CHAPTER SEVEN Sampling and Sampling Distributions

B 1. Saving time and money are reasons to take a _______________ rather than a census. A. B. C. D. 2. poll sample profile Fishbone

E Term

D E Term

Which of the following is NOT a reason for using a sample, rather than a census? A. B. C. D. sampling saves time sampling saves money some testing procedures are destructive some testing procedures are deductive

203

204 Test Bank C 3. Which of the following is a random sampling technique? E Term A. B. C. D. 4. judgment sampling systematic sampling quota sampling convenience sampling

A E Term

Which of the following is a nonrandom sampling technique? A. B. C. D. quota sampling systematic sampling cluster sampling stratified sampling

B E Term

5.

A major limitation of nonrandom samples is __________. A. B. C. D. they are more expensive they are not appropriate for most statistical methods they require more time they require more planning

6.

The directory or map from which a sample is taken is called the ______________. A. B. C. D. population census profile frame

M Term

7.

A business writer wants to assess the Shelby County business community's attitude toward a proposed value-added tax. He selects his sample from the Chamber of Commerce membership list. The membership list is ____________. A. B. C. D. a frame the writer's target population the writer's sampling distribution a census

M BApp

Chapter 7: Sampling and Sampling Distributions B 8.

205

Kristen Ashford purchased the subscribers list for Wind Surfing magazine. She wants to survey a sample of wind surfers for her mail order business. She chooses her sample from the Wind Surfing subscribers list. The subscribers list is ____________. A. B. C. D. Kristen's target population a frame a census Kristen's sampling distribution

M BApp

9.

Catherine Chao, Director of Marketing Research, needs a sample of Kansas City households to participate in the testing of a new toothpaste package. She plans to randomly select the households from the residential pages of the telephone directory. The residential pages of the telephone directory is _________. A. B. C. D. Catherine's sampling distribution Catherine's target population a frame a poll

M BApp

10.

Financial analyst Larry Potts needs a sample of securities listed on the New York Stock Exchange. He decides to select the sample from the Wall Street Journal's "New York Exchange Composite Transactions," an alphabetical listing of all securities traded on the previous business day. The "New York Exchange Composite Transactions" is ______________. A. B. C. D. a poll a frame Larry's sampling distribution Larry's target population

M BApp

11.

The two major categories of sampling methods are _________________. A. B. C. D. quota and convenience random and nonrandom stratified and cluster proportionate and disproportionate

M Term

206 Test Bank B 12. If every unit of the population has the same probability of being selected to the sample, then the researcher is probably conducting _______. E Term A. B. C. D. nonrandom sampling random sampling judgment sampling equivalent sampling

13.

The most elementary type of random sampling is _______. A. B. C. D. stratified sampling simple random sampling cluster sampling judgment sampling

E Term

14.

With ______ random sampling, there is homogeneity within a subgroup or stratum. A. B. C. D. judgmental simple cluster stratified

M Term

15.

If a researcher selects every kth item from a population of N items, then she is likely conducting ______ random sampling. A. B. C. D. judgmental systematic cluster stratified

M Term

16.

A nonrandom sampling technique in which elements are selected for the sample based on the convenience of the researcher is called ________ sampling. A. B. C. D. judgment quota convenience error free

E Term

Chapter 7: Sampling and Sampling Distributions B 17.

207

A nonrandom sampling technique which is similar to stratified random sampling is called _______ sampling. A. B. C. D. judgment quota convenience error free

M Term

18.

________ error occurs when, by chance, the sample is not representative of the population. A. B. C. D. Sampling Telescoping Detail Nonsampling

E Term

19.

Kristen Ashford purchased the subscribers list for Wind Surfing magazine. She plans to survey a sample of the subscribers before using the list in her mail order business. She chooses the first 100 of the 5,000 names. Her sample is a _________. A. B. C. D. simple random sample stratified sample systematic sample convenience sample

E BApp

20.

Kristen Ashford purchased the subscribers list for Wind Surfing magazine. She plans to survey a sample of the subscribers before using the list in her mail order business. She randomly selects the fourth name as a starting point and then selects every 50th subsequent name (54, 104, 154, etc.). Her sample is a _________. A. B. C. D. simple random sample stratified sample systematic sample convenience sample

E BApp

208 Test Bank A 21. Kristen Ashford purchased the subscribers list for Wind Surfing magazine. She plans to survey a sample of the subscribers before using the list in her mail order business. The names are numbered consecutively from 1 to 5,000. Kristen chooses her sample by selecting four-digit numbers (1 to 5,000) from a random number table. Her sample is a _________. E BApp A. B. C. D. simple random sample stratified sample systematic sample convenience sample

22.

Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system. She knows that 2,500 payroll vouchers have been issued since January 1, 2000, and her staff doesn't have time to inspect each voucher. So, she orders her staff to inspect the last 200 vouchers. Her sample is a ___________. A. B. C. D. stratified sample simple random sample convenience sample systematic sample

E BApp

23.

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

E BApp

Chapter 7: Sampling and Sampling Distributions B 24.

209

Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system. She knows that 2,500 payroll vouchers have been issued since January 1, 2000, and her staff doesn't have time to inspect each voucher. The vouchers are numbered consecutively from 1 to 2,500. Pinky's staff chooses her sample by selecting four-digit numbers (1 to 2,500) from a random number table. Her sample is a ___________. A. B. C. D. stratified sample simple random sample convenience sample systematic sample

E BApp

25.

Financial analyst Larry Potts needs a sample of 100 securities listed on the New York Stock Exchange. He chooses the first 100 securities listed in the Wall Street Journal's "New York Exchange Composite Transactions," an alphabetical listing of all securities traded on the previous business day. Larry's sample is a ____________. A. B. C. D. convenience sample simple random sample systematic sample stratified sample

E BApp

26.

Financial analyst Larry Potts needs a sample of 100 securities listed on the New York Stock Exchange. In the current issue of the Wall Street Journal, 2,531 securities are listed in the "New York Exchange Composite Transactions," an alphabetical listing of all securities traded on the previous business day. Larry uses a table of random numbers to select 100 numbers between 1 and 2,531. His sample is a ____________. A. B. C. D. quota sample simple random sample systematic sample stratified sample

E BApp

210 Test Bank D 27. Financial analyst Larry Potts needs a sample of 100 securities listed on the New York Stock Exchange. In the current issue of the Wall Street Journal, 2,531 securities are listed in the "New York Exchange Composite Transactions," an alphabetical listing of all securities traded on the previous business day. Larry randomly selects the 7th security as a starting point, and selects every 25th security thereafter (7, 32, 57, etc.). His sample is a ____________. E BApp A. B. C. D. quota sample simple random sample stratified sample systematic sample

28.

Financial analyst Larry Potts needs a sample of 100 securities listed on either the New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX). According to the Wall Street Journal's "Stock Market Data Bank," 2,531 NYSE securities and AMEX 746 securities were traded on the previous business day. Larry directs his staff to randomly select 77 NYSE and 23 AMEX securities. His sample is a ____________. A. B. C. D. disproportionate systematic sample disproportionate stratified sample proportionate stratified sample proportionate systematic sample

M BApp

29.

On Saturdays, cars arrive at David Zebda's Scrub and Shine Car Wash at the rate of 80 cars per hour during the ten-hour shift. David wants a sample of 40 Saturday customers to answer the long version of his quality service questionnaire. He instructs the Saturday crew to select the first 40 customers. His sample is a __________. A. B. C. D. convenience sample simple random sample systematic sample stratified sample

E BApp

Chapter 7: Sampling and Sampling Distributions C 30.

211

On Saturdays, cars arrive at David Zebda's Scrub and Shine Car Wash at the rate of 80 cars per hour during the ten-hour shift. David wants a sample of 40 Saturday customers to answer the long version of his quality service questionnaire. He randomly selects 9 as a starting point and instructs the crew to select the 9th customer and each customer at intervals of 20 ( 9, 29, 49, etc.). His sample is a __________. A. B. C. D. convenience sample simple random sample systematic sample stratified sample

E BApp

31.

Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the service level provided to walk-in customers. Accordingly, he plans a sample of waiting times for walk-in customers. Albert instructs his staff to record the waiting times for the first 45 walk-in customers arriving after the noon hour. Albert's sample is a ________. A. B. C. D. simple random sample systematic sample convenience sample stratified sample

E BApp

32.

Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the service level provided to walk-in customers. Accordingly, he plans a sample of waiting times for walk-in customers. Albert randomly selects 4 as a starting point and instructs his staff to record the waiting times for the 4th walk-in customer and every 10th customer thereafter (4, 14, 24, etc.). Albert's sample is a ________. A. B. C. D. simple random sample systematic sample convenience sample stratified sample

E BApp

212 Test Bank D 33. A carload of palletized aluminum castings has arrived at Mansfield Motor Manufacturers. The car contains 1,000 pallets of 100 castings each. Mario Munoz, manager of Quality Assurance, directs the receiving crew to deliver the 127th and 869th pallets to his crew for 100% inspection. Mario randomly selected 127 and 869 from a table of random numbers. Mario's sample of 200 castings is a _____________. M BApp A. B. C. D. simple random sample systematic sample stratified sample cluster sample

34.

A carload of steel rods has arrived at Cybermatic Construction Company. The car contains 1,000 bundles of 50 rods each. Claude Ong, manager of Quality Assurance, directs the receiving crew to deliver the 63th and 458th bundles to his crew for 100% inspection. Claude randomly selected 63 and 458 from a table of random numbers. Claude's sample of 100 rods is a _____________. A. B. C. D. cluster sample simple random sample quota sample systematic sample

M BApp

35.

Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the Harrison Haulers Plant. Abel knows that absenteeism varies significantly between departments. For example, workers in the wood shop are absent more than those in the tuning department and the size of the departments ranges from 40 to 120 workers. He orders a random sample of 10 workers from each of the six departments. Abel' sample is a ________________. A. B. C. D. proportionate systematic sample proportionate stratified sample disproportionate systematic sample disproportionate stratified sample

E BApp

Chapter 7: Sampling and Sampling Distributions B 36.

213

Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the Harrison Haulers Plant. Abel knows that absenteeism varies significantly between departments. For example, workers in the wood shop are absent more than those in the tuning department and the size of the departments ranges from 40 to 120 workers. He orders a random sample of 10% of the workers from each of the six departments. Abel' sample is a ________________. A. B. C. D. proportionate systematic sample proportionate stratified sample disproportionate systematic sample disproportionate stratified sample

E BApp

37.

Catherine Chao, Director of Marketing Research, needs a sample of households to participate in the testing of a new toothpaste package. She chooses thirty-six of her closest friends. Catherine's sample is a _____________. A. B. C. D. cluster sample convenience sample quota sample systematic sample

E BApp

38.

Catherine Chao, Director of Marketing Research, needs a sample of households to participate in the testing of a new toothpaste package. She directs the seven members of her staff to find five households each. Catherine's sample is a _____________. A. B. C. D. cluster sample proportionate stratified sample quota sample disproportionate stratified sample

E BApp

39.

Catherine Chao, Director of Marketing Research, needs a sample of households to participate in the testing of a new toothpaste package. She narrows the selection by first randomly selecting 5 census tracts in the city; then the sample is randomly selected from the five tracts Catherine's sample is a _________. A. B. C. D. cluster sample proportionate stratified sample quota sample disproportionate stratified sample

M BApp

214 Test Bank D 40. Catherine Chao, Director of Marketing Research, needs a sample of households to participate in the testing of a new toothpaste package. She estimates there are approximately 69,000 entries in the residential pages of the telephone directory, randomly selects 152 as the starting point, and instructs her staff to select every 227th entry. Catherine's sample is a _________. E BApp A. B. C. D. cluster sample proportionate stratified sample disproportionate stratified sample systematic sample

41.

The eight employees of the Tuning Department and their years of experience are listed in the following table. Employee A B C D E F G H Experience (years) 10 2 1 1 15 7 4 8 If a sample of two employees is selected with replacement, the number of elementary outcomes in the sample space is _______________. A. B. C. D. 56 64 336 512

M BCalc

42.

The eight employees of the Tuning Department and their years of experience are listed in the following table. Employee A B C D E F G H Experience (years) 10 2 1 1 15 7 4 8 If a sample of three employees is selected with replacement, the number of elementary outcomes in the sample space is _______________. A. B. C. D. 56 64 336 512

M BCalc

Chapter 7: Sampling and Sampling Distributions B 43.

215

The eight employees of the Tuning Department and their years of experience are listed in the following table. Employee A B C D E F G H Experience (years) 10 2 1 1 15 7 4 8 If a sample of two employees is selected with replacement, which of the following is not a possible value of the sample mean years of experience? A. B. C. D. 2.5 6.5 8.5 12.5

M BCalc

44.

