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Final Review Worksheet-STAT 362-Final Review

Business Administration (Addis Ababa University)

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STAT 362 Statistics for Management II - Final Review Worksheet

Statistics for Management II-STAT 362-Final Review

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.

____ 1. The ability of an interval estimate to contain the value of the population parameter is described by the
a. confidence level
b. degrees of freedom
c. precise value of the population mean µ
d. degrees of freedom minus 1

Exhibit 8-2
A random sample of 121 automobiles traveling on an interstate showed an average speed of 65 mph. From
past information, it is known that the standard deviation of the population is 22 mph.

____ 2. Refer to Exhibit 8-2. If the confidence coefficient is reduced to 0.9, the standard error of the mean
a. will increase
b. will decrease
c. remains unchanged
d. becomes negative
____ 3. When constructing a confidence interval for the population mean and the standard deviation of the sample is
used, the degrees of freedom for the t distribution equals
a. n-1
b. n
c. 29
d. 30
____ 4. The p-value
a. is the same as the Z statistic
b. measures the number of standard deviations from the mean
c. is a distance
d. is a probability
____ 5. For a two tail test, the p-value is the probability of obtaining a value for the test statistic as
a. likely as that provided by the sample
b. unlikely as that provided by the sample
c. likely as that provided by the population
d. unlikely as that provided by the population
____ 6. The probability of making a Type II error is denoted by
a. α
b. β
c. 1 - α
d. 1 - β

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STAT 362 Final Review Worksheet

____ 7. In order to test the following hypotheses at an α level of significance

H0: µ ≤ 100
Ha: µ > 100

the null hypothesis will be rejected if the test statistic Z is

a. ≥ Zα
b. ≤ Zα
c. < -Zα
d. < 100

Exhibit 10-4
The following information was obtained from independent random samples.
Assume normally distributed populations with equal variances.

Sample 1 Sample 2
Sample Mean 45 42
Sample Variance 85 90
Sample Size 10 12

____ 8. Refer to Exhibit 10-4. The degrees of freedom for the t-distribution are
a. 22
b. 21
c. 20
d. 19

Exhibit 10-5
The following information was obtained from matched samples.

Individual Method 1 Method 2

1 7 5
2 5 9
3 6 8
4 7 7
5 5 6

____ 9. Refer to Exhibit 10-5. If the null hypothesis is tested at the 5% level, the null hypothesis
a. should be rejected
b. should not be rejected
c. should be revised
d. None of these alternatives is correct.
____ 10. The value of F.05 with 8 numerator and 19 denominator degrees of freedom is
a. 2.48
b. 2.58
c. 3.63
d. 2.96

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STAT 362 Final Review Worksheet

____ 11. The symbol used for the variance of the population is
a. σ
b. σ2
c. S
d. S2
____ 12. The symbol used for the variance of the sample is
a. σ
b. σ2
c. S
d. S2
____ 13. For an F distribution, the number of degrees of freedom for the numerator
a. must be larger than the number of degrees for the denominator
b. must be smaller than the number of degrees of freedom for the denominator
c. must be equal to the number of degrees of freedom for the denominator
d. can be larger, smaller, or equal to the number of degrees of freedom for the denominator
____ 14. The sampling distribution of the quantity (n-1)s 2/σ2 is the
a. chi-square distribution
b. normal distribution
c. F distribution
d. t distribution

Exhibit 11-5

n = 14 s = 20 H0: σ2 ≤ 500
Ha: σ2 > 500

____ 15. Refer to Exhibit 11-5. The test statistic for this problem equals
a. .63
b. 10.4
c. 1.04
d. 0.52
____ 16. Refer to Exhibit 11-5. The null hypothesis is to be tested at the 5% level of significance. The critical value(s)
from the table is(are)
a. 22.362
b. 23.685
c. 5.009 and 24.736
d. 5.629 and 26.119

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STAT 362 Final Review Worksheet

Exhibit 13-3
To test whether or not there is a difference between treatments A, B, and C, a sample of 12 observations has
been randomly assigned to the 3 treatments. You are given the results below. Assume that α = 0.05.

Treatment Observation
A 20 30 25 33
B 22 26 20 28
C 40 30 28 22

____ 17. Refer to Exhibit 13-3. The null hypothesis

a. should be rejected
b. should not be rejected
c. should be revised
d. None of these alternatives is correct.
____ 18. In a simple regression analysis (where Y is a dependent and X an independent variable), if the Y intercept is
positive, then
a. there is a positive correlation between X and Y
b. if X is increased, Y must also increase
c. if Y is increased, X must also increase
d. None of these alternatives is correct.
____ 19. In regression analysis, the variable that is being predicted is the
a. dependent variable
b. independent variable
c. intervening variable
d. is usually x
____ 20. In simple linear regression analysis, which of the following is not true?
a. The F test and the t test yield the same results.
b. The F test and the t test may or may not yield the same results.
c. The relationship between X and Y is represented by means of a straight line.
d. The value of F = t2.

