Sample Test 361B Prof.

Pandya
Practice Test #1

1. A professor of statistics refutes the claim that the average student spends 3 hours
studying for the midterm exam. Which hypothesis is used to test the claim?
a. H0 :   3 vs. H 1 :   3
b. H 0 :   3 vs. H 1 :   3
c. H0 :   3 vs. H 1 :   3
d. H 0 :   3 vs. H 1 :   3
ANSWER: b

2. In hypothesis testing, whatever we are investigating or researching is specified as:

a. the null hypothesis
b. the alternative hypothesis
c. either the null or alternative
d. the p-value
ANSWER: b

3. A spouse stated that the average amount of money spent on Christmas gifts for
immediate family members is above $1200. The correct set of hypotheses is:
a. H 0 :   200 vs. H 1 :   1200
b. H 0 :   1200 vs. H 1 :   1200
c. H 0 :   1200 vs. H 1 :   1200
d. H 0 :   1200 vs. H 1 :   1200
ANSWER: c

4. Researchers determined that 60 Kleenex tissues is the average number of tissues used
during a cold. Suppose a random sample of 100 Kleenex users yielded a mean
number of 54 tissues used during a cold. Give the null and alternative hypotheses
to determine if the number of tissues used during a cold is less than 60.
a. H o :   60 and H1 :   60
b. H o :   60 and H1 :   60
c. H o : X  60 and H1 : X  60
d. H o : X  54 and H1 : X �54
ANSWER: b

5.. Formulate the null and alternative hypothesis for each of the following
statements:
a. The average American drinks 2.5 cups of coffee per day
b. A researcher at the University of Michigan is looking for evidence to conclude
that the average SAT score for entering freshmen is well over 1650

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 c. The manager of the University of Iowa bookstore claims that the average
student spends less than $400 per semester at the university's bookstore

ANSWER:
a. H 0 :   2.5 , H 1 :   2.5
b. H 0 :   1650 , H 1 :   1650
c. H 0 :   400 , H 1 :   400
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
6. Narrative: Production Filling Operation
A production filling operation has a historical standard deviation of 6 ounces. When in
perfect adjustment, the mean filling weight for the production process is 50 ounces. A
quality control inspector periodically selects at random 36 containers and uses the sample
mean filling weight to see if the process is in perfect adjustment.

{Production Filling Operation Narrative} State the null and alternative

hypotheses.

ANSWER:
H 0 :   50 vs. H1 :  �50

{Production Filling Operation Narrative} Using a standardized test statistic, test

the hypothesis at the 5% level of significance if the sample mean filling weight is
48.6 ounces.

ANSWER:
Test statistic: z = -1.40
Rejection region: |z| > z .025  1.96
Conclusion: Don’t reject H 0 . We can infer that the process is in perfect
adjustment.

{Production Filling Operation Narrative} Develop a 95% confidence interval and

use it to test the hypothesis.

ANSWER:
LCL = 46.64 and UCL = 50.56. Since the hypothesized value 50 falls in the 95%
confidence interval, we fail to reject H 0 at   0.05
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
7. For a given level of significance, if the sample size increases, the probability of a Type
II error will:
a. remain the same
b. increase
c. decrease
d. be equal to 1.0 regardless of 
ANSWER: c

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8. If the probability of committing a Type I error for a given test is to be decreased, then
for a fixed sample size n
a. the probability of committing a Type II error will also decrease
b. the probability of committing a Type II error will increase
c. the power of the test will increase
d. a one-tailed test must be utilized
ANSWER: b

9. A random sample of 10 observations was drawn from a normally distributed

population. These are: 6, 4, 4, 7, 5, 5, 4, 5,

6, and 4. Test to determine if we can infer at = 0.05 that the population
mean is less than 6.

ANSWER:
H 0 :   6 , H1 :   6
Rejection region: t  t0.05,9  1.833
Test statistic: t = -3.0
Conclusion: Reject H 0 . Yes, .we can infer at  = 0.05 that the population mean is
less than 6.

10. During the past few weeks Laila stopped in Burger King fast food restaurant 5 times,
and each time ordered large size French fries. Having nothing better to do, she
counted how many French fries she received. The results follow: 73, 75, 83, 68,
and 78. Assume that the number of French fries served at Burger King are
normally distributed. Can we infer at the 10% significance level that the average
number of large size orders of French fries served at Burger King is over 70?

