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Statistics for Managers Study Set 1
Exam 17: Getting Ready to Analyze Data
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Question 361
Multiple Choice
From an inventory of 48 new cars being shipped to local dealerships, corporate reports indicate that 12 have defective radios installed. Which of the following distributions would you use to Determine the probability that out of the 8 new cars it just received that, when each is tested, no More than 2 of the cars have defective radios?
Question 362
Multiple Choice
A wheel spinning game is played with a special wheel with 24 equal segments that determine the dollar values of a single spin. Which of the following distributions can best be used to compute The probability of winning a specific dollar value in a single spin?
Question 363
True/False
SCENARIO 17-15 The tree diagram below shows the results of the classification tree model that has been constructed to predict the probability of a cable company's customers who will switch ("Yes" or "No") into its bundled program offering based on the price ($30, $40, $50, $60) and whether the customer spends more than 5 hours a day watching TV ("Yes" or "No") using the data set of 100 customers collected from a survey.
-Referring to Scenario 17-15, the highest probability of switching is predicted to occur among customers who watch more than 5 hours of TV a day and are offered the bundled price of between $30 and $40.
Question 364
Short Answer
SCENARIO 17-8 The superintendent of a school district wanted to predict the percentage of students passing a sixth- grade proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily mean of the percentage of students attending class (% Attendance), mean teacher salary in dollars (Salaries), and instructional spending per pupil in dollars (Spending) of 47 schools in the state. Following is the multiple regression output with
Y
=
%
Y = \%
Y
=
%
Passing as the dependent variable,
X
1
=
%
X _ { 1 } = \%
X
1
ā
=
%
Attendance,
X
2
=
X _ { 2 } =
X
2
ā
=
Salaries and
X
3
=
X _ { 3 } =
X
3
ā
=
Spending:
Ā RegressionĀ StatisticsĀ
Ā MultipleĀ RĀ
0.7930
Ā RĀ SquareĀ
0.6288
Ā AdjustedĀ RĀ
0.6029
Ā SquareĀ
Ā StandardĀ
10.4570
Ā ErrorĀ
Ā ObservationsĀ
47
\begin{array}{lr}\hline{\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.7930 \\\text { R Square } & 0.6288 \\\text { Adjusted R } & 0.6029 \\\text { Square } & \\\text { Standard } & 10.4570 \\\text { Error } & \\\text { Observations } & 47 \\\hline\end{array}
Ā RegressionĀ StatisticsĀ
Ā MultipleĀ RĀ
Ā RĀ SquareĀ
Ā AdjustedĀ RĀ
Ā SquareĀ
Ā StandardĀ
Ā ErrorĀ
Ā ObservationsĀ
ā
0.7930
0.6288
0.6029
10.4570
47
ā
ā
ANOVA
Ā CoefficientsĀ
Ā StandardĀ
Ā ErrorĀ
Ā tĀ StatĀ
Ā P-valueĀ
Ā LowerĀ 95%Ā
Ā UpperĀ 95%Ā
Ā InterceptĀ
ā
753.4225
101.1149
ā
7.4511
0.0000
ā
957.3401
ā
549.5050
Ā %Ā AttendanceĀ
8.5014
1.0771
7.8929
0.0000
6.3292
10.6735
Ā SalaryĀ
0.000000685
0.0006
0.0011
0.9991
ā
0.0013
0.0013
Ā SpendingĀ
0.0060
0.0046
1.2879
0.2047
ā
0.0034
0.0153
\begin{array}{lrrrrrr}\hline & \text { Coefficients } & \begin{array}{c}\text { Standard } \\\text { Error }\end{array} & \text { t Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -753.4225 & 101.1149 & -7.4511 & 0.0000 & -957.3401 & -549.5050 \\\text { \% Attendance } & 8.5014 & 1.0771 & 7.8929 & 0.0000 & 6.3292 & 10.6735 \\\text { Salary } & 0.000000685 & 0.0006 & 0.0011 & 0.9991 & -0.0013 & 0.0013 \\\text { Spending } & 0.0060 & 0.0046 & 1.2879 & 0.2047 & -0.0034 & 0.0153 \\\hline\end{array}
Ā InterceptĀ
Ā %Ā AttendanceĀ
Ā SalaryĀ
Ā SpendingĀ
ā
Ā CoefficientsĀ
ā
753.4225
8.5014
0.000000685
0.0060
ā
Ā StandardĀ
Ā ErrorĀ
ā
101.1149
1.0771
0.0006
0.0046
ā
Ā tĀ StatĀ
ā
7.4511
7.8929
0.0011
1.2879
ā
Ā P-valueĀ
0.0000
0.0000
0.9991
0.2047
ā
Ā LowerĀ 95%Ā
ā
957.3401
6.3292
ā
0.0013
ā
0.0034
ā
Ā UpperĀ 95%Ā
ā
549.5050
10.6735
0.0013
0.0153
ā
ā
-Referring to Scenario 17-8, which of the following is the correct null hypothesis to test whether instructional spending per pupil has any effect on percentage of students passing the proficiency Test, taking into account the effect of all the other independent variables? a)
H
0
:
β
0
=
0
H _ { 0 } : \beta _ { 0 } = 0
H
0
ā
:
β
0
ā
=
0
b)
H
0
:
β
1
=
0
H _ { 0 } : \beta _ { 1 } = 0
H
0
ā
:
β
1
ā
=
0
c)
H
0
:
β
2
=
0
H _ { 0 } : \beta _ { 2 } = 0
H
0
ā
:
β
2
ā
=
0
d)
H
0
:
β
3
=
0
H _ { 0 } : \beta _ { 3 } = 0
H
0
ā
:
β
3
ā
=
0
Question 365
Multiple Choice
Suppose the probability of finding a defective spot in an area on a piece of glass is the ratio of that area to the total area of the glass and the probability is the same across the whole glass. Which of the following distributions would you use to determine the probability of finding a Defective spot in a randomly selected one square inch area on a piece of 10 feet by 10 feet glass?
