21) A trolley system is being planned for the downtown ...



21) A trolley system is being planned for the downtown area of Cincinnati, Ohio. To be able to proceed with this project, planners have indicated that at least 20% of the residents of the areas that would be covered need to support the idea. To determine the feelings of these city residents, a sample of 300 residents was taken. Seventeen percent of the sample responded that they would ride the trolley. Is this enough evidence for the project to proceed? Use the .05 level of significant.

| |[pic]A. [pic] A t-test would be the best choice for the test. |

| |[pic]B. [pic] There is not enough evidence to support the moving forward with the project. |

| |[pic]C. [pic] A decision cannot be made either yes or no. |

| |[pic]D. [pic] There is enough evidence; move forward with the project. |

22) Analysis of variance is used to

| |[pic]A. [pic] compute t test |

| |[pic]B. [pic] compare population proportion |

| |[pic]C. [pic] simultaneously compare several population means |

| |[pic]D. [pic] compare nominal data |

23) In the metro area there are four major supermarket chains. To determine if there was a difference between these stores, regarding their pricing of food, a consumer group did a test. In the Eastgate area of town, each of the supermarket chains has a store. Twenty-five common household items were selected for the test. These items were purchased at each of the four stores and the prices were compared. To analyze this data, what would be the best statistical test to use?

| |[pic]A. [pic] Two sample test |

| |[pic]B. [pic] Regression correlation |

| |[pic]C. [pic] ANOVA |

| |[pic]D. [pic] Chi square |

24) The F distribution is utilized with the ANOVA test. There are some basic assumptions associated with the distribution. Which of these assumptions is NOT valid?

| |[pic]A. [pic] It is a continuous distribution. |

| |[pic]B. [pic] It is negatively skewed. |

| |[pic]C. [pic] There is a family of distributions. |

| |[pic]D. [pic] Its values cannot be negative. |

25) Totto, an automobile manufacturer, has designed a radically new engine and wants to recommend the grade of gasoline that will have the best fuel economy. The four grades are: regular, below regular, premium, and super premium. The test car made three trial runs on the test track using each of the four grades and the miles per gallon were recorded. At the 0.05 level, what is the critical value of F used to test the hypothesis that the miles per gallon for each fuel are the same?

| |[pic]A. [pic] 4.07|

| |[pic]B. [pic] 1.96|

| |[pic]C. [pic] 2.33|

| |[pic]D. [pic] 12.0|

| |0 |

26) In ANOVA analysis, when the null hypothesis is rejected, we can find which means are different by

| |[pic]A. [pic] adding another treatment |

| |[pic]B. [pic] constructing confidence intervals |

| |[pic]C. [pic] doing an additional ANOVA |

| |[pic]D. [pic] doing a t test |

27) If an ANOVA test is conducted and the null hypothesis is rejected, what does this indicate?

| |[pic]A. [pic] No difference between the population means |

| |[pic]B. [pic] Too many degrees of freedom |

| |[pic]C. [pic] A difference between at least one pair of population means |

| |[pic]D. [pic] The variances are the same |

28) In the chi-squared goodness-of-fit test, if the expected frequencies ei and the observed frequencies fi were quite different, we would conclude that the [ID: 29826]

| |[pic]A. [pic] null hypothesis is true, and we would not reject it |

| |[pic]B. [pic] null hypothesis is false, and we would reject it |

| |[pic]C. [pic] alternative hypothesis is false, and we would reject it |

| |[pic]D. [pic] chi-squared distribution is invalid, and we would use the t-distribution instead |

29) What nonparametric test is used when the assumptions for the parametric analysis of variance (ANOVA) cannot be met? Its purpose is to test whether three or more populations are equal. The data must be at least ordinal scaled.

| |[pic]A. [pic] Kruskal-Wallis |

| |[pic]B. [pic] Students' t |

| |[pic]C. [pic] Mann-Whitney |

| |[pic]D. [pic] ANOVA |

30) Of the values for a chi-squared test statistic listed below, which one is most likely to lead to rejecting the null hypothesis in a goodness-of-fit test?

