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I have attached my document for answers to the 43 questions. Stats Questions II

1.The table below displays a week\\\'s worth of data on daily sales

at the Crank It Louder Music Store. ??Over that time period, what was the mean

daily level of sales?

A. ?\$3,489.79

?B. \$4,071.42

?C. \$1,643.23

D. \$2,829.92

2. The table below displays a week\\\'s worth of data on daily sales

at the Crank It Louder Music Store. ??Over that time period, what was the

median daily level of sales?

A. \$1,643.23

B. ?\$3,489.79

C. ?\$3,130.46

D. ?\$800.12

3. The histogram below displays the age distribution of the

world\\\'s billionaires as reported by Forbes Magazine in 2001. ??This

distribution is best described as:

?A. Approximately normal.

?B. Strongly skewed to the right.

?C. Bimodal.

D. Approximately uniform.

4) Which of the following correctly ranks from smallest to largest

the measures of central tendency of the data displayed in the histogram below?

?

A. Mode < mean < median.?

B. ?Median < mode < mean.?

C. Mode < median < mean.?

D. ?The answer cannot be determined from the information provided.

5) The scatter diagram below displays the relationship between age

and net worth (in US\$ billions) for the world\\\'s 20 wealthiest people as

reported by Forbes Magazine in 2001. ??If 45-year old Bill Gates, the world\\\'s

wealthiest person, is considered an outlier and removed from the data set, what

will be the effect on this relationship?

A. The value of the correlation coefficient will decrease.

B. ?The value of the correlation coefficient will increase.

C. ?The value of the correlation coefficient will stay about the same.

D. ?The correlation will become perfectly linear.

6. The data in the Excel spreadsheet linked below gives the net

worth (in US\$ billions) and ages of the world\\\'s billionaires as reported by Forbes

Magazine in 2001. ??The correlation coefficient between age and net worth:

B ?Is greater than 0.5.

C ?Is less than -0.5.

D ?The answer cannot be determined from the information given.

average monthly price of gold (in dollars per ounce) for the years 1980 to1983.

??Which of the following statistics measures gold price variation in the same

units as gold price itself (i.e., dollars per ounce)?

A. ?The standard deviation.

B ?The variance.

C ?The coefficient of variation.

D ?None of the above.

average monthly price of gold (in dollars per ounce) for the years 1980 to

1983. ??In which of the years was the coefficient of variation of gold price

the highest?

A ?1980

B ?1981

C ?1982

D ?1983

9. bizneznuz.com, an online business news agency, conducts a poll.

Visitors to the site are invited to click on one of two buttons in order to

register that they \\\"agree\\\" or \\\"disagree\\\" with the following

statement: \\\"Funding for space exploration should be left entirely to the

private sector.\\\" ??If bizneznuz.com wants to accurately measure its online

readership\\\'s support for government-funded space exploration, this poll will deliver

a biased and unrepresentative response because:

A ?The pool of respondents is self-selected.

B ?All respondents have internet access.

C ?bizneznuz.com targets mainly the business community.

D ?All of the above.

10. A researcher wants to collect data about the study habits of

sophomores at Harmond University. From the sophomore class of 2,300 students,

she wants to collect a sample of 70 students. ??Which of the following sampling

methods will yield the most representative sample?https://eproduct.hbsp.harvard.edu/eproduct/product/quant/content/item/6179/source_bibliography.xls

A. ?Assigning each sophomore a number and then randomly generating 70 numbers

from that list.

B Randomly selecting 70 sophomores entering the university\\\'s main library on a

randomly selected evening.

C ?Selecting the 70 sophomores whose grade point averages (GPA) fall closest to

the mean GPA of the sophomore class.

D ?Randomly selecting 70 sophomores who are members of college fraternities.

11. A normal distribution is completely determined by:https://eproduct.hbsp.harvard.edu/eproduct/product/quant/content/item/6179/source_bibliography.xls

A ?Its mean and its standard deviation.

B Its mean and its mode.

C Its mean and its median.

D None of the above.

12. The average height of American women is distributed normally,

with a mean of 63.5 inches and a standard deviation of 2.5 inches.

??Approximately what percentage of American women are taller than 58.5 inches,

but shorter than 68.5 inches?

A ?50%

B ?68%

C ?84%

D ?95%

13. The histogram below displays the distribution of income among

households in the United States in 2001. Suppose a researcher takes a random

sample of 60 households and calculates average household income in the sample.

Suppose 99 other researchers conduct identical studies, each independently

collecting a random sample of 60 households and computing the average household

income in that sample.??Which of the following best describes the distribution

of the 100 different average household incomes calculated by the researchers?

?

A. Symmetric with one peak.

B. ?Symmetric with two peaks.

C. ?Skewed left.

D ?Skewed right.

