FINAL EXAM FALL 2022 – PAPER 3

1. In the equation of regression line, the slope (b1) represents …

a. the estimated average changes in Y per unit change in X.
b. variation around the line of regression.
c. The predicted value of Y.
d. Predicted value of Y when X = 0.

2. Health care issues are receiving much attention in both academic and political arenas.
A sociologist recently conducted a survey of citizens over 60 years of age whose net
worth is too high to qualify for Medicaid. The ages of 25 senior citizens were as
follows: 60 61 62 63 64 65 66 68 68 69 70 73 73 74 75 76 76 81
81 82 86 87 89 90 92. Determine the first quartile of the ages of the senior
citizens.
a. 98
b. 97.5
c. 65.5
d. 64

3. A survey was conducted to determine how people rated the quality of programming
available on television. Respondents were asked to rate the overall quality from 0 (no
quality at all) to 100 (extremely good quality). The stem-and-leaf display of the data is
shown below.
Stem Leaves
3 24
4 03478999
5 0112345
6 12566
7 01
8
9 2
What percentage of the respondents rated overall televisions quality with a rating of
80 or above?
a. 0
b. 4
 c. 96
d. 100

4. The addition of visual elements that either fail to convey any useful information or
that obscure important points about the data to enhance the visualization of data is
called…
a. Chart junk
b. Pivot table
c. Filtering data
d. Sparkline

5. Calculate the population variance: 4, 6, 10, 13, 18, 20

a. 38.2
b. 34.1
c. 27.6
d. 28.4
e. 28.1

6. The amount of time required to reach a

customer service representative has a huge
impact on customer satisfaction. See for the
Excel output from a study whether there is
evidence of a difference in the mean
amounts of time required to reach a
customer service representative between
two hotels. Assume that the population
variances in the amount of time for the two
hotels are not equal.
Which of the following represents the
relevant hypotheses tested?

a. (ii)
b. (iv)
c. (iii)
d. (i)
7. An airline wants to select a computer software package for its reservation system.
Four software packages (1, 2, 3, and 4) are commercially available. The airline will
choose the package that bumps as few passengers as possible during a month. An
experiment is set up in which each package is used to make reservations for 5
randomly selected weeks. (A total of 20 weeks was included in the experiments.) The
number of passengers bumped each week is obtained, which gives rise to the
following Excel output:

The within groups degrees of freedom is…

a. 4
b. 3
c. 19
d. 16

8. The management of a chain electronic store would like to develop a model for
predicting the weekly sales (in thousands of dollars) for individual stores based on the
number of customers who made purchases. A random sample of 12 stores yields and
residual plot generated as follows:
 The residual plot indicates possible violation of which assumptions?
a. Homoscedasticity
b. Normality of errors
c. Independence of errors
d. Linearity of the relationship.

9. A powerful women’s group has claimed that men and women differ in attitudes about
sexual discrimination. A group of 50 men (group 1) and 40 women (group 2) were
asked if they thought sexual discrimination is a problem in the United States. Of those
sampled, 11 of the men and 19 of the women did believe that sexual discrimination is
a problem. Find the value of test statistics.
a. Z = -1.05
b. Z = -2.55
c. Z = -0.85
d. Z = -1.20

10. There are only 4 empty rooms available in student dormitory for eleven new
freshmen. Each room is considered so that it matters who is begin assigned to which
room. How many different ways can those 4 empty rooms be filled one student per
room?
a. 5,690
b. 7,920
c. 5,230
d. 6,630

11. It is believed that GPA (grade point average, based on a four point scale) should
have a positive linear relationship with ACT scores. Given below is the Excel output
for predicting GPA using ACT scores based a data set of 8 randomly chosen students
from a Big-Ten university.
 The value of the measures test statistic to test whether there is any linear relationship
between GPA and ACT is…
a. 0.0286
b. None of the other choices is correct.
c. 2.8633
d. 0.0356
e. 0.1021

12. A sample of 200 students at a Big-Ten university was taken after the midterm to ask
them whether they went bar hopping the weekend before the midterm or spend the
weekend studying, and whether they did well or poorly on the midterm. The following
table contains the result:
Did well in Did poorly in
Midterm Midterm
Studying for 80 20
Exam
Went bar 30 70
Hopping
 Of those who went bar hopping the weekend before the midterm in the sample, …
percent of them did well on the midterm.
a. 55
b. 30
c. 15
d. 27.27

13. A campus researcher wanted to investigate the factors that affect visitor travel time
in a complex, multilevel building on campus. Specifically, he wanted to determine
whether different building signs (building maps versus wall signage) affect the total
amount of time visitors require to reach their destination and whether that time
depends on whether the starting location is inside or outside the building. Three
subjects were assigned to each of the combinations of signs and starting locations, and
travel time in seconds from beginning to destination was recorded. An Excel output of
the appropriate analysis at 1% level of significance is given below:

At 1% level of significance, what should we conclude?

a. There is insufficient evidence to conclude that the difference between the mean
traveling time for the different starting locations depends on the types of signs.
b. There is sufficient evidence to conclude that the difference between the mean
traveling time for the different types of signs depends on the starting locations.
c. There is sufficient evidence to conclude that the relationship between traveling
time and the types of signs depends on the starting locations.
d. All of the above.