The eight employees of the Tuning Department and their years of experience are listed in the following table. Employee A B C D E F G H Experience (years) 10 2 1 1 15 7 4 8 If a sample of two employees is selected without replacement, the number of elementary outcomes in the sample space is _______________. A. B. C. D. 56 64 336 512

M BCalc

45.

The eight employees of the Tuning Department and their years of experience are listed in the following table. Employee A B C D E F G H Experience (years) 10 2 1 1 15 7 4 8 If a sample of three employees is selected without replacement, the number of elementary outcomes in the sample space is _______________. A. B. C. D. 56 64 336 512

M BCalc

216 Test Bank D 46. The eight employees of the Tuning Department and their years of experience are listed in the following table. Employee A B C D E F G H Experience (years) 10 2 1 1 15 7 4 8 If a sample of two employees is selected without replacement, which of the following is not a possible value of the sample mean years of experience? M BCalc A. B. C. D. 9 12.5 4 2

47.

A sampling distribution is a distribution of _______________. A. B. C. D. excess profits to selected shareholders. a sample statistic, such as, x . a population parameter, such as, . a population attribute, such as, employees age.

E Term

48.

The standard deviation of a sampling distribution is commonly called _______. A. B. C. D. statistical leverage. the uniform spread. statistical margin. the standard error.

E Term

49.

The standard deviation of the sampling distribution of x is commonly called the _______ of the mean. A. B. C. D. standard error uniform spread statistical margin statistical leverage

E Term

50.

The standard deviation of the sampling distribution of p is commonly called the _______ of the proportion.

E Term

A. B. C. D.

uniform spread standard error statistical margin statistical leverage

51.

The central limit theorem states that if n is large enough, the distribution of the

Chapter 7: Sampling and Sampling Distributions sample means is _____________ distributed regardless of the shape of the population. E Term A. B. C. D. approximately normally uniformly randomly nonrandomly

217

52.

According to the central limit theorem, the mean of the sample means for a given size of sample is equal to _______. A. B. C. D. the population mean divided by n the population mean the population mean divided by the square root of n zero

E Term

53.

The smallest sample size that should be used when relying on the central limit theorem is __________. A. B. C. D. 20 30 40 50

E Term

54.

The central limit theorem is applicable only __________________. A. B. C. D. to symmetrical populations to unimodal populations when the sample size is 30 or more to leptokurtic populations

E Term

55.

The central limit theorem is applicable __________________. A. B. C. D. only to symmetrical populations only to unimodal populations when the sample size is 20 or more regardless of the shape of the population distribution

M Term

218 Test Bank A 56. If the sample size is sufficiently large, according to the central limit theorem, the sample means are approximately ____________________. E Term A. B. C. D. normally distributed exponentially distributed uniformly distributed geometrically distributed

57.

According to the central limit theorem, if a sample of size 100 is drawn from a population with a mean of 80, the mean of all sample means would equal _______. A. B. C. D. 0.80 8 80 100

E Calc

58.

According to the central limit theorem, if a sample of size 64 is drawn from a population with a mean of 56, the mean of all sample means would equal _______. A. B. C. D. 7.00 56.00 64.00 0.875

E Calc

59.

According to the central limit theorem, if a sample of size 100 is drawn from a population with a standard deviation of 80, the standard deviation of sample means would equal _______. A. B. C. D. 0.80 8 80 800

E Calc

60.

According to the central limit theorem, if a sample of size 64 is drawn from a population with a standard deviation of 80, the standard deviation of sample means would equal _______. A. B. C. D. 10.000 1.250 0.125 0.800

E Calc

Chapter 7: Sampling and Sampling Distributions

219

61.

Increasing the sample size causes the standard error of the mean to ________. A. B. C. D. destabilize in value decrease in value seek market equilibrium increase in value

E Term

62.

Increasing the sample size causes the sampling distribution of x to ________. A. B. C. D. shift to the right shift to the left have more dispersion have less dispersion

M Term

63.

According to the central limit theorem, for samples of size 64 drawn from a population with = 800 and = 56, the mean of the sampling distribution of sample means would equal _______. A. B. C. D. 7 8 100 800

E Calc

64.

According to the central limit theorem, for samples of size 64 drawn from a population with = 800 and = 56, the standard deviation of the sampling distribution of sample means would equal _______. A. B. C. D. 7 8 100 800

E Calc

65.

