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Business Decision Making Exams (PT DGSCM)

The document discusses a drinks dispensing machine that Warren checks for a client. In a recent check of 6 cups, the mean amount dispensed was found to be 14.30 ounces with a standard deviation of 0.18 ounces. At a 1% significance level, a hypothesis test is conducted to determine if the dispenser is dispensing an average of more than 14 fluid ounces.

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0% found this document useful (0 votes)
102 views8 pages

Business Decision Making Exams (PT DGSCM)

The document discusses a drinks dispensing machine that Warren checks for a client. In a recent check of 6 cups, the mean amount dispensed was found to be 14.30 ounces with a standard deviation of 0.18 ounces. At a 1% significance level, a hypothesis test is conducted to determine if the dispenser is dispensing an average of more than 14 fluid ounces.

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Time Save
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© © All Rights Reserved
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More and more restaurants allow customers to get their drinks directly from the automatic dispenser.

Warren works in a company that manufactures various types of drinks dispensing machines. When
the dispenser is operating well, the average amount dispensed should be 14 fluid ounces. From time
to time, the dispenser needs to be checked to make sure that the amount dispensed is as set. If it is
found that the amount dispensed is significantly higher or lower than 14 fluid ounces, adjustment
needs to be done. In a recent visit to a client’s restaurant, Warren dispensed six cups of drinks and
carefully measured the amount in each cup. The mean was found to be 14.30 ounces, with a sample
standard deviation of 0.18 ounces. The amount dispensed is assumed to be normally distributed. At
1% significance level, test whether the dispenser is dispensing an average of more than 14 fluid
ounces.

State the null hypothesis. 


B. µ ≤ 14 
State the alternative hypothesis. 
O. µ ≥ 14
Is this a one-tailed or two-tailed test?
H. two-tailed test
State the critical value.
J. 3.3649
Calculate the test value.
A. 4.0825
State the decision.
L. Reject the null hypothesis.
Justify your choice of decision in previous part.
M. The test value falls in the critical region.
There is enough evidence to conclude that the machine is dispensing an average of more than 14
fluid ounces. Is the statement true or false?

True
The conclusion of the test indicates that the machine does not need any adjustment. Is the
statement true or false?

False
Why do you think the standard normal A. 4.0825
distribution is not used in this hypothesis B. µ ≤ 14 
test? C. one-tailed test
I. population standard deviation is unknown D. sample standard deviation is known
The test value is in the non-critical
E.
region.
F. 1.6667
G. µ < 14
H. two-tailed test
I. population standard deviation is unknown
J. 3.3649
K. population sample size is unknown
L. Reject the null hypothesis.
M. The test value falls in the critical region.
N. 3.1427
O. µ ≥ 14
P. µ > 14 
Q. 3.7469
R. False
S. True
T. Do not reject the null hypothesis.

A personal care company wants to determine whether the age of an individual is


associated with the use of a certain brand of shampoo. A random sample of 300
customers were asked if they have used that particular brand of shampoo within the
last 6 months. The following data has been collected.

Using 0.05 level of significance, test whether there is sufficient evidence to conclude that the
age of an individual is not associated with the use of a certain brand of shampoo.

(a) The alternative hypothesis will be phrased as: The use of a certain brand of
TRUE
shampoo is related to the age of an individual. (True / False) Blank 1

5.991
(b) The appropriate critical value is Blank 2 , in three decimal places.

(c) Calculate the expected values in two decimal places, and fill in the respective
blanks in the sequence C11, C21, C22, C32:

45.60 34.58 56.42 55.18

      Blank 3 , Blank 4 , Blank 5 , Blank 6


5.249
(d) The test value is Blank 7 , in three decimal places.

C
(e) Decision of the test is to Blank 8 . (Choose an option below. Key in letter A,
B, C, D or E)

      A. Reject null hypothesis as the test value falls in the critical region

      B. Do not reject null hypothesis as the test value is more than the critical value

      C. Do not reject null hypothesis as the test value is less than the critical value

      D. Reject null hypothesis as the test value falls in the non-critical region

      E. Reject null hypothesis as the test value is less than the critical value

(f) Conclusion to the test is:

A
There is Blank 9 evidence to conclude that the use of a certain brand of
E
shampoo is Blank 10 the age of an individual.

