f98exm1b - COURSE: MSCI 3710 EXAM 1 Version B Fall 1998...

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COURSE: MSCI 3710 Print Name: EXAM 1 Signature: Version B S.S.#: Fall 1998 Seat Number: Note: Whenever question(s) are connected you may be asked to assume a result (given a value) from the previous question but this result may or may not be correct. This is to prevent you from losing points on a second question because you made a mistake on a previous question. Use the information given in the paragraph below to answer the next three questions. According to an article in the COBA Business Review, the average movie ticket in Tokyo costs
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more than twice the average price of a movie ticket in New York City. An economist interested in differences in the economies of Japan and United States wishes to test whether the average price of a movie ticket in Tokyo exceeds the average movie ticket in New York City by more than $7. A random sample from both cities resulted in the following information. Tokyo (1) New York City (2 ) $ 23 $ 14 s $ 5 $ 3 n 40 32 1. To test the claim that the average price of a movie ticket in Tokyo is more than seven dollars more expensive than NYC’s, which of the following would be appropriate for the alternative hypothesis? A. μ 1 – μ 2 > $7 B. μ 1 μ 2 < $7 C. μ 1 μ 2 = $7 D. μ 1 μ 2 $7 E. μ 1 μ 2 > $7 2. What is the calculated value of the appropriate test statistic for the test in question #1? A. Z* = 1.90 B. Z* = 4.28 C. t* = 2.21 D. Z* = 2.10 E. t* = 3.20 3. Assuming the calculated value of the test statistic in question #2 is 2.01 , what is the p-value of the test? A. .01 < p < .025 B. p = .0222 C. p = .0111 D. p = .0444 E. p = .4778
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Use the information given below to answer the next two questions. The production manager in a chemical plant knows that the time for a certain product line to become stable after being stopped for machine adjustments is normally distributed. He uses a sample of 10 stoppages to determine a 90% confidence interval for the average warm-up period to be 8.3 to 9.4 minutes. The firm’s cost accountant would like to answer the following question: Is there sufficient evidence, at the 10% significance level, to indicate that the average warm-up period is different from 8 minutes? 4. What should be the decision and conclusion based on the confidence interval? A. reject the null hypothesis, conclude that there is evidence the average warm-up period is equal to 8 minutes. B. Fail to reject the null hypothesis, conclude that there is insufficient evidence the average warm-up period is not equal to 8 minutes. C. Fail to reject the null hypothesis, conclude that there is insufficient evidence the average warm-up period is equal to 8 minutes.
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This note was uploaded on 03/09/2011 for the course DSCI 3710 taught by Professor Dr.jay during the Spring '08 term at North Texas.

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f98exm1b - COURSE: MSCI 3710 EXAM 1 Version B Fall 1998...

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