AAEC 3401

Test 1

Name
SS#

MULTIPLE CHOICE (3 points each). Choosethe one alternativethat bestcompletesthe statementor

answersthe question

1) Which of the follor,vingis not true of statistics?

A) Statisticsinvolvescollectingand summarizingdata.
B) Statisticscan be used to organize and analyzeinformatron.
C) Statisticsis used to answer questionswith 100%certainty,
D) Statisticsis used to draw conclusions
usins data.
2) Classifythe number of seatsin a movie theateras qualitativedata or qqantitativedata.
A) quantitative data

B) quaiitative data

3) What method of data coliectionwould you use to collectdatafor a study where a drug was given to 24
patients
and a placeboto anothergroup of 24 patientsto determineif the drug has ar-reffecton a patiept'sillness?
A) designedexperiment
B) observationalstudv
4) At a localcommunitv college,five statisticsclassesare randomlv selectedand all of the studentsfrom
eachclass
are interviewed. What sampling techniclueis used?
A) stratified
B) random
C) systematic
D) convenience
E) cluster
5) A sampleconsistsof every 1Othstudentfrom a group of 2000students.What samplingtechniquewas
used?
A) random
B) cluster
C) systematic
D) stratified
E) convenience
6) Over the last 10 years four mutual funds all had the samemean rate of retum, 12%. Thesemutual
funcishad
different siandard deviations as follows: Mutual Money 8%, Co-joined Investments6%,,TogetherFund 4%,
All
for One Fund 9%. \,Vhichmutual ftrnd investmentis the most consistentin rate of return?
A) Mutual Money
B) Co-joined lnvestrlents
C) All for One Fund
D) Together Fund
7) A researcherwants to studir the effectsof advertisingby female pop starsr"rponmiddle schoolp5irlsin
srnali
Midr'r'esterntowns. The researchmethodology calls for selectingseveralsmall Micirvesterntow-nsihat have
middle schools.What is the frame for this study?
A) Middie schoolstudentsfrom the small Midwestern towns selected
B) All middle schoolgirls from small Midwestern tor,r.ns
C) All studentsattendingmiddle schoolfrom srnailMicrwesternrowns
D) Middle schoolgirls from the small Midwestern towns selectecl
8) Classify the following random variable according1qvv\ether it is discreteor continnous.
The blood pressureof a group of studentsthe day before their final exam
A) discrete
B) continuous
9) Which branch of statisticsdealswith the organizationand summarization of collecteclinformation?
A) Surveydesign
B) Descriptivestatistics
C) Comptrtatjonal statistics
D) Infererrtialstatistics
10)The number of violent crimescommittedin a city on a given dav in a random sarnpleof 100davs
is a random
variable.
A) continuous

B) discrete

11)'I'he1995pavroll arnountsfor ail major-leaguebaseballteamsare shon'rrbelon'.Anslverthe following qr.restion

concerningthis graph.

17

1995Pqyrollsf BasetlallTeams
{in rnillionsof dollarsi

10
I
E
4
2
0

$0-10$10-20 $20-30$30-.f0$.10-50

What percentageof tire payrollsltere in the $20-30rnillion range?

B) 38er,
C) 599';,
A) 30n1,

D) i07,

12)Describethe shapeof the clistriblrtion

q

*
r
t.

tr
t(

B) skelr,ed to the leit

D) urriiorm

A) symmetric
C) skervedto the right

13)The scoresof the iop ten finishersin a w'omen'sgolf tournamentare Iistedbelow

71 67 67 72 76 72 73 68 72 72
Find the medianscore.
A) 67

B) 72

c) 71

D) 73

oi a variablefrom a population,then the populationmean is

1a) If X1, XZ, X2,...,Xp are the N observations
symbolizedby
A)X

B)s

C)I

D)X

s ro-lr p p l i e s i n b u lO
k .n o n e p a r t i c r . r l a r s h o p p i n g t r i p h e b o r - r g h t 5 r e d p e n. 2s 9a et $a1c h , 3 b l u e
1 5 )J i m t r t r v s h i s s c l ' r o
p e n s a t $ 1 . 4 9 e a c h , 5 g r e e r . r p e n s. T
a9
t $e.a1c h a n d 9 l r l a c k p e n s a t $ 0 . 9 9 e aWchha. t w a s t h e a v e r a g e c o s tao f
pen?
D) $0.e9
B )st.:s
c)$1.29
A) S1.33

16) lf the graph of a distributiorr oi datir shor.r,sthat the graph i*cske\,ec1to the right then the
A) MeaI-r> Median
13)Mean < Meclian
mcc'liattc.rn be macle
C) No conclusion abotrt the relative position of the mean and t1.re
D) Mean = Median
17) Adult [Q scores have a beii-shapecl tiistribr-rtionr,r'itha mean oi 100 and a standard devtation of 15. Use the
Ernpirical Rule to fincl the percentage oi adults r'r,ithscoresbetween 70 and 13t1.

