International Seas

Inference
1. Sample median as an estimator of the population mean is always
Unbiased
Efficient
Sufficient
None of These
2. Power of test is related to:
Type-I Error
Type-II Error
Type-I and Type-II Error Both
None of the Above
3. Roa-Blackwell Theorem enables us to obtain minimum variance unbiased estimator through:
Unbiased Estimators
Complete Statistics
Efficient Statistics
Sufficient Statistics
4. To test the randomness of a sample, the appropriate test is:
Run Test
Sign Test
Median Test
Page’s Test
5. Equality of several normal population means can be tested by:
Bartlett’s Test
F-test
χ2χ2-test
t-test
6. With a lower significance level, the probability of rejecting a null hypothesis that is actually true:
Decreases
Remains the Same
Increases
All of the Above
7. Parameters are those constants which occur in:
Samples
Probability Density Functions
A Formula
None of these
8. Crammer-Rao inequality is valid in case of:
Upper Bound on the Variance
Lower Bound on the Variance
The Asymptotic Variance of an Estimator
None of these
9. An estimator TnTn is said to be a sufficient statistic for a parameter function τ(θ)τ(θ) if it contained
all the information which is contained in the
Population
Parametric Function τ(θ)τ(θ)
Sample
None of these
10. The sign test assumes that the:
Samples are Independent
Samples are Dependent
Samples have the Same Mean
None of These
11. For an estimator to be consistent, the unbiasedness of the estimator is:
Necessary
Sufficient
Neither Necessary nor Sufficient
None of these
12. Homogeneity of several variances can be tested by:
Bartlett’s Test
Fisher’s Exact Test
F-test
t-test
13. The set of equations obtained in the process of least square estimation are called:
Normal Equations
Intrinsic Equations
Simultaneous Equations
All of the Above

14. By the method of moments one can estimate:
a) All Constants of a Population

b) Only Mean and Variance of a Distribution
c) All Moments of a Population Distribution
d) All of the Above
15. Most of the Non-Parametric methods utilize measurements on:
a) Interval Scale
b) Ratio Scale
c) Ordinal Scale
d) Nominal Scale
16. When the null hypothesis is accepted, it is possible that:
A correct Decision has been Made
A Type-II Error has been Made
Both (A) and (B) have Occurred
Neither (A) nor (B) has Occurred
17. If the sample average x¯¯¯x¯ is an estimate of the population mean μμ, then x¯¯¯x¯ is:
Unbiased and Efficient
Unbiased and Inefficient
Biased and Efficient
Biased and Inefficient
18. For a particular hypothesis test, α=0.05α=0.05, and β=0.10β=0.10. The power of this test is:
0.15
0.90
0.85
0.95
1. Which of the following statements is not correct?

a. When an interval estimate is associated with a degree of confidence that it actually includes the
population parameter of interest, it is referred to as a confidence interval
b. If the population mean and population standard deviation are both known, one can make probability
statements about individual x values taken from the population
c. If the population mean and population standard deviation are both known, one can use the central
limit theorem and make probability statements about the means of samples taken from the population
d. If the population mean is unknown, one can use sample data as the basis from which to make
probability statements about the true (but unknown) value of the population mean
e. when sample data are used for estimating a population mean, sampling error will not be present
since the observed sample statistic will not differ from the actual value of the population parameter
Answer: E
2. Inferential statistics is the:
a. process of using a population parameter to estimate the values for sample statistics
b. process of using sample statistics to estimate population parameters
c. process which allows the researcher to determine the exact values for population parameters
d. process that eliminates the problem of sampling error
3. Which of the following statements are correct?
a. a point estimate is an estimate of the range of a population parameter
b. a point estimate is an unbiased estimator if its standard deviation is the same as the actual value of
the population standard deviation
c. a point estimate is a single value estimate of the value of a population parameter
d. all of the above statements are correct
e. none of the above statements are correct Answer: C
4. A point estimator is defined as:
a. the average of the sample values
b. the average of the population values
c. a single value that is the best estimate of an unknown population parameter
d. a single value that is the best estimate of an unknown sample statistic
e. a number which can be used to estimate a point in time which is unknown Answer: C
5. Which of the following statements is/are correct?
a. an interval estimate is an estimate of the range of possible values for a population parameter
b. an interval estimate describes a range of values that is likely not to include the actual population
parameter
c. an interval estimate is an estimate of the range for a sample statistic
d. all of the statements above are correct
e. none of the statements above are correct Answer: A
6. A confidence interval is defined as:
stimate plus or minus a specific level of confidence
b. a lower and upper confidence limit associated with a specific level of confidence
c. an interval that has a 95% probability of containing the population parameter
d. a lower and upper confidence limit that has a 95% probability of containing the population
parameter
e. an interval used to infer something about an unknown sample statistic value Answer: B
7. The term 1 – α refers to the:
a. probability that a confidence interval does not contain the population parameter
b. the level of confidence minus one
c. the level of confidence
d. the level of confidence plus one
e. the level of significance Answer: C
8. A 95% confidence interval for the population mean is calculated to be 75.29 to 81.45. If the
confidence level is reduced to 90%, the confidence interval will:
a. become narrower
b. remain the same
c. become wider
d. double in size
e. most likely no longer include the true value of the population mean Answer: A
9. A 95% confidence interval for the population mean is calculated to be 75.29 to 81.45. If the
confidence level is increased to 98%, the confidence interval will:
a. become narrower
b. remain the same
c. become wider
d. double in size
e. most likely no longer include the true value of the population mean Answer: C
10. In the formula for the confidence interval, zα/2 is part of the formula. What does the subscript α/2
refer to?
a. the level of confidence
b. the level of significance
c. the probability that the confidence interval will contain the population mean
d. the probability that the confidence interval will not contain the population mean
e. the area in the lower tail or upper tail of the sampling distribution of the sample mean Answer: E
11. Which of the statements below completes the following statement correctly? The larger the level of
confidence used in constructing a confidence interval estimate of the population mean, the:
a. smaller the probability that the confidence interval will contain the population mean
b. the smaller the value of zα/2
c. the narrower the confidence interval
d. the wider the confidence interval
e. the more the width of the confidence interval remains the same Answer: D
12. Which one of the statements below is correct?
a. If n, the sample size, increases, the confidence interval becomes wider
b. A 90% confidence interval for the population mean is narrower than a 95% confidence interval for the
population mean
c. As the population standard deviation increases, the confidence interval becomes narrower
13. The boundaries of a confidence interval are called:
a. Confidence levels
b. The test statistics
c. The degrees of confidence
d. The confidence limits
e. Significance levels Answer: D
14. What value of z would you use to calculate the 80% confidence interval for a population mean, given
that you know the population standard deviation, the sample size and the sample mean of your sample?
a. z = 1.96
b. z = 2.58
c. z = 0.84
d. z = 1.28
e. z = 1.645 Answer: D
15. Which of the following statements is false with regards to the width of a confidence interval?
a. The sample mean from which the interval is constructed is located half way between the boundaries
of the confidence interval
b. The width of the interval increases when the sample size is decreased
c. The width of the interval decreases when the significance level is increased
d. The width of the interval decreases when the sample mean is decreased
e. The width of the interval increases when the confidence level is increased Answer:D
16. After constructing a confidence interval estimate for a population mean, you believe that the
interval is useless because it is too wide. In order to correct this problem, you need to:
a. Increase the population standard deviation
b. Increase the sample size
c. Increase the level of confidence
d. Increase the sample mean
e. Decrease the sample size Answer: B
17. The problem with relying on a point estimate of a population parameter is that the point estimate
a. has no variance
b. might be unbiased
c. might not be relatively efficient
d. does not tell us how close or far the point estimate might be from the parameter
e. may not be consistent Answer: D
18. A federal auditor for nationally chartered banks from a random sample of 100 accounts found that
the average demand deposit balance at the First National Bank of a small town was R549.82. If the
auditor needed a point estimate for the population mean for all accounts at this bank, what would she
use?
a. The average of R549.82 for this sample.

b. The average of R54.98 for this sample.
c. There is no acceptable value available.
d. She would survey the total of all accounts and determine the mean.
e. The mean would be impossible to calculate without further information Answer: A
19. which one of the statements below is correct?
a. If the significance level is equal to 0.1, it implies that we are 10% confident that the population mean
will lie between the confidence limits
b. If the sample size increases the confidence interval becomes wider
c. As the population standard deviation increases, the confidence interval becomes narrower
d. A 90% confidence interval for the population mean is narrower than a 95% confidence interval for the
population mean
e. Increasing the significance level increases the width of the confidence interval Answer: D
20. Sand is packed into bags which are then weighed on scales. It is known that if full bags of sand are
intended to weigh μ kg, then the weight recorded by the scales will be normally distributed with a mean
μ kg and a standard deviation of 0.36kg. A particular bag of sand was weighed four times and the weight
recorded each time was different. The sample mean weight was recorded as 34.7kg. What is a 95%
confidence interval for the true weight of the full bag of sand?
a. 34.35 to 35.05kg
b. 35.85 to 36.55kg
c. 34.21 to 35.19kg
d. 34.48 to 34.92kg
e. 37.75 to 38.45kg Answer: A
a. 34.35 to 35.05kg
b. 35.85 to 36.55kg
c. 34.21 to 35.19kg
d. 34.48 to 34.92kg
e. 37.75 to 38.45kg Answer: B

a. 34.35 to 35.05kg
b. 35.85 to 36.55kg
c. 34.21 to 35.19kg Answer:C
μ kg and a standard deviation of 0.36kg. A particular bag of sand was weighed ten times and the weight
a. 34.35 to 35.05kg
b. 35.85 to 36.55kg
c. 34.21 to 35.19kg
d. 34.48 to 34.92kg
e. 37.75 to 38.45kg Answer: D
a. 34.35 to 35.05kg
b. 35.85 to 36.55kg
c. 34.21 to 35.19kg
d. 34.48 to 34.92kg
e. 37.75 to 38.45kg Answer: E
25. An analyst is conducting a hypothesis test to determine if the mean time spent on investment
research by portfolio managers is different from 3 hours per day. The test uses a random sample of 64
portfolio managers, where the sample mean time spent on research is found to be 2.5 hours.
n standard deviation is 1.5 hours. What is the 99% confidence interval for the population mean time
spent on investment research by portfolio managers?
a. (2.02, 2.98)
b. (2.22, 3.18)
c. (1.86, 3.14)
d. (2.11, 2.89)
e. (1.82, 2.78) Answer: A
portfolio managers, where the sample mean time spent on research is found to be 2.7 hours. The
population standard deviation is 1.5 hours. What is the 99% confidence interval for the population mean
time spent on investment research by portfolio managers?
a. (2.02, 2.98)
b. (2.22, 3.18)
c. (1.86, 3.14)
d. (2.11, 2.89)
e. (1.82, 2.78) Answer: B
population standard deviation is 2 hours. What is the 99% confidence interval for the population mean
a. (2.02, 2.98)
b. (2.22, 3.18)
c. (1.86, 3.14)
d. (2.11, 2.89)
a. (2.02, 2.98)
b. (2.22, 3.18)
c. (1.86, 3.14)
d. (2.11, 2.89)
e. (1.82, 2.78) Answer: D

