Page 1 of 10 Stat 230 - Business Statistics: Test 2 Instructor: Dr T Fall Term 2-2011 Name:

Multiple-choice: To check a box click on it. Click again to delete the check if you want to change your answer. Check on only one box in each question. There are 30 problems for 2 points each for 60 points total. Consider the following to answer the next four questions. Below is a histogram and the five number summary for salaries (in $) for a sample of U.S. marketing managers.
Hi stogr am of Mk tg Manager S alar i es
12 10 8 6 4 2 0

Frequency

60000

80000 100000 Mkt g Manager Salaries

120000

Min 4636 0

Q1 6969 3

Median 77020

Q3 9175 0

Max 129420

01. The shape of this distribution is A. symmetric. B. bimodal. C. right skewed. D. left skewed. E. normal.

Page 2 of 10 02. The most appropriate measure of central tendency for these data is the A. B. C. D. E. Median. Mean. Mode. Range. Standard deviation.

03. The IQR for these data is A. B. C. D. E. $83,060. $22,057. $69,693 $77.020 $14,566

04. Suppose the marketing manager who was earning $129,420 got a raise and is now earning $140,000. Which of the following statement is true? A. B. C. D. E. The mean would increase. The median would increase. The range would increase. Both A and C. All of the above

05. One of the most widely used measures of dispersion is A. the mean B. the range C. the z-score D. the standard deviation E. the IQR

The following table contains data from a study of two airlines that fly to Small Town, USA. Use this information to answer the next two questions. Flights on time Blue Airline Red Airline 33 43 Flights Late 7 17

Page 3 of 10

06. If one flight is selected at random, what is the probability that it arrived on time? A. B. C. D. E. 43/100 = 0.43 24/100 = 0.24 76/100 = 0.76 33/100 = 0.33 None of the above

07. If one flight is selected at random, what is the probability that it arrived on time, given that it was a Red Airline flight? A. B. C. D. E. 43/100 = 0.43 43/60 = 0.72 43/76 = 0.57 76/100 = 0.76 None of the above

Use the data in the table to answer the next three questions. The table below shows closing share prices for a small sample of companies. COMPANY 3M Dental Products Tyco Electronics Power Systems Kyocera America Inc. Pfizer Inc. Xerox Company Northrop Grumman Corporation Lockheed Martin Maritime Systems Sony DADC Matsushita Electronic Components Foster Wheeler Environmental Corp. 08. The mean closing share price is A. $31.23 B. $44.65 C. $56.99 D. $62.19 E. $75.77 CLOSING SHARE PRICE 08/07 86.95 47.45 94.10 22.39 17.56 75.81 100.17 51.91 17.91 55.67

Page 4 of 10 09. The standard deviation in closing share prices is A. B. C. D. E. $31.43 $44.65 $56.99 $62.19 $75.77

10. The z score for the share price for Matsushita Electronic Components is A. B. C. D. E. 1.24 2.34 -2.34 -3.00 -1.24

Consider the following to answer the next two questions. A consumer research group investigating the relationship between the price of meat (per pound) and the fat content (grams) gathered data that produced the following scatterplot.
S catterpl ot of Fat Gr ams v s P r i ce/ l b
20

15 Fat Gr ams

10

0 2 4 6 Pr ice/ lb 8 10 12

Page 5 of 10 11. Which best describes the association between the price of meat and fat content? A. B. C. D. E. Negative, strong. Negative, weak. Positive, strong. Positive, weak. No apparent association.

12. If the point in the lower left hand corner ($2.00 per pound, 6 grams of fat) is removed, would the correlation most likely? A. B. C. D. E. Remain the same. Become stronger negative. Become weaker negative. Become positive. Become zero.

Consider the following to answer the next four questions. A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many pounds of each variety of coffee were sold last month. The data are shown in the table below. PRICE PER POUND $ 3.99 $ 5.99 $ 7.00 $ 12.00 $ 4.50 $ 7.50 $ 15.00 $ 10.00 $ 12.50 $ 8.99 POUNDS SOLD 75 60 65 45 80 70 25 35 40 50

13. The slope of the regression line is A. B. C. D. E. 95.47 0.858 -4.684 -0.858 -8.999

Page 6 of 10 14. The y-intercept of the regression line is A. B. C. D. E. 95.47 0.858 -4.684 -0.858 -8.999

15. What percent of the variability in the number of pounds of coffee sold per week can be explained by price? A. B. C. D. E. 95.47% 100% 85.8% 55.6% 4.68%

