Final test (SB)

28. Which of the following statements is correct?

A. A parameter is a measure that is calculated from a sample.

B. Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data.
C. For day-to-day business data analysis, most firms rely on a large staff of expert statisticians.
D. A statistical test result that is significant also has practical importance.

Check definitions (parameter, sample, statistics, pitfalls) and uses of statistics.

29. Which is least likely to be an application where statistics will be useful?

A. Predicting whether an airfare is likely to rise or fall

B. Designing the most desirable features for a ski pass
C. Deciding whether offering Rice Krispies improves restaurant sales
D. Choosing the wording of a corporate policy prohibiting smoking

Policy wording is probably up to writers.

30. Because 25 percent of the students in my morning statistics class watch eight or more hours of
television a week, I conclude that 25 percent of all students at the university watch eight or more
hours of television a week. The most important logical weakness of this conclusion would be:

A. relying on any sample instead of surveying every student.

B. using a sample that may not be representative of all students.
C. failing to correct for unconscious interviewer bias.
D. assuming cause and effect where none exists.

Generalizing from a nonrandom sample is risky.

Final test (SB)

31. Which of the following is not a characteristic of an ideal statistician?

A. Technically current (e.g., software)

B. Communicates well (both written and oral)
C. Advocates client's objectives
D. Can deal with imperfect information

There is an unattractive name for a consultant who always agrees with the client.

32. Which of the following statements is not true?

A. Statistics helps refine theories through ongoing hypothesis testing.

B. Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data.
C. Estimating parameters is an important aspect of descriptive statistics.
D. Statistical challenges include imperfect data and practical constraints.

Estimating a population parameter is an inference.

33. Which is not a practical constraint facing the business researcher or data analyst?

A. Time and money are always limited.

B. The world is no laboratory, so some experiments are impractical.
C. Research on human subjects is fraught with danger and ethical issues.
D. Survey respondents usually will tell the truth if well compensated.

Paid respondents may try to tell you what you want to hear.
Final test (SB)

34. Which is not an essential characteristic of a good business data analyst?

A. Effective writer
B. Stays current on techniques
C. Has a Ph.D. or master's degree in statistics
D. Can deal with imperfect information

No advanced degree is needed for basic statistics, which is why all business students study it.

35. An ethical statistical consultant would not always:

A. follow accepted statistical procedures.

B. support management's desired conclusions.
C. acknowledge sources of financial support.
D. report limitations of the data.

There is a nasty name for a consultant who always agrees with management.

36. The NASA experiences with the Challenger and Columbia disasters suggest that:

A. statistics is not applicable to space endeavors.

B. limited data may still contain important clues.
C. good engineers can eliminate risks in space flight.
D. space flight is only slightly more risky than commercial air travel.

When small samples are all that we have, we must study them carefully.
Final test (SB)

37. Which is not a goal of the ethical data analyst?

A. To be an honest broker of data

B. To learn to downplay inconvenient data
C. To understand the firm's code of ethics (or help create one)
D. To look for hidden agendas in data collection

We do not ignore data unless it is an actual error.

38. Which of the following statements is not true?

A. A statistic is a single measure (usually numerical) that is calculated from a sample.

B. Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data.
C. For day-to-day business data analysis, most firms rely on a large staff of expert statisticians.
D. A statistical test may be significant yet have no practical importance.

Few firms have staffs of statistics experts, so all of us need to know the basics.

39. "Smoking is not harmful. My Aunt Harriet smoked, but lived to age 90." This best illustrates which
fallacy?

A. Unconscious bias
B. Significance versus practical importance
C. Post hoc reasoning
D. Small sample generalization

Individual cases sometimes violate causation.

Final test (SB)

40. Which best illustrates the distinction between statistical significance and practical importance?

A. "In 2006, 240 out of 400 statistics students at Oxnard Technical College sold their textbooks at
the end of the semester, compared with 220 out of 330 students in 2005, a significant
decrease."
B. "Our new manufacturing technique has increased the life of the 80 GB USB AsimoDrive
external hard disk significantly, from 240,000 hours to 250,000 hours."
C. "In 50,000 births, the new vaccine reduced the incidence of infant mortality in Morrovia
significantly from 14.2 deaths per 1000 births to 10.3 deaths per 1000 births."
D. "The new Sky Penetrator IV business jet's cruising range has increased significantly from
3,975 miles to 4,000 miles."

Consumers would not notice because 240,000 hours is 27 years.

41. "Circulation fell in the month after the new editor took over the newspaper Oxnard News Herald.
The new editor should be fired." Which is not a serious fallacy in this conclusion?

A. Generalizing from a small sample

B. Applying post hoc reasoning
C. Failing to identify causes
D. Using a biased sample

There is no real sample, just shaky logical inferences.

42. An ethical data analyst would be least likely to:

A. check data for accuracy.

B. cite his/her data sources and their limitations.
C. acknowledge sources of financial support.
D. rely on consultants for all calculations.

When you farm out your calculations, you have lost control of your work.
Final test (SB)

43. "Tom's SUV rolled over. SUVs are dangerous." This best illustrates which fallacy?

A. Unconscious bias
B. Significance versus practical importance
C. Post hoc reasoning
D. Small sample generalization

One instance proves little.

Final test (SB)

51. Which variable is least likely to be regarded as ratio data?

A. Length of time required for a randomly chosen vehicle to cross a toll bridge (minutes)
B. Weight of a randomly chosen student (pounds)
C. Number of fatalities in a randomly chosen traffic disaster (persons)
D. Student's evaluation of a professor's teaching (Likert scale)

Likert scales have no true zero.

59. Automobile exhaust emission of CO2 (milligrams per mile) is ____________ data.

A. nominal
B. ordinal
C. interval
D. ratio

True zero exists.

Final test (SB)

60. Your rating of the food served at a local restaurant using a three-point scale of 0 = gross, 1 =
decent, 2 = yummy is ___________ data.

A. nominal
B. ordinal
C. interval
D. ratio

Only rankings implied (not equal scale distances).

61. The number of passengers "bumped" on a particular airline flight is ____________ data.

A. nominal
B. ordinal
C. interval
D. ratio

True zero exists (no passengers might be bumped).

62. Which should not be regarded as a continuous random variable?

A. Tonnage carried by a randomly chosen oil tanker at sea

B. Wind velocity at 7 o'clock this morning
C. Number of personal fouls by the Miami Heat in a game
D. Length of time to play a Wimbledon tennis match

Counting things yields integer (discrete) data.

Final test (SB)

63. Which of the following is not true?

A. Categorical data have values that are described by words rather than numbers.
B. Categorical data are also referred to as nominal or qualitative data.
C. The number of checks processed at a bank in a day is categorical data.
D. Numerical data can be either discrete or continuous.

The "number of" anything is a discrete numerical variable.

64. Which of the following is true?

A. The type of charge card used by a customer (Visa, MasterCard, AmEx) is ordinal data.
B. The duration (minutes) of a flight from Boston to Minneapolis is ratio data.
C. The number of Nobel Prize-winning faculty at Oxnard University is continuous data.
D. The number of regional warehouses owned by Jankord Industries is ordinal data.

True zero exists (not observable, but as a reference point), so ratios have meaning.

65. Which statement is correct?

A. Judgment sampling is preferred to systematic sampling.

B. Sampling without replacement introduces bias in our estimates of parameters.
C. Cluster sampling is useful when strata characteristics are unknown.
D. Focus groups usually work best without a moderator.

Review the characteristics of each sampling method.

Final test (SB)

68. Which statement is false?

A. Random dialing phone surveys have low response and are poorly targeted.
B. Selection bias means that many respondents dislike the interviewer.
C. Simple random sampling requires a list of the population.
D. Web surveys are economical but suffer from nonresponse bias.

Selection bias occurs when respondents are atypical.

72. Professor Hardtack chose a sample of 7 students from his statistics class of 35 students by
picking every student who was wearing red that day. Which kind of sample is this?

A. Simple random sample

B. Judgment sample
C. Systematic sample
D. Convenience sample

Quick but may not be representative of all students.

39. A column chart would be least suitable to display which data?

A. Annual compensation of 500 company CEOs

B. U.S. exports to its six largest trading partners
C. Exxon-Mobil's quarterly sales for the last four years
D. One-year CD interest rates paid by the eight largest U.S. banks

With 500 data values, a column chart would reveal little. Make a histogram instead.
Final test (SB)

40. A line chart would not be suitable to display which data?

A. U.S. oil imports from OPEC nations for the last 20 years
B. Annual compensation of the top 50 CEOs
C. Exxon-Mobil's quarterly sales data for the last five years
D. Daily stock market closing prices of Microsoft for the past month

Line charts are for time series data (not cross-sectional data).

