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##### QMB FINAL MCQs-The median is often a better representative of the central value of a data set when the data...

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Question;1.The median is often a better representative of the central value of a data set when the data set:SourceIs bimodal.Has a high standard deviation.Is highly skewed.Has no outliers.2.The data in the Excel spreadsheet linked below provide information on the nutritional content (ingrams per serving) of some leading breakfast cereals.For which nutrients is the mean nutrient content per serving greater than the median nutrientcontent per serving?Breakfast CerealsSourceProteins only.Complex carbohydrates only.Both nutrients.Neither nutrient.3.The histogram below plots the carbon monoxide (CO) emissions (in pounds/minute) of 40different airplane models at take-off.The distribution is best described as is:SourceUniform.Heteroskedastic.Normal.Skewed right.4.The histogram below plots the carbon monoxide (CO) emissions (in pounds/minute) of 40different airplane models at take-off.Which of the following statements is the best inference that can be drawn from this histogram?SourceThe mean amount of carbon monoxide emissions is greater than the median amount ofcarbon monoxide emissions.The mean amount of carbon monoxide emissions is less than the median amount ofcarbon monoxide emissions.The mean and median amounts of carbon monoxide emissions are about equal.The relative sizes of the mean and median amounts of carbon monoxide emissions cannotbe inferred from the histogram.In the data set shown below, the correlation coefficient of the two variables is:Correlation DataSource6.The data in the Excel spreadsheet linked below give the ages and salaries of the chief executiveofficers of 59 companies with sales between $5 million and $350 million.The correlation between age and salary can be characterized as:CEO SalariesSourceStrong and positive.Strong and negative.Weak and positive.Weak and negative-1.0.-0.50.0None of the above43.Electronics manufacturer SE must decide whether or not to invest in the development of a newtype of battery. If the development succeeds, the market for the battery may be large or small. Ifit doesn't succeed, the development efforts may or may not generate minor innovations thatwould offset some of the battery's development costs. The tree below summarizes the decision.The EMV of developing the new battery is $300,000. Based on EMV, SE should develop thebattery. Given that development is successful, for what endpoint values for a large market doesdeveloping the battery have a lower EMV than not developing the battery?SourceLess than $1.2 million.Greater than $1.2 million.Greater than $0.75 million.None of the above.44.The manager of the Eris Shoe Company must decide whether or not to contract a controversialsports celebrity as its spokesperson. The new spokesperson's value to Eris depends heavily onconsumers' perception of him. An initial decision analysis based on available data reveals that theexpected monetary value of contracting the new spokesperson is $260,000. For $50,000 Eris canengage a market research firm that will help Eris learn more about how consumers might react tothe celebrity. The EMV of buying this sample information (assuming it is free) for this decisionis $300,000.The tree below summarizes Eris's decision. Based on EMV analysis, Eris's manager should:Hire the research firm.Not hire the research firm, but contract the new spokesperson.Not hire the research firm and not contract the new spokesperson.The answer cannot be determined from the information7.7. For a given set of data, the standard deviation measures:SourceThe difference between the mean and the data point farthest from the mean.The difference between the mean and the data point nearest to the mean.The difference between the mean and the median.None of the above5.In the data set shown below, the correlation coefficient of the two variables is:Correlation DataSource-1.0.-0.50.0None of the above8.The data in the Excel spreadsheet linked below give the average exchange rates of fourcurrencies to the US dollar during October 2002.Over this period, which currency was most volatile relative to the US dollar, as measured by thecoefficient of variation?Exchange RatesSourceThe Brazilian Real.The Euro.The Japanese Yen.The South Korean Won9.A national business magazine intends to survey its subscribers to determine who they think is the"CEO of the Century." Subscribers are invited to complete an online survey.Based only on this information, which of the following can be inferred about the survey results?SourceThey will be biased because the magazine's subscribers are unqualified to determine whothe CEO of the century is.They will accurately reflect the opinion of the nation as a whole about who the CEO ofthe century is.They will be unbiased because the respondents will be self-selected.They will be biased because subscribers who have access to the online survey are notrepresentative of the population of subscribers as a whole.10.A political consultant conducts a survey to determine what position the mayoral candidate sheworks for should take on a proposed smoking ban in restaurants.Which of the following survey questions will deliver an unbiased response?SourceShould the city ban smoking in restaurants to protect our children from second-handsmoke?Should tobacco smoke, a known cause of lung cancer, be banned from public spaces suchas restaurants?Does the city have the right to restrict recreational activities, such as moderateconsumption of alcohol or tobacco, on the premises