BUSI-2342: Practice Exam 2 with Answer and Solutions

1. Is X ~ N(0,1) a standardized normal distribution? Why or why not?

A. Yes, because the mean is zero and the standard deviation is one.
B. Yes, because the mean is one and the standard deviation is zero.
C. No, because we don’t know the median and mode.
D. No, because the variance is unknown.
Answer: A
Solution: Chapter 6.1
The mean for the standard normal distribution is zero, and the standard deviation is one. What this does is
dramatically simplify the mathematical calculation of probabilities.

2. Suppose X ~ N(2, 6). What is the z-score of x = 20?

A. 20
B. 10
C. 5
D. 3
Answer: D
Solution: Chapter 6.1
• From the question, we have:
x = 20
μ=2
σ=6
• Using the given formula

𝑥−𝜇 20 − 2 18
𝑧= →𝑧= →𝑧= →𝑧=3
𝜎 6 6
• Or using the given spreadsheet CH06-NormalProbability.xlsx (Canvas → Week 4)

3. Suppose X ~ N(8, 1). What value of x has a z-score of -2.25?

A. 6.35
B. 7.55
C. 5.75
D. 2.35
Answer: C
Solution: Chapter 6.1
 • From the question, we have:
μ=8
σ=1
z = -2.25
• Using the given formula
𝑥−𝜇
𝑧=
𝜎
𝑥−8
→ −2.25 =
1
→ −2.25 = 𝑥 − 8
→ −2.25 + 8 = 𝑥
→ 𝑥 = 5.75

4. Suppose a normal distribution has a mean of six and a standard deviation of 1.5. What is the z-score
of x = 5.5?
A. -1.35
B. -0.33
C. -0.35
D. -0.97
Answer: B
Solution: Chapter 6.1
• From the question, we have:
μ=6
σ = 1.5
x = 5.5
• Using the given formula
𝑥−𝜇 5.5 − 6
𝑧= →𝑧= → 𝑧 ≈ −0.33
𝜎 1.5
• Or using the given spreadsheet CH06-NormalProbability.xlsx (Canvas → Week 4)

5. The patient recovery time from a particular surgical procedure is normally distributed with a mean of
5.3 days and a standard deviation of 2.1 days. What is the z-score for a patient who takes ten days to
recover?
A. 1.5
B. 0.2
C. 2.2
D. 7.3
Answer: C
Solution: Chapter 6.1
• From the question, we have:
μ = 5.3
σ = 2.1
x = 10
• Using the given formula
𝑥−𝜇 10 − 5.3
𝑧= →𝑧= → 𝑧 ≈ 2.2
𝜎 2.1
• Or using the given spreadsheet CH06-NormalProbability.xlsx (Canvas → Week 4)

6. About what percent of x-values from a normal distribution lie within two standard deviations (left and
right) of the mean of that distribution?
A. 68%
B. 95%
C. 99%
D. 7%
Answer: B
Solution: Chapter 6.1
According to the Empirical Rule, about 95% of the x values lie between –2σ and +2σ of the mean µ
(within two standard deviations of the mean).

7. If the area to the left of x in a normal distribution is 0.123, what is the area to the right of x?
A. 0.877
B. 0.543
C. 0.172
D. 0.982
Answer: A
Solution: Chapter 6.2
The normal probability density function is a continuous distribution. The area under the curve must equal
one. Thus, the area to the right of x = 1 – the area to the left = 1 – 0.123 = 0.877.

8. According to the IRS, the average length of time for an individual to complete Form 1040 is 10.53
hours. The distribution is unknown. Let us assume that the standard deviation is two hours. Suppose
we randomly sample 36 taxpayers, what is the probability that they finished their Form 1040s in an
average of more than 11 hours? P(x > 11)
A. 0.1778
B. 0.5254
 C. 0.9873
D. 0.0793
Answer: D
Solution: Chapter 7.1
• The question asks for the probability of a sample group.
• The sample size is 36 > 30.

Step 1: Write down the P(X).

• P(x > 11)
Step 2: Convert the X to standard score Z.
• We need to convert x = 11 to a z-score to find the probability. From the question, we have:
μ = 10.53
σ=2
𝑋̅ = 11
n = 36
• According to the Central Limit Theorem:
𝑋̅ − 𝜇 11 − 10.53 0.47
𝑧= 𝜎 →𝑧= →𝑧= → 𝑧 ≈ 1.41
2 0.333
√𝑛 √36

Step 3: Write down the P(Z).

• P (z > 1.41)

Step 4: Find the value of P(Z).

• Using the given spreadsheet CH07-SampleMeans.xlsx (Canvas → Week 5).

