d. For income, the sum of squared deviations about the mean is negative about half the time.
Question 2
If the mean and median of a population are the same, then its distribution is
Select one:
a. symmetric.
b. uniform.
c. normal.
d. skewed.
Question 3
The following frequency distribution shows the amount earned yesterday by employees of a
large Las Vegas casino. Estimate the mean daily earnings.
Select one:
a. $125.01
b. $112.50
c. $105.47
d. $117.13
Question 4
The twenty-fifth percentile for waiting time in a doctor's office is 10 minutes. The seventy-
fifth percentile is 30 minutes. Which is incorrect regarding the fences?
Select one:
a. The upper inner fence is 60 minutes.
b. The upper outer fence is 90 minutes.
c. A waiting time of 45 minutes would be an outlier.

d. The lower fences are not relevant in this problem.
Question 5
Given a sample of three items (X = 4, 6, 5) which statement is incorrect?
Select one:
a. The quartiles are useless.
b. The geometric mean is 5.2.

c. The standard deviation is 1.
d. The coefficient of variation is 20 percent.
Question 6
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?
Select one:
a. About 27.
b. About 100.
c. About 127.
d. None of them.
Question 7
Which is not a measure of dispersion?
Select one:
a. Standard deviation.
b. Mean absolute deviation (MAD).
c. Midhinge.
d. Interquartile range.
Question 8
Which is a correct statement concerning the median?
Select one:
a. The median is an observed data value in any data set.
b. The median is halfway between Q1 and Q3 on a boxplot.
c. In a left-skewed distribution, we expect that the median will exceed the mean.
d. The sum of the deviations around the median is zero.
Question 9
Find the sample correlation coefficient for the following data.
Select one:
a. .8911
b. .9132
c. .9556
d. .9822
Question 10
Which is not a measure of dispersion?
Select one:
a. Mean absolute deviation (MAD).
b. Coefficient of variation.
c. Trimmed mean.
d. Range.
Question 11
A sample of 50 breakfast customers of MacDonald's showed the spending below. Which
statement is least likely to be correct?
Select one:
a. About 75 percent of the customers spend less than $7.
b. About half the customers spend less than $5.
c. The mean is a reasonable measure of central tendency.

d. The median is very close to the midhinge.
Question 12
Chebychev's Theorem
Select one:
a. is based on Sturges' Rule for data classification.
b. applies to all samples.

c. gives a narrower range of predictions than the Empirical Rule.
d. applies only to samples from a normal population.
Question 13
Which is not true of an outlier?
Select one:
a. It is likely to be from a different population.
b. It is best discarded to get a better mean.
c. It is an anomaly that may tell the researcher something.

d. It is suggestive of an error in recording the data.
Question 14
Craig operates a part-time snow-plowing business using a 2002 GMC 2500 HD extended cab
short box truck. This boxplot of Craig's MPG on 195 tanks of gas does not support which
statement?
Select one:
a. There are several outliers.
b. Most MPG values are concentrated in a narrow range.
c. The interquartile range is less than 2 MPG.
d. This is a very right-skewed distribution.

Question 15
Three randomly chosen California students were asked how many times they drove to
Mexico last year. Their replies were 4, 5, 6. The geometric mean is
Select one:
a. 4.93.
b. 5.42.
c. 3.87.
d. 5.00.
Question 16
Which is not true of the Empirical Rule?
Select one:
a. It applies to any distribution.

b. It assumes that the distribution of data follows a bell shaped, normal curve.
c. It predicts more observations within μ ± kσ than Chebyshev's Theorem.
d. It can be applied to fewer distributions than Chebyshev's theorem.
Question 17
Descriptive statistics does not seek to perform which task?
Select one:
a. Clarifying the shape of the data set.
b. Inferring the values of population parameters.

c. Summarizing the degree of dispersion in the data set.
d. Characterizing the "typical" or "middle" values of a data set.
Question 18
The following table is the frequency distribution of parking fees for a day:
The mean parking fee is

Select one:
a. $7.25
b. $6.95
c. $7.07
d. $7.00
Question 19
Which continuous variable is least likely to be skewed to the right by high values?
Select one:
a. Weekend gambling losses of n customers at a major casino.
b. Annual incomes of n passengers on a flight from New York to London.
c. Cost of a plain MacDonald's hamburger in n U.S. cities.

d. Accident damage losses by n renters of an auto rental company.
Question 20
Which Excel function would be most useful to calculate z = (x-μ)/σ for a column of data?
Select one:
a. = NORMDIST
b. = STANDARDIZE
c. = AVERAGE
d. = STDEVP
Question 21
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. The expected range of Excel's skewness coefficient increases as n increases.
Skewness often is evidenced by one or more outliers.

Question 22
Twelve randomly-chosen students were asked how many times they had missed class during
a certain semester, with this result: 3, 2, 1, 2, 1, 5, 9, 1, 2, 3, 3, 10. The geometric mean is:
Select one:
a.
b. 2.604
c. 1.517
d.
Question 23
Select one:
a. For personal incomes in California, outliers in either tail would be equally likely.
b. For income, the sum of squared deviations about the mean is negative about half the time.
c. The interquartile range offers a measure of income inequality among California
residents.
d. The median personal income of California taxpayers would probably be near the mean.
Question 24
As a measure of dispersion, compared to the range, an advantage of the standard deviation is
Select one:
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.

Question 25
Select one:
a. 4.93.
b. 3.87.
c. 5.00.
d. 5.42.
Question 26
Which two statistics offer robust measures of central tendency when outliers are present?
Select one:
a. Variance and standard deviation.
b. Median and trimmed mean.

c. Midrange and geometric mean.
d. Mean and mode.
Question 27
The position of the median is
Select one:
a. n/2 if n is even.
b. n/2 if n is odd.
c. n/2 in any sample.
d. (n + 1)/2 in any sample.

Question 28
Which is not a characteristic of the geometric mean as a measure of central tendency?
Select one:
a. It mitigates the effects of large data values.
b. It cannot be calculated when the data contain negative or zero values.
c. It is similar to the mean if the data are skewed right.

d. It is useful in business data to calculate average growth rates.
Question 29
Which is true of the kurtosis of a distribution?
Select one:
a. It is risky to assess kurtosis if the sample size is less than 50.

b. The expected range of the kurtosis coefficient increases as n increases.
c. A distribution that is flatter than a normal distribution (i.e., thicker tails) is mesokurtic.
d. A distribution that is more peaked than a normal distribution (i.e., thinner tails) is
platykurtic.
Question 30
Which continuous variable is least likely to be skewed to the right by high values?
Select one:
a. Accident damage losses by n renters of an auto rental company.
b. Cost of a plain MacDonald's hamburger in n U.S. cities.

c. Annual incomes of n passengers on a flight from New York to London.
d. Weekend gambling losses of n customers at a major casino.
Question 31
If Q1 = 150 and Q3 = 250, the upper fences (inner and outer) are:
Select one:
a. 450 and 600.
b. 350 and 450.
c. 400 and 550.

d. impossible to determine without more information.
Question 32
Which of the following is not a valid description of an outlier?
Select one:
a. A data value that is very unusual.
b. A data value that lies below Q1 or above Q3.

c. A data value beyond the outer fences.
d. A data value several standard deviations from the mean.
Question 33
Which statement is false? Explain.
Select one:
a. If μ = 640 and σ = 128 then the coefficient of variation is 20 percent.
b. If μ = 52 and σ = 15, then X = 81 would be an outlier.

c. If the data are from a normal population, about 68% of the values will be within μ ± σ.
Question 34
Estimate the mean exam score for the 50 students in Prof. Axolotl's class.
Select one:
a. 64.1
b. 59.2
c. 63.5
d. 62.0
Question 35
Which is not an advantage of the method of medians to find Q1 and Q3?
Select one:
a. Same method as Excel's = QUARTILE function.

b. Ease of interpolating quartile positions.
c. Intuitive definitions without complex formulas.
d. Ease of application in small data sets.
Question 36
Which is a weakness of the mode?
Select one:
a. It does not apply to qualitative data.
b. It is inappropriate for continuous data.

c. It is usually about the same as the median.
d. It is hard to calculate when n is small.
Question 37
fifth percentile is 31 minutes. The interquartile range is
Select one:
a. 16 minutes.
b. 22 minutes.
c. 12 minutes.
d. impossible to determine without knowing n.
Question 38
John scored 85 on Prof. Hardtack's exam (Q1 = 40 and Q3 = 60). Based on the fences, which
is correct?
Select one:
a. John is neither unusual nor an outlier.

b. John is in the 85th percentile.
c. John is an outlier.
d. John is unusual but not an outlier.
Question 39
Descriptive statistics does not seek to perform which task?
Select one:
a. Inferring the values of population parameters.

b. Clarifying the shape of the data set.
c. Summarizing the degree of dispersion in the data set.
d. Characterizing the "typical" or "middle" values of a data set.
Question 40
Which is a characteristic of the mean as a measure of central tendency?
Select one:
a. It utilizes all the information in a sample.

b. Deviations do not sum to zero when there are extreme values.
c. It is usually equal to the median in business data.
d. It is less reliable than the mode when the data are continuous.
Question 41
The position of the median is
Select one:
a. n/2 if n is odd.
b. (n + 1)/2 in any sample.

c. n/2 if n is even.
d. n/2 in any sample.
Question 42
The median of 600, 800, 1000, 1200 is
Select one:
a. 900.
b. 1000.
c. 950.
d. 800.
Question 43
Which Excel function would be least useful to calculate the quartiles for a column of data?
Select one:
a. = PERCENTILE
b. = RANK
c. = QUARTILE
d. = STANDARDIZE
Question 44
As a measure of dispersion, compared to the range, an advantage of the standard deviation is
Select one:
a. considering all data values.

b. describing the distance between the highest and lowest values.
c. considering only the data values in the middle of the data array.
d. being calculated easily through the use of a formula.
Question 45
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 central tendency?
Select one:
a. The 5% trimmed mean would be awkward.
b. The mode is not helpful.
c. The median is 60.00.
d. The geometric mean is 35.05.

Question 46
A smooth distribution with one mode is negatively skewed (skewed to the left). The median
of the distribution is $65. Which of the following is a reasonable value for the distribution
mean?
Select one:
a. $81
b. $76
c. $54
d. $65
Question 47
The mode is least appropriate for
Select one:
a. continuous data.
b. discrete data.
c. categorical data.
d. Lickert scale data.
Question 48
a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the
geometric mean is
Select one:
a. 3.017
b. 2.158
c. 2.376
d. 1.545
Question 49
Variables X and Y have the strongest correlation in which scatter plot?
Select one:
a. Figure A.
b. Figure B.
c. They are the same.

Question 50
Estimating the mean from grouped data will tend to be most accurate when
Select one:
a. there are few classes with wide class limits.
b. the sample is not very large and bins are wide.
c. the standard deviation is large relative to the mean.
d. observations are distributed uniformly within classes.

Question 51
A sample of 50 breakfast customers of MacDonald's showed the spending below. Which
statement is least likely to be correct?
Select one:
a. About half the customers spend less than $5.
b. The mean is a reasonable measure of central tendency.
c. The median is very close to the midhinge.
d. About 75 percent of the customers spend less than $7.
Question 52
fifth percentile is 31 minutes. The interquartile range is
Select one:
a. 22 minutes.
b. 16 minutes.
c. 12 minutes.
d. impossible to determine without knowing n.
Question 53
Select one:
a. For income, the sum of squared deviations about the mean is negative about half the time.
b. For personal incomes in California, outliers in either tail would be equally likely.
residents.
Question 54
Which is a correct statement concerning the median?
Select one:
a. The median is halfway between Q1 and Q3 on a boxplot.
b. The sum of the deviations around the median is zero.
c. In a left-skewed distribution, we expect that the median will exceed the mean.
d. The median is an observed data value in any data set.
Question 55
Three randomly-chosen Colorado students were asked how many times they went rock
climbing last month. Their replies were 5, 6, 7. The coefficient of variation is
Select one:
a. 13.6%
b. 16.7%
c. 20.0%
d. 35.7%
Question 56
The sum of the deviations around the mean is
Select one:
a. always zero.
b. dependent on the sample size.
c. smaller when the units are smaller (e.g., milligrams versus kilograms).
d. greater than zero if data are right-skewed.
Question 57
Select one:
a. 4.93.
b. 3.87.
c. 5.42.
d. 5.00.
Question 58
Question text
Which is a characteristic of the trimmed mean as a measure of central tendency?
Select one:
a. It is basically the same as the midrange.
b. It is similar to the mean if there are offsetting high and low extremes.
c. It does not require sorting the sample.
d. It is especially helpful in a small sample.
Question 59
Select one:
a. In a negatively skewed distribution, the mean is likely to exceed the median.
b. In business data, positive skewness is unusual.
c. Skewness often is evidenced by one or more outliers.

d. The expected range of Excel's skewness coefficient increases as n increases.
Question 60
Which statement is false?
Select one:
a. The coefficient of variation cannot be used when the mean is zero.
b. The skewness coefficient is zero in a sample from any normal distribution.

c. The standard deviation is in the same units as the mean (e.g., kilograms).
d. The mean from a frequency tabulation may differ from the mean from raw data.
Question 61
Which is a characteristic of the standard deviation?
Select one:
a. It has a natural, concrete meaning.
b. It measures dispersion around the median.

c. It is measured in the same units as the mean.
d. It is not greatly affected by outliers.
Question 62
The ______________ shows the relationship between two variables.
Select one:
a. scatter plot
b. box plot
c. histogram
d. bar chart
Question 63
Select one:
a. 5.42.
b. 3.87.
c. 5.00.
d. 4.93.
Question 64
Select one:
a. The expected range of Excel's skewness coefficient increases as n increases.
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. In business data, positive skewness is unusual.
Question 65
Select one:
a. For income, the sum of squared deviations about the mean is negative about half the time.
b. For personal incomes in California, outliers in either tail would be equally likely.
residents.
Question 66
If Q1 = 150 and Q3 = 250, the upper fences (inner and outer) are:
Select one:
a. impossible to determine without more information.
b. 400 and 550.

c. 450 and 600.
d. 350 and 450.
Question 67
Which of the following statements is likely to apply to the incomes of 50 randomly-chosen
taxpayers in California?
Select one:
a. The midhinge would be a robust measure of central tendency.

b. Outliers in either tail would be equally likely.
c. The median income would probably be near the mean.
d. The sum of squared deviations about the mean would be negative.
Question 68
Based on daily measurements, Bob's weight has a mean of 200 pounds with a standard
deviation of 16 pounds, while Mary's weight has a mean of 125 pounds with a standard
deviation of 15 pounds. Who has the smaller relative variation?
Select one:
a. Mary
b. They are the same.
c. Bob
Question 69
Which of the following is not a valid description of an outlier?
Select one:
a. A data value that is very unusual.
b. A data value several standard deviations from the mean.
c. A data value beyond the outer fences.
d. A data value that lies below Q1 or above Q3.

Question 70
Which is not a characteristic of the standard deviation?
Select one:
a. It can be calculated when the data contain negative or zero values.
b. It is always the square root of the variance.
c. It is not applicable when data are continuous.

d. Its physical interpretation is not as easy as the MAD.
Question 71
Three randomly-chosen Colorado students were asked how many times they went rock
climbing last month. Their replies were 5, 6, 7. The standard deviation is
Select one:
a. 1.056
b. 1.000
c. 0.816
d. 1.212
Question 72
A reporter for the campus paper asked five randomly chosen students how many occupants,
including the driver, ride to school in their cars. The responses were 1, 1, 1, 1, 6. The
coefficient of variation is:
Select one:
a. 112%
b. 250%
c. 25%
d. 100%
Question 73
a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, which
measure of central tendency is least representative of the "typical" student?
Select one:
a. Mode.
b. Median.
c. Midrange.
d. Mean.
Question 74
Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90, 100.
Which statement is incorrect concerning dispersion and shape?
Select one:
a. The third quartile is 90.

b. The data are slightly left-skewed.
c. The standard deviation is 29.61.
d. The midrange and mean are almost the same.
Test Bank Chapter 5
Question 1
Given the contingency table shown here, find P(F G).
Select one:
a. .650
b. .810
c. .160
d. .470
Question 2
If P(A) = 0.35, P(B) = 0.60, and P(A ∪B) = 0.70 then
Select one:
a. P(A ∩B) = .25

b. A and B are mutually exclusive
c. P(A ∩B) = .35
d. P(A ∩B) = .15
Question 3
Given the contingency table shown here, find P(B | A).
Select one:
a. .555
b. .625
c. .250
d. .855
Question 4
How many ways can we choose 3 items at random without replacement from 5 items
(A, B, C, D, E) if the order of the selected items is not important?
Select one:
a. 60
b. 120
c. 24
d. 10
Question 5
Given the contingency table shown here, what is the probability that a student attends a
public school in a rural area?
Select one:
a. .567
b. .238
c. .714
d. .135
Question 6
Given the contingency table shown here, find the probability that a randomly-chosen
employee is a line worker who plans to retire at age 65.
Survey question: Do you plan on retiring or keep working when you turn 65?
Select one:
a. .750
b. .227
c. .419
d. .315
Question 7
Given the contingency table shown here, if a survey participant is selected at random, what is
the probability he/she is an undergrad who favors the change to a quarter system?
Select one:
a. .756
b. .270
c. .135
d. .338
Question 8
The value of 4P2 is
Select one:
a. 6
b. 24
c. 12
d. 8
Question 9
The probability that event A occurs, given that event B has occurred, is an example of
Select one:
a. a marginal probability.
b. a conditional probability.
c. a joint probability.
d. more than one of the above.
Question 10
Given the contingency table shown here, what is the probability that a mother smoked during
pregnancy or that she graduated from college?
Select one:
a. .0111
b. .2591
c. .3861
d. .7850
Question 11
Which best exemplifies the empirical definition of probability?
Select one:
a. The probability that a checked bag on Flight 1872 will weigh less than 30 pounds.
b. The probability that your own bank will become insolvent within 12 months.
c. The probability that a Chinese athlete will win the diving competition in the next
Olympics.
d. The probability that a fair coin will come up heads when it is flipped.
Question 12
The following probabilities are given about events A and B in a sample space: P(A) =
0.30, P(B) = 0.40, P(A ∪ B) = 0.60. We can say that
Select one:
a. P(A) = P(A ∩B).
b. A and B are independent events.
c. P(A ∩B) = 0.10.

Question 13
Given the contingency table shown here, find the probability that a mother with some college
smoked during pregnancy.
Select one:
a. .1601
b. .1078
c. .1746
Question 14
Given the contingency table shown here, if a randomly-chosen student attends a religious
school, what is the probability the location is rural?
Select one:
a. .162
b. .333
c. .142
d. .167
Question 15
From the following tree, find the probability that a randomly-chosen person will get the flu
vaccine and will also get the flu.
Select one:
a. .1900
b. .0700
c. .7000
d. .1000
Question 16
Debbie has two stocks, X and Y. Consider the following events:
X = the event that the price of stock X has increased
Y = the event that the price of stock Y has increased
The event "the price of stock X has increased and the price of stock Y has not increased" may
be written as
Select one:
a. X ∪Y ′
b. X ∪Y
c. X ′ ∩Y
d. X ∩Y ′
Question 17
Given the contingency table shown here, find P(A1 ∪ B2).
Select one:
a. .0300
b. .3854
c. .3182
d. .0933
Question 18
At Joe's Restaurant, 80 percent of the diners are new customers (N), while 20 percent are
returning customers (R). 50 percent of the new customers pay by credit card, compared with
70 percent of the regular customers. If a customer pays by credit card, what is the probability
that the customer is a new customer?
Select one:
a. .8000
b. .5000
c. .7407
d. .5400
Question 19
Given the contingency table shown here, find P(V | S).
Select one:
a. .1900
b. .4144
c. .0475
d. .2639
Question 20
Regarding the rules of probability, which of the following statements is correct?
Select one:
a. The sum of two mutually exclusive events is one.
b. If A and B are independent events, then P(B) = P(A) P(B).
c. If event A occurs, then its complement will also occur.
d. The probability of A and its complement will sum to one.

Question 21
Events A and B are mutually exclusive when
Select one:
a. they are independent events.
b. their joint probability is zero.

c. P(A)P(B) = 0.
d. P(A)P(B) = P(A | B).
Question 22
If each of two independent file servers has a reliability of 93% and either alone can run the
web site, then the overall web site availability is
Select one:
a. .8649
b. .9522
c. .9300
d. .9951
Question 23
Which best exemplifies the classical definition of probability?
Select one:
a. The probability that a checked bag on Flight 1872 will weigh more than 30 pounds.
b. The probability that the winter Olympic games will be held in Europe in 2022.
c. The probability that a pair of dice will come up 7 when they are rolled.
d. The probability that a male aged 50 will have an accident in a week's car rental at Alamo.
Question 24
Given the contingency table shown here, find P(G | M).
Select one:
a. .1800
b. .0450
c. .1350
d. .3333
Question 25
From the following tree, find the probability that a randomly-chosen person will get the flu.
Select one:
a. .7000
b. .0700
c. .1900
d. .8100
Question 26
If P(A½B) = 0.40 and P(B) = 0.30, find P(A ∩ B).
Select one:
a. .171
b. .120
c. .525
d. .571
Question 27
Which best exemplifies a subjective probability?
Select one:
a. The probability that a checked bag on Flight 1872 will weigh more than 40 pounds.
b. The probability that a female aged 30 will have an accident in a week's car rental at Hertz.
c. The probability that the summer Olympic games will be held in Chicago in 2020.
d. The probability that a pair of dice will come up 7 in a given throw.
Question 28
Given the contingency table shown here, find P(V).
Select one:
a. .20
b. .40
c. .50
d. .80
Question 29
Given the contingency table shown here, find P(A ∪ M).
Select one:
a. .6250
b. .2500
c. .7500
d. .1250
Question 30
Given the contingency table shown here, if a faculty member is chosen at random, what is the
probability he/she opposes the change to a quarter system?
Select one:
a. .60
b. .40
c. .10
d. .25
Question 31
If two events are complementary then we know that
Select one:
a. they are independent events.
b. the joint probability of the two events is one.
c. the sum of their probabilities is one.

d. their intersection has a nonzero probability.
Question 32
Given the contingency table shown here, find P(E).
Select one:
a. .641
b. .529
c. .300
d. .180
Question 33
Regarding probability, which of the following is correct?
Select one:
a. When events A and B are mutually exclusive, then P(A ∩ B) = P(A) + P(B).
b. 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.

c. The probability of the union of two events can exceed one.
d. 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.
Question 34
Which statement is false?
Select one:
a. The number of permutations of 5 things taken 2 at a time is 20.
b. If P(A) = .05 then the odds against event A's occurrence are 19 to 1.
c. If A and B are mutually exclusive events then P(A ∩B) = 0.

Question 35
Independent events A and B would be consistent with which of the following statements:
Select one:
a. P(A) = .4, P(B) = .3, P(A ∩B B) = .5
b. P(A) = .3, P(B) = .5, P(A ∩B B) = .4
c. P(A) = .5, P(B) = .4, P(A ∩B B) = .3
d. P(A) = .4, P(B) = .5, P(A ∩B B) = .2

Question 36
The following table shows the survival experience of 1,000 males who retire at age 65:
Based on this data, the probability that a 75-year old male will survive to age 80 is
Select one:
a. 1-0.775 = 0.225
b. 1-0.596 = 0.404
c. 0.769
d. 0.596
Question 37
Find the probability that either event A or B occurs if the chance of A occurring is .5, the
chances of B occurring is .3, and events A and B are independent.
Select one:
a. .85
b. .65
c. .80
d. .15
Question 38
Given the contingency table shown here, does the decision to retire appear independent of the
employee type?
Select one:
a. No.
b. Yes.
Question 39
The value of 6C2 is
Select one:
a. 30
b. 15
c. 720
d. 12
Question 40
Given the contingency table shown here, find P(W | M).
Select one:
a. .250
b. .145
c. .581
d. .687
Question 41
Regarding the rules of probability, which of the following statements is correct?
Select one:
a. The sum of two mutually exclusive events is one.
b. If A and B are independent events, then P(B) = P(A) P(B).
c. The probability of A and its complement will sum to one.
d. If event A occurs, then its complement will also occur.
Question 42
At Dolon General Hospital, 30 percent of the patients have Medicare insurance (M) while 70
percent do not have Medicare insurance (M). 20 percent of the Medicare patients arrive by
ambulance, compared with 10 percent of the non-Medicare patients. If a patient arrives by
ambulance, what is the probability that the patient has Medicare Insurance?
Select one:
a. .5000
b. .1300
c. .7000
d. .4615
Question 43
Events A and B are mutually exclusive when
Select one:
a. P(A)P(B) = P(A | B).
b. P(A)P(B) = 0.
c. they are independent events.
d. their joint probability is zero.
Question 44
A company is producing two types of ski goggles. Thirty percent of the production is of
type A, and the rest is of type B. Five percent of all type A goggles are returned within 10
days after the sale, whereas only two percent of type B are returned. If a pair of goggles is
returned within the first 10 days after the sale, the probability that the goggles returned are of
type B is
Select one:
a. .070
b. .140
c. .483
d. .014
Question 45
The manager of Ardmore Pharmacy knows that 25% of the customers entering the store buy
prescription drugs, 65% buy over-the-counter drugs and 18% buy both types of drugs. What
is the probability that a randomly selected customer will buy at least one of these two types
of drugs?
Select one:
a. .90
b. .85
c. .65
d. .72
Question 46
Two events are complementary (i.e., they are complements) if
Select one:
a. the joint probability of the two events equals one.
b. they are disjoint and their probabilities sum to one.
c. the sum of their probabilities equals one.
d. they are independent events with equal probabilities.
Question 47
Given the contingency table shown here, find P(V | W).
Select one:
a. .5875
b. .0950
c. .4000
d. .2375
Question 48
If 4 items are chosen at random without replacement from 7 items, in how many ways can
the 4 items be arranged, treating each arrangement as a different event (i.e., if order is
important)?
Select one:
a. 5040
b. 840
c. 35
d. 24
Question 49
Given the contingency table shown here, find P(V ∪ S).
Select one:
a. .4775
b. .3825
c. .0475
d. .4300
Question 50
Given the contingency table shown here, what is the probability that a mother smoked during
pregnancy and had a college degree?
Select one:
a. .0803
b. .2385
c. .0111
d. .0428
Question 51
If two events are complementary then we know that
Select one:
a. their intersection has a nonzero probability.
b. they are independent events.
c. the sum of their probabilities is one.