14.When calculating a confidence interval for a mean, which of the

following will increase the width of the confidence interval?

A. ?Decreasing the sample size.

B. ?Increasing the sample size.

C. ?Decreasing the sample mean.

D. ?Increasing the sample mean.

15. A manufacturer of microwaves gathers information on microwave

sales from a random sample of 50 stores in a large retail chain. In the sample,

the mean number of microwaves sold per store last week was 19, with standard

deviation 2. ??What is the 95% confidence interval for the mean number of

microwaves sold at a retail store in the chain last week?

A ?[18.45, 19.55]

B ?[17.00, 21.00]

C ?[15.00, 23.00]

D ?[18.27, 19.73]

16. In a public opinion poll, 48% of 189 respondents favored an

elimination of taxes on dividend income. ??What is the 95% confidence interval

for the proportion of people who favor an elimination of taxes on dividend

income?

A ?[40.9%, 55.1%]

B ?[47.5%, 48.5%]

C ?[42.0%, 54.0%]

D ?The answer cannot be determined from the information provided.

17.In a public opinion poll, 48% of 189 respondents favor an

elimination of taxes on dividend income. ??How many respondents would be needed

to calculate a 95% confidence interval (for the proportion of people who favor

an elimination of taxes on dividend income) that has a total width no greater

than 4% (i.e., the estimate must be within +/- 2% of the true population

proportion)?

A ?2,398

B ?600

C ?1,689

D ?The answer cannot be determined from the information provided.

18. In a finance course at a business school, 6 students are

randomly selected. Their mean score on the final exam is 75, with standard

deviation 8. ??What is the 95% confidence interval for the average class score

on the final?

A ?[66.6, 83.4]

B ?[67.6, 82.4]

C ?[68.6, 81.4]

D ?[71.7, 78.3]

19. A company\\\'s average accounts receivable per customer is

\$132.54. After a problem in the automated accounting software is suspected, a random

sample of 38 accounts reveals a sample mean of \$143.55 and a sample standard

deviation of \$38.29. ??In a two-sided hypothesis test to see if the average

accounts receivable has changed, the best formulation of the null hypothesis

is:

A ?The average accounts receivable is \$132.54.

B ?The average accounts receivable is \$143.55.

C ?The average accounts receivable is no longer \$132.54.

D ?None of the above.

20. A company\\\'s average accounts receivable per customer is

\$132.54. After a problem in the automated accounting software is suspected, a

random sample of 38 accounts reveals a sample mean of \$143.55 and a sample

standard deviation of \$38.29. ??After running a two-sided hypothesis test of

the hypothesis that the average accounts receivable has changed, the best

conclusion (using a 95% confidence level) is:

A ?There is not sufficient evidence that the average accounts receivable has

changed.

B ?The average accounts receivable is still \$132.54.

C ?The average accounts receivable has changed.

D ?The average accounts receivable is at least \$143.55.

21.In a survey of 48 citizens, 36 registered strong disapproval

with their government\\\'s economic leadership. In the previous month, the

proportion of participants registering strong disapproval was 65%. ??At the 95%

confidence level and using a two-sided test, which of the following statements

do these data support?

A ?There is not sufficient evidence to indicate that the proportion of

participants registering strong disapproval has changed.

B ?The proportion of participants registering strong disapproval has increased.

C ?The proportion of participants registering strong disapproval has stayed the

same.

D ?None of the above.

22. A telemarketing company wants to find out if people are more

likely to answer the phone between 8pm and 9pm than between 7pm and 8pm. Out of

96 calls between 7pm and 8pm, 72 were answered. Out of 105 calls between 8pm

and 9pm, 90 were answered. ??Using a one-sided hypothesis test with a 90%

confidence level, which of the following statements do these data support?

A ?There is not sufficient evidence that the proportion of people who answer

the phone between 8pm and 9pm is greater than the proportion who answer the

phone between 7pm and 8pm.

B ?People are more likely to answer the phone between 8pm and 9pm.

C ?Telemarketers should not call at all during the evenings.

D ?People are more likely to answer the phone between 7pm and 8pm.

23.The regression analysis below relates US annual energy

consumption in trillions of BTUs to the independent variable \\\"US Gross

Domestic Product (GDP) in trillions of dollars.\\\" ??Which of the following

is the lowest level at which the independent variable is significant?

?

A 0.94

B ?0.10

C ?0.05

D ?0.01

24.The regression analysis below relates US annual energy

consumption in trillions of BTUs to the independent variable \\\"US Gross

Domestic Product (GDP) in trillions of dollars.\\\" ??The coefficient on the

independent variable tells us that:

A For every additional trillion dollars of GDP, average energy consumption

increased by 3,786 trillion BTUs.

