ACC 349FINAL EXAM

ACC 349FINAL EXAM

1) What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information?

A.   The company should add actual manufacturing overhead costs to jobs as soon as the overhead costs are incurred.

B.   The company should determine an allocation rate as soon as the actual costs are known, and then apply manufacturing overhead to jobs.

C.   The company should account for only the direct production costs.

D.   The company should apply overhead using an estimated rate throughout the year.

2) At the end of the year, manufacturing overhead has been overapplied. What occurred to create this situation?

A.   The company incurred more manufacturing overhead costs than the manufacturing overhead assigned to jobs.

B.   The actual manufacturing overhead costs were less than the manufacturing overhead assigned to jobs.

C.   The company incurred more total job costs than the amount budgeted for the job.

 D.   Estimated manufacturing overhead was less than actual manufacturing overhead costs.

3) Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material?

 A.   A decrease to work in process inventory

 B.   A decrease to applied overhead

 C.   An increase to finished goods

 D.   An increase to cost of goods sold

4) Which of the following would be accounted for using a job order cost system?

 A.   The production of textbooks

 B.   The production of town homes

 C.   The pasteurization of milk

 D.   The production of cans of spinach

5) Which one of the following is NEVER part of recording the issuance of raw materials in a job order cost system?

 A.   Debit Manufacturing Overhead

 B.   Debit Finished Goods Inventory

 C.   Debit Work in Process Inventory

 D.   Credit Raw Materials Inventory

6) What is unique about the flow of costs in a job order cost system?

 A.   It involves accumulating material, labor, and manufacturing overhead costs as they are incurred in order to determine the job cost.

 B.   Each job is costed separately in a Work in Process subsidiary ledger.

 C.   Job costs cannot be measured until all overhead costs are determined.

 D.   There are no costs remaining in Work in Process at year end.

7) Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer?

 A.   The cost of the fuel lines that run from the motor to the gas tank

 B.   The cost of the wheels

 C.   Depreciation on the testing equipment

 D.   The wages earned by motor assemblers

8) What broad functions do the management of an organization perform?

 A.   Planning, directing, and controlling

 B.   Directing, manufacturing, and controlling

 C.   Planning, directing, and selling

 D.   Planning, manufacturing, and controlling

9) Which of the following represents the correct order in which inventories are reported on a manufacturer’s balance sheet?

 A.   Work in process, finished goods raw materials

 B.   Raw materials, work in process, finished goods

 C.   Finished goods, work in process, raw materials

 D.   Work in process, raw materials, finished goods

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10) In traditional costing systems, overhead is generally applied based on

 A.   machine hours

 B.   direct labor

 C.   direct material dollars

 D.   units of production

11) An activity that has a direct cause-effect relationship with the resources consumed is a(n)

 A.   overhead rate

 B.   product activity

 C.   cost driver

 D.   cost pool

12) A well-designed activity-based costing system starts with

 A.   computing the activity-based overhead rate

 B.   analyzing the activities performed to manufacture a product

 C.   identifying the activity-cost pools

 D.   assigning manufacturing overhead costs for each activity cost pool to products

13) Which of the following factors would suggest a switch to activity-based costing?

 A.   Overhead costs constitute a significant portion of total costs.

 B.   Production managers use data provided by the existing system.

 C.   Product lines similar in volume and manufacturing complexity.

 D.   The manufacturing process has been stable.

14) All of the following statements are correct EXCEPT that

 A.   the objective of installing ABC in service firms is different than it is in a manufacturing firm

 B.   the general approach to identifying activities and activity cost pools is the same in a service company as in a manufacturing company

 C.   activity-based costing has been widely adopted in service industries

 D.   a larger proportion of overhead costs are company-wide costs in service industries

15) What sometimes makes implementation of activity-based costing difficult in service industries is

 A.   identifying activities, activity cost plus, and cost drivers

 B.   attempting to reduce or eliminate nonvalue-added activities

 C.   the labeling of activities as value-added

 D.   that a larger proportion of overhead costs are company-wide costs

16) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?

 A.   $60,000

 B.   $90,000

 C.   $150,000

 D.   $75,000

17) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:

Mini AMaxi B

Direct labor hours15,00025,000

Machine setups600400

Machine hours24,00026,000

Inspections800700

Overhead applied to Mini A using activity-based costing is

 A.   $1,536,000

 B.   $1,664,000

 C.   $1,920,000

 D.   $1,200,000

18) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:

Mini AMaxi B

Direct labor hours15,00025,000

Machine setups600400

Machine hours24,00026,000

Inspections800700

Overhead applied to Maxi B using activity-based costing is

 A.   $1,536,000

 B.   $1,664,000

 C.   $2,000,000

 D.   $1,280,000

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19) Seran Company has contacted Truckel Inc. with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $11 per unit. Fixed costs are $12 per unit; however, $5 per unit is avoidable. Should Truckel make or buy the wickets?

 A.   Buy; savings = $10,000

 B.   Make; savings = $20,000

 C.   Make; savings = $10,000

 D.   Buy; savings = $25,000

20) Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of $20,000. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of $15,000, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why?

 A.   Repackage; revenue is $5,000 greater than cost.

 B.   Scrap; incremental loss is $9,000.

 C.   Repackage; receive profit of $10,000.

 D.   Scrap; profit is $1,000 greater.

21) The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit. For the make-or-buy decision,

 A.   incremental costs are $1 per unit

 B.   net relevant costs are $1 per unit

 C.   differential costs are $2 per unit

 D.   incremental revenues are $2 per unit

22) Hartley, Inc. has one product with a selling price per unit of $200, the unit variable cost is $75, and the total monthly fixed costs are $300,000. How much is Hartley’s contribution margin ratio?

 A.   37.5%

 B.   150%.

 C.   266.6%

 D.   62.5%.

23) Which statement describes a fixed cost?

 A.   The amount per unit varies depending on the activity level.

 B.   It varies in total at every level of activity.

 C.   It remains the same per unit regardless of activity level.

 D.   Its total varies proportionally to the level of activity.

24) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?

 A.   $28,000

 B.   $18,000

 C.   $6,000

 D.   $12,000

25) Variable costing

 A.   is required under GAAP

 B.   is used for external reporting purposes

 C.   is also known as full costing

 D.   treats fixed manufacturing overhead as a period cost

26) Which cost is NOT charged to the product under variable costing?

 A.   Direct labor

 B.   Direct materials

 C.   Fixed manufacturing overhead

 D.   Variable manufacturing overhead

27) Orbach Company sells its product for $40 per unit. During 2005, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $10, direct labor $6, and variable overhead $2. Fixed costs are: $480,000 manufacturing overhead, and $60,000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is

 A.   $18

 B.   $16

 C.   $27

 D.   $26

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28) Which of the following is NOT considered an advantage of using standard costs?

 A.   Standard costs can be useful in setting prices for finished goods.

 B.   Standard costs can reduce clerical costs.

 C.   Standard costs can make employees "cost-conscious."

 D.   Standard costs can be used as a means of finding fault with performance.

29) The difference between a budget and a standard is that

 A.   a budget expresses management's plans, while a standard reflects what actually happened

 B.   standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system

 C.   a budget expresses a total amount while a standard expresses a unit amount

 D.   a budget expresses what costs were, while a standard expresses what costs should be

30) If a company is concerned with the potential negative effects of establishing standards, they should

 A.   offer wage incentives to those meeting standards

 B.   set tight standards in order to motivate people

 C.   not employ any standards

 D.   set loose standards that are easy to fulfill

31) The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200 gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was

 A.   $2,400 favorable

 B.   $5,600 unfavorable

 C.   $3,200 unfavorable

 D.   $3,200 favorable

32) The standard number of hours that should have been worked for the output attained is 8,000 direct labor hours and the actual number of direct labor hours worked was 8,400. If the direct labor price variance was $8,400 unfavorable, and the standard rate of pay was $18 per direct labor hour, what was the actual rate of pay for direct labor?

 A.   $15 per direct labor hour

 B.   $18 per direct labor hour

 C.   $19 per direct labor hour

 D.   $17 per direct labor hour

33) The total variance is $10,000. The total materials variance is $4,000. The total labor variance is twice the total overhead variance. What is the total overhead variance?

 A.   $2,000

 B.   $4,000

 C.   $3,000

 D.   $1,000

34) Manufacturing overhead costs are applied to work in process on the basis of

 A.   standard hours allowed

 B.   actual overhead costs incurred

 C.   ratio of actual variable to fixed costs

 D.   actual hours worked

35) The overhead volume variance relates only to

 A.   variable overhead costs

 B.   both variable and fixed overhead costs

 C.   all manufacturing costs

 D.   fixed overhead costs

36) If the standard hours allowed are less than the standard hours at normal capacity,

 A.   the overhead volume variance will be unfavorable

 B.   the overhead controllable variance will be favorable

 C.   variable overhead costs will be overapplied

 D.   variable overhead costs will be underapplied

37) Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200 mugs during April. Each mug requires 2 pounds of resin and a half hour of direct labor. Resin costs $1 per pound and employees of the company are paid $12.50 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Gottberg has 2,000 pounds of resin in beginning inventory and wants to have 2,400 pounds in ending inventory. How much is the total amount of budgeted direct labor for April?

 A.   $12,500

 B.   $25,000

 C.   $27,500

 D.   $13,750

38) Lewis Hats is planning to sell 600 straw hats. Each hat requires a half pound of straw and a quarter hour of direct labor. Straw costs $0.20 per pound and employees of the company are paid $22 per hour. Lewis has 80 pounds of straw and 40 hats in beginning inventory and wants to have 50 pounds of straw and 60 hats in ending inventory. How many units should Lewis Hats produce in April?

 A.   600

 B.   580

 C.   630

 D.   620

39) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000 widgets. Barry estimates it will sell 35,000 units during the first quarter of 2004 with a 10% increase in sales each quarter. Barry’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each widget costs $1 and is sold for $1.50. How much is budgeted sales revenue for the third quarter of 2004?

 A.   $57,525

 B.   $63,525

 C.   $42,350

 D.   $63,000

40) In most cases, prices are set by the

 A.   customers

 B.   largest competitor

 C.   selling company

 D.   competitive market

41) A company must price its product to cover its costs and earn a reasonable profit in

 A.   all cases

 B.   its early years

 C.   the long run

 D.   the short run

42) The cost-plus pricing approach's major advantage is

 A.   it considers customer demand

 B.   that sales volume has no effect on per unit costs

 C.   it is simple to compute

 D.   it can be used to determine a product’s target cost

Exam 2

1) At the end of the year, manufacturing overhead has been overapplied. What occurred to create this situation?

A. The company incurred more total job costs than the amount budgeted for the job.

B. The actual manufacturing overhead costs were less than the manufacturing overhead assigned to jobs.

C. Estimated manufacturing overhead was less than actual manufacturing overhead costs.

D. The company incurred more manufacturing overhead costs than the manufacturing overhead assigned to jobs.

2) Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material?

A. An increase to finished goods

B. An increase to cost of goods sold

C. A decrease to applied overhead

D. A decrease to work in process inventory

3) Why is factory overhead applied to products and jobs by manufacturing companies?

A. Total actual overhead costs can never be accurately determined for production.

B. It provides a more accurate cost of the job or products being processed.

C. Because indirect costs are easy to trace to products and jobs.

D. It allows managers more timely determination of product costs during the manufacturing process.

4) In a job order cost accounting system, the Work in Process account is

A. closed at year end

B. a control account

C. a period cost

D. an expense

5) Which one of the following is an important feature of a job order cost system?

