Sample Exam

ME 710

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Which of the following is a discrete quantitative (numerical) variable? 1)

A) The Dow Jones Industrial average
B) The distance you drove yesterday
C) The number of employees of an insurance company
D) The volume of water released from a dam

2) The classification of student major (accounting, economics, management, marketing, other) is 2)

an example of
A) a categorical random variable. B) a discrete random variable.
C) a continuous random variable. D) a parameter.

3) The chancellor of a major university was concerned about alcohol abuse on her campus and 3)
wanted to find out the proportion of students at her university who visited campus bars on the
weekend before the final exam week. Her assistant took a random sample of 250 students. The
answer on "whether you visited campus bars on the weekend before the final exam week"
from students in the sample is an example of ________.
A) a categorical random variable B) a discrete random variable
C) a continuous random variable D) a parameter

4) A study is under way in Yosemite National Forest to determine the adult height of American 4)
pine trees. Specifically, the study is attempting to determine what factors aid a tree in reaching
heights greater than 60 feet tall. It is estimated that the forest contains 25,000 adult American
pines. The study involves collecting heights from 250 randomly selected adult American pine
trees and analyzing the results. Identify the variable of interest in the study.
A) The species of trees in Yosemite National Forest
B) The number of American pine trees in Yosemite National Forest
C) The age of an American pine tree in Yosemite National Forest
D) The height of an American pine tree in Yosemite National Forest

5) Which of the following is not an element of descriptive statistical problems? 5)

A) The population or sample of interest
B) An inference made about the population based on the sample
C) Tables, graphs, or numerical summary tools
D) Identification of patterns in the data

TABLE 1-2

A Wall Street Journal poll asked 2,150 adults in the U.S. a series of questions to find out their view on the U.S. economy.

6) Referring to Table 1-2, the possible responses to the question "How many more months do 6)
you think the U.S. economy will require to get out of a recession?" are values from a
A) discrete numerical random variable. B) continuous numerical random variable.
C) categorical random variable. D) parameter.

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 7) Referring to Table 1-2, the possible responses to the question "How would you rate the 7)
condition of the U.S. economy with 1 = excellent, 2 = good, 3 = decent, 4 = poor, 5 = terrible?"
are values from a
A) discrete numerical random variable. B) continuous numerical random variable.
C) categorical random variable. D) parameter.

8) Referring to Table 1-2, the possible responses to the question "How many out of every 10 U.S. 8)
voters do you think feel that the U.S. economy is in a good shape?" are values from a
A) discrete numerical random variable. B) continuous numerical random variable.
C) categorical random variable. D) parameter.

9) Data on the number of part-time hours students at a public university worked in a week were 9)
collected. Which of the following is the best chart for presenting the information?
A) A Pareto chart B) A pie chart
C) A percentage table D) A percentage polygon

TABLE 2-3

Every spring semester, the School of Business coordinates a luncheon with local business leaders for graduating seniors,
their families, and friends. Corporate sponsorship pays for the lunches of each of the seniors, but students have to
purchase tickets to cover the cost of lunches served to guests they bring with them. The following histogram represents
the attendance at the senior luncheon, where X is the number of guests each graduating senior invited to the luncheon
and f is the number of graduating seniors in each category.

10) Referring to the histogram from Table 2-3, if all the tickets purchased were used, how many 10)
guests attended the luncheon?
A) 152 B) 4 C) 275 D) 388

11) Data on 1,500 students' height were collected at a larger university in the East Coast. Which of 11)
the following is the best chart for presenting the information?
A) A histogram B) A pie chart
C) A Pareto chart D) A side-by-side bar chart

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 12) A type of vertical bar chart in which the categories are plotted in the descending rank order of 12)
the magnitude of their frequencies is called a
A) Pareto chart. B) stem-and-leaf display.
C) pie chart. D) contingency table.

TABLE 2-6

A sample of 200 students at a Big-Ten university was taken after the midterm to ask them whether they went bar
hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the
midterm. The following table contains the result.

