PART 1

1B

2A

3B

4B

5B

6C

7C

8B

9A

10C

11A E(X) = (.5) × $1 + (.5) × (−$0.50) = $0.50 − $0.25 = $0.25.

12A Hypergeometric

13D P(X < 30) = 1 − exp(−λx) = 1 − exp(−(1/15) × 30) = 1 − .1353 = .8647.

14C Set n = 175 and π = .08. Calculate μ = nπ = (175)(.08) = 14 and σ = [nπ(1 − π)]1/2 =
[175(.08)(1 − .08)]1/2 = 3.588872. Use x = 19.5 (with the continuity correction) and
calculate the binomial P(X ≥ 20) ≈ P(z ≥ 1.532515) using z = (x − μ)/σ = 1.532515.
15B The interval is p ± z[p(1 − p)/n]1/2 = .20 ± (1.960)[(.20)(.80)/160]1/2.
16C The width is ts/(n1/2) = (2.492)(5)/(25)1/2 = 2.492.
17C n = (z/E)2(π)(1 − π) = (1.645/.02)2(.50)(1 − .50) = 1691.3 (round up).
18C
19C p = 16/25 = .64, π0 = .50, zcalc = (.64 − .50)/[(.50)(1 − .50)/25]1/2 = 1.400.
20A The pooled variance is [(n1 − 1)s12 + (n2 − 1)s22]/[(n1 − 1) + (n2 − 1)] = [(8 − 1)36 +
(10 − 1)16]/[(8 − 1) + (10 − 1)] = 24.75, so tcalc = (38 − 29)/(24.75/8 + 24.75/10)1/2 =
3.814.
21C Cannot reject equal means because the p-value (.065) is not less than α (.05).
22B Although arranged side by side, these are unrelated data so it would be inappropriate to
treat them as paired data. Using an independent samples t-test with n1 = 5 and n2 = 5 we
have df = n1 + n2 − 2 = 5 + 5 − 2 = 8.
23C Using α/2 = .05 in each tail, from Appendix F, F15,5 = 4.62 and 1/F5,15 = 1/(2.90) =
0.345, or else use Excel's functions =F.INV.RT(.05,15,5) and =F.INV(.05,15,5).
24A
25B
26B
27A
28B
29C For d.f. = n − 2 = 8 − 2 = 6, t.025 = 2.447, so 1.8333 ± (2.447)(0.2307).
30A We set Profit = 0 and solve for Sales: 0 = −570 + 30 Sales giving us Sales = 570/30 = 19.

31D This is a joint probability: P(L and R) = 39/124.

32C This is a conditional probability: P(W | M) = 18/31.

33D Use the General Law of Addition: P(L or W) = 93/124 + 72/124 − 54/124.

34C Apply the General Rule of Addition: P(A or B) = P(A) + P(B) − P(A ∩ B).

35C Use Appendix A with n = 8 and π = .90 to find P(X ≥ 7) or else use the Excel

36C P(X < 6) = 1 − exp(−λx) = 1 − exp(−(1/30) × 6) = 1 − .8187 = .1813.

37B Set n = 500 and π = .06. Calculate μ = nπ = (500)(.06) = 30 and

σ = [nπ(1 − π)]1/2 = [500(.06)(1 − .06)]1/2 = 5.31037. Use x = 39.5
(with the continuity correction) and calculate the binomial P(X ≥ 40) ≈ P(z ≥ 1.78895)
using z = (x − μ)/σ = 1.78895.

38C n = (z/E)2(π)(1 − π) = (1.645/.02)2(.50)(1 − .50) = 1691.3 (round up).

39B From Appendix E with d.f. = 17 we get χ2.025 = 7.564 (left tail) and 30.19 (right tail).

40B Use combined proportion pc = (x1 + x2)/(n1 + n2) = (12 + 18)/(50 + 50) = .30 in zcalc.

41C Pool the variances and add the degrees of freedom, because equal variances are assumed.
With d.f. = (9 − 1) + (9 − 1) = 16 we find t.025 = 2.120 from Appendix D or from
the Excel function =T.INV.2T(0.05,16) = 2.119905. Apply formula 10.5 to find
the confidence interval.

42B Combined pc = (90 + 110)/(200 + 200) = .50,

so zcalc = (p1 − p2)/[pc(1 − pc)/n1 + pc(1 − pc)/n2]1/2 = −2.000
and using Appendix C we get P(Z ≤ −2.000) = .0228. Alternatively, use
the Excel function =NORM.S.DIST(−2.000,1) = 0.0227501.

43A MStreatment = 744/4 = 186, MSerror = (751.5)/15 = 50.1, so F = 186/50.1 = 3.71.

44A For df = (4, 15) we use Appendix F to get F.05 = 3.06.

45B Since SS/df = MS, we know that df = SS/MS. Hence, 993/331 = 3 and 1002/50.1 = 20.
46D For patient age group, df = (25.0938)/(8.3646) = 3 = c − 1 (there are 4 age groups).
47B ΔCost = 2.866 * ΔDistance = 2.8666*50 = $143.33.

48B For d.f. = n − 2 = 25 − 2 = 23, t.025 = 2.069, so −2.2834 ± (2.069)(0.99855).

49B The constant has no effect, so ΔCrime = 0.050 ΔIncome = 0.050(−1000) = −50.

50D Zero median income makes no sense. (Significance cannot be assessed from the
given facts.)