Business Statistics Communicating With Numbers 2nd Edition Jaggia Test Bank 1

BUSINESS STATISTICS COMMUNICATING
WITH NUMBERS 2ND EDITION JAGGIA
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Chapter 07
1. Bias refers to the tendency of a sample statistic to systematically over- or underestimate a
population parameter.
True False
2. Selection bias occurs when the sample is mistakenly divided into strata, and random samples are
drawn from each stratum.
True False
3. Nonresponse bias occurs when those responding to a survey or poll differ systematically from the
nonrespondents.
True False
4. A simple random sample is a sample of n observations that has the same probability of being
selected from the population as any other sample of n observations.
True False
5. In stratified random sampling, the population is first divided up into mutually exclusive and
collectively exhaustive groups, called strata. A stratified sample includes randomly selected
observations from each stratum, which are proportional to the stratum’s size.
True False
6. A parameter is a random variable, whereas a sample statistic is a constant.
True False
7. When a statistic is used to estimate a parameter, the statistic is referred to as an estimator. A

particular value of the estimator is called an estimate.
True False
8.
The standard deviation of (standard error of the sample mean) equals the population standard
deviation divided by the square root of the sample size, or, equivalently.
True False
9.
The standard deviation of suggests that the variation between observations is smaller than the
variation between averages.
True False
10. A point estimator refers to an estimator that provides a single value.
True False
11. If the expected value of a sample mean equals the population mean, the sample mean is biased.
True False
12.
For any sample size n, the sampling distribution of is normal if the population from which the
sample is drawn is uniformly distributed.
True False
13.
For any population X with expected value µ and standard deviation σ, the sampling distribution of
will be approximately normal if the sample size n is sufficiently small. As a general guideline, the
normal distribution approximation is justified when n < 30.
True False
14. The central limit theorem approximation improves as the sample size decreases.
True False
15.
For any population proportion p, the sampling distribution of will be approximately normal if the
sample size n is sufficiently large. As a general guideline, the normal distribution approximation is
justified when np ≥ 5 and n(1 −p) ≥ 5.
True False
16. Stratified random sampling is preferred when the objective is to _______.
_________________________
17. Cluster sampling is preferred when the objective is to _______.
_________________________
18.
The _______ _____ of is the same as the mean of the individual observations.
_________________________
19.
If is normally distributed then we can transform it into a(n) _______ normal random variable.
_________________________
20.
For making statistical inferences, it is essential that the sampling distribution of is _________
distributed.
_________________________
21.
According to the central limit theorem, the sampling distribution of approached the normal
distribution as the sample size _______.
_________________________
22. A preferred approach to quality control is the _________ approach.
_________________________
23. The _______ variation in the production process is caused by specific events or factors that can
usually be identified and eliminated.
_________________________
24. Bias can occur in sampling. Bias refers to _______.
A. the division of the population into overlapping groups

B. the creation of strata, which are proportional to the stratum’s size
C. the use of cluster sampling instead of stratified random sampling
D. the tendency of a sample statistic to systematically over- or underestimate a population
parameter
25. Selection bias occurs when _______.
A. the population has been divided into strata

B. portions of the population are excluded from the consideration for the sample
C. cluster sampling is used instead of stratified random sampling
D. those responding to a survey or poll differ systematically from the nonrespondents
26. Nonresponse bias occurs when _______.

B. portions of the population are excluded from the sample
27. Which of the following is not a form of bias?
A. Portions of the population are excluded from the sample.

B. Information from the sample is typical of information in the population.
C. Information from the sample overemphasizes a particular stratum of the population.
D. Those responding to a survey or poll differ systematically from the nonrespondents.
28. Which of the following meets the requirements of a simple random sample?
A. A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include six people who volunteer for the sample.
B. A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include six people chosen at random, without regard to age.
C. A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include six males chosen at random, without regard to age.
D. A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include two people chosen at random under the age of 25 and four people
chosen at random over 25.
29. Which of the following meets the requirements of a stratified random sample?
A. A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include six people who volunteer for the sample.
B. A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include six people chosen at random, without regard to age.
C. A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include six males chosen at random, without regard to age.
D. A population contains 10 members under the age of 25 and 20 members over the age of 25.
The sample will include two people chosen at random under the age of 25 and four people
chosen at random over 25.
30. Which of the following is true about statistics such as the sample mean or sample proportion?
A. A statistic is a constant.
B. A statistic is a parameter.
C. A statistic is always known.
D. A statistic is a random variable.
31. Statistics are used to estimate population parameters, particularly when it is impossible or too
expensive to poll an entire population. A particular value of a statistic is referred to as a(n)
_______.
A. mean
B. stratum
C. estimate
D. finite correction factor
32. Which of the following is considered an estimator?
A.
B. µ
C. σ
D. σ2
33. Which of the following is considered an estimate?
A.
B.
C.
D.
34. What is the relationship between the expected value of the sample mean and the expected value
of the population?
A.
B.
C.
D.
35. How does the variance of the sample mean compare to the variance of the population?
A. It is smaller and therefore suggests that averages have less variation than individual
observations.
B. It is larger and therefore suggests that averages have less variation than individual
observations.
C. It is smaller and therefore suggests that averages have more variation than individual
observations.
D. It is larger and therefore suggests that averages have more variation than individual
observations.
36. What is the relationship between the standard deviation of the sample mean and the population
standard deviation?
A.
B.
C.
D.
37. A nursery sells trees of different types and heights. These trees average 60 inches in height with
a standard deviation of 16 inches. Suppose that 75 pine trees are sold for planting at City Hall.
What is the standard deviation for the sample mean?
A. 1.85
B. 3.41
C. 4
D. 16
38. If a population is known to be normally distributed, what can be said of the sampling distribution
of the sample mean drawn from this population?
A. For any sample size n, the sampling distribution of the sample mean is normally distributed.
B. For a sample size n < 50, the sampling distribution of the sample mean is normally distributed.
C. For a sample size n < 30, the sampling distribution of the sample mean is normally distributed.
D. For a sample size n > 30, the sampling distribution of the sample mean is normally distributed.
39. Over the entire six years that students attend an Ohio elementary school, they are absent, on
average, 28 days due to influenza. Assume that the standard deviation over this time period is σ
= 9 days. Upon graduation from elementary school, a random sample of 36 students is taken and
asked how many days of school they missed due to influenza. What is the expected value for the
sampling distribution of the number of school days missed due to influenza?
A. 6
B. 9
C. 28
D. 168
asked how many days of school they missed due to influenza. What is the standard deviation for
the sampling distribution of the number of school days missed due to influenza?
A. 1.22
B. 1.50
C. 2.25
D. 9.00
asked how many days of school they missed due to influenza. The probability that the sample
mean is less than 30 school days is _______.
A. 0.0918
B. 0.4129
C. 0.5871
D. 0.9082
asked how many days of school they missed due to influenza. The probability that the sample
mean is between 25 and 30 school days is _______.
A. 0.0228
B. 0.0918
C. 0.8854
D. 0.9082
43. Suppose that, on average, electricians earn approximately µ = $54,000 per year in the United
States. Assume that the distribution for electricians’ yearly earnings is normally distributed and
that the standard deviation is σ = $12,000. Given a sample of four electricians, what is the
standard deviation for the sampling distribution of the sample mean?
A. 6,000
B. 12,000
C. 36,000
D. 54,000
that the standard deviation is σ = $12,000. What is the probability that the average salary of four
randomly selected electricians exceeds $60,000?
A. 0.1587
B. 0.3085
C. 0.6915
D. 0.8413
that the standard deviation is σ = $12,000. What is the probability that the average salary of four
randomly selected electricians is less than $50,000?
A. 0.2514
B. 0.3707
C. 0.6293
D. 0.7486
that the standard deviation is σ = $12,000 dollars. What is the probability that the average salary
of four randomly selected electricians is more than $50,000 but less than $60,000?
A. 0.5899
B. 0.7486
C. 0.8413
D. 0.9048
47. Susan has been on a bowling team for 14 years. After examining all of her scores over that period
of time, she finds that they follow a normal distribution. Her average score is 225, with a standard
deviation of 13. What is the probability that in a one-game playoff, her score is more than 227?
A. 0.2676
B. 0.4404
C. 0.5596
D. 0.7324
deviation of 13. If during a typical week Susan bowls 16 games, what is the probability that her
average score is more than 230?
A. 0.0618
B. 0.3520
C. 0.6480
D. 0.9382
deviation of 13. If during a typical week Susan bowls 16 games, what is the probability that her
average score for the week is between 220 and 228?
A. 0.0618
B. 0.2390
C. 0.7594
D. 0.8212
deviation of 13. If during a typical month Susan bowls 64 games, what is the probability that her
average score in this month is above 227?
A. 0.1093
B. 0.4404
C. 0.5596
D. 0.8907
51. Professor Elderman has given the same multiple-choice final exam in his Principles of
Microeconomics class for many years. After examining his records from the past 10 years, he
finds that the scores have a mean of 76 and a standard deviation of 12. What is the probability
that a class of 15 students will have a class average greater than 70 on Professor Elderman’s
final exam?
A. 0.0262
B. 0.6915
C. 0.9738
D. Cannot be determined.
that a class of 36 students will have an average greater than 70 on Professor Elderman’s final
exam?
A. 0.0014
B. 0.3085
C. 0.6915
D. 0.9986
finds that the scores have a mean of 76 and a standard deviation of 12. Professor Elderman
offers his class of 36 a pizza party if the class average is above 80. What is the probability that he
will have to deliver on his promise?
A. 0.0228
B. 0.3707
C. 0.6293
D. 0.9772
Professor Elderman’s class of 36 has a class average below 78?
A. 0.1587
B. 0.5675
C. 0.8413
55. According to the central limit theorem, the distribution of the sample means is normal if _______.
A. the underlying population is normal