A. Each must be completed before a new product order is accepted.

B. Each job uses similar processes to produce.

C. Each consists of features which distinguish it from the next.

D. Each job has characteristics similar to the next.

6) Which of the following represents the two basic types of cost accounting systems?

A. Job order and process cost systems

B. Job order and batch systems

C. Job order and job accumulation systems

D. Process cost and batch systems

7) Which of the following represents the correct order in which inventories are reported on a manufacturer’s balance sheet?

A. Raw materials, work in process, finished goods

B. Finished goods, work in process, raw materials

C. Work in process, finished goods raw materials

D. Work in process, raw materials, finished goods

8) Which one of the following is indirect labor considered?

A. Product cost

B. Period cost

C. Nonmanufacturing cost

D. Raw material cost

9) Which of the following is an element of manufacturing overhead?

A. Factory workers wages

B. Plant manager’s salary

C. Components used in calculators during production

D. Flour used in manufactured cake mixes

10) Which of the following is NOT typical of traditional costing systems?

A. Use of a single predetermined overhead rate

B. Assumption of correlation between direct labor and incurrence of overhead cost

C. Use of direct labor hours or direct labor cost to assign overhead

D. Use of multiple cost drivers to allocate overhead

11) An activity that has a direct cause-effect relationship with the resources consumed is a(n)

A. cost driver

B. overhead rate

C. cost pool

D. product activity

12) A well-designed activity-based costing system starts with

A. identifying the activity-cost pools

B. computing the activity-based overhead rate

C. assigning manufacturing overhead costs for each activity cost pool to products

D. analyzing the activities performed to manufacture a product

13) What sometimes makes implementation of activity-based costing difficult in service industries is

A. the labeling of activities as value-added

B. identifying activities, activity cost plus, and cost drivers

C. that a larger proportion of overhead costs are company-wide costs

D. attempting to reduce or eliminate nonvalue-added activities

14) Which of the following is a nonvalue-added activity?

A. Engineering design

B. Machining

C. Inspection

D. Packaging

15) Each of the following is a limitation of activity-based costing EXCEPT

A. It can be expensive to use.

B. It is more complex than traditional costing.

C. More cost pools are used.

D. Some arbitrary allocations continue.

16) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:

Mini AMaxi B

Direct labor hours15,00025,000

Machine setups600400

Machine hours24,00026,000

Inspections 800700

Overhead applied to Mini A using activity-based costing is

A. $1,200,000

B. $1,536,000

C. $1,664,000

D. $1,920,000

17) Which of the following factors would suggest a switch to activity-based costing?

A. Production managers use data provided by the existing system.

B. The manufacturing process has been stable.

C. Product lines similar in volume and manufacturing complexity.

D. Overhead costs constitute a significant portion of total costs.

18) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:

Mini AMaxi B

Direct labor hours15,00025,000

Machine setups600400

Machine hours24,00026,000

Inspections 800700

Overhead applied to Maxi B using traditional costing using direct labor hours is

A. $2,000,000

B. $1,670,000

C. $1,280,000

D. $1,536,000

19) Seran Company has contacted Truckel Inc. with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $11 per unit. Fixed costs are $12 per unit; however, $5 per unit is avoidable. Should Truckel make or buy the wickets?

A. Make; savings = $10,000

B. Make; savings = $20,000

C. Buy; savings = $25,000

D. Buy; savings = $10,000

20) Max Company uses 10,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is

A. $80,000

B. $70,000

C. $0

D. $10,000

21) Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of $20,000. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of $15,000, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why?

A. Repackage; receive profit of $10,000.

B. Scrap; incremental loss is $9,000.

C. Scrap; profit is $1,000 greater.

D. Repackage; revenue is $5,000 greater than cost.

22) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?

A. $6,000

B. $12,000

C. $18,000

D. $28,000

23) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?

A. It should sell an equal quantity of both.

B. Selling either results in the same additional income for the company

C. Beer

D. Wine

24) Hartley, Inc. has one product with a selling price per unit of $200, the unit variable cost is $75, and the total monthly fixed costs are $300,000. How much is Hartley’s contribution margin ratio?

A. 266.6%

B. 37.5%

C. 150%.

D. 62.5%.

25) Which cost is charged to the product under variable costing?

A. Fixed administrative expenses

B. Fixed manufacturing overhead

C. Variable administrative expenses

D. Variable manufacturing overhead

26) Orbach Company sells its product for $40 per unit. During 2005, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $10, direct labor $6, and variable overhead $2. Fixed costs are: $480,000 manufacturing overhead, and $60,000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is

A. $27

B. $18

C. $26

D. $16

27) Which cost is NOT charged to the product under variable costing?

A. Fixed manufacturing overhead

B. Direct labor

C. Variable manufacturing overhead

D. Direct materials

28) If standard costs are incorporated into the accounting system,

A. approval of the stockholders is required

B. it can eliminate the need for the budgeting process

C. the accounting system will produce information which is less relevant than the historical cost accounting system

D. it may simplify the costing of inventories and reduce clerical costs

29) The difference between a budget and a standard is that

A. standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system

B. a budget expresses management's plans, while a standard reflects what actually happened

C. a budget expresses a total amount while a standard expresses a unit amount

D. a budget expresses what costs were, while a standard expresses what costs should be

30) A standard cost is

A. the historical cost of producing a product last year

B. a cost which is paid for a group of similar products

C. a predetermined cost

D. the average cost in an industry

31) The standard rate of pay is $5 per direct labor hour. If the actual direct labor payroll was $19,600 for 4,000 direct labor hours worked, the direct labor price (rate) variance is

A. $500 favorable

B. $400 unfavorable

C. $500 unfavorable

D. $400 favorable

32) A company developed the following per-unit standards for its product: 2 pounds of direct materials at $6 per pound. Last month, 2,000 pounds of direct materials were purchased for $11,400. The direct materials price variance for last month was

A. $600 unfavorable

B. $11,400 favorable

C. $300 favorable

D. $600 favorable

33) The total variance is $10,000. The total materials variance is $4,000. The total labor variance is twice the total overhead variance. What is the total overhead variance?

A. $4,000

B. $1,000

C. $3,000

D. $2,000

34) Which of the following statements is FALSE?

A. The overhead volume variance is favorable if standard hours allowed for output is greater than the standard hours at normal capacity.

B. The overhead volume variance indicates whether plant facilities were used efficiently during the period.

C. The overhead volume variance relates solely to fixed costs.

D. The costs that cause the overhead volume variance are usually controllable costs.

35) The overhead volume variance relates only to

A. all manufacturing costs

B. variable overhead costs

C. both variable and fixed overhead costs

D. fixed overhead costs

36) If the standard hours allowed are less than the standard hours at normal capacity, the volume variance

A. will be greater than the controllable variance

B. will be unfavorable

C. will be favorable

D. cannot be calculated

37) During December, the capital budget indicates a $280,000 purchase of equipment. The ending November cash balance is budgeted to be $40,000. Cash receipts are $840,000, and cash disbursements are $610,000 during December. The company wants to maintain a minimum cash balance of $20,000. What is the minimum cash loan that must be planned to be borrowed from the bank during December?

A. $0

B. $50,000

C. $10,000

D. $30,000

38) Waco’s Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and 20,000 during July. Waco keeps 10% of the next month’s sales as ending inventory. How many units should Waco produce during June?

A. 19,000

B. 19,100

C. 21,000

D. 18,900

39) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000 widgets. Barry estimates it will sell 35,000 units during the first quarter of 2004 with a 10% increase in sales each quarter. Barry’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each widget costs $1 and is sold for $1.50. How much is budgeted sales revenue for the third quarter of 2004?

A. $42,350

B. $63,525

C. $63,000

D. $57,525

40) Prices are set by the competitive market when

A. a product is not easily distinguished from competing products

B. a company can effectively differentiate its product from others

C. there are no other producers capable of manufacturing a similar item

D. the product is specially made for a customer

41) In cost-plus pricing, the markup percentage is computed by dividing the desired ROI per unit by the

A. variable cost per unit

B. total manufacturing cost per unit

C. total cost per unit

D. fixed cost per unit

42) The cost-plus pricing approach's major advantage is

A. it can be used to determine a product’s target cost

B. that sales volume has no effect on per unit costs

C. it is simple to compute

D. it considers customer demand

BONUS QUESTIONS

Ch 1

1.Reports prepared in managerial accounting are general-purpose reports, whereas reports prepared in financial accounting are usually special-purpose reports. 

2.Managerial accounting information generally pertains to an entity as a whole and is very detaileD.   

3.Managerial accounting applies only to manufacturing companies. 

4.Determining the unit cost of manufacturing a product is an output of managerial accounting. 

MULTIPLE CHOICE QUESTIONS

Ch 2

5.What does cost accounting measure, record, and report?

a.Product costs

b.Future costs

c.Manufacturing processes

D. Managerial accounting decisions

6.Which one of the following is a major purpose of cost accounting?

A. To provide gross profit rates to managers

B. To allocate overhead costs to jobs

C. To classify all costs as direct or indirect

D. To measure, record, and report product costs

7.Which of the following represents the two basic types of cost accounting systems?

A. Job order and process cost systems

B. Job order and job accumulation systems

C. Job order and batch systems

D. Process cost and batch systems

8.Which of the following would be accounted for using a job order cost system?

A. The pasteurization of milk

B. The production of town homes

C. The production of textbooks

D. The production of cans of spinach

Ch 3

9.Which one of the following is a similarity of both a job order and a process cost system?

a.They both track direct materials and direct labor, but not manufacturing overheaD.  

B. They both track conversion costs, but not materials.

C. They both track the same three manufacturing cost elements – direct materials, direct labor, and manufacturing overheaD.  

D. They both are used for the same type of inventory production items.

10.How are costs assigned in a process cost system?

a.To only one work in process account

b.To work in process and finished goods inventory

c.To work in process, finished goods, and cost of goods sold

D. To multiple work in process accounts

11.In the Carter Company, there are 1,000 units in beginning work in process, 9,000 units started into production, and 800 units in ending work in process 40% completeD.  How many physical units are to be accounted for?

a.10,000

b.9,200

c.10,800

D. 8,800

12.What is a production cost report used for?

a.It is an external report provided to shareholders.

b.It shows costs charged to a department and costs accounted for.

c.It shows equivalent units of production but not physical units.

D. It shows the basis on which overhead is allocated

Ch 4

13.Which of the following is not typical of traditional costing systems?

A. Use of a single predetermined overhead rate.

B. Use of direct labor hours or direct labor cost to assign overheaD.  

C. Assumption of correlation between direct labor and incurrence of overhead cost.

D. Use of multiple cost drivers to allocate overhead

14.In traditional costing systems, overhead is generally applied based on

A. direct labor.

B. machine hours.

C. direct material dollars.

D. units of production.

15.An activity that has a direct cause-effect relationship with the resources consumed is a (n)

A. cost driver.

B. overhead rate.

C. cost pool.

D. product activity.

16.Which best describes the flow of overhead costs in an activity-based costing system?

A. Overhead costs ? direct labor cost or hours ? products

B. Overhead costs ? products

C. Overhead costs ? activity cost pools ? cost drivers ? products

D. Overhead costs ? machine hours ? products

Ch 5

17.Which one of the following is a cost which remains constant in total at various levels of activity?

A. A variable cost

B. A mixed cost

C. A fixed cost

D. A contribution margin

18.Which statement below describes a variable cost?

