Download Question 1 - BrainMass

Question 1
Using a three-month moving average, the forecast value for October made at the end of September in the
following time series would be ____________.
July
12
Aug
5
Sept
7
Oct
11
7.67
8
9
6.89
7.25
Question 2
Use of a smoothing constant value greater than 0.5 in an exponential smoothing model gives more weight
to ___________.
the actual value for the current period
the actual value for the previous period
the forecast for the current period
the forecast for the previous period
the forecast for the next period
Question 3 (Multiple Choice Worth 1.5 points)
Use of a smoothing constant value less than 0.5 in an exponential smoothing model gives more weight to
___________.
the actual value for the current period
the actual value for the previous period
the forecast for the current period
the forecast for the previous period
the forecast for the next period
Question 4 (Multiple Choice Worth 1.5 points)
A time series with forecast values and error terms is presented in the following table. The mean squared
error (MSE) for this forecast is ___________.
Month
Actual
Forecast
Error
July
5
Aug
11
5
6.00
Sept
13
6.8
6.20
Oct
6
8.66
-2.66
Nov
5
7.862
-2.86
13.33
17.94
89.71
22.43
32.34
Question 5
Using 2000 as the base year, the 2002 value of a simple price index for the following price data is
_____________.
77.60
Year
1998
1999
2000
2001
2002
2003
Price
29.88
32.69
42.04
46.18
47.98
48.32
114.13
160.58
99.30
100.00
Question 6
Analysis of data for an autoregressive forecasting model produced the following tables.
Coefficients
Intercept
Standard t Statistic
Error
p-value
4.85094
5.745787 0.84426 0.40299
yt-1
-0.10434
0.062849 -1.66023 0.103822
yt-2
0.962669
0.065709 14.65044 9.69E-19
df
Regression
SS
MS
p-value
2 135753.5 67876.76 107.3336 1.91E-17
Residual
43 27192.79 632.3904
Total
45 162946.3
The forecasting model is __________.
yt = 5.745787 + 0.062849yt-1 + 0.065709yt-2
yt = 4.85094 - 0.10434yt-1 + 0.962669yt-2
yt = 0.84426 - 1.66023yt-1 + 14.65023yt-2
yt = 0.40299 + 0.103822yt-1 + 9.69yt-2
yt = 0.40299 + 0.103822yt-1 - 9.69yt-2
Question 7
F
The following graph of time-series data suggests a _______________ trend.
linear
quadratic
cosine
tangential
flat
Question 8
General Motors and Ford have produced cars with the same size diesel engine. We are interested in
determining whether or not there is a significant difference in the gas consumption of the two models of
automobiles. A random sample of 7 cars from each manufacturer is selected, and 7 drivers are selected
to drive one of GM and one of Ford cars for a specified distance implying that driver 1 drove the first GM
car and the first Ford car, driver 2 drove the second GM car and the second Ford car, driver 3 drove third
GM car and the third Ford car, and so on. The MPG (miles per gallon) data is recorded and summarized
in the following table:
Driver
General Motors
Model
(MPG)
Ford Model
(MPG)
1
29
26
2
25
23
3
26
27
4
25
25
5
22
24
6
24
23
7
27
25
Which of the following is a correct statement if the objective of the test of hypothesis is to determine
whether there is a difference in the gas consumption of the two models?
Ho:
GM
=
Ford
Ho: D = 0 (where D is the mean population difference)
Ho:
GM
Ho: D
Ford
0
None of the above answers is correct.
Question 9
Concerning the diesel engine gas mileage problem, what is (are) the critical value(s) of test statistics if
significance level is 5%?
2.447
+1.943
-1.943
1.96
1.645
-1.645
Question 10
Concerning diesel engine gas mileage problem, ASSUMING that null hypothesis can not be rejected at
5% significance level, what conclusion can be drawn concerning the gas mileage for GM and Ford car
models using this type of engine?
there is no difference in the gas mileage for this type of cars using this type of diesel engine for the two
manufactures
there is a difference in the gas mileage for this type of cars using this type of diesel engine for the two
manufacturers
GM cars equipped with this type of diesel engine get a higher gas mileage than Ford cars equipped with
the same type of engine
Ford cars equipped with type of diesel engine get a higher gas mileage than GM cars equipped with the
same type of engine
Question 11
Concerning diesel engine gas mileage problem, ASSUMING that null hypothesis can be rejected at 5%
significance level and conclusion is drawn that there is a difference in the gas mileage for this type of cars
using this type of diesel engine for the two manufacturers, what is the probability that this conclusion is
the wrong conclusion?
95%
100%
5%
0%
0.5%
There is not enough information to answer this question.