A) 99.7'./,,

B) 100%

c) 68u/,,

D) 95'1,

The circle graph shows the resultsof the studentcouncil presidentialelection.

18)
Str.rdentCor"rncilPresiclent

Tht' circle glap,h shows what percent oi the vote each person rcccivc-cl.
What percent of tlrc votes dicl N4attand Lili receive together?
c)
[3) (r{)'}i,
A.J40',u,

21",,

D) 18%

PROBLEMS. Show all of your work. No points will be giver-rfor an answer without showing horv the answer was obtained.
Draw diagrams (with labelsfor the axes)where appropriate to help explain voLlransrvers.Be sure to put units of
measurementfor vour answers. Points for eachquestion are shown in parentheses.

19) (8 points) A random sample of saleprices of homes yielded the following summarv information:
MIN $41,000
MAX $276,000

25%: $88,000
75"1,:$164,000

Median: $130,000

Constructa box plot for the data.

+_+

50,000

100,000

150,000

200.000

250,000

300,000

350,000

400,000

Comment on a home that had a saleprice of $419,000.

A) The sale price wor-rldbe expectedsinceit falls inside the lower and urpperfences.
B) This value falls outsicletlre upper fenceand is consideredan outlier.
C) This value falls outside of the third quartile, but cannotbe consideredan outlier.
D) This saleprice falls between the lower and upper fences. It can be considereda potential outlier.
20) (5 points) A survey oi 1877American householdsfound that 69%of the householdsown a computer. Iclentifv
the population,the sample,and the individualsin the str.rdv.

2'1) (8 points) The scolcs for a stLrtisticstt-'st;tl: as tollovls:

87 76 L)7 77 L)4 L)1 86 E5 66 89
79 96 51 9.R 83 .\8 82 -54 12 69
C r e a t e a s t e m - a n d - 1 e a fd i s p l a r "f o r i h e d a l a ( u s e t e r n ' sc l i g i t a s t h c s i c m )

22) (7 poittts) The r,r'eishts(iri pror"rnds)

of 35 presclrool childrerr are listed bclon,

25 2a 26 26.\ 27 27 27.5 28 28 28.r

2 9 2 9 . 1 0 3 L l i 0 . 5 i ] 3 1 3 2 3 2 . 53 2 . 1
33 33 3.1 3,t.5 35
40 42 13 .14.6 48

35 37

37 i.q

38

a) Ijind the first c1ualtilr...

Show ;il oi voul r:alcul;rtions.

b ) F i n d t h c t h i l c l o u a r t i l c . S i r o r . ra' i l o f v o u r c a l c u l a t i o n s

c) Find the intertprartilc larrge of tire 35 n'eights listecl.rbtrve. Siron' r,or-rL

calcr-rlatjons

23) (-l0points) Listedbe'lor,r,

are tire AC'i'scoresof 40 ranclon.rlv
selectedstrrder.rts
at a n.rajorr-rniversitr
18
16
26
19

22
25
76
19

13
14
25
11

15
t9
7a
24

24
21
19
20

24
23
17
21

20
25
18
23

19
18
15
22

19
1E
13
19

12
13
21
17

a) Constrr-rct
a ireqnencvclistribrrtiorr
tableshou,ingclasslirnits (12-i3, 14*15,...,26-27),treclr-tencv,
and relative
irequenct,.

b) Constmct a rclatir''cl'rocluenc\,!n1 grlprh of the clata (inclr-rde.rprpropnatelabels ancl a titie)

c) lf the universitl,\,\'antsto .rcceptthe top 90'X,of the "rpplic.rnts,

lvhat shor-rld
thc rninimum scorebe?

d) If the r-rniversitvsets the minimrlm score at 18, vviratLrercentof the applicants vvillbe acceptecl?

24) (8 points) T'lreireigl'rts(in inchcs) rri 6 adr-rltmales are listed belou.. Find thc-sarlprlc variance and standard
dcviation. Shou' the forr-nula(sir-rse.d
and all of vour cillci-rlatior-rs.

65 73 r.4 bi

79 ;1

A A E C3 4 0 l ,T e st# 2
MWF

Name
SS#

Show all of vour work for the naffativequestionsand problems. No points will be given for an
answerwithout showing how the answerwas obtained. Draw diagrams(with labels for the axes)
where appropriateto help explain your answers. Be sureto put units of measurementfor your
answers.Pointsfor eachquestionare shown in parentheses.
1. (4 points)
a) Draw a scatterplot for the correlationof Y and X wherer: 0.10.