41. Which is not a tip for effective column charts?

A. Time usually goes on the horizontal axis.

B. Column height should be proportional to the quantity displayed.
C. Label data values at the top of each column unless graphing lots of data.
D. The nonzero origin rule may be waived for financial reports.

Especially in financial reports, the zero origin rule is vital.

42. Which is not a tip for effective line charts?

A. Line charts are better than bar charts to display cross-sectional data.
B. Numerical labels are omitted on a line chart if there are many data values.
C. Omit data markers (e.g., squares, triangles) when there are many data values.
D. Thick lines make it harder to see exact data values.

Line charts are for numerical time series data.

Final test (SB)

43. Which is a reason for using a log scale for time series data?

A. It helps compare growth in time series of dissimilar magnitude.

B. General business audiences find it easier to interpret a log scale.
C. On a log scale, equal distances represent equal dollar amounts.
D. The axis labels are usually easier to read in log units.

Changing magnitude may become a problem unless you use a log scale.

44. Which is a not a characteristic of pie charts?

A. Pie charts can only convey a general idea of the data values.
B. Pie charts are ineffective when they have too many slices.
C. Exploded and 3-D pie charts will allow more "slices."
D. Pie chart data always represent parts of a whole (e.g., market share).

Pie charts with too many slices are hard to read whether 2D or 3D.

45. Excel's pyramid charts:

A. are generally preferred to pie charts.

B. should be avoided despite their visual appeal.
C. are generally preferred to line charts.
D. show trends more clearly than column charts.

Avoid novelty charts in business presentations. They are fun but unclear.
Final test (SB)

46. Which is not a reason why pie charts are popular in business?

A. They can convey a general idea of the data to a nontechnical audience.

B. They can display major changes in parts of a whole (e.g., market share).
C. They are more precise than line charts, despite their low visual impact.
D. They can be labeled with data values to facilitate interpretation.

Pie charts are attractive, but can be hard to read precisely.

47. Which data would be suitable for a pie chart?

A. Whirlpool Corporation's sales revenue for the last five years

B. Oxnard University student category (undergraduate, masters, doctoral)
C. Average SAT scores for entering freshmen at 10 major U.S. universities
D. U.S. toy imports from China over the past decade

Pie charts are only for parts of a whole.

48. Which data would be suitable for a pie chart?

A. Percent vote in the last election by party (Democrat, Republican, Other)

B. Retail prices of six major brands of color laser printers
C. Labor cost per vehicle for 10 major world automakers
D. Prices paid by 10 students for their accounting textbooks

Pie charts are only for parts of a whole.

Final test (SB)

49. Which data would be suitable for a pie chart?

A. Average starting salary of MBA graduates from six ivy-league universities

B. APR interest rates charged by the top five U.S. credit cards
C. Last semester's average GPA for students in seven majors in a business school
D. The number of U.S. primary care clinics by type (urban, suburban, rural)

Pie charts are only for parts of a whole.

50. Scatter plots are:

A. useful in visualizing trends over time.

B. useful in identifying causal relationships.
C. often fitted with a linear equation in Excel.
D. applicable mainly to discrete data.

Excel makes it easy to fit a trend.

51. Which is not a characteristic of an effective summary table?

A. The main point should be clear within 10 seconds.

B. Data to be compared should be displayed in rows, not columns.
C. Data should be rounded to three or four significant digits.
D. Use space instead of lines to separate columns.

Research suggests that side-by-side comparisons are easier.

Final test (SB)

52. Effective summary tables generally:

A. have very detailed column headings and footnotes.

B. round their data to three or four significant digits.
C. use plenty of heavy vertical lines to separate the columns.
D. have the raw data listed in a footnote for clarity.

Too much accuracy may make it harder to assess magnitudes (e.g., 5.01873 mm and 5.02016
mm both round to 5.02 mm).

56. We would use a pivot table to:

A. cross-tabulate frequencies of occurrence of two variables.

B. rotate the data around a central point.
C. establish cause-and-effect between X and Y.
D. display the data in a 3D scatter plot.

A pivot table shows frequency counts (or sums or averages) in a row-column format.

57. Which is not considered a deceptive graphical technique?

A. Nonzero origin
B. Elastic graph proportions
C. Dramatic title
D. Axis demarcations

Axis demarcations are helpful on graphs with numerical scales.

Final test (SB)

58. Which is not considered a deceptive graphical technique?

A. Undefined units
B. 2D graphs
C. Authority figures
D. Distracting pictures

2D graphs are generally acceptable.

59. Which is the most serious deceptive graphical technique?

A. Vague source
B. Using bold colors
C. Nonzero origin
D. Unlabeled data points

A nonzero origin can distort relative size.

60. Which is not a poor graphing technique?

A. Gratuitous pictures
B. Labeled axis scales
C. 3D bar charts
D. Rotated axis

Labeled axis scales are desirable for numerical data.

Final test (SB)

61. Which of these deficiencies would be considered a major graphical deception?

A. Vague or unclear source

B. Using more than one color or font
C. Bar widths proportional to bar height
D. Using a dramatic graph title

The area trick occurs when bar width increases along with bar height.

62. Which is not a characteristic of a log scale for time series data?

A. Log scales are useful when data change by an order of magnitude.

B. The distance from 5 to 50 is the same as the distance from 50 to 500.
C. On a log scale, equal distances represent equal ratios.
D. Log scales are generally familiar to the average reader.

Some readers lack training to understand a simple log scale.

45. In a sample of 10,000 observations from a normal population, how many would you expect to
lie beyond three standard deviations of the mean?

A. None of them
B. About 27
C. About 100
D. About 127

Within μ ± 3σ we would expect 99.73 percent of 10,000, or 9,973 data values.

Final test (SB)

47. Which is not true of an outlier?

A. It is likely to be from a different population.

B. It suggests an error in recording the data.
C. It is best discarded to get a better mean.
D. It is an anomaly that may tell the researcher something.

We are reluctant to delete outliers, as they may tell us something important.

48. Estimating the mean from grouped data will tend to be most accurate when:

A. observations are distributed uniformly within classes.

B. there are few classes with wide class limits.
C. the sample is not very large and bins are wide.
D. the standard deviation is large relative to the mean.

Many bins and uniform data distribution within bins would give a result closest to the ungrouped
mean μ.

49. Which is true of the kurtosis of a distribution?

A. A distribution that is flatter than a normal distribution (i.e., thicker tails) is mesokurtic.
B. A distribution that is more peaked than a normal distribution (i.e., thinner tails) is platykurtic.
C. It is risky to assess kurtosis if the sample size is less than 50.
D. The expected range of the kurtosis coefficient increases as n increases.

Shape is hard to judge in small samples. The 50 is just a rule of thumb. Excel computes kurtosis
for samples of any size, but tables of critical values may not go down below 50.
Final test (SB)

50. Which is true of skewness?

A. In business data, positive skewness is unusual.

B. In a negatively skewed distribution, the mean is likely to exceed the median.
C. Skewness often is evidenced by one or more outliers.
D. The expected range of Excel's skewness coefficient increases as n increases.

Skewness due to extreme data values is common in business data. Right skewness is common,
which increases the mean relative to the median.

52. Which is a correct statement concerning the median?

A. In a left-skewed distribution, we expect that the median will exceed the mean.
B. The sum of the deviations around the median is zero.
C. The median is an observed data value in any data set.
D. The median is halfway between Q1 and Q3 on a box plot.

The mean is pulled down in left-skewed data, but deviations around it sum to zero in any data set.
The median may be between two data values and may not be in the middle of the box plot.

53. Which statement is true?

A. With nominal data we can find the mode.

B. Outliers distort the mean but not the standard deviation.
C. Business and economic data are rarely skewed to the right.
D. If we sample a normal population, the sample skewness coefficient is exactly 0.

The mode works well for nominal data.

Final test (SB)

54. Exam scores in a small class were 10, 10, 20, 20, 40, 60, 80, 80, 90, 100, 100. For this data set,
which statement is incorrect concerning measures of center?

A. The median is 60.00.

B. The mode is not helpful.
C. The 5 percent trimmed mean would be awkward.
D. The geometric mean is 35.05.

To find the geometric mean, multiply the data values and take the 11th root to get G = 41.02.
Outliers affect both the mean and the standard deviation. There are multiple modes in this
example.

55. Exam scores in a small class were 0, 50, 50, 70, 70, 80, 90, 90, 100, 100. For this data set, which
statement is incorrect concerning measures of center?

A. The median is 70.

B. The mode is not helpful.
C. The geometric mean is useless.
D. The mean is 70.

The median is 75 (halfway between x5 = 70 and x6 = 80 in the sorted array). The zeros render the
geometric mean useless. The modes in this case are not unique.

56. Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90, 100. Which
statement is incorrect?