B. the sample size n ≥ 30
C. the standard deviation of the population is known
D. both the underlying population is normal and the sample size n ≥ 30 are correct
56. The central limit theorem states that, for any distribution, as n gets larger, the sampling
distribution of the sample mean _______.
A. becomes larger
B. becomes smaller
C. is closer to a normal distribution
D. is closer to the standard deviation
57. A random sample of size 36 is taken from a population with mean µ = 17 and standard deviation
σ = 6. What are the expected value and the standard deviation for the sampling distribution of the
sample mean?
A. 0.425 and 1.00

B. 0.425 and 2.83
C. 17 and 1.00
D. 17 and 2.83
σ = 6. The probability that the sample mean is greater than 18 is _______.
A. 0.1587
B. 0.4325
C. 0.5675
D. 0.8413
σ = 6. The probability that the sample mean is less than 15 is _______.
A. 0.0228
B. 0.3707
C. 0.6293
D. 0.9772
σ = 6. The probability that the sample mean is between 15 and 18 is _______.
A. 0.0228
B. 0.8185
C. 0.8413
D. 0.8641
61. Using the central limit theorem, applied to the sampling distribution of the sample proportion, what
conditions must be met?
A.
and
B.
and
C.
and
D.
and
62. A random sample of size 100 is taken from a population described by the proportion p = 0.60.
What are the expected value and the standard error for the sampling distribution of the sample
proportion?
A. 0.006 and 0.0024

B. 0.060 and 0.049
C. 0.600 and 0.0024
D. 0.600 and 0.049
The probability that the sample proportion is greater than 0.62 is _______.
A. 0.3409
B. 0.4082
C. 0.6591
D.
The probability that the sample proportion is less than 0.55 is _______.
A. ≈ 0
B. 0.1539
C. 0.3669
D. 0.8461
The probability that the sample proportion is between 0.55 and 0.62 is _______.
A. 0.1539
B. 0.5052
C. 0.6591
D. 0.8130
66. A university administrator expects that 25% of students in a core course will receive an A. He
looks at the grades assigned to 60 students. What are the expected value and the standard error
for the proportion of students that receive an A?
A. 0.25 and 0.0031

B. 0.25 and 0.0559
C. 15.0 and 0.0031
D. 15.0 and 0.0559
looks at the grades assigned to 60 students. The probability that the proportion of students that
receive an A is 0.20 or less is _______.
A. 0.1867
B. 0.6266
C. 0.8133
D. 0.8900
looks at the grades assigned to 60 students. The probability that the proportion of students who
receive an A is between 0.20 and 0.35 is
A. 0.1867.
B. 0.7766
C. 0.8133.
D. 0.9633.
looks at the grades assigned to 60 students. The probability that the proportion of students who
receive an A is not between 0.20 and 0.30 is _______.
A. 0.1867
B. 0.3734
C. 0.6266
D. 0.8133
70. The labor force participation rate is the number of people in the labor force divided by the number
of people in the country who are of working age and not institutionalized. The BLS reported in
February 2012 that the labor force participation rate in the United States was 63.7%
(Calculatedrisk.com). A marketing company asks 120 working-age people if they either have a job
or are looking for a job, or, in other words, whether they are in the labor force. What are the
expected value and the standard error for a labor participation rate in the company’s sample?
A. 0.637 and 0.0019

B. 0.637 and 0.0439
C. 76.44 and 0.0019
D. 76.44 and 0.0439
or are looking for a job, or, in other words, whether they are in the labor force. For the company’s
sample, the probability that the proportion of people who are in the labor force is greater than
0.65 is _______.
A. 0.1179
B. 0.3000
C. 0.3821
D. 0.6179
or are looking for a job, or, in other words, whether they are in the labor force. What is the
probability that fewer than 60% of those surveyed are members of the labor force?
A. 0.2005
B. 0.7995
C. 0.8400
D. 0.9706
or are looking for a job, or, in other words, whether they are in the labor force. What is the
probability that between 60% and 62.5% of those surveyed are members of the labor force?
A. 0.0243
B. 0.1931
C. 0.2005
D. 0.3936
74. Super Bowl XLVI was played between the New York Giants and the New England Patriots in
Indianapolis. Due to a decade-long rivalry between the Patriots and the city’s own team, the
Colts, most Indianapolis residents were rooting heartily for the Giants. Suppose that 90% of
Indianapolis residents wanted the Giants to beat the Patriots. What is the probability that, of a
sample of 100 Indianapolis residents, at least 15% were rooting for the Patriots in Super Bowl
XLVI?
A. 0.0300
B. 0.0475
C. 0.4763
D. 0.9525
Indianapolis residents wanted the Giants to beat the Patriots. What is the probability that from a
sample of 100 Indianapolis residents, fewer than 95% were rooting for the Giants in Super Bowl
XLVI?
A. 0.0300
B. 0.0475
C. 0.4763
D. 0.9525
sample of 40 Indianapolis residents, fewer than 95% were rooting for the Giants in Super Bowl
XLIV?
A. 0.0474
B. 0.1469
C. 0.8531
D. Cannot be determined
sample of 200 Indianapolis residents, fewer than 170 were rooting for the Giants in Super Bowl
XLIV?
A. 0.0091
B. 0.0212
C. 0.4954
D. 0.9908
78. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012), Mississippi
is the most conservative U.S. state, with 53.4 percent of its residents identifying themselves as
conservative. What is the probability that at least 60% of a random sample of 200 Mississippi
residents identify themselves as conservative?
A. 0.0307
B. 0.3530
C. 0.4847
D. 0.9693
conservative. What is the probability that at least 100 but fewer than 115 respondents of a
random sample of 200 Mississippi residents identify as conservative?
A. 0.1685
B. 0.3370
C. 0.7085
D. 0.8770
conservative. What is the probability that at least 50 respondents of a random sample of 100
Mississippi residents do not identify themselves as conservative?
A. 0.0499
B. 0.2483
C. 0.4966
D. 0.7517
conservative. What is the probability that fewer than 45 respondents of a random sample of 100
Mississippi residents do not identify themselves as conservative?
A. 0.0499
B. 0.1873
C. 0.3745
D. 0.6255
82.
Under what condition is the finite population correction factor used for computing the standard
error of and ?
A. n ≥ Np
B. n < Np
C. n ≥ 0.05N
D. n < 0.05N
83. The finite correction factor is always _______.
A.
less than one, and therefore increases the standard deviations of and computed under the
assumption of infinite population
B.
less than one, and therefore decreases the standard deviations of and computed under
the assumption of infinite population
C.
greater than one, and therefore increases the standard deviations of and computed under
D.
greater than one, and therefore decreases the standard deviations of and computed under
84. A local company makes snack-size bags of potato chips. Each day, the company produces
batches of 400 snack-size bags using a process designed to fill each bag with an average of 2
ounces of potato chips. However, due to imperfect technology, the actual amount placed in a
given bag varies. Assume the amount placed in each of the 400 bags is normally distributed and
has a standard deviation of 0.1 ounce. What is the probability that a sample of 40 bags has an
average weight of at least 2.02 ounces?
A. 0.0150
B. 0.0918
C. 0.1038
D. 0.4207
85. Suppose 35% of homes in a Miami, Florida, neighborhood are under water (in other words, the
amount due on the mortgage is larger than the value of the home). There are 160 homes in the
neighborhood and 30 of those homes are owned by your friends. What is the probability that
fewer than 30% of your friends’ homes are under water?
A. 0.2611
B. 0.2843
C. 0.6400
D. 0.7389
86. Successful firms must focus on the quality of the products and services they offer. Which factor or
factors contribute to the quest for quality?
A. Global competition
B. Consumer expectations
C. Technological advances
D. All of these choices are correct
87. Acceptance sampling is _______.
A. a division of the population into strata

B. a plot of calculated statistics of the production process over time
C. an inspection of a portion of the products at the completion of the production process
D. a determination of a point at which the production process does not conform to specifications
88. The detection approach to statistical quality control _______.
A. divides the population into strata

B. inspects a portion of the products at the completion of the production process
C. determines at which point the production process does not conform to specifications
D. uses the finite correction factor when the sample size is not much smaller than the population
size
89. In any production process, variation in the quality of the end product is inevitable. Chance
variation, or common variation, refers to _______.
A. the variation caused by stratified random sampling

B. the variation caused by the use of the finite correction factor
C. specific events or factors that can usually be identified and eliminated
D. a number of randomly occurring events that are part of the production process
90. In any production process, variations in the quality of the end product are inevitable. Assignable
variation refers to _______.

91. A local company makes snack-size bags of potato chips. The company produces batches of 400
snack-size bags using a process designed to fill each bag with an average of 2 ounces of potato
chips. However, due to imperfect technology, the actual amount placed in a given bag varies.
Assume the population of filling weights is normally distributed with a standard deviation of 0.1
ounce. The company periodically weighs samples of 10 bags to ensure the proper filling process.
The last five sample means, in ounces, were 1.99, 2.02, 2.07, 1.96, and 2.01. Is the production
process under control?
A. No, because the sample means show a downward trend.

