f98exm1d - COURSE: MSCI 3710 EXAM 1 Version D Fall 1998...

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COURSE: MSCI 3710 Print Name: EXAM 1 Signature: Version D 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 below to answer the next two questions. The production manager in a chemical plant knows that the time for a certain product line to
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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? 1. 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. D. Reject the null hypothesis, conclude that there is evidence the average warm-up period is not equal to 8 minutes. E. There is insufficient information given to decide whether the average warm-up period is equal to 8 minutes or not. 2. The significance level of the hypothesis test in question # 1 refers to A. The probability of claiming the average warm-up period is not equal to 8 minutes when in fact it is not . B. Twice the probability of claiming the average warm-up period is equal to 8 minutes when in fact it is. C. The probability of claiming the average warm-up period is equal to 8 minutes when in fact it is not . D. The probability of claiming the average warm-up period is equal to 8 minutes when in fact it is. E. The probability of claiming the average warm-up period is not equal to 8 minutes when in fact it is. Use the information given in the following paragraph to answer the next three questions. A manager of BigTex Burgers franchises claims that their restaurants incur annual utility expenses of at most $25,000 per store. A potential investor who is considering purchasing a BigTex franchise is doubtful about this claim, believing the average annual utility expenses to be more than $25,000. She obtains a sample of revenues from 15 restaurants and conducts a statistical analysis on the data using Excel, the results of which are shown below. Utility Expenses
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f98exm1d - COURSE: MSCI 3710 EXAM 1 Version D Fall 1998...

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