Question 1 (1 point)

A firm's price/earnings ratio is an example of a

Question 1 options:

Ranked or Ordinal variable.

Quantitative or Interval variable.

Category or Dichotomous variable.

Qualitative or Nominal variable.

Question 2 (1 point)

A researcher has collected the following sample data:

3 5 12 3 2.

Based on the above data, the sample standard deviation is

Question 2 options:

13.20

4.062

16.50

8.944

Question 3 (1 point)

Researchers studying the relationship between firm capital intensity and firm profitability found a sample correlation coefficient of 0.716. That implies

Question 3 options:

Firm capital intensity and firm profitability are essentially unrelated to each other.

Firm capital intensity and firm profitability are inversely related to each other.

Firm capital intensity and firm profitability are strongly related to each other.

Firm capital intensity and firm profitability are weakly related to each other.

Question 4 (1 point)

Suppose that beer consumption and religious affiliation are not independent of each other. That means that

Question 4 options:

P(Beer | Religion X) = P(Beer | Religion Y).

Beer consumption is on average the same, regardless of one's religious affiliation.

Members of some religions typically drink more beer than members of other religions.

The correlation between beer consumption and church attendance equals zero.

Question 5 (1 point)

Four percent of the customers of a mortgage company default on their payments. A sample of five customers is selected. What is the probability that exactly two customers in the sample will default on their payment?

Question 5 options:

.9588

.2592

.7408

.0142

Question 6 (1 point)

High School GPA is normally distributed with a mean of 3.06 and a standard deviation of 0.40. The probability of a randomly chosen student having a HS GPA between 3.54 and 3.80 is

Question 6 options:

0.3849

0.4678

0.8527

0.0829

Question 7 (1 point)

A simple random sample of 64 observations was taken from a large population. The sample mean and standard deviation were determined to be 320 and 120 respectively. The standard error of the sample mean is

Question 7 options:

1.875

5

15

40

Question 8 (1 point)

Your survey of 64 college students found that on average, they spend $42 a week on snack food, with a standard deviation of $16. Then your 95% confidence interval for the average snack food spending in the population is

Question 8 options:

$10 to $74.

$26 to $58.

$40 to $44.

$38 to $46.

Question 9 (1 point)

Of the 250 students in a blind taste test, 150 (60%) preferred Milwaukee's Best over Natural Light. Then the 90% confidence interval for the student population proportion preferring Milwaukee's Best is

Question 9 options:

59.7% to 60.3%

59.8% to 60.2%.

56.9% to 63.1%.

54.9% to 65.1%.

Question 10 (1 point)

Based on a study of 380 dorm residents, the 95% confidence interval for average hours slept per weeknight is from 7.2 to 7.8. That can reasonably be interpreted to mean

Question 10 options:

95% of all students sleep between 7.2 and 7.8 hours per weeknight.

361 (95%) of the 380 students sleep between 7.2 and 7.8 hours per weeknight.

We're 95% sure the average hours slept per weeknight by all students is between 7.2 and 7.8.

We're 95% sure the average hours slept per weeknight by the 380 students is between 7.2 and 7.8.

Question 11 (1 point)

Iowa corn typically yields 160 bushels per acre. A new experimental variety, grown on 36 1-acre test plots, yielded 163.5 bushels on average, with a standard deviation of 13.5 bushels. At a 5% significance level, can we conclude that the new variety has a higher yield?

Question 11 options:

We can clain it has a higher yield, but only at the 1% significance level.

Although it may have a higher yield, we really can't claim it does.

No, it clearly has the same yield.

Yes, it clearly has a higher yield.

Question 12 (1 point)

Your contract requires that at least 92% of your circuit boards be defect-free. To certify that you meet this provision, you've tested 80 circuit boards, and found only 2 (2.5%) with defects. At a 5% significance level, can you certify that you meet the provision?

Question 12 options:

I can certify that I meet the provision, but only at a 1% significance level.

I can't really certify that my circuit boards meet the provision.

Yes, I can certify that I meet the provision.

My circuit boards clearly fail to meet the provision.

Question 13 (1 point)

Your friend claims that larch trees and birch trees reach the same average height in your county when fully grown. To test this claim, you randomly sample 31 larch trees and 32 birch trees from your county. The sample means were 61.5 ft (larch) and 59 ft (birch); the sample standard deviations were both 3 ft. At the 5% significance level, can you conclude that there is a difference in height between these two species of trees?

Question 13 options:

I can't really conclude that the average larch is taller.

Yes, I can conclude that the average larch is taller.

No, the average larch is not taller.

I can conclude that the average larch is taller, but only at a 1% significance level.

Question 14 (1 point)

Suppose your friend claims that mature larch trees reach an average height of 60 feet in your county. To test this claim, you randomly sample 31 mature larch trees. The sample average height was 61.5 feet, with a sample standard deviation of 3 feet. What is the null hypothesis?

Question 14 options:

m = 61.5

p = 60

m = 60

m < 61.5

Question 15 (1 point)

15 Business majors and 11 Science majors were randomly selected to test the hypothesis that the average ACT scores of Business and Science majors are the same. The critical t-value has how many degrees of freedom?

Question 15 options:

26

23

25

24

Question 16 (1 point)

When testing the null hypothesis that two proportions are equal, using a one-tailed z-test and a 5% significance level, the critical value (in absolute value) is

Question 16 options:

1.645

2.576

2.326

1.960

Question 17 (1 point)

On the hypothesis that m = 7.8, your t-statistic is -2.75, with 25 degrees of freedom. Then you would

Question 17 options:

Accept that the null hypothesis is false.

Reject the null hypothesis.

Accept that the null hypothesis is true.

Fail to reject the null hypothesis.

Question 18 (1 point)

If you test the (one sample) null hypothesis that the population proportion p ≤ 0.3 and you get the test statistic value of z = -0.98, then using a 5% ignificance level,

Question 18 options:

the alternative hypothesis looks believable.

the null hypothesis looks believable.

the null and alternative hypotheses both look believable.

none of the above.

Question 19 (1 point)

You've estimated the least squares equation Sales = 4000 + .20 Advertising. What does the value of .20 in the equation indicate?

Question 19 options:

For each extra dollar of spent on advertising, sales will rise by 20 cents.

20% of sales would occur even if there were no advertising.

20% os sales are due to advertising.

For each extra dollar of sales, 20 cents will be spent on advertising.

Question 20 (1 point)

Suppose you are given the following estimated regression equation: Debt Ratio = 4000 + .20 Cash Flow. If the t-stat for the slope estimate is 3.25, what can you conclude?

Question 20 options:

That cash flow quite possibly has no impact on debt.

That only cash flow above 3.25 impacts debt.

That cash flow clearly increases debt.

That cash flow definitely has no impact on debt.

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