Did Well in Midterm Did Poorly in Midterm

Studying for Exam 80 20
Went Bar Hopping 30 70

13) Referring to Table 2-6, ________ percent of the students in the sample went bar hopping the 13)
weekend before the midterm and did well on the midterm.
A) 15 B) 27.27 C) 50 D) 30

TABLE 2-5

The following are the duration in minutes of a sample of long-distance phone calls made within the continental United
States reported by one long-distance carrier.

Relative
Time (in Minutes) Frequency
0 but less than 5 0.37
5 but less than 10 0.22
10 but less than 15 0.15
15 but less than 20 0.10
20 but less than 25 0.07
25 but less than 30 0.07
30 or more 0.02

14) Referring to Table 2-5, if 1,000 calls were randomly sampled, how many calls lasted under 10 14)
minutes?
A) 410 B) 590 C) 220 D) 370

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TABLE 2-4

A survey was conducted to determine how people rated the quality of programming available on television.
Respondents were asked to rate the overall quality from 0 (no quality at all) to 100 (extremely good quality). The
stem-and-leaf display of the data is shown below.

Stem Leaves
3 24
4 03478999
5 0112345
6 12566
7 01
8
9 2

15) Referring to Table 2-4, what percentage of the respondents rated overall television quality 15)
with a rating of 50 or below?
A) 40 B) 56 C) 11 D) 44

16) In left-skewed distributions, which of the following is the correct statement? 16)
A) The distance from the smallest observation to Q2 is less than the distance from Q2 to the
largest observation.
B) The distance from Q1 to Q2 is smaller than the distance from Q2 to Q3 .
C) The distance from the smallest observation to Q1 is larger than the distance from Q3 to
the largest observation.
D) The distance from Q1 to Q3 is twice the distance from the Q1 to Q2 .

17) According to the empirical rule, if the data form a "bell-shaped" normal distribution, ________ 17)
percent of the observations will be contained within 1 standard deviation around the
arithmetic mean.
A) 68.26 B) 75.00 C) 93.75 D) 88.89

18) Which descriptive summary measures are considered to be resistant statistics? 18)
A) The interquartile range and range
B) The median and interquartile range
C) The mode and variance
D) The arithmetic mean and standard deviation

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TABLE 3-1

Health care issues are receiving much attention in both academic and political arenas. A sociologist recently conducted
a survey of citizens over 60 years of age whose net worth is too high to qualify for Medicaid. The ages of 25 senior
citizens were as follows:

60 61 62 63 64 65 66 68 68 69 70 73 73
74 75 76 76 81 81 82 86 87 89 90 92

19) Referring to Table 3-1, determine which of the following is the correct statement. 19)
A) The middle 50% of the senior citizens sampled are between 65.5 and 73.0 years of age.
B) One fourth of the senior citizens sampled are below 65.5 years of age.
C) The mean age of senior citizens sampled is 73.5 years of age.
D) All of the above are correct.

20) A manufacturer of flashlight batteries took a sample of 130 batteries from a day's production 20)
and used them continuously until they were drained. The number of hours until failure are
recorded. Given below is the boxplot of the number of hours it took to drain each of the 130
batteries. The distribution of the number of hours is

A) left-skewed. B) right-skewed.
C) symmetrical. D) none of the above

21) If two events are mutually exclusive and collectively exhaustive, what is the probability that 21)
one or the other occurs?
A) 0
B) 0.50
C) 1.00
D) Cannot be determined from the information given

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22) According to a survey of American households, the probability that the residents own 2 cars if 22)
annual household income is over $50,000 is 80%. Of the households surveyed, 60% had
incomes over $50,000 and 70% had 2 cars. The probability that the residents of a household
own 2 cars and have an income less than or equal to $50,000 a year is
A) 0.12. B) 0.48. C) 0.22. D) 0.18.

23) A survey of banks revealed the following distribution for the interest rate being charged on a 23)
home loan (based on a 30-year mortgage with a 10% down payment).

