ALC 9 PRETEST QUESTIONS & ANSWERS LATEST UPDATE

ALC 9 PRETEST QUESTIONS & ANSWERS LATEST UPDATE 1. A company has developed a new smartphone whose average lifetime is unknown. In order to estimate this average, 200 smartphones are randomly selected from a large production line and tested; their average lifetime is found to be 5 years. The 200 smartphones represent a . a. parameter b. statistic c. sample d. population 2. Which of the following is a measure of the reliability of a statistical inference? a. A population parameter b. A significance level c. A descriptive statistic d. A sample statistic 3. The process of using sample statistics to draw conclusions about population parameters is called . a. finding the significance level b. calculating descriptive statistics c. doing inferential statistics d. calculating the confidence level 4. Which of the following statements involve descriptive statistics as opposed to inferential statistics? a. The Alcohol, Tobacco and Firearms Department reported that Houston had 1,791 registered gun dealers in 1997. b. Based on a survey of 400 magazine readers, the magazine reports that 45% of its readers prefer double column articles. c. The FAA samples 500 traffic controllers in order to estimate the percent retiring due to job stress related illness. d. Based on a sample of 300 professional tennis players, a tennis magazine reported that 25% of the parents of all professional tennis players did not play tennis. 5. A population of all college applicants exists who have taken the SAT exam in the United States in the last year. A parameter of the population are . a. students who completed the SAT exam b. college applicants c. U.S. college applicants in the last year d. SAT scores 6. Which of the following statements is true regarding the design of a good survey? a. The questions should be made as long as possible b. A mixture of dichotomous, multiple-choice, and open-ended questions may not be used c. Leading questions must be used d. The questions should be kept as short as possible 7. Which method of data collection is involved when a researcher counts and records the number of students wearing backpacks on campus on a given day? a. An experiment b. A survey c. Direct observation d. Interview 8. The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a videocassette recorder over the past 12 months are satisfied with their products. If there are four different brands of videocassette recorders made by the company, the best sampling strategy would be to use a . a. simple random sample b. stratified random sample c. cluster sample d. self-selected sample 9. Which of the following types of samples is almost always biased? a. Simple random samples b. Stratified random samples c. Cluster samples d. Self-selected samples 10. is an expected error based only on the observations limited to a sample taken from a population. a. sampling error b. response error c. nonresponse error d. non-sampling error 11. Bayes's Law is used to compute . a. prior probabilities b. joint probabilities c. union probabilities d. posterior probabilities 12. The classical approach describes a probability . a. in terms of the proportion of times an event is observed to occur in a very large number of trials b. in terms of the degree to which one happens to believe that an event will happen c. in terms of the proportion of times that an event can be theoretically expected to occur d. is dependent on the law of large numbers 13. If a set of events includes all the possible outcomes of an experiment, these events are considered to be . a. mutually exclusive b. exhaustive c. intersecting d. inclusive 14. Which of the following statements is not correct? a. Two events A and B are mutually exclusive if event A occurs and event B cannot occur. b. If events A and B occur at the same time, then A and B intersect. c. If event A does not occur, then its complement A' will also not occur. d. A union of events occurs when at least one event in a group occurs, e.g., (A or B or C). 15. The can determine the union of two events such as event A and event B. a. multiplication rule b. Bayes' Law Formula c. complement rule d. addition rule 16. The concept that allows us to draw conclusions about the population based strictly on sample data without having any knowledge about the distribution of the underlying population is . a. the central limit theorem b. standard error of the mean c. the range d. the standard deviation 17. Each of the following are characteristics of the sampling distribution of the mean except . a. the sampling distribution of the mean has a different mean from the original population b. the standard deviation of the sampling distribution of the mean is referred to as the standard deviation c. if the original population is not normally distributed, the sampling distribution of the mean will be normal d. if the original population is not normally distributed, the sampling distribution of the mean will also be approximately normal for large sample sizes 18. Suppose you are given 3 numbers that relate to the number of people in a university student sample. The three numbers are 10, 20, and 30. If the standard deviation is 10, the standard error equals . a. 5.77 b. 14.227 c. 8.165 d. 1.732 19. You are tasked with finding the sample standard deviation. You are given 4 numbers. The numbers are 5, 10, 15, and 20. The sample standard deviation equals . a. 3.227 b. 12.5 c. 5.59 d. 6.455 20. Two methods exist to create a sampling distribution. One involves using parallel samples from a population and the other is to use the . a. Central Limit Theorem b. variance c. rules of probability d. sampling distribution 1. A website poll is accurate 99 times out of 100, which means . a. A conclusion will be wrong 1% of the time 2. Sixty percent of a company’s customers are females. What is the probability that a random sample of 200 customers is greater than 64 percent female? a. 0.1229 3. The can be the derivative of the sampling distribution. a. Estimator or statistic 4. The sample involves dividing the population into groups, then randomly selecting some of the groups and taking either a sample