CHAPTER SEVEN

Sampling and Sampling Distributions

B 1. Saving time and money are reasons to take a _______________ rather than a
census.

E A. poll
Term B. sample
C. profile
D. Fishbone

D 2. Which of the following is NOT a reason for using a sample, rather than a census?

E A. sampling saves time

Term B. sampling saves money
C. some testing procedures are destructive
D. some testing procedures are deductive

203
204 Test Bank
C 3. Which of the following is a random sampling technique?

E A. judgment sampling
Term B. systematic sampling
C. quota sampling
D. convenience sampling

A 4. Which of the following is a nonrandom sampling technique?

E A. quota sampling
Term B. systematic sampling
C. cluster sampling
D. stratified sampling

B 5. A major limitation of nonrandom samples is __________.

E A. they are more expensive

Term B. they are not appropriate for most statistical methods
C. they require more time
D. they require more planning

D 6. The directory or map from which a sample is taken is called the

______________.

M A. population
Term B. census
C. profile
D. frame

A 7. A business writer wants to assess the Shelby County business community's

attitude toward a proposed value-added tax. He selects his sample from the
Chamber of Commerce membership list. The membership list is ____________.

M A. a frame
BApp B. the writer's target population
C. the writer's sampling distribution
D. a census
 Chapter 7: Sampling and Sampling Distributions 205

B 8. Kristen Ashford purchased the subscribers list for Wind Surfing magazine. She
wants to survey a sample of wind surfers for her mail order business. She chooses
her sample from the Wind Surfing subscribers list. The subscribers list is
____________.

M A. Kristen's target population

BApp B. a frame
C. a census
D. Kristen's sampling distribution

C 9. Catherine Chao, Director of Marketing Research, needs a sample of Kansas City

households to participate in the testing of a new toothpaste package. She plans to
randomly select the households from the residential pages of the telephone
directory. The residential pages of the telephone directory is _________.

M A. Catherine's sampling distribution

BApp B. Catherine's target population
C. a frame
D. a poll

B 10. Financial analyst Larry Potts needs a sample of securities listed on the New York
Stock Exchange. He decides to select the sample from the Wall Street Journal's
"New York Exchange Composite Transactions," an alphabetical listing of all
securities traded on the previous business day. The "New York Exchange
Composite Transactions" is ______________.

M A. a poll
BApp B. a frame
C. Larry's sampling distribution
D. Larry's target population

B 11. The two major categories of sampling methods are _________________.

M A. quota and convenience

Term B. random and nonrandom
C. stratified and cluster
D. proportionate and disproportionate
206 Test Bank
B 12. If every unit of the population has the same probability of being selected to the
sample, then the researcher is probably conducting _______.

E A. nonrandom sampling
Term B. random sampling
C. judgment sampling
D. equivalent sampling

B 13. The most elementary type of random sampling is _______.

E A. stratified sampling
Term B. simple random sampling
C. cluster sampling
D. judgment sampling

D 14. With ______ random sampling, there is homogeneity within a subgroup or

stratum.

M A. judgmental
Term B. simple
C. cluster
D. stratified

B 15. If a researcher selects every kth item from a population of N items, then she is
likely conducting ______ random sampling.

M A. judgmental
Term B. systematic
C. cluster
D. stratified

C 16. A nonrandom sampling technique in which elements are selected for the sample
based on the convenience of the researcher is called ________ sampling.

E A. judgment
Term B. quota
C. convenience
D. error free
 Chapter 7: Sampling and Sampling Distributions 207

B 17. A nonrandom sampling technique which is similar to stratified random sampling

is called _______ sampling.

M A. judgment
Term B. quota
C. convenience
D. error free

A 18. ________ error occurs when, by chance, the sample is not representative of the
population.

E A. Sampling
Term B. Telescoping
C. Detail
D. Nonsampling

D 19. Kristen Ashford purchased the subscribers list for Wind Surfing magazine. She
plans to survey a sample of the subscribers before using the list in her mail order
business. She chooses the first 100 of the 5,000 names. Her sample is a
_________.

