Exam 19: Questions that Involve Online Topics

TABLE 12-1 A perfume manufacturer is trying to choose between 2 magazine advertising layouts.An expensive layout would include a small package of the perfume.A cheaper layout would include a "scratch-and-sniff" sample of the product.The manufacturer would use the more expensive layout only if there is evidence that it would lead to a higher approval rate.The manufacturer presents both layouts to 5 groups and determines the approval rating from each group on both layouts.The data are given below.Use this to test whether the median difference in approval rating is different from zero in favor of the more expensive layout with a level of significance of 0.05. -Referring to Table 12-1,which pair(s)of observations has a negative signed rank?

TABLE 19-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. -Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100,200,or 400 dozen roses.The number of states of nature for the payoff table is

You have 5 stocks in your investment portfolio.You want to keep track of your portfolio's performance over the last 2 years.You have data on each of the stock's average price and the number of shares of each stock for every day of the last 2 years.Which of the following would be the most appropriate analysis to perform?

TABLE 9-2 An appliance manufacturer claims to have developed a compact microwave oven that consumes a population mean of no more than 250 W.From previous studies,it is believed that power consumption for microwave ovens is normally distributed with a population standard deviation of 15 W.If there is evidence that the population mean consumption is greater than 250 W,the manufacturer will be unable to make the claim. -Referring to Table 9-2,if you select a sample of 20 compact microwave ovens and are willing to have a level of significance of 0.01,the probability of making a Type II error is ________ if the mean power consumption of all such microwave ovens is in fact 257.3 W.

TABLE 19-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam.He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam.From the information that he gathered from students who had taken the course,he concluded that there was a 40% probability that the exam would be easy. -Referring to Table 19-6,what is the opportunity loss of spending 4 hours per week on average studying for the exam when the exam turns out to be easy?

TABLE 19-5 The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events. -Referring to Table 19-5,what is the optimal action using EMV?

The risk seeker's curve represents the utility of one who enjoys taking risks.Therefore,the slope of the utility curve becomes ________ for large dollar amounts.

TABLE 19-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam.He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam.From the information that he gathered from students who had taken the course,he concluded that there was a 40% probability that the exam would be easy. -Referring to Table 19-6,the optimal strategy using the maximin criterion is to study 16 hours per week on average for the exam.

If a new machine of a production plant is functioning properly,only 1% of the items produced will be defective.Out of the 1,000 items the plant produces on a single day,the approximate probability that less than 0.2% of the items will be defective if the new machine is indeed functioning properly is ________.

TABLE 6-1 A company has 125 personal computers.The probability that any one of them will require repair on a given day is 0.15. -Referring to Table 6-1 and assuming that the number of computers that requires repair on a given day follows a binomial distribution,compute the probability that there will be less than 25 or more than 30 computers that require repair on a given day using a normal approximation.

TABLE 16-1 Given below are the average prices for three types of energy products for five consecutive years. -Referring to Table 16-1,what is the Paasche price index for the group of three energy items in year 4 for a family that consumed 13 units of electricity,26 units of natural gas and 235 units of fuel oil in year 4 using year 1 as the base year?

TABLE 7-1 Times spent studying by students in the week before final exams follow a normal distribution with standard deviation 8 hours.A random sample of 4 students was taken from a population of 50 in order to estimate the mean study time for the population of all students.Use the finite population correction. -Referring to Table 7-1,5% of all the samples of 4 will have a sample mean of at least how many hours above the population mean?

TABLE 8-1 A random sample of 100 stores from a large chain of 500 garden supply stores was selected to determine the mean number of lawnmowers sold at an end-of-season clearance sale.The sample results indicated a mean of 6 and a standard deviation of 2 lawnmowers sold.A 95% confidence interval (5.623 to 6.377)was established based on these results. -Referring to Table 8-1,if the population had consisted of 1,000 stores,the confidence interval estimate of the mean with finite population correction would have been wider in range.

TABLE 16-2 Given below are the prices of a basket of four food items from 2006 to 2010. -Referring to Table 16-2,what is the Paasche price index for the basket of four food items in 2008 that consisted of 50 bushels of wheat,30 bushels of corn,40 bushels of soybeans and 80 hundredweight of milk in 2008 using 2006 as the base year?

Only when all three of the hat matrix elements hᵢ,the Studentized deleted residuals tᵢ and the Cook's distance statistic Dᵢ reveal consistent result should an observation be removed from the regression analysis.

When you use the Poisson distribution to approximate the binomial distribution,the mean is nπ where n is the sample size and π is the probability of an event of interest.

TABLE 9-1 A manufacturer produces light bulbs that have a mean life of at least 500 hours when the production process is working properly.Based on past experience,the population standard deviation is 50 hours and the light bulb life is normally distributed.The operations manager stops the production process if there is evidence that the population mean light bulb life is below 500 hours. -Referring to Table 9-1,if you select a sample of 100 light bulbs and are willing to have a level of significance of 0.01,the probability of the operations manager failing to stop the process if the population mean bulb life is 490 hours is ________.

TABLE 8-1 A random sample of 100 stores from a large chain of 500 garden supply stores was selected to determine the mean number of lawnmowers sold at an end-of-season clearance sale.The sample results indicated a mean of 6 and a standard deviation of 2 lawnmowers sold.A 95% confidence interval (5.623 to 6.377)was established based on these results. -Referring to Table 8-1,95% of the stores have sold between 5.623 and 6.377 lawnmowers.

TABLE 19-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam.He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam.From the information that he gathered from students who had taken the course,he concluded that there was a 40% probability that the exam would be easy. -Referring to Table 19-6,what is the return-to-risk ratio of spending 8 hours per week on average studying for the exam?

________ is a procedure for revising probabilities based upon additional information.