Sample Exam

SECTION 1: Multiple Choice questions

1. Which of the following is a categorical variable?

A) Tire pressure
B) Bank account balance
C) Daily sales in a store
D) Eye color
2. Gender and state of birth are examples of which type of data?

A) Discrete
B) Continuous
C) Categorical
D) Ordinal

THE NEXT FIFTEEN QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

In a recent survey, respondents were classified according to their gender,
marital status, and geographic location. These data are summarized in the
following cross table:
Single Single Married Married Row Total
Female
Male Female Male
Northeast 12 17 22 10 61
South 31 26 8 23 88
Midwest 45 33 52 38 168
West 34 19 24 13 90
Column 122 95 99 84 400
Total

3. What percentage of the respondents were single and from the Northeast?
A) 0.543
B) 0.073
C) 0.475
D) 0.134

4. What percentage of the respondents was married?

 A) 0.458
B) 0.210
C) 0.248
D) 0.078
5. For the following scatter plot, what would be your best estimate of the correlation
coefficient?

A) 1.0
B) 0.7
C) 0.3
D)0.1

80
70
60
50
40
30
20
10
0
30 40 50 60 70 80

6. A professor collected data on the number of absences in an introductory

statistics class of 100 students over the course of a semester. The data are
summarized below.

# of 0 1 2 3 4 5 6
Absences
# of 5 13 24 23 17 11 7
Students

What is the weighted mean number of absences per semester?

A) 3.14
B) 2.0
C) 2.95
D) 3.07
7. Over the past 10 years, the return on Stock A has averaged 10.4% with a
standard deviation of 3.1%. The return on Stock B has averaged 4.6% with a
standard deviation of 0.8%. Which of the following statements is true?
 A) Stock A has smaller relative variation than Stock B.
B) Stock B has smaller relative variation than Stock A.
C) Both stocks exhibit the same relative variation.
D) Unable to tell with the given information.
The following data represent a sample of 10 scores on a statistics quiz: 16, 16, 16, 16,
16, 18, 18, 20, 20, and 20.
8. The mean score is
A) 17.4
B) 15.8
C) 12.2
D) 10.4
9. The median score is
A) 16
B) 17
C) 18
D) 19
10. Consider the following probability distribution. Which of the following is true?

x 0 1 2 3 4 5 6
P(x) 0.07 0.19 0.23 0.17 0.16 0.14 0.04

A) P(X > 3) = 0.51

B) P(2 X 5) = 0.33
C) P(X 3) = 0.51
D) P(X < 6) =1
Consider the following probability distribution function.

x 0 1 2 3 4 5 6
P(x) 0.07 0.19 0.23 0.17 0.16 0.14 0.04

11. What is the expected value of X?

A) 2.74
B) 0.46
C) 1.78
D) 3.02

12. What is the standard deviation of X?

 A) 13.25
B) 3.64
C) 1.62
D) 4.13

13. Let the random variable Z follow a standard normal distribution. Find the value k,
such that P(Z > k) = 0.73.

A) 0.27
B) 0.73
C) –0.16
D) -0.61
14. Let the random variable Z follow a standard normal distribution. Find P(-2.21 < Z
< 0).

A) 0.9864
B) 0.4864
C) 0.0136
D) 0.5136

15. One normal distribution has a mean of 6 and a standard deviation of 3. A second
normal distribution has a mean of 8 and a standard deviation of 2. Which of the
following statements is true?
A) The width of the first distribution is wider than the second distribution
B) The central location of the first distribution is higher than the second
distribution
C) The dispersions of both distributions are the same
D) The locations of both distributions are the same
16. A 95% confidence interval estimate for a population mean is determined to be
65.48 to 76.52. If a 80% confidence interval for is constructed, it must be:
A) wider than the 95% confidence interval
B) the same as the 95% confidence interval
C) narrower than the 95% confidence interval
D) There is not enough information to answer this question
17. A sample of 50 students was taken from Utah Valley University (UVU). These
students spent an average of $175 on books this semester, with a standard
deviation of $25. A 95% confidence interval for the average amount of money
spent on books for all students at UVU would be:
A) 175 3.47
B) 170 6.93
C) 170 7.11
D) 170 3.56
The sales representative for a manufacturer of a new product claims that the product
will increase output per machine by 29 units per hour. A line manager installs the
product on 15 of the machines, and finds that the average increase was only 26 with a
standard deviation of 6.2.