E A. simple random sample

BApp B. stratified sample
C. systematic sample
D. convenience sample

C 20. Kristen Ashford purchased the subscribers list for Wind Surfing magazine. She
plans to survey a sample of the subscribers before using the list in her mail order
business. She randomly selects the fourth name as a starting point and then
selects every 50th subsequent name (54, 104, 154, etc.). Her sample is a
_________.

E A. simple random sample

BApp B. stratified sample
C. systematic sample
D. convenience sample
208 Test Bank
A 21. Kristen Ashford purchased the subscribers list for Wind Surfing magazine. She
plans to survey a sample of the subscribers before using the list in her mail order
business. The names are numbered consecutively from 1 to 5,000. Kristen
chooses her sample by selecting four-digit numbers (1 to 5,000) from a random
number table. Her sample is a _________.

E A. simple random sample

BApp B. stratified sample
C. systematic sample
D. convenience sample

C 22. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects
irregularities in the payroll system. She knows that 2,500 payroll vouchers have
been issued since January 1, 2000, and her staff doesn't have time to inspect each
voucher. So, she orders her staff to inspect the last 200 vouchers. Her sample is a
___________.

E A. stratified sample
BApp B. simple random sample
C. convenience sample
D. systematic sample

D 23. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects
irregularities in the payroll system. She knows that 2,500 payroll vouchers have
been issued since January 1, 2000, and her staff doesn't have time to inspect each
voucher. So, she randomly selects 53 as a starting point and orders her staff to
inspect the 53rd voucher and each voucher at an increment of 100 (53, 153, 253,
etc.). Her sample is a ___________.

E A. stratified sample
BApp B. simple random sample
C. convenience sample
D. systematic sample
 Chapter 7: Sampling and Sampling Distributions 209

B 24. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects
irregularities in the payroll system. She knows that 2,500 payroll vouchers have
been issued since January 1, 2000, and her staff doesn't have time to inspect each
voucher. The vouchers are numbered consecutively from 1 to 2,500. Pinky's
staff chooses her sample by selecting four-digit numbers (1 to 2,500) from a
random number table. Her sample is a ___________.

E A. stratified sample
BApp B. simple random sample
C. convenience sample
D. systematic sample

A 25. Financial analyst Larry Potts needs a sample of 100 securities listed on the New
York Stock Exchange. He chooses the first 100 securities listed in the Wall Street
Journal's "New York Exchange Composite Transactions," an alphabetical listing
of all securities traded on the previous business day. Larry's sample is a
____________.

E A. convenience sample
BApp B. simple random sample
C. systematic sample
D. stratified sample

B 26. Financial analyst Larry Potts needs a sample of 100 securities listed on the New
York Stock Exchange. In the current issue of the Wall Street Journal, 2,531
securities are listed in the "New York Exchange Composite Transactions," an
alphabetical listing of all securities traded on the previous business day. Larry
uses a table of random numbers to select 100 numbers between 1 and 2,531. His
sample is a ____________.

E A. quota sample
BApp B. simple random sample
C. systematic sample
D. stratified sample
210 Test Bank
D 27. Financial analyst Larry Potts needs a sample of 100 securities listed on the New
York Stock Exchange. In the current issue of the Wall Street Journal, 2,531
securities are listed in the "New York Exchange Composite Transactions," an
alphabetical listing of all securities traded on the previous business day. Larry
randomly selects the 7th security as a starting point, and selects every 25th
security thereafter (7, 32, 57, etc.). His sample is a ____________.

E A. quota sample
BApp B. simple random sample
C. stratified sample
D. systematic sample

C 28. Financial analyst Larry Potts needs a sample of 100 securities listed on either the
New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX).
According to the Wall Street Journal's "Stock Market Data Bank," 2,531 NYSE
securities and AMEX 746 securities were traded on the previous business day.
Larry directs his staff to randomly select 77 NYSE and 23 AMEX securities. His
sample is a ____________.