A. It varies in total with changes in the level of activity.

B. It remains constant in total over different levels of activity.

C. It varies inversely in total with changes in the level of activity.

D. It varies proportionately per unit with changes in the level of activity.

19.Which one of the following would most likely be considered a mixed cost?

A. Cost of using a copy machine

B. Direct labor

C. Supervisory salaries

D. Direct materials

20.Which one of the following is an assumption of CVP analysis?

A. Sales in units remains constant.

B. All costs are variable.

C. The change in beginning and ending inventories is reflected in the analysis.

D. The behavior of costs and revenues are linear within the relevant range.

21.Which one of the following is a consideration of CVP analysis?

A. The level of activity must remain constant over the relevant range.

B. Total fixed costs remain constant over the relevant range.

C. Total variable costs remain constant over the relevant range.

D. Cost behavior can change as long as total costs remain the same at all activity levels.

22.Which of the following is an underlying assumption of CVP analysis?

A. Factors other than changes in activity may affect costs.

B. Cost classifications are reasonably accurate.

C. Increases in inventories cause increase in total fixed costs.

D. Unit costs remain the same over the relevant range.

Ch 6

23.Which of the following is a major accounting contribution to the managerial decision-making process in evaluating possible courses of action?

A. Determine who is responsible for the decision.

B. Prepare internal reports that review the actual impact of a decision made.

C. Calculate how much should be invested for each potential project.

D. Select possible actions that management should consider.

24.Which one of the following is nonfinancial information that management might evaluate in making a decision?

A. Opportunity costs of a decision

B. Contribution margin

C. The effect on profit of a decision

D. The corporate profile in the community

25.Which one of the following is an alternative name for incremental analysis?

A. Managerial analysis

B. Cost analysis

C. Contribution margin analysis

D. Differential Analysis

Ch 7

26.Which cost is not charged to the product under variable costing?

A. direct materials.

B. direct labor.

C. variable manufacturing overheaD.  

D. fixed manufacturing overheaD.  

27.Which cost is not charged to the product under absorption costing?

A. direct materials.

B. direct labor.

C. variable manufacturing overheaD.  

D. fixed administrative expenses.

28.Absorption costing

A. is required under GAAP.

B. is required for external reporting purposes.

C. allows income to be manipulated through production decisions.

D. is (does) all of the above (a, b, and c).

Ch 8

29. The cost-plus pricing approach's major advantage is

A. it considers customer demanD.  

B. that sales volume has no effect on per unit costs.

C. it is simple to compute.

D. it can be used to determine a product’s target cost.

30. Factors that can affect pricing decisions include all of the following except

A. cost considerations.

B.  environment.

C.  pricing objectives.

D.  all of these are factors.

31. In most cases, prices are set by the

A. customers.

B. competitive market.

C. largest competitor.

D. selling company.

32.A company must price its product to cover its costs and earn a reasonable profit in

A. all cases.

B. its early years.

C. the long run.

D. the short run.

Ch 9

- STATEMENTS

33.Budgets represent management’s plans in financial terms.

34.Budgets promote efficiency and serve as a deterrent to waste.

35.A budget can be a means of communicating a company's objectives to external parties.

36.A budget facilitates coordination of activities within the business but is a poor tool for evaluating performance.

37.A budget is more beneficial if accepted by lower level management.

Ch 10

38.Budget reports comparing actual results with planned objectives should be prepared weekly to be most effective.

39.If actual results are different from planned results by a large amount, the difference should be investigated by management to achieve effective budgetary control.

40.Cash budget reports are often prepared daily, whereas others are prepared less frequently depending on the activities being monitoreD.   

41.The master budget is the basis of developing flexible budgets.

42.A flexible budget is more useful in evaluating a manager's performance than a static budget.

43.A static budget is one that is geared to the most profitable level of activity for a company.

Ch 11

44.Inventories cannot be valued at standard cost in financial statements.

45.Standard cost is the industry average cost for a particular item. 

46.A standard is a unit amount, whereas a budget is a total amount.

47.Standard costs may be incorporated into the accounts in the general ledger.

48.An advantage of standard costs is that they simplify costing of inventories and reduce clerical costs.

49.Setting standard costs is relatively simple because it is done entirely by accountants.

50.Normal standards should be rigorous but attainable.

ACC 349FINAL EXAM
 acc349 final exam examination

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Accounting chapter 6 and 7 quiz - MCQ03

MCQ

1. If goods in transit are shipped FOB destination

a. the transportation company has legal title to the goods while the goods are in transit
b. the buyer has legal title to the goods until they are delivered
c. the seller has legal title to the goods until they are delivered
d. no one has legal title to the goods until they are delivered.

2. An auto manufacturer would classify vehicles in various stages of production as

a. merchandise inventory
b. finished goods
c. work in process
d. raw materials

3. Cost of goods sold is computed from the following equation

a. beginning inventory – cost of goods purchased + ending inventory
b. sales + gross profit – ending inventory + beginning inventory
c. beginning inventory + cost of goods purchased – ending inventory
d. sales – cost of goods purchased + beginning inventory – ending inventory

4. The cost of goods available for sale is allocated between

a. beginning inventory and cost of goods on hand
b. ending inventory and cost of goods sold
c. beginning inventory and cost of goods purchased
d. beginning inventory and ending inventory

5. Which one of the following inventory method is often impractical to use?

a. LIFO
b. FIFO
c. Average cost
d. Specific identification

6. Companies adopt different cost flow methods for each of the following reasons except

a. income statement effects
b. balance sheet effects
c. cash flow effects
d. cash flow effects tax effects

7. In periods of rising prices, inventory method which results in the inventory value on the balance sheet that is closest to current cost is the

a. tax method
b. FIFO method
c. Average - cost method
d. LIFO method

8. The managers of Teng Company receive performance bonuses based on the net income of the firm. Which inventory costing method are they likely to favor in perods of declining prices?

a. physical inventory method
b. LIFO
c. Average cost
d. FIFO

9.The consistent application of an inventory costing method is essential for

a. accuracy
b. conservatism
c. comparability
d. efficiency

10. Inventory is reported in the financial statements at

a. market
b. the higher-of-cost-or-market
c. the lower-of-cost-or-market
d. cost

11. Isaac Company   developed the following information about its inventories in applying the lower-of-cost-or-market ( LCM ) basis in valuing inventories

          Product                              Cost                              Market

                A                              $ 110,000                    $ 120,000
          
                B                              $ 80,000                      $ 76,000

                C                              $ 160,000                    $ 162,000
If Isaac applies the LCM basis, the value of the inventory reported on the balance sheet would be

a. $ 342,000
b. $ 346,000
c. $ 350,000
d. $ 362,000

12. Understanding beginning inventory will understate

a. owner’s equity
b. assets
c. cost of goods sold
d. net income

13. Disclosures about inventory should include each of the following except the

a. major inventory classification
b. quantity of inventory
c. costing method
d. basis of accounting

14. In a period of rising prices, FIFO will have

a. lower net income than LIFO
b. lower cost of goods sold than LIFO
c. lower income tax expense than LIFO
d. lower net purchases than LIFO

15. Euler Company made an inventory count on December 31, 2008. During the count, one of the clerks made the error of counting an inventory item twice. For the balance sheet at December 31, 2008, the effects of this error are

        Assets                                              Liabilities                                        Equity

 a.    overstated                                      understated                                     overstated
 b.    understated                                    no effect                                         understated
 c.    overstated                                      no effect                                         overstated
 d.    overstated                                      overstated                                       understated 


16. “Generally accepted” in the phrase generally accepted accounting principles means that the principles

a. have been approved for use by the managements of business firms
b. have substantial authoritative support
c. are proven theories of accounting
d. have been approved by the Internal Revenue Service

17. The FASB concluded that the first level in developing the conceptual framework was to determine the

a. objective financial reporting
b. qualitative characteristics of accounting information
c. operating guidelines
d. elements of financial statements

18. Qualitative characteristics include all of the following except

a. relevance
b. reliability
c. profitability
d. comparability

19. An objective of financial reporting is to provide information that is mainly useful to

a. internal and external auditors
b. investors and creditors
c. governmental taxing bodies
d. employees and labor unions

20. An overriding criterion in evaluating the accounting information to be presented is

a. fairness 
b. management’s goal
c. decision usefulness
d. legality

21. Which one of the following is not a qualitative characteristic of useful accounting information?

a. comparability
b. relevance
c. reliability
d. conservatism

22. Accounting information should be neutral in order to enhance

a. Reliability
b. Feedback value
c. Relevancy
d. Predictive value

23. Qualitative characteristics associated with relevant accounting information are

a. consistency, faithful representation, and timeliness
b. going concern, cost principle, and materiality
c. predictive value, feedback value, and timeliness
d. neutrality, predictive value, reliability

24. The economic entity assumption states that

a. economic events can be identified with a particular entity
b. the accounting period should not exceed one year
c. it is assumed that the business will operate indefinitely
d. the economic life of a business can be divided into artificial time periods

25. The going concern principle may be inapplicable when

a. liquidation is assumed
b. fair market values are higher than costs
c. net realizable values can not be obtained
d. the business is just started-up

26. The revenue recognition principle

a. states that revenue should be recognized in the period when received
b. states that expense recognition is tied to revenue recognition
c. requires that revenue be recognized in the accounting period when it is earned
d. requires that events which make a difference to financial statement user be disclosed

27. Cost become expenses

a. when they are charged against revenues
b. at the end of the accounting period
c. when they are purchased
d. when they are paid

28. The information provided in the notes that accompany financial statements is required because of the

a. full disclosure principle
b. matching principle
c. cost principle
d. revenue recognition principle

29. Which of the following is a constraint in applying generally accepted accounting principles?

a. conservatism
b. cost
c. consistency
d. time period

30. Return on common stockholder’s equity is

a. net income divided by common equity
b. net income divided by total assets
c. net income divided by the number of common shares outstanding
d. net income divided by total stockholder’s equity


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QNT561 FINAL EXAM ANSWERS

1. The expected value of the a probability distribution

A.        Is the same as the random variable

B.         Is another term for the mean

C.        Is also called the variance

D.        Cannot be greater than 1

2. Which of the following is a correct statement about a probability?

A.        It may range from 0 to 1

B.         It may assume negative values

C.        It may be greater than 1

D.        It cannot be reported to more than 1 decimal place

3. An experiment is a

A.        Collection of events

B.         Collection of outcomes

C.        Always greater than 1

D.        The act of taking a measurement or the observation of some activity

4. Which level of measurement is required for the median?

A.        Nominal

B.         Ordinal

C.        Interval

D.        Ratio

5. Which level of measurement is required for the mode?

A.        Nominal

B.         Ordinal

C.        Interval

D.        Ratio

6. In a set of observations, which measure of central tendency reports the value that occurs most often?

A.        Mean

B.         Median

C.        Mode

D.        Geometric mean

7. The weighted mean is a special case of the

A.        Mean

B.         Median

C.        Mode

D.        Geometric mean

8. The relationship between the geometric mean and the arithmetic mean is

A.        They will always be the same

B.         The geometric mean will always be larger

C.        The geometric mean will be equal to or less than the mean

D.        The mean will always be larger than the geometric mean

9. Suppose you compare the mean of raw data and the mean of the same raw data grouped into a frequency distribution. These two means will be

A.        Exactly equal

B.         The same as the median

C.        The same as the geometric mean

D.        Approximately equal

10. In a set of 10 observations the mean is 20 and the median is 15. There are 2 values that are 6, and all other values are different. What is the mode?

