Student Question “Gorrect 1 fing this exam,” OTMO>ONVIGBAAIADANOB>OBU>O>OGI4TOyTOM>OTD Student DMOAOSOKOHIBGATAOATDSFHOOA>HOGHTTIO> TOUS TOD Missed Points Exam Score ST 260 Exam 2 EL Points Off Points Total 3 3 a 2 2 33 7 NA RUNNNNNNN ANNAN ANN NNN SERN NNN DSR EWAN PARTIAL, PARTIAL, PARTIAL, PARTIAL, PARTIAL PARTIAL, PARTIAL PARTIAL PARTIAL, PARTIAL PARTIAL PARTIAL, FOLLOW THROUGH FOLLOW THROUGH FOLLOW THROUGH FOLLOW THROUGHins, You may use a ealeulator, the formula sheet, and Z and t tables provided to you. No other electronic device of any ‘be used during this exam. Show all work where appropriate. Each question is worth 2-4 points. Fill in each blank with frrect answer in CAPITAL LETTERS (A, B, C, etc.) and circle the letter of the correct answer below each question. B._ which one of te following types of variables isthe normal distribution used to model? (A) discrete quantitative Beoatinvous quanti (C) nominal categorical (D) ordinal categorical DUG 662d B__ roca sandard normal variable 2: CED EZ <6.48) (a) 6747 029 (©).0924 (D) 9857 ©3048 © 6509 (@) 3108 9671 +4793 3. [7 Forastandard normal variable Z: P(Z22.08)= (a) .9793 (B) .0082 (©).0207 (D).0212 (B) 4821 ons (G).0517 (H) 9483 ‘Assume that charitable deductions on Form 1040 income tax returns follow a normal distribution with a mean of $4300 and a standard deviation of $1200. | 4, AA What percentage of tax returns claim a charitable deduction of less than $5,000? 1.90% (B) 41.67% (C) 74.22% (D) 58.33% (E) 25.88% (F) 28.10% (G) 31.59% (H) 68.41% oe Pitts ae Te oe J en Sea Seles O= 1200 sisae eee ee 5 p The IRS has a policy to audit Form 1040 income tax returns having very large charitable deductions. If the IRS wants to limit these audits to 0.6% of all returns, what is the amount of the smallest charitable deduction that would result in an audit? (A) 2,084 @s1.288 (82,434 (D) $6,166 @s7313 (F) $6,594 (G) $7,034 (H) $3,180 ar te: pa) at aoe 1200 “2 O eae 12881g 2011 Exam 2 Page 2 y-By-Night Airlines flies sever Birmingham at 6PM. The flight ti hours and a standard deviation of 0.62 hours. flights are late? al times a week from Birmingham to Houston. All flights are scheduled to leave imes from Birmingham to Houston are normally distributed with a mean of 2.30 sD {A flight is considered late if it takes longer than 2.8 hours to arrive in Houston. What percentage of (a) 80.6% (8) 316% (29.1% Bd09% 25.9% @)a17% 791% (HY 68.4% 22,30 6 =-62 US. - 806 gaye Tiemon cl CS! ee ees ee Ifa random sample of 36 flights is taken, what isthe probability thatthe average Might time of the 36 fights is less than 25 hours? wane @) 6255 ©0262 (0) 9920 ©) 3745 (5262 (@) 9332 @sns wes wl = 1.435 21996 = 478 o AAA How would your answer to Question 7 change ifthe sample size increased to 50 flights? Arwrses (B) decreases (©staysthe same —_(D) could not be computed How would your answer to Question 7 change if the original population of flight times had NOT followed a normal distribution? (A) increases (B) decreases (©) stays the same Oye ontvecnptt 20.% Caper False: As the sample size m increases, a histogram of the sample data approaches @ normal i tribution. ‘True or GQise) [fa null hypothesis is rejected atthe 1% level of significance, then it would also be rejected at the 5% level. Hy rejected ‘True or If we fail to reject Ho, there is no possibility of a Type I error.Exam 2 ring 2011 ‘The term “sampling distribution” refers to the distribution of @Ddwe sample of data. (B) all possible sample means for all possible sample sizes. €) the original population of iual values. {®all possible sample means for a fixed sample size. 14, 19 The standard eror measures (Aine variation of sample means for a fixed sample size. (B)yhe variation of the population mean, {©)4he amount by which X misses 1. 