FINAL EXAM

Course Title: Probability & Statistics for Business II

(BCOR250)
Lecturers: Amira Dridi, Riadh Aloui, Amor Messaoud

Grade /100 Name: ………………..……………………………………...…….. Last Name: …………………………………………………………

Student ID: …………………………….…………………………………………………………………………………………………………………………

Group: ……….………………..………………....……………………………………...

Date: January 6th , 2020

Working time: 2 hours

Number of pages: 8

Instructions
- Books and notes are not permitted
- Calculators are allowed
- It is not allowed to use mobile phones
- It is not allowed to share writing instruments

MCQ Circle the correct answer (30 points)

1. A statement about the value of a population parameter is called:

a. Null hypothesis
b. Alternative hypothesis
c. Simple hypothesis
d. Composite hypothesis

2. A rule or formula that provides a basis for testing a null hypothesis is called:
a. Population statistic
b. Test-statistic
c. Both of these
d. None of the above

3. The smaller the p-value, the

a. Stronger the evidence against the alternative hypothesis

b. Stronger the evidence for the null hypothesis
c. Stronger the evidence against the null hypothesis
d. None of the above

1
4. A hypothesis test is done in which the alternative hypothesis is that more than 10% of a
population is left-handed. The p-value for the test is calculated to be 0.25. Which statement is
correct?
a. We can conclude that more than 10% of the population is left-handed.
b. We can conclude that more than 25% of the population is left-handed.
c. We can conclude that exactly 25% of the population is left-handed.
d. We cannot conclude that more than 10% of the population is left-handed.

5. In hypothesis testing, a Type 2 error occurs when

a. The null hypothesis is not rejected when the null hypothesis is true.
b. The null hypothesis is rejected when the null hypothesis is true.
c. The null hypothesis is not rejected when the alternative hypothesis is true.
d. The null hypothesis is rejected when the alternative hypothesis is true.

6. An advertising agency wants to test the hypothesis that the proportion of adults in Tunisia who
read a “La Presse” newspaper is 25 percent. The null hypothesis is that the proportion reading
“La Presse” is:
a. Different from 25%
b. Equal to 25%
c. Less than 25 %
d. More than 25 %

7. In hypothesis testing,
a. the smaller the Type I error, the smaller the Type II error will be
b. the smaller the Type I error, the larger the Type II error will be
c. Type II error will not be effected by Type I error
d. The sum of Type I and Type II errors must equal to 1

8. In a two-tailed hypothesis test situation (testing a mean assuming σ is known), the value of the
test statistic is determined to be Zobs = -2.692. The sample size has been 45. The p-value for
this test is
a. -0.0036
b. +0.0036
c. -0.0072
d. +0.0072

9. In a hypothesis test:
a. the null hypothesis is what we are trying to prove
b. the alternate hypothesis is always assumed to be true

2
 c. the alternate hypothesis is accepted unless there is sufficient evidence to say otherwise
d. the null hypothesis is not rejected unless there is sufficient evidence to reject it.

10. To test whether or not two population variances are equal, the appropriate distribution is:
a. Chi-square distribution
b. F distribution
c. t distribution with n1 + n2 - 2 degrees of freedom
d. None of the above

11. The critical value(s) of the following hypothesis test : = ; : > with n1 = 10
and n2 = 21 and a 5% significance level is (are) :
a. 2.39
b. – 2.39
c. ± 2.39
d. 2.84 and 1/2.84

12. The t test for the difference between the means of two samples makes what assumption?
a. Populations are approximately normally distributed.
b. Sample variances are equal.
c. Samples are randomly and independently drawn.
d. All of the above.

13. Analysis of variance is a statistical method of comparing the ________ of several populations.
a. standard deviations
b. variances
c. means
d. proportions
e. none of the above

14. To determine whether the test statistic of ANOVA is statistically significant, it can be compared
to a critical value. What two pieces of information are needed to determine the critical value?
a. sample size, number of groups
b. mean, sample standard deviation
c. expected frequency, obtained frequency
d. Mean Square Between Groups, Mean Square Within Groups

15. Scientists think that robots will play a crucial role in factories in the next 20 years. Suppose that
in an experiment to determine whether the use of robots to weave computer cables is feasible, a
robot was used to assemble 500 cables. The cables were examined and there were 14 defectives.
Human assemblers have a defect rate of 3% (0.03). We wish to test whether the proportion of

3
 defectives produced by robots is less than that of humans, at the 5% significance level. What is
the correct conclusion for this hypothesis test?
a. there is statistical evidence to reject the null hypothesis and conclude that robots do
produce fewer defectives than humans
b. there is statistical evidence to not reject the null hypothesis and conclude that robots
do produce fewer defectives than humans
c. there is statistical evidence to not reject the null hypothesis and conclude that robots
do not produce fewer defectives than humans
d. there is statistical evidence to reject the null hypothesis and conclude that robots do
not produce fewer defectives than humans
e. no conclusion can be made as not enough information is given

Exercise 1 (20 points)

Life insurance experts have been claiming that the average worker in the city of Cincinnati has no more
than $25,000 of personal life insurance. An insurance researcher believes that this is not true and sets
out to prove that the average worker in Cincinnati has more than $25,000 of personal life insurance. To
test this claim, she randomly samples 100 workers in Cincinnati and interviews them about their personal
life insurance coverage. She discovers that the average amount of personal life insurance coverage for
this sample group is $26,650. The population standard deviation is $12,000.
Determine whether the test shows enough evidence to reject the null hypothesis posed by the
salesperson. Assume the probability of committing a Type I error is 0.05.
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………

4
 ……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
…………………………………………………………………………

Exercise 2 (30 points)

The Computer Anxiety Rating Scale (CARS) measures an individual’s level of computer anxiety, on a
scale from 20 (no anxiety) to 100 (highest level of anxiety). Researchers at Miami University
administered CARS to 172 business students. One of the objectives of the study was to determine
whether there is a difference in the level of computer anxiety experienced by female and male business
students. They found the following:

Males Females
40.26 36.85
S 13.35 9.42
n 100 72

1. What assumptions do you have to make about the populations in order to justify the use
of the t test?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………………………………………………………

2. At the 0.05 level of significance, is there evidence of difference in the mean computer
anxiety experienced female and male business students?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………

5
 …………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………………………………………………………

3. Write the p-value expression

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………

Exercise 3 (20 points)

For fast-food restaurants, the drive-through window is an increasing source of revenue. The chain that
offers the fastest service is likely to attract additional customers. Each month QSR Magazine, publishes
its results of drive-through service times (from menu board to departure) at fast-food chains.

In a recent month, the mean time was 134.09 seconds for Wendy’s, 163.17 seconds for Taco Bell, 166.65
seconds for Burger King, 174.22 seconds for McDonald’s, and 194.58 seconds for KFC. Suppose the
study was based on 20 customers for each fast-food chain.

Table 1 contains the ANOVA informations for this problem.

Table 1: ANOVA

Sum of Squares df Mean Square F Sig.

Between Groups 38191.91 0.0000
Within Groups 12407 95
Total 99

1. What is (are) the variable(s) of interest and the parameter(s)?

6
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
At the 0.05 level of significance, is there evidence of a difference in the mean drive- through service
times of the five chains:

2. Write the null and alternative hypotheses.

………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………

3. Find the critical value of the test.

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………..

4. Complete Table 1 and decide. (write the detailed calculations below)

…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
5. Write the expression of the p-value of the test.
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………

7
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………

Good Luck