d. the joint probability of the two events is one.
Question 52
If a call is sampled at random, the conditional probability that the call is not "6+" minutes
long given that it is a long distance call is
Select one:
a. 10/300
b. 120/300
c. .9667
d. .6667
Question 53
Given the contingency table shown here, find P(R ∩ L).
Select one:
a. .850
b. .425
c. .250
d. .315
Question 54
The following table gives a classification of the 10,000 shareholders of Oxnard Xylophone
Distributors, Inc. A few numbers are missing from the table. Given that a shareholder
holding 500-999 shares is picked, there is a 0.625 probability that the shareholder will be a
woman. Consequently, what is the number of men holding 1000 or more shares?
Select one:
a. 500
b. 7,500
c. 250
d. 1,000
Question 55
Given the contingency table shown here, find P(A2 | B3).
Select one:
a. .1842
b. .0685
c. .3721
d. .1893
Question 56
Given the contingency table shown here, what is the probability that a participant selected at
random is a graduate student who opposes the change to a quarter system?
Select one:
a. .250
b. .375
c. .135
d. .1350
Question 57
Information was collected on those who attended the opening of a new movie. The analysis
found that 56% of the moviegoers were female, 26% were under age 25, and 17% were
females under the age of 25. Find the probability that a moviegoer is either female or under
age 25.
Select one:
a. .65
b. .50
c. .82
d. .79
Question 58
Given the contingency table shown here, find the probability that either event A2 or
event B2 will occur.
Select one:
a. .5054
b. .4454
c. .0600
Question 59
In any sample space P(A½B) and P(B½A)
Select one:
a. are reciprocals of one another.
b. are never equal to one another.
c. are always equal to one another.
d. are equal only if P(A) = P(B).
Question 60
If P(A ∩B) = 0.50 and P(A) = 0.20, then which statement is correct?
Select one:
a. P(B ∩A) = 0.60.
b. If P(A) = 0.20, then P(A ∩B) cannot equal 0.50.
c. P(B) = 0.30.
d. P(A½B) = 0.10.
Question 61
Given the contingency table shown here, what is the probability that a randomly-chosen
employee who is under age 25 would be absent 2 or more days?
Select one:
a. .273
b. .375
c. .625
d. .150
Question 62
Given the contingency table shown here, find the probability that a randomly-chosen
individual is a female economics major.
Select one:
a. .5333
b. .1600
c. .3404
d. .4700
Question 63
Given the contingency table shown here, find P(A2).
Select one:
a. .8163
b. .1766
c. .1842
d. .0578
Chapter 07 Continuous Probability Distributions Answer Key
1. A continuous uniform distribution is always symmetric.
TRUE
The PDF is the same height for all X values.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Calculate uniform probabilities.
Topic: Uniform Continuous Distribution
2. The height and width of a continuous uniform distribution's PDF are the same.
FALSE
The PDF height must be 1/(b - a) so that the total area is unity.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
3. A continuous uniform distribution U(0,800) will have μ = 400 and σ = 230.94.
TRUE
Apply the formulas for the mean and standard deviation.
AACSB: Analytic
Blooms: Apply
4. A continuous uniform distribution U(100,200) will have the same standard

deviation as a continuous uniform distribution U(200,300).
TRUE
In the standard deviation formula, (b - a)2 is the same for both these examples.
AACSB: Analytic
Blooms: Apply
5. For a continuous uniform distribution U(200,400), the parameters are μ = 300

and σ = 100.
FALSE
The standard deviation is [(400 - 200)2/12]1/2 = 57.7.
AACSB: Analytic
Blooms: Apply
6. The exponential distribution describes the number of arrivals per unit of time.
FALSE
Arrivals per unit of time would be Poisson (but waiting time is exponential).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-07 Find the exponential probability for a given x.
Topic: Exponential Distribution
7. The exponential distribution is always skewed right.
TRUE
The PDF clearly shows extreme right-skewness.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
8. If arrivals follow a Poisson distribution, waiting times follow the exponential

distribution.
TRUE
Review the definition of an exponential distribution.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
9. The triangular distribution is used in "what-if" analysis for business planning.
TRUE
Simplicity in visualizing planning scenarios is an attraction of the triangular

distribution.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis (optional).
Topic: Triangular Distribution (Optional)
10. The triangular distribution is symmetric.
FALSE
Triangular distribution is symmetric only if the mode is at the axis midpoint.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
11. The triangular distribution T(0,10,20) is skewed left.
FALSE
Only left-skewed if the mode is right of the axis midpoint.
AACSB: Analytic
Blooms: Apply
12. A triangular distribution can be skewed either left or right.
TRUE
Left-skewed if the mode is right of the axis midpoint, and vice versa.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
13. For a continuous random variable, the total area beneath the PDF will be greater
than zero but less than one.
FALSE
The total area must be 1 if it is a PDF.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define a continuous random variable.
Topic: Describing a Continuous Distribution
14. The exponential distribution is continuous and the Poisson distribution is discrete,
yet the two distributions are closely related.
TRUE
Poisson arrivals (discrete) imply exponential waiting times (continuous).
AACSB: Analytic
Blooms: Understand
15. The mean, median, and mode of a normal distribution will always be the same.
TRUE
A normal distribution is perfectly symmetric.
AACSB: Analytic
Blooms: Remember
Learning Objective: 07-03 Know the form and parameters of the normal distribution.
Topic: Normal Distribution
16. There is a simple formula for normal areas, but we prefer a table for greater
accuracy.
FALSE
We have a formula for the PDF, but there is no exact formula for areas under the
curve.
AACSB: Analytic
Blooms: Understand
17. Normal distributions differ only in their means and variances.
TRUE
All normal distributions look the same except for scaling.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
18. Any normal distribution has a mean of 0 and a standard deviation of 1.
FALSE
Only the standardized normal is N(0,1).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
19. We would use a normal distribution to model the waiting time until the next
Florida hurricane strike.
FALSE
Hurricane arrivals might be regarded as Poisson events, so waiting times are

exponential.
AACSB: Analytic
Blooms: Apply
20. Experience suggests that 4 percent of all college students have had a
tonsillectomy. In a sample of 300 college students, we need to find the probability
that at least 10 have had a tonsillectomy. It is acceptable to use the normal
distribution to estimate this probability.
TRUE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is the case in this example.
AACSB: Analytic
Blooms: Apply
Learning Objective: 07-06 Use the normal approximation to a binomial or a Poisson.
Topic: Normal Approximations
21. The normal is a good approximation to the binomial when n is greater than or
equal to 10.
FALSE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
22. The true proportion of accounts receivable with some kind of error is 4 percent for
Venal Enterprises. If an auditor randomly samples 50 accounts receivable, it is
acceptable to use the normal approximation to estimate the probability that fewer
than two will contain errors.
FALSE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is not fulfilled in this case.
AACSB: Analytic
Blooms: Apply
23. The normal distribution is a good approximation to the binomial if both π ≥ 10
and n ≥ 10.
FALSE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
24. The normal distribution is a good approximation to the binomial if n = 200 and π
= .03.
FALSE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is not fulfilled in this case.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
25. The normal distribution is a good approximation to the binomial if n = 25 and π =

.50.
TRUE
The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is fulfilled in this case.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
26. The exponential distribution can be either right-skewed or left-skewed, depending

on λ.
FALSE
The PDF of the exponential shows that it is always right-skewed.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
27. The number of lightning strikes in a day in Miami is a continuous random

variable.
FALSE
The "number of . . ." anything is discrete.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
28. The area under a normal curve is 1 only if the distribution is standardized N(0,1).
FALSE
Any normal distribution has a total area of one under the PDF.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
29. The area under an exponential curve can exceed 1 because the distribution is
right-skewed.
FALSE
If it's a PDF, the total area under the PDF is one.
AACSB: Analytic
Blooms: Apply

30. A machine dispenses water into a glass. Assuming that the amount of water
dispensed follows a continuous uniform distribution from 10 ounces to 16 ounces,
the average amount of water dispensed by the machine is:
A. 12
ounces.
B. 13
ounces.
C. 14
ounces.
D. 16
ounces.
The mean is halfway between the end points of the distribution.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
the standard deviation of the amount of water dispensed is about:
A. 1.73
ounces.
B. 3.00
ounces.
C. 0.57
ounce.
D. 3.51
ounces.
AACSB: Analytic
Blooms: Apply
what is the probability that 13 or more ounces will be dispensed in a given glass?
A. .1666
B. .3333
C. .5000
D. .6666
Half the area is above 13.
AACSB: Analytic
Blooms: Apply
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.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

20 to 45 inclusive. The standard deviation of this distribution is approximately:
A. 52.1.
B. 32.5.
C. 6.85.
D. 7.22.
AACSB: Analytic
Blooms: Apply
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.
AACSB: Analytic
Blooms: Apply
36. The Excel function =800*RAND() would generate random numbers with standard
deviation approximately equal to:
A. 200.
B. 188.
C. 231.
D. 400.
AACSB: Analytic
Blooms: Apply
37. The Excel function =40*RAND() would generate random numbers with standard
deviation approximately equal to
A. 13.33.
B. 20.00.
C. 11.55.
D. 19.27.
AACSB: Analytic
Blooms: Apply
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. .1653.
C. .1222.
D. .5000.
P(X > .50) = exp(-3.6 × 0.50) = .1653.
AACSB: Analytic
Blooms: Apply
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. .7122.
B. .8105.
C. .8347.
D. .7809.
P(X < .50) = 1 - exp(-3.6 × 0.50) = 1 - .1653 = .8347.
AACSB: Analytic
Blooms: Apply
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. .0122.
C. .0535.
D. .2564.
P(X > 1.5) = exp(-2.6 × 1.50) = .0202.
AACSB: Analytic
Blooms: Apply
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. .2019.
B. .7104.
C. .8812.
D. .7981.
(X < 1) = 1 - exp(-1.6 × 1) = 1 - .2019 = .7981.
AACSB: Analytic
Blooms: Apply
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.
AACSB: Analytic
Blooms: Apply
Learning Objective: 07-04 Find the normal probability for given z or x using tables or Excel.
Topic: Standard Normal Distribution
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. .6563
B. .6826
C. .2486
D. .4082
P(12 < X < 18) = P(-.67 < Z < 1.33) = .6568 (from Appendix C) or .6563 using
Excel.
AACSB: Analytic
Blooms: Apply
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.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or Excel.
distributed with a mean of 14 inches and a standard deviation of 3 inches. What
lower limit should the State Game Commission set on length if it is desired that 80
percent of the catch may be kept by fishers?
A. 12.80
inches
B. 11.48
inches
C. 12.00
inches
D. 9.22
inches
Using Excel =NORM.INV(.20,14,3) = 11.475, or X = 14 - 0.84(3) = 11.48 using

Appendix C.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
46. In Melanie's Styling Salon, the time to complete a simple haircut is normally
distributed with a mean of 25 minutes and a standard deviation of 4 minutes.
What percent of customers require less than 32 minutes for a simple haircut?
A. 95.99
percent
B. 99.45
percent
C. 97.72
percent
D. 45.99
percent
Using Excel =NORMDIST(32,25,4,1) = 0.9599, or use z = (32 - 25)/4 = 1.75 with

Appendix C.
AACSB: Analytic
Blooms: Apply
distributed with a mean of 25 minutes and a standard deviation of 4 minutes. The
slowest quartile of customers will require longer than how many minutes for a
simple haircut?
A. 3(n + 1)/4
minutes
B. 26
minutes
C. 25.7
minutes
D. 27.7
minutes
Using Excel =NORM.INV(.75,25,4) = 27.698, or Q3 = 25 + 0.675(4) = 27.7 using

Appendix C.
AACSB: Analytic
Blooms: Apply
distributed with a mean of 25 minutes and a standard deviation of 4 minutes. For
a simple haircut, the middle 90 percent of the customers will require:
A. between 18.4 and 31.6

minutes.
B. between 19.9 and 30.1
minutes.
C. between 20.0 and 30.0
minutes.
D. between 17.2 and 32.8
minutes.
The 90 percent range is μ ± 1.645σ.
AACSB: Analytic
Blooms: Apply
49. The area under the normal curve between z = 0 and z = 1 is ______________ the
area under the normal curve between z = 1 and z = 2.
A. less
than
B. greater
than
C. equal
to
The standard normal PDF grows closer to the axis as z increases to the right of
zero.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
50. The price-earnings ratio for firms in a given industry follows the normal
distribution. In this industry, a firm whose price-earnings ratio has a standardized
value of z = 1.00 is approximately in the highest ______ percent of firms in the
industry.
A. 16
percent
B. 34
percent
C. 68
percent
D. 75
percent
About 15.86 percent of the area is above one standard deviation.
AACSB: Analytic
Blooms: Apply
51. A student's grade on an examination was transformed to a z value of 0.67.
Assuming a normal distribution, we know that she scored approximately in the
top:
A. 15
percent.
B. 50
percent.
C. 40
percent.
D. 25
percent.
P(Z > 0.67) = 1 - P(Z < 0.67) = 1 - .2514 = .7486.
AACSB: Analytic
Blooms: Apply
52. The MPG (miles per gallon) for a certain compact car is normally distributed with
a mean of 31 and a standard deviation of 0.8. What is the probability that the MPG
for a randomly selected compact car would be less than 32?
A. 0.3944
B. 0.8944
C. 0.1056
D. 0.5596
P(X < 32) = P(Z < 1.25) = .8944.
AACSB: Analytic
Blooms: Apply
53. The probability is .80 that a standard normal random variable is between -z and
+z. The value of z is approximately:
A. 1.28.
B. 1.35.
C. 1.96.
D. 1.45.
For tail areas of .1000 we would use z = 1.282.
AACSB: Analytic
Blooms: Apply
54. The time required for a citizen to complete the 2010 U.S. Census "long" form is
normally distributed with a mean of 40 minutes and a standard deviation of 10
minutes. What proportion of the citizens will require less than one hour?
A. 0.4772
B. 0.9772
C. 0.9974
D. 0.9997
P(X < 60) = P(Z < 2.00) = .9772.
AACSB: Analytic
Blooms: Apply
55. The for a citizen to complete the 2010 U.S. Census "long" form is normally
distributed with a mean of 40 minutes and a standard deviation of 10 minutes.
The slowest 10 percent of the citizens would need at least how many minutes to
complete the form?
A. 27.2
B. 35.8
C. 52.8
D. 59.6
Using Excel =NORM.INV(.90,40,10) = 52.82, or 40 + 1.282(10) = 52.82 using

Appendix C.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
56. The time required for a citizen to complete the 2010 U.S. Census "long" form is
normally distributed with a mean of 40 minutes and a standard deviation of 10
minutes. What is the third quartile (in minutes) for the time required to complete
the form?
A. 44.75
B. 46.75
C. 47.50
D. 52.50
Using Excel =NORM.INV(.75,40,10) = 46.75, or Q3 = 40 + 0.675(10) = 46.75 using

Appendix C
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
57. Exam scores were normal in BIO 200. Jason's exam score was one standard
deviation above the mean. What percentile is he in?
A. 68t
h
B. 75t
h
C. 78t
h
D. 84t
h
About 15.87 percent of the area lies above one standard deviation.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
58. Compared to the area between z = 1.00 and z = 1.25, the area between z = 2.00
and z = 2.25 in the standard normal distribution will be:
A. smaller
.
B. larger
.
C. the
same.
D. impossible to compare without knowing μ
and σ.
The normal PDF approaches the axis as z increases beyond zero.
AACSB: Analytic
Blooms: Apply
59. A large number of applicants for admission to graduate study in business are
given an aptitude test. Scores are normally distributed with a mean of 460 and
standard deviation of 80. What fraction of applicants would you expect to have
scores of 600 or above?
A. 0.0401
B. 0.4599
C. 0.5401
D. 0.0852
P(X > 600) = P(Z > 1.75) = .0401.
AACSB: Analytic
Blooms: Apply
standard deviation of 80. What fraction of the applicants would you expect to have
a score of 400 or above?
A. 0.2734
B. 0.7734
C. 0.7266
D. 0.7500
P(X > 400) = P(Z > -0.75) = .7734.
AACSB: Analytic
Blooms: Apply
standard deviation of 80. The top 2.5 percent of the applicants would have a score
of at least (choose the nearest integer):
A. 606.
B. 617.
C. 600.
D. 646.
Using z = 1.96, we get X = 460 + 1.96 × 80 = 616.8.
AACSB: Analytic
Blooms: Apply
62. If the random variable Z has a standard normal distribution, then P(1.25 ≤ Z ≤
2.17) is:
A. 0.0906.
B. 0.9200.
C. 0.4700.
D. 0.3944.
P(Z ≤ 2.17) - P(Z ≤ 1.25) = .0906.
AACSB: Analytic
Blooms: Apply
63. If the random variable Z has a standard normal distribution, then P(Z ≤ -1.37) is:
A. 0.9147.
B. 0.4147.
C. 0.5016.
D. 0.0853.
From Appendix C we get the left tail area of .0853.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
64. Assume that X is normally distributed with a mean μ = $64. Given that P(X ≥
$75) = 0.2981, we can calculate that the standard deviation of X is approximately:
A. $20.76.
B. $13.17.
C. $5.83.
D. $7.05.
For a right-tail area of .2981 we need z = -.53, so with x = 75 we set z = (x -

μ)/σ and solve for σ.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
65. The standard deviation of a normal random variable X is $20. Given that P(X ≤
$10) = 0.1841. From this we can determine that the mean of the distribution is
equal to:
A. $13.
B. $26.
C. $20.
D. $28.
For a left-tail area of .1841 we need z = -.90, so with x = 10 we set z = (x - μ)/σ

and solve for μ.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
66. The random variable X is normally distributed with mean of 80 and variance of 36.
The 67th percentile of the distribution is:
A. 72.00.
B. 95.84.
C. 90.00.
D. 82.64.
Since P(Z < 0.44) = .6700, (from Appendix C) we get 80 + 0.44(6) = 82.64.
AACSB: Analytic
Blooms: Apply
67. The area under the normal curve between the 20th and 70th percentiles is equal to:
A. 0.7000.
B. 0.5000.
C. 0.9193.
Logically, this must be .70 - .20 = .50, as you can verify from Appendix C.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
68. The variable in a normal distribution can assume any value between
A. -3 and
+3
B. -4 and
+4
C. -1 and
+1
D. -∞ and
+∞
Almost all the area is within -3 and +3, but the curve never quite touches the z-
axis.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
69. What are the mean and standard deviation for the standard normal distribution?
A. μ = 0, σ
=0
B. μ = 1, σ
=1
C. μ = 1, σ
=0
D. μ = 0, σ
=1
We have standardized so the mean must be zero.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
70. Any two normal curves are the same except for their:
A. standard
deviations.
B. means
.
C. standard deviations and
means.
D. standard deviations, means, skewness, and
kurtosis.
We write N(μ,σ) so show the similarity of all normals.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
71. Light bulbs are normally distributed with an average lifetime of 1000 hours and a
standard deviation of 250 hours. The probability that a light bulb picked at random
will last less than 1500 hours is about:
A. 97.72
percent.
B. 95.44
percent.
C. 75.00
percent.
D. 68.00
percent.
P(Z < 1500) = P(Z < 2.00) = .9772 from Appendix C (or from Excel).
AACSB: Analytic
Blooms: Apply
72. To convert a normally distributed variable X into a standard Z score we would:
A. subtract the mean from the original observation and divide the result by the
variance.
B. subtract the mean from the original observation and divide the result by the
standard deviation.
C. add the mean and the original observation, then divide by the
variance.
D. subtract the mean from the standard deviation and divide by the
variance.
Review the z-score transformation.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
73. Regarding continuous probability distributions, which statement is incorrect?
A. The triangular distribution may be skewed left or

right.
B. The uniform distribution is never
skewed.
C. The normal distribution is sometimes
skewed.
D. The exponential distribution is always skewed
right.
Review the characteristics of these four distributions.
AACSB: Analytic
Blooms: Understand
74. Which model best describes your waiting time until you get the next nonworking
web URL ("This page cannot be displayed") as you click on various websites for
Florida condo rentals?
A. Triangula
r
B. Unifor
m
C. Norma
l
D. Exponentia
l
Waiting time until the next event resembles an exponential distribution.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
75. On average, a major earthquake (Richter scale 6.0 or above) occurs 3 times a
decade in a certain California county. What is the probability that less than six
months will pass before the next earthquake?
A. .1393
B. .8607
C. .0952
D. .9048
Set λ = 3/120 = 0.025 earthquake/month so P(X < 6) = 1 - exp(-0.025 × 6) = 1 -

.8607 = .1393.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
76. If the mean time between in-flight aircraft engine shutdowns is 12,500 operating
hours, the 90th percentile of waiting times to the next shutdown will be:
A. 20,180
hours.
B. 28,782
hours.
C. 23,733
hours.
D. 18,724
hours.
Set λ = 1/12500 and solve for x in left-tail area of 1 - exp(-λx) = .90 by taking
logs of both sides.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-08 Solve for x for a given exponential probability.
77. On average, 15 minutes elapse between discoveries of fraudulent corporate tax

returns in a certain IRS office. What is the probability that less than 30 minutes
will elapse before the next fraudulent corporate tax return is discovered?
A. .1353
B. .6044
C. .7389
D. .8647
P(X < 30) = 1 - exp(-λx) = 1 - exp(-(1/15) × 30) = 1 - .1353 = .8647.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
78. If the mean time between unscheduled maintenance of LCD displays in a

hospital's CT scan facility is 4,000 operating hours, what is the probability of
unscheduled maintenance in the next 5,000 hours?
A. .8000
B. .7135
C. .2865
D. .5000
P(X < 5000) = 1 - exp(-λx) = 1 - exp(-(1/4000) × 5000) = 1 - .2865 = .7135.
AACSB: Analytic
Blooms: Apply
79. A certain assembly line at Vexing Manufacturing Company averages 30 minutes

between breakdowns. What is the probability that less than 6 minutes will elapse
before the next breakdown?
A. .8187
B. .0488
C. .1813
D. .2224
(X < 6) = 1 - exp(-λx) = 1 - exp(-(1/30) × 6) = 1 - .8187 = .1813.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
80. The t line at Vexing Manufacturing Company averages 30 minutes between
breakdowns. The median time between breakdowns is:
A. 30.0
minutes.
B. 35.7
minutes.
C. 25.4
minutes.
D. 20.8
minutes.
Set λ = 1/30 and solve for x in right-tail area of 1 - exp(-λx) = .50 by taking logs
of both sides.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
81. Which probability model is most appropriate to describe the waiting time (working
days) until an office photocopier breaks down (i.e., requires unscheduled
maintenance)?
A. Norma
l
B. Unifor
m
C. Exponentia
l
D. Poisso
n
Poisson breakdowns suggest exponential waiting time.
AACSB: Analytic
Blooms: Apply
82. Bob's z-score for the last exam was -1.15 in FIN 417, "Capital Budgeting
Strategies." Bob said, "Yipe! My score is within the bottom quartile." Assuming a
normal distribution, is Bob right?
A. Yes
B. N
o
C. Must know the class size to
answer
The bottom quartile would be below z = -.675 so Bob is indeed below that point.
AACSB: Analytic
Blooms: Apply
83. Exam scores were normal in MIS 200. Jason's exam score was 1.41 standard
deviations above the mean. What percentile is he in?
A. 68t
h
B. 75t
h
C. 84t
h
D. 92nd
P(Z < 1.41) = .9207.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
84. Compared to the area between z = 0.50 and z = 0.75, the area between z = 1.50
and z = 1.75 in the standard normal distribution will be:
A. smalle
r
B. large
r
C. the
same
The normal PDF approaches the axis as z increases beyond zero so areas get
smaller.
AACSB: Analytic
Blooms: Apply
85. If GMAT scores for applicants at Oxnard Graduate School of Business are N(500,
50) then the top 5 percent of the applicants would have a score of at least
(choose the nearest integer):
A. 575.
B. 582.
C. 601.
D. 608.
The top 5 percent would require z = 1.645 so x = 500 + 1.645(50) = 582.25.
AACSB: Analytic
Blooms: Apply
86. If the random variable Z has a standard normal distribution, then P(1.17 ≤ Z ≤
2.26) is:
A. 0.1091.
B. 0.1203.
C. 0.2118.
D. 0.3944.
Subtract P(Z ≤ 2.26) - P(Z ≤ 1.17).
AACSB: Analytic
Blooms: Apply
87. If the random variable Z has a standard normal distribution, then P(Z ≤ -1.72) is:
A. 0.9573.
B. 0.0446.
C. 0.5016.
D. 0.0427.
Use Appendix C or Excel =NORM.S.DIST(-1.72,1).
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
88. Excel's =100*RAND() function produces continuous random numbers that are
uniformly distributed between 0 and 100. The standard deviation of this
distribution is approximately:
A. 50.00.
B. 28.87.
C. 33.33.
D. 25.00.
The standard deviation is [(b - a)2/12]1/2 = [(100 - 0)2/12]1/2.
AACSB: Analytic
Blooms: Apply
89. Excel's =RAND() function produces random numbers that are uniformly
distributed between 0 and 1. The mean of this distribution is approximately
A. .5000
B. .2500
C. .3333
D. .2887
The mean is halfway between the end points.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
90. Excel's =RAND() function produces random numbers that are uniformly
distributed from 0 to 1. What is the probability that the random number exceeds
.75?
A. 75
percent
B. 50
percent
C. 25
percent
This is the upper 25 percent.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
91. Which is the correct Excel formula for the 80th percentile of a distribution that is
N(475, 33)?
A. =NORM.DIST(80, 475,
33,1)
B. =NORM.INV(0.80, 475,
33)
C. =NORM.S.INV((80 -
475)/33)
Review Excel functions in Appendix J.
AACSB: Technology
Blooms: Remember
92. If arrivals follow a Poisson distribution with mean 1.2 arrivals per minute, find the
75th percentile of waiting times until the next arrival (i.e., 75 percent below).
A. 1.155 minutes (69.3

seconds)
B. 0.240 minute (14.4
seconds)
C. 1.919 minutes (115.1
seconds)
Set λ = 1.2 and solve for x in right-tail area of exp(-λx) = .25 by taking logs of
both sides.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
93. A software developer makes 175 phone calls to its current customers. There is an
8 percent chance of reaching a given customer (instead of a busy signal, no
answer, or answering machine). The normal approximation of the probability of
reaching at least 20 customers is:
A. .022.
B. .007.
C. .063.
D. .937.
Set n = 175 and π = .08. Calculate μ = nπ = (175)(.08) = 14 and σ = [nπ(1 -

π)]1/2 = [175(.08)(1 - .08)]1/2 = 3.588872. Use x = 19.5 (with the continuity
correction) and calculate the binomial P(X ≥ 20) ≈ P(z ≥ 1.532515) using z = (x -
μ)/σ = 1.532515.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
94. For Gardyloo Manufacturing, the true proportion of accounts receivable with some
kind of error is .20. If an auditor randomly samples 225 accounts receivable, what
is the approximate normal probability that 39 or fewer will contain errors?
A. .1797
B. .2097
C. .1587
D. .0544
Set μ = nπ and σ = [nπ(1 - π)]1/2 and convert x = 39.5 (using the continuity
correction) to a z score with z = (x - μ)/σ. Set n = 225 and π = .20. Calculate μ
= nπ = (225)(.20) = 45 and σ = [nπ(1 - π)]1/2 = [225(.20)(1 - .20)]1/2 = 6.000.
Use x = 39.5 (with the continuity correction) and calculate the binomial P(X ≤ 39)
≈ P(z ≤ -.916667) using z = (x - μ)/σ = -.916667.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
95. A letter is mailed to a sample of 500 homeowners. Based on past experience, the
probability of an undeliverable letter is 0.06. The normal approximation to the
binomial probability of 40 or more undeliverable letters is:
A. 0.9632
B. 0.0368
C. 0.2305
D. 0.7695

π)]1/2 = [500(.06)(1 - .06)]1/2 = 5.31037. Use x = 39.5 (with the continuity
μ)/σ = 1.78895.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
96. In a T-F exam with 100 questions, passing requires a score of at least 60. What is
the approximate normal probability that a "guesser" will score at least 60 points?
A. .0287
B. .4713
C. .0251
D. .0377
A guesser would have a 50 percent chance of a correct answer, so we set π = .50.