X
b) Drawa scatterplot for thecorrelation
of Y andX wherer: -0.94.
Y

2. (I0 points) An economistestimatesa regressionequationto relatethe price of a houseto its

squarefootage(areaof the heatedspaceinsidethe house). The datausedto estimatethe
equationand the estimatedequationare shown below.
Y=HousePrice X=SquareFootage
($1,000's)
80000
1'100
100000
1400
125000
1500
150000
2100
110000
1900
90000
1550

Estimatedleast-squares
regression
equation:
y : 1 8 , 7 9 0+ 5 6 . 7 8 x

a) What is the value of the interceptin the least-squares

regressionequation?

b) Can the intercept be interpretedand explain why or why not?

Interpretthe interceptin one or two sentences.
if that'sappropriate.

c) What is the value of the slopein the least-squares

regressionequation?
Interpretthe slopein one or two sentences(Be sureto provide a precisenumericalexplanationof
the slope).

3. (10 points)The scoreson a testhaveamean of p: 100and a standarddeviationof o: 15. If

a personnelmanagerwishesto selectfrom the top 75o/oof applicantswho take the test,find the
cutoff score. Assumethe variable(test score)is normally distributed. Use a diagram (with
labels) to illustrate your answer.
4. (10 points) The yield of a cottonvariety has a meanof p : 300 poundsper acreand a standard
deviationof o: 90 poundsper acre. What is the probability that the meanyield will be between
350 and 400 poundsper acre? Assumethe variable(testscore)is normally distributed. Use a
diagram (with labels) to illustrate your answer.
5. (10 points) Considerthe following gameof chancewhere a player rolls a pair of fair dice. If
the playerrolls 2, 3,4, or 10,the playerloses$5. If theplayerrolls 5, 6, 8, 9,7I, or 12,the
playerreceives$0 (i.e.,receivesnothing). If the playerrolls a7,the playerwins $5.
a) Constructa probability distributionthat describesthe game(with appropriateheadingsfor the
columns).
b) Computethe expectedvalue of the gamefrom the player's point of view. Show the formula
usedand all of your work.
6. (6 points) The databelow are for the price of a houseand the squarefootageof the house.
Y=HousePrice
($1,000's)
X=SquareFootage
80000
1100
100000
1400
125000
1500
150000
2100
'1'10000
'1900
90000

1550

The correlationcoefficientbetweenhouseprice and squarefootageis 0.80. Calculatethe

coefficientof determination.Interpretthe coefficientof determinationin one or two sentences.

AAEC 3407,Test#2
TR

Name
SS#

Show all of your work for the narrativequestionsand problems. No points will be given for an
answerwithout showinghow the answerwas obtained. Draw diagrams(with labelsfor the axes)
where appropriateto help explain your answers. Be sureto put units of measurementfor your
answers.Points for eachquestionare shown in parentheses.
1. (6 points)
Y
X
5
8
7
9
2
4

a) Use the dataaboveto calculateI r*y. Show all of your calculations.

b) Use the dataaboveto calculate; x2. Show all of your calculations.
2. (10 points) An agriculturaleconomistestimatesa regressionequationto relatecrop yield to
nitrogenuse. The datausedto estimatethe equationand the estimatedequationare shown
below.
Plot
1
z
?

Y=Yield
(pounds/acre)

X=Nitrogen
(pounds/acre)
1200
150
1000
125
1400
200
1250
140
1350
170

Estimatedleast-squares
regression
equation:
j'=492+4.8x

a) What is the value of the interceptin the least-squares

regressionequation?
b) Can the intercept be interpretedand explain why or why not? Interpret the intercept in one or
two sentences,
if that's appropriate.
c) What is the value of the slopein the least-squares
regressionequation?
Interpretthe slopein one or two sentences(Be sureto provide a precisenumericalexplanationof
the slope).

- _ _ - l

3. (10 points)The scoreson atest haveamean of p: i00 and a standarddeviationof o: 12.