ANSWER:
H 0 :   70 , H 1 :   70
Rejection region: t > t0.10,4 = 1.533
Test statistics: t = 2.158
Conclusion: Reject H 0 . Yes, we can infer at the 10% significance level that the
average number of large size orders of French fries served at Burger King is over
70

11. Workers in a large plant are expected to complete a particular task in 60 seconds or
less. The production manager believes that the average worker is satisfying that
expectation. To examine the issue she watches eight workers perform the task and
measures their times. The times, which are assumed to be normally distributed,
are 58, 53, 63, 62, 57, 55, 53, and 55. Do these data provide sufficient evidence
at the 5% significance level to support the production manager’s belief?

ANSWER:
H 0 :   60 , H 1 :   60
Rejection region: t < - t0.05,7 = -1.895

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 Test statistics: t = -2.223
Conclusion: Reject H 0 . Yes, these data provide sufficient evidence at the 5%
level of significance to support the production manager’s belief

12. The owner of a service station wants to determine if owners of new cars (two years
old or less) change their cars’ oil more frequently than owners of older cars (more
than two years old). From his records he takes a random sample of ten new cars
and ten older cars and determines the number of times the oil was changed in the
last 12 months. The data follow. Do these data allow the service station owner to
infer at the 10% significance level that new car owners change their cars’ oil more
frequently than older car owners?

Is this an example of Independent Sampling? Explain your answer.

Frequency of Oil Changes in Past 12 Months

New Car Owners Old Cars Owners
6 4
3 2
3 1
3 2
4 3
3 2
6 2
5 3
5 2
4 1

ANSWER:
H 0 : 1   2  0 , H 1 :  1   2  0
Rejection region: t > t0.10,18  1.33
Test statistic: t = 2.914
Conclusion: Reject the null hypothesis. Yes, new car owners change their cars’ oil
more frequently than older car owners.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

13. Narrative: Auto Tires Wear

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To compare the wearing of two types of automobile tires, 1 and 2, an experimenter chose
to “pair” the measurements, comparing the wear for the two types of tires on each of 7
automobiles, as shown below.

Why is this an example of PAIRED SAMPLING? Give an explanation.

Automobile 1 2 3 4 5 6 7
Tire 1 8 15 7 9 10 13 11
Tire 2 12 18 8 9 12 11 10

{Auto Tires Wear Narrative} Determine whether these data are sufficient to infer
at the 10% significance level that the two population means differ.

ANSWER:
H 0 :  D  0 , H1 :  D  0
Rejection region: |t| > t0.05,6  1.943
Test Statistics: t = -1.225
Conclusion: Don’t reject the null hypothesis. No, these data are not sufficient to
infer at the 10% significance level that the two population means differ.

14. Narrative: Promotional Campaigns

The general manager of a chain of fast food chicken restaurants wants to determine how
effective their promotional campaigns are. In these campaigns “20% off” coupons are
widely distributed. These coupons are only valid for one week. To examine their
effectiveness, the executive records the daily gross sales (in $1,000s) in one restaurant
during the campaign and during the week after the campaign ends. The data is shown
below.

Why is this an example of PAIRED SAMPLING? Give an explanation.

Day Sales During Campaign Sales After Campaign

Sunday 18.1 16.6
Monday 10.0 8.8
Tuesday 9.1 8.6
Wednesday 8.4 8.3
Thursday 10.8 10.1
Friday 13.1 12.3
Saturday 20.8 18.9

{Promotional Campaigns Narrative} Can they infer at the 5% significance level

that sales increase during the campaign?

ANSWER:
H 0 :  D  0 , H1 :  D  0
Rejection region: t > 1.943

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 Test statistic: t = 4.111
Conclusion: Reject the null hypothesis. Yes, they infer at the 5% significance
level that sales increase during the campaign
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

15. Narrative: GMAT Scores

A recent college graduate is in the process of deciding which one of three graduate
schools he should apply to. He decides to judge the quality of the schools on the basis of
the Graduate Management Admission Test (GMAT) scores of those who are accepted into
the school. A random sample of six students in each school produced the following
GMAT scores. Assume that the data are normally distributed.

GMAT Scores
School 1 School 2 School 3
650 105 590
620 550 510
630 700 520
580 630 500
710 600 490
690 650 530

{GMAT Scores Narrative} Set up the ANOVA Table. Use   0.10 to determine
the critical value.

1. Is this a Single Factor ANOVA test?

2. How many levels are there to the FACTOR?

3. Is the FACTOR a nominal variable?

4. What is the response variable?

5. Is this an interval or ordinal variable?

6. How many TREATMENTS are there?

7. What is the test Statistics?

8. How many degrees of freedom does it have?

9. What are the degrees of freedom?

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 10. How do you determine the degrees of freedom?