B ?For every additional dollar of GDP, average energy consumption increased by

3,786 trillion BTUs.

C ?For every additional trillion dollars of GDP, average energy consumption

increased by 3,786 BTUs.

D ?For every additional trillion BTUs of energy consumption, average GDP

increased by \$3,786 trillion.

25. The regression analysis below relates US annual energy

consumption in trillions of BTUs to the independent variable \\\"US Gross

Domestic Product (GDP) in trillions of dollars.\\\" ??Which of the following

statements is true?

?

A The y-intercept of the regression line is 62,695 trillion BTUs.

B ?The x-intercept of the regression line is \$62,695 trillion.

C ?In the event that a thermonuclear war completely halts all economic activity

and the US GDP drops to zero, energy consumption will sink to 62,695 trillion

BTUs.

D ?None of the above.

26.The regression analysis below relates US annual energy

consumption in trillions of BTUs to the independent variable \\\"US Gross

Domestic Product (GDP) in trillions of dollars.\\\" ??In a given year, if GDP

is \$7.4 trillion, expected energy consumption is:

?

A Around 90,711 trillion BTUs

B ?Around 91,501 trillion BTUs

C ?Around 28,016 trillion BTUs

D ?Around 467,729 trillion BTUs.

27. The regression analysis below relates US annual energy

consumption in trillions of BTUs to the independent variable \\\"US Gross

Domestic Product (GDP) in trillions of dollars.\\\" ??How much of the

variation in energy consumption can be explained by variation in the gross

domestic product?

D ?Almost none of the variation in energy consumption can be explained by

variation in GDP.

28. The regression analysis below relates US annual energy

consumption in trillions of BTUs to the independent variables \\\"US Gross

Domestic Product (GDP) in trillions of dollars\\\" and \\\"average gas

mileage of all passenger cars in miles per gallon (mpg).\\\" ??Which of the

two independent variables is significant at the 0.01 level?

?

A GDP only.

B ?Average car gas mileage only.

C ?Both independent variables.

D ?Neither independent variable.

29.The regression analysis below relates US annual energy

consumption in trillions of BTUs to the independent variables \\\"US Gross

Domestic Product (GDP) in trillions of dollars\\\" and \\\"average gas

mileage of all passenger cars in miles per gallon (mpg).\\\" ??The

coefficient for the independent variable \\\"average car gas mileage

(mpg),\\\" -70.50, describes:

A ?The relationship between energy consumption and average car gas mileage,

controlling for GDP.

B ?The relationship between energy consumption and average car gas mileage, not

controlling for GDP.

C? The relationship between average car gas mileage and GDP, controlling for

energy consumption.

D ?The relationship between average car gas mileage and GDP, not controlling

for energy consumption.

30. The data table below tabulates a pizza parlor\\\'s advertising

expenditures and sales for 8 consecutive quarters. The marketing manager wants

to know how much of an impact current advertising will have on sales two

quarters from now. ??When running a regression with the dependent variable

\\\"sales\\\" and the independent variable \\\"advertising lagged by two

quarters,\\\" how many data points can she use, given the available data?

A 6

B 7

C ?8

D ?9

31. In a regression analysis, a residual is defined as:

a) The difference between the actual value and the predicted value of the

dependent variable.

b) The difference between the actual value and the predicted value of the independent

variable.

c) ?The proportion of the variation in the independent variable that remains

unexplained by the variation in the dependent variable.

d) The proportion of the variation in the dependent variable that remains

unexplained by the variation in the independent variable.

32. When comparing two regression analyses that have a different

number of independent variables, which of the following should be used to

compare the explanatory power of the two regressions?

b) ?R-squared.

c) ?The correlation coefficient (\\\"Multiple R\\\").

d) None of the above.

33. Amalgamated Fruits, Vegetables, and Legumes, an agricultural

company, breeds the experimental fruit \\\"kiwana.\\\" The company is

studying the effects of a new fertilizer on the number of kiwanas per bunch

grown on kiwana trees. The regression analysis below relates the number of

kiwanas per bunch to the independent dummy variable \\\"fertilizer.\\\"

??Based on the regression, which of the following statements may be concluded?

a) On average, the use of the new fertilizer increases the number

of kiwanas per bunch by 5.25.

b) ?The independent dummy variable \\\"fertilizer\\\" is significant at the

0.01 level.

c) Variation in the independent dummy variable \\\"fertilizer\\\" explains

around 53% of the variation in the number of kiwanas per bunch.

d) None of the above.

34. In a regression analysis with multiple independent variables,

multicollinearity can be caused by:

a) ?A strong linear relationship between two or more independent variables.

b) ?A strong nonlinear relationship between the dependent variable and one or

more independent variables.

c) ?A strong heteroskedastic relationship between the dependent variable and

one or more independent variables.

d) ?None of the above.