(Choose an option below for each blank. Key in letter A, B, C, D or E)

      A. enough

      B. not enough

      C. not related to

      D. related to

      E. not associated to 

A regression analysis is performed to find out whether the weight of the participants (in kg)
explains the number of servings of meals the participants have during an event where free
buffet is provided.

The sample data are shown as follows:


 

Answer the following questions.

(a) The independent variable is the 'Weight'. (Key in either True or False) Blank 1
False
.

477
(b) The value of ∑x is Blank 2 .

47
(c)  The value of ∑y is Blank 3 .
3413
(d)  The value of ∑xy is Blank 4 .
35291
(e)  The value of ∑x2 is Blank 5 .

(f) The regression equation is  .

1.572 0.075
     Fill in b0 and b1 in three decimal places: Blank 6   Blank 7  

(g)  The correlation coefficient is found to be 0.567. We can say that the linear
relationship between the weight of the participants and the number of servings of
meals the participants have is:

positve
        Blank 8 (Choose one to key in: negative / positive / zero)

Moderate
        Blank 9 (Choose one to key in: weak / moderate / strong)

5.429
(h) The coefficient of determination is Blank 10 , in three decimal places.

An advertising company wishes to estimate the mean household income for all single
working professionals who own a foreign automobile. If the advertising company wants a
90% confidence interval estimate with a margin of error of ±$2,500, what sample size is
needed if the population standard deviation is known to be $27,500?
251
330
415
156

Which of the following will increase the width of a confidence interval (assuming that
everything else remains constant)?
A decrease in the standard deviation
Decreasing the confidence level
Decreasing the sample size
Increasing the sample size

A study was recently conducted to estimate the mean number of hours pre-school children
engage in outdoor activities. From a random sample of 16 children, the mean was found to be
7.6 hours with a sample standard deviation of 1.8 hours. To find the 90% confidence interval
estimate for the mean, the correct critical value to use is:
1.65
1.7459
1.7531
1.96

When σ is unknown, the margin of error is computed by using:


the mean of the population.
t-distribution.
the mean of the sample.
normal distribution.

Suppose a study of 40 randomly sampled students on their weekly grocery expenditure is


carried out, and a 90% confidence interval estimate is constructed. Explain the interval of
($58, $120) obtained.
We are 90% confident that the population mean amount of weekly grocery expenditure
is between $58 and $120,
With certainty, the sample mean amount of weekly grocery expenditure is between $58
and $120,
We are confident that 90% of the population mean amount of weekly grocery
expenditure is between $58 and $120,
We are 90% confident that the sample mean amount of weekly grocery expenditure is
between $58 and $120,
Question 10

In a hypothesis test involving a population mean, which of the following would be an


acceptable formulation?
H0 : μ ≤ 800 km
Ha : μ > 800 km
H0 : μ > $30
Ha : μ ≤ $30
H0 : μ ≤ 60
Ha : μ > 70

H0 :    > 12 min

Ha :   ≤ 12 min

Question 24

Assume that we have found a regression equation of   = 3.6 - 2.4x, and that the
coefficient of determination is 0.72, then the correlation of x and y must be about 0.849.

True

False

The following regression model has been computed based on a sample of twenty
observations:

   = 34.2 + 19.3x. 
Given this model, the predicted value for y when x = 40 is 806.2.

True
False

A regression analysis between sales of the year in dollars (Y) and number of promotional
events in the year (X) revealed the following equation:

 = 135,000 + 2,400X
Estimate the sales of the year if there are 12 promotional events held during the year.
$152,000
$193,400
$163,800
$126,800

Question 21

If the population correlation between two variables is determined to be -0.70, which of the
following is known to be true?
There is a moderately strong negative linear relationship between the two variables.
An increase in one of the variables will cause the other variable to decline by 70
percent.
There is a positive linear relationship between the two variables.
The scatter diagram for the two variables will be upward sloping from left to right.

Question 19

In a contingency analysis the expected values are based on the assumption that the two
variables are independent of each other.

True

False

A contingency analysis test is performed with a 5 × 4 contingency table. With a significance


level of 0.10, the degrees of freedom for the chi-square test is
15
16
20
12

Contingency analysis can be used when the level of data measurement is nominal or ordinal.

True

False

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