Essentials of Business Analytics 2nd Edition Camm Test Bank

Essentials of Business Analytics 2nd
Edition Camm Test Bank

Visit to download the full and correct content document: https://testbankdeal.com/dow
nload/essentials-of-business-analytics-2nd-edition-camm-test-bank/
CH 6 - Statistical Inference
1. The finite correction factor should be used in the computation of the standard deviation of the sample mean and the
standard population when n/N is
a. greater than 0.05.
b. greater than 0.5.
c. less than 0.05.
d. less than 0.5.
ANSWER: a
RATIONALE: The finite population correction factor can be ignored when n/N is less than or equal to
0.05.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: SAMPLING DISTRIBUTIONS, Page 239
NATIONAL STANDARDS: United States - BUSPROG: Analytic skills - and DISC: Descriptive Statistics
KEYWORDS: Blooms: Knowledge
2. The purpose of statistical inference is to make estimates or draw conclusions about a

a. sample based upon information obtained from the population.
b. population based upon information obtained from the sample.
c. statistic based upon information obtained from the population.
d. mean of the sample based upon the mean of the population.
ANSWER: b
RATIONALE: When we make estimates of or draw conclusions about one or more characteristics of a
population based upon the sample, we are using the process of statistical inference.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Introduction to Statistical Inference, Page 227
3. A parameter is a numerical measure from a population, such as

a. u.
b. .
c. s.
d. .
ANSWER: a
RATIONALE: An example of a parameter from a population is a population mean, u.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: SELECTING A SAMPLE, Page 228
4. A simple random sample of size n from a finite population of size N is a sample selected such that each possible sample
of size
a. N and n have the same probability of being selected.
Copyright Cengage Learning. Powered by Cognero. Page 1
b. n has a probability of 0.5 of being selected.

c. n has a probability of 0.05 of being selected.
d. n has the same probability of being selected.
ANSWER: d
RATIONALE: A simple random sample of size n from a finite population of size N is a sample selected
such that each possible sample of size n has the same probability of being selected.
POINTS: 1
DIFFICULTY: Easy
5. The random numbers generated using Excels RAND function follows a ________________ probability distribution
between 0 and 1.
a. normal
b. uniform
c. binomial
d. random
ANSWER: b
RATIONALE: The random numbers generated using Excels RAND function follows a uniform probability
distribution between 0 and 1.
POINTS: 1
6. A random sample selected from an infinite population is a sample selected such that each element selected comes from
the same ________________ and each element is selected ______________
a. population; independently.
b. population; simultaneously.
c. sample; independently.
d. sample; simultaneously.
ANSWER: a
RATIONALE: A random sample from an infinite population is a sample selected such that each element
selected comes from the same population and each element is selected independently.
POINTS: 1
REFERENCES: POINT ESTIMATION, Page 231
7. The value of the ___________ is used to estimate the value of the population parameter.
a. population statistic
b. sample parameter
c. population estimate
d. sample statistic
ANSWER: d
RATIONALE: To estimate the value of a population parameter, we compute a corresponding characteristic
of the sample, referred to as a sample statistic.
POINTS: 1
8. The population parameter value and the point estimate differ because a sample is not a census of the entire population,
but it is being used to develop the
a. population parameter.
b. point estimate.
c. population mean.
d. standard error.
ANSWER: b
RATIONALE: These differ because a sample is not a census of the entire population, but it is being used to
develop the point estimates.
POINTS: 1
DIFFICULTY: Easy
9. The CEO of a company wants to estimate the percent of employees that use company computers to go on Facebook
during work hours with 95% confidence. He selects a random sample of 150 of the employees and finds that 53 of them
logged onto Facebook that day. What is the point estimate of the proportion of the population that logged onto Facebook
that day?
a. 0.25
b. 0.35
c. 0.53
d. 0.65
ANSWER: b
RATIONALE: The point estimate of the proportion of the population that logged onto Facebook that day is
53/150 = 0.35.
POINTS: 1
KEYWORDS: Blooms: Application
10. A simple random sample of 31 observations was taken from a large population. The sample mean equals 5. Five is a
a. population parameter.
b. point estimate.
c. population mean.
d. standard error.
ANSWER: b
RATIONALE: A point estimate is the value of a point estimator used in a particular instance, such as an
estimate of a population parameter.
POINTS: 1
DIFFICULTY: Easy
11. The basis for using a normal probability distribution to approximate the sampling distribution of the sample means and
population mean is
a. Chebyshev’s theorem.
b. the empirical rule.
c. the central limit theorem.
d. Bayes’ theorem.
ANSWER: c
RATIONALE: Central Limit Theorem states: In selecting random samples of size n from a population, the
sampling distribution of the sample mean can be approximated by a normal distribution as
the sample size becomes large.
POINTS: 1
DIFFICULTY: Easy
12. When the expected value of the point estimator is equal to the population parameter it estimates, it is said to be
a. unbiased.
b. precise.
c. symmetric.
d. predicted.
ANSWER: a
RATIONALE: When the expected value of a point estimator equals the population parameter, we say the
point estimator is unbiased.