A. The standard deviation is 29.61.

B. The data are slightly left-skewed.
C. The midrange and mean are almost the same.
D. The third quartile is 90.

The midrange is (0 + 100)/2 = 50, while the mean is 69.

Final test (SB)

57. For U.S. adult males, the mean height is 178 cm with a standard deviation of 8 cm and the mean
weight is 84 kg with a standard deviation of 8 kg. Elmer is 170 cm tall and weighs 70 kg. It is most
nearly correct to say that:

A. Elmer's weight is more unusual than his height.

B. Elmer is heavier than he is tall.
C. Height and weight have the same degree of variation.
D. Height has more variation than weight.

Convert Elmer's height and weight to z-scores. For Elmer's weight, z = (x - μ)/σ = (70 - 84)/8 = -
1.75, while for Elmer's height, z = (x - μ)/σ = (170 - 178)/8 = -1.00. Therefore, Elmer is farther from
the mean weight than from the mean height.

58. John scored 85 on Prof. Hardtack's exam (Q1 = 40 and Q3 = 60). Based on the fences, which is
correct?

A. John is an extreme outlier.

B. John is an outlier.
C. John is not an outlier.
D. John is in the 85th percentile.

The upper inner fence is 60 + 1.5(60 - 40) = 90 so John is not an outlier.

Final test (SB)

59. John scored 35 on Prof. Johnson's exam (Q1 = 70 and Q3 = 80). Based on the fences, which is
correct?

A. John is unusual but not an outlier.

B. John is an outlier.
C. John is neither unusual nor an outlier.
D. John is in the 30th percentile.

The lower inner fence is 70 - 1.5(80 - 70) = 55 so John is an outlier. Actually, John is an extreme
outlier because the lower outer fence is 70 - 3.0(80 - 70) = 40.

60. A population consists of the following data: 7, 11, 12, 18, 20, 22, 25. The population variance is:

A. 6.07.
B. 36.82.
C. 5.16.
D. 22.86.

Use the population formula or Excel's =VAR.P(Data).

61. Consider the following data: 6, 7, 17, 51, 3, 17, 23, and 69. The range and the median are:

A. 69 and 17.5.
B. 66 and 17.5.
C. 66 and 17.
D. 69 and 17.

Range = xmax - xmin = 69 - 3 = 66. Median is halfway between 17 and 17.

Final test (SB)

62. When a sample has an odd number of observations, the median is the:

A. observation in the center of the data array.

B. average of the two observations in the center of the data array.
C. value of the most frequent observation.
D. average of Q1 and Q3.

Median position is always (n + 1)/2. It need not be halfway between the quartiles.

63. As a measure of variability, compared to the range, an advantage of the standard deviation is:

A. being calculated easily through the use of a formula.

B. considering only the data values in the middle of the data array.
C. describing the distance between the highest and lowest values.
D. considering all data values.

The range is easy to calculate but utilizes only two data values, which may be unusual.

40. Events A and B are mutually exclusive when:

A. their joint probability is zero.

B. they are independent events.
C. P(A)P(B) = 0
D. P(A)P(B) = P(A | B)

Review definition of mutually exclusive.

Final test (SB)

41. If two events are complementary, then we know that:

A. the sum of their probabilities is one.

B. the joint probability of the two events is one.
C. their intersection has a nonzero probability.
D. they are independent events.

Review definition of complementary events.

42. Regarding probability, which of the following is correct?

A. When events A and B are mutually exclusive, then P(A∩B) = P(A) + P(B).
B. The union of events A and B consists of all outcomes in the sample space that are contained
in both event A and event B.
C. When two events A and B are independent, the joint probability of the events can be found by
multiplying the probabilities of the individual events.
D. The probability of the union of two events can exceed one.

Review the rules of probability.

43. Independent events A and B would be consistent with which of the following statements:

A. P(A) = .3, P(B) = .5, P(A∩B) = .4.

B. P(A) = .4, P(B) = .5, P(A∩B) = .2.
C. P(A) = .5, P(B) = .4, P(A∩B) = .3.
D. P(A) = .4, P(B) = .3, P(A∩B) = .5.

For independence, the product P(A)P(B) must equal P(A∩B).

Final test (SB)

44. Find the probability that either event A or B occurs if the chance of A occurring is .5, the chance of
B occurring is .3, and events A and B are independent.

A. .80
B. .15
C. .65
D. .85

Given that the events are independent, the product P(A)P(B) must equal P(A∩B). Thus, P(A or B)
= P(A) + P(B) - P(A∩B) = .50 + .30 - (.50)(.30) = .80 - .15 = .65 using the General Law of Addition.

45. Regarding the rules of probability, which of the following statements is correct?

A. If A and B are independent events, then P(B) = P(A)P(B).

B. The sum of two mutually exclusive events is one.
C. The probability of A and its complement will sum to one.
D. If event A occurs, then its complement will also occur.

Review the rules of probabilities.

46. Within a given population, 22 percent of the people are smokers, 57 percent of the people are
males, and 12 percent are males who smoke. If a person is chosen at random from the
population, what is the probability that the selected person is either a male or a smoker?

A. .67
B. .79
C. .22
D. .43

Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

Final test (SB)

47. Information was collected on those who attended the opening of a new movie. The analysis found
that 56 percent of the moviegoers were female, 26 percent were under age 25, and 17 percent
were females under the age of 25. Find the probability that a moviegoer is either female or under
age 25.

A. .79
B. .82
C. .65
D. .50

Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

48. Given the contingency table shown here, find P(V).

A. .20
B. .40
C. .50
D. .80

This is a marginal probability P(V) = 40/200 = .20.

Final test (SB)

49. Given the contingency table shown here, find P(V | W).

A. .4000
B. .0950
C. .2375
D. .5875

This is a conditional probability P(V|W) = 19/80.

29. A discrete random variable:

A. can be treated as continuous when it has a large range of values.

B. cannot be treated as continuous.
C. is best avoided if at all possible.
D. is usually uniformly distributed.

For example, the Sunday vehicle count on a freeway is a discrete (but large) number.
Final test (SB)

30. Which is not a discrete random variable?

A. The number of defects in a 4 × 8 sheet of plywood

B. The number of female passengers who board a plane
C. The time until failure of a vehicle headlamp
D. The number of correct answers on a statistics exam

Time is continuous.

31. Which is not a discrete random variable?

A. The number of births in a hospital on a given day

B. The number of fives obtained in four rolls of a die
C. The hourly earnings of a call center employee in Boston
D. The number of applicants applying for a civil service job

Someone's earnings would be more like a continuous measurement.

32. Which statement is incorrect?

A. The Poisson distribution is always skewed right.

B. The binomial distribution may be skewed left or right.
C. The discrete uniform distribution is always symmetric.
D. The hypergeometric distribution is symmetric.

A hypergeometric distribution is symmetric only if s/N = .50.

Final test (SB)

33. The random variable X is the number of shots it takes before you make the first free throw in
basketball. Assuming the probability of success (making a free throw) is constant from trial to trial,
what type of distribution does X follow?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Geometric model describes the number of trials until the first success.

34. Which probability model is most nearly appropriate to describe the number of burned-out
fluorescent tubes in a classroom with 12 fluorescent tubes, assuming a constant probability of a
burned-out tube?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

n = 12 Bernoulli trials with fixed probability of success would be a binomial model.

Final test (SB)

35. Which distribution is most nearly appropriate to describe the number of fatalities in Texas in a
given year due to poisonous snakebites?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit would resemble a Poisson distribution.

36. Which model would you use to describe the probability that a call-center operator will make the
first sale on the third call, assuming a constant probability of making a sale?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Geometric describes the number of trials to first success.

37. In a randomly chosen week, which probability model would you use to describe the number of
accidents at the intersection of two streets?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit would resemble a Poisson distribution.
Final test (SB)

38. Which model best describes the number of nonworking web URLs ("This page cannot be
displayed") you encounter in a randomly chosen minute while surfing websites for Florida vacation
rental condos?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit would resemble a Poisson distribution.

39. Which probability model would you use to describe the number of damaged printers in a random
sample of 4 printers taken from a shipment of 28 printers that contains 3 damaged printers?

A. Poisson
B. Hypergeometric
C. Binomial
D. Uniform

Sampling (n = 4 printers) without replacement with known number of "successes" (s = 3 damaged

printers) in the population (N = 28 printers).
Final test (SB)

40. Which model best describes the number of incorrect fare quotations by a well-trained airline ticket
agent between 2 p.m. and 3 p.m. on a particular Thursday?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit would resemble a Poisson distribution.

41. Which model best describes the number of blemishes per sheet of white bond paper?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of area with no clear upper limit would resemble a Poisson distribution.
Final test (SB)

42. To ensure quality, customer calls for airline fare quotations are monitored at random. On a
particular Thursday afternoon, ticket agent Bob gives 40 fare quotations, of which 4 are incorrect.
In a random sample of 8 of these customer calls, which model best describes the number of
incorrect quotations Bob will make?