a. (2.02, 2.98)
b. (2.22, 3.18)
c. (1.86, 3.14)
d. (2.11, 2.89)
e. (1.82, 2.78) Answer: E
30. A researcher wants to investigate the amount of lead per litre of waste water produced by her
company. She plans to use statistical methods to estimate the population mean of lead content per litre
of water. Based on previous recordings she assumes that the lead content is normally distributed with a
standard deviation of 20mg per litre. She decides that she can afford a sample size of 500, but not
larger, and with this sample finds a sample mean of 632mg of lead per litre. e interval for the mean lead
content per litre of waste water produced by her company then is:
a. (630.25, 633.75)
b. (639.25, 642.75)
c. (629.81, 634.19)
d. (630.04, 633.96)
e. (630.69, 633.31) Answer: A
larger, and with this sample finds a sample mean of 641mg of lead per litre. The 95% confidence interval
for the mean lead content per litre of waste water produced by her company then is:
a. (630.25, 633.75)
b. (639.25, 642.75)
c. (629.81, 634.19)
d. (630.04, 633.96)
e. (630.69, 633.31) Answer: B
a. (630.25, 633.75)
b. (639.25, 642.75)
c. (629.81, 634.19)
d. (630.04, 633.96)
e. (630.69, 633.31) Answer: C
a. (630.25, 633.75)
b. (639.25, 642.75)
c. (629.81, 634.19)
d. (630.04, 633.96)
e. (630.69, 633.31) Answer: D
a. (630.25, 633.75)
b. (639.25, 642.75)
c. (629.81, 634.19)
d. (630.04, 633.96)
e. (630.69, 633.31)
35. Suppose that a random sample of 50 bottles of a particular brand of cough medicine is selected and
the alcohol content of each bottle measured. The sample mean alcohol content is 8.6 ml with a
population standard deviation of 2.88ml. Calculate a 99% confidence interval for the true mean alcohol
content for the population of all bottles of the brand under study.
a. (7.55, 9.65)
b. (8.15, 10.25)
c. (7.49, 9.71)
d. (7.43, 9.77)
e. (7.68, 9.52) Answer: A
a. (7.55, 9.65)
b. (8.15, 10.25)
c. (7.49, 9.71)
d. (7.43, 9.77)
e. (7.68, 9.52) Answer: B
a. (7.55, 9.65)
b. (8.15, 10.25)
c. (7.49, 9.71)
d. (7.43, 9.77)
e. (7.68, 9.52) Answer: C
a. (7.55, 9.65)
b. (8.15, 10.25)
c. (7.49, 9.71)
d. (7.43, 9.77)
e. (7.68, 9.52) Answer: D
a. (7.55, 9.65)
b. (8.15, 10.25)
c. (7.49, 9.71)
d. (7.43, 9.77)
e. (7.68, 9.52) Answer: E
40. Your statistics lecturer wants you to determine a confidence interval estimate for the mean test
mark for the next test. In the past, the test marks have been normally distributed with a population
standard deviation of 30.9. A 95% confidence interval estimate if your class has 30 students and a
sample mean mark of 74.2 is:
a. 63.14 to 85.26
b. 65.18 to 83.22
c. 65.63 to 82.77
d. 64.14 to 84.26
e. 68.14 to 80.26 Answer: A
a. 63.14 to 85.26
b. 65.18 to 83.22
c. 65.63 to 82.77
d. 64.14 to 84.26
e. 68.14 to 80.26 Answer: B
a. 63.14 to 85.26
b. 65.18 to 83.22
c. 65.63 to 82.77
d. 64.14 to 84.26
e. 68.14 to 80.26 Answer: C
a. 63.14 to 85.26
b. 65.18 to 83.22
c. 65.63 to 82.77
d. 64.14 to 84.26
e. 68.14 to 80.26 Answer: D
standard deviation of 30.9. A 95% confidence interval estimate if your class has 100 students is and a
sample mean mark of 74.2:
a. 63.14 to 85.26
b. 65.18 to 83.22
c. 65.63 to 82.77
d. 64.14 to 84.26
e. 68.14 to 80.26 Answer: E
45. An economist is interested in studying the monthly incomes of consumers in a particular region. The
population standard deviation of monthly income is known to be R1000. A random sample of 50
individuals resulted in an average monthly income of R15000. What is the upper end point in a 99%
confidence interval for the average monthly income in this region?
a. R15364
b. R15328
c. R15347
d. R15382
e. R15332 Answer: A
a. R15364
b. R15328
c. R15347
d. R15382
e. R15332 Answer: B
a. R15364
b. R15328
c. R15347
d. R15382
e. R15332 Answer: C
a. R15364
b. R15328
c. R15347
d. R15382
e. R15332 Answer: D
a. R15364
b. R15328
c. R15347
d. R15382
e. R15332 Answer: E
50. On the basis of a random sample of 100 men from a particular province in South Africa, a 95%
confidence interval for the mean height of men in the province is found to be (177.22 cm ; 179.18 cm).
What is the value of the sample mean for this sample?
a. 178.20cm
b. 179.24cm
c. 177.38cm
d. 178.42cm
e. 176.58cm Answer: A
a. 178.20cm
b. 179.24cm
c. 177.38cm
d. 178.42cm
e. 176.58cm Answer: B
a. 178.20cm
b. 179.24cm
c. 177.38cm
d. 178.42cm
e. 176.58cm Answer: C
a. 178.20cm
b. 179.24cm
c. 177.38cm
d. 178.42cm
e. 176.58cm Answer: D
a. 178.20cm
b. 179.24cm
c. 177.38cm
d. 178.42cm
e. 176.58cm Answer: E
What is the value of the standard deviation of the population from which this sample was drawn?
a. 5.0
b. 3.6
c. 4.5
d. 2.7
e. 3.4 Answer: A
a. 5.0
b. 3.6
c. 4.5
d. 2.7
e. 3.4 Answer: B
confidence interval for the mean height of men in the province is found to be (176.50 cm ; 178.26cm).
a. 5.0
b. 3.6
c. 4.5
d. 2.7
e. 3.4 Answer: C
a. 5.0
b. 3.6
c. 4.5
d. 2.7
e. 3.4 Answer: D
a. 5.0
b. 3.6
c. 4.5
d. 2.7
e. 3.4 Answer: E
60. In developing a 95% confidence interval estimate for a population mean, the interval estimate was
(62.84; 69.46). What was the sample mean?
a. 66.15
b. 65.83
c. 65.35
d. 67.01
e. 66.87 Answer: A
a. 66.15
b. 65.83
c. 65.35
d. 67.01
e. 66.87 Answer: B
a. 66.15
b. 65.83
c. 65.35
d. 67.01
e. 66.87 Answer: C
a. 66.15
b. 65.83
c. 65.35
d. 67.01
e. 66.87 Answer: D
a. 66.15
b. 65.83
c. 65.35
d. 67.01
e. 66.87 Answer: E
(62.84; 69.46). Given a sample size of 100, what was the population standard deviation?
a. 16.89
b. 11.68
c. 16.33
d. 11.35
e. 7.86 Answer: A
a. 16.89
b. 11.68
c. 16.33
d. 11.35
e. 7.86 Answer: B
a. 16.89
b. 11.68
c. 16.33
d. 11.35
e. 7.86 Answer: C
a. 16.89
b. 11.68
c. 16.33
d. 11.35
e. 7.86 Answer: D
a. 16.89
b. 11.68
c. 16.33
d. 11.35
e. 7.86 Answer: E
70. In developing an interval estimate for a population mean, the population standard deviation was
assumed to be 10. The interval estimate was 50.92 ± 2.14. Had the population standard deviation been
20, what would the interval estimate be?
a. 60.92 ± 2.14
b. 50.92 ± 12.14
c. 101.84 ± 4.28
d. 101.94 ± 12.14
e. 50.92 ± 4.28 Answer: E
71. In developing an interval estimate for a population mean, the population standard deviation was
assumed to be 5. The interval estimate was 50.92 ± 2.80. Had the population standard deviation been
10, what would the interval estimate be?
a. 60.92 ± 2.14
b. 50.92 ± 5.60
c. 101.84 ± 4.28
d. 101.94 ± 12.14
e. 50.92 ± 4.28 Answer: B
72. In developing a confidence interval for a population mean, a sample of 50 observations was used.
The confidence interval was 19.76 ± 1.32. Had the sample size been 200 instead of 50, what would the
interval estimate have been?
a. 19.76 ± 0.66
b. 19.76 ± 0.33
c. 19.76 ± 2.64
d. 19.76 ± 5.28
e. 39.52 ± 1.32 Answer: A
73. A student conducted a study and reported that the 95% confidence interval for the population mean
was (46; 54). He was sure that the population standard deviation was 16. What was the sample size
(rounded up to the nearest whole number) used to calculate this confidence interval?
a. 62
b. 97
c. 110
d. 30
e. 40 Answer: A
a. 62
b. 97
c. 110
d. 30
e. 40 Answer: B
a. 62
b. 97
c. 110
d. 30
e. 40 Answer: C
a. 62
b. 97
c. 110
d. 30
e. 40 Answer: D
a. 62
b. 97
c. 110
d. 30
e. 40 Answer: E
recorded each time was different. The sample mean weight was recorded as 34.7kg. What is the total
width of a 95% confidence interval for the true weight of the full bag of sand?
a. 0.71kg
b. 0.36kg
c. 0.98kg
d. 0.45kg
e. 0.90kg Answer: A
a. 0.71kg
b. 0.36kg
c. 0.98kg
d. 0.45kg
e. 0.90kg Answer: A
a. 0.71kg
b. 0.36kg
c. 0.98kg
d. 0.45kg
e. 0.90kg Answer: C
μ kg and a standard deviation of 0.36kg. A particular bag of sand was weighed ten times and the weight
a. 0.71kg
b. 0.36kg
c. 0.98kg
d. 0.45kg
e. 0.90kg Answer: D
a. 0.71kg
b. 0.36kg
c. 0.98kg
d. 0.45kg
e. 0.90kg Answer: A
population standard deviation is 1.5 hours. What is the half-width (from the middle of the confidence
interval to either of the confidence limits) of the 99% confidence interval for the population mean time
a. 0.48
b. 0.96
c. 0.64
d. 0.39
e. 0.78 Answer: A
a. 0.48
b. 0.96
c. 0.64
d. 0.39
e. 0.78 Answer: A
population standard deviation is 2 hours. What is the half-width (from the middle of the confidence
a. 0.48
b. 0.96
c. 0.64
d. 0.39
e. 0.78 Answer: C
a. 0.48
b. 0.96
c. 0.64
d. 0.39
e. 0.78 Answer: D
a. 0.48
b. 0.96
c. 0.64
d. 0.39
e. 0.78 Answer: A
88. A random variable, X, follows a normal distribution with a population standard deviation of 12. A
sample of size 64 is selected from this population and the sample mean calculated as 45.23. What is the
total width of a 90% confidence interval for the true population mean in this case?
a. 4.9
b. 6.6
c. 3.9
d. 3.3
e. 5.6 Answer: A
a. 4.9
b. 6.6
c. 3.9
d. 3.3
e. 5.6 Answer: B
sample of size 100 is selected from this population and the sample mean calculated as 45.23. What is
the total width of a 90% confidence interval for the true population mean in this case?
a. 4.9
b. 6.6
c. 3.9
d. 3.3
e. 5.6 Answer: C
a. 4.9
b. 6.6
c. 3.9
d. 3.3
e. 5.6 Answer: D
a. 4.9
b. 6.6
c. 3.9
d. 3.3
e. 5.6 Answer: E
individuals resulted in an average monthly income of R15000. What is the total width of the 90%
confidence interval?
a. 465
b. 419
c. 444
d. 489
e. 425 Answer: A
a. 465
b. 419
c. 444
d. 489
e. 425 Answer: B
a. 465
b. 419
c. 444
d. 489
e. 425 Answer: C
a. 465
b. 419
c. 444
d. 489
e. 425 Answer: D
a. 465
b. 419
c. 444
d. 489
e. 42 Answer: E
μ kg and a standard deviation of 0.36kg. How many times would a full sack have to be weighed so that
the estimate of the weight would be within 0.15 kg of the true weight with 95% confidence?
a. 23
b. 43
c. 13
d. 28
e. 18 Answer: A
a. 23
b. 43
c. 13
d. 28
e. 18 Answer: B
a. 23
b. 43
c. 13
d. 28
e. 18 Answer: C
a. 23
b. 43
c. 13
d. 28
e. 18 Answer: D
a. 23
b. 43
c. 13
d. 28
e. 18 Answer: E
standard deviation of 20mg per litre. How large a sample should she take to estimate the mean lead
content per litre of water to within 1mg with 95% confidence?
a. 1537
b. 865
c. 385
d. 2401
e. 97 Answer: A
a. 1537
b. 865
c. 385
d. 2401
e. 97 Answer: B
a. 1537
b. 865
c. 385
d. 2401
e. 97 Answer: C
a. 1537
b. 865
c. 385
d. 2401
e. 97 Answer: D
a. 1537
b. 865
c. 385
d. 2401
e. 97 Answer: E
108. The financial aid officer at a certain South African university wishes to estimate the mean cost of
textbooks per semester for students. For the estimate to be useful it should be within R30 of the true
population mean. How large a sample should be used in order to be 95% confident of achieving this
level of accuracy if we know the population standard deviation is R100.
a. 43
b. 35
c. 97
d. 52
e. 25 Answer: A
a. 43
b. 35
c. 97
d. 52
e. 25 Answer: B
a. 43
b. 35
c. 97
d. 52
e. 25 Answer: C
a. 43
b. 35
c. 97
d. 52
e. 25 Answer: D
a. 43
b. 35
c. 97
d. 52
e. 25 Answer: E
113. If a random variable, X, follows a normal distribution with a variance of 25, what sample size should
be selected if a 95% confidence interval for the mean is to be calculated to within 2 units of the true
population mean?
a. 25
b. 62
c. 11
d. 35
e. 97 Answer: A
114. If a random variable, X, follows a normal distribution with a variance of 64, what sample size
should be selected if a 95% confidence interval for the mean is to be calculated to within 2 units of the
true population mean?
a. 25
b. 62
c. 11
d. 35
e. 97 Answer: B
should be selected if a 95% confidence interval for the mean is to be calculated to within 3 units of the
a. 25
b. 62
c. 11
d. 35
e. 97 Answer: C
116. If a random variable, X, follows a normal distribution with a variance of 36, what sample size should
be selected if a 95% confidence interval for the mean is to be calculated to within 2 units of the true
population mean?
a. 25
b. 62
c. 11
d. 35
e. 97 Answer: D
should be selected if a 95% confidence interval for the mean is to be calculated to within 1 unit of the
a. 25
b. 62
c. 11
d. 35
e. 97 Answer: E
118. A retail banker working at Nedbank wishes to estimate the mean monthly credit card expenditure
of all Nedbank credit card holders. For the estimate to be useful it should be within R100 of the true
a. 9
b. 14
c. 6
d. 35
e. 25 Answer: A
a. 9
b. 14
c. 6
d. 35
e. 25 Answer: B
a. 9
b. 14
c. 6
d. 35
e. 25 Answer: C
a. 9
b. 14
c. 6
d. 35
e. 25 Answer: D
a. 9
b. 14
c. 6
d. 35
e. 25 Answer: E
Question 1
A sample from the population does not have to share the same characteristics as the population
a) True
b) False
Question 2
Probability sampling is based on various random selection principles
a) True
b) False
Question 3
With the non-probability sampling methods you do not know the likelihood that any element of a
population will be selected in a sample
a) True
b) False
Question 4
A method of using samples to estimate population parameters is known as
a) Statistical interference
b) Statistical inference
c) Statistical appliance
Question 5
The mean of the sample means is
a) A biased estimator of the population
b) An unbiased estimator of the population mean
c) Neither biased nor unbiased
MCQ: The range or set of values which have chances to contain value of population parameter with
particular condence level is considered as
A. secondary interval estimation
B. condence interval estimate
C. population interval estimate
D. sample interval estimate Answer
MCQ: The upper and lower boundaries of interval of condence are classied as
A. error biased limits
B. marginal limits
C. estimate limits
D. condence limits Answer
MCQ: For a parameter whose value is unknown, the belief or claim for that parameter is classied as
A. parameter claim testing
B. expected belief testing
C. hypothesis testing
D. primary limit testing

MCQ: If the standard deviation of population 1 is 3 with sample size is 8 and the population 2 standard
deviation is 5 with sample size is 7 then the standard deviation of sampling distribution is
A. 4.044
B. 3.044
C. 1.044
D. 2.044
MCQ: Considering the sample statistic, if the mean of sampling distribution is equal to population mean
then the sample statistic is classied as
A. unbiased estimator
B. biased estimator
C. interval estimator
D. hypothesis estimator
MCQ: The parameters of population are denoted by the
A. roman letters
B. lower case Greek letter
C. upper case Greek letter
D. associated roman alphabets Answer
MCQ: The unknown or exact value that represents the whole population is classied as
A. parameters
B. estimators
C. absolute statistics
D. coverage estimator Answer
MCQ: The methods in statistics that uses sample statistics to estimate the parameters of the population
are considered as
A. inferential statistics
B. absolute statistics
C. coverage statistics
D. random sample statistics Answer
MCQ: The measures in sampling that are results of sample analyses are called
A. absolute statistics parameter

B. coverage estimators
C. population statistics
D. sample statistic Answer
MCQ: In sampling, the measures such as variance, mean, standard deviation are considered as
A. absolute statistics
B. coverage estimator
C. parameters
D. estimators Answer
What is the best description of a point estimate?
 any value from the sample used to estimate a parameter

 a sample statistic used to estimate a parameter
 the margin of error used to estimate a parameter
Which best describes the lower endpoint of a confidence interval?
 point estimate
 point estimate minus margin of error
 point estimate plus margin of error
Which best describes the upper endpoint of a confidence interval?
 point estimate
 point estimate minus margin of error
 point estimate plus margin of error
Which value will be at the center of a confidence interval?
 population parameter
 point estimate
 margin of error
What is the relationship between a 95 confidence interval and a 99 confidence interval

from the same sample
 the 95% interval will be wider

 the 99% interval will be wider
 both intervals have the same width
1. A numerical value used as a summary measure for a sample, such as a sample mean, is known
as a
A) Population Parameter
B) Sample Parameter
C) Sample Statistic
D) Population Mean
Answer: C
2. Statistics branches include
A) Applied Statistics
B) Mathematical Statistics
C) Industry Statistics
D) Both A and B
Answer: D
3. To enhance a procedure the control charts and procedures of descriptive statistics are classified
into
A) Behavioural Tools
B) Serial Tools
C) Industry Statistics
D) Statistical Tools
Answer: A
4. Sample statistics are also represented as
A) Lower Case Greek Letter
B) Roman Letters
C) Associated Roman Alphabets
D) Upper Case Greek Letter
Answer: B
5. Individual respondents, focus groups, and panels of respondents are categorised as
A) Primary Data Sources
B) Secondary Data Sources
C) Itemised Data Sources
D) Pointed Data Sources
Answer: A
6. The variables whose calculation is done according to the weight, height and length and weight are
known as:
A) Flowchart Variables
B) Discrete Variables
C) Continuous Variables
D) Measuring Variables
Answer: C
7. A method used to examine inflation rate anticipation, unemployment rate and capacity utilisation
to produce products is classified as
A) Data Exporting Technique
B) Data Importing Technique
C) Forecasting Technique
D) Data Supplying Technique
Answer: C
8. Graphical and numerical methods are specialized processes utilised in
A) Education Statistics
B) Descriptive Statistics
C) Business Statistics
D) Social Statistics
Answer: B
9. The scale applied in statistics which imparts a difference of magnitude and proportions is
considered as
A) Exponential Scale
B) Goodness Scale
C) Ratio Scale
D) Satisfactory Scale
Answer: C
10. Review of performance appraisal, labour turnover rates, planning of incentives and training
programs and are examples of
A) Statistics in Production
B) Statistics in Marketing
C) Statistics in Finance
D) Statistics in Personnel Management
Answer: D
To test the hypothesis H 0: μ 1 = μ 2, the sampling distribution is the set of values for


 μ1‐μ2
If the hypothesis H 0: μ 1 = μ 2 is true , the center of the sampling distribution is
 –1
 0
 1
To construct a confidence interval for μ 1 – μ 2, the best point estimate is
 0


If Z1 and Z2 are 2 independent standard normal random variables, then the characteristic function of
(Z1+Z2) is:
A. ? Exp(-t)
B. ? Exp(-2t)
C. ? Exp(-t/2)
D. ? None of the above
E. The "Risk" associated with any decision rule is:
A. ? The expected loss, where the expectation is taken with respect to the uncertainty
associated with the parameters
B. ? The risk of a scalar estimator is gnerally less than its variance
C. ? The risk of a vector estimator is the trace of its matrix mean squared error
D. ? The risk of a vector estimator is just its matrix mean squared error
F. If the loss function is quadratic, then:
A. ? The risk of a scalar estimator is just its variance
B. ? The risk of a scalar estimator is gnerally less than its variance
C. ? The risk of a vector estimator is the trace of its matrix mean squared error
D. ? The risk of a vector estimator is just its matrix mean squared error
G. If an estimator is "inadmissible", then:
A. ? There is at least one other estimator whose loss is less than or equal to the loss of
this estimator everywhere in the parameter space, and strictly less somewhere in the
parameter space
B. ? There is at least one other estimator whose risk is less than or equal to the risk of
this estimator everywhere in the parameter space, and strictly less somewhere in the
parameter space.
C. ? There is at least one other estimator whose risk is strictly less than the risk of this
estimator everywhere in the parameter space
D. ? It cannot be weakly consistent
H. If an estimator is "Mini-Max", then:
A. ? It must be admissible
B. ? It cannot be admissible
C. ? It may be admissible or inadmissible
D. ? Its risk function must "cross" the risk function of at least one other estimatar
I. If an scalar statistic is "sufficient", then:
A. ? It will be an admissible estimator of the population parameter
B. ? It will be an efficient estimator of the population parameter
C. ? It will be an unbiased estimator of the population parameter
D. ? It contains all of the sample information that is needed to estimate the population
parameter
J. The Newton-Raphson algorithm:

A. ? May yield multiple solutions, all of which will be local maxima, and one of which will
be the global maximum
B. ? May yield multiple solutions. some of which relate to local maxima and some of
which relate to local minima
C. ? Will always converge to a global extremum in a finite number of iterations
D. ? Will converge in 3 steps if the underlying function is a cubic polynomial
K. The "Invariance" property of MLE's implies that:
A. ? Their variance approaches zero as the sample size increases without limit
B. ? Their variance achieves the Cramer-Rao lower bound
C. ? Any monotonic function of an MLE is the MLE for that function of the parameter(s)
D. ? Any continuous function of an MLE is the MLE for that function of the parameter(s)
L. If X follows a uniform distribution on [0 , 1], and Y = 5X, then:
A. ? The Jacobian for the mapping from X to Y is 0.2, and Y is uniform on [0 , 5]
B. ? The Jacobian for the mapping from X to Y is 5, and Y is uniform on [0 , 0.2]
C. ? The Jacobian for the mapping from X to Y is 0.2, and Y is uniform on [0 , 0.2]
D. ? The Jacobian for the mapping from X to Y is 5, and Y is uniform on [0 , 5]
M. When we evaluate the Jacobian associated with a transformation from one probability distribution
to another:
A. ? We use the absolute value because a density function cannot take negative values
B. ? We must be dealing with scalar random variables, not random vectors
C. ? The intention is make sure that the support of the new random variable is the full
real line
D. ? The intention is make sure that the support of the new random variable is the
positive half of the real line
N. If our random data are statistically independent, then:
A. ? The likelihood function is just the sum of the marginal data densities, viewed as a
function of the parameter(s)
B. ? The log-likelihood function is just the product of the logarithms of the marginal data
densities, viewed as a function of the parameter(s)
C. ? The log-likelihood function is just the sum of the logarithms of the marginal data
densities, viewed as a function of the parameter(s)
D. ? The likelihood function will have a unique turning point, and this will be a maximum
(not a minimum) if the sample size is large enough
O. The "Likelihood Equations" are:
A. ? The same as the "normal equations" associated with least squares estimation of the
multiple linear regression model
B. ? Guaranteed to have a unique solution if the sample data are independent
C. ? Obtained by getting the second derivatives of the log-likelihood function with respect
to each of the parameters, and setting these equal to zero
D. ? The first-order conditions that we have to solve in order to maximize the likelihood
function
P. When we "concentrate" the likelihood function, the objective is to:
A. ? Focus attention on just the important parameters by conditioning on the 'nuisance

parameters' in the problem
B. ? Reduce the dimension of that part of the optimization problem that has to be solved
numerically
C. ? Take a monotonic transformation of the likelihood function so that it is easier to find

the global maximum
D. ? Convert what would be a non-linear optimization problem into one that is

approximately linear
Q. Suppose that Y follows a Binomial distribution with parameter 'p' equal to the probability of a
'success', and 'n' repetitions. Then the MLE of the standard deviation of Y is:
a) ? The square root of np(1-p)
b) ? The square root of y(n-y)/n, where y is the observed number of 'successes' in the
sample
c) ? The square root of n(y-n)/y, where y is the observed number of 'successes' in the
sample
d) ? The square root of ny, where y is the observed number of 'successes' in the sample
R. The connection between a sufficient statistic and an MLE is:
a) ? A sufficient statistic is always an MLE
b) ? There is no connection in general
c) ? All MLE's are linear combinations of sufficient statistics
d) ? If an MLE is unique, then it must be a function of a sufficient statistic
1) Which of the following assumptions are required to show the consistency, unbiasedness and
efficiency of the OLS estimator?
i) E(ut) = 0
ii) Var(ut) = σ2
iii) Cov(ut, ut-j) = 0 ∀ j
iv) ut~N(0, σ2)
a) (ii) and (iv) only
b) (i) and (iii) only
c) (i), (ii), and (iii) only
d) (i), (ii), (iii), and (iv)
2) Which of the following may be consequences of one or more of the CLRM assumptions being
violated?
i) The coefficient estimates are not optimal