A.        15

B.         20

C.        6

D.        None of the above

11. Which of the measures of central tendency is the largest in a positively skewed distribution?

A.        Mean

B.         Median

C.        Mode

D.        Cannot tell from the information given

12. Which of the following is not a measure of dispersion?

A.        Range

B.         Variance

C.        Standard deviation

D.        All of the above are measures of dispersion

13. A disadvantage of the range is

A.        Only two values are used in its calculation

B.         It is in different units than the mean

C.        It does not exist for some data sets

D.        All of the above

14. The mean deviation is

A.        Based on squared deviations from the mean

B.         Also called the variance

C.        Based on absolute values

D.        Always reported in squared units

15. The standard deviation is

A.        Based on squared deviations from the mean

B.         In the same units as the mean

C.        Uses all the observations in its calculation

D.        All of the above

16. The variance is

A.        Found by dividing by N by the mean

B.         In the same units as the original data

C.        Found by squaring the standard deviation

D.        All of the above

17. In a positively skewed distribution

A.        The mean, median, and mode are all equal

B.         The mean is larger than the median

C.        The median is larger than the mean

D.        The standard deviation must be larger than the mean or the median

18. Which of the following statements is  regarding the standard deviation?

A.        It cannot assume a negative value

B.         If it is zero, then all the data values are the same

C.        t is in the same units as the mean

D.        All the above are all correct

19. A uniform distribution is defined by

A.        Its largest and smallest value

B.         Largest value

C.        Smallest value

D.        None of the above

20. The normal approximation to the binomial is used when

A.        The sample size is at least 30

B.         Both np and n (1 - p) are at least 5

C.        The mean and the variance are the same

D.        The z value is greater than 0

21. A sample

A.        Is a part of the population

B.         Has more than 30 observations

C.        Is usually identified as N

D.        All of the above

22. Which of the following is not a reason for sampling?

A.        The destructive nature of certain tests

B.         The physical impossibility of checking all the items in the population

C.        The adequacy of sample results

D.        All of the above are reasons for sampling

23. Which of the following is not a method of probability sampling?

A.        Random sampling

B.         Systematic sampling

C.        Stratified sampling

D.        All of the above are methods of probability sampling

24. In a simple random sample

A.        Every kth item is selected to be in the sample

B.         Every item has a chance to be in the sample

C.        Every item has the same chance to be in the sample

D.        All of the above

25. Suppose a population consisted of 20 items. How many different sample of n = 3 are possible?

A.        6840

B.         1140

C.        20

D.        120

26. The difference between the sample mean and the population mean is called the

A.        Population mean

B.         Population standard deviation

C.        Standard error of the mean

D.        Sampling error

27. The mean of the all the sample means and the population mean will

A.        Always be equal

B.         Always be normally distributed

C.        Characterized by the standard error of the mean

D.        None of the above

28. We wish to develop a confidence interval for the population mean. The shape of the population is not known, but we have a sample of 40 observations. We decide to use the 92 percent level of confidence. The appropriate value of z is:

A.        1.96

B.         1.65

C.        2.58

D.        1.75

29. Which of the following statements is not a characteristic of the t distribution.

A.        It is a continuous distribution

B.         It has a mean of 0

C.        It is symmetrical

D.        Like z there is only one t distribution

30. We wish to develop a confidence interval for the population mean. The population follows the normal distribution and we have a sample of 10 observations. We decide to use the 90 percent level of confidence. The appropriate value of to represent the level of confidence is

A.        z =1.65

B.         z = 1.96

C.        t = 1.833

D.        t = 1.812

37. The fraction or ratio of a sample possessing a certain trait is called

A.        Population

B.         Mean

C.        Confidence interval

D.        Proportion

32. To develop a confidence interval for a proportion

A.        We need to meet the binomial conditions

B.         The sample should be at least 100

C.        p should be less than .05

D.        None of the above

33. The finite population correction factor is used when

A.        n is more than 30

B.         N is more than 1000

C.        n is greater than 5

D.        n/N is more than .05

34. We wish to estimate the population proportion. We want to be 95 percent confident of our results and we want the estimate to be with .01 of the population parameter. No estimate of the population proportion is available. What value should we use for p?

A.        1.96

B.         .01

C.        .50

D.        We cannot complete the problem, we need more information.

35. The null hypothesis

A.        Is a statement about the value of the population parameter

B.         Will always contain the equal sign

C.        Cannot include values less than 0

D.        Both a and b are correct

36. The alternate hypothesis

A.        Is accepted if the null hypothesis is rejected

B.         Will always contain the equal sign

C.        Tells the value of the sample mean

D.        None of the above

37. The level of significance

A.        Is frequently .05 or .01

B.         Can be any value between 0 and 1.

C.        Is the likelihood of rejecting the null hypothesis when it is .

D.        All of the above.

38. A Type I error is

A.        The correct decision

B.         A value determined from the test statistic

C.        Rejecting the null hypothesis when it is

D.        Accepting the null hypothesis when it is .

39. The critical value is

A.        Calculated from sample information

B.         Cannot be negative

C.        The point that divides the acceptance region from the rejection region

D.        A value determined from the test statistic

40. In a one-tailed test

A.        The rejection region is in one of the tails

B.         The rejection region is split between the tails

C.        The p-value is always less than the significance level

D.        The p-value is always more than the significance level

41Which of the following is not a requirement for the two-sample test of means for independent samples when both samples contain less than 30 observations?

A.        Normal populations

B.         Equal population standard deviations

C.        Equal sample sizes

D.        All of the above are required.

42To conduct a test of hypothesis for dependent samples we assume that

A.        The distribution of the difference between the paired observations follows the normal distribution

B.         Both samples are at least 30

C.        The samples are unrelated

D.        All of the above

43When conducting a test of hypothesis for the dependent samples

A.        We should have at least 30 pairs.

B.         The significance level is more than .05.

C.        The p-value is more than .10.

D.        None of the above

44Which of the following is not necessary to determine a p-value?

A.        Knowledge of whether the test is one-tailed or two-tailed

B.         The value of the test statistic

C.        The level of significance

D.        All of the above are needed

45In a two-way ANOVA the second source of variation is due to

A.        Random error

B.         Blocks

C.        Total variation

D.        None of the above

46uppose we conduct an ANOVA test of four treatment means and reject the null hypothesis. Construction of a confidence interval for the difference between the first and second sample mean revealed the interval to be 10 plus or minus 12. We conclude

A.        This pair of means differ

B.         This pair of means does not differ

C.        Because we do not know the units involved, we cannot draw any conclusion

D.        Because we do not know the degrees of freedom, we cannot draw any conclusion

47Which of the following is not an assumption required for ANOVA?

A.        The populations are normally distributed

B.         The populations have equal standard deviations

C.        The samples are independent.

D.        All of the above.

48Which of the following is not a characteristic of the F distribution?

A.        It is a discrete distribution

B.         In cannot be negative

C.        It is based on two sets of degrees of freedom

D.        All of the above

47In a multiple regression equation there

A.        Are two or more independent variables

B.         Is only one dependent variable

C.        Is one intercept value

D.        All of the above

50A dummy variable or indicator variable

A.        May assume only a value of 0 or 1

B.         Is another term for the dependent variable

C.        Is found by (Y - Y')

D.        Is equal to Y'

51 In the ANOVA table the value of k is

A.        The number of independent variables

B.         The total number of observations

C.        The number of degrees of freedom

D.        The sum of squares total

52. Multicollinearity occurs when

A.        The residuals are correlated

B.         Time is involved in the analysis

C.        The independent variables are correlated

D.        The residuals are not constant for all Y' values

53. A correlation matrix

A.        Shows all simple coefficients of correlation

B.         Shows all possible net regression coefficients

C.        Shows the correlations that are positive

D.        Reports the multiple regression equation

54. To conduct a nonparametric test the

A.        Population must follow the normal distribution

B.         The standard deviation must be known

C.        It is not necessary to make any assumption about the shape of the population

D.        The data must be at least interval scale

55. In a goodness-of-fit test where the sample size is 200, there are 5 categories, and the significance level is .05. The critical value of X2 is

A.        9.488

B.         11.070

C.        43.773

D.        None of the above

56. In a goodness-of-fit test

A.        All the cell frequencies must be the same

B.         There must be at least 30 observations

C.        Forty percent of the cells must contain at least 10 observations

D.        None of the above

57. In a contingency table

A.        The number of rows must be the same as the number of columns

B.         A variable is classified according to two criteria

C.        There must be at least 10 observations in each cell

D.        All of the above

58. In a contingency table a sample of 400 people is classified by gender and hair color (4 groups: blond, brown, black, and red). How many degrees of freedom are there?

A.        3

B.         8

C.        399

D.        None of the above

59. To find the expected frequency in a contingency table

A.        Take the square root of the degrees of freedom

B.         Multiple the row total by the column total and divide the result by the grand total

C.        Use the total number of observations minus one

D.        None of these

60. Suppose we select a sample of 100 observations and organize them into 6 categories. We wish to investigate whether the number of observations could be the same in each of the categories in the population. How many degrees of freedom are there?

A.        5

B.         97

C.        3

D.        None of these

61. To conduct the sign test, we assume

A.        The population is normally distributed

B.         The scale of measurement is interval

C.        The samples are dependent

D.        There are at least 20 observations in the sample

62. An index

A.        Shows a percent change from one period to another

B.         Must be larger than 100

C.        Can employ qualitative data

D.        Cannot assume negative values

63        The role of statistics is business research is to capture a population’s characteristics by using inferential statistics from a sample’s characteristics –

64. To conduct a one sample test of means and use the z distribution as the test statistic

A.        We need to know the population mean

B.         We can use the sample standard deviation provided np is at least 30

C.        We need np to be at least 5

D.        Both a and b are correct

65. A p-value is

A.        The same as the population proportion

B.         The same as the significance level

C.        The fraction of the population that has a particular characteristic

D.        The probability of finding a value of the test statistic this extreme when the null hypothesis is

66. A Type II error occurs when

A.        We accept a  null hypothesis

B.         We reject a  alternate hypothesis

C.        We reject a  null hypothesis

D.        None of the above

67. Which of the following statements are correct when deciding whether to use the z or the t distribution?

A.        Use z when the sample size is 30 or more

B.         Use z when we have a normal population and we know the standard deviation

C.        Use t when the population is normal, the population standard deviation is not known, and n is less than 30

D.        All of the above statements are correct

68. In a two-sample test of means for independent samples, the equal sign always appears in

A.        The null hypothesis

B.         The alternate hypothesis

C.        The upper tail of the test statistic

D.        None of the above

69. In a two-sample test of means for independent samples, we use the z distribution when

A.        The population standard deviations are equal

B.         Both populations are positively skewed

C.        Both samples are at least 30

D.        n and n(1-) are both greater than 5

70. Which of the following is a requirement for a two-sample test of proportions

A.        The population standard deviations are equal.

B.         Both populations are positively skewed

C.        Both samples are at least 30.

D.        n and n(1-) are both greater than 5

71 Which of the following measures of central location is affected most by extreme values?

A. Mean

B. Median

C. Geometric mean      

D. Mode         

72 Which level of measurement is required for the mode?

A.Ordinal

B.Nominal

C.Ratio              

D.Interval        

73 A difference between calculating the sample mean and the population mean is:

A.We divide the sum of the observations by n - 1 instead of n      

B.Only in the symbols, we use instead of µ and n instead of N.     

C.There are no differences.         

D.The observations are ranked and select the middle value for the         population mean.         