A. Binomial
B. Poisson
C. Hypergeometric
Final test (SB)

D. Geometric

Sampling (n = 8 calls selected) without replacement with known number of "successes" (s = 4

incorrect quotes) in the population (N = 40 quotes).
Final test (SB)

43. The number of people injured in rafting expeditions on the Colorado River on a randomly chosen
Thursday in August is best described by which model?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Independent events per unit of time with no clear upper limit would be Poisson.

44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing for a free mule
ride. Ten of the entrants are European tourists. Five entrants are selected at random to get the
free mule ride. Which model best describes the number of European tourists in the random
sample?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Sampling (n = 5 tourists selected) without replacement with known number of "successes" (s =

10 Europeans) in the population (N = 40).

45. Which model best describes the number of births in a hospital until the first twins are delivered?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Geometric distribution describes the number of trials until the first success.
Final test (SB)

46. On a randomly chosen Wednesday, which probability model would you use to describe the
number of convenience store robberies in Los Angeles?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit would be Poisson.

47. Which probability model would you use to describe the number of customers served at a certain
California Pizza Kitchen until the first customer orders split pea soup?

A. Binomial
B. Geometric
C. Uniform
D. Poisson

Geometric distribution describes the number of trials until the first success.

48. Which distribution has a mean of 5?

A. Poisson with λ = 25
B. Binomial with n = 200, π = .05
C. Hypergeometric with N = 100, n = 10, s = 50

Review model parameters. The hypergeometric mean is ns/N = (10)(50)/100 = 5.

Final test (SB)

49. Of the following, the one that most resembles a Poisson random variable is the number of:

A. heads in 200 flips of a fair coin.

B. annual power failures at your residence.
C. face cards in a bridge hand of 13 cards.
D. defective CDs in a spool containing 15 CDs.

Independent arrivals per unit of time with no clear upper limit would be Poisson.

33. A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive.
The mean of this distribution is:

A. 30.5.
B. 31.5.
C. 32.5.
D. 33.5.

The mean is halfway between the end points of the distribution.

34. A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive.
The standard deviation of this distribution is approximately:

A. 52.1.
B. 32.5.
C. 6.85.
D. 7.22.

The standard deviation is [(45 - 20)2/12]1/2 = 7.22.

Final test (SB)

35. A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive.
What is P(30 ≤ X ≤ 40)?

A. .20
B. .40
C. .60
D. .80

The desired area is 10/25 = .40.

36. The Excel function =800*RAND() would generate random numbers with standard deviation
approximately equal to:

A. 200.
B. 188.
C. 231.
D. 400.

The standard deviation is [(800 - 0)2/12]1/2 = 230.94.

37. The Excel function =40*RAND() would generate random numbers with standard deviation
approximately equal to

A. 13.33.
B. 20.00.
C. 11.55.
D. 19.27.

The standard deviation is [(40 - 0)2/12]1/2 = 11.55.

Final test (SB)

38. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting more
than 0.5 hour for the next arrival is:

A. .2407.
B. .1653.
C. .1222.
D. .5000.

P(X > .50) = exp(-3.6 × 0.50) = .1653.

39. If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting less
than 0.5 hour for the next arrival is:

A. .7122.
B. .8105.
C. .8347.
D. .7809.

P(X < .50) = 1 - exp(-3.6 × 0.50) = 1 - .1653 = .8347.

40. If arrivals occur at a mean rate of 2.6 events per minute, the exponential probability of waiting
more than 1.5 minutes for the next arrival is:

A. .0202.
B. .0122.
C. .0535.
D. .2564.

P(X > 1.5) = exp(-2.6 × 1.50) = .0202.

Final test (SB)

41. If arrivals occur at a mean rate of 1.6 events per minute, the exponential probability of waiting less
than 1 minute for the next arrival is:

A. .2019.
B. .7104.
C. .8812.
D. .7981.

(X < 1) = 1 - exp(-1.6 × 1) = 1 - .2019 = .7981.

42. Bob's z-score for the last exam was 1.52 in Prof. Axolotl's class BIO 417, "Life Cycle of the
Ornithorhynchus." Bob said, "Oh, good, my score is in the top 10 percent." Assuming a normal
distribution of scores, is Bob right?

A. Yes.
B. No.
C. Must have n to answer.

P(Z < 1.52) = .9357.

43. The lengths of brook trout caught in a certain Colorado stream are normally distributed with a
mean of 14 inches and a standard deviation of 3 inches. What proportion of brook trout caught will
be between 12 and 18 inches in length?

A. .6563
B. .6826
C. .2486
D. .4082

P(12 < X < 18) = P(-.67 < Z < 1.33) = .6568 (from Appendix C) or .6563 using Excel.
Final test (SB)

44. The lengths of brook trout caught in a certain Colorado stream are normally distributed with a
mean of 14 inches and a standard deviation of 3 inches. The first quartile for the lengths of brook
trout would be:

A. 16.01 inches.
B. 11.00 inches.
C. 11.98 inches.
D. 10.65 inches.

Using Excel =NORM.INV(.25,14,3) = 11.98, or Q1 = 14 - 0.675(3) = 11.975 using Appendix C.

48. A sampling distribution describes the distribution of:

A. a parameter.
B. a statistic.
C. either a parameter or a statistic.
D. neither a parameter nor a statistic.

A statistic is a random variable. Its sampling distribution describes its behavior.

49. As the sample size increases, the standard error of the mean:

A. increases.
B. decreases.
C. may increase or decrease.

The standard error of the mean is σ/(n1/2).

Final test (SB)

50. Which statement is most nearly correct, other things being equal?

A. Doubling the sample size will cut the standard error of the mean in half.
B. The standard error of the mean depends on the population size.
C. Quadrupling the sample size roughly halves the standard error of the mean.
D. The standard error of the mean depends on the confidence level.

The standard error of the mean is σ/(n1/2) so replacing n by 4n would cut the SEM in half.

51. The width of a confidence interval for μ is not affected by:

A. the sample size.

B. the confidence level.
C. the standard deviation.
D. the sample mean.

The mean is not used in calculating the width of the confidence interval zσ/(n1/2).

52. The Central Limit Theorem (CLT) implies that:

A. the population will be approximately normal if n ≥ 30.

B. repeated samples must be taken to obtain normality.
C. the distribution of the mean is approximately normal for large n.
D. the mean follows the same distribution as the population.

The sampling distribution of the mean is asymptotically normal for any population.
Final test (SB)

53. The owner of Limp Pines Resort wanted to know the average age of its clients. A random sample
of 25 tourists is taken. It shows a mean age of 46 years with a standard deviation of 5 years. The
width of a 98 percent CI for the true mean client age is approximately:

A. ± 1.711 years.
B. ± 2.326 years.
C. ± 2.492 years.
D. ± 2.797 years.

The width is ts/(n1/2) = (2.492)(5)/(25)1/2 = 2.492.

54. In constructing a confidence interval for a mean with unknown variance with a sample of 25 items,
Bob used z instead of t. "Well, at least my interval will be wider than necessary, so it was a
conservative error," said he. Is Bob's statement correct?

A. Yes.
B. No.
C. It depends on μ.

z is always smaller than t (ceteris paribus), so the interval would be narrower than is justified.

55. A random sample of 16 ATM transactions at the Last National Bank of Flat Rock revealed a mean
transaction time of 2.8 minutes with a standard deviation of 1.2 minutes. The width (in minutes) of
the 95 percent confidence interval for the true mean transaction time is:

A. ± 0.639
B. ± 0.588
C. ± 0.300
D. ± 2.131

The width is ts/(n1/2) = (2.131)(1.2)/(16)1/2 = 0.639.

Final test (SB)

56. We could narrow a 95 percent confidence interval by:

A. using 99 percent confidence.

B. using a larger sample.
C. raising the standard error.

A larger sample would narrow the interval width zs/(n1/2).

55. After testing a hypothesis regarding the mean, we decided not to reject H0. Thus, we are
exposed to:

A. Type I error.
B. Type II error.
C. Either Type I or Type II error.
D. Neither Type I nor Type II error.

Failure to reject H0 could lead to Type II error (but not Type I error).

56. After testing a hypothesis, we decided to reject the null hypothesis. Thus, we are exposed to:

A. Type I error.
B. Type II error.
C. Either Type I or Type II error.
D. Neither Type I nor Type II error.

Rejecting H0 could lead to Type I error (but not Type II error).

Final test (SB)

57. Which statement about α is not correct?

A. It is the probability of committing a Type I error.

B. It is the test's significance level.
C. It is the probability of rejecting a true H0.
D. It is equal to 1 - β.

There is an inverse relationship between α and β, but it is not a simple equation.

