Professional Documents
Culture Documents
Naa Ni Siyay Tables
Naa Ni Siyay Tables
Naa Ni Siyay Tables
1) A company that sells annuities must base the annual payout on the
probability distribution of the length of life of the participants in the plan.
Suppose the probability distribution of the lifetimes of the participants is a
normal distribution with a mean of 68 years and a standard deviation of 3.5
years.
What proportion of the plan recipients would receive payments
beyond age 75?
Answer:
2) A company that sells annuities must base the annual payout on the
probability distribution of the length of life of the participants in the plan.
Suppose the probability distribution of the lifetimes of the participants is a
normal distribution with a mean of 68 years and a standard deviation of 3.5
years.
What proportion of the plan recipients die before they reach the
standard retirement age of 65?
Answer:
3) A company that sells annuities must base the annual payout on the
probability distribution of the length of life of the participants in the plan.
Suppose the probability distribution of the lifetimes of the participants is a
normal distribution with a mean of 68 years and a standard deviation of 3.5
years.
Find the age at which payments have ceased for approximately 86%
of the plan participants.
Answer:
X 0 1 2 3 4 5
P(X) 0.10 0.20 0.45 0.15 0.05 0.05
67) A survey of banks revealed the following distribution for the interest rate
being charged on a home loan (based on a 30-year mortgage with a 10%
down payment).
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to
educate the public about the harm caused by drunk drivers. A study was
recently done that emphasized the problem we all face with drinking and
driving. Four hundred accidents that occurred on a Saturday night were
analyzed. Two items noted were the number of vehicles involved and
whether alcohol played a role in the accident. The numbers are shown
below:
68) Referring to Table 4-1, what proportion of accidents involved more than
one vehicle?
A) 50/400 or 12.5%
B) 75/400 or 18.75%
C) 275/400 or 68.75%
D) 325/400 or 81.25%
Answer: D
Difficulty: Easy
Keywords: contingency table, empirical classical probability, addition rule
69) Referring to Table 4-1, what proportion of accidents involved alcohol and
a single vehicle?
A) 25/400 or 6.25%
B) 50/400 or 12.5%
C) 195/400 or 48.75%
D) 245/400 or 61.25%
Answer: B
Difficulty: Easy
Keywords: contingency table, empirical classical probability, joint probability
71) Referring to Table 4-1, given alcohol was involved, what proportion of
accidents involved a single vehicle?
A) 50/75 or 66.67%
B) 50/170 or 29.41%
C) 120/170 or 70.59%
D) 120/400 or 30%
Answer: B
Difficulty: Easy
Keywords: contingency table, empirical classical probability, marginal
probability
72) Referring to Table 4-1, given that multiple vehicles were involved, what
proportion of accidents involved alcohol?
A) 120/170 or 70.59%
B) 120/230 or 52.17%
C) 120/325 or 36.92%
D) 120/400 or 30%
Answer: C
Difficulty: Easy
Keywords: contingency table, empirical classical probability, conditional
probability, addition rule
73) A new model car from Ford Motor Company offers a keyless entry
system that utilizes a four-letter code. How many different possible
combinations are there for the code?
Answer: 456,976
Difficulty: Easy
Keywords: counting rule
74) There are 10 finalists at a national dog show. How many different orders
of finishing can there be for all the 10 finalists?
Answer: 3,628,800
Difficulty: Easy
Keywords: counting rule, permutation
75) There are only 4 empty rooms available in a student dormitory for
eleven new freshmen. Each room is considered unique so that it matters
who is being assigned to which room. How many different ways can those 4
empty rooms be filled, one student per room?
Answer: 7,920
Difficulty: Easy
Keywords: counting rule, permutation
TABLE 5-4
The following table contains the probability distribution for X = the number
of traffic accidents reported in a day in Corvallis, Oregon.
X 0 1 2 3 4 5
P(X) 0.10 0.20 0.45 0.15 0.05 0.05
78) Referring to Table 5-4, the mean or expected value of the number of
accidents is ________.
Answer: 2.0
Difficulty: Easy
Keywords: probability distribution, mean
REGRESSION ANALYSIS 3/21/2014 4:16:00 AM
A large national bank charges local companies for using their services. A
bank official reported the results of a regression analysis designed to predict
the bank's charges (Y)—measured in dollars per month—for services
rendered to local companies. One independent variable used to predict
service charges to a company is the company's sales revenue (X)—
measured in millions of dollars. Data for 21 companies who use the bank's
services were used to fit the model:
Yi = β0 + β1Xi + εi
TABLE 13-2
10) Referring to Table 13-2, what is the estimated mean change in the sales
of the candy bar if price goes up by $1.00?