Interest Rate 4.90% to 5.00% to 5.10% to 5.20% to 5.30% and

4.99% 5.09% 5.19% 5.29% above
Probability 0.12 0.23 0.24 0.35 0.06

If a bank is selected at random from this distribution, what is the chance that the interest rate
charged on a home loan will exceed 5.19%?
A) 0.06 B) 0.59 C) 1.00 D) 0.41

24) According to a survey of American households, the probability that the residents own 2 cars if 24)
annual household income is over $50,000 is 80%. Of the households surveyed, 60% had
incomes over $50,000 and 70% had 2 cars. The probability that the residents of a household do
not own 2 cars and have an income over $50,000 a year is
A) 0.22. B) 0.12. C) 0.48. D) 0.18.

25) When using the general multiplication rule, P( A and B) is equal to 25)
A) P( A| B) P( B). B) P( A)/P( B). C) P( A) P( B). D) P( B)/P( A).

26) The portfolio expected return of two investments 26)

A) will be higher when the covariance is positive.
B) will be higher when the covariance is negative.
C) will be higher when the covariance is zero.
D) does not depend on the covariance.

27) Whenever = 0.1 and n is small, the binomial distribution will be 27)
A) left-skewed. B) symmetric.
C) right-skewed. D) None of the above.

28) From an inventory of 48 new cars being shipped to local dealerships, corporate reports 28)
indicate that 12 have defective radios installed. Which of the following distributions would
you use to determine the probability that out of the 8 new cars it just received that, when each
is tested, no more than 2 of the cars have defective radios?
A) Hypergeometric distribution B) Poisson distribution
C) Uniform distribution D) Binomial distribution

29) The probability that a particular brand of smoke alarm will function properly and sound an 29)
alarm in the presence of smoke is 0.8. You have 5 such alarms in your home and they operate
independently. Which of the following distributions would you use to determine the
probability that all of them will function properly in case of a fire?
A) Binomial distribution B) Poisson distribution
C) Normal distribution D) Hypergeometric distribution

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 30) The value of the cumulative standardized normal distribution at Z is 0.6255. The value of Z is 30)
A) 0.99. B) 0.32. C) 0.40. D) 0.16.

31) In its standardized form, the normal distribution 31)

A) has a mean of 1 and a variance of 0.
B) has a mean of 0 and a standard deviation of 1.
C) has an area equal to 0.5.
D) cannot be used to approximate discrete probability distributions.

32) If we know that the length of time it takes a college student to find a parking spot in the library 32)
parking lot follows a normal distribution with a mean of 3.5 minutes and a standard deviation
of 1 minute, find the probability that a randomly selected college student will take between 2
and 4.5 minutes to find a parking spot in the library parking lot.
A) 0.4938 B) 0.7745 C) 0.2255 D) 0.0919

TABLE 1-2

A Wall Street Journal poll asked 2,150 adults in the U.S. a series of questions to find out their view on the U.S. economy.

33) Referring to Table 1-2, the possible responses to the question "In which year do you think the 33)
last recession in the U.S. started?" are values from a
A) discrete numerical random variable. B) continuous numerical random variable.
C) categorical random variable. D) parameter.

TABLE 1-1

The manager of the customer service division of a major consumer electronics company is interested in determining
whether the customers who have purchased a DVD player made by the company over the past 12 months are satisfied
with their products.

34) Referring to Table 1-1, the possible responses to the question "How would you rate the quality 34)
of your purchase experience with 1 = excellent, 2 = good, 3 = decent, 4 = poor, 5 = terrible?" are
values from a
A) discrete numerical random variable. B) continuous numerical random variable.
C) categorical random variable. D) parameter.

TABLE 1-2

A Wall Street Journal poll asked 2,150 adults in the U.S. a series of questions to find out their view on the U.S. economy.

