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 wouldinterest 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 theindividuals (administration, faculty, professional staff, clerical and maintenance) who work in that school.This sampling plan is calledA) Systematic samplingB) Stratified samplingC) Cluster samplingD) Simple random samplingE) Convenience sampling

2) Suppose that there are five categories of employees (administration, faculty, professional staff, clerical andmaintenance) and the university decides to randomly select ten individuals from each category. Thissampling plan is calledA) Stratified samplingB) Cluster samplingC) Simple random samplingD) Convenience samplingE) Systematic sampling

ASW, a regional shoe chain, has recently launched an online store. Sales via the Internet have been sluggish comparedto their brick and mortar stores, and management suspects that its regular customers have concerns regarding thesecurity of online transactions. To determine if this is the case, management plans to survey a sample of regularcustomers.

3) Suppose that ASW has an alphabetized list of regular customers who belong to their rewards program. Afterrandomly selecting a customer on the list, every 25th customer from that point on is chosen to be in thesample. This sampling plan is calledA) Simple random samplingB) Convenience samplingC) Cluster samplingD) Systematic samplingE) Stratified 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 andwould 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 IDnumber. ASW decides to randomly select 100 numbers. This sampling plan is calledA) Convenience samplingB) Cluster samplingC) Stratified samplingD) Systematic samplingE) Simple random sampling

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

6) The percentage of consumers who are male and prefer Pentax isA) 6.6% B) 44.1% C) 52.6% D) 12.5% E) 14.9%

7) Of the consumers who are male, the percentage who prefer Pentax isA) 52.6% B) 12.5% C) 6.6% D) 44.1% E) 14.9%

8) The following bar chart for these data shows

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

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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 andeffect.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 theypay 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

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Following are a histogram and the five 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 theA) median.B) standard deviation.C) range.D) mean.E) mode.

14) The IQR for these data isA) $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. Whichof 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

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

16) The correlation between monthly sales and level of experience is most likelyA) -0.914. B) -0.235. C) 0.914. D) 0. E) 0.180.

17) The association between monthly sales and level of experience can be described asA) negative and strong.B) positive and weak.C) nonlinear.D) negative and weak.E) positive and strong.

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

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

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19) A regression analysis of company profits and the amount of money the company spent on advertisingproduced a R2 = 0.72. Which of these is true?

I. This model can correctly predict the profit for 72% of companies.II. 72% of the variance in company profit can be accounted for by the model.III. On average, companies spend about 72% of their profits 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 companystocks 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.

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A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impacton 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 satisfied.B) The quantitative variable condition is satisfied.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 predictorvariable (price per pound) isA) -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 predictorvariable (price per pound) isA) 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%

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26) The linear relationship between number of pounds of coffee sold per week and price is best described asA) 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, willA) increase by 8.999B) decrease by 8.999C) decrease by 9.362D) increase by 9.362E) 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 standarddeviation.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 clientswith quarterly median selling prices for homes in a given area for the past three year period. These data areA) Time SeriesB) OrdinalC) Cross-sectionalD) CategoricalE) Nominal

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During its grand-opening week, Stickler's bicycle shop offers a "wheel of discount savings." After customers selectthe items they wish to purchase, they spin the wheel to determine the discount they will receive. The wheel is dividedinto 12 slices. Six slices are red and award a 10% discount, three slices are white and award a 20% discount, and twoslices are blue and award a 40% discount. The remaining slice is gold and awards a100% discount!

30) The probability that a customer gets a 10% or 20% discount isA) 10/12 B) 3/12 C) 9/12 D) 0.0625 E) 2/12

31) The probability that a customer gets at least a 40% discount isA) 10/12 B) 2/12 C) 0.0625 D) 9/12 E) 3/12

32) The probability that two customers in a row get a 20% discount isA) 0.0625 B) 2/12 C) 3/12 D) 10/12 E) 9/12

The option to buy extended warranties is commonplace with most electronics purchases. But does the type ofpurchase affect a consumer's willingness to pay extra for an extended warranty? Data for 420 consumers whopurchased 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 isA) 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 adigital camera isA) 0.17 B) 0.42 C) 0.07 D) 0.58 E) 0.83

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35) Which of the following statements is true?A) The decision to purchase an extended warranty and type of electronics (digital camera or laptopcomputer) purchased are related.

B) The decision to purchase an extended warranty and type of electronics (digital camera or laptopcomputer) purchased are independent.

C) The decision to purchase an extended warranty and type of electronics (digital camera or laptopcomputer) purchased are not independent.

D) The decision to purchase an extended warranty and type of electronics (digital camera or laptopcomputer) purchased are mutually exclusive.

E) The decision to purchase an extended warranty and type of electronics (digital camera or laptopcomputer) 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 isA) 1/3 B) 1/2 C) 2/3 D) 1/4 E) 2/5

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Answer KeyTestname: T1

1) C2) A3) D4) E5) E6) A7) E8) D9) E10) B11) B12) E13) A14) B15) A16) C17) E18) B19) C20) C21) B22) D23) A24) D25) E26) C27) C28) C29) A30) C31) E32) A33) C34) B35) B36) B

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