1.

A Population is a set of all elements of interest in a particular study

2. The entity on which data are collected is the element

3. A tabular representation of the payoffs for a decision problem is a payoff table

4. Below you are given a payoff table involving two states of nature and three decision alternatives.
Decision
Alternative States of Nature
S1 S2
A 5 8
B 10 12
C 20 6
The probability of occurrence of S1 = 0.2.and S2= 0.8 The expected monetary value of the best alternative is
d. 11.6

5. The number of degrees of freedom for the appropriate chi-square distribution in a test of independence is
c. number of rows minus 1 times number of columns minus 1

6. In order to determine whether or not a particular medication was effective in curing the common cold, one
group of patients was given the medication, while another group received sugar pills. The results of the study
are shown below. We are interested in determining whether or not the medication was effective in curing the
common cold. The test statistic is
Patients Cured Patients Not Cured
Received medication 70 10
Received sugar pills 20 50
b. 54.02

The expected frequency of those who received medication and were cured is 48
The number of degrees of freedom associated with this problem is 1
The hypothesis is to be tested at the 5% level of significance. The critical value from the table equals 3.84
The p-value is less than .005

7. In a regression analysis, the error term  is a random variable with a mean or expected value of
a. zero

8. In the following estimated regression equation

a. b1 is the slope

b. b1 is the intercept

c. b0 is the slope

d. None of these alternatives is correct.

In a regression analysis, the coefficient of determination is 0.4225. The coefficient of correlation in this
situation is

a. 0.65

b. 0.1785

c. any positive value

d. any value

In a regression analysis, the coefficient of correlation is 0.16. The coefficient of determination in this
situation is

a. 0.4000

b. 0.0256

c. 4

d. 2.56

In a regression analysis, the regression equation is given by y = 12 - 6x. If SSE = 510 and SST = 1000,
then the coefficient of correlation is

a. -0.7

b. +0.7

c. 0.49

d. -0.49

Given below are five observations collected in a regression study on two variables x (independent
variable) and y (dependent variable). Develop the least squares estimated regression equation

x y

10 7

20 5

30 4

40 2

50 1

a. Y = 8.3-0.15x
b. Y= 9+0.15x
c. Y= 8.3+0.15x
 d. 9-0.15x

Twenty percent of the students in a class of 100 are planning to go to graduate school. The standard
deviation of this binomial distribution is

a. 20

b. 16

c. 4

d. 2
1. Consider the following frequency distribution:-

What is the relative frequency of the first class?

(a) 0.15 (b) 0.30 (c) 0.10 (d) None of the above

2. A statistics student made the following grades on 5 tests: 84, 78, 88, 78, and 72. What is the mean grade?
(a) 84 (b) 72 (c) 80 (d) 78

3. Liz Chapa manages a portfolio of 250 common stocks. Her staff compiled the following performance statistics
for two new stocks:-

The coefficient of variation for Salas Products, Inc. is ______.

(a) 300% (b) 33% (c) 5% (d) 100%

4. Let A be the event that a student is enrolled in an accounting course and let S be the event that a student is enrolled in
a statistics course. It is known that 30% of all students are enrolled in an accounting course and 40% of all students
are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and accounting. Find
P(S).
(a) 0.30 (b) 0.55 (c) 0.15 (d) 0.40

5. Given P(A) = 0.40, P(B) = 0.50, P(A ∩ B) = 0.15. Find P(B|A).

(a) 0.80 (b) 0.20 (c) 0.375 (d) 0.30

6. An automobile dealer wishes to investigate the relation between the gender of the buyer and type of vehicle
purchased. The following joint probability table was developed from the dealer's records for the previous year:-

P(Male) = (a)____________________.
(a) 0.48 (b) 0.20 (c) 0.50 (d) 0.02

7. Variables which take on values only at certain points over a given interval are called(a)____________________.
(a) Value variables (b) Continuous random variables (c) Point variables (d) Discrete random variables

8. The volume of liquid in an unopened 12-ounce bottle of beer is an example of (a)____________________.

(a) A discrete random variable (b) The binomial distribution (c) The normal distribution (d) A continuous random
variable
 9. You are offered an investment opportunity. Its outcomes and probabilities are presented in the following table:-

The mean of this distribution is (a)____________________.