ii) The standard error estimates are not optimal
iii) The distributions assumed for the test statistics are inappropriate
iv) Conclusions regarding the strength of relationships between the dependent and independent
variables may be invalid.
3) What is the meaning of the term "heteroscedasticity"?
a) The variance of the errors is not constant
b) The variance of the dependent variable is not constant
c) The errors are not linearly independent of one another
d) The errors have non-zero mean
For questions 4 and 5, consider the following regression model
4) Suppose that a researcher is interested in conducting White's heteroscedasticity test using the
residuals from an estimation of (2). What would be the most appropriate form for the auxiliary
regression?
a)
b)
c)
d)
5) Suppose that model (2) is estimated using 100 quarterly observations, and that a test of the type
described in question 4 is conducted. What would be the appropriate χ2 critical value with which to
compare the test statistic, assuming a 10% size of test?
a) 2.71
b) 118.50
c) 11.07
d) 9.24
6) What would be then consequences for the OLS estimator if heteroscedasticity is present in a
regression model but ignored?
a) It will be biased
b) It will be inconsistent
c) It will be inefficient
d) All of (a), (b) and (c) will be true.
7) Which of the following are plausible approaches to dealing with a model that exhibits
heteroscedasticity?
i) Take logarithms of each of the variables
ii) Use suitably modified standard errors
iii) Use a generalised least squares procedure
iv) Add lagged values of the variables to the regression equation.
8) Negative residual autocorrelation is indicated by which one of the following?
a) A cyclical pattern in the residuals
b) An alternating pattern in the residuals
c) A complete randomness in the residuals
d) Residuals that are all close to zero
9) Which of the following could be used as a test for autocorrelation up to third order?
a) The Durbin Watson test
b) White's test
c) The RESET test
d) The Breusch-Godfrey test
10) If a Durbin Watson statistic takes a value close to zero, what will be the value of the first order
autocorrelation coefficient?
a) Close to zero
b) Close to plus one

c) Close to minus one
d) Close to either minus one or plus one
11) Suppose that the Durbin Watson test is applied to a regression containing two explanatory variables
plus a constant (e.g. equation 2 above) with 50 data points. The test statistic takes a value of 1.53. What
is the appropriate conclusion?
a) Residuals appear to be positively autocorrelated
b) Residuals appear to be negatively autocorrelated
c) Residuals appear not to be autocorrelated
d) The test result is inconclusive
12) Suppose that a researcher wishes to test for autocorrelation using an approach based on an auxiliary
regression. Which one of the following auxiliary regressions would be most appropriate?
a)
b)
c)
d)
13) If OLS is used in the presence of autocorrelation, which of the following will be likely consequences?
i) Coefficient estimates may be misleading
ii) Hypothesis tests could reach the wrong conclusions
iii) Forecasts made from the model could be biased
iv) Standard errors may inappropriate
14) Which of the following are plausible approaches to dealing with residual autocorrelation?
i) Take logarithms of each of the variables
ii) Add lagged values of the variables to the regression equation

iii) Use dummy variables to remove outlying observations
iv) Try a model in first differenced form rather than in levels.
15) Which of the following could result in autocorrelated residuals?
i) Slowness of response of the dependent variable to changes in the values of the independent variables
ii) Over-reactions of the dependent variable to changes in the independent variables
iii) Omission of relevant explanatory variables that are autocorrelated
iv) Outliers in the data
16) Including relevant lagged values of the dependent variable on the right hand side of a regression
equation could lead to which one of the following?
a) Biased but consistent coefficient estimates
b) Biased and inconsistent coefficient estimates
c) Unbiased but inconsistent coefficient estimates
d) Unbiased and consistent but inefficient coefficient estimates.
17) Near multicollinearity occurs when
a) Two or more explanatory variables are perfectly correlated with one another
b) The explanatory variables are highly correlated with the error term
c) The explanatory variables are highly correlated with the dependent variable
d) Two or more explanatory variables are highly correlated with one another
18) Which one of the following is NOT a plausible remedy for near multicollinearity?
a) Use principal components analysis

b) Drop one of the collinear variables
c) Use a longer run of data
d) Take logarithms of each of the variables
19) What will be the properties of the OLS estimator in the presence of multicollinearity?
a) It will be consistent, unbiased and efficient
b) It will be consistent and unbiased but not efficient
c) It will be consistent but not unbiased
d) It will not be consistent
20) Which one of the following is NOT an example of mis-specification of functional form?
a) Using a linear specification when y scales as a function of the squares of x
b) Using a linear specification when a double-logarithmic model would be more

appropriate
c) Modelling y as a function of x when in fact it scales as a function of 1/x
d) Excluding a relevant variable from a linear regression model
21) If the residuals from a regression estimated using a small sample of data are not normally
distributed, which one of the following consequences may arise?
a) The coefficient estimates will be unbiased but inconsistent
b) The coefficient estimates will be biased but consistent
c) The coefficient estimates will be biased and inconsistent
d) Test statistics concerning the parameters will not follow their assumed distributions.
22) A leptokurtic distribution is one which
a) Has fatter tails and a smaller mean than a normal distribution with the same mean and
variance
b) Has fatter tails and is more peaked at the mean than a normal distribution with the
same mean and variance
c) Has thinner tails and is more peaked at the mean than a normal distribution with the
same mean and variance
d) Has thinner tails than a normal distribution and is skewed.
23) Under the null hypothesis of a Bera-Jarque test, the distribution has
a) Zero skewness and zero kurtosis
b) Zero skewness and a kurtosis of three
c) Skewness of one and zero kurtosis
d) Skewness of one and kurtosis of three.
24) Which one of the following would be a plausible response to a finding of residual non-normality?
a) Use a logarithmic functional form instead of a linear one
b) Add lags of the variables on the right hand side of the regression model
c) Estimate the model in first differenced form
d) Remove any large outliers from the data.
25) A researcher tests for structural stability in the following regression model:
(3)
The total sample of 200 observations is split exactly in half for the sub-sample regressions. Which would
be the unrestricted residual sum of squares?
a) The RSS for the whole sample
b) The RSS for the first sub-sample
c) The RSS for the second sub-sample
d) The sum of the RSS for the first and second sub-samples
26) Suppose that the residual sum of squares for the three regressions corresponding to the Chow test
described in question 35 are 156.4, 76.2 and 61.9. What is the value of the Chow F-test statistic?
a) 4.3
b) 7.6
c) 5.3
d) 8.6
27) What would be the appropriate 5% critical value for the test described in questions 25 and 26?
a) 2.6
b) 8.5
c) 1.3
d) 9.2
28) Suppose now that a researcher wants to run a forward predictive failure test on the last 5
observations using the same model and data as in question 25. Which would now be the unrestricted
residual sum of squares?
a) The RSS for the whole sample regression
b) The RSS for the long sub-sample regression
c) The RSS for the short sub-sample regression
d) The sum of the RSS for the long and short sub-sample regressions.
29) If the two RSS for the test described in question 28 are 156.4 and 128.5, what is the value of the test
statistic?
a) 13.8
b) 14.3
c) 8.3
d) 8.6
30) If a relevant variable is omitted from a regression equation, the consequences would be that:
i) The standard errors would be biased
ii) If the excluded variable is uncorrelated with all of the included variables, all of the slope coefficients
will be inconsistent.
iii) If the excluded variable is uncorrelated with all of the included variables, the intercept coefficient will
be inconsistent.
iv) If the excluded variable is uncorrelated with all of the included variables, all of the slope and
intercept coefficients will be consistent and unbiased but inefficient.
31) A parsimonious model is one that
a) Includes too many variables
b) Includes as few variables as possible to explain the data
c) Is a well-specified model
d) Is a mis-specified model
32 ) Which one of the following is a disadvantage of the general to specific or "LSE" ("Hendry") approach
to building econometric models, relative to the specific to general approach?
a) Some variables may be excluded at the first stage leading to coefficient biases
b) The final model may lack theoretical interpretation
c) The final model may be statistically inadequate
d) If the initial model is mis-specified, all subsequent steps will be invalid.
1. Which of the following is the explanatory variable in this study?
a. Exercise
b. Lung capacity
c. Smoking or not
d. Occupation
2. Which of the following is a confounding variable in this study?
a. Exercise
b. Lung capacity
c. Smoking or not
d. Occupation
This scenario applies to Questions 3 to 5: A randomized experiment was done by randomly
assigning each participant either to walk for half an hour three times a week or to sit quietly
reading a book for half an hour three times a week. At the end of a year the change in
participants' blood pressure over the year was measured, and the change was compared for the
two groups.
3. This is a randomized experiment rather than an observational study because:
a. Blood pressure was measured at the beginning and end of the study.
b. The two groups were compared at the end of the study.
c. The participants were randomly assigned to either walk or read, rather than choosing
their own activity.
d. A random sample of participants was used.
4. The two treatments in this study were:

a. Walking for half an hour three times a week and reading a book for half an hour three
times a week.
b. Having blood pressure measured at the beginning of the study and having blood pressure
measured at the end of the study.
c. Walking or reading a book for half an hour three times a week and having blood pressure
measured.
d. Walking or reading a book for half an hour three times a week and doing nothing.
Scenario for Questions 3 to 5, continued
5. If a statistically significant difference in blood pressure change at the end of a year for the
two activities was found, then:
a. It cannot be concluded that the difference in activity caused a difference in the change in
blood pressure because in the course of a year there are lots of possible confounding
variables.
b. Whether or not the difference was caused by the difference in activity depends on what
else the participants did during the year.
c. It cannot be concluded that the difference in activity caused a difference in the change in
blood pressure because it might be the opposite, that people with high blood pressure
were more likely to read a book than to walk.
d. It can be concluded that the difference in activity caused a difference in the change in
blood pressure because of the way the study was done.
6. What is one of the distinctions between a population parameter and a sample statistic?
a. A population parameter is only based on conceptual measurements, but a sample statistic
is based on a combination of real and conceptual measurements.
b. A sample statistic changes each time you try to measure it, but a population parameter
remains fixed.
c. A population parameter changes each time you try to measure it, but a sample statistic
remains fixed across samples.
d. The true value of a sample statistic can never be known but the true value of a population
parameter can be known.

7. A magazine printed a survey in its monthly issue and asked readers to fill it out and send it
in. Over 1000 readers did so. This type of sample is called
a. a cluster sample.
b. a self-selected sample.
c. a stratified sample.
d. a simple random sample.
8. Which of the following would be most likely to produce selection bias in a survey?
a. Using questions with biased wording.
b. Only receiving responses from half of the people in the sample.
c. Conducting interviews by telephone instead of in person.
d. Using a random sample of students at a university to estimate the proportion of people
who think the legal drinking age should be lowered.
9. Which one of the following variables is not categorical?
a. Age of a person.
b. Gender of a person: male or female.
c. Choice on a test item: true or false.
d. Marital status of a person (single, married, divorced, other)
10. A polling agency conducted a survey of 100 doctors on the question “Are you willing to treat
women patients with the recently approved pill RU-486”? The conservative margin of error
associated with the 95% confidence interval for the percent who say 'yes' is
a. 50% b. 10% c. 5% d. 2%
11. Which one of these statistics is unaffected by outliers?
a. Mean
b. Interquartile range
c. Standard deviation
d. Range
12. A list of 5 pulse rates is: 70, 64, 80, 74, 92. What is the median for this list?
a. 74 b. 76 c. 77 d. 80
13. Which of the following would indicate that a dataset is not bell-shaped?
a. The range is equal to 5 standard deviations.
b. The range is larger than the interquartile range.
c. The mean is much smaller than the median.
d. There are no outliers.
14. A scatter plot of number of teachers and number of people with college degrees for cities in
California reveals a positive association. The most likely explanation for this positive
association is:
a. Teachers encourage people to get college degrees, so an increase in the number of
teachers is causing an increase in the number of people with college degrees.
b. Larger cities tend to have both more teachers and more people with college degrees, so
the association is explained by a third variable, the size of the city.
c. Teaching is a common profession for people with college degrees, so an increase in the
number of people with college degrees causes an increase in the number of teachers.
d. Cities with higher incomes tend to have more teachers and more people going to college,
so income is a confounding variable, making causation between number of teachers and
number of people with college degrees difficult to prove.
15. The value of a correlation is reported by a researcher to be r = −0.5. Which of the following
statements is correct?
a. The x-variable explains 25% of the variability in the y-variable.
b. The x-variable explains −25% of the variability in the y-variable.
c. The x-variable explains 50% of the variability in the y-variable.
d. The x-variable explains −50% of the variability in the y-variable.
16. What is the effect of an outlier on the value of a correlation coefficient?
a. An outlier will always decrease a correlation coefficient.
b. An outlier will always increase a correlation coefficient.
c. An outlier might either decrease or increase a correlation coefficient, depending on
where it is in relation to the other points.
d. An outlier will have no effect on a correlation coefficient.
17. One use of a regression line is

a. to determine if any x-values are outliers.
b. to determine if any y-values are outliers.
c. to determine if a change in x causes a change in y.
d. to estimate the change in y for a one-unit change in x.
18. Past data has shown that the regression line relating the final exam score and the midterm
exam score for students who take statistics from a certain professor is:
final exam = 50 + 0.5 × midterm
One interpretation of the slope is
a. a student who scored 0 on the midterm would be predicted to score 50 on the final exam.
b. a student who scored 0 on the final exam would be predicted to score 50 on the midterm
exam.
c. a student who scored 10 points higher than another student on the midterm would be
predicted to score 5 points higher than the other student on the final exam.
d. students only receive half as much credit (.5) for a correct answer on the final exam
compared to a correct answer on the midterm exam.
Questions 19 to 21: A survey asked people how often they exceed speed limits. The data are
then categorized into the following contingency table of counts showing the relationship between
age group and response.
Exceed Limit if Possible?
Age Always Not Always Total
Under 30 100 100 200
Over 30 40 160 200
Total 140 260 400
19. Among people with age over 30, what's the "risk" of always exceeding the speed limit?
a. 0.20
b. 0.40
c. 0.33
d. 0.50
20. Among people with age under 30 what are the odds that they always exceed the speed limit?
a. 1 to 2
b. 2 to 1
c. 1 to 1
d. 50%
21. What is the relative risk of always exceeding the speed limit for people under 30 compared to
people over 30?
a. 2.5
b. 0.4
c. 0.5
d. 30%
Questions 22 and 23: A newspaper article reported that "Children who routinely compete in
vigorous after-school sports on smoggy days are three times more likely to get asthma than their
non-athletic peers." (Sacramento Bee, Feb 1, 2002, p. A1)
22. Of the following, which is the most important additional information that would be useful
before making a decision about participation in school sports?
a. Where was the study conducted?
b. How many students in the study participated in after-school sports?
c. What is the baseline risk for getting asthma?
d. Who funded the study?
23. The newspaper also reported that "The number of children in the study who contracted
asthma was relatively small, 265 of 3,535." Which of the following is represented by
265/3535 = .075?
a. The overall risk of getting asthma for the children in this study.
b. The baseline risk of getting asthma for the “non-athletic peers” in the study.
c. The risk of getting asthma for children in the study who participated in sports.
d. The relative risk of getting asthma for children who routinely participate in vigorous
after-school sports on smoggy days and their non-athletic peers.
Questions 24 to 26: The following histogram shows the distribution of the difference between
the actual and “ideal” weights for 119 female students. Notice that percent is given on the
vertical axis. Ideal weights are responses to the question “What is your ideal weight”? The
difference = actual −ideal. (Source: idealwtwomen dataset on CD.)
24. What is the approximate shape of the distribution?
a. Nearly symmetric.
b. Skewed to the left.
c. Skewed to the right.
d. Bimodal (has more than one peak).
25. The median of the distribution is approximately
a. −10 pounds.
b. 10 pounds.
c. 30 pounds.
d. 50 pounds.
Scenario for Questions 24 to 26, continued
26. Most of the women in this sample felt that their actual weight was
a. about the same as their ideal weight.
b. less than their ideal weight.
c. greater than their ideal weight.
d. no more than 2 pounds different from their ideal weight.
27. A chi-square test of the relationship between personal perception of emotional health and
marital status led to rejection of the null hypothesis, indicating that there is a relationship
between these two variables. One conclusion that can be drawn is:
a. Marriage leads to better emotional health.