74 In which of the following distributions is the probability of a success usually small?

A. Poisson          

B. Binomial         

C. All distribution            

D. Hypergeometric      

75 The difference between a random variable and a probability distribution is:

A.A random variable does not include the probability of an event.            

B.A random variable can only assume whole numbers.    

C.A probability distribution can only assume whole numbers.       

D.None of the above.  

76 The mean and the variance are equal in

A.The hypergeometric distribution.          

 B.The binomial distribution.        

 C.All probability distributions.    

 D. The Poisson distribution.

             

77 In a simple random sample

 A. Every Kth item is selected to be in the sample.           

 B. Every item has a chance to be in the sample.              

 C. Every item has the same chance to be in the sample.              

 D. All of these

78 A sample

 A. Is part of the population.       

 B. Has more than 30 observations.         

 C. Is usually identified as N.       

 D. All of these

79 The difference between the sample mean and the population mean is called the

 A. Sampling error.         

 B. Population standard deviation.           

 C. Population mean.      

 D. Standard error of the mean.

80 We wish to develop a confidence interval for the population mean. The shape of the population is not known, but we have a sample of 40 observations. We decide to use the 92% level of confidence. The appropriate value of z is:

 A. 1.75             

 B. 1.65              

 C. 1.96             

 D. 2.58          

81 We wish to develop a confidence interval for the population mean. The population follows the normal distribution, the standard deviation of the population is 3, and we have a sample of 10 observations. We decide to use the 90% level of confidence. The appropriate value of to represent the level of confidence is

 A. t=1.812        

 B. z=1.96          

 C. z =1.65         

 D. t=1.833     

82 A point estimate is

 A. Always an estimate of the population mean.   

 B. Always equal to the population value.            

 C. An estimate of the population parameter.       

 D. None of these        

83 We use the General Rule of Multiplication to combine

 A. Events based on subjective probabilities        

 B. Mutually exclusive events.      

 C. Events that are not independent.        

 D. Events that total more than 1.00.    

84. If the two samples are not independent, their population means can still be compared using the ____________ statistic.

A.        . paired t

B.         . Z

C.        . F

D.        . chi-square

85 Which of the following is/are an appropriate null hypothesis for a two-sided test of the difference between two population means? 1. H0: ?1 = ?2 2. H0: ?1 ? ?2 3. H0: ?1 – ?2 = 0

A.        . 1

B.         . 2

C.        . 3

D.        . both 1 and 3

86 An experiment is a:

 A.The act of taking a measurement or the observation of                                  some activity.      

B.Collection of outcomes.           

C.Collection of events     

D. Always greater than 1.        

87 Which of the following is a correct statement about a probability?

A. It cannot be reported to more than 1 decimal place.    

 B. It may assume negative values.           

 C. It may range from 0 to 1.       

D. It may be greater than 1.     

88 Which of the following statements is  regarding a population?

A. It must be a large number of values.    

B. It must refer to people.           

C. It is a collection of individuals, objects, or measurements.        

 D None of these         

89 Which of the following statements is  regarding a sample?

A. It is a part of population.        

B. It must contain at least five observations.         

C. It refers to descriptive statistics           

D. All of these are correct        

90 A discrete variable is

A. Cannot be negative.   

B. Can assume only whole number values.           

C. An example of a qualitative variable.   

D. Can assume only certain clearly separated values     

91 In a two-sample test of means for independent samples, the equal sign always appears in

A. The null hypothesis.    

B. The alternate hypothesis.        

C. The upper tail of the test statistic.        

D. None of these         

92 In a two-sample test of means for independent samples, we use the z distribution when

A. nB and n(1-B) are both greater than 5.           

B. Both populations have at least 4,000 observations.      

C The population standard deviations are equal.              

D. Both population standard deviations are known.      

93) A Type I error is

 A. Accepting the null hypothesis when it is .        

 B. A value determined from the test statistic        

 C. The correct decision              

 D. Rejecting the null hypothesis when it is          

94 To conduct a nonparametric test the.

 A. The data must be at least interval scale.          

 B. The standard deviation must be known.         

 C. Population must follow the normal distribution.           

 D. It is not necessary to make any assumption about the shape of the population.         

95 In a contingency table a sample of 400 people is classified by gender and hair color (4 groups: blond, brown, black, and red). How many degrees of freedom are there?

 A. 3      

 B. 8       

 C. 399              

 D. None of these        

96 In a contingency table

 A. The number of rows must be the same as the number of columns.       

 B. A variable is classified according to two criteria.         

 C. There must be at least 10 observations in each cell.    

 D. All of these

97 The multiple standard error of estimate is

 A. Is based on the (Y - Y)2.  

 B. Is negative when one of the net regression coefficients is 0.     

C.Is found by taking the square root of SSR/SS total.      

D.All of these  

98 In the ANOVA table the value of k is

 A.The sum of squares total.        

 B.The total number of observations        

 C.The number of independent variables.             

 D.The number of degrees of freedom. 

99 A dummy variable or indicator variable

 A. Is equal to Y             

B. Is another term for the dependent variable.      

C. May assume only a value of 0 or 1.    

D. Is found by (Y - Y).

100 Suppose we have a population that follows the normal distribution. Which of the following statements is correct regarding the distribution of sample means?

A.        The population standard deviation is always unknown

B.         The distribution of samples means will follow the uniform distribution

C.        The distribution of the sample means will also follow the normal distribution

D.        None of the above is correct

101 Suppose we have a population that does not follow the normal distribution. If we select sample of what size will the distribution approximate the normal distribution?

A.        2

B.         5

C.        20

D.        30

102 The standard error of the mean is

A.        The standard deviation of the sampling distribution of sample means

B.         Always normally distributed

C.        Sometimes less than 0

D.        None of the above

103 A point estimate is

A.        Always an estimate of the population mean

B.         Always equal to the population value

C.        An estimate of the population parameter

D.        None of the above

104 A confidence interval

A.        Always includes the population parameter

B.         Decreases in width as the sample size is increased

C.        Cannot include a value of 0

D.        None of the above

105 If we wished to decrease the width of a confidence interval, we would not do which of the following

A.        Increase the size of the sample

B.         Reduce the size of the population

C.        Decrease the level of confidence

D.        None of the above

106 Under which of the following conditions would the standard deviation assume of negative value

A.        When all the data values were negative

B.         When more than half of the data values were negative

C.        If all the data values were the same

D.        The standard deviation cannot be negative

107 The difference between a histogram and a bar chart is:

A.        The midpoints are connected with a histogram but not with a bar chart

B.         The bars must be next to each other on a histogram and separated in a bar chart

C.        Cumulative frequencies are required in a bar chart

D.        None of the above

108 The appropriate alternative hypothesis for a lower tail test to determine if mean body weight of all the men who have joined a health club is less than 185 pounds would be

A.        HA: μ ≥ 185 lb

B.         HA: μ < 185 lb

C.        HA: μ = 185 lb

D.        HA: μ ≠ 185 lb

109 The normal distribution is a

A.        Discrete distribution

B.         Continuous distribution

C.        Positively skewed distribution

D.        None of the above

110Which of the following are characteristics of the normal distribution?

A.        It is a symmetric distribution

B.         It is bell-shaped

C.        It is asymptotic

D.        All of the above

111Which of the following are correct statements about a normal distribution?

A.        It cannot assume negative numbers

B.         It is defined by its mean and standard deviation

C.        All normal distributions have a variance of at least 1

D.        All of the above are correct

112 Which of the following statements is correct regarding the standard normal distribution

A.        It is also called the z distribution

B.         Any normal distribution can be converted to the standard normal distribution

C.        The mean is 0 and the standard deviation is 1

D.        All of the above are correct

113 The area under a normal curve between 0 and -1.75 is

A.        .0401

B.         .9599

C.        .4599

D.        None of the above.

114 The continuity correction factor is used when

A.        The sample size is at least 5

B.         Both np and n (1 - p) are at least 30

C.        A continuous distribution is used to approximate a discrete distribution

D.        The standard normal distribution is applied

115 The difference between the sample mean and the population mean is called the:

A.        Sampling error.

B.         Population standard deviation.

C.        Population mean.

D.        Sandard error of the mean.

116 A confidence interval:

A.        Always includes the population parameter.

B.         Decreases in width as the sample size is increased

C.        Cannot include a value of 0

D.        None of these

117 The alternate hypothesis

A.        None of these

B.         Will always contain the equal sign.

C.        Is accepted if the null hypothesis is rejected

D.        Tells the value of the sample mean.

118 To conduct a nonparametric test the.

A.        The data must be at least interval scale.

B.         The standard deviation must be known.

C.        Population must follow the normal distribution.

D.        It is not necessary to make any assumption about the shape of the population

119  In the ANOVA table the value of k is

A.        The sum of squares total.

B.         The total number of observations

C.        The number of independent variables.

D.        The number of degrees of freedom.

120 The difference between a random variable and a probability distribution is

A.        A random variable does not include the probability of an event

B.         A random variable can only assume whole numbers

C.        A probability distribution can only assume whole numbers

D.        None of the above

121. Which of the following is not a requirement of a binomial distribution?

A.        A constant probability of success

B.         Only two possible outcomes

C.        A fixed number of trails

D.        Equally likely outcomes

122 The mean and the variance are equal in

A.        All probability distributions

B.         The binomial distribution

C.        The Poisson distribution

D.        The hypergeometric distribution

123. Bayes' Theorem

A.        Is an example of subjective probability

B.         Can assume of value less than 0

C.        Is used to revise a probability based on new or additional information

D.        Is found by applying the complement rule

124. The difference between a permutation and a combination is

A.        In a permutation order is important and in a combination it is not

B.         In a permutation order is not important and in a combination it is important

C.        A combination is based on the classical definition of probability

D.        A permutation is based on the classical definition of probability

125. A difference between calculating the sample mean and the population mean is

A.        Only in the symbols, we use instead of µ and n instead of N

B.         We divide the sum of the observations by n - 1 instead of n

C.        The observations are ranked and select the middle value for the population mean

D.        There are no differences

126. Which of the following measures of central location is affected most by extreme values?

A.        Median

B.         Mean

C.        Mode

D.        Geometric mean

127. In which of the following distributions is the probability of a success usually small?

A.        Binomial

B.         Poisson

C.        Hypergeometric

D.        All distribution

128. Which of the following is not a requirement of a probability distribution?

A.        Equally likely probability of a success

B.         Sum of the possible outcomes is 1.00

C.        The outcomes are mutually exclusive

D.        The probability of each outcome is between 0 and 1

129 For a binomial distribution

A.        n must assume a number between 1 and 20 or 25

B.         p must be a multiple of .10

C.        There must be at least 3 possible outcomes

D.        None of the above

 130. Events are independent if

A.        By virtue of one event happening another cannot.

B.         The probability of their occurrence is greater than 1.

C.        We can count the possible outcomes.

D.        The probability of one event happening does not affect the probability of another event happening.

E.         None of the above.

131 . The Special Rule of Addition is used to combine

A.        Independent events.

B.         Mutually exclusive events

C.        Events that total more than one.

D.        Events based on subjective probabilities

E.         Found by using joint probabilities.

132. We use the General Rule of Multiplication to combine

A.        Events that is not independent.

B.         Mutually exclusive events.

C.        Events that total more than 1.00.

D.        Events based on subjective probabilities

E.         Found by using joint probabilities.

133 A nominal scale variable is

A.        Cannot have more than two categories.

B.         Has a meaningful zero point.

C.        Usually the result of counting something

D.        May assume negative values.

134. We wish to develop a confidence interval for the population mean. The shape of the population is not known, but we have a sample of 40 observations. We decide to use 92% level of confidence. The appropriate values of Z is:

A.        1.65

B.         1.96

C.        2.58

D.        1.75

135. Which of the following is a correct statement about a probability?

A.        It may range from 0 to 1.

B.         It may assume negative values.

C.        It may be greater than 1.

D.        It cannot be reported to more than 1 decimal place.

E.         All the above are correct.

136. An experiment is a

A.        Collection of events.

B.         Collection of outcomes.

C.        Always greater than 1.

D.        The act of taking a measurement or the observation of some activity.

E.         None of the above is correct.

137. Which of the following is not a type of probability?

A.        Subjective

B.         Independent

C.        Relative frequency

D.        Classical

138. We use the General Rule of Multiplication to combine

A.        Mutually exclusive events

B.         Events that is not independent

C.        Events that total more than 1.00

D.        Events based on subjective probabilities

139. Which of the following is not a type of probability?

A.        Independent

B.         Subjective

C.        Relative frequency

D.        Classical

140. Which of the following is a correct statement about probability?

A.        It may assume negative values

B.         It may range from 0 to 1

C.        It may be greater than 1

D.        It cannot be reported to more than 1 decimal place

141. The ratio scale of measurement

A.        Is usually based on counting

B.         Usually involves ranking

C.        Has a meaningful zero point

D.        Cannot assume negative values

1421. Which of the following statements is  regarding a population?

A.        It must be a large number of values

B.         It must refer to people

C.        It is a collection of individuals, objects, or measurements

D.        Non of these

143. Which of the following statements is  regarding samples?

A.        It is a part of population

B.         It must contain at least five observations

C.        It refers to descriptive statistics

D.        All of these are correct.

144. A type I error is

A.        Accepting the null hypothesis when it is

B.         The correct decision

C.        Rejecting the null hypothesis when it is

D.        A value determined from the test statistics

145. Which of the following is a requirement for a two-sample test of proportions?

A.        nB and n(1-B) are both greater than 5

B.         The population standard deviations are equal

C.        Both samples are at least 30

D.        Both populations are positively skewed

146. Which of the following is not a characteristic of the X2?

A.        It approaches a normal distribution as the degree of freedom increases

B.         Its shape is based on the sample size

C.        It is positively skewed

D.        It is not negative

147. In a contingency table a sample of 400 people is classified by gender and hair color(4 groups: blond, brown, black and red). How many degrees of freedom are there?

A.        3

B.         8

C.        399

D.        None of these

148. In a goodness-of-fit test where the sample size is 200, there are 5 categories, and the significant level in .05. The critical value of X2 is.

A.        9.488

B.         11.070

C.        43.733

D.        None of these

149. A sample

A.        Is part of the population

B.         Have more than 30 observations

C.        Is usually identified as N

D.        All of these

150. The difference between the sample mean and the population mean is called the:

A.        Population standard deviation

B.         Population mean

C.        Standard error of the mean

D.        Sampling error

151. Suppose a population consisted of 20 items, how many different sample of n=3 are possible?

A.        1140

B.         6840

C.        20

D.        120

152. A confidence internal

A.        Always include the population parameter

B.         Decreases in width as the sample increases

C.        Cannot include a value of 0

D.        None of these

153. When we find the probability of an event happening by subtracting the probability of the event not happening from 1, we are using

A.        Subjective probability

B.         The complement rule.

C.        The general rule of addition.

D.        The special rule of multiplication

E.         Joint probability

154. When we determine the number of combinations

A.        We are really computing a probability.

B.         The order of the outcomes is not important.

C.        The order of the outcomes is important.

D.        We multiple the likelihood of two independent trials.

E.         None of the above.

155. Bayes' Theorem

A.        Is an example of subjective probability

B.         Can assume of value less than 0.

C.        Is used to revise a probability based on new or additional information.

D.        Is found by applying the complement rule.

E.         None of the above.

156. The difference between a permutation and a combination is:

A.        In a permutation order is important and in a combination it is not.

B.         In a permutation order is not important and in a combination it is important.

C.        A combination is based on the classical definition of probability.

D.        A permutation is based on the classical definition of probability.

E.         None of the above.

157. Which of the following is not a measure of dispersion?

A.        Range

B.         Variance

C.        Standard deviation

D.        All of the above are measures of dispersion

158. A disadvantage of the range is

A.        Only two values are used in its calculation.

B.         It is in different units than the mean.

C.        It does not exist for some data sets.

D.        All of the above.

159. The mean deviation is

A.        Based on squared deviations from the mean.

B.         Also called the variance.

C.        Based on absolute values.

D.        Always reported in squared units.

160. The standard deviation is

A.        Based on squared deviations from the mean.

B.         In the same units as the mean.

C.        Uses all the observations in its calculation.

D.        All of the above.

161. The variance is

A.        Found by dividing by N by the mean.

B.         In the same units as the original data.

C.        Found by squaring the standard deviation.

D.        All of the above.

162. In a positively skewed distribution

A.        The mean, median, and mode are all equal.

B.         The mean is larger than the median.

C.        The median is larger than the mean.

D.        The standard deviation must be larger than the mean or the median.

163. The quartile deviation is

A.        The square root of the variance.

B.         Based on the middle 50 percent of the observations.

C.        In squared units of the original data.

D.        Appropriate only for symmetric distributions.

165. In a symmetric distribution

A.        The mean, median, and mode are equal.

B.         The mean is the largest measure of location.

C.        The median is the largest measure of location.

D.        The standard deviation is the largest value.

166. A coefficient of skewness of -2.73 was computed for a set of data. We conclude that

A.        The mean is larger than the median.

B.         The median is larger than the mean.

C.        The standard deviation is a negative number.

D.        Something is wrong because the coefficient of skewness cannot be less than -1.00.

167. Which of the following statements is  regarding the standard deviation?

A.        It cannot assume a negative value.

B.         If it is zero, then all the data values are the same.

C.        It is in the same units as the mean.

D.        All the above are all correct.

168. A difference between calculating the sample mean and the population mean is

A.        Only in the symbols, we use instead of ? and n instead of N.

B.         We divide the sum of the observations by n - 1 instead of n.

C.        The observations are ranked and select the middle value for the population mean.

D.        There are no differences.

169. Which of the following measures of central tendency is affected most by extreme values?

A.        Median

B.         Mean

C.        Mode

D.        Geometric mean

170. Which level of measurement is required for the median?

A.        Nominal

B.         Ordinal

C.        Interval

D.        Ratio

171. Which level of measurement is required for the mode?

A.        Nominal

B.         Ordinal

C.        Interval

D.        Ratio

172. In a set of observations, which measure of central tendency reports the value that occurs most often?

A.        Mean

B.         Median

C.        Mode

D.        Geometric mean

173. The weighted mean is a special case of the

A.        Mean

B.         Median

C.        Mode

D.        Geometric mean

174. The relationship between the geometric mean and the arithmetic mean is

A.        They will always be the same.

B.         The geometric mean will always be larger.

C.        The geometric mean will be equal to or less than the mean.

D.        The mean will always be larger than the geometric mean.

175. Suppose you compare the mean of raw data and the mean of the same raw data grouped into a frequency distribution. These two means will be

A.        Exactly equal.

B.         The same as the median.

C.        The same as the geometric mean.

D.        Approximately equal.

176. In a set of 10 observations the mean is 20 and the median is 15. There are 2 values that are 6, and all other values are different. What is the mode?

A.        15

B.         20

C.        6

D.        None of the above.

177. Which of the measures of central tendency is the largest in a positively skewed distribution?

A.        Mean

B.         Median

C.        Mode

D.        Cannot tell from the information given.

178. In a goodness-of-fit test where the sample size is 200, there are 5 categories, and the significance level is .05. The critical value of X2 is

A.        9.488

B.         11.070

C.        43.773

D.        None of these

179. The mean and the variance are equal in

A.        All probability distributions.

B.         B. The binomial distribution.

C.        C. The Poisson distribution.

D.        D. The hypergeometric distribution.

180. Which of the following is not a requirement of a binomial distribution?

A.        A constant probability of success.

B.         B. Only two possible outcomes.

C.        C. A fixed number of trails.

D.        D. Equally likely outcomes.

181. In which of the following distributions is the probability of a success usually small?

A.        Binomial

B.         Poisson

C.        Hyper geometric

D.        All distribution

182. In a goodness-of-fit test where the sample size is 200, there are 5 categories, and the significance level is .05. The critical value of X2 is

A.        9.488

B.         11.070

C.        43.773

D.        None of these

183. In a contingency table

A.        The number of rows must be the same as the number of columns.

B.         A variable is classified according to two criteria.

C.        There must be at least 10 observations in each cell.

D.        All of these

184. In a two-sample test of means for independent samples, we use the z distribution when

A. Both population standard deviations are known

B.         nB and n(1-B) are both greater than 5

C.        The population standard deviations are equal

D.        Both populations have at least 4,000 observations.

185. A discrete variable is

A.        Can assume only certain clearly separated values

B.         Cannot be negative

C.        An example of a qualitative variable

D.        Can assume only whole number values.

186. Which of the following statements is  regarding a sample?

A.        It is a part of population

B.         It must contain at least five observations

C.        It refers to descriptive statistics

D.        All of these are correct

187. A point estimate is

A.        Always an estimate of the population mean

B.         Always equal to the population value

C.        An estimate of the population parameter

D.        None of these

188. Which of the following statements is not a characteristic of the t distribution?

A.        It is symmetrical

B.         Like z there is only one t distribution

C.        It is a continuous distribution

D.        It has a mean of 0.

189. A nominal scale variable is

A.        Cannot have more than two categories.

B.         B. Has a meaningful zero point.

C.        C. Usually the result of counting something

E.         May assume negative values.

190: What area under the standard normal curve falls outside the Z values -1.96 and 1.96?

A. 0.05

B. 0.01

C. 0.90

D. 0.10

191 Which level of measurement is required for the median?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

192 The weighted mean is a special case of the:

A. Mean

B. Median

C. Mode

D. Geometric mean

193 In a set of observations, which measure of central tendency reports the value that occurs most often?

A. Mean

B. Median

C. Mode

D. Geometric mean

194 The mean and the variance are equal in

A. All probability distributions.

B. The binomial distribution.

C. The Poisson distribution.

D. The hypergeometric distribution.

195 Which of the following is not a requirement of a binomial distribution?

A. A constant probability of success.

B. Only two possible outcomes.

C. A fixed number of trails.

D. Equally likely outcomes.

196 In which of the following distributions is the probability of a success usually small?

A. Binomial

B. Poisson

C. Hypergeometric

D. All distribution

197 A sample

A. Is part of the population.

B. Has more than 30 observations.

C. Is usually identified as N.

D. All of these

198 If each of a set of raw scores is transformed into a Z-score, the new distribution will have a standard deviation equal to

A. zero.

B. one.

C. the mean of the original distribution.

D. the standard deviation of the original distribution.

199 Which of the following random variables are continuous and which are discrete?

1. Score in a IQ Test

2. number of kittens in a litter

3C. number of cars crossing a Traffic Light in one hour

4. the number of rainy days in a month

A. 1, 2 continuous; 3, 4 discrete

B. 1, 3, 4 continuous; 2 discrete

C. 4 continuous; 1, 2, 3 discrete

D. 1 continuous; 2, 3, 4 discrete

200 A factor that is varied by an experimenter in order to assess its effect is known as a(n):

A. dependent variable

B. independent variable

C. control variable

D. none of the above

201  For students' distribution, 90 percent of the area lies between t = -1.895 and t = 1.895 if the degrees of freedom are:

A. 6

B. 3

C. 7

D. 8

202 When (for what level of confidence) do we use Z = 1.645, for a two-sided test or confidence interval?

A. 90%

B. 95%

C. 80%

D. 100%

203 Which nonparametric test is analogous to a parametric two-sample t-test for means?

A. Wald-Wolfowitz test

B. Wilcoxon signed rank test

C. Mann-Whitney test

D. Kruskal-Wallis test

204 Which nonparametric test is analogous to a parametric t-test for differences in paired data?

A. Wald-Wolfowitz test

B. Wilcoxon signed rank test

C. Mann-Whitney test

D. Kruskal-Wallis test

205: Which nonparametric test is analogous to a one-factor ANOVA?