B. Yes, because the sample means show a downward trend.
C. No, because the sample means fall within the upper and lower control limits.
D. Yes, because the sample means fall within the upper and lower control limits.
92. A manufacturing process produces computer chips in batches of 100. The firm believes that the
percent of defective computer chips is 2%. If in five batches the percent of chips defective were
3%, 8%, 1%, 2%, and 7%, how many of these fell outside of the upper or lower control limits for
the proportion of defective computer chips in a batch?
A. 0
B. 1
C. 2
D. 3
93. For quantitative data, the most appropriate control chart to monitor central tendency is a(n)
A.
chart.
B.
chart.
C. c chart.
D. s chart.
94. For qualitative data, the most appropriate control chart to monitor the proportion of a certain
characteristic is a(n)
A.
chart.
B.
chart.
C. c chart.
D. s chart.
95.
A random sample of 49 cast aluminum pots is taken from a production line once every day. The
number of defective pots is counted. The proportion of defective pots has been closely examined
in the past and is believed to be 0.05. What are the upper and lower control limits for the chart?
A. -0.0434 and 0.1434

B. 0.0 and 0.1434
C. 0.1434 and -0.0434
D. 0.1434 and 0.0
96.
A random sample of 49 cast aluminum pots is taken from a production line once every day. The
number of defective pots is counted. The proportion of defective pots has been closely examined
in the past and is believed to be 0.05. The sample proportions for the week are shown in the
accompanying table.
Day of the Week Proportion Defective

Monday 0.06
Tuesday 0.07
Wednesday 0.04
Thursday 0.06
Friday 0.05
Is the production process in control?
A. No, because the sample proportions show a downward trend.

B. No, because the sample proportions fall within the upper and lower control limits.
C. Yes, because the sample proportions show a downward trend.
D. Yes, because the sample proportions fall within the upper and lower control limits.
97. John would like to conduct a survey in his neighborhood to get homeowners’ opinions on the
Delmarva proposal to switch to natural gas. Which of the following is an example of a stratified
sample?
A. John randomly chooses three streets and selects every third house on those streets.
B. John selects the first 25 homes that he passes as he walks into the entrance of the
development.
C. John selects every third house on each street.
D. John selects an equal number of two-story, split-level, and ranch houses.
98. Suppose the average math SAT score for students enrolled at local community college is 490.4
with a standard deviation of 63.7. A random sample of 49 students has been selected. The
standard error of the mean for this sample is _______.
A. 10.6
B. 9.1
C. 63.7
D. 28.4
99. According to the IRS, the average refund in the 2011 tax year was $3,109. Assuming that the
standard deviation for these refunds was $874, what is the standard error of the sample mean for
a random sample of 50 tax returns?
A. $74.66
B. $100.56
C. $123.60
D. $152.25
100.According to the Bureau of Labor Statistics it takes an average of 22 weeks for someone over 55
to find a new job. Assume that the probability distribution is normal and that the standard
deviation is two weeks. What is the probability that eight workers over the age of 55 take an
average of more than 20 weeks to find a job?
A. 0.8977
B. 0.6777
C. 0.7788
D. 0.9977
101.According to the Bureau of Labor Statistics it takes an average of 16 weeks for young workers to
find a new job. Assume that the probability distribution is normal and that the standard deviation
is two weeks. What is the probability that 20 young workers average less than 15 weeks to find a
job?A. 0.0125
A. 0.0225
B. 0.0450
C. 0.0375
102.Suppose the local Best Buy store averages 522customers every day entering the facility with a
standard deviation of 124 customers. A random sample of 40 business days was selected. What
is the probability that the average number of customers in the sample is between 530 and 540?
A. 0.2387
B. 0.1621
C. 0.3057
D. 0.0572
103.A key metric in the cell phone industry is average revenue per user (ARPU), which represents the
average dollar amount that a customer spends per store visit. In 2011, ATamp;T reported their
ARPU as $63.76. Suppose the standard deviation for this population is $22.50. What is the
probability that the ARPU will be between $60 and $63 from a random sample of 38 customers?
A. 0.5517
A. 0.4168
B. 0.2653
C. 0.1515
104.According to the recent report, scientists in New England say they have identified a set of genetic
variants that predicts extreme longevity with 77% accuracy. Assume 150 patients decide to get
their genome sequenced. If the claim by scientists is accurate, what is the probability that more
than 120 patientswill get a correct diagnosis for extreme longevity?A. 0.5151
A. 0.2219
B. 0.1515
C. 0.1922
105.According to the recent report, scientists in New England say they have identified a set of genetic
variants that predicts extreme longevity with 77% accuracy. Assume 150 patients decide to get
their genome sequenced. If the claim by scientists is accurate, what is the probability that fewer
than 70% of the patientswill get a correct diagnosis for extreme longevity?A. 0.0207
A. 0.1422
B. 0.0722
C. 0.2214
106.We are told that 8% of college graduates, under the age of 25 are unemployed. What is the
probability that at least 200 college graduates under age 25 are employed?
A. 0.8925
B. 0.7088
C. 0.2912
D. 0.1075
107.The finite population correction factor for the standard error of the mean should be used when
the ratio of the sample size to the size of population exceeds _______.
A. 1%
B. 2%
C. 3%
D. 5%
108.
A packaging company strives to maintain a constant temperature for its packages that require a
specific temperature range. It is believed that the temperature of packages follows a normal
distribution with a mean of 5 degrees Celsius and a standard deviation of 0.3 degree Celsius.
Inspectors take weekly samples for five weeks of eight randomly selected boxes and report their
temperatures. The five weekly sample means are shown in the table below.
Week 1
Week 2
Week 3
Week 4
Week 5
How many points are outside the control limits?
A. 1
B. 2
C. 3
D. 4
109.
The California Department of Education wants to gauge the difficulty of a new exam by having a
sample of students at a particular school take the exam. The quality of the students at the chosen
school varies widely and the school administrators are allowed to choose who gets to take the
exam. The administrators have a strong incentive for the school to do well on the exam. Do you
think the results will represent the true ability of the students at school? What kind of bias, if any,
do you think will be present? Explain.
110.
The campaign manager for a candidate for governor in Arizona wants to conduct a poll to better
understand his candidate’s chances for the upcoming election. a. What is the population of
interest? b. Why may the poll be biased if a simple random sample of voters in the last
gubernatorial election (four years prior) is taken?
111.
It is known that college students at a local community college study 12 hours per week with a
standard deviation of five hours. What are the expected value and variance for a sample of nine
students?
112.
A fast-food restaurant uses an average of 110 grams of meat per burger patty. Suppose the
amount of meat in a burger patty is normally distributed with a standard deviation of 20 grams.
What is the probability that the average amount of meat in four randomly selected burgers is less
than 105 grams?
113.
Suppose residents in a well-to-do neighborhood pay an average overall tax rate of 25% with a
standard deviation of 8%. Assume tax rates are normally distributed. What is the probability that
the mean tax rate of 16 randomly selected residents is between 20% and 30%?
114.
Suppose the average casino patron in Las Vegas loses $110 per day, with a standard deviation of
$700. Assume winnings/losses are normally distributed. a. What is the probability that a random
group of nine people averages more than $500 in winnings on their one-day trip to Las Vegas? b.
What is the probability that a random group of nine people averages more than $500 in losses on
their one-day trip to Las Vegas?
115.
A ski resort gets an average of 2,000 customers per weekday with a standard deviation of 800
customers. Assume the underlying distribution is normal. What is the probability a ski resort
averages between 1,500 customers and 3,000 customers per weekday over the course of four
weekdays?
116.
A mining company made some changes to their mining process in an attempt to save fuel. Before
the changes were made, it took an average of 20 gallons of diesel fuel to mine 1,000 pounds of
copper. Suppose the standard deviation of fuel used per 1,000 pounds of copper mined is 6
gallons. After the changes were made, the company only used an average of 18 gallons of diesel
for the next 30,000 pounds of copper mined. a. How unusual would it be to get a sample average
of 18 gallons or less for 30,000 pounds of copper mined if the changes to the mining process had
no effect? b. Do you think the changes in the mining process actually lowered the fuel used?
Explain.
117.
A gym knows that each member, on average, spends 70 minutes at the gym per week, with a
standard deviation of 20 minutes. Assume the amount of time each customer spends at the gym
is normally distributed. a. What is the probability that a randomly selected customer spends less
than 65 minutes at the gym? b. Suppose the gym surveys a random sample of 49 members
about the amount of time they spend at the gym each week. What are the expected value and
standard deviation (standard error) of the sample mean of the time spent at the gym? c. If 49
members are randomly selected, what is the probability that the average time spent at the gym
exceeds 75 minutes?
118.
A book publisher knows that it takes an average of nine business days from when the material for
the book is finalized until the first edition is printed and ready to sell. Suppose the exact amount
of time has a standard deviation of four days. a. Suppose the publisher examines the printing
time for a sample of 36 books. What is the probability that the sample mean time is shorter than
eight days? b. Suppose the publisher examines the printing time for a sample of 36 books. What
is the probability that the sample mean time is between 7 and 10 days? c. Suppose the publisher
signs a contract for the printer to print 100 books. If the average printing time for the 100 books is
longer than 9.3 days, the printer must pay a penalty. What is the probability the penalty clause will
be activated? d. Suppose the publisher signs a contract for the printer to print 10 books. If the
average printing time for the 10 books is longer than 9.7 days, the printer must pay a penalty.
What is the probability the penalty clause will be activated?
119.
In a large metropolitan area, the top providers for television and Internet services are a phone
company, a satellite company, and a cable company. The satellite company serves 43% of the
homes in the area. What is the probability that in a survey of 1,000 homes, more than 447 of
them are served by the satellite company?
120.
In early 2012, the U.S. Congress approval rating was approximately 10% (Reuters.com). In a poll
of 400 Americans, what is the probability that their approval rating is between 8% and 12%?
121.
A tutoring company claims that 75% of the high school students who hire one of their tutors will
improve their grades. a. In a sample of 100 high school students, what is the probability that 80%
or more improved their grades? b. In a sample of 200 high school students, what is the
probability that 80% or more improved their grades? c. Comment on the reason for the difference
between the computed probabilities in parts a and b.
122.
A school is required by the government to give some randomly chosen students a standardized
test. From previous experience, the school knows about 68% of their students will receive
passing scores in math and English. To improve funding, the school needs to score at least 70%
on the standardized test. This year the school can decide if it wants to test 100 or 200 students.
Should the school test 100 or 200 students? Explain the answer.
123.
The office of career services at a major university knows that 74% of its graduates find full-time
positions in the field of their choosing within six months of graduation. Suppose the office of
career services surveys 25 alumni six months after graduation. a. What is the probability that at
least 80% of the alumni have a job in the field of their choosing? b. What is the probability that
between 60% and 76% of the alumni have a job in the field of their choosing? c. What is the
probability that fewer than 60% of the alumni have a job in the field of their choosing?
124.
Administrative assistants in a local university have been asked to prove their proficiency in the
use of spreadsheet software by taking a proficiency test. Historically, the mean test score has
been 74 with a standard deviation of 4. A random sample of size 40 is taken from the 100
administrative assistants and asked to complete the proficiency test. a. Calculate the expected
value and the standard deviation (standard error) of the sample mean. b. What is the probability
that the sample mean score is more than 75, the predetermined passing score?
125.In a small town, there are 3,000 registered voters. An editor of a local newspaper would like to
predict the outcome of the next election; in particular, he is interested in the likelihood that Eli
Brady will be elected. The editor believes that Eli, a local hero, will garner 54% of the vote. A poll
of 500 registered voters is taken. Assuming that the editor’s belief is true, calculate: a. The
expected value and the standard deviation (standard error) of the sample proportion. b. The
probability that the sample proportion score is more than 0.58. Answers: a. 0.54 and 0.0204 b.
0.025
126.
A random sample of nine cast aluminum pots is taken from a production line once every hour.
The interior diameter of the pots is measured and the sample mean is calculated. The target for
the diameter is 12 inches and the standard deviation for the pot diameter is 0.05 inches. Assume
the pot diameter is normally distributed. a. Construct the centerline and the upper and lower
control limits for the chart. b. The means of the samples for a given eight-hour day are
12.01 12.06 11.97 12.08 11.92 11.95 11.97 12.04. Plot these values on the chart. c. Does it
appear that the process is under control? Explain.
127.
In a recent investigation, the National Highway Traffic Safety Administration (NHTSA) found that
the Chevrolet Volt and other electric vehicles do not pose a greater risk of fire than gasoline-
powered vehicles (The Boston Globe, January 25, 2012). Specifically, it was determined that “no
discernible defect trend exists.” Suppose a consumer advocacy group wants to verify some of
these claims by constructing a chart. The group expects 2% of electric cars to catch fire each
month. For each of the last six months, 500 electric car owners are asked if their cars have
caught fire. These sample proportions are obtained: 0.010 0.020 0.015 0.030 0.025 0.015. a.
Assuming that the group expectation is correct, construct the centerline and the upper and lower
control limits for the chart. b. Do the consumer group’s findings support those of the NHTSA?
Explain the answer.
128.
A bottled water plant uses a production process designed to fill bottles with 20 ounces of water.
The population of filling volumes is normally distributed with a standard deviation of 1.3 ounces.
Periodically, process engineers take 20-bottle samples and compute the sample mean.
a. What are the upper and lower control limits? b. Suppose the last five sample means were
19.4 20.2 20.5 20.7 21.1 ounces. Is the process under control?
129.
A manufacturing process produces tubeless mountain bike tires in batches of 200. Past records
show that 6% of the tires will not hold air. An engineer tests five batches, each one week apart,
and shows the proportion of tires that will not hold air below. Proportion of tires that will not hold
air:
0.074 0.068 0.062 0.055 0.040
a. Construct the centerline and the upper control limit for the chart.
b. Should the engineer be worried? Comment on any trend in the proportion of tubeless tires that
will not hold air.
130.
A large accounting firm gives out 1,000 job offers every year to new college graduates. Suppose
that 85% of those who received offers accept the position. The following shows the number of
graduates who have accepted jobs in the last four years. Number of job offers accepted:
2007 2008 2009 2010 2011
840 860 870 830 810
a. Construct the centerline and the upper and lower control limits for the chart.
b. Does the company need to worry about its ability to attract college graduates to the firm?
Chapter 07 Key
1. Bias refers to the tendency of a sample statistic to systematically over- or underestimate a