There are n = 100 questions, so we calculate μ = nπ = (100)(.50) = 50 and σ =
[nπ(1 - π)]1/2 = [100(.50)(1 - .50)]1/2 = 5. Use x = 59.5 (with the continuity
μ)/σ = 1.90.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
97. A multiple choice exam has 100 questions. Each question has five choices. What
would be the approximate probability that a "guesser" could achieve a score of 30
or more?
A. 0.0088
B. 0.0062
C. 0.0015
D. 0.4913
A guesser would have a 20 percent chance of a correct answer (1 out of 5) so we

set π = .20. There are n = 100 questions, so we calculate μ = nπ = (100)(.20) =
20 and σ = [nπ(1 - π)]1/2 = [100(.20)(1 - .20)]1/2 = 4. Use x = 29.5 (with the
continuity correction) and calculate the binomial P(X ≥ 30) ≈ P(z ≥ 2.375) using z
= (x - μ)/σ = 2.375.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
98. For which binomial distribution would a normal approximation be most
acceptable?
A. n = 50, π =
0.05
B. n = 100, π =
0.04
C. n = 40, π =
0.25
D. n = 400, π =
0.02
We want nπ ≥ 10 and n(1 - π) ≥ 10.
AACSB: Analytic
Blooms: Apply
99. Historically, the default rate on a certain type of commercial loan is 20 percent. If
a bank makes 100 of these loans, what is the approximate probability that at least
26 will result in default?
A. 0.2000
B. 0.0668
C. 0.0846
D. 0.0336

π)]1/2 = [100(.20)(1 - .20)]1/2 = 4. Use x = 25.5 (with the continuity correction) and
calculate the binomial P(X ≥ 26) ≈ P(z ≥ 1.375) using z = (x - μ)/σ = 1.375.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
100. A company employs 300 employees. Each year, there is a 30 percent turnover rate
for employees. We want to do a normal approximation to the binomial distribution
of the number of employees who leave each year. For this normal approximation,
the mean is ______ and the standard deviation is _____.
A. 90, 63
B. 90, 7.937
C. 90, 30
D. 90, 15
Use n = 300 and π = .30, and then calculate μ = nπ and σ = [nπ(1 - π)]1/2.
AACSB: Analytic
Blooms: Apply
101. The probability that a rental car will be stolen is 0.001. If 25,000 cars are rented
from Hertz, what is the normal approximation to the probability that fewer than 20
will be stolen?
A. .2577
B. .1335
C. .1128
D. .8335
Set n = 25,000 and π = .001. Calculate μ = nπ = (25000)(.001) = 25 and σ =

[nπ(1 - π)]1/2 = [25000(.001)(1 - .001)]1/2 = 4.9975 Use x = 19.5 (with the
continuity correction) and calculate the binomial P(X < 20) ≈ P(z <-1.10055)
using z = (x - μ)/σ = -1.10055.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
102. If adult male heights are normally distributed with a mean of 180 cm and a
standard deviation of 7 cm, how high should an aircraft lavatory door be to ensure
that 99.9 percent of adult males will not have to stoop as they enter?
A. 195.7
cm
B. 201.6
cm
C. 207.3
cm
D. 201.4
cm
With Excel we get =NORM.INV(.999,180,7) = 201.63, or Appendix C with z = 3.09.
AACSB: Analytic
Blooms: Apply
103. TotCo is developing a new deluxe baby bassinet. If the length of a newborn baby
is normally distributed with a mean of 50 cm and a standard deviation of 5 cm,
what should be the interior length of the bassinet to ensure that 99 percent of
newborn babies will fit, with a safety margin of 15 cm on each end of the
bassinet?
A. 95.45
cm
B. 85.22
cm
C. 91.63
cm
D. 98.92
cm
With Excel we get =NORM.INV(.99,50,5) + 30 = 91.63, or Appendix C with z =

2.33.
AACSB: Analytic
Blooms: Apply
104. The triangular distribution T(4, 12, 26) has a mean of:
A. 14.
B. 18.
C. 12.
D. 13.
Mean is (4 + 12 + 26)/3.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
105. The triangular distribution T(0, 10, 20) has a standard deviation of:
A. 4.082.
B. 3.775.
C. 3.024.
D. 2.994.
Set a = 0. b = 10, c = 20 and use the triangular standard deviation formula σ =

[(a2 + b2 + c2 - ab - ac - bc)/18]1/2 = 4.082.
AACSB: Analytic
Blooms: Apply
106. The triangular distribution T(5, 23, 62) has a mean of:
A. 23.
B. 30.
C. 33.
D. 35.
Mean is (5 + 23 + 62)/3.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
107. The triangular distribution T(10, 20, 50) has a standard deviation of:
A. 9.498.
B. 9.225.
C. 8.498.
D. 7.710.
Set a = 10, b = 20, c = 50 and use the triangular standard deviation formula σ =
[(a2 + b2 + c2 - ab - ac - bc)/18]1/2 = 8.498.
AACSB: Analytic
Blooms: Apply
A. The triangular distribution always has a single

mode.
B. The mean of the triangular distribution is (a + b +
c)/3.
C. The triangular distribution is right-
skewed.
The triangular distribution may be skewed right or left, and is symmetric only if
the mode is halfway between a and c. Review properties of the triangular
distribution.
AACSB: Analytic
Blooms: Remember
109. Bob used a triangular distribution of T(20, 30, 61) to represent his daily commute
time (minutes). Which statement is incorrect?
A. The distribution is right-

skewed.
B. The mode of the distribution exceeds the
mean.
C. The mean of the distribution is
37.
D. The midrange of the distribution is
40.5.
This triangular distribution is right-skewed. The mean is (20 + 30 + 61)/3 = 37,

which exceeds the mode b = 30. It would be helpful to sketch a graph of the PDF.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
110. Phyllis used a triangular distribution of T(10, 15, 20) to represent her daily
commute time (minutes). Which statement is incorrect?
A. The distribution is right-

skewed.
B. The mode of the distribution is at the
mean.
C. The mean of the distribution is
15.
D. The midrange of the distribution is
15.
The distribution is symmetric if the mode b lies halfway between the end points.
In this example, (a + c)/2 = (10 + 20)/2 = 15 so the mode b = 15 is halfway
between the minimum and maximum.
AACSB: Analytic
Blooms: Apply
111. In a continuous distribution:
A. P(X < 5) is the same as P(X ≤

5).
B. P(X < 5) is less than P(X ≤
5).
C. P(X < 5) is more than P(X ≤
5).
A point has no area in a continuous CDF.
AACSB: Analytic
Blooms: Understand
112. In a continuous distribution the
A. PDF is usually higher than the

CDF.
B. CDF is used to find left-tail
probabilities.
C. PDF shows the area under the
curve.
D. CDF is usually the same as the
PDF.
The CDF shows P(X ≤ x). Review definitions of PDF and CDF.
AACSB: Analytic
Blooms: Understand
113. If the mean waiting time for the next arrival is 12 minutes, what is the median
waiting time?
A. 7.2
minutes
B. 8.3
minutes
C. 9.1
minutes
D. 12
minutes
Set λ = 1/12 minute per arrival and take logs of both sides of exp(-λx) = .50 to
solve for x.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
114. If the mean waiting time for the next arrival is 18 minutes, what is the first quartile
(25th percentile) for waiting times?
A. 13
minutes
B. 7.9
minutes
C. 5.2
minutes
D. 3.1
minutes
Set λ = 1/18 minute per arrival and take logs of both sides of exp(-λx) = .75 to
solve for x.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
115. Could this function be a PDF?
A. Yes.
B. No
.
C. It depends on
x.
Area = 1/2 × base × height = .500, which is not 1 so it cannot be a PDF.
AACSB: Analytic
Blooms: Apply
116. Could this function be a PDF?
A. Yes.
B. No
.
C. It depends on
x.
Area = base × height = 2, which is not 1 so it cannot be a PDF.
AACSB: Analytic
Blooms: Apply
117. The ages of job applicants for a security guard position are uniformly distributed
between 25 and 65. Could a 25-year-old job applicant be two standard deviations
below the mean (or more than two standard deviations)?
A. Yes.
B. No
.
C. Impossible to determine from given
information.
Since σ = [(65 - 25)2/12]1/2 = 11.54, we can see that 25 is not 2σ below the
mean of 45.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Chapter 08 Sampling Distributions and Estimation Answer Key
1. The expected value of an unbiased estimator is equal to the parameter

whose value is being estimated.
TRUE
An unbiased estimator's expected value is the true parameter value.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain the desirable properties of estimators.
Topic: Estimators and Sampling Error
2. All estimators are biased since sampling errors always exist to some
extent.
FALSE
Some estimators are systematically biased, regardless of sampling error.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
3. An estimator must be unbiased if you are to use it for statistical analysis.
FALSE
An estimator can be useful as long as its bias is known.
AACSB: Analytic
Blooms: Remember
4. The efficiency of an estimator depends on the variance of the estimator's

sampling distribution.
TRUE
Efficiency is measured by the variance of the estimator's sampling

distribution.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
5. In comparing estimators, the more efficient estimator will have a smaller

standard error.
TRUE
Efficiency is measured by the variance of the estimator's sampling

distribution.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
6. A 90 percent confidence interval will be wider than a 95 percent confidence

interval, ceteris paribus.
FALSE
We can make a more precise statement about the true parameter if we are
willing to sacrifice some confidence. For example, z.025 = 1.960 (for 95
percent confidence) gives a wider interval than z.05 = 1.645 (for 90 percent
confidence). The proffered statement would also hold true for the Student's
t distribution.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
7. In constructing a confidence interval for the mean, the z distribution

provides a result nearly identical to the t distribution when n is large.
TRUE
Student's t approaches z as sample size increases.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
8. The Central Limit Theorem says that, if n exceeds 30, the population will be
normal.
FALSE
The population cannot be changed.
AACSB: Analytic
Blooms: Remember
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Mean and the Central Limit Theorem
9. The Central Limit Theorem says that a histogram of the sample means will
have a bell shape, even if the population is skewed and the sample is
small.
FALSE
A large sample size may be required if the population is skewed.
AACSB: Analytic
Blooms: Remember
10. The confidence level refers to the procedure used to construct the
confidence interval, rather than to the particular confidence interval we
have constructed.
TRUE
A particular interval either does or does not contain the true parameter.
AACSB: Analytic
Blooms: Understand
11. The Central Limit Theorem guarantees an approximately normal sampling

distribution when n is sufficiently large.
TRUE
Yes, although a large sample size may be required if the population is

skewed.
AACSB: Analytic
Blooms: Understand
12. A sample of size 5 shows a mean of 45.2 and a sample standard deviation
of 6.4. The standard error of the sample mean is approximately 2.86.
TRUE
The standard error is the standard deviation divided by the square root of
the sample size.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 08-04 Explain how sample size affects the standard error.
13. As n increases, the width of the confidence interval will decrease, ceteris
paribus.
TRUE
the sample size.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
14. As n increases, the standard error decreases.
TRUE
the sample size.
AACSB: Analytic
Blooms: Remember
15. A higher confidence level leads to a narrower confidence interval, ceteris

paribus.
FALSE
Higher confidence requires more uncertainty (a wider interval). For

example, z.025 = 1.960 (for 95 percent confidence) gives a wider interval
than z.05 = 1.645 (for 90 percent confidence). The proffered statement
would also hold true for the Student's t distribution.
AACSB: Analytic
Blooms: Understand
16. When the sample standard deviation is used to construct a confidence
interval for the mean, we would use the Student's t distribution instead of
the normal distribution.
TRUE
We should use t when the population variance is unknown.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
17. As long as the sample is more than one item, the standard error of the
sample mean will be smaller than the standard deviation of the population.
TRUE
the sample size.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
18. For a sample size of 20, a 95 percent confidence interval using the t
distribution would be wider than one constructed using the z distribution.
TRUE
Student's t is always larger than z for the same level of confidence.
AACSB: Analytic
Blooms: Remember
19. In constructing a confidence interval for a mean, the width of the interval is
dependent on the sample size, the confidence level, and the population
standard deviation.
TRUE
The confidence interval depends on all of these.
AACSB: Analytic
Blooms: Remember
20. In constructing confidence intervals, it is conservative to use the z
distribution when n ≥ 30.
FALSE
While t and z may be similar for large samples, it is more conservative to

use t.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
21. The Central Limit Theorem can be applied to the sample proportion.
TRUE
We are sampling a Bernoulli population, but the CLT still applies.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
22. The distribution of the sample proportion p = x/n is normal when n ≥ 30.
FALSE
We want at least 10 successes and 10 failures to assume that p is normally

distributed.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
23. The standard deviation of the sample proportion p = x/n increases as n

increases.
FALSE
The proffered statement is backwards because n is in the denominator of

[p(1 - p)/n]1/2.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
24. A 95 percent confidence interval constructed around p will be wider than a

90 percent confidence interval.
TRUE
Higher confidence requires more uncertainty (a wider interval).
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
25. The sample proportion is always the midpoint of a confidence interval for
the population proportion.
TRUE
The interval is p ± z[p(1 - p)/n]1/2.
AACSB: Analytic
Blooms: Remember
26. The standard error of the sample proportion is largest when π = .50.
TRUE
The value of [π(1 - π)/n]1/2 is smaller for any value less than π = .50.
AACSB: Analytic
Blooms: Understand
27. The standard error of the sample proportion does not depend on the
confidence level.
TRUE
The standard error of p is [π(1 - π)/n]1/2.
AACSB: Analytic
Blooms: Understand
28. To narrow the confidence interval for π, we can either increase n or

decrease the level of confidence.
TRUE
AACSB: Analytic
Blooms: Understand
29. Ceteris paribus, the narrowest confidence interval for π is achieved when
p = .50.
FALSE
The value of [p(1 - p)/n]1/2 is smaller for any value less than π = .50.
AACSB: Analytic
Blooms: Understand
30. The statistic p = x/n may be assumed normally distributed when np ≥ 10
and n(1 - p) ≥ 10.
TRUE
We want at least 10 successes and 10 failures in the sample to assume

normality of p.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
31. The Student's t distribution is always symmetric and bell-shaped, but its
tails lie above the normal.
TRUE
Student's t resembles a normal, but its PDF is above the normal PDF in the
tails.
AACSB: Analytic
Blooms: Remember
32. The confidence interval half-width when π = .50 is called the margin of
error.
TRUE
Pollsters use this definition.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
33. Based on the Rule of Three, if no events occur in n independent trials we

can set the upper 95 percent confidence bound at 3/n.
TRUE
We need a special rule because when p = 0 we can't apply the usual

formula p ± z[p(1 - p)/n]1/2.
AACSB: Analytic
Blooms: Remember
34. The sample standard deviation s is halfway between the lower and upper
confidence limits for the population σ (i.e., the confidence interval is
symmetric around s).
FALSE
The chi-square distribution is not symmetric.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-10 Construct a confidence interval for a variance (optional).
Topic: Confidence Interval for a Population Variance, σ2 (Optional)
35. In a sample size calculation, if the confidence level decreases, the size of
the sample needed will increase.
FALSE
Reduced confidence allows a smaller sample.
AACSB: Analytic
Blooms: Understand
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Mean
36. To calculate the sample size needed for a survey to estimate a proportion,
the population standard deviation σ must be known.
FALSE
For a proportion, the sample size formula requires π not σ.
AACSB: Analytic
Blooms: Apply
Topic: Sample Size Determination for a Proportion
37. Assuming that π = .50 is a quick and conservative approach to use in a

sample size calculation for a proportion.
TRUE
Assuming that π = .50 is quick and safe (but may give a larger sample
than is needed).
AACSB: Analytic
Blooms: Remember
38. To estimate the required sample size for a proportion, one method is to
take a small pilot sample to estimate π and then apply the sample size
formula.
TRUE
This is a common method, but assuming that π = .50 is quicker and safer.
AACSB: Analytic
Blooms: Remember
39. To estimate π, you typically need a sample size equal to at least 5 percent
of your population.
FALSE
The sample size n bears no necessary relation to N.
AACSB: Analytic
Blooms: Apply
40. To estimate a proportion with a 4 percent margin of error and a 95 percent

confidence level, the required sample size is over 800.
FALSE
n = (z/E)2(π)(1 - π) = (1.96/.04)2(.50)(1 - .50) = 600.25.
AACSB: Analytic
Blooms: Apply
41. Approximately 95 percent of the population X values will lie within the 95
percent confidence interval for the mean.
FALSE
The confidence interval is for the true mean, not for individual X values.
AACSB: Analytic
Blooms: Apply
42. A 99 percent confidence interval has more confidence but less precision
than a 95 percent confidence interval.
TRUE
The higher confidence level widens the interval so it is less precise.
AACSB: Analytic
Blooms: Apply
43. Sampling variation is not controllable by the statistician.
TRUE
Sampling variation is inevitable.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-01 Define sampling error; parameter; and estimator.
Topic: Sampling Variation
44. The sample mean is not a random variable when the population parameters
are known.
FALSE
The sample mean is a random variable regardless of what we know about

the population.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-01 Define sampling error; parameter; and estimator.
Topic: Sampling Variation
45. The finite population correction factor (FPCF) can be ignored if n = 7 and N
= 700.
TRUE
The FPCF has a negligible effect when the sample is less than 5 percent of
the population.
AACSB: Analytic
Blooms: Apply
Learning Objective: 08-08 Construct confidence intervals for finite populations.
Topic: Estimating from Finite Populations
46. In constructing a confidence interval, the finite population correction factor
(FPCF) can be ignored if samples of 12 items are drawn from a population
of 300 items.
TRUE
The FPCF has a negligible effect when the sample is less than 5 percent of
the population.
AACSB: Analytic
Blooms: Apply
47. The finite population correction factor (FPCF) can be ignored when the
sample size is large relative to the population size.
TRUE
The FPCF has a negligible effect when n is small relative to N.
AACSB: Analytic
Blooms: Apply

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 has a sampling distribution.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
49. As the sample size increases, the standard error of the mean:
A. increases
.
B. decreases
.
C. may increase or
decrease.
The standard error of the mean is σ/(n)1/2.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
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/(n)1/2 so replacing n by 4n would cut

the SEM in half.
AACSB: Analytic
Blooms: Understand
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/(n)1/2.
AACSB: Analytic
Blooms: Remember
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.
AACSB: Analytic
Blooms: Understand
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/(n)1/2 = (2.492)(5)/(25)1/2 = 2.492.
AACSB: Analytic
Blooms: Apply
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.
AACSB: Analytic
Blooms: Apply
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/(n)1/2 = (2.131)(1.2)/(16)1/2 = 0.639.
AACSB: Analytic
Blooms: Apply
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 zσ/(n)1/2.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
57. The owner of Torpid Oaks B&B wanted to know the average distance its
guests had traveled. A random sample of 16 guests showed a mean
distance of 85 miles with a standard deviation of 32 miles. The 90 percent
confidence interval (in miles) for the mean is approximately:
A. (71.0,
99.0)
B. (71.8,
98.2)
C. (74.3,
95.7)
D. (68.7,
103.2)
The interval is 85 ± ts/(n)1/2 or 85 ± (1.753)(32)/(16)1/2 with d.f = 15 (don't

use z).
AACSB: Analytic
Blooms: Apply
58. A highway inspector needs an estimate of the mean weight of trucks
crossing a bridge on the interstate highway system. She selects a random
sample of 49 trucks and finds a mean of 15.8 tons with a sample standard
deviation of 3.85 tons. The 90 percent confidence interval for the
population mean is:
A. 14.72 to 16.88
tons.
B. 14.90 to 16.70
tons.
C. 14.69 to 16.91
tons.
D. 14.88 to 16.72
tons.
The interval is 15.8 ± ts/(n)1/2 or 15.8 ± (1.677)(3.85)/(49)1/2 using d.f. =

48 (don't use z).
AACSB: Analytic
Blooms: Apply
59. To determine a 72 percent level of confidence for a proportion, the value of
z is approximately:
A. ±
1.65
B. ±
0.77
C. ±
1.08
D. ±
1.55
Look up the z value that puts 14 percent in each tail.
AACSB: Analytic
Blooms: Apply
60. To estimate the average annual expenses of students on books and class
materials a sample of size 36 is taken. The sample mean is $850 and the
sample standard deviation is $54. A 99 percent confidence interval for the
population mean is:
A. $823.72 to
$876.28
B. $832.36 to
$867.64
C. $826.82 to
$873.18
D. $825.48 to
$874.52
The interval is 850 ± ts/(n)1/2 or 850 ± (2.724)(54)/(36)1/2 with d.f = 35

(don't use z).
AACSB: Analytic
Blooms: Apply
61. In constructing a 95 percent confidence interval, if you increase n to 4n, the
width of your confidence interval will (assuming other things remain the
same) be:
A. about 25 percent of its former

width.
B. about two times
wider.
C. about 50 percent of its former
width.
D. about four times
wider.
The standard error of the mean is σ/(n)1/2 so replacing n by 4n would cut

the SEM in half.
AACSB: Analytic
Blooms: Apply
62. Which of the following is not a characteristic of the t distribution?
A. It is a continuous
distribution.
B. It has a mean of
0.
C. It is a symmetric
distribution.
D. It approaches z as degrees of freedom
decrease.
It approaches z as degrees of freedom increase.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
63. Which statement is incorrect? Explain.
A. If p = .50 and n = 100, the standard error of the sample proportion is

.05.
B. In a sample size calculation for estimating π, it is conservative to
assume π = .50.
C. If n = 250 and p = .06, we cannot assume normality in a confidence
interval for π.
Normality of p may be assumed because np = 15 and n(1 - p) = 235.
AACSB: Analytic
Blooms: Apply
64. What is the approximate width of a 90 percent confidence interval for the
true population proportion if there are 12 successes in a sample of 25?
A. ±
.196
B. ±
.164
C. ±
.480
D. ±
.206
The interval width is ± z[p(1 - p)/n]1/2 = ± (1.645)[(.48)(.52)/25]1/2.
AACSB: Analytic
Blooms: Apply
65. A poll showed that 48 out of 120 randomly chosen graduates of California
medical schools last year intended to specialize in family practice. What is
the width of a 90 percent confidence interval for the proportion that plan to
specialize in family practice?
A. ±
.0447
B. ±
.0736
C. ±
.0876
D. ±
.0894
AACSB: Analytic
Blooms: Apply
66. What is the approximate width of an 80 percent confidence interval for the
true population proportion if there are 12 successes in a sample of 80?
A. ±
.078
B. ±
.066
C. ±
.051
D. ±
.094
AACSB: Analytic
Blooms: Apply
67. A random sample of 160 commercial customers of PayMor Lumber
revealed that 32 had paid their accounts within a month of billing. The 95
percent confidence interval for the true proportion of customers who pay
within a month would be:
A. 0.148 to
0.252
B. 0.138 to
0.262
C. 0.144 to
0.256
D. 0.153 to
0.247
The interval is p ± z[p(1 - p)/n]1/2 = .20 ± (1.960)[(.20)(.80)/160]1/2.
AACSB: Analytic
Blooms: Apply
68. A random sample of 160 commercial customers of PayMor Lumber
revealed that 32 had paid their accounts within a month of billing. Can
normality be assumed for the sample proportion?
A. Yes.
B. No
.
C. Need more information to
say.
Yes, because there were at least 10 "successes" and at least 10 "failures"

in the sample.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
69. The conservative sample size required for a 95 percent confidence interval
for π with an error of ± 0.04 is:
A. 271.
B. 423.
C. 385.
D. 601.
n = (z/E)2(π)(1 - π) = (1.96/.04)2(.50)(1 - .50) = 600.25 (round up).
AACSB: Analytic
Blooms: Apply
70. Last week, 108 cars received parking violations in the main university
parking lot. Of these, 27 had unpaid parking tickets from a previous
violation. Assuming that last week was a random sample of all parking
violators, find the 95 percent confidence interval for the percentage of
parking violators that have prior unpaid parking tickets.
A. 18.1 to 31.9
percent.
B. 16.8 to 33.2
percent.
C. 15.3 to 34.7
percent.
D. 19.5 to 30.5
percent.
AACSB: Analytic
Blooms: Apply
71. In a random sample of 810 women employees, it is found that 81 would
prefer working for a female boss. The width of the 95 percent confidence
interval for the proportion of women who prefer a female boss is:
A. ±
.0288
B. ±
.0105
C. ±
.0207
D. ±
.0196
The width is ± z[p(1 - p)/n]1/2 or ± (1.960)[(.10)(.90)/810]1/2 or ± .0207.
AACSB: Analytic
Blooms: Apply
72. Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test
costs and would like to know what proportion of the positive lab tests for
prostate cancer are actually proven correct through subsequent biopsy.
JBGHI demands a sample large enough to ensure an error of ± 2 percent
with 90 percent confidence. What is the necessary sample size?
A. 4,148
B. 2,401
C. 1,692
D. 1,604
n = (z/E)2(π)(1 - π) = (1.645/.02)2(.50)(1 - .50) = 1691.3 (round up).
AACSB: Analytic
Blooms: Apply
73. A university wants to estimate the average distance that commuter
students travel to get to class with an error of ± 3 miles and 90 percent
confidence. What sample size would be needed, assuming that travel
distances are normally distributed with a range of X = 0 to X = 50 miles,
using the Empirical Rule μ ± 3σ to estimate σ.
A. About 28
students
B. About 47
students
C. About 30
students
D. About 21
students
Using σ = (50 - 0)/6 = 8.333, we get n = [zσ/E]2 = [(1.645)(8.333)/3]2 =

20.9 (round up).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
74. A financial institution wishes to estimate the mean balances owed by its
credit card customers. The population standard deviation is $300. If a 99
percent confidence interval is used and an interval of ± $75 is desired,
how many cardholders should be sampled?
A. 3382
B. 629
C. 87
D. 107
n = [zσ/E]2 = [(2.576)(300)/75]2 = 106.2 (round up).
AACSB: Analytic
Blooms: Apply
75. A company wants to estimate the time its trucks take to drive from city A to
city B. The standard deviation is known to be 12 minutes. What sample size
is required in order that error will not exceed ± 2 minutes, with 95 percent
confidence?
A. 12
observations
B. 139
observations
C. 36
observations
D. 129
observations
n = [zσ/E]2 = [(1.960)(12)/2]2 = 138.3 (round up).
AACSB: Analytic
Blooms: Apply
76. In a large lecture class, the professor announced that the scores on a
recent exam were normally distributed with a range from 51 to 87. Using
the Empirical Rule μ ± 3σ to estimate σ, how many students would you
need to sample to estimate the true mean score for the class with 90
percent confidence and an error of ± 2?
A. About 17
students
B. About 35
students
C. About 188
students
D. About 25
students
Using σ = (87 - 51)/6 = 6, we get n = [zσ/E]2 = [(1.645)(6)/2]2 = 24.35

(round up).
AACSB: Analytic
Blooms: Apply
77. Using the conventional polling definition, find the margin of error for a
customer satisfaction survey of 225 customers who have recently dined at
Applebee's.
A. ± 5.0
percent
B. ± 4.2
percent
C. ± 7.1
percent
D. ± 6.5
percent
The margin of error is ± z[π(1 - π)/n]1/2 or ± (1.960)[(.50)(.50)/225]1/2 or

