Harris Mutual Fund invests primarily in technology stocks.

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Harris Mutual Fund invests primarily in technology stocks. The price of the fund at theend of each month for the 12 months of 2009 are:

Month                                     Mutual Fund price

Jan                                                  19.39

Feb                                                  18.96

mar                                                 18.20

apr                                                   17.89

may                                                 18.43

june                                                 19.98

july                                                   19.51

aug                                                   20.63

sept                                                 19.78

oct                                                   21.25

nov                                                   21.18

dec                                                  22.14

 

A. Find the forecast value of the mutual fund for the month of June, using a naive model. The value for December 2008 was 19.00

B. Forecast the mutual fund price for January 2010 using a 3 period moving average model.

ROUND ANSWERS TO 2 DECIMAL PLACES FOR BOTH PROBLEMS.

 

Please show all work for this quiz and explain your derivations.

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Please show all work for this quiz and explain your derivations. Lack of step-by-step work will not be credited. Partial credit will be given for step-by-step description of answer.


In your own words, describe the meaning of average cost. You normally buy a crate of wine for $75. One crate has 6 bottles of wine. After a month, the store clerk informs you that the same crate of wine now costs $82. However, there are 7 bottles in a crate. To the nearest cent, determine the average cost of the crate from last month to now. 

In your own words, describe the meaning of marginal cost. You normally buy a crate of wine for $75. One crate has 6 bottles of wine. After a month, the store clerk informs you that the same crate of wine now costs $82. However, there are 7 bottles in a crate. To the nearest cent, determine the marginal cost for one additional bottle of wine now. 

In your own words, describe the meaning of unit travel. When traveling on a Greyhound bus, without intervention or obstruction, it is important to determine the unit travel time. If you leave Cleveland in a bus full of 24 passengers and arrive Cincinnati in 3 hours, what will be the average unit travel time in person minutes? 

What is CPI? Given that the CPI trends for travel time for 2010 and this year are 183.42 and 191.35 respectively, calculate the current value of travel time if it was $24.50 per hour in 2010. 

After 17 vehicular accidents two years ago in a given intersection, the mayor of Boulder proposed to reduce the number of crashes by making improvements at the intersection. Assuming the appropriate CRF is 0.53, what will be the reduction in number of crashes at that intersection achieved by the mayor? 

A small, family-owned coffee shop does a brisk business every weekday morning

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A small, family-owned coffee shop does a brisk business every weekday morning. Customers arrive at an average rate of 16 per hour. There is only one server and she can serve a customer in an average of 3 minutes. What is the probability that there are at least 5 customers at the coffee shop?

Answer

 

0.95

0.80

0.75

0.59

0.00

 

A small, family-owned coffee shop does a brisk business every weekday morning. Customers arrive at an average rate of 16 per hour. There is only one server and she can serve a customer in an average of 3 minutes. What is the probability that the server is not busy?

Answer

 

0.00

0.80

0.75

0.20

1.00

 

A tutor is working diligently in the tutoring lab answering questions from students the day the homework assignment is due. Because so many students have waited until the last minute to do their homework, she keeps socialization to a minimum and provides explanations as quickly as possible. On average, she can answer 20 questions per hour and students arrive at her office seeking help every four minutes. Student arrivals are Poisson distributed and answer times are exponentially distributed. What is the Utilization rate for the tutoring lab?

Answer

 

0.00

0.80

0.75

0.20

1.00

 

 

A tutor is working diligently in the tutoring lab answering questions from students the day the homework assignment is due. Because so many students have waited until the last minute to do their homework, she keeps socialization to a minimum and provides explanations as quickly as possible. On average, she can answer 20 questions per hour and students arrive at her office seeking help every four minutes. Student arrivals are Poisson distributed and answer times are exponentially distributed. You arrived at the tutoring lab with a question, what is the probability that you will have to wait?

Answer

 

0.00

0.80

0.75

0.20

1.00

 

A tutor is working diligently in the tutoring lab answering questions from students the day the homework assignment is due. Because so many students have waited until the last minute to do their homework, she keeps socialization to a minimum and provides explanations as quickly as possible. On average, she can answer 20 questions per hour and students arrive at her office seeking help every four minutes. Student arrivals are Poisson distributed and answer times are exponentially distributed. What is the probability of having 60 students at thee tutoring lab?

Answer

 

0.00

0.80

0.75

0.20

1.00

 

A decision maker’s worst option has an expected value of $1,000, and her best option has an expected value of $3,000. With perfect information, the expected value would be $5,000. The decision maker has discovered a firm that will, for a fee of $1,000, make her position-risk free. How much better off will her firm be if she takes this firm up on its offer?

Answer

 

 

$5,000

$4,000

$3,000

$2,000

$1,000

 

A tutor is working diligently in the tutoring lab answering questions from students the day the homework assignment is due. Because so many students have waited until the last minute to do their homework, she keeps socialization to a minimum and provides explanations as quickly as possible. On average, she can answer 20 questions per hour and students arrive at her office seeking help every four minutes. Student arrivals are Poisson distributed and answer times are exponentially distributed. What is the average number of students waiting in line outside the tutoring lab if each student asks one question?