of privately-owned businesses?None of the above11.In a recently administered IQ test, the scores were distributed normally, with mean 100 andstandard deviation 15.What proportion of the test takers scored between 70 and 130?SourceAbout 68%.About 84%.About 95%.About 99.5%.12.Which of the following is not true about the Normal Distribution?SourceIt is symmetric.Its mean and median are equal.It is completely described by its mean and its standard deviation.It is bimodal.13.The histogram below shows the underlying distribution pattern of the results of a rolled die.Suppose the die is rolled 50 times and the results are averaged. Suppose this process rolling50 dice and averaging their results is repeated 100 times.Which of the following best describes the distribution of these 100 averages?SourceSkewed right.Skewed left.Normal.Uniform.14.A nutrition researcher wants to determine the mean fat content of hen's eggs. She collects asample of 40 eggs. She calculates a mean fat content of 23 grams, with a sample standarddeviation of 8 grams. From these statistics she calculates a 90% confidence interval of [20.9grams, 25.1 grams].What can the researcher do to decrease the width of the confidence interval?SourceIncrease the confidence level.Decrease the confidence level.Decrease the sample sizeNone of the above.15.In a random sample of 321 senior citizens, 61 were found to own a home computer.Based on this sample, the 95% confidence interval for the proportion of computer-owners amongsenior citizens is:Source[2.6%, 7.4%].[13.4%, 24.6%].[14.7%, 23.3%].The answer cannot be determined from the information given16.Preliminary estimates suggest that about 58% of students at a state university favorimplementing an honor code.To obtain a 95% confidence interval for the proportion of all students at the university favoringthe honor code, what is the minimum sample size needed if the total width of the confidenceinterval must be less than 5 percentage points (i.e., the confidence interval should extend at most2.5 percentage points above and below the sample proportion)?Source375.264.1,498.The answer cannot be determined from the information given.17.In a survey of twelve Harbor Business School graduates, the mean starting salary was $93,000,with a standard deviation of $17,000.The 95% confidence interval for the average starting salary among all Harbor graduates is:Source[$83,382, $102,618].[$82,727, $103,327].[$82,199, $103,801].[$59,000, $127,000].18.In a survey of 53 randomly selected patrons of a shopping mall, the mean amount of currencycarried is $42, with a standard deviation of $78.What is the 95% confidence interval for the mean amount of currency carried by mall patrons?Source[$39.1, $44.9].[$24.4, $59.6].[$21.0, $63.0].[$14.4, $69.6].19.A filling machine in a brewery is designed to fill bottles with 355 ml of hard cider. In practice,however, volumes vary slightly from bottle to bottle. In a sample of 49 bottles, the mean volumeof cider is found to be 354 ml, with a standard deviation of 3.5 ml.At a significance level of 0.01, which conclusion can the brewer draw?SourceThe true mean volume of all bottles filled is 354 ml.The machine is not filling bottles to an average volume of 355 ml.There is not enough evidence to indicate that the machine is not filling bottles to anaverage volume of 355 ml.The machine is filling bottles to an average volume of 355 ml.20.To conduct a one-sided hypothesis test of the claim that houses located on corner lots (corner-lothouses) have higher average selling prices than those located on non-corner lots, the followingalternative hypothesis should be used:House Prices DataSourceThe average selling price of a corner-lot house is higher than it is commonly believed tobe.The average selling price of a corner-lot house is higher than the average selling price ofall houses.The average selling price of a corner-lot house is the same as the average selling price ofa house not located on a corner lot.The average selling price of a corner-lot house is higher than the average selling price ofa house not located on a corner lot.21.The data in the Excel spreadsheet linked below indicate the selling prices of houses located oncorner lots ("corner-lot houses") and of houses not located on corner lots.Conduct a one-sided hypothesis test of the claim that corner-lot houses have higher averageselling prices than those located on non-corner lots. Using a 99% confidence level, which of thefollowing statements do the data support?House Prices DataSourceUpscale, expensive neighborhoods have more street corners.The average selling price of a corner-lot house is higher than that of the average housenot located on a corner lot.The average selling price of a corner-lot house is no more than that of the average housenot located on a corner lot.There is not enough evidence to support the claim that the average selling price of acorner-lot house is higher than that of the average house not located on a corner lot.22.Two semiconductor factories are being compared to see if there is a difference in the averagedefect rates of the chips they produce. In the first factory, 250 chips are sampled. In the secondfactory, 350 chips are sampled. The proportions of defective chips are 4.0% and 6.0%,respectively.Using a confidence level of 95%, which of the following statements is supported by the data?SourceThere is not sufficient evidence to show a significant difference in the average defectrates of the two factories.There is a significant difference in the average defect rates of the two factories.The first factory's average defect rate is lower than the second factory's on 95 out of 100days of