STATS Exam

1. The sum of the percent frequencies for all the classes will always equal –
a. One
b. The number of classes
c. The number of items in the study
D. 100

2. What type of data do you need for chi-square test –

a. Categorical data
b. Continuous
c. Random
d. NOT

3. The null hypothesis is false then which of the following is accepted –

a. Null hypothesis
b. Positive hypothesis
c. Negative hypothesis
d. Alternative hypothesis

4. A frequency distribution is a tabular summary of data showing the:

a. fraction of items in several classes
b. percentage of items in several classes
c. relative percentage of items in several classes
d. number of items in several classes

5. The T value with 95% confidence and 24 degrees of freedom is –

a. 1.711
b. 2.064
c. 2.492
d. 2.069

6. The t value for a 95% confidence interval estimation with 24 degrees of freedom is: 2.064

7. A type 1 error occurs when we –

a. reject a false null hypothesis
b. reject a true null hypothesis
c. do not reject a false null hypothesis
d. None of these

8. When each data value in one sample is matched with a corresponding data value in another sample, the sample
are known as – matched samples

9. Which of the following does not need to be know in order to computer the p-value? –
a. knowledge of whether the test is one-tailed or two-tailed
b. the value of the test statistic
c. the level of significance
d. Not

10. A type 2 error occurs when – Do not reject a false null hypothesis
11. For a one-tailed test (upper tail) at 93.7% confidence, Z = 1.53

12. For one-tailed test (lower tail) at 89.8% confidence, Z = -1.27

13. For a one Tailed test (lower tail) at 99.7% confidence, Z = ?
14. For a one-tailed test (lower tail) at 93.7% confidence, Z = -1.53
a. -1.86
b. -1.53
c. -1.96
d. -1.645

15. For a one-tailed test (lower tail), a sample size of 22 at 95% confidence, t=
a. -1.383
b. 1.383
c. -1.717
d. -1.721

16. For a one-tailed test (lower tail), a sample size of 10 at 90% confidence, t=
a. 1.383
b. 2.821
c. -1.383
d. -2.821

17. For a two-tailed test at 86.12% confidence, Z =

a. 1.96
b. 1.48
c. 1.09
d. 0.86

18. For a one-tailed test (upper tail), a sample size of 18 at 95% confidence, t=
a. 2.12
b. -2.12
c. -1.74
d. 1.74

19. For a two-tailed test, a sample of 20 at 80% confidence, t =

a. 1.328
b. 2.539
c. 1.325
d. 2.528

20. Following two-way, between-subjects ANOVA a simple effect would involve –

a. conducting one entrast
b. conducting a one-way within –subjects ANOVA
c. Ignoring the existence of one IV at a time and comparing the levels of the other IV.
d. Taking only one level of one IV at a time and comparing the levels of the other IV.

21. On which of the following does the critical value for a chi-square statistic rely –
a. The degree of freedom
b. the sum of the frequencies
c. the row totals
d. the number of variables.

22. F-test use if certain condition met –

a. Focus is central tendency
b. approximate normality
 c variances of the two populations are met
d. All of these

23. We can evaluate the assumption of ______ of the errors by plotting the residuals in the order or sequence in
which data were collected
a. Independence
b. Normality
c. Equal variance
d. none of these

24. For an Interval estimation of m when s is known and the sample is large, the proper distribution is ……..
a. the normal distribution
b. the t distribution with n degrees of freedom
c. the t distribution with n-1 degrees of freedom
d. the t distribution with n-2 degrees of freedom

25. For which of the following values of P is the value of P(1-P) is maximized? P=0.50
26. The Chi-square test is extended to compare more than two ------------- populations ( fill in the blanks)
a. independent
b. dependent
c. rational
d. none of these

27. Suppose that we reject a null hypothesis at the 5% level of significance. For which of the following levels of
significance do we reject the Null hypothesis? 6% / 0.06%

28. We are interested in conducting a study in order to determine what percentage of voters of a state would vote
for the Incumbent governor. What is the minimum estimate the population proportion with a margin of error of
0.05 or less at 95% confidence?
a. 200
b. 100
c. 58
d. 196
385

29. A probability statement about the sampling error is known as the……

A. confidence
B. Precision
C. interval
D. error ?

30. Which of the following is not an assumption for simple linear regression?
a. Multicollinearitys
b. Normally distributed variables
c. Linear relationship
d. constant variance

31. An alternative to the critical value approach is---

a. we can compute P-value.
b. Z value
c. t value
d. none of these
32. In a one-way ANOVA:
a. an interaction term is present
b. an interaction effect can be tested
c. there is no interaction term
d. interaction term has (c-1)(n-1) degrees of freedom.

33. Independent simple random samples are taken to test the difference between the means of two populations
whose standard deviations are not known. The sample sizes are 25 and 35. The correct distribution to use is the:
a. Poisson distribution
b. t distribution with 60 degrees of freedom
c. t distribution with 59 degrees of freedom
d. t distribution with 58 degrees of freedom.

34. An estimate of a population parameter that provides an interval of values believed to contain the value of the
parameter is known as the
a. confidence level
b. interval estimate
c. parameter value
d. population estimate

35. When each data value in one sample is matched with a corresponding data value in another sample, the samples
are known as:
a. corresponding samples
b. matched samples
c. independent samples
d. none of these alternatives is correct

36. Poisson distribution is applied for------

a. Continuous random variable
b. Discrete Random variable
c. irregular random variable
d. uncertain random variable.

37. 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.

38. A sample of 100 elements from a population is selected, and the standard deviation of the sample is compared ,
proper distribution to use is the
a. normal distribution
b. t distribution with 100 degrees of freedom
c. t distribution with 99 degrees of freedom
d. none of the above answers is correct

39. Sum of squares error (SSE) represents:

a. Random variations
b. continuous variation
c. both random and continuous
d. none of these
40. Which of these are types of simulation models?
a. continuous models
b. discrete models
c. both of these
d. none of these

41. Which of the following distributions is continuous?

a. binomial distribution
b. hyper-geometric distribution
c. F-distribution
d. Poisson distribution

42. A Pooled-variance t test to used to determine whether there is a -------

a. significant difference between the means
b. null hypothesis
c. hypothesis
d. none of these

43. The ability of an interval estimate to contain the value of the population parameter is described by the
a. Confidence level
b. degrees of freedom.
c. precise value of the population mean m
d. none of the above answers is correct

44. 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 the alternatives is correct

45. Which Chi square distribution looks the most like a normal distribution
a. A chi square distribution with 4 degrees of freedom
b. A chi square distribution with 5 degrees of freedom
c. A chi square distribution with 6 degrees of freedom
d. A chi square distribution with 16 degrees of freedom

46. A situation in which conclusions based upon aggregated crosstabulations are different from unaggregated
crosstabulation is known as
a. wrong crosstabulations
b. Simpson’s rule
c. Simpson’s Paradox
d. aggregated crosstabulation

47. A tabular summary of a set of data showing the fraction of the total number of items in several classes is a....
a. frequency distribution
b. relative frequency distribution
c. frequency
d. cumulative frequency distribution.

48. 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
49. An interval estimate is a range of values used to estimate
a. the shape of the population’s distribution
b. the sampling distribution
c. a sample statistic
d. a population parameter

50. If two independent large samples are taken from two populations, the sampling distribution of the difference
between the two samples means:
a. can be approximated by a Poisson distribution
b. will have a variance of one
c. can be approximated by a normal distribution
d. will have a mean of one

51. In interval estimation, the t distribution is applicable only when

a. the population has a mean of less than 30
b. the sample standard deviation is used to estimate the population standard
deviation
c. the variance of the population is known
d. the standard deviation of the population is known.

52. In a one-tailed hypothesis test (lower tail) the test statistic is determined to be -2. The p-value for the test is
a. 0.4772
b. 0.0228
c. 0.0056
d. 0.0228
53. _________ is to express the desired sample as the statistical sum of other easy-to-sample random variable.
a. Inverse Method
b. Convolution method
c. Acceptance-rejection method
d. None of these

54. The variance of a population is known to be 400. At 955 confidence the margin of error will be
a. 39.2 or less
b. 3.92 or less
c. 3.29 or less
d. 78.4 or less

55. In developing an interval estimate, if the population standard deviation is unknown

a. It is impossible to develop an interval estimate
b. The standard deviation is arrived at using historical data
c. The sample standard deviation can be used
d. None of the above answers is correct

56. If you assume that the difference scores are randomly and independently selected from a population that is
normally distributed which test will be used?
a. Pool variance test
b. Z-test
c. Paired t test for the mean difference
d. None of these

57. Whenever the population standard deviation is unknown and the population has a normal or near-normal
distribution, which distribution is used in developing an interval estimation?
a. Standard distribution
 b. Z distribution
c. Beta dist
d. T distribution

58. As the number of degree of freedom for a t distribution increases, the difference between the t distribution and
the standard normal distribution
a. Becomes larger
b. Becomes smaller
c. Stays the same
d. None of the above answer is correct

59. In order to estimate the average time spent on the computer terminals per student at a local university, data was
collected XX business students over a one week period. Assume the population standard deviation is 1.2 hours.
With a 0.95 probability the margin of error is approximately
a. 0.26
b. 1.96
c. 0.21
d. 1.64

60. ______ is just another term for variance that is used in the analysis of variance
a. Median square
b. Mean square
c. Mode square
d. None of these

61. 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

62. In hypothesis testing if the null hypothesis is rejected

a. No conclusions can be drawn from the test
b. The alternative hypothesis is true
c. The data must have been accumulated incorrectly
d. The sample size has been too small

63. The difference between the lower class limits of adjacent classes provided the:
a. Number of classes
b. Class limits
c. Class midpoint
d. Class width

64. Which parametric test can be used to find the difference in perception about Metro services in Delhi from male
and female passenger?
a. Binominal
b. Paired sample t-test
c. Independent sample t-test
d. None of the above

65. Find the Expectation for a F-Distribution variable with v1=7 and v2 = 8
a. 4/6
b. 4/7
 c. 4/3
d. 4/3

66. Children can learn a second language faster before the age of 7. This statement is
a. A non-scientific statement
b. A one-tailed hypothesis
c. A two-tailed hypothesis
d. A null hypothesis

67. The sum of frequencies for all classes will always equal
a. 1
b. The number of elements in a data set
c. The number of classes
d. A value between 0 and 1

68. In ANOVA with 4 groups and a total sample size of 44, the computed F statistic is 2.33. In this case, the p-value is
a. Greater then 0.05
b. Lest than 0.05
c. Exactly 0.05
d. It depends on what the SSE is

69. Parametric statistical test examples are:

a. T-test
b. Z-test
c. F-test
d. All of these

70. Consider a set of 18 samples from a standard normal distribution. We square each sample and sum all the
squared. The number of degree of freedom for Chi Square distribution will be
a. 17
b. 18
c. 19
d. 20

71. The confidence associated with an interval estimate is called the

a. Significance
b. Degree of association
c. Confidence level
d. Precision

72. Name of non-parametric procedure when only the homogeneity-of-variance assumption is violated
a. T-test
b. Z-test
c. Kruska-wallis rank test
d. None of these

73. If a linear regression model perfectly first i.e., the train error is zero, then _________
a. Test error is also always zero
b. Test error is non zero
c. Couldn’t comment on Test error
d. Test error is equal to Train error

74. In hypothesis testing if the null hypothesis has been rejected when the alternation hypothesis has been true
a. a Type I error has been committed
 b. a Type II error has been committed
c. either a Type I or Type II error has been committed
d. the correct decision has been made

75. Two-way contingency table displays the following

a. Frequency of occurrence of items of interest
b. Items not of interest for each group
c. Comparing the counts of categorical responses between two independent groups
d. All of these

76. ______ Test would test whether the population mean is less than a specified value
a. One tail hypothesis
b. Two tail hypothesis
c. Both of these
d. None of these

77. What is the meaning of the term “heteroscedasticity”?

a. The variance of the errors is not constant
b. The variance of the dependent variable is not constant
c. The errors are not linearly independent of one another
d. The errors have non-zero mean

78. As the sample size decreases, the margin of error

a. Decreases
b. Increases
c. Stays the same
d. Increases or decreases depending on the size of the mean

79. In a two-tail test for the population mean, if the null hypothesis is rejected when the alternative is true, then
a. A one-tail test should be used instead of a two-tail test
b. Type I error is committed
c. A type II error is committed
d. A correct decision is made

80. The following test can be used to determine the type of distribution of any data set
a. Single sample t-test
b. One sample K-S test
c. Binomial Test
d. ANOVA

81. If we change a 95% confidence interval estimate to a 99% confidence interval estimate, we can expect
a. The size of the confidence interval to increases
b. The size of the confidence interval to decreases
c. The size of the confidence interval to remain the same
d. The sample size to increases

82. In ________ problem-solving approach, you define the business objective as determining whether there is
difference in the mean
a. Arlingrons scenario
b. DCOVA
c. Pool, variance t test
d. None of these
83. Data that provides labels or names for categories of like items are known as
a. Qualitative data
b. Quantitative data
c. Label data
d. Category data

84. For which regression assumption does the Durbin-Watson statistic test hold true?
a. Linearity
b. Homoscedasticity
c. Multicollinearity
d. Independence of errors

85. Parametric tests, unlike the non-parametric tests, make certain assumption about
a. The population size
b. The underlying distribution
c. The sample size
d. None of these

86. If a hypothesis is rejected at the 5% level of significance, it

a. Will always be rejected at the 1% level
b. Will always be accepted at the 1% level
c. Will never be tested at the 1% level
d. May be rejected or not rejected at the 1% level

87. If a interval estimate is said to be a constructed at the 90% confidence level, the confidence coefficient would be
a. 0.1
b. 0.95
c. 0.9
d. 0.05

88. What symbol is used to represent chi-square?

a. X2
b. P
c. N
d. F

89. LIN are

a. Linearity
b. Independence of errors
c. Normality of error
d. All of these

90. Which of the following statistical tests allows casual interferences to be made?
a. Analysis of variance
b. Regression
c. T-test
d. None of these

91. Some important assumptions must be satisfied by a t-test, which assumptions are related to the samples
collected for testing:
a. Homogeneity of samples
b. Random Sampling
c. Large Sampling
d. All of these
92. Using an a=0.04 a confidence interval for a population proportion is determined to be 0.65 to 0.75. If the level of
significance is decreased the interval of the population
a. Becomes narrower
b. Becomes wider
c. Does not change
d. Not enough information is provided to answer this question

93. Chi-square test statistic is equal to the square difference between the ____ and____ frequencies?
a. Observed
b. Expected
c. Both of these
d. None of these

94. The cumulative relatively frequency distribution shows

a. The proportion of data items with values less than or equal to the upper limit of each class
b. The proportion of data items with values less than or equal to the lower limit of each class
c. The percentage of data items with values less than or equal to the upper limit of each calss
d. The percentage of data items with values less than or equal to the lower limit of each class

95. The mean of the f–distribution is equal to _________

a. V2 / (V2-2)3 for v2>2
b. V2 / (v2-2)2 for v2>2
c. V2 / (v2-2) for v2>2
d. V2 / (v2-2)-1 for v2>2

96. In syntax of linear model lm (formula,data,….), data refers to _____--

a. Matrix
b. Vector
c. Array
d. List

97. Consider a hypothesis H0 where !0=5 against H1 where !1>5. The test is
a. Right tailed
b. Left tailed
c. Center tailed
d. Cross tailed

98. The t distribution is application whenever

a. The sample is considered large (n>=30)
b. The population is normal, and the sample standard deviation is used to estimate the population
standard deviation
c. Both a and b
d. None of the above answers is correct

99. The absolute value of the difference between the point estimate and the population parameter it estimated is
the
a. Standard error
b. Sampling error
c. Precision
d. Error of confidence

100.Qualitative data can be graphically represented by using a (n)

a. Histogram
 b. Frequency polygon
c. Ogive
d. Bar graph

101.For a one-tailed hypothesis test (upper tail) the p-value is computed to be 0.034. If the test is being conducted at
95% confidence, the null hypothesis
a. Could be rejected or not rejected depending on the sample size
b. Could be rejected or not rejected depending on the value of the mean of the sample
c. Is not rejected
d. Is rejected

102.The sum of the relative frequencies for all classes will always equal
a. The sample size
b. The number of classes
c. One
d. Any value larger than one

103.The sum of the relative frequencies for all classes will always equal - the number of items in a data set

104.What is b0 in regression analysis?

a. The value of the outcome when all the predictors are 0
b. The relationship between a predictor and the outcome variable
c. The value of the outcome when the predictor variable is zero
d. The gradient of the regression line

105.Which test will you use if you have numerical variable/variance and related samples?
a. Paired t-test
b. Z-test
c. F-test
d. All of these

106.A two-tailed test is performed at 95% confidence. The p-value is determined to be 0.09. The null hypothesis
a. must be rejected
b. should not be rejected
c. could be rejected, depending on the sample size
d. has been designed incorrectly

107.What would be then consequences for the OLS estimator if heteroscedasticity is present in a regression model
but ignored?
a. It will be biased
b. It will be inconsistent
c. It will be inefficient
d. All of these

108.If 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

109.In simple linear regression to determine whether the slope is statistically significant which test do we use as an
alternative of t test
a. Z test
b. F-test
 c. Chi square
d. None of these

110.In order to use the normal distribution for interval estimation of m when $ is know, the population
a. Must be very large
b. Must have a normal distribution
c. Can have any distribution
d. None of the above answers are correct

111.What assumptions is being made when we use the t-distribution to perform a hypothesis test?
a. That the underlying distribution has more then one modal class non-symmetric distribution
b. That the underlying population has a constant variance
c. That the underlying population has an exponential distribution
d. That the underlying population follows an approximately Normal distribution

112.A Z value of 1.96 equated to ______ confidence level

a. 99%
b. 90%
c. 95.8%
d. 95%

113.Which of the following values of the chi-square distribution cannot occur?

a. 0.61
b. -2.45
c. 38.4
d. 100

114.A sample of 20 items from a population with an unknown s is selected in order to develop an interval estimate of
m. Which of the following is not necessary?
a. We must assume the population has a normal distribution
b. We use a t distribution
c. Sample standard deviation must be used to estimate s
d. The sample must have normal distribution

115.The relative frequency of a class is computed by

a. Dividing the midpoint of the class by the sample size
b. Dividing the frequency of the class by the midpoint
c. Dividing the sample size by the frequency of the class
d. Dividing the frequency of the class by the sample size

116.In testing for the differences between the means of 2 independent popluations where the variances in each
population are unknown but assumed equal degrees of freedom are
a. N – 1
b. N1 + n2 -1
c. N1 + n2 – 2
d. None of these

117.The difference between the point estimate, such as the sample mean, and the value of the population parameter
it estimates such as the population mean, it known as the
a. Confidence level
b. Sampling error
c. Parameter estimate
d. Interval estimate
118.What should be data assumption for one-way ANOVA z-test?
a. Randomness and independence
b. Homogeneity of variance
c. Normality
d. All of these (Need review(

119.In testing a hypothesis using the chi-square test, the theoretical frequencies are based on the
a. Null hypothesis
b. Alternative hypothesis
c. Normal distribution
d. None of these
e. t distribution

120.A statement made about a population for testing purpose is called _______
a. Statistic
b. Hypothesis
c. Level of significance
d. Test-Statistic

121.When each data value in one sample is matched with a corresponding data value in another sample, the sample
are know as
a. Corresponding samples
b. Matches samples
c. Independent samples
d. None of these alternatives is correct

122.The z value for a 97.8% confidence interval estimation is

a. 2.02
b. 1.96
c. 2
d. 2.29

123. A tabular method that can be used to summarize the data on two variables simultaneously is called
a. Simultaneous equations
b. Crosstabulation
c. A histogram
d. An ogive

124.If my null hypothesis is “Dutch people do not differ from English people in height”, what is my alternative
hypothesis
a. All of the statements below are plausible alternative hypothesis
b. Dutch people are taller that English people
c. English people are taller that Dutch people
d. Dutch people differ in height from English people.