population parameter.
TRUE
When the information from a sample is not typical of information in the population in a
systematic way, we say that bias has occurred.
AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Jaggia - Chapter 07 #1
Learning Objective: 07-01 Explain common sample biases.
Topic: Sampling
2. Selection bias occurs when the sample is mistakenly divided into strata, and random samples
are drawn from each stratum.
FALSE
Selection bias refers to a systematic exclusion of certain groups from consideration for the
sample.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Topic: Sampling
3. Nonresponse bias occurs when those responding to a survey or poll differ systematically from
the nonrespondents.
TRUE
Nonresponse bias occurs when those responding to a survey or poll differ systematically from
the nonrespondents.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Topic: Sampling
4. A simple random sample is a sample of n observations that has the same probability of being
selected from the population as any other sample of n observations.
TRUE
Most statistical methods presume simple random sample.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 07-02 Describe various sampling methods.
Topic: Sampling
5. In stratified random sampling, the population is first divided up into mutually exclusive and
collectively exhaustive groups, called strata. A stratified sample includes randomly selected
observations from each stratum, which are proportional to the stratum’s size.
TRUE
With stratified random sampling, the population is divided into groups based on one or more
classification criteria. Then simple random samples are drawn from each group in sizes
proportional to the relative size of each group in the population.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Topic: Sampling
6. A parameter is a random variable, whereas a sample statistic is a constant.
FALSE
A parameter is a constant, although its value may be unknown. A sample statistic, such as the
sample mean or the sample proportion, is a random variable whose value depends on the
chosen random sample.

Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Topic: Sampling
7. When a statistic is used to estimate a parameter, the statistic is referred to as an estimator. A

particular value of the estimator is called an estimate.
TRUE
The statistic is used to estimate a parameter.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Topic: Sampling
8.
The standard deviation of (standard error of the sample mean) equals the population
standard deviation divided by the square root of the sample size, or,
equivalently.
TRUE
To distinguish the variability between samples from the variability between individual
observations, we refer to the standard deviation of the sample mean or to the standard error of
the sample mean.

Blooms: Understand
Gradable: automatic
Learning Objective: 07-03 Describe the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean
9.
The standard deviation of suggests that the variation between observations is smaller than
the variation between averages.
FALSE
The standard deviation of the sample mean (standard error of the sample mean) suggests the
variation between averages is less than the variation between observations.

Blooms: Understand
Gradable: automatic
10. A point estimator refers to an estimator that provides a single value.
TRUE
A point estimator provides a single value or a point.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
11. If the expected value of a sample mean equals the population mean, the sample mean is
biased.
FALSE
If the expected value of a sample mean equals the population mean, the sample mean is
unbiased.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
12.
sample is drawn is uniformly distributed.
FALSE
sample is drawn is normally distributed.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 07-04 Explain the importance of the central limit theorem.
13.
For any population X with expected value µ and standard deviation σ, the sampling distribution
of will be approximately normal if the sample size n is sufficiently small. As a general
guideline, the normal distribution approximation is justified when n < 30.
FALSE
For any population X with expected value µ and standard deviation σ, the sampling distribution
of will be approximately normal if the sample size n is sufficiently large. As a general
guideline, the normal distribution approximation is justified when n ≥ 30.

Blooms: Remember
Gradable: automatic
14. The central limit theorem approximation improves as the sample size decreases.
FALSE
The central limit theorem approximation improves as the sample size increases.

Blooms: Remember
Gradable: automatic
15.
For any population proportion p, the sampling distribution of will be approximately normal if
the sample size n is sufficiently large. As a general guideline, the normal distribution
approximation is justified when np ≥ 5 and n(1 −p) ≥ 5.
TRUE
As a general guideline, the normal distribution approximation for any population proportion is
justified when np ≥ 5 and n(1 −p) ≥ 5.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 07-05 Describe the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion
16. Stratified random sampling is preferred when the objective is to _______.
increase precision
Blooms: Understand
Gradable: automatic
Topic: Sampling
17. Cluster sampling is preferred when the objective is to _______.
reduce costs
Blooms: Understand
Gradable: automatic
Topic: Sampling
18.
The _______ _____ of is the same as the mean of the individual observations.
expected value
The expected value of is computed as

Blooms: Understand
Gradable: automatic
19.
If is normally distributed then we can transform it into a(n) _______ normal random variable.
standard
If is normal, we can transform it into a standard normal random variable Z.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
20.
For making statistical inferences, it is essential that the sampling distribution of is _________
distributed.
normally
If the population X from which the sample is drawn is normal, then is normally distributed.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Topic: The Central Limit Theorem
21.
According to the central limit theorem, the sampling distribution of approached the normal
distribution as the sample size _______.
increases
For any population proportion p, the sampling distribution of is approximately normal if the
sample size n is sufficiently large.

Blooms: Understand
Gradable: automatic
22. A preferred approach to quality control is the _________ approach.
detection
Blooms: Understand
Gradable: automatic
Learning Objective: 07-07 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control
23. The _______ variation in the production process is caused by specific events or factors that
can usually be identified and eliminated.
assignable
The assignable variation is caused by specific events or factors that can usually be identified
and eliminated.

Blooms: Understand
Gradable: automatic
24. Bias can occur in sampling. Bias refers to _______.
A. the division of the population into overlapping groups

B. the creation of strata, which are proportional to the stratum’s size
C. the use of cluster sampling instead of stratified random sampling
D. the tendency of a sample statistic to systematically over- or underestimate a population
parameter
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Topic: Sampling
25. Selection bias occurs when _______.

B. portions of the population are excluded from the consideration for the sample
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Topic: Sampling
26. Nonresponse bias occurs when _______.

B. portions of the population are excluded from the sample
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Topic: Sampling
27. Which of the following is not a form of bias?
A. Portions of the population are excluded from the sample.

