The Actual Value for the Current Period

Question 1

Using a three-month moving average, the forecast value for October made at the end of September in the following time series would be ______.

July / 12
Aug / 5
Sept / 7
Oct / 11

7.67

6.89

7.25

Question 2

Use of a smoothing constant value greater than 0.5 in an exponential smoothing model gives more weight to ______.

the actual value for the current period

the actual value for the previous period

the forecast for the current period

the forecast for the previous period

the forecast for the next period

Question 3 (Multiple Choice Worth 1.5 points)

Use of a smoothing constant value less than 0.5 in an exponential smoothing model gives more weight to ______.

the actual value for the current period

the actual value for the previous period

the forecast for the current period

the forecast for the previous period

the forecast for the next period

Question 4 (Multiple Choice Worth 1.5 points)

A time series with forecast values and error terms is presented in the following table. The mean squared error (MSE) for this forecast is ______.

Month / Actual / Forecast / Error
July / 5
Aug / 11 / 5 / 6.00
Sept / 13 / 6.8 / 6.20
Oct / 6 / 8.66 / -2.66
Nov / 5 / 7.862 / -2.86

13.33

17.94

89.71

22.43

32.34

Question 5

Using 2000 as the base year, the 2002 value of a simple price index for the following price data is ______.

Year / 1998 / 1999 / 2000 / 2001 / 2002 / 2003
Price / 29.88 / 32.69 / 42.04 / 46.18 / 47.98 / 48.32

77.60

114.13

160.58

99.30

100.00

Question 6

Analysis of data for an autoregressive forecasting model produced the following tables.

Coefficients / Standard Error / t Statistic / p-value
Intercept / 4.85094 / 5.745787 / 0.84426 / 0.40299
yt-1 / -0.10434 / 0.062849 / -1.66023 / 0.103822
yt-2 / 0.962669 / 0.065709 / 14.65044 / 9.69E-19
df / SS / MS / F / p-value
Regression / 2 / 135753.5 / 67876.76 / 107.3336 / 1.91E-17
Residual / 43 / 27192.79 / 632.3904
Total / 45 / 162946.3

The forecasting model is ______.

yt = 5.745787 + 0.062849yt-1 + 0.065709yt-2

yt = 4.85094 - 0.10434yt-1 + 0.962669yt-2

yt = 0.84426 - 1.66023yt-1 + 14.65023yt-2

yt = 0.40299 + 0.103822yt-1 + 9.69yt-2

yt = 0.40299 + 0.103822yt-1 - 9.69yt-2

Question 7

The following graph of time-series data suggests a ______trend.

linear

quadratic

cosine

tangential

flat

Question 8

General Motors and Ford have produced cars with the same size diesel engine. We are interested in determining whether or not there is a significant difference in the gas consumption of the two models of automobiles. A random sample of 7 cars from each manufacturer is selected, and 7 drivers are selected to drive one of GM and one of Ford cars for a specified distance implying that driver 1 drove the first GM car and the first Ford car, driver 2 drove the second GM car and the second Ford car, driver 3 drove third GM car and the third Ford car, and so on. The MPG (miles per gallon) data is recorded and summarized in the following table:

Driver / General Motors Model
(MPG) / Ford Model
(MPG)
1 / 29 / 26
2 / 25 / 23
3 / 26 / 27
4 / 25 / 25
5 / 22 / 24
6 / 24 / 23
7 / 27 / 25

Which of the following is a correct statement if the objective of the test of hypothesis is to determine whether there is a difference in the gas consumption of the two models?

Ho: GM = Ford

Ho: D = 0 (where D is the mean population difference)

Ho: GMFord

Ho: D 0

None of the above answers is correct.

Question 9

Concerning the diesel engine gas mileage problem, what is (are) the critical value(s) of test statistics if significance level is 5%?

2.447

+1.943

-1.943

1.96

1.645

-1.645

Question 10

Concerning diesel engine gas mileage problem, ASSUMING that null hypothesis can not be rejected at 5% significance level, what conclusion can be drawn concerning the gas mileage for GM and Ford car models using this type of engine?

there is no difference in the gas mileage for this type of cars using this type of diesel engine for the two manufactures

there is a difference in the gas mileage for this type of cars using this type of diesel engine for the two manufacturers

GM cars equipped with this type of diesel engine get a higher gas mileage than Ford cars equipped with the same type of engine

Ford cars equipped with type of diesel engine get a higher gas mileage than GM cars equipped with the same type of engine

Question 11

Concerning diesel engine gas mileage problem, ASSUMING that null hypothesis can be rejected at 5% significance level and conclusion is drawn that there is a difference in the gas mileage for this type of cars using this type of diesel engine for the two manufacturers, what is the probability that this conclusion is the wrong conclusion?

95%

100%

0.5%

There is not enough information to answer this question.

Question 12

Express Delivery, Inc. claims that it will deliver packages in less than 48 hours. Office Equipment Company uses Express Delivery, Inc.’s package delivery service for delivering merchandise to its most valued customers. To check the validity of the claim made by Express Delivery, Office Equipment Company checked the delivery time for the last 37 order deliveries and learned that sample mean is 50 hours. Assume that population standard deviation of delivery time for all packages delivered by Express Delivery is 4.9 hours. Which of the following is correct?

Ho: < 48

Ho: 48

Ho: > 48

Ha: > 48

None of the above is the correct answer.

Question 13

Concerning the Express Delivery, Inc. problem statement, if test of hypothesis at 2% level of significance is desired, what is (are) the critical value(s) for test statistics?

2.33

+2.33

-2.33

2.05

+2.05

-2.05

Question 14

Concerning the Express Delivery, Inc. problem statement, what is the value of the test statistic?

2.18

2.48

2.68

-2.18

-2.48

None of the above is the correct answer.

Question 15

Concerning the Express Delivery, Inc. problem statement, ASSUMING that null hypothesis should be rejected, what statement can be made concerning the validity of claim made by Express Delivery, Inc.?

No conclusion can be drawn.

There is not enough information to answer this question.

The claim is not valid.

The claim is valid.

None of the above is the correct answer.

Question 16

Benson Medical Equipment is specialized in cardiovascular surgery equipment. The result of simple regression analysis conducted on data gathered over ten years resulted in the linear equation Y=9.75+13.2X, where X is the number of sales persons employed and Y is the sales volume in millions of dollars. If Benson Medical Equipment plans to employ 20 salespersons next year, what would be the predicted sales volume next year?

$274,000,000

$273,750,000

$273.75

$274.00

None of the above answers is correct.

Question 17

Concerning the Benson Medical problem statement, the slope of regression equation implies that:

the sales volume is independent of the number of salespersons employed.

the sales volume decreases with a decrease in the number of salespersons employed.

the sales volume decreases with an increase in the number of salespersons employed.

the sales volume increases with a decrease in the number of salespersons employed.

None of the above answers is correct.

Question 18

Concerning Benson Medical problem statement, the coefficient of determination is determined to be equal to 0.94. What percentage of data is explained by this regression equation?

97.0%

88.4%

94.0%

There is not enough information to answer this question.

None of the above is the correct answer.

Question 19

Concerning Benson Medical problem statement, what is the value of the coefficient of correlation?

+0.9695

–0.9695

+0.8836

–0.8836

+0.9400

None of the above is the correct answer.

Question 20Concerning Benson Medical problem statement, which of the following is the appropriate alternative hypothesis if the objective is to evaluate the overall significance of the model?

Ha: < 0

Ha: > 0

Ha: 0

None of the above answers is correct.

Question 21

Concerning Benson Medical problem statement, what conclusion can be drawn if the null hypothesis can not be rejected at significance level of 1% when conducting a t-test?

The slope of regression model is statistically significant.

The slope of the regression model is not statistically significant.

The slope of regression model is negative.

No specific conclusion can be drawn.

None of the above answers is correct.

Question 22

The marketing department of a company has designed three different boxes for its product. It wants to determine if sales for these boxes are different. Each box will be marketed in five different stores for a period of a month. Sales data for each box for each of the five stores were recorded. Which of the following would be the appropriate type of test of hypothesis if the objective is to determine whether the sales for these boxes are different?

completely randomized design

factorial design

randomized block design

None of the above answers is correct

Question 23

In reference to marketing problem statement, if the objective is to determine whether the sales for these boxes are different, indicate which of the following is a correct statement?

the appropriate null hypothesis is 1=2=3=4=5

the appropriate null hypothesis is 1=2=3

the appropriate alternative hypothesis is 1=2=3

None of the above answers is correct

Question 24

A group of 550 Michigan registered voters were asked about their political party affiliation and how they would cast a vote concerning the proposal to increase federal income tax rate to resolve the federal budget deficit over the next ten years. The following data was obtained:

Political Party Affiliation / Favor / Undecided / Oppose / Total
Democrat / 180 / 80 / 40 / 300
Republican / 150 / 20 / 30 / 200
Independent / 10 / 20 / 20 / 50
Total / 340 / 120 / 90 / 550

Which of the following is the appropriate null hypothesis if the objective is to determine whether the register voters in Michigan will vote along the party line on the proposal to increase the federal income tax rate?

The casting of the vote is dependent on voter’s political party affiliation.

The casting of the vote is independent of voter’s political party affiliation.

There is not enough information to answer this question.

None of the above answers is correct.

Question 25

Concerning Michigan registered voter problem statement, what is the critical value of test statistic if the significance level is 10%?