14. An entomologist writes an article in scientific journal which claims that fewer 1b in
ten thousand male fireflies are unable to produce light due to a genetic mutation.
Assume that a hypothesis test of the given claim will be conducted. Identify the type I
error for the test.
 a. The error of rejecting the claim that the true proportion is at least 16 in ten
thousand when it really is at least 16 in ten thousand.
b. The error of rejecting the claim that the true proportion is less than 16 in ten
thousand when it really is less than 16 in ten thousand.
c. The error failing to reject the claim that the true proportion is at least 16 in ten
thousand when it is actually less than 16 in ten thousand.

15. The following table contains the probability distribution for X = the number of
retransmissions necessary to successfully transmit a 1024K data package through a
network. Find the expected value for the number of retransmissions.
X 0 1 2 3
P(X) 0.35 0.35 0.25 0.05
a. 0.75
b. None of the other choices is correct.
c. 1.25
d. 1.00
e. 0.80

16. Which of the following is a discrete quantitative (numerical) variable?

a. The volume of water released from a dam.
b. The distance you drove yesterday.
c. The number of employees of an insurance company.
d. The Dow Jones Industrial average.

17. The number of power outages at a nuclear power plant has a Poisson distribution
with a mean of 6 outages per year. The probability that there will be no more than 1
power outage in a year is….
a. 0.056
b. 0.044
c. 0.083
d. 0.017

18. Calculate the sample correlation coefficient:

x 12 6 3
y -1 5 2
a. -0.65
 b. -0.92
c. 0.65
d. 0.92
e. None of the other choices is correct.

19. The equal variance assumption for simple linear regression requires that the
variance of X equal to the variance of Y.
a. False
b. True

20. Suppose the time interval between two consecutive defective light bulbs from a
production line has a uniform distribution over an interval from 0 to 90 minutes. What
is the mean of the time interval?
a. 675
b. 50
c. 325
d. 45

21. The following table represents the scores of 25 students in Mathematics in the 10th
grade:
65 40 75 43 67 80 64 88 92 56 45 93 41 89 65 79 76 90 70 90
70 71 64 88
Determine the sample proportion of the students who scores more than 85, and if
the population proportion is 0.15, determine the standard error of the proportion.
a. 0.72; 0.028
b. None of the other choices is correct.
c. 0.25; 0.072
d. 0.25; 0.082
e. 0.28; 0.071

22. A pizza chain is considering opening a new store in an area that currently does not
have any such stores. The chain will open if there is evidence that more than 5,0000 of
the 20,000 households in the area have a favorable view of its brand. It conducts a
telephone poll of 300 randomly selected households in the area and finds that 96 have
a favorable view. State the test of hypothesis that is of interest to the pizza chain.
 (i) H0: π ≤ 0.32 versus H1: π > 0.32
(ii) H0: π ≤ 0.25 versus H1: π > 0.25
(iii) H0: π ≤ 5,000 versus H1: π > 5,000
(iv) H0: μ ≤ 5,0000 versus H1: μ > 5,000
a. (iv)
b. (ii)
c. (i)
d. (iii)

23. A certain type of new business succeeds 60% of the time. Suppose that 3 such
businesses open (where they do not compete, so it is reasonable to believe that their
relative successes would be independent). The probability that at least 1 business
succeeds is…
a. 0.769
b. 0.2311
c. 0.064
d. 0.936

24. An economist is interested to see how consumption for an economy (in $ billion) is
influenced by gross domestic product ($ billion) and aggregate price (consumer price
index). The Microsoft Excel output of this regression is partially reproduced below:

What is the estimated mean consumption level for an economy with GDP equal to $2
billion and an aggregate price index of 90?
a. $4.75 billion
b. $1.39 billion
c. $9.45 billion
d. $2.89 billion
25. There are two houses with almost identical characteristics available for investment
in two different neighborhoods with drastically different demographics compositions.
The anticipated gain in value when the houses are sold in 10 years has the followi9ng
probability distribution:
Returns
Probability Neighborhood A Neighborhood B
0.25 -$22,500 $30,500
0.40 $10,000 $25,000
0.35 $40,500 $10,500
 What is the covariance of the two houses?
a. -190,040,000
b. 203,750,000
c. -203,750,000
d. 190,040,000

26. The amount of time required to reach a customer service representative has a huge
impact on customer satisfaction. Below is the Excel output for significance level 0.05
from a study to see whether there is evidence of a difference in the mean amounts of
time required to reach a customer service representative between two hotels. Assume
that the population variances in the amount of time for the two hotels are not equal.

