PSUT
Department of Basic Sciences
Statistics for Business Final Exam Fall 2016
Name: Student’s Number:
Section Time: Instructor’s Name:
PART I: Choose the best answer and fill it in the following tables:
(2 points each)
Q. No. 1 2 3 4 5 6 7 8 9 10
Answer
1. If E and F are two independent events in sample space Ω such that P (E) = 0.5 and P (F ) = 0.4,
then P (F |E) =
A. 0.6 B. 0.7 C. 0.8 D. 0.9
2. Suppose that the quartiles for a given data set are Q1 = 40, Q2 = 50 and Q3 = 60 then the data
sample mean X =
A. 40 B. 50 C. 60 D. Can not tell.
3. If a population distribution is skewed to the right, then which of the following is true
A. Median would be greater than the mean B. Mode would be equal to the mean
C. Median would be less than the mean D. Median would be equal to the mean
4. Using Chebyshev’s Theorem, find the interval that contains at least 93.75% of all measurements
when the mean X = 2.549 and standard deviation s = 1.828.
A. [−2.935, 8.033] B. [−1.107, 6.205] C. [2.435, 2.663] D.[−4.763, 9.861]
5. If E and F are mutually exclusive events in sample space Ω then
A. P (E|F ) = P (E) B. P (E ∪ F ) = P (E) + P (F )
C. P (E ∪ F ) = P (E)P (F ) D.P (E ∩ F ) = P (E)P (F )
X 0 1 2 3
6. Given a probability distribution table , If the expected value of the ran-
P(X) a 0.2 b 0.3
dom variable E(X) = 1.5, then the values of a and b are
A. a = 0.1, b = 0.4 B. a = 0.3, b = 0.2 C. a = 0.5, b = 0 D. a = 0.4, b = 0.1
1
7. Given the binomially distributed variable Y with n = 300 and p = 0.4. Then the mean and the
variance for the variable Y are
A. µ = 60, σ 2 = 48 B. µ = 30, σ 2 = 27 C. µ = 120, σ 2 = 72 D. µ = 90, σ 2 = 63
8. The annual salaries of employees in a large company are approximately normally distributed with
a mean of 12,000 JD and a standard deviation of 2,000 JD. If 100 employees are randomly selected,
then the probability that their mean salary (X) is greater than 11,500 equals
A. 0.9956 B. 0.9938 C. 0.9978 D. 0.9969
9. Given the normally distributed variable X with mean 400 and standard deviation 15, then the first
quartile Q1 is
A. 289.95 B. 89.95 C. 189.95 D. 389.95
10. Regression analysis was applied between sales (y in dollars) and advertising (x in dollars) across
all the branches of a major international corporation. The following regression equation was obtained:
yb = 5000 + 7.25 x. Each $1 advertising
A. increases the sales by $5000 B. increases the sales by $7.25
C. decreases the sales by $5000 D. decreases the sales by $7.25
2
PART II: Show your work! If insufficient work is shown, full credit
may not be awarded.
(1) A questionnaire of spending habits was given to a random sample of college students. Each student
was asked to record and report the amount of money they spent on textbooks in a semester. The
sample of 130 students resulted in an average of X = $422 with standard deviation of s = $57.
i. Construct a 90% confidence interval. [3]
ii. Interpret the confidence interval. [1]
iii. What is the margin of error for the 90% confidence interval? [1]
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(2) (Two-tail test) An agro-economist examines the cellulose content of a variety of alfalfa hay. A
sample of 15 cuttings has a mean cellulose content of X = 145 mg and a standard deviation of s = 8
mg. A previous study claimed that the mean cellulose content was 140 mg. Perform a hypothesis test
to determine if the mean cellulose content is different from 140 mg if α = 0.05. [5]
(a) State the null (H0 ) and alternative (H1 ) hypotheses.
(b) Compute the test statistic.
(c) Find the critical values
(d) What is your statistical decision (use critical-value approach)?
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(3) (One-tail test) Last year the government made a claim that the average income of the American
people was $33, 950. However, a sample of 50 people taken recently showed an average income of
$34, 076 with a population standard deviation of σ = $324. Use an α = 0.01 to conduct a significance
test to see if the true mean is more than the reported average. [6]
(a) State the null (H0 ) and alternative (H1 ) hypotheses.
(b) Compute the test statistic.
(c) Compute the p-value
(d) What is your statistical decision (use p-value approach)?
5
(4) (ANOVA) In order to study the effect of instructors on the variance of final exam grades (out of 40
points) in ”Math for Business” course among 4 sections, a sample of size 8 students from each section
is selected and resulted SSW = 20 and SST = 30. For a level of significance of 0.05, test whether the
mean final exam grades of the four sections are equal. [6]
(a) State the null (H0 ) and alternative (H1 ) hypotheses.
(b) Compute the test statistic.
(c) Compute the p-value
(d) What is your statistical decision?
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(5) A data set consists of 7 numbers. The mean=8, the median=7 and Mode= 6 and 8. If the smallest
number is 4 find the largest number. [3]