11. What does SST represent?

12. What does SSE represent?

13. How is the test statistics computed?

14. How do you determine the F critical value?

15. How do you determine the P-value?

ANSWER:

Source of Variation SS df MS F P-value F critical

Treatments 47,511.11 2 23,755.56 8.607 0.0032 2.695
Error 41,400.00 15 2,760.00
Total 88,911.11 17

{GMAT Scores Narrative} Can he infer at the 10% significance level that the
GMAT scores differ among the three schools?

ANSWER:
H 0 : 1   2   3 vs. H 1 : At least two means differ
Conclusion: Reject the null hypothesis. Yes, the GMAT scores differ in at least
two of the three schools
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
16. Narrative: TV Viewing Habits
A statistician employed by a television rating service wanted to determine if there were
differences in television viewing habits among three different cities in California. She
took a random sample of five adults in each of the cities and asked each to report the
number of hours spent watching television in the previous week. The results are shown
below.

Hours Spent Watching Television

San Diego Los Angeles San Francisco
25 28 23
31 33 18
18 35 721
23 29 17
27 36 15
1. Is this a Single Factor ANOVA test?

2. How many levels are there to the FACTOR?

3. Is the FACTOR a nominal variable?

4. What is the response variable?

5. Is this an interval or ordinal variable?

6. How many TREATMENTS are there?

7. What is the test Statistics?

8. How many degrees of freedom does it have?

9. What are the degrees of freedom?

10. How do you determine the degrees of freedom?

11. What does SST represent?

12. What does SSE represent?

13. How is the test statistics computed?

14. How do you determine the F critical value?

15. How do you determine the P-value?

{TV Viewing Habits Narrative} Set up the ANOVA Table. Use   0.05 to
determine the critical value.

ANSWER:

Source of Variation SS df MS F P-value F critical

Treatments 450.533 2 225.267 14.659 0.0006 3.885
Error 184.400 12 15.367
Total 634.933 14

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 {TV Viewing Habits Narrative}Can she infer at the 5% significance level that dif-
ferences in hours of television watching exist among the three cities?

ANSWER:
H 0 : 1   2   3 vs. H 1 : At least two means differ
Conclusion: Reject the null hypothesis. Yes, differences in mean hours of
television watching exist in at least two of the three cities.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
17. Narrative: Automobile Repair Cost
Automobile insurance appraisers examine cars that have been involved in accidental
collisions and estimate the cost of repairs. An insurance executive claims that there are
significant differences in the estimates from different appraisers. To support his claim
he takes a random sample of six cars that have recently been damaged in accidents. Three
appraisers then estimate the repair costs of all six cars. The data are shown below.

Estimated Repair Cost

Car Appraiser 1 Appraiser 2 Appraiser 3
1 650 600 750
2 930 910 1010
3 440 450 500
4 750 710 810
5 1190 1050 1250
6 1560 1270 1450

{Automobile Repair Cost Narrative} Set up the ANOVA Table. Use  = 0.05 to
determine the critical values.

1. Is this a Single Factor ANOVA test?

2. Is this an example of Blocking?

3. Which factor is of primary interest?

4. Why would you want to Block?

5. What is/are nuisance factors that might affect the measured result?

6. What are the homogeneous blocks?

7. How many levels are there to the FACTOR?

8. Is the FACTOR a nominal variable?

9. What is the response variable?

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10. Is this an interval or ordinal variable?

11. How many TREATMENTS are there?

12. What is the test Statistics?

13. How many degrees of freedom does it have?

14. What are the degrees of freedom?

15. How do you determine the degrees of freedom?

16. What does SST represent?

17. What does SSB represent?

18. What does SSE represent?

19. How is the test statistics computed?

20. How do you determine the F critical value?

21. How do you determine the P-value?

22. Are there two test statistics, and explain their significance?

23. Are there two critical F-values?

24. Was the correct design chosen?

ANSWER:

Source of Variation SS df MS F P-value F critical

Treatments 52,877.78 2 26,438.889 7.457 0.01042 4.103
Blocks 1,844,311.11 5 368,862.222 104.035 0.00003 3.326
Error 35,455.56 10 3545.556
Total 1,932,644.44 17

{Automobile Repair Cost Narrative} Can we infer at the 5% significance level

that the executive’s claim is true?