What is the value of the test statistic?

a. 2.0115
b. 2.2140
c. 0.2025
d. 0.3544

27. A study is under way in Yosemite National Forest to determine the adult height of
American pine trees. Specifically, the study is attempting to determine what factors aid
a tree in reaching heights greater than 60 feet tall. It is estimated that the forest
contains 25,000 adult American pines The study involves collecting heights from 250
 randomly adult American pine trees and analyzing the results. Identify the population
from which the study was sampled.
a. All American pine trees, of any age, in the forest.
b. All the adult American pine trees taller than 60 feet.
c. The 25,000 adult American pine trees in the forest.
d. The 250 randomly selected adult American pine trees

28. Which of the following statements is false about the t-distribution?

a. The t-distribution is bell-shaped distribution.
b. There is little difference between t-distribution and standard normal distribution
when sample size n is large enough.
c. The t-distribution has less area in tails and more in the center than does the
standardized normal distribution.
d. The t-distribution is the distribution with median equal to zero.

29. It is believed that GPA (grade point average, based on a four point scale) should
have a positive linear relationship with ACT scores. Given below is the Excel output
for predicting GPA using ACT scores based on a data set of 8 randomly chosen
students from a Big-Ten university.
 The interpretation of the coefficient of determination in this regression is …
a. ACT scores account for 57.74% of the total fluctuations in GPA.
b. 57.74% of the total variation of ACT scores can be explained by GPA.
c. GPA accounts for 57.74% of the variability of ACT scores.
d. None of the above.

30. TRUE or FALSE

The question: “How much did you earn last year rounded to nearest hundreds of
dollars?” will most likely result in measurement error.
a. FALSE
b. TRUE

31. Find the test statistic t for a sample with n=12 , x=30.2 , s=2.2 ,∧∝=0.01 if H 0 : μ=29.
Round your answer to three decimal places.
Given t0.005, 11 = 3.106
a. 1.890
b. 3.106
c. None of the other choices is correct.
d. 2.001
e. 1.991

32. A real estate builder wishes to determine how house size (House) is influenced by
family income (Income) and family size (Size). House size is measured in hundreds of
square feet and income is measured in thousands of dollars. The builder randomly
selected 50 families and ran the multiple regression. Partial Microsoft Excel output is
provided below:
 What fraction of the variability in house size is explained by income and size of
family?
a. 70.69%
b. 71.89%
c. 84.79%
d. 17.56%

33. You wish to test the claim that μ>132 at a level of significance of ∝=0.05 and are
given sample statistics: n=40 , x=137 ,∧s=14.2. Compute the value of the test statistics
and critical values. Round your answer to two decimal places.
Let t0.025, 39 = 2.023 and t0.005, 39 = 1.685
a. -0.06 and 2.023
b. 0.06 and 2.023
c. 2.23 and 1.685
d. -2.23 and 1.685

34. The amount of time required to reach a customer service representative has a huge
impact on customer satisfaction. See picture for the Excel output at significance level
0.05 from a study whether there is evidence of a difference in the mean amounts of
 time required to reach a customer service representative between two hotels. Assume
that the population variances in the amount of time for the two hotels are not equal.

State the null and alternative hypothesis for testing if there is evidence of a difference
in the variabilities of the amount of time required to reach a customer service
representative between the two hotels.
(i) H 0 :σ 2I −σ 2II ≥ 0 versus H 1 :σ 2I −σ 2II <0
(ii) H 0 :σ 2I −σ 2II ≤ 0 versus H 1 :σ 2I −σ 2II >0
(iii) H 0 :σ 2I −σ 2II=0 versus H 1 :σ 2I −σ 2II ≠ 0
(iv) H 0 :σ 2I −σ 2II ≠ 0 versus H 1 :σ 2I −σ 2II=0
a. (iii)
b. (i)
c. (ii)
d. (iv)

35. It is believed that the average numbers of hours spent studying per day (HOURS)
during undergraduate education should have a positive linear relationship with the
starting salary (SALARY, measured in thousands of dollars per month) after
graduation. Given below is the Excel output for predicting starting salary (Y) using
number of hours spent studying per day (X) for a sample of 51 students. NOTE: Only
partial output is shown.
 The estimated change in mean salary (in thousands of dollars) as a result of spending
an extra hour per day studying is …
a. 0.9795
b. 335.0473
c. 0.7845
d. -1.8940

36. The scores of a final exam in Math are normally distributed with mean of 73 with
standard deviation 7.8. If 24 students are randomly selected, find the probability that
the mean of their test scores is greater than 78.
Let P(Z < 3.14) = 0.9992, P(Z < 1.26) = 0.8962
a. 0.8962
b. 0.9992
c. 0.1038
d. 0.0008
e. None of the other choices is correct.