1.28

7.7794

14.6387

26.2962

None of the above answers is correct.

Question 26

Concerning Michigan registered voter problem statement, ASSUMING that null hypothesis can not be rejected based on significance level of 10%, what conclusion can be drawn?

The casting of the vote is dependent on voter’s political party affiliation.

The casting of the vote is independent of voter’s political party affiliation.

There is not enough information to answer this question.

None of the above answers is correct.

Question 27

A multiple regression analysis produced the following tables.

Predictor / Coefficients / Standard Error / t Statistic / p-value
Intercept / 752.0833 / 336.3158 / 2.236241 / 0.042132
x1 / 11.87375 / 5.32047 / 2.231711 / 0.042493
x2 / 1.908183 / 0.662742 / 2.879226 / 0.01213
Source / df / SS / MS / F / p-value
Regression / 2 / 203693.3 / 101846.7 / 6.745406 / 0.010884
Residual / 12 / 181184.1 / 15098.67
Total / 14 / 384877.4

The regression equation for this analysis is ______.

y = 752.0833 + 11.87375 x1 + 1.908183 x2

y = 752.0833 + 336.3158 x1 + 2.236241 x2

y = 336.3158 + 5.32047 x1 + 0.662742 x2

y = 2.236241 + 2.231711 x1 + 2.879226 x2

y = 2.236241 + 2.231711 x1 - 2.879226 x2

Question 28

A human resources analyst is developing a regression model to predict electricity production plant manager compensation as a function of production capacity of the plant, number of employees at the plant, and plant technology (coal, oil, and nuclear). The "plant technology" variable in this model is ______.

a qualitative variable

a dependent variable

a response variable

an indicator variable

an independent variable

Question 29

In regression analysis, outliers may be identified by examining the ______.

coefficient of determination

coefficient of correlation

p-values for the partial coefficients

residuals

R-squared value

Question 30

Yvonne Yang, VP of Finance at Discrete Components, Inc. (DCI), wants a regression model which predicts the average collection period on credit sales. Her data set includes two qualitative variables: sales discount rates (0%, 2%, 4%, and 6%), and total assets of credit customers (small, medium, and large). The number of dummy variables needed for "sales discount rate" in Yvonne's regression model is ______.

Question 31

A multiple regression analysis produced the following tables.

Coefficients / Standard Error / t Statistic / p-value
Intercept / 707.9144 / 435.1183 / 1.626947 / 0.114567
x1 / 2.903307 / 81.62802 / 0.035568 / 0.971871
x12 / 11.91297 / 3.806211 / 3.129878 / 0.003967
df / SS / MS / F / p-value
Regression / 2 / 32055153 / 16027577 / 47.34557 / 1.49E-09
Residual / 27 / 9140128 / 338523.3
Total / 29 / 41195281

For x1= 10, the predicted value of y is ______.

1,632.02

1,928.25

10.23

314.97

938.35

Question 32

An "all possible regressions" search of a data set containing 7 independent variables will produce ______regressions.

127

Question 33

Inspection of the following table of correlation coefficients for variables in a multiple regression analysis reveals that the first independent variable entered by the forward selection procedure will be ______.

y / x1 / x2 / x3 / x4 / x5
y / 1
x1 / -0.1661 / 1
x2 / 0.231849 / -0.51728 / 1
x3 / 0.423522 / -0.22264 / -0.00734 / 1
x4 / -0.33227 / 0.028957 / -0.49869 / 0.260586 / 1
x5 / 0.199796 / -0.20467 / 0.078916 / 0.207477 / 0.023839 / 1

Question 34

Which of the following iterative search procedures for model-building in a multiple regression analysis reevaluates the contribution of variables previously include in the model after entering a new independent variable?

Backward elimination

Stepwise regression

Forward selection

All possible regressions

Backward selection

Question 35

Alan Bissell, a market analyst for City Sound Mart, is analyzing sales of heavy metal CD's. Alan's dependent variable is annual heavy metal CD sales (in $1,000,000's), and his independent variables are teenage population (in 1,000's) and type of sales district (0 = urban, 1 = rural). Regression analysis of the data yielded the following tables.

Coefficients / Standard Error / t Statistic / p-value
Intercept / 1.7 / 0.384212 / 4.424638 / 0.00166
x1(teenagers) / 0.04 / 0.014029 / 2.851146 / 0.019054
x2(district) / -1.5666667 / 0.20518 / -7.63558 / 3.21E-05

For an urban sales district with 10,000 teenagers, Alan's model predicts annual sales of heavy metal CD sales of ______.

$2,100,000

$524,507

$533,333

$729,683

21,000,000

Question 36

After a transformation ofthe y-variable values into log y, and performing a regression analysis produced the following tables.

