Final Exam – MATH105 (Sample Test)

Part 1 – Multiple Choice

1) The standard deviation of a point estimator is called the

a. standard deviation
b. standard error
c. point estimator
d. variance of estimation

2) A population has a mean of 80 and a standard deviation of 7. A sample of 49 observations will be taken.
The probability that the sample mean will be larger than 82 is
a. 0.5228
b. 0.9772
c. 0.4772
d. 0.0228

3) The purpose of statistical inference is to provide information about the

a. sample based upon information contained in the population
b. population based upon information contained in the sample
c. population based upon information contained in the population
d. mean of the sample based upon the mean of the population

4) Random samples of size 525 are taken from an infinite population whose population proportion is 0.3.
The standard deviation of the sample proportions (i.e., the standard error of the proportion) is
a. 0.0004
b. 0.2100
c. 0.3000
d. 0.0200

5) When s is used to estimate s, the margin of error is computed by using

a. normal distribution
b. t distribution
c. the mean of the sample
d. the mean of the population

6) The value added and subtracted from a point estimate in order to develop an interval estimate of the
population parameter is known as the
a. confidence level
b. margin of error
c. parameter estimate
d. interval estimate

7) Doubling the size of the sample will

a. reduce the standard error of the mean to one-half its current value
b. reduce the standard error of the mean to approximately 70% of its current value
c. have no effect on the standard error of the mean
d. double the standard error of the mean

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8) In determining the sample size necessary to estimate a population proportion, which of the following
information is not needed?
a. the maximum margin of error that can be tolerated
b. the confidence level required
c. a preliminary estimate of the true population proportion P
d. the mean of the population
9) It is known that the variance of a population equals 1,936. A random sample of 121 has been taken from
the population. There is a .95 probability that the sample mean will provide a margin of error of
a. 7.84
b. 31.36
c. 344.96
d. 1,936
10) For a lower tail test, the p-value is the probability of obtaining a value for the test statistic
a. at least as small as that provided by the sample
b. at least as large as that provided by the sample
c. at least as small as that provided by the population
d. at least as large as that provided by the population.

11) The level of significance in hypothesis testing is the probability of

a. accepting a true null hypothesis
b. accepting a false null hypothesis
c. rejecting a true null hypothesis
d. None of these alternatives is correct.

12) If a hypothesis test leads to the rejection of the null hypothesis,

a. a Type II error must have been committed
b. a Type II error may have been committed
c. a Type I error must have been committed
d. a Type I error may have been committed

13) If the level of significance of a hypothesis test is raised from .01 to .05, the probability of a Type II error
a. will also increase from .01 to .05
b. will not change
c. will decrease
d. will increase

14) The average life expectancy of tires produced by the Whitney Tire Company has been 40,000 miles.
Management believes that due to a new production process, the life expectancy of their tires has increased. In
order to test the validity of their belief, the correct set of hypotheses is
a. H0: µ < 40,000 Ha: µ 40,000
b. H0: µ 40,000 Ha: µ > 40,000
c. H0: µ > 40,000 Ha: µ 40,000
d. H0: µ 40,000 Ha: µ < 40,000

15) If a hypothesis is rejected at 95% confidence, it

a. will always be accepted at 90% confidence
b. will always be rejected at 90% confidence
c. will sometimes be rejected at 90% confidence
d. None of these alternatives is correct.

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16) The standard error of is the
a. variance of
b. variance of the sampling distribution of
c. standard deviation of the sampling distribution of
d. difference between the two means

17) The manager of the service department of a local car dealership has noted that the service times of a
sample of 15 new automobiles has a standard deviation of 4 minutes. A 95% confidence interval estimate for the
variance of service times for all their new automobiles is
a. 8.576 to 39.796
b. 4 to 16
c. 4 to 15
d. 2.93 to 6.31

18) The degrees of freedom for a contingency table with 10 rows and 11 columns is
a. 100
b. 110
c. 21
d. 90

19) If the coefficient of determination is a positive value, then the coefficient of correlation
a. must also be positive
b. must be zero
c. can be either negative or positive
d. must be larger than 1

20) In regression analysis, the independent variable is

a. used to predict other independent variables
b. used to predict the dependent variable
c. called the intervening variable
d. the variable that is being predicted

21) If the coefficient of correlation is 0.8, the percentage of variation in the dependent variable explained by
the variation in the independent variable is
a. 0.80%
b. 80%
c. 0.64%
d. 64%

22) A regression analysis between sales (in $1000) and price (in dollars) resulted in the following equation
= 60 - 8X
The above equation implies that an
a. increase of $1 in price is associated with a decrease of $8 in sales
b. increase of $8 in price is associated with an decrease of $52,000 in sales
c. increase of $1 in price is associated with a decrease of $52 in sales
d. increase of $1 in price is associated with a decrease of $8000 in sales

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23) A collection of statistical methods that generally requires very few, if any, assumptions about the
population distribution is known as
a. parametric methods
b. nonparametric methods
c. distribution-fixed methods
d. normal

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Part 2 – Work-out Problems
(SHOW ALL YOUR WORKS IN DETAILS TO RECEIVE FULL CREDITS)

1) A new brand of chocolate bar is being market tested. Four hundred of the new chocolate bars were given
to consumers to try. The consumers were asked whether they liked or disliked the chocolate bar. You are given
their responses below.

Response Frequency
Liked 250
Disliked 150
400

a. What is the point estimate for the proportion of people who liked the chocolate bar?
b. Construct a 95% confidence interval for the true proportion of people who liked the chocolate
bar.
c. With a .95 probability, how large of a sample needs to be taken to provide a margin of error of
3% or less?
d. Is there evidence to conclude that the proportion of people who liked the chocolate bar is 60%?
(use 𝛼 = 0.05)

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2) The results of a recent study regarding smoking and three types of illness are shown in the following
table.
Illness Non-Smokers Smokers Totals
Emphysema 20 60 80
Heart problem 70 80 150
Cancer 30 40 70
Totals 120 180 300
We are interested in determining whether or not illness is independent of smoking.

a. Show that if illness is independent of smoking then the proportion of non-smokers who get
heart problem is the same as the one of smokers.
b. State the null and alternative hypotheses to be tested.
c. If a smoker is randomly selected, estimate the probability that he/she gets emphysema?
d. Show the contingency table of the expected frequencies.
e. Compute the test statistic.
f. The null hypothesis is to be tested at 95% confidence. Determine the critical value for this test.
What do you conclude about the association between smoking and the illness?