A) 161.386
B) 0.784
C) -3.810
D) -48.193
Answer: D
Difficulty: Moderate
Keywords: slope, interpretation
11) Referring to Table 13-2, what is the coefficient of correlation for these
data?
A) -0.8854
B) -0.7839
C) 0.7839
D) 0.8854
Answer: A
Difficulty: Moderate
Keywords: coefficient of correlation, estimation
12) Referring to Table 13-2, what is the percentage of the total variation in
candy bar sales explained by the regression model?
A) 100%
B) 88.54%
C) 78.39%
D) 48.19%
Answer: C
Difficulty: Moderate
Keywords: coefficient of determination, interpretation
13) Referring to Table 13-2, what percentage of the total variation in candy
bar sales is explained by prices?
A) 100%
B) 88.54%
C) 78.39%
D) 48.19%
Answer: C
Difficulty: Moderate
Keywords: coefficient of determination, interpretation
14) Referring to Table 13-2, what is the standard error of the estimate, SYX,
for the data?
A) 0.784
B) 0.885
C) 12.650
D) 16.299
Answer: D
Difficulty: Moderate
Keywords: standard error of estimate, estimation
15) Referring to Table 13-2, what is the standard error of the regression
slope estimate, ?
A) 0.784
B) 0.885
C) 12.650
D) 16.299
Answer: C
Difficulty: Moderate
Keywords: standard error, slope
A) 0
B) 1.66
C) 2.54
D) 25.66
Answer: B
Difficulty: Moderate
Keywords: sum of squares
17) Referring to Table 13-2, to test that the regression coefficient, β1, is not
equal to 0, what would be the critical values? Use α = 0.05.
A) ±2.5706
B) ±2.7764
C) ±3.1634
D) ±3.4954
Answer: B
Difficulty: Difficult
Keywords: t test on slope, critical value
18) Referring to Table 13-2, to test whether a change in price will have any
impact on sales, what would be the critical values? Use α = 0.05.
A) ±2.5706
B) ±2.7765
C) ±3.1634
D) ±3.4954
Answer: B
Difficulty: Difficult
Keywords: t test on slope, critical value
19) Referring to Table 13-2, if the price of the candy bar is set at $2, the
estimated mean sales will be
A) 30.
B) 65.
C) 90.
D) 100.
Answer: B
Difficulty: Moderate
Keywords: estimation of mean values
20) Referring to Table 13-2, if the price of the candy bar is set at $2, the
predicted sales will be
A) 30.
B) 65.
C) 90.
D) 100.
Answer: B
Difficulty: Moderate
Keywords: prediction of individual values
dard error of estimate, interpretation
EXTRA CREDIT:
Chapter 14 Introduction to Multiple Regression
TABLE 14-10
21) You worked as an intern at We Always Win Car Insurance Company last
summer. You notice that individual car insurance premiums depend very
much on the age of the individual and the number of traffic tickets received
by the individual. You performed a regression analysis in EXCEL and
obtained the following partial information:
26) Referring to Table 14-10, the 99% confidence interval for the change in
mean insurance premiums of a person who has become 1 year older (i.e.,
the slope coefficient for AGE) is -1.4061 ± ________.
Answer: 7.9382
Difficulty: Moderate
Keywords: slope, interpretation, confidence interval
27) Referring to Table 14-10, the total degrees of freedom that are missing
in the ANOVA table should be ________.
Answer: 14
Difficulty: Easy
Keywords: degrees of freedom
28) Referring to Table 14-10, the regression sum of squares that is missing
in the ANOVA table should be ________.
Answer: 1,670,569.3000
Difficulty: Easy
Keywords: sum of squares
29) Referring to Table 14-10, the residual mean squares (MSE) that are
missing in the ANOVA table should be ________.
Answer: 51,415.6517
Difficulty: Easy
Keywords: mean squares
What is the correct interpretation for the estimated coefficient for GENDER?
A) Holding the effect of the other independent variables constant, mean
personal consumption for females is estimated to be $0.39 higher than
males.
B) Holding the effect of the other independent variables constant, mean
personal consumption for males is estimated to be $0.39 higher than
females.
C) Holding the effect of the other independent variables constant, mean
personal consumption for females is estimated to be 0.39% higher than
males.
D) Holding the effect of the other independent variables constant, mean
personal consumption for males is estimated to be 0.39% higher than
females.
Answer: A
Difficulty: Easy
Keywords: dummy variable, slope, interpretation
TABLE 14-15
38) Referring to Table 14-15, predict the percentage of students passing the
proficiency test for a school which has a mean teacher salary of 40,000
dollars, and an instructional spending per pupil of 2,000 dollars.
Answer: 39.5127 (%)
Difficulty: Easy
Keywords: prediction of individual values