B. Information from the sample is typical of information in the population.
C. Information from the sample overemphasizes a particular stratum of the population.
D. Those responding to a survey or poll differ systematically from the nonrespondents.
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Topic: Sampling
28. Which of the following meets the requirements of a simple random sample?
A. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six people who volunteer for the sample.
B. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six people chosen at random, without regard to age.
C. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six males chosen at random, without regard to age.
D. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include two people chosen at random under the age of 25 and four
people chosen at random over 25.
Blooms: Understand
Gradable: automatic
Topic: Sampling
29. Which of the following meets the requirements of a stratified random sample?
A. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six people who volunteer for the sample.
B. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six people chosen at random, without regard to age.
C. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six males chosen at random, without regard to age.
D. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include two people chosen at random under the age of 25 and four
people chosen at random over 25.
Blooms: Understand
Gradable: automatic
Topic: Sampling
30. Which of the following is true about statistics such as the sample mean or sample proportion?
A. A statistic is a constant.
B. A statistic is a parameter.
C. A statistic is always known.
D. A statistic is a random variable.
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
31. Statistics are used to estimate population parameters, particularly when it is impossible or too
expensive to poll an entire population. A particular value of a statistic is referred to as a(n)
_______.
A. mean
B. stratum
C. estimate
D. finite correction factor
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
32. Which of the following is considered an estimator?
A.
B. µ
C. σ
D. σ2
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
33. Which of the following is considered an estimate?
A.
B.
C.
D.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
34. What is the relationship between the expected value of the sample mean and the expected
value of the population?
A.
B.
C.
D.

Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
35. How does the variance of the sample mean compare to the variance of the population?
A. It is smaller and therefore suggests that averages have less variation than individual
observations.
B. It is larger and therefore suggests that averages have less variation than individual
observations.
C. It is smaller and therefore suggests that averages have more variation than individual
observations.
D. It is larger and therefore suggests that averages have more variation than individual
observations.
Blooms: Understand
Gradable: automatic
36. What is the relationship between the standard deviation of the sample mean and the
population standard deviation?
A.
B.
C.
D.

Blooms: Understand
Gradable: automatic
37. A nursery sells trees of different types and heights. These trees average 60 inches in height
with a standard deviation of 16 inches. Suppose that 75 pine trees are sold for planting at City
Hall. What is the standard deviation for the sample mean?
A. 1.85
B. 3.41
C. 4
D. 16
Blooms: Understand
Gradable: automatic
38. If a population is known to be normally distributed, what can be said of the sampling
distribution of the sample mean drawn from this population?
A. For any sample size n, the sampling distribution of the sample mean is normally distributed.
B. For a sample size n < 50, the sampling distribution of the sample mean is normally
distributed.
C. For a sample size n < 30, the sampling distribution of the sample mean is normally
distributed.
D. For a sample size n > 30, the sampling distribution of the sample mean is normally
distributed.
Blooms: Understand
Gradable: automatic
average, 28 days due to influenza. Assume that the standard deviation over this time period is
σ = 9 days. Upon graduation from elementary school, a random sample of 36 students is
taken and asked how many days of school they missed due to influenza. What is the expected
value for the sampling distribution of the number of school days missed due to influenza?
A. 6
B. 9
C. 28
D. 168
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
taken and asked how many days of school they missed due to influenza. What is the standard
deviation for the sampling distribution of the number of school days missed due to influenza?
A. 1.22
B. 1.50
C. 2.25
D. 9.00
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
taken and asked how many days of school they missed due to influenza. The probability that
the sample mean is less than 30 school days is _______.
A. 0.0918
B. 0.4129
C. 0.5871
D. 0.9082
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
taken and asked how many days of school they missed due to influenza. The probability that
the sample mean is between 25 and 30 school days is _______.
A. 0.0228
B. 0.0918
C. 0.8854
D. 0.9082
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
that the standard deviation is σ = $12,000. Given a sample of four electricians, what is the
standard deviation for the sampling distribution of the sample mean?
A. 6,000
B. 12,000
C. 36,000
D. 54,000
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
that the standard deviation is σ = $12,000. What is the probability that the average salary of
four randomly selected electricians exceeds $60,000?
A. 0.1587
B. 0.3085
C. 0.6915
D. 0.8413
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
that the standard deviation is σ = $12,000. What is the probability that the average salary of
four randomly selected electricians is less than $50,000?
A. 0.2514
B. 0.3707
C. 0.6293
D. 0.7486
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
that the standard deviation is σ = $12,000 dollars. What is the probability that the average
salary of four randomly selected electricians is more than $50,000 but less than $60,000?
A. 0.5899
B. 0.7486
C. 0.8413
D. 0.9048
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
47. Susan has been on a bowling team for 14 years. After examining all of her scores over that
period of time, she finds that they follow a normal distribution. Her average score is 225, with a
standard deviation of 13. What is the probability that in a one-game playoff, her score is more
than 227?
A. 0.2676
B. 0.4404
C. 0.5596
D. 0.7324
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
standard deviation of 13. If during a typical week Susan bowls 16 games, what is the
probability that her average score is more than 230?
A. 0.0618
B. 0.3520
C. 0.6480
D. 0.9382
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
standard deviation of 13. If during a typical week Susan bowls 16 games, what is the
probability that her average score for the week is between 220 and 228?
A. 0.0618
B. 0.2390
C. 0.7594
D. 0.8212
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
standard deviation of 13. If during a typical month Susan bowls 64 games, what is the
probability that her average score in this month is above 227?
A. 0.1093
B. 0.4404
C. 0.5596
D. 0.8907
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
that a class of 15 students will have a class average greater than 70 on Professor Elderman’s
final exam?
A. 0.0262
B. 0.6915
C. 0.9738
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
that a class of 36 students will have an average greater than 70 on Professor Elderman’s final
exam?
A. 0.0014
B. 0.3085
C. 0.6915
D. 0.9986
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
finds that the scores have a mean of 76 and a standard deviation of 12. Professor Elderman
offers his class of 36 a pizza party if the class average is above 80. What is the probability that
he will have to deliver on his promise?
A. 0.0228
B. 0.3707
C. 0.6293
D. 0.9772
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Professor Elderman’s class of 36 has a class average below 78?
A. 0.1587
B. 0.5675
C. 0.8413
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
55. According to the central limit theorem, the distribution of the sample means is normal if
_______.
A. the underlying population is normal

B. the sample size n ≥ 30
C. the standard deviation of the population is known
D. both the underlying population is normal and the sample size n ≥ 30 are correct
Blooms: Understand
Gradable: automatic
56. The central limit theorem states that, for any distribution, as n gets larger, the sampling
distribution of the sample mean _______.
A. becomes larger
B. becomes smaller
C. is closer to a normal distribution
D. is closer to the standard deviation
Blooms: Understand
Gradable: automatic
57. A random sample of size 36 is taken from a population with mean µ = 17 and standard
deviation σ = 6. What are the expected value and the standard deviation for the sampling
distribution of the sample mean?
A. 0.425 and 1.00

B. 0.425 and 2.83
C. 17 and 1.00
D. 17 and 2.83
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
deviation σ = 6. The probability that the sample mean is greater than 18 is _______.
A. 0.1587
B. 0.4325
C. 0.5675
D. 0.8413
Blooms: Understand
Gradable: automatic
deviation σ = 6. The probability that the sample mean is less than 15 is _______.
A. 0.0228
B. 0.3707
C. 0.6293
D. 0.9772
Blooms: Understand
Gradable: automatic
deviation σ = 6. The probability that the sample mean is between 15 and 18 is _______.
A. 0.0228
B. 0.8185
C. 0.8413
D. 0.8641
Blooms: Understand
Gradable: automatic
61. Using the central limit theorem, applied to the sampling distribution of the sample proportion,
what conditions must be met?
A.
and
B.
and
C.
and
D.
and

Blooms: Understand
Gradable: automatic
What are the expected value and the standard error for the sampling distribution of the sample
proportion?
A. 0.006 and 0.0024

B. 0.060 and 0.049
C. 0.600 and 0.0024
D. 0.600 and 0.049
Blooms: Understand
Gradable: automatic
The probability that the sample proportion is greater than 0.62 is _______.
A. 0.3409
B. 0.4082
C. 0.6591
D.

Blooms: Understand
Gradable: automatic
The probability that the sample proportion is less than 0.55 is _______.
A. ≈ 0
B. 0.1539
C. 0.3669
D. 0.8461
Blooms: Understand
Gradable: automatic
The probability that the sample proportion is between 0.55 and 0.62 is _______.
A. 0.1539
B. 0.5052
C. 0.6591
D. 0.8130
Blooms: Understand
Gradable: automatic
looks at the grades assigned to 60 students. What are the expected value and the standard
error for the proportion of students that receive an A?
A. 0.25 and 0.0031

B. 0.25 and 0.0559
C. 15.0 and 0.0031
D. 15.0 and 0.0559
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
looks at the grades assigned to 60 students. The probability that the proportion of students
that receive an A is 0.20 or less is _______.
A. 0.1867
B. 0.6266
C. 0.8133
D. 0.8900
Blooms: Understand
Gradable: automatic
who receive an A is between 0.20 and 0.35 is
A. 0.1867.
B. 0.7766
C. 0.8133.
D. 0.9633.
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
who receive an A is not between 0.20 and 0.30 is _______.
A. 0.1867
B. 0.3734
C. 0.6266
D. 0.8133
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
70. The labor force participation rate is the number of people in the labor force divided by the
number of people in the country who are of working age and not institutionalized. The BLS
reported in February 2012 that the labor force participation rate in the United States was
63.7% (Calculatedrisk.com). A marketing company asks 120 working-age people if they either
have a job or are looking for a job, or, in other words, whether they are in the labor force. What
are the expected value and the standard error for a labor participation rate in the company’s
sample?
A. 0.637 and 0.0019