Question 12
Express Delivery, Inc. claims that it will deliver packages in less than 48 hours. Office Equipment
Company uses Express Delivery, Inc.’s package delivery service for delivering merchandise to its most
valued customers. To check the validity of the claim made by Express Delivery, Office Equipment
Company checked the delivery time for the last 37 order deliveries and learned that sample mean is 50
hours. Assume that population standard deviation of delivery time for all packages delivered by Express
Delivery is 4.9 hours. Which of the following is correct?
Ho:
< 48
Ho:
48
Ho:
> 48
Ha:
> 48
None of the above is the correct answer.
Question 13
Concerning the Express Delivery, Inc. problem statement, if test of hypothesis at 2% level of significance
is desired, what is (are) the critical value(s) for test statistics?
2.33
+2.33
-2.33
2.05
+2.05
-2.05
Question 14
Concerning the Express Delivery, Inc. problem statement, what is the value of the test statistic?
2.18
2.48
2.68
-2.18
-2.48
None of the above is the correct answer.
Question 15
Concerning the Express Delivery, Inc. problem statement, ASSUMING that null hypothesis should be
rejected, what statement can be made concerning the validity of claim made by Express Delivery, Inc.?
No conclusion can be drawn.
There is not enough information to answer this question.
The claim is not valid.
The claim is valid.
None of the above is the correct answer.
Question 16
Benson Medical Equipment is specialized in cardiovascular surgery equipment. The result of simple
regression analysis conducted on data gathered over ten years resulted in the linear equation
Y=9.75+13.2X, where X is the number of sales persons employed and Y is the sales volume in millions of
dollars. If Benson Medical Equipment plans to employ 20 salespersons next year, what would be the
predicted sales volume next year?
$274,000,000
$273,750,000
$273.75
$274.00
None of the above answers is correct.
Question 17
Concerning the Benson Medical problem statement, the slope of regression equation implies that:
the sales volume is independent of the number of salespersons employed.
the sales volume decreases with a decrease in the number of salespersons employed.
the sales volume decreases with an increase in the number of salespersons employed.
the sales volume increases with a decrease in the number of salespersons employed.
None of the above answers is correct.
Question 18
Concerning Benson Medical problem statement, the coefficient of determination is determined to be equal
to 0.94. What percentage of data is explained by this regression equation?
97.0%
88.4%
94.0%
There is not enough information to answer this question.
None of the above is the correct answer.
Question 19
Concerning Benson Medical problem statement, what is the value of the coefficient of correlation?
+0.9695
–0.9695
+0.8836
–0.8836
+0.9400
None of the above is the correct answer.
Question 20Concerning Benson Medical problem statement, which of the following is the
appropriate alternative hypothesis if the objective is to evaluate the overall significance of the model?
Ha:
<0
Ha:
>0
Ha:
0
None of the above answers is correct.
Question 21
Concerning Benson Medical problem statement, what conclusion can be drawn if the null hypothesis can
not be rejected at significance level of 1% when conducting a t-test?
The slope of regression model is statistically significant.
The slope of the regression model is not statistically significant.
The slope of regression model is negative.
No specific conclusion can be drawn.
None of the above answers is correct.
Question 22
The marketing department of a company has designed three different boxes for its product. It wants to
determine if sales for these boxes are different. Each box will be marketed in five different stores for a
period of a month. Sales data for each box for each of the five stores were recorded. Which of the
following would be the appropriate type of test of hypothesis if the objective is to determine whether the
sales for these boxes are different?
completely randomized design
factorial design
randomized block design
None of the above answers is correct
Question 23
In reference to marketing problem statement, if the objective is to determine whether the sales for these
boxes are different, indicate which of the following is a correct statement?
the appropriate null hypothesis is
1=
2=
3=
the appropriate null hypothesis is
1=
2=
3
the appropriate alternative hypothesis is
1=
2=
4=
5
3
None of the above answers is correct
Question 24
A group of 550 Michigan registered voters were asked about their political party affiliation and how they
would cast a vote concerning the proposal to increase federal income tax rate to resolve the federal
budget deficit over the next ten years. The following data was obtained:
Political
Party
Affiliation
Favor
Undecided
Oppose
Total
Democrat
180
80
40
300
Republican
150
20
30
200
Independent
10
20
20
50
Total
340
120
90
550
Which of the following is the appropriate null hypothesis if the objective is to determine whether the
register voters in Michigan will vote along the party line on the proposal to increase the federal income tax
rate?
The casting of the vote is dependent on voter’s political party affiliation.
The casting of the vote is independent of voter’s political party affiliation.
There is not enough information to answer this question.