POINTS: 1
DIFFICULTY: Easy
13. A statistics teacher started class one day by drawing the names of 10 students out of a hat and asked them to do as
many pushups as they could. The 10 randomly selected students averaged 15 pushups per person with a standard deviation
of 9 pushups.Suppose the distribution of the population of number of pushups that can be done is approximately normal.
What is the standard error of the mean?
a. 0.900
b. 2.876
c. 3.061
d. 4.743
ANSWER: b
RATIONALE:
The standard error of the mean for a t distribution is For this problem, the standard
error of the mean =
POINTS: 1
14. If the expected value of the sample statistic is equal to the population parameter being estimated, the sample statistic is
said to
a. have low variability.

b. be an unbiased estimator of the population parameter.
c. have high precision.
d. be a random estimator of the population parameter.
ANSWER: b
RATIONALE: If the expected value of the sample statistic is equal to the population parameter being
estimated, the sample statistic is said to be an unbiased estimator of the population
parameter.
POINTS: 1
DIFFICULTY: Easy
15. For a population with an unknown distribution, the form of the sampling distribution of the sample mean is
a. approximately normal for small sample sizes.

b. exactly normal for large sample sizes.

c. exactly normal for small sample sizes.
d. approximately normal for large sample sizes.
ANSWER: d
RATIONALE: Central Limit Theorem states: In selecting random samples of size n from a population, the
sampling distribution of the sample mean can be approximated by a normal distribution as
the sample size becomes large.
POINTS: 1
during work hours with 95% confidence. He selects a random sample of 150 of the employees and finds that 53 of them
logged onto Facebook that day. What is the estimate of the standard error of the proportion
a. 0.039
b. 0.050
c. 0.350
d. 0.455
ANSWER: a
RATIONALE: The estimate of the standard error of the proportion is
POINTS: 1
17. An estimate of a population parameter that provides an interval of values believed to contain the value of the
parameter is known as the
a. confidence level.
b. interval estimate
c. parameter level.
d. population estimate.
ANSWER: b
RATIONALE: An estimate of a population parameter that provides an interval of values believed to
contain the value of the parameter is known as the interval estimate.
POINTS: 1
REFERENCES: INTERVAL ESTIMATION, Page 246
18. In order to determine an interval for the mean of a population with unknown standard deviation a sample of 24 items
is selected. The mean of the sample is determined to be 23. The number of degrees of freedom for reading the t value is
a. 21.
b. 22.
c. 23.
d. 24.
ANSWER: c
RATIONALE: The degrees of freedom for this t distribution is n – 1 = 23.
POINTS: 1
DIFFICULTY: Easy
19. As the number of degrees of freedom for a t distribution increases, the difference between the t distribution and the
standard normal distribution
a. becomes larger.
b. becomes smaller.
c. stays the same.
d. fluctuates.
ANSWER: b
RATIONALE: As the number of degrees of freedom for a t distribution increases, the difference between
the t distribution and the standard normal distribution becomes smaller.
POINTS: 1
REFERENCES: INTERVAL ESTIMATION, Pages 247-248
20. The t value for a 99% confidence interval estimation based upon a sample of size 10 is
a. 1.645.
b. 1.812.
c. 2.576.
d. 3.169.
ANSWER: d
RATIONALE: The t value for a 99% confidence interval estimation based upon a sample of size 10 is
3.169. This can be found using the Excel function T.INV.2T(1 – 0.99, 10-1).
POINTS: 1
21. In interval estimation, as the sample size becomes larger, the interval estimate
a. becomes narrower.
b. becomes wider.
c. remains the same, since the mean is not changing.
d. gets closer to 1.96.
ANSWER: a
RATIONALE: In interval estimation, as the sample size becomes larger, the interval estimate becomes
narrower.
POINTS: 1
KEYWORDS: Blooms: Comprehension
The 95% confidence interval for the true mean number of pushups that can be done is
a. 5.75 to 24.25.
b. 8.56 to 21.40.
c. 11.31 to 18.55.
d. 13.02 to 16.98.
ANSWER: b
RATIONALE: The 95% confidence interval for the true mean number of pushups that can be done is
POINTS: 1
If we would like to capture the population mean with 95% confidence the margin of error would be
a.
b.
c.
d.