B. 0.637 and 0.0439
C. 76.44 and 0.0019
D. 76.44 and 0.0439
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
have a job or are looking for a job, or, in other words, whether they are in the labor force. For
the company’s sample, the probability that the proportion of people who are in the labor force
is greater than 0.65 is _______.
A. 0.1179
B. 0.3000
C. 0.3821
D. 0.6179
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
is the probability that fewer than 60% of those surveyed are members of the labor force?
A. 0.2005
B. 0.7995
C. 0.8400
D. 0.9706
Blooms: Understand
Gradable: automatic
is the probability that between 60% and 62.5% of those surveyed are members of the labor
force?
A. 0.0243
B. 0.1931
C. 0.2005
D. 0.3936
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Indianapolis residents wanted the Giants to beat the Patriots. What is the probability that, of a
sample of 100 Indianapolis residents, at least 15% were rooting for the Patriots in Super Bowl
XLVI?
A. 0.0300
B. 0.0475
C. 0.4763
D. 0.9525
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Indianapolis residents wanted the Giants to beat the Patriots. What is the probability that from
a sample of 100 Indianapolis residents, fewer than 95% were rooting for the Giants in Super
Bowl XLVI?
A. 0.0300
B. 0.0475
C. 0.4763
D. 0.9525
Blooms: Understand
Gradable: automatic
a sample of 40 Indianapolis residents, fewer than 95% were rooting for the Giants in Super
Bowl XLIV?
A. 0.0474
B. 0.1469
C. 0.8531
D. Cannot be determined
Blooms: Understand
Gradable: automatic
a sample of 200 Indianapolis residents, fewer than 170 were rooting for the Giants in Super
Bowl XLIV?
A. 0.0091
B. 0.0212
C. 0.4954
D. 0.9908
Blooms: Understand
Gradable: automatic
78. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012),
Mississippi is the most conservative U.S. state, with 53.4 percent of its residents identifying
themselves as conservative. What is the probability that at least 60% of a random sample of
200 Mississippi residents identify themselves as conservative?
A. 0.0307
B. 0.3530
C. 0.4847
D. 0.9693
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
themselves as conservative. What is the probability that at least 100 but fewer than 115
respondents of a random sample of 200 Mississippi residents identify as conservative?
A. 0.1685
B. 0.3370
C. 0.7085
D. 0.8770
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
themselves as conservative. What is the probability that at least 50 respondents of a random
sample of 100 Mississippi residents do not identify themselves as conservative?
A. 0.0499
B. 0.2483
C. 0.4966
D. 0.7517
Blooms: Understand
Gradable: automatic
themselves as conservative. What is the probability that fewer than 45 respondents of a
random sample of 100 Mississippi residents do not identify themselves as conservative?
A. 0.0499
B. 0.1873
C. 0.3745
D. 0.6255
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
82.
Under what condition is the finite population correction factor used for computing the standard
error of and ?
A. n ≥ Np
B. n < Np
C. n ≥ 0.05N
D. n < 0.05N
Blooms: Understand
Gradable: automatic
Learning Objective: 07-06 Use a finite population correction factor.
Topic: The Finite Population Correction Factor
83. The finite correction factor is always _______.
A.
less than one, and therefore increases the standard deviations of and computed under
B.
less than one, and therefore decreases the standard deviations of and computed under
C.
greater than one, and therefore increases the standard deviations of and computed
under the assumption of infinite population
D.
greater than one, and therefore decreases the standard deviations of and computed
under the assumption of infinite population

Blooms: Understand
Gradable: automatic
84. A local company makes snack-size bags of potato chips. Each day, the company produces
batches of 400 snack-size bags using a process designed to fill each bag with an average of 2
ounces of potato chips. However, due to imperfect technology, the actual amount placed in a
given bag varies. Assume the amount placed in each of the 400 bags is normally distributed
and has a standard deviation of 0.1 ounce. What is the probability that a sample of 40 bags
has an average weight of at least 2.02 ounces?
A. 0.0150
B. 0.0918
C. 0.1038
D. 0.4207
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
85. Suppose 35% of homes in a Miami, Florida, neighborhood are under water (in other words,
the amount due on the mortgage is larger than the value of the home). There are 160 homes
in the neighborhood and 30 of those homes are owned by your friends. What is the probability
that fewer than 30% of your friends’ homes are under water?
A. 0.2611
B. 0.2843
C. 0.6400
D. 0.7389
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
86. Successful firms must focus on the quality of the products and services they offer. Which
factor or factors contribute to the quest for quality?
A. Global competition
B. Consumer expectations
C. Technological advances
D. All of these choices are correct
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
87. Acceptance sampling is _______.
A. a division of the population into strata

B. a plot of calculated statistics of the production process over time
C. an inspection of a portion of the products at the completion of the production process
D. a determination of a point at which the production process does not conform to
specifications
Blooms: Understand
Gradable: automatic
88. The detection approach to statistical quality control _______.
A. divides the population into strata

B. inspects a portion of the products at the completion of the production process
C. determines at which point the production process does not conform to specifications
D. uses the finite correction factor when the sample size is not much smaller than the
population size
Blooms: Understand
Gradable: automatic
89. In any production process, variation in the quality of the end product is inevitable. Chance
variation, or common variation, refers to _______.

Blooms: Understand
Gradable: automatic
90. In any production process, variations in the quality of the end product are inevitable.
Assignable variation refers to _______.

Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
91. A local company makes snack-size bags of potato chips. The company produces batches of
400 snack-size bags using a process designed to fill each bag with an average of 2 ounces of
potato chips. However, due to imperfect technology, the actual amount placed in a given bag
varies. Assume the population of filling weights is normally distributed with a standard
deviation of 0.1 ounce. The company periodically weighs samples of 10 bags to ensure the
proper filling process. The last five sample means, in ounces, were 1.99, 2.02, 2.07, 1.96, and
2.01. Is the production process under control?
A. No, because the sample means show a downward trend.

B. Yes, because the sample means show a downward trend.
C. No, because the sample means fall within the upper and lower control limits.
D. Yes, because the sample means fall within the upper and lower control limits.
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
92. A manufacturing process produces computer chips in batches of 100. The firm believes that
the percent of defective computer chips is 2%. If in five batches the percent of chips defective
were 3%, 8%, 1%, 2%, and 7%, how many of these fell outside of the upper or lower control
limits for the proportion of defective computer chips in a batch?
A. 0
B. 1
C. 2
D. 3
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
93. For quantitative data, the most appropriate control chart to monitor central tendency is a(n)
A.
chart.
B.
chart.
C. c chart.
D. s chart.
Blooms: Understand
Gradable: automatic
94. For qualitative data, the most appropriate control chart to monitor the proportion of a certain
characteristic is a(n)
A.
chart.
B.
chart.
C. c chart.
D. s chart.
Blooms: Understand
Gradable: automatic
95.
A random sample of 49 cast aluminum pots is taken from a production line once every day.
The number of defective pots is counted. The proportion of defective pots has been closely
examined in the past and is believed to be 0.05. What are the upper and lower control limits
for the chart?
A. -0.0434 and 0.1434

B. 0.0 and 0.1434
C. 0.1434 and -0.0434
D. 0.1434 and 0.0
Blooms: Understand
Gradable: automatic
96.
A random sample of 49 cast aluminum pots is taken from a production line once every day.
The number of defective pots is counted. The proportion of defective pots has been closely
examined in the past and is believed to be 0.05. The sample proportions for the week are
shown in the accompanying table.
Day of the Week Proportion Defective

Monday 0.06
Tuesday 0.07
Wednesday 0.04
Thursday 0.06
Friday 0.05
Is the production process in control?
A. No, because the sample proportions show a downward trend.