• We have P (x > 11) = P (z > 1.41) = 0.0793

9. According to the IRS, the average length of time for an individual to complete Form 1040 is 10.53
hours. The distribution is unknown. Let us assume that the standard deviation is two hours. Suppose
we randomly sample 36 taxpayers, what is the probability that they finished their Form 1040s in an
average of less than 10 hours? P(x < 10)
A. 0.0559
B. 0.1724
C. 0.3356
D. 0.7484
Answer: A
Solution: Chapter 7.1
• The question asks for the probability of a sample group.
• The sample size is 36 > 30.

Step 1: Write down the P(X).

• P(x < 10)

Step 2: Convert the X to standard score Z.

• We need to convert x = 11 to a z-score to find the probability. The question asks for the
probability of a sample group. From the question, we have:
μ = 10.53
σ=2
𝑋̅ = 10
n = 36
• According to the Central Limit Theorem:
𝑋̅ − 𝜇 10 − 10.53 −0.53
𝑧= 𝜎 →𝑧= →𝑧= → 𝑧 ≈ −1.59
2 0.333
√𝑛 √36

Step 3: Write down the P(Z).

• P (z < -1.59)

Step 4: Find the value of P(Z).

• Using the given spreadsheet CH07-SampleMeans.xlsx (Canvas → Week 5).

• Thus, we have P (x < 10) = P (z < -1.59) = 0.0559

10. Suppose that a category of world-class runners is known to run a marathon (26 miles) in an average
of 145 minutes with a standard deviation of 14 minutes. Consider 49 of the races, what is the
probability that they finished marathon in an average of less than 140 minutes? P(x < 140)
A. 0.9999
B. 0.8451
C. 0.0062
D. 0.1205
Answer: C
Solution: Chapter 7.1
• The question asks for the probability of a sample group.
 • The sample size is 49 > 30.

Step 1: Write down the P(X).

• P(x < 140)

Step 2: Convert the X to standard score Z.

• We need to convert x = 140 to a z-score to find the probability. The question asks for the
probability of a sample group. From the question, we have:
μ = 145
σ = 14
𝑋̅ = 140
n = 49
• According to the Central Limit Theorem:
𝑋̅ − 𝜇 140 − 145 −5
𝑧= 𝜎 →𝑧= →𝑧= → 𝑧 ≈ −2.5
14 2
√𝑛 √49

Step 3: Write down the P(Z).

• P (z < -2.5)

Step 4: Find the value of P(Z).

• Using the given spreadsheet CH07-SampleMeans.xlsx (Canvas → Week 5).

• Thus, we have P (x < 140) = P (z < -2.5) = 0.0062

11. Suppose that a category of world-class runners is known to run a marathon (26 miles) in an average
of 145 minutes with a standard deviation of 14 minutes. Consider 49 of the races, what is the
probability that they finished marathon in an average of more than 155 minutes? P(x > 155)
A. 0.5242
B. 0.0000
C. 0.1201
D. 0.2238
Answer: B
Solution: Chapter 7.1
• The question asks for the probability of a sample group.
• The sample size is 49 > 30.
 Step 1: Write down the P(X).
• P(x > 155)

Step 2: Convert the X to standard score Z.

• We need to convert x = 155 to a z-score to find the probability. The question asks for the
probability of a sample group. From the question, we have:
μ = 145
σ = 14
𝑋̅ = 155
n = 49
• According to the Central Limit Theorem:
𝑋̅ − 𝜇 155 − 145 10
𝑧= 𝜎 →𝑧= →𝑧= →𝑧≈5
14 2
√𝑛 √49

Step 3: Write down the P(Z).

• P (z > 5)

Step 4: Find the value of P(Z).

• Using the given spreadsheet CH07-SampleMeans.xlsx (Canvas → Week 5).

• Thus, we have P (x > 155) = P (z > 5) ≈ 0.0000

12. According to the central limit theorem, in a population whose distribution may be known or
unknown, if the ________ is sufficiently large, the distribution of the sample means will be
approximately normal.
A. sample mean
B. sample size
C. population variance
D. population standard deviation
Answer: B
Solution: Chapter 7: Introduction
The Central Limit Theorem is concerned with drawing finite samples of size n from a population with a
known mean, μ, and a known standard deviation, σ. The conclusion is that if we collect samples of size n
with a "large enough n," calculate each sample's mean, and create a histogram (distribution) of those
means, then the resulting distribution will tend to have an approximate normal distribution.
13. The law of large numbers states that the _____the sample size you take from a population, the
____the sample mean gets to μ.
A. larger; closer
B. closer; larger
C. smaller; larger
D. smaller; farther
Answer: A
Solution: Chapter 7.2
The law of large numbers says that if you take samples of larger and larger size from any population, then
the mean of the sampling distribution tends to get closer and closer to the true population mean, μ.