125.------- is used to measure autocorrelation

a. Durbin-Watson statistic
b. Hypothesis
c. Chi Square
d. None of these

126.Significance of coefficients (b) is determined by

a. An R2 test
b. An F-test
 c. A correlation coefficient
d. A t-test

127.The ---- ----sum of squares measures the variability of the observed values around their goodness-of-fit line
a. Mean
b. Total
c. Treatment
d. Interaction

128.Which of the following is a robust test?

a. T-test
b. Z-test
c. F-test
d. All of these

129.A 95% confidence interval for a population mean is determined to be 100 to 120. If the confidence coefficient is
reduced to 0.90, the interval for m
a. becomes narrower
b. becomes wider
c. does not change
d. becomes 0.1

130.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?
a. Increase the level of confidence for the interval.
b. Discard the current data and try a different sample.
c. Increase the sample size.
d. Reduce the population variance.

131.Independence means______ between the variables under study

a. Relationship
b. No relationship
c. Equal relationship
d. None of these

132.From a population which is not normally distributed and whose standard deviation is not known, a sample of 20
items is selected to develop an interval estimate for m
a. the normal distribution can be used
b. the t distribution with 19 degrees of freedom must be used.
c. The t distribution with 20 degrees of freedom must be used.
d. The sample size must be increased.

133.In order to estimate the average time spent on the computer terminals per student at a local university, data
were collected for a sample of 81 business students over a one week period. Assume the population standard
deviation is 1.2 hours. If the sample mean is 9 hours, then the 95% confidence interval is
a. 7.04 to 110.96 hours
b. 7.36 to 10.64 hours
c. 7.80 to 10.20 hours
d. 8.74 to 9.26 hours

134.If a null hypothesis is rejected at the 0.025 level of significance

a. Must be rejected at any level
 b. Must be rejected at .01 level
c. Must not be rejected at any other level
d. May or may not be rejected at the 0.1 level

135.When conducting an ANOVA, FDATA will always fall within what range.
a. Between 0 and infinity
b. Between 0 and 1
c. Between negative infinity and infinity
d. Between 1 and infinity

136.Hypothesis test concerning a single parameter is:

a. Numerical
b. Catergorical
c. Rational
d. all of these
137. A graphical presentation of the relationship between two variables as
a. an ogive
b. a histogram
c. either an ogive or a histogram, depending on the type of data
d. a scatter diagram

138. A researcher is gathering data from four geographical areas designated: South = 1; North = 2; East = 3; West = 4.
The designated geographical regions represent
a. qualitative data
b. quantitative data
c. label data
d. either quantitative or qualitative data.

139.A histogram is said to be skewed to the left if it has a

a. longer tail to the right
b. shorter tail to the right
c. shorter tail to the left
d. longer tail to the left

140.Biased random sampling is made from among alternatives which have? ---- Unequal probability

141.Which of the following best decribes the form of the sampling distribution of the sample proportion?
It is approximately normal as long as np>=5 and n(1-p) >= 5.

142. If the p-value is less than the level of significance in a two-tail test,: the null hypothesis should be rejected

143.For a value of P=0.5, the value of P(1-P) is: maximized

144.From a population that is normally distributed, a sample of 25 elements is selected and the standard deviation of
the sample is computed. For the interval estimation of m, the proper distribution to use is the:
t distribution with 24 degrees of freedom

145.Which of the following is an assumption of one-way ANOVA comparing samples from three or more experimental
treatments?
a. All the response variables within the k populations follow a normal distributions.
b. The samples associated with each population are randomly selected and are
independent from all other samples.
c. The response variable within each of the k populations have equal variances.
d. All of the above
 146.Analysis of variance is a statistical method of comparing the ________ of several populations.
a. standard deviations
b. variances
c. means
d. proportions.

147. In constructing a frequency distribution, the approximate class width is computed as

a. (largest data value – smallest data value)/number of classes
b. (largest data value – smallest data value)/sample size
c. (smallest data value – largest data value)/sample size
d. largest data value/number of classes.

148. Find Variance for an F-Distribution with v1=5 and v2=9.

a) 1.587
b) 1.378
c) 1.578
d) 1.498
149. The level of significance: is (1 – confidence level)

150.The ------ sum of squares measures the variability of the observed values around their respective treatment means:
Error

151.The ---- sum of squares measures the variability of the sample treatment means around the overall mean. a
treatment

152. Use tables to find an interval containing P(6>1.5) exactly one option must be correct.

a. (0, 0.05) b. (0.05, 0.10) c. (0.10, 1) d.

(0.25,1)
153.In a TWO-tailed hypothesis test, the test statistic is determined to be -2.5. The P-value for this Test is:
a. -1.25 b. 0.4938 c. 0.0062 d.
0.0124
154.In a scatter diagram, a line that provides an approximation of the relationship between the variables is known as: -
Trendline

155.For the problem in Question #8, what is the value of standard error of the estimate?
a. 0.784 b. 0.885 c.12.650 d. 16.299

156. If we want to provide a 95% confidence interval for the mean of a population, the confidence coefficient is:
a. 0.485 b. 1.96 c. 0.95 d. 1.645
157. Sampling technique that we use for probability distribution are.

a. Inverse Method b. Convolution method c. Acceptance-rejection method

d. All of these
158. The p-value: is a probability

159. In a cumulative relative frequency distribution, the last class will have a cumulative relative frequency equal to -
One

160. In a cumulative percent frequency distribution, the last class will have a cumulative percent frequency equal to
100

161. In hypothesis testing, the tentative assumption about the population parameter is - the null hypothesis
162. In determining the sample size necessary to estimate a population proportion, which of the following information
is not needed? the mean of the population

163. In general, higher confidence levels provide wider confidence intervals

164. In constructing a frequency distribution, as the number of classes are decreased, the class width increases

165. If several frequency distributions are constructed from the same data set, the distribution with the widest class
width will have the: fewest classes

166. A frequency distribution is: a tabular summary of a set of data showing the frequency of items in each of several
nonoverlapping classes

167. In order to estimate the average time spent on the computer terminals per student at a local university, data
were collected for a sample of 81 business students over a one week period Assume the population standard
deviation is 1.2 hours. The standard error of the mean is 0.133

168. Fifteen percent of the students in a school of Business Administration are majoring in Economics, 20% in Finance,
35% in Management, and 30% in Accounting. The graphical device(s) which can be used to present these data is
(are) both a bar graph and a pie chart

169. When the level of confidence increases, the confidence interval - becomes wider

170. The most common graphical presentation of quantitative data is a histogram

171. In a random sample of 100 observations, P = 0.2. The 95.44% confidence interval for P is 120 to 0.280

172. Whenever using the t distribution in estimation, we must assume that - the population is approximately normal

173. As the sample size increases, the sampling error –Decreases

174. F distribution properties fall into which of the following?

a. The distribution F only depends on the two degrees of freedom V1 & V2
b. It is positively skewed
c. Used for comparing the variance of two population
d. All of these

175.In a sample of 500 voters, 400 indicated they favor the incumbent governor. The 95% confidence interval of voters
not favoring the incumbent is: D 0.165 to 0.235

176.If a hypothesis is NOT rejected at the 5% level of significance, it

a. Will also not be rejected at the 1% level
b. Will always be rejected at the 1% level
c. Will sometime be rejected at the 1% level
d. None of these alternatives is correct

177.As the sample size increases, the sampling error

a. Decreases
b. Increases
c. Stays the same
d. Increases or decreases depending on the size of the mean
178. The rejection probability of Null Hypothesis when it is true is called as
a. Level of Confidence
b. Level of Significance
c. Level of Margin
d. Level of Rejection

179. When a histogram has a longer tail to the right, it is said to be

a. Symmetrical
b. Skewed to the left
c. Skewed to the right
d. None of these alternatives is correct

180.Two tailed test of hypothesis for the difference between the means implies that null hypothesis can be rejected at
a. Right tail of the distribution curve
b. Left tail of the distribution Curve
c. Either of the two tails of the distribution curve
d. Both the tails of the distribution curve simultaneous

181.For a one-tailed test (upper tail), a sample size of 26 at 90% confidence, t =

a. 1.316
b. -1.316
c. -1.740
d. 1.740

182. For a two-tailed test at 98.4% confidence, Z =

a. 1.96
b. 1.14
c. 2.41
d. 0.8612
183. Name the technique used to made comparisons between all pairs of group
Marascuilo procedure

184.Ultimate goal of _____is to estimate some desirable measures of performance that describes the behavior of the
system
a. Simulation
b. Hypothesis
c. Testing
d. None of these

185.Independent simple random samples are taken to test the difference between the means of two populations
whose variances are not known, but are assumed to be equal. The sample sizes are n1 = 32 and n2 = 40. The
correct distribution to use is the
a. t distribution with 73 degrees of freedom
b. t distribution with 72 degrees of freedom
c. t distribution with 71 degrees of freedom
d. t distribution with 70 degrees of freedom

186. A researcher measured the same group of people’s physiological reactions while watching horror films and
compared them to when watching erotic films. The resulting data were skewed. What test should be used to
analyse the data?
a. Independent t-test
b. Wilcoxon signed-rank test
c. Dependent (related) t-test
 d. Mann–Whitney test

187.Using a goodness-of-fit test, we can assess whether a set of obtained frequencies differ from a set of _______
frequencies
a. Mean
b. Actual
c. Predicted
d. Expected

188.The null hypothesis uses_______ and the alternative hypothesis………_____

a. Unequal sign
b. Equal sign
c. Both of these
d. None of these

BOOK MULTIPLE-CHOICE QUESTIONS - STATISTICS

1. Which of the following is a discrete quantitative (numerical) variable?
a. The Dow Jones Industrial average b. The volume of water released from a
dam
c. The distance you drove yesterday d. The number of employees of an
insurance company

2. Which of the following is a continuous quantitative (numerical) variable?

a. The color of a student’s eyes
b. The number of employees of an insurance company
c. The amount of milk in a 2-liter carton
d. The number of gallons of milk sold at the local grocery store yesterday

3. To monitor campus security, the campus police office is taking a survey of the number of
students in a parking lot each 30 minutes of a24-hour period with the goal of determining when
patrols of the lot would serve the most students. If X is the number of students in thelot each
period of time, then X is an example of
a. a categorical variable b. a discrete variable
c. a continuous variable d. a statistic

4. Researchers are concerned that the weight of the average American school child is increasing
implying, among other things, thatchildren’s clothing should be manufactured and marketed in
larger sizes. If X is the weight of school children sampled in a nationwidestudy, then X is an
example of
a. a categorical variable b. a discrete variable
c. a continuous variable d. a table of random numbers

5. The classification of student class designation (freshman, sophomore, junior, senior) is an

example of
a. a categorical variable b. a discrete variable
c. a continuous variable d. a table of random numbers
6. The classification of student major (accounting, economics, management, marketing, other) is
an example of
a. a categorical variable b. a discrete variable
c. a continuous variable d. va table of random numbers

7. The chancellor of a major university was concerned about alcohol abuse on her campus and
wanted to find out the proportion of studentsat her university who visited campus bars on the
weekend before the final exam week. Her assistant took a random sample of 250students. The
answer on “whether you visited campus bars on the weekend before the final exam week” from
students in the sample is anexample of ___________
a. a categorical variable b. a discrete variable
c. a continuous variable d. a table of random numbers

8. Referring to Scenario 1-1, the possible responses to the question “How many Blu-ray players
made by other manufacturers have youused?” are values from a
a. discrete variable b. continuous variable
c. categorical variable d. table of random numbers

9. Referring to Scenario 1-1, the possible responses to the question “Are you happy, indifferent,
or unhappy with the performance per dollarspent on the Blu-ray player?” are values from a
a. discrete numerical variable b. continuous numerical variable
c. categorical variable d. table of random numbers

10. Referring to Scenario 1-1, the possible responses to the question “What is your annual
income rounded to the nearest thousands?” arevalues from a
a. discrete numerical variable b. continuous numerical variable
c. categorical variable d. table of random numbers

11. A type of vertical bar chart in which the categories are plotted in the descending rank order of
the magnitude of their frequencies is called a
a. contingency table b. Pareto chart
c. stem-and-leaf display d. pie chart

12. The width of each bar in a histogram corresponds to the

a. differences between the boundaries of the class b. number of observations in each
class
c. midpoint of each class d. percentage of observations in
each class

13. When constructing charts, the following is plotted at the class midpoints:
a. frequency histograms b. percentage polygons
c. cumulative percentage polygon (ogives) d. All of the above

14. Which of the following is appropriate for displaying data collected on the different brands of
cars students at a major university drive?
a. A Pareto chart b. A two-way classification table
c. A histogram d. A scatter plot
15. One of the developing countries is experiencing a baby boom, with the number of births
rising for the fifth year in a row,according to a BBC News report. Which of the following is best
for displaying this data?
a. A Pareto chart b. A two-way classification table
c. A histogram d. A time-series plot

16. When studying the simultaneous responses to two categorical questions, you should set up a
a. contingency table b. frequency distribution
table
c. cumulative percentage distribution tabled d. histogram

17. Data on 1,500 students’ height were collected at a larger university in the East Coast. Which
of the following is the bestchart for presenting the information?
a. A pie chart b. A Pareto chart
c. A side-by-side bar chart d. A histogram

18. Data on the number of part-time hours students at a public university worked in a week were
collected. Which of the following is the best chart for presenting the information?
a. A pie chart b. A Pareto chart
c. A percentage table d. A percentage polygon

19. Data on the number of credit hours of 20,000 students at a public university enrolled in a
Spring semester were collected.Which of the following is the best for presenting the
information?
a. A pie chart b. A Pareto chart
c. A stem-and-leaf display d. A contingency table

20. A survey of 150 executives were asked what they think is the most common mistake
candidates make during job interviews.Six different mistakes were given. Which of the following
is the best for presenting the information?
a. A bar chart b. A histogram
c. A stem-and-leaf display d. A contingency table

21. Which of the following statistics is not a measure of central tendency?

a. Arithmetic mean b. Median c. Mode d. Q3

22. Which measure of central tendency can be used for both numerical and categorical variables?
a. Arithmetic mean b. Median c. Mode d.
Geometric mean

23. Which of the arithmetic mean, median, mode, and geometric mean are resistant measures of
central tendency?
a. The arithmetic mean and median only b. The median and mode only
c. The mode and geometric mean only d. The arithmetic mean and mode
only

24. In a right-skewed distribution:

a. the median equals the arithmetic mean b. the median is less than the
arithmetic mean
c. the median is greater than the arithmetic mean d. none of the above

25. Which of the following statements about the median is not true?
a. It is more affected by extreme values than the arithmetic mean
b. It is a measure of central tendency
c. It is equal to Q2
d. It is equal to the mode in bell-shaped "normal" distributions

26. In a perfectly symmetrical bell-shaped "normal" distribution

a. the arithmetic mean equals the median b. the median equals the mode
c. the arithmetic mean equals the mode d. All the above

27. In a perfectly symmetrical distribution:

a. the range equals the interquartile range b. the interquartile range equals the
arithmetic mean
c. the median equals the arithmetic mean d. the variance equals the standard
deviation

28. When extreme values are present in a set of data, which of the following descriptive
summary measures are most appropriate:
a. CV and range b. arithmetic mean and standard
deviation
c. interquartile range and median d. variance and interquartile range

29. In general, which of the following descriptive summary measures cannot be easily
approximated from a boxplot?
a. The variance b. The range
c. The interquartile range d. The median

30. The smaller the spread of scores around the arithmetic mean
a. the smaller the interquartile range b. the smaller the standard
deviation
c. the smaller the coefficient of variation d. All the above

31. A construction company is bidding for two contracts A and B. The probability that the
company will get A is 3/5, the probability that the company will get contract B is 1/3, and
theprobability that the company will get both the contracts is 1/8. What is the probability that
thecompany will get contract A or B?
SOLUTION :
Given A and B be any two contracts and the probabilities,
P(A) = 3/5
P(B) = 1/3
P(A Ç B) = 1/8
To find, P(A È B)
By definition, P(A È B) = P(A) + P(B) − P(A Ç B) = 3/5 + 1/3 − 1/8
72 40 15
120
97
120
0 808
+−==.
The probability of the company to set the contract A or B is 0.808

32. A fair dice is thrown. What is the chance that either an even number or a number greater
than3 will turn up?
SOLUTION :
The sample space S can be defined as S ={1, 2, 3, 4, 5, 6}; n(S) = 6
Let A be the event of having an even number, then A ={2, 4, 6}; n(A) = 3
Let B be the event of having a number which is more than 3, then B ={4, 5, 6}; n(B) = 3
To find P(A È B)
A Ç B ={4, 6}; n(A Ç B) = 2
P(A È B) = P(A) + P(B) − P(A Ç B) = 3/6 + 3/6 − 2/6 = 4/6
= 2/3 = 0.667
The probability of either an even number or a number greater than 3 will turn up is 0.667.

33. In a bolt factory, machines X, Y, and Z manufacture, respectively, 20%, 35%, and 45% of
bolts.Of their total output, 8%, 6%, and 5%, respectively, are defective bolts. One bolt is drawn
atrandom from the product and is found defective. What is the probability that it is
manufactured in the machine Z?
SOLUTION :
Events
B1: The bolt was manufactured by machine X
B2: The bolt was manufactured by machine Y
B3: The bolt was manufactured by machine Z
Prior probability
This is an initial probability based on the prior level of information on the basis of the following:
• P(B1) = 0.2, since machine X produces 20% of the products produced
• P(B2) = 0.35, since machine Y produces 35% of the products produced
• P(B3) = 0.45, since machine Z produces 45% of the products produced
Additional information :
At the time of random selection, the selected bolt was found to be defective.
Event
A: The selected bolt is defective.
Posterior probability
This is the revised probability that has the benefit of additional information. It is a conditional
probability and can be expressed P(A/Bi).
The probability that the selected defective bolt manufactured by machine Z will be 0.378

34. If two events are collectively exhaustive, what is the probability that one or the other occurs?
a. 0 b. 0.50
c. 1.00 d. Cannot be determined from the information given

35. If two events are collectively exhaustive, what is the probability that both occur at the same
time?
a. 0 b. 0.50
c. 1.00 d. Cannot be determined from the information given

36. If two events are mutually exclusive, what is the probability that one or the other occurs?
a. 0 b. 0.50
c. 1.00 d. Cannot be determined from the information given

37. If two events are mutually exclusive, what is the probability that both occur at the same
time?
a. 0 b. 0.50
c. 1.00 d. Cannot be determined from the information given

38. If two events are mutually exclusive and collectively exhaustive, what is the probability that
both occur?
a. 0 b. 0.50
c. 1.00 d. Cannot be determined from the information given

39. If two events are mutually exclusive and collectively exhaustive, what is the probability that
one or the other occurs?
a. 0 b. 0.50
c. 1.00 d. Cannot be determined from the information given
40. If events A and B are mutually exclusive and collectively exhaustive, what is the probability
that event A occurs?
a. 0 . b. 0.50
c. 1.00 d. Cannot be determined from the information given

41. If two equally likely events A and B are mutually exclusive and collectively exhaustive, what is
the probability that eventA occurs?
a. 0 b. 0.50
c. 1.00 d. Cannot be determined from the information given

42. If two equally likely events A and B are mutually exclusive, what is the probability that event
A occurs?
a. 0 b. 0.50
c. 1.00 d. Cannot be determined from the information given

43. If two equally likely events A and B are collectively exhaustive, what is the probability that
event A occurs?
a. 0 b. 0.50
c. 1.00 d. Cannot be determined from the information given

44. If the likelihood of a tagged order form is 0.1, what is the probability that there are three
tagged order forms in the sample of four?
SOLUTION :

The probability of three tagged order forms in the sample of four is : 0.0036

45. Thirty-six of the staff of 80 teachers at a local intermediate school are certified in Cardio-
Pulmonary Resuscitation (CPR). In 180 days of school, about how many days can we expect that
the teacher on bus duty will likely be certified in CPR?
a. 5 days b. 45 days c. 65 days
d. 81 days

46. A campus program evenly enrolls undergraduate and graduate students. If a random sample
of 4 students is selected from the program to be interviewed about the introduction of a new
fast food outlet on the ground floor of the campus building, what is the probability that all 4
students selected are undergraduate students?
a. 0.0256 b. 0.0625 c. 0.16
d. 1.00

47. A probability distribution is an equation that:

a. associates a particular probability of occurrence with each outcome
b. measures outcomes and assigns values of X to the simple events
c. assigns a value to the variability of the set of events
d. assigns a value to the centre of the set of events

48. The connotation "expected value" or "expected gain" from playing roulette at a casino means
a. the amount you expect to "gain" on a single play
b. the amount you expect to "gain" in the long run over many plays
c. the amount you need to "break even" over many plays
d. the amount you should expect to gain if you are lucky

49. A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab
conducts. Suppose the mean cost of rats used in lab experiments turned out to be $13.00 per
week. Interpret this value:
a. Most of the weeks resulted in rat costs of $13.00
b. The median cost for the distribution of rat costs is $13.00
c. The expected or mean cost for all weekly rat purchases is $13.00
d. The rat cost that occurs more often than any other is $13.00

50. True or False: Another name for the mean of a probability distribution is its expected value -
True

51. Which of the following about the binomial distribution is not a true statement?
a. The probability of the event of interest must be constant from trial to trial
b. Each outcome is independent of the other
c. Each outcome may be classified as either "event of interest" or "not event of interest"
d. The variable of interest is continuous

52. In a binomial distribution:

a. the variable X is continuous
b. the probability of event of interest is stable from trial to trial
c. the number of trials n must be at least 30
d. the results of one trial are dependent on the results of the other trials

53. Whenever π = 0.5, the binomial distribution will

a. always be symmetric b. be symmetric only if n is large
c. be right-skewed d. be left-skewed

54. Whenever π = 0.1 and n is small, the binomial distribution will be:
a. symmetric b. right-skewed
c. left-skewed d. None of the above

56. In its standardized form, the normal distribution

a. has a mean of 0 and a standard deviation of 1.
b. has a mean of 1 and a variance of 0.
c. has an area equal to 0.5.
d. cannot be used to approximate discrete probability distributions.