None of the above answers is correct.
Question 25
Concerning Michigan registered voter problem statement, what is the critical value of test statistic if the
significance level is 10%?
1.28
7.7794
14.6387
26.2962
None of the above answers is correct.
Question 26
Concerning Michigan registered voter problem statement, ASSUMING that null hypothesis can not be
rejected based on significance level of 10%, what conclusion can be drawn?
The casting of the vote is dependent on voter’s political party affiliation.
The casting of the vote is independent of voter’s political party affiliation.
There is not enough information to answer this question.
None of the above answers is correct.
Question 27
A multiple regression analysis produced the following tables.
Predictor
Coefficients Standard Error t Statistic p-value
Intercept
752.0833
336.3158
2.236241 0.042132
x1
11.87375
5.32047
2.231711 0.042493
x2
1.908183
0.662742
2.879226 0.01213
Source
df
SS
MS
F
p-value
Regression
2
203693.3 101846.7 6.745406 0.010884
Residual
12
181184.1 15098.67
Total
14
384877.4
The regression equation for this analysis is ____________.
y = 752.0833 + 11.87375 x1 + 1.908183 x2
y = 752.0833 + 336.3158 x1 + 2.236241 x2
y = 336.3158 + 5.32047 x1 + 0.662742 x2
y = 2.236241 + 2.231711 x1 + 2.879226 x2
y = 2.236241 + 2.231711 x1 - 2.879226 x2
Question 28
A human resources analyst is developing a regression model to predict electricity production plant
manager compensation as a function of production capacity of the plant, number of employees at the
plant, and plant technology (coal, oil, and nuclear). The "plant technology" variable in this model is
______.
a qualitative variable
a dependent variable
a response variable
an indicator variable
an independent variable
Question 29
In regression analysis, outliers may be identified by examining the ________.
coefficient of determination
coefficient of correlation
p-values for the partial coefficients
residuals
R-squared value
Question 30
Yvonne Yang, VP of Finance at Discrete Components, Inc. (DCI), wants a regression model which
predicts the average collection period on credit sales. Her data set includes two qualitative variables:
sales discount rates (0%, 2%, 4%, and 6%), and total assets of credit customers (small, medium, and
large). The number of dummy variables needed for "sales discount rate" in Yvonne's regression model is
________.
1
2
3
4
7
Question 31
A multiple regression analysis produced the following tables.
Coefficients Standard Error t Statistic p-value
Intercept
707.9144
435.1183
1.626947 0.114567
x1
2.903307
81.62802
0.035568 0.971871
2
11.91297
3.806211
3.129878 0.003967
x1
df
SS
MS
F
p-value
Regression
2
32055153
16027577 47.34557 1.49E-09
Residual
27
9140128
338523.3
Total
29
41195281
For x1= 10, the predicted value of y is ____________.
1,632.02
1,928.25
10.23
314.97
938.35
Question 32
An "all possible regressions" search of a data set containing 7 independent variables will produce ______
regressions.
13
127
48
64
97
Question 33
Inspection of the following table of correlation coefficients for variables in a multiple regression analysis
reveals that the first independent variable entered by the forward selection procedure will be
___________.
y
y
x1
x1
1
-0.1661
1
x2
x3
x4
x5
x2
0.231849 -0.51728
1
x3
0.423522 -0.22264 -0.00734
x4
-0.33227 0.028957 -0.49869 0.260586
x5
0.199796 -0.20467 0.078916 0.207477 0.023839
1
1
1
x2
x3
x4
x5
x1
Question 34
Which of the following iterative search procedures for model-building in a multiple regression analysis
reevaluates the contribution of variables previously include in the model after entering a new independent
variable?
Backward elimination
Stepwise regression
Forward selection
All possible regressions
Backward selection
Question 35
Alan Bissell, a market analyst for City Sound Mart, is analyzing sales of heavy metal CD's. Alan's
dependent variable is annual heavy metal CD sales (in $1,000,000's), and his independent variables are
teenage population (in 1,000's) and type of sales district (0 = urban, 1 = rural). Regression analysis of the
data yielded the following tables.
Coefficients Standard Error t Statistic p-value
Intercept
1.7
0.384212
4.424638 0.00166
x1(teenagers)
0.04
0.014029
2.851146 0.019054
x2(district)
-1.5666667
0.20518
-7.63558 3.21E-05
For an urban sales district with 10,000 teenagers, Alan's model predicts annual sales of heavy metal CD
sales of ________________.
$2,100,000
$524,507
$533,333
$729,683
21,000,000
Question 36
After a transformation of the y-variable values into log y, and performing a regression analysis produced
the following tables.