M A. disproportionate systematic sample

BApp B. disproportionate stratified sample
C. proportionate stratified sample
D. proportionate systematic sample

A 29. On Saturdays, cars arrive at David Zebda's Scrub and Shine Car Wash at the rate
of 80 cars per hour during the ten-hour shift. David wants a sample of 40
Saturday customers to answer the long version of his quality service
questionnaire. He instructs the Saturday crew to select the first 40 customers. His
sample is a __________.

E A. convenience sample
BApp B. simple random sample
C. systematic sample
D. stratified sample
 Chapter 7: Sampling and Sampling Distributions 211

C 30. On Saturdays, cars arrive at David Zebda's Scrub and Shine Car Wash at the rate
of 80 cars per hour during the ten-hour shift. David wants a sample of 40
Saturday customers to answer the long version of his quality service
questionnaire. He randomly selects 9 as a starting point and instructs the crew to
select the 9th customer and each customer at intervals of 20 ( 9, 29, 49, etc.). His
sample is a __________.

E A. convenience sample
BApp B. simple random sample
C. systematic sample
D. stratified sample

C 31. Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the

service level provided to walk-in customers. Accordingly, he plans a sample of
waiting times for walk-in customers. Albert instructs his staff to record the
waiting times for the first 45 walk-in customers arriving after the noon hour.
Albert's sample is a ________.

E A. simple random sample

BApp B. systematic sample
C. convenience sample
D. stratified sample

B 32. Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the

service level provided to walk-in customers. Accordingly, he plans a sample of
waiting times for walk-in customers. Albert randomly selects 4 as a starting point
and instructs his staff to record the waiting times for the 4th walk-in customer and
every 10th customer thereafter (4, 14, 24, etc.). Albert's sample is a ________.

E A. simple random sample

BApp B. systematic sample
C. convenience sample
D. stratified sample
212 Test Bank
D 33. A carload of palletized aluminum castings has arrived at Mansfield Motor
Manufacturers. The car contains 1,000 pallets of 100 castings each. Mario
Munoz, manager of Quality Assurance, directs the receiving crew to deliver the
127th and 869th pallets to his crew for 100% inspection. Mario randomly
selected 127 and 869 from a table of random numbers. Mario's sample of 200
castings is a _____________.

M A. simple random sample

BApp B. systematic sample
C. stratified sample
D. cluster sample

A 34. A carload of steel rods has arrived at Cybermatic Construction Company. The car
contains 1,000 bundles of 50 rods each. Claude Ong, manager of Quality
Assurance, directs the receiving crew to deliver the 63th and 458th bundles to his
crew for 100% inspection. Claude randomly selected 63 and 458 from a table of
random numbers. Claude's sample of 100 rods is a _____________.

M A. cluster sample
BApp B. simple random sample
C. quota sample
D. systematic sample

D 35. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism

at the Harrison Haulers Plant. Abel knows that absenteeism varies significantly
between departments. For example, workers in the wood shop are absent more
than those in the tuning department and the size of the departments ranges from
40 to 120 workers. He orders a random sample of 10 workers from each of the
six departments. Abel' sample is a ________________.

E A. proportionate systematic sample

BApp B. proportionate stratified sample
C. disproportionate systematic sample
D. disproportionate stratified sample
 Chapter 7: Sampling and Sampling Distributions 213

B 36. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism

at the Harrison Haulers Plant. Abel knows that absenteeism varies significantly
between departments. For example, workers in the wood shop are absent more
than those in the tuning department and the size of the departments ranges from
40 to 120 workers. He orders a random sample of 10% of the workers from each
of the six departments. Abel' sample is a ________________.

E A. proportionate systematic sample

BApp B. proportionate stratified sample
C. disproportionate systematic sample
D. disproportionate stratified sample

B 37. Catherine Chao, Director of Marketing Research, needs a sample of households to

participate in the testing of a new toothpaste package. She chooses thirty-six of
her closest friends. Catherine's sample is a _____________.

E A. cluster sample
BApp B. convenience sample
C. quota sample
D. systematic sample

C 38. Catherine Chao, Director of Marketing Research, needs a sample of households to

participate in the testing of a new toothpaste package. She directs the seven
members of her staff to find five households each. Catherine's sample is a
_____________.