A. Wald-Wolfowitz test

B. Wilcoxon signed rank test

C. Mann-Whitney test

D. Kruskal-Wallis test

206 A linear regression between Y and X produced the following equation for the least squares line:

= -4.3 + 2.1x

Which of the following statements concerning this relationship is ?

A. For every one-unit increase in X, Y increases 4.3 units.

B. For every one-unit increase in X, Y decreases 2.1 units.

C. For every one-unit increase in X, Y decreases 4.3 units.

D. For every one-unit increase in X, Y increases 2.1 units.

207 The difference between an observed value of the dependent variable and its predicted value obtained from the regression equation is called a(n)

A. extrapolation.

B. interpolation.

C. residual.

D. mean deviation.

208 A regression line has been found and the statistician wants to know if the line has a slope. What is the appropriate null hypothesis to test?

A. H0: β1 = 0.

B. H0: β1 > 0.

C. H0: β1 < 0.

D. H0: β1 ≠ 0.

209 The continuity correction factor is used when

A. The sample size is at least 5

B. Both nπ and n(1 - π) are at least 30.

C. A continuous distribution is used to approximate a discrete distribution

D. The standard normal distribution is applied

210 A uniform distribution is defined by

A. Its largest and smallest value

B. Largest value

C. Smallest value

D. None of the above

211 The normal approximation to the binomial is used when

A. The sample size is at least 30

B. Both nπ and n(1 - π) are at least 5

C. The mean and the variance are the same

D. The z value is greater than 0

212 In the standard normal distribution, what is the probability of finding a z value between -1.25 and -1.00?

A. 0.3944

B. 0.3413

C. 0.7357

D. 0.0531

213 The standard error of the mean is

A. The standard deviation of the sampling distribution of sample means

B. Always normally distributed

C. Sometimes less than 0

D. None of the above

214 Suppose we have a population that does not follow the normal distribution. If we select sample of what size will the distribution approximate the normal distribution?

A. 2

B. 5

C. 20

D. 30

215 The mean of the all the sample means and the population mean will

A. Always be equal

B. Always be normally distributed

C. Characterized by the standard error of the mean

D. None of the above

216 In a simple random sample

A. Every Kth item is selected to be in the sample.

B. Every item has a chance to be in the sample.

C. Every item has the same chance to be in the sample.

D. All of these

217 The difference between the sample mean and the population mean is called the

A. Standard error of the mean.

B. Sampling error.

C. Population mean.

D. Population standard deviation.

218 A point estimate is

A. Always an estimate of the population mean.

B. Always equal to the population value.

C. An estimate of the population parameter.

D. None of these

219 Which of the following statements is not a characteristic of the t distribution?

A. It is symmetrical.

B. Like z there is only one t distribution.

C. It is a continuous distribution.

D. It has a mean of 0.

220 If we wished to decrease the width of a confidence interval, we would not do which of the following

A. Increase the size of the sample

B. Reduce the size of the population

C. Decrease the level of confidence

D. None of the above

221 Which of the following statements is  regarding a sample?

A. It is a part of population.

B. It must contain at least five observations.

C. It refers to descriptive statistics

D. All of these are correct

13) A discrete variable is

A. Can assume only certain clearly separated values

B. Cannot be negative.

C. An example of a qualitative variable.

D. Can assume only whole number values.

222 In a two-sample test of means for independent samples, we use the z distribution when

A. Both population standard deviations are known.

B. nB and n(1-B) are both greater than 5.

C. The population standard deviations are equal.

D. Both populations have at least 4,000 observations.

223 In a contingency table a sample of 400 people is classified by gender and hair color (4 groups: blond, brown, black, and red). How many degrees of freedom are there?

A. 3

B. 8

C. 399

D. None of these

224 In a contingency table

A. The number of rows must be the same as the number of columns.

B. A variable is classified according to two criteria.

C. There must be at least 10 observations in each cell.

D. All of these

225 In a goodness-of-fit test where the sample size is 200, there are 5 categories, and the significance level is .05. The critical value of X2 is

A. 9.488

B. 11.070

C. 43.773

D. None of these

226 A confidence interval

A. Always includes the population parameter.

B. Decreases in width as the sample size is increased.

C. Cannot include a value of 0

D. None of these

227 Which of the following is not a type of probability?

A. Relative frequency

B. Classical

C. Subjective

D. Independent

228 We use the General Rule of Multiplication to combine

A. Events that total more than 1.00.

B. Events based on subjective probabilities

C. Events that are not independent.

D. Mutually exclusive events.

229 Which of the following is a correct statement about a probability?

A. It may be greater than 1.

B. It cannot be reported to more than 1 decimal place.

C. It may range from 0 to 1.

D. It may assume negative values.

230 We wish to develop a confidence interval for the population mean. The shape of the population is not known, but we have a sample of 40 observations. We decide to use the 92% level of confidence. The appropriate value of z is:

A. 1.96

B. 2.58

C. 1.75

D. 1.65

231 Suppose a population consisted of 20 items. How many different samples of n = 3 are possible?

A. 6840

B. 20

C. 120

D. 1140

232 Which of the following statements is not a characteristic of the t distribution?

A. It is a continuous distribution.

B. It is symmetrical.

C. Like z there is only one t distribution.

D. It has a mean of 0

233 The alternate hypothesis

A. None of these

B. Will always contain the equal sign.

C. Is accepted if the null hypothesis is rejected.

D. Tells the value of the sample mean.

234 The expected value of the a probability distribution

A. Is the same as the random variable

B. Is another term for the mean

C. Is also called the variance

D. Cannot be greater than 1

235 For a binomial distribution with n = 15 as π changes from .50 toward .05 the distribution will

A. Become more positively skewed

B. Become more negatively skewed

C. Become symmetrical

D. All of the above

236 In a continuous probability distribution

A. Only certain outcomes are possible.

B. All the values within a certain range are possible

C. The sum of the outcomes is greater than 1.00

D. None of the above

237 For a binomial distribution

A. n must assume a number between 1 and 20 or 25

B. π must be a multiple of .10

C. There must be at least 3 possible outcomes

D. None of the above

238 Which of the following is not a requirement of a probability distribution

A. Equally likely probability of a success

B. Sum of the possible outcomes is 1.00

C. The outcomes are mutually exclusive

D. The probability of each outcome is between 0 and 1

239 In which of the following distributions is the probability of a success usually small?

A. Binomial

B. Poisson

C. Hypergeometric

D. All distribution

240 In finding confidence intervals for the mean of a normal population by using a t-statistic, student A uses a confidence coefficient of 0.95 while student B uses 0.99. Which one of the following statements is  about the length of the confidence intervals found by A and B?

a. B's interval will always be smaller than A's interval

b. B's interval will usually be smaller than A's interval

c. B's interval will always be larger than A's interval

d. B's interval will usually be larger than A's interval

241 We know the mean MU of a population. Suppose 1,000 samples of size n are drawn from this population. For each sample we compute a 90% confidence interval for MU. We would expect the mean of the population would NOT be contained within approximately how many of these intervals?

A. 0

B. 10

C. 100

D. 900

242 If the P-value for your test statistic satisfies p > .25, then:

A. you would not reject H(O) for ALPHA = .05

B. you would reject H(O) for ALPHA = .05

C. you would reject H(O) for ALPHA = .10

D. you would reject H(O) for ALPHA = .01

243 The appropriate alternative hypothesis for a lower tail test to determine if mean body weight of all the men who have joined a health club is less than 185 pounds would be

A. HA: μ ≥ 185 lb.

B. HA: μ < 185 lb.

C. HA: μ = 185 lb.

D. HA: μ ≠ 185 lb.

244 The e-mail usage for two different plants of a large company was compared at level of significance 0.05. A sample of 100 employees was selected at each plant. The mean number of e-mail messages sent per employee for one plant was 16 per week and the standard deviation was 4. For the other plant, the mean was 15 and the standard deviation was 3. For the test of equal population means versus unequal population means, the absolute value for the computed test statistic, the critical values, and the p-value respectively are:

A. 2, ± 1.96, 0.0455

B. 3, ± 2.33, 0.0027

C. 3, ± 1.96, 0.0455

D. 2, ± 1.65, 0.0455

245 Three samples of 10 were used to compare 3 population means. If the Sum of Squares Treatment (SST) is 350, what is the value for the Mean Square Treatment (MST)?

A. 350

B. 175

C. 35. 13

246 Which of the following are factors that are important in determining the size of the sample needed in a study? 1. The amount of variation in the population 2. The size of the population 3. The amount of error that can be tolerated

A.        . 1

B.         . 2

C.        . 3

D.        . 1, 2, and 3

247 Populations are studied using samples because of all of the following reasons except

A.        it usually takes too much time to study the entire population.

B.         management need not be concerned about sampling error.

C.        studying the entire population is not cost effective. 

D.        it may not be possible to identify all the members of the population

248 Which of the following is a major difference between the binomial and the hypergeometric distributions?

A.        The sum of the outcomes can be greater than 1 for the hypergeometric

B.         The probability of a success changes in the hypergeometric distribution

C.        The number of trials changes in the hypergeometric distribution

D.        The outcomes cannot be whole numbers in the hypergeometric distribution

249 Which of the following is not a type of probability?

A.        Subjective

B.         Independent

C.        Relative frequency

D.        Classical

250 Events are independent if

A.        By virtue of one event occurring another cannot

B.         The probability of their occurrence is greater than 1

C.        We can count the possible outcomes

D.        The probability of one event happening does not affect the probability of another event happening

251 The Special Rule of Addition is used to combine

A.        Independent events

B.         Mutually exclusive events

C.        Events that total more than one

D.        Events based on subjective probabilities

252 We use the General Rule of Multiplication to combine

A.        Events that are not independent

B.         Mutually exclusive events

C.        Events that total more than 1.00

D.        Events based on subjective probabilities

253 When we find the probability of an event happening by subtracting the probability of the event not happening from 1, we are using