Exhibit 14-4
Regression analysis was applied between sales data (in $1,000s) and advertising data (in $100s) and the
following information was obtained.

8 = 12 + 1.8 x
Y

n = 17
SSR = 225
SSE = 75
Sb1 = 0.2683

____ 21. Refer to Exhibit 14-4. Based on the above estimated regression equation, if advertising is $3,000, then the
point estimate for sales (in dollars) is
a. $66,000
b. $5,412
c. $66
d. $17,400

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STAT 362 Final Review Worksheet

Problem

22. Below you are given ages that were obtained by taking a random sample of 9 undergraduate students. Assume
the population has a normal distribution.

19 22 23 19 21 22 19 23 21

a. What is the point estimate of µ?

b. Construct a 99% confidence interval for the average age of undergraduate students.
c. Construct a 98% confidence interval for the average age of undergraduate students.
d. Discuss why the 98% and 99% confidence intervals are different.
23. In order to determine the average weight of carry-on luggage by passengers in airplanes, a sample of 16
pieces of carry-on luggage was weighed. The average weight was 20 pounds. Assume that we know the
standard deviation of the population to be 8 pounds.
a. Determine a 97% confidence interval estimate for the mean weight of the carry-on luggage.
b. Determine a 95% confidence interval estimate for the mean weight of the carry-on luggage.
24. Consider the following hypothesis test:

H0: µ ≥ 14
Ha: µ < 14

A sample of 64 provides a sample mean of 13 and a sample standard deviation of 4.

a. Determine the standard error of the mean.

b. Compute the value of the test statistic.
c. Determine the p-value; and at 95% confidence, test the above hypotheses.
25. You are given the following information obtained from a random sample of 5 observations. Assume the
population has a normal distribution.

20 18 17 22 18

You want to determine whether or not the mean of the population from which this sample was taken is
significantly less than 21.
a. State the null and the alternative hypotheses.
b. Compute the standard error of the mean.
c. Determine the test statistic.
d. Determine the p-value and at 90% confidence, test whether or not the mean of the population is
significantly less than 21.

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STAT 362 Final Review Worksheet

26. Consider the following hypothesis test:

µ1 - µ2 ≤ 0
µ1 - µ2 > 0

The following results are for two independent samples taken from two populations.
Sample 1 Sample 2
Sample Size 35 37
Sample Mean 43 37
Sample Variance 140 170

a. Determine the degrees of freedom for the t distribution.

b. Compute the test statistic.
c. What is your decision based on α = 0.05?
27. The daily production rates for a sample of factory workers before and after a training program are shown
below. Let d = After - Before.

Worker Before After

1 6 9
2 10 12
3 9 10
4 8 11
5 7 9

We want to determine if the training program was effective.

a. Give the hypotheses for this problem.
b. Compute the test statistic.
c. At 95% confidence, test the hypotheses. That is, did the training program actually increase the
production rates?
28. We are interested in determining whether or not the variances of the starting salaries of accounting majors is
significantly different from management majors. The following information was gathered from two samples.

Accounting Management
Sample Size 21 18
Average Monthly Income $3,600 $3,500
Sample Variance $900 $400

At 90% confidence, test to determine whether or not the variances are equal.

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STAT 362 Final Review Worksheet

29. You are given the following data regarding a sample.

X
16
12
21
10
13
18

a. Compute the mean and the variance.

b. Using the critical value approach, test to determine if the variance of the population from
which this sample is taken is significantly more than 12. Let α = 0.05.
30. A major automobile manufacturer claimed that the frequencies of repairs on all five models of its cars are the
same. A sample of 200 repair services showed the following frequencies on the various makes of cars.

Model of Car Frequency

A 32
B 45
C 43
D 34
E 46

At α = 0.05, test the manufacturer's claim.

31. The following table shows the results of recent study regarding gender of individuals and their selected field
of study.

Field of study Male Female TOTAL

Medicine 80 40 120
Business 60 20 80
Engineering 160 40 200
TOTAL 300 100 400

We want to determine if the selected field of study is independent of gender.

a. Compute the test statistic.
b. Using the p-value approach at 90% confidence, test to see if the field of study is independent of
gender.
c. Using the critical method approach at 90% confidence, test for the independence of major and
gender.

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STAT 362 Final Review Worksheet

32. The marketing department of a company has designed three different boxes for its product. It wants to
determine which box will produce the largest amount of sales. Each box will be test marketed in five different
stores for a period of a month. Below you are given the information on sales.

Store 1 Store 2 Store 3 Store 4 Store 5

Box 1 210 230 190 180 190
Box 2 195 170 200 190 193
Box 3 295 275 290 275 265

a. State the null and alternative hypotheses.

b. Construct an ANOVA table.
c. What conclusion do you draw?
d. Use Fisher's LSD procedure and determine which mean (if any) is different from the others.
Let α = 0.01.

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