35) Referring to Table 1-2, the possible responses to the question "Are you 1. Currently employed, 35)
2. Unemployed but actively looking for job, 3. Unemployed and quit looking for job?" result in
A) a nominal scale variable. B) an ordinal scale variable.
C) an interval scale variable. D) a ratio scale variable.

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 36) One of the developing countries is experiencing a baby boom, with the number of births rising 36)
for the fifth year in a row, according to a BBC News report. Which of the following is best for
displaying this data?
A) A Pareto chart B) A histogram
C) A time-series plot D) A two-way classification table

TABLE 2-5

The following are the duration in minutes of a sample of long-distance phone calls made within the continental United
States reported by one long-distance carrier.

Relative
Time (in Minutes) Frequency
0 but less than 5 0.37
5 but less than 10 0.22
10 but less than 15 0.15
15 but less than 20 0.10
20 but less than 25 0.07
25 but less than 30 0.07
30 or more 0.02

37) Referring to Table 2-5, what is the cumulative relative frequency for the percentage of calls 37)
that lasted 10 minutes or more?
A) 0.24 B) 0.90 C) 0.41 D) 0.16

38) According to the Chebyshev rule, at least what percentage of the observations in any data set 38)
are contained within a distance of 2 standard deviations around the mean?
A) 67% B) 75% C) 88.89% D) 95%

39) Which of the following statements about the median is not true? 39)
A) It is more affected by extreme values than the arithmetic mean.
B) It is equal to the mode in bell-shaped "normal" distributions.
C) It is equal to Q2 .
D) It is a measure of central tendency.

40) The collection of all possible events is called 40)

A) the null set. B) a sample space.
C) a joint probability. D) a simple probability.

41) A professor receives, on average, 24.7 e-mails from students the day before the midterm exam. 41)
To compute the probability of receiving at least 10 e-mails on such a day, he will use what
type of probability distribution?
A) Binomial distribution B) Poisson distribution
C) Hypergeometric distribution D) None of the above.

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 42) The owner of a fish market determined that the average weight for a catfish is 3.2 pounds with 42)
a standard deviation of 0.8 pound. A citation catfish should be one of the top 2% in weight.
Assuming the weights of catfish are normally distributed, at what weight (in pounds) should
the citation designation be established?
A) 7.36 pounds B) 1.56 pounds C) 5.20 pounds D) 4.84 pounds

43) The portion of the universe that has been selected for analysis is called 43)
A) a statistic. B) a parameter. C) a frame. D) a sample.

44) A statistics student found a reference in the campus library that contained the median family 44)
incomes for all 50 states. She would report her data as being collected using
A) a random sample. B) a published source.
C) a designed experiment. D) observational data.

TABLE 3-11

Given below are the closing prices for the Dow Jones Industrial Average (DJIA) and the Standard & Poor's (S&P) 500
Index over 10 weeks.

Dow Jones 10,421 10,110 9,862 10,475 9,920 10,592 11,213 10,933 11,134 10,316
S&P 500 1,379 1,356 1,343 1,410 1,389 1,463 1,529 1,499 1,516 1,355

45) Referring to Table 3-11, for the week when the DJIA is high, you will expect the S&P index in 45)
that week to
A) be high.
B) be low.
C) be about the same value as the DJIA.
D) have no relationship with the DJIA value.

46) If events A and B are mutually exclusive and collectively exhaustive, what is the probability 46)
that event A occurs?
A) 0
B) 0.50
C) 1.00
D) Cannot be determined from the information given

47) A multiple-choice test has 30 questions. There are 4 choices for each question. A student who 47)
has not studied for the test decides to answer all questions randomly. What type of probability
distribution can be used to figure out his chance of getting at least 20 questions right?
A) Binomial distribution B) Poisson distribution
C) Hypergeometric distribution D) None of the above.

48) Which of the following about the normal distribution is not true? 48)
A) About 2/3 of the observations fall within ± 1 standard deviation from the mean.
B) It is a discrete probability distribution.
C) Theoretically, the mean, median, and mode are the same.
D) Its parameters are the mean, µ, and standard deviation, .