± .065.
AACSB: Analytic
Blooms: Apply
78. A marketing firm is asked to estimate the percent of existing customers
who would purchase a "digital upgrade" to their basic cable TV service. The
firm wants 99 percent confidence and an error of ± 5 percent. What is the
required sample size (to the next higher integer)?
A. 664
B. 625
C. 801
D. 957
n = (z/E)2(π)(1 - π) = (2.576/.05)2(.50)(1 - .50) = 663.6 (round up).
AACSB: Analytic
Blooms: Apply
79. An airport traffic analyst wants to estimate the proportion of daily takeoffs
by small business jets (as opposed to commercial passenger jets or other
aircraft) with an error of ± 4 percent with 90 percent confidence. What
sample size should the analyst use?
A. 385
B. 601
C. 410
D. 423
n = (z/E)2(π)(1 - π) = (1.645/.04)2(.50)(1 - .50) = 422.8 (round up).
AACSB: Analytic
Blooms: Apply
80. Ersatz Beneficial Insurance wants to estimate the cost of damage to cars
due to accidents. The standard deviation of the cost is known to be $200.
They want to estimate the mean cost using a 95 percent confidence
interval within ± $10. What is the minimum sample size n?
A. 1083
B. 4002
C. 1537
D. 2301
n = [zσ/E]2 = [(1.960)(200)/10]2 = 1536.6 (round up).
AACSB: Analytic
Blooms: Apply
81. Professor York randomly surveyed 240 students at Oxnard University and
found that 150 of the students surveyed watch more than 10 hours of
television weekly. Develop a 95 percent confidence interval to estimate the
true proportion of students who watch more than 10 hours of television
each week. The confidence interval is:
A. .533 to
.717
B. .564 to
.686
C. .552 to
.698
D. .551 to
.739
AACSB: Analytic
Blooms: Apply
82. Professor York randomly surveyed 240 students at Oxnard University and
found that 150 of the students surveyed watch more than 10 hours of
television weekly. How many additional students would Professor York
have to sample to estimate the proportion of all Oxnard University students
who watch more than 10 hours of television each week within ± 3 percent
with 99 percent confidence?
A. 761
B. 1001
C. 1489
D. 1728
Using p = .625 we get n = (z/E)2(π)(1 - π) = (2.576/.03)2(.625)(.375) =

1728.06 (round up).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
83. The sample proportion is in the middle of the confidence interval for the
population proportion:
A. in any
sample.
B. only if the samples are
large.
C. only if π is not too far from
.50.
AACSB: Analytic
Blooms: Remember
84. For a sample of size 16, the critical values of chi-square for a 95 percent
confidence interval for the population variance are:
A. 6.262, 27.49
B. 6.908, 28.85
C. 5.629, 26.12
D. 7.261, 25.00
Using d.f. = n - 1 = 15, we get χ2L = 6.262 and χ2U = 27.49 from Appendix
E.
AACSB: Analytic
Blooms: Apply
A. 6.262, 27.49
B. 6.908, 28.85
C. 3.940, 18.31
D. 3.247, 20.48
d.f. = n - 1 = 10, we get χ2L = 3.940 and χ2U = 18.31 from Appendix E.
AACSB: Analytic
Blooms: Apply
A. 6.262, 27.49
B. 5.697, 35.72
C. 5.629, 26.12
D. 7.261, 25.00
d.f. = n - 1 = 17, we get χ2L = 5.697 and χ2U = 35.72 from Appendix E.
AACSB: Analytic
Blooms: Apply
87. Which of the following statements is most nearly correct, other things
being equal?
A. Using Student's t instead of z makes a confidence interval

narrower.
B. The table values of z and t are about the same when the mean is
large.
C. For a given confidence level, the z value is always smaller then the t
value.
D. Student's t is rarely used because it is more conservative to
use z.
As n increases, t approaches z, but t is always larger than z.
AACSB: Analytic
Blooms: Understand
88. The Central Limit Theorem (CLT):
A. applies only to samples from normal

populations.
B. applies to any
population.
C. applies best to populations that are
skewed.
D. applies only when μ and σ are
known.
The appeal of the CLT is that is applies to populations of any shape.
AACSB: Analytic
Blooms: Remember
89. In which situation may the sample proportion safely be assumed to follow a
normal distribution?
A. 12 successes in a sample of 72
items
B. 8 successes in a sample of 40
items
C. 6 successes in a sample of 200
items
D. 4 successes in a sample of 500
items
We prefer at least 10 "successes" and at least 10 "failures" to assume that

p is normal.
AACSB: Analytic
Blooms: Remember
90. In which situation may the sample proportion safely be assumed to follow a
normal distribution?
A. n = 100, π =
.06
B. n = 250, π =
.02
C. n = 30, π =
.50
D. n = 500, π =
.01
We want nπ ≥ 10 and n(1 - π) ≥ 10 to assume that p is normal.
AACSB: Analytic
Blooms: Remember
91. If σ = 12, find the sample size to estimate the mean with an error of ± 4
and 95 percent confidence (rounded to the next higher integer).
A. 75
B. 35
C. 58
D. 113
n = [zσ/E]2 = [(1.960)(12)/4]2 = 34.6 (round up).
AACSB: Analytic
Blooms: Remember
92. If σ = 25, find the sample size to estimate the mean with an error of ±3
and 90 percent confidence (rounded to the next higher integer).
A. 426
B. 512
C. 267
D. 188
n = [zσ/E]2 = [(1.645)(25)/3]2 = 187.9 (round up).
AACSB: Analytic
Blooms: Remember
93. Sampling error can be avoided:
A. by using an unbiased
estimator.
B. by eliminating nonresponses (e.g., older
people).
C. by no method under the statistician's
control.
D. either by using an unbiased estimator or by eliminating
nonresponse.
Sampling error occurs in any random sample used to estimate an unknown

parameter.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
94. A consistent estimator for the mean:
A. converges on the true parameter μ as the variance

increases.
B. converges on the true parameter μ as the sample size
increases.
C. consistently follows a normal
distribution.
D. is impossible to obtain using real sample
data.
The variance becomes smaller and the estimator approaches the

parameter as n increases.
AACSB: Analytic
Blooms: Remember
95. Concerning confidence intervals, which statement is most nearly correct?
A. We should use z instead of t when n is

large.
B. We use the Student's t distribution when σ is
unknown.
C. We use the Student's t distribution to narrow the confidence
interval.
Student's t distribution widens the confidence interval when σ is unknown.
AACSB: Analytic
Blooms: Understand
96. The standard error of the mean decreases when:
A. the sample size

decreases.
B. the standard deviation
increases.
C. the standard deviation decreases or n
increases.
D. the population size
decreases.
The standard error of the mean σ/(n1/2) depends on n and σ.
AACSB: Analytic
Blooms: Understand
97. For a given sample size, the higher the confidence level, the:
A. more accurate the point

estimate.
B. smaller the standard
error.
C. smaller the interval
width.
D. greater the interval
width.
To have more confidence, we must widen the interval. For example, z.025 =
1.960 (for 95 percent confidence) gives a wider interval than z.05 = 1.645
(for 90 percent confidence). The proffered statement would also be true for
the Student's t distribution.
AACSB: Analytic
Blooms: Understand
98. A sample is taken and a confidence interval is constructed for the mean of
the distribution. At the center of the interval is always which value?
A. The sample mean
B. The population mean

μ
C. Neither nor μ since with a sample anything can
happen
D. Both and μ as long as there are not too many
outliers
The confidence interval for the mean is symmetric around the sample
mean.
AACSB: Analytic
Blooms: Remember
99. If a normal population has parameters μ = 40 and σ = 8, then for a
sample size n = 4:
A. the standard error of the sample mean is approximately

2.
B. the standard error of the sample mean is approximately
4.
C. the standard error of the sample mean is approximately
8.
D. the standard error of the sample mean is approximately
10.
The standard error is σ/(n1/2) = (8)/(41/2) = 4.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Chapter 09 One-Sample Hypothesis Tests Answer Key
1. The level of significance refers to the probability of making a Type II error.
FALSE
The level of significance is the desired probability of Type I error.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-03 Define Type I error; Type II error; and power.
Topic: Logic of Hypothesis Testing
2. The level of significance refers to the probability of making a Type I error.
TRUE
The level of significance is the desired probability of Type I error.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
3. A simultaneous reduction in both α and β will require a larger sample
size.
TRUE
In general, there is a trade-off between α and β, but with a larger n we

can reduce both.
AACSB: Analytic
Blooms: Understand
4. The probability of rejecting a false null hypothesis increases as the sample

size increases, other things being equal.
TRUE
Larger samples cut the chance of Type II error (β) and increase power (1 -
β).
AACSB: Analytic
Blooms: Understand
5. When the probability of a Type I error increases, the probability of a Type II
error must decrease, ceteris paribus.
TRUE
For a given sample size, there is a trade-off between α and β.
AACSB: Analytic
Blooms: Understand
6. A false positive in a drug test for steroids is a Type II error.
FALSE
A false positive is a Type I error.
AACSB: Analytic
Blooms: Understand
7. If a judge acquits every defendant, the judge will never commit a Type I
error (H0 is the hypothesis of innocence).
TRUE
If no one is convicted, there is no Type I error (but there can be Type II

error).
AACSB: Analytic
Blooms: Understand
8. When your sample size increases, the chance of both Type I and Type II
error will increase.
FALSE
There is a trade-off between α and β unless we can increase n.
AACSB: Analytic
Blooms: Understand
9. A Type II error can only occur when you fail to reject H0.
TRUE
If you don't reject H0, you may commit Type II error.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
10. A Type I error can only occur if you reject H0.
TRUE
If you reject H0, a false positive can occur.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
11. John rejected H0 so we know definitely that he did not commit Type II
error.
TRUE
If you reject H0, you may commit Type I error but not Type II error.
AACSB: Analytic
Blooms: Apply
12. In hypothesis testing we cannot prove a null hypothesis is true.
TRUE
The null hypothesis could be falsified by a different sample.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
13. For a given level of significance (α), increasing the sample size will
increase the probability of Type II error because there are more ways to
make an incorrect decision.
FALSE
Large sample size is beneficial in reducing error of either type.
AACSB: Analytic
Blooms: Understand
Topic: Statistical Hypothesis Testing
14. For a given sample size, reducing the level of significance will decrease the
probability of making a Type II error.
FALSE
For fixed n, reducing α would tend to increase β.
AACSB: Analytic
Blooms: Apply
15. The probability of a false positive is decreased if we reduce α.
TRUE
By definition, α is the chance of a false positive.
AACSB: Analytic
Blooms: Understand
16. A hypothesis test may be statistically significant, yet have little practical
importance.
TRUE
Small effects may be unimportant in some applications.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-06 Perform a hypothesis test for a mean with known σ using z.
Topic: Testing a Mean: Known Population Variance
17. Compared to using α = .01, choosing α = .001 will make it less likely that
a true null hypothesis will be rejected.
TRUE
Smaller α makes it harder to reject the null hypothesis (but may increase
β).
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 09-08 Use tables or Excel to find the p-value in tests of μ.
18. A two-tailed hypothesis test for H0: μ = 15 at α = .10 is analogous to
asking if a 90 percent confidence interval for μ contains 15.
TRUE
Only in a two-tailed hypothesis test is this statement true.
AACSB: Analytic
Blooms: Apply
19. For a given sample size and α level, the Student's t value always exceeds
the z value.
TRUE
As n increases, t approaches z, but t is always larger.
AACSB: Analytic
Blooms: Understand
Learning Objective: 09-07 Perform a hypothesis test for a mean with unknown σ using t.
Topic: Testing a Mean: Unknown Population Variance
20. For a given level of significance, the critical value of Student's t increases
as n increases.
FALSE
As n increases, t declines and approaches the corresponding z.
AACSB: Analytic
Blooms: Understand
21. For a sample of nine items, the critical value of Student's t for a left-tailed
test of a mean at α = .05 is -1.860.
TRUE
Use Appendix D or Excel's function =T.INV(.05,8).
AACSB: Analytic
Blooms: Apply
Learning Objective: 09-05 Find critical values of z or t in tables or by using Excel.
22. Holding other factors constant, it is harder to reject the null hypothesis for
a mean when conducting a two-tailed test rather than a one-tailed test.
TRUE
For a two-tailed test, the critical value is farther out in the tail.
AACSB: Analytic
Blooms: Understand
23. If we desire α = .10, then a p-value of .13 would lead us to reject the null
hypothesis.
FALSE
Reject the null if the p-value is less than α.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
24. The p-value is the probability of the sample result (or one more extreme)
assuming H0 is true.
TRUE
This is the definition of a p-value.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
25. The probability of rejecting a true null hypothesis is the significance level of
the test.
TRUE
This is the definition of α.
AACSB: Analytic
Blooms: Remember
26. A null hypothesis is rejected when the calculated p-value is less than the
critical value of the test statistic.
FALSE
No, the p-value is compared with α (not with the critical value from a
table).
AACSB: Analytic
Blooms: Remember
27. In a right-tailed test, the null hypothesis is rejected when the value of the
test statistic exceeds the critical value.
TRUE
For example, we would reject H0 if zcalc > 1.645 at α = .05.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
28. The critical value of a hypothesis test is based on the researcher's selected
level of significance.
TRUE
The level of significance is the desired tail area, which dictates the critical
value.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
29. If the null and alternative hypotheses are H0: μ ≤ 100 and H1: μ > 100, the
test is right-tailed.
TRUE
The direction of the test is always revealed by the direction of the

inequality in H1.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 09-04 Formulate a null and alternative hypothesis for μ or π.
30. The null hypothesis is rejected when the p-value exceeds the level of
significance.
FALSE
Reject the null if the p-value is less than α.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
31. For a given null hypothesis and level of significance, the critical value for a
two-tailed test is greater than the critical value for a one-tailed test.
TRUE
For a two-tailed test, we have to go farther into the tails to put α/2 in the
tail.
AACSB: Analytic
Blooms: Understand
32. For a given Ho and level of significance, if you reject the H0 for a one tailed-
test, you would also reject H0 for a two-tailed test.
FALSE
The opposite is true because the two-tailed critical value is bigger.
AACSB: Analytic
Blooms: Understand
33. If the hypothesized proportion is π0 = .025 in a sample of size 120, it is

safe to assume normality of the sample proportion p.
FALSE
We can assume normality of p if nπ0 ≥ 10 and n(1 - π0) ≥ 10, which is not
true here.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 09-09 Perform a hypothesis test for a proportion and find the p-value.
Topic: Testing a Proportion
34. For a mean, we would expect the test statistic to be near zero if the null
hypothesis is true.
TRUE
The difference between the sample mean and the hypothesized mean
would be small.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
35. In the hypothesis H0: π = π0, the value of π0 is derived from the sample.
FALSE
The hypothesized proportion is a target or historical benchmark.
AACSB: Analytic
Blooms: Remember
36. In testing the hypotheses H0: π ≤ π0, H1: π > π0, we would use a right-
tailed test.
TRUE
The direction of the test is always revealed by the direction of the

inequality in H1.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
37. To test the hypothesis H0: π = .0125 using n = 160, it is safe to assume
normality of p.
FALSE
We can assume normality of p if nπ0 ≥ 10 and n(1 - π0) ≥ 10, which is not
true here.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
38. In testing a proportion, normality of p can be assumed if nπ0 ≥ 10 and n(1

- π0) ≥ 10.
TRUE
This is a conservative rule of thumb.
AACSB: Analytic
Blooms: Remember
39. Power is the probability of rejecting the null hypothesis when it is false and
is equal to 1 - β.
TRUE
High power (small chance of Type II error) is desirable.
AACSB: Analytic
Blooms: Remember
40. Other things being equal, a smaller standard deviation implies higher
power.
TRUE
Higher variance makes it harder to detect a departure from H0.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 09-10 Interpret a power curve or OC curve (optional).
Topic: Power Curves and OC Curves (Optional)
41. The power of a test is the probability that the test will reject a false null
hypothesis.
TRUE
High power (small chance of Type II error) is desirable.
AACSB: Analytic
Blooms: Remember
42. The height of the power curve shows the probability of accepting a true null
hypothesis.
FALSE
Power is the chance of correctly rejecting a false null hypothesis.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
43. The power curve plots β on the Y axis and the test statistic on the X axis.
FALSE
A power curve plots the true parameter value on the X-axis and 1 - β on
the Y-axis.
AACSB: Analytic
Blooms: Remember
44. A smaller probability of Type II error implies higher power of the test.
TRUE
By definition, power is 1 - β.
AACSB: Analytic
Blooms: Understand
45. Varying the true mean is a movement along the power curve, not a shift in
the curve.
TRUE
The power curve shows how power varies with the true mean.
AACSB: Analytic
Blooms: Understand
46. Increasing the sample size shifts the power curve upward, ceteris paribus.
TRUE
Larger n would raise the power curve at all points along the X-axis.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
47. Increasing the level of significance shifts the power curve upward, ceteris
paribus.
TRUE
For a given n, increasing α would decrease β and hence raise power (1 -

β).
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
48. A power curve for a mean is at its lowest point when the true μ is very
near μ0.
TRUE
This is why it is hard to detect small departures from H0.
AACSB: Analytic
Blooms: Understand
49. Larger samples lead to increased power, ceteris paribus.
TRUE
AACSB: Analytic
Blooms: Understand
50. In graphing power curves, there is a different power curve for each sample
size n.
TRUE
AACSB: Analytic
Blooms: Understand
51. In hypothesis testing, we are trying to reject the alternative hypothesis.
FALSE
We are trying to reject the null hypothesis H0.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 09-02 Explain the difference between H0 and H1.
52. In hypothesis testing, we are trying to prove the null hypothesis.
FALSE
We cannot prove the null hypothesis, for H0 could be falsified by a different

sample.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
53. When σ is unknown, it is more conservative to use z instead of t for the

critical value.
FALSE
Because z is smaller than t we would reject too often if we use z (not

conservative).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
54. For a given sample size, when we increase the probability of Type I error,
the probability of a Type II error:
A. remains
unchanged.
B. increases
.
C. decreases
.
D. is impossible to determine without more
information.
For a given sample size, there is a trade-off between α and β.
AACSB: Analytic
Blooms: Understand
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).
AACSB: Analytic
Blooms: Understand
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).
AACSB: Analytic
Blooms: Understand
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.
AACSB: Analytic
Blooms: Remember
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).
AACSB: Analytic
Blooms: Understand
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.
AACSB: Analytic
Blooms: Understand
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 Type I

error.
B. John did not commit Type II
error.
C. John committed neither Type I nor Type II
error.
D. John committed both Type I and Type II
error.
John could have committed Type II error only if he failed to reject H0.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
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.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
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).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
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 engine 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.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
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.
AACSB: Analytic
Blooms: Apply
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.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
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.
AACSB: Analytic
Blooms: Apply
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.
AACSB: Analytic
Blooms: Apply
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 sample assuming that H0 is true.
AACSB: Analytic
Blooms: Remember
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).
AACSB: Analytic
Blooms: Understand
70. Guidelines for the Jolly Blue Giant Health Insurance Company say that the
average hospitalization for a triple hernia operation should not exceed 30
hours. A diligent auditor studied records of 16 randomly chosen triple
hernia operations at Hackmore Hospital and found a mean hospital stay of
40 hours with a standard deviation of 20 hours. "Aha!" she cried, "the
average stay exceeds the guideline." At α = .025, the critical value for a
right-tailed test of her hypothesis is:
A. 1.753
B. 2.131
C. 1.645
D. 1.960
Using Appendix D with d.f. = 16 - 1 = 15, we get t.025 = 2.131.
AACSB: Analytic
Blooms: Apply
hernia operations at Hackmore Hospital and found a mean hospital stay of
average stay exceeds the guideline." The value of the test statistic for her
hypothesis is:
A. 2.080
B. 0.481
C. 1.866
D. 2.000
tcalc = (40 - 30)/[(20)/161/2] = 2.000.
AACSB: Analytic
Blooms: Apply
hernia operations at Hackmore Hospital, and found a mean hospital stay of
average stay exceeds the guideline." The p-value for a right-tailed test of
her hypothesis is:
A. between .05 and

.10.
B. between .025 and
.05.
C. between .01 and
.025.
D. less than
.01.
Use Appendix D with tcalc = 2.000 or Excel =T.DIST.RT(2.000,15) = .0320.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
73. For a right-tailed test of a hypothesis for a population mean with n = 14,
the value of the test statistic was t = 1.863. The p-value is:
A. between .05 and

.025.
B. between .10 and
.05.
C. greater than
.10.
D. less than
.01.
For d.f. = 13, t.025 = 2.160 and t.05 = 1.771 or Excel =T.DIST.RT(1.863,13) =
.0426.
AACSB: Analytic
Blooms: Apply
74. Hypothesis tests for a mean using the critical value method require:
A. knowing the true value of

σ.
B. sampling a normal
population.
C. specifying β in
advance.
D. specifying α in
advance.
You cannot find the critical value without specifying α.
AACSB: Analytic
Blooms: Remember
75. The level of significance is not:
A. the probability of a "false

rejection."
B. a value between 0 and
1.
C. the likelihood of rejecting the null hypothesis when it is
true.
D. the chance of accepting a true null
hypothesis.
The level of significance is the risk of rejecting a true null hypothesis.
AACSB: Analytic
Blooms: Remember
76. The critical value in a hypothesis test:
A. is calculated from the sample

data.
B. usually is .05 or .01 in most statistical
tests.
C. separates the acceptance and rejection
regions.
D. depends on the value of the test
statistic.
We can specify whatever α we wish to set the desired tail area(s).
AACSB: Analytic
Blooms: Remember
77. Which is not a likely reason to choose the z distribution for a hypothesis
test of a mean?
A. The value of σ is
known.
B. The sample size n is very
large.
C. The population is
normal.
D. The value of σ is very
large.
We use z any time σ is known.
AACSB: Analytic
Blooms: Remember
78. Dullco Manufacturing claims that its alkaline batteries last at least 40
hours on average in a certain type of portable CD player. But tests on a
random sample of 18 batteries from a day's large production run showed a
mean battery life of 37.8 hours with a standard deviation of 5.4 hours. To
test DullCo's hypothesis, the test statistic is:
A. -
1.980
B. -
1.728
C. -
2.101
D. -
1.960
tcalc = (37.8 - 40)/[(5.4)/181/2] = -1.72848.
AACSB: Analytic
Blooms: Apply
mean battery life of 37.8 hours with a standard deviation of 5.4 hours. In a
left-tailed test at α = .05, which is the most accurate statement?
A. We would strongly reject the

claim.
B. We would clearly fail to reject the
claim.
C. We would face a rather close
decision.
D. We would switch to α = .01 for a more powerful
test.
tcalc = (37.8 - 40)/[(5.4)/181/2] = -1.728, while for d.f. = 18 - 1 = 17 we get

t.05 = -1.740, so it is a close decision.
AACSB: Analytic
Blooms: Apply
mean battery life of 37.8 hours with a standard deviation of 5.4 hours. To
test DullCo's hypothesis, the p-value is:
A. slightly less than

.05.
B. exactly equal to
.05.
C. slightly greater than
.05.
D. uncertain without knowing
α.
tcalc = -1.728, t.05 = -1.740 or Excel =T.DIST(-1.72848,17,1) = .0511.
AACSB: Analytic
Blooms: Apply
81. For tests of a mean, if other factors are held constant, which statement is
correct?
A. The critical value of Student's t increases as n

increases.
B. A test statistic tcalc = 1.853 with n = 16 leads to rejection at α = .01 in a
one-tailed test.
C. It is harder to reject the null hypothesis in a two-tailed test rather than a
one-tailed test.
D. If we desire α = .10, then a p-value of .13 would lead us to reject the
null hypothesis.
Rejection in a two-tailed test implies rejection in a one-tailed test, but not

vice versa.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
82. For a sample size of n = 100, and σ = 10, we want to test the hypothesis
H0: μ = 100. The sample mean is 103. The test statistic is:
A. 1.645
B. 1.960
C. 3.000
D. 0.300
zcalc = (103 - 100)/[(10)/1001/2] = 3.000.
AACSB: Analytic
Blooms: Apply
83. When testing the hypothesis H0: μ = 100 with n = 100 and σ2 = 100, we
find that the sample mean is 97. The test statistic is:
A. -
3.000
B. -
10.00
C. -
0.300
D. -
0.030
zcalc = (97 - 100)/[(10)/1001/2] = -3.000.
AACSB: Analytic
Blooms: Apply
84. Given a normal distribution with σ = 3, we want to test the hypothesis H0:
μ = 20. We find that the sample mean is 21. The test statistic is:
A. 1.000
B. 1.645
C. 1.960
D. impossible to find without more
information.
The sample size is needed to calculate the z test statistic.
AACSB: Analytic
Blooms: Understand
85. In testing a proportion, which of the following statements is incorrect?
A. Using α = .05 rather than α = .01 would make it more likely that H0 will
be rejected.
B. When the sample proportion is p = .02 and n = 150, it is safe to assume
normality.
C. An 80 percent confidence interval is narrower than the 90 percent
confidence interval, ceteris paribus.
D. The sample proportion may be assumed approximately normal if the
sample is large enough.
We want at least 10 "successes," but np = 3 in this example.
AACSB: Analytic
Blooms: Apply
86. Which of the following is not a characteristic of the t distribution?
A. It is a continuous
distribution.
B. It has a mean of
zero.
C. It a symmetric
distribution.
D. It is similar to the z distribution when n is
small.
Student's t resembles z most closely for a large sample size.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
87. Which of the following is not a valid null hypothesis?
A. H0: μ ≥
0
B. H0: μ ≤
0
C. H0: μ
≠0
D. H0: μ =
0
The null hypothesis cannot contain a two-tailed inequality.
AACSB: Analytic
Blooms: Remember
88. Given that in a one-tail test you cannot reject H0, can you reject H0 in a
two-tailed test at the same α?
A. Yes.
B. No
.
C. Maybe
.
Rejection in a two-tailed test implies rejection in a one-tailed test, but not

vice versa.
AACSB: Analytic
Blooms: Remember
89. The process that produces Sonora Bars (a type of candy) is intended to
produce bars with a mean weight of 56 gm. The process standard deviation
is known to be 0.77 gm. A random sample of 49 candy bars yields a mean
weight of 55.82 gm. Which are the hypotheses to test whether the mean is
smaller than it is supposed to be?
A. H0: μ ≤ 56, H1: μ >

56
B. H0: μ ≥ 56, H1: μ <
56
C. H0: μ = 56, H1: μ
≠ 56
D. H0: μ < 56, H1: μ ≥
56
We want a left-tailed alternative hypothesis.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
weight of 55.82 gm. Find the test statistic to see whether the candy bars
are smaller than they are supposed to be.
A. -
1.636
B. -
1.645
C. -
1.677
zcalc = (55.82 - 56)/[(0.77)/491/2] = -1.63636.
AACSB: Analytic
Blooms: Apply
weight of 55.82 gm. Find the p-value for a test to see whether the candy
bars are smaller than they are supposed to be.
A. Between .05 and

.10
B. Between .025 and
.05
C. Between .01 and
.025
D. Less than
.01
zcalc = (55.82 - 56)/[(0.77)/491/2] = -1.63636 and z.05 = -1.645, or find the

exact p-value as =NORM.S.DIST(-1.63636,1) = .0509.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
92. A sample of 16 ATM transactions shows a mean transaction time of 67
seconds with a standard deviation of 12 seconds. Find the test statistic to
decide whether the mean transaction time exceeds 60 seconds.
A. 1.457
B. 2.037
C. 2.333
D. 1.848
tcalc = (67 - 60)/[(12)/161/2] = 2.333.
AACSB: Analytic
Blooms: Apply
seconds with a standard deviation of 12 seconds. State the hypotheses to
test whether the mean transaction time exceeds 60 seconds.
A. H0: μ ≤ 60, H1: μ >