b. Better emotional health leads to marriage.
c. The more emotionally healthy someone is, the more likely they are to be married.
d. There are likely to be confounding variables related to both emotional health and
marital status.
28. A chi-square test involves a set of counts called “expected counts.” What are the expected
counts?
a. Hypothetical counts that would occur of the alternative hypothesis were true.
b. Hypothetical counts that would occur if the null hypothesis were true.
c. The actual counts that did occur in the observed data.
d. The long-run counts that would be expected if the observed counts are representative.
29. Pick the choice that best completes the following sentence. If a relationship between two
variables is called statistically significant, it means the investigators think the variables are
a. related in the population represented by the sample.
b. not related in the population represented by the sample.
c. related in the sample due to chance alone.
d. very important.
30. Simpson's Paradox occurs when
a. No baseline risk is given, so it is not know whether or not a high relative risk has
practical importance.
b. A confounding variable rather than the explanatory variable is responsible for a change in
the response variable.
c. The direction of the relationship between two variables changes when the categories of
a confounding variable are taken into account.
d. The results of a test are statistically significant but are really due to chance.
Questions 1 – 25 are multiple-choice items. Record your answer on the answer sheet provided. When
you have completed the
multiple choice items, then answer each of the three tie-breaker items in order. Record your answer and
your work on the tiebreaker pages provided as part of the test booklet. When you finish, detach the tie
breaker items from the booklet, be sure your
name is on each page. When time is called, turn in the answer sheet and the tie-breaker items. You may
keep the question part
of the test booklet.
1. Given IQ scores are approximately normally distributed with a mean of 100 and standard
deviation of 15, the proportion of people with IQs above 130 is:
a. 95%
b. 68%
c. 5%
d. 2.5%
2. Randomly assigning treatment to experimental units allows:
a. population inference
b. causal inference
c. both types of inference
d. neither type of inference
3. Failing to reject the null hypothesis when it is false is:
a. alpha
b. Type I error
c. beta
d. Type II error
4. A parameter is:
a. a sample characteristic
b. a population characteristic
c. unknown
d. normal normally distributed
5. A statistic is:
a. a sample characteristic
b. a population characteristic
c. unknown
d. normally distributed
6. Observational studies allow:
a. population inference
b. causal inference
c. both types of inference
d. neither type of inference
7. A national random sample of 20 ACT scores from 2010 is listed below. Calculate the sample
mean and standard deviation.
29, 26, 13, 23, 23, 25, 17, 22, 17, 19, 12, 26, 30, 30, 18, 14, 12, 26, 17, 18
a. 20.50, 5.79
b. 20.50, 5.94
c. 20.85, 5.79
d. 20.85, 5.94
8. Provided that the ACT is reasonably normally distributed with a mean of 18 and standard
deviation of 6, determine the proportion of students with a 33 or higher.
a. 0.0062
b. 0.0109
c. 0.0124
d. 0.0217
9. Using the data in question 7, calculate the 95% confidence interval for the mean ACT score based
on the t-distribution.
a. -∞ to 23.05
b. -∞ to 23.15
c. 18.07 to 23.63
d. 18.22 to 23.48
10. Using the data in question 7, calculate number of observations that are two or more sample
standard deviations from the sample mean.
a. 0
b. 1
c. 2
d. 3
11. The data in question 7 appears to be reasonably symmetric.
a. True
b. False
12. When asked questions concerning personal hygiene, people commonly lie. This is an example of:
a. sampling bias
b. confounding
c. non-response bias
d. response bias
13. Select the order of sampling schemes from best to worst.
a. simple random, stratified, convenience
b. simple random, convenience, stratified
c. stratified, simple random, convenience
d. stratified, convenience, simple random
14. The histogram above represents the lifespan of a random sample of a particular type of insect.
Determine the relationship between the mean and median.
a. mean = median
b. mean ≈ median
c. mean < median
d. mean > median
15. When the correlation coefficient, r, is close to one:
a. there is no relationship between the two variables
b. there is a strong linear relationship between the two variables
c. it is impossible to tell if there is a relationship between the two variables
d. the slope of the regression line will be close to one
16. Given the following data pairs (x, y), find the regression equation.
(1, 1.24), (2, 5.23), (3, 7.24), (4, 7.60), (5, 9.97), (6, 14.31), (7, 13.99), (8, 14.88),
(9, 18.04), (10, 20.70)
a. y = 0.490 x - 0.053
b. y = 2.04 x
c. y = 1.98 x + 0.436
d. y = 0.49 x
17. Using the data from 16, calculate the correlation coefficient.
a. r = 0.490
b. r = 0.985
c. r = 0.971
d. r = 0.240
18. The coefficient of determination for 16 is strong.
a. true
b. false
days
Frequency
0 2 4 6 8 10 12 14
0 10 20 30 40
19. Using the data from 16, obtain a prediction for x = 4.5.
a. 2.15
b. 2.21
c. 9.18
d. 9.34
20. The data in the scatterplot above would have a correlation coefficient that is close to:
a. –1.0
b. –0.5
c. +1.0
d. +0.5
21. The intercept in linear regression represents:
a. the strength of the relationship between x and y
b. the expected x value when y is zero
c. the expected y value when x is zero
d. a population parameter
22. Calculate the mean number of children per family for the sample from the following table.
Number of children Number of families
0 8
1 16
2 22
3 14
4 6
5 4
6 2
a. 1.91
b. 2.47
c. 3.14
d. 2.19
-1.0 -0.5 0.0 0.5 1.0
-1.0 -0.5 0.0 0.5 1.0
23. Using the table from 22, calculate the standard deviation.
a. 1.46
b. 1.45
c. 2.10
d. 2.17
24. In 1923, Babe Ruth had 522 at bats with 205 hits. Assuming that the binomial distribution can be
appropriately applied, find the expected number of hits in 529 at bats.
a. 321
b. 186
c. 230
d. 208
25. The distribution of heights of American women aged 18 to 24 is approximately normally
distributed with a mean of 65.5 inches and standard deviation of 2.5 inches. Calculate the z-score
for a woman six feet tall.
a. 2.60
b. 4.11
c. 1.04
d. 1.33
MULTIPLE CHOICE QUESTIONS

81. Which of the following statements applies to a point estimate?
a. The point estimate is a parameter.

b. The point estimate will tend to be accurate if the sample size exceeds 30 for non-
normal populations.
c. The point estimate is subject to sampling error and will almost always be different
than the population value.
d. The point estimate is needed to determine the required sample size when estimating
the population mean.
82. Sampling error occurs when:
a. a non-statistical sample is used.

b. the statistic computed from the sample is not equal to the parameter for the
population.
c. a random sample is used rather than a convenience sample.
d. a confidence interval is used to estimate a population value rather than a point
estimate.
83. The general format for a confidence interval is:
a. point estimate + z (Standard Deviation).

b. point estimate + (critical value)(standard error).
c. margin of error + (confidence coefficient) (standard error).
d. point estimate + (critical value)(standard deviation)
84. In an application to estimate the mean number of miles that downtown employees commute to work
roundtrip each day, the following information is given:
n = 20
x  4.33
s  3.50
If the desired confidence level is 95 percent, the appropriate critical value is:
a. z = 1.96.
b. t = 2.093.
c. t = 2.086.
d. .7826.
n = 20
x  4.33
s  3.50
The point estimate for the true population mean is:
a. 1.638.
b. 4.33 + 1.638.
c. 4.33.
d. 3.50
n = 20
x  4.33
s  3.50
Based on this information, the upper limit for a 95 percent confidence interval estimate for the true
population mean is:
a. about 5.97 miles.

b. about 7.83 miles.
c. nearly 12.0 miles.
d. about 5.86 miles
87. In developing a confidence interval estimate for the population mean, which of the following is true?
a. The larger the sample standard deviation, the wider will be the interval estimate, all ---
----other things being equal.
b. If the population standard deviation is unknown, the appropriate critical value should -
----be obtained from the t-distribution.
c. The confidence interval developed from a smaller sample size will have a larger -------
----margin of error than one obtained using a larger sample size, all other things being ----
---equal.
d. All of the above are true.
88. Which of the following will increase the width of a confidence interval (assuming that everything
else remains constant)?
a. decreasing the confidence level

b. increasing the sample size
c. a decrease in the standard deviation
d. decreasing the sample size
89. In an effort to estimate the mean dollars spent per visit by customers of a food store, the manager has
selected a random sample of 100 cash register receipts. The mean of these was $45.67 with a sample
standard deviation equal to $12.30. Assuming that he wants to develop a 90 percent confidence interval
estimate, which of the following is the margin of error that will be reported?
a. About + $2.02
b. Nearly $50.20
c. $1.645
d. About $1.43
90. In an effort to estimate the mean dollars spent per visit by customers of a food store, the manager has
selected a random sample of 100 cash register receipts. The mean of these was $45.67 with a sample
standard deviation equal to $12.30. Assuming that he wants to develop a 90 percent confidence interval
estimate, the upper limit of the confidence interval estimate is:
a. about $2.02.
b. approximately $65.90.
c. about $47.69.
d. None of the above.
91. The margin of error is:
a. the largest possible sampling error at a specified level of confidence.

b. the critical value times the standard error of the sampling distribution.
c. Both a and b
d. the difference between the point estimate and the parameter.
92. Which of the following statements is true with respect to the confidence level associated with an
estimation application?
a. The confidence level is a percentage value between 50 and 100 that corresponds to
the percentage of all possible confidence intervals, based on a given sample size, that will
contain the true population value.
b. The probability that the confidence interval estimate will contain the true population
value.
c. The degree of accuracy associated with the confidence interval estimate.
93. In a situation where the population standard deviation is known and we wish to estimate the
population mean with 90 percent confidence, what is the appropriate critical value to use?
a. z = 1.96
b. z = 2.33
c. z = 1.645
d. Can’t be determined without knowing the degrees of freedom
94. In developing a confidence interval estimate for the population mean, the t-distribution is used to
obtain the critical value when:
a. the sample contains some extreme values that skew the results.
b. the population standard deviation is unknown.
c. the sampling that is being used is not a statistical sample.
d. the confidence level is low
95. Which of the following statements is true with respect to the t-distribution?
a. The t-distribution is symmetrical.

b. The exact shape of the t-distribution depends on the number of degrees of freedom.
c. The t-distribution is more spread out than the standard normal distribution.
96. A popular restaurant takes a random sample n=25 customers and records how long each occupied a
table. The found a sample mean of 1.2 hours and a sample standard deviation of 0.3 hours. Find the 95%
confidence interval for the mean.
a. 1.2 .118
b. 1.2 .124
c. 1.2 .588
d. 1.2 .609
97. If a decision maker wishes to reduce the margin of error associated with a confidence interval
estimate for a population mean, she can:
a. decrease the sample size.

b. increase the confidence level.
c. increase the sample size
d. use the t-distribution
98. When small samples are used to estimate a population mean, in cases where the population standard
deviation is unknown:
a. the t-distribution must be used to obtain the critical value.

b. the resulting margin of error for a confidence interval estimate will tend to be fairly
small.
c. there will be a large amount of sampling error.
99. An educational organization in California is interested in estimating the mean number of minutes per
day that children between the age of 6 and 18 spend watching television per day. A previous study
showed that the population standard deviation was 21.5 minutes. The organization selected a random
sample of n = 200 children between the ages of 6 and 18 and recorded the number of minutes of TV that
each person watched on a particular day. The mean time was 191.3 minutes. If the leaders of the
organization wish to develop an interval estimate with 98 percent confidence, what critical value should
be used?
a. z = 1.645
b. t = 2.38
c. Approximately z = 2.33
d. Can’t be determined without knowing the margin of error.
100. An educational organization in California is interested in estimating the mean number of minutes
per day that children between the age of 6 and 18 spend watching television per day. A previous study
sample of n = 200 children between the age of 6 and 18 and recorded the number of minutes of TV that
organization wish to develop an interval estimate with 98 percent confidence, what would be the upper
and lower limits of the interval estimate?
a. Approximately 187.76 minutes ----- 194.84 minutes

b. About 141.21 minutes ------- 241.40 minutes
c. Approximately 188.3 minutes -------- 194.3 minutes
101. An educational organization in California is interested in estimating the mean number of minutes
per day that children between the age of 6 and 18 spend watching television per day. A previous study
sample of n = 200 children between the age of 6 and 18 and recorded the number of minutes of TV that
organization wish to develop an interval estimate with 95 percent confidence, what will the margin of
error be?
a. Approximately + 1.52 minutes

b. About + 2.98 minutes
c. z = 1.96
d. Approximately + 42.14 minutes
102. The Wisconsin Dairy Association is interested in estimating the mean weekly consumption of milk
for adults over the age of 18 in that state. To do this, they have selected a random sample of 300 people
from the designated population. The following results were recorded:
x = 34.5 ounces s = 7.9 ounces
Given this information, if the leaders wish to estimate the mean milk consumption with 90 percent
confidence, what is the approximate margin of error in the estimate?
a. z = 1.645
b. + 12.996 ounces
c. + 0.456 ounces
d. + 0.75 ounces
103. The Internal Revenue Service (IRS) is interested in estimating the mean amount of money spent on
outside tax service by income tax filers filing as single on their individual form. To do this, they have
selected a random sample of n = 16 people from this population and surveyed them to determine the
sample mean and sample standard deviation. The following information was observed: x = $88.60
s = $30.79
Given this information, what is the 95 percent confidence interval for the mean dollars spent on outside
tax assistance by taxpayers who file as single?
a. Approximately $72.19 –––– $105.01

b. About $22.97 –––– $154.23
c. Approximately $80.90 –––– $96.30
d. About $ 28.25 –––– $148.95
104. A study was recently conducted to estimate the mean cholesterol for adult males over the age of 55
years. The following random sample data were observed:
Given this information, what is the point estimate for the population mean?
a. About 73.35
b. + 102
c. About 242.6
d. Can’t be determined without knowing the confidence level.
105. A study was recently conducted to estimate the mean cholesterol for adult males over the age of 55
years. From a random sample of n = 10 men, the sample mean was found to be 242.6 and the sample
standard deviation was 73.33. To find the 95% confidence interval estimate for the mean, the correct
critical value to use is:
a. 1.96
b. 2.2281
c. 2.33
d. 2.2622
106. The following data represent a random sample of bank balances for a population of checking
account customers at a large eastern bank. Based on these data, what is the critical value for a 95 percent
confidence interval estimate for the true population mean?
a. 1.96
b. 2.1009
c. 2.1098
107. The following data represent a random sample of bank balances for a population of checking
account customers at a large eastern bank. Based on these data, what is the 95 percent confidence
interval estimate for the true population mean?
a. Approximately $1,069 + $484.41

b. About $839.40 to $1,298.60
c. Approximately $1,069 + 2.1098
108. The Hilbert Drug Store owner plans to survey a random sample of his customers with the objective
of estimating the mean dollars spent on pharmaceutical products during the past three months. He has
assumed that the population standard deviation is known to be $15.50. Given this information, what
would be the required sample size to estimate the population mean with 95 percent confidence and a
margin of error of + $2.00?
a. 231
b. 163
c. 16
d. 15
109. A major tire manufacturer wishes to estimate the mean tread life in miles for one of their tires.
They wish to develop a confidence interval estimate that would have a maximum sampling error of 500
miles with 90 percent confidence. A pilot sample of n = 50 tires showed a sample standard deviation
equal to 4,000 miles. Based on this information, the required sample size is:
a. 124.
b. 246.
c. 174.
d. 196.
110. The purpose of a pilot sample is:
a. to provide a better idea of what the population mean will be.

b. to help clarify how the sampling process will be performed.
c. to provide an idea of what the population standard deviation might be.
d. to save time and money instead of having to carry out a full sampling plan.
111. Past experience indicates that the variance in the time it takes for a “fast lube” operation to actually
complete the lube and oil change for customers is 9.00 minutes. The manager wishes to estimate the
mean time with 99% confidence and a margin of error of + 0.50 minutes. Given this, what must the
sample size be?
a. n = 239
b. n = 2149
c. n = 139
d. n = 1245
112. A traffic engineer plans to estimate the average number of cars that pass through an intersection
each day. Based on previous studies the standard deviation is believed to be 52 cars. She wants to
estimate the mean to within + 10 cars with 90% confidence. The needed sample size for n is:
a. n = 104 days
b. n = 74 days
c. n = 10 days
d. n = 9 days
113. If a manager believes that the required sample size is too large for a situation in which she desires
to estimate the mean income of blue collar workers in a state, which of the following would lead to a
reduction in sample size?
a. Reduce the level of confidence

b. Allow a higher margin of error
c. Somehow reduce the variation in the population
d. All of the above.
114. A large midwestern university is interested in estimating the mean time that students spend at the
student recreation center per week. A previous study indicated that the standard deviation in time is
about 40 minutes per week. If the officials wish to estimate the mean time within + 10 minutes with a 90
percent confidence, what should the sample size be?
a. 44
b. 62
c. 302
d. Can’t be determined without knowing how many students there are at the university.
115. A hospital emergency room has collected a sample of n = 40 to estimate the mean number of visits
per day. The have found the standard deviation is 32. Using a 90% confidence level, what is their margin
of error?
a. Approximately + 1.5 visits

b. About + 9.9 visits
c. Approximately + 8.3 visits
d. About + 1.3 visits
116. A study has indicated that the sample size necessary to estimate the average electricity use by
residential customers of a large western utility company is 900 customers. Assuming that the margin of
error associated with the estimate will be + 30 watts and the confidence level is stated to be 90 percent,
what was the value for the population standard deviation?
a. 265 watts
b. Approximately 547.1 watts
c. About 490 watts
d. Can’t be determined without knowing the size of the population.
117. The U.S. Post Office is interested in estimating the mean weight of packages shipped using the
overnight service. They plan to sample 300 packages. A pilot sample taken last year showed that the
standard deviation in weight was about 0.15 pounds. If they are interested in an estimate that has 95
percent confidence, what margin of error can they expect?
a. Approximately 0.017 pounds

b. About 0.0003 pounds
c. About 1.96
d. Can’t be determined without knowing the population mean.
118. A cell phone service provider has selected a random sample of 20 of its customers in an effort to
estimate the mean number of minutes used per day. The results of the sample included a sample mean of
34.5 minutes and a sample standard deviation equal to 11.5 minutes. Based on this information, and
using a 95 percent confidence level:
a. The critical value is z = 1.96.