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TABLE 1-2

A Wall Street Journal poll asked 2,150 adults in the U.S. a series of questions to find out their view on the U.S. economy.

49) Referring to Table 1-2, the possible responses to the question "How satisfied are you with the 49)
U.S. economy today with 1 = very satisfied, 2 = moderately satisfied, 3 = neutral, 4 =
moderately dissatisfied and 5 = very dissatisfied?" are values from a
A) discrete random variable. B) continuous random variable.
C) categorical random variable. D) parameter.

TABLE 2-15
The figure below is the ogive for the amount of fat (in grams) for a sample of 36 pizza products where the upper
boundaries of the intervals are: 5, 10, 15, 20, 25, and 30.

50) Referring to Table 2-15, what percentage of pizza products contains between 10 and 25 grams 50)
of fat?
A) 81% B) 14% C) 62% D) 44%

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

51) The Human Resources director of a large corporation wishes to develop an employee 51)
benefits package and decides to select 500 employees from a list of all (N = 40,000)
workers in order to study their preferences for the various components of a potential
package. The 500 employees who will participate in this study constitute the ________.

52) The Human Resources director of a large corporation wishes to develop an employee 52)
benefits package and decides to select 500 employees from a list of all (N = 40,000)
workers in order to study their preferences for the various components of a potential
package. Information obtained from the sample will be used to draw conclusions
about the true population ________.

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 53) The Human Resources director of a large corporation wishes to develop an employee 53)
benefits package and decides to select 500 employees from a list of all (N = 40,000)
workers in order to study their preferences for the various components of a potential
package. The director will use the data from the sample to compute ________.

54) A personal computer user survey was conducted. The number of years using a 54)
personal computer is an example of a ________ numerical variable.

55) The Human Resources director of a large corporation wishes to develop an employee 55)
benefits package and decides to select 500 employees from a list of all (N = 40,000)
workers in order to study their preferences for the various components of a potential
package. All the employees in the corporation constitute the ________.

TABLE 2-12

The table below contains the opinions of a sample of 200 people broken down by gender about the latest congressional
plan to eliminate anti-trust exemptions for professional baseball.

For Neutral Against Totals

Female 38 54 12 104
Male 12 36 48 96
Totals 50 90 60 200

56) Referring to Table 2-12, ________ percent of the 200 were males who were not against 56)
the plan.

TABLE 2-14

The table below contains the number of people who own a portable DVD player in a sample of 600 broken down by
gender.

Own a Portable
DVD Player Male Female
Yes 96 40
No 224 240

57) Referring to Table 2-14, of the males in the sample, ________ percent owned a portable 57)
DVD.

11
TABLE 2-12

The table below contains the opinions of a sample of 200 people broken down by gender about the latest congressional
plan to eliminate anti-trust exemptions for professional baseball.

For Neutral Against Totals

Female 38 54 12 104
Male 12 36 48 96
Totals 50 90 60 200

58) Referring to Table 2-12, of the females in the sample, ________ percent were either 58)
neutral or against the plan.

TABLE 2-14

The table below contains the number of people who own a portable DVD player in a sample of 600 broken down by
gender.

Own a Portable
DVD Player Male Female
Yes 96 40
No 224 240

59) Referring to Table 2-14, construct a table of column percentages. 59)

TABLE 3-4

The ordered array below represents the number of cargo manifests approved by customs inspectors of the Port of New
York in a sample of 35 days:

16, 17, 18, 18, 19, 20, 20, 21, 21, 21, 22, 22, 22, 22, 23, 23, 23, 23, 24, 24, 24, 25, 25, 26, 26, 26, 27, 28, 28, 29, 29, 31, 31, 32,
32

Note: For this sample, the sum of the values is 838, and the sum of the squared differences between each value and the
mean is 619.89.

60) Referring to Table 3-4, the coefficient of variation of the customs data is ________ 60)
percent.