ANSWER: c
RATIONALE:
The margin of error would be The critical value for 95% confidence with
9 degrees of freedom is 2.262 and the sample standard deviation is 9.
POINTS: 1
24. A sample of 37 AA batteries had a mean lifetime of 584 hours. A 95% confidence interval for the population mean
was 579.2 < μ < 588.8. Which statements is the correct interpretation of the results?
a. We are 95% confident that the mean lifetime of all the bulbs in the population is between 579.2 hours and
588.8 hours.
b. The probability that the population mean is between 579.2 hours and 588.8 hours is 0.95.
c. 95% of the light bulbs in the sample had lifetimes between 579.2 hours and 588.8 hours.
d. None of these statements correctly interpret the results.
ANSWER: a
RATIONALE: We are 95% confident that the mean lifetime of all the bulbs in the population is between
579.2 hours and 588.8 hours.
POINTS: 1
DIFFICULTY: Easy
25. In a random sample of 400 registered voters, 120 indicated they plan to vote for Trump for President. Determine a
95% confidence interval for the proportion of all the registered voters who will vote for Trump.
a. (0.25, 0.34)
b. (0.27, 0.32)
c. (0.29, 0.30)
d. Cannot be determined from the information given.
ANSWER: a
RATIONALE:
Use the formula Filling in the given values yields
so the 95% confidence interval ranges from 0.25 to 0.34.
POINTS: 1

26. Using an α = 0.04 a confidence interval for a population proportion is determined to be 0.65 to 0.75. If the level of
significance is decreased, the interval for the population proportion
a. becomes narrower.
b. becomes wider.
c. does not change.
d. remains the same.
ANSWER: b
RATIONALE: If the level of significance is decreased, the interval for the population proportion becomes
wider. Decreasing a is equivalent to increasing the confidence level. Higher confidence
yields wider intervals.
POINTS: 1
during work hours with 95% confidence.He selects a random sample of 150 of the employees and finds that 53 of them
logged onto Facebook that day.Compute the 95% confidence interval for the population proportion.
a.
b.
c.
d.
ANSWER: a
RATIONALE: The general formula for an interval estimate of a population proportion is
In this case, n = 150, and the critical value is 1.96. The resulting 95%
confidence interval for the population proportion is
POINTS: 1

28. Two approaches to drawing a conclusion in a hypothesis test are

a. p-value and critical value.
b. one-tailed and two-tailed.
c. Type I and Type II.
d. null and alternative.
ANSWER: a
RATIONALE: There are two methods that can be used to draw a conclusion while carrying out a
hypothesis test. The value of the test statistic can be assessed using a p-value method or
the test statistic can be compared to a critical value in order to test for significance.
POINTS: 1
REFERENCES: HYPOTHESIS TESTS, Pages 257-279
29. A Type I error is committed when

a. a true alternative hypothesis is not accepted.
b. a true null hypothesis is rejected.
c. the critical value is greater than the value of the test statistic.
d. the validity of a claim was rejected.
ANSWER: b
RATIONALE: If we reject H0 when H0 is true, we have made a type I error. Said another way, a type I
error is committed when a true null hypothesis is rejected.
POINTS: 1
REFERENCES: HYPOTHESIS TESTS, Page 261
30. What are the two decisions that you can make from performing a hypothesis test?
a. Reject the null hypothesis; Fail to reject the null hypothesis

