MGMT533 Statistics Final Exam Complete Solution

Question: #7994

Data Set Ford Mustang Automobiles
PRICE   CONVERT   AGE   MILES   TRANS       Variables:
12688   0   1   8200   0       PRICE = Asking price in dollars
11500   0   1   27000   1       CONVERT = 1 if convertible and 0 if not
11650   0   1   3000   0       AGE = age of car in years
10995   1   2   27000   1       MILES = odometer reading in miles
6200   0   3   55000   1       TRANS = 1 if automatic and 0 if manual
9500   0   3   22000   0
8700   0   3   25000   1       Source: Practical Data Analysis 2nd, Vol I, II
12500   0   2   23800   0       Bryant-Smith McGraw-Hill ISBN -13:978-0-69-778527-5
10488   1   4   20000   0       For Applied Managerial Statistics GM533 DeVry University
5988   0   4   37000   0
7288   1   5   84000   1
3590   0   5   55000   0
2800   0   6   62000   0
6995   1   7   78000   1
4900   0   7   60000   0
2488   0   7   67000   1
4200   1   8   65000   1
12990   1   1   13300   1
14500   1   3   31000   1
10900   1   3   4000   1
13500   1   3   23000   0
12000   0   3   89000   0
8500   0   3   34000   1
4388   0   4   80000   0
3000   0   7   95000   0
3900   0   8   90000   0
3350   0   8   91000   0
10500   0   3   17000   0
12988   0   1   21000   1
6500   0   3   73000   0
12900   1   2   19000   0
9000   0   2   32000   0
7000   0   6   56000   0
5900   0   4   110000   1
2500   0   6   92000   0


1) Use descriptive statistics to describe the price of the autos in the data set                               TCO A
    assuming it is a sample.                           5 points

2) Draw a histogram of the Price of autos in the data set.                               TCO A
                           5 points


3) Compare the average price of the five autos with the lowest mileage                                TCO A
to the average price of the five autos with the highest mileage.                           5 points
Use a column graph to illustrate your findings.

4)     Stanford-Binet IQ Test scores are normally distributed with a mean score of 100                               TCO B
   and a standard deviation of 16.
                           25 points
a) Find the probability that a randomly selected person has an IQ score over 133


b) Find the probability that a randomly selected person has an IQ score under 86

c) Find the probability that a randomly selected person has an IQ score between 72 and 128

d) Find the probability a randomly selected person has an IQ within 1.5 standard deviations of the mean.

e) Find the lowest IQ score for a person in the upper 6% of the Stanford-Binet IQ Test score distribution.

Use the following Data Set A to answer questions 5, 6, and 7.

   Data Set A
   5
   8
   12
   3
   14
   2
   4
   7

5) What is the mean of the data in set A?
   a) 1.52                       5 points       TCO A
   b) 6
   c) 6.87
   d) 55



6) What is the range of the data in Data Set A?                           5 points       TCO A
   a) The distance to the target
   b) The difference of the maximum and minimum observations
   c) The average squared deviation from the mean
   d) kurtosis divided by skewness

7) Why can’t the Mode be calculated for Data Set A?                           5 points       TCO A
   a) No observation occurs more than once
   b) The Mean is greater than the Median
   c) The number of observations is not 30 or more
   d) EXCEL doesn’t work on small data sets.

8) Which graph best shows the relationship between the Year and the Price Index (CPI)?                                       TCO A
   Choose the best answer a), b), c), d)                         5 points

9) Which of the following is a probability distribution?                           5 points       TCO B

a)           b)
X   P(X)       X   P(X)
Green   0.5       5   0.1
Red   0.3       12.5   0.5
Blue   0.1       26.2   0.4

c)           d)
X   P(X)       X   P(X)
Sam   0.2       0.4   0.1
Ned   0.5       0.4   0.5
Sally   0.4       0.2   0.3

10)     Tires made by the Schlock Company have mean life of 50,000 miles, Standard Deviation
   of 4,200 miles. What mileage should the company guarantee so that no more
   than 3% fail to make the guaranteed mileage if the distribution is normal?                           10 points