Find the two limits (x1 and x2) that includethe middle 50% of test scores.Assumethe variable
(test score)is normally distributed. Use a diagram (with labels) to illustrate your answer.
4. (10 points)The yield of a cottonvarietyhasa meanof p:310 poundsper acreand a standard
deviationof o: 80 poundsper acre. What is the probabilitythat the meanyield will be above
375 poundsper acre? Assumethe variable(testscore)is normally distributed. Use a diagram
(with labels) to illustrate your answer.
5. (8 points) An Excel regressionoutput is shownbelow.
Y=HousePrice

X=Square
Footaqe

($1,000's)
80000
100000
125000
150000
I 10000
90000

11 0 0
1400
1500
2100
1900
1550

SUMMARY
OUTPUT
Regresslon Sfafisfics
MultipleR
0.80170942
R Square
0.642737995
AdjustedR Square
0.553422493
StandardError
16960.84738
Observations
h

ANOVA
df

Regression
Residual
Total

Intercept
X=SquareFootage

1
4
5

SS
MS
F
SiqnificanceF
2070151958 2070151958 7.196265
0.05508
1150681376 287670343.9
3220833333

Coefficients
Standard Error
f Sfaf
P-value
18789.74692
34394.42715 0.546302075 0.613901
56.7813'1084 21.16663631 2.682585461 0.05508

Readthe Excel regressionoutput (above)to answerthe following questions.

a) What is the correlationcoefficient?
b) What is the coefficientof determination?
c) What is the intercept(b0) in the least-squares
regression?
d) What is the slope(b1) in the least-squares
regression?

e) Write the predictionequationthat is usedto predict houseprice basedon squarefootage. For

squarefootageequalto 2000,predict the houseprice (show your calculations).
6. (6 points) An agricultural businesswants to determineif the rainfall in inches can be used to
predict the yield per acre on a wheat farm.
a) Identify the predictor variable and the responsevariable.
b) Identify the dependentvariable.

Test 2 Multiple Choice

MULTIPLE CHOICE (1.7 points each). Choose the one alternative that best completes the statement or answers the question.
1) A die is rolled. The set of equally likely outcomes is {1, 2,3,4,5, 6}. Find the probability of getting a 3.

A)3

B)+
o

q+

D)0

2) For a standard normal curve, find the z-score that separatesthe bottom 90% from the top 10%.

A) 0.28

B) 1.28

c) 7.52

D) 2.81

3) Suppose a brewery has a filling machine that fills 12 ounce bottles of beer. It is known that the amount of beer
poured by this filling machine follows a normal distribution with a mean of 12.37ounces and a standard
deviation of 0.04 ounce. The company is interested in reducing the amount of extra beer that is poured into the
12 ounce bottles. The company is seeking to identify the highest 7.5% of the fill amounts poured by this
machine. For what fill amount are they searching?

A) 12.457

4) In terms of probability, a(n)

A) Sample space

B) 11.913

B) Event

c) 72.087

D) 12.283

- is any processwith uncertain results that can be repeated.

C)Experiment
D) Outcome

5) Given the table of probabilities for the random variable x, does this form a probability distribution? Answer
Yes or No.
x
P(x)

t.,

0.02

7
0.07

2
0.22

0.27

0.42

A)Yes

B) No

A random variable X is normally distributed with Fr= 50. Convert the value of X to aZ-score, if the standard deviation is
as given.
6)X:63;o=3
A)20
B)1
C)63
D)3

7) Find the area under the standard normal curve between z = 0 and z = 3.
A) 0.9987
B) 0.4641
C) 0.4987

D) 0.0010

8) A large national bank chargeslocal companies for using its services.A bank official reported the results of a
regression analysis designed to predict the bank's charges (y), measured in dollars per month, for services
rendered to local companies. One independent variable used to predict service charge to a company is the
company's salesrevenue (x), measured in millions of dollars. Data for 21 companies who use the bank's services
were used to fit the model

* Prx.
y: l3O
The results of the simple linear regression are provided below.

Y=2,700+20x
Interpret the estimate of pg, the y-intercept of the line.
A) All companies will be charged at least $2,700by the bank.
B) About 95o/"of the observed service chargesfall within $2,700of the least squares line.
C) For every $1 million increasein salesrevenue, we expect a service charge to increase$2,700.
D) There is no practical interpretation since a salesrevenue of $0 is a nonsensicalvalue.

9) The least squaresregression line

A) Minimizes the sum of the residuals squared
B) Maximizes the mean difference between the residuals squared
C) Maximizes the sum of the residuals squared
D) Minimizes the mean difference between the residuals squared
10) The random variable x representsthe number of tests that a patient entering a hospital will have along with the
corresponding probabilities. Find the mean and standard deviation for the random variable x.

l 0 1 l 2 l 3 l 4
5 l 6 l 2 l 1
17l17l77l77
A) mean: 1.59;standard deviation: 3.72
C) mean: 2.52: standard deviation: 1.93

B) mean: 3.72; standard deviation: 2.52

D) mean: 1.59;standard deviation: 1.09

11) Which of the following cannot be a probability?