16. Consider the Standard Normal distribution. Find P(z > 0.59) A. B. C. D. E. 0.7224 0.2190 0.2224 0.2776 None of the above

17. A certain grade egg must weigh at least 2 oz. If the weights of eggs are normally distributed with a mean of 1.5 oz and a standard deviation of 0.4 oz, approximately how many eggs in a random sample of 22 dozen would you expect to weigh more than 2 oz? A. B. C. D. E. 28 43 104 2 None of the above

18. Consider the Standard Normal curve. Find the value of z such that the area to the right of z is 67% of the total area. A. B. C. D. E. 0.44 -0.44 1.00 -1.50 None of the above

Page 7 of 10 19. Assume that womens heights are normally distributed with mean 63.6 inches and standard deviation 2.5 inches. Find the value for the 3rd quartile Q3. A. B. C. D. E. 65.3 in 66.1 in 67.8 in 64.3 in None of the above

20. The scores on a certain test are normally distributed with mean 61 and standard deviation 3. What is the probability that a sample of 100 students will have a mean score of at least 61.3? A. B. C. D. E. 0.3174 0.3413 0.8413 0.1587 None of the above

21. Suppose we draw all possible samples of a given size n from a large population that is not normally distributed. Then the distribution of the samples means will A. B. C. D. E. be skewed be skewed to the right be skewed to the left be normal approach a normal distribution as the sample size n increases.

Consider the following to answer the next two questions. At a local manufacturing plant, employees must complete new machine set ups within 30 minutes. New machine set-up times can be described by a normal model with a mean of 22 minutes and a standard deviation of 4 minutes. 22. What percent of new machine set ups take more than 30 minutes? A. B. C. D. E. 97.72% 22.80% 2.28% 52.28% None of the above

Page 8 of 10 23. The typical worker needs five minutes to adjust to their surroundings before beginning their duties. What percent of new machine set ups are completed in less than 25 minutes to allow for this? A. B. C. D. E. 77.34% 77.04% 22.66% 77.64% None of the above

Consider the following to answer the next two questions: According to a recent survey, about 33% of Americans polled said that they would likely purchase reusable cloth bags for groceries in order to reduce plastic waste. Suppose 45 shoppers are interviewed at a local supermarket. 24. Which of the following statements is (are) true about the sampling distribution of the sample proportion? A. B. C. D. E. the sampling distribution can be described by the normal model. the mean of the sampling distribution is 0.33. the standard deviation of the sampling distribution is 0.07. all of the above none of the above

25. What is the probability that less than 12 shoppers will say that they are likely to purchase reusable cloth bags for groceries? A. B. C. D. E. -0.900 0.900 0.267 0.816 0.184

Consider the following to answer the next four questions. One division of a large defense contractor manufactures telecommunication equipment for the military. This division reports that 12% of non-electrical components are reworked. Management wants to determine if this percentage is the same as the percentage rework for electrical components manufactured by the company. The Quality Control Department plans to check a random sample of the over 10,000 electrical components manufactured across all divisions.

Page 9 of 10 26. The Quality Control Department wants to estimate the true percentage of rework for electrical components to within 4%, with 99% confidence. How many components should they sample? A. B. C. D. E. 651 1000 344 438 579

27. They actually select a random sample of 450 electrical components and find that 46 of those had to be reworked. The 99% confidence interval is A. B. C. D. E. 0.0654, 0.1390 0.0805, 0.1595 0.0763, 0.1277 0.0541, 0.1499 None of the above.

28. The 95% confidence interval based on this data is .0742 to .1302. Which of the following is the correct interpretation? A. The percentage of electronic components that are reworked is between 7.4% and 13.0%.

B. We are 95% confident that between 7.4% and 13.0% of electrical components are reworked. C. The margin of error for the true percentage of electrical components that are reworked is between 7.4% and 13.0%. D. All samples of size 450 will yield a percentage of reworked electrical components that falls within 7.4% and 13.0%. E. None of the above.

29. Based on the 95% confidence interval, should the Quality Control Department conclude that the percentage of rework for the electrical components is lower than the rate of 12% for nonelectrical components? A. B. C. D. E. Yes, because the lower limit of the confidence interval is 7.4%. Yes, because 12% is contained with the 95% confidence interval. No, because 12% is contained with the 95% confidence interval. No, because the upper limit of the confidence interval is 13.0%. None of the above.

Page 10 of 10 30. All else being equal, increasing the level of confidence desired will A. B. C. D. E. Tighten the confidence interval. Decrease the margin of error. Increase precision. Increase the margin of error. Both A and D