4.
4. The histogram below plots the carbon monoxide (CO)
emissions (in pounds/minute) of 40 different airplane models at take-off. ??Which of the following statements is the best inference that can be
drawn from this histogram?
Source
? ?The mean amount of carbon monoxide emissions is greater than the
median amount of carbon monoxide emissions.
? ?The mean amount of carbon monoxide emissions is less than the median
amount of carbon monoxide emissions.
? ?The mean and median amounts of carbon monoxide emissions are
about equal.
The
relative sizes of the mean and median amounts of carbon monoxide emissions
cannot be inferred from the histogram
The relative sizes of the mean and median amounts of carbon
monoxide emissions cannot be
10. A political consultant conducts a survey to determine
what position the mayoral candidate she works for should take on a proposed
smoking ban in restaurants. ??Which of the following survey questions
will deliver an unbiased response?
Source
? ?Should the city ban smoking in restaurants to protect our children
from second-hand smoke?
? ?Should tobacco smoke, a known cause of lung cancer, be banned from
public spaces such as restaurants?
? ?Does the city have the right to restrict recreational
activities, such as moderate consumption of alcohol or tobacco, on the premises
of privately-owned businesses?
?None of the above
13. The histogram below shows the underlying distribution
pattern of the results of a rolled die. Suppose the die is rolled 50 times and
the results are averaged. Suppose this process — rolling 50 dice and averaging
their results — is repeated 100 times. ??Which of
the following best describes the distribution of these 100 averages?
Source
? Skewed
right.
? ?Skewed left.
? ?Normal.
?Uniform.
16.
Preliminary estimates suggest that about 58% of students at
a state university favor implementing an honor code. ??To obtain a
95% confidence interval for the proportion of all students at the
university favoring the honor code, what is the minimum sample size needed if
the total width of the confidence interval must be less than 5 percentage
points (i.e., the confidence interval should extend at most 2.5 percentage
points above and below the sample proportion)?
Source
? ?375.
? ?264.
? ?1,498.
?The answer cannot be determined from the information given.
19.
A filling machine in a brewery is designed to fill bottles
with 355 ml of hard cider. In practice, however, volumes vary slightly from
bottle to bottle. In a sample of 49 bottles, the mean volume of cider is found
to be 354 ml, with a standard deviation of 3.5 ml. ??At a
significance level of 0.01, which conclusion can the brewer draw?
21. The data in the Excel spreadsheet linked below indicate
the selling prices of houses located on corner lots (“corner-lot
houses”) and of houses not located on corner lots. ??Conduct a
one-sided hypothesis test of the claim that corner-lot houses have
higher average selling prices than those located on non-corner lots. Using a
99% confidence level, which of the following statements do the data support?
29.
The data in the Excel spreadsheet linked below give the
seasonally adjusted value of total new car sales (in millions of dollars) in
the United States, total national wage and salary disbursements (referred to
here as “compensation”) (in billions of dollars), and the employment
level in the non-agricultural sector (in thousands) for 44 consecutive
quarters. An auto industry executive wants to know how well she can predict new
car sales two quarters in advance using the current quarter’s compensation
data. ??How
many data points can she use in a regression analysis using the data provided?
32.
The regression analysis below relates the value of new car
sales (in millions of dollars) and the independent variables
“compensation” (in billions of dollars) and “employment level in
the non-agricultural sector” (in thousands) for 44 consecutive quarters.
Compare this multiple regression to the simple regressions with compensation
and employment level as the respective independent variables. ??Which of the following is the likely culprit of the dramatic increase
in the p-value for employment level in the multiple regression?
33.
The regression analysis below relates the value of new car
sales (in millions of dollars) and the independent variables
“compensation” (in billions of dollars) and “employment level in
the non-agricultural sector” (in thousands) for 44 consecutive quarters. ??The coefficient for employment level, 0.21, describes:
36.
In a regression analysis, if a new independent variable is
added and R-squared increases and adjusted R-squared decreases precipitously, what
can be concluded?
Source
? ?The new independent variable improves the predictive power of the
regression model.
? ?The new independent variable does not improve the predictive power of
the regression model.
? ?The regression was performed incorrectly. It is impossible for
R-squared to increase and adjusted R-squared decrease simultaneously.
?The new independent variable’s coefficient is not significant at the
0.01 level.
Electronics manufacturer SE must decide whether or not to
invest in the development of a new type of battery. If the development
succeeds, the market for the battery may be large or small. If it doesn’t
succeed, the development efforts may or may not generate minor innovations that
would offset some of the battery’s development costs. The tree below summarizes
the decision.??The EMV of developing the new battery is $300,000. Based on EMV, SE
should develop the battery. If the manager chooses not to develop the
battery, which of the following best describes the manager’s attitude towards
this decision?
Source
? ?Risk averse.
? ?Risk neutral.
? ?Risk seeking.
?Cowardly.
Electronics manufacturer SE must decide whether or not to
invest in the development of a new type of battery. If the development succeeds,
the market for the battery may be large or small. If it doesn’t succeed, the
development efforts may or may not generate minor innovations that would offset
some of the battery’s development costs. The tree below summarizes the
decision.??The EMV of developing the new battery is $300,000. Based on
EMV, SE should develop the battery. For what values of p = Prob[success] does
developing the battery have a lower EMV than not developing the battery?
Source
? ?p < 25%?
? ?p > 25%?
? ?p < 75%?
?None
of the above
Answer:
43.
Electronics manufacturer SE must decide whether or not to
invest in the development of a new type of battery. If the development
succeeds, the market for the battery may be large or small. If it doesn’t
succeed, the development efforts may or may not generate minor innovations that
would offset some of the battery’s development costs. The tree below summarizes
the decision.??The EMV of developing the new battery is $300,000. Based on
EMV, SE should develop the battery. Given that development is successful, for
what endpoint values for a large market does developing the battery have a
lower EMV than not developing the battery?
Source
? ?Less than $1.2 million.
? ?Greater than $1.2 million.
? ?Greater than $0.75 million.
?None of the above.
Answer:
44.
The manager of the Eris Shoe Company must decide whether or
not to contract a controversial sports celebrity as its spokesperson. The new
spokesperson’s value to Eris depends heavily on consumers’ perception of him.
An initial decision analysis based on available data reveals that the expected
monetary value of contracting the new spokesperson is $260,000. For $50,000
Eris can engage a market research firm that will help Eris learn more about how
consumers might react to the celebrity. The EMV of buying this sample
information (assuming it is free) for this decision is $300,000. ??The tree below summarizes Eris’s decision. Based on EMV
analysis, Eris’s manager should:
Source
? ?Hire the research firm.
? ?Not hire the research firm, but contract the new spokesperson.
? ?Not hire the research firm and not contract the new spokesperson.
?The answer cannot be determined from the information provided.