B. No, because the sample proportions fall within the upper and lower control limits.
C. Yes, because the sample proportions show a downward trend.
D. Yes, because the sample proportions fall within the upper and lower control limits.
Blooms: Understand
Gradable: automatic
97. John would like to conduct a survey in his neighborhood to get homeowners’ opinions on the
Delmarva proposal to switch to natural gas. Which of the following is an example of a stratified
sample?
A. John randomly chooses three streets and selects every third house on those streets.
B. John selects the first 25 homes that he passes as he walks into the entrance of the
development.
C. John selects every third house on each street.
D. John selects an equal number of two-story, split-level, and ranch houses.
Blooms: Understand
Gradable: automatic
Topic: Sampling
98. Suppose the average math SAT score for students enrolled at local community college is
490.4 with a standard deviation of 63.7. A random sample of 49 students has been selected.
The standard error of the mean for this sample is _______.
A. 10.6
B. 9.1
C. 63.7
D. 28.4
Blooms: Understand
Gradable: automatic
99. According to the IRS, the average refund in the 2011 tax year was $3,109. Assuming that the
standard deviation for these refunds was $874, what is the standard error of the sample mean
for a random sample of 50 tax returns?
A. $74.66
B. $100.56
C. $123.60
D. $152.25
Blooms: Understand
Gradable: automatic
100. According to the Bureau of Labor Statistics it takes an average of 22 weeks for someone over
55 to find a new job. Assume that the probability distribution is normal and that the standard
deviation is two weeks. What is the probability that eight workers over the age of 55 take an
average of more than 20 weeks to find a job?
A. 0.8977
B. 0.6777
C. 0.7788
D. 0.9977
Blooms: Understand
Gradable: automatic
101. According to the Bureau of Labor Statistics it takes an average of 16 weeks for young workers
to find a new job. Assume that the probability distribution is normal and that the standard
deviation is two weeks. What is the probability that 20 young workers average less than 15
weeks to find a job?A. 0.0125
A. 0.0225
B. 0.0450
C. 0.0375
Blooms: Understand
Gradable: automatic
102. Suppose the local Best Buy store averages 522customers every day entering the facility with a
standard deviation of 124 customers. A random sample of 40 business days was selected.
What is the probability that the average number of customers in the sample is between 530
and 540?
A. 0.2387
B. 0.1621
C. 0.3057
D. 0.0572
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
103. A key metric in the cell phone industry is average revenue per user (ARPU), which represents
the average dollar amount that a customer spends per store visit. In 2011, ATamp;T reported
their ARPU as $63.76. Suppose the standard deviation for this population is $22.50. What is
the probability that the ARPU will be between $60 and $63 from a random sample of 38
customers? A. 0.5517
A. 0.4168
B. 0.2653
C. 0.1515
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
104. According to the recent report, scientists in New England say they have identified a set of
genetic variants that predicts extreme longevity with 77% accuracy. Assume 150 patients
decide to get their genome sequenced. If the claim by scientists is accurate, what is the
probability that more than 120 patientswill get a correct diagnosis for extreme longevity?A.
0.5151
A. 0.2219
B. 0.1515
C. 0.1922
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
105. According to the recent report, scientists in New England say they have identified a set of
genetic variants that predicts extreme longevity with 77% accuracy. Assume 150 patients
decide to get their genome sequenced. If the claim by scientists is accurate, what is the
probability that fewer than 70% of the patientswill get a correct diagnosis for extreme
longevity?A. 0.0207
A. 0.1422
B. 0.0722
C. 0.2214
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
106. We are told that 8% of college graduates, under the age of 25 are unemployed. What is the
probability that at least 200 college graduates under age 25 are employed?
A. 0.8925
B. 0.7088
C. 0.2912
D. 0.1075
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
107. The finite population correction factor for the standard error of the mean should be used when
the ratio of the sample size to the size of population exceeds _______.
A. 1%
B. 2%
C. 3%
D. 5%
Blooms: Understand
Gradable: automatic
108.
A packaging company strives to maintain a constant temperature for its packages that require
a specific temperature range. It is believed that the temperature of packages follows a normal
distribution with a mean of 5 degrees Celsius and a standard deviation of 0.3 degree Celsius.
Inspectors take weekly samples for five weeks of eight randomly selected boxes and report
their temperatures. The five weekly sample means are shown in the table below.
Week 1
Week 2
Week 3
Week 4
Week 5
How many points are outside the control limits?
A. 1
B. 2
C. 3
D. 4
Blooms: Understand
Gradable: automatic
109.
The California Department of Education wants to gauge the difficulty of a new exam by having
a sample of students at a particular school take the exam. The quality of the students at the
chosen school varies widely and the school administrators are allowed to choose who gets to
take the exam. The administrators have a strong incentive for the school to do well on the
exam. Do you think the results will represent the true ability of the students at school? What
kind of bias, if any, do you think will be present? Explain.
The administrators will probably systematically choose the good students to take the test. This
is a systematic exclusion of the bad students from the sample and will lead to a biased score.
This is called selection bias.

Blooms: Apply
Difficulty: 1 Easy
Gradable: manual
Topic: Sampling
110.
The campaign manager for a candidate for governor in Arizona wants to conduct a poll to
better understand his candidate’s chances for the upcoming election. a. What is the population
of interest? b. Why may the poll be biased if a simple random sample of voters in the last
gubernatorial election (four years prior) is taken?
a. The campaign manager wants to know how voters in the upcoming election view his
candidate. That is the population of interest. b. Voters from the last election may not vote in the
coming election. Voters who were too young to vote four years ago are not included using this
sampling method. Additionally, migration into and out of Arizona will change the voter rolls over
a four-year period.

Blooms: Analyze
Gradable: manual
Topic: Sampling
111.
It is known that college students at a local community college study 12 hours per week with a
standard deviation of five hours. What are the expected value and variance for a sample of
nine students?
The expected value of is the same as the expected value of individual observation, that is,
. The variance of the sample mean is computed as .

Blooms: Apply
Difficulty: 1 Easy
Gradable: manual
112.
A fast-food restaurant uses an average of 110 grams of meat per burger patty. Suppose the
amount of meat in a burger patty is normally distributed with a standard deviation of 20 grams.
What is the probability that the average amount of meat in four randomly selected burgers is
less than 105 grams?
If is normal, we can transform it into a standard normal random variable as , and
any value of on has a corresponding value z on Z given by . Compute

. Use z table.

Blooms: Apply
Gradable: manual
113.
Suppose residents in a well-to-do neighborhood pay an average overall tax rate of 25% with a
standard deviation of 8%. Assume tax rates are normally distributed. What is the probability
that the mean tax rate of 16 randomly selected residents is between 20% and 30%?
any value of on has a corresponding value z on Z given by . Compute P(20% ≤

≤ 30%). Note that P(z1 ≤ Z ≤ z2) = P(Z ≤ z2) – P(Z ≤ z1). Use z table.

Blooms: Apply
Gradable: manual
114.
Suppose the average casino patron in Las Vegas loses $110 per day, with a standard
deviation of $700. Assume winnings/losses are normally distributed. a. What is the probability
that a random group of nine people averages more than $500 in winnings on their one-day trip
to Las Vegas? b. What is the probability that a random group of nine people averages more
than $500 in losses on their one-day trip to Las Vegas?
a. The standard deviation of is calculated as the positive square root of the variance. We call
it the standard error of the sample mean, and it is computed as If is normal, we
can transform it into a standard normal random variable as , and any value of on
has a corresponding value z on Z given by . Compute P( > 500). Note that P(Z > z)
= 1 – P(Z ≤ z). Use z table. b. Compute P( < −500). Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
115.
A ski resort gets an average of 2,000 customers per weekday with a standard deviation of 800
customers. Assume the underlying distribution is normal. What is the probability a ski resort
averages between 1,500 customers and 3,000 customers per weekday over the course of four
weekdays?
any value of on has a corresponding value z on Z given by . Compute P(1,500 ≤

≤ 3,000). Note that P(z1 ≤ Z ≤ z2) = P(Z ≤ z2) – P(Z ≤ z1). Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
116.
A mining company made some changes to their mining process in an attempt to save fuel.
Before the changes were made, it took an average of 20 gallons of diesel fuel to mine 1,000
pounds of copper. Suppose the standard deviation of fuel used per 1,000 pounds of copper
mined is 6 gallons. After the changes were made, the company only used an average of 18
gallons of diesel for the next 30,000 pounds of copper mined. a. How unusual would it be to
get a sample average of 18 gallons or less for 30,000 pounds of copper mined if the changes
to the mining process had no effect? b. Do you think the changes in the mining process
actually lowered the fuel used? Explain.
any value of on has a corresponding value z on Z given by . Compute P( ≤ 18).

Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
117.
A gym knows that each member, on average, spends 70 minutes at the gym per week, with a
standard deviation of 20 minutes. Assume the amount of time each customer spends at the
gym is normally distributed. a. What is the probability that a randomly selected customer
spends less than 65 minutes at the gym? b. Suppose the gym surveys a random sample of 49
members about the amount of time they spend at the gym each week. What are the expected
value and standard deviation (standard error) of the sample mean of the time spent at the
gym? c. If 49 members are randomly selected, what is the probability that the average time
spent at the gym exceeds 75 minutes?
a. If X is normal, we can transform it into a standard normal random variable as , and

any value of x on X has a corresponding value z on Z given by . Compute P(X < 65).
Use z table.
b. The expected value of is the same as the expected value of individual observation, that
is, E( ) = E(X) = μ. The standard deviation of is calculated as the positive square root of the
variance. The standard error of the sample mean is computed as .
c. If is normal, we can transform it into a standard normal random variable as , and
any value of on has a corresponding value z on Z given by . Compute P( > 75).

Note that P(Z > z) = 1 – P(Z ≤ z). Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
118.
A book publisher knows that it takes an average of nine business days from when the material
for the book is finalized until the first edition is printed and ready to sell. Suppose the exact
amount of time has a standard deviation of four days. a. Suppose the publisher examines the
printing time for a sample of 36 books. What is the probability that the sample mean time is
shorter than eight days? b. Suppose the publisher examines the printing time for a sample of
36 books. What is the probability that the sample mean time is between 7 and 10 days? c.
Suppose the publisher signs a contract for the printer to print 100 books. If the average
printing time for the 100 books is longer than 9.3 days, the printer must pay a penalty. What is
the probability the penalty clause will be activated? d. Suppose the publisher signs a contract
for the printer to print 10 books. If the average printing time for the 10 books is longer than 9.7
days, the printer must pay a penalty. What is the probability the penalty clause will be
activated?
any value of on has a corresponding value z on Z given by .

a. Compute P( < 8). Use z table.
b. Compute P(7 ≤ ≤ 10). Note that P(z1 ≤ Z ≤ z2) = P(Z ≤ z2) – P(Z ≤ z1). Use z table.
c. Compute P( > 9.3). Note that P(Z > z) = 1 – P(Z ≤ z). Use z table.
d. As a general guideline, the normal distribution approximation is justified when n ≥ 30.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
119.
In a large metropolitan area, the top providers for television and Internet services are a phone
company, a satellite company, and a cable company. The satellite company serves 43% of the
homes in the area. What is the probability that in a survey of 1,000 homes, more than 447 of
them are served by the satellite company?
any value of on has a corresponding value z on Z given by . Compute P( >

0.447). Note that P(Z > z) = 1 – P(Z ≤ z). Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
120.
In early 2012, the U.S. Congress approval rating was approximately 10% (Reuters.com). In a
poll of 400 Americans, what is the probability that their approval rating is between 8% and
12%?
any value of on has a corresponding value z on Z given by . Compute P(0.08 ≤

≤ 0.12). Note that P(z1 ≤ Z ≤ z2) = P(Z ≤ z2) – P(Z ≤ z1). Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
121.
A tutoring company claims that 75% of the high school students who hire one of their tutors
will improve their grades. a. In a sample of 100 high school students, what is the probability
that 80% or more improved their grades? b. In a sample of 200 high school students, what is
the probability that 80% or more improved their grades? c. Comment on the reason for the
difference between the computed probabilities in parts a and b.