Answer

 

2.25

2.80

1.75

3.20

1.00

Use the frequency distribution table below showing a sample data set for 10 students on a test with

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Use the frequency distribution table below showing a sample data set for 10 students on a test with a maximum score of 20 to find the standard deviation of the scores. (Round answer to one decimal position.)

 

Score

Frequency

Midpoint

Midpoint x Frequency

Midpoint squared x Frequency

1 – 5

4

 

 

 

6-10

3

 

 

 

11 – 15

2

 

 

 

16 – 20

1

 

 

 

Totals

10

 

 

 

 

 

 

 

For 2008, what is the expected Manufacturing Overhead if Manufacturing Direct Labor Hours are expected to be 2,100?

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Use the manufacturing data below to answer the following questions.         (worth 24 points)

Year

Manufacturing Direct Labor Hours

Manufacturing Overhead

2002

1,200

$73,000

2003

1,500

$97,000

2004

2,300

$128,000

2005

2,700

$155,000

2006

3,300

$175,000

2007

3,400

$218,000

 

a)         For 2008, what is the expected Manufacturing Overhead if Manufacturing Direct Labor Hours are expected to be 2,100?   

                       

b)         Manufacturing Direct Labor Hours explain about how much of Manufacturing Overhead?           

                       

c)         What is the equation?

A lower coefficient of determination is better for forecasting.          (worth 3 points)         

True or False   ?         

A research project was conducted to study whether gender plays a role in the acceptance of a student into

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A research project was conducted to study whether gender plays a role in the acceptance of a student into vocational education programs. A random sample of 200 applicants for vocaional education was selected from a school district. The data were then summarized into table shown below.

 

What are the odds of acceptance for females? 

A) 45/35 

B) 45/80 

C) 35/80 

D) 45/200 

Predictor Coef Se COEF T P

Constant -21.04 16.00 -.1.32 0.205

X1 0.566 0.1475 3.84 0.001

S=3.98537 R=SQ=45.0% R=SQ (ADJ)=42.0%

Using the above regression output, what would be the predicted value of y for x = 20? 

A) -21.04 

B) 0.5666 

C) 32.37 

D) -9.71 

 

26. Select the most appropriate statistical test for each of the following:

 

We test the IQ of a random sample of children of women smokers to see if their mean IQ is lower than the national mean IQ of 100. 

A) 1 Proportion Test 

B) 1 mean test with a one-sided alternative 

C) 1 mean test with a two-sided alternative 

D) Two-sample t-test with a one-sided alternative 

E) Two-sample t-test with a two-sided alternative 

F) Chi-square test 

G) One-Way ANOVA test 

H) Regression 

Select the most appropriate statistical test for each of the following:

 

We examine a random sample of State College apartments to see on average how much rent increases per unit increase of square footage: 

A) 1 Proportion Test 

B) 1 mean test with a one-sided alternative 

C) 1 mean test with a two-sided alternative 

D) Two-sample t-test with a one-sided alternative 

E) Two-sample t-test with a two-sided alternative 

F) Chi-square test 

G) One-Way ANOVA test 

H) Regression 

Select the most appropriate statistical test for each of the following:

 

We take random samples of African-American, White, Asian, and Hispanic workers to determine if mean earnings differ among these groups: 

A) 1 Proportion Test 

B) 1 mean test with a one-sided alternative 

C) 1 mean test with a two-sided alternative 

D) Two-sample t-test with a one-sided alternative 

E) Two-sample t-test with a two-sided alternative 

F) Chi-square test 

G) One-Way ANOVA test 

H) Regression

 

29. Select the most appropriate statistical test for each of the following:

 

We want to test for a relationship between race and employment status (employed or unemployed): 

A) 1 Proportion Test 

B) 1 mean test with a one-sided alternative 

C) 1 mean test with a two-sided alternative 

D) Two-sample t-test with a one-sided alternative 

E) Two-sample t-test with a two-sided alternative 

F) Chi-square test 

G) One-Way ANOVA test 

H) Regression 

Select the most appropriate statistical test for each of the following:

 

We test if the average age of marriage for women in the United States is different from 27. 

A) 1 Proportion Test 

B) 1 mean test with a one-sided alternative 

C) 1 mean test with a two-sided alternative 

D) Two-sample t-test with a one-sided alternative 

E) Two-sample t-test with a two-sided alternative 

F) Chi-square test 

G) One-Way ANOVA test 

H) Regression 

Data that can only take on countable whole number values is considered

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Data that can only take on countable whole number values is considered __________.

  

 

 

For continuous data the total area under the normal curve must be equal to __________.

  

 

 

As sample size gets __________ we are more confident that our sample statistic is a more valid estimate of the population parameter.

  

 

 

The __________ the p-value is, the stronger the evidence against the null hypothesis.

  

 

 

Higher confidence levels require __________ samples.

  

 

 

In formulating hypotheses for a statistical test of significance the __________ hypothesis is often a statement of “no effect” or “no difference”.