14. A hospital is trying to cut down on emergency room wait times. It is interested in the amount of time
patients must wait before being called back to be examined. An investigation committee randomly
surveyed 70 patients. The sample mean was 1.5 hours with a sample standard deviation of 0.5 hours.
n = ______
A. 70
B. 1.5
C. 0.5
D. 125
Answer: A
Solution: Chapter 8.1
According to the question, “An investigation committee randomly surveyed 70 patients”. Thus, sample
size, n = 70.

15. A hospital is trying to cut down on emergency room wait times. It is interested in the amount of time
patients must wait before being called back to be examined. An investigation committee randomly
surveyed 70 patients. The sample mean was 1.5 hours with a sample standard deviation of 0.5 hours.
Suppose EBM = 0.12 for a 95% confidence interval, what is the 95% confidence interval for the
population mean time spent waiting?
A. (1.38, 1.62)
B. (1.62, 1.72)
C. (0.62, 0.74)
D. (0.38, 1.62)
Answer: A
Solution: Chapter 8.1
To construct the confidence interval with the error bound (EBM), the confidence interval estimate has the
format (𝑥̅ – EBM, 𝑥̅ + EBM).
According to the question, 𝑥̅ = 1.5 and EBM = 0.12 for a 95% confidence interval. Thus, we have:

(𝑥̅ – EBM, 𝑥̅ + EBM) = (1.5 – 0.12, 1.5 + 0.12) = (1.38, 1.62)

16. One hundred eight Americans were surveyed to determine the number of hours they spend watching
television each month. It was revealed that they watched an average of 151 hours each month with a
standard deviation of 32 hours. Assume that the underlying population distribution is normal.
Suppose EBM = 8.08 for a 99% confidence interval, what is the 99% confidence interval for the
population mean time spent waiting?
 A. (142.92, 145.98)
B. (142.92, 159.08)
C. (144.77, 159.18)
D. (138.59, 162.13)
Answer: B
Solution: Chapter 8.1
To construct the confidence interval with the error bound (EBM), the confidence interval estimate has the
format (𝑥̅ – EBM, 𝑥̅ + EBM).
According to the question, 𝑥̅ = 151 and EBM = 8.08 for a 99% confidence interval. Thus, we have:

(𝑥̅ – EBM, 𝑥̅ + EBM) = (151 – 8.08, 151 + 8.08) = (142.92, 159.08)

17. When constructing a confidence interval, the analyst must decide the level of confidence they wish to
impost on the confidence interval. Suppose the probability that the interval will not contain the true
population mean, α = 0.05, what is the level of confidence?
A. 99%
B. 97%
C. 95%
D. 91%
Answer: C
Solution: Chapter 8.1
The confidence level the percent of confidence intervals that contain the true population parameter when
repeated samples are taken. Most often, it is the choice of the person constructing the confidence interval
to choose a confidence level.

There is another probability called alpha (α). α is related to the confidence level, CL. α is the probability
that the interval does not contain the unknown population parameter.
Mathematically, 1 - α = CL.

Thus, the level of confidence (or confidence level) = 1 – α = 1 – 0.05 = 0.95 = 95%

18. You are testing that the mean speed of your cable Internet connection is more than three Megabits per
second. What’s the alternative hypothesis?
A. Ha: μ > 3
B. Ha: μ < 3
C. Ha: μ = 3
D. H0: μ ≤ 3
Answer: A
Solution: Chapter 9.1
The alternative hypothesis is a claim about the population that is contradictory to H0 and what we
conclude when we cannot accept H0. This is usually what the researcher is trying to prove.

According to the question, you want to test the mean speed is more than three Megabits per second and μ
= mean speed of the cable Internet connection.

Thus, the alternative hypothesis should be Ha: μ > 3.

19. Suppose that a recent article stated that the mean time spent in jail by a first–time convicted burglar is
2.5 years. A study was then done to see if the mean time has increased in the new century. A random
sample of 50 first-time convicted burglars in a recent year was picked. The mean length of time in jail
from the survey was 3 years with a standard deviation of 1.8 years. Suppose that it is somehow
known that the population standard deviation is 1.5. If you were conducting a hypothesis test to
determine if the mean length of jail time has increased, what would the alternative hypothesis be?
A. Ha: μ < 2.5
B. Ha: μ >2.5
C. Ha: μ = 2.5
D. H0: μ ≤ 2.5
Answer: B
Solution: Chapter 9.1
The alternative hypothesis is a claim about the population that is contradictory to H0 and what we
conclude when we cannot accept H0. This is usually what the researcher is trying to prove.

According to the question, you want to see if the mean length of jail time has increased (from 2.5 years)
and μ = mean time spent in jail.

Thus, the alternative hypothesis should be Ha: μ > 2.5.