E

A)Y

R\ -R5

c)0

D) 0.001

12) High temperatures in a certain city for the month of August follow a uniform distribution over the interval 65'F
to 90'F. \zVhatis the probability that a randomly selectedAugust day has a high temperature that exceeded

70'F?
A)0.8

B) 0.2

c)0.04

D) 0.4516

13) A researcherdetermines that the linear correlation coefficient is 0.85 for a paired data set. This indicates that
there is
A) A strong positive linear correlation
B) A strong negative linear correlation
C) No linear correlation but that there may be some other relationship
D) Insufficient evidence to make any decision about the correlation of the data
14) The highest point on the graph of the normal density curve is located at
A)pr+o
B) An inflection point
C) Its mean

D)p+3o

Make a scatter diagram for the data. Use the scatter diagram to describe how, if at all, the variables are related.

is)
B C D E r C
9 5 3 8 8 6 7
11 9 5 7 4 1 5 6 15

Subject
x Time watching TV
y Time on Internet
A)

B)

20
l8
l6
t4
t2
l0
8
6
4
2

l8
l6
14
12
l0
8
6
4
2
2 4 6 8 1 0 1 21 4 1 6 1 8 2x 0

2 4 6 I t01214161820x

The variables appear to be

negatively, linearly related.

c)

The variables do not appear to be

linearly related.

D)
20
l8
l6
14
t2
l0
8
6
4
2

20
18
l6
t4
12
l0
8
6
4
2
2 4 6 8 101214161820x

The variables do not appear to be

linearly related.

2 4 6 8 101214161820x

The variables appear to be

positively, linearly related.

16) The table below representsa random sample of the number of deaths per 100 casesfor a certain illness over
time. If a person infected with this illness is randomly selectedfrom all infected people, find the probability that
the person lives 3-4 years after diagnosis.
Number deaths

1-2
3-4
5-6
7-8
9-10
77-12
13-14
15+

15
35
IO

9
6
4
2
IJ

A) --; 0.058
IzU

?5
B)fr;
o'3s

?6

C )f ; 0 . s 3 8
o3

D I;o.ozg
JJ

17) True or False: The area under the normal curve drawn with regard to the population parameters is the same as
the proportion of the population that has these characteristics.
A) False
B) True

18) Find the area under the standard normal curve betwe en z = 7 and z : 2

A) 0.5398

B) 0.1359

c) 0.8413

D) 0.213e

19) An instructor wishes to determine if there is a relationship between the number of absencesfrom his class and a
student's final grade in the course. What is the predictor variable?
A) Absences
B) Student's performance on the final examination
C) The instructor'spoint scalefor attendance
D) Final Grade
20) If the coefficient of determination is close to 1, then
A) The linear correlation coefficient is close to zero.
B) The least squares regressionline equation explains most of the variation in the responsevariable.
C) The least squaresregression line equation has no explanatory value.
D) The sum of the square residuals is large compared to the total variation.
2 1 )G i v e n t h e e q u a t i o n o f a r e g r e s s i o n l i n e i s y = 3 * - l 0 , w h a t i s t h e b e s t p r e d i c t e d v a l u e f o r y g i v e n x = 2 ?
A) 16
B) -5
C) 17
D) -4

The scatter diagram shows the relationship between average number of years of education and births per woman of child
bearing age in selected countries. Use the scatter plot to determine whether the statement is true or false.
22)

Births per Woman

Average number of years of education

of Married Women of Child-Bearing Age
There is a strong positive correlation between years of education and births per woman.
A) False
B) True
23) The
probabilityof an outcomeis obtainedby dividing the frequencyof occurrenceof an event
by the number of trials of the experiment
A)Conditional
B) Subjective
C) Classical
D)Empirical
24) A physical fitness associationis including the mile run in its secondary-school fitness test. The time for this
event for boys in secondary school is known to possessa normal distribution with a mean of 450 secondsand a
standard deviation of 60 seconds.Find the probability that a randomlv selectedbov in secondarv school can run
the mile in less than 312 seconds.

A) .e893

B).s107

c) .48e3

25) Classify the following random variable according to whether it is discrete or continuous.
The height of a player on a basketball team
A) continuous
B) discrete

D) .0107

26) Is there a relationship between the raises administrators at State University receive and their performance on
the iob?
A faculty group wants to determine whether job rating (x) is a useful linear predictor of raise (y). Consequently,
the group considered the straight-line regressionmodel

i=po*pr*
Using the method of least squares, the faculty group obtained the following prediction equation:
Y :14,000 - 2,000x
Interpret the estimated slope of the line.
A) For a 1-point increasein an administrator's rating, we estimate the administrator's raise to decrease
$2,000.
B) For a 1-point increasein an administrator's rating, we estimate the administrator's raise to increase $2,000.
C) For a $1 increasein an administrator's raise, we estimate the administrator's rating to decrease2,000
points.
D) For an administrator with a rating of 1.0,we estimate his/her raise to be $2,000.