18. What are the appropriate null and alternative hypotheses?

A) : = 29 29
B) : 29 < 29
C) : = 29 > 29
D) : > 29 29

19. Using a 5% significance level, which of the following statements is true?

A) Reject if t statistic < 1.771
B) Reject if |t statistic| > 2.16
C) Reject if t statistic < -1.771
D) Reject if t statistic < -2.16
20. A regression analysis between sales (in $1000) and advertising (in $) resulted in
the following least squares line: ^y = 80,000 + 4x. This implies that:
A) an increase of $1 in advertising is expected to result in an increase of $4 in
sales
B) an increase $4 in advertising is expected to result in an increase of $4,000 in
sales
C) an increase of $1 in advertising is expected to result in an increase of
$80,004 in sales
D) an increase of $1 in advertising is expected to result in an increase of $4,000
in sales

21. In a regression problem, if the coefficient of determination is 0.98, this means

that:
A) 98% of the y values are positive.
B) 98% of the variation in y can be explained by the variation in x.
C) 98% of the y values are predicted correctly by the model.
D) None of these choices.
A real estate builder wishes to determine how house size (House) is influenced by
family income (Income), family size (Size), and education of the head of household
(School). House size is measured in hundreds of square feet, income is measured in
thousands of dollars, and education is in years. The builder randomly selected 50
families and ran the multiple regression. Microsoft Excel output is provided below:

SUMMARY OUTPUT
 Regression Statistics
Multiple R 0.865
R Square 0.748
Adjusted R Square 0.726
Observations 50

Coeff StdError t Stat P-value

Intercept – 1.6335 5.8078 – 0.281 0.7798
Income 0.4485 0.1137 3.9545 0.0003
Size 4.2615 0.8062 5.286 0.0001
School – 0.6517 0.4319 – 1.509 0.1383

22. Referring to Table 14-4, what fraction of the variability in house size is explained
by income, size of family, and education?
A) 27.0%
B) 33.4%
C) 74.8%
D) 86.5%
23. Referring to Table 14-4, which of the independent variables in the model are
significant at the 2% level?
A) Income, Size, School
B) Income, Size
C) Size, School
D) Income, School
24. Referring to Table 14-4, at the 0.01 level of significance, what conclusion should
the builder draw regarding the inclusion of Income in the regression model?
A) Income is significant in explaining house size and should be included in the
model because its p-value is less than 0.01.
B) Income is significant in explaining house size and should be included in the
model because its p-value is more than 0.01.
C) Income is not significant in explaining house size and should not be included
in the model because its p-value is less than 0.01.
D) Income is not significant in explaining house size and should not be included
in the model because its p-value is more than 0.01.
25. Referring to Table 14-4, what is the predicted house size (in hundreds of square
feet) for an individual earning an annual income of $40,000, having a family size
of 4, and going to school a total of 13 years?
A) 11.43
 B) 15.15
C) 24.88
D) 53.87

SECTION 2: PROBLEM SOLVING QUESTION

Answer the following questions by showing the way you find the solution
Question 1:
The following table lists the probability distribution of the number of calls coming into a
call center each hour. If each call takes 10 minutes to process, what is the mean and
standard deviation of the number of minutes the operators are answering questions
each hour?

x 2 3 4 5 6 7
P(x) 0.07 0.11 0.23 0.31 0.18 0.1

Question 2:
Inventory Problem: Assuming the demand for a product A of a supermarket is a random
variable with average demand of 120 tons a day and standard deviation of 25 tons a
day.
a) If the supermarket order 150 tons a day, what is the probability of stock out?
If the manager of supermarket wants a probability of stock out to be 5%, what is the
order quantity a day?

Question 3:
The Daytona Beach Tourism Commission is interested in the average amount of money
a typical college student spends per day during spring break. They survey 28 students
and find that the mean spending is $60.57 with a standard deviation of $15.32.
a) Develop a 95% confidence interval for the population mean daily spending.
b) Interpret the confidence level in the previous question.
Question 4:
In a random sample of 200 music industry management majors, 80 rated a sense of
humor as very important trait to their career performance. The same view was held by
100 of an independent random sample of 280 professional golf management majors.
Test at the 5% level against a two-sided alternative the null hypothesis that the
population proportions of music industry management and professional golf
management majors who rate a sense of humor as very important are the same.