Exam 1
Exam 1
SECTION 1: MULTIPLE-CHOICE
For each question in this section, circle the correct answer. (Problem is worth 4 pts.)
3. In order to be accepted into a top university, applicants must score within the top 5% on the SAT
exam. Given that the test has a mean of 1000 and a standard deviation of 200, what is the lowest
possible score a student needs to qualify for acceptance into the University?
(a) 1330
(b) 1400
(c) 1250
(e) 1100
4. The weekly earnings of bus drivers are normally distributed with a mean of $395. If only 1.1%
of the bus drivers have a weekly income of more than $429.35, the standard deviation of the
weekly earnings of the bus drivers is
(a) 2.29
(b) 34.35
(c) 31.23
(d) 15
1
6. Which of the following is true about the correlation coefficient r?
(a) It is a resistant measure of association.
(b) -1≤ r ≤1
(c) If r is the correlation coefficient between X and Y, then -r is the correlation coefficient
between Y and X.
(d) All of the above.
7. The sum of deviations of the individual data elements from their mean is
a. always greater than zero
b. always less than zero
c. sometimes greater than and sometimes less than zero, depending on the data elements
d. always equal to zero
8. During a cold winter, the temperature stayed below zero for ten days
(ranging from -20 to -5). The variance of the temperatures of the ten day period
a. is negative since all the numbers are negative
b. must be at least zero
c. cannot be computed since all the numbers are negative
d. can be either negative or positive
9. Social security numbers consist of numeric values. Therefore, social security is an example
of
a. a quantitative variable
b. either a quantitative or a qualitative variable
c. an exchange variable
d. a qualitative variable
2
13. A financial analyst's sample of six companies' book value were
$25 $7 $22 $33 $18 $15
The sample mean and sample standard deviation are (approximately):
14. The mean of this distribution (don't try to find it) is certainly
(a) Very close to the median.
(b) Clearly less than the median.
(c) Clearly greater than the median.
(d) Can’t say because the mean is random.
15. Based on the shape of this distribution, what numerical measures would best describe it?
(a) The fivenumber summary.
(b) The mean and standard deviation.
(c) The mean and the quartiles.
(d) The mean and the correlation coefficient.
3
SECTION 2: FREE-RESPONSE PROBLEMS
Question #1
A data has a first quartile of 42 and a third quartile of 50. Compute the lower and upper
(5 Points)
Question #2
1. [15 points] Sarah’s parents are concerned that she seemed short for her age. Their doctor has
the following record of Sarah’s height:
Age (months) 36 48 51 54 57 60
Height (cm) 86 90 91 93 94 96
(a) (3 Points)
Find the correlation coefficient between the two variables.
(b) (3 Points)
Find the equation of the least-squares regression line of height on age.
(c) (3 Points)
Predict Sarah’s height at 40 months.
(d) (3 Points)
Provide an interpretation for the slope of the regression line.
4
Question #3: [20 points]
The sales record of a real estate company for the month of May shows the following house prices
(rounded to the nearest $1,000). Values are in thousands of dollars.
140 55 45 85 75 50 60 75 80 95
(a) (5 Points)
Find the five-number summary for the house prices.
Five-number summary
(4 points)
(b) Find the mean. Explain why the mean and median are different for this particular set
of data.
(c) (8 Points)
Construct a labeled boxplot for the house prices. (Show all your work).
(d) (3 Points)
Describe the distribution of the house prices.