or a census of their members. a. stratified 5. The sole variable in the z-statistic is the , which changes with different samples. a. Sample mean 6. If when using the confidence interval estimator of a proportion the researcher finds that there is no chance of finding a success in the population, adding the number of 4 to the sample size could be part of the solution, which refers to . a. The Wilson estimate 7. The expected value of perfect information is the same as . a. The expected opportunity loss for the best alternative 8. For a given level of significance, if the sample size increases, the probability of a Type II error will . a. Decrease 9. A type II error is defined as a. Not rejecting a false null hypothesis 10. A Type I error occurs when we a. Reject a true null hypothesis 11. A marketing research firm selects a random sample of adults and asks them a list of questions regarding their beverage preferences. What type of data collection is involved here? a. A survey 12. Statistics is best described as a to help analyze numbers. a. tool 13. A confidence interval is defined as . a. An interval that has a 95% probability of containing the population parameter 14. Which of the following statements involve inferential statistics as opposed to descriptive statistics? a. The FAA samples 500 traffic controllers in order to estimate the percent retiring due to job stress related illness. 15. A federal auditor for nationally charted banks from a random sample of 100 accounts found that the average demand deposit balance at the First National Bank of small town was $549.82. if the auditor needed a point estimate for the population mean for all accounts at this bank, what would she use? a. The average of $549.82 for this sample 16. The average sales per customer at a home improvement store during the past year is $75 with a standard deviation of $12. The probability that the average sales per customer from a sample of 36 customers, taken at random from this population, exceeds $78 is . a. 0.0668 17. Which of the following would not be considered a state of nature for a business firm? a. The number of employees to hire 18. A sample of 500 athletes is taken from a population of 11,000 Olympic athletes to measure work ethic. As a result, we . a. Can predict an outcome with a larger fraction of the population 19. Though not the most effective method, rolling four dice enough times will result in theoretical probabilities being similar to . a. Relative frequencies 20. Which of the following is a rule violation in hypothesis testing? a. That we accept the null hypothesis 21. Assume an investment is made a significant number of times using the same probabilities and payoffs. In this case, the average payoff per investment represents . a. the expected payoff 22. Which of the following is false? a. The EMV is always different from the EOL decision 23. As a general rule, the normal distribution is used to approximate the sampling distribution of the sample proportion only if . a. Np and n(1-p) are both greater than or equal to 5. 24. Consider a probability tree for selecting two puppies without replacement. The joint probability of two branches of the probability tree where the first selection is P(F) = 2/7 and the second selection P(F[F) =3//10 is . a. P(FF)=(2/7)(3/10) 25. Which of the following represents behavior of risk avoidance? a. Buying a car with an air bag for both front seat occupants 26. The standard error is ? a. The standard deviation of the sampling distribution 27. Which of the following is not a goal of the descriptive statistics? a. Estimating characteristics of the population 28. The t-distribution approaches the normal distribution as the . a. Degrees of freedom increases 29. are utilized to make inferences about certain population parameters. a. Statistics 30. The average number of customers that visited a particular store during the past year is 160 per day and a standard deviation of 25 customers per day. A random sample of 64 days is chosen from this population. The standard deviation of the sample means equals . a. 3.125 1. Which of the following is not necessary to compute posterior probabilities? a. the sum of all P(sj and Ii)’s b. EMV c. likelihood probabilities d. P(Ii | sj) 2. When the objective is to compare more than two populations, the experimental design that is the counterpart of the matched pairs experiment is called a . a. Randomized block design 3. Which of the following probabilities is equal to the significance level A? a. Probability of making Type 1 error 4. The difference between a sample mean and the population mean is called . a. Sampling error 5. A summary measure that is computed from a sample to describe a characteristic of the population is called . a. A parameter 6. The F-statistic in a one-way ANOVA represents the . a. Variation between the treatments divided by the variation within the treatment 7. Which of the following is an example of a non-sampling error? a. Responses are not obtained from all members of the sample 8. When every possible sample with the same number of observations is equally likely to be chosen, the result is called a . a. Simple random sample 9. In a sample, the population is divided into layers; then a simple random sample of members from each layer is selected. a. Stratified 10. Which of the following would be considered a state of nature for a business firm? a. Worker safety laws 11. The analysis of variance is a procedure that allows statisticians to compare two or more population . a. Means 12. When is the Turkey multiple comparison method used? a. To test for differences in pairwise means 13. An approach of assigning probabilities, which assumes that all outcomes of the experiment are equally likely is referred to as the . a. Classical approach 14. If two random samples of sizes n1 and n2 are selected independently from two populations with means m1 and m2, then the mean of x1-x2 equals . a. M1-m2 15. The expected value of sample information (EVSI) is the difference between . a. The expected monetary value with additional information (EMV’) and the expected monetary value for the best decision (EMV*) 16. In a criminal trial where the null hypothesis states that the defendant is innocent, a type II error is made when . a. a guilty defendant is found not guilty b. an innocent person is found guilty c. a guilty defendant is found guilty d. an innocent person is found not guilty 17. When data are collected in a statistical study for only a portion or subset of all elements of interest we are using a . a. Sample 18. If all possible samples of size n are drawn from an infinite population with a mean of U and a standard deviation of A, then the standard error of the sample mean is inversely proportional to . a. (n) 19. When a person receives an email questionnaire and places it in their deleted items without responding they are contributing to . a. Sampling error b. Response error c. Non-response error d. Non-sampling error 20. If a sample containing 30 observations is taken from a normally distributed population and a 98% confidence estimate for U is needed, the appropriate t-score is . a. 2.462 1. The hypothesis of most interest to the researcher is . a. the alternative hypothesis b. the null hypothesis c. both hypotheses are of equal interest d. neither hypothesis is of interest 2. A Type I error occurs when we . a. reject a false null hypothesis b. reject a true null hypothesis c. don't reject a false null hypothesis d. don't reject a true null hypothesis 3. Statisticians can translate p-values into several descriptive terms. Suppose you typically reject H0 at level 0.05. Which of the following statements is incorrect? a. If the p-value < 0.01, there is overwhelming evidence to infer that the alternative hypothesis is true. b. If 0.01 < p-value < 0.05, there is evidence to infer that the alternative hypothesis is true. c. If p-value > 0.10, there is no evidence to infer that the alternative hypothesis is true. d. If the p-value < 0.01, there is overwhelming evidence to infer that the alternative hypothesis is false. 4. In a criminal trial where the null hypothesis states that the defendant is innocent, a Type I error is made when . a. a guilty defendant is found not guilty b. an innocent person is found guilty c. a guilty defendant is found guilty d. an innocent person is found not guilty 5. To take advantage of the information of a test result using the rejection region method and make a better decision on the basis of the amount of statistical evidence we can analyze the . a. p-value b. variance c. CI d. one-tail test 6. An unbiased estimator is . a. any sample statistic used to approximate a population parameter b. a sample statistic, which has an expected value equal to the value of the population parameter c. a sample statistic, which is usually less than the population parameter d. represented by a sample mean, the sample proportion, the sample variance, and the sample standard deviation 7. Thirty-six months were randomly sampled and the discount rate on new issues of 91- day Treasury Bills was collected. The sample mean is 4.76% and the standard deviation is 171.21. What is the unbiased estimate for the mean of the population? a. 29312.86 b. 13.0847 c. 0.0476 d. 4.76% 8. A 98% confidence interval estimate for a population mean is determined to be 75.38 to 86.52. If the confidence level is reduced to 90%, the confidence interval for population mean . a. becomes wider b. remains the same c. becomes narrower d. doubles 9. Suppose the population of blue whales is 8,000. Researchers are able to garnish a sample of oceanic movements from 100 blue whales from within this population. Thus, . a. researchers do not have a sufficient sample size b. researchers need a larger population of blue whales c. the finite population correction factor is necessary d. researchers can ignore the finite population correction factor 10. In the sample proportion, represented by p = x / n, the variable x refers to . a. sample size b. the number of successes in the sample c. sample mean d. the number of collection points in the sample 11. The distribution of the test statistic for analysis of variance is the . a. normal distribution b. Student t-distribution c. F-distribution d. uniform distribution 12. In Fisher's least significant difference (LSD) multiple comparison method, the LSD value will be the same for all pairs of means if . a. all sample means are the same b. all sample sizes are the same c. all population means are the same d. all the population sizes are the same 13. One-way ANOVA is applied to three independent samples having means 10, 13, and 18, respectively. If each observation in the third sample were increased by 30, the value of the F-statistic would . a. increase b. decrease c. remain unchanged d. increase by 30 14. Assume a null hypothesis is found true. By dividing the sum of squares of all observations or SS(Total) by (n - 1), we can retrieve the . a. F-value b. sample variance c. MST d. degrees of freedom 15. Which of the following is true about one-way analysis of variance? a. n1 = n2 = … = nk is not required. b. The grand mean is the mean of specific observations. c. It must determine significant differences between population variance. d. Independent samples are always taken from k samples. 16. A tabular presentation that shows the outcome for each decision alternative under the various states of nature is called a . a. payback period matrix b. decision matrix c. decision tree d. payoff table 17. Which of the following statements is false regarding the expected monetary value (EMV)? a. To calculate the EMV, the probabilities of the states of nature must be already decided upon. b. We choose the decision with the largest EMV. c. In general, the expected monetary values represent possible payoffs. d. To calculate the EMV, the probabilities of at least one of the states of nature must be already decided upon. 18. In the context of an investment decision, is the difference between what the profit for an act is and the potential profit given an optimal decision. a. maximin payoff b. expected monetary value c. an opportunity loss d. the expected payoff 19. The branches in a decision tree are equivalent to . a. only events b. only acts c. events and acts d. only sequences of acts