58. Which of the following is correct?

A. When sample size increases, both α and β may decrease.

B. Type II error can only occur when you reject H0.
C. Type I error can only occur if you fail to reject H0.
D. The level of significance is the probability of Type II error.

Only a larger sample can allow a reduction in both α and β (ceteris paribus).

59. Which of the following is incorrect?

A. The level of significance is the probability of making a Type I error.

B. Lowering both α and β at once will require a higher sample size.
C. The probability of rejecting a true null hypothesis increases as n increases.
D. When Type I error increases, Type II error must decrease, ceteris paribus.

The critical value for the desired α takes the sample size into consideration.
Final test (SB)

60. John rejected his null hypothesis in a right-tailed test for a mean at α = .025 because his critical t
value was 2.000 and his calculated t value was 2.345. We can be sure that:

A. John did not commit a Type I error.

B. John did not commit a Type II error.
C. John committed neither a Type I nor Type II error.
D. John committed both a Type I and a Type II error.

John could have committed Type II error only if he failed to reject H0.

61. "My careful physical examination shows no evidence of any serious problem," said Doctor
Morpheus. "However, a very costly lab test can be performed to check for the rare condition
known as estomalgia fatalis. The test is almost invariably negative for persons with your age and
symptoms. My personal hypothesis is that the occasional stomach pain you reported is due to
indigestion caused by eating tacos with too much hot sauce. But you must decide for yourself." As
you consider your doctor's hypothesis, what would be the consequence of Type I error on your
part?

A. It can't be determined without knowing the type of test.

B. Your estomalgia fatalis will go undetected.
C. You will waste money on an unnecessary lab test.
D. Your survivors will enjoy a sizeable malpractice award.

Type I error is rejecting the doctor's advice when it was correct.

Final test (SB)

62. Which of the following statements is correct?

A. Increasing α will make it more likely that we will reject H0, ceteris paribus.
B. Doubling the sample size roughly doubles the test statistic, ceteris paribus.
C. A higher standard deviation would increase the power of a test for a mean.
D. The p-value shows the probability that the null hypothesis is false.

A larger α will make it easier to reject H0 (e.g., z.05 = 1.645 versus z.01 = 2.326).

63. "I believe your airplane's engine is sound," states the mechanic. "I've been over it carefully, and
can't see anything wrong. I'd be happy to tear the engine down completely for an internal
inspection at a cost of $1,500. But I believe that roughness you heard in the engine on your last
flight was probably just a bit of water in the fuel, which passed harmlessly through the engine and
is now gone." As the pilot considers the mechanic's hypothesis, the cost of Type I error is:

A. the pilot will experience the thrill of no-engine flight.

B. the pilot will be out $1,500 unnecessarily.
C. the mechanic will lose a good customer.
D. impossible to determine without knowing α.

Type I error is rejecting the mechanic's advice when it was correct.

64. A study over a 10-year period showed that a certain mammogram test had a 50 percent rate of
false positives. This indicates that:

A. about half the tests indicated cancer.

B. about half the tests missed a cancer that exists.
C. about half the tests showed a cancer that didn't exist.
D. about half the women tested actually had no cancer.

This is a 50 percent chance of Type I error.

Final test (SB)

65. You are driving a van packed with camping gear (total weight 3,500 pounds including yourself and
family) into a northern wilderness area. You take a "short cut" that turns into a one-lane road, with
no room to turn around. After 11 miles you come to a narrow bridge with a faded sign saying,
"Safe Up to 2 Tons." About a half-mile ahead, you can see that your road rejoins the main
highway. You consider the sign's hypothesis carefully before making a decision. The cost of Type
I error is:

A. you pass safely over the bridge and everyone's happy.

B. about $23,900, not including medical bills.
C. you will find out just how cold that river actually is.
D. your kids will think you're a chicken.

Type I error is rejecting the sign's message when it was correct.

66. After lowering the landing gear, the pilot notices that the "gear down and locked" light is not
illuminated. "It's probably just a burned out light bulb," she says, as she proceeds on final
approach for landing. Considering the pilot's hypothesis, which is the result of Type I error?

A. The sound of metal scraping on concrete will be heard upon landing.

B. The landing is delayed unnecessarily while the bulb and gear are checked.
C. We cannot be sure without knowing whether or not the bulb is actually faulty.

Type I error is concluding there is a problem when there was not.

Final test (SB)

67. As you are crossing a field at the farm, your country cousin Jake assures you, "Don't worry about
that old bull coming toward us. He's harmless." As you consider Jake's hypothesis, what would be
Type I error on your part?

A. You will soon feel the bull's horns.

B. You will run away for no good reason.
C. Jake will not have any more visits from you.

Type I error is rejecting Jake's advice when he was right.

68. Which is not true of p-values?

A. When they are small, we want to reject H0.

B. They measure the probability of an incorrect decision.
C. They show the chance of Type I error if we reject H0.
D. They do not require α to be specified a priori.

The p-value tells the likelihood of the observed sample result (or one more extreme) assuming
that H0 is true.

69. For a test of a mean, which of the following is incorrect?

A. H0 is rejected when the calculated p-value is less than the critical value of the test statistic.
B. In a right-tailed test, we reject H0 when the test statistic exceeds the critical value.
C. The critical value is based on the researcher's chosen level of significance.
D. If H0: μ ≤ 100 and H1: μ > 100, then the test is right-tailed.

We compare the p-value with α (not with the critical value).

Final test (SB)

29. In a right-tailed test comparing two means with known variances, the sample sizes were n1 = 8
and n2 = 12. At α = .05, the critical value would be:

A. 1.960
B. 1.645
C. 1.734
D. 1.282

For a right-tailed test with known variances, we would use z.05 = 1.645.

30. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and p2 = 18/50.
The test statistic is approximately:

A. -1.44.
B. -1.31.
C. -1.67.
D. Must know α to answer.

Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in zcalc.

31. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and p2 = 18/50.
The pooled proportion is:

A. .20
B. .24
C. .36
D. .30

Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in the calculation.
Final test (SB)

32. If the sample proportions were p1 = 12/50 and p2 = 18/50, the 95 percent confidence interval for
the difference of the population proportions is approximately:

A. [-.144, +.244].
B. [-.120, +.120].
C. [-.298, +.058].
D. [-.011, +.214].

Enter the proportions separately in the formula. (We are not combining the samples.)

33. John wants to compare two means. His sample statistics

were and . Assuming equal variances, the

95 percent confidence interval for the difference of the population means is approximately:

A. [2.44, 6.19].
B. [1.17, 5.08].
C. [0.08, 4.32].
D. [-0.09, 3.19].

Pool the variances and add the degrees of freedom, because equal variances are assumed.

34. John wants to compare two means. His sample statistics

were and . Assuming equal variances,

the pooled variance is:

A. 4.5
B. 4.9
C. 5.1
D. 3.8

The pooled variance is [(n1 - 1)s12 + (n2 - 1)s22]/[(n1 - 1) + (n2 - 1)] = 4.5.
Final test (SB)

35. John wants to compare two means. His sample statistics

were and . Assuming equal variances,

the test statistic is:

A. 2.37
B. 2.20
C. 1.96
D. Must know α to answer.

The pooled variance is (n1 - 1)s12 + (n2 - 1)s22 = (9 - 1)(5.4) + (9 - 1)(3.6) = 4.5.

36. John wants to compare two means. His sample statistics

were and . Assuming equal variances,

the degrees of freedom for his test will be:

A. 16.
B. 18.
C. 9.
D. 8.

With pooled samples, we add the d.f. = (n1 - 1) + (n2 - 1) = (9 - 1) + (9 - 1) = 16.

Final test (SB)

37. In a random sample of patient records in Cutter Memorial Hospital, six-month postoperative
exams were given in 90 out of 200 prostatectomy patients, while in Paymor Hospital such exams
were given in 110 out of 200 cases. In comparing these two proportions, normality of the
difference may be assumed because:

A. the populations are large enough to be assumed normal.

B. the probability of success can reasonably be assumed constant.
C. the samples are random, so the proportions are unbiased estimates.
D. nπ ≥ 10 and n(1 - π) ≥ 10 for each sample taken separately.

We have at least 10 successes (x1 = 90, x2 = 110) and 10 failures (n1 - x1 = 110, n2 - x2 = 90).