Coefficients
Standard
Error
t Statistic p-value
Intercept
2.005349
0.097351
20.59923 4.81E-18
x
0.027126
0.009518
2.849843 0.008275
df
Regression
Residual
Total
1
SS
MS
1.25
2.42
189.06
18.90
p-value
0.196642 0.196642 8.121607 0.008447
26 0.629517 0.024212
27 0.826159
For x1= 10, the predicted value of y is ____________.
155.79
F
Question 37
A multiple regression analysis produced the following tables.
Coefficients Standard Error t Statistic p-value
Intercept
707.9144
435.1183
1.626947 0.114567
x1
2.903307
81.62802
0.035568 0.971871
2
11.91297
3.806211
3.129878 0.003967
x1
df
SS
MS
F
Regression
2
32055153
16027577 47.34557 1.49E-09
Residual
27
9140128
338523.3
Total
29
41195281
The regression equation for this analysis is ____________.
y = 707.9144 + 2.903307 x1 + 11.91297 x12
y = 707.9144 + 435.1183 x1 + 1.626947 x12
y = 435.1183 + 81.62802 x1 + 3.806211 x12
y = 1.626947 + 0.035568 x1 + 3.129878 x12
y = 1.626947 + 0.035568 x1 - 3.129878 x12
Question 38
Which of the following sampling methods does not lead to probability samples?
stratified
cluster
systematic
judgement
simple random sampling
None of the above answers is correct
p-value
Question 39
If we are interested in testing whether the mean of population 1 is smaller than the mean of population 2,
the
the null hypothesis should state
HO:
1-
2
<0
the null hypothesis should state
HO:
1-
2
0
the alternative hypothesis should state
Ha:
1-
2
0
the alternative hypothesis should state
Ha:
1-
2
0
None of the above answers is correct
Question 40
Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system.
She knows that 2,500 payroll vouchers have been issued since January 1, 2000, and her staff doesn't
have time to inspect each voucher. So, she randomly selects 53 as a starting point and orders her staff to
inspect the 53rd voucher and each voucher at an increment of 100 (53, 153, 253, etc.). Her sample is a
__________.
stratified sample
simple random sample
convenience sample
systematic sample
Question 41 If all the points of a scatter diagram lie on the least squares regression line, then the
coefficient of determination for these variables based on this data is
0
1
either 1 or -1, depending upon whether the relationship is positive or negative
could be any value between -1 and 1
None of the above answers is correct
Question 42
Application of the least squares methods results in values of the y intercept and the slope which
minimizes the sum of the squared deviations between the
observed values of the independent variable and estimated values of the independent variable
actual values of the independent variable and estimated values of the dependent variable
observed values of the dependent variable and the estimated values of the dependent variable
None of the above answers is correct
Question 43
Fifty percent of the applications received for a particular credit card are accepted. Among the next twelve
applications, what is the probability that less than three applications are accepted?
0.054
0.016
0.019
0.000
None of the above answers is correct
Question 44
Variability in price of stock is one consideration for stock investment. If the only criteria for buying stock is
the variability in price of stock which of the following stock should be purchased if the lowest price
variability is desired?
Stock A with mean price value of $85 and standard deviation of $10
Stock B with mean price value of $40 and standard deviation of $5
Stock C with mean price value of $185 and standard deviation of $25
Stock D with mean price value of $4 and standard deviation of $1
Question 45
If there is a very strong correlation between two variables, then the coefficient of correlation must be
much larger than 1, if the correlation is positive
much smaller than 1, if the correlation is negative
Both answers above are correct answers
None of the above answers is correct
Question 46
After computing a confidence interval, the user believes the results are meaningless because the width of
the interval is too large. Which one of the following is the best recommendation?
Increase the level of confidence for the interval
Discard the current data and try a different sample
Increase the sample size
Reduce the population variance
None of the above answers is correct
Question 47
If a hypothesis is rejected at 0.5% level of significance, it
will always be rejected at the 0.49% level
will always be accepted at the 0.49% level
will never be tested at the 0.49% level
may be rejected or not rejected at the 0.49% level
Question 48
As the sample size increases
standard deviation of the population decreases
population mean increases
standard error of mean decreases
standard error of mean increases
None of the above answers is correct
Question 49
An important application of the chi-square distribution is
when making inferences about a single population variance
when testing for goodness of fit
when testing for independence of two variables
All of the above answers are correct
None of the above answers are correct
Question 50
Consider a random variable X. If Z represents the standard score associated with X, what is the
probability associated with P(Z 3.5)?