a. and b. Compute P( ≥ 0.80). Note that P(Z ≥ z) = 1 − P(Z < z). Use z table.
c. The larger sample size makes the standard error of lower, as well as lower the probability.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
122.
A school is required by the government to give some randomly chosen students a
standardized test. From previous experience, the school knows about 68% of their students
will receive passing scores in math and English. To improve funding, the school needs to score
at least 70% on the standardized test. This year the school can decide if it wants to test 100 or
200 students. Should the school test 100 or 200 students? Explain the answer.
any value of on has a corresponding value z on Z given by . Compute P( >

0.70) for both sample sizes and compare them. Note that P(Z ≥ z) = 1 – P(Z < z). Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
123.
The office of career services at a major university knows that 74% of its graduates find full-
time positions in the field of their choosing within six months of graduation. Suppose the office
of career services surveys 25 alumni six months after graduation. a. What is the probability
that at least 80% of the alumni have a job in the field of their choosing? b. What is the
probability that between 60% and 76% of the alumni have a job in the field of their choosing?
c. What is the probability that fewer than 60% of the alumni have a job in the field of their
choosing?

a. Compute P( ≥ 0.8). Note that P(Z ≥ z) = 1 – P(Z < z). Use z table. Compute P( < 8). Use z
table.
b. Compute P(0.6 ≤ ≤ 0.76). Note that P(z1 ≤ Z ≤z2) = P(Z ≤ z2) – P(Z ≤ z1). Use z table.
c. Compute P( < 0.6). Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
124.
Administrative assistants in a local university have been asked to prove their proficiency in the
use of spreadsheet software by taking a proficiency test. Historically, the mean test score has
been 74 with a standard deviation of 4. A random sample of size 40 is taken from the 100
administrative assistants and asked to complete the proficiency test. a. Calculate the expected
value and the standard deviation (standard error) of the sample mean. b. What is the
probability that the sample mean score is more than 75, the predetermined passing score?
a. The expected value of the sample mean is computed as E( ) = μ. The finite population
correction factor is used when the sample constitutes at least 5% of the population. The
standard deviation (standard error) of the sample mean is computed as .

b. If X is normal, we can transform it into a standard normal random variable as , and
any value of x on X has a corresponding value z on Z given by . Compute P( > 75).
Note that P(Z > z) = 1 – P(Z ≤ z). Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
125. In a small town, there are 3,000 registered voters. An editor of a local newspaper would like to
predict the outcome of the next election; in particular, he is interested in the likelihood that Eli
Brady will be elected. The editor believes that Eli, a local hero, will garner 54% of the vote. A
poll of 500 registered voters is taken. Assuming that the editor’s belief is true, calculate: a. The
expected value and the standard deviation (standard error) of the sample proportion. b. The
probability that the sample proportion score is more than 0.58. Answers: a. 0.54 and 0.0204 b.
0.025
a. The expected value of the sample proportion is computed as E( ) = p. The finite population
correction factor is used when the sample constitutes at least 5% of the population. The
standard deviation (standard error) of the sample proportion is computed as
b. If is normal, we can transform it into a standard normal random variable as ,
and any value of on has a corresponding value z on Z given by . Compute P( >

0.58). Note that P(Z > z) = 1 – P(Z ≤ z). Use z table.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
126.
A random sample of nine cast aluminum pots is taken from a production line once every hour.
The interior diameter of the pots is measured and the sample mean is calculated. The target
for the diameter is 12 inches and the standard deviation for the pot diameter is 0.05 inches.
Assume the pot diameter is normally distributed. a. Construct the centerline and the upper and
lower control limits for the chart. b. The means of the samples for a given eight-hour day are
12.01 12.06 11.97 12.08 11.92 11.95 11.97 12.04. Plot these values on the chart. c.
Does it appear that the process is under control? Explain.
a. In general, the upper and lower control limits are computed as and
.
b. Use Excel to construct the chart.
c. The process needs adjustment if some sample means fall outside the control limits.

Blooms: Apply
Gradable: manual
127.
In a recent investigation, the National Highway Traffic Safety Administration (NHTSA) found
that the Chevrolet Volt and other electric vehicles do not pose a greater risk of fire than
gasoline-powered vehicles (The Boston Globe, January 25, 2012). Specifically, it was
determined that “no discernible defect trend exists.” Suppose a consumer advocacy group
wants to verify some of these claims by constructing a chart. The group expects 2% of
electric cars to catch fire each month. For each of the last six months, 500 electric car owners
are asked if their cars have caught fire. These sample proportions are obtained:
0.010 0.020 0.015 0.030 0.025 0.015. a. Assuming that the group expectation is correct,
construct the centerline and the upper and lower control limits for the chart. b. Do the
consumer group’s findings support those of the NHTSA? Explain the answer.
a. In general, the upper and lower control limits for the proportion are computed as
and .
c. The process needs adjustment if some sample proportions fall outside the control limits.

Blooms: Apply
Gradable: manual
128.
A bottled water plant uses a production process designed to fill bottles with 20 ounces of
water. The population of filling volumes is normally distributed with a standard deviation of 1.3
ounces. Periodically, process engineers take 20-bottle samples and compute the sample
mean.
a. What are the upper and lower control limits? b. Suppose the last five sample means were
19.4 20.2 20.5 20.7 21.1 ounces. Is the process under control?
In general, the upper and lower control limits are computed as and
. Use Excel to construct the chart. The process needs adjustment if some
sample means fall outside the control limits.

Blooms: Understand
Gradable: manual
129.
A manufacturing process produces tubeless mountain bike tires in batches of 200. Past
records show that 6% of the tires will not hold air. An engineer tests five batches, each one
week apart, and shows the proportion of tires that will not hold air below. Proportion of tires
that will not hold air:
0.074 0.068 0.062 0.055 0.040
a. Construct the centerline and the upper control limit for the chart.
b. Should the engineer be worried? Comment on any trend in the proportion of tubeless tires
that will not hold air.
In general, the upper and lower control limits for the proportion are computed as
and . Centerline is equal the value of p.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
130.
A large accounting firm gives out 1,000 job offers every year to new college graduates.
Suppose that 85% of those who received offers accept the position. The following shows the
number of graduates who have accepted jobs in the last four years. Number of job offers
accepted:
2007 2008 2009 2010 2011
840 860 870 830 810
a. Construct the centerline and the upper and lower control limits for the chart.
b. Does the company need to worry about its ability to attract college graduates to the firm?
In general, the upper and lower control limits for the proportion are computed as
and . Centerline is equal the value of p.

Blooms: Apply
Difficulty: 3 Hard
Gradable: manual
Chapter 07 Summary
Category # of Questions
AACSB: Analytical Thinking 130
Accessibility: Keyboard Navigation 31
Blooms: Analyze 1
Blooms: Apply 51
Blooms: Remember 30
Blooms: Understand 48
Difficulty: 1 Easy 30
Difficulty: 2 Medium 55
Difficulty: 3 Hard 45
Gradable: automatic 108
Gradable: manual 22
Jaggia - Chapter 07 130
Learning Objective: 07-01 Explain common sample biases. 13
Learning Objective: 07-02 Describe various sampling methods. 6
Learning Objective: 07-03 Describe the sampling distribution of the sample mean. 48
Learning Objective: 07-04 Explain the importance of the central limit theorem. 10
Learning Objective: 07-05 Describe the sampling distribution of the sample proportion. 30
Learning Objective: 07-06 Use a finite population correction factor. 7
Learning Objective: 07-07 Construct and interpret control charts for quantitative and qualitative data. 20
Topic: Sampling 18
Topic: Statistical Quality Control 19
Topic: The Central Limit Theorem 3
Topic: The Finite Population Correction Factor 7
Topic: The Sampling Distribution of the Sample Mean 52
Topic: The Sampling Distribution of the Sample Proportion 31

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Business Statistics Communicating With Numbers 2nd Edition Jaggia Test Bank 1

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BUSINESS STATISTICS COMMUNICATING

WITH NUMBERS 2ND EDITION JAGGIA

Full downloadat link:

Test bank: https://testbankpack.com/p/test-bank-for-business-statistics-

Solution Manual: https://testbankpack.com/p/solution-manual-for-business-

6. A parameter is a random variable, whereas a sample statistic is a constant.

7. When a statistic is used to estimate a parameter, the statistic is referred to as an estimator. A

10. A point estimator refers to an estimator that provides a single value.

16. Stratified random sampling is preferred when the objective is to _______.

17. Cluster sampling is preferred when the objective is to _______.

22. A preferred approach to quality control is the _________ approach.

24. Bias can occur in sampling. Bias refers to _______.

A. the division of the population into overlapping groups

25. Selection bias occurs when _______.

A. the population has been divided into strata

A. the population has been divided into strata

27. Which of the following is not a form of bias?

A. Portions of the population are excluded from the sample.

32. Which of the following is considered an estimator?

33. Which of the following is considered an estimate?

A. the underlying population is normal

A. 0.425 and 1.00

A. 0.006 and 0.0024

A. 0.25 and 0.0031

A. 0.637 and 0.0019

83. The finite correction factor is always _______.

87. Acceptance sampling is _______.

A. a division of the population into strata

A. divides the population into strata

A. the variation caused by stratified random sampling

A. the variation caused by stratified random sampling

A. No, because the sample means show a downward trend.

A. -0.0434 and 0.1434

Day of the Week Proportion Defective

Is the production process in control?

A. No, because the sample proportions show a downward trend.

How many points are outside the control limits?

0.074 0.068 0.062 0.055 0.040

2007 2008 2009 2010 2011

840 860 870 830 810

1. Bias refers to the tendency of a sample statistic to systematically over- or underestimate a

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

Most statistical methods presume simple random sample.

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

7. When a statistic is used to estimate a parameter, the statistic is referred to as an estimator. A

The statistic is used to estimate a parameter.

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

A point estimator provides a single value or a point.

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking