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 27th , 2021

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 (20 points)

1. The region of the hypothesis test that divides the rejection and non-rejection regions is
called:
a. level of significance
b. critical value
c. confidence coefficient
d. error region

2. How do you commit a Type II error?

a. Reject a null hypothesis that is true.
b. Reject a null hypothesis that is false.
c. Fail to reject a null hypothesis that is true.
d. Fail to reject a null hypothesis that is false.

3. What test should a researcher use to determine whether there is evidence that the mean
family income in the U.S. is greater than $40,000?
a. Acceptance-Rejection test
b. Two-tail test
c. One-tail test
d. None of the above

4. If the p-value is greater than alpha in a two-tail test, what conclusion should you draw?
a. The null hypothesis should be rejected.
b. The null hypothesis should not be rejected.
c. A one-tail test should be used.
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 d. A larger value of alpha should be used.

5. What statistical distribution is used for testing the difference between two population
variances?
a. Fisher
b. Normal
c. Poisson
d. Student-t

6.When testing a hypothesis, a statistician initially assumes which of the following?

a. null hypothesis is true
b. the population parameter is known
c. null hypothesis is false
d. alternate hypothesis is true

7. Which of the following statements is false?

a. H0 always contains an equality.
b. H0 always refers to a value of a sample statistic.
c. H0 always refers to a value of the population parameter.
d. H1 never contains an equality.

8. If you reject a true null hypothesis, what does this mean?

a. You have made a Type I error.
b. You have made a Type II error.
c. You have made a correct decision.
d. You have encountered beta (β) error.

9. If the p-value is less than alpha in a one-tail test, what conclusion should you draw?
a. The null hypothesis should not be rejected.
b. A one-tail test should be used.
c. A larger value of alpha should be used.
d. The null hypothesis should be rejected.

10. If a one-tail Z test for a proportion is performed, what conclusion should be drawn if the
upper critical value is 2.33, and the test statistic is equal to 1.79?
a. The alternate hypothesis cannot be rejected.
b. The null hypothesis should be rejected.
c. The sample size should be decreased.
d. The null hypothesis should not be rejected.

Exercise 1(20 points)

Nine subjects were used in an experiment to determine if exposure to carbon monoxide has an
impact on breathing capability. The data were collected by personnel in the Health and
Physical Education Department at Virginia Tech and were analyzed in the Statistics
Consulting Center at Hokie Land.
The subjects were exposed to breathing chambers, one of which contained a high
concentration of CO. Breathing frequency measures were made for each subject for each
chamber.

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The subjects were exposed to the breathing chambers in random sequence. The data below
give the breathing frequency, in number of breaths taken per minute.

Conduct a Paired-T test of the hypothesis that mean breathing frequency is the same for
the two environments. Use α = 0.05. Assume that breathing frequency is approximately
normal.

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Exercise 2 (15 points)

A study is conducted to compare the lengths of time required by men and women to assemble
a certain product. Past experience indicates that the distribution of times for both men and
women is approximately normal but the variance of the times for women is less than that for
men. A random sample of times for 11 men and 14 women produced the following data:

Test at α = 0.05, the hypothesis that ࣌૛૚ ൑ ࣌૛૛ against the alternative that ࣌૛૚ ൐ ࣌૛૛ .
Conclude.

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Exercise 3 (20 points)

Students randomly selected were given different drug treatments before revising for their
exams. Some were given a memory drug, some a placebo drug and some no treatment.

The exam scores are summarized in the Table below for the three different groups

The descriptive statistics of the exam scores are presented as follows

The ANOVA Sum of squares results are shown below

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Assume that each group is approximately normal and the standard deviations of each group
are approximately equal.

1. Complete the missing informations in the ANOVA Table

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2. Conduct a One way ANOVA to test the hypothesis that the treatments will have
different effects (use α =0 .05).

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Exercise 4 (25 points)

Is gender independent of education level? A random sample of 395 people were surveyed and
each person was asked to report the highest education level they obtained. The data that
resulted from the survey is summarized in the following table:

High School Bachelors Masters Ph.d. Total

Female 60 54 46 41 201

Male 40 44 53 57 194

Total 100 98 99 98 395

The following is the Table of expected frequencies

High School Bachelors Masters Ph.d.

Female 50.886 fe12 50.377 fe13

Male fe21 48.132 fe23 48.132

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1. Compute the missing expected frequencies
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2. Use the six step methods to test if the gender and education level are dependent at
5% level of significance? In other words, given the data collected above, is there a
relationship between the gender of an individual and the level of education that
they have obtained?
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Good Luck