ANSWER:
H 0 : 1   2   3 vs. H 1 : At least two means differ

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 Conclusion: Reject the null hypothesis. Yes, the insurance executive’s claim is
true
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

18. A randomized block design experiment produced the following data.

Treatment
Block 1 2 3
1 25 27 25
2 19 18 17
3 15 20 16
4 23 27 20
5 30 31 28

a. Set up the ANOVA Table. Use  = 0.05 to determine the critical values.
b. Test to determine whether the treatment means differ. (Use  = 0.05.)
c. Test to determine whether the block means differ. (Use  = 0.05.)

1. Is this a Single Factor ANOVA test?

2. Is this an example of Blocking?

3. Which factor is of primary interest?

4. Why would you want to Block?

5. What is/are nuisance factors that might affect the measured result?

6. What are the homogeneous blocks?

7. How many levels are there to the FACTOR?

8. Is the FACTOR a nominal variable?

9. What is the response variable?

10. Is this an interval or ordinal variable?

11. How many TREATMENTS are there?

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 12. What is the test Statistics?

13. How many degrees of freedom does it have?

14. What are the degrees of freedom?

15. How do you determine the degrees of freedom?

16. What does SST represent?

17. What does SSB represent?

18. What does SSE represent?

19. How is the test statistics computed?

20. How do you determine the F critical value?

21. How do you determine the P-value?

22. Are there two test statistics, and explain their significance?

23. Are there two critical F-values?

24. Is Independent Sampling design to be recommended?

ANSWER:
a.
Source of Variation SS df MS F P-value F critical
Treatments 29.733 2 14.867 6.511 0.02097 4.459
Blocks 336.933 4 84.233 36.891 0.00335 3.838
Error 18.267 8 2.283
Total 384.933 14

b. H 0 : 1   2   3vs. H 1 : At least two means differ

Conclusion: Reject the null hypothesis. Yes, at least two treatment means
differ.
c. H 0 : 1   2   3   4   5 vs. H 1 : At least two means differ
Conclusion: Reject the null hypothesis. Yes, at least two block means differ.
Sample Test 361B Prof. Pandya
Practice Test #2

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1. Bob Sandwich Shop would like to estimate its profit for the upcoming month. In
order to carry out this, it must forecast future sandwich sales. Below are the
number of Sandwiches sold each day of the five-day work week for each of the
past four weeks.

W E E K
Day 1 2 3 4
Monday 140 162 172 159
Tuesday 156 135 163 132
Wednesday 172 158 141 135
Thursday 144 174 162 151
Friday 112 146 138 142

a. Graph the Time Series

b. Determine whether the Time Series exhibits any trend.
c. Using a five-day moving average, forecast the number of sandwiches that will
be sold daily during the upcoming week.
d. What is forecast of the number of sandwiches sold daily during the upcoming
week if the shop uses exponential smoothing value of 0.1?
e. Repeat the calculations with smoothing value of 0.3
f. Using the MSE performance measure for this data, which of the two
smoothing values appear to give a reliable forecast so that the shop can plan to
hire more workers?

2. Quarterly revenue sales ($1000s) of Pal Hotel chain over the past five years have
been as follows:

Y E A R
Quarter 1 2 3 4 5
1 5108 4871 5248 5365 5423
2 6121 5907 6214 6323 6408
3 6394 6485 6582 6647 6586
4 4593 4798 4893 5021 5134

On the basis of these data, use the multiplicative forecasting model based on
classical decomposition to forecast quarterly revenues for year 6.

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 3. The quarterly sales (in millions of dollars) of a department store chain were
recorded for the years 2001 – 2004 as listed below:

Year
Quarter 2001 2002 2003 2004
1 21 25 30 34
2 36 23 41 29
3 28 39 47 32
4 44 36 55 48

a) Explain in your words the Seasonal Index (SI), and what purpose does it
serve?

b) Then compute the adjusted SI (seasonal index or factor - assuming that the
multiplicative model is suitable) using the Centered Moving Average method
in Excel. Generate the trend line (use Regression) using the De-seasonalized
data values.

HINT: Follow the Excel spreadsheet Gasoline_Data per our discussion, and
this spreadsheet is available on the Blackboard.

c) In the table below fill in the values for the SI, and explain what does SI mean
about the sales in each of the seasons?

Year Quarter 1 Quarter 2 Quarter 3 Quarter 4

2001
2002
2003
2004

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 HINT: Initially you compute the Period Seasonal Error Factor (PSEF), then
you compute the Unadjusted Error Factor (USF), and finally you
compute the Adjusted Error Factor (ASF) – These ASF values are the
Seasonal Index.

d) Using Seasonal Index and the linear trend, forecast the values for periods 17,
18, 19, and 20 for the year 2005 for possible sales. Describe the seasonal
fluctuations in the sales.