According to the central limit theorem, for samples of size 169 drawn from a population with = 1,014 and = 65, the mean of the sampling distribution of sample means would equal _______. A. B. C. D. 1,014 65 5 6

E Calc

66.

According to the central limit theorem, for samples of size 169 drawn from a

220

Test Bank population with = 1,014 and = 65, the standard deviation of the sampling distribution of sample means would equal _______. A. B. C. D. 67. 1,014 65 5 6

E Calc

Suppose a population has a mean of 90 and a standard deviation of 28. If a random sample of size 49 is drawn from the population, the probability of drawing a sample with a mean of more than 95 is _______. A. B. C. D. 0.1056 0.3944 0.4286 0.8944

M Calc

68.

Suppose a population has a mean of 90 and a standard deviation of 28. If a random sample of size 49 is drawn from the population, the probability of drawing a sample with a mean of less than 84 is _______. A. B. C. D. 0.9332 0.0668 0.4332 0.8664

M Calc

69.

Suppose a population has a mean of 90 and a standard deviation of 28. If a random sample of size 49 is drawn from the population, the probability of drawing a sample with a mean between 85 and 95 is _______. A. B. C. D. 0.1056 0.3944 0.7888 0.2112

M Calc

Chapter 7: Sampling and Sampling Distributions A 70. Suppose a population has a mean of 90 and a standard deviation of 28. If a random sample of size 49 is drawn from the population, the probability of drawing a sample with a mean between 80 and 100 is _______. A. B. C. D. 71. 0.9876 0.0124 0.4938 0.0062

221

M Calc

Suppose a population has a mean of 400 and a standard deviation of 24. If a random sample of size 144 is drawn from the population, the probability of drawing a sample with a mean of more than 404.5 is _______. A. B. C. D. 0.0139 0.4861 0.4878 0.0122

M Calc

72.

Suppose a population has a mean of 400 and a standard deviation of 24. If a random sample of size 144 is drawn from the population, the probability of drawing a sample with a mean between 395.5 and 404.5 is _______. A. B. C. D. 0.9756 0.0244 0.0278 0.9722

M Calc

73.

Suppose a population has a mean of 400 and a standard deviation of 24. If a random sample of size 144 is drawn from the population, the probability of drawing a sample with a mean less than 402 is _______. A. B. C. D. 0.3413 0.6826 0.8413 0.1587

M Calc

222 Test Bank D 74. Suppose a population has a mean of 450 and a variance of 900. If a random sample is size 100 is drawn from the population, the probability that the sample mean is between 448 and 453 is _______. M Calc A. B. C. D. 75. 0.4972 0.6826 0.4101 0.5899

Suppose a population has a mean of 870 and a variance of 1,600. If a random sample is size 64 is drawn from the population, the probability that the sample mean is between 860 and 875 is _______. A. B. C. D. 0.9544 0.6826 0.8185 0.5899

M Calc

76.

Suppose a population has a mean of 870 and a variance of 8,100. If a random sample is size 36 is drawn from the population, the probability that the sample mean is between 840 and 900 is _______. A. B. C. D. 0.9544 0.6826 0.8185 0.5899

M Calc

77.

Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the service level provided to walk-in customers. Accordingly, he plans a sample of waiting times for walk-in customers. If the population of waiting times has a mean of 15 minutes and a standard deviation of 4 minutes, the probability that Albert's sample of 64 will have a mean less than 14 minutes is a ________. A. B. C. D. 0.4772 0.0228 0.9772 0.9544

M BCalc

Chapter 7: Sampling and Sampling Distributions C 78.

223

Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the service level provided to walk-in customers. Accordingly, he plans a sample of waiting times for walk-in customers. If the population of waiting times has a mean of 15 minutes and a standard deviation of 4 minutes, the probability that Albert's sample of 64 will have a mean less than 16 minutes is a ________. A. B. C. D. 0.4772 0.0228 0.9772 0.9544

M BCalc

79.

Albert Abbasi, VP of Operations at Ingleside International Bank, is evaluating the service level provided to walk-in customers. Accordingly, he plans a sample of waiting times for walk-in customers. If the population of waiting times has a mean of 15 minutes and a standard deviation of 4 minutes, the probability that Albert's sample of 64 will have a mean between 13.5 and 16.5 minutes is a ________. A. B. C. D. 0.9974 0.4987 0.9772 0.4772

M BCalc

80.