E A. cluster sample
BApp B. proportionate stratified sample
C. quota sample
D. disproportionate stratified sample

A 39. Catherine Chao, Director of Marketing Research, needs a sample of households to

participate in the testing of a new toothpaste package. She narrows the selection
by first randomly selecting 5 census tracts in the city; then the sample is randomly
selected from the five tracts Catherine's sample is a _________.

M A. cluster sample
BApp B. proportionate stratified sample
C. quota sample
D. disproportionate stratified sample
214 Test Bank
D 40. Catherine Chao, Director of Marketing Research, needs a sample of households to
participate in the testing of a new toothpaste package. She estimates there are
approximately 69,000 entries in the residential pages of the telephone directory,
randomly selects 152 as the starting point, and instructs her staff to select every
227th entry. Catherine's sample is a _________.

E A. cluster sample
BApp B. proportionate stratified sample
C. disproportionate stratified sample
D. systematic sample

B 41. The eight employees of the Tuning Department and their “years of experience”
are listed in the following table.
Employee A B C D E F G H
Experience (years) 10 2 1 1 15 7 4 8
If a sample of two employees is selected with replacement, the number of
elementary outcomes in the sample space is _______________.

M A. 56
BCalc B. 64
C. 336
D. 512

D 42. The eight employees of the Tuning Department and their “years of experience”
are listed in the following table.
Employee A B C D E F G H
Experience (years) 10 2 1 1 15 7 4 8
If a sample of three employees is selected with replacement, the number of
elementary outcomes in the sample space is _______________.

M A. 56
BCalc B. 64
C. 336
D. 512
 Chapter 7: Sampling and Sampling Distributions 215

B 43. The eight employees of the Tuning Department and their “years of experience”
are listed in the following table.
Employee A B C D E F G H
Experience (years) 10 2 1 1 15 7 4 8
If a sample of two employees is selected with replacement, which of the following
is not a possible value of the sample mean years of experience?

M A. 2.5
BCalc B. 6.5
C. 8.5
D. 12.5

A 44. The eight employees of the Tuning Department and their “years of experience”
are listed in the following table.
Employee A B C D E F G H
Experience (years) 10 2 1 1 15 7 4 8
If a sample of two employees is selected without replacement, the number of
elementary outcomes in the sample space is _______________.

M A. 56
BCalc B. 64
C. 336
D. 512

C 45. The eight employees of the Tuning Department and their “years of experience”
are listed in the following table.
Employee A B C D E F G H
Experience (years) 10 2 1 1 15 7 4 8
If a sample of three employees is selected without replacement, the number of
elementary outcomes in the sample space is _______________.

M A. 56
BCalc B. 64
C. 336
D. 512
216 Test Bank
D 46. The eight employees of the Tuning Department and their “years of experience”
are listed in the following table.
Employee A B C D E F G H
Experience (years) 10 2 1 1 15 7 4 8
If a sample of two employees is selected without replacement, which of the
following is not a possible value of the sample mean years of experience?

M A. 9
BCalc B. 12.5
C. 4
D. 2

B 47. A sampling distribution is a distribution of _______________.

E A. excess profits to selected shareholders.

Term B. a sample statistic, such as, x .
C. a population parameter, such as, µ.
D. a population attribute, such as, employee’s age.

D 48. The standard deviation of a sampling distribution is commonly called _______.

E A. statistical leverage.
Term B. the uniform spread.
C. statistical margin.
D. the standard error.

A 49. The standard deviation of the sampling distribution of x is commonly called the
_______ of the mean.

E A. standard error
Term B. uniform spread
C. statistical margin
D. statistical leverage

B 50.  is commonly called the

The standard deviation of the sampling distribution of p
_______ of the proportion.

E A. uniform spread
Term B. standard error
C. statistical margin
D. statistical leverage

A 51. The central limit theorem states that if n is large enough, the distribution of the
 Chapter 7: Sampling and Sampling Distributions 217

sample means is _____________ distributed regardless of the shape of the

population.

E A. approximately normally
Term B. uniformly
C. randomly
D. nonrandomly

B 52. According to the central limit theorem, the mean of the sample means for a given
size of sample is equal to _______.

