MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

The administration of a large university is interested in learning about the types of wellness programs that would interest its employees. To do this, they plan to survey a sample of their employees. 1) Suppose that the university randomly selects a school (e.g., the Business School) and surveys all of the individuals (administration, faculty, professional staff, clerical and maintenance) who work in that school. This sampling plan is called A) Systematic sampling B) Stratied sampling C) Cluster sampling D) Simple random sampling E) Convenience sampling 2) Suppose that there are ve categories of employees (administration, faculty, professional staff, clerical and maintenance) and the university decides to randomly select ten individuals from each category. This sampling plan is called A) Stratied sampling B) Cluster sampling C) Simple random sampling D) Convenience sampling E) Systematic sampling ASW, a regional shoe chain, has recently launched an online store. Sales via the Internet have been sluggish compared to their brick and mortar stores, and management suspects that its regular customers have concerns regarding the security of online transactions. To determine if this is the case, management plans to survey a sample of regular customers. 3) Suppose that ASW has an alphabetized list of regular customers who belong to their rewards program. After randomly selecting a customer on the list, every 25th customer from that point on is chosen to be in the sample. This sampling plan is called A) Simple random sampling B) Convenience sampling C) Cluster sampling D) Systematic sampling E) Stratied sampling 4) One member of the management team at ASW suggests that the survey could be conducted online. Customers logging on to the online store would be asked to take a few minutes to complete the survey and would be offered a coupon as incentive to participate. Which of the following statements is true? I. This is a voluntary response sample. II. This would result in an unbiased random sample. III. This would result in a biased sample. A) II only B) III only C) I and II D) I only E) I and III 5) Suppose that ASW's regular customers belong to a rewards program and have a customer rewards ID number. ASW decides to randomly select 100 numbers. This sampling plan is called A) Convenience sampling B) Cluster sampling C) Stratied sampling D) Systematic sampling E) Simple random sampling

A large national retailer of electronics conducted a survey to determine consumer preferences for various brands of digital cameras. The table summarizes responses by brand and gender.

6) The percentage of consumers who are male and prefer Pentax is A) 6.6% B) 44.1% C) 52.6% 7) Of the consumers who are male, the percentage who prefer Pentax is A) 52.6% B) 12.5% C) 6.6% 8) The following bar chart for these data shows

D) 12.5%

E) 14.9%

D) 44.1%

E) 14.9%

A) the marginal distribution of gender. B) the conditional distribution of gender. C) the conditional distribution of brands. D) the marginal distribution of brands. E) None of the above

9) Here is the side -by -side bar chart for these data.

Which of the following statements is true? A) More males than females prefer Canon. B) More females than males prefer Pentax. C) The graph shows the marginal distributions. D) It appears that camera preference and gender are independent. E) It appears that camera preference and gender are not independent. 10) Which is true? I. Random scatter in the residuals indicates a model with high predictive power. II. If two variables are very strongly associated, then the correlation between them will be near +1.0 or -1.0. III. The higher the correlation between two variables the more likely the association is based in cause and effect. A) I only B) None C) II only D) I and II E) I, II, and III 11) For families who live in apartments the correlation between the family's income and the amount of rent they pay is r = 0.40. Which is true? I. In general, families with higher incomes pay more in rent. II. On average, families spend 40% of their income on rent. III. The regression line passes through 40% of the (income$, rent$) data points. A) II only B) I only C) I, II, and III D) I and III E) I and II

Following are a histogram and the ve number salary for salaries (in $) for a sample of U.S. marketing managers.

12) The shape of the distribution is A) symmetrical. B) bimodal. C) left skewed. D) normal. E) right skewed. 13) The most appropriate measure of central tendency for these data is the A) median. B) standard deviation. C) range. D) mean. E) mode. 14) The IQR for these data is A) $14,566. B) $22,057.

C) $77,020.

D) $83,060.

E) $69,693.

15) Suppose the marketing manager who was earning $129,420 got a raise and is now earning $140,000. Which of the following statement is true? I. The mean would increase. II. The median would increase. III. The range would increase. A) I and III B) I only C) I, II and III D) II only E) III only

The following scatterplot shows monthly sales gures (in units) and number of months of experience on the job for a sample of 19 salespeople.

16) The correlation between monthly sales and level of experience is most likely A) -0.914. B) -0.235. C) 0.914. D) 0. 17) The association between monthly sales and level of experience can be described as A) negative and strong. B) positive and weak. C) nonlinear. D) negative and weak. E) positive and strong.

E) 0.180.

18) If the point in the upper left corner of the scatterplot shown below is removed, what will happen to the correlation (r)?

A) r will decrease. B) r will increase. C) r will not change. D) r will become negative. E) None of the above.