38. In a random sample of patient records in Cutter Memorial Hospital, six-month postoperative
exams were given in 90 out of 200 prostatectomy patients, while in Paymor Hospital such exams
were given in 110 out of 200 cases. In a left-tailed test for equality of proportions, the test statistic
is:

A. -1.96
B. -2.00
C. -4.00
D. -3.48

Combined pc = (90 + 110)/(200 + 200) = .50, so zcalc = (p1 - p2)/[pc(1 - pc)/n1 + pc(1 - pc)/n2]1/2 = -
2.000.
Final test (SB)

39. In a random sample of patient records in Cutter Memorial Hospital, six-month postoperative
exams were given in 90 out of 200 prostatectomy patients, while in Paymor Hospital such exams
were given in 110 out of 200 cases. In a left-tailed test for equality of proportions, the p-value is:

A. .9772
B. .0228
C. .4772
D. .0517

Combined pc = (90 + 110)/(200 + 200) = .50, so zcalc = (p1 - p2)/[pc(1 - pc)/n1 + pc(1 - pc)/n2]1/2 = -
2.000 and using Appendix C we get P(Z ≤ -2.000) = .0228.

REVIEW QUESTIONS FOR CHAPTER 9

Final test (SB)

1. For a given sample size, when we increase the probability of Type I error, the probability of a Type II
error:

A. remains unchanged.

B. increases.

C. decreases.

D. is impossible to determine without more information.

2. Which statement about α is not correct?

A. It is the probability of committing a Type I error.

B. It is the test's significance level.

C. It is the probability of rejecting a true H0.

D. It is equal to 1 - β.
3. John rejected his null hypothesis in a right-tailed test for a mean at α = .025 because his critical t
value was 2.000 and his calculated t value was 2.345. We can be sure that:

A. John did not commit Type I error.

B. John did not commit Type II error.

C. John committed neither Type I nor Type II error.

D. John committed both Type I and Type II error.

Final test (SB)

4. Which is not true of p-values?

A. When they are small, we want to reject H0.

B. They measure the probability of an incorrect decision.

C. They show the chance of Type I error if we reject H0.

D. They do not require α to be specified a priori.

5. For a test of a mean, which of the following is incorrect?

A. H0 is rejected when the calculated p-value is less than the critical value of the test statistic.

B. In a right-tailed test, we reject H0 when the test statistic exceeds the critical value.

C. The critical value is based on the researcher's chosen level of significance.

D. If H0: μ ≤ 100 and H1: μ > 100, then the test is right-tailed.
6. Guidelines for the Jolly Blue Giant Health Insurance Company say that the average hospitalization
for a triple hernia operation should not exceed 30 hours. A diligent auditor studied records of 16
randomly chosen triple hernia operations at Hackmore Hospital and found a mean hospital stay
of 40 hours with a standard deviation of 20 hours. "Aha!" she cried, "the average stay exceeds
the guideline." At α = .025, the critical value for a right-tailed test of her hypothesis is:

A. 1.753

B. 2.131

C. 1.645

D. 1.960
7. For a right-tailed test of a hypothesis for a population mean with n = 14, the value of the test
statistic was t = 1.863. The p-value is:

A. between .05 and .025.

B. between .10 and .05.

C. greater than .10.

D. less than .01.

Final test (SB)

8. For tests of a mean, if other factors are held constant, which statement is correct?

A. The critical value of Student's t increases as n increases.

B. A test statistic tcalc = 1.853 with n = 16 leads to rejection at α = .05 in a one-tailed test.

C. It is harder to reject the null hypothesis in a two-tailed test rather than a one-tailed test.

D. If we desire α = .10, then a p-value of .13 would lead us to reject the null hypothesis.
9. For a sample size of n = 100, and σ = 10, we want to test the hypothesis H0: μ = 100. The sample
mean is 103. The test statistic is:

A. 1.645

B. 1.960

C. 3.000

D. 0.300
10. In testing a proportion, which of the following statements is incorrect?

A. Using α = .05 rather than α = .01 would make it more likely that H0 will be rejected.

B. When the sample proportion is p = .02 and n = 150, it is safe to assume normality.

C. An 80 percent confidence interval is narrower than the 90 percent confidence interval, ceteris
paribus.

D. The sample proportion may be assumed approximately normal if the sample is large enough.
11. The process that produces Sonora Bars (a type of candy) is intended to produce bars with a mean
weight of 56 gm. The process standard deviation is known to be 0.77 gm. A random sample of 49
candy bars yields a mean weight of 55.82 gm. Find the test statistic to see whether the candy
bars are smaller than they are supposed to be.

A. -1.636

B. -1.645

C. -1.677
Final test (SB)

12. A sample of 16 ATM transactions shows a mean transaction time of 67 seconds with a standard
deviation of 12 seconds. Find the critical value to test whether the mean transaction time
exceeds 60 seconds at α = .01.

A. 2.947

B. 2.602

C. 2.583

D. 2.333
13. Given H0: μ ≥ 18 and H1: μ < 18, we would commit Type I error if we:

A. conclude that μ ≥ 18 when the truth is that μ < 18.

B. conclude that μ < 18 when the truth is that μ ≥ 18.

C. fail to reject μ ≥ 18 when the truth is that μ < 18.

14. For a right-tailed test of a hypothesis for a single population mean with n = 10, the value of the
test statistic was t = 1.411. The p-value is:

A. between .05 and .025.

B. between .10 and .05.

C. greater than .10.

D. less than .001.

Final test (SB)

15. Last year, 10 percent of all teenagers purchased a new iPhone. This year, a sample of 260
randomly chosen teenagers showed that 39 had purchased a new iPhone. To test whether the
percent has risen, the p-value is approximately:

A. .0501

B. .0314

C. .0492

D. .0036

ANSWERS:
Final test (SB)

1. For a given sample size, when we increase the probability of Type I error, the probability of a
Type II error:

A. remains unchanged.

B. increases.

C. decreases.

D. is impossible to determine without more information.

For a given sample size, there is a trade-off between α and β.

2. Which statement about α is not correct?

A. It is the probability of committing a Type I error.

B. It is the test's significance level.

C. It is the probability of rejecting a true H0.

D. It is equal to 1 - β.

There is an inverse relationship between α and β, but it is not a simple equation.

Final test (SB)

3. John rejected his null hypothesis in a right-tailed test for a mean at α = .025 because his critical t
value was 2.000 and his calculated t value was 2.345. We can be sure that:

A. John did not commit Type I error.

B. John did not commit Type II error.

C. John committed neither Type I nor Type II error.

D. John committed both Type I and Type II error.

John could have committed Type II error only if he failed to reject H0.

4. Which is not true of p-values?

A. When they are small, we want to reject H0.

B. They measure the probability of an incorrect decision.

C. They show the chance of Type I error if we reject H0.

D. They do not require α to be specified a priori.

The p-value tells the likelihood of the sample assuming that H0 is true.

5. For a test of a mean, which of the following is incorrect?

A. H0 is rejected when the calculated p-value is less than the critical value of the test statistic.

B. In a right-tailed test, we reject H0 when the test statistic exceeds the critical value.

C. The critical value is based on the researcher's chosen level of significance.

D. If H0: μ ≤ 100 and H1: μ > 100, then the test is right-tailed.

We compare the p-value with α (not with the critical value).

Final test (SB)

6. Guidelines for the Jolly Blue Giant Health Insurance Company say that the average
hospitalization for a triple hernia operation should not exceed 30 hours. A diligent auditor
studied records of 16 randomly chosen triple hernia operations at Hackmore Hospital and
found a mean hospital stay of 40 hours with a standard deviation of 20 hours. "Aha!" she
cried, "the average stay exceeds the guideline." At α = .025, the critical value for a right-tailed
test of her hypothesis is:

A. 1.753

B. 2.131

C. 1.645

D. 1.960

Using Appendix D with d.f. = 16 - 1 = 15, we get t.025 = 2.131.

7. For a right-tailed test of a hypothesis for a population mean with n = 14, the value of the test
statistic was t = 1.863. The p-value is:

A. between .05 and .025.

B. between .10 and .05.

C. greater than .10.

D. less than .01.

For d.f. = 13, t.025 = 2.160 and t.05 = 1.771 or Excel =T.DIST.RT(1.863,13) = .0426.

8. For tests of a mean, if other factors are held constant, which statement is correct?

A. The critical value of Student's t increases as n increases.

B. A test statistic tcalc = 1.853 with n = 16 leads to rejection at α = .05 in a one-tailed test.

C. It is harder to reject the null hypothesis in a two-tailed test rather than a one-tailed test.

D. If we desire α = .10, then a p-value of .13 would lead us to reject the null hypothesis.

Rejection in a two-tailed test implies rejection in a one-tailed test, but not vice versa.
Final test (SB)

9. For a sample size of n = 100, and σ = 10, we want to test the hypothesis H0: μ = 100. The
sample mean is 103. The test statistic is:

A. 1.645

B. 1.960

C. 3.000

D. 0.300

zcalc = (103 - 100)/[(10)/1001/2] = 3.000.