60
B. H0: μ ≥ 60, H1: μ <
60
C. H0: μ = 60, H1: μ
≠ 60
D. H0: μ < 60, H1: μ ≥
60
We want a right-tailed test in this case.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
seconds with a standard deviation of 12 seconds. Find the critical value to
test whether the mean transaction time exceeds 60 seconds at α = .01.
A. 2.947
B. 2.602
C. 2.583
D. 2.333
For d.f. = 15, use Appendix D to find t.01 = 2.602.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
95. Given H0: μ ≥ 18 and H1: μ < 18, we would commit Type I error if we:
A. conclude that μ ≥ 18 when the truth is that μ

< 18.
B. conclude that μ < 18 when the truth is that μ
≥ 18.
C. fail to reject μ ≥ 18 when the truth is that μ
< 18.
Rejecting a true null hypothesis is Type I error.
AACSB: Analytic
Blooms: Understand
96. For a right-tailed test of a hypothesis for a single population mean with n =
10, the value of the test statistic was t = 1.411. The p-value is:
A. between .05 and

.025.
B. between .10 and
.05.
C. greater than
.10.
D. less than
.001.
From Appendix D with d.f. = 9, t.05 = 1.833 and t.10 = 1.383.
AACSB: Analytic
Blooms: Apply
97. Last year, 10 percent of all teenagers purchased a new iPhone. This year, a
sample of 260 randomly chosen teenagers showed that 39 had purchased a
new iPhone. The test statistic to find out whether the percent has risen
would be:
A. 2.687
B. 2.758
C. .0256
D. 2.258
p = 39/260 = .15, π0 = .10, zcalc = (.15 - .10)/[(.10)(1 - .10)/260]1/2 =

2.68742.
AACSB: Analytic
Blooms: Apply
new iPhone. To test whether the percent has risen, the critical value at α
= .05 is:
A. 1.645
B. 1.658
C. 1.697
D. 1.960
z.05 = 1.645.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
new iPhone. To test whether the percent has risen, the p-value is
approximately:
A. .0501
B. .0314
C. .0492
D. .0036
p = 39/260 = .15, π0 = .10, zcalc = (.15 - .10)/[(.10)(1 - .10)/260]1/2 =

2.68742, so from Appendix C we get P(Z > 2.69) = .0036 or from Excel =1-
NORM.S.DIST(2.68742,1) = .0036.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
100. Ajax Peanut Butter's quality control allows 2 percent of the jars to exceed
the quality standard for insect fragments. A sample of 150 jars from the
current day's production reveals that 30 exceed the quality standard for
insect fragments. Which is incorrect?
A. Normality of p may safely be assumed in the hypothesis

test.
B. A right-tailed test would be
appropriate.
C. Common sense suggests that quality control standards aren't
met.
D. Type II error is more of a concern in this case than Type I
error.
nπ0 = (150)(.02) = 3, so normality of p is doubtful.
AACSB: Analytic
Blooms: Apply
101. In the nation of Gondor, the EPA requires that half the new cars sold will
meet a certain particulate emission standard a year later. A sample of 64
one-year-old cars revealed that only 24 met the particulate emission
standard. The test statistic to see whether the proportion is below the
requirement is:
A. -
1.645
B. -
2.066
C. -
2.000
D. -
1.960
p = 24/64 = .375, π0 = .50, zcalc = (.375 - .50)/[(.50)(1 - .50)/64]1/2 = -

2.000.
AACSB: Analytic
Blooms: Apply
102. The hypotheses H0: π ≥ .40, H1: π < .40 would require:
A. a left-tailed
test.
B. a right-tailed
test.
C. a two-tailed
test.
The inequality in the alternative hypothesis points to the direction of the

test.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
103. At α = .05, the critical value to test the hypotheses H0: π ≥ .40, H1: π <
.40 would be:
A. -
1.645
B. -
1.960
C. -
2.326
D. impossible to determine without more
information.
z.05 = - 1.645.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
104. In a test of a mean, the reported p-value is .025. Using α =.05 the
conclusion would be to:
A. accept the null

hypothesis.
B. reject the null
hypothesis.
C. fail to reject the null
hypothesis.
D. gather more evidence due to inconclusive
results.
Reject the null hypothesis if the p-value is smaller than α.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
105. Which of the following decisions could result in a Type II error for a test?
A. Reject the alternative

hypothesis
B. Reject the null
hypothesis
C. Fail to reject the null
hypothesis
D. Make no
decision
Failing to reject H0 could lead to Type II error (but not Type I error).
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
106. The Melodic Kortholt Company will change its current health plan if at least
half the employees are dissatisfied with it. A trial sample of 25 employees
shows that 16 are dissatisfied. In this problem:
A. normality of the sample proportion should not be

assumed.
B. normality of the sample proportion can be
assumed.
C. normality of the sample proportion cannot be judged without
knowing π.
nπ0 = (25)(.50) = 12.5, so we expect at least 10 "successes" and 10

"failures" (be careful to use π0 instead of p to check for normality).
AACSB: Analytic
Blooms: Apply
shows that 16 are dissatisfied. The p-value for a right-tailed test is:
A. .1337
B. .4192
C. .0901
D. .0808
p = 16/25 = .64, π0 = .50, zcalc = (.64 - .50)/[(.50)(1 - .50)/25]1/2 = 1.400, so

from Appendix C we get P(Z > 1.40) = .0808 or from Excel =1-
NORM.S.DIST(1.400,1) = .08076.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
shows that 16 are dissatisfied. For a right-tailed test, the test statistic
would be:
A. 1.227
B. 1.375
C. 1.400
D. 1.115
p = 16/25 = .64, π0 = .50, zcalc = (.64 - .50)/[(.50)(1 - .50)/25]1/2 = 1.400.
AACSB: Analytic
Blooms: Apply
109. If sample size increases from 25 to 100 and the level of significance stays
the same, then:
A. the risk of Type II error would

decrease.
B. the risk of Type I error would
decrease.
C. the risk of both Type I and Type II errors would
decrease.
D. the risk of neither Type I nor Type II error would
decrease.
We are holding α constant so the larger sample will reduce β.
AACSB: Analytic
Blooms: Apply
110. "Currently, only 20 percent of arrested drug pushers are convicted," cried
candidate Courageous Calvin in a campaign speech. "Elect me and you'll
see a big increase in convictions." A year after his election a random
sample of 144 case files of arrested drug pushers showed 36 convictions.
For a right-tailed test, the p-value is approximately:
A. 0.9332
B. 0.0668
C. 0.0435
D. 0.0250
p = 36/144 = .25, π0 = .20, zcalc = (.25 - .20)/[(.20)(1 - .20)/144]1/2 = 1.500,

so from Appendix C we get P(Z > 1.50) = .0668 or from Excel =1-
NORM.S.DIST(1.500,1) = .0668.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
111. In a right-tailed test, a statistician got a z test statistic of 1.47. What is the
p-value?
A. .4292
B. .0709
C. .0874
D. .9292
From Appendix C we get P(Z > 1.47) = .0708 or from Excel =1-
NORM.S.DIST(1.47,1) = .0708.
AACSB: Analytic
Blooms: Apply
112. In a left-tailed test, a statistician got a z test statistic of -1.720. What is the
p-value?
A. .4292
B. .0709
C. .0427
D. .0301
From Appendix C we get P(Z < -1.72) = .0427 or from the Excel function
=NORM.S.DIST(-1.720,1) = .0427.
AACSB: Analytic
Blooms: Apply
113. In a two-tailed test, a statistician got a z test statistic of 1.47. What is the
p-value?
A. .0708
B. .1416
C. .0874
D. .0301
From Appendix C we get 2 × P(Z > 1.47) = 2 × .0708 = .1416. The Excel
version of this calculation is =2*(1-NORM.S.DIST(1.47,1)) = 0.14156.
AACSB: Analytic
Blooms: Apply
114. Which of the following statements is true?
A. Decreasing α will increase the power of the

test.
B. Doubling the sample size will double the power of the
test.
C. A higher standard deviation would increase the power if we are testing a
mean.
D. Power of the test rises if the true mean is farther from the hypothesized
mean.
A test becomes more sensitive (greater power) when the truth differs
greatly from H0.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
115. High power in a hypothesis test about one sample mean is likely to be
associated with:
A. small sample
size.
B. low
α.
C. large
β.
D. small
σ.
Less variation in the population makes the test more sensitive (greater
power).
AACSB: Analytic
Blooms: Understand
116. The power of a test is the probability of:
A. concluding H1 when H1 is
true.
B. concluding H1 when H0 is
true.
C. concluding H0 when H0 is
true.
D. concluding H0 when H1 is
true.
Review the definition of power.
AACSB: Analytic
Blooms: Remember
117. Which is not a step in hypothesis testing?
A. Formulate the
hypotheses.
B. Specify the desired Type I
error.
C. Find the test statistic from a
table.
D. Formulate a decision
rule.
Review the steps in hypothesis testing.
AACSB: Analytic
Blooms: Remember
Learning Objective: 09-01 List the steps in testing hypotheses.
118. Which is an invalid alternative hypothesis?
A. H1: μ ≠
18
B. H1: μ =
18
C. H1: μ >
18
D. H1: μ <
18
You cannot have an equality in the alternative hypothesis.
AACSB: Analytic
Blooms: Remember
119. Which is a valid null hypothesis?
A. H0: μ ≠
18
B. H0: μ =
18
C. H0: μ >
18
D. H0: μ <
18
The null hypothesis cannot have < or > or ≠.
AACSB: Analytic
Blooms: Remember
120. A two-tailed hypothesis test for H0: π = .30 at α = .05 is analogous to
A. asking if the 90 percent confidence interval for π contains

.30.
B. asking if the 95 percent confidence interval for π contains
.30.
C. asking if the p-value (area in both tails combined) is less than
.025.
D. asking if the p-value (area in both tails combined) is less than
.10.
This statement is true for a two-tailed test only.
AACSB: Analytic
Blooms: Understand
121. For a right-tailed test of hypothesis for a population mean with known σ,
the test statistic was z = 1.79. The p-value is:
A. .0367
B. .9633
C. .1186
D. .0179
From Appendix C we get P(Z > 1.79) = .0367 or from Excel =1-
NORM.S.DIST(1.79,1) = .0367.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
122. If n = 25 and α = .05 in a right-tailed test of a mean with unknown σ, the

critical value is:
A. 1.960
B. 1.645
C. 1.711
D. .0179
Using d.f. = 24, t.05 = 1.711 from Appendix D.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
123. The researcher's null hypothesis is H0: σ2 ≤ 22. A sample of n = 25 items
yields a sample variance of s2 = 28.5. The critical value of chi-square for a
right-tailed test at α = 05 is:
A. 1.960
B. 1.645
C. 13.85
D. 36.42
From Appendix E with d.f. = 24 we get χ2.05 = 36.42.
AACSB: Analytic
Blooms: Apply
Learning Objective: 09-11 Perform a hypothesis test for a variance (optional).
Topic: Tests for One Variance (Optional)
124. The researcher's null hypotheses is H0: σ2 ≤ 22. A sample of n = 25 items

yields a sample variance of s2 = 28.5. The test statistic is:
A. 31.09.
B. 26.42.
C. must know if it is a one-tailed
test.
D. must know α to
answer.
χ2.calc = (n - 1)s2/σ2 = (25 - 1)(28.5)/(22) = 31.09.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
125. The researcher's null hypothesis is H0: σ2 = 420. A sample of n = 18 items

yields a sample variance of s2 = 512. The critical values of chi-square for a
two-tailed test at α = .05 are:
A. 8.672 and
27.59
B. 7.564 and
30.19
C. -1.960 and
+1.960
D. 9.390 and
28.87
From Appendix E with d.f. = 17 we get χ2.025 = 7.564 (left tail) and 30.19
(right tail).
AACSB: Analytic
Blooms: Apply
126. The researcher's null hypotheses is H0: σ2 = 420. A sample of n = 18 items
yields a sample variance of s2 = 512. The test statistic is:
A. 34.09
B. 20.72
C. 14.77
D. must know α to
answer.
χ2calc = (n - 1)s2/σ2 = (18 - 1)(512)/(420) = 20.72.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
127. In hypothesis testing, Type I error is:
A. always set at 5
percent.
B. smaller than or equal to 5
percent.
C. the probability of rejecting H0 when H0 is
true.
D. the probability of rejecting H0 when H1 is
true.
Rejecting a true null hypothesis is Type I error.
AACSB: Analytic
Blooms: Remember
128. In hypothesis testing, the value of β is:
A. equal to 1 minus the probability of committing Type I

error.
B. the probability of concluding H0 when H0 is
true.
C. the probability of concluding H0 when H1 is
true.
Failing to reject a false null hypothesis is Type II error.
AACSB: Analytic
Blooms: Remember
129. Regarding the probability of Type I error (α) and Type II error (β), which
statement is true?
A. β >
α
B. β <
α
C. α + β
=1
D. Power = 1 -
β.
Although α and β are related, there is no simple equation relating α and

β.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
130. In the hypothesis H0: μ = μ0, the value of μ0 is not derived from:
A. the
sample.
B. past
experience.
C. a target or
benchmark.
D. a scientific
theory.
The hypothesized value of the mean is a target or from past experience.
AACSB: Analytic
Blooms: Remember
131. In testing the hypotheses H0: π ≤ π0, H1: π > π0, we would use a:
A. two-tailed
test.
B. left-tailed
test.
C. right-tailed
test.
D. breathalyzer
test.
The inequality in H1 always points to the direction of the test.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
132. We can assume that the sample proportion is normally distributed if:
A. we have 10 successes in the

sample.
B. we have 10 failures in the
sample.
C. we have both 10 successes and 10 failures in the
sample.
D. the population is
known.
As a guideline, we want at least 10 successes and 10 failures to assume a

normal p.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

133. Julia hypothesizes that fewer than 90 percent of her Visa purchases are
under $100. She examines a random sample of her recent purchases and
performs a test. The results shown below are from MegaStat. What would
Julia conclude from this test? Explain carefully.
The p-value says that p = 108/130 = .8308 might be expected about 4

times in 1000 samples, assuming that the true proportion is .90, so the
sample convinces us to reject the hypothesis that π = .90 even at α = .01.
Normality can be assumed because n(1 - π0) = (130)(.10) = 13 exceeds
10.
Feedback: The z-value is more than two standard errors below zero,
indicating that the sample proportion is well below the hypothesized π =
.90. The p-value says that a sample proportion such as p = 108/130 =
.8308 might be expected about 4 times in 1000 samples by chance,
assuming that the true proportion is .90, so the sample would convince us
to reject the hypothesis that π = .90 even at α = .01. Normality can be
assumed since n(1 - π0) = (130)(.10) = 13 exceeds 10. The sample of n =
130 is fairly large, so Julia seems to have proven her case.

Blooms: Evaluate
134. Why is it better to say "fail to reject H0" instead of "accept H0"?
A different sample could lead to rejection of H0 so we must allow the

possibility that H0 could be rejected at a later time, or that a different
researcher might get a different result.
Feedback: If the sample evidence is insufficient to reject H0, a different

sample could lead to rejection of H0. Thus, we must allow the possibility
that H0 could be rejected at a later time, or that a different researcher
might get a different result. Although a sample could contradict H0 strongly
enough to make H0 seem to be false, there is no way to show conclusively
that it is true. That said, many hypotheses are provisionally accepted
because they have never been proved false, despite rigorous efforts to do
so.

Blooms: Evaluate
135. Mary examined a random sample of Friday withdrawals from a college
campus ATM. She hypothesized that the mean was less than $100. The
results shown below are from MegaStat. What would Mary conclude from
this test? Explain carefully.
The p-value says that a sample mean such as this might be expected about
25 times in 100 samples, assuming that the true mean is $100, so we are
not convinced to reject the hypothesis that μ = 100 even at α = .10.
Feedback: The t-value is within one standard error of zero, indicating that
the sample mean does not differ very much from the hypothesized mean.
The p-value says that a sample mean such as this might be expected about
25 times in 100 samples by chance alone, assuming that the true mean is
$100, so the sample mean of $85.88 does not convince us to reject the
hypothesis that μ = 100 even at α = .10. A t-test is used because the
population standard deviation is unknown.

Blooms: Evaluate
136. Bob hypothesizes that the average student at his university has to take
more than 130 credits to graduate. He takes a random sample of his
classmates and performs a test. The results shown below are from
MegaStat. What would Bob conclude from this test? Explain carefully.
The p-value says that a sample mean such as this might be expected only
1 or 2 times in 100 samples, assuming that the true mean is 130, so we
would reject the hypothesis μ = 130 at α = .025 but not quite at α = .01.
Feedback: The t-value is almost two standard errors above zero. The p-
value says that a sample mean such as this might be expected about 1 or 2
times in 100 samples by chance, assuming that the true mean is 130, so
the sample would convince us to reject the hypothesis μ = 130 at α =
.025 but not quite at α = .01. A t-test is used since the population
standard deviation is unknown.

Blooms: Evaluate
137. Pedro hypothesizes that more than half of his classmates would prefer a
virtual web graduation ceremony, rather than sitting in the hot sun during
the commencement speech. He takes a random sample of his classmates
and performs a test. The results shown below are from MegaStat. What
would Pedro conclude from this test? Explain carefully.
The p-value says that a sample proportion such as p = 15/25 = .60 might
be expected about 16 times in 100 samples, assuming that the true
proportion is .50, so Pedro would not reject the hypothesis that π = .50
even at a weak level of significance such as α = .10. Normality can be
assumed because nπ0 = (25)(.50) = 12.5 exceeds 10.
Feedback: The z-value is only one standard error above zero, indicating
that the sample proportion does not differ much from the hypothesized π
= .50. The p-value says that a sample proportion such as p = 15/25 = .60
might be expected about 16 times in 100 samples by chance, assuming
that the true proportion is .50, so Pedro would not reject the hypothesis
that π = .50 even at a weak level of significance such as α = .10.
Normality can be assumed because nπ0 = (25)(.50) = 12.5 exceeds 10. If
Pedro wants to pursue his theory, he could take a larger sample than n =
25.

Blooms: Evaluate
ANSWERS CHAPTER 10
1. In a left-tailed test comparing two means with unknown variances assumed to be equal, the
test statistic was t = -1.81 with sample sizes of n1 = 8 and n2 = 12. The p-value would be:
A. between .025 and .05.
B. between .01 and .025.
C. between .05 and .10.
D. Must know α to answer.
For d.f. = 18, Appendix D gives t.05 = 1.734 and t.025 = 2.101, or for an exact answer you can
use the Excel function =T.DIST(-1.81,8+12-2,1) = .04351.
2. In a left-ailed test comparing two means with variances unknown but assumed to be
equal, the sample sizes were n1 = 8 and n2 = 12. At α = .05, the critical value would be:
A. -1.960
B. -2.101
C. -1.734
D. -1.645
For d.f. = 18, Appendix D gives t.05 = -1.734.

3. 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. -1.31.
C. -1.67.
D. Must know α to answer.
Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in zcalc.
4. 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.
5. 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.
6. 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).
7. Management of Melodic Kortholt Company compared absenteeism rates in two plants on

the third Monday in November. Of Plant A's 800 employees, 120 were absent. Of Plant
B's 1200 employees, 144 were absent. MegaStat's results for a two-tailed test are shown
below.
At α = .05, the two-tailed test for a difference in proportions is:
A. just barely significant.
B. not quite significant.
C. not feasible due to nonnormality.
Because the p-value is slightly greater than .05, we cannot reject H0.
8. A new policy of "flex hours" is proposed. Random sampling showed that 28 of 50 female
workers favored the change, while 22 of 50 male workers favored the change.
Management wonders if there is a difference between the two groups. What is the p-
value for a two-tailed test?
A. .3849
B. .1151
C. .2301
D. .3453
Combined proportion is pc = (28 + 22)/(50 + 50) = .50, so zcalc = (.56 - .44)/[.50(1 - .50)/50 +
50(1 - .50)/50]1/2 = -1.20 and 2 × P(Z < -1.20) = 2 × .1151 = .2302 (or .2301 using Excel).
9. Two well-known aviation training schools are being compared using random samples of
their graduates. It is found that 70 of 140 graduates of Fly-More Academy passed their
FAA exams on the first try, compared with 104 of 260 graduates of Blue Yonder Institute.
To compare the pass rates, the pooled proportion would be:
A. .500
B. .435
C. .400
D. .345
Combined proportion is pc = (70 + 104)/(140 + 260) = .435.
10. Of 200 youthful gamers (under 18) who tried the new Z-Box-Plus game, 160 rated it
"excellent," compared with only 144 of 200 adult gamers (18 or over). The 95 percent
confidence interval for the difference of proportions would be approximately:
A. [+.013, +.263].
B. [-.014, +.188].
C. [-.003, +.163].
D. [+.057, +.261].
Do not pool the proportions when you calculate the standard error of p1 - p2.
11. Carver Memorial Hospital's surgeons have a new procedure that they think will decrease
the time to perform an appendectomy. A sample of 8 appendectomies using the old
method had a mean of 38 minutes with a variance of 36 minutes, while a sample of 10
appendectomies using the experimental method had a mean of 29 minutes with a
variance of 16 minutes. For a right-tail test for equal means (assume equal variances), the
critical value at α = .10 is:
A. 1.746
B. 1.337
C. 2.120
D. 2.754
For d.f. = (n1 - 1) + (n2 - 1) = 7 + 9 = 16, we get t.10 = 1.337.
12. A medical researcher wondered if there is a significant difference between the mean birth
weight of boy and girl babies. Random samples of 5 babies' weights (pounds) for each
gender showed the following:
To test the researcher's hypothesis, we should use the:
A. paired (dependent) samples t-test.
B. independent samples t-test.
C. large-sample z-test.
D. t-test for correlation.
Although arranged side by side, these are unrelated data (independent samples).
13. In a test of a new surgical procedure, the five most respected surgeons in FlatBroke
Township were invited to Carver Hospital. Each surgeon was assigned two patients of the
same age, gender, and overall health. One patient was operated upon in the old way, and
the other in the new way. Both procedures are considered equally safe. The surgery times
are shown below:
The time (in minutes) to complete each procedure was carefully recorded. In a right-
tailed test for a difference of means, the test statistic is:
A. 3.162
B. 1.645
C. 1.860
D. 2.132
The test statistic is tcalc = (5 - 0)/[(3.5355)/51/2] = 3.162.
14. A corporate analyst is testing whether mean inventory turnover has increased. Inventory
turnover in six randomly chosen product distribution centers (PDCs) is shown.
The degrees of freedom for the appropriate test would be:
A. 6.
B. 5.
C. 4.
D. 12.
These are paired samples, so d.f. = 6 - 1 = 5.
15. The table below shows the mean number of daily errors by air traffic controller trainees
during the first two weeks on the job. We want to perform a paired t-test at α = .05 to see
if the mean daily errors decreased significantly.
The test statistic is:

A. 1.25
B. 1.75
C. 0.87
D. 0.79
Paired data test statistic is tcalc = (0.8286 - 0)/[(1.7547)/71/2] = 1.249.
16. Does the Speedo Fastskin II Male Hi-Neck Bodyskin competition racing swimsuit improve
a swimmer's 200-yard individual medley performance times? A test of 100 randomly
chosen male varsity swimmers at several different universities showed that 66 enjoyed
improved times, compared with only 54 of 100 female varsity swimmers. To test for
equality in the proportions of men versus women who experienced improvement, the
test statistic is approximately:
A. 1.73
B. 1.47
C. 2.31
D. Can't tell without knowing the tail of the test.
Combined proportion is pc = (66 + 54)/(100 + 100) = .60, so zcalc = (.66 - .54)/[.60(1 -

.60)/100 + .60(1 - .60)/100]1/2 = 1.73.
17. Group 1 has a mean of 13.4 and group 2 has a mean of 15.2. Both populations are known
to have a variance of 9.0 and each sample consists of 18 items. What is the test statistic
to test for equality of population means?
A. -1.755
B. -1.643
C. -1.800
D. -1.285
With known variances, zcalc = (13.4 - 15.2)/[9.0/18 + 9.0/18]1/2 = -1.800.
18. Which is not a type of comparison for which you would anticipate a two-sample test?
A. Before versus After.
B. Old versus New.
C. Current versus Target.
D. Experimental versus Control.
The point of comparison is between two samples, not a benchmark or target.
19. The coach of an adult Master's Swim class selected eight swimmers within each of the
two age groups shown below. A 50-yard freestyle time is recorded for each swimmer. The
resulting times (seconds) are shown below. Which statistical test would you choose to
compare the two groups?
A. t-test for independent samples with known variances
B. t-test for independent samples with unknown variances
C. t-test for paired samples
D. z-test for two independent proportions
Despite being arranged side-by-side, there is no link between the columns. The similar
standard deviations suggest that it would be reasonable to "pool" the variances (pun
intended) although this question was not posed.
20. Assuming unequal variances in a t-test for a zero difference of two means, we would:
A. sum the degrees of freedom for each sample.
B. use the larger degrees of freedom for simplicity.
C. use a complicated formula for the degrees of freedom.
D. use a z-test to be conservative in the calculation.
The formula for Welch's adjusted degrees of freedom is not easy without a computer.
Chapter 11 Analysis of Variance Answer Key
1. One-factor ANOVA is a procedure intended to compare the variances of c

samples.
FALSE
ANOVA compares several means (although its test statistic is based on

variances).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 Use basic ANOVA terminology correctly.
Topic: Overview of ANOVA
2. Analysis of variance is a procedure intended to compare the means of c

samples.
TRUE
Although its test statistic is based on variances, ANOVA compares several

means.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
3. If you have four factors (call them A, B, C, and D) in an ANOVA experiment
with replication, you could have a maximum of four different two-factor
interactions.
FALSE
There could be six two-way interactions: AB, AC, AD, BC, BD, CD.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 11-11 Recognize the need for experimental design and GLM (optional).
Topic: Higher-Order ANOVA Models (Optional)
4. Hartley's test measures the equality of the means for several groups.
FALSE
Hartley's test is designed to detect unequal population variances.
AACSB: Analytic
Blooms: Remember
Learning Objective: 11-08 Use Hartley's test for equal variances in c treatment groups.
Topic: Tests for Homogeneity of Variances
5. Hartley's test is to check for unequal variances for c groups.
TRUE
Unequal population variances would violate an ANOVA assumption.
AACSB: Analytic
Blooms: Remember
6. Comparison of c means in one-factor ANOVA can equivalently be done by

using c individual t-tests on c pairs of means at the same α.
FALSE
Multiple two-sample t-tests from the same data set would inflate the
overall α.
AACSB: Analytic
Blooms: Remember
Learning Objective: 11-07 Understand and perform Tukey's test for paired means.
Topic: Multiple Comparisons
7. ANOVA assumes equal variances within each treatment group.
TRUE
ANOVA checks for unequal means, while assuming homogeneous

variances.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-06 Explain the assumptions of ANOVA and why they are important.
8. Three-factor ANOVA is required if we have three treatment groups (i.e.,
three data columns).
FALSE
If there are only three columns of data, we only have one factor (with three
treatments). The hypothesis is whether the three treatment group means
are the same.
AACSB: Analytic
Blooms: Understand
9. ANOVA assumes normal populations.
TRUE
Populations are assumed to be normally distributed and to have equal

variances.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
10. Tukey's test compares pairs of treatment means in an ANOVA.
TRUE
Tukey's test is a follow-up to ANOVA to detect which pairs of means differ