27)This problem deals with eye color, an inherited trait. For purposes of this problem, assume that only two eye
colors are possible,brown and blue. We use b to represent a blue eye gene and B a brown eye gene. If any B
genes are present, the person will have brown eyes. The table shows the four possibilities for the children of two
Bb (brown-eyed) parents, where each parent has one of each eye color gene.
SecondParent
B
b
First Parent

B
b

BB
Bb

Bb
bb

Find the probability that theseparents give birth to a child who has blue eyes.
1
A)0
B)c)1
+

D)+

28) Determine whether the following normal probability plot indicates that the sample data could have come from
a population that is normally distributed.

80
70
E 6 0

z"

.t/

/t,

40
30
2E
10
5
1
70

80

A) normally distributed

B) not normallv distributed

29) Classify the following random variable according to whether it is discrete or continuous.
The number of cups of coffee sold in a cafeteria during lunch
A) discrete
B) continuous

AAEC 3401,Test#3
TR

Name
SS#

Show all of vour work for the narrativequestionsand problems. No points will be given for
an answer without showing how the answer was obtained. Draw diagrams(with labelsfor
the axes)where appropriateto help explain your answers.Be sureto put units of measurement
for your answers.Pointsfor eachquestionare shown in parentheses.
1. (10 points) A new variety of plums was developedand test treeswere plantedand grown to
produceplums. The weight of plums from 6 treeswas measuredand the sampleaverageweight
of a plum is shownbelow.

Tree Weight(ounces)
1
3.5
2
4.0
a
J

a J.Z

3.9

s
3.6
6=
4.2
x.....
..3.75
s . . .. . .. . .. . . . . 0
. .38
A commercialorchardwould like to determinewhetherthe newplum hasa highermeanweight
(currentlygrown)plumthathasa meanweightof p:3.25 ounces.
thantheestablished
Carry out a test of the relevant null hypothesisto determinewhether the mean weight of the new
plum is higher than that of the established(cunently grown) plum. Show all 4 stepsof test of a
hypothesis,(1) null and alternative hypotheses;(2) critical value; (3) calculatedvalue; (4)
conclusion. Be sure to clearly number your steps. Use the *:r*ClassicalApproach'(tr'<fbr
testinga hypothesis.Use a significancelevel of a : 0.01. Be sureto clearly interpretyour
conclusionin the contextof the problem.

--l

2. (10 points) The averageannualstartingsalaryof Ag. & Applied Economicsgraduatesis

$44,000. The departmentchairmanis interestedto know the averagestartingsalaryof Ag. &
Applied Economicsgraduateswho take their first job in petroleumland management.The
chairmanwantsto developa95yo confidenceinterval estimate.
Five studentsin the May 2007 graduatingclasstook jobs in petroleumland managementat an
averagesalaryof $47,400. We will assumethis is a randomsample.
(a) Calculatea95yo confidenceinterval. Assumethat o: $5,000. Show all of your calculations.
(b) Interpret the confidenceinterval in one or two sentences.
(c) Basedon the confidenceinterval in Part (a) and using the confidence-intervalapproachto test
a statisticalhypothesis,can you claim that petroleumland managementstudentsreceivedifferent
averagepay than traditionalAg. & Applied Economicsgraduates?Clearly indicatethe
hypothesisbeing testedandjustify your conclusionbasedon the confidence-intervalapproach.
t(t(*Donot usethe ClassicalApproach or the P-valueApproach.
3. (10 points) A recentreport saidthat 8.2o/o
of workersansweredyes to the question,"Did you
use illegal drugswithin the last month?" A managerof a large constructionfirm believesthat
illegal drug use is far higher in his industry. A randomsampleof 300 conshuctionworkerswas
surveyednationwideand askedthe question,"Did you useillegal drugswithin the last month?"
The sampleresultsshowedthat32 respondentsansweredyes to the question. Doesthis confirm
the manager'sbelief?
(a) What is the null hypothesisand alternativehypothesis?
(b) Calculatethe P-value. Be sureto clearly show the stepsin calculatingthe P-value.
(c) Does the datasupportthe manager'sbelief (useu: 0.05)? Justify your conclusionbasedon
the P-valueapproachto testinga hypothesis.
4. (10 points)The meanof the populationis p: 145with standarddeviation6:24. Assumethe
populationis normally distributed
A random sampleof n:36 observationsis drawn from the population. Find the 90tnpercentileof
samplemeans. Use a diagram(with labels)to illustrateyour answer. Show all of your work.
5. (5 points) What is an unbiasedestimate?For example,say you have a populationof the
following observations{4, 5, 10, 3}. Draw all samplesof sizen:2 from this populationand
calculatethe meanof eachof the samples.Basedon theseresults,is the samplemeanan
unbiasedestimateof the populationmean? Justifuyour answer.
6. (5 points) A certainconfidenceinterval is 85 < p < 89.5. Find the samplemean. Show all of
your work.
BONUS: The populationof AAEC starting2007 salariesis normally distributedwith meanp:
$44,000and standarddeviationo: $6,000. Find the proportionof AAEC studentswith starting
salariesbelow $35,000. Use a diagram(with labels)to illustrateyour answer. Show all of your
work.