A carload of steel rods has arrived at Cybermatic Construction Company. The car contains 50,000 rods. Claude Ong, manager of Quality Assurance, directs his crew measure the lengths of 100 randomly selected rods. If the population of rods have a mean length of 120 inches and a standard deviation of 0.05 inch, the probability that Claude's sample has a mean greater than 120.0125 inches is _____________. A. B. C. D. 0.0124 0.0062 0.4938 0.9752

M BCalc

224 Test Bank D 81. A carload of steel rods has arrived at Cybermatic Construction Company. The car contains 50,000 rods. Claude Ong, manager of Quality Assurance, directs his crew measure the lengths of 100 randomly selected rods. If the population of rods have a mean length of 120 inches and a standard deviation of 0.05 inch, the probability that Claude's sample has a mean less than 119.985 inches is _____________. M BCalc A. B. C. D. 0.9974 0.0026 0.4987 0.0013

82.

A carload of steel rods has arrived at Cybermatic Construction Company. The car contains 50,000 rods. Claude Ong, manager of Quality Assurance, directs his crew measure the lengths of 100 randomly selected rods. If the population of rods have a mean length of 120 inches and a standard deviation of 0.05 inch, the probability that Claude's sample has a mean less than 119.985 and 120.0125 inches is ____________. A. B. C. D. 0.9925 0.9974 0.9876 0.9544

M BCalc

83.

Increasing the sample size causes the standard error of the proportion to _____. A. B. C. D. decrease in value destabilize in value oscillate grow larger

E Term

84.

Increasing the sample size causes the sampling distribution of p to ________.

M Term

A. B. C. D.

shift to the right one standard deviation have less dispersion have more dispersion shift to the left one standard deviation

Chapter 7: Sampling and Sampling Distributions C 85.

225

The nine employees of the Information Technologies Center and whether they possess 'mission critical skills' are listed in the following table. Employee A B C D E F G H I Mission Critical No No Yes No Yes No No No No If a sample of two employees is selected without replacement, the number of elementary outcomes in the sample space is _______________. A. B. C. D. 384 256 72 81

M BCalc

86.

The nine employees of the Information Technologies Center and whether they possess 'mission critical skills' are listed in the following table. Employee A B C D E F G H I Mission Critical No No Yes No Yes No No No No If a sample of two employees is selected with replacement, the number of elementary outcomes in the sample space is _______________. A. B. C. D. 384 256 72 81

M BCalc

87.

The eight employees of the Information Technologies Center and whether they possess 'mission critical skills' are listed in the following table. Employee A B C D E F G H I Mission Critical No No Yes No Yes No No No No If a sample of two employees is selected without replacement, which of the following is not a possible sample proportion of "mission critical"? A. B. C. D. 1.00 0.00 0.22 0.50

M BCalc

226 Test Bank C 88. Suppose 40% of the population possess a given characteristic. If a random sample of size 300 is drawn from the population, then the probability that 44% or fewer of the sample possess the characteristic is _______. M Calc A. B. C. D. 89. 0.0793 0.4207 0.9207 1.0000

Suppose 30% of a population possess a given characteristic. If a random sample of size 1200 is drawn from the population, then the probability that less than 348 possess that characteristic is _______. A. B. C. D. 0.2236 0.2764 0.2900 0.7764

M Calc

90.

If the population proportion is 0.90 and a sample of size 64 is taken, what is the probability that the sample proportion is less than 0.88? A. B. C. D. 0.2019 0.2981 0.5300 0.7019

M Calc

91.

If the population proportion is 0.90 and a sample of size 64 is taken, what is the probability that the sample proportion is more than 0.89? A. B. C. D. 0.1064 0.2700 0.3936 0.6064

M Calc

92.

Suppose 40% of all college students have a computer at home and a sample of 64 is taken. What is the probability that more than 30 of those in the sample have a computer at home? A. B. C. D. 0.3686 0.1314 0.8686 0.6314

M Calc

93.

Suppose 40% of all college students have a computer at home and a sample of

Chapter 7: Sampling and Sampling Distributions 100 is taken. What is the probability that more than 50 of those in the sample have a computer at home? M Calc A. B. C. D. 94. 0.4793 0.9793 0.0207 0.5207

227

Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system. If 10% of the 5,000 payroll vouchers issued since January 1, 2000, have irregularities, the probability that Pinky's random sample of 200 vouchers will have a sample proportion greater than .06 is ___________. A. B. C. D. 0.4706 0.9706 0.0588 0.9412

M Calc

95.

Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system. If 10% of the 5,000 payroll vouchers issued since January 1, 2000, have irregularities, the probability that Pinky's random sample of 200 vouchers will have a sample proportion .06 and .14 is ___________. A. B. C. D. 0.4706 0.9706 0.0588 0.9412

H BCalc

96.

Catherine Chao, Director of Marketing Research, needs a sample of Kansas City households to participate in the testing of a new toothpaste package. If 40% of the households in Kansas City prefer the new package, the probability that Catherine's random sample of 300 households will have a sample proportion greater than 0.45 is ___________. A. B. C. D. 0.9232 0.0768 0.4616 0.0384

M BCalc

97.

Catherine Chao, Director of Marketing Research, needs a sample of Kansas City households to participate in the testing of a new toothpaste package. If 40% of

228

Test Bank the households in Kansas City prefer the new package, the probability that Catherine's random sample of 300 households will have a sample proportion between 0.35 and 0.45 is ___________. A. B. C. D. 0.9232 0.0768 0.4616 0.0384

H BCalc

Chapter 7: Sampling and Sampling Distributions 98.

229

Uriah Utley, a managing partner with Ultra Properties, feels that customer satisfaction is the key to success in the residential real estate business. Accordingly, he is considering a survey of recent purchasers of residential properties. He wants the survey to focus on "what my agents and my competitors' agents are doing right and doing wrong." He has access to and the legal right to use the Multiple Listing Service data base which contains numerous data items on each property listed by member realtors. These items include: (1) the listing agency, (2) the selling agency, and (3) the address of the property. Describe the target population and a sampling plan for Uriah's survey. Note any assumptions and limitations of the plan. Should he share the survey results with all other realtors? Why or why not? _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

M BApp

230

Test Bank 99. Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB), is concerned about the default rate on personal loans at the 30 AFB member banks. Ten percent of the 30,000 personal loans approved last year were in default within six months of approval. Ophelia wants the application and approval process "tightened up and streamlined to weed out bad risks and provide fast turn-around to all applicants." She wants a short credit application which can be processed rapidly, yet is an excellent predictor of credit worthiness. Describe the target population and a sampling plan for Ophelia's survey. Note any assumptions and limitations of the plan. Are last year's 30,000 applications relevant to this survey? Should Ophelia segment the market? What variables could she use? _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

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Melton Leach, VP of Marketing and Customer Services at Monticello Prudential Bank (MPB), is interested and concerned about the various implications of online banking. If MPB doesn't implement online banking, will it lose a significant market share to online banks? If MPB implements online banking, will its customer base increase enough to offset the additional costs? Should MPB charge a fee for the online services? If so, how much? Should MPB use propriety telephone circuits or the Internet? Would online banking change the character of MPB, and diminish its appeal to customers who prefer the personal touch of faceto-face banking? Describe the target population(s) and a sampling plan for Melton. Note any assumptions and limitations of the plan. Which population attributes are relevant to Melton's problem? Should Melton segment the market? What variables could he use?

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Test Bank 101. Global Financial Services (GFS) provides financial services to consumer and business clients through a network of offices located in the United States, Australia, Europe, and the Pacific Rim. Its assortment of financial services is rich and varied; time deposits, unsecured personal loans, and home mortgage loans are examples of its consumer services; while its business services include venture capital, construction loans, receivables factoring, and inventory floorplans. Internet e-mail is a convenient means of communications, both internally between branch offices, and externally between employees and clients. Each employee has an e-mail account on one of the company's e-mail servers. (E-mail servers are located at five of GFS's data centers.) The account includes an electronic inbox and an electronic sent-mail box. Messages are stored chronologically in the respective mailbox. Elwin Osbourne, Chief Information Officer at GFS, is concerned about excessive employee abuse of the corporation's Internet e-mail resources. Describe the target population(s) and a sampling plan for Elwin. Note any assumptions and limitations of the plan. Which population attributes are relevant to Elwin's problem? Should Elwin stratify the population? What variables could he use? How could Elwin use cluster sampling? What conditions would make cluster sampling appropriate for his study.

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