(a) $400 (b) -$400 (c) $200 (d) $0

10. If x is a binomial random variable with n=10 and p=0.4, the mean of x is(a)____________________.

(a) 4 (b) 2.4 (c) 6 (d) 10

11. The variance of a Poisson distribution is equal to:-

(a) λ (b) λ2 (c) √λ (d) λ/2

12. The area to the left of the mean in any normal distribution is(a)____________________.

(a) Equal to the mean (b) Equal to 0.5 (c) Equal to 1 (d) Equal to the variance
13. Classifying students in a statistics course by their gender is an example of what scale of measurement?
a. Ordinal b.Nominal c.Interval d.Ratio

14. A ________________is a tabular summary of data showing the number of items in each of several non
overlapping classes.
a. Frequency distribution b. Relative frequency c. Probability distribution d. Cumulative
distribution
15. State whether the following question provided is qualitative or quantitative data and indicates the measurement
scale appropriate - What is your age?
a. Qualitative, ratio b. Quantitative, ratio c. Qualitative, nominal d.Quantitative, ordinal
16. Which of the following Circle Graphs best displays the data that is shown in the table below?

i.
a) A b) B c) C d) D

17 . If the coefficient of correlation is 0.4, the percentage of variation in the dependent variable explained by the variation in the
independent variable

a. is 40%

b. is 16%.
 c. is 4%

d. can be any positive value

18. If P(A) = 0.50, P(B) = 0.60, and P(A  B) = 0.30, then events A and B are

a. mutually exclusive events

b. not independent events

c. independent events

d. not enough information is given to answer this question

19. The measure of location which is the most likely to be influenced by extreme values in the data set is the

a. range

b. median

c. mode

d. mean

20. The hourly wages of a sample of 130 system analysts are given below.

mean = 60 range = 20

mode = 73 variance = 324

median = 74

The coefficient of variation equals

a. 0.30%

b. 30%

c. 5.4%

d. 54%

1. State whether the following question provided is qualitative or quantitative data and
indicate the measurement scale appropriate -Are you a male or female?
a. Qualitative, ratio
b. Quantitative, ratio
c. Qualitative, nominal
d. Quantitative, ordinal

2. State whether the following question provided is qualitative or quantitative data and
indicate the measurement scale appropriate - How long have you been in your present job
or position
a. Qualitative, ratio
b. Quantitative, ratio
c. Qualitative, nominal
d. Quantitative, ordinal
 3. What is the median of the following set of numbers? {12,8,13,4,7,6,3,3,15} a)

12 b) 8 c) 7 d) 7.5

4. The hourly wages of a sample of 130 system analysts are given below.
mean = 60 range = 20

mode = 73 variance = 324

median = 74

The coefficient of variation equals

a. 0.30%

b. 30%

c. 5.4%

d. 54%

5. The variance of a sample of 169 observations equals 576. The standard deviation of the
sample equals

a. 13
b. 24

c. 576

d. 28,461

6. The median of a sample will always equal the

a. mode

b. mean

c. 50th percentile

d. all of the above answers are correct

7. A sample selected in such a manner that each sample of size n has the same probability of
being selected is

a. a convenience sample

b. a judgment sample

c. nonprobabilistic sampling

d. a simple random sample

8. Which of the following sampling methods is a probabilistic sampling method?

a. judgment sampling

b. convenience sampling

c. cluster sampling

d. None of these alternatives is correct.