b. Accept the null hypothesis; Accept the alternative hypothesis
c. Make a type I error; Make a type II error
d. Reject the alternative hypothesis; Accept the null hypothesis
ANSWER: a
RATIONALE: When we draw a conclusion, we either have enough evidence to reject the null hypothesis
or we do not have enough evidence to reject the null hypothesis.
POINTS: 1
31. A null and alternative hypothesis for a one proportion z test are given as H0: p = 0.8, Ha: p < 0.8. This hypothesis test
is
a. lower-tailed.
b. upper-tailed.
c. two-tailed.
d. these hypotheses are incorrectly stated.
ANSWER: a
RATIONALE: If the alternative hypothesis contains the not-equal-to inequality symbol, then it is a two-
tailed test. If the alternative hypothesis contains the less-than inequality symbol, then it is a
left-tailed test. If the alternative hypothesis contains the greater-than inequality symbol,
then it is a right-tailed test.
POINTS: 1
32. A pizza shop advertises that they deliver in 30 minutes or less or it is free. People who live in homes that are
located on the opposite side of town believe it will take the pizza shop longer than 30 minutes to make and deliver
the pizza. Write the null and alternative hypotheses that can be used to conduct a significance test.
a. H0: m ≤ 30, Ha: m > 30
b. H0: m < 30, Ha: m > 30
c. H0: m ≥ 30, Ha: m < 30
d. H0: m > 30, Ha: m < 30
ANSWER: a
RATIONALE: The null hypothesis, is a statement that contains a statement of equality. The null
hypothesis is that the mean delivery time is no more than 30 minutes. The alternative
hypothesis, is the complement of the null hypothesis.
POINTS: 1
33. A pizza shop advertises that they deliver in 30 minutes or less or it is free. People who live in homes that are
located on the opposite side of town believe it will take the pizza shop longer than 30 minutes to make and deliver
the pizza. A random sample of 50 deliveries to homes across town was taken and the mean time was computed to
be 32 minutes. What is the appropriate symbol to represent the value, 32?
a. u = 32
b.
c. n =32
d.
ANSWER: b
RATIONALE: The value 32 is the sample mean. The appropriate symbol is

POINTS: 1
34. The proportion of dental procedures that are extractions is 0.16. Which of the following exemplifies a type I error in
this situation?
a. Reject the claim that the proportion of dental procedures that are extractions is 0.16 when the proportion is
actually different from 0.16.
b. Fail to reject the claim that the proportion of dental procedures that are extractions is 0.16 when the proportion
is actually 0.16
c. Reject the claim that the proportion of dental procedures that are extractions is 0.16 when the proportion is
actually 0.16
d. Fail to reject the claim that the proportion of dental procedures that are extractions is 0.16 when the proportion
is actually different from 0.16
ANSWER: c
RATIONALE: Reject the claim that the proportion of dental procedures that are extractions is 0.16 when
the proportion is actually 0.16. This is equivalent to rejecting the null hypothesis when the
null hypothesis is true.
POINTS: 1
35. Larger values of have the disadvantage of increasing the probability of making a
a. Type I error.
b. Type II error.
c. random sampling error.
d. normal probability error.
ANSWER: a
RATIONALE: With larger values of a we have in increased chance of rejecting the null hypothesis when
the null hypothesis is true. Therefore, larger values of have the disadvantage of increasing
the probability of making a Type I error.
POINTS: 1
36. The average number of hours for a random sample of mail order pharmacists from company A was 50.1 hours last
year. It is believed that changes to medical insurance have led to a reduction in the average work week. To test the validity
of this belief, the hypotheses are
a. H0: U > 50.1, Ha : U < 50.1.