b. The critical value is z = 1.645.
c. The critical value is t = 2.093.
d. The critical value can’t be determined without knowing the margin of error.
119. An animal shelter wants to estimate the mean number of animals housed daily and they know the
standard deviation. If they want to find a 98% confidence interval the critical value to use is:
a. 1.645
b. 1.98
c. 2.33
d. 2.575
120. Which of the following will result in a larger margin of error in an application involving the
estimation of a population mean?
a. Increasing the sample size

b Decreasing the confidence level
c. Increasing the sample standard deviation
8-3 Estimating a Population Proportion
121. The administrator at Sacred Heart Hospital is interested in estimating the proportion of patients who
are satisfied with the meals at the hospital. A random sample of 250 patients was selected and the
patients were surveyed. Of these, 203 indicated that they were satisfied. Based on this, what is the
estimate of the standard error of the sampling distribution?
a. 0.8120
b. 0.0247
c. 0.0006
d. Can’t be determined without knowing  .
122. The produce manager for a large retail food chain is interested in estimating the percentage of
potatoes that arrive on a shipment with bruises. A random sample of 150 potatoes showed 14 with
bruises. Based on this information, what is the margin of error for a 95 percent confidence interval
estimate?
a. 0.0933
b. 0.0466
c. 0.0006
123. A random sample of 340 people in Chicago showed that 66 listened to WJKT – 1450, a radio
station in South Chicago Heights. Based on this sample information, what is the point estimate for the
proportion of people in Chicago that listen to WJKT – 1450?
a. 340
b. About 0.194
c. 1450
d. 66
124. A random sample of 340 people in Chicago showed that 66 listened to WJKT – 1450, a radio
station in South Chicago Heights. Based on this information, what is the upper limit for the 95 percent
confidence interval estimate for the proportion of people in Chicago that listen to WJKT – 1450?
a. 1.96
b. Approximately 0.0009
c. About 0.2361
d. About 0.2298
125. The chamber of commerce in a beach resort town wants to estimate the proportion of
visitors who are repeat visitors. From previous experience they believe the portion is in the
vicinity of 0.5 and they want to estimate the proportion to within + 0.03 percentage points with
95% confidence. The sample size they should use is:
a. n = 1068
b. n = 545
c. n = 33
d. n = 95
126. The chamber of commerce in a beach resort town wants to estimate the proportion of visitors
who are repeat visitors. From previous experience they believe the portion is not larger than 20%. They
want to estimate the proportion to within + 0.04 percentage points with 95% confidence. The sample
size they should use is:
a. n = 601
b. n = 97
c. n = 10
d. n = 385
127. A regional hardware chain is interested in estimating the proportion of their customers who own
their own homes. There is some evidence to suggest that the proportion might be around 0.70. Given
this, what sample size is required if they wish a 90 percent confidence level with a margin of error of ±
.025?
a. About 355
b. Approximately 910
c. Almost 1,300
d. 100
128. Suppose that an internal report submitted to the managers at a bank in Boston showed that with 95
percent confidence, the proportion of the bank’s customers who also have accounts at one or more other
banks is between .45 and .51. Given this information, what sample size was used to arrive at this
estimate?
a. About 344
b. Approximately 1,066
c. Just under 700
d. Can’t be determined without more information.
129. A sample of 250 people resulted in a confidence interval estimate for the proportion of people who
believe that the Federal Government’s proposed tax increase is justified is between 0.14 and 0.20. Based
on this information, what was the confidence level used in this estimation?
a. Approximately 1.59
b. 95 percent
c. Approximately 79 percent
130. The chamber of commerce in a beach resort town wants to estimate the proportion of visitors who
are repeat visitors. Suppose that they have estimated that they need a sample size of n=16,577 people
to achieve a margin of error of + .01 percentage points with 99% confidence, but this is too large a
sample size to be practical. How can they reduce the sample size?
a. use a higher level of confidence

b. use a smaller margin or error
c. use a lower level of confidence
d. conduct a census
9-1 Hypothesis Tests for Means
71. When someone is on trial for suspicion of committing a crime, the hypotheses are:
Ho : innocent
HA : guilty
Which of the following is correct?
a. Type I error is acquitting a guilty person

b. Type I error is convicting an innocent person
c. Type II error is acquitting an innocent person
d. Type II error is convicting an innocent person
72. Which of the following statements is true?
a. The decision maker controls the probability of making a Type I statistical error.
b. Alpha represents the probability of making a Type II error.
c. Alpha and beta are directly related such that when one is increased the other will
increase also.
d. The alternative hypothesis should contain the equality.
73. In a hypothesis test involving a population mean, which of the following would be an acceptable
formulation?
H o : x  $1,700
a.
H a : x  $1,700
H o :   $1,700
b.
H a :   $1,700
H o :   $1,700
c.
H a :   $1,700
d. None of the above is a correct formulation.

74. Which of the following would be an appropriate null hypothesis?
a. The mean of a population is equal to 55.
b. The mean of a sample is equal to 55.
c. The mean of a population is greater than 55.
d. The mean of a sample is equal to 55

75. If we are performing a two-tailed test of whether  = 100, the probability of detecting a shift of the
mean to 105 will be ________ the probability of detecting a shift of the mean to 110.
a. less than
b. greater than
c. equal to
d. not comparable to
76. If an economist wishes to determine whether there is evidence that average family income in a
community exceeds $25,000. The best null hypothesis is:
a. μ = 25,000
b. μ > 25,000
c. μ < 25,000
d. μ > 25,000
77. If the p value is less than  in a two-tailed test,
a. the null hypothesis should not be rejected.
b. the null hypothesis should be rejected.
c. a one-tailed test should be used.
d. more information is needed to reach a conclusion about the null hypothesis.

78. A hypothesis test is to be conducted using an alpha = .05 level. This means:
a. there is a 5 percent chance that the null hypothesis is true.

b. there is a 5 percent chance that the alternative hypothesis is true.
c. there is a maximum 5 percent chance that a true null hypothesis will be rejected.
d. there is a 5 percent chance that a Type II error has been committed.
79. In a two-tailed hypothesis test for a population mean, an increase in the sample size will:
a. have no affect on whether the null hypothesis is true or false.

b. have no affect on the significance level for the test.
c. result in a sampling distribution that has less variability.
80. The reason for using the t-distribution in a hypothesis test about the population mean is:
a. the population standard deviation is unknown

b. it results in a lower probability of a Type I error occurring.
c. it provides a smaller critical value than the standard normal distribution for a given
sample size.
d. the population is not normally distributed
81. A company that makes shampoo wants to test whether the average amount of shampoo per bottle is
16 ounces. The standard deviation is known to be 0.20 ounces. Assuming that the hypothesis test is to be
performed using 0.10 level of significance and a random sample of n = 64 bottles, which of the following
would be the upper tail critical value?
a. 1.28
b. 1.645
c. 1.96
d. 2.575
performed using 0.10 level of significance and a random sample of n = 64 bottles, which of the following
would be the correct formulation of the null and alternative hypotheses?
a. Ho : x = 16
HA : x ≠ 16
b. Ho : μ = 16
HA : μ ≠ 16
c. Ho : μ >16
HA : μ < 16
d. Ho : x > 16
HA : x < 16
performed using 0.10 level of significance and a random sample of n = 64 bottles, how large could the
sample mean be before they would reject the null hypothesis?
a. 16.2 ounces
b. 16.049 ounces
c. 15.8 ounces
d. 16.041 ounces
84. The cost of a college education has increased at a much faster rate than costs in general over the past
twenty years. In order to compensate for this, many students work part- or full- time in addition to
attending classes. At one university, it is believed that the average hours students work per week exceeds
20. To test this at a significance level of 0.05, a random sample of n = 20 students was selected and the
following values were observed:
Based on these sample data, which of the following statements is true?
a. The standard error of the sampling distribution is approximately 3.04.

b. The test statistic is approximately t = 0.13.
c. The research hypothesis that the mean hours worked exceeds 20 is not supported by
these sample data.
85. The cost of a college education has increased at a much faster rate than costs in general over the past
twenty years. In order to compensate for this, many students work part- or full-time in addition to
attending classes. At one university, it is believed that the average hours students work per week exceeds
20. To test this at a significance level of 0.05, a random sample of n = 20 students was selected and the
following values were observed:
Based on these sample data, the critical value expressed in hours:

a. is approximately equal to 25.26 hours.
b. is approximately equal to 25.0 hours.
c. cannot be determined without knowing the population standard deviation.
d. is approximately 22 hours
86. The R.D. Wilson Company makes a soft drink dispensing machine that allows customers to get soft
drinks from the machine in a cup with ice. When the machine is running properly, the average number of
fluid ounces in the cup should be 14. Periodically the machines need to be tested to make sure that they
have not gone out of adjustment. To do this, six cups are filled by the machine and a technician carefully
measures the volume in each cup. In one such test, the following data were observed:
Which of the following would be the correct null hypothesis if the company wishes to test the machine?
a. H o : x  14 ounces
b. H o :   14 ounces
c. H o :   14 ounces
d. H o : x  14 ounces
87. The R.D. Wilson Company makes a soft drink dispensing machine that allows customers to get soft
drinks from the machine in a cup with ice. When the machine is running properly, the average number of
fluid ounces in the cup should be 14. Periodically the machines need to be tested to make sure that they
have not gone out of adjustment. To do this, six cups are filled by the machine and a technician carefully
measures the volume in each cup. In one such test, the following data were observed:
Based on these sample data, which of the following is true if the significance level is .05?
a. No conclusion can be reached about the status of the machine based on a sample size
of only six cups.
b. The null hypothesis cannot be rejected since the test statistic is approximately t = .29 ,
which is not in the rejection region.
c. The null hypothesis can be rejected since the sample mean is greater than 14
d. The null can be rejected because the majority of the sample values exceed 14
88. A concern of Major League Baseball is that games last too long. Some executives in the league’s
headquarters believe that the mean length of games this past year exceeded 3 hours (180 minutes). To
test this, the league selected a random sample of 80 games and found the following results: x  193
minutes and s = 16 minutes.
Based on these results, if the null hypothesis is tested using an alpha level equal to 0.10, which of the
following is true?
a. The null hypothesis should be rejected if x  182.31.

b. The test statistic is t = 1.2924.
c. Based on the sample data, the null hypothesis cannot be rejected.
d. It is possible that when the hypothesis test is completed that a Type II statistical
error has been made.
89. When testing a two-tailed hypothesis using a significance level of 0.05, a sample size of n = 16, and
with the population standard deviation unknown, which of the following is true?
a. The null hypothesis can be rejected if the sample mean gets too large or too small
compared with the hypothesized mean.
b. The alpha probability must be split in half and a rejection region must be formed on
both sides of the sampling distribution.
c. The test statistic will be a t-value.
90. A major airline is concerned that the waiting time for customers at their ticket counter may be
exceeding their target average of 190 seconds. To test this, the company has selected a random sample
of 100 customers and times them from when the customer first arrives at the checkout line until he or she
is at the counter being served by the ticket agent. The mean time for this sample was 202 seconds with a
standard deviation of 28 seconds. Given this information and the desire to conduct the test using an alpha
level of 0.02, which of the following statements is true?
a. The chance of a Type II error is 1 - 0.02 = 0.98.

b. The test to be conducted will be structured as a two-tailed test.
c. The test statistic will be approximately t = 4.286, so the null hypothesis should be
rejected.
d. The sample data indicate that the difference between the sample mean and the
hypothesized population mean should be attributed only to sampling error.
91. A house cleaning service claims that they can clean a four bedroom house in less than 2 hours. A
sample of n = 16 houses is taken and the sample mean is found to be 1.97 hours and the sample standard
deviation is found to be 0.1 hours. Using a 0.05 level of significance the correct conclusion is
a. Reject the null because the test statistic (-1.2) is < the critical value (1.7531)
b. Do not reject the null because the test statistic (1.2) is > the critical value (-1.7531)
c. Reject the null because the test statistic (-1.7531) is < the critical value (-1.2)
d. Do not reject the null because the test statistic (-1.2) is > the critical value (-1.7531)
9-2 Hypothesis Tests for Proportions
92. Woof Chow Dog Food Company believes that it has a market share of 25%. They survey n = 100
dog owners and ask whether or not Woof Chow is their regular brand of dog food. The appropriate null
and alternate hypotheses are:
H o : p  .25
a.
H a : p  .25
H o :   .25
b.
H a :   .25
H o :   .25
c.
H a :   .25
H o :   .25
d.
H a :   .25
93. Woof Chow Dog Food Company believes that it has a market share of 25%. They survey n = 100
dog owners and ask whether or not Woof Chow is their regular brand of dog food, and 23 people say yes.
Based upon this information, what is the critical value if the hypothesis is to be tested at the 0.05 level of
significance?
a. 1.28
b. 1.645
c. 1.96
d. 2.575
94. Woof Chow Dog Food Company believes that it has a market share of 25%. They survey n = 100 dog
owners and ask whether or not Woof Chow is their regular brand of dog food, and 23 people say yes.
Based upon this information, what is the value of the test statistic?
a. -0.462
b. -0.475
c. 0.462
d. 0.475
95. After completing sales training for a large company, it is expected that the salesperson will generate
a sale on at least 15 percent of the calls he or she makes. To make sure that the sales training process is
working, a random sample of n = 400 sales calls made by sales representatives who have completed the
training have been selected and the null hypothesis is to be tested at 0.05 alpha level. Suppose that a sale
is made on 36 of the calls. Based on this information, what is the test statistic for this test?
b. About z = -3.35
c. z = -1.645
d. t = -4.567
96. After completing sales training for a large company, it is expected that the salesperson will generate a
sale on at least 15 percent of the calls he or she makes. To make sure that the sales training process is
working, a random sample of n = 400 sales calls made by sales representatives who have completed the
training have been selected and the null hypothesis is to be tested at 0.05 alpha level. Suppose that a sale
is made on 36 of the calls. Based on these sample data, which of the following is true?
a. The null hypothesis should be rejected since the test statistic falls in the lower tail
rejection region.
b. The null hypothesis is supported since the sample results do not fall in the rejection
region.
c. There is insufficient evidence to reject the null hypothesis and the sample proportion
is different from the hypothesized proportion due to sampling error.
d. It is possible that a Type II statistical error has been committed.
9-3 Type II Errors
97. Which of the following is not a required step in finding Beta?
a. Assuming a true value of the population parameter where the null is false
b. Finding the critical value based on the null hypothesis
c. Converting the critical value from the standard normal distribution to the units of the
data
d. Finding the power of the test
98. If the Type I error (  ) for a given test is to be decreased, then for a fixed sample size n:
a. the Type II error (  ) will also decrease.
b. the Type II error (  ) will increase.
c. the power of the test will increase.

d. a one-tailed test must be utilized.
99. For a given sample size n, if the level of significance (  ) is decreased, the power of the test:
a. will increase.
b. will decrease.
c. will remain the same.

d. cannot be determined.
100.The power of a test is measured by its capability of:
a. rejecting a null hypothesis that is true.
b. not rejecting a null hypothesis that is true.
c. rejecting a null hypothesis that is false.

d. not rejecting a null hypothesis that is false.
101. Which of the following will be helpful if the decision maker wishes to reduce the chance of making
a Type II error?
a. Increase the level of significance at which the hypothesis test is conducted.

b. Increase the sample size.
c. Both a and b will work.
d. Neither a nor b will be effective.
102. A consumer group plans to test whether a new passenger car that is advertised to have a mean
highway miles per gallon of at least 33 actually meets this level. They plan to test the hypothesis using a
significance level of 0.05 and a sample size of n = 100 cars. It is believed that the population standard
deviation is 3 mpg. Based upon this information, if the “true” population mean is 32.0 mpg, what is the
probability that the test will lead the consumer group to “accept” the claimed mileage for this car?
a. About 0.45
c. About 0.9545
deviation is 3 mpg. Based upon this information, what is the critical value in terms of miles per gallon
that would be needed prior to finding Beta?
a. 32.5065
b. 33.4935
c. 33.588
d. 32.412
104. Suppose we want to test H0 :   30 versus H1 :   30. Which of the following possible
sample results based on a sample of size 36 gives the strongest evidence to reject H0 in favor of H1?
a. X = 28, s = 6
b. X = 27, s = 4
c. X = 32, s = 2
d. X = 26, s = 9
105. A contract calls for the mean diameter of a cylinder to be 1.50 inches. As a quality check, each
day a random sample of n = 36 cylinders is selected and the diameters are measured. Assuming that the
population standard deviation is thought to be 0.10 inch and that the test will be conducted using an alpha
equal to 0.025, what would the probability of a Type II error be?
b. About 0.6789
c. 0.975
d. Can’t be determined without knowing the “true” population mean.
106. A company that sells an online course aimed at helping high-school students improve their SAT
scores has claimed that SAT scores will improve by more than 90 points on average if students
successfully complete the course. To test this, a national school counseling organization plans to select a
random sample of n = 100 students who have previously taken the SAT test. These students will take the
company’s course and then retake the SAT test. Assuming that the population standard deviation for
improvement in test scores is thought to be 30 points, and the level of significance for the hypothesis test
is 0.05, what is the probability that the counseling organization will incorrectly “accept” the null
hypothesis when, in fact, the true mean increase is actually 95 points?
b. About 0.492
c. Approximately 0.008
d. Can’t be determined without knowing the sample results.
107. A company that sells an online course aimed at helping high-school students improve their SAT
scores has claimed that SAT scores will improve by more than 90 points on average if students
successfully complete the course. To test this, a national school counseling organization plans to select a
random sample of n = 100 students who have previously taken the SAT test. These students will take the
company’s course and then retake the SAT test. Assuming that the population standard deviation for
improvement in test scores is thought to be 30 points, and the level of significance for the hypothesis test
is 0.05, find the critical value in terms of improvement in SAT points which would be needed prior to
finding a Beta.
a. reject the null if SAT improvement is > 95 points
b. reject the null if SAT improvement is < 85.065 points
c reject the null if SAT improvement is > 95.88 points
d. reject the null if SAT improvement is >94.935 points
108. A recent report in which a major pharmaceutical company released the results of testing that had
been done on the cholesterol reduction that people could expect if they use the company’s new drug
indicated that the Type II error probability for a given “true” mean was 0.1250 based on the sample size
of n = 64 subjects. Given this, what was the power of the test under these same conditions? The alpha
level used in the test was 0.05.
a. 0.95
b. 0.875
c. Essentially zero
d. Power would be undefined in this case since the hypothesis would be rejected.
109. If the hypothesis test you are conducting is a two-tailed test, which of the following is a possible
step that you could take to increase the power of the test?
a. Reduce the sample size

b. Increase alpha
c. Increase beta
d. use the t-distribution
deviation is 3 mpg. Based upon this information, if the “true” population mean is 32.0 mpg, what is the
probability that the test will lead the consumer group to reject the claimed mileage for this car?
a. About 0.075
c. 0.05
10-1 Estimation for Two Population Means Using Independent Samples
34. If a manager wishes to develop a confidence interval estimate for estimating the difference between
two population means, an increase in the size of the samples used will result in:
a. an increase in the size of the critical value.