9. An uncertain future event affecting the consequence, or payoff, associated with a decision is
known as

a. unconditional probability

b. unknown probability

c. chance event
d. uncertain probability

10. Nodes indicating points where a decision is made are known as

a. decision nodes

b. chance nodes

c. marginal nodes

d. conditional nodes

11. In computing an expected value (EV), the weights are

a. decision alternative probabilities

b. in pounds or some unit of weight

c. in dollars or some units of currency

d. the state-of-nature probabilities

12. Below you are given a payoff table involving three states of nature and two decision
alternatives.

Decision States of Nature S1

Alternative S2 S3
 A 80 45 -20

B 40 50 15

The probability that S1 will occur is 0.1; the probability that S2 will occur is 0.6.
The recommended decision based on the expected value criterion is
a. A
b. B
c. Both alternatives are the same.
d. None of these alternatives is correct.

13. The degrees of freedom for a contingency table with 6 rows and 3 columns is

a. 18

b. 15
c. 6

d. 10

14. If the coefficient of determination is a positive value, then the coefficient of correlation

a. must also be positive

b. must be zero

c. can be either negative or positive

d. must be larger than 1

15. Regression analysis is a statistical procedure for developing a mathematical equation

that describes how

a. one independent and one or more dependent variables are related

b. several independent and several dependent variables are related

c. one dependent and one or more independent variables are related

d. None of these alternatives is correct.

16. Given below are five observations collected in a regression study on two variables x
(independent variable) and y (dependent variable). Develop the least squares estimated
regression equation

x y

10 7

20 5

30 4

40 2

50 1

a. Y = 8.3-0.15x
b. Y= 9+0.15x
c. Y= 8.3+0.15x
d. 9-0.15x
17. As the sample size increases, the margin of error

a. increases

b. decreases
c. stays the
same
d. increases or
decreases
18. In computing the standard error of the mean, the finite population correction factor is
used when

a. N/n > 0.05

b. N/n 0.05

c. n/N > 0.05

d. n/N 30

19. Z is a standard normal random variable. What is the value of Z if the area to the right of
 Z is 0.9803?

a. -2.06

b. 0.4803

c. 0.0997

d. 3.06

20. For a standard normal distribution, the probability of obtaining a z value between -2.4 to
-2.0 is

a. 0.4000

b. 0.0146

c. 0.0400

d. 0.5000

21. For a standard normal distribution, the probability of obtaining a z value of less than 1.6 is

a. 0.1600

b. 0.0160

c. 0.0016

d. 0.9452

22. The number of electrical outages in a city varies from day to day. Assume that the
number of electrical outages (x) in the city has the following probability distribution.

x f(x)

0 0.80

1 0.15
 2 0.04

3 0.01

The mean and the standard deviation for the number of electrical outages (respectively) are

a. 2.6 and 5.77

b. 0.26 and 0.577

c. 3 and 0.01

d. 0 and 0.8

23. Assume that you have a binomial experiment with p = 0.4 and a sample size of 50.
The variance of this distribution is

a. 20

b. 12

c. 3.46

d. 144

24. In a binomial experiment the probability of success is 0.06. What is the probability of
two successes in seven trials?

a. 0.0036

b. 0.0600

c. 0.0555

d. 0.2800

25. If P(A) = 0.62, P(B) = 0.47, and P(A B) = 0.88, then P(A U

B) = a. 0.2914
 b. 1.9700

c. 0.6700

d. 0.2100

34. A survey in which customers taste five different brands of ice cream, and rank their favorites from 1
to 5, would be an example of which type of scale of measurement?
a. Ordinal

36. Abel Alonzo, Director of Human Resources, is exploring the causes of employee absenteeism at
Batesville Bottling during the last operating year (January 1, 1999 through December 31, 1999). For this
study, the set of all employees who worked at Batesville Bottling during the last operating year is
a(a)____________________.
a. Population

37. A student makes an 82 on the first test in a statistics course. From this, she assumes that her average
at the end of the semester (after other tests) will be about 82. This is an example of
(a)____________________.

b. Inferential statistics

38. A statistics instructor collects information about the background of his students. About 30% have
taken economics and about 40% have taken accounting. There are 23 male students and 27 female
students in this class. This is an example of(a)____________________.
a. Descriptive statistics

39. The 1999 and 2000 market share data of the three competitors (A, B and C) in an oligopolistic
industry are presented in the following pie charts: -

Which of the following is true?