  

 

 

The __________ measures the spread of the data population.

  

 

 

As the standard deviation of a population gets __________ the required sample size decreases.

  

 

 

The __________ distribution can be applied to situations where only 2 mutually exclusive outcomes are possible and the probability of success on each one of those outcomes is the same.

  

 

 

The measure of location or center that is less affected by the addition of an extreme score (or outlier) is the__________.

  

 

 

 

Suppose the grading for a course project can only have 6 possible outcomes

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Suppose the grading for a course project can only have 6 possible outcomes; 100, 90, 80, 70, 60, 50, and 0. Let the random variable X be the scores on the project. Suppose X has the following distribution:

X

P(X=x)

100

0.1

90

0.25

80

0.3

70

0.15

60

0.1

50

0.09

0

0.01

 

a. What is the probability that X is AT MOST 70?
b. What is the probability that X is AT LEAST 80%?
c. What is the probability that X is MORE than 80?
d. What is the probability that X is LESS than 70?
e. Compute the expected value for this random variable (see page 269 of text). 

A sport preference poll yielded the following data for men and women

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A sport preference poll yielded the following data for men and women. Use a 5% significance level and test to determine if sport preference and gender are independent.

Sport Preferences of Men and Women

 

Basketball

Football

Soccer

Total

Men

20

25

30

75

Women

18

12

15

45

Total

38

37

45

120

What is the test value for this hypothesis test?

What is the critical value for this hypothesis test? 

What is the conclusion for this hypothesis test? Choose one.

1. There is sufficient evidence to support the claim that one’s sport preference is dependent on one’s gender.
2. There is not sufficient evidence to support the claim that one’s sport preference is dependent on one’s gender.

Identify whether the comparison is based on two independent samples or paired data:

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Identify whether the comparison is based on two independent samples or paired data:

A class survey is used to compare the GPAs of male and female students. 

A) Independent 

B) Paired 

There are five children in your family (you and 4 siblings). Each night, two children are responsible to wash the dishes. To be fair, the children are selected by randomly pulling names from a hat. What is the probability that you will not have to wash the dishes? 

A) 4/25 

B) 12/20 

C) 4/20 

D) 12/25 

Suppose you are taking a statistics course and a psychology course next semester. You like mathematics, so you believe that probability of getting an “A” in statistics is 0.8. On the other hand, psychology is not as interesting to you so the probability of getting an “A” in that class is 0.6. It will be challenging to manage both courses at the same time, so the probability of getting an “A” in both classes is 0.5. Are the events “A” in statistics and “A” in psychology independent? 

A) No because 0.8*0.6 does not equal 0.5. 

B) Yes because the grade in statistics does not affect the grade earned in psychology. 

C) Yes because 0.8*0.6 does not equal 0.5. 

A researcher randomly selected 20 classes of Grade-1 students from all elemetary schools in New York State to form a sample of students to study relationship bewteen nutrition and school performance. This sampling method is BEST defined as: 

A) Simple random sampling 

B) Cluster sampling 

C) Stratified random sampling 

D) Convenience sampling 

Which of the following best describes the standardized (z) score for an observation? 

A) It is the number of standard deviations the observation falls from the mean. 

B) It is the most common score for that type of observation. 

C) It is one standard deviation more than the observation. 

D) It is the center of the list of scores from which the observation was taken. 

A student does not study for a 10 question multiple choice quiz, with five answer choices for each question, so he randomly guesses an answer for every question. Which choice below describes how to find the probability that this student gets exactly 7 questions correct? 

A) Find cumulative probability for 7 successes for a binomial variable with n = 10 and p = 7/10. 

B) Find cumulative probability for 7 successes for a binomial variable with n = 10 and p = 1/5. 

C) Find probability of 7 successes for a binomial variable with n = 10 and p = 1/5 

D) Find probability of 7 successes for a binomial variable with n = 10 and p = 7/10 

Correctly identify whether the following situations satisfy the conditions required to conduct a Binomial experiment. Rolling a die many times and observing whether the number obtained is even or odd 

A) Binomial 

B) NOT Binomial 

According to a recent survey approximately 25% of all college students work full time (that is, there is 0.25 probability for any given student to work full time). If the random variable X represents the number of students who work full time in samples of size 10, what is the expected value of X? 

A) 2.0 

B) 2.5 

C) 3.0 

D) More information is needed 

Which of the following is the main advantage of randomized experiments, when compared to observational studies? 

A) The participants are more likely to stick with the experiment for the full duration 

B) Cause and effect conclusions are possible. 

C) Random assignment ensures that the two sample sizes are equal and that requirement is necessary. 

D) Random assignment guarantees a more representative sample. 

Which of the following statements is correct about a parameter and a statistic associated with repeated random samples of the same size from the same population? 

A) Values of a parameter will vary from sample to sample but values of a statistic will not. 

B) Values of both a parameter and a statistic may vary from sample to sample. 

C) Values of a parameter will vary according to the sampling distribution for that parameter. 

D) Values of a statistic will vary according to the sampling distribution for that statistic.