Unformatted text preview: ance level of .10, the management wants to perform a hypothesis test to
determine if the quality of the items produced appears to be independent of the production
process used. Based on the results summarized in the MegaStat/Excel output provided in the
table above, we:
A. Reject H0 and conclude that the quality of the product is not the same for all processes.
B. Reject H0 and conclude that the quality of the product is dependent on the manufacturing
process.
C. Failed to reject H0 and conclude that the quality of the product does not significantly differ
among the three processes.
D. Reject H0 and conclude that the quality of the product is independent of the production
process utilized.
E. Both A and B are correct. AACSB: Reflective Thinking
Bloom's: Analysis
Difficulty: Hard
Learning Objective: 3
Topic: ChiSquare 11089 Chapter 01  An Introduction to Business Statistics 38. A real estate company is analyzing the selling prices of residential homes in a given
community. 140 homes that have been solved in the past month are randomly selected and
their selling prices are recorded. The statistician working on the project has stated that in
order to perform various statistical tests, the data must be distributed according to normal
distribution. In order to determine whether the selling prices of homes included in the random
sample are normally distributed, the data is divided into 6 classes of equal size and the
number of observations in each class is recorded. The chisquare goodness of fit test for
normal distribution is performed and the results are summarized in the following table: What is the appropriate null hypothesis?
A. H0: The residential home selling prices are distributed according to normal distribution.
B. H0: The residential home selling prices are not distributed according to normal distribution.
C. H0: The distribution of residential home selling prices is either right or left skewed.
D. H0: The distribution of the residential home selling prices is symmetric.
E. None of the above is correct. AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 2
Topic: ChiSquare 11090 Chapter 01  An Introduction to Business Statistics 39. A real estate company is analyzing the selling prices of residential homes in a given
community. 140 homes that have been solved in the past month are randomly selected and
their selling prices are recorded. The statistician working on the project has stated that in
order to perform various statistical tests, the data must be distributed according to normal
distribution. In order to determine whether the selling prices of homes included in the random
sample are normally distributed, the data is divided into 6 classes of equal size and the
number of observations in each class is recorded. The chisquare goodness of fit test for
normal distribution is performed and the results are summarized in the following table: What are the degrees of freedom for the chisquare test?
A. 2
B. 3
C. 4
D. 5
E. 6 AACSB: Analytic
Bloom's: Application
Difficulty: Medium
Learning Objective: 2
Topic: ChiSquare 11091 Chapter 01  An Introduction to Business Statistics 40. A real estate company is analyzing the selling prices of residential homes in a given
community. 140 homes that have been solved in the past month are randomly selected and
their selling prices are recorded. The statistician working on the project has stated that in
order to perform various statistical tests, the data must be distributed according to normal
distribution. In order to determine whether the selling prices of homes included in the random
sample are normally distributed, the data is divided into 6 classes of equal size and the
number of observations in each class is recorded. The chisquare goodness of fit test for
normal distribution is performed and the results are summarized in the following table: At a significance level of .05, what is the appropriate rejection point condition?
A. Reject H0 if χ2 > 12.5916
B. Reject H0 if χ2 > 11.0705
C. Reject H0 if χ2 > 9.3484
D. Reject H0 if χ2 > 7.81473
E. Reject H0 if χ2 > 9.48773 AACSB: Analytic
Bloom's: Application
Difficulty: Hard
Learning Objective: 2
Topic: ChiSquare 11092 Chapter 01  An Introduction to Business Statistics 41. A real estate company is analyzing the selling prices of residential homes in a given
community. 140 homes that have been solved in the past month are randomly selected and
their selling prices are recorded. The statistician working on the project has stated that in
order to perform various statistical tests, the data must be distributed according to normal
distribution. In order to determine whether the selling prices of homes included in the random
sample are normally distributed, the data is divided into 6 classes of equal size and the
number of observations in each class is recorded. The chisquare goodness of fit test for
normal distribution is performed and the results are summarized in the following table:...
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 Winter '14
 Frequency, Frequency distribution, Histogram, AACSB, Statistical charts and diagrams

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