(c) Only company C lost market share

40. A statistics student made the following grades on 5 tests: 84, 78, 88, 72, and 72. What is the median
grade?
(a) 78
41. Given P(A) = 0.40, P(B) = 0.50, P (A ∩ B) = 0.15. Which of the following is true?

(d) A and B are not independent

42. The amount of time a patient waits in a doctor's office is an example of(a)____________________.

d. A continuous random variable

43. Twenty-five items are sampled. Each of these has the same probability of being defective. The
probability that exactly 2 of the 25 are defective could best be found by using
the(a)____________________.

d. Binomial distribution

44. If x is a binomial random variable with n=8 and p=0.2, the variance of x is
(a)____________________.

c. 1.28 n*p*(1-p) (1-p)= q

45. The long-run average or mean of a Poisson distribution is usually referred to as: -
(a) λ

46. Let z be a normal random variable with mean 0 and standard deviation 1. Use the normal tables to
find P (z > 2.4).

(c) 0.0082

47. Regression was used to develop a model to predict sales based on advertising dollars spent. The
equation developed is Y = 1,000 + 20X, where X is advertising dollars and Y is sales. If $300 is spent on
advertising, what would be the best prediction for sales?
(b) $7,000

48. Which of the following is an example of non-probabilistic sampling?

d. Judgment sampling

49. Stratified random sampling is a method of selecting a sample in which

d. None of these alternatives is correct.

50. A tabular representation of the payoffs for a decision problem is a

b. payoff table

51. For a decision alternative, the weighted average of the payoffs is known as
b. the expected value
52. The number of degrees of freedom for the appropriate chi-square distribution in a test of
independence is
c. number of rows minus 1 times number of columns minus 1

53. An assumption made about the value of a population parameter is called a

a. hypothesis

54. In a regression and correlation analysis if r2 = 1, then

d. SSR = SST

55. If a data set has SSR = 400 and SSE = 100, then the coefficient of determination is
d. 0.80

56. As the sample size increases, the margin of error b. decreases

57. State whether the following question provided is qualitative or quantitative data and indicate the
measurement scale appropriate - How long have you been in your present job or position
b. Quantitative, ratio

58. What is the median of the following set of numbers? {12,8,13,4,7,6,3,3,15}

c) 7

59. The variance of a sample of 169 observations equals 576. The standard deviation of the sample
equals
b. 24

60. The median of a sample will always equal the

c. 50th percentile

61. A sample selected in such a manner that each sample of size n has the same probability of being
selected is
d. a simple random sample

62. Which of the following sampling methods is a probabilistic sampling method?

c. cluster sampling

63. An uncertain future event affecting the consequence, or payoff, associated with a decision is known
as
c. chance event

64. Nodes indicating points where a decision is made are known as

a. decision nodes

65. In computing an expected value (EV), the weights are

d. the state-of-nature probabilities
67. The degrees of freedom for a contingency table with 6 rows and 3 columns is
d. 10

68. If the coefficient of determination is a positive value, then the coefficient of correlation
a. must also be positive

69. Regression analysis is a statistical procedure for developing a mathematical equation that describes
how
c. one dependent and one or more independent variables are related

70. In computing the standard error of the mean, the finite population correction factor is used when
c. n/N > 0.05

71. Z is a standard normal random variable. What is the value of Z if the area to the right of Z is 0.9803?
a. -2.06

72. For a standard normal distribution, the probability of obtaining a z value between -2.4 to -2.0 is
b. 0.0146

73. For a standard normal distribution, the probability of obtaining a z value of less than 1.6 is
d. 0.9452

74. The number of electrical outages in a city varies from day to day. Assume that the number of
electrical outages (x) in the city has the following probability distribution.
x f(x)
0 0.80
1 0.15
2 0.04
3 0.01
The mean and the standard deviation for the number of electrical outages (respectively) are
b. 0.26 and 0.577