57. Which of the following about the normal distribution is not true?
a. Theoretically, the mean, median, and mode are the same.
b. About 2/3 of the observations fall within ± 1 standard deviation from the mean.
c. It is a discrete probability distribution.
d. Its parameters are the mean, µ, and standard deviation, σ.

58. If a particular set of data is approximately normally distributed, we would find that
approximately
a. 2 of every 3 observations would fall between ± 1 standard deviation around the mean.
b. 4 of every 5 observations would fall between ± 1.28 standard deviations around the mean.
c. 19 of every 20 observations would fall between ± 2 standard deviations around the mean.
d. All the above.

59. The value of the cumulative standardized normal distribution at Z is 0.8770. The value of Z is:
a. 0.18 b. 0.81 c. 1.16
d. 1.47

60. For some value of Z, the value of the cumulative standardized normal distribution is 0.2090.
The value of Z is:
a. – 0.81 b. – 0.31 c. 0.31
d. 1.96

61. For some value of Z, the value of the cumulative standardized normal distribution is 0.8340.
The value of Z is:
a. 0.07 b. 0.37 c. 0.97
d. 1.06
62. The value of the cumulative standardized normal distribution at Z is 0.6255. The value of Z is:
a. 0.99 b. 0.40 c. 0.32
d. 0.16

63. The value of the cumulative standardized normal distribution at 1.5X is 0.9332. The value of X
is:
a. 0.10 b. 0.50 c. 1.00
d. 1.50

64. If we know that the length of time it takes a college student to find a parking spot in the
library parking lot follows a normaldistribution with a mean of 3.5 minutes and a standard
deviation of 1 minute, find the probability that a randomly selectedcollege student will find a
parking spot in the library parking lot in less than 3 minutes.
a. 0.3551 b. 0.3085 c. 0.2674
d. 0.1915

65. If we know that the length of time it takes a college student to find a parking spot in the
library parking lot follows a normaldistribution with a mean of 3.5 minutes and a standard
deviation of 1 minute, find the probability that a randomly selectedcollege student will take
between 2 and 4.5 minutes to find a parking spot in the library parking lot.
a. 0.0919 b. 0.2255 c. 0.4938
d. 0.7745

66. Advantages and Disadvantages of Sampling:

Advantages
a. Less time is needed to study the sample than the population.
b. Less cost towards the analysis in most numbers of situations. Sampling gives adequate
information.
c. The confidence level of data collected is more on sampling than in population.
Disadvantages
a. At times, there is a possibility of the error factor.
b. High degree of expertise is required while selecting the sample.

67. Sampling distributions describe the distribution of

a. parameters b. statistics
c. both parameters and statistics d. neither parameters nor statistics

68. The standard error of the mean

a. is never larger than the standard deviation of the population
b. decreases as the sample size increases
c. measures the variability of the mean from sample to sample
d. All of the above

69. The Central Limit Theorem is important in statistics because:

a. for a large n, it says the population is approximately normal
b. for any population, it says the sampling distribution of the sample mean is approximately
normal, regardless of the sample size
c. for a large n, it says the sampling distribution of the sample mean is approximately normal,
regardless of the shape of the population
d. for any sized sample, it says the sampling distribution of the sample mean is approximately
normal

70. If the expected value of a sample statistic is equal to the parameter it is estimating, then we
call that sample statistic
a. unbiased b. minimum variance c. biased
d. random

71. For air travelers, one of the biggest complaints is of the waiting time between when the
airplane taxis away from the terminal until the flight takes off. This waiting time is known to have
a right skewed distribution with a mean of 10 minutes and a standard deviation of 8 minutes.
Suppose 100 flights have been randomly sampled. Describe the sampling distribution of the
mean waiting time between when the airplane taxis away from the terminal until the flight takes
off for these 100 flights.
a. Distribution is right skewed with mean = 10 minutes and standard error = 0.8 minutes
b. Distribution is right skewed with mean = 10 minutes and standard error = 8 minutes
c. Distribution is approximately normal with mean = 10 minutes and standard error = 0.8
minutes
d. Distribution is approximately normal with mean = 10 minutes and standard error = 8
minutes

72. Which of the following statements about the sampling distribution of the sample mean is
incorrect?
 a. The sampling distribution of the sample mean is approximately normal whenever the
sample size is sufficiently large (n > 30).
b. The sampling distribution of the sample mean is generated by repeatedly taking samples
of size n and computing the sample means.
c. The mean of the sampling distribution of the sample mean is equal to.
d. The standard deviation of the sampling distribution of the sample mean is equal to.

73. Which of the following is true about the sampling distribution of the sample mean?
a. The mean of the sampling distribution is always.
b. The standard deviation of the sampling distribution is always.
c. The shape of the sampling distribution is always approximately normal.
d. All of the above are true.

74. True or False: The amount of time it takes to complete an examination has a left skewed
distribution with a mean of 65 minutes and a standard deviation of 8 minutes. If 64 students
were randomly sampled, the probability that the sample mean of the sampled students exceeds
71 minutes is approximately 0. -True

75. Suppose the ages of students in Statistics 101 follow a right skewed distribution with a mean
of 23 years and a standard deviation of 3 years. If we randomly sampled 100 students, which of
the following statements about the sampling distribution of the sample mean age is incorrect?
a. The mean of the sampling distribution is equal to 23 years.
b. The standard deviation of the sampling distribution is equal to 3 years.
c. The shape of the sampling distribution is approximately normal.
d. The standard error of the sampling distribution is equal to 0.3 years.

76. Why is the Central Limit Theorem so important to the study of sampling distributions?
a. It allows us to disregard the size of the sample selected when the population is not
normal.
b. It allows us to disregard the shape of the sampling distribution when the size of the
population is large.
c. It allows us to disregard the size of the population we are sampling from.
d. It allows us to disregard the shape of the population when n is large.

77. Which of the following would be an appropriate null hypothesis?

a. The mean of a population is equal to 55 b. The mean of a sample is equal to
55
c. The mean of a population is greater than 55 d. Only (a. and (c. are appropriate

78. Which of the following would be an appropriate null hypothesis?

a. The population proportion is less than 0.65 b. The sample proportion
is less than 0.65
c. The population proportion is not less than 0.65 d. The sample proportion is no less
than 0.65

79. Which of the following would be an appropriate alternative hypothesis?

a. The mean of a population is equal to 55 b. The mean of a sample is equal to
55
c. The mean of a population is greater than 55 d. The mean of a sample is greater
than 55

80. Which of the following would be an appropriate alternative hypothesis?

a. The population proportion is less than 0.65 b. The sample proportion is less
than 0.65
c. The population proportion is not less than 0.65 d. The sample proportion is not
less than 0.65

81. A Type II error is committed when:

a. you reject a null hypothesis that is true b. you don't reject a null
hypothesis that is true
c. you reject a null hypothesis that is false d. you don't reject a null
hypothesis that is false

82. A Type I error is committed when:

a. you reject a null hypothesis that is true b. you don't reject a null
hypothesis that is true
c. you reject a null hypothesis that is false d. you don't reject a null
hypothesis that is false

83. The power of a test is measured by its capability of:

a. rejecting a null hypothesis that is true b. not rejecting a null hypothesis
that is true
c. rejecting a null hypothesis that is false d. not rejecting a null hypothesis
that is false

84. If an economist wishes to determine whether there is evidence that mean family income in a
community exceeds $50,000:
a. either a one-tail or two-tail test could be used with equivalent results
b. a one-tail test should be utilized
c. a two-tail test should be utilized
d. None of the above

85. If an economist wishes to determine whether there is evidence that mean family income in a
community equals $50,000
a. either a one-tail or two-tail test could be used with equivalent results
b. a one-tail test should be utilized
c. a two-tail test should be utilized
d. None of the above

86. If the p-value is less than in a two-tail test:

a. the null hypothesis should not be rejected b. the null hypothesis
should be rejected
c. a one-tail test should be used d. no conclusion should be
reached
87. True or False: For all two-sample tests, the sample sizes must be equal in the two groups. -
False

88. True or False: When the sample sizes are equal, the pooled variance of the two groups is the
average of the 2 sample variances. - True

89. The t test for the difference between the means of 2 independent populations assumes that
the respective:
a. sample sizes are equal b. sample variances are equal
c. populations are approximately normal d. All of the above

90. If we are testing for the difference between the means of 2 independent populations
presuming equal variances with samples of n1 = 20 and n2 = 20, the number of degrees of
freedom is equal to
a. 39 b. 38 c. 19
d. 18

91. In testing for the differences between the means of 2 independent populations where the
variances in each population are unknown but assumed equal, the degrees of freedom are
a. n – 1 b. n1 + n2 – 1 c. n1 + n2 – 2
d. n – 2

92. Given the following information, calculate sp2, the pooled sample variance that should be
used in the pooled-variance t test.

Ans. c. n1 + n2 – 2

93. True or False: The sample size in each independent sample must be the same if we are to test
for differences between themeans of two independent populations. - False

94. True or False: When you test for differences between the means of two independent
populations, you can only use a twotailtest. . - False

95. True or False: A statistics professor wanted to test whether the grades on a statistics test
were the same for upper and lowerclassmen. The professor took a random sample of size 10
from each, conducted a test and found out that the variances wereequal. For this situation, the
professor should use a t test with related samples.. – False

96. True or False: A statistics professor wanted to test whether the grades on a statistics test
were the same for upper and lowerclassmen. The professor took a random sample of size 10
from each, conducted a test and found out that the variances wereequal. For this situation, the
professor should use a t test with independent samples.. – True

97. In a one-way ANOVA, if the computed F statistic is greater than the critical F value you may
a. reject H0 since there is evidence all the means differ
 b. reject H0 since there is evidence that not all the means are different
c. not reject H0 since there is no evidence of a difference in the means
d. not reject H0 because a mistake has been made

98. Which of the following components in an ANOVA table are not additive?
a. Sum of squares b. Degrees of freedom
c. Mean squares d. It is not possible to tell

99. When would you use the Tukey-Kramer procedure?

a. To test for normality b. To test for homogeneity of variance
c. To test independence of errors d. To test for differences in pairs of means

100. A completely randomized design

a. has only one factor with several treatment groups
b. can have more than one factor, each with several treatment groups
c. has one factor and one block
d. has one factor and one block and multiple values

101. The F test statistic in a one-way ANOVA is

a. MSW/MSA b. SSW/SSA c. MSA/MSW
d. SSA/SSW

102. The degrees of freedom for the F test in a one-way ANOVA are
a. (n – c) and (c – 1) b. (c – 1) and (n – c )
c. (c – n) and (n – 1) d. (n – 1) and (c – n)

103. In a one-way ANOVA, the null hypothesis is always:

a. there is no difference in the population means b. there is some treatment effect
c. all the population means are different d. some of the population means
are different

104. In a one-way ANOVA:

a. an interaction term is present b. an interaction effect can be tested
c. there is no interaction term d. the interaction term has (c – 1)(n – 1)
degrees of freedom

105. True or False: The analysis of variance (ANOVA) tests hypotheses about the population
variance- False

106. True or False: When the F test is used for ANOVA, the rejection region is always in the right
tail– True

107. If we use the c2 method of analysis to test for the differences among 4 proportions, the
degrees of freedom are equal to:
a. 3 b. 4 c. 5
d. 1
108. If we wish to determine whether there is evidence that the proportion of items of interest is
the same in group 1 as in group 2, the appropriate test to use is
a. the Z test b. the c2 test c. Both a) and b) d.
Neither of a) nor b)

109. In testing a hypothesis using the c2 test, the theoretical frequencies are based on the
a. null hypothesis b. alternative hypothesis
c. normal distribution d. None of the above

110. True or False: In testing the difference between two proportions using the normal
distribution, we may use either a one-tail Chi-square test or two-tail Z test. – True

111. True or False: The squared difference between the observed and theoretical frequencies
should be large if there is no significant difference between the proportions. – False

112. True or False: A test for the difference between two proportions can be performed using the
chi- square distribution.– True

113. True or False: A test for whether one proportion is higher than the other can be performed
using the chi-square distribution. – False

114. When testing for independence in a contingency table with 3 rows and 4 columns, there are
degrees of freedom.
a. 5 b. 6 c. 7 d. 12

115. To use the Wilcoxon Rank Sum Test as a test for location, you must assume that:
a. the obtained data are either ranks or numerical measurements that will be converted to
combined ranks
b. both samples are randomly and independently drawn from their respective populations
c. both underlying populations from which the samples were drawn are equivalent in shape
and dispersion
d. All the above

116. Which of the following is a “robust” test procedure against the violation of distribution
assumptions?
a. c2 -test of independence
b. McNemar test for the difference between two proportions
c. c2 -test for the differences among more than two proportions
d. Wilcoxon rank sum test for difference in medians

117. The Y-intercept (b0) represents the:

a. predicted value of Y when X = 0 b. change in estimated Y per unit change in
X
c. predicted value of Y d. variation around the sample regression
line

118. The Y-intercept (b0) represents the

a. estimated average Y when X = 0 b. change in estimated average Y per unit
change in X
c. predicted value of Y d. variation around the sample regression
line

119. The slope (b1) represents

a. predicted value of Y when X = 0 b. the estimated average change in Y per unit change
in X
c. the predicted value of Y d. variation around the line of regression

120. The least squares method minimizes which of the following?

a. SSR b. SSE c. SST d. All of the
above

121. True of False: The Chancellor of a university has commissioned a team to collect data on
students’ GPAs and the amount of time they spend bar hopping every week (measured in
minutes). He wants to know if imposing much tougher regulations on all campus bars to make it
more difficult for students to spend time in any campus bar will have a significant impact on
general students’ GPAs. His team should use a t test on the slope of the population regression. –
True

122. The residual represents the discrepancy between the observed dependent variable and its
Predicted or estimated mean value.

123. If the Durbin-Watson statistic has a value close to 0, which assumption is violated?
a. Normality of the errors b. Independence of errors
c. Homoscedasticity d. None of the above

124. If the Durbin-Watson statistic has a value close to 4, which assumption is violated?
a. Normality of the errors b. Independence of errors
c. Homoscedasticity d. None of the above

125. The standard error of the estimate is a measure of

a. total variation of the Y variable b. the variation around the sample
regression line
c. explained variation d. the variation of the X variable

126. The coefficient of determination (r2) tells you:

a. that the coefficient of correlation (r) is larger than 1
b. whether r has any significance
c. that you should not partition the total variation
d. the proportion of total variation that is explained

127. While assigning random numbers in Monte Carlo simulation, it is?

a. Necessary to assign the particular appropriate random numbers
b. Necessary to develop a cumulative probability distribution
c. To ensure all the points in square are equally probable
d. Not necessary to assign the exact range of random number
128. As simulation is not an analytical model, therefore the result of simulation must be viewed
as?
a. Unrealistic b. Exact c. Approximation d.
Simplified

129. The two types of simulation are?

a. Continuous model and discrete model b. Variable and non variable model
c. Average and service facility model d. Behaviour and waiting lines
model

130. Biased random sampling is made from among alternatives which have?
a. Equal probability b. Unequal probability
c. Probability which do not sum to 1 d. Probability which sum to 1

131. Randomness in simulation arises when the interval between successive events is?
a. Probabilistic b. Invariable c. Exponential
d. Convolution

132. Which of the following is not a sampling from probability distributions?

a. Inverse method b. Simplex method
c. Convolution method d. Rejection method

133. Simulation is defined as?

a. Requires programme writing b. Difficult to create the
appropriate events
c. A procedure for testing & experimenting on models d. Adequate level of user
participation

134. Stimulation is a statistical experiment and it should satisfy which of the below condition?
a. Observations are independent b. Requires predefined coding
forms
c. Sampled to be drawn d. Distributions to be observed

135. Which of the below is the most common methods of collecting observations in simulation?
a. Subinterval method b. Interval method
c. Independent method d. Non replication method

136. The important step required for simulation approach in solving a problem is to?
a. Test & validate and design the model b. Appropriate level of
detail
c. Decision making d. Simulating

137. Index numbers are used to:

a. Compare the phenomenon from one time period to another time period
b. Identify the ratio between two time periods
c. Find the average between two time periods
d. None of the above
138. Index number for period i =
a. i = (value in period i / value in base period)
b. i = (value in base period / value in period) × (value in period i / value in base period)
c. i = (value in period i / value in base period) × 100
d. i = (value in base period / value in period) × 100

139. An index number is called a simple index when it is computed from?

a. Single variable b. Multiple variables
c. Bi-variable d. Non variable

140. Unweighted aggregate price index numbers and weighted aggregate price index numbers
are the two caterogeries of?
a. Index number b. Price index number
c. Laypeyre’s index number d. Paasche’s index number

141. Index numbers are used for?

a. Forecasting b. Fixed price c. Different price d. Constant price

142. Index for base period is always taken as?

a. 200 b. 10 c. 100 d. 1

143. How many types are used for the calculation of weighted aggregate price index numbers?
a. 7 b. 4 c. 5 d. 6

144. What is the formula used in Laspeyres’s Price Index Number?

a. i = (Σp1q0 / Σp0q0) × 100 b. i = (Σp1q1 / Σp0q1) × 100
c. i = (Σp1q1 / Σp0q0) × 100 d. i = (Σp1q0 / Σp1q1) × 100

145. Which of the below index number is the arithmetic mean of Laspeyres’s price index and
Paasche’s price index?
a. Marshall–Edgeworth Price Index Number b. Dorbish–Bowley Price Index
Number
c. Bowley Price Index Number d. Walsch Price Index Number

146. The most commonly used index number is?

a. Simple index number b. Volume index number
c. Value index number d. Price index number

Stats Case Study

Question
A batch of 5000 electric lamps has a mean life of 1000 hours and a standard deviation of 75 hours. Assume a normal
distribution.
i) How many lamps will fail before 900 hours? - 4560
ii) How many lamps will fail between 950 and 1000 hours? - 1250
iii) What proportion of lamps will fail before 925 hours? - 0.16
iv) Given the same mean life, what would the standard deviation have to be to ensure that no more than 20% of lamps
fail before 916 hours? - 100
Solution 𝜇=1000,𝜎=75 𝑍=𝑋−𝜇𝜎~𝑁(0,1)
i) 𝑍=𝑋−𝜇𝜎=900−100075=−43≈−1.333 𝑃(𝑋<900)=𝑃(𝑍<−1.333)=0.0912 𝑛=0.0912∙5000=456(𝑙𝑎𝑚𝑝𝑠)
ii) 𝑍1=𝑋1−𝜇𝜎=950−100075=−23≈−0.667 𝑍2=𝑋2−𝜇𝜎=1000−100075=0
𝑃(950<𝑋<1000)=𝑃(𝑍<0)−𝑃(𝑍<−0.667)=0.5−0.2525=0.2475 𝑛=0.2475∙5000≈1238(𝑙𝑎𝑚𝑝𝑠)
iii) 𝑍=𝑋−𝜇𝜎=925−100075=−1 𝑃(𝑋<900)=𝑃(𝑍<−1)=0.1587
That is 15.87%, hence 𝑛=0. 1587∙5000≈794(𝑙𝑎𝑚𝑝𝑠)
iv) 𝜇=1000,𝜎=? 𝑍=𝑋−𝜇𝜎 𝑃(𝑋<916)=𝑃(𝑍<𝑍1)=0.2 𝑍1=−0.8416=916−1000𝜎=>𝜎=916−1000−0.8416≈100(ℎ𝑜𝑢𝑟𝑠)𝜎=100
ℎ𝑜𝑢𝑟𝑠

Section II

1. Sukhdev, the CEO of DictionAry, has been paid a lump sum amounting to three years' salary because
DictionAry has been bought in a hostile takeover by its main competitor. Sukhdev received
Golden Parachute

2. The benefits of a simple organizational structure include all of the following EXCEPT
specialists can develop deep expertise

3. Suppliers are powerful when

they are in a highly fragmented industry

SATISFACTORY SUBSTITUTES ARE AVAILABLE

4. Companies that are following ______ strategy try to improve the way in which they sell the same product or
service to the same customer.

5. All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms is that they
 can launch competitive actions more quickly
1. A ____ is the capacity for a set of resources to perform a task or activity in an integrative manner.

CAPABILITY

2. Which type of diversification is most likely to create value through financial economies?

Unrelated

3. A multidomestic corporate-level strategy is one in which

A FIRM CUSTOMIZED THE PRODUCT FOR EACH

4. The longer the focus of managerial incentive compensation, the greater the __ top-level managers.

Risks borne by

5. __ are individuals, acting independently or as part of an organization, who see an opportunity and then take
risks to develop an innovation to exploit it.
ENTEREPRNURS

6. Which one of the following is the most critical measure of customer satisfaction:
 7. When a firm seeks the benefits from local adaptation in different countries, it is best described as which type
of strategy?

Transnational
8. All of the following are characteristic of the global economy EXCEPT

The increased use of tariffs to protect industries

9. ___ is not found in fast-cycle markets.

Patents and copyrights

10. Hewlett-Packard licenses some of its intellectual property through strategic alliances. Which of the following
is correct about this relationship?

This is a nonequity strategic alliance with Hewlett-Packard leveraging its unique capabilities
11. Ambrose is a scientist working for a pharmaceutical company. His company was acquired by a rival
pharmaceutical company, and now it is involved in downsizing and downscoping. Ambrose is concerned
about his job security, since he is actively involved in amateur sports in his community and does not wish to
disrupt his current lifestyle. Ambrose's job will be most likely to be secure if

Ambrose is a key employee in the firm's primary business

12. Wal-Mart's effective strategy/structure configuration is

COST LEADERSHIP/FUNCTIONAL

13. An integrated set of actions designed to produce or deliver goods or services with features that are
acceptable to particular customer segment at the lowest cost, relative to that of competitors is called___
strategy.
 COST LEADERSHIP

14. Specialty Steel, Inc., needs a particular type of brick to line its kilns in order to safely achieve the high
temperatures needed for the unusually strong steel it produces. The clay to make this brick is very rare and
only two brick plants in the U.S. make this type of brick. Specialty Steel owns one of these brick plants and
buys all of its production. The other brick manufacturer has recently developed an inexpensive new
technology whereby ordinary clay can be used to make this fire brick. This significantly reduces the
production cost of this type of brick. In this context which of following statement is correct.

Specialty Steel has less flexibility now than if it were not vertically integrated
15. Shekhar is the son of a very prominent Fortune 500 CEO. Shekhar has had troubles. He failed out of multiple
colleges, universities, and correspondence schools. He finally received his undergraduate degree from a
university with only a post office box for an address. He then enrolled in the school's combined graduate
accounting and law school programs, graduating with honor with degrees in both areas. After graduation, he
twice failed both the CPA and bar exams, managing to set record low scores on the ethics portions of both.
Despite these academic setbacks,Shekhar's career now seems to be thriving. He has been appointed to a
number of government committees, is on the board of directors of two corporations and one prestigious not-
for-profit organization. In at least one instance, a donor credited Shekhar with the idea for making a large
contribution to the not-for-profit. Widespread speculation is that his career advancement is based largely on
social relationships through friends and family. We would classify Shekhar as __ on __ capital, and __ on __
capital.

high; social; low; human

16. Business-level strategies are concerned specifically with
creating differences between the firm's position and its competitors.

17. The benefits of being a first mover can be substantial, especially in a _______ market.
 Fast cycle markets
18. Which of the following is a TRUE statement about organizational structures for implementing business-level
strategies?

A differentiation strategy requires a functional structure with limited formalization, broad job descriptions,
and an emphasis on the product R&D and marketing functions.

19. A global corporate-level strategy assumes

more standardization of products across country markets

20. Company Wika Enterprises, a sports goods company has a sports club comprising of its customers. It holds
annual marathon for its customers followed by a networking party to better understand their needs. This is an
example of

21. Competitive advantage is not sustainable for a long time in a :

Fast-cycle

22. Of the value-neutral incentives to diversify, all of the following are internal firm incentives EXCEPT

stricter interpretation of antitrust laws.

23. Corporate governance revolves around the relationship between which two parties?
 Shareholders and managers
24. Choose the best option : Scanning, monitoring, forecasting, assessing are essential components of :

External environment analysis

25. Charles is a customer service representative for a home improvement store. He has creative ideas about how
to increase customer satisfaction. Charles's talents will be most likely to be used in a firm that

uses the autonomous strategic behavior form of internal corporate venturing.

26. Walmart acquired 77% stake in Flipkart for $1 6 billion in 2018. This is an example of :

Horizontal acquisition
27. A firm's mission

Is a statement of a firm’s business in which it intends to compete and the customers it intends to serve
28. Analyzing income distribution in India for analysis of business environment would include all of the following
EXCEPT

wage differentials between male and female employees working for a large manufacturer.
29. Customers _______ of business level strategies

Are the founadation

30. Which of the following is a not a component of general external environment:
 Ethical environment
31. Nokia and Intel have specific goals in the development of new products to support their strategies. Intel has
had a strategic interest in the smartphone market, and Nokia is trying to overcome Apple's lead in this market
with the iPhone. This is an example of

Induced strategic behaviour

32. A cross-functional work team is having difficulties in operating smoothly and friction has developed among
some of the members. Many of the strongest complaints are from the representatives of management who
complain that the research scientists are disorganized, haphazard, and undisciplined. Managers complain the
scientists do not adhere to any fixed rules or procedures. On the other hand, the research scientists complain
that the managerial representatives are excessively rule-oriented bureaucrats, and have no flexibility or
spontaneity. The main problem with this team seems to be centered around differences in

Formality of structure

33. Reliance has forayed from textiles business to fabrics to petro-chemicals. This is an example of:

Backward vertical integration

34. Ikea offers young customers selected home furnishings featuring good design, function, and acceptable
quality at low prices. Ikea is using which business level strategy

Focused cost leadership

35. Which of the following is NOT one of the primary reasons many pharmaceutical firms use acquisitions?
 extending patent rights on developed pharmaceuticals
36. In fast cycle markets companies rely on ______ as an engine of growth.

INNOVATION
37. A restaurant developed a new appetizer that is a hit with customers. Many customers go to the restaurant
just for the appetizer and it was at the center of a recent highly positive review by a food critic. Preparation
involves common ingredients and average culinary skills levels, but requires a very high oven temperature
which significantly increases utility costs. Several competing restaurants have since added their own version
of the appetizer to their menu. Which criteria for assessing capabilities/core competencies is met?

The restaurant has the capability to develop something that is valuable.

38. Firms in emerging economies may want to form strategic alliances with firms from developing countries
because

It gains access to the foreign firms sophisticated technology

39. A successful __ innovation will be less risky but less profitable than a successful __ innovation.

Incremental: radical

40. Omicron Artificial Intelligence has a core competency of being able to respond quickly to competitors' actions
and to opportunities in the marketplace. This is an example of competitive

speed
41. A manufacturer of jewellery imitates the style of a popular and expensive brand using manufactured stones
rather than real gemstones and lesser grade metals rather than silver and gold. The manufacturer packages
the jewellery in boxes of the same colour imprinted with an almost identical logo. About 85 percent of the
company's sales are through Internet sales. This example illustrates the competitive risk of __ that threatens
companies that use the differentiation strategy.

counterfeiting
42. Which of these refers to a special type of acquisition strategy wherein the target firm did not solicit the
acquiring firm's bid?
TAKE OVER

43. Total profits earned in an industry at all points along the value chain are called as __

Profit Pool

44. Internal corporate venturing does NOT involve

Strategic alliances
45. Which of the following factors most encourages stability in a firm's strategy?

internal CEO succession and a homogeneous top management team

46. In the context of BCG matrix products that have a small share of a fast growing market are __ , products that
have a large share of a slow growing market are ____ , products that have a small share of a slow growing
market are ____ and products that have a large share of a fast growing market are ___ .

question marks cash cows dogs stars

 47. To successfully implement a firm's strategy, the workforce must be viewed as a

RESOURCE TO BE MAXIMISED

48. In order to gain competitive intelligence which one of the following would not be an ethical practice:

Re-engineering competitive products

49. The BCG matrix separates businesses into four categories based upon ________ and the ________ _

How fast the market is growing, size of the business of that market
50. Golden Lotus, an exercise club targeting healthy individuals over 50, is located in a fast-growing city in the
Southwest. Which of the following factors that may have an effect on the success of Golden Lotus is the most

directly controllable by the company?

THE DEMOGRAPHICS OF THE ENVIRONMENT

51. The resource-based view of the firm

Emphasizes that sustainable competitive advantage

52. With 75% of its revenue coming from tobacco business, and rest from agri and hotels, ITC follows a :

Dominant business diversification strategy

53. Managerial employment risk is the
 managers risk of job loss

54. Walt Disney Company and Johnson & Johnson are examples of companies that have successfully used related
diversification to create value by ________

Sharing activities and transferring core competencies

55. Products developed through _ _ a re often offered at lower prices without as many features than products
developed through __.

imitation, innovation

56. CVS's recent merger with Caremark, a large pharmaceutical benefits manager broadens CVS's business from
retail into health care management. This strategy is _____ and allows CVS to gain

Related diversification/forward vertical integration

57. _______ strategy is a corporate level strategy that minimizes risk by diversifying investment among various
business and product lines

PORTFOLIO

58. Dragonfly Publishers of children's books has purchased White Rabbit, another publisher of children's books.
Both companies' books are sold to the same retail stores and schools. Their content is different, since
Dragonfly produces children's literature, whereas White Rabbit focuses on child-level scientific and nature
topics. Which of the following statements is probably TRUE about this acquisition?

This is a horizontal acquisition.

59. When rival firms compete aggressively by trying to attract competitors' customers, this might be an indication
of

Slow industry growth

60. All of the following statements are TRUE about the use of defense tactics by the target firm during a hostile
takeover EXCEPT

Defence tactics make the cost of a takeover lower

61. Case 1 : Walt Disney Company
Walt Disney Company is famed for its creativity, strong global brand, and uncanny ability to take service and
experience businesses to a higher level. In the 1 970s, the company realized nearly 90 percent of its revenues
from its cartoons and the Disneyland theme park in Anaheim, CA. By the beginning of the 21st Century,
Disney had not only opened up more parks and ramped up its output of animated films, it had also diversified
into many businesses well beyond its traditional core of high-quality cartoon animation and theme parks. For
instance, the Disney empire diversified vertically and horizontally into retail (The Disney Store, since licensed
to The Children's Place), cruise lines, theaters, motels, and the Disney Press. It also moved into new product
offerings such as sports franchises,TV networks (ABC and ESPN) and stations, Miramax, Broadway shows
(Beauty and the Beast), and vacation clubs. International grow1h included EuroDisney and Hong Kong Disney
and new releases of TV shows, videos, and movies worldwide. Indeed, while many of Disney's businesses had
some tie to Mickey Mouse, only about 28 per cent of total revenues now came directly from its parks.

What level and type of diversification best characterized Disney at the beginning of the 21st Century?

Related linked
62. Disney offered new products such as sports franchises, TV networks (ABC and ESPN) and stations in 21st
century. This decision was __

rational
63. Assume that Disney can benefit from both operational and corporate relatedness. Which of the following
corporate core competencies would provide Disney the greatest opportunity to create value across all or
most of its many businesses?
 Ability to manage Creativity and sincerity
64. What level and type of diversification best characterized Disney in the 1 970s?

dominant

65. Buyers are powerful when

Switching costs are low

66. The Licencing agreement

allows a foreign firm to purchase the right to manufacture and sell a firm's products within a host country.

67. Moon Flower cosmetics company executives are aware that their Asian customer base is interested in
advanced skin care treatments beyond Moon Flower's traditional herbal and organic compounds. Moon
Flower and a large American chemical company are in discussions to create a 50-50 partnership in a new firm
which would create skin care treatments based on innovative chemical formulations which would be
marketed both in Asia and in the U.S. Beyond being a cross-border alliance, this partnership can be called
a(an)

Joint Venture

68. The following firms are examples of unrelated diversification strategy, except

NESTLE

69. A company in a ___ industry is least likely to make heavy use of patents and copyrights
 FAST CYCLE

70. A term which is used to describe how rapidly and consistently new, information -intensive technologies
replace older ones is

Perceptual innovation
71. Which one of the following is not a component of competitor analysis

Launching our product in markets where

72. ___ is the purchase of value creating activity from an external supplier

outsourcing
73. Ethical practices to understand and anticipate strategies of rival firm include

attending trade fairs

74. Which of the following is not an attribute of a successful acquisition

investments in advertising and image building are made quickly.

75. Panera Bread develops and produces its own dough-based products, but it works with manufacturing
partners to create new soups. Panera Bread is therefore
Pursuing innovation through both internal and cooperative strategies
76. Big bazaar’s net profit increased from 2.2% in 2008-09 to 3% in 2009-10. Despite recession and a consequent
drop in sales by 7%. This is a clear indication that the firm was effectively using the ____ strategy

Cost Leadership

77. The fastest and easiest way for a firm to diversify its portfolio of businesses is through acquisition because

78. Organisational stakeholders are usually satisfied when

companies provide a dynamic, stimulating, and rewarding work environment

79. All of the following are tangible resources except

Firms reputation

80. Which among the following firm demonstrates focussed differentiation strategy

Rolex

81. All competitive advantages do not accrue to large sized firms. A major advantage of smaller firms is that they
can launch competitive actions more quickly

82. Disney’s ABC and Google’s Youtube formed an alliance that will aloow Disney to advertise movies and
products by showing short clips and selling ads. This type of alliance is classified as a(n) ____ alliance
 synergistic
83. Embedded knowledge is difficult to transfer because

84. Globalisation has led to

85. As the organizational environment becomes more complex, heterogenous and ambiguous firms need to

CREATE MORE HETEROGENEOUS TOP MANAGEMENT TEAMS.

86. Successfully creating innovations through internal means requires

SIGNIFICANT R & D

87. The presence of barriers to entry in a particular market will generally make acquisitions___ as an entry
strategy.

1. MORE LIKELY

88. A firm successfully implementing a differentiation strategy would expect

 to charge premium prices.
89. Higher efficiencies as a result of the experience a firm gains through higher cumulative production is known as

experience curve effect

90. The focussed differentiation strategy differs from the differentiation strategy in that

focused differentiators target a narrower customer market

91. Core competencies are ____

Serve as a source of competitive advantage for a firm over its rivals

92. A well-known portfolio strategy tool that manager’s use to decide how to invest corporate funds is:

BCG MATRIX

93. Choose the best option: globalisation of business markets has resulted in
opportunities as well as threats to a firm

94. The primary responsibility of development of strategic vision and mission of organisation is of
CEO
95. the global environment refers to all of the following except
an analysis of how new environment regulation----

96. The board of directors of Cyberscope inc, is designing a stock option plan for its CEO that will motivate the
CEO to increase the market value of the firm. Consequently, the board is

setting the option strike price substantially higher than the current stock price.
97. The board of directors of Indipop Inc is searchinig for a new CEO. The firm is in need of new direction after
suffering several years of declining performance and increasingly demoralised management and employees.
The board has decided it needs a CEO who can be a transformational leader. To this specific end, the board
needs to identify applicants who have

high emotional intelligence.

98. Competitive advantage based on the creation strategies based on opportunities from external environment is
called as

Industrial organisation model

99. The resources and capabilities that serve as a source of competitive advantage for a firm over its rival are
called

Core competencies
100.Between 2014 and 2017, Reliance industries invested around $15 billion on projects to manufacture inputs
such as paraxyelene, ethane, refinery off-gas cracker and petcoke gasification plant

101.One method of facilitating the transfer of competencies between firms is to

transfer key people into new management position

102.Till early 1990s bajaj, producer of scooters in India

has obtained __ through their _____

Unbeatable cost position

103.Which of the following is true?

Strategy has a more important influence on structure than structure has on strategy.
104.A manufacturer of specialty jams and jellies has decided to ally itself with an orchard and vineyard growing
rare strains of fruit. This is a(n) __________ strategy.
Vertical complementary

Vertical complementary
105.Which of the following is Not a value-creating activity associated with the differentiation strategy?
Control overhead and production cost
106.firms in a standard-cycle market may form alliances in order to
capture economies of scale.

107.A term which is used to describe how rapidly and consistently new, information

108.Choose the incorrect statement:

Outsourcing and building effective vendor

109.Selecting the organisational structure and controls that effectively implement the chosen strategy is a
challenge

firms must be flexible while retaining a degree of stability

110.The means of entry into international markets that offers the greatest control is
 Greenfield Ventures

111.In the franchising strategy the most important competitive advantage for the franchisee is the
Brand Name

112.A manager in your company is proposing the acquisition of Taylor Company, which has developed a new,
innovative product instead of a strategy of developing new products in-house. All of the following arguments
are correct EXCEPT
the acquisition of Taylor should be primarily for defensive rather than strategic
reasons. 

113.the two types of complementary strategic alliances are

Vertical and Horizontal

114.One of the primary reasons for failure of cross border strategic alliances is
the incompatibility of the partners
115.an increase in the value of rupees can____ indian firms exports to international market because of the price
-36
Harm

116.in 2007 hindalco company acquired the canadian company novelis (worl leader in the production of that)
joined entity the world largest producer in rolled alumminium. this is example of
related Acquisition

117.Companies that are following a _____ would most likely try to improve the way in which they sell the same

goods or services to the same customers
Stability

118.mobile phone market represent a

 Fast cycle

119.Ambrose is a scientist working for a pharmaceutical company. His company was acquired by a rival
pharmaceutical company, and now it is involved in downsizing and downscoping. Ambrose is concerned
about his job security, since he is actively involved in amateur sports in his community and does not wish to
disrupt his current lifestyle. Ambrose's job will MOST likely be secure if:
Ambrose is a key employee in the firm's primary business.

120.A cost leadership strategy targets the industry’s ____ customers.

most typical

most typical

121.The use of high level of debt in acquisition has contributed to

An increased risk of bankruptcy for acquiring firms

122._____is not found in fast cycle markets

Patent and copying

123.Which of the following is a TRUE statement about implementing corporate-level strategies and effective
organizational structures?

124.in the airline industry consolidation among fuel providers serving airport considered facilities would be
an increase in the bargaining power of suppliers
 125.Competitive advantage based on the creation of opportunities using internal resources is characterized by
which approach/view?
The resource-based view

126.Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at
relatively low prices. To implement the strategy, Zara uses sophisticated designers and effective means of
managing costs. These are all characteristics of which business level strategy?
integrated cost leadership/differentiation

127.a restaurant developed a new appetizer that is a hit with customers. Many customers go to the restaurant
just for the appetizer, and it was at the center of a recent highly positive review by a food critic. Preparation
involves common ingredients and average culinary skills but requires a very high oven temperature, which
significantly increases utility costs. Several competing restaurants have since added their own version of the
appetizer to their menu. Which of the following criterion for assessing capabilities/core competencies is met?
The restaurant has the capability to develop something that is valuable.

128.Which of the following is not a reason of a acquisition

LIQUIDATION

129.Firm that seeks to achieve both local responsiveness and global efficiency employees
TRANSNATIONAL
130.One means that is considered to improve the effectiveness of outside directors is:
REQUIRING OUTSIDE DIRECTORS TO OWN SIGNIFICANT EQUITY STAKES IN THE FIRM.
131.Through innovation microprocessor maker in text often ___ its own product before competition successfully
imitate them
RE- ENGINEERS

132.The decision of what entry mode to use is primarily based on all of the following factors EXCEPT
THE WORLD WIDE ECONOMIC SITUTAION
133.The resource based view of the firm
Emphasizes that sustainable------

134.A cost leadership strategy provides goods or services with features that are

c. acceptable.
135.Which of the following represents a competitive intelligence practice that is both legal and ethical?

An executive attends a trade show solely to obtain a competitor’s brochures, listen to sales
pitches, and ask questions about the competitor’s products.

136.Which pair of firms has the LEAST resource similarity?

Small, family-owned Indian restaurant; Taj Hotel

137.Sustained competitive advantage is most achievable in a ____ market.

 c. slow-cycle

138.An investor is considering in which of two start-up companies she should invest. The investor has faith in the
industrial organizational model of above-average returns, and she is using its concepts to make her decision.
Both start-up companies propose to manufacture health-focused foods with such characteristics as low salt,
low sugar, high fiber, and no artificial additives. RexRich Foods has a business strategy of producing a
differentiated product for which consumers will pay more. Green Pastures Foods is in the health-foods
industry because of its internal culture and commitment to healthful lifestyles. Which firm will the investor
feel is most consistent with the model of industrial organization?

RexRich Foods

139.A river barge company can offer cheaper, although slower, per pound transportation of products to
companies when compared with transportation by air, truck, or rail. The river barge company should first
target customers whose companies use
the cost-leadership strategy

140.All of the following are ways that a good or service can be differentiated EXCEPT
Construction of efficient-scale production facilities

141.Firms that have selected a related diversification corporate-level strategy seek to exploit
economies of scope between business units

142.A major department store chain has a strict policy of banning photographs or videos of its sales floor or back
room operations. It also does not allow academics to conduct studies of it for publication in research journals.
In fact, some of its own top managers refer to the management’s policies on secrecy as “verging on
paranoid.” These policies indicate that the top management of the firm believes the organization’s core
competencies are
Imitable

143.The purchasing of firms in the same industry is called:

horizontal acquisition

144.Subway is targeting a more narrow market segment among college students than the segment on which
McDonald’s focuses. Subway is focusing on students interested in healthy fast food. To select this business
strategy, Subway would have used information from all the following categories EXCEPT

end-use segments
145.The interests of an organization’s stakeholders often conflict, and the organization must prioritize its
stakeholders if it cannot satisfy them all. The ____ is the most critical criterion in prioritizing stakeholders.

Power of each stakeholder

146.Firms with few competitive resources are more likely to

delay responding to competitive actions

147.Operational relatedness is created by ___________of___________.

sharing; activities
 148.The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would
be severely weakened if
Disney’s cartoon characters became widely perceived as old-fashioned and unappealing.

149.The threat from substitutes is high when

the substitute product’s price is lower than the industry product’s price
150.Procter & Gamble (P&G) has a paper towel and baby diaper business, both of which use paper products. The
firm’s paper production plant produces inputs for both businesses. P&G most likely uses the
_______________diversification strategy to create ____________.

related constrained; operational relatedness.

151.Which of the following reasons for diversification is most likely to increase the firm’s value?

reducing costs through business restructuring

152.Competitor analysis focuses on

firms with which the company competes directly

153.The ability to effectively and efficiently access and use information is

an important source of competitive advantage in virtually all industries.

154.Which of the following is NOT a limitation directly relating to vertical integration

imitation of core technology by potential competitors

155.Blind taste-tests have shown that the taste of premium-priced vodkas and inexpensive vodkas are
indistinguishable even to regular drinkers of vodka. But the sales of premium vodkas are thriving. This is an
example of

the perception of uniqueness being important to firms following the differentiation

strategy.
156.Acquisitions to increase market power require that the firm have a ____ diversification strategy.
Related

157.Which of the following intelligence gathering techniques is most likely to be legal and ethical?
attending trade show presentations given by a competitor’s employees

158.A company using a narrow scope in its business strategy is

limiting the group of customer segments served

159.Greenleaf Property Management has been earning below-average returns for the last three years. Which of
the following statements are true?
Greenleaf will not be able to minimally satisfy all stakeholders

160.Wal-Mart initially used a focused cost leadership strategy to compete only in small communities by using
sophisticated logistics systems and efficient purchasing practices to gain a competitive advantage. The
response of local competitors was _______ because they __________.

slow; lacked the ability to marshal resources

161.Switching costs refer to the
one-time costs customers incur when buying from a different supplier.
162.Which of the following statements is most consistent under the I/O view? Performance of the firm is most
directly attributable to

the resources the firm possesses

163.First movers are

firms that take an initial competitive action

164.Above-average returns are

profits in excess of what an investor expects to earn from other investments with a similar
level of risk.
165.A firm has achieved ____ when it successfully formulates and implements a value-creating strategy.
strategic competitiveness

166.The environmental segments that comprise the general environment typically will NOT include

substitute products or services

167.Value-creating primary activities include

selecting appropriate distribution channels

168.Ultimately, the cause of all core capabilities becoming core rigidities is

strategic myopia and managerial inflexibility

169.The primary drivers of hypercompetition are

the emergence of a global economy and rapid technological change

170.Xanadu, an Indian manufacturer of pharmaceuticals, has acquired a firm in the same industry in Ireland. It
plans to transfer one of its key managers from its plant in Pune to Ireland. What is the major threat to
Xanadu’s plan to transfer competencies from itself to the Irish firm?

Irish managers will refuse to take direction from a foreign executive

171.Compared to tangible resources, intangible resources are

a superior source of core competencies

172.The _________________diversification strategy creates value in two ways. First, since the core competence
has already been developed in one business, the firm does not have to allocate resources to develop it.
Second, since the resource is intangible, competitors cannot easily imitate it.

related linked
173.A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has
been used for churches and public buildings throughout the world. The architect of a new headquarters for a
prestigious Fortune 500 firm has specified the use of this marble, and this marble only, for this project. Which
of the following statements is most likely to be true?

The cost of the marble will be expensive because of the bargaining power of the supplier
174.The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an
industry because

customers are loyal to brands that are differentiated in meaningful ways

 175.The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would
be severely weakened if

Disney’s cartoon characters became widely perceived as old-fashioned and unappealing.

176.The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and
core competencies are

uncertainty, complexity, and intraorganizational conflicts

177.Hyundai allows customers to return their cars if they lose their job within 12 months of purchase. Which of
the following aspects of managing customer relationships is Hyundai engaged in?

What: Determining Which Customer Needs to Satisfy

178.Which of the following reasons for diversification is most likely to increase the firm’s value?
reducing costs through business restructuring
179.Ultimately, the cause of all core capabilities becoming core rigidities is

strategic myopia and managerial inflexibility

180.Quality affects competitive rivalry because a competitor whose products suffer from poor quality likely will
_____________ until________________.

initiate fewer competitive actions; the quality problems are corrected

181.The existence of high exit barriers such as ownership of specialized assets (e.g., large aircraft) in the airline
industry indicates that

the competitive rivalry in the industry is severe

182.The goal of the organization’s ____ is to capture the hearts and minds of employees, challenge them, and
evoke their emotions and dreams

Vision
183.Competitive dynamics refers to the

total set of actions and responses taken by all 􀃕rms competing within a market
184.The strategic leader’s work is characterized by

ambiguous decision situations which make effective decisions di􀃞cult to determine

185.A major reason outsourcing is being used is that

few firms possess superior capability in all primary and support activities
186.Complete the following about the difference between tangible and intangible resources. Tangible resources
are ____ constrained because they are _____ to leverage.

more; harder
187.A global corporate-level strategy differs from a multidomestic corporate-level strategy in that in a global
strategy,
competitive strategy is dictated by the home office.

188.In some countries, the only legal way for foreign firms to invest in the country is through
partnership with a local firm
 189.In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth
manufacturers, design schools, craft apprenticeship programs, modeling agencies, and so forth, all exist to
supply the clothing industry. This is an example of the ____ in Porter’s model.
related and supporting industries

190.The main reason that IBM is involved in multiple alliances is to

leverage its core competencies and grow and improve its performance

191.Research shows that internationally diversified firms tend to be ____ than domestic-only firms.

more innovative
192.Burgess Corp. manufactures a line of heavy construction equipment. The company has announced an alliance
with FS Electronics whereby FS will supply Burgess with advanced GPS navigation and guidance systems.
These systems will be an option on all bulldozers, dump trucks, and road graders Burgess produces. What
type of alliance is this?

Nonequity strategic alliance

193.A global strategy

lacks responsiveness to local markets

194.Strategic controls allow corporate-level managers to

examine the fit between what the firm might do and what it can do.
195.Krishna Jewelers has been in existence since the 1870s. It specializes in high-end jewelry using both colored
precious stones and diamonds. Generations of wealthy families have patronized Krishna Jeweller. Krishna has
been owned and managed by the Krishna family since its founding, and has never had more than 20 designers
and jewelers in its shop. Krishna Jewelers should use the ____ structure.

Simple
196.When a firm acquires its supplier, it is engaging in a(an)

vertical acquisition
197.McDonald’s, Hilton International, and Subway all heavily rely on the ____ strategy.
franchising cooperative
198.The Amos Ball Printing Company was established in 1866. Currently, Amos Ball V is the CEO and chairman of
the board. The company has traditionally used a functional structure. Five years ago, the company branched
into online publishing and small-batch printing in addition to its regular large-batch operations. Both new
businesses are significantly different in technology and marketing from each other and from Ball’s traditional
business. Despite the hiring of experienced professionals in these new endeavors, performance continues to
be poor and is affecting Ball’s overall performance. Which of the following statements is TRUE?
Amos should consider adopting the multidivisional structure.

199.Agricultural Chemicals, Inc., was the target of a hostile takeover six months ago. The CEO and the top
executives successfully fended off the takeover and are concentrating on strategies to improve the
performance of the firm. Which of the following is most likely to be TRUE?

The CEO and top executives should not consider their jobs secure
 200.The CEO/chairman of PharmaPacifica was recently killed in an airplane crash. This tragedy has thrown
PharmaPacifica into turmoil as there is no one in the organization qualified to step into the former CEO’s
shoes. This is an example of

The CEO/chairman of PharmaPacifica was recently killed in an airplane crash. This tragedy has
thrown PharmaPacifica into turmoil as there is no one in the organization qualified to step into
the former CEO’s shoes. This is an example of
201.A major conflict of interest between top executives and owners, is that top executives wish to diversify the
firm in order to ____, while owners wish to diversify the firm to ____.

reduce their employment risk, increase the company’s value

202.A large domestic market can provide the country’s industries a chance at dominating the world market
because

they have been able to develop economies of scale at home.

203.The two basic approaches to successfully manage cooperative strategic alliances involve ____ and ____.

cost minimization, opportunity maximization

204.The four aspects of Porter’s model of international competitive advantage include all of the following EXCEPT

political and economic institutions

205.Structural stability affects the organization’s ability to:

predictably manage its daily work routines.

206.One disadvantage of the functional structure is that

communication is difficult among organizational functions

207.Complete the following: In small firms, managers often own a ____ percentage of the firm, which means
there is ____ separation between ownership and managerial control.

large; small
208.Some experts consider the ____ structure to be one of the 20th century’s most significant organizational
innovations because of its value to diversified firms.

Multidivisional
209.Executive compensation is a governance mechanism that seeks to align managers’ and owners’ interests
through all of the following EXCEPT

penalties for inadequate firm performance

210.The main risk in a strategic alliance is that

one partner will use the other partner’s knowledge and use it to enhance its own competitive
abilities.
211.Firms seeking to differentiate particularly need support from the ____ and ____ functions.

product R&amp;D, marketing

212.Baby Doe’s, a designer and manufacturer of children’s clothing, has decided to purchase a retail chain
specializing in children’s clothing. This purchase is a(an)

vertical acquisition
213.Which of the following is a FALSE statement about corporate governance?
Corporate governance is best achieved with a board of directors with strong ties to
management.
214.The primary goal of innovation is to

create wealth
215.Exploiting and developing core competencies is part of the key strategic leadership action “Effectively
Managing the Firm’s Resource Portfolio.” Which of the following is most important for developing and using
core competencies?

high-quality human capital

216.Which of the following is one of the barriers to effectiveness when using cross-functional teams to integrate
organizational functions?
organizational politics
217.Generally, a board member who is a source of information about a 􀃕rm’s day-to-day activities is classified as
a(an) ____ director.
Inside

218.Entering new markets through acquisitions of companies with new products is not risk-free, especially if
acquisition becomes a substitute for

innovation.
219.The more heterogeneous the top management team, the

more difficult it will be for the team to implement strategies

220.Which of the following statements is TRUE regarding effective organizational cultures?

A central task of strategic leaders is to revise the corporate culture on an annual basis after
analyzing the changes occurring in the competitive environment.
221.In addition to the four basic dimensions of Porter’s “diamond” model, ____ may also contribute to the
success or failure of firms.

government policy
222.Value creation through internal innovation

an entrepreneurial mind-set
223.Burgess Corp. manufactures a line of heavy construction equipment. The company has announced an alliance
with FS Electronics whereby FS will supply Burgess with advanced GPS navigation and guidance systems.
These systems will be an option on all bulldozers, dump trucks, and road graders Burgess produces. What
type of alliance is this?

Nonequity strategic alliance

224.The transnational strategy is becoming increasingly necessary to compete in international markets for all the
following reasons EXCEPT

it is easy to use.
225.Organizational structure

specifies the firm’s formal reporting relationships, procedures, controls, and authority and
decision-making processes
226.Compared with downsizing, ____ has (have) a more positive effect on 􀃕rm performance.
 Downscoping

227.A(an) ____ occurs when one firm buys a controlling, or 100% interest, in another firm.

Acquisition
228.When a firm is overly dependent on one or more products or markets, and the intensity of rivalry in that
market is intense, the firm may wish to ____ by making an acquisition.

broaden its competitive scope

229.Monitoring by shareholders is usually accomplished through

the board of directors

230.Smith Commercial Lighting, Inc., which sells lighting for factories and businesses, has entered into an alliance
with Revelation Lighting, Inc., a retailer of home decor lighting, in order to expand into the trend of using
industrial-type lighting in non-traditional style homes. Smith has invested 40% and Revelation has invested
60% into the new operation. This is an example of a(an)

horizontal complementary strategic alliance

231.Due diligence includes all of the following activities EXCEPT assessing

the level of private synergy between the two rms

 Chi-square is used to analyse: Frequencies

Q.1.The sum of the percent frequencies for all classes will always equal
a.One
b.The number of classes
c.The number of items in the study
D.100 (answer)

Q.2.What type of data do you need for a chi-square test

a.Categorical data (answer)
b.Continuous
c.Random
d.NOT

Q.3.If the null hypothesis is false then which of the following is accepted? a. Null Hypothesis
b. Positive Hypothesis
c. Negative Hypothesis
d. Alternative Hypothesis. (answer)

Q.4.A frequency distribution is a tabular summary of data showing the

a.fraction of items in several classes
b.percentage of items in several classes
c.relative percentage of items in several classes
d.number of items in several classes (answer)
Q.5.A two-tailed test is performed at 95 percent confidence. The p-value is determined to be
0.09. What is the correct statistical decision regarding the null hypothesis?
a. the null hypothesis must be rejected
b. the null hypothesis has been designed incorrectly
c. the null hypothesis could be rejected, depending on the sample size
d. the null hypothesis should not be rejected (answer)

Q.6.The t value with a 95% confidence and 24 degrees of freedom is a.1.711

B.2.064 (answer)
c.2.492
d.2.069
None of the above answers is correct

Q.7.Independent simple random samples are taken to test the difference between the means of two populations
whose standard deviations are not known, but are assumed to be equal. The sample sizes are n1 = 25 and n2 = 35. The
correct distribution to use is the a. t distribution with 61 degrees of freedom
b. t distribution with 60 degrees of freedom
c. t distribution with 59 degrees of freedom
d. t distribution with 58 degrees of freedom (answer)

Q.8. A Type I error occurs when we:

a. reject a false null hypothesis
b. reject a true null hypothesis (answer)
c. do not reject a false null hypothesis
d. do not reject a true null hypothesis
e. fail to make a decision regarding whether to reject a hypothesis or not

Q.9.Parametric statistical test examples are:

a. t-test (answer)
b. z-test
c. f-test
d.All of these

Q.10.When each data value in one sample is matched with a corresponding data value in another sample, the
samples are known as: a.Corresponding samples
b.matched samples (answer)
c.independent samples
d.NOT

Q.11.Which of the following would be an appropriate null hypothesis?

a.The sample proportion is less than 0.65.
b.The population proportion is less than 0.65.
c.The sample proportion is no less than 0.65.
d.The population proportion is not less than 0.65. (answer)
Q.12.Which of the following does not need to be known in order to compute the p-value?
a.Knowledge of whether the test is one-tailed or two-tailed
b.the value of the test statistic
c.the level of significance (answer)
d.NOT

Q.13._____ is just another term for variance that is used in the analysis of variance.
a.Medium Square
b.Mean Square (most probable answer)
c.Mode Square
d.NOT

Q.14.A Type II error occurs when we:

a. reject a false null hypothesis
b. reject a true null hypothesis
c. do not reject a false null hypothesis (answer)
d. do not reject a true null hypothesis
e. fail to make a decision regarding whether to reject a hypothesis or not

Q.15.For a one-tailed test (lower tail) at 89.8% confidence, Z =

a.-1.27 (answer)
b.-1.53
c.-1.96
d.-1.64

Q.16.Consider a set of 18 samples from a standard normal distribution. We square each sample and sum all the
squares. What will the number of degrees of freedom for a chi-square distribution be? a. 17
b. 18 (answer)
c. 19
d. 20

Q.17.Following a two–way, between–subjects ANOVA a simple effect would involve:

a. Conducting one contrast test
b. Conducting a one–way within–subjects ANOVA
c. Ignoring the existence of one IV and comparing the levels of the other IV
d. Taking only one level of one IV at a time and comparing the levels of the other IV (answer)

Q.18.We can evaluate the assumption of ______ in the errors by constructing a histogram. a.Normality
b.Independence
c.Plotting the residuals in the order or sequence in which the data were collected d.None of these

Q.19.The absolute value of the difference between the point estimate and the population parameter it
estimates is the a.standard error
b.sampling error (answer)
c.precision
d.error of confidence

Q. 20.On which of the following does the critical value for a chi-square statistic rely
a.The degrees of freedom (answer)
b.The sum of the frequencies
c.The row totals
d.The number of variables

Q.21.F-test use if certain condition met

a.focus is central tendency
b.approximate normality
c.variances of the two populations are equal
d.All of these (answer)

Q.22.In a simple linear regression to determine whether the slope is statistically significant which test we use as
an alternative of t test a.z test
b.f test
c.chi sqauare
d.None of these

Q.23.____ test would test whether the population mean is less than a specified value a.one tail hypothesis
b.two tail hypothesis
c.both of these
d.None of these

Q.24.Characteristics of a hypothesis test are

a.We can categorize it in one-tail hypothesis
b.the probability that you correctly reject a false null hypothesis
c.two tail hypothesis
d.all of these

Q.25.if we change a 95% confidence interval estimate to a 99% confidence interval estimate, we can expect
a.the size of the confidence interval to increase
b.the size of the confidence interval to decrease
c.the size of the confidence interval to remain the same
d.the sample size to increase (answer)

Q.26.For the problem in question 8, what is the value of the standard error of the regression slope estimate?
a.0.784
b.0.885
c.12.65
d.16.299

Q.28.The mean of the f – distribution is equal to ___________

a. v2 / (v2 – 2) for v2 > 2 (answer)
b. v2 / (v2 – 2)2 for v2 > 2
c. v2 / (v2 – 2)3 for v2 > 2
d. v2 / (v2 – 2)-1 for v2 > 2

Q.29.In a one way ANOVA

a.an interaction term is present b an interaction effect can be tested c there is no interaction term d, the
interaction term has (c-d) degrees of freedom. b.an interaction effect can be tested (answer)
c.there is no interaction term d the interaction term has (c-1)(n-1) degrees of freedom D.the interaction term
has (c-1)(n-1) degree of freedom.