Question 366
Short Answer
SCENARIO 17-8 The superintendent of a school district wanted to predict the percentage of students passing a sixth- grade proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily mean of the percentage of students attending class (% Attendance), mean teacher salary in dollars (Salaries), and instructional spending per pupil in dollars (Spending) of 47 schools in the state. Following is the multiple regression output with
Y
=
%
Y = \%
Y
=
%
Passing as the dependent variable,
X
1
=
%
X _ { 1 } = \%
X
1
ā
=
%
Attendance,
X
2
=
X _ { 2 } =
X
2
ā
=
Salaries and
X
3
=
X _ { 3 } =
X
3
ā
=
Spending:
Ā RegressionĀ StatisticsĀ
Ā MultipleĀ RĀ
0.7930
Ā RĀ SquareĀ
0.6288
Ā AdjustedĀ RĀ
0.6029
Ā SquareĀ
Ā StandardĀ
10.4570
Ā ErrorĀ
Ā ObservationsĀ
47
\begin{array}{lr}\hline{\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.7930 \\\text { R Square } & 0.6288 \\\text { Adjusted R } & 0.6029 \\\text { Square } & \\\text { Standard } & 10.4570 \\\text { Error } & \\\text { Observations } & 47 \\\hline\end{array}
Ā RegressionĀ StatisticsĀ
Ā MultipleĀ RĀ
Ā RĀ SquareĀ
Ā AdjustedĀ RĀ
Ā SquareĀ
Ā StandardĀ
Ā ErrorĀ
Ā ObservationsĀ
ā
0.7930
0.6288
0.6029
10.4570
47
ā
ā
ANOVA
Ā CoefficientsĀ
Ā StandardĀ
Ā ErrorĀ
Ā tĀ StatĀ
Ā P-valueĀ
Ā LowerĀ 95%Ā
Ā UpperĀ 95%Ā
Ā InterceptĀ
ā
753.4225
101.1149
ā
7.4511
0.0000
ā
957.3401
ā
549.5050
Ā %Ā AttendanceĀ
8.5014
1.0771
7.8929
0.0000
6.3292
10.6735
Ā SalaryĀ
0.000000685
0.0006
0.0011
0.9991
ā
0.0013
0.0013
Ā SpendingĀ
0.0060
0.0046
1.2879
0.2047
ā
0.0034
0.0153
\begin{array}{lrrrrrr}\hline & \text { Coefficients } & \begin{array}{c}\text { Standard } \\\text { Error }\end{array} & \text { t Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -753.4225 & 101.1149 & -7.4511 & 0.0000 & -957.3401 & -549.5050 \\\text { \% Attendance } & 8.5014 & 1.0771 & 7.8929 & 0.0000 & 6.3292 & 10.6735 \\\text { Salary } & 0.000000685 & 0.0006 & 0.0011 & 0.9991 & -0.0013 & 0.0013 \\\text { Spending } & 0.0060 & 0.0046 & 1.2879 & 0.2047 & -0.0034 & 0.0153 \\\hline\end{array}
Ā InterceptĀ
Ā %Ā AttendanceĀ
Ā SalaryĀ
Ā SpendingĀ
ā
Ā CoefficientsĀ
ā
753.4225
8.5014
0.000000685
0.0060
ā
Ā StandardĀ
Ā ErrorĀ
ā
101.1149
1.0771
0.0006
0.0046
ā
Ā tĀ StatĀ
ā
7.4511
7.8929
0.0011
1.2879
ā
Ā P-valueĀ
0.0000
0.0000
0.9991
0.2047
ā
Ā LowerĀ 95%Ā
ā
957.3401
6.3292
ā
0.0013
ā
0.0034
ā
Ā UpperĀ 95%Ā
ā
549.5050
10.6735
0.0013
0.0153
ā
ā
-Referring to Scenario 17-8, which of the following is the correct alternative hypothesis to test whether daily mean of the percentage of students attending class has any effect on percentage of Students passing the proficiency test, taking into account the effect of all the other independent Variables? a)
H
1
:
β
0
ā
0
H _ { 1 } : \beta _ { 0 } \neq 0
H
1
ā
:
β
0
ā
ī
=
0
b)
H
1
:
β
1
ā
0
H _ { 1 } : \beta _ { 1 } \neq 0
H
1
ā
:
β
1
ā
ī
=
0
c)
H
1
:
β
2
ā
0
H _ { 1 } : \beta _ { 2 } \neq 0
H
1
ā
:
β
2
ā
ī
=
0
d)
H
1
:
β
3
ā
0
H _ { 1 } : \beta _ { 3 } \neq 0
H
1
ā
:
β
3
ā
ī
=
0
Question 367
Multiple Choice
A contractor wants to forecast the number of contracts in future quarters, using quarterly data on number of contracts over the last 10 years. Which of the following would be the most Appropriate analysis to perform?