10. In testing a proportion, which of the following statements is incorrect?

A. Using α = .05 rather than α = .01 would make it more likely that H0 will be rejected.

B. When the sample proportion is p = .02 and n = 150, it is safe to assume normality.

C. An 80 percent confidence interval is narrower than the 90 percent confidence interval,

ceteris paribus.

D. The sample proportion may be assumed approximately normal if the sample is large
enough.

We want at least 10 "successes," but np = 3 in this example.

11. The process that produces Sonora Bars (a type of candy) is intended to produce bars with a
mean weight of 56 gm. The process standard deviation is known to be 0.77 gm. A random
sample of 49 candy bars yields a mean weight of 55.82 gm. Find the test statistic to see
whether the candy bars are smaller than they are supposed to be.

A. -1.636

B. -1.645

C. -1.677

zcalc = (55.82 - 56)/[(0.77)/491/2] = -1.63636.

Final test (SB)

12. A sample of 16 ATM transactions shows a mean transaction time of 67 seconds with a
standard deviation of 12 seconds. Find the critical value to test whether the mean transaction
time exceeds 60 seconds at α = .01.

A. 2.947

B. 2.602

C. 2.583

D. 2.333

For d.f. = 15, use Appendix D to find t.01 = 2.602.

13. Given H0: μ ≥ 18 and H1: μ < 18, we would commit Type I error if we:

A. conclude that μ ≥ 18 when the truth is that μ < 18.

B. conclude that μ < 18 when the truth is that μ ≥ 18.

C. fail to reject μ ≥ 18 when the truth is that μ < 18.

Rejecting a true null hypothesis is Type I error.

14. For a right-tailed test of a hypothesis for a single population mean with n = 10, the value of
the test statistic was t = 1.411. The p-value is:

A. between .05 and .025.

B. between .10 and .05.

C. greater than .10.

D. less than .001.

From Appendix D with d.f. = 9, t.05 = 1.833 and t.10 = 1.383.

Final test (SB)

15. Last year, 10 percent of all teenagers purchased a new iPhone. This year, a sample of 260
randomly chosen teenagers showed that 39 had purchased a new iPhone. To test whether the
percent has risen, the p-value is approximately:

A. .0501

B. .0314

C. .0492

D. .0036

p = 39/260 = .15, π0 = .10, zcalc = (.15 - .10)/[(.10)(1 - .10)/260]1/2 = 2.68742, so from Appendix C
we get P(Z > 2.69) = .0036 or from Excel =1-NORM.S.DIST(2.68742,1) = .0036.

REVIEW QUESTIONS FOR CHAPTER 10

Final test (SB)

1. In a left-tailed test comparing two means with unknown variances assumed to be equal, the test
statistic was t = -1.81 with sample sizes of n1 = 8 and n2 = 12. The p-value would be:

A. between .025 and .05.

B. between .01 and .025.

C. between .05 and .10.

D. Must know α to answer.

2. In a left-ailed test comparing two means with variances unknown but assumed to be equal, the
sample sizes were n1 = 8 and n2 = 12. At α = .05, the critical value would be:

A. -1.960

B. -2.101

C. -1.734

D. -1.645
Final test (SB)

3. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and p2 = 18/50.
The test statistic is approximately:

A. -1.44.

B. -1.31.

C. -1.67.

D. Must know α to answer.

4. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and p2 = 18/50.
The pooled proportion is:

A. .20

B. .24

C. .36

D. .30
5. John wants to compare two means. His sample statistics
were and . Assuming equal variances,
the pooled variance is:

A. 4.5

B. 4.9

C. 5.1

D. 3.8
6. In a random sample of patient records in Cutter Memorial Hospital, six-month postoperative
exams were given in 90 out of 200 prostatectomy patients, while in Paymor Hospital such exams
were given in 110 out of 200 cases. In comparing these two proportions, normality of the
difference may be assumed because:

A. the populations are large enough to be assumed normal.

B. the probability of success can reasonably be assumed constant.

C. the samples are random, so the proportions are unbiased estimates.

D. nπ ≥ 10 and n(1 - π) ≥ 10 for each sample taken separately.

Final test (SB)

7. Management of Melodic Kortholt Company compared absenteeism rates in two plants on the
third Monday in November. Of Plant A's 800 employees, 120 were absent. Of Plant B's 1200
employees, 144 were absent. MegaStat's results for a two-tailed test are shown below.

At α = .05, the two-tailed test for a difference in proportions is:

A. just barely significant.

B. not quite significant.

C. not feasible due to nonnormality.

8. A new policy of "flex hours" is proposed. Random sampling showed that 28 of 50 female
workers favored the change, while 22 of 50 male workers favored the change. Management
wonders if there is a difference between the two groups. What is the p-value for a two-tailed
test?

A. .3849

B. .1151

C. .2301

D. .3453
Final test (SB)

9. Two well-known aviation training schools are being compared using random samples of their
graduates. It is found that 70 of 140 graduates of Fly-More Academy passed their FAA exams on
the first try, compared with 104 of 260 graduates of Blue Yonder Institute. To compare the pass
rates, the pooled proportion would be:

A. .500

B. .435

C. .400

D. .345
10. Of 200 youthful gamers (under 18) who tried the new Z-Box-Plus game, 160 rated it "excellent,"
compared with only 144 of 200 adult gamers (18 or over). The 95 percent confidence interval for
the difference of proportions would be approximately:

A. [+.013, +.263].

B. [-.014, +.188].

C. [-.003, +.163].

D. [+.057, +.261].
11. Carver Memorial Hospital's surgeons have a new procedure that they think will decrease the
time to perform an appendectomy. A sample of 8 appendectomies using the old method had a
mean of 38 minutes with a variance of 36 minutes, while a sample of 10 appendectomies using
the experimental method had a mean of 29 minutes with a variance of 16 minutes. For a right-
tail test for equal means (assume equal variances), the critical value at α = .10 is:

A. 1.746

B. 1.337

C. 2.120

D. 2.754
Final test (SB)

12. A medical researcher wondered if there is a significant difference between the mean birth
weight of boy and girl babies. Random samples of 5 babies' weights (pounds) for each gender
showed the following:

To test the researcher's hypothesis, we should use the:

A. paired (dependent) samples t-test.

B. independent samples t-test.

C. large-sample z-test.

D. t-test for correlation.

13. In a test of a new surgical procedure, the five most respected surgeons in FlatBroke Township
were invited to Carver Hospital. Each surgeon was assigned two patients of the same age,
gender, and overall health. One patient was operated upon in the old way, and the other in the
new way. Both procedures are considered equally safe. The surgery times are shown below:

The time (in minutes) to complete each procedure was carefully recorded. In a right-tailed test
for a difference of means, the test statistic is:

A. 3.162

B. 1.645

C. 1.860

D. 2.132
Final test (SB)

14. A corporate analyst is testing whether mean inventory turnover has increased. Inventory
turnover in six randomly chosen product distribution centers (PDCs) is shown.

The degrees of freedom for the appropriate test would be:

A. 6.

B. 5.

C. 4.

D. 12.
15. The table below shows the mean number of daily errors by air traffic controller trainees during
the first two weeks on the job. We want to perform a paired t-test at α = .05 to see if the mean
daily errors decreased significantly.

The test statistic is:

A. 1.25

B. 1.75

C. 0.87

D. 0.79
Final test (SB)

16. Does the Speedo Fastskin II Male Hi-Neck Bodyskin competition racing swimsuit improve a
swimmer's 200-yard individual medley performance times? A test of 100 randomly chosen
male varsity swimmers at several different universities showed that 66 enjoyed improved
times, compared with only 54 of 100 female varsity swimmers. To test for equality in the
proportions of men versus women who experienced improvement, the test statistic is
approximately:

A. 1.73

B. 1.47

C. 2.31

D. Can't tell without knowing the tail of the test.

17. Group 1 has a mean of 13.4 and group 2 has a mean of 15.2. Both populations are known to
have a variance of 9.0 and each sample consists of 18 items. What is the test statistic to test for
equality of population means?

A. -1.755

B. -1.643

C. -1.800

D. -1.285
18. Which is not a type of comparison for which you would anticipate a two-sample test?

A. Before versus After.

B. Old versus New.

C. Current versus Target.

D. Experimental versus Control.

Final test (SB)

19. The coach of an adult Master's Swim class selected eight swimmers within each of the two age
groups shown below. A 50-yard freestyle time is recorded for each swimmer. The resulting
times (seconds) are shown below. Which statistical test would you choose to compare the two
groups?

