11 Practice Questions

# 11 Practice Questions - BUAD 310 In-Class Practice The...

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- 1 - BUAD 310 In-Class Practice 10/11/10 The Standard Normal Table, t Table, and Chi-Square Table that we used in class are attached. 1. The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are delinquent (more than 90 days overdue). For this quarter, the auditing staff randomly selected 400 customer accounts and found that 80 of these accounts were delinquent. What is the 95% confidence interval for the proportion of all delinquent customer accounts at this manufacturing company? A) [0.1485, 0.2515] B) [0.1714, 0.2286] C) [0.1992, 0.2008] D) [0.1608, 0.2392] E) [0.1671, 0.2329] 2. To compare two population proportions p 1 and p 2 using two independent samples, we look at the 90% confidence interval for their difference p 1 - p 2 . The two sample proportions are 1 ˆ p and 2 ˆ p . Which of the following is the correct 90% confidence interval for p 1 - p 2 ? A) ) ( ˆ ˆ 2 1 ˆ ˆ 05 . 0 2 1 p p SE SE z p p B) ) ( ˆ ˆ 2 1 ˆ ˆ 1 . 0 2 1 p p SE SE z p p C) 2 1 ˆ ˆ 05 . 0 2 1 ˆ ˆ p p SE z p p D) 2 1 ˆ ˆ 1 . 0 2 1 ˆ ˆ p p SE z p p E) None of the above 3. Which of the following is true? A) t -distributions have lighter tails than the standard normal distribution. B) chi-square distributions are left-skewed C) as the degrees of freedom increase, t -distributions approach the chi-square distribution D) the peak of each t -density curve is lower than the peak of the standard normal density E) None of the above 4. Suppose you have constructed the following 95% confidence interval for the population mean μ: [5, 10]. Which of the following is a correct interpretation of the 95% confidence level? A) 95% of the observations in the entire population fall in the given interval. B) In repeated sampling, 95% of the intervals constructed would contain the population mean.

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- 2 - C) 95% of the observations in the sample fall in the given interval. D) In repeated sampling, the population mean would fall in the interval [5, 10] 95% of the time. 5. Suppose we reject H 0 : μ = 15 in favor of H a : μ ≠ 15 at the 0.05 level of significance with a negative value of the t test statistic. If we now test H 0 : μ = 15 versus H a : μ < 15 using the same sample, H 0 : μ = 15 ______ be rejected at the 0.025 level of significance. A)
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11 Practice Questions - BUAD 310 In-Class Practice The...

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