E A. the population mean divided by n

Term B. the population mean
C. the population mean divided by the square root of n
D. zero

B 53. The smallest sample size that should be used when relying on the central limit
theorem is __________.

E A. 20
Term B. 30
C. 40
D. 50

C 54. The central limit theorem is applicable only __________________.

E A. to symmetrical populations
Term B. to unimodal populations
C. when the sample size is 30 or more
D. to leptokurtic populations

D 55. The central limit theorem is applicable __________________.

M A. only to symmetrical populations

Term B. only to unimodal populations
C. when the sample size is 20 or more
D. regardless of the shape of the population distribution
218 Test Bank
A 56. If the sample size is sufficiently large, according to the central limit theorem, the
sample means are approximately ____________________.

E A. normally distributed
Term B. exponentially distributed
C. uniformly distributed
D. geometrically distributed

C 57. According to the central limit theorem, if a sample of size 100 is drawn from a
population with a mean of 80, the mean of all sample means would equal
_______.

E A. 0.80
Calc B. 8
C. 80
D. 100

B 58. According to the central limit theorem, if a sample of size 64 is drawn from a
population with a mean of 56, the mean of all sample means would equal
_______.

E A. 7.00
Calc B. 56.00
C. 64.00
D. 0.875

B 59. According to the central limit theorem, if a sample of size 100 is drawn from a
population with a standard deviation of 80, the standard deviation of sample
means would equal _______.

E A. 0.80
Calc B. 8
C. 80
D. 800

A 60. According to the central limit theorem, if a sample of size 64 is drawn from a
population with a standard deviation of 80, the standard deviation of sample
means would equal _______.

E A. 10.000
Calc B. 1.250
C. 0.125
D. 0.800
 Chapter 7: Sampling and Sampling Distributions 219

B 61. Increasing the sample size causes the standard error of the mean to ________.

E A. destabilize in value
Term B. decrease in value
C. seek market equilibrium
D. increase in value

D 62. Increasing the sample size causes the sampling distribution of x to ________.

M A. shift to the right

Term B. shift to the left
C. have more dispersion
D. have less dispersion

D 63. According to the central limit theorem, for samples of size 64 drawn from a
population with µ = 800 and σ = 56, the mean of the sampling distribution of
sample means would equal _______.

E A. 7
Calc B. 8
C. 100
D. 800

A 64. According to the central limit theorem, for samples of size 64 drawn from a
population with µ = 800 and σ = 56, the standard deviation of the sampling
distribution of sample means would equal _______.

E A. 7
Calc B. 8
C. 100
D. 800

A 65. According to the central limit theorem, for samples of size 169 drawn from a
population with µ = 1,014 and σ = 65, the mean of the sampling distribution of
sample means would equal _______.

E A. 1,014
Calc B. 65
C. 5
D. 6

C 66. According to the central limit theorem, for samples of size 169 drawn from a
220 Test Bank
population with µ = 1,014 and σ = 65, the standard deviation of the sampling
distribution of sample means would equal _______.

E A. 1,014
Calc B. 65
C. 5
D. 6

A 67. Suppose a population has a mean of 90 and a standard deviation of 28. If a

random sample of size 49 is drawn from the population, the probability of
drawing a sample with a mean of more than 95 is _______.

M A. 0.1056
Calc B. 0.3944
C. 0.4286
D. 0.8944

B 68. Suppose a population has a mean of 90 and a standard deviation of 28. If a

random sample of size 49 is drawn from the population, the probability of
drawing a sample with a mean of less than 84 is _______.

M A. 0.9332
Calc B. 0.0668
C. 0.4332
D. 0.8664

C 69. Suppose a population has a mean of 90 and a standard deviation of 28. If a

random sample of size 49 is drawn from the population, the probability of
drawing a sample with a mean between 85 and 95 is _______.

M A. 0.1056
Calc B. 0.3944
C. 0.7888
D. 0.2112
 Chapter 7: Sampling and Sampling Distributions 221

A 70. Suppose a population has a mean of 90 and a standard deviation of 28. If a

random sample of size 49 is drawn from the population, the probability of
drawing a sample with a mean between 80 and 100 is _______.