1.0
0.0
0.5
There is not enough information to answer this question
None of the above answers is correct
Question 51
The most important statistical descriptive measure of the central tendency (location) of a data set is the
mean
mode
median
variance
None of the above answers is correct
Question 52
If the coefficient of determination is equal to one, then the coefficient of correlation
must be equal to one
can be either -1 or +1
can be any value between -1 to +1
must be -1
None of the above answers is correct
Question 53
Your investment executive claims that the average yearly rate of return on the stocks you have selected
to invest in on your own is at most 10.0%. You plan on taking a sample to test her claim. The correct set
of hypotheses is
HO:
< 10.0%
Ha:
10.0%
HO:
10.0%
Ha:
< 10.0%
HO:
> 10.0%
Ha:
10.0%
HO:
10.0%
Ha:
> 10.0%
None of the above answers is correct
Question 54
Correlation analysis is used to determine
the equation of the regression line
the strength of the relationship between the dependent and the independent x-variables
a specific value of the dependent variable for a given value of the independent variable
All of the above are correct statements
Question 55
According to AAA, a typical business traveler spends an average of $281 per day in Detroit. This cost
includes hotels, meals, car rental, and incidentals. A survey of 65 randomly selected business travelers
who have been to Detroit on business recently is taken. For the population mean of $281 per day, what is
the probability of getting a sample average of more than $293 per day if the population standard deviation
is $47?
0.9352
0.9147
0.6147
0.0853
None of the above answers is correct
Question 56
A statistics professor asked students in a class their ages. On the basis of this information, the professor
states that the average age of all the students in university is 23 years. This is an example of
a census
descriptive statistics
an experiment
statistical inference
None of the above answers is correct
Question 57
For a problem statement in which it is required to establish a 95% confidence interval, what happens to
standard error of mean if the confidence level changes to 90%?
will increase
will decrease
remains unchanged
becomes negative
None of the above answers is correct
Question 58
An experiment consists of determining the speed of automobiles on a highway by use of radar equipment.
The random variable in this experiment is a
discrete random variable
continuous random variable
complex random variable
none of above answers is correct
Question 59
In factorial design, the response produced when the treatments of one factor interact with the treatments
of another factor in influencing the response variable is known as
main effect
replication
interaction
partition
None of the above answers is correct
Question 60
In developing an interval estimate, if the population standard deviation is unknown
it is impossible to develop an interval estimate
the standard deviation is arrived at using historical data
the sample standard deviation can be used
None of the above answers is correct
Question 61
Test of hypothesis to determine whether two attributes from a population could be considered
independent requires using
F distribution
the t distribution
the normal distribution
the chi-square distribution
None of the above answers is correct
Question 62
As the number of degrees of freedom for t distribution increases, the difference between the t distribution
and standard normal distribution
becomes large
becomes smaller
stays the same
None of the above answers is correct
Question 63
Nick Nader is in charge of a mail processing office in a large corporation. He wants to determine if there is
a significant difference in the daily mail processing for three different types of mail-sorting methods. He
has selected 12 mail processing office employees at random and has randomly assigned 4 employees
each to use the three proposed mail- processing methods. Data was gathered on the number of mails
processed during a one-hour period and summarized in the following table:
Method 1
Method 2
Method 3
32
33
26
30
35
34
26
30
28
28
38
32
What would be the appropriate null hypothesis if the objective of the test of hypothesis is to determine
whether there is any significant difference in the average number of mails processed per hour using the
three different methods of processing mail?
Ho: There is a significant difference in the average number of mails processed per hour for the three
methods.
Ho:
1
Ho:
1
2
=
2
3
=
3
None of the above answers is correct.
Question 64
Concerning the mail processing problem statement, the sum of square due to treatment is 56 and sum of
square due to error is 94. What is the value of the test statistic if test of hypothesis is to be conducted at
significance level of 0.10?
1.68
2.68
3.68
4.68
None of the above is the correct answer.
Question 65
Concerning mail processing problem statement, what is the critical value of the test statistics if test of
hypothesis is to be conducted at significance level of 0.10?
9.38
1.28
3.01
2.92
None of the above answers is correct.
Question 66
Concerning the mail processing problem statement, what statement can be made about null hypothesis
based on the test statistic and its critical value?
Null hypothesis can be rejected.
Null hypothesis cannot be rejected.
There is not enough information to answer this question.
None of the above answers is correct.
Question 67
Concerning the mail processing problem statement, considering the test statistic and its critical value,
what specific conclusion related to the problem statement can drawn?
There is a significant difference in the average number of mails processed per hour for the three
methods.
There is not a significant difference in the average number of mails processed per hour for the three
methods.
There is not enough information to answer this question.
None of the above answers is correct.