AAEC 3401,Test#3
MWF

Name
SS#

Show all of vour work for the narrativequestionsand problems. No points will be given for
an answer without showing how the answer was obtained. Draw diagrams(with labelsfor
the axes)where appropriateto help explainyour answers.Be sureto put units of measurement
for your answers.Pointsfor eachquestionare shown in parentheses.
1. (10 points) A grain elevatoroperatorwould like to determineif the protein contentof wheat
from the recentharvestis different from the averageprotein ofprevious years. The averagefor
the previousyearsis I2.5Yoprotein. The operatorselectsa randomsampleof loadsof wheat and
measuresthe protein contentsof the loads. The protein contentsof 5 loadsare shownbelow.
Load
|
2
3
4
5

ProteinContent(%)
12.4
12.9
13
13.4
t2.8

tz.J

U.JO

Carry out a test of the relevantnull hypothesis.Show all 4 stepsof test of a hypothesis,(1) null
and alternative hypotheses;(2) critical value; (3) calculatedvalue; (4) conclusion. Be sure
to clearly number your steps. Use the ***Classical Approach*t<t<
for testinga hypothesis.
Use a significancelevel of s : 0.05. Be sureto clearly interpretyour conclusionin the context
of the problem.
2. (I0 points) Ten yearsago,the averageacreageof farms was 610 acres. The standard
deviationof farm acreswas o : I20. A recentstudy consistingof 22 farms showedthat the
averagewas ;: 645 acresper farm. Test the claim, at a : 0.10,that the averagehasnot
changedusing the P-valueapproach.Assumethat o hasnot changedand the variableis
normally distributed.
(a) What is the null hypothesisand alternativehypothesis?
(b) What is the P-value? Show all the calculationsto justify your answer.
(c) Basedon the P-valueapproachof testinga hypothesis,do you reject or not rejectthe
hypothesis?Show the basisof your conclusion.
(d) If the samplemeanwere to increase,would the P-valueincreaseor decrease?

3. (10 points)The averagepublic elementaryschoolhasp:458 students.Assumethe standard

deviationis o : 97. If a random sampleof 36 public elementaryschoolsis selected,find the
probability that the numberof studentsenrolledis between450 and 465. Use a diagram(with
labels)to illustrateyour answer. Show all of your work.
4. (10 points) A chemicalengineerwantsto estimatethe octanelevel of regulargasoline. A
sampleof size n:25 observationswas takento obtain octanelevels from truck loadsof gasoline.
The samplemeanwas found to be 86.25with standarddeviations:l.50.
(a) Calculate a 99o/oconfidenceinterval for the meanoctanelevel. Show all of your calculations.
(b) Interpretyour conhdenceinterval in one or two sentences.
5. (5 points) Statethe CentralLimit Theoremand explainthe implicationsfor the distributionof
the samplemean.
6. (5 points) A certainconfidenceinterval is 14 < V < 45. Find the margin of error. Show all of
your work.
BONUS: The populationof AAEC startingsalariesfor 2007 is normally distributedwith mean
p: $44,000and standarddeviationo: $6,000. Find the 35 percentileof startingsalariesfor

Test 3 Multiple Choice

MULTIPLE CHOICE (2.5 points each). Choose the one altemative that best completes the statement or answers the question.
1) The amount of money collected by a snack bar at a large university has been recorded daily for the past five
years. Records indicate that the mean daily amount collected is $2800and the standard deviation is $500.The
distribution is skewed to the right due to several high volume days (including football game days). Suppose
that 100 days were randomly selectedfrom the five years and the average amount collected from those days
was recorded. Which of the following describesthe sampling distribution of the sample mean?
A) normally distributed with a mean of $280 and a standard deviation of 950
B) normally distributed with a mean of $2800and a standard deviation of 950
C) normally distributed with a mean of $2800and a standard deviation of $500
D) skewed to the right with a mean of 92800and a standard deviation of $500

2) Suppose a population has a mean of 7 for some characteristicof interest and a standard deviation of 9.6. A
sample is drawn from this population of size 64. \Mhat is the standard error of the mean?