M A. 0.9876
Calc B. 0.0124
C. 0.4938
D. 0.0062

D 71. Suppose a population has a mean of 400 and a standard deviation of 24. If a
random sample of size 144 is drawn from the population, the probability of
drawing a sample with a mean of more than 404.5 is _______.

M A. 0.0139
Calc B. 0.4861
C. 0.4878
D. 0.0122

A 72. Suppose a population has a mean of 400 and a standard deviation of 24. If a
random sample of size 144 is drawn from the population, the probability of
drawing a sample with a mean between 395.5 and 404.5 is _______.

M A. 0.9756
Calc B. 0.0244
C. 0.0278
D. 0.9722

C 73. Suppose a population has a mean of 400 and a standard deviation of 24. If a
random sample of size 144 is drawn from the population, the probability of
drawing a sample with a mean less than 402 is _______.

M A. 0.3413
Calc B. 0.6826
C. 0.8413
D. 0.1587
222 Test Bank
D 74. Suppose a population has a mean of 450 and a variance of 900. If a random
sample is size 100 is drawn from the population, the probability that the sample
mean is between 448 and 453 is _______.

M A. 0.4972
Calc B. 0.6826
C. 0.4101
D. 0.5899

C 75. Suppose a population has a mean of 870 and a variance of 1,600. If a random
sample is size 64 is drawn from the population, the probability that the sample
mean is between 860 and 875 is _______.

M A. 0.9544
Calc B. 0.6826
C. 0.8185
D. 0.5899

A 76. Suppose a population has a mean of 870 and a variance of 8,100. If a random
sample is size 36 is drawn from the population, the probability that the sample
mean is between 840 and 900 is _______.

M A. 0.9544
Calc B. 0.6826
C. 0.8185
D. 0.5899

B 77. Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the

service level provided to walk-in customers. Accordingly, he plans a sample of
waiting times for walk-in customers. If the population of waiting times has a
mean of 15 minutes and a standard deviation of 4 minutes, the probability that
Albert's sample of 64 will have a mean less than 14 minutes is a ________.

M A. 0.4772
BCalc B. 0.0228
C. 0.9772
D. 0.9544
 Chapter 7: Sampling and Sampling Distributions 223

C 78. Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the

service level provided to walk-in customers. Accordingly, he plans a sample of
waiting times for walk-in customers. If the population of waiting times has a
mean of 15 minutes and a standard deviation of 4 minutes, the probability that
Albert's sample of 64 will have a mean less than 16 minutes is a ________.

M A. 0.4772
BCalc B. 0.0228
C. 0.9772
D. 0.9544

A 79. Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the

service level provided to walk-in customers. Accordingly, he plans a sample of
waiting times for walk-in customers. If the population of waiting times has a
mean of 15 minutes and a standard deviation of 4 minutes, the probability that
Albert's sample of 64 will have a mean between 13.5 and 16.5 minutes is a
________.

M A. 0.9974
BCalc B. 0.4987
C. 0.9772
D. 0.4772

B 80. A carload of steel rods has arrived at Cybermatic Construction Company. The car
contains 50,000 rods. Claude Ong, manager of Quality Assurance, directs his
crew measure the lengths of 100 randomly selected rods. If the population of rods
have a mean length of 120 inches and a standard deviation of 0.05 inch, the
probability that Claude's sample has a mean greater than 120.0125 inches is
_____________.

M A. 0.0124
BCalc B. 0.0062
C. 0.4938
D. 0.9752
224 Test Bank
D 81. A carload of steel rods has arrived at Cybermatic Construction Company. The car
contains 50,000 rods. Claude Ong, manager of Quality Assurance, directs his
crew measure the lengths of 100 randomly selected rods. If the population of rods
have a mean length of 120 inches and a standard deviation of 0.05 inch, the
probability that Claude's sample has a mean less than 119.985 inches is
_____________.