b. a wider confidence interval.
c. a more precise confidence interval.
d. a less precise confidence interval
Answer: C (Easy)
Keywords: mean difference, population, confidence interval
35. If the population variances are assumed to be known in an application where a manager wishes to
estimate the difference between two population means, the 95% confidence interval estimate can be
developed using which of the following critical values:
a. z = 1.645.
b. z = 1.96.
c. t value that depends on the sample sizes from the two populations.
d. z = 2.575
Answer: B (Easy)
Keywords: mean difference, confidence interval, population, variance, critical value
36. A company in Maryland has developed a device that can be attached to car engines which they
believe will increase the miles per gallon that cars will get. The owners are interested in estimating
the difference between mean mpg for cars using the device versus those that are not using the device.
The following data represent the mpg for independent random samples of cars from each population.
The variances are assumed equal and the populations normally distributed.
Given this data, what is the critical value if the owners wish to have a 90 percent confidence interval
estimate?
a. t = 2.015
b. t = 1.7823
c. z = 1.645
d. z = 1.96
Answer: B (Moderate)
Keywords: mean difference, confidence interval, critical value
37. A company in Maryland has developed a device that can be attached to car engines, which they
believe will increase the miles per gallon that cars will get. The owners are interested in estimating
the difference between mean mpg for cars using the device versus those that are not using the device.
The following data represent the mpg for random independent samples of cars from each population.
The variances are assumed equal and the populations normally distributed.
Given this data, what is the upper limit for a 95 percent confidence interval estimate for the difference in
mean mpg?
a. Approximately 3.88 mpg

b. About 5.44 mpg
c. Just under 25.0
Answer: B (Difficult)
Keywords: mean difference, confidence interval, population
38. When estimating a confidence interval for the difference between 2 means using the method where
sample variances are pooled, which of the following assumptions is not needed?
a. the populations are normally distributed.

b. the populations have equal variance
c. the samples are independent.
d. the sample sizes are equal
Answer: D (Moderate)
Keywords: mean difference, confidence interval, independent, variances unknown
39. A major retail clothing store is interested in estimating the difference in mean monthly purchases by
customers who use the store’s in-house credit card versus using a Visa, Mastercard, or one of the
other major credit cards. To do this, they have randomly selected a sample of customers who have
made one or more purchases with each of the types of credit cards. The following represents the
results of the sampling:
In-House Credit Card National Credit Card
Sample Size: 86 113
Mean Monthly Purchases: $45.67 $39.87
Standard Deviation: $10.90 $12.47
Based on these sample data, what is the lower limit for the 95 percent confidence interval estimate for the
difference between population means?
a. About $5.28
b. Approximately $4.85
c. Approximately $2.54
d. Approximately $3.41
Answer: C (Moderate)
Keywords: mean difference, confidence interval, population, lower limit
Sample Size: 86 113
Mean Monthly Purchases: $45.67 $39.87
Standard Deviation: $10.90 $12.47
Given this information, which of the following statements is true?
a. If either of the sample sizes is increased, the resulting confidence interval will have a
smaller margin of error.
b. If the confidence level were changed from 95 percent to 90 percent, the margin of
error in the estimate would be reduced.
c. Neither a nor b are true.
d. Both a and b are true.
Keywords: mean difference, confidence interval, population, margin of error
10-2 Hypothesis Tests for Two Population Means Using Independent Samples
Sample Size: 86 113
Sample Mean: $45.67 $39.87
Standard Deviation (σ): $10.90 $12.47
Suppose that the managers wished to test whether there is a statistical difference in the mean monthly
purchases by customers using the two types of credit cards, using a significance level of .05, what is the
value of the test statistic assuming the standard deviations are known?
a. t = 3.49
b. z = 11.91
c. z = 2.86
d. z = 3.49
Keywords: mean difference, known standard deviations, test statistic
42. If we are testing for the difference between the means of two independent populations with samples
of n1 = 20 and n2 = 20, the number of degrees of freedom is equal to:
a. 39.
b. 38.
c. 19.
d. 18.
Answer: B (Easy)
Keywords: mean difference, independent, degrees of freedom
43. Given the following information, calculate the degrees of freedom that should be used in the pooled-
standard deviation t-test.
s1 2 = 4 s2 2 = 6
n1 = 16 n2 = 25
a. df = 41
b. df = 39
c. df = 16
d. df = 25
Keywords: degrees of freedom, pooled, standard deviation, t-test
44. A recent study posed the question about whether Japanese managers are more motivated than
American managers. A randomly selected sample of each was administered the Sarnoff Survey of
Attitudes Toward Life (SSATL), which measures motivation for upward mobility. The SSATL scores
are summarized below.
American Japanese
Sample Size 211 100
Mean SSATL Score 65.75 79.83
Population Std. Dev. 11.07 6.41
Judging from the way the data were collected, which test would likely be most appropriate?
a. Related samples t-test for mean difference
b. Pooled-variance t-test for the difference in means
c. Independent samples Z-test for the difference in means
d. Related samples Z-test for mean difference
Answer: C (Easy)
Keywords: independent, samples, z-test, mean difference
45. A recent study posed the question about whether Japanese are managers more motivated than
American managers. A randomly selected sample of each was administered the Sarnoff Survey of
Attitudes Toward Life (SSATL), which measures motivation for upward mobility. The SSATL scores are
summarized below.
American Japanese
Sample Size 211 100
Mean SSATL Score 65.75 79.83
Population Std. Dev. 11.07 6.41
Which of the following is the correct the null and alternative hypotheses to determine if the average
SSATL score of Japanese managers differs from the average SSATL score of American managers?
a. H0 :  A –  J  0 versus H1 :  A –  J  0
b. H0 :  A –  J  0 versus H1 :  A –  J  0
c. H0 :  A –  J  0 versus H1 :  A –  J  0
d. H0 : XA – XJ  0 versus H1 : X A – XJ  0
Answer: C (Easy)
Keywords: null, alternative, hypothesis, mean difference
46. A commuter has two different routes available to drive to work. She wants to test whether route A is
faster than route B. The best hypotheses are:
a. Ho : μA - μB > 0
HA : μA - μB < 0
b. Ho : μA - μB < 0
HA : μA - μB > 0
c. Ho : μA - μB = 0
HA : μA - μB ≠ 0
d. Ho : μA - μB < 0
HA : μA - μB > 0
Answer: A (Moderate)
Keywords: independent, sample, hypotheses
47. In conducting a hypothesis test for the difference in two population means where the standard
deviations are known and the null hypothesis is:
Ho : μA - μB = 0
What is the p-value assuming that the test statistic has been found to be z = 2.52?
a. 0.0059
b. 0.9882
c. 0.0118
d. 0.4941
Keywords: mean difference, independent, sample, p-value
48. Under what conditions can the t-distribution be correctly employed to test the difference between two
population means?
a. When the samples from the two populations are small and the population variances
are unknown.
b. When the two populations of interest are assumed to be normally distributed.
c. When the population variances are assumed to be equal.
Keywords: variance, small sample, normal, t-distribution
49. A hypothesis test for the difference between two means is considered a two-tailed test when:
a. the population variances are equal.

b. the null hypothesis states that the population means are equal.
c. the alpha level is 0.10 or higher.
d. the standard deviations are unknown
Answer: B (Easy)
Keywords: mean difference, hypothesis, two-tailed, null
50. There have been complaints recently from homeowners in the north end claiming that their homes
have been assessed at values that are too high compared with other parts of town. They say that the
mean increase from last year to this year has been higher in their part of town than elsewhere. To test
this, the assessor’s office staff plans to select a random sample of north end properties (group 1) and a
random sample of properties from other areas within the city (group 2) and perform a hypothesis test.
Based on the information provided, the research (or alternate) hypothesis is:
a. 1   2 .
b. 1   2 .
c. 1   2 .
d. μ1 < μ2.
Keywords: independent, mean, research, alternate, hypothesis
have been assessed at values that are too high compare with other parts of town. They say that the
The following sample information is available:
North End Other

Sample Size 20 10
Sample Mean Increase $4,010 $3,845
Sample St. Deviation $1,800 $1,750
Assuming that the null hypothesis will be tested using an alpha level equal to 0.05, what is the value of
the test statistic?
a. z = 1.578
b. t = 1.7011
c. t = 0.2388
d. t = 0.3944
Keywords: test statistic, hypothesis, null, independent, mean
have been assessed at values that are too high compare with other parts of town. They say that the
The following sample information is available:
North End Other
Sample Size 20 Sample Size 10
Mean Increase $4,010 Mean Increase $3,845
St. Deviation $1,800 St. Deviation $1,750
Assuming that the null hypothesis will be tested using an alpha level equal to 0.05, what is the critical
value?
a. z = 1.578
b. t = 1.7011
c. t = 0.2388
d. t = 2.0484
Keywords: critical value, hypothesis, mean, independent
53. Assume that you are testing the difference in the means of two independent populations at the 0.05
level of significance. The null hypothesis is: Ho : μA - μB > 0 and you have found the test statistic is z
= -1.92. What should you conclude?
a. The mean of pop. A is greater than the mean of pop. B because p < α
b. The mean of pop. A is greater than the mean of pop. B because p > α
c. There is no significant difference in the two means because p > α
d. The mean of pop. B is greater than the mean of pop. A because p < α
Keywords: hypothesis, one tailed, mean, independent, p-value
54. The U.S. Golf Association provides a number of services for its members. One of these is the
evaluation of golf equipment to make sure that the equipment satisfies the rules of golf. For
example, they regularly test the golf balls made by the various companies that sell balls in the United
States. Recently they undertook a study of two brands of golf balls with the objective to see whether
there is a difference in the mean distance that the two golf ball brands will fly off the tee. To conduct
the test, the U.S.G.A. uses a robot named “Iron Byron,” which swings the club at the same speed and
with the same swing pattern each time it is used. The following data reflect sample data for a
random sample of balls of each brand.
Brand A: 234 236 230 227 234 233 228 229 230 238
Brand B: 240 236 241 236 239 243 230 239 243 240
Given this information, what is the test statistic for testing whether the two population means are equal?
a. F = 1.115
b. t = 1.96
c. t = -4.04
d. t = -2.58
Answer: C (Difficult)
Keywords: test statistic, mean, independent
10-3 Interval Estimation and Hypothesis Tests for Paired Samples
55. Most companies that make golf balls and golf clubs use a one-armed robot named “Iron Byron” to
test their balls for length and accuracy, but because of swing variations by real golfers, these test
robots don’t always indicate how the clubs will perform in actual use. One company in the golfing
industry is interested in testing its new driver to see how it compares with the best-selling driver. To
do this, they have selected a group of golfers of differing abilities and ages. Their plan is to have
each player use each of the two clubs and hit five balls. They will record the average length of the
drives with each club for each player. Given this description of the planned test, which of the
following statements is true?
a. The test won’t be meaningful if only five balls are hit by each player with each club.
b. The samples in this case are called paired samples since the same players are hitting
both golf clubs.
c. The test will be invalid unless different players are used to hit each club so that the
samples will be independent.
d. The samples are independent because each player is independent of the other players.
Answer: B (Easy)
Keywords: mean difference, paired
test their balls for length and accuracy, but because of swing variations by real golfers, these test
robots don’t always indicate how the clubs will perform in actual use. One company in the golfing
industry is interested in testing its new driver to see if has greater length off the tee than the best-
selling driver. To do this, they have selected a group of golfers of differing abilities and ages. Their
plan is to have each player use each of the two clubs and hit five balls. They will record the average
length of the drives with each club for each player. The resulting data for a sample of 10 players is:
Based on these sample data, what is the point estimate for the difference between the mean distance for
the new driver versus the leading driver?
a. 2.81
b. 1.55
c. – 3.45
d. 233.4
Keywords: mean difference, point estimate, paired
57. Suppose that a group of 10 people join a weight loss program for 3 months. Each person’s weight is
recorded at the beginning and at the end of the 3 month program. To test whether the weight loss
program is effective, the data should be treated as:
a. Independent samples using the normal distribution
b. paired samples using the t-distribution
c. independent samples using the t-distribution.
d. independent proportions
Answer: B (Easy)
Keywords: mean difference, population, independent, paired
58. The t-test for the mean difference between 2 related populations assumes that the respective:
a. sample sizes are equal.

b. sample variances are equal.
c. populations are approximately normal or sample sizes are large.
Keywords: mean difference, sample size, normal
59. If we are testing for the difference between the means of two paired populations with samples of n1
= 20 and n2 = 20, the number of degrees of freedom is equal to:
a. 39.
b. 38.
c. 19.
d. 18.
Answer: C (Easy)
Keywords: mean difference, population, paired, degrees of freedom
60. In testing for differences between the means of two paired populations, the null hypothesis is:
a. H 0 :  D  2 .
b. H 0 :  D  0 .
c. H 0 :  D  0 .
d. H 0 :  D  0 .
Answer: B (Easy)
Keywords: paired, mean difference, null, hypothesis
test their balls for length and accuracy, but because of swing variations by real golfers, these test robots
don’t always indicate how the clubs will perform in actual use. One company in the golfing industry is
interested in testing its new driver to see if it has greater length off the tee than the best-selling driver. To
do this, they have selected a group of golfers of differing abilities and ages. Their plan is to have each
player use each of the two clubs and hit five balls. They will record the average length of the drives with
each club for each player. The resulting data for a sample of 10 players are:
What is an appropriate null hypothesis to be tested?
a. H o : 1   2
b. H o : 1   2
c. H o :  d  0
d. Ho : μD = 0
Keywords: null, hypothesis, mean, paired
72. Most companies that make golf balls and golf clubs use a one-armed robot named “Iron Mike” to test
their balls for length and accuracy, but because of swing variations by real golfers, these test robots
don’t always indicate how the clubs will perform in actual use. One company in the golfing industry
is interested in testing its new driver to see if it has greater length off the tee than the best-selling
driver. To do this, they have selected a group of golfers of differing abilities and ages. Their plan is
to have each player use each of the two clubs and hit five balls. They will record the average length
of the drives with each club for each player. The resulting data for a sample of 10 players are:
What is the critical value for the appropriate hypothesis test if the test is conducted using a 0.05 level of
significance?
a. z = 1.645
b. t = 1.7341
c. t = 1.8331
d. t = 2.2622
Keywords: critical value, hypothesis, t-test, means, paired
11-1 Hypothesis Tests and Estimation for a Single Population Variance
42. An analyst plans to test whether the standard deviation for the time it takes bank tellers to provide
service to customers exceeds the standard of 1.5 minutes. The correct null and alternative hypotheses for
this test are:
H o :   1.5
a.
H A :   1.5
H o :   1.5
b.
H A :   1.5
H o :  2  2.25
c.
H A :  2  2.25
H o :  2  2.25
d.
H A :  2  2.25
Answer: C (Easy)
Keywords: null, alternative, hypothesis, chi-square, population variance
43. When a hypothesis test is to be conducted regarding a population variance, the test statistic will be:
a. a t-value from the t-distribution.

b. a  2 value from the chi-square distribution.
c. a z-value from the standard normal distribution.
d. a binomial distribution p value.
Answer: B (Easy)
Keywords: hypothesis, population, variance, test statistic, chi-square
44. If a hypothesis test for a single population variance is to be conducted using a significance level of
to 0.10, a sample size of n = 16, and the test is a one-tailed upper-tail test, the critical value is:
a. z = 1.28.
b. t = 1.345.
c.  2 = 22.3071.
d.  2 = 24.9958.
Keywords: hypothesis test, critical value, chi-square
45. When conducting a one-tailed hypothesis test of a population variance using a sample size of n = 24
and a 0.10 level of significance, the critical value is:
a. 32.0069
b. 35.1725
c. 33.1962
d. 36.4150
Keywords: hypothesis, variance, critical value
46. A potato chip manufacturer has found that in the past the standard deviation of bag weight has been
0.2 ounces. They want to test whether the standard deviation has changed. The null hypothesis is:
a. Ho : σ2 = 0.2
b. Ho : σ = 0.2
c. Ho : σ = 0.04
d. Ho : σ2 = 0.04
Keywords: test statistic, chi-square, null, variance, two-tailed
47. A fast food restaurant that sells burritos is concerned about the variability in the amount of filling
that different employees place in the burritos. To achieve product consistency they need this variability to
be no more than 1.7 ounces. A sample of n = 18 burritos showed a sample variance of 2.89 ounces.
Using a 0.10 level of significance, what can you conclude?
a. The standards are being met since (test statistic) < (critical value)
b. The standards are not being met since (test statistic) > (critical value)
c. The standards are being met since (test statistic) > (critical value)
d. The standards are not being met since (test statistic) < (critical value)
48. If a hypothesis test for a single population variance is to be conducted, which of the following
statements is true?
a. The null hypothesis must be stated in terms of the population variance.

b. The chi-square distribution is used.
c. If the sample size is increased, the critical value is also increased for a given level of
statistical significance.
49. A manufacturer of industrial plywood has a contract to supply a boat maker with a large amount of
plywood. One of the specifications calls for the standard deviation in thickness to not exceed .03 inches.
A sample of n = 30 sheets was sampled randomly from a recent production run. The mean thickness was
right at the ¾ inch target thickness and the sample standard deviation was .05 inches. Testing at the 0.05
level of significance, which of the following is true?
a. The test statistic is approximately 80.56.