20. Assume H0: μ ≤ 6 and Ha: μ > 6. Is this a left-tailed, right-tailed, or two-tailed test?
A. Left-tailed test
B. Right-tailed test
C. Two-tailed test
D. None of the above.
Answer: B
Solution: Chapter 9.3
A right-tailed test has the alternative hypothesis with a greater than (>) symbol.
According to the question, Ha: μ > 6. Thus, this is a right-tailed test.

21. Assume the null hypothesis states that the mean is equal to 88. The alternative hypothesis states that
the mean is not equal to 88. Is this a left-tailed, right-tailed, or two-tailed test?
A. Left-tailed test
B. Right-tailed test
C. Two-tailed test
D. None of the above.
Answer: C
Solution: Chapter 9.3
A two-tailed test has the alternative hypothesis allowed that the mean could have come from a population
which was either larger or smaller than the hypothesized mean in the null hypothesis.
According to the question, the alternative hypothesis states that the mean is not equal to 88. Thus, this is a
two-tailed test.
22. A Type I error occurs when we ______________
A. not to reject the null hypothesis when, in fact, the null hypothesis is false.
B. not to reject the null hypothesis when, in fact, the null hypothesis is true.
C. reject the null hypothesis when, in fact, the null hypothesis is false.
D. reject the null hypothesis when, in fact, the null hypothesis is true.
Answer: D
Solution: Chapter 9.2
Type I error happened when the decision is cannot accept H0 when, in fact, H0 is true. This case is
described as "rejecting a good null".

23. It is believed that a community college’s students get less than seven hours of sleep per night, on
average. A survey of 100 students generated a mean of 7.24 hours with a standard deviation of 1.93
hours. To test if students get less than seven hours of sleep per night, on average, at a 5% level of
significance, you state the following hypotheses:
H0: μ ≥ 7
Ha: μ < 7

What is the calculated value of test statistic?

A. -5.22
B. -1.24
C. -22.77
D. -5.47
Answer: B
Solution: Chapter 9.3
This question relates to “Step 3: Gather data and calculate test statistics”.
• The sample parameters are provided:
Sample mean, 𝑋̅ = 7.24
Sample standard deviation, 𝜎 = 1.93
Sample size, n = 100
Hypothesized population mean in the null hypothesis, μ = 7

̅ − μ0
X ̅
X − μ0 7.24 − 7
Zc = σ = s = = 1.24
1.93
√n √n √100

• Or using the given spreadsheet CH09-HT with One Sample.xlsx (Canvas → Week 6)
24. It is believed that a community college’s students get less than seven hours of sleep per night, on
average. A survey of 100 students generated a mean of 7.24 hours with a standard deviation of 1.93
hours. To test the claim that on average, students get less than seven hours of sleep per night, you
state the following hypotheses:
H0: μ ≥ 7
Ha: μ < 7

What is the p-value of the test?

A. 0.1068
B. 0.2124
C. 0.1732
D. 0.5233
Answer: A
Solution: Chapter 9.3
This question relates to “Step 3: Gather data and calculate test statistics” and “Step 4: Compare test
statistic and the critical values”.
• The sample parameters are provided:
Sample mean, 𝑋̅ = 7.24
Sample standard deviation, 𝜎 = 1.93
Sample size, n = 100
Hypothesized population mean in the null hypothesis, μ = 7

• To calculate the p-value of the test, using the given spreadsheet CH09-HT with One Sample.xlsx
(Canvas → Week 6)

• Because this is a one-tailed (left) test, p-value = 0.1068.

25. It is believed that a community college’s students get less than seven hours of sleep per night, on
average. A survey of 100 students generated a mean of 7.24 hours with a standard deviation of 1.93
hours. To test the claim that on average, students get less than seven hours of sleep per night, you
state the following hypotheses:
H0: μ ≥ 7
Ha: μ < 7

Suppose the results of the study are shown below, what would be conclude at the 0.05 significance
level?
 A. Fail to reject null hypothesis; there is insufficient evidence to support the claim.
B. Fail to reject null hypothesis; there is sufficient evidence to support the claim.
C. Reject null hypothesis; there is insufficient evidence to support the claim.
D. Reject null hypothesis; there is sufficient evidence to support the claim.
Answer: A
Solution: Chapter 9.3
This question relates to “Step 5: Draw a conclusion and interpret the decision”.
• According to the question, this is a one-tailed (left) test. Thus, p-value = 0.1068.
• If p-value ≤ α, reject H0, and if p-value > α, fail to reject H0.
• According to the question, the significance level is 0.05, which means α = 0.05. Because p-value
= 0.1068 > 0.05, we fail to reject H0 and believe there is not sufficient evidence to conclude that
the alternative hypothesis may be correct. In this case the status quo stands.