35. Market researcher Ally Nathan is studying the relationships

among price, type (classical or steel string), and consumer demand for acoustic

guitars. She wants to find the relationship between demand and price,

controlling for type.??To determine this relationship, she should:

a) Run a simple regression of the dependent variable demand on the

independent variable price and observe the coefficient on price.

b) ?Run a simple regression of the dependent variable demand on the independent

variable type and observe the coefficient on type.

c) ?Run a multiple regression of the dependent variable demand on the

independent variables price and type and observe the coefficient on price.

d) Run a multiple regression of the dependent variable demand on the

independent variables price and type and observe the coefficient on type.

36. The table below displays data on defect rates at a compact disk (CD)

pressing facility. The table includes data on the distribution of CDs that have

content errors (missing and/or wrong content), and on the distribution of CDs

that have labeling errors.

??What is the probability that a randomly selected CD has a content error?

a) 1.00%

b) ?0.98%

c) ?0.02%

d) None of the above.

37. The table below displays data on defect rates at a compact

disk (CD) pressing facility. The table includes data on the distribution of CDs

that have content errors (missing and/or wrong content), and on the

distribution of CDs that have labeling errors. ??

What is the conditional probability that a CD has no content errors, given that

has a labeling error?

a) ?97.02%

b) ?1.98%

c) 98.00%

d) None of the above.

38. The table below displays data on defect rates at a compact disk (CD)

pressing facility. The table includes data on the distribution of CDs that have

content errors (missing and/or wrong content), and on the distribution of CDs

that have labeling errors. ??

Which of the following statements is true?

a) ?The fact that a CD has a content error tells us nothing about whether it

has a labeling error.

b) ?The events of a CD having a content error and a CD having a labeling error

are statistically dependent.

c) ?The fact that a CD has a labeling error tells us something about whether it

has a content error.

d) None of the above.

39. The WH meat-packing company must decide whether or not to

recall one week\\\'s production of kielbasa due to possible contamination. An

outbreak of non-fatal food poisoning may be linked to WH. If so, WH may face a

lawsuit. The tree below summarizes the decision. ??What is the expected monetary

value of the cost of not issuing a recall?

a) ?\$80,000

b) \$120,000

c) \$800,000

d) ?\$0

40. The WH meat-packing company must decide whether or not to

recall one week\\\'s production of kielbasa due to possible contamination. An

outbreak of non-fatal food poisoning may be linked to WH. If so, WH may face a

lawsuit. The tree below summarizes the decision. ??The EMV of the cost of not

issuing a recall is \$80,000. Based on EMV, WH should not issue a recall. If WH

chooses to recall, which of the following best describes the WH\\\'s attitude

towards this decision?

a) ?Risk averse.

b) Risk neutral.

c) Risk seeking

d) Chicken.

41. The WH meat-packing company must decide whether or not to

recall one week\\\'s production of kielbasa due to possible contamination. An outbreak

of non-fatal food poisoning may be linked to WH. If so, WH may face a lawsuit.

The tree below summarizes the decision. ??The EMV of the cost of not issuing a

recall is \$80,000. Based on EMV, WH should not issue a recall. An estimated

value of a reputation loss is included in the outcome estimate of the lawsuit.

If WH is implicated, the firm may face a reputation loss even if no lawsuit is

filed. For what values of that reputation loss would issuing the recall be

preferable, in terms of EMV?

a) Higher than \$500,000.

b) ?Lower than \$500,000.

c) ?Lower than \$44,444

d) None of the above

42. The WH meat-packing company must decide whether or not to

recall one week\\\'s production of kielbasa due to possible contamination. An

outbreak of non-fatal food poisoning may be linked to WH. If so, WH may face a

lawsuit. The tree below summarizes the decision. ??The EMV of the cost of not

issuing a recall is \$80,000. Based on EMV, the manager should not issue the

recall. For what values of p = Prob[WH is implicated] is not recalling the

kielbasa preferable to recalling the kielbasa, in terms of EMV?

a) p < 15%?

b) ?p > 15%?

c) ?p < 85%?

d) ?None of the above.?

43. The WH meat-packing company must decide whether or not to

recall one week\\\'s production of kielbasa due to possible contamination. An

outbreak of non-fatal food poisoning may be linked to WH. If so, WH may face a

lawsuit. The tree below summarizes the decision. ??

The EMV of the cost of not issuing a recall is \$80,000. Suppose there were a

way to know for certain whether WH would be implicated or not. What would be

the value of this perfect information?

a) \$68,000

b) \$12,000

c) ?\$80,000

d) None of the above.

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