b. H0: U = 50.1, Ha : U ≠ 50.1.
c. H0: U ≤ 50.1, Ha : U > 50.1.
d. H0: U ≥ 50.1, Ha : U < 50.1.
ANSWER: d
RATIONALE: The assumption to be challenged is last year’s average. The alternative hypothesis comes
from the fact that they believe there has been a reduction in the average work week. So the
alternative hypothesis is Ha : u < 50.1. The null is the complement of that: H0 : u ≥ 50.1.
POINTS: 1
37. A fast food restaurant has automatic drink dispensers to help fill orders more quickly. When the 12 ounce button is
pressed, they would like for exactly 12 ounces of beverage to be dispensed. There is, however, undoubtedly some
variation in this amount. The company does not want the machine to systematically over fill or under fill the cups. Which
of the following gives the correct set of hypotheses
a. H0: U > 12, Ha : U < 12.
b. H0: U = 12, Ha : U ≠ 12.
c. H0: U ≤ 12, Ha : U > 12.
d. H0: U ≥ 12, Ha : U < 12.
ANSWER: d
RATIONALE: The correct set of hypotheses is H0 : u = 12, Ha : u ≠ 12. They do not want the cups to be
over or under filled, so they should use a two-sided alternative hypothesis.
POINTS: 1
38. A large manufacturing plant has analyzed the amount of time required to produce an electrical part and determined
that the times follow a normal distribution with mean time μ = 45 hours. The production manager has developed a new
procedure for producing the part. He believes that the new procedure will decrease the population mean amount of time
required to produce the part. After training a group of production line workers, a random sample of 25 parts will be
selected and the average amount of time required to produce them will be determined. If the switch is made to the new
procedure, the cost to implement the new procedure will be more than offset by the savings in manpower required to
produce the parts. Use the hypotheses: Ho: μ ≥ .45 hours and Ha: μ < 45 hours. Determine the p-value of the test statistic if
the sample mean amount of time is = 43.118 hours with the sample standard deviation s = 5.5 hours.
a. 0.04973
b. 0.04999
c. 0.95818
d. 0.04354
ANSWER: b
RATIONALE: The appropriate test is a lower-tailed t-test for one mean. The test statistic is -1.7109 and
the associated p-value is 0.04999. This can be found using the Excel function T.DIST(test
statistic, degrees of freedom, cumulative).
POINTS: 1
39. A large manufacturing plant has analyzed the amount of time required to produce an electrical part and determined
that the times follow a normal distribution with mean time μ = 45 hours. The production manager has developed a new
procedure for producing the part. He believes that the new procedure will decrease the population mean amount of time
required to produce the part. After training a group of production line workers, a random sample of 25 parts will be
selected and the average amount of time required to produce them will be determined. If the switch is made to the new
procedure, the cost to implement the new procedure will be more than offset by the savings in manpower required to
produce the parts. Use the hypotheses: Ho: μ ≥ .45 hours and Ha: μ < 45 hours. If the sample mean amount of time is =
43.118 hours with the sample standard deviation s = 5.5 hours, give the appropriate conclusion, for α = 0.025.
a. Do not reject Ho, do not switch to the new procedure.

b. Reject Ho, switch to the new procedure.
c. Reject Ho, do not switch to the new procedure.
d. Do not reject Ho, switch to the new procedure.
ANSWER: a
RATIONALE: The p-value associated with this test is 0.04999. This p-value is greater than the suggested
a = 0.025. Since the p-value > a, do not reject H0, do not switch to the new procedure.
POINTS: 1
40. A one-tailed test is a hypothesis test in which the rejection region is

a. in both tails of the sampling distribution.
b. in one tail of the sampling distribution.
c. only in the lower tail of the sampling distribution.
d. only in the upper tail of the sampling distribution.
ANSWER: b
RATIONALE: A one-tailed test is a hypothesis test in which rejection region is in one tail of the sampling
distribution. If a hypothesis test is a one-tailed test, the p-value method of drawing a
conclusion may be used, or the rejection region may be used. If a rejection region is used,
the rejection region will only fall in one tail of the curve for a one-tailed test.
POINTS: 1
41. Determine whether the alternative hypothesis is left-tailed, right-tailed, or two-tailed: Ho: μ = 11 Ha: μ > 11
a. left-tailed.
b. right-tailed.
c. two-tailed.
d. there is not enough information to make a determination.
ANSWER: b
RATIONALE: In a right-tailed hypothesis test, the alternative hypothesis has the > operator, right-tailed
test.
POINTS: 1
42. Which statement is NOT true?
a. The greater the level of confidence, the more likely it is that the confidence interval actually includes the true
population mean.
b. The greater the level of confidence, the larger the z-score.
c. The greater the level of confidence, the wider the confidence interval.
d. Rejecting the null hypothesis when it is true is a Type II error.
ANSWER: d
RATIONALE: Rejecting the null hypothesis when it is true is a Type I error.
POINTS: 1
43. Statistical significance at the 0.01 level is___________ than significance at the 0.05 level .
a. more difficult to achieve
b. easier to achieve
c. less costly
d. less informative
ANSWER: a
RATIONALE: Significance at the 0.01 level of significance is more difficult to achieve than the 0.05
level of significance because it requires a great deal of evidence against the null hypothesis.
POINTS: 1