(if any).
AACSB: Analytic
Blooms: Apply
11. Tukey's test is similar to a two-sample t-test except that it pools the
variances for all c samples.
TRUE
There is a strong analogy with the two-sample t-test, except that we pool
all the variances.
AACSB: Analytic
Blooms: Remember
12. Tukey's test is not needed if we have the overall F statistic for the ANOVA.
FALSE
Tukey's test is a follow-up to ANOVA to detect which pairs of means differ

(if any).
AACSB: Analytic
Blooms: Remember
13. Interaction plots that show crossing lines indicate likely interactions.
TRUE
Interaction plots provide an intuitive visual way of seeing possible

interactions.
AACSB: Analytic
Blooms: Remember
Learning Objective: 11-10 Interpret main effects and interaction effects in two-factor ANOVA.
Topic: Two-Factor ANOVA with Replication (Full Factorial Model)
14. Interaction plots that show parallel lines would suggest interaction effects.
FALSE
Interaction plots that show crossing lines indicate likely interactions.
AACSB: Analytic
Blooms: Remember
15. In a two-factor ANOVA with three columns and four rows, there can be
more than two interaction effects.
FALSE
There can only be one interaction (row × column).
AACSB: Analytic
Blooms: Remember
16. Sample sizes must be equal in one-factor ANOVA.
FALSE
Sample sizes often are equal by design, but it is not necessary.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 11-02 Recognize from data format when one-factor ANOVA is appropriate.
Topic: One-Factor ANOVA (Completely Randomized Model)
17. In a 3×4 randomized block (two-factor unreplicated) ANOVA, we have 12

treatment groups.
TRUE
Each row/column combination is a treatment group.
AACSB: Analytic
Blooms: Understand
Topic: Two-Factor ANOVA without Replication (Randomized Block Model)
18. One-factor ANOVA with two groups is equivalent to a two-tailed t-test.
TRUE
The p-values will be the same in either test as long as the t-test is two-
tailed.
AACSB: Analytic
Blooms: Understand
19. One factor ANOVA stacked data for five groups will be arranged in five
separate columns.
FALSE
One column will contain the data, while a second column names the group.
AACSB: Analytic
Blooms: Understand
20. Hartley's test is the largest sample mean divided by the smallest sample
mean.
FALSE
Hartley's test statistic is the ratio of s2max to s2min.
AACSB: Analytic
Blooms: Remember
21. Tukey's test for five groups would require 10 comparisons of means.
TRUE
The number of possible comparisons is c(c - 1)/2 = 5(4)/2 = 10.
AACSB: Analytic
Blooms: Apply
22. ANOVA is robust to violations of the equal-variance assumption as long as

group sizes are equal.
TRUE
Studies suggest that equal group sizes strengthen the ANOVA test.
AACSB: Analytic
Blooms: Remember
23. Levene's test for homogeneity of variance is attractive because it does not
depend on the assumption of normality.
TRUE
While Hartley's test is sensitive to nonnormality, Levene's test statistic is

not.
AACSB: Analytic
Blooms: Remember
24. Tukey's test with seven groups would entail 21 comparisons of means.
TRUE
The number of possible comparisons is c(c - 1)/2 = 7(6)/2 = 21.
AACSB: Analytic
Blooms: Apply
25. Tukey's test pools all the sample variances.
TRUE
In a Tukey test, all c sample variances are combined (weighted by their

degrees of freedom).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
26. It is desirable, but not necessary, that sample sizes be equal in a one-
factor ANOVA.
TRUE
Studies suggest that equal group sizes strengthen the ANOVA test.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

27. Which is the Excel function to find the critical value of F for α = .05, df1 =
3, df2 = 25?
A. =F.DIST(.05, 2,
24)
B. =F.INV.RT(.05, 3,
25)
C. =F.DIST(.05, 3,
25)
D. =F.INV(.05, 2,
24)
The equivalent Excel 2007 function would be =FINV(.05, 3, 25).
AACSB: Technology
Blooms: Apply
Learning Objective: 11-05 Use a table or Excel to find critical values for the F distribution.
28. Which Excel function gives the right-tail p-value for an ANOVA test with a
test statistic Fcalc = 4.52, n = 29 observations, and c = 4 groups?
A. =F.DIST.RT(4.52, 3,
25)
B. =F.INV(4.52, 4,
28)
C. =F.DIST(4.52, 4,
28)
D. =F.INV(4.52, 3,
25)
The equivalent Excel 2007 function would be =FDIST(.05, 3, 25).
AACSB: Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 11-04 Use Excel or other software for ANOVA calculations.
29. Variation "within" the ANOVA treatments represents:
A. random
variation.
B. differences between group
means.
C. differences between group
variances.
D. the effect of sample
size.
Variation within groups is also called error variance or unexplained

variance.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
30. Which is not an assumption of ANOVA?
A. Normality of the treatment

populations.
B. Homogeneous treatment
variances.
C. Independent sample
observations.
D. Equal population sizes for
groups.
It is desirable, but not necessary, that sample sizes be equal in a one-

factor ANOVA.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
31. In an ANOVA, when would the F-test statistic be zero?
A. When there is no difference in the

variances.
B. When the treatment means are the
same.
C. When the observations are normally
distributed.
D. The F-test statistic cannot ever be
zero.
If each group mean equals the overall mean, then Fcalc could be zero (an
unusual situation).
AACSB: Analytic
Blooms: Remember
Learning Objective: 11-03 Interpret sums of squares and calculations in an ANOVA table.
32. ANOVA is used to compare:
A. proportions of several
groups.
B. variances of several
groups.
C. means of several
groups.
D. both means and
variances.

means.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
33. Analysis of variance is a technique used to test for:
A. equality of two or more

variances.
B. equality of two or more
means.
C. equality of a population mean and a given
value.
D. equality of more than two
variances.

means.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
34. Which of the following is not a characteristic of the F distribution?
A. It is always right-
skewed.
B. It describes the ratio of two
variances.
C. It is a family based on two sets of degrees of
freedom.
D. It is negative when s12 is smaller than
s22.
The F distribution is the ratio of two mean squares, so it cannot be

negative.
AACSB: Analytic
Blooms: Remember
Learning Objective: 11-04 Use Excel or other software for ANOVA calculations.
35. In an ANOVA, the SSE (error) sum of squares reflects:
A. the effect of the combined

factor(s).
B. the overall variation in Y that is to be
explained.
C. the variation that is not explained by the
factors.
D. the combined effect of treatments and sample
size.
The error variance or unexplained variance is variation within groups.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
36. To test the null hypothesis H0: μ1 = μ2 = μ3 using samples from normal
populations with unknown but equal variances, we:
A. cannot safely use

ANOVA.
B. can safely employ
ANOVA.
C. would prefer three separate t-
tests.
D. would need three-factor
ANOVA.
As long as the variances are equal, we can safely use ANOVA.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
37. Which is not assumed in ANOVA?
A. Observations are
independent.
B. Populations are normally
distributed.
C. Variances of all treatment groups are the
same.
D. Population variances are
known.
Population variances are almost never known.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
38. In a one-factor ANOVA, the computed value of F will be negative:
A. when there is no difference in the treatment

means.
B. when there is no difference within the
treatments.
C. when the SST (total) is larger than SSE
(error).
D. under no
circumstances.
The F distribution is the ratio of two mean squares, so it cannot be

negative.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
39. Degrees of freedom for the between-group variation in a one-factor ANOVA

with n1 = 5, n2 = 6, n3 = 7 would be:
A. 18.
B. 17.
C. 6.
D. 2.
For between-group variation, we have dfnumerator = c - 1 = 3 - 1 = 2.
AACSB: Analytic
Blooms: Apply
40. Degrees of freedom for the between-group variation in a one-factor ANOVA

with n1 = 8, n2 = 5, n3 = 7, n4 = 9 would be:
A. 28.
B. 3.
C. 29.
D. 4.
For between group variation we have dfnumerator = c - 1 = 4 - 1 = 3.
AACSB: Analytic
Blooms: Apply
41. Using one-factor ANOVA with 30 observations we find at α = .05 that we
cannot reject the null hypothesis of equal means. We increase the sample
size from 30 observations to 60 observations and obtain the same value for
the sample F-test statistic. Which is correct?
A. We might now be able to reject the null

hypothesis.
B. We surely must reject H0 for 60
observations.
C. We cannot reject H0 since we obtained the same F-
value.
D. It is impossible to get the same F-value for n = 60 as for n =
30.
With more degrees of freedom, the critical value F.05 will be smaller, so we
might reject.
AACSB: Analytic
Blooms: Apply
42. One-factor analysis of variance:
A. requires that the number of observations in each group be

identical.
B. has less power when the number of observations per group is not
identical.
C. is extremely sensitive to slight departures from
normality.
D. is a generalization of the t-test for paired
observations.
Studies suggest that equal group sizes strengthen the power of the ANOVA
test.
AACSB: Analytic
Blooms: Apply
43. In a one-factor ANOVA, the total sum of squares is equal to:
A. the sum of squares within groups plus the sum of squares between
groups.
B. the sum of squares within groups times the sum of squares between
groups.
C. the sum of squares within groups divided by the sum of squares
between groups.
D. the means of all the groups
squared.
The basic identify is SSbetween + SSwithin = SStotal.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
44. The within-treatment variation reflects:
A. variation among individuals of the same

group.
B. variation between individuals in different
groups.
C. variation explained by factors included in the ANOVA
model.
D. variation that is not part of the ANOVA
model.
Variation within groups is also called error variance or unexplained

variance.
AACSB: Analytic
Blooms: Understand
45. Given the following ANOVA table (some information is missing), find the F
statistic.
A. 3.71
B. 0.99
C. 0.497
D. 4.02
MStreatment = 744/4 = 186, MSerror = (751.5)/15 = 50.1, so F = 186/50.1 =

3.71.
AACSB: Analytic
Blooms: Apply
46. Given the following ANOVA table (some information is missing), find the
critical value of F.05.
A. 3.06
B. 2.90
C. 2.36
D. 3.41
For df = (4, 15) we use Appendix F to get F.05 = 3.06.
AACSB: Analytic
Blooms: Apply
47. Identify the degrees of freedom for the treatment and error in this one-
factor ANOVA (blanks indicate missing information).
A. 4, 24
B. 3, 20
C. 5, 23
Since SS/df = MS, we know that df = SS/MS. Hence, 993/331 = 3 and

1002/50.1 = 20.
AACSB: Analytic
Blooms: Apply
48. For this one-factor ANOVA (some information is missing), how many
treatment groups were there?
A. Cannot be
determined
B. 3
C. 4
D. 2
Since SS/df = MS, we know that df = SS/MS and, hence, 654/218 = 3 = c

- 1.
AACSB: Analytic
Blooms: Apply
49. For this one-factor ANOVA (some information is missing), what is the F-
test statistic?
A. 0.159
B. 2.833
C. 1.703
D. Cannot be
determined
Fcalc = (MStreatment)/(MSerror) = 218/128 = 1.703.
AACSB: Analytic
Blooms: Apply
50. Refer to the following partial ANOVA results from Excel (some information
is missing).
The F-test statistic is:
A. 2.84.
B. 3.56.
C. 2.80.
D. 2.79.
Fcalc = (MSbetween)/(MSwithin) = (210.2788)/(74.15) = 2.836.
AACSB: Analytic
Blooms: Apply
is missing).
Degrees of freedom for between groups variation are:
A. 3.
B. 4.
C. 5.
D. Can't tell from given
information.
SSbetween = 2113.833 - 1483 = 630.833, so df = (630.833)/(210.2778) = 3.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
SS for between groups variation will be:
A. 129.99.
B. 630.83.
C. 1233.4.
D. Can't
tell.
SSbetween = 2113.833 - 1483 = 630.833.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
is missing).
The number of treatment groups is:
A. 4.
B. 3.
C. 2.
D. 1.
SSbetween = 2113.833 - 1483 = 630.833, so df = (630.833)/(210.2778) = 3 = c

- 1.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
The sample size is:
A. 20.
B. 23.
C. 24.
D. 21.
(630.833)/(210.2778) = 3 and (1483)/(74.15) = 20, so 3 + 20 = 23 = n - 1.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
Assuming equal group sizes, the number of observations in each group is:
A. 2.
B. 3.
C. 4.
D. 6.
(630.833)/(210.2778) = 3 and (1483)/(74.15) = 20, so 3 + 20 = 23 = n - 1

and n/c = 24/4 = 6.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
Degrees of freedom for the F-test are:
A. 5, 22.
B. 4, 21.
C. 3, 20.
D. impossible to
determine.
(630.833)/(210.2778) = 3 and (1483)/(74.15) = 20.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
The critical value of F at α = 0.05 is:
A. 1.645.
B. 2.84.
C. 3.10.
D. 4.28.
(630.833)/(210.2778) = 3 and (1483)/(74.15) = 20, so F.05 = 3.10 for df = (3,

20).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
At α = 0.05, the difference between group means is:
A. highly
significant.
B. barely
significant.
C. not quite
significant.
D. clearly
insignificant.
The p-value is not less than .05 so we cannot reject the hypothesis of
equal means.
AACSB: Analytic
Blooms: Apply
59. The Internal Revenue Service wishes to study the time required to process
tax returns in three regional centers. A random sample of three tax returns
is chosen from each of three centers. The time (in days) required to
process each return is recorded as shown below.
The test to use to compare the means for all three groups would require:
A. three-factor
ANOVA.
B. one-factor
ANOVA.
C. repeated two-sample test of
means.
D. two-factor ANOVA with
replication.
One factor (three group means to be compared).
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
process each return is recorded as shown below. Subsequently, an ANOVA
test was performed.
Degrees of freedom for the error sum of squares in the ANOVA would be:
A. 11.
B. 2.
C. 4.
D. 6.
Error df = n - c = 9 - 3 = 6.
AACSB: Analytic
Blooms: Apply
process each return is recorded as shown below.
Degrees of freedom for the between-groups sum of squares in the ANOVA

would be:
A. 11.
B. 2.
C. 4.
D. 6.
Between groups df = c - 1= 3 - 1 = 2.
AACSB: Analytic
Blooms: Apply
62. Prof. Gristmill sampled exam scores for five randomly chosen students
from each of his two sections of ACC 200. His sample results are shown.
He could test the population means for equality using:
A. a t-test for two means from independent

samples.
B. a t-test for two means from paired (related)
samples.
C. a one-factor
ANOVA.
D. either a one-factor ANOVA or a two-tailed t-
test.
As there are only two groups, either ANOVA or a two-tailed t-test will give
the same p-value.
AACSB: Analytic
Blooms: Apply
63. Systolic blood pressure of randomly selected HMO patients was recorded
on a particular Wednesday, with the results shown here:
The appropriate hypothesis test is:
A. one-factor
ANOVA.
B. two-factor
ANOVA.
C. three-factor
ANOVA.
D. four-factor
ANOVA.
One factor (four group means to be compared).
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
on a particular Wednesday, with the results shown here. An ANOVA test
was performed using these data.
Degrees of freedom for the between-treatments sum of squares would be:
A. 3.
B. 19.
C. 17.
D. depends on
α.
Between-reatments df = c - 1 = 4 - 1 = 3.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
on a particular Wednesday, with the results shown here. An ANOVA test
was performed using these data.
What are the degrees of freedom for the error sum of squares?
A. 3
B. 19
C. 16
D. It depends on
α.
Error df = n - c = 20 - 4 = 16.
AACSB: Analytic
Blooms: Apply
66. Sound levels are measured at random moments under typical driving
conditions for various full-size truck models. The Excel ANOVA results are
shown below.
The test statistic to compare the five means simultaneously is:
A. 2.96.
B. 15.8.
C. 5.56.
D. 4.45.
Fcalc = (154.1)/(34.6) = 4.45.
AACSB: Analytic
Blooms: Apply
67. Sound levels are measured at random moments under typical driving
conditions for various full-size truck models. The ANOVA results are shown
below.
The test statistic for Hartley's test for homogeneity of variance is:
A. 2.25.
B. 5.04.
C. 4.61.
D. 4.45.
Hartley's H = s2max/s2min = (8.944)2/(3.983)2 = 5.04.
AACSB: Analytic
Blooms: Apply
is missing).
ANOVA Table
The number of treatment groups is:
A. 5.
B. 4.
C. 3.
D. impossible to ascertain from
given.
59 - 55 = 4 = c - 1, so c = 5
AACSB: Analytic
Blooms: Apply
is missing).
ANOVA Table
The F statistic is:
A. 2.88.
B. 4.87.
C. 5.93.
D. 6.91.
Fcalc = 11,189/1619 = 6.91.
AACSB: Analytic
Blooms: Apply
is missing).
ANOVA Table
The number of observations in the original sample was:
A. 59.
B. 60.
C. 58.
D. 54.
n - 1 = 59, so n = 60.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
is missing).
ANOVA Table
Using Appendix F, the 5 percent critical value for the F-test is

approximately:
A. 3.24.
B. 6.91.
C. 2.56.
D. 2.06.
Treatment df = 59 - 55 = 4, so F.05 = 2.56 using df = (4, 50) in Appendix F.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
ANOVA Table
The p-value for the F-test would be:
A. much less than

.05.
B. slightly less than
.05.
C. slightly greater than
.05.
D. much greater than
.05.
Fcalc = 11,189/1619 = 6.91 while F.05 = 2.56 using df = (4, 50) in Appendix F.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
The MS (mean square) for the treatments is:
A. 239.13.
B. 106.88.
C. 1,130.8.
D. impossible to ascertain from the information
given.
(717.4)/3 = 239.133.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
is missing).
The F statistic is:
A. 4.87.
B. 3.38.
C. 5.93.
D. 6.91.
Between-groups MS = (717.4)/3 = 239.133, so Fcalc = (239.133)/(70.675) =

3.383.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
The number of observations in the entire sample is:
A. 20.
B. 19.
C. 22.
n - 1 = 19, so n = 20.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
is missing).
The 5 percent critical value for the F test is:
A. 2.46.
B. 3.24.
C. 3.38.
D. impossible to ascertain from the given
information.
Error df = 19 - 3 = 16, so F.05 = 3.24 using df = (3, 16) in Appendix F.
AACSB: Analytic
Blooms: Apply
is missing).
Our decision about the hypothesis of equal treatment means is that the null
hypothesis:
A. cannot be rejected at α =
.05.
B. can be rejected at α =
.05.
C. can be rejected for any typical value of
α.
D. cannot be assessed from the given
information.
The p-value is less than .05, so we conclude unequal population means.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
78. To compare the cost of three shipping methods, a random sample of four
shipments is taken for each of three firms. The cost per shipment is shown
below.
In a one-factor ANOVA, degrees of freedom for the between-groups sum of

squares will be:
A. 11.
B. 3.
C. 2.
D. 9.
Between-groups df = c - 1 = 3 - 1 = 2.
AACSB: Analytic
Blooms: Apply
below.
In a one-factor ANOVA, degrees of freedom for the within-groups sum of

squares will be:
A. 11.
B. 3.
C. 9.
D. 2.
Within-groups df = n - c = 12 - 3 = 9.
AACSB: Analytic
Blooms: Apply
below.
Degrees of freedom for the total sum of squares in a one-factor ANOVA

would be:
A. 11.
B. 8.
C. 2.
D. 9.
Total df = n - 1 = 12 - 1 = 11.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
81. Refer to the following MegaStat output (some information is missing). The
sample size was n = 65 in a one-factor ANOVA.
At α = .05, which is the critical value of the test statistic for a two-tailed
test for a significant difference in means that are to be compared
simultaneously? Note: This question requires a Tukey table.
A. 2.81
B. 2.54
C. 2.33
D. 1.96
T.05 = 2.81 for df = (c, n - c) with c = 5 and n = 65.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Which pairs of days differ significantly? Note: This question requires

access to a Tukey table.
A. (Mon, Thu) and (Mon, Wed)

only.
B. (Mon, Wed)
only.
C. (Mon, Thu)
only.
D. (Mon, Thu) and (Mon, Wed) and (Mon, Fri) and (Mon,
Tue).
Use T.05 = 2.81 for df = (c, n - c) with c = 5 and n = 65.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
At α = .05, what is the critical value of the Tukey test statistic for a two-
tailed test for a significant difference in means that are to be compared
simultaneously? Note: This question requires access to a Tukey table.
A. 2.07
B. 2.80
C. 2.76
D. 1.96
AACSB: Analytic
Blooms: Apply
Which pairs of meds differ at α = .05? Note: This question requires access
to a Tukey table.
A. Med 1, Med
2
B. Med 2, Med
4
C. Med 3, Med
4
D. None of
them.
AACSB: Analytic
Blooms: Apply
85. What is the .05 critical value of Hartley's test statistic for a one-factor
ANOVA with n1 = 5, n2 = 8, n3 = 7, n4 = 8, n5 = 6, n6 = 8? Note: This
question requires access to a Hartley table.
A. 10.8
B. 11.8
C. 13.7
D. 15.0
H.05 = 13.7 for df = (c, (n/c) - 1) where c = 6 and n = 42, so we use df = (6,
6).
AACSB: Analytic
Blooms: Apply
86. What is the .05 critical value of Tukey's test statistic for a one-factor
ANOVA with n1 = 6, n2 = 6, n3 = 6? Note: This question requires access to a
Tukey table.
A. 3.67
B. 2.60
C. 3.58
D. 2.75
AACSB: Analytic
Blooms: Apply
87. What are the degrees of freedom for Hartley's test statistic for a one-factor
ANOVA with n1 = 5, n2 = 8, n3 = 7, n4 = 8, n5 = 6, n6 = 8?
A. 7, 6
B. 6, 6
C. 6, 41
Use df = (c, (n/c) - 1) where c = 6 and n = 42, or df = (6, 6).
AACSB: Analytic
Blooms: Apply
88. What are the degrees of freedom for Tukey's test statistic for a one-factor
ANOVA with n1 = 6, n2 = 6, n3 = 6?
A. 3, 6
B. 6, 3
C. 6, 15
D. 3, 15
Use df = (c, n - c) with c = 3 and n = 18, or df = (3, 15).
AACSB: Analytic
Blooms: Apply
89. After performing a one-factor ANOVA test, John noticed that the sample
standard deviations for his four groups were, respectively, 33, 24, 73, and
35. John should:
A. feel confident in his ANOVA

test.
B. use Hartley's test to check his
assumptions.
C. use an independent samples t-test instead of
ANOVA.
D. use a paired t-test instead of
ANOVA.
The unusually large standard deviation for group 3 suggests unequal

variances.
AACSB: Analytic
Blooms: Apply
A. We need a Tukey test because ANOVA doesn't tell which pairs of means
differ.
B. Hartley's test is needed to determine whether the means of the groups
differ.
C. ANOVA assumes equal variances in the c groups being
compared.
Hartley's test compares variances (not means).
AACSB: Analytic
Blooms: Apply
91. Which is not an assumption of unreplicated two-factor ANOVA (randomized
block)?
A. Normality of the
population
B. Homogeneous
variances
C. Additive treatment
effects
D. There is factor
interaction.
The usual assumptions apply to a two-factor ANOVA (but no interaction

estimate is possible without replication).
AACSB: Analytic
Blooms: Remember
92. Which is correct concerning a two-factor unreplicated (randomized block)
ANOVA?
A. No interaction effect is
estimated.
B. The interaction effect would have its own F
statistic.
C. The interaction would be insignificant unless the main effects were
significant.
We cannot estimate the interaction effect without replication in a two-

factor ANOVA.
AACSB: Analytic
Blooms: Remember
93. In a two-factor unreplicated (randomized block) ANOVA, what is the F
statistic for the treatment effect given that SSA (treatments) = 216, SSB
(block) = 126, SSE (error) = 18?
A. 12
B. 1.71
C. 7
D. Can't tell without more
information
We cannot calculate the mean squares without knowing r, c, and n, so no F

statistics.
AACSB: Analytic
Blooms: Apply
94. Three bottles of wine are tasted by three experts. Each rater assigns a
rating (scale is from 1 = terrible to 10 = superb). Which test would you use
for the most obvious hypothesis?
A. t-test for independent

means
B. One-factor
ANOVA
C. Two-factor ANOVA without
replication
D. Two-factor ANOVA with
replication
Only one observation per row/column cell (two factors but no replication).
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 11-09 Recognize from data format when two-factor ANOVA is needed.
95. To compare the cost of three shipping methods, a firm ships material to
each of four different destinations over a six-month period. The average
cost per shipment is shown below.
Which test would be appropriate?
A. Independent samples t-
test
B. Two-factor ANOVA with
replication
C. Dependent (paired-samples) t-
test
D. Two-factor ANOVA without
replication
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
96. To compare the cost of three shipping methods, a firm ships material to
each of four different destinations over a six-month period. The average
cost per shipment is shown below.
For the appropriate type of ANOVA, total degrees of freedom would be:
A. 11.
B. 3.
C. 4.
D. 12.
df = n - 1 = 12 - 1 = 11.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
97. Here is an Excel ANOVA table that summarizes the results of an
experiment to assess the effects of ambient noise level and plant location
on worker productivity. The test used α = 0.05.
Is the effect of plant location significant at α = .05?
A. Yes
B. N
o
say
The p-value is not less than .05, so plant location has no significant effect.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Is the effect of noise level significant at α = .01?
A. Yes
B. N
o
say
The p-value is much less than .05, so noise level has a significant effect.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
The experimental design and ANOVA appear to be:
A. replicated two
factor.
B. unreplicated two-
factor.
C. impossible to
determine.
The absence of an interaction suggests an unreplicated two-factor model.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
The sample size is:
A. 15.
B. 10.
C. 16.
D. impossible to
determine.
For unreplicated two-factor ANOVA, total df = 3 + 3 + 9 = 15 = n - 1, so n

= 16.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
101. At the Seymour Clinic, the number of patients seen by three doctors over
three days is as follows:
This data set would call for:
A. two-factor ANOVA without

replication.
B. two-factor ANOVA with
replication.
C. three-factor
ANOVA.
D. five-factor
ANOVA.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
102. At the Seymour Clinic, the number of patients seen by three doctors over
three days is as follows:
Degrees of freedom for the error sum of squares would be:
A. 6.
B. 14.
C. 8.
D. 15.
For unreplicated two-factor ANOVA, the error df = (r - 1)(c - 1) = (5 - 1)(3 -