61) Referring to Table 3-4, the range of the customs data is ________. 61)

12
TABLE 3-2

The data below represent the amount of grams of carbohydrates in a serving of breakfast cereal in a sample of 11
different servings.

11 15 23 29 19 22 21 20 15 25 17

62) Referring to Table 3-2, the variance of the carbohydrate amounts is ________ (grams 62)
squared).

TABLE 4-12

Jake woke up late in the morning on the day that he has to go to school to take an important test. He can either take the
shuttle bus which is usually running late 20% of the time or ride his unreliable motorcycle which breaks down 40% of
the time. He decides to toss a fair coin to make his choice.

63) Referring to Table 4-12, if Jake, in fact, gets to the test on time, what is the probability 63)
that he took the bus?

TABLE 4-8

According to the record of the registrar's office at a state university, 35% of the students are freshman, 25% are
sophomore, 16% are junior and the rest are senior. Among the freshmen, sophomores, juniors and seniors, the portion of
students who live in the dormitory are, respectively, 80%, 60%, 30% and 20%.

64) Referring to Table 4-8, what percentage of the students live in a dormitory? 64)

TABLE 4-10

Are whites more likely to claim bias? It was found that 60% of the workers were white, 30% were black and 10% are
other races. Given that a worker was white, the probability that the worker had claimed bias was 30%. Given that a
worker was black, the probability that the worker had claimed bias was 40%. Given that a worker was other race, the
probability that the worker had claimed bias was 0%.

65) Referring to Table 4-10, what is the probability that a randomly selected worker had 65)
not claimed bias?

66) In a game called Taxation and Evasion, a player rolls a pair of dice. If on any turn the 66)
sum is 7, 11, or 12, the player gets audited. Otherwise, she avoids taxes. Suppose a
player takes 5 turns at rolling the dice. The probability that she gets audited no more
than 2 times is ________.

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TABLE 5-8

Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing
plants. Your profit (in thousands of dollars) will depend on the taste of the consumers when winter arrives. The
probability of the three possible different tastes of the consumers and the corresponding profits are presented in the
following table.

Probability Taste Design A Design B

0.2 more conservative 180 520
0.5 no change 230 310
0.3 more liberal 350 270

67) Referring to Table 5-8, if you decide to choose Design A for 10% of the production 67)
lines and Design B for the remaining production lines, what is the risk of your
investment?

68) The interval between patients arriving at an outpatient clinic follows an exponential 68)
distribution with mean 15 minutes. What is the mean number of arrivals per minute?

TABLE 6-5

A company producing orange juice buys all its oranges from a large orange orchard. The amount of juice that can be
squeezed from each of these oranges is approximately normally distributed with a mean of 4.7 ounces and some
unknown standard deviation. The company's production manager knows that the probability is 30.85% that a
randomly selected orange will contain less than 4.5 ounces of juice. Also the probability is 10.56% that a randomly
selected orange will contain more than 5.2 ounces of juice. Answer the following questions without the help of a
calculator, statistical software or statistical table.

69) Referring to Table 6-5, what is the probability that a randomly selected orange will 69)
contain between 4.5 and 5.2 ounces of juices?

70) The oranges grown in corporate farms in an agricultural state were damaged by some 70)
unknown fungi a few years ago. Suppose the manager of a large farm wanted to study
the impact of the fungi on the orange crops on a daily basis over a 6-week period. On
each day a random sample of orange trees was selected from within a random sample
of acres. The daily average number of damaged oranges per tree and the proportion of
trees having damaged oranges were calculated. In this study, drawing conclusions on
any one day about the true population characteristics based on information obtained
from the sample is called ________.

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TABLE 2-12

The table below contains the opinions of a sample of 200 people broken down by gender about the latest congressional
plan to eliminate anti-trust exemptions for professional baseball.