Q.30.In syntax of linear model lm(formula,data,..), data refers to ______ a.Matrix

b.Vector (answer)
c.Array
d.List

Q.31.A researcher is gathering data from four geographical areas designated: South = 1; North = 2; East = 3; West = 4.
The designated geographical regions represent

a.categorical data (answer)

b.quantitative data
c.label data
d.either quantitative or categorical data

Q.32.A probability statement about the sampling error is known as the

A. confidence
B. precision(answer)
C. interval
D. error
E. none of the above

Q.33.If an interval estimate is said to be constructed at the 90% confidence level, the confidence
coefficient would be a.0.1
b.0.95
c.0.9
d.0.05

Q.34.Use tables to find an interval containing P(t6>1.5), Exactly one option must be correct:
a.(0,0.05)
b.(0.05,0.10)
c.(0.10,1)
d.(0.25,1)

Q.35.In testing a hypothesis using the c2 test, the theoretical frequencies are based on the: a.null hypothesis
b.alternative hypothesis
c.Normal distribution
d.None of these
Q.36.To make comparisons between all pairs of groups:
a.Marascuilo procedure (answer)
b.chi square
c.regression
d.None of these

Q.37.Find variance for an F-Distribution with v1=5 and v2=9

a. 1.587 (answer)
b. 1.378
c. 1.578
d. 1.498

Q.38.F-distribution properties fall into:

a.The distribution F only depends on the two degrees of freedom v1 and v2
b.it is positively skewed
c.used for comparing the variance of two populations
d.all of these

Q.39.We can evaluate the assumption of _____ of the errors by plotting the residuals in the order of sequence in
which the data were collected. a.Independence
b.Normality (answer)
c.Equal Variance
d.None of these

Q.40.Read the Z statistics from the normal distribution table and circle the correct answer. A one-tailed test
(upper tail) at 87.7% confidence Z= a.1.54
b.1.96
c.1.645
d.1.16 (answer)

Q.41.The z value for a 97.8% confidence interval estimation is a.2.02

b.1.96
c.2
d.2.29 (answer)

Q.42.Data that provide tables or names for categories of the items are known as:
a. categorical data (answer)
b. quantitative data
c. label data
d. category data

Q.43.What assumption is being made when we use the t-distribution to perform a hypothesis test:
a.That the underlying distribution has more than one modal class non-symmetrical distribution
b.That the underlying population has a constant variance.
c.That the underlying population has an exponential distribution
d.That the underlying population follows an approximately normal distribution (answer)

Q.44.Which of the following distributions is continuous:

a.Binomail distribution
b.Hyper-geometric distribution
c.F-distribution (answer)
d.Poisson Distribution

Q.45.A histogram is said to be skewed to the left it it has a:

a.longer tail to the right
b.shorter tail to the right
c.shorter tail to the left
d.longer tail to the left (answer)

Q.46.If we want to provide a 95% confidence interval for the mean of a population, the confidence
coefficient is: a.0.485
b.1.96
c.0.95 (answer)
d.1.645

Q.47.An estimate of a population parameter that provides an interval believed to contain the value of the
parameter is known as the a.confidence level
b.interval estimate (answer)
c.Parameter value
d.population estimate
Q.48.A graphical presentation of the relationship between two variables as a. an ogive
b. a histogram
c. either an ogive or a histogram, depending on the type of data
d. a scatter diagram (answer)

Q.49.What would be then consequences for the OLS estimator if heteroscedasticity is present in a regression model
but ignored? a. It will be ignored
b. It will be inconsistent
c. It will be inefficient (answer)
d. All of the above

Q.50.In ANOVA with 4 groups and a total sample size of 44, the computed f statistics is 2.33 in this case, the p-value is:
a. greater than 0.05 (answer)
b. exactly 0.05
c. cannot tell - it depends on what the SSE is
d. less than 0.05

Q.51.An internal estimate is a range of values used to estimate:

a.the shape of the population’s distribution
b.the sampling distribution
c.a sample statistic
d.a population parameter (answer)

Q.52.A pooled-variance t test to determine whether there is a:

a.significant difference between the mean
b.Null hypothesis
c.hypothesis
d.None of these

Q.53.Whenever the population standard deviation is unknown and the population has a normal or near-normal
distribution, which distribution is used in developing an interval estimation? a. standard distribution
b. z distribution
c. alpha distribution
d. t distribution (answer)

Q54.Children can learn a second language faster before the age of 7; is this statement: a. non-scientific
statement
b. one-tailed hypothesis (answer)
c. two-tailed hypothesis
d. null hypothesis
Q.55.Find the expectation for a f-distribution variable with v1=7 and v2=8 a. 4/7
b. 4/6
c. 4/3 (answer)
d. ⅘

Q.56._____ techniques help uncover relationships between variables:

a.Regression Analysis
b.ANOVA (answer)
c.Hypothesis
d.None of the above

Q.57.The degrees of freedom for the F test in a one-way ANOVA are

a.(n-c) and (c-1)
b.(c-1) and (n-c)
c.(c-n) and (n-1)
d.(n-1) and (c-n)

Q.58.What is the meaning of the term heteroscedasticity?

a.The variance of the errors is not constant (answer)
b.The variance of the dependent variable is not constant
c.The errors are not linearly independent of one another
d.The errors have non-zero mean

Q.59.If in a linear regression model the train error is zero, then ________
a.Test error is also always zero
b.Test error is non zero
c.Couldn’t comment on Test error (answer)
d.Test error is equal to Train error

Q.60.In a two-tail test for the population mean, if the null hypothesis is rejected when the alternative is true, then:
a.a one-tail test should be used instead of a two-tail test
b.type I error is committed
c.type II error is committed
d.correct decision is made (answer)

Q.61.The rejection probability of Null Hypothesis when it is true is called as:

a. Level of Confidence
b. Level of Significance (answer)
c. Level of Margin
d. Level of Rejection

Q.62.____ is to express the desired sample as the statistical sum of other easy-to-sample random variables:
A.inverse method B.convolution method
c.acceptance -rejection method
d.None of these

Q.63.In a two-tailed hypothesis test the test statistic is determined to be -2.5. The p-value for this test is:
A.-1.25
B.0.4938
C. 0.0062
D. 0.0124

Q.64.The (X)2 test is extended to compare more than two ____ populations.
a.independent (answer)
b.dependent
c.Rational
d.None of these

Q.65.Which of the following is not an assumption for single linear regression?

a.Normally distributed variables
b.Multicollinearity (answer)
c.Linear relationship
d.Constant variance
e.Normally distributed residuals

Q.66.Some important assumptions must be satisfied by a t-test, which assumptions are related to the samples
collected for testing: a.Homogeneity of samples
b.Random sampling
c.Large sample
d.All of these

This set of Probability and Statistics Multiple Choice Questions & Answers (MCQs) focuses on “Testing of Hypothesis”.
1. A statement made about a population for testing purpose is called? a) Statistic
b) Hypothesis
c) Level of Significance
d) Test-StatisticView Answer

Answer: b
Explanation: Hypothesis is a statement made about a population in general. It is then tested and correspondingly
accepted if True and rejected if False.
2. If the assumed hypothesis is tested for rejection considering it to be true is called? a) Null Hypothesis
b) Statistical Hypothesis
c) Simple Hypothesis
d) Composite HypothesisView Answer

Answer: a
Explanation: If the assumed hypothesis is tested for rejection considering it to be true is called Null Hypothesis. It gives
the value of population parameter.
3. A statement whose validity is tested on the basis of a sample is called?
a) Null Hypothesis
b) Statistical Hypothesis
c) Simple Hypothesis
d) Composite HypothesisView Answer

Answer: b
Explanation: In testing of Hypothesis a statement whose validity is tested on the basis of a sample is called as
Statistical Hypothesis. Its validity is tested with respect to a sample.
4. A hypothesis which defines the population distribution is called?
a) Null Hypothesis
b) Statistical Hypothesis
c) Simple Hypothesis
d) Composite HypothesisView Answer

Answer: c
Explanation: A hypothesis which defines the population distribution is called as Simple hypothesis. It specifies all
parameter values.
5. If the null hypothesis is false then which of the following is accepted?
a) Null Hypothesis
b) Positive Hypothesis
c) Negative Hypothesis
d) Alternative Hypothesis.View Answer

Answer: d
Explanation: If the null hypothesis is false then Alternative Hypothesis is accepted. It is also called as Research
Hypothesis.

6. The rejection probability of Null Hypothesis when it is true is called as?

a) Level of Confidence
b) Level of Significance
c) Level of Margin
d) Level of RejectionView Answer

Answer: b
Explanation: Level of Significance is defined as the probability of rejection of a True Null Hypothesis. Below this
probability a Null Hypothesis is rejected.
7. The point where the Null Hypothesis gets rejected is called as?
a) Significant Value
b) Rejection Value
c) Acceptance Value
d) Critical ValueView Answer

Answer: d
Explanation: The point where the Null Hypothesis gets rejected is called as Critical Value. It is also called as dividing
point for separation of the regions where hypothesis is accepted and rejected.
8. If the Critical region is evenly distributed then the test is referred as? a) Two tailed
b) One tailed
c) Three tailed
d) Zero tailedView Answer

Answer: a
Explanation: In two tailed test the Critical region is evenly distributed. One region contains the area where Null
Hypothesis is accepted and another contains the area where it is rejected.
9. The type of test is defined by which of the following?
a) Null Hypothesis
b) Simple Hypothesis
c) Alternative Hypothesis
d) Composite HypothesisView Answer

Answer: c
Explanation: Alternative Hypothesis defines whether the test is one tailed or two tailed. It is also called as Research
Hypothesis.
10. Which of the following is defined as the rule or formula to test a Null Hypothesis? a) Test statistic
b) Population statistic
c) Variance statistic
d) Null statistic
View Answer

Answer: a
Explanation: Test statistic provides a basis for testing a Null Hypothesis. A test statistic is a random variable that is
calculated from sample data and used in a hypothesis test.
11. Consider a hypothesis H0 where ϕ0 = 5 against H1 where ϕ1 > 5. The test is? a) Right tailed
b) Left tailed
c) Center tailed
d) Cross tailedView Answer
Answer: a
Explanation: In the given example since H1 lies to the right of the Ho that is the Null Hypothesis the test is referred as a
Right tailed test.
12. Consider a hypothesis where H0 where ϕ0 = 23 against H1 where ϕ1 < 23. The test is? a) Right tailed
b) Left tailed
c) Center tailed
d) Cross tailedView Answer

Answer: b
Explanation: In the Normal Distribution curve of both the hypothesis the H1 hypothesis lies to the left of the Null
hypothesis hence the test is a Left tailed.
13. Type 1 error occurs when?
a) We reject H0 if it is True
b) We reject H0 if it is False
c) We accept H0 if it is True
d) We accept H0 if it is False
View Answer
Answer: a
Explanation: In Testing of Hypothesis Type 1 error occurs when we reject H0 if it is True. On the contrary a Type 2 error
occurs when we accept H0 if it is False.
14. The probability of Type 1 error is referred as?
a) 1-α
b) β
c) α
d) 1-β
View Answer

Answer: c
Explanation: In Testing of Hypothesis Type 1 error occurs when we reject H0 if it is True. The probability of H0 is α then
the error probability will be 1- α.
15. Alternative Hypothesis is also called as?
a) Composite hypothesis
b) Research Hypothesis
c) Simple Hypothesis
d) Null HypothesisView Answer

Answer: b
Explanation: Alternative Hypothesis is also called as Research Hypothesis. If the Null Hypothesis is false then
Alternative Hypothesis is accepted.

MCQ on Tabular and graphical presentation

DESCRIPTIVE STATISTICS: TABULAR AND GRAPHICAL PRESENTATIONS

MULTIPLE CHOICE QUESTIONS

1. A frequency distribution is a tabular summary of data showing the
a. fraction of items in several classes
b. percentage of items in several classes
c. relative percentage of items in several classes
d. number of items in several classesAnswer: d

2. A frequency distribution is
a. a tabular summary of a set of data showing the relative frequency
b. a graphical form of representing data
c. a tabular summary of a set of data showing the frequency of items in each of several
nonoverlapping classes
d. a graphical device for presenting qualitative dataAnswer: c

3. A tabular summary of a set of data showing the fraction of the total number of items in several classes is a
a. frequency distribution
b. relative frequency distribution
c. frequency
d. cumulative frequency distributionAnswer: b

4. Qualitative data can be graphically represented by using a(n)

a. histogram
b. frequency polygon
c. ogive
d. bar graphAnswer: d

5. The relative frequency of a class is computed by

a. dividing the midpoint of the class by the sample size
b. dividing the frequency of the class by the midpoint
c. dividing the sample size by the frequency of the class
d. dividing the frequency of the class by the sample size Answer: d

6. The sum of frequencies for all classes will always equal a. 1

b. the number of elements in a data set
c. the number of classes
d. a value between 0 and 1

Answer: b

7. Fifteen percent of the students in a school of Business Administration are majoring in Economics, 20% in
Finance, 35% in Management, and 30% in Accounting. The graphical device(s) which can be used to present
these data is (are)
a. a line graph
b. only a bar graph
c. only a pie chart
d. both a bar graph and a pie chartAnswer: d
8. A researcher is gathering data from four geographical areas designated:
South = 1; North = 2; East = 3; West = 4. The designated geographical regions represent
a. qualitative data
b. quantitative data
c. label data
d. either quantitative or qualitative data Answer: a

9. A situation in which conclusions based upon aggregated crosstablulation are different from unaggregated
crosstabulation is known as
a. wrong crosstabulation
b. Simpson’s rule
c. Simpson’s paradox
d. aggregated crosstabulationAnswer: c

10. A cumulative relative frequency distribution shows

a. the proportion of data items with values less than or equal to the upper limit of each
class
b. the proportion of data items with values less than or equal to the lower limit of each
class
c. the percentage of data items with values less than or equal to the upper limit of each
class
d. the percentage of data items with values less than or equal to the lower limit of each
class
Answer: a

11. If several frequency distributions are constructed from the same data set, the distribution with the widest
class width will have the
a. fewest classes
b. most classes
c. same number of classes as the other distributions since all are constructed from the
same data
Answer: a

12. The sum of the relative frequencies for all classes will always equal
a. the sample size
b. the number of classes
c. one
d. any value larger than oneAnswer: c

13. The sum of the percent frequencies for all classes will always equal a. one
b. the number of classes
c. the number of items in the study
d. 100
Answer: d

14. The most common graphical presentation of quantitative data is a

 a. histogram
b. bar graph
c. relative frequency
d. pie chartAnswer: a

15. In constructing a frequency distribution, the approximate class width is computed as

a. (largest data value – smallest data value)/number of classes
b. (largest data value – smallest data value)/sample size
c. (smallest data value – largest data value)/sample size
d. largest data value/number of classesAnswer: a

16. In constructing a frequency distribution, as the number of classes are decreased, the class width
a. decreases
b. remains unchanged
c. increases
d. can increase or decrease depending on the data values Answer: c

17. The difference between the lower class limits of adjacent classes provides the
a. number of classes
b. class limits
c. class midpoint
d. class widthAnswer: d

18. In a cumulative frequency distribution, the last class will always have a cumulative frequency equal to
a. one
b. 100%
c. the total number of elements in the data set Answer: c

19. In a cumulative relative frequency distribution, the last class will have a cumulative relative frequency equal
to
a. one
b. zero
c. the total number of elements in the data set
Answer: a

20. In a cumulative percent frequency distribution, the last class will have a cumulative percent frequency equal
to
a. one
b. 100
c. the total number of elements in the data set Answer: b

21. Data that provide labels or names for categories of like items are known as a. qualitative data
b. quantitative data
c. label data
d. category dataAnswer: a
22. A tabular method that can be used to summarize the data on two variables simultaneously is called
a. simultaneous equations
b. crosstabulation
c. a histogram
d. an ogiveAnswer: b

23. A graphical presentation of the relationship between two variables is a. an ogive

b. a histogram
c. either an ogive or a histogram, depending on the type of data
d. a scatter diagramAnswer: d

24. A histogram is said to be skewed to the left if it has a

a. longer tail to the right
b. shorter tail to the right
c. shorter tail to the left
d. longer tail to the leftAnswer: d

25. When a histogram has a longer tail to the right, it is said to be

a. symmetrical
b. skewed to the left
c. skewed to the right
d. none of these alternatives is correct
Answer: c
26. In a scatter diagram, a line that provides an approximation of the relationship between the variables is known
as
a. approximation line
b. trend line
c. line of zero intercept
d. line of zero slopeAnswer: b

1) In order to determine an interval for the mean of a population with an unknown standard deviation a sample
of 61 items is selected. The mean of the sample is determined to be 23. The number of degrees of freedom for
reading the t value is:
b. 60 (answer)

2) When constructing a confidence interval for the population mean and the standard deviation of the sample is
used, the degrees of freedom for the t distribution equals:
b. n-1 (answer)