19) A regression analysis of company prots and the amount of money the company spent on advertising produced a R 2 = 0.72. Which of these is true? I. This model can correctly predict the prot for 72% of companies. II. 72% of the variance in company prot can be accounted for by the model. III. On average, companies spend about 72% of their prots on advertising. A) I and III B) None C) II only D) III only E) I only Boxplots of earnings per share (EPS) data for a sample of retail company stocks and a sample of energy company stocks are shown below.

20) Which of the following statements is correct? A) The median EPS is higher for energy stocks compared to retail stocks. B) The IQR for the EPS data is larger for retail stocks than for energy stocks. C) The median EPS is higher for retail stocks compared to energy stocks. D) The mean is higher for energy stocks compared to retail stocks. E) The EPS data are more variable for retail stocks than for energy stocks. 21) Which of the following statement is true about the distributions of EPS for retail and energy stocks? A) The distribution of EPS for retail stocks is skewed to the right. B) The distribution of EPS for retail stocks is skewed to the left. C) The distribution of EPS for energy stocks is symmetric. D) The distribution of EPS for energy stocks is skewed to the left. E) Both distributions of EPS are symmetric.

A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many pounds of each variety of coffee were sold last month. The data, scatterplot, and summary statistics are shown below.

22) Which of the following statements is true? A) The linearity condition is satised. B) The quantitative variable condition is satised. C) There are no obvious outliers. D) All of the above. E) None of the above. 23) The slope of the estimated regression line that relates the response variable (monthly sales) to the predictor variable (price per pound) is A) -4.681 B) -8.999 C) 0.858 D) 95.47 E) -0.858 24) The intercept of the estimated regression line that relates the response variable (monthly sales) to the predictor variable (price per pound) is A) 0.858. B) -0.858 C) -8.999 D) 95.46 E) -4.684 25) What percent of the variability in the number of pounds of coffee sold per week can be explained by price? A) 95.47% B) 100% C) 55.6% D) 4.68% E) 85.9%

26) The linear relationship between number of pounds of coffee sold per week and price is best described as A) weak and negative. B) nonexistent. C) strong and negative. D) weak and positive. E) strong and positive. 27) If the price per pound increases by $2, the numbers of pounds sold , on average, will A) increase by 8.999 B) decrease by 8.999 C) decrease by 9.362 D) increase by 9.362 E) None of the above

28) Which is true of the data shown in the histogram?

I. The distribution is approximately symmetric. II. The mean and median are approximately equal. III. The median and IQR to summarize these data summarize the data better than the mean and standard deviation. A) III only B) I only C) I and II D) I and III E) I, II, and III 29) Real estate agencies also keep track of housing prices in a given area. Suppose they also provide their clients with quarterly median selling prices for homes in a given area for the past three year period. These data are A) Time Series B) Ordinal C) Cross-sectional D) Categorical E) Nominal

During its grand-opening week, Stickler's bicycle shop offers a "wheel of discount savings." After customers select the items they wish to purchase, they spin the wheel to determine the discount they will receive. The wheel is divided into 12 slices. Six slices are red and award a 10% discount, three slices are white and award a 20% discount, and two slices are blue and award a 40% discount. The remaining slice is gold and awards a 100% discount!

30) The probability that a customer gets a 10% or 20% discount is A) 10/12 B) 3/12 C) 9/12 31) The probability that a customer gets at least a 40% discount is A) 10/12 B) 2/12 C) 0.0625 32) The probability that two customers in a row get a 20% discount is A) 0.0625 B) 2/12 C) 3/12

D) 0.0625

E) 2/12

D) 9/12

E) 3/12

D) 10/12

E) 9/12

The option to buy extended warranties is commonplace with most electronics purchases. But does the type of purchase affect a consumer's willingness to pay extra for an extended warranty? Data for 420 consumers who purchased digital cameras and laptop computers from a leading electronics retailer are summarized in the table.

33) The probability that a consumer purchases a digital camera or an extended warranty is A) 0.17 B) 0.07 C) 0.52 D) 0.58

E) 0.83

34) The probability that a consumer purchases an extended warranty given that he or she has purchased a digital camera is A) 0.17 B) 0.42 C) 0.07 D) 0.58 E) 0.83

35) Which of the following statements is true? A) The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are related. B) The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are independent. C) The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are not independent. D) The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are mutually exclusive. E) The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are disjoint events. 36) Roll two dice. If the sum of the faces is greater than or equal to 10 then the probability to see at least one 5 is A) 1/3 B) 1/2 C) 2/3 D) 1/4 E) 2/5

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Answer Key Testname: T1

1) C 2) A 3) D 4) E 5) E 6) A 7) E 8) D 9) E 10) B 11) B 12) E 13) A 14) B 15) A 16) C 17) E 18) B 19) C 20) C 21) B 22) D 23) A 24) D 25) E 26) C 27) C 28) C 29) A 30) C 31) E 32) A 33) C 34) B 35) B 36) B

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