M A. 0.9974
BCalc B. 0.0026
C. 0.4987
D. 0.0013

A 82. A carload of steel rods has arrived at Cybermatic Construction Company. The car
contains 50,000 rods. Claude Ong, manager of Quality Assurance, directs his
crew measure the lengths of 100 randomly selected rods. If the population of rods
have a mean length of 120 inches and a standard deviation of 0.05 inch, the
probability that Claude's sample has a mean less than 119.985 and 120.0125
inches is ____________.

M A. 0.9925
BCalc B. 0.9974
C. 0.9876
D. 0.9544

A 83. Increasing the sample size causes the standard error of the proportion to _____.

E A. decrease in value
Term B. destabilize in value
C. oscillate
D. grow larger

B 84.  to ________.
Increasing the sample size causes the sampling distribution of p

M A. shift to the right one standard deviation

Term B. have less dispersion
C. have more dispersion
D. shift to the left one standard deviation
 Chapter 7: Sampling and Sampling Distributions 225

C 85. The nine employees of the Information Technologies Center and whether they
possess 'mission critical skills' are listed in the following table.
Employee A B C D E F G H I
Mission Critical No No Yes No Yes No No No No
If a sample of two employees is selected without replacement, the number of
elementary outcomes in the sample space is _______________.

M A. 384
BCalc B. 256
C. 72
D. 81

D 86. The nine employees of the Information Technologies Center and whether they
possess 'mission critical skills' are listed in the following table.
Employee A B C D E F G H I
Mission Critical No No Yes No Yes No No No No
If a sample of two employees is selected with replacement, the number of
elementary outcomes in the sample space is _______________.

M A. 384
BCalc B. 256
C. 72
D. 81

C 87. The eight employees of the Information Technologies Center and whether they
possess 'mission critical skills' are listed in the following table.
Employee A B C D E F G H I
Mission Critical No No Yes No Yes No No No No
If a sample of two employees is selected without replacement, which of the
following is not a possible sample proportion of "mission critical"?

M A. 1.00
BCalc B. 0.00
C. 0.22
D. 0.50
226 Test Bank
C 88. Suppose 40% of the population possess a given characteristic. If a random sample
of size 300 is drawn from the population, then the probability that 44% or fewer
of the sample possess the characteristic is _______.

M A. 0.0793
Calc B. 0.4207
C. 0.9207
D. 1.0000

A 89. Suppose 30% of a population possess a given characteristic. If a random sample

of size 1200 is drawn from the population, then the probability that less than 348
possess that characteristic is _______.

M A. 0.2236
Calc B. 0.2764
C. 0.2900
D. 0.7764

B 90. If the population proportion is 0.90 and a sample of size 64 is taken, what is the
probability that the sample proportion is less than 0.88?

M A. 0.2019
Calc B. 0.2981
C. 0.5300
D. 0.7019

D 91. If the population proportion is 0.90 and a sample of size 64 is taken, what is the
probability that the sample proportion is more than 0.89?

A. 0.1064
M B. 0.2700
Calc C. 0.3936
D. 0.6064

B 92. Suppose 40% of all college students have a computer at home and a sample of 64
is taken. What is the probability that more than 30 of those in the sample have a
computer at home?

M A. 0.3686
Calc B. 0.1314
C. 0.8686
D. 0.6314

C 93. Suppose 40% of all college students have a computer at home and a sample of
 Chapter 7: Sampling and Sampling Distributions 227

100 is taken. What is the probability that more than 50 of those in the sample
have a computer at home?

M A. 0.4793
Calc B. 0.9793
C. 0.0207
D. 0.5207

B 94. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects
irregularities in the payroll system. If 10% of the 5,000 payroll vouchers issued
since January 1, 2000, have irregularities, the probability that Pinky's random
sample of 200 vouchers will have a sample proportion greater than .06 is
___________.

M A. 0.4706
Calc B. 0.9706
C. 0.0588
D. 0.9412

D 95. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects
irregularities in the payroll system. If 10% of the 5,000 payroll vouchers issued
since January 1, 2000, have irregularities, the probability that Pinky's random
sample of 200 vouchers will have a sample proportion .06 and .14 is
___________.