3) A two-tailed test is performed at 95 percent confidence. The p-value is determined to be 0.09. What is the correct
statistical decision regarding the null hypothesis?
a. the null hypothesis should not be rejected (answer)

4) The manager of a grocery store has taken a random sample of 100 customers. The average length of time it took
these 100 customers to check out was 5.1 minutes with a standard deviation of 0.5 minutes. We want to test to
determine whether or not the mean waiting time of all customers is significantly more than 5 minutes. The value of
the appropriate test statistic for this hypothesis test is approximately equal to:
b. 2 (answer)

5) In a two-variable simple linear regression model with dependent variable Y and independent variable X, if the
r-square statistics is close to one but none of the independent variables are significantly different from zero,
which regression assumption is violated?
a. Multicollinearity (answer)

6) A table that is used to summarize data on two variables is called

a: crosstabulation (answer)

7) Suppose 5000 workers at a mid-size company are sampled and are asked how many hours they work on average
each week. If the resulting histogram indicates the number of hours worked on average each week by workers at a
mid-size company using three classes of 0 – 9 hours, 10 – 19 hours, 20 – 29 hours, 30 – 39 hours, and 40 – 49 hours,
then the class width of each class is:
b. 10 hours (answer)

8) The Poisson probability distribution is

a: a. discrete probability distribution (answer)

9) A food processor packages strawberry preserves in small jars. The weights of the jars are approximately
normally distributed with a mean of 9.5 ounces and a standard deviation of 1.6 ounces. A sample of 64 jars is
selected. Using the standard normal distribution, what is the proportion of all jars packaged by this process that
have weights that fall below 9.8 ounces?
a. P(Z < 1.5) = 0.9332 (answer)

10) Quantitative data must be:

a. only numeric (answer)

1. The absolute value of the difference between the point estimate and the population parameter it estimates is
A. sampling error(answer)

2. A probability statement about the sampling error is known as the

A. precision(answer)

3. If we want to provide a 95% confidence interval for the mean of a population, the confidence coefficient is
A. 0.95(answer)

4. The variance of a population is known to be 400. At 95% confidence, the margin of error will be
A. 3.92 or less(answer)

5. In order to estimate the average time spent on the computer terminals per student at a local university, data were
collected for a sample of 81 business students over a one week period. Assume the population standard deviation is
1.2 hours. With a 0.95 probability, the margin of error is approximately
A. 0.2613(answer)
6. In order to estimate the average time spent on the computer terminals per student at a local university, data were
collected for a sample of 81 business students over a one week period.
Assume the population standard deviation is 1.2 hours. If the sample mean is 9 hours, then the
95% confidence interval is
A. 8.74 to 9.26 hours(answer)

7. The t value with a 95% confidence and 24 degrees of freedom is

A. 2.064(answer)

8. A 95% confidence interval for a population mean is determined to be 100 to 120. If the confidence coefficient is
reduced to 0.90, the interval for m
A. becomes narrower(answer)

9. A sample of 16 elements from a normally distributed population is selected. The sample mean is 10 with a standard
deviation of 4. The 95% confidence interval for m is
A. 7.869 to 12.131(answer)

10. A random sample of 144 observations has a mean of 20, a median of 21, and a mode of 22. The population
standard deviation is known to equal 4.8. The 95.44% confidence interval for the population mean is
A. 19.200 to 20.800(answer)

1. If we are interested in testing whether the proportion of items in population 1 is larger than the proportion of items
in population 2, the
a. alternative hypothesis should state P1 - P2 > 0 (answer)

2. To compute an interval estimate for the difference between the means of two populations, the t distribution
a. is not restricted to small sample situations (answer)

3. When developing an interval estimate for the difference between two sample means, with sample sizes of n1
and n2,
a. n1 and n2 can be of different sizes, (answer)

4. To construct an interval estimate for the difference between the means of two populations when the standard
deviations of the two populations are unknown and it can be assumed the two populations have equal variances,
we must use a t distribution with (let n1 be the size of sample 1 and n2 the size of sample 2)
(n1 + n2 - 2) degrees of freedom (answer)

5. When each data value in one sample is matched with a corresponding data value in another sample, the samples
are known as a. corresponding samples
b. matched samples (answer)
6. Independent simple random samples are taken to test the difference between the means of two populations
whose variances are not known, but are assumed to be equal. The sample sizes are n1 = 32 and n2 = 40. The correct
distribution to use is the
t distribution with 70 degrees of freedom (answer)

7. Independent simple random samples are taken to test the difference between the means of two populations
whose standard deviations are not known, but are assumed to be equal. The sample sizes are n1 = 25 and n2 = 35.
The correct distribution to use is the
d. t distribution with 58 degrees of freedom (answer)

8. If two independent large samples are taken from two populations, the sampling distribution of the difference
between the two sample means
a. can be approximated by a normal distribution (answer)

9. The standard error of xbar1- xbar2 is the

a. standard deviation of the sampling distribution of xbar1-xbar2 (answer)

10. The sampling distribution of pbar1-pbar2 is approximated by a

a. normal distribution (answer)

1. A Type I error occurs when we:

a. reject a true null hypothesis

2. In a criminal trial, a Type I error is made when:

a. an innocent person is convicted (sent to jail)

3. A Type II error occurs when we:

a. do not reject a false null hypothesis

4. If a hypothesis is rejected at the 0.025 level of significance, it:

b. may or may not be rejected at the 0.01 level

5. In a criminal trial, a Type II error is made when:

a. a guilty defendant is acquitted (set free)

6. In a two-tail test for the population mean, if the null hypothesis is rejected when the alternative is true, then:
a correct decision is made

7. In a one-tail test for the population mean, if the null hypothesis is not rejected when the alternative
hypothesis is true, then:
b. a Type II error is committed

8. In a one-tail test for the population mean, if the null hypothesis is rejected when the alternative
hypothesis is not true, then:
a. a Type I error is committed
 9. If we reject the null hypothesis, we conclude that:
a. there is enough statistical evidence to infer that the alternative hypothesis is true

10. If we do not reject the null hypothesis, we conclude that:

a. there is not enough statistical evidence to infer that the alternative hypothesis is true

11. The p-value of a test is the:

a. smallest significance level at which the null hypothesis can be rejected

12. In order to determine the p-value of a hypothesis test, which of the following is not needed?
a. the level of significance

13. Which of the following p-values will lead us to reject the null hypothesis if the significance level of the test if
5%?
a. 0.025

14. Suppose that we reject a null hypothesis at the 5% level of significance. For which of the following levels of
significance do we also reject the null hypothesis?
a. 6%

15. Which of the following statements about hypothesis testing is true?

a. If the p-value is greater than the significance level, we fail to reject Ho

16. The purpose of hypothesis testing is to:

a. determine whether a statistical result is significant

17. In hypothesis testing, what level of significance would be most appropriate to choose if you knew that making a
Type I error would be more costly than making a Type II error?
a. 0.005

18. The p-value obtained from a classical hypothesis test is:

a. the probability of observing the data or more extreme values if the null hypothesis is true

19. To test a hypothesis involving proportions, both np and n(1-p) should a.Be greater than 5

20. What assumption is being made when we use the t-distribution to perform a hypothesis test?
a. That the underlying population follows an approximately Normal distribution

1. A_______ is a numerical quantity computed from the data of a sample and is used in reaching a decision on whether
or not to reject the null hypothesis.significance level parametertest statistic critical value

Answer:- test statistic

2. The test statistic measures how close the computed sample statistic has come to the hypothesized population
parameter.- True
3. If the p-value is less than alphaα in a two-tail test, _______.

Answer:- the null hypothesis should be rejected

4. The larger the p-value, the more likely you are to reject the null hypothesis.-False

5. The smaller the p-value, the stronger is the evidence against the null hypothesis.-True

6. Which of the following would be an appropriate null hypothesis?

Answer:- The population proportion is not less than 0.65.

7. Which of the following would be an appropriate alternative hypothesis?

Answer:- The mean of a population is greater than 55.

8. Which of the following would be an appropriate alternative hypothesis?

Answer:- The population proportion is less than 0.65.

9. An appliance manufacturer claims to have developed a compact microwave oven that consumes a 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. A consumer group has decided to try to discover if the claim appears
true. They take a sample of 20 microwave ovens and find that they consume a mean of 257.3 W.What are the
appropriate hypotheses to determine if themanufacturer’s claim appears reasonable?

Answer:- H00:μ≤250 and H11: μ>250

10. A drug company is considering marketing a new local anesthetic. The effective time of the anesthetic the drug
company is currently producing has a normal distribution with a mean of 7.4 minutes with a standard deviation of 1.2
minutes. The chemistry of the new anesthetic is such that the effective time should be normally distributed with the
same standard deviation, but the mean effective time may be lower. If it is lower, the drug company will market the
new anesthetic; otherwise, they will continue to produce the older one. A sample of size 36 results in a sample mean
of 7.1. A hypothesis test will be done to help make the decision.Which of the following are the appropriate
hypotheses?

Answer:- H00: μ≥7.4 and H11: μ<7.4

11. A sample is used to obtain a 95% confidence interval for the mean of a population. The confidence interval
goes from 15 to 19. If the same sample had been used to test the null hypothesis that the mean of the population is
equal to 20 versus the alternative hypothesis that the mean of the population differs from 20, the null hypothesis
could be rejected at a level of significance of 0.05.-True

12. A sample is used to obtain a 95% confidence interval for the mean of a population. The confidence interval
goes from 15 to 19. If the same sample had been used to test the null hypothesis that the mean of the population is
 equal to 18 versus the alternative hypothesis that the mean of the population differs from 18, the null hypothesis
could be rejected at a level of significance of 0.05.-False

13. It is possible to directly compare the results of a confidence interval estimate to the results obtained by testing a null
hypothesis if

Answer:- I only

14. You have created a 95% confidence interval for μ with the result 10≤μ≤15. What decision will you make if you test
H00: μ=16 versus H11: μs≠16 at αs=0.05?

Answer:- Reject H00 in favor of H11.

15. You have created a 95% confidence interval for μ with the result 10≤μ≤15. What decision will you make if you test
H00: μ=16 versus H11: μs≠16 at αs=0.10?

Answer:- Reject H00 in favor of H11.

16. An economist wishes to determine whether there is evidence that mean family income in a community exceeds
$50,000. Which of the following statements is correct?

Answer:- A one-tail test should be utilized.

17. The owner of a local nightclub has recently surveyed a random sample of n=250 customers of the club. She would now
like to determine whether or not the mean age of her customers is greater than 30. If so, she plans to alter the
entertainment to appeal to an older crowd. If not, no entertainment changes will be made. What are the appropriate
hypotheses to test?

Answer:- >H00: μ≤30 and H11: μ>30

18. The owner of a local nightclub has recently surveyed a random sample of n=250 customers of the club. She would now
like to determine whether or not the mean age of her customers is greater than 30. If so, she plans to alter the
entertainment to appeal to an older crowd. If not, no entertainment changes will be made. If she wants to have a level of
significance at 0.01, what rejection region should she use?

Reject H00 if t<−2.5758.

Reject H00 if t>2.3263.
Answer:- Reject H00 if t>2.3263.

19. In a hypothesis test, it is irrelevant whether the test is a one-tail or two-tail test. - False

20. A proper methodology in performing hypothesis tests is to ask whether a random sample can be selected from the
population of interest. -True

21. "What conclusions and interpretations can you reach from the results of the hypothesis test?" is not an important
question to ask when performing a hypothesis test.- False
22. "Is the intended sample size large enough to achieve the desired power of the test for the level of significance
chosen?" should be among the questions asked when performing a hypothesis test.-True

23. In conducting research, you should document both good and bad results.-True

24. An appliance manufacturer claims to have developed a compact microwave oven that consumes a 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. A consumer group has decided to try to discover if the claim appears
true. They take a sample of 20 microwave ovens and find that they consume a mean of 257.3 W.

Which of the following is the parameter of interest?

250 257.3
the mean power consumption of the 20 microwave ovens the mean power
consumption of all such microwave ovens
Answer:- the mean power consumption of all such microwave ovens

25. The quality control engineer for a furniture manufacturer is interested in the mean amount of force necessary to
produce cracks in stressed oak furniture. She performs a two-tail test of the null hypothesis that the mean for the
stressed oak furniture is 650. The calculated value of the Z test statistic is a positive number that leads to a p-
value of 0.080 for the test. If the test is performed with a level of significance of 0.10, the null hypothesis would
be rejected.
- True

26. For all two-sample tests, the sample sizes must be equal in the two groups.- False

27. The sample size in each independent sample must be the same if one is to test for differences between the means
of two independent populations.:- False

28. When you test for differences between the means of two independent populations, you can only use a two-tail test. -
False

29. A statistics professor wanted to test whether the grades on a statistics test were the same for upper and lower
classmen. The professor took a random sample of size 10 from each, conducted a test and found out that the
variances were equal. For this situation, the professor should use a t test with related samples. - False

30. If one is testing for the difference between the means of 2 independent populations presuming equal variances
with samples of n1=20 and n2=20, what is the number of degrees of freedom?

Answer:- 38

31. In testing for the differences between the means of 2 independent populations where the variances in each
population are unknown but assumed equal, how many degrees of freedom are there?
n−1 n−2
n1+n2−1
n1+n2−2
Answer:- n1+n2−2
32. In testing for differences between the means of two independent populations, what is the null hypothesis?

H00: μ1−μ2>0
H00: μ1−μ2=2
H00: μ1−μ2=0
H00: μ1−μ2<2
Answer:- H00: μ1−μ2=0

33. Are managers from Country B more motivated than managers from Country A? A randomly selected group of
each were administered a survey which measures motivation for upward mobility. The survey scores are
summarized below.

Country A Country B Sample Size

211 100

Sample Mean SSATL Score

65.75 79.83

Sample Std. Dev.

11.07 6.41

Give the null and alternative hypotheses to determine if the mean survey score of managers from Country B differs
from the mean survey score of managers from Country A.
Answer:- H00: μA−μB=0 H11: μA-μB≠0

34. If one is testing for the difference between the means of 2 related populations with samples of n1=20 and
n2=20, what is the number of degrees of freedom?

Answer:- 19

35. In testing for differences between the means of 2 related populations where the variance of the differences is
unknown, how many degrees of freedom are there?

A. n1+n2−2 B. n−2 C. n1+n2−1 D. n−1

Answer:- n−1

Statistics MCQs – Hypothesis testing for one population

1. A Type I error occurs when we:

a. reject a true null hypothesis

2. In a criminal trial, a Type I error is made when:

a. an innocent person is convicted (sent to jail)

3. A Type II error occurs when we:

a. do not reject a false null hypothesis

4. If a hypothesis is rejected at the 0.025 level of significance, it:

b. may or may not be rejected at the 0.01 level

5. In a criminal trial, a Type II error is made when:

a. a guilty defendant is acquitted (set free)

6. In a two-tail test for the population mean, if the null hypothesis is rejected when the alternative is true, then:
a. a correct decision is made

7. In a one-tail test for the population mean, if the null hypothesis is not rejected when the alternative
hypothesis is true, then:
b. a Type II error is committed

8. In a one-tail test for the population mean, if the null hypothesis is rejected when the alternative
hypothesis is not true, then:
a. a Type I error is committed

9. If we reject the null hypothesis, we conclude that:

a. there is enough statistical evidence to infer that the alternative hypothesis is true

10. If we do not reject the null hypothesis, we conclude that:

a. there is not enough statistical evidence to infer that the alternative hypothesis is true

11. The p-value of a test is the:

a. smallest significance level at which the null hypothesis can be rejected

12. In order to determine the p-value of a hypothesis test, which of the following is not needed?
a. the level of significance

13. Which of the following p-values will lead us to reject the null hypothesis if the significance level of the test if 5%?
0.025

14. Suppose that we reject a null hypothesis at the 5% level of significance. For which of the following levels of
significance do we also reject the null hypothesis?
a. 6%

15. Which of the following statements about hypothesis testing is true?

a. If the p-value is greater than the significance level, we fail to reject Ho

16. The purpose of hypothesis testing is to:

a. determine whether a statistical result is significant

17. In hypothesis testing, what level of significance would be most appropriate to choose if you knew that making a
Type I error would be more costly than making a Type II error?
a. 0.005

18. The p-value obtained from a classical hypothesis test is:

a. the probability of observing the data or more extreme values if the null hypothesis is true

19. To test a hypothesis involving proportions, both np and n(1-p) should Be greater than 5

20. What assumption is being made when we use the t-distribution to perform a hypothesis test?
a. That the underlying population follows an approximately Normal distribution

1.The sum of the values of Alpha and Beta

a. none of these alternatives is correct (Answer)

2. What type of error occurs if you fail to reject H0 when, in fact, it is not true? a. Type II (Answer)

3. An assumption made about the value of a population parameter is called a

a. Hypothesis (Answer)

4. The probability of committing a Type I error when the null hypothesis is true is
a. the confidence level (Answer)

5. In hypothesis testing,
a. the smaller the Type I error, the larger the Type II error will be (Answer)

6. In hypothesis testing, the tentative assumption about the population parameter is

a. the null hypothesis (Answer)

7. 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 (Answer)

8. The p-value is a probability that measures the support (or lack of support) for the
a. null hypothesis (Answer)

10. For a two-tail test, the p-value is the probability of obtaining a value for the test statistic as Unlikely as that
provided by the sample (Answer)

2. Consider a set of 18 samples from a standard normal distribution. We square each sample and sum all the squares.
The number of degrees of freedom for a Chi Square distribution will be?
a) 18

3. What is the mean of a Chi Square distribution with 6 degrees of freedom?

b) 6

4. Which Chi Square distribution looks the most like a normal distribution?
a) A Chi Square distribution with 16 degrees of freedom

5. A bag contains 80 chocolates. This bag has 4 different colors of chocolates in it. If all four colors of chocolates
were equally likely to be put in the bag, what would be the expected number of chocolates of each color?
b) 20

6. Suppose a person has 8 red, 5 green, 12 orange, and 15 blue balls. Test the null hypothesis that the colors of the
balls occur with equal frequency. What is the Chi Square value you get? 5.8

8. In a sample survey of public opinion answer to the question:

1) Do you drink?
2) Are you in favor of local option sale of Liquor
Yes No Total

Yes 56 31 87

No 18 6 24

Total 74 37 111

Infer or not the local option on the sale of liquor is dependent on individual drinker? Find the value of X2 for
degrees of freedom at level of significance 3.841.
a) 0.957
b) 0.975
c) 0.759
d) 0.795

9. The Variance of Chi Squared distribution is given as k. - False

10. Which of these distributions is used for a testing hypothesis?

a) Chi-Squared Distribution

A researcher asked 933 people what their favourite type of TV programme was: news, documentary, soap or sports.
They could only choose one answer. As such, the researcher had the number of people who chose each category of
programme. How should she analyse these data?

A. t-test
B. One-way analysis of variance
C. Chi-square test
D. D. Regression

Chi-square is used to analyse:

A. Scores
B. Ranks
C. Frequencies
D. Any of these

On which of the following does the critical value for a chi-square statistic rely?