For Neutral Against Totals

Female 38 54 12 104
Male 12 36 48 96
Totals 50 90 60 200

71) Referring to Table 2-12, ________ percent of the 200 were not neutral. 71)

TABLE 3-4

The ordered array below represents the number of cargo manifests approved by customs inspectors of the Port of New
York in a sample of 35 days:

16, 17, 18, 18, 19, 20, 20, 21, 21, 21, 22, 22, 22, 22, 23, 23, 23, 23, 24, 24, 24, 25, 25, 26, 26, 26, 27, 28, 28, 29, 29, 31, 31, 32,
32

Note: For this sample, the sum of the values is 838, and the sum of the squared differences between each value and the
mean is 619.89.

72) Referring to Table 3-4, the standard deviation of the customs data is ________. 72)

73) Eleven freshmen are to be assigned to eleven empty rooms in a student dormitory. 73)
Each room is considered unique so that it matters who is being assigned to which
room. How many different ways can those eleven freshmen be allocated?

TABLE 5-9

A major hotel chain keeps a record of the number of mishandled bags per 1,000 customers. In a recent year, the hotel
chain had 4.06 mishandled bags per 1,000 customers. Assume that the number of mishandled bags has a Poisson
distribution.

74) Referring to Table 5-9, what is the probability that in the next 1,000 customers, the 74)
hotel chain will have fewer than six mishandled bags?

75) The probability that a standard normal variable Z is positive is ________. 75)

76) An insurance company evaluates many numerical variables about a person before 76)
deciding on an appropriate rate for automobile insurance. How long a person has been
a licensed driver is an example of a ________ numerical variable.

15
TABLE 2-13

Given below is the stem-and-leaf display representing the amount of detergent used in gallons (with leaves in tenths
of gallons) in a day by 25 drive-through car wash operations in Phoenix.

9 | 147
10 | 02238
11 | 135566777
12 | 223489
13 | 02

77) Referring to Table 2-13, construct a cumulative percentage distribution for the 77)
detergent data if the corresponding frequency distribution uses "9.0 but less than 10.0"
as the first class.

TABLE 3-1

Health care issues are receiving much attention in both academic and political arenas. A sociologist recently conducted
a survey of citizens over 60 years of age whose net worth is too high to qualify for Medicaid. The ages of 25 senior
citizens were as follows:

60 61 62 63 64 65 66 68 68 69 70 73 73
74 75 76 76 81 81 82 86 87 89 90 92

78) Referring to Table 3-1, what type of shape does the distribution of the sample appear 78)
to have?

TABLE 4-6

At a Texas college, 60% of the students are from the southern part of the state, 30% are from the northern part of the
state, and the remaining 10% are from out-of-state. All students must take and pass an Entry Level Math (ELM) test.
60% of the southerners have passed the ELM, 70% of the northerners have passed the ELM, and 90% of the
out-of-staters have passed the ELM.

79) Referring to Table 4-6, the probability that a randomly selected student has passed the 79)
ELM is ________.

16
TABLE 5-7

There are two houses with almost identical characteristics available for investment in two different neighborhoods
with drastically different demographic composition. The anticipated gain in value when the houses are sold in 10 years
has the following probability distribution:

80) Referring to Table 5-7, what is the expected value gain if you invest in both houses? 80)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

81) Using the number of registered voters who turned out to vote for the primary in Iowa to 81)
predict the number of registered voters who will turn out to vote in Vermont's primary is an
example of descriptive statistics.

82) The amount of time a student spent studying for an exam is an example of a continuous 82)
variable.

83) The amount of calories contained in a 12-ounce package of cheese will be measured on a ratio 83)
scale.

84) Apple Computer, Inc. collected information on the age of their customers. The youngest 84)
customer was 12 and the oldest was 72. To study the distribution of the age among its
customers, it can use a Pareto chart.

85) Apple Computer, Inc. collected information on the age of their customers. The youngest 85)
customer was 12 and the oldest was 72. To study the percentage of their customers who are
below a certain age, it can use an ogive.