A. t-test for independent samples with known variances

B. t-test for independent samples with unknown variances

C. t-test for paired samples

D. z-test for two independent proportions

20. Assuming unequal variances in a t-test for a zero difference of two means, we would:

A. sum the degrees of freedom for each sample.

B. use the larger degrees of freedom for simplicity.

C. use a complicated formula for the degrees of freedom.

D. use a z-test to be conservative in the calculation.

ANSWERS
Final test (SB)

1. In a left-tailed test comparing two means with unknown variances assumed to be equal, the test
statistic was t = -1.81 with sample sizes of n1 = 8 and n2 = 12. The p-value would be:

A. between .025 and .05.

B. between .01 and .025.

C. between .05 and .10.

D. Must know α to answer.

For d.f. = 18, Appendix D gives t.05 = 1.734 and t.025 = 2.101, or for an exact answer you can use
the Excel function =T.DIST(-1.81,8+12-2,1) = .04351.

2. In a left-ailed test comparing two means with variances unknown but assumed to be equal,
the sample sizes were n1 = 8 and n2 = 12. At α = .05, the critical value would be:

A. -1.960

B. -2.101

C. -1.734

D. -1.645

For d.f. = 18, Appendix D gives t.05 = -1.734.

Final test (SB)

3. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and p2 = 18/50.
The test statistic is approximately:

A. -1.44.

B. -1.31.

C. -1.67.

D. Must know α to answer.

Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in zcalc.

4. In a test for equality of two proportions, the sample proportions were p1 = 12/50 and p2 =
18/50. The pooled proportion is:

A. .20

B. .24

C. .36

D. .30

Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in the calculation.

5. John wants to compare two means. His sample statistics

were and . Assuming equal
variances, the pooled variance is:

A. 4.5

B. 4.9

C. 5.1

D. 3.8

The pooled variance is [(n1 - 1)s12 + (n2 - 1)s22]/[(n1 - 1) + (n2 - 1)] = 4.5.
Final test (SB)

6. In a random sample of patient records in Cutter Memorial Hospital, six-month postoperative

exams were given in 90 out of 200 prostatectomy patients, while in Paymor Hospital such
exams were given in 110 out of 200 cases. In comparing these two proportions, normality of
the difference may be assumed because:

A. the populations are large enough to be assumed normal.

B. the probability of success can reasonably be assumed constant.

C. the samples are random, so the proportions are unbiased estimates.

D. nπ ≥ 10 and n(1 - π) ≥ 10 for each sample taken separately.

We have at least 10 successes (x1 = 90, x2 = 110) and 10 failures (n1 - x1 = 110, n2 - x2 = 90).

7. Management of Melodic Kortholt Company compared absenteeism rates in two plants on

the third Monday in November. Of Plant A's 800 employees, 120 were absent. Of Plant B's
1200 employees, 144 were absent. MegaStat's results for a two-tailed test are shown below.

At α = .05, the two-tailed test for a difference in proportions is:

A. just barely significant.

B. not quite significant.

C. not feasible due to nonnormality.

Because the p-value is slightly greater than .05, we cannot reject H0.
Final test (SB)

8. A new policy of "flex hours" is proposed. Random sampling showed that 28 of 50 female
workers favored the change, while 22 of 50 male workers favored the change. Management
wonders if there is a difference between the two groups. What is the p-value for a two-tailed
test?

A. .3849

B. .1151

C. .2301

D. .3453

Combined proportion is pc = (28 + 22)/(50 + 50) = .50, so zcalc = (.56 - .44)/[.50(1 - .50)/50 +
50(1 - .50)/50]1/2 = -1.20 and 2 × P(Z < -1.20) = 2 × .1151 = .2302 (or .2301 using Excel).

9. Two well-known aviation training schools are being compared using random samples of their
graduates. It is found that 70 of 140 graduates of Fly-More Academy passed their FAA exams
on the first try, compared with 104 of 260 graduates of Blue Yonder Institute. To compare
the pass rates, the pooled proportion would be:

A. .500

B. .435

C. .400

D. .345

Combined proportion is pc = (70 + 104)/(140 + 260) = .435.

Final test (SB)

10. Of 200 youthful gamers (under 18) who tried the new Z-Box-Plus game, 160 rated it
"excellent," compared with only 144 of 200 adult gamers (18 or over). The 95 percent
confidence interval for the difference of proportions would be approximately:

A. [+.013, +.263].

B. [-.014, +.188].

C. [-.003, +.163].

D. [+.057, +.261].

Do not pool the proportions when you calculate the standard error of p1 - p2.

11. Carver Memorial Hospital's surgeons have a new procedure that they think will decrease the
time to perform an appendectomy. A sample of 8 appendectomies using the old method had
a mean of 38 minutes with a variance of 36 minutes, while a sample of 10 appendectomies
using the experimental method had a mean of 29 minutes with a variance of 16 minutes. For
a right-tail test for equal means (assume equal variances), the critical value at α = .10 is:

A. 1.746

B. 1.337

C. 2.120

D. 2.754

For d.f. = (n1 - 1) + (n2 - 1) = 7 + 9 = 16, we get t.10 = 1.337.

Final test (SB)

12. A medical researcher wondered if there is a significant difference between the mean birth
weight of boy and girl babies. Random samples of 5 babies' weights (pounds) for each gender
showed the following:

To test the researcher's hypothesis, we should use the:

A. paired (dependent) samples t-test.

B. independent samples t-test.

C. large-sample z-test.

D. t-test for correlation.

Although arranged side by side, these are unrelated data (independent samples).

13. In a test of a new surgical procedure, the five most respected surgeons in FlatBroke Township
were invited to Carver Hospital. Each surgeon was assigned two patients of the same age,
gender, and overall health. One patient was operated upon in the old way, and the other in
the new way. Both procedures are considered equally safe. The surgery times are shown
below:

The time (in minutes) to complete each procedure was carefully recorded. In a right-tailed
test for a difference of means, the test statistic is:

A. 3.162

B. 1.645

C. 1.860

D. 2.132

The test statistic is tcalc = (5 - 0)/[(3.5355)/51/2] = 3.162.

Final test (SB)

14. A corporate analyst is testing whether mean inventory turnover has increased. Inventory
turnover in six randomly chosen product distribution centers (PDCs) is shown.

The degrees of freedom for the appropriate test would be:

A. 6.

B. 5.

C. 4.

D. 12.

These are paired samples, so d.f. = 6 - 1 = 5.

15. The table below shows the mean number of daily errors by air traffic controller trainees
during the first two weeks on the job. We want to perform a paired t-test at α = .05 to see if
the mean daily errors decreased significantly.

The test statistic is:

A. 1.25

B. 1.75

C. 0.87

D. 0.79

Paired data test statistic is tcalc = (0.8286 - 0)/[(1.7547)/71/2] = 1.249.

Final test (SB)

16. Does the Speedo Fastskin II Male Hi-Neck Bodyskin competition racing swimsuit improve a
swimmer's 200-yard individual medley performance times? A test of 100 randomly chosen
male varsity swimmers at several different universities showed that 66 enjoyed improved
times, compared with only 54 of 100 female varsity swimmers. To test for equality in the
proportions of men versus women who experienced improvement, the test statistic is
approximately:

A. 1.73

B. 1.47

C. 2.31

D. Can't tell without knowing the tail of the test.

Combined proportion is pc = (66 + 54)/(100 + 100) = .60, so zcalc = (.66 - .54)/[.60(1 - .60)/100 +
.60(1 - .60)/100]1/2 = 1.73.

17. Group 1 has a mean of 13.4 and group 2 has a mean of 15.2. Both populations are known to
have a variance of 9.0 and each sample consists of 18 items. What is the test statistic to test
for equality of population means?

A. -1.755

B. -1.643

C. -1.800

D. -1.285

With known variances, zcalc = (13.4 - 15.2)/[9.0/18 + 9.0/18]1/2 = -1.800.

18. Which is not a type of comparison for which you would anticipate a two-sample test?

A. Before versus After.

B. Old versus New.

C. Current versus Target.

D. Experimental versus Control.

The point of comparison is between two samples, not a benchmark or target.

Final test (SB)

19. The coach of an adult Master's Swim class selected eight swimmers within each of the two
age groups shown below. A 50-yard freestyle time is recorded for each swimmer. The
resulting times (seconds) are shown below. Which statistical test would you choose to
compare the two groups?

A. t-test for independent samples with known variances

B. t-test for independent samples with unknown variances

C. t-test for paired samples

D. z-test for two independent proportions

Despite being arranged side-by-side, there is no link between the columns. The similar
standard deviations suggest that it would be reasonable to "pool" the variances (pun
intended) although this question was not posed.

20. Assuming unequal variances in a t-test for a zero difference of two means, we would:

A. sum the degrees of freedom for each sample.

B. use the larger degrees of freedom for simplicity.

C. use a complicated formula for the degrees of freedom.

D. use a z-test to be conservative in the calculation.

The formula for Welch's adjusted degrees of freedom is not easy without a computer.