H A. 0.4706
BCalc B. 0.9706
C. 0.0588
D. 0.9412

D 96. Catherine Chao, Director of Marketing Research, needs a sample of Kansas City
households to participate in the testing of a new toothpaste package. If 40% of
the households in Kansas City prefer the new package, the probability that
Catherine's random sample of 300 households will have a sample proportion
greater than 0.45 is ___________.

M A. 0.9232
BCalc B. 0.0768
C. 0.4616
D. 0.0384

A 97. Catherine Chao, Director of Marketing Research, needs a sample of Kansas City
households to participate in the testing of a new toothpaste package. If 40% of
228 Test Bank
the households in Kansas City prefer the new package, the probability that
Catherine's random sample of 300 households will have a sample proportion
between 0.35 and 0.45 is ___________.

H A. 0.9232
BCalc B. 0.0768
C. 0.4616
D. 0.0384
 Chapter 7: Sampling and Sampling Distributions 229

98. Uriah Utley, a managing partner with Ultra Properties, feels that customer
satisfaction is the key to success in the residential real estate business.
Accordingly, he is considering a survey of recent purchasers of residential
properties. He wants the survey to focus on "what my agents and my competitors'
agents are doing right and doing wrong." He has access to and the legal right to
use the Multiple Listing Service data base which contains numerous data items on
each property listed by member realtors. These items include: (1) the listing
agency, (2) the selling agency, and (3) the address of the property.

Describe the target population and a sampling plan for Uriah's survey. Note any
assumptions and limitations of the plan.

Should he share the survey results with all other realtors? Why or why not?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
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230 Test Bank
99. Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB), is
concerned about the default rate on personal loans at the 30 AFB member banks.
Ten percent of the 30,000 personal loans approved last year were in default within
six months of approval. Ophelia wants the application and approval process
"tightened up and streamlined to weed out bad risks and provide fast turn-around
to all applicants." She wants a short credit application which can be processed
rapidly, yet is an excellent predictor of credit worthiness.

Describe the target population and a sampling plan for Ophelia's survey. Note
any assumptions and limitations of the plan.

Are last year's 30,000 applications relevant to this survey? Should Ophelia
segment the market? What variables could she use?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
 Chapter 7: Sampling and Sampling Distributions 231

100. Melton Leach, VP of Marketing and Customer Services at Monticello Prudential

Bank (MPB), is interested and concerned about the various implications of online
banking. If MPB doesn't implement online banking, will it lose a significant
market share to online banks? If MPB implements online banking, will its
customer base increase enough to offset the additional costs? Should MPB charge
a fee for the online services? If so, how much? Should MPB use propriety
telephone circuits or the Internet? Would online banking change the character of
MPB, and diminish its appeal to customers who prefer the personal touch of face-
to-face banking?

Describe the target population(s) and a sampling plan for Melton. Note any
assumptions and limitations of the plan.

Which population attributes are relevant to Melton's problem?

Should Melton segment the market? What variables could he use?

M
BApp
232 Test Bank
101. Global Financial Services (GFS) provides financial services to consumer and
business clients through a network of offices located in the United States,
Australia, Europe, and the Pacific Rim. Its assortment of financial services is rich
and varied; time deposits, unsecured personal loans, and home mortgage loans are
examples of its consumer services; while its business services include venture
capital, construction loans, receivables factoring, and inventory floorplans.

Internet e-mail is a convenient means of communications, both internally between

branch offices, and externally between employees and clients. Each employee
has an e-mail account on one of the company's e-mail servers. (E-mail servers are
located at five of GFS's data centers.) The account includes an electronic inbox
and an electronic sent-mail box. Messages are stored chronologically in the
respective mailbox.

Elwin Osbourne, Chief Information Officer at GFS, is concerned about excessive

employee abuse of the corporation's Internet e-mail resources.

Describe the target population(s) and a sampling plan for Elwin. Note any
assumptions and limitations of the plan.

Which population attributes are relevant to Elwin's problem?

Should Elwin stratify the population? What variables could he use?

How could Elwin use cluster sampling? What conditions would make cluster
sampling appropriate for his study.
M
BApp