operation.None of the above.23.The regression analysis below relates average annual per capita beef consumption (in pounds)and the independent variable "average annual beef price" (in dollars per pound).The coefficient on beef price tells us that:Beef Consumption and PriceSourceFor every price increase of $1, average beef consumption decreases by 9.31 pounds.For every price increase of $1, average beef consumption increases by 9.31 pounds.For every price increase $9.31, average beef consumption decreases by 1 pound.For price increase of $9.31, average beef consumption increases by 1 pound24.The regression analysis below relates average annual per capita beef consumption (in pounds)and the independent variable "average annual beef price" (in dollars per pound).In a year in which the average price of beef is at $3.51 per pound, we can expect average annualper capita beef consumption to be approximately:Beef Consumption and PriceSource55.2 pounds52.6 pounds53.6 pounds117.9 pounds25.The regression analysis below relates average annual per capita beef consumption (in pounds)and the independent variable "average annual per capita pork consumption" (in pounds).At what level is the coefficient of the independent variable pork consumption significant?Beef Consumption and Pork ConsumptionSource0.10.0.05.0.01.None of the above26.The regression analysis below relates average annual per capita beef consumption (in pounds)and the independent variable "average annual per capita pork consumption" (in pounds).Which of the following statements is true?Beef Consumption and Pork ConsumptionSourceBeef consumption can never be less than 65.09 pounds.Beef consumption can never be greater than 65.09 pounds.The y-intercept of the regression line is 65.09 pounds.The x-intercept of the regression line is 65.09 pounds.27.The regression analysis at the bottom relates average annual per capita beef consumption (inpounds) and the independent variables "average annual per capita pork consumption" (in pounds)and "average annual beef price" (in dollars per pound).Which of the independent variables is significant at the 0.01 level?Beef Consumption, Pork Consumption, and Beef PriceSourceBeef price only.Pork consumption only.Both independent variables.Neither independent variable.28.The regression analysis at the bottom relates average annual per capita beef consumption (inpounds) and the independent variables "annual per capita pork consumption" (in pounds) and"average annual beef price" (in dollars per pound).The coefficient for beef price, -12, tells us that:Beef Consumption, Pork Consumption, and Beef PriceSourceFor every $1 increase in beef price, average beef consumption decreases by 12 lbs, notcontrolling for pork consumption.For every $12 drop in beef price, average beef consumption decreases by 1 lbs, notcontrolling for pork consumption.For every $1 increase in beef price, average beef consumption decreases by 12 lbs,controlling for pork consumption, i.e. holding pork consumption constant.For every $12 decrease in beef price, average beef consumption decreases by 1 lbs,controlling for pork consumption, i.e. holding pork consumption constant.29.The data in the Excel spreadsheet linked below give the seasonally adjusted value of total newcar sales (in millions of dollars) in the United States, total national wage and salarydisbursements (referred to here as "compensation") (in billions of dollars), and the employmentlevel in the non-agricultural sector (in thousands) for 44 consecutive quarters. An auto industryexecutive wants to know how well she can predict new car sales two quarters in advance usingthe current quarter's compensation data.How many data points can she use in a regression analysis using the data provided?Car Sales DataSource41.42.43.44.30.The Excel spreadsheet linked below contains the simple regressions of total new car sales (inmillions of dollars) on each of two independent variables: "compensation" (in billions of dollars)and "employment level in the non-agricultural sector" (in thousands).Which of the following independent variables explains more than 90 percent of the observedvariation in new car sales?Car Sales Simple RegressionsSourceCompensation only.Employment level only.Both independent variables31.The regression analysis below relates the value of new car sales (in millions of dollars) tocompensation (in billions of dollars) and the employment level in the non-agricultural sector (inthousands) for 44 consecutive quarters.Which of the two independent variables is statistically significant at the 0.05 level?Car Sales Multiple RegressionSourceCompensation only.Employment level only.Both independent variables.Neither independent variable.32.The regression analysis below relates the value of new car sales (in millions of dollars) and theindependent variables "compensation" (in billions of dollars) and "employment level in the nonagricultural sector" (in thousands) for 44 consecutive quarters. Compare this multiple regressionto the simple regressions with compensation and employment level as the respective independentvariables.Which of the following is the likely culprit of the dramatic increase in the p-value foremployment level in the multiple regression?Car Sales RegressionsSourceMulticollinearity.Heteroskedasticity.Nonlinearity.None of the above33.The regression analysis below relates the value of new car sales (in millions of dollars) and theindependent variables "compensation" (in billions of dollars) and "employment level in the nonagricultural sector" (in thousands) for 44 consecutive quarters.The coefficient for employment level, 0.21, describes:Car Sales Multiple RegressionSourceThe