| |[pic]A. [pic] 2|

| |.1 |

| |[pic]B. [pic] 4|

| |5 |

| |[pic]C. [pic] 1|

| |.2 |

| |[pic]D. [pic] 0|

31) The reason the computed chi-square value is positive is because the difference between the observed and expected frequencies is

| |[pic]A. [pic] linear |

| |[pic]B. [pic] always positive |

| |[pic]C. [pic] squared |

| |[pic]D. [pic] uniform |

32) The nonparametric counterpart of the randomized block model of the ANOVA is the

| |[pic]A. [pic] Friedman test |

| |[pic]B. [pic] Wilcoxon signed rank sum test |

| |[pic]C. [pic] Kruskal-Wallis test |

| |[pic]D. [pic] Wilcoxon rank sum test |

|34) The Big Toy House is a local company that specializes in selling children outdoor playhouses. With many businesses there is a certain amount of difficulty in|

|collecting money on past due accounts. This has become a concern of the owner. A recent trade magazine indicated that the national averages for account |

|receivable were: 65% current, 25% late, and 10% not collectable. A recent study of the company’s records indicated that 60 percent of the account receivable is |

|current. Thirty percent of the accounts were late and the remaining 10% of receivable were viewed as being not collectable. To determine if his store was in-line|

|with the national average, the manager had a statistical analysis performed. The chi square test was selected for the analysis and the .05 significant level was |

|used. The test statistics was X² = 6.725. What is the correct decision regarding this result? |

| |

| |

|[pic]A. [pic] The distribution of Big Toy House receivables is different than the national averages. |

| |

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|[pic]B. [pic] The two distributions cannot be compared. |

| |

| |

|[pic]C. [pic] The distribution of Big Toy House receivables is in-line with the national averages. |

| |

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|[pic]D. [pic] The manager needs to not be concerned. |

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|35) Corny’s Feed Company markets four different mixtures of feed for chickens. These feeds have different combinations of ingredients. One question that the |

|manager is often asked by customers is if there is a difference between the four feeds in terms of weight gain. To be able to address this question an analysis |

|was done of the four feeds. They contacted a local farmer to conduct a test regarding the four feeds. There were 28 chickens selected for the test. These |

|chickens were divided into four groups, with each group receiving one of the feeds. The statistical test selected for the analysis was the Kruskal-Wallis test |

|and the .05 significant level was used for the test. The test result was H 4.65. This indicates that |

| |

| |

|[pic]A. [pic] the feeds need to be tested some more before a decision can be made |

| |

| |

|[pic]B. [pic] the feeds are the same |

| |

| |

|[pic]C. [pic] the feeds are different |

| |

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|[pic]D. [pic] some of the feeds are different |

| |

36) Clermont Savings and Loan has four branches located throughout the county. The activity level at these four branches appears to be different but the manger needs verification. Turnover rate, how quickly money is withdrawn from an account after being deposited, was selected as the variable to be measured. A total sample of 22 accounts was collected from the four Branches. The Kruskal-Wallis test, at the .01 significant level, was selected for the statistical analysis. The null hypothesis being tested was that the population distribution between the four branches is identical. The test statistics was H = 12.453. What is the correct interpretation of this result?

| |[pic]A. [pic] The null hypothesis is rejected. |

| |[pic]B. [pic] More information is needed to be able to make a decision. |

| |[pic]C. [pic] The null hypothesis is accepted. |

| |[pic]D. [pic] A different test needs to be used for the analysis. |

|37) A simple linear regression generated a correlation coefficient of 0.01. This tells us that |

| |

| |

|[pic]A. [pic] SSE is almost zero. |

| |

| |

|[pic]B. [pic] we shall reject the null at less than a 5% significance level. |

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|[pic]C. [pic]  SSR is almost zero. |

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|[pic]D. [pic] the two variables barely relate to each other. |