Coefficients / Standard Error / t Statistic / p-value
Intercept / 2.005349 / 0.097351 / 20.59923 / 4.81E-18
x / 0.027126 / 0.009518 / 2.849843 / 0.008275
df / SS / MS / F / p-value
Regression / 1 / 0.196642 / 0.196642 / 8.121607 / 0.008447
Residual / 26 / 0.629517 / 0.024212
Total / 27 / 0.826159

For x1= 10, the predicted value of y is ______.

155.79

1.25

2.42

189.06

18.90

Question 37

A multiple regression analysis produced the following tables.

The regression equation for this analysis is ______.

y = 707.9144 + 2.903307 x1 + 11.91297 x12

y = 707.9144 + 435.1183 x1 + 1.626947 x12

y = 435.1183 + 81.62802 x1 + 3.806211 x12

y = 1.626947 + 0.035568 x1 + 3.129878 x12

y = 1.626947 + 0.035568 x1 - 3.129878 x12

Question 38

Which of the following sampling methods does not lead to probability samples?

stratified

cluster

systematic

judgement

simple random sampling

None of the above answers is correct

Question 39

If we are interested in testing whether the mean of population 1 is smaller than the mean of population 2, the

the null hypothesis should state

HO: 1-2 < 0

the null hypothesis should state

HO: 1-20

the alternative hypothesis should state

Ha: 1-20

the alternative hypothesis should state

Ha: 1-20

None of the above answers is correct

Question 40

Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system. She knows that 2,500 payroll vouchers have been issued since January 1, 2000, and her staff doesn't have time to inspect each voucher. So, she randomly selects 53 as a starting point and orders her staff to inspect the 53rd voucher and each voucher at an increment of 100 (53, 153, 253, etc.). Her sample is a ______.

stratified sample

simple random sample

convenience sample

systematic sample

Question 41 If all the points of a scatter diagram lie on the least squares regression line, then the coefficient of determination for these variables based on this data is

either 1 or -1, depending upon whether the relationship is positive or negative

could be any value between -1 and 1

None of the above answers is correct

Question 42

Application of the least squares methods results in values of the y intercept and the slope which minimizes the sum of the squared deviations between the

observed values of the independent variable and estimated values of the independent variable

actual values of the independent variable and estimated values of the dependent variable

observed values of the dependent variable and the estimated values of the dependent variable

None of the above answers is correct

Question 43

Fifty percent of the applications received for a particular credit card are accepted. Among the next twelve applications, what is the probability that less than three applications are accepted?

0.054

0.016

0.019

0.000

None of the above answers is correct

Question 44

Variability in price of stock is one consideration for stock investment. If the only criteria for buying stock is the variability in price of stock which of the following stock should be purchased if the lowest price variability is desired?

Stock A with mean price value of $85 and standard deviation of $10

Stock B with mean price value of $40 and standard deviation of $5

Stock C with mean price value of $185 and standard deviation of $25

Stock D with mean price value of $4 and standard deviation of $1

Question 45

If there is a very strong correlation between two variables, then the coefficient of correlation must be

much larger than 1, if the correlation is positive

much smaller than 1, if the correlation is negative

Both answers above are correct answers

None of the above answers is correct

Question 46

After computing a confidence interval, the user believes the results are meaningless because the width of the interval is too large. Which one of the following is the best recommendation?

Increase the level of confidence for the interval

Discard the current data and try a different sample

Increase the sample size

Reduce the population variance

None of the above answers is correct

Question 47

If a hypothesis is rejected at 0.5% level of significance, it

will always be rejected at the 0.49% level

will always be accepted at the 0.49% level

will never be tested at the 0.49% level

may be rejected or not rejected at the 0.49% level

Question 48

As the sample size increases

standard deviation of the population decreases

population mean increases

standard error of mean decreases

standard error of mean increases

None of the above answers is correct

Question 49

An important application of the chi-square distribution is

when making inferences about a single population variance

when testing for goodness of fit

when testing for independence of two variables

All of the above answers are correct

None of the above answers are correct

Question 50

Consider a random variable X. If Z represents the standard score associated with X, what is the probability associated with P(Z 3.5)?

1.0

0.0

0.5

There is not enough information to answer this question

None of the above answers is correct

Question 51

The most important statistical descriptive measure of the central tendency (location) of a data set is the

mean

mode

median

variance

None of the above answers is correct

Question 52

If the coefficient of determination is equal to one, then the coefficient of correlation

must be equal to one

can be either -1 or +1

can be any value between -1 to +1

must be -1

None of the above answers is correct

Question 53

Your investment executive claims that the average yearly rate of return on the stocks you have selected to invest in on your own is at most 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is

HO: < 10.0% / Ha: 10.0%
HO: 10.0% / Ha: < 10.0%
HO: > 10.0% / Ha: 10.0%
HO: 10.0% / Ha: > 10.0%

None of the above answers is correct