37. The manager of the customer service division of a major consumer electronics
company is interested in determining whether the customers who have purchased a
Blu-ray player made by the company over the past 12 months are satisfied with their
products.
 The manager decides to ask a sample of customers, who have bought a Blu-ray player
made by the company and filed a complaint over the past year, to fill in a survey about
whether they are satisfied with the product. This method will most likely suffer from
…
a. Non-probability sampling
b. Coverage error
c. Non-response error
d. Measurement error

38. A bank’s loan officer rates applicants for credit. The ratings are normally
distributed with a mean of 200 and a standard deviation of 50. If an applicant is
randomly selected, find the probability of a rating that is between 200 and 275.
Let P(Z < -0.17) = 0.4332, P(Z < 0) = 0.5, P(Z < 1.5) = 0.9332
a. 0.5
b. 0.9332
c. 0.0668
d. 0.4332
e. None of the other choices is correct.
39. To test the effectiveness of a business school preparation course, 8 students took a
general business test before and after the course. The results are given below:

The number of degrees of freedom is …

a. 8
b. 7
c. 14
d. 13
40. If you want to be 95% confident of estimating the population proportion to within a
sampling error of ± 0.05 and there is historical evidence that the population is
approximately 0.60, what sample size is needed?
Let Z0.025 = 1.96 and Z0.05 = 1.64.
a. 259
b. 20
c. 369
d. 17

41. Which of the following statements is false about the width of a confidence interval
estimate for a proportion?
a. Wider when the sample proportion is 0.80 than when the sample proportion
0.70.
b. None of the other choices is correct.
c. Wider for 97% confidence than for 90% confidence.
d. Wider for a sample size of 100 than for a sample size of 120.

42. Are whites more likely to claim bias? It was found that 60% of the workers were
white, 30% were black and 10% were of other races. Give that a worker was white, the
probability that the worker has claimed bias was 30%. Given that a worker was black,
the probability that the worker had claimed bias was 40%. Given that a worker was
other race, the probability that the worker had claimed bias was 0%. If a randomly
selected worker had claimed bias, what is the probability that the worker white?
a. 0.55
b. 0.65
c. 0.62
d. 0.60

43. In a meat packaging plant, Machine A accounts for 60% of the plant’s output, while
Machine B accounts for 40% of the plant’s output. In total, 4% of the packages are
improperly sealed. Also, 3% of the packages are from Machine A and are improperly
sealed. If a package selected at random is improperly sealed, the probability that it
came from Machine A is …
a. 0.45
b. 0.75
 c. 0.50
d. 0.60

44. The width of each bar in a histogram corresponds to the …

a. Number of observations in each class
b. Midpoint of each class
c. Differences between the boundaries of the class.
d. Percentage of observation in each class

45. An insurance company evaluates many numerical variables about a person before
deciding on an appropriate rate for automobile insurance. A representative from a local
insurance agency selected a random sample of insured drivers and recorded, X, the
number of claims each made in the last 3 years, with the following results:
X f
1 14
2 18
3 12
4 5
5 1
How many total claims are represented in the sample?
a. 50
b. 15
c. 111
d. 250

46. The weekly salaries of teachers in one state are normally distributed with a mean of
$490 and a standard deviation of $45. What is the probability that a randomly selected
teacher earns more than $525 a week?
Let P(Z < 0.78) = 0.7823, P(Z < - 1.28) = 0.1003
a. 0.7823
b. None of the other choices is correct.
c. 0.1003
d. 0.2177
e. 0.2823
47. Health care issues are receiving much attention in both academic and political
arenas. A sociologist recently conducted a survey of citizens over 60 years of age
whose net worth is too high to qualify for Medicaid. The ages of 25 senior citizens
were as follows:
60 61 62 63 64 65 66 68 68 69 70 73 73 74 75 76 76 81 81
82 86 87 89 90 92
Determine the median age of the senior citizens.
a. 73
b. 75
c. 81
d. 70

48. TRUE or FALSE:

As a rule, a value is considered an extreme value if its Z score is greater than -3.
a. True
b. False