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|38) Correlation coefficients of positive 0.88 and negative 0.88 represent relationships between two variables that have |

| |

| |

|[pic]A. [pic] equal strength but different directions |

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|[pic]B. [pic] equal weak relationships |

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|[pic]C. [pic] strong positive relationships |

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|[pic]D. [pic] equal strength inverse relationships |

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|39) What is the range of values for a coefficient of correlation? |

| |

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|[pic]A. [pic] –3 to +3 inclusive |

| |

| |

|[pic]B. [pic] –1.0 to +1.0 inclusive |

| |

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|[pic]C. [pic] Unlimited range |

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|[pic]D. [pic] 0 to +1.0 |

| |

43) The least squares regression equation is Y' = 1312 + 245X. When X = 5, what does Y' equal?

| |[pic]A. [pic] 1557 |

| |[pic]B. [pic] 2537 |

| |[pic]C. [pic] 4,050 |

| |[pic]D. [pic] 2357 |

|44) When an insurance company is going to write a new home owner policy, one concern is the distance between the house and the nearest fire department station. |

|This is one factor that goes in to determining the cost of the insurance for the home owner. ETB Insurance Company wants to determine if there is a relationship |

|between the distance to a fire station and the amount of fire damage to a house. A random sample of 50 claims was selected for analysis. The correlation |

|coefficient was 0.78. Which is the correct interpretation and recommendation? |

| |

| |

|[pic]A. [pic] The strong inverse relationship indicates that distance to a fire station is a reliable variable to consider as a factor in determining insurance |

|rates. |

| |

| |

|[pic]B. [pic] The variable, distance to a fire station, is able to explain 78% of the variation in the problem and so it is a reasonable factor to use in |

|determining insurance rates. |

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| |

|[pic]C. [pic] The strong relationship indicates that distance to a fire station is a reasonable factor to be considered when determining insurance rates. |

| |

| |

|[pic]D. [pic] There is not a strong enough relationship so as to be able to use distance to a firehouse as a factor in determining insurance rates. |

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|45) In the least squares equation, Y' = 12 + 25X the value of 25 indicates |

| |

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|[pic]A. [pic] for each unit increase in X, Y increases by 25 |

| |

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|[pic]B. [pic] for each unit increase in Y, X increases by 25 |

| |

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|[pic]C. [pic] the X factor |

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|[pic]D. [pic] the Y intercept |

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|46) If there are four independent variables in a multiple regression equation, there are also four |

| |

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|[pic]A. [pic] regression coefficients |

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|[pic]B. [pic] dependent variables |

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|[pic]C. [pic] constant terms |

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|[pic]D. [pic] Y-intercepts |

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|47) If the net regression coefficients in the population are significantly different from zero, what can be included? |

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|[pic]A. [pic] No relationship exists between the dependent variable and any of the independent variables. |

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|[pic]B. [pic] At least one of the net regression coefficients is not equal to zero. |

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|[pic]C. [pic] Good predictions are not possible. |

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|[pic]D. [pic] Very strong correlations exist among the variables. |

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|48) Which of the following statements about multiple regression is TRUE? |

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|[pic]A. [pic]  The total sum of squares in a regression model will never exceed the regression sum of squares. |

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|[pic]B. [pic]  If we have taken into account all relevant explanatory factors, the residuals from a multiple regression should be random. |

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|[pic]C. [pic]  The coefficient of multiple determination is calculated by taking the ratio of the regression sum of squares over the total sum of squares and |

|subtracting that value from 1. |

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|[pic]D. [pic]  A multiple regression is called multiple because it has several data points. |

| |

51) The following linear trend equation was developed for the annual sales of the Tractor Manufacturing Company. Y' = 355 + 50t (in $ thousands). How much are sales increasing by?

| |[pic]A. [pic] $5,000 per month |

| |[pic]B. [pic] $500,000 per year |

| |[pic]C. [pic] $6,000 per year |

| |[pic]D. [pic] $50,000 per year |

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