44. You are _______________ to commit a Type I error using the 0.05 level of significance than using the 0.01 level of
significance.
a. more likely
b. less likely
c. equally likely
d. twice as likely
ANSWER: a
RATIONALE: You are more likely to commit a Type I error (rejecting a true null hypothesis) using the
0.05 level of significance than using the 0.01 level of significance. The probability of
making a Type I error is equal to a, the significance level of the test. If a = 0.05 then you
have a 5% chance of making a Type I error. If a = 0.01, then you have a 1% chance of
making a Type I error.
POINTS: 1
45. Which statement is NOT true?
a. Rejecting the null hypothesis when it is true is a Type I error.

b. The probability of making a Type I error is symbolized by α.
c. Failing to reject the null hypothesis when it is false is a Type I error.
d. Type II error can occur for both one and two-tailed tests.
ANSWER: c
RATIONALE: Failing to reject the null hypothesis when it is false is a Type II error.
POINTS: 1
46. A student wants to determine if pennies are really fair, meaning equally likely to land heads up or tails up. He flips a
random sample of 50 pennies and finds that 28 of them land heads up. What are the appropriate null and alternative
hypotheses?
a. H0: p ≥ 0.5, Ha : p < 0.5
b. H0: p ≤ 0.5, Ha : p ≠ 0.5
c. H0: p = 0.5, Ha : p > 0.5
d. H0: p ≥ 28, Ha : p < 28
ANSWER: c
RATIONALE: The appropriate null and alternative hypotheses are H0 : p = 0.5, Ha : p ≠ 0.5. This is
equivalent to saying “pennies are fair” vs “pennies are not fair”.
POINTS: 1
47. A simple random sample of 11 observations from a population containing 400 female soccer players was taken, and
the following values were obtained.
48 53 72 56 63 64 56 76 50 46 73
What is the value of the point estimate of the population mean?
ANSWER: 59.7
RATIONALE:
POINTS: 1
TOPICS: Blooms: Application
48. What is the general form of an interval estimate?
ANSWER: point estimate ± margin of error

RATIONALE: The general form of an interval estimate is point estimate ± margin of error.
POINTS: 1
TOPICS: Blooms: Comprehension
49. It is impossible to construct a sampling frame for an __________ population
ANSWER: infinite
RATIONALE: A sampling frame is a list of the elements from which the sample will be selected.
POINTS: 1
TOPICS: Blooms: Knowledge
50. Numerical characteristics of the population are called
ANSWER: parameters.
RATIONALE: A parameter is a numerical characteristic of the population.
POINTS: 1

51. The medical director of a company looks at the medical records of all 50 employees and finds that the mean systolic
blood pressure for these employees is 126.07.The value of 126.07 is symbolized by.
ANSWER:
RATIONALE: The value 126.07 is a sample mean. The symbol for a sample mean is .
POINTS: 1
52. The sample mean is the point estimator of what population parameter?
ANSWER: u
RATIONALE: The sample mean estimates the population mean, u).
POINTS: 1
53. Sample statistics, such as , s, or , that provide an estimate of the population parameter are known as
ANSWER: point estimates.

RATIONALE: Sample statistics are used to provide estimates of unknown population parameters. They are
known as point estimates.
POINTS: 1
54. As the sample size increases, the standard error of the mean ______________.
ANSWER: decreases
RATIONALE: As the sample size increases, the standard error of the mean decreases. This happens
because the sample size appears in the denominator of the standard error calculation, so
dividing by a larger number yields a smaller standard error.
POINTS: 1
55. A simple random sample of 100 observations was taken from a large population. The sample mean and the standard
deviation were determined to be 80 and 12 respectively. Calculate the standard error of the mean.

ANSWER: 1.20
RATIONALE: The standard error of the mean is 1.20. The standard error of the mean =
POINTS: 1
56. A sample of 92 observations is taken from an infinite population. The sampling distribution of is approximately
normal because of what theorem?
ANSWER: The Central Limit Theorem

RATIONALE: In selecting random samples of size n from a population, the sampling distribution of the
sample mean can be approximated by a normal distribution as the sample size becomes
large.
POINTS: 1
57. A random sample of 150 people was taken from a very large population. Ninety of the people in the sample were
female. What is the standard error of the proportion?
ANSWER: 0.04
RATIONALE:
The standard error of the proportion is
POINTS: 1
58. Random samples of size 100 are taken from an infinite population whose population proportion is 0.2. The mean and
standard deviation of the sample proportion are?
ANSWER: 0.2 and 0.04

RATIONALE: The mean of the sample proportion is 0.2. The standard deviation of the sample proportion
is
POINTS: 1
REFERENCES: INTERVAL ESTIMATION, Pages 244-245
59. As a rule of thumb, the sampling distribution of the sample proportions can be approximated by a normal probability
distribution when
ANSWER: n(1 – p) 5 and np 5.

