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COURSE:
MSCI 3710
Print Name:
EXAM 1
Signature:
Version D
S.S.#:
SEMESTER: Fall 2002
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.
Instructions:
n
Please print your name and social security number on this exam.
Also, put your signature
on this exam.
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On your scantron
PRINT
your name, your version, and your section number.
To better
protect your privacy also print your name on the backside of your scantron.
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You have 50 minutes to complete this exam.
The exam is open book, open notes, and open
mind.
You may use any type of calculator but please show all your work on the exam and
mark all answers on the scantron.
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Many of the questions follow the format of those in Adventures in Business Statistics.
The
remaining questions are either based on the Excel assignment or use an Adventureslike
approach with problems nearly identical to those assigned in the textbook.
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When you have completed the exam, please insert your scantron into the exam booklet and
turn them in to your instructor.
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No cheating.
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Good luck and we wish you well on the exam.
1
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Use the information given below to answer the next 2 questions.
The CEO of Mean Green Cab Company believes there is a difference between the
durability of two brands of tires,
Minus
and
Rub
. The CEO decides to test her belief by
running an experiment.
To conduct the experiment, her R & D department uses a
machine with a metallic device to wear down the tires and records the tread depth on a
random sample of 10 tires of each brand after new tires are spun for an equivalent of
10,000 miles.
Excel
output for the test, on the sample data, conducted at the 5%
significance level is shown in the tables below.
tTest: TwoSample Assuming Equal Variances
Rub
Minus
Mean
0.2415
0.2538
Variance
0.0004
0.0009
Observations
10
10
Pooled Variance
0.0007
Hypothesized Mean
Difference
0
df
18
t Stat
1.0183
P(T<=t) onetail
0.161
t Critical onetail
1.734
P(T<=t) twotail
0.322
t Critical twotail
2.101
1.
To test the claim that there is a difference between the durability of
Rub
and
Minus
brands (μ
R
– μ
M
), which of the following is the critical value of the test statistic at the 5%
level of significance?
A.
1.734
B.
2.101*
C.
1.330
D.
2.113
E.
1.018
2. What are the decision and conclusion for the test, if the test is conducted at the
5%
significance level?
A.
Reject the null hypothesis, conclude there is evidence of a significant difference
between the durability of the
Minus
and
Rub
brands.
B.
Reject the null hypothesis, conclude there is insufficient evidence that there is no
significant difference between the durability of the
Minus
and
Rub
brands.
C.
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