A) 7.2

B)0.1s

c) 0.7

D)3.3

3) The average score of all goifers for a particular course has a mean of 68 and a standard deviation of 5. Suppose
100 golfers played the course today. Find the probability that the average score of the 100 golfers exceeded69.

A) .3707

B) .72e3

c).0228

D) .4772

4) A farmer was interested in determining how many grasshoppers were in his field. Assume the distribution of
grasshoppers is normally distributed. As he drives his tractor down each row he counts how many
grasshoppers he seesflying away. After several rows he figures the mean number of flights tobe 57 with a
standard deviation of 12. \tVhat is the probability of the farmer will count 52 or fewer flights or 60 or more
flights on average in the next 40 rows down which he drives his tractor?

A) 0.49se

B) 0.0530

c) 0.9388

D) 0.0512

5) Professor Whata Guy surveyed of his Introduction to Statistics class of 420 students. One of the questions was
"Will
you take another mathematics class?" The results showed that252 of the students said yes. What is the

sampleproportion,p?
A)0.6

B) 0.775

c) 0.252

D) 0.42

6) If a population proportion is believed to be 0.6, how many items must be in a sample to ensure the normality of
the sampling distributionof
A) 60

p?
B) 42

c) 30

D) 13

7) Smith is a weld inspector at a shipyard. He knows from keeping track of good and substandard welds that for
the aftemoon shift 5"/" of allwelds done will be substandard. If Smith checks 300 of the 7500 welds completed
that shift, what is the probability that he will find less than 20 substandard welds?

A) 0.9066

B) 0.5934

c) 0.4066

D) 0.0934

8) Compute the critical value zop that corresponds to a 95% level of confidence.

A)2.33

B) 1.645

c) 2.57s

D) 1.e6

9) In a sample of 10 randomly selectedwomen, it was found that their mean height was 63.4inches. From
previous studies, it is assumed that the standard deviation, o, is 2.4. Construct the 95% confidence interval for
the population mean.
A) (60.8,65.4)
B) (61.9,64.9)
c) (59.7,66.5)
D) (58.1,67.3)

10) Suppose a 95% confidence interval for p tums out to be (120,300). To make more useful inferences from the
data, it is desired to reduce the width of the confidence interval. Which of the followine will result in a reduced
interval width?
A) L:rcreasethe sample size.
B) Increase the sample size and decrease the confidence level.
C) Decrease the confidence level.
D) All of the choices will result in a reduced interval width.

Determine the sample size needed to estimate p for the given situation.

11)E = 4, o = 35,(1- a) = .90

A) 207

B) 208

c)295

D)4

12) Let tg be a specific value of t. Find t6 such that the following statement is true:
P(t z tg) = .1 where df = 20
A) -1.328

B) 1.328

c) 1.325

D) -1.325

13) Construct a95% confidence interval for the population mean, pr.Assume the population has a normal
distribution. A sample of 20 college students had mean annual earnings of $3120with a standard deviation of s

:9677.
A) ($1.324,
$1567)

14)A
A)Fact

B) ($2803,$3437)

c) ($26s7,
$2891)

D) ($213s,$2567)

is a statement or claim regarding a characteristicof one or more populations.

B)Hypothesis
C) Conjecture
D) Conclusion

15) If we reject the null hypothesis when the null hypothesis is true, then we have made a
A) Correct decision
B) Type II error
C) Type a error

D) Type I error

16) The mean age of bus drivers in Chicago is 56.2 years. If a hypothesis test is performed, how should you interpret
a decision that rejects the null hypothesis?
A) There is sufficient evidence to support the claim V= 56.2.
B) There is not sufficient evidence to support the claim V=56.2.
C) There is not sufficient evidence to reject the claim V = 56.2.
D) There is sufficient evidence to reject the claim V= 56.2.
17) Civen Hg: ;r = 25,H1: '4*25, and P :0.028. Do you reject or fail to reject Hg at the 0.01 level of significance?
A) not sufficient information to decide
B) fail to reject Hg
C) reject Hg

18) True or False: Results that are statistically significant are always practically significant.
A) False
B) True
1 9 )F i n d t h e s t a n d a r d i z e d t e s t s t a t i s t i c t f o r a s a m p l e w i t h n = 1 2 , * = t S . Z , s = 2 . 2 , a n d a = 0 . 0 1

if Hg: p = 14. Round

your answer to three decimal places.

A) 2.132

B) 1.890

c) 1,.ee1

D) 2.001

20) h a sample, 76 people or 38Y" of the people in the sample said that the mayor should be prosecuted for
misconduct. How many people where in the sample?

A) 50

B) 200

c) 105

D) 29