1) = 8.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
103. Here is an Excel ANOVA table for an experiment that analyzed factors that
may affect patients' blood pressure (some information is missing).
The number of medication types is:
A. 1.
B. 2.
C. 3.
D. 4.
df = 1 = (number of medications - 1), so there were 2 medications.
AACSB: Analytic
Blooms: Apply
104. Here is an Excel ANOVA table for an experiment that analyzed two factors
that may affect patients' blood pressure (some information is missing).
The number of patient age groups is:
A. 1.
B. 2.
C. 3.
D. 4.
For patient age group, df = (25.0938)/(8.3646) = 3 = c - 1 (so 4 age

groups).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
The number of patients per replication is:
A. 1.
B. 2.
C. 3.
D. 4.
c - 1 = (25.0938)/(8.3646) = 3 (so 4 age groups), r - 1 = 1 (so 2 meds),

total df = 1 + 3 + 3 + 24 = 31 = n - 1 (so n = 32), 8 treatments (3 × 4) and
thus 32/8 = 4 replications per treatment.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
The overall sample size is:
A. 7.
B. 25.
C. 32.
D. impossible to determine as
given.
c - 1 = (25.0938)/(8.3646) = 3 (so 4 age groups), r - 1 = 1 (so 2 meds),

total df = 1 + 3 + 3 + 24 = 31 = n - 1 (so n = 32).
AACSB: Analytic
Blooms: Apply
At α = .05 the effect of medication type is:
A. significan
t.
B. insignifican
t.
C. borderline
.
The p-value is much less than .05, so medication type has a highly
significant effect.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
At α = .01 the effect of patient age is:
A. very clearly
significant.
B. just barely
significant.
C. not quite
significant.
The p-value of .011 is greater than .01, so age group does not have a
significant effect at α = .01 (however, it is a very close decision).
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
At α = .10 the interaction is:
A. significan
t.
B. insignifican
t.
C. borderline
.
The p-value is much greater than .05 so there is no significant interaction.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
110. Three randomly chosen pieces of four types of PVC pipe of equal wall
thickness are tested to determine the burst strength (in pounds per square
inch) under three temperature conditions, yielding the results shown below.
Which test would be appropriate?
A. One-factor
ANOVA
replication
C. Dependent (paired-samples) t-
test
D. Two-factor ANOVA with no
replication
Within each treatment combination we have three replications.
AACSB: Analytic
Blooms: Apply
111. Three randomly chosen pieces of four types of PVC pipe of equal wall
thickness are tested to determine the burst strength (in pounds per square
inch) under three temperature conditions, yielding the results shown below.
Total degrees of freedom for the ANOVA would be"
A. 19.
B. 12.
C. 35.
D. 59.
Total df = n - 1 = 36 - 1 = 35.
AACSB: Analytic
Blooms: Apply
112. A firm is studying the effect of work shift and parts supplier on its defect
rate (dependent variable is defects per 1000). The resulting ANOVA results
are shown below (some information is missing).
How many suppliers were there?
A. 1
B. 2
C. 3
D. 4
44 - 36 - 4 - 2 = 2 = c - 1, so there were 3 suppliers.
AACSB: Analytic
Blooms: Apply
How many replications per cell were there?
A. 2
B. 3
C. 4
D. 5
n - 1 = 44 (n = 45), 44 - 36 - 4 - 2 = 2 = c - 1 (3 suppliers), r - 1 = 2 (3
shifts), so 3 × 3 = 9 row/column cells and hence 45/9 = 5 replications per
treatment combination.
AACSB: Analytic
Blooms: Apply
At α = 0.01, the effect of supplier is:
A. clearly
significant.
B. just barely
significant.
C. almost but not quite
significant.
D. clearly
insignificant.
The p-value is much greater than .05, so supplier has no significant effect.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
The number of observations was:
A. 37.
B. 45.
C. 44.
D. 40.
n - 1 = 44 (n = 45).
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
At α = 0.01, the interaction effect is:
A. strongly
significant.
B. just barely
significant.
C. not quite
significant.
The p-value is much less than .05, so there is a significant interaction

effect.
AACSB: Analytic
Blooms: Apply
117. A firm is concerned with variability in hourly output at several factories and
shifts. Here are the results of an ANOVA using output per hour as the
dependent variable (some information is missing).
The original data matrix has how many treatments (rows × columns)?
A. 4
B. 6
C. 3
D. 8
r - 1 = 1 (2 factories), c - 1 = 2 (3 shifts), so 2 × 3 = 6 row/column cells.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
The number of observations in each treatment cell (row-column

intersection) is:
A. 1.
B. 2.
C. 3.
D. impossible to
determine.
n - 1 = 17 (n = 18), r - 1 = 1 (2 factories), c - 1 = 2 (3 shifts), so 2 × 3 = 6

row/column cells and hence 18/6 = 3 replications per treatment
combination.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
At α = 0.01 the effect of factory is:
A. clearly
significant.
B. clearly
insignificant.
C. of borderline
significance.
The p-value is much less than .05, so factory has a significant effect.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
The p-value for the interaction effect is going to be:
A. very small (near

0).
B. very large (near
1).
C. impossible to know—could be either large or
small.
For interaction, Fcalc = (40454.167)/(719.444) = 56.23, so very small p-

value.
AACSB: Analytic
Blooms: Apply
121. Sound engineers studied factors that might affect the output (in decibels)
of a rock concert speaker system. The results of their ANOVA tests are
shown (some information is missing).
Which is the number of amplifiers and positions tested?
A. 1, 3
B. 2, 4
C. 3, 5
D. 4, 1
r - 1 = 1 (2 amplifiers), c - 1 = 3 (4 positions).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
The number of observations per cell was:
A. 1.
B. 2.
C. 3.
D. 4.
n - 1 = 23 (n = 24), r - 1 = 1 (2 amplifiers), c - 1 = 3 (4 positions), so 2 × 4

= 8 row/column cells and hence 24/8 = 3 replications per treatment
combination.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
of a rock concert speaker system. The desired level of significance was α
= .05. The results of their ANOVA tests are shown (some information is
missing).
The most reasonable conclusion at α = .05 about the three sources of

variation (amplifier, position, and interaction) would be that their effects
are:
A. significant, significant,
insignificant.
B. insignificant, significant,
significant.
C. very significant, almost significant,
insignificant.
The p-value is smaller than .05 for amplifier, but not quite for position and
definitely not for the interaction term.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
124. Sound engineers studied factors that might affect the output, in decibels,
The F statistic for amplifier was:
A. 9.90.
B. 10.16.
C. 5.72.
D. 4.27.
Fcalc = (99.02344)/(9.742188) = 10.16.
AACSB: Analytic
Blooms: Apply
125. A multinational firm manufactures several types of 1280 × 1024 LCD
displays in several locations. They designed a sampling experiment to
analyze the number of pixels per screen that have significant color
degradation after 52,560 hours (six years of continuous use) using
accelerated life testing. The Excel ANOVA table for their experiment is
shown below. Some table entries have been obscured. The response
variable (Y) is the number of degraded pixels in a given display.
Degrees freedom for display type will be:
A. 1.
B. 4.
C. 3.
D. 5.
For display type, df = (233.2333)/(58.30833) = 4.
AACSB: Analytic
Blooms: Apply
How many display types were there?
A. 1
B. 2
C. 3
D. 5
For display type, df = (233.2333)/(58.30833) = 4 = c - 1 (so 5 display

types).
AACSB: Analytic
Blooms: Apply
How many countries were studied?
A. 1
B. 2
C. 3
D. 4
For country, df = (202.9)/(101.45) = 2 = r - 1 (so 3 countries).
AACSB: Analytic
Blooms: Apply
The F statistic for display effect is:
A. 1.78.
B. 3.16.
C. 2.39.
D. 2.94.
Fcalc = (58.30833)/(24.36667) = 2.393.
AACSB: Analytic
Blooms: Apply
At α = .05, the interaction effect is:
A. clearly
significant.
B. just barely
significant.
C. not quite
significant.
D. clearly
insignificant.
Fcalc = (18.47084)/(24.36667) = 0.76, which is far less than F.05 for df = (8,
45).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
The numerator degrees of freedom for the interaction test would be:
A. 2.
B. 4.
C. 8.
D. 16.
For interaction, df = (147.7667)/(18.47084) = 8.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
131. A veterinarian notes the age (months) at which dogs are brought to the
clinic to be neutered.
What kind of test would be used?
A. One-factor
ANOVA
replication
C. Two-factor ANOVA without
replication
D. Three-factor ANOVA with
replication.
There are three replications and two factors.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
132. A veterinarian notes the age (months) at which dogs are brought in to the
Numerator degrees of freedom for the ANOVA interaction test would be:
A. 2.
B. 3.
C. 6.
D. can't
tell.
Two factor ANOVA with replication, interaction df = (r - 1)(c - 1) = (2 - 1)(3

- 1) = 2.
AACSB: Analytic
Blooms: Apply
133. A veterinarian notes the age (months) at which dogs are brought in to the
Total degrees of freedom for a two-factor replicated ANOVA would be:
A. 6.
B. 14.
C. 17.
D. 11.
n - 1 = 18 - 1 = 17.
AACSB: Analytic
Blooms: Apply
is missing).
How many nozzle settings were observed?
A. 3
B. 2
C. 1
D. Can't
tell.
For nozzle, df = 1 = r - 1 (so 2 nozzles).
AACSB: Analytic
Blooms: Apply
is missing).
Degrees of freedom for pressure level would be:
A. 2.
B. 3.
C. 4.
D. 6.
For pressure, df = (8.07444)/(4.03722) = 2 = c - 1 (so 3 pressures).
AACSB: Analytic
Blooms: Apply
is missing).
Error degrees of freedom would be:
A. 24.
B. 15.
C. 12.
D. 13.
For error, df = (8.5400)/(0.711667) = 12.
AACSB: Analytic
Blooms: Apply
is missing).
The overall sample size was:
A. 24.
B. 23.
C. 22.
D. 18.
Divide each SS by its MS to get 1 + 2 + 2 + 12 = 17 = n - 1 (so n = 18).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
How many pressure levels were observed?
A. 4
B. 3
C. 2
D. 1
For pressure, df = (8.07444)/(4.03722) = 2 = c - 1 (so 3 pressures).
AACSB: Analytic
Blooms: Apply
is missing).
At α = .05, the critical F value for nozzle setting is:
A. 4.71.
B. 4.75.
C. 3.68.
D. 3.02.
Using Appendix F with df = (1, 12), we get F.05 = 4.75.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
The form of the original data matrix is:
A. 3 × 1
table.
B. 1 × 2
table.
C. 4 × 3
table.
D. 2 × 3
table.
Divide each SS by its MS to get (r - 1) = 1, (c - 1) = 2, so r × c = 2 × 3 = 6

treatments.
AACSB: Analytic
Blooms: Apply
is missing).
The number of replications per treatment was:
A. 4.
B. 3.
C. 2.
D. 1.
Divide each SS by its MS to get total df = 1 + 2 + 2 + 12 = 17 = n - 1, so n

= 18 and r × c = 2 × 3 = 6 treatments, giving three replications per
treatment.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
is missing).
At α = 0.05, the effect of nozzle setting is:
A. highly
significant.
B. just barely
significant.
C. not quite
significant.
D. clearly
insignificant.
Its p-value is slightly less than .05, so the nozzle effect is barely significant.
AACSB: Analytic
Blooms: Evaluate
143. As shown below, a hospital recorded the number of minutes spent in post-
op recovery by three randomly chosen knee-surgery patients in each
category, based on age and type of surgery. Which is the most appropriate
test?
A. One-factor
ANOVA
B. Two-factor ANOVA without
replication
C. Two-factor ANOVA with
replication
D. Rimsky-Korsakov
test
Three replications per cell with two factors.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
is missing). The response variable was Y = maximum amount of water
pumped from wells (gallons per minute).
The degrees of freedom for age of well is:
A. 2.
B. 3.
C. 4.
D. 5.
For age of well, df = 26 - 18 - 4 - 2 = 2 (so 3 ages).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
The F statistic for depth of well is:
A. 25.23.
B. 25.78.
C. 25.31.
D. 25.06.
Fcalc = (1225)/(47.519) = 25.779.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
The MS for interaction is:
A. 7.25.
B. 8.17.
C. 8.37.
D. 9.28.
For interaction, we have MS = (32.667)/4 = 8.167.
AACSB: Analytic
Blooms: Apply
The MS for age of well is:
A. 185.23.
B. 179.26.
C. 180.25.
D. 182.33.
By subtraction, for age of well df = 26 - 18 - 4 - 2 = 2. so MS =

(364.667)/(2) = 182.334.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

148. The table below shows raw data on air pollutant levels (micrograms of
particulate per liter of air) sampled at four different randomly chosen times
of day on three different freeways. State the most reasonable hypotheses.
What test would a statistician probably use? How many total degrees of
freedom? How many degrees of freedom for the treatment(s)? How many
error degrees of freedom? Explain. Do not do the F-test.
One-factor ANOVA using three groups (2 d.f.). Total degrees of freedom

would be 11 (n - 1). Error d.f. = n - c = 12 - 3 = 9.
Feedback: The data are arranged in rows rather than in columns, but it is
still three groups of independent observations (no second factor), so we
use a one-factor ANOVA with three groups (2 d.f.). Total degrees of
freedom would be 11 (n - 1). Error d.f. = n - c = 12 - 3 = 9. The cell borders
make it look a bit like a two-factor ANOVA, but there is no second (column)
factor.

Blooms: Evaluate
149. The table below shows six random observations on the number of airline
tickets booked on Orbitz per hour in the five months bracketing the summer
travel season. State the most reasonable hypotheses. What test would a
statistician probably use? How many total degrees of freedom? How many
degrees of freedom for the treatment(s)? How many error degrees of
freedom? Explain. Do not do the F-test.
One-factor ANOVA using 5 groups (4 d.f.). Total degrees of freedom would

be 29 (n - 1). Error d.f. = n - c = 30 - 5 = 25.
Feedback: We have five columns of independent observations, so we want

a one-factor ANOVA using five groups (4 d.f.). Total degrees of freedom
would be 29 (n - 1). Error d.f. = n - c = 30 - 5 = 25.

Blooms: Evaluate
150. What is GLM, and why do we need it?
If there are more than two factors, a more complex ANOVA is required.
Excel does not handle such calculations, so we use a package such as
SPSS, SyStat, or Minitab. Unbalanced designs and various types of
interactions may be handled in GLM.
Feedback: When we have more than two factors, a more complex ANOVA is
required. Excel does not handle such calculations, so we turn to a more
powerful statistical package such as Systat, SPSS, SAS, or Minitab. Also,
unbalanced designs and various types of interactions may be handled in
GLM.

Blooms: Evaluate
Chapter 12 Simple Regression Answer Key
1. A scatter plot is used to visualize the association (or lack of association)

between two quantitative variables.
TRUE
The scatter plot shows association between two quantitative variables.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 12-01 Calculate and test a correlation coefficient for significance.
Topic: Visual Displays and Correlation Analysis
2. The correlation coefficient r measures the strength of the linear

relationship between two variables.
TRUE
A correlation coefficient measures linearity between two variables.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
3. Pearson's correlation coefficient (r) requires that both variables be interval
or ratio data.
TRUE
Correlation assumes quantitative data with at least interval measurements.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
4. If r = .55 and n = 16, then the correlation is significant at α = .05 in a two-

tailed test.
TRUE
tcalc = r[(n - 2)/(1 - r2)]1/2 = (.55)[(16 - 2)/(1 - .552)]1/2 = 2.464 > t.025 = 2.145
for d.f. = 16 - 2 = 14.
AACSB: Analytic
Blooms: Apply
5. A sample correlation r = .40 indicates a stronger linear relationship than r =
-.60.
FALSE
The sign only indicates the direction, not the strength, of the linear
relationship.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
6. A common source of spurious correlation between X and Y is when a third

unspecified variable Z affects both X and Y.
TRUE
Both X and Y could be influenced by Z.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
7. The correlation coefficient r always has the same sign as b1 in Y = b0 +
b1X.
TRUE
The t-test for the slope in simple regression gives the same result as the t-
test for r.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 12-04 Fit a simple regression on an Excel scatter plot.
Topic: Regression Terminology
8. The fitted intercept in a regression has little meaning if no data values near
X = 0 have been observed.
TRUE
Predicting Y for X = 0 makes little sense if the observed data have no

values near X = 0.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 12-02 Interpret the slope and intercept of a regression equation.
Topic: Simple Regression
9. The least squares regression line is obtained when the sum of the squared
residuals is minimized.
TRUE
The OLS method minimizes the sum of squared residuals.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Ordinary Least Squares Formulas
10. In a simple regression, if the coefficient for X is positive and significantly

different from zero, then an increase in X is associated with an increase in
the mean (i.e., the expected value) of Y.
TRUE
The conditional mean of Y depends on X (unless the slope is effectively

zero).
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
11. In least-squares regression, the residuals e1, e2, . . . , en will always have a
zero mean.
TRUE
The residuals must sum to zero if the OLS method is used, so their mean is
zero.
AACSB: Analytic
Blooms: Remember
12. When using the least squares method, the column of residuals always
sums to zero.
TRUE
The residuals must sum to zero if the OLS method is used.
AACSB: Analytic
Blooms: Remember
13. In the model Sales = 268 + 7.37 Ads, an additional $1 spent on ads will
increase sales by 7.37 percent.
FALSE
The slope coefficient is in the same units as Y (dollars, not percent, in this
case).
AACSB: Analytic
Blooms: Apply
14. If R2 = .36 in the model Sales = 268 + 7.37 Ads with n = 50, the two-tailed
test for correlation at α = .05 would say that there is a significant
correlation between Sales and Ads.
TRUE
tcalc = r[(n - 2)/(1 - r2)]1/2 = (.60)[(50 - 2)/(1 - .36)]1/2 = 5.196 > t.025 = 2.011
for d.f. = 50 - 2 = 48.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
15. If R2 = .36 in the model Sales = 268 + 7.37 Ads, then Ads explains 36
percent of the variation in Sales.
TRUE
We can interpret R2 as the fraction of variation in Y explained by X

(expressed as a percent).
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 12-08 Interpret the standard error; R2; ANOVA table; and F test.
16. The ordinary least squares regression line always passes through the
point .
TRUE
The OLS formulas require the line to pass through this point.
AACSB: Analytic
Blooms: Remember
17. The least squares regression line gives unbiased estimates of β0 and β1.
TRUE
The expected values of the OLS estimators b0 and b1 are the true
parameters β0 and β1.
AACSB: Analytic
Blooms: Remember
18. In a simple regression, the correlation coefficient r is the square root of R2.
TRUE
In fact, we could use the notation r2 instead of R2 when talking about

simple regression.
AACSB: Analytic
Blooms: Remember
19. If SSR is 1800 and SSE is 200, then R2 is .90.
TRUE
R2 = SSR/SST = SSR/(SSR + SSE) = 1800/(1800 + 200) = .90.
AACSB: Analytic
Blooms: Apply
Topic: Tests for Significance
20. The width of a prediction interval for an individual value of Y is less than
standard error se.
FALSE
The formula for the interval width multiplies the standard error by an
expression > 1.
AACSB: Analytic
Blooms: Understand
Learning Objective: 12-09 Distinguish between confidence and prediction intervals for Y.
Topic: Confidence and Prediction Intervals for Y
21. If SSE is near zero in a regression, the statistician will conclude that the
proposed model probably has too poor a fit to be useful.
FALSE
SSE is the sum of the square residuals, which would be smaller if the fit is
good.
AACSB: Analytic
Blooms: Apply
22. For a regression with 200 observations, we expect that about 10 residuals
will exceed two standard errors.
TRUE
If the residuals are normal, 95.44 percent (190 of 200) will lie within ±2 se
(so 10 outside).
AACSB: Analytic
Blooms: Apply
Learning Objective: 12-11 Identify unusual residuals and high-leverage observations.
Topic: Unusual Observations
23. Confidence intervals for predicted Y are less precise when the residuals are
very small.
FALSE
Small residuals imply a small standard error and thus a narrower prediction
interval.
AACSB: Analytic
Blooms: Understand
24. Cause-and-effect direction between X and Y may be determined by
running the regression twice and seeing whether Y = β0 + β1X or X = β1
+ β0Y has the larger R2.
FALSE
Cause and effect cannot be determined in the context of simple regression

models.
AACSB: Analytic
Blooms: Understand
25. The ordinary least squares method of estimation minimizes the estimated
slope and intercept.
FALSE
OLS minimizes the sum of squared residuals.
AACSB: Analytic
Blooms: Remember
26. Using the ordinary least squares method ensures that the residuals will be
normally distributed.
FALSE
OLS produces unbiased estimates but cannot ensure normality of the

residuals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 12-10 Test residuals for violations of regression assumptions.
Topic: Residual Tests
27. If you have a strong outlier in the residuals, it may represent a different
causal system.
TRUE
Outliers might come from a different population or causal system.
AACSB: Analytic
Blooms: Understand
Topic: Other Regression Problems (Optional)
28. A negative correlation between two variables X and Y usually yields a

negative p-value for r.
FALSE
The p-value cannot be negative.
AACSB: Analytic
Blooms: Understand
Learning Objective: 12-06 Test hypotheses about the slope and intercept by using t tests.
29. In linear regression between two variables, a significant relationship exists

when the p-value of the t test statistic for the slope is greater than α.
FALSE
Reject β1 = 0 if the p-value is less than α.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
30. The larger the absolute value of the t statistic of the slope in a simple
linear regression, the stronger the linear relationship exists between X and
Y.
TRUE
The correlation coefficient measures linearity, regardless of its sign (+ or -

).
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
31. In simple linear regression, the coefficient of determination (R2) is
estimated from sums of squares in the ANOVA table.
TRUE
R2 = SSR/SST or R2 = 1 - SSE/SST.
AACSB: Analytic
Blooms: Remember
32. In simple linear regression, the p-value of the slope will always equal the p-
value of the F statistic.
TRUE
This is true only if there is one predictor (but is no longer true in multiple
regression).
AACSB: Analytic
Blooms: Remember
Topic: Analysis of Variance: Overall Fit
33. An observation with high leverage will have a large residual (usually an
outlier).
FALSE
The concepts are distinct (a high-leverage point could have a good fit).
AACSB: Analytic
Blooms: Understand
34. A prediction interval for Y is narrower than the corresponding confidence

interval for the mean of Y.
FALSE
Predicting an individual case requires a wider confidence interval than

predicting the mean.
AACSB: Analytic
Blooms: Remember
35. When X is farther from its mean, the prediction interval and confidence
interval for Y become wider.
TRUE
The width increases when X differs from its mean (review the formula).
AACSB: Analytic
Blooms: Understand
36. The total sum of squares (SST) will never exceed the regression sum of
squares (SSR).
FALSE
The identity is SSR + SSE = SST.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
37. "High leverage" would refer to a data point that is poorly predicted by the
model (large residual).
FALSE
A high-leverage observation may have a good fit (only its X value

determines its leverage).
AACSB: Analytic
Blooms: Remember
38. The studentized residuals permit us to detect cases where the regression
predicts poorly.
TRUE
Studentized residuals resemble a t-distribution. A large studentized t-value

(e.g., t < -2.00 or t > + 2.00) would implies a poor fit.
AACSB: Analytic
Blooms: Understand
39. A poor prediction (large residual) indicates an observation with high

leverage.
FALSE
High leverage indicates an unusually large or small X value (not a poor

prediction). A high-leverage observation may have a good fit or a poor fit.
Only its X value determines its leverage.
AACSB: Analytic
Blooms: Understand
40. Ill-conditioned refers to a variable whose units are too large or too small
(e.g., $2,434,567).
TRUE
In Excel, a symptom of poor data conditioning is exponential notation (e.g.,

4.3E + 06).
AACSB: Analytic
Blooms: Remember
Learning Objective: 12-07 Perform regression analysis with Excel or other software.
41. A simple decimal transformation (e.g., from 18,291 to 18.291) often

improves data conditioning.
TRUE
Keeping data magnitudes similar helps avoid exponential notation (e.g.,

4.3E + 06).
AACSB: Analytic
Blooms: Understand
42. Two-tailed t-tests are often used because any predictor that differs
significantly from zero in a two-tailed test will also be significantly greater
than zero or less than zero in a one-tailed test at the same α.
TRUE
True because the critical t is larger in the two-tailed test (the default in
most software).
AACSB: Analytic
Blooms: Apply
43. A predictor that is significant in a one-tailed t-test will also be significant in

a two-tailed test at the same level of significance α.
FALSE
False because the critical t would be larger in a two-tailed test.
AACSB: Analytic
Blooms: Remember
44. Omission of a relevant predictor is a common source of model
misspecification.
TRUE
In a multivariate world, simple regression may be inadequate.
AACSB: Analytic
Blooms: Remember
45. The regression line must pass through the origin.
FALSE
The OLS intercept estimate does not, in general, equal zero. We might be
unable to reject a zero intercept if a t-test, but the fitted intercept is rarely
zero.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
46. Outliers can be detected by examining the standardized residuals.
TRUE
A poor fit implies a large t-value (e.g., larger than ±3 would be an outlier).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
47. In a simple regression, there are n - 2 degrees of freedom associated with

the error sum of squares (SSE).
TRUE
This is true in simple regression because we estimate two parameters (β0

and β1).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
48. In a simple regression, the F statistic is calculated by taking the ratio of

MSR to the MSE.
TRUE
By definition, Fcalc = MSR/MSE (obtained from the ANOVA table).
AACSB: Analytic
Blooms: Understand
49. The coefficient of determination is the percentage of the total variation in
the response variable Y that is explained by the predictor X.
TRUE
R2 = SSR/SST or R2 = 1 - SSE/SST lies between 0 and 1 and often is

expressed as a percent.
AACSB: Analytic
Blooms: Understand
50. A different confidence interval exists for the mean value of Y for each
different value of X.
TRUE
Both the interval width and also E(Y|X) =β0 + β1 X depend on the value of
X.
AACSB: Analytic
Blooms: Remember
51. A prediction interval for Y is widest when X is near its mean.
FALSE
The prediction interval is narrowest when X is near its mean. Review the
formula, which has a term (xi - )2 in the numerator. The minimum would
be when xi = .
AACSB: Analytic
Blooms: Remember
52. In a two-tailed test for correlation at α = .05, a sample correlation

coefficient r = 0.42 with n = 25 is significantly different than zero.
TRUE
tcalc = r[(n - 2)/(1 - r2)]1/2 = (.42)[(25 - 2)/(1 - .422)]1/2 = 2.219 > t.025 = 2.069
for d.f. = 25 - 2 = 23.
AACSB: Analytic
Blooms: Apply
53. In correlation analysis, neither X nor Y is designated as the independent
variable.
TRUE
In correlation analysis, X and Y covary without designating either as

"independent."
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
54. A negative value for the correlation coefficient (r) implies a negative value
for the slope (b1).
TRUE
The sign of r must be the same as the sign of the slope estimate b1.
AACSB: Analytic
Blooms: Remember
55. High leverage for an observation indicates that X is far from its mean.
TRUE
By definition, observations have higher leverage when X is far from its

mean.
AACSB: Analytic
Blooms: Remember
56. Autocorrelated errors are not usually a concern for regression models using
cross-sectional data.
TRUE
We more often expect autocorrelated residuals in time series data.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
57. There are usually several possible regression lines that will minimize the
sum of squared errors.
FALSE
The OLS solution for the estimators b0 and b1 is unique.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
58. When the errors in a regression model are not independent, the regression
model is said to have autocorrelation.
TRUE
For example, in first-order autocorrelation εt depends on εt-1.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
59. In a simple bivariate regression, Fcalc = tcalc2.
TRUE
This statement is true only in a simple regression (one predictor).
AACSB: Analytic
Blooms: Remember
60. Correlation analysis primarily measures the degree of the linear

relationship between X and Y.
TRUE
The sign of r indicates the direction and its magnitude indicates the degree
of linearity.
AACSB: Analytic
Blooms: Remember
61. The variable used to predict another variable is called the:
A. response
variable.
B. regression
variable.
C. independent
variable.
D. dependent
variable.
We might also call the independent variable a predictor of Y.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
62. The standard error of the regression:
A. is based on squared deviations from the regression

line.
B. may assume negative values if b1 <
0.
C. is in squared units of the dependent
variable.
D. may be cut in half to get an approximate 95 percent prediction
interval.
In a simple regression, the standard error is the square root of the sum of
the squared residuals divided by (n - 2).
AACSB: Analytic
Blooms: Apply
63. A local trucking company fitted a regression to relate the travel time (days)
of its shipments as a function of the distance traveled (miles). The fitted
regression is Time = -7.126 + 0.0214 Distance, based on a sample of 20
shipments. The estimated standard error of the slope is 0.0053. Find the
value of tcalc to test for zero slope.
A. 2.46
B. 5.02
C. 4.04
D. 3.15
tcalc = = (0.0214)/(0.0053) = 4.038.
AACSB: Analytic
Blooms: Apply
regression is Time = -7.126 + .0214 Distance, based on a sample of 20
shipments. The estimated standard error of the slope is 0.0053. Find the
critical value for a right-tailed test to see if the slope is positive, using α =
.05.
A. 2.101
B. 2.552
C. 1.960
D. 1.734
For d.f. = n - 2 = 20 - 2 = 18, Appendix D gives t.05 = 1.734.
AACSB: Analytic
Blooms: Apply
65. If the attendance at a baseball game is to be predicted by the equation
Attendance = 16,500 - 75 Temperature, what would be the predicted
attendance if Temperature is 90 degrees?
A. 6,750
B. 9,750
C. 12,250
D. 10, 020
The predicted Attendance is 16,500 - 75(90) = 9,750.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
66. A hypothesis test is conducted at the 5 percent level of significance to test
whether the population correlation is zero. If the sample consists of 25
observations and the correlation coefficient is 0.60, then the computed test
statistic would be:
A. 2.071.
B. 1.960.
C. 3.597.
D. 1.645.
tcalc = r[(n - 2)/(1 - r2)]1/2 = (.60)[(25 - 2)/(1 - .602)]1/2 = 3.597.