behavior of car sales as the employments level changes, controlling forcompensation.The behavior of the employment level as car sales change, not controlling forcompensation.The behavior of car sales as the employment level changes, not controlling forcompensation.The behavior of the employment level as car sales change, controlling for compensation.34.A new blood pressure treatment is being tested. The regression analysis below describes therelationship between the 41 test subjects' diastolic blood pressure and the dummy variable"medication." When a test subject is taking the new drug, the value of medication is 1, when not,the value of medication is 0.Which of the following can be inferred from the regression analysis?Blood PressureSourceThe medication has no statistically significant effect (at a 0.01 significance level).The use of medication accounts for around 42% of the variation in diastolic bloodpressure.On average, test subjects taking the medication report a diastolic blood pressure levelabout 5 points lower than those not taking the medication.None of the above.35.In a regression analysis, a residual plot is:SourceA scatter diagram that plots the values of the residuals against the values of the dependentvariable.A scatter diagram that plots the values of the residuals against the values of anindependent variable.A histogram that plots the frequency of certain value ranges of the residuals.None of the above.36.In a regression analysis, if a new independent variable is added and R-squared increases andadjusted R-squared decreases precipitously, what can be concluded?SourceThe new independent variable improves the predictive power of the regression model.The new independent variable does not improve the predictive power of the regressionmodel.The regression was performed incorrectly. It is impossible for R-squared to increase andadjusted R-squared decrease simultaneously.The new independent variable's coefficient is not significant at the 0.01 level37.The table below displays data the First Bank of Silverhaven (FBS) has collected on the personalsavings accounts of its job-holding customers. The table includes data on the distribution of thenumber of accounts held by Homeowners vs. Non-Homeowners, and by whether the customer isSelf-Employed or is Employed by a firm in which he or she does not have an ownership stake.What is the probability that a given account-holder is self-employed?Source15%12%3%None of the above.38.The table below displays data the First Bank of Silverhaven (FBS) has collected on the personalsavings accounts of its job-holding customers. The table includes data on the distribution of thenumber of accounts held by Homeowners vs. Non-Homeowners, and by whether the customer isSelf-Employed or is Employed by a firm in which he or she does not have an ownership stake.What is the conditional probability that an account-holder is employed by a firm in which he orshe does not have an ownership stake, given that the account-holder is a homeowner?Source82.9%68.2%59.5%None of the above.39.The table below displays data the First Bank of Silverhaven (FBS) has collected on the personalsavings accounts of its job-holding customers. The table includes data on the distribution of thenumber of accounts held by Homeowners vs. Non-Homeowners, and by whether the customer isSelf-Employed or is Employed by a firm in which he or she does not have an ownership stake.Which of the following statements is true?SourceHome ownership and employment status are statistically dependent.The fact that a given personal account is held by a homeowner tells us nothing about theaccount holder's employment status.The fact that a given personal account is held by a self-employed person tells us nothingabout the account-holder's home ownership status.None of the above.40.Electronics manufacturer SE must decide whether or not to invest in the development of a newtype of battery. If the development succeeds, the market for the battery may be large or small. Ifit doesn't succeed, the development efforts may or may not generate minor innovations thatwould offset some of the battery's development costs. The tree below summarizes the decision.What is the expected monetary value of developing the new battery?Source$0.3 million-$0.5 million$0.9 million$1.5 million41.Electronics manufacturer SE must decide whether or not to invest in the development of a newtype of battery. If the development succeeds, the market for the battery may be large or small. Ifit doesn't succeed, the development efforts may or may not generate minor innovations thatwould offset some of the battery's development costs. The tree below summarizes the decision.The EMV of developing the new battery is $300,000. Based on EMV, SE should develop thebattery. If the manager chooses not to develop the battery, which of the following best describesthe manager's attitude towards this decision?SourceRisk averse.Risk neutral.Risk seeking.Cowardly.42.Electronics manufacturer SE must decide whether or not to invest in the development of a newtype of battery. If the development succeeds, the market for the battery may be large or small. Ifit doesn't succeed, the development efforts may or may not generate minor innovations thatwould offset some of the battery's development costs. The tree below summarizes the decision.The EMV of developing the new battery is $300,000. Based on EMV, SE should develop thebattery. For what values of p = Prob[success] does developing the battery have a lower EMVthan not developing the battery?Sourcep 25%p < 75%None of the above.

Paper#60258 | Written in 18-Jul-2015

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