75. Assume that you have a binomial experiment with p = 0.4 and a sample size of 50. The variance of
this distribution is
b. 12

76. In a binomial experiment the probability of success is 0.06. What is the probability of two successes
in seven trials?
c. 0.0555

77. If P(A) = 0.62, P(B) = 0.47, and P (A  B) = 0.88, then P (A U B) =

d. 0.2100

3) Assume that you have a binomial experiment with p = 0.5 and a sample size of 100. The expected
value of this distribution is - 50

4) Let A be the event that a student is enrolled in an accounting course, and let S be the event that a
student is enrolled in a statistics course. It is known that
30% of all students are enrolled in an accounting course and 40% of all students are enrolled in statistics.
Included in these numbers are 15% who are enrolled in both statistics and accounting. Find the
probability that a student is in accounting and is also in statistics - 0.15

10) Four percent of the customers of a mortgage company default on their payments. A sample of five
customers is selected. What is the probability
that exactly two customers in the sample will default on their payments? - 0.0142

11)regression analysis, the coefficient of correlation is 0.16. The coefficient of determination in this
situation is ==> 0.0256

12) if x is a binomial random variable with n=8 and p=0.6 what is the probability that x is equals to 5 =>
0.279

13) Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the Plano Power
Plant.
Ten percent of all plant employees work in the finishing department; 20% of all plant employees are
absent excessively;
and 7% of all plant employees work in the finishing department and are absent excessively.
If a plant employee is selected randomly, and F is the event "works in the finishing department," then
P(F) ==> 0.10

14 ) The center of a normal curve is --> is the mean of the distribution

17) Classifying students in a statistics course by their gender is an example of what scale of
measurement --> Nominal

18) Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s Electrical Division, is leading a
study to identify and assess the relative importance of product features.
Manuel directs his staff to design a survey questionnaire for distribution to all of Plano’s 954 customers.
For this study, the set of 954 customers is a --> Population

19) In a regression analysis if SSE = 200 and SSR = 300, then the coefficient of determination is --> 0.6000

20) if x is a binomial random variable with n=8 p=0.6 and x=4 ==> 0.232

21) The number of degrees of freedom for the appropriate chi-square distribution in a test of
independence is ==> number of rows minus 1 times number of columns minus 1

22) A production process produces 2% defective parts.

A sample of five parts from the production process is selected. What is the probability that the sample
contains exactly two defective parts? ==> 0.0038

23) If P(A) = 0.50, P(B) = 0.60, and P(A ∩ B) = 0.30; then events A and B are ==> independent events

24) In a regression analysis, the coefficient of determination is 0.4225. The coefficient of correlation in
this situation is ==>
0.65

25) Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s Electrical Division, is leading a
study to identify and assess the relative importance of product features.
Manuel directs his staff to design a survey questionnaire for distribution to 100 of Plano’s 954
customers. For this study, the set of 100 customers is a ==> sample

26) Sue Taylor, Director of Global Industrial Sales, is concerned by a deteriorating sales trend.
Specifically, the number of customers is stable at 1,500, but they are purchasing less each year.
She orders her staff to search for causes of the downward trend by surveying all 1,500 industrial
customers.
One question on the survey asked the customers to rate “Merchandise is delivered on time” on a scale
of 1 to 5, with 1 meaning “never” and 5 meaning “always”.
The average response of the 1,500 customers to this question is a ==> Parameter

27) Correlation analysis is used to determine ==> the strength of the relationship between the
dependent and the independent variables

28) Manuel Banales, Marketing Director of Plano Power Plants, Inc.'s

Electrical Division, is leading a study to identify and assess the relative importance of product features.
Manuel directshis staff to design a survey questionnaire and distribute it to 100 of Plano’s 954
customers. Manuel is ordering a ==> sample of the customer

30) The uncontrollable future events that can affect the outcome of a decision are known as a => states
of nature

31) A graphic presentation of the expected gain from the various options open to the decision maker is
called ==> a decision tree

32) If the coefficient of determination is 0.9, the percentage of variation in the dependent variable
explained by the variation in the independent variable ==> is 90%.