A. The degrees of freedom

B. The sum of the frequencies
C. The row totals
D. The number of variables

Q. Using a goodness-of-fit test, we can assess whether a set of obtained frequencies differ from a set of _______
frequencies
A. Mean
B. Actual
C. Predicted
D. Expected

2. Variance is equal to [(v1 + v2 – 2)] / [v1 * (v2 – 2)2 * (v2 – 4)] for v2 > 4 for a f-Distribution. a) True
b) False

3. Which of the following distributions is Continuous?

a) F-Distribution

4. Which of the following distributions is used to compare two variances? a

b) F – Distribution

5. F-Distribution cannot take negative values. - True

6. Find Variance for an F-Distribution with v1=5 and v2=9.

a) 1.587

7. The table shows the standard Deviation and Sample Standard Deviation for both men and women. Find the f
statistic considering the Men population in numerator.
Population Population Standard Deviation Sample Standard Deviation
Men 30 35

Women 50 45

a) 1.68

8. Calculate the value of f-statistic having a cumulative probability of 0.95. 0.05View Answer

9. There is only 1 parameter in F-Distribution. - False

10. Find the Expectation for a F- Distribution variable with v1 = 7 and v2 = 8. 6
b) 4/3

Q. A frequency distribution is a tabular summary of data showing the

a. number of items in several classes

Q. A tabular summary of a set of data showing the fraction of the total number of items in several classes is a:
a. frequency distribution

Q. The relative frequency of a class is computed by

d. dividing the frequency of the class by the sample size

Q. The percent frequency of a class is computed by

c. multiplying the relative frequency by 100

Q. The sum of frequencies for all classes will always equal

b. the number of elements in a data set

Q. Fifteen percent of the students in a school of Business Administration are majoring in Economics, 20% in Finance,
35% in Management, and 30% in Accounting. The graphical device(s) which can be used to present these data is (are)

d. both a bar chart and a pie chart

Q. A researcher is gathering data from four geographical areas designated: South = 1; North = 2; East = 3; West = 4.
The designated geographical regions represent

a. categorical data

Q. Categorical data can be graphically represented by using a(n)

d. bar chart

Q. A cumulative relative frequency distribution shows

a. the proportion of data items with values less than or equal to the upper limit of each class

Q. If several frequency distributions are constructed from the same data set, the distribution with the widest class
width will have the
a. fewest classes
 1. The mean of the f – distribution is equal to ___________
a) v2 / (v2 – 2) for v2 > 2

2. Variance is equal to [(v1 + v2 – 2)] / [v1 * (v2 – 2)2 * (v2 – 4)] for v2 > 4 for a f-Distribution.-False

3. Which of the following distributions is Continuous?

a) F-Distribution

4. Which of the following distributions is used to compare two variances? a) F – Distribution

Answer: b

5. F-Distribution cannot take negative values.

a) True

1. Which of the following is a discrete quantitative (numerical) variable?

Ans- The number of employees of an insurance company
2. Which of the following is a continuous quantitative (numerical) variable?
Ans- The amount of milk in a 2-liter carton
3. To monitor campus security, the campus police office is taking a survey of the number of students in a parking lot each
30 minutes of a 24-hour period with the goal of determining when patrols of the lot would serve the most students. If
X is the number of students in the lot each period of time, then X is an example of :
And- a discrete variable
4. Researchers are concerned that the weight of the average American school child is increasing implying, among
other things, that children’s clothing should be manufactured and marketed in larger sizes. If X is the weight of
school children sampled in a nationwide study, then X is an example of
Ans- a continuous variable
5. The classification of student class designation (freshman, sophomore, junior, senior) is an example of
Ans- a categorical variable
6. The classification of student major (accounting, economics, management, marketing, other) is an example of
Ans- a categorical variable
7. The chancellor of a major university was concerned about alcohol abuse on her campus and wanted to find out the
proportion of students at her university who visited campus bars on the weekend before the final exam week. Her
assistant took a random sample of 250 students. The answer on “whether you visited campus bars on the weekend
before the final exam week” from students in the sample is an example of ___________
Ans- a categorical variable
8. Referring to Scenario 1-1, the possible responses to the question “How many Blu-ray players made by other
manufacturers have you used?” are values from a
Ans- discrete variable
9. Referring to Scenario 1-1, the possible responses to the question “Are you happy, indifferent, or unhappy with the
performance per dollar spent on the Blu-ray player?” are values from a
Ans- categorical variable
10. Referring to Scenario 1-1, the possible responses to the question “What is your annual income rounded to the
nearest thousands?” are values from a
Ans- discrete numerical variable
 1. A type of vertical bar chart in which the categories are plotted in the descending rank order of the magnitude of
their frequencies is called a
Ans- Pareto chart
2. The width of each bar in a histogram corresponds to the
Ans- differences between the boundaries of the class
3. When constructing charts, the following is plotted at the class midpoints:
Ans- percentage polygons
4. Which of the following is appropriate for displaying data collected on the different brands of cars students at a
major university drive?
Ans- A Pareto chart
5. One of the developing countries is experiencing a baby boom, with the number of births rising for the fifth year in a
row, according to a BBC News report. Which of the following is best for displaying this data?
Ans- A time-series plot
6. When studying the simultaneous responses to two categorical questions, you should set up a Ans- contingency
table
7. Data on 1,500 students’ height were collected at a larger university in the East Coast. Which of the following is the
best chart for presenting the information?
Ans- A histogram
8. Data on the number of part-time hours students at a public university worked in a week were collected. Which of the
following is the best chart for presenting the information?
Ans- A percentage polygon
9. Data on the number of credit hours of 20,000 students at a public university enrolled in a Spring semester were
collected. Which of the following is the best for presenting the information?
Ans- A stem-and-leaf display
10. A survey of 150 executives were asked what they think is the most common mistake candidates make during
job interviews. Six different mistakes were given. Which of the following is the best for presenting the information?
Ans-. A bar chart

1. Which of the following statistics is not a measure of central tendency?

Ans- Q3
2. Which measure of central tendency can be used for both numerical and categorical variables?
Ans- Mode
3. Which of the arithmetic mean, median, mode, and geometric mean are resistant measures of central tendency?
Ans- The median and mode only
4. In a right-skewed distribution
Ans- the median is less than the arithmetic mean
5. Which of the following statements about the median is not true?
Ans- It is more affected by extreme values than the arithmetic mean

6. In a perfectly symmetrical bell-shaped "normal" distribution

a. the arithmetic mean equals the median
b. the median equals the mode
c. the arithmetic mean equals the mode
d. All the above (Answer)

7. In a perfectly symmetrical distribution

Ans- the median equals the arithmetic mean
 8. When extreme values are present in a set of data, which of the following descriptive summary measures are most
appropriate
Ans- interquartile range and median

9. In general, which of the following descriptive summary measures cannot be easily approximated from a boxplot?
Ans- The variance

10. The smaller the spread of scores around the arithmetic mean
a. the smaller the interquartile range
b. the smaller the standard deviation
c. the smaller the coefficient of variation
d. All the above (Answer)

1. If two events are collectively exhaustive, what is the probability that one or the other occurs? Ans- 1.00
2. If two events are collectively exhaustive, what is the probability that both occur at the same time?
Ans- Cannot be determined from the information given
3. If two events are mutually exclusive, what is the probability that one or the other occurs?
Ans- Cannot be determined from the information given
4. If two events are mutually exclusive, what is the probability that both occur at the same time? Ans- 0
5. If two events are mutually exclusive and collectively exhaustive, what is the probability that both occur? Ans- 0
6. If two events are mutually exclusive and collectively exhaustive, what is the probability that one or the other
occurs?
Ans- 1.00
7. If events A and B are mutually exclusive and collectively exhaustive, what is the probability that event A occurs?
Ans- Cannot be determined from the information given
8. If two equally likely events A and B are mutually exclusive and collectively exhaustive, what is the probability that
event A occurs?
Ans- 0.50
9. If two equally likely events A and B are mutually exclusive, what is the probability that event A occurs?
Ans- Cannot be determined from the information given
10. If two equally likely events A and B are collectively exhaustive, what is the probability that event A occurs?
Ans- Cannot be determined from the information given

1. Thirty-six of the staff of 80 teachers at a local intermediate school are certified in Cardio- Pulmonary Resuscitation
(CPR). In 180 days of school, about how many days can we expect that the teacher on bus duty will likely be certified in
CPR?
Ans- 81 days

2. A campus program evenly enrolls undergraduate and graduate students. If a random sample of
4 students is selected from the program to be interviewed about the introduction of a new fast
food outlet on the ground floor of the campus building,what is the probability that all 4
students selected are undergraduate students? Ans- 0.0625
3. A probability distribution is an equation that
Ans- associates a particular probability of occurrence with each outcome
4. The connotation "expected value" or "expected gain" from playing roulette at a casino means
Ans- the amount you expect to "gain" in the long run over many plays
5. A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Suppose the
mean cost of rats used in lab experiments turned out to be $13.00 per week. Interpret this value
Ans-The expected or mean cost for all weekly rat purchases is $13.00
6. True or False: Another name for the mean of a probability distribution is its expected value Ans- True
7. Which of the following about the binomial distribution is not a true statement?
Ans- The variable of interest is continuous
8. In a binomial distribution
Ans- the probability of event of interest is stable from trial to trial
9. Whenever π = 0.5, the binomial distribution will
Ans- always be symmetric
10. Whenever π = 0.1 and n is small, the binomial distribution will be
Ans- right-skewed

1. In its standardized form, the normal distribution

Ans- has a mean of 0 and a standard deviation of 1.
2. Which of the following about the normal distribution is not true?
Ans- It is a discrete probability distribution.
3. If a particular set of data is approximately normally distributed, we would find that approximately
a. 19 of every 20 observations would fall between ± 2 standard deviations around the mean. d. All the above (Answer)
4. The value of the cumulative standardized normal distribution at Z is 0.8770. The value of Z is: Ans- 1.16
5. For some value of Z, the value of the cumulative standardized normal distribution is 0.2090. The value of Z
is:
Ans-– 0.81
6. For some value of Z, the value of the cumulative standardized normal distribution is 0.8340. The value of Z
is:
Ans- 0.97
7. The value of the cumulative standardized normal distribution at Z is 0.6255. The value of Z is: Ans- 0.32
8. The value of the cumulative standardized normal distribution at 1.5X is 0.9332. The value of X is: Ans- 1.00
9. If we know that the length of time it takes a college student to find a parking spot in the library parking lot
follows a normal distribution with a mean of 3.5 minutes and a standard deviation of 1 minute, find the probability
that a randomly selected college student will find a parking spot in the library parking lot in less than 3 minutes.
Ans- b. 0.3085
10. If we know that the length of time it takes a college student to find a parking spot in the library parking lot
follows a normal distribution with a mean of 3.5 minutes and a standard deviation of 1 minute, find the probability
that a randomly selected
college student will take between 2 and 4.5 minutes to find a parking spot in the library parking lot. Ans- 0.7745

1. Sampling distributions describe the distribution of

Ans- statistics
2. The standard error of the mean
a. is never larger than the standard deviation of the population
b. decreases as the sample size increases
c. measures the variability of the mean from sample to sample
d. All of the above (Answer)
3. The Central Limit Theorem is important in statistics because
Ans- for a large n, it says the sampling distribution of the sample mean is pproximately normal, regardless of
the shape of the population
4. If the expected value of a sample statistic is equal to the parameter it is estimating, then we call that sample
statistic
Ans- unbiased
 5. For air travelers, one of the biggest complaints is of the waiting time between when the airplane taxis away from
the terminal until the flight takes off. This waiting time is known to have a right skewed distribution with a mean of
10 minutes and a standard deviation of 8 minutes. Suppose 100 flights have been randomly sampled. Describe the
sampling distribution of the mean waiting time between when the airplane taxis away from the terminal until the
flight takes off for these 100 flights.
Ans- Distribution is approximately normal with mean = 10 minutes and standard error = 0.8 minutes 6. Which of
the following statements about the sampling distribution of the sample mean is incorrect?
Ans- The standard deviation of the sampling distribution of the sample mean is equal to.
7. Which of the following is true about the sampling distribution of the sample mean?
Ans- The mean of the sampling distribution is always.
8. True or False: The amount of time it takes to complete an examination has a left skewed distribution with a mean of
65 minutes and a standard deviation of 8 minutes. If 64 students were randomly sampled, the probability that the
sample mean of the sampled students exceeds 71 minutes is approximately 0.
Ans- True
9. Suppose the ages of students in Statistics 101 follow a right skewed distribution with a mean of 23 years and a
standard deviation of 3 years. If we randomly sampled 100 students, which of the following statements about the
sampling distribution of the sample mean age is incorrect?
Ans- The standard deviation of the sampling distribution is equal to 3 years.
10. Why is the Central Limit Theorem so important to the study of sampling distributions?
Ans- It allows us to disregard the shape of the population when n is large.

1. Which of the following would be an appropriate null hypothesis?

Ans- The mean of a population is equal to 55
2. Which of the following would be an appropriate null hypothesis?
Ans- The population proportion is not less than 0.65
3. Which of the following would be an appropriate alternative hypothesis?
Ans- The mean of a population is greater than 55
4. Which of the following would be an appropriate alternative hypothesis?
Ans- The population proportion is less than 0.65
5. A Type II error is committed when
Ans- you don't reject a null hypothesis that is false
6. A Type I error is committed when
Ans- you reject a null hypothesis that is true
7. The power of a test is measured by its capability of
Ans- rejecting a null hypothesis that is false
8. If an economist wishes to determine whether there is evidence that mean family income in a community exceeds
$50,000
Ans- a one-tail test should be utilized
9. If an economist wishes to determine whether there is evidence that mean family income in a community equals
$50,000
Ans- a two-tail test should be utilized
10. If the p-value is less than in a two-tail test,
Ans- the null hypothesis should be rejected

1. True or False: For all two-sample tests, the sample sizes must be equal in the two groups. Ans- False
2. True or False: When the sample sizes are equal, the pooled variance of the two groups is the average of the 2
sample Variances. Ans- True
3. The t test for the difference between the means of 2 independent populations assumes that the respective
Ans- populations are approximately normal
4. If we are testing for the difference between the means of 2 independent populations presuming equal
variances with samples of n1 = 20 and n2 = 20, the number of degrees of freedom is equal to - Ans- 38
5. In testing for the differences between the means of 2 independent populations where the variances in each
population are unknown but assumed equal, the degrees of freedom are Ans- n1 + n2 – 2
6. Given the following information, calculate sp2, the pooled sample variance that should be used in the
pooled-variance t test. s1 2 = 4 s2 2 = 6 n1 = 16 n2 = 25
Ans- sp 2 = 5.23
7. True or False: The sample size in each independent sample must be the same if we are to test for differences
between the means of two independent populations. Ans- False
8. True or False: When you test for differences between the means of two independent populations, you can
only use a twotail test.
Ans- False
9. True or False: A statistics professor wanted to test whether the grades on a statistics test were the same for
upper and lower classmen. The professor took a random sample of size 10 from each, conducted a test and found out
that the variances were equal. For this situation, the professor should use a t test with related samples.
Ans- False
10. True or False: A statistics professor wanted to test whether the grades on a statistics test were the same for
upper and lower classmen. The professor took a random sample of size 10 from each, conducted a test and found out
that the variances were equal. For this situation, the professor should use a t test with independent samples.
Ans- True

1. In a one-way ANOVA, if the computed F statistic is greater than the critical F value you may
Ans- reject H0 since there is evidence that not all the means are different
2. Which of the following components in an ANOVA table are not additive? Ans- Mean squares
3. When would you use the Tukey-Kramer procedure?
Ans- To test for differences in pairs of means
4. A completely randomized design
Ans- has only one factor with several treatment groups
5. The F test statistic in a one-way ANOVA is
Ans- MSA/MSW
6. The degrees of freedom for the F test in a one-way ANOVA are
Ans- (c – 1) and (n – c )
7. In a one-way ANOVA, the null hypothesis is always
Ans- there is no difference in the population means
8. In a one-way ANOVA
Ans- there is no interaction term
9. True or False: The analysis of variance (ANOVA) tests hypotheses about the population variance Ans- False
10. True or False: When the F test is used for ANOVA, the rejection region is always in the right tail Ans- True

1. If we use the c2 method of analysis to test for the differences among 4 proportions, the degrees of freedom
are equal to:
Ans- 3
2. If we wish to determine whether there is evidence that the proportion of items of interest is the same in
group 1 as in group 2, the appropriate test to use is a. the Z test
b. the X2 test
c. Both a) and b) (ANSWER)
d. Neither of a) nor b)
 3. In testing a hypothesis using the c2 test, the theoretical frequencies are based on the
Ans- null hypothesis
4. True or False: In testing the difference between two proportions using the normal distribution, we may use either a
one-tail Chi-square test or two-tail Z test. Ans- True
5. True or False: The squared difference between the observed and theoretical frequencies should be large if there is
no significant difference between the proportions. Ans- False
6. True or False: A test for the difference between two proportions can be performed using the chi- square distribution.
Ans- True
7. True or False: A test for whether one proportion is higher than the other can be performed using the chi-square
distribution. Ans- False
8. When testing for independence in a contingency table with 3 rows and 4 columns, there are degrees of
freedom. Ans- 6
9. To use the Wilcoxon Rank Sum Test as a test for location, you must assume that
a. the obtained data are either ranks or numerical measurements that will be converted to combined ranks
b. both samples are randomly and independently drawn from their respective populations
c. both underlying populations from which the samples were drawn are equivalent in shape and dispersion
d. All the above (ANSWER)

10. Which of the following is a “robust” test procedure against the violation of distribution assumptions? Ans-
Wilcoxon rank sum test for difference in medians

1. The Y-intercept (b0) represents the

Ans- predicted value of Y when X = 0
2. The Y-intercept (b0) represents the
Ans- estimated average Y when X = 0
3. The slope (b1) represents
Ans- the estimated average change in Y per unit change in X
4. The least squares method minimizes which of the following? Ans- SSE
5. True of False: The Chancellor of a university has commissioned a team to collect data on students’ GPAs and the
amount of time they spend bar hopping every week (measured in minutes). He wants to know if imposing much
tougher regulations on all campus bars to make it more difficult for students to spend time in any campus bar will have
a significant impact on general students’ GPAs. His team should use a t test on the slope of the population regression.
Ans- True
6. The residual represents the discrepancy between the observed dependent variable and its_______________value.
Ans- predicted or estimated mean

7. If the Durbin-Watson statistic has a value close to 0, which assumption is violated?

Ans- Independence of errors
8. If the Durbin-Watson statistic has a value close to 4, which assumption is violated?
Ans- Independence of errors
9. The standard error of the estimate is a measure of
Ans- the variation around the sample regression line
10. The coefficient of determination (r2) tells you
Ans- the proportion of total variation that is explained

1. While assigning random numbers in Monte Carlo simulation, it is?

Ans- Necessary to develop a cumulative probability distribution
2. As simulation is not an analytical model, therefore the result of simulation must be viewed as?
Ans- Approximation
3. The two types of simulation are?
Ans- Continuous model and discrete model
4. Biased random sampling is made from among alternatives which have?
Ans- Unequal probability
5. Randomness in simulation arises when the interval between successive events is?
Ans- Probabilistic
6. Which of the following is not a sampling from probability distributions?
Ans- Simplex method
7. Simulation is defined as?
Ans- A procedure for testing & experimenting on models
8. Stimulation is a statistical experiment and it should satisfy which of the below condition?
Ans- Observations are independent
9. Which of the below is the most common methods of collecting observations in simulation?
Ans- Subinterval method
10. The important step required for simulation approach in solving a problem is to?
Ans- Test & validate and design the model

1. Index numbers are used to

Ans- Identify the ratio between two time periods
2. Index number for period i =
Ans- i = (value in period i/value in base period) × 100
3. An index number is called a simple index when it is computed from?
Ans- Single variable
4. Unweighted aggregate price index numbers and weighted aggregate price index numbers are the two caterogeries
of?
Ans- Price index number
5. Index numbers are used for?
Ans- Forecasting
6. Index for base period is always taken as?
Ans- 100
7. How many types are used for the calculation of weighted aggregate price index numbers? Ans- 6
8. What is the formula used in Laspeyres’s Price Index Number?
Ans- i = (∑p1 q0 /∑p0 q0 ) × 100
9. Which of the below index number is the arithmetic mean of Laspeyres’s price index and Paasche’s price index?
Ans- Dorbish–Bowley Price Index Number
10. The most commonly used index number is?
Ans- Value index number