86) The median of the values 3.4, 4.7, 1.9, 7.6, and 6.5 is 1.9. 86)

87) In a set of numerical data, the value for Q3 can never be smaller than the value for Q1 . 87)

88) If P( A) = 0.4 and P( B) = 0.6, then A and B must be collectively exhaustive. 88)

89) If P( A and B) = 0, then A and B must be mutually exclusive. 89)

90) Suppose that a judge's decisions follow a binomial distribution and that his verdict is incorrect 90)
10% of the time. In his next 10 decisions, the probability that he makes fewer than 2 incorrect
verdicts is 0.736.

91) The probability that a standard normal random variable, Z, is between 1.00 and 3.00 is 0.1574. 91)

17
 92) The amount of alcohol consumed by a person per week will be measured on an interval scale. 92)

93) The percentage polygon is formed by having the lower boundary of each class represent the 93)
data in that class and then connecting the sequence of lower boundaries at their respective
class percentages.

94) As a general rule, a value is considered an extreme value if its Z score is greater than 3. 94)

95) If P( A or B) = 1.0, then A and B must be collectively exhaustive. 95)

96) The expected return of a two-asset portfolio is equal to the product of the weight assigned to 96)
the first asset and the expected return of the first asset plus the product of the weight assigned
to the second asset and the expected return of the second asset.

97) A worker earns $15 per hour at a plant in China and is told that only 2.5% of all workers make 97)
a higher wage. If the wage is assumed to be normally distributed and the standard deviation
of wage rates is $5 per hour, the average wage for the plant is $7.50 per hour.

98) The answer to the question "How many hours on average do you spend watching TV every 98)
week?" is an example of a ratio scaled variable.

99) The main principle behind the Pareto chart is the ability to separate the "vital few" from the 99)
"trivial many."

100) The larger the Z score, the farther is the distance from the value to the median. 100)

18
Answer Key
Testname: SAMPLE TEST ME710

1) C
2) A
3) A
4) D
5) B
6) A
7) C
8) A
9) D
10) D
11) A
12) A
13) A
14) B
15) D
16) C
17) A
18) B
19) B
20) B
21) C
22) C
23) D
24) B
25) A
26) D
27) C
28) A
29) A
30) B
31) B
32) B
33) A
34) C
35) A
36) C
37) C
38) B
39) A
40) B
41) B
42) D
43) D
44) B
45) A
46) D
47) A
48) B

19
Answer Key
Testname: SAMPLE TEST ME710

49) C
50) A
51) sample
52) parameters
53) statistics
54) continuous
55) population
56) 24%
57) 30%
58) 63.46% or (51.92 + 11.54)%
59) Own Male Female Total
Yes 30.00% 14.29% 22.67%
No 70.00% 85.71% 77.33%
Total 100.00% 100.00% 100.00%

60) 17.8% or 18%

61) 16
62) 26.02
63) 0.5714 or 57.14%
64) 0.526
65) 0.7 or 70%
66) 0.8965
67) $77.89634 thousands or $77,896.34
68) 0.06667
69) 0.5859 or 58.59%
70) inferential statistics/methods
71) 55%
72) 4.3
73) 39,916,800
74) 0.7757
75) 0.50
76) continuous
77) Frequency Percentage
Purchases (gals) Less Than Less Than
9.0 but less than 10.0 3 12
10.0 but less than 11.0 8 32
11.0 but less than 12.0 17 68
12.0 but less than 13.0 23 92
13.0 but less than 14.0 25 100
78) Slightly positive or right-skewed
79) 0.66
80) $ 33,850
81) FALSE
82) TRUE
83) TRUE
84) FALSE
85) TRUE
86) FALSE

20
Answer Key
Testname: SAMPLE TEST ME710

87) TRUE
88) FALSE
89) TRUE
90) TRUE
91) TRUE
92) FALSE
93) FALSE
94) TRUE
95) TRUE
96) TRUE
97) FALSE
98) TRUE
99) TRUE
100) FALSE

21