Data Set Ford Mustang Automobiles
PRICE   CONVERT   AGE   MILES   TRANS       Variables:
12688   0   1   8200   0       PRICE = Asking price in dollars
11500   0   1   27000   1       CONVERT = 1 if convertible and 0 if not
11650   0   1   3000   0       AGE = age of car in years
10995   1   2   27000   1       MILES = odometer reading in miles
6200   0   3   55000   1       TRANS = 1 if automatic and 0 if manual
9500   0   3   22000   0
8700   0   3   25000   1       Source: Practical Data Analysis 2nd, Vol I, II
12500   0   2   23800   0       Bryant-Smith McGraw-Hill ISBN -13:978-0-69-778527-5
10488   1   4   20000   0       For Applied Managerial Statistics GM533 DeVry University
5988   0   4   37000   0
7288   1   5   84000   1
3590   0   5   55000   0
2800   0   6   62000   0
6995   1   7   78000   1
4900   0   7   60000   0
2488   0   7   67000   1
4200   1   8   65000   1
12990   1   1   13300   1
14500   1   3   31000   1
10900   1   3   4000   1
13500   1   3   23000   0
12000   0   3   89000   0
8500   0   3   34000   1
4388   0   4   80000   0
3000   0   7   95000   0
3900   0   8   90000   0
3350   0   8   91000   0
10500   0   3   17000   0
12988   0   1   21000   1
6500   0   3   73000   0
12900   1   2   19000   0
9000   0   2   32000   0
7000   0   6   56000   0
5900   0   4   110000   1
2500   0   6   92000   0



11)   Using the "Ford Mustang Data Set" to represent a random sample, determine a 95%                                    TCO C
   confidence interval for the mean price of Ford Mustangs.                           10 points

12)   Using the "Ford Mustang Data Set" to represent a random sample, determine a 90%                                    TCO C
   confidence interval for the mean value of odometer mileage.(MILES)                           10 points
13)   The Internal Revenue Service has stated that historically 85% of federal tax returns                                   TCO B
   filed are free of arithmetic errors. A random sample of 25 returns is selected and
   checked carefully for arithmetic errors. Assuming independence, find the probability that:
       hint: Binomial problem                       20 points

   a. all 25 returns are free of arithmetic errors.
   b. at most 23 returns are free of arithmetic errors.
   c. more than 17 are free of arithmetic errors.

14)   A new brand of laptop battery is produced by ZELCON. The company claims that the                                    TCO B
   battery will last for an extended period of time before a recharge is necessary. A sample
   of 49 batteries is tested for the length of usage time to recharge. The sample results are
   as follows:                           20 points

   Sample Size = 49
   Sample Mean = 6.4 hrs.
   Sample Standard Deviation = 1.3 hrs.

   a. Construct a 95% confidence interval for the average length of usage time to recharge.                                   TCO C
   b. Interpret this interval.
   c. How large a sample size will need to be selected if we wish to have a 95% confidence
        interval with a margin for error of .25 hours?
16. Bill Smith is the Worthington Township manager. When citizens request a traffic light, the
staff assesses the traffic flow at the requested intersection. Township policy requires the installation of
a traffic light when an intersection averages more than 150 vehicles per hour. A random sample of 50
vehicle counts is done. The results are as follows:                               40 points

   Sample Size = 50
   Sample Mean = 159.3 vehicles/hr.
   Sample Standard Deviation = 27.5 vehicles/hr.

Does the sample data provide evidence to conclude that the installation of the traffic light is warranted
(using α= .10)? Use the hypothesis testing procedure outlined below.

a. Formulate the null and alternative hypotheses.                                       TCO D
b. State the level of significance.
c. Find the critical value (or values), and clearly show the rejection and nonrejection regions.
d. Compute the test statistic.
e. Decide whether you can reject Ho and accept Ha or not.
f. Explain and interpret your conclusion in part e. What does this mean?
g. Find the observed p-value for the hypothesis test and interpret this value. What does this mean?
h. Does this sample data provide evidence (with α = 0.10), that the installation of the traffic light
    is warranted?

17)   Given the following regression output:
   SUMMARY OUTPUT                           15 points

   Regression Statistics                           TCO E
   Multiple R       0.835
   R Square       0.697
   Adjusted R Square       0.674
   Standard Error       0.972
   Observations       15

   ANOVA
       df   SS   MS   F   Significance F
   Regression   1   28.287   28.287   29.970   0.000
   Residual   13   12.270   0.944
   Total   14   40.557

           Standard           Lower   Upper
       Coefficients   Error   t Stat   P-value   95%   95%
   Intercept   -0.309   3.109   -0.099   0.922   -7.025   6.407
   X   0.212   0.039   5.475   0.000   0.128   0.296

A)   Approximately what percentage of the variation in the Y variable
   is explained by the regression?

Solution: #7992

MGMT533 Statistics Final Exam Complete Solutionination Complete Solution

b) state the regression equation Ans. Price= 13293.7518 + 2823.0772 *Convert -1170.5026 *Age -0.0210* MILES -612.6466*Trans c) Use the regression equation to estimate the average price for a Convertible, 3 years old, 23,000 mil...