RATIONALE: As a rule of thumb, the sampling distribution of the sample proportions can be
approximated by a normal probability distribution when n(1 – p) 5 and np 5.
POINTS: 1
DIFFICULTY: Easy
60. A cellular phone company claims that the mean amount spent per month is more than $75. A test is made of Ho: μ =
75 versus Ha: μ > 75. The null hypothesis is rejected. State the appropriate conclusion.
ANSWER: There is sufficient evidence to support the claim that the mean checkout amount is greater
than $75.
RATIONALE: The claim for this problem is that the mean checkout amount is greater than $75. The
conclusion is stated in terms of the alternative hypothesis.
POINTS: 1
61. In a survey of 3539 female university students ages 18-22, 401 say they live in off-campus housing. If you constructed
90% and 95% confidence intervals for the population proportion how would they differ? As the level of confidence
________________, the confidence interval gets ___________________.
ANSWER: increases; wider. Also acceptable are the phrases decreases; narrower
RATIONALE: As the level of confidence increases, the confidence interval gets wider.
POINTS: 1
62. What is the difference between the standardized normal distribution (used for tests with z) and the t distribution?
ANSWER: The t distribution is used when the population standard deviation is unknown and the
sample size is small. And the t- test statistic is calculated using n– 1 degrees of freedom.
RATIONALE: The t-distribution and the normal approximation arise only for small sample sizes.
In that case, the t-distribution is used which adjust for additional error due to the fact that
the population standard deviation is unknown.

POINTS: 1

Essentials of Business Analytics 2nd Edition Camm Test Bank

Uploaded by

Copyright:

Available Formats

You might also like

Essentials of Business Analytics 2nd Edition Camm Test Bank

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Essentials of Business Analytics 2nd Edition Camm Test Bank

Uploaded by

Copyright:

Available Formats

Essentials of Business Analytics 2nd

Edition Camm Test Bank

2. The purpose of statistical inference is to make estimates or draw conclusions about a

3. A parameter is a numerical measure from a population, such as

b. n has a probability of 0.5 of being selected.

point estimator is unbiased.

error of the mean =

a. have low variability.

Copyright Cengage Learning. Powered by Cognero. Page 5

b. exactly normal for large sample sizes.

Copyright Cengage Learning. Powered by Cognero. Page 8

so the 95% confidence interval ranges from 0.25 to 0.34.

Copyright Cengage Learning. Powered by Cognero. Page 9

KEYWORDS: Blooms: Application

confidence interval for the population proportion is

Copyright Cengage Learning. Powered by Cognero. Page 10

28. Two approaches to drawing a conclusion in a hypothesis test are

29. A Type I error is committed when

a. Reject the null hypothesis; Fail to reject the null hypothesis

KEYWORDS: Blooms: Knowledge

RATIONALE: The value 32 is the sample mean. The appropriate symbol is

a. H0: U > 50.1, Ha : U < 50.1.

a. Do not reject Ho, do not switch to the new procedure.

40. A one-tailed test is a hypothesis test in which the rejection region is

KEYWORDS: Blooms: Application

42. Which statement is NOT true?

Copyright Cengage Learning. Powered by Cognero. Page 16

45. Which statement is NOT true?

a. Rejecting the null hypothesis when it is true is a Type I error.

48. What is the general form of an interval estimate?

ANSWER: point estimate ± margin of error

49. It is impossible to construct a sampling frame for an __________ population

50. Numerical characteristics of the population are called

Copyright Cengage Learning. Powered by Cognero. Page 18

ANSWER: point estimates.

Copyright Cengage Learning. Powered by Cognero. Page 19

ANSWER: The Central Limit Theorem

ANSWER: 0.2 and 0.04

ANSWER: n(1 – p) 5 and np 5.

Copyright Cengage Learning. Powered by Cognero. Page 21

Copyright Cengage Learning. Powered by Cognero. Page 22

You might also like