b. The critical value is approximately  2 = 43.773.
c. The test statistic is approximately 48.333.
d. Based on the sample data, there is no evidence to suggest that the plywood is not meeting
the specifications.
50. To test the following hypotheses at the 0.05 level of significance, using a sample size of n = 15
Ho : σ2 = 0.05
HA : σ2 ≠ 0.05
What is the upper tail critical value?
a. 23.685
b. 24.996
c. 27.488
d. 26.119
51. A consulting report that was recently submitted to a company indicated that a hypothesis test for a
single population variance was conducted. The report indicated that the test statistic was 34.79, the
hypothesized variance was 345 and the sample variance 600. However, the report did not indicate what
the sample size was. What was it?
a. n = 100
b. Approximately n = 18
c. Approximately 21
d. Can’t be determined without knowing what alpha is.
52. Which of the following is the appropriate null hypothesis when testing whether two population
variances are equal?
a. H 0 :  12   22 .
b. H 0 :  12   22
c. H 0 :  12   22
d. H 0 :  12   22
53. Which distribution is used in testing the hypotheses about the equality of two population variances?
a. z-distribution
b. F-distribution
c.  2 distribution
d. t-distribution
54. It is believed that the SAT scores for students entering two state universities may have different
standard deviations. Specifically, it is believed that the standard deviation at University A is greater than
the standard deviation at University B. If a statistical test is to be conducted, which of the following
would be the proper way to formulate the null hypothesis?
a. H 0 :  A2   B2  0
b. H 0 :  A2   B2
c. H 0 :  A   B
d. H 0 :  A2   B2
the standard deviation at University B. To test this using an alpha = 0.05 level, a sample of 14 student
SAT scores from University A was selected and a sample of 8 SAT scores from University B was
selected. The following sample results were observed:
University A University B
x  1104 x  1254
s  134 s  108
Based on this information, what is the critical value that will be used to test the hypothesis?
a. F = 3.55
b. F = 2.832
c. z = 1.645
d. F = 3.237
the standard deviation at University B. To test this using an alpha = 0.05 level, a sample of 14 student
SAT scores from University A was selected and a sample of 8 SAT scores from University B was
selected. The following sample results were observed:
University A University B
x  1104 x  1254
s  134 s  108
Based on this information, what is the value of the test statistic?
a. 1.2407
b. 0.6496
c. 1.5394
57. The Russet Potato Company has been working on the development of a new potato seed that is
hoped to be an improvement over the existing seed that is being used. Specifically, the company hopes
that the new seed will result in less variability in individual potato length than the existing seed without
reducing the mean length. To test whether this is the case, a sample of each seed is used to grow potatoes
to maturity. The following information is given:
Old Seed New Seed
Number of Seeds = 11 Number of Seeds = 16
Average length = 6.25 inches Average length = 5.95 inches
Standard Deviation = 1.0 inches Standard Deviation = 0.80 inches
The correct null hypothesis for testing whether the variability of the new seed is less than the old seed is:
a. H 0 :  O2   N2 .
b. H 0 :  O2   N2 .
c. H 0 :  O   N .
d. H 0 :  O2   N2
58. The Russet Potato Company has been working on the development of a new potato seed that is hoped
to be an improvement over the existing seed that is being used. Specifically, the company hopes that the
new seed will result in less variability in individual potato length than the existing seed without reducing
the mean length. To test whether this is the case, a sample of each seed is used to grow potatoes to
maturity. The following information is given:
Old Seed New Seed
Number of Seeds = 11 Number of Seeds = 16
Average length = 6.25 inches Average length = 5.95 inches
Standard Deviation = 1.0 inches Standard Deviation = .80 inches
Based on these data, if the hypothesis test is conducted using a 0.05 level of significance, the calculated
test statistic is:
a. F = 1.25.
b. F = 0.80.
c. F = 0.64.
d. F = 1.56.
59. In performing a one-tailed test for the difference between two population variances, which of the
a. The level of alpha needs to be doubled before finding the F-critical value in the table.
b. The sample variance that is predicted to be larger in the alternative hypothesis goes
in the numerator when forming the F-test statistic.
c. You always place the larger of the two sample variances in the numerator.
d. The alternative hypothesis must contain the equality.
60. Two airlines are being compared with respect to the time it takes them to turn a plane around from
the time it lands until it takes off again. The study is interested in determining whether there is a
difference in the variability between the two airlines. They wish to conduct the hypothesis test using an
alpha = 0.02. If random samples of 20 flights are selected from each airline, what is the appropriate F
critical value?
a. 3.027
b. 2.938
c. 2.168
d. 2.124
61. A small business owner has two fast food restaurants. The owner wants to determine if there is any
difference in the variability of service times at the drive-thru window of each restaurant. A sample of size
n = 9 is taken from each restaurant’s drive-thru window. To perform a hypothesis test using the 0.05
level of significance the critical value is:
a. 3.438
b. 3.197
c. 4.026
d. 4.433
62. The U.S. Golf Association provides a number of services for its members. One of these is the
evaluation of golf equipment to make sure that the equipment satisfies the rules of golf. For example,
they regularly test the golf balls made by the various companies that sell balls in the United States.
Recently, they undertook a study of two brands of golf balls with the objective to see whether there is a
difference in the mean distance that the two golf ball brands will fly off the tee. To conduct the test, the
U.S.G.A. uses a robot named “Iron Byron,” which swings the club at the same speed and with the same
swing pattern each time it is used. The following data reflect sample data for a random sample of balls of
each brand.
Brand A: 234 236 230 227 234 233 228 229 230 238
Brand B: 240 236 241 236 239 243 230 239 243 240
Given this information, what is the test statistic for testing whether the two population variances are
equal?
a. Approximately F = 1.145
b. t = 1.96
c. t = -4.04
71. Which of the following is an assumption for the one-way analysis of variance experimental
design?
a. All populations are normally distributed.

b. The populations have equal variances.
c. The observations are independent.
72. A hotel chain has four hotels in Oregon. The general manager is interested in determining whether
the mean length of stay is the same or different for the four hotels. She selects a random sample of n = 20
guests at each hotel and determines the number of nights they stayed. Assuming that she plans to test this
using an alpha level equal to 0.05, which of the following is the correct critical value?
a. F = 3.04
b. F = 2.76
c. t = 1.9917
d. F = 2.56
73. A hotel chain has four hotels in Oregon. The general manager is interested in determining whether
the mean length of stay is the same or different for the four hotels. She selects a random sample of n = 20
guests at each hotel and determines the number of nights they stayed. Assuming that she plans to test this
using an alpha level equal to 0.05, which of the following is the appropriate alternative hypothesis?
a. H o : 1   2   3   4
b. H o : 1   2   3   4
c. Not all population means are equal.
d. σ1 = σ2 = σ3 = σ4
74. The State Transportation Department is thinking of changing its speed limit signs. They are
considering two new options in addition to the existing sign design. At question is whether the three sign
designs will produce the same mean speed. To test this, the department has conducted a limited test in
which a stretch of roadway was selected. With the original signs up, a random sample of 30 cars was
selected and the speeds were measured. Then, on different days, the two new designs were installed, 30
cars each day were sampled, and their speeds were recorded. Suppose that the following summary
statistics were computed based on the data:
x1  62.1 x 2  58.94 x3  71.2
Based on these sample results and significance level equal to 0.05, what is the critical value for this
hypothesis test?
a. F = approximately 3.15
b. F = approximately 4.90
c. F = approximately 29.47
d. F = approximately 2.70
x1  62.1 x 2  58.94 x3  71.2
The appropriate test to conduct to determine if the population means are equal is:
a. Hartley’s F-max test.

b. one-way analysis of variance
c. three sample t-test.
b. randomized complete block analysis of variance.
x1  62.1 x 2  58.94 x3  71.2

SST = 6016
Based on these sample results and significance level equal to 0.05, the sum of squares between is:
a. approximately 3,586.
b. approximately 2,430.
c. approximately 1,215.
77. In conducting a one-way analysis of variance where the test statistic is less than the critical value,
which of the following is correct.
a. Conclude that the means are not all the same and that that the Tukey-Kramer
procedure should be conducted
b. Conclude that the means are not all the same and that that the Tukey-Kramer
procedure is not needed
c. Conclude that all means are the same and that the Tukey-Kramer procedure should
be conducted
d. Conclude that all means are the same and there is no need to conduct the Tukey-
Kramer procedure.
78. In comparing the average price of gasoline in 4 different cities, it is desired to check the assumption
of equal variances using the Hartley test.
s1 = 0.12 s2 = 0.07 s3 = 0.15 s4 = 0.09
The value of the test statistic for the Hartley test is:
a. 1.25
b. 1.56
c. 2.14
d. 4.59
x1  62.1 x 2  58.94 x3  71.2

SST = 6016
Based on these sample results and a significance level equal to 0.05, assuming that the null hypothesis of
equal means has been rejected, the Tukey-Kramer critical range is:
a. 1.96.
b. approximately 4.0.
c. Can’t be determined without more information.
80. Prior to conducting a one-way analysis of variance test, it is a good idea to test to see whether the
population variances are equal. One method for doing this is to use:
a. Hartley’s F-max test.

b. an F-test for variances.
c. a chi-square test.
d. the Tukey-Kramer procedure.
81. In a one-way analysis of variance test in which the levels of the factor being analyzed are randomly
selected from a large set of possible factors, the design is referred to as:
a. a fixed-effects design.
b. a random-effects design.
c. an undetermined results design.
d. a balanced design
82. An Internet service provider is interested in testing to see if there is a difference in the mean weekly
connect time for users who come into the service through a dial-up line, DSL, or Cable Internet. To test
this, the ISP has selected random samples from each category of user and recorded the connect time
during a week period. The following data were collected:
Which of the following would be the correct alternative hypotheses for the test to be conducted?
a. H o :1   2   3
b. H o : 1   2   3
c. Not all population means are equal.
d. σ1 = σ2 = σ3 = σ4
Assuming that the test is to be conducted at a 0.01 level of significance, what would the critical value be
for this test?
a. F = 1.93
b. F = 3.555
c. t = 2.8784
d. F = 6.013
84. Assume you are conducting a one-way analysis of variance using a 0.05 level of significance and have
found that the p-value = 0.02. Which of the follow is correct regarding what you can conclude?
a. Do not reject the null hypothesis; the means are all the same
b. Reject the null hypothesis; the means are not all the same
c. Do not reject the null hypothesis; the means are not all the same
d. Reject the null hypothesis; the mean are all the same
Based upon these data and a significance level of 0.05, which of the following statements is true?
a. The F-critical value for the test is 3.555.

b. The test statistic is approximately 43.9.
c. The null hypothesis should be rejected and the mean connect times for the three
user categories are not equal.
86. A fast food chain operation is interested in determining whether the mean per customer purchase
differs by day of the week. To test this, they have selected random samples of customers for each day of
the week. The analysts then ran a one-way analysis of variance generating the following output:
Based upon this output, which of the following statements is true if the test is conducted at the 0.05 level
of significance?
a. The null hypothesis that population means are equal should be rejected.
b. Based upon Hartley’s F-test, we can reject the hypothesis that the population
variances are equal.
c. There is justification for applying the Tukey-Kramer method for multiple
comparisons.
d. The experiment is a balanced design.
87. A fast food chain operation is interested in determining whether the mean per customer purchase
differs by day of the week. To test this, they have selected random samples of customers for each day of
the week. The analysts then ran a one-way analysis of variance generating the following output.
Based upon this output, which of the following statements is true if the test is conducted at the 0.05 level
of significance?
a. There is no basis for concluding that mean sales is different for the different days of
the week.
b. Based on the p-value, the null hypothesis should be rejected since the p-value
exceeds the alpha level.
c. The experiment is conducted as an imbalanced design.
d. Based on the critical value, the null should be rejected
88. In order for a one-way analysis of variance to be considered a balanced design, which of the
following must hold?
a. The population variances must be equal.

b. The sample sizes selected from each population must be equal.
c. The study must have the same number of rows as it does columns.
89. In a one-way design, which of the following is true?
a. The populations must have equal means.

b. The sample sizes must be equal.
c. The mean squares between will be larger than the mean squares within if the null
hypothesis is rejected.
d. The sample sizes must all differ
90. In a one-way ANOVA, which of the following is true?
a. The degrees of freedom associated with the between sum of squares is equal to one
less than the number of populations.
b. The critical value will be an F-value from the F distribution.
c. If the null hypothesis is rejected, it may still be possible that two or more of the
population means are equal.
91. Which of the following describes a treatment in a randomized complete block analysis of variance?
a. A treatment is a combination of one level of each factor.

b. A treatment is a level associated with each factor of the experiment.
c. A treatment is another term for the data that are collected in the experiment.
d. A treatment is considered to be the analysis that is performed on the sample data.
92. In a randomized complete block design analysis of variance, how many factors are there to be
analyzed?
a. Depends on the sample size in each treatment

b. One factor, but multiple levels
c. Two factors
d. Can’t be determined without additional information.
93. In a randomized complete block design analysis of variance, which of the following correctly
describes the number of degrees of freedom associated with the between sum of squares?
a. One less than the number of populations involved

b. One less than the number of blocks
c. One less than the combined sample size in the experiment
d. One less than the total number of observations
94. A test is conducted to compare three difference income tax software packages, to determine whether
there is any difference in the average time it takes to prepare income tax returns using the three different
software packages. Ten different people’s income tax returns are done by each of the three software
packages and the time is recorded for each. Which of the following is true?
a. The total degrees of freedom is 30.

b. The between blocks degrees of freedom is 2.
c. The between samples degrees of freedom is 2.
d. The three software packages are the blocks.
packages and the time is recorded for each. Assuming that results show that blocking was effective, this
means that:
a. There are significant differences in the average times needed by the 3 different
software packages
b. There are significant differences in the average times needed for the 10 different
people’s tax returns
c. The analysis should be redone using a one-way analysis of variance
d. the randomized complete block was the wrong method to use
96. Recently, a department store chain was interested in determining if there was a difference in the mean
number of customers who enter the three stores in Seattle. The analysts set up a study in which the
number of people entering the stores was counted depending on whether the day of the week was
Saturday, Sunday, or a weekday. The following data were collected:
Given this format, which of the following is true?
a. The day of the week would be considered the blocking factor in the study.
b. There are six treatments.
c. This is a balanced design since the number of rows and columns is equal.
97. Recently, a department store chain was interested in determining if there was a difference in the
mean number of customers who enter the three stores in Seattle. The analysts set up a study in which the
Given this format, what is the null hypothesis for testing whether blocking is effective?
a. H o :  A   B  C
b. H o :  Sat   Sun  Week
c. Not all means are equal.
d. Ho : σ1 = σ2 = σ3
98. Recently, a department store chain was interested in determining if there was a difference in the
mean number of customers who enter the three stores in Seattle. The analysts set up a study in which the
Given this format and testing using an alpha level equal to 0.05, which of the following statements is
true?
a. The total degrees of freedom is 9

b. The between blocks degrees of freedom equals 8
c. The between samples degrees of freedom equals 3
d. The within sample degrees of freedom equals 4
packages and the time is recorded for each. Given this format and testing using an alpha level equal to
0.05, the critical value associated with the primary hypothesis test is:
a. 3.555
b. 2.456
c. 19.385
d. 4.256
100. A major consumer group recently undertook a study to determine whether automobile customers
would rate the quality of cars differently that were manufactured in the U.S., Europe, or Japan. To
conduct this test, a sample of 20 individuals was asked to look at mid-range model cars made in each of
the three countries. The individuals in the sample were then asked to provide a rating for each car on a
scale of 1 to 1000. The following computer output resulted, and the tests were conducted using a
significance level equal to 0.05.
Based upon the data, which of the following statements is true?
a. Blocking was effective.

b. Blocking was not effective.
c. The primary null hypothesis should not be rejected.
d. The averages for the 20 people are not all the same
101. The golf ball manufacturer has three dimple patterns it is interested in analyzing to see whether one
results in longer driving distances. However, they also wish to control for the material the ball is made
from since they believe that it might affect driving distance. Four materials can be used. The following
data represent the results of tests in which each combination of dimple pattern and cover material were
used and the length of the ball hit by a robot has been recorded. The test will be conducted using an alpha
= 0.05 level.
Given these data, which of the following statements is true?
a. There is no basis for concluding that mean driving distance is different for the
different dimple patterns.
b. There is no basis for concluding that mean driving distance is different for the
different cover materials.
c. Both a and b are true.
d. Neither a nor b are true.
102. The golf ball manufacturer has three dimple patterns it is interested in analyzing to see whether one
results in longer driving distances. However, they also wish to control for the material the ball is made
from since they believe that it might affect driving distance. Four materials can be used. The following
data represent the results of tests in which each combination of dimple pattern and cover material were
used and the length of the ball hit by a robot has been recorded. The test will be conducted using an alpha
= 0.05 level.
Given these data, what is the value of Fisher’s Least Significant Difference critical value?
b. 2.4469
c. About 7.65
103. A large orchard owner in the state of Washington is interested in determining whether the mean
number of bushels of peaches per acre is the same or different depending on the type of tree that is used.
He also thinks that production may be affected by the type of fertilizer that is used. To test, he has set up a
test in which a one-acre plot of peach trees with a combination each of 5 varieties and three fertilizer
types are studied. In this case, the number of treatments is:
a. 5.
b. 3.
c. 15.
d. Can’t be determined without knowing how many trees are planted on each acre.
types are studied. The following data reflect the number of bushels of peaches on each acre plot.
Assuming that the hypothesis tests will be conducted using an alpha equal 0.05 level, which of the
following is true?
a. The total sum of squares is approximately 4,570,900.

b. The grower was justified in controlling for the fertilizer type since the test shows that
blocking was effective.
c. Based on the data, the grower can conclude that there is a difference in mean
production of peaches across the different types of tree.
d. A, b and c are all true.
types are studied. The following data reflect the number of bushels of peaches on each acre plot.
Assuming that the hypothesis tests will be conducted using an alpha equal 0.05 level, what is the value of
the Fisher’s LSD critical value for doing the multiple comparisons?
b. About 11.30
c. Approximately 186.7
d. Need to know the number of trees planted on each acre
106. A car company is interested in testing to see whether the mean miles that a car engine will last
without changing oil is the same or different depending on which brand of oil is used. The engineers also
wish to control for the type of transmission (manual or automatic) that is used. To conduct this test, the
car company obtains enough engines so that all four oil brands can be tested in a design that involves no
replication. Based on this information, how many engines will be needed to conduct the test?
a. 4
b. 8
c. One for each oil type
d. One for each factor in the study
packages and the time is recorded for each. The computer results are shown below.
SUMMARY Count Sum Average Variance
1 3 9 3 1
2 3 30 10 1
3 3 12 4 0
4 3 6.5 2.166667 0.583333
5 3 25 8.333333 2.333333
6 3 7 2.333333 1.083333
7 3 10 3.333333 0.333333
8 3 18 6 1
9 3 33.5 11.16667 0.583333
10 3 4.5 1.5 0.25
Software A 10 47.5 4.75 12.95833

Software B 10 47.5 4.75 10.79167
Software C 10 60.5 6.05 13.46944
ANOVA
Source of
Variation SS df MS F P-value F crit
Rows 329.9083 9 36.65648 130.227 1.6E-14 2.456281

Columns 11.26667 2 5.633333 20.01316 2.66E-05 3.554557
Error 5.066667 18 0.281481
Total 346.2417 29
Based on these results and using a 0.05 level of significance which is correct regarding blocking?
a. Blocking was not effective because p = 2.66 is greater than 0.05

b. Blocking was effective because p = 2.66E-5 is less than 0.05
c. Blocking was not effective because p = 1.6 is greater than 0.05
d. Blocking was effective because p = 1.6E-14 is less than 0.05
108. A test is conducted to compare three difference income tax software packages, to determine
whether there is any difference in the average time it takes to prepare income tax returns using the three
different software packages. Ten different people’s income tax returns are done by each of the three
software packages and the time is recorded for each. The computer results are shown below.
1 3 9 3 1
2 3 30 10 1
3 3 12 4 0
4 3 6.5 2.166667 0.583333
5 3 25 8.333333 2.333333
6 3 7 2.333333 1.083333
7 3 10 3.333333 0.333333
8 3 18 6 1
9 3 33.5 11.16667 0.583333
10 3 4.5 1.5 0.25
Software A 10 47.5 4.75 12.95833

