MIDTERM EXAM

Course Title: Probability & Statistics for Business II

Lecturers: Amira Dridi, Riadh Aloui, Eya Jebali

Grade /100 Name: ………………..………………………………………………………………………………………………….

Last Name: ………………………………………………………………………………………………..

Student ID: ……………………………………………………………………….………………………..…

Group: ……….………………..………………....……………………………………............................................

Date: January 18th , 2018

Working time: 120 minutes

Number of pages: 10

Instructions

- Books and notes are not permitted

- Calculators are allowed
- It is not allowed to use mobile phones
- It is not allowed to share writing instruments

MCQs: Choose the right answer (40 marks)

1. A type II error occurs when:

a. the null hypothesis is incorrectly accepted when it is false
b. the null hypothesis is incorrectly rejected when it is true
c. the sample mean differs from the population mean
d. the test is biased

2. A null hypothesis can only be rejected at the 5% significance level if and only if:
a. a 95% confidence interval includes the hypothesized value of the parameter
b. a 95% confidence interval does not include the hypothesized value of the parameter
c. the null hypothesis is void
d. the null hypotheses includes sampling error

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3. Which of the following is not a correct way to state a null hypothesis?
a. H 0 : p1 − p2 = 0

b. H 0 :  D = 0

c. H 0 : 1 − 2 = 0

d. None of the above

4. When testing the equality of two population variances, the test statistic is the ratio of the
population variances; namely  12 /  22 .
a. True
b. False

5. The number of degrees of freedom associated with the t test, when the data are gathered
from a matched pairs experiment with 12 pairs, is 22.
a. True
b. False

6. The smaller the p-value, the

a. stronger the evidence against the alternative hypothesis
b. stronger the evidence for the null hypothesis
c. stronger the evidence against the null hypothesis
d. none of the above

7. One-way ANOVA is used when:

a. analyzing the difference between more than two population means
b. analyzing the results of a two-tailed test
c. analyzing the results from a large sample
d. analyzing the difference between two population means

8. The ________ sum of squares measures the variability of the sample treatment means
around the overall mean.
a. treatment
b. error
c. interaction
d. Total

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9. The ANOVA test is based on which assumptions?
I. the sample are randomly selected
II. the population variances are all equal to some common variance
III. the populations are normally distributed
IV. the populations are statistically significant
a. All of the above
b. II and III only
c. I, II, and III only
d. I, and III only

10. In a study, subjects are randomly assigned to one of three groups: control, experimental
A, or experimental B. After treatment, the mean scores for the three groups are compared. The
appropriate statistical test for comparing these means is:
a. The correlation coefficient
b. Chi square
c. The t-test
d. The analysis of variance

11. What type of data do you need for a Chi-square test

a. Scale
b. Categorical
c. Ordinal
d. Interval

12. Contingency tables and degrees of freedom are key elements of the chi-square test
a. True
b. False

13. In general, the expected frequencies per cell in the conduct of a Chi-Square test are those
one would
a. expect to find in a given cell if the null hypothesis were actually true
b. expect to find in a given cell if either the null hypothesis or the alternative hypothesis
were actually true
c. expect to find in a given cell if the null hypothesis were actually false
d. expect to find in a given cell if the alternative hypothesis were actually true

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14. What is the purpose of a simple linear regression?
a. To predict scores on an independent variable from scores on a single dependent
variable
b. To predict scores on a dependent variable from scores on a single independent variable
c. To assess whether there is a significant difference between independent groups
d. To assess whether there is a significant difference between repeated measures

15. The percent of total variation of the dependent variable Y explained by the set of
independent variables X is measured by
a. Coefficient of Correlation
b. Coefficient of Skewness
c. Coefficient of Determination
d. Standard Error or Estimate

16. The standard error of the regression measures the

a. variability of the independent variable relative to its mean.
b. variability of the dependent variable relative to its mean.
c. variability of the dependent variable relative to the regression line.
d. average error that will result if the regression line is used to predict.

17. A scatter plot and regression line can be used for all of the following EXCEPT
a. to determine if any (x,y) pairs are outliers.
b. to predict y at a specific value of x..
c. to estimate the average y at a specific value of x.
d. to determine if a change in x causes a change in y.

18. A student analyzed data for a one-way analysis of variance situation for which there were
3 levels of the factor, and 21 people measured at each level. Unfortunately, after running the
analysis, the student lost the computer output. She said “All I remember is that one of the
mean squares was 100 and the other one was 500, but I can’t remember which was which. Oh,
and I remember that the p-value for the test was about 0.01.”
a. The Mean Square Among or Between (MSA or MST) and the Mean Square Within
(MSW or MSE) are equal to 500 and 100 respectively.
b. The Mean Square Among or Between (MSA or MST) and the Mean Square Within
(MSW or MSE) are equal to 100 and 500 respectively.
c. Not Enough Information.

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19. In regression analysis, if the coefficient of determination ( R2 ) is 1.0, then:
a. SSE (error sum of squares) must be 1.0
b. SSR (regression sum of squares) must be 1.0
c. SSE must be 0.0
d. SSR must be 0.0

20. What do residuals represent in the simple linear regression model?

a. The difference between the actual Y values and the mean of Y.
b. The difference between the actual Y values and the predicted Y values.
c. The square root of the slope.
d. The predicted value of Y for the average X value
e. None of the above.

Exercise # 1 (15 marks)

A sport preference poll yielded the following data for men and women.

Sport Preference
Basketball Football Soccer

Men 20 45 30 95

Gender
Women 20 15 25 60

40 60 55 155

Given the output below, answer the following questions

Expected counts
Basketball Football Soccer
Men 24.516 fe12 33.710
Women fe21 23.226 fe23

Distances of observed from expected

value1 1.840 value3
1.317 value2 0.646

Chi-square test statistic= ?

p-value=0.018713

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1. Compute the missing expected frequencies fe12 , fe21 and fe23

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2. Compute the missing distances of observed from expected frequencies value1,

value2 and value3.

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3. Test whether sport preference and gender are independent at 5% significance level.
Use the six steps method.
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Exercise # 2 (30 marks)

Do young children use cell phones? Apparently so, according to a recent study which stated
that cell phone users under 12 years of age averaged 137 calls per month as compared to 231
calls per month for cell phone users 13 to 17 years of age. No sample sizes were reported.
Suppose that the results were based on samples of 50 cell phone users in each group and that
the sample standard deviation for cell phone users under 12 years of age was 51.7 calls per
month and the sample standard deviation for cell phone users 13 to 17 years of age was 67.6
calls per month.

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Assumptions:

- Both Samples are randomly and independently drawn

- Both Populations are normally distributed
- Population variances are unknown but assumed equal

Use the six steps method to test if there is evidence of a difference in the mean cell phone
usage between cell phone users under 12 years of age and cell phone users 13 to 17 years
of age? (The significance level is 5%.)

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Exercise # 3 (15 marks)

Suppose the National Transportation Safety Board (NTSB) wants to examine the safety of
compact cars, midsize cars, and full-size cars. It collects a sample of three for each of the
treatments (cars types).
Using the hypothetical data provided below, test whether the mean pressure applied to the
driver’s head during a crash test is equal for each types of car. Use α = 5%.

1. What are the null and alternative hypotheses?

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 2. Find the critical value and state the decision rule.

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3. Compute the observed value of the test statistic and decide whether you will reject
or fail to reject the null hypothesis.
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Good Luck

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