42ythe variation of individual values in the population. 15, D_ the Central Limit Theorem sates that the sampling distribution of X will be normal if (Agfthe population has a normal distribution, {the population size is larger than 30. “he population size is large enough. e sample size is large enough. An independent used book dealer wants to estimate the mean profit of her sales. She randomly selected a sample of ‘e purchases from this year. Assume that the population of individual profits from purchases follow a normal distribution. The dollar values of profits for each purchase in the sample are: 18, 27, 20, 17, 23. 16, A ‘The sample standard deviation of these five data values is @roe (8) 132 (juss (D) 3.633 (E) 5.390 (P48 e (G)3.42 (H) 6.84 | = Di ESrOr Te VF Q43br Ite. bb -4 5 5 a ai S=4%2 eae | Ez ie 524, 062 | 1. ‘4.90% confidence interval for the population mean profit per sale is | (ay21 £425 (B)21£2.99 (212028 (D)21 £15.73 | | (©)2123.46 143.87 2128.6 asin | & = 0S 9 32. BOR - 3, 97 | ee 21 £3.87 | 18. One year ago, the mean profit per sale for the book dealer was $18. With 90% confidence, what | conclusion can be reached about how the true current mean profit compares to last year? (A) There is sufficient evidence to conclude that the mean profit per purchase has not increased (B) There is insufficient evidence to conclude that the mean profit per purchase has increased, hhere is insufficient evidence to conclude that the mean profit per purchase has not increased. (D) There is sufficient evidence to conclude that the mean profit per purchase has increased. Aoue® 16ing 2011 Exam 2 Page4 In constructing a 75% confidence interval, if the sample size is 12 and the value of the population standard deviation is 32.6, then the table value of the appropriate confidence multiplier is (A) 1363 (B) 0.670 or 150 (D) not in the table nate ons ee N25 = 13 esi7- 22 - B oat Bares IS WE > Sg 20. In constructing a 98% confidence interval, if the sample size is 25, and the value of the sample standard deviation is 18.2, then the table value of the appropriate confidence mul (ay2.492 326 (© 2.485 (D) not in the table pers Seate2, 21, B wndrtn8cSuscence tevelis increased, the margin of enor (A) decreases @increases (C)stays thesame —_(D) cannot be determined 22. (When the confidence level is inereased, the standard error of the mean (A) decreases (B) increases ©siays the same _(D) cannot be determined ‘Twenty-five years ago, the average age at which U.S. workers retired was 62.1 years. The Center for Retirement Research is interested in estimating the current average age at which American workers retire. Based on a random sample of 842 recent retirees, a 95% confidence interval for the true average age at retirement is (62.8, 65.2). ‘Answer each statement below with true (7), false (F), or cannot be determined (C). 23. e At 95% confidence, the estimated margin of error of the sample mean based on 842 recent retirees is 2.4 years. n23u2 x ob 24. ‘The average retirement age for the 842 retirees is between 62.8 and 65.2. 25. The average retirement age for all recent U.S. retirees is between 62.8 and 65.2. 26. Elm ‘At 95% confidence, there is sufficient evidence to conclude that the current average retirement age for recent U.S. retirees is higher than it was 25 years ago. 27, E_ a9%%contidence interval using the same data will be narrower than (62.8, 65.2)superTemps Agency finds it difficult to retain their employees because most of them are looking for full-time positions and will leave the SuperTemps Agency when a good opportunity comes along. For the 32 most recent ‘SuperTemps employees who terminated, the average time of employment was 7.2 months and the standard deviation was 10.5 months. Treat this as a random sample of 32 SuperTemps employees. +0900 