33) Z is a standard normal random variable. What is the value of Z if the area between -Z and Z is 0.754?
==> 1.16

35) The long-run average or mean of a Poisson distribution is usually referred to as ==> labda symbol

36) for a decision alternative, the weighted average for the payoff is known as ==> expected value

37) Which of the following is an example of nonprobabilistic sampling ==> judgment sampling

38) If you are conducting an experiment where the probability of a success is .02 and you are interested
in the probability of 4 successes in 15 trials, the correct probability function to use is the ==> binomial
probability function

39)Convenience sampling is an example of == nonprobabilistic sampling

40) Stratified random sampling is a method of selecting a sample in which ==> the population is first
divided into strata, and then random samples are drawn from each stratum

41) if A and B mutually exclusive events and the probability of event A is 0.2 and event B is 0.8. Then
what is the probability of A intersection B ===> It should be '0' Option not provided "None of the above"

42) The probability of the states of nature, after use of Bayes' theorem to adjust the prior probabilities
based upon given indicator information, is called ==> conditional probability

43)If the coefficient of determination is equal to 1, then the coefficient of correlation ==> can be either -
1 or +1
44) The volume of liquid in an unopened 12-ounce bottle of beer is an example of ==> a continuous
random variable
45) If P(A) = 0.58, P(B) = 0.44, and P(A "N" B) = 0.25, then P(A "U" B) ===> 0.77

46) Upon discovering an improperly adjusted drill press, Jack Joyner, Director of Quality Control, ordered
an inspection of "every fifth casting drilled on the evening shift." Less than 1% of the castings were
defective; so, Jack released the evening shift's production to assembly. This is an example of ==>
inferential statistics

47) Regression was used to develop a model to predict sales based on advertising dollars spent.
The equation developed is Y = 1000 + 20X, where X is advertising dollars and Y is sales.
If $300 is spent on advertising, what would be the best prediction for sales? ==> $7,000

48) If lambda is 3 occurrences per five minute time interval,

the probability of getting 5 occurrences over a five minute interval is ==> 0.1008

49) The following box and whisker plot was constructed for the age of accounts receivable.
The box and whisker plot reveals that the accounts receivable ages are ==> skewed to the left

50) Liz Chapa manages a portfolio of 250 common stocks.

Her staff compiled the following performance statistics for two new stocks. The coefficient of variation
for Salas Products, Inc. is ==>
greater than the coefficient of variation for Hot Boards

51) A market research team compiled the following discrete probability distribution.
In this distribution X represents the number of automobiles owned by a family residing in Starr County.
Which of the following statements is true ==> This distribution is skewed to the left

52) The coefficient of determination ==> cannot be negative

53) Let A be the event that a student is enrolled in an accounting course, and let S be the event that a
student is enrolled in a statistics course. It is known that 30% of all students are enrolled in an
accounting course and 40% of all students are enrolled in statistics. Included in these numbers are 15%
who are enrolled in both statistics and accounting. Find P(S). ==> 0.40
54) Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll
system, and orders an inspection of "each and
every payroll voucher issued since January 1, 1999." Five percent of the payroll vouchers contained
material errors. This is an example of ==> descriptive statistics

55) Liz Chapa manages a portfolio of 250 common stocks.

Her staff compiled the following performance statistics for two new stocks. The coefficient of variation
for Salas Products, Inc. is ==> 33%