Comment: Requires formula handout or memorizing the formula.
AACSB: Analytic
Blooms: Apply
67. Which of the following is not a characteristic of the F-test in a simple
regression?
A. It is a test for overall fit of the

model.
B. The test statistic can never be
negative.
C. It requires a table with numerator and denominator degrees of
freedom.
D. The F-test gives a different p-value than the t-
test.
Fcalc is the ratio of two variances (mean squares) that measures overall fit.
The test statistic cannot be negative because the variances are non-
negative. In a simple regression, the F-test always agrees with the t-test.
AACSB: Analytic
Blooms: Remember
68. A researcher's Excel results are shown below using Femlab (labor force
participation rate among females) to try to predict Cancer (death rate per
100,000 population due to cancer) in the 50 U.S. states.
Which of the following statements is not true?
A. The standard error is too high for this model to be of any predictive
use.
B. The 95 percent confidence interval for the coefficient of Femlab is -4.29
to -0.28.
C. Significant correlation exists between Femlab and Cancer at α =
.05.
D. The two-tailed p-value for Femlab will be less than
.05.
The magnitude of se depends on Y (and, in this case, the tcalc indicates

significance).
AACSB: Analytic
Blooms: Apply
69. A researcher's results are shown below using Femlab (labor force
Which statement is valid regarding the relationship between Femlab and

Cancer?
A. A rise in female labor participation rate will cause the cancer rate to
decrease within a state.
B. This model explains about 10 percent of the variation in state cancer
rates.
C. At the .05 level of significance, there isn't enough evidence to say the
two variables are related.
D. If your sister starts working, the cancer rate in your state will
decline.
It is customary to express the R2 as a percent (here, the tcalc indicates

significance).
AACSB: Analytic
Blooms: Apply
70. A researcher's results are shown below using Femlab (labor force
What is the R2 for this regression?
A. .9018
B. .0982
C. .8395
D. .1605
R2 = SSR/SST = (5,377.836)/(54,745.225) = .0982.
AACSB: Analytic
Blooms: Apply
71. A news network stated that a study had found a positive correlation
between the number of children a worker has and his or her earnings last
year. You may conclude that:
A. people should have more children so they can get better

jobs.
B. the data are erroneous because the correlation should be
negative.
C. causation is in serious
doubt.
D. statisticians have small
families.
There is no a priori basis for expecting causation.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
72. William used a sample of 68 large U.S. cities to estimate the relationship
between Crime (annual property crimes per 100,000 persons) and Income
(median annual income per capita, in dollars). His estimated regression
equation was Crime = 428 + 0.050 Income. We can conclude that:
A. the slope is small so Income has no effect on

Crime.
B. crime seems to create additional income in a
city.
C. wealthy individuals tend to commit more crimes, on
average.
D. the intercept is irrelevant since zero median income is impossible in a
large city.
Zero median income makes no sense (significance cannot be assessed

from given facts).
AACSB: Analytic
Blooms: Apply
73. Mary used a sample of 68 large U.S. cities to estimate the relationship
between Crime (annual property crimes per 100,000 persons) and Income
(median annual income per capita, in dollars). Her estimated regression
equation was Crime = 428 + 0.050 Income. If Income decreases by 1000,
we would expect that Crime will:
A. increase by
428.
B. decrease by
50.
C. increase by
500.
D. remain
unchanged.
The constant has no effect so ΔCrime = 0.050 ΔIncome = 0.050(-1000) =

-50.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
74. Amelia used a random sample of 100 accounts receivable to estimate the
relationship between Days (number of days from billing to receipt of
payment) and Size (size of balance due in dollars). Her estimated
regression equation was Days = 22 + 0.0047 Size with a correlation
coefficient of .300. From this information we can conclude that:
A. 9 percent of the variation in Days is explained by

Size.
B. autocorrelation is likely to be a
problem.
C. the relationship between Days and Size is
significant.
D. larger accounts usually take less time to
pay.
R2 = .302 = .09. These are not time-series data, so there is no reason to

expect autocorrelation. We cannot judge significance without more
information.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
75. Prediction intervals for Y are narrowest when:
A. the mean of X is near the mean of

Y.
B. the value of X is near the mean of
X.
C. the mean of X differs greatly from the mean of
Y.
D. the mean of X is
small.
Review the formula, which has (xi - )2 in the numerator. The minimum
would be when xi = .
AACSB: Analytic
Blooms: Remember
76. If n = 15 and r = .4296, the corresponding t-statistic to test for zero

correlation is:
A. 1.715.
B. 7.862.
C. 2.048.
D. impossible to determine without
α.
tcalc = r[(n - 2)/(1 - r2)]1/2 = (.4296)[(15 - 2)/(1 - .42962)]1/2 = 1.715.
AACSB: Analytic
Blooms: Apply
77. Using a two-tailed test at α = .05 for n = 30, we would reject the
hypothesis of zero correlation if the absolute value of r exceeds:
A. .2992.
B. .3609.
C. .0250.
D. .2004.
Use rcrit = t.025/(t.0252 + n - 2)1/2 = (2.048)/(2.0482 + 30 - 2)1/2 = .3609 for d.f.

= 30 - 2 = 28.
AACSB: Analytic
Blooms: Apply
78. The ordinary least squares (OLS) method of estimation will minimize:
A. neither the slope nor the

intercept.
B. only the
slope.
C. only the
intercept.
D. both the slope and
intercept.
OLS method minimizes the sum of squared residuals.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
79. A standardized residual ei = -2.205 indicates:
A. a rather poor
prediction.
B. an extreme outlier in the
residuals.
C. an observation with high
leverage.
D. a likely data entry
error.
This residual is beyond ±2se but is not an outlier (and without xi we cannot
assess leverage).
AACSB: Analytic
Blooms: Apply
80. In a simple regression, which would suggest a significant relationship
between X and Y?
A. Large p-value for the estimated

slope
B. Large t statistic for the
slope
C. Large p-value for the F
statistic
D. Small t-statistic for the
slope
The larger the tcalc the more we feel like rejecting H0: β1 = 0.
AACSB: Analytic
Blooms: Remember
81. Which is indicative of an inverse relationship between X and Y?
A. A negative F
statistic
B. A negative p-value for the correlation
coefficient
C. A negative correlation
coefficient
D. Either a negative F statistic or a negative p-
value
Fcalc and the p-value cannot be negative.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
82. Which is not correct regarding the estimated slope of the OLS regression
line?
A. It is divided by its standard error to obtain its t

statistic.
B. It shows the change in Y for a unit change in
X.
C. It is chosen so as to minimize the sum of squared
errors.
D. It may be regarded as zero if its p-value is less than
α.
We would reject H0: β1 = 0 if its p-value is less than the level of

significance.
AACSB: Analytic
Blooms: Remember
83. Simple regression analysis means that:
A. the data are presented in a simple and clear

way.
B. we have only a few
observations.
C. there are only two independent
variables.
D. we have only one explanatory
variable.
Multiple regression has more than one independent variable (predictor).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
84. The sample coefficient of correlation does not have which property?
A. It can range from -1.00 up to

+1.00.
B. It is also sometimes called Pearson's
r.
C. It is tested for significance using a t-
test.
D. It assumes that Y is the dependent
variable.
Correlation analysis makes no assumption of causation or dependence.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
85. When comparing the 90 percent prediction and confidence intervals for a
given regression analysis:
A. the prediction interval is narrower than the confidence

interval.
B. the prediction interval is wider than the confidence
interval.
C. there is no difference between the size of the prediction and confidence
intervals.
D. no generalization is possible about their comparative
width.
Individual values of Y vary more than the mean of Y.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
86. Which is not true of the coefficient of determination?
A. It is the square of the coefficient of

correlation.
B. It is negative when there is an inverse relationship between X
and Y.
C. It reports the percent of the variation in Y explained by
X.
D. It is calculated using sums of squares (e.g., SSR, SSE,
SST).
R2 cannot be negative.
AACSB: Analytic
Blooms: Remember
87. If the fitted regression is Y = 3.5 + 2.1X (R2 = .25, n = 25), it is incorrect to
conclude that:
A. Y increases 2.1 percent for a 1 percent increase in

X.
B. the estimated regression line crosses the Y axis at
3.5.
C. the sample correlation coefficient must be
positive.
D. the value of the sample correlation coefficient is
0.50.
Units are not percent unless Y is already a percent.
AACSB: Analytic
Blooms: Apply
88. In a simple regression Y = b0 + b1X where Y = number of robberies in a city
(thousands of robberies), X = size of the police force in a city (thousands of
police), and n = 45 randomly chosen large U.S. cities in 2008, we would be
least likely to see which problem?
A. Autocorrelated residuals (because this is time-series

data)
B. Heteroscedastic residuals (because we are using totals uncorrected for
city size)
C. Nonnormal residuals (because a few larger cities may skew the
residuals)
D. High leverage for some observations (because some cities may be
huge)
It is not a time series, so autocorrelation would not be expected, but the

"size effect" is likely to produce heteroscedasticity, nonnormality, and
unusual leverage.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
89. When homoscedasticity exists, we expect that a plot of the residuals
versus the fitted Y:
A. will form approximately a straight

line.
B. crosses the centerline too many
times.
C. will yield a Durbin-Watson statistic near
2.
D. will show no pattern at
all.
Homoscedastic residuals exhibit no pattern (equal variance for all Y).
AACSB: Analytic
Blooms: Understand
90. Which statement is not correct?
A. Spurious correlation can often be reduced by expressing X and Y in per

capita terms.
B. Autocorrelation is mainly a concern if we are using time-series
data.
C. Heteroscedastic residuals will have roughly the same variance for any
value of X.
D. Standardized residuals make it easy to identify outliers or instances of
poor fit.
Heteroscedastic residuals exhibit different variance for different X or Y

values.
AACSB: Analytic
Blooms: Understand
91. In a simple bivariate regression with 25 observations, which statement is
most nearly correct?
A. A non-standardized residual whose value is ei = 4.22 would be

considered an outlier.
B. A leverage statistic of 0.16 or more would indicate high
leverage.
C. Standardizing the residuals will eliminate any
heteroscedasticity.
D. Non-normal residuals imply biased coefficient estimates, a major
problem.
For simple regression, the "high leverage criterion" is hi > 4/n = 4/25 = .16.
We cannot judge a residual's magnitude without knowing the standard
error se. Standardizing is only a scale shift so does not reduce
heteroscedasticity. Non-normal errors do not bias the OLS estimates.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
92. A regression was estimated using these variables: Y = annual value of
reported bank robbery losses in all U.S. banks ($millions), X = annual value
of currency held by all U.S. banks ($millions), n = 100 years (1912 through
2011). We would not anticipate:
A. autocorrelated residuals due to time-series

data.
B. heteroscedastic residuals due to the wide variation in data
magnitudes.
C. nonnormal residuals due to skewed data as bank size increases over
time.
D. a negative slope because banks hold less currency when they are
robbed.
It is a time series, so autocorrelation would be expected, and the "size

effect" is likely to produce heteroscedasticity and nonnormality, but growth
in both X and Y would yield a positive slope.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
93. A fitted regression for an exam in Prof. Hardtack's class showed Score = 20
+ 7 Study, where Score is the student's exam score and Study is the
student's study hours. The regression yielded R2 = 0.50 and SE = 8. Bob
studied 9 hours. The quick 95 percent prediction interval for Bob's grade is
approximately:
A. 69 to
97.
B. 75 to
91.
C. 67 to
99.
D. 76 to
90.
The quick interval is ypredicted ±2se or 83 ± (2)(8) or 83 ± 16.
AACSB: Analytic
Blooms: Apply
94. Which is not an assumption of least squares regression?
A. Normal X
values
B. Non-autocorrelated
errors
C. Homoscedastic
errors
D. Normal
errors
The predictor X is not assumed to be a random variable at all.
AACSB: Analytic
Blooms: Apply
95. In a simple bivariate regression with 60 observations there will be _____

residuals.
A. 60
B. 59
C. 58
D. 57
There is one residual for every observation.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 12-03 Make a prediction for a given x value using a regression equation.
96. Which is correct to find the value of the coefficient of determination (R2)?
A. SSR/SSE
B. SSR/SS
T
C. 1 -
SST/SSE
We use the ANOVA sums of squares to calculate R2.
AACSB: Analytic
Blooms: Remember
97. The critical value for a two-tailed test of H0: β1 = 0 at α = .05 in a simple
regression with 22 observations is:
A. ±1.72
5
B. ±2.08
6
C. ±2.52
8
D. ±1.96
0
From Appendix D, tcrit = ±2.086 for d.f. = n - 2 = 22 - 2 = 20.
AACSB: Analytic
Blooms: Apply
98. In a sample of size n = 23, a sample correlation of r = .400 provides
sufficient evidence to conclude that the population correlation coefficient
exceeds zero in a right-tailed test at:
A. α = .01 but not α =

.05.
B. α = .05 but not α =
.01.
C. both α = .05 and α =
.01.
D. neither α = .05 nor α =
.01.
tcalc = r[(n - 2)/(1 - r2)]1/2 = (.40)[(23 - 2)/(1 - .402)]1/2 = 2.000 > t.05 = 1.721
for d.f. = 23 - 2 = 21. However, the test would not be significant for t.01 =
2.518.
AACSB: Analytic
Blooms: Apply
99. In a sample of n = 23, the Student's t test statistic for a correlation of r =
.500 would be:
A. 2.559.
B. 2.819.
C. 2.646.
D. can't say without knowing
α.
tcalc = r[(n - 2)/(1 - r2)]1/2 = (.50)[(23 - 2)/(1 - .502)]1/2 = 2.646.
AACSB: Analytic
Blooms: Apply
100. In a sample of n = 23, the critical value of the correlation coefficient for a
two-tailed test at α = .05 is:
A. ±.52
4
B. ±.41
2
C. ±.50
0
D. ±.49
7

= 23 - 2 = 21.
AACSB: Analytic
Blooms: Apply
101. In a sample of n = 23, the critical value of Student's t for a two-tailed test
of significance for a simple bivariate regression at α = .05 is:
A. ±2.22
9
B. ±2.81
9
C. ±2.64
6
D. ±2.08
0
From Appendix D, t.025 = ±2.080 for d.f. = n - 2 = 23 - 2 = 21.
AACSB: Analytic
Blooms: Apply
102. In a sample of n = 40, a sample correlation of r = .400 provides sufficient
evidence to conclude that the population correlation coefficient exceeds
zero in a right-tailed test at:
A. α = .025 but not α =

.05.
B. α = .05 but not α =
.025.
.05.
.05.
tcalc = r[(n - 2)/(1 - r2)]1/2 = (.40)[(40 - 2)/(1 - .402)]1/2 = 2.690 > t.025 = 2.024
for d.f. = 40 - 2 = 38. The test would also be significant a fortiori if we used
t.05 = 1.686.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
103. In a sample of n = 20, the Student's t test statistic for a correlation of r =
.400 would be:
A. 2.110
B. 1.645
C. 1.852
D. can't say without knowing if it's a two-tailed or one-tailed
test.
tcalc = r[(n - 2)/(1 - r2)]1/2 = (.40)[(20 - 2)/(1 - .402)]1/2 = 1.852.
AACSB: Analytic
Blooms: Apply
A. ±.58
7
B. ±.41
2
C. ±.44
4
D. ±.49
7

= 20 - 2 = 18.
AACSB: Analytic
Blooms: Apply
of significance for a simple bivariate regression at α = .05 is:
A. ±2.06
0
B. ±2.05
2
C. ±2.89
8
D. ±2.07
4
AACSB: Analytic
Blooms: Apply
106. In a sample of size n = 36, a sample correlation of r = -.450 provides
sufficient evidence to conclude that the population correlation coefficient
differs significantly from zero in a two-tailed test at:
A. α =
.01
B. α =
.05
.05.
.05.
tcalc = r[(n - 2)/(1 - r2)]1/2 = (-.45)[(36 - 2)/(1 - (-.40)2)]1/2 = -2.938 < t.005 = -
2.728 for d.f. = 34. The test would also be significant a fortiori if we used
t.025 = -2.032
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
107. In a sample of n = 36, the Student's t test statistic for a correlation of r = -
.450 would be:
A. -
2.110.
B. -
2.938.
C. -
2.030.
D. can't say without knowing
α.
tcalc = r[(n - 2)/(1 - r2)]1/2 = (-.45)[(36 - 2)/(1 - (-.40)2)]1/2 = -2.938.
AACSB: Analytic
Blooms: Apply
A. ±.32
9
B. ±.38
7
C. ±.42
3
D. ±.49
7

= 36 - 2 = 34.
AACSB: Analytic
Blooms: Apply
of significance of the slope for a simple regression at α = .05 is:
A. 2.938
B. 2.724
C. 2.032
D. 2.074
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
regression is Time = -7.126 + 0.0214 Distance. If Distance increases by 50
miles, the expected Time would increase by:
A. 1.07
days
B. 7.13
days
C. 2.14
days
D. 1.73
days
50(0.0214) = 1.07.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
111. A local trucking company fitted a regression to relate the cost of its
shipments as a function of the distance traveled. The Excel fitted
regression is shown.
Based on this estimated relationship, when distance increases by 50 miles,

the expected shipping cost would increase by:
A. $286
.
B. $143
.
C. $104
.
D. $301
.
2.8666(50) = $143.33.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
112. If SSR is 2592 and SSE is 608, then:
A. the slope is likely to be

insignificant.
B. the coefficient of determination is
.81.
C. the SST would be smaller than
SSR.
D. the standard error would be
large.
R2 = SSR/SST = SSR/(SSR + SSE) = 2592/(2592 + 608) = .81. SST cannot

be smaller than SSR because SST = SSR + SSE. The significance and
standard error cannot be judged without more information.
AACSB: Analytic
Blooms: Apply
113. Find the sample correlation coefficient for the following data.
A. .8911
B. .9124
C. .9822
D. .9556
Use Excel =CORREL(XData, YData) to verify your calculation using the

formula for r.
AACSB: Analytic
Blooms: Apply
114. Find the slope of the simple regression = b0 + b1x.
A. 1.833
B. 3.294
C. 0.762
D. -
2.228
Use Excel to verify your calculations using the formulas for b0 and b1.
AACSB: Analytic
Blooms: Apply
115. Find the sample correlation coefficient for the following data.
A. .7291
B. .8736
C. .9118
D. .9563
Use Excel =CORREL(XData, YData) to verify your calculation using the

formula for r.
AACSB: Analytic
Blooms: Apply
116. Find the slope of the simple regression = b0 + b1x.
A. 2.595
B. 1.109
C. -
2.221
D. 1.884
Use Excel to verify your calculations using the formulas for b0 and b1.
AACSB: Analytic
Blooms: Apply
117. A researcher's results are shown below using n = 25 observations.
The 95 percent confidence interval for the slope is:
A. [ -3.282, -
1.284].
B. [ -4.349, -
0.217].
C. [1.118,
5.026].
D. [ -0.998,
+0.998].
For d.f. = n - 2 = 25 - 2 = 23, t.025 = 2.069, so -2.2834 ± (2.069)(0.99855).
AACSB: Analytic
Blooms: Apply
Learning Objective: 12-05 Calculate and interpret confidence intervals for regression coefficients.
118. A researcher's regression results are shown below using n = 8
observations.
The 95 percent confidence interval for the slope is:
A. [1.333,
2.284].
B. [1.602,
2.064].
C. [1.268,
2.398].
D. [1.118,
2.449].
For d.f. = n - 2 = 8 - 2 = 6, t.025 = 2.447, so 1.8333 ± (2.447)(0.2307).
AACSB: Analytic
Blooms: Apply
Learning Objective: 12-05 Calculate and interpret confidence intervals for regression coefficients.
119. Bob thinks there is something wrong with Excel's fitted regression. What do
you say?
A. The estimated equation is obviously

incorrect.
B. The R2 looks a little high but otherwise it looks
OK.
C. Bob needs to increase his sample size to
decide.
D. The relationship is linear, so the equation is
credible.
A visual estimate of the slope is Δy/Δx = (625 - 100)/(200 - 0) = 2.625, so

the indicated slope less than 1 must be wrong, plus the visual intercept is
100 (not 154.61) and the fit seems better than R2 = .2284.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
120. Pedro became interested in vehicle fuel efficiency, so he performed a
simple regression using 93 cars to estimate the model CityMPG = β0 + β1
Weight where Weight is the weight of the vehicle in pounds. His results are
shown below. Write a brief analysis of these results, using what you have
learned in this chapter. Is the intercept meaningful in this regression?
Make a prediction of CityMPG when Weight = 3000, and also when Weight
= 4000. Do these predictions seem believable? If you could make a car
1000 pounds lighter, what change would you predict in its CityMPG?
It is reasonable that a causal relationship might exist between a vehicle's

weight and its MPG. We expect a negative slope (heavier vehicles would
get lower MPG). The coefficient of Weight differs from zero at any common
value of α (the p-value is less than .0001) and the F statistic is huge. The
confidence interval for the coefficient of the predictor Weight does not
include zero. The highly significant predictor Weight is consistent with the
high coefficient of determination (R2 = .711), which says that well over half
the variation in MPG is explained by Weight. If Weight = 3000, we predict
MPG = 47.0484 - .0080 Weight = 47.0484 - .0080(3000) = 23.05 mpg. If
Weight = 4000, we predict MPG = 47.0484 - .0080 Weight = 47.0484 -
.0080(4000) = 15.05 mpg. The intercept is not meaningful since no vehicle
has zero weight or a weight close to zero.
Feedback: It is reasonable to postulate that a causal relationship might
exist between a vehicle's weight and its MPG. Our a priori expectation
would be that the slope should be negative since we would expect that
heavier vehicles would get lower MPG. The coefficient of Weight differs
from zero at any common value of α (the p-value is less than .0001) and
the F statistic is huge. The confidence interval for the coefficient of the
predictor Weight does not include zero. The slope's sign is negative, as
anticipated a priori. The highly significant predictor Weight is consistent
with the high coefficient of determination (R2 = .711), which says that well
over half the variation in MPG is explained by Weight. If Weight = 3000, we
predict MPG = 47.0484 - .0080 Weight = 47.0484 - .0080(3000) = 23.05
mpg. When Weight = 4000, we would predict MPG = 47.0484 - .0080
Weight = 47.0484 - .0080(4000) = 15.05 mpg. The intercept is not
meaningful since no vehicle has zero weight or any weight close to zero.

Blooms: Evaluate
Difficulty: 3 Hard
121. Mary noticed that old coins are smoother and more worn. She weighed 31
nickels and recorded their age, and then performed a simple regression to
estimate the model Weight = β0 + β1 Age where weight is the weight of
the coin in grams and Age is the age of the coin in years. Her results are
shown below. Write a brief analysis of these results, using what you have
learned in this chapter. Make a prediction of Weight when Age = 10, and
also when Age = 20. What does this tell you? Is the intercept meaningful in
this regression?
It is reasonable to postulate a causal relationship between a coin's age and

its weight (negative slope, since we would expect that coins will wear down
with usage). The coefficient of Age differs from zero at any common α (the
p-value is less than .0001) and the F test statistic is large. The confidence
interval for the coefficient of Age does not include zero, and its sign is
negative, as anticipated a priori. Despite the significant predictor Age, the
coefficient of determination (R2 = .442) shows that less than half the
variation in nickel weights is explained by Age. If Age = 10, we predict
Weight = 5.0210 - .0040 Age = 5.0210 - .0040(10) = 4.981 gm. If Age = 20,
we predict Weight = 5.0210 - .0040 Age = 5.0210 - .0040(20) = 4.941 gm.
The intercept is meaningful if Age = 0 was in the sample data set (or at
least some Age value near zero). The intercept is logically meaningful
because Age = 0 is something we might observe (i.e., a newly minted
nickel).
Feedback: It is reasonable to postulate that a causal relationship might

exist between a coin's age and its weight. Our a priori expectation would be
that the slope should be negative since we would expect that coins will
wear down with usage. The coefficient of Age differs from zero at any
common value of α (the p-value is less than .0001) and the F test statistic
is quite large. The confidence interval for the coefficient of Age does not
include zero, and its sign is negative, as anticipated a priori. Despite the
highly significant predictor Age, the coefficient of determination (R2 = .442)
shows that less than half the variation in nickel weights is explained by
Age. Our predictions: If Age = 10, we would predict Weight = 5.0210 - .0040
Age = 5.0210 - .0040(10) = 4.981 gm. If Age = 20, we would predict Weight
= 5.0210 - .0040 Age = 5.0210 - .0040(20) = 4.941 gm. The intercept is
meaningful, assuming that Age = 0 years was included in the sample data
set (or at least some Age value near zero). The intercept is logically
meaningful a priori because Age = 0 is something we might easily observe
(i.e., a newly minted nickel).

Blooms: Evaluate
Difficulty: 3 Hard

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Chapter 02

Chapter 02 Data Collection Answer Key

True / False Questions

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2. Numerical data can be either discrete or continuous.

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Categories are nominal data (nonnumerical), sometimes called qualitative data.

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4. The number of checks processed at a bank in a day is an example of categorical data.

Integers are actually numerical data.

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Integers are discrete numerical data.

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Weight is measured on a continuous scale.

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8. Nominal data refer to data that can be ordered in a natural way.

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The "number of" anything is discrete.

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Zero is only a reference point, not necessarily an observable data value.

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Categorical and nominal are equivalent terms.

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13. Temperature measured in degrees Fahrenheit is an example of interval data.

For temperature, scale distances are meaningful (20 to 25 is the same as 50 to 55

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14. The closing price of a stock is an example of ratio data.

True zero exists as a reference, whether or not it is observed.

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A useful reference for business (e.g., for marketing, economics, or finance).

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No true zero point exists on a Likert scale.

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Likert scales are used in all kinds of surveys.

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The true zero is a reference that need not be observable.

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25. Sampling error is avoidable by choosing the sample scientifically.

Sampling error is unavoidable, though it can be reduced by careful sampling.

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There is no bias if this method is implemented correctly.

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This resembles two-stage cluster sampling combined with systematic sampling.

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Self-selection bias exists (respondents may be atypical).

Data collected and recorded over time would be a time series.

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For example, sampling voters randomly within random zip codes.

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Phone surveys are cheaper, but it is hard to avoid these problems.

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Data for individuals would be a cross section (not a time series).