Software B 10 47.5 4.75 10.79167
Software C 10 60.5 6.05 13.46944
ANOVA
Source of
Rows 329.9083 9 36.65648 130.227 1.6E-14 2.456281

Columns 11.26667 2 5.633333 20.01316 2.66E-05 3.554557
Error 5.066667 18 0.281481
Total 346.2417 29
Based on these results and using a 0.05 level of significance which is correct regarding the primary
hypothesis?
a. The three software packages are not all the same because p = 1.6E-14 is less than 0.05
b. The three software packages are all the same because p = 1.6 is greater than 0.05
c. The three software packages are not all the same because p = 2.66E-5 is less than 0.05
d. The three software packages are all the same because p = 2.66 is greater than 0.05
109. A test is conducted to compare three difference income tax software packages, to determine
whether there is any difference in the average time it takes to prepare income tax returns using the three
different software packages. Ten different people’s income tax returns are done by each of the three
software packages and the time is recorded for each. The computer results are shown below.
1 3 9 3 1
2 3 30 10 1
3 3 12 4 0
4 3 6.5 2.166667 0.583333
5 3 25 8.333333 2.333333
6 3 7 2.333333 1.083333
7 3 10 3.333333 0.333333
8 3 18 6 1
9 3 33.5 11.16667 0.583333
10 3 4.5 1.5 0.25
Software A 10 47.5 4.75 12.95833

Software B 10 47.5 4.75 10.79167
Software C 10 60.5 6.05 13.46944
ANOVA
Source of
Rows 329.9083 9 36.65648 130.227 1.6E-14 2.456281

Columns 11.26667 2 5.633333 20.01316 2.66E-05 3.554557
Error 5.066667 18 0.281481
Total 346.2417 29
Assuming that the hypothesis tests are conducted using a significance level equal to 0.05, the Fisher’s
LSD value for multiple comparisons is:
a. approximately 0.4985
b. about 0.91
c. approximately 1.91
d. about 0.5387
110. A car company is interested in testing to see whether the mean miles that a car engine will last
without changing oil is the same or different depending on which brand of oil is used. The engineers also
wish to control for the type of transmission (manual or automatic) that is used. To conduct this test, the
car company obtains enough engines so that all four oil brands can be tested in a design that involves no
replication. The following data reflect the miles the engine lasted until problems were encountered.
Data are in thousands of miles.
Assuming that the hypothesis tests are conducted using a significance level equal to 0.05, which of the
a. Based on the data, Oil 1 and Oil 3 give statistically more miles on average than do
the other two oils.
b. The type of transmission does seem to have an impact on the mean miles that an
engine will last.
c. The F-critical value for testing whether blocking is effective is 10.128.
111. Which type of ANOVA can include interaction?
a. one-way
b. randomized complete block
c. two-factor
d. all types of ANOVA
112. Which of the following is the minimum number of required replications per cell for a two-factor
ANOVA design if you plan to test for interactive effects between factors A and B?
a. 3
b. 1
c. 2
d. 5
113. Considering the following printout from a two-factor ANOVA design, how many levels of factor A
(Sample) were there in this study?
a. 4
b. 3
c. 2
d. 6
114. Considering the following printout for a two-factor ANOVA design, which of the following is a
proper conclusion to reach?
a. There is no significant interaction between the two factors.

b. The levels of factor A (Sample) have significantly different means.
c. The levels of factor B (Columns) have significantly different means.
d. The total number of observations is 47
115. Considering the following printout for a two-factor ANOVA study, which of the following is the
number of replications used?
a. 2
b. 5
c. 4
116. A national car rental company recently conducted a study recently in which cars with automatic and
standard transmissions (factor A – Sample) were rented to male and female customers (factor B –
Columns). Three customers in each category were randomly selected and the miles driven per day was
recorded as follows:
Based on the design of this study, how many degrees of freedom will be associated with the mean square
for factor A?
a. 1
b. 2
c. 3
d. 8
117. A national car rental company recently conducted a study recently in which cars with automatic and
standard transmissions (factor A – Sample) were rented to male and female customers (factor B –
Columns). Three customers in each category were randomly selected and the miles driven per day was
recorded as follows:
Based on these sample data, and alpha = .05, which of the following statements is true?
a. The means for factor A are significantly different.

b. There is no significant interaction between factors A and B.
c. The means for factor B are significantly different.
d. All of the above statements are true.
118. A two factor analysis of variance is conducted to test the effect the price and advertising have on
sales of a particular brand of bottled water. Each week a combination of particular levels of price and
advertising are used and the sales level is recorded. The computer results are shown below.
ANOVA
Source of Variation SS df MS F P-value F crit
Sample
(advertising) 99.73324 1 99.73324 5.251652 0.034201 4.413873
Columns (price) 1150.432 2 575.2161 30.28914 1.74E-06 3.554557
Interaction 1577.526 2 788.7629 41.53387 1.8E-07 3.554557
Within 341.835 18 18.99083
Total 3169.526 23
How many replications were used in this study?
a. 2
b. 3
c. 4
d. 5
119. A two factor analysis of variance is conducted to test the effect the price and advertising have on
advertising are used and the sales level is recorded. The computer results are shown below.
ANOVA
Sample
(advertising) 99.73324 1 99.73324 5.251652 0.034201 4.413873
Columns (price) 1150.432 2 575.2161 30.28914 1.74E-06 3.554557
Interaction 1577.526 2 788.7629 41.53387 1.8E-07 3.554557
Within 341.835 18 18.99083
Total 3169.526 23
Based on the results above, which of the following is correct?
a. 1 level of advertising and 2 levels of price were used

b. 3 levels of adverting and 2 levels of price were used
c. 2 levels of advertising and 3 levels of price were used
d. There was a total of 6 different treatments
120. A two factor analysis of variance is conducted to test the effect that price and advertising have on
advertising are used and the sales amount is recorded. The computer results are shown below.
ANOVA
Sample
(advertising) 99.73324 1 99.73324 5.251652 0.034201 4.413873
Columns (price) 1150.432 2 575.2161 30.28914 1.74E-06 3.554557
Interaction 1577.526 2 788.7629 41.53387 1.8E-07 3.554557
Within 341.835 18 18.99083
Total 3169.526 23
Based on the results above and a 0.05 level of significance, which of the following is correct?
a. There is no interaction between price and advertising, so results for individual

factors may be misleading
b. There is interaction between price and advertising, so the above results for
individual factors may be misleading
c. There is no interaction between price and advertising, and both factors
significantly affect sales
d. There is interaction between price and advertising, so the above results
conclusively show that both factors affect price
57. If you are interested in testing whether the median of a population is equal to a specific
value, an appropriate test to use is:
a. the Mann-Whitney U test.

b. the t-test.
c. the Wilcoxon signed rank test.
d. the Wilcoxon Matched-Pairs Signed Rank test.
58. Nonparametric statistical tests are used when:
a. the sample sizes are small.

b. we are unwilling to make the assumptions of parametric tests.
c. the standard normal distribution can not be computed.
d. the population parameters are unknown
59. Which of the following is not a step involved in the Wilcoxon signed rank test?
a. Find the deviations from the hypothesized median

b. Rank the deviations
c. Convert the deviations to absolute values
d. Find the deviations from the sample median
60. The Wilcoxon signed rank test is used to test which of the following type of hypotheses?
a. Tests about a single population median

b. Tests involving three or more population medians
c. Tests about the variances of two or more populations
d. Tests about two or more population proportions
61. The General Electric service department believes that the median time for a service call
should be 30 or fewer minutes. To test this, the following random sample of service times was
collected:
Given that the managers do not wish to make the assumption that the population is normally
distributed, the appropriate statistical test for testing about service times is:
a. the t-test.
b. the Kruskal-Wallis test.
c. the Wilcoxon signed rank sum test.
d. the F-test.
collected:
distributed, the critical value for the test about median service times, using a .05 level of
significance, is:
a. 5
b. 40
c. 8
d. 37
collected:
distributed, the test statistic for the Wilcoxon signed rank sum test is:
a. W = 43.0.
b. W = 27.0.
c. W = 18.0.
64. In the finding the critical value for the Wilcoxon signed rank test, what does “n” represent?
a. The number of observations in the sample

b. The number of pairs
c. The number of nonzero deviations
d. The number of positive ranks
65. When the Mann-Whitney U test is performed, which of the following is true?
a. We assume that the populations are normally distributed.
b. We are interested in testing whether the medians from two populations are equal.
c. The data are nominal level.
d. The samples are paired
66. Which of the following is not an assumption of the Mann-Whitney U test?
a. The sample sizes are equal
b. The samples are independent
c. The value measured is continuous
d. The population distributions are the same for shape and spread
67. Consider the situation in which a study was recently conducted to determine whether the
median price of houses is the same in Seattle and Phoenix. The following data were collected.
Given these data, if a Mann-Whitney U test is to be used, the sum of the ranks for Seattle is:
a. 43
b. 35
c. 25.5
d. 40
Given these data, if a Mann-Whitney U test is to be used, the U statistic for Phoenix is:
a. 14
b. 22
c. 35
d. 27
Given these data, if a Mann-Whitney U test is to be used, the U statistic for Seattle is:
a. 45
b. 35
c. 22
d. 14
Given these data, if a Mann-Whitney U test is to be used, the test statistic is:
a. 22
b. 14
c. approximately 1.96.
d. 34
71. Under what circumstances should the standard normal distribution be used when employing
the Mann-Whitney U test?
a. When the sample sizes are equal from the two populations.
b. When the sample sizes are greater than 20.
c. When the populations are normally distributed.
d. You would never use the standard normal distribution.
72. Consider the situation in which a human resources manager wishes to determine whether the
median number of days of sick leave per year is the same for female employees as for male
employees. The following data represent random samples of males and females:
If the manager is unwilling to assume that the populations are normally distributed, which of the
following would be the appropriate null hypothesis to be tested?
a. H o :   0
b. H o : ~  0
c. H o :  1   2
d. H o : ~1  ~ 2
73. Assume you are conducting a two-tailed Mann Whitney U test for a small sample and have
found that U1 = 58 and U2 = 86. What is the value of the test statistic?
a. 58
b. 86
c. 72
d. 144
74. Consider the situation in which a human resources manager wishes to determine whether the
median number of days of sick leave per year is greater for female employees than for male
employees. The following data represent random samples of males and females:
If the manager is unwilling to assume that the populations are normally distributed, which of the
following is the correct conclusion to reach if the test is conducted using a .05 level of
significance?
a. Reject the null hypothesis.

b. Conclude that females do have a higher median than males.
c. Do not reject the null hypothesis.
d. Conclude that males have a higher median than females.
75. In a large sample Mann-Whitney U test in which the sample size from the first population is
30 and the sample size from the second population is 40, which of the following is the expected
U value if the null hypothesis of equal median values is true?
a. 1,200
b. 70
c. 35
d. 600
76. Recently, a legislative committee commissioned a study of incomes in a western state. At
issue was whether the ratings of the legislature’s performance differed between rural citizens
and city residents. A random sample of 25 city residents and 35 rural residents was asked to rate
the performance of the legislature on a scale of 1 to 100. The analysts believe that the population
distribution of ratings would be highly skewed so they decided to use the Mann-Whiney U test to
test whether there is a difference in median ratings by the two groups. Given this information,
which of the following is the correct critical value if the test is to be conducted at the .10 level of
significance?
a. z = 1.96
b. t = 2.0357
c. U = 437.5
d. z = 1.645
77. Assume that you are conducting a small sample Mann-Whitney U test where n1 = 14 and n2
= 16 and that U1 = 98. Assuming that U1 has been found correctly, what is the value of U2?
a. 112
b. 126
c. 224
d. Insufficient information to determine U2
78. If we wish to test whether two related populations have equal medians, an appropriate
nonparametric test to use is:
a. the Mann-Whitney U test.

b. the Kruskal-Wallis test.
c. the Wilcoxon signed rank test.
d. the Wilcoxon matched-pairs signed rank test.
79. If a two-tailed Wilcoxon Matched-Pairs Signed Rank test is conducted for a sample of n = 8
and an alpha level equal to .05, the critical value is:
a. 4.
b. 1.96.
c. 30.
d. 2
80. The Mann-Whitney U test assumes that the 2 samples are:
a. equal in size.
b. independent and random.
c. matched or paired.
d. normally distributed
81. The Wilcoxon matched-pairs signed rank test assumes that the two samples are:
a. equal in size
b. independent and random
c. paired
d. both a and c
82. When employing a small sample Mann-Whitney U test for a two-tailed test, which of the following is
true?
a. The sample sizes need to be equal.
b. Select as the test statistic the smaller of the two U values.
c. Select either of the U values to be the test statistic.
d. The alpha level should be doubled.
83. If a Mann-Whitney U test was performed and U1 = 50 and U2 = 40, if the sample from population 1
was 10, the sample size from population 2 was:
a. 10.
b. 15.
c. 9.
84. In conducting a Kruskal-Wallis one-way analysis of variance, the test statistic is assumed have
approximately which distribution when the null hypothesis is true?
a. A t-distribution
b. An F-distribution
c. A normal distribution
d. A chi-square distribution
85. Which of the following is not an assumption of the Kruskal-Wallis one-way analysis of variance?
a. Variables have a continuous distribution
b. Samples are independent
c. Sample sizes are equal for all populations
d. Population distributions are identical except for possible differences in center
86. The Kruskal-Wallis test is usually limited to comparing sample values from _________ or more
populations.
a. 2
b. 3
c. 4
d. 5
87. In a Kruskal-Wallis test when ties occur, each observation is given the _____________ for which it is
tied.
a. highest rank
b. lowest rank
c. mean rank
d. median rank
88. Assume that 4 populations are to be compared using a Kruskal-Wallis one-way analysis of variance.
What is the critical value using a 0.05 level of significance?
a. 5.9915
b. 6.2514
c. 7.8147
d. 9.4877
89. Assume that a Kruskal-Wallis test is being conducted to determine whether or not the
medians of three populations are equal. The sum of rankings and the sample size for each group
are below.
Group 1 Group 2 Group 3
R1 = 60 R2 = 36 R3 = 24
n1 = 6 n2 = 5 n3 = 4
What is the value of the test statistic?
a. 7.8147
b. 2.16
c. 48.68
d. 12.59
90. Assume that a Kruskal-Wallis test is being conducted to determine whether or not the
medians of three populations are equal. The sum of rankings and the sample size for each group
are below.
Group 1 Group 2 Group 3
R1 = 60 R2 = 36 R3 = 24
n1 = 6 n2 = 5 n3 = 4
What is the critical value for this test using a 0.10 level of significance ?
a. 6.2514
b. 5.9915
c. 7.8147
d. 4.6052
91. If we are interested in testing to determine whether the center of three or more populations is equal
when the data in the samples are ordinal, what is the appropriate test to conduct?
a. A t-test
b. An ANOVA
c. A Kruskal-Wallis
d. A Wilcoxon Matched-Pairs Sign Rank test

92. A survey was recently conducted in which random samples of car owners of Chrysler, GM,
and Ford cars were surveyed to determine their satisfaction. Each owner was asked to rate
overall satisfaction on a scale of 1 (poor) to 1000 (excellent). The following data were recorded:
If the analysts are not willing to assume that the population ratings are normally distributed and
will use the Kruskal-Wallis test to determine if the three companies have different median
ratings, which company has the smallest sum of ranks?
a. Chrysler
b. GM
c. Ford
d. All three are equal.
ratings, what is the appropriate critical value if the test is to be conducted using an alpha = .05
level?
a. F = 5.05
b.  2 = 5.99
c.  2 = 24.99
d. F = 3.67
ratings, what is correct test statistic for these data?
a. H = 1.965
b. t = 1.96
c. H = 3.34
d. H = .65
ratings, what is the correct conclusion if the test is to be conducted using an alpha = .05 level?
a. H0 should be rejected and we conclude that there is no significant difference between

the 3 companies.
b. H0 should not be rejected and we conclude that there is no significant difference

between the 3 companies.
c. H0 should be rejected and we conclude that there is a significant difference between

the 3 companies.
d. H0 should not be rejected and we conclude that there is a significant difference

between the 3 companies.

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Inference

1. Sample median as an estimator of the population mean is always

2. Power of test is related to:

Type-I and Type-II Error Both

None of the Above

3. Roa-Blackwell Theorem enables us to obtain minimum variance unbiased estimator through:

4. To test the randomness of a sample, the appropriate test is:

5. Equality of several normal population means can be tested by:

Remains the Same

All of the Above

7. Parameters are those constants which occur in:

Probability Density Functions

8. Crammer-Rao inequality is valid in case of:

Upper Bound on the Variance

Lower Bound on the Variance

The Asymptotic Variance of an Estimator

10. The sign test assumes that the:

Samples are Independent

Samples are Dependent

Samples have the Same Mean

11. For an estimator to be consistent, the unbiasedness of the estimator is:

Neither Necessary nor Sufficient

12. Homogeneity of several variances can be tested by:

Fisher’s Exact Test

All of the Above

a) All Constants of a Population

15. Most of the Non-Parametric methods utilize measurements on:

16. When the null hypothesis is accepted, it is possible that:

A correct Decision has been Made

A Type-II Error has been Made

Both (A) and (B) have Occurred

Neither (A) nor (B) has Occurred

Unbiased and Efficient

Unbiased and Inefficient

Biased and Efficient

Biased and Inefficient

1. Which of the following statements is not correct?

2. Inferential statistics is the:

b. process of using sample statistics to estimate population parameters

d. process that eliminates the problem of sampling error

3. Which of the following statements are correct?

a. a point estimate is an estimate of the range of a population parameter

c. a point estimate is a single value estimate of the value of a population parameter

d. all of the above statements are correct

e. none of the above statements are correct Answer: C

4. A point estimator is defined as:

a. the average of the sample values

b. the average of the population values

c. a single value that is the best estimate of an unknown population parameter

d. a single value that is the best estimate of an unknown sample statistic

5. Which of the following statements is/are correct?

c. an interval estimate is an estimate of the range for a sample statistic

d. all of the statements above are correct

e. none of the statements above are correct Answer: A

6. A confidence interval is defined as:

stimate plus or minus a specific level of confidence

c. an interval that has a 95% probability of containing the population parameter

7. The term 1 – α refers to the:

b. the level of confidence minus one

c. the level of confidence

d. the level of confidence plus one

e. the level of significance Answer: C