Season Period estimate SI Forecast

4. Leather Problem

Leather Co. manufactures belts and shoes. A belt requires 2 square yards of leather
and 1 hour of skilled labor. A pair of shoes requires 3 sq. yd. of leather and 2 hours
of skilled labor. As many as 25 sq. yd. of leather and 15 skilled labor can be
purchased as a price of $5/sq. yd. of leather and $10/hour of skilled labor. A belt sells
for $23, and a pair of shoes sells for $40. Leather Co. wants to maximize profits
(revenue – costs). You are to formulate a Linear Programming model that can be
used to maximize Leather CO’s profit.

Solution:

Let x be number of belts produced

Let y be number of pairs of shoes produced

Cost/belt = 2(5) + 1(10) = $20

Cost/pair of shoes = 3(5) + 2(10) = $30

Leather Co objective function:

(23-20)x + (40- 35)y = 3x + 5y

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Objective Function to maximize is: 3x + 5y

Constraint 1: 2x + 3y <= 25

Constraint 2: x + 2y <= 15

Signed Constraints: x >=0 , y>=0

1) What is the optimal value of the objective function?

2) How many belts are produced?

3) How many shoes are produced?

4) Identify the binding and non-binding constraints and explain, and explain
how is the optimal solution affected by the constraints?

5) Is there a shadow price in the analysis? Explain the role of the shadow price.

6) If there is a Reduced Cost on either belt or shoes, what action would you
take, and explain why?

7) If you were to sell the belt at $23.00 – determine the optimal solution and
check if there is a reduced cost, and shadow price.

8) Explain your optimal solution, and reduced cost.

9) Are the constraints binding, and if so explain?

5. Bakery: Mary Custard’s is a Pie shop that specializes in custard and fruit
pies. It makes delicious pies and sells them at a reasonable price so that it can
sell all the pies it makes in a day. Every dozen custard pies nets Mary
Custard’s $15.00 and requires 12 pounds of flour, 50 eggs, 5 pounds of sugar
and no fruit mixture. Every dozen fruit pies nets $25.00 profit and uses 10
pounds of flour, 40 eggs, 10 pounds of sugar, and 15 pounds of fruit mixture.

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On a given day, the bakers at Mary Custard’s found that they had 150
pounds of flour, 500 eggs, 90 pounds of sugar, and 120 pounds of fruit
mixture with which to make pies.

a) Formulate and solve a linear program that will give the optimal
production schedule for the pies for the day.

b) If Mary Custard’s could double its profit on custard pies, should more
custard be produced? Explain.

c) If Mary Custard’s raised the price (and hence the profit) on all pies by
$0.25 ($3.00 per dozen), would the optimal production schedule for the
day change? Would the profit change?

d) Suppose Mary Custard’s found that 10% of its fruit mixture had been
stored in containers that were not air-tight. For quality and health
reasons, it decided that it would be unwise to use any of this portion of the
fruit mixture. How would this affect the optimal production schedule?
Explain.

e) Mary Custard’s currently pays $2.50 for a five-pound bag of sugar from
its bakery vendor. (The $0.50 per pound price of sugar is included in the
unit profit given earlier.) Its vendor has already made its deliveries for the
day. If Mary Custard’s wishes to purchase additional sugar, it must buy it
from Donatelli’s Market that sells sugar in one-pound boxes for $2.25 a
box. Should Mary Custard’s purchase any boxes of sugar from
Donatelli’s Market? Explain

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 6. Cox cable is about to expand its cable T offerings in Poway by adding MTV
and other stations. The activities as listed below in the table must be
completed before the service expansion is completed.

Activity
Description Immediate Duration
(weeks)
Predecessor

A Choose station - 2
B Get town council approval A 4
C Order converters B 3
D Install new dish B 2
E Install converters C, D 10
F Change billing system B 4

a. Draw a PERT/CPM network for this project

b. Prepare a chart showing the earliest/latest start & finish times (ES/EF,
LS/LF) and the slack for each activity)

c. What are the expected completion times of the project?

d. What are the critical paths for the project?

e. How long can activity A be delayed without delaying the minimum

completion time of the project?

f. How long can activity B be delayed by without delaying the minimum

completion time of the project?

g. If activity D delayed three days, how long will the landscaping project be
delayed by?

Sample Test 361B Prof. Pandya

Practice Test #3

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Questions are from Lawrence & Pasternack textbook

Practice problems are found at the back of the chapters:

Chapter 5: 23, 26, 27

Chapter 8: 10, 13, 19, 22

Chapter 9: 12, 16, 17, 19

Chapter 6: 3, 4, 11

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