confidence level, the estimated margin of error ofthe sample mean is 31 Br 33. (A) 1.86 months (B) 1.21 months (C) 4.27 months: (D) 3.05 months (£)2.43 months (@)1781 months (G)3.15 months (H) 8.34 months 232 2.05 125 ne 2 A Cab: Fae 2 3/5 210.5 taz= Lb Bb ‘A.90% confidence interval for the true average time of employment (in months) is (A) 5.02 109.38 & 05t01035 — (C)-10.61 1025.01 (D) 6.97 07.43 (6) 4.77 109.63 (5.3410 9.06 (G)4.15101025 (6.27 108.13 722315 = (4.05, 10.35) Bb Historically, the average length of employment has held steady at 5.0 months, Based on this recent sample of 32 employees. is there sufficient evidence to conclude that the true population average length of employment for SuperTemps Agency employees has increased? Why or why not? Oe because 5.0 is in the confidence interval. )) No, because 7.2 is in the confidence interval. (A) Yes, because 5.0 is not in the confidence interval (© Yes, because the mean 7.2 is higher than 5.0 LE whatshape would the population distribution of employment times mos ikely have? (A) normal (B) symmetric (©) skewed left @yperes right eh orien beste ni clon? S46) We have to assume that the population of employment times has a normal distribution. B ‘The 90% confidence interval contains the true mean employment time ere is a 90% probability that the true mean employment time is in our confidence interval. (D) No assumptions about normality are necessary because the CLT applies in this situation. If an individual employee stayed with SuperTemps for 18 months, would that be considered “unusually long”? Why or why not? AAS Yes, because a value of 18 months is well outside the 90% confidence interval. ‘Yes, because the value of 18 months more than three standard deviations from the mean. 1, because the value of 18 months is less than two standard deviations from the mean. |BBINo, because 18 months isa reasonable length of employment timeVrve Student Government Association is concemed about the rising cost of college textbooks, claiming that costs / 8 7 nave increased from last year’s average of $450 per student in Spring 2010. The cost of textbooks inthe Spring 7/2011 term for a random sample of 16 students was collected to validate the SGA’s claim. Minitab output is shown >» AR SRP ey MON2S ‘One-Sample Z: Books Oy =, 005 eee Test of mu = 450 vs not = 450 Crit BST 2 6.7 ; 5 4 947» Mb? The assumed standard deviation = 100 2. We = B5.9F Variable N Mean StDev SE Mean 99% cr P Soom gases ties? Deze ("ae -epeay, 146 2A 34. _(— Which of the following symbols represents the value of 100 in the output? Ne ye hs o ) oy # - & BO ares 35. Which of the following symbols represents the value of 116.7 in the output? = ae & ®) sg Oo ©) ox = é me 36. ‘What is the value of the missing Z value in the output? SaIsIae (a) “146 @) 248 Qc aa E = 36. ©) 1.86 @) 125 @ -2.48 @) 031 26.2 Be wa 46 31 What isthe value of the missing p-value in the output? (A) 0.7566 Or (© 0.001 (D) 02112 (E) 0.1442 @) 0.2840 @ 00721 0.0106 38. FA 90% confidence interval forthe tre average cost of books per student in Spring 2011 is (Ay$4152010 $557.80 (B)$402.5010 $570.50 (C)$369.80t0 $603.20 (D) $389.80 10 $583.20 PR100501 $572.50 $428.35 10 $544.65 (G)$3192010 $653.80 (H) $422.10 10 $550.90 a=zl Pe ee 39. With a 1% level of significance, what conclusion can be reached about the SGA’s claim that the average ‘book cost has increased from last year? (A) There is sufficient evidence to conclude that the average book cost per student has not increased, (B)Ther is sufficient evidence to conclude thatthe average book cost per student has increased () There is insufficient evidence to conclude that the average book cost per student has increased. (D) There ii sufficient evidence to conclude that the average book cost per student has not increased.