A.        Subjective probability

B.         The complement rule

C.        The general rule of addition

D.        The special rule of multiplication

254 When we determine the number of combinations

A.        We are really computing a probability

B.         The order of the outcomes is not important

C.        The order of the outcomes is important

D.        We multiple the likelihood of two independent trials

255 In a continuous probability distribution

A.        Only certain outcomes are possible

B.         All the values within a certain range are possible

C.        The sum of the outcomes is greater than 1.00

D.        None of the above

256 For a binomial distribution with n = 15 as p changes from .50 toward .05 the distribution will

A.        Become more positively skewed

B.         Become more negatively skewed

C.        Become symmetrical

D.        All of the above

257 The difference between a random variable and a probability distribution is

A. A random variable does not include the probability of an event

B. A random variable can only assume whole numbers

C. A probability distribution can only assume whole numbers

D. None of the above

258 The normal distribution is a

A. Discrete distribution

B. Continuous distribution

C. Positively skewed distribution

D. None of the above

259 Which of the following are characteristics of the normal distribution?

A. It is a symmetric distribution

B. It is bell-shaped

C. It is asymptotic

D. All of the above

260 Which of the following are correct statements about a normal distribution?

A. It cannot assume negative numbers.

B. It is defined by its mean and standard deviation

C. All normal distributions have a variance of at least 1

D. All of the above are correct

261 Which of the following statements is correct regarding the standard normal distribution?

A. It is also called the z distribution

B. Any normal distribution can be converted to the standard normal distribution

C. The mean is 0 and the standard deviation is 1

D. All of the above are correct

262 The area under a normal curve between 0 and -1.75 is

A. 0401

B. 9599

C. 4599

D. None of the above

263  Which of the following is not a reason for sampling

A. The destructive nature of certain tests

B. The physical impossibility of checking all the items in the population

C. The adequacy of sample results

D. All of the above are reasons for sampling

264 Which of the following statements is not a characteristic of the t distribution

A. It is a continuous distribution

B. It has a mean of 0

C. It is symmetrical

D. Like z there is only one t distribution

265 The fraction or ratio of a sample possessing a certain trait is called a

A. Population.

B. Mean

C. Confidence interval

D. Proportion

266 To develop a confidence interval for a proportion

A. We need to meet the binomial conditions

B. The sample should be at least 100

C. B should be less than .05

D. None of the above

267 The finite population correction factor is used when

A. n is more than 30

B. N is more than 1000

C. nB is greater than 5

D. n/N is more than .05

268In a contingency table a sample of 400 people is classified by gender and hair color (4 groups: blond, brown, black, and red). How many degrees of freedom are there?

A.        3

B.         8

C.        399

D.        None of the above

269 Suppose we select a sample of 100 observations and organize them into 6 categories. We wish to investigate whether the number of observations could be the same in each of the categories in the population. How many degrees of freedom are there?

A.        5

B.         97

C.        3

D.        None of these

270We wish to estimate the population proportion. We want to be 95 percent confident of our results and we want the estimate to be with .01 of the population parameter. No estimate of the population proportion is available. What value should we use for p?

A. 1.96

B. .01

C. .50

D. We cannot complete the problem, we need more information

271In a multiple regression equation there

A.        Are two or more independent variables

B.         Is only one dependent variable

C.        Is one intercept value

D.        All of the above

272  dummy variable or indicator variable

A.        May assume only a value of 0 or 1

B.         Is another term for the dependent variable

C.        Is found by (Y - Ŷ)

D.        Is equal to Ŷ

273 The multiple standard error of estimate is

A.        Is based on the (Y - Ŷ)2  

B.         Is negative when one of the net regression coefficients is 0

C.        Is found by taking the square root of SSR/SS total

D.        All of the above

274 In the ANOVA table the value of k is

A.        The number of independent variables

B.         The total number of observations

C.        The number of degrees of freedom

D.        The sum of squares total

275. A correlation matrix

A.        Shows all simple coefficients of correlation

B.         Shows all possible net regression coefficients

C.        Shows the correlations that are positive

D.        Reports the multiple regression equation

276. In a multiple regression equation

A.        There is only one dependent variable

B.         The R2 term must be at least .50

C.        All the regression coefficient must be between -1.00 and 1.00

D.        None of the above

277. Multicollinearity occurs when

A.        The residuals are correlated

B.         Time is involved in the analysis

C.        The independent variables are correlated

D.        The residuals are not constant for all Y' values

278. In a global test of hypothesis we determine

A.        Which independent variables do not equal 0

B.         Whether any of the set of independent variables differ from 0

C.        Whether any of the correlation coefficients differ from 0

D.        None of the above

279. In testing the significance of individual regression coefficients

A.        The test statistic is the t distribution

B.         We test the independent variables individually

C.        We usually delete the variables where the null hypothesis is not rejected

D.        All of the above

280 The residual

A.        Is the difference between the actual and the predicted value of the dependent variable

B.         Cannot assume a negative value

C.        Is also called the correlation matrix

D.        Has the same degrees of freedom as the MSE term

281 An index

A.        Shows a percent change from one period to another

B.         Must be larger than 100

C.        Can employ qualitative data

D.        Cannot assume negative values

282 For an index number the base period

A.        Appears in the numerator

B.         Cannot be less than 100

C.        Appears in the denominator

D.        Must be after the year 1980

283 The Consumer Price Index (CPI) is

A.        Reported monthly

B.         Reported by the Bureau of Labor Statistics

C.        A Laspeyres type index

D.        All of the above

284 In a Laspeyres price index the

A.        Base period quantities do not change

B.         Base period prices do not change

C.        The base period must be the same as the CPI

D.        None of the above

285 Which of the following is a reason for computing an index?

A.        It is a convenient way of expressing a change in unlike items, such as dollars and bushels.

B.         It is always at least 100

C.        The base periods may be different

D.        All of the above

286 In 1995 Eastern Publishing, Inc. employed 35 sales representatives. In 2005 they employed 50 sales representatives. Using 1995 as the base period the index for the number of sales representative in 2005 is

A.        50.0

B.         143.0

C.        70.0

D.        None of the above

287 The Director of Purchasing reported that the industrial production index was 135. This means production

A.        Increased 35 percent from the base period

B.         Increased by 35 units from the base period

C.        Decreased by 35 percent from the base period

D.        None of the above

288 An index increased from 120 to 150 from 2000 to 2005. We conclude that this is

A.        An increase of 30 percent

B.         A decrease of 30 percent

C.        An increase of 25 percent

D.        None of the above

289 An index of 75 was reported. We conclude that

A.        There has been a decline of 25 percentage points from the base period

B.         An error was made because an index cannot be less than 100

C.        There had been an increase of 25 percent since the base period

D.        None of the above

290 Jon earned $50,000 in 2005, when the Consumer Price Index was 200. If the base period is 1995, what are his earnings in terms of 1995 dollars?

A.        $50,000

B.         $25,000

C.        $100,000

D.        None of the above

291 What is the “up-and-down” variation, the periods of prosperity followed by recession that occurs over extended periods of time?

A.        secular trend

B.         seasonal variation

C.        cyclical variation

D.        irregular variation

292What is the variation within a year called? This is variation, such as high sales at Christmas and Easter and low sales in January is called the

A.        secular trend

B.         seasonal variation

C.        cyclical variation

D.        irregular variation

293 A linear trend for time series data beginning in 2001 and extending up through 2006 (data for 6 years) is Ŷ = 5.2 + 3.1t. The forecast for 2007 is

A.        23.8

B.         26.9

C.        30.0

D.        21.7

294 The least squares equation for sales data going from 2001 to 2006 is Ŷ = 10 + 1.3t What is the plot for the year 2004?

A.        t = 6, y = 17.8

B.         t = 0, y = 10.0

C.        t = 4, y = 15.2

D.        t = 10, y = 0.0

295 The linear trend equation developed for the annual sales (in $thousands) of the Jordan Manufacturing Company is Ŷ = 500 + 60t. By how much are sales increasing per year?

A.        $60,000 per year

B.         $6,000 per month

C.        $500,000 per year

D.        $6,000 per year

296 To conduct a nonparametric test the

A.        Population must follow the normal distribution

B.         The standard deviation must be known

C.        It is not necessary to make any assumption about the shape of the population

D.        The data must be at least interval scale

297 Which of the following is not a characteristic of the X2

A.        Its shape is based on the sample size

B.         It is not negative

C.        It is positively skewed

D.        It approaches a normal distribution as the degrees of freedom increase

298 In a goodness-of-fit test where the sample size is 200, there are 5 categories, and the significance level is .05. The critical value of X2 is

A.        9.488

B.         11.070

C.        43.773

D.        None of the above

299 In a goodness-of-fit test

A.        All the cell frequencies must be the same

B.         There must be at least 30 observations

C.        Forty percent of the cells must contain at least 10 observations

D.        None of the above

300 In a contingency table

A.        The number of rows must be the same as the number of columns

B.         A variable is classified according to two criteria

C.        There must be at least 10 observations in each cell

D.        All of the above

301 Under what conditions could the X2 distribution assume negative values?

A.        When the sample size is small

B.         When the cell frequencies are all equal

C.        When the degrees of freedom is 1

D.        Never

302 The difference between a permutation and a combination is:

A.        In a permutation order is important and in a combination it is not

B.         In a permutation order is not important and in a combination it is important

C.        A combination is based on the classical definition of probability

D.        A permutation is based on the classical definition of probability

303 Bayes' Theorem

A.        Is an example of subjective probability

B.         Can assume of value less than 0

C.        Is used to revise a probability based on new or additional information

D.        Is found by applying the complement rule

304 When we determine the number of combinations

A.        We are really computing a probability

B.         The order of the outcomes is not important

C.        The order of the outcomes is important

D.        We multiple the likelihood of two independent trials

305 The alternate hypothesis

A.        Is accepted if the null hypothesis is rejected

B.         Will always contain the equal sign

C.        Tells the value of the sample mean

D.        None of the above

306 The level of significance

A.        Is frequently .05 or .01

B.         Can be any value between 0 and 1

C.        Is the likelihood of rejecting the null hypothesis when it is

D.        All of the above

307 A Type I error is

A.        The correct decision

B.         A value determined from the test statistic

C.        Rejecting the null hypothesis when it is

D.        Accepting the null hypothesis when it is

308 Which of the following is not a characteristic of the X2

A.        It approaches a normal distribution as the degrees of freedom increase

B.         It is positively skewed

C.        Its shape is based on the sample size

D.        It is not negative

309 When we find the probability of an event happening by subtracting the probability of the event not happening from 1, we are using

A.        Subjective probability

B.         The complement rule

C.        The general rule of addition

D.        Joint probability

310 We use the General Rule of Multiplication to combine

A.        Events that are not independent

B.         Mutually exclusive events

C.        Events that total more than 1.00

D.        Events based on subjective probabilities

311 Events are independent if

A.        By virtue of one event happening another cannot

B.         The probability of their occurrence is greater than 1

C.        We can count the possible outcomes

D.        The probability of one event happening does not affect the probability of another event happening

312 In a one-tailed test

A.        The rejection region is in only one of the tails

B.         The rejection region is split between the tails

C.        The p-value is always less than the significance level

D.        The p-value is always more than the significance level

313 To conduct a one sample test of means and use the z distribution as the test statistic

A.        We need to know the population mean.

B.         We need to know the population standard deviation

C.        We need nπ to be less than 5.

D.        Both a and b are correct

314 In a two-sample test of means for independent samples, we use the z distribution when

A.        The population standard deviations are equal

B.         Both populations have at least 4000 observations

C.        Both population standard deviations are known

D.        nB and n(1-B) are both greater than 5

315 Which of the following is a requirement for a two-sample test of proportions

A.        The population standard deviations are equal

B.         Both populations are positively skewed

C.        Both samples are at least 30

D.        nB and n(1-B) are both greater than 5

316 A random sample of 10 observations is selected from the first normal population and 8 from the second normal population. For a one-tailed test of hypothesis (.01 significance level) to determine if there is a difference in the population means, the degrees of freedom are

A.        18

B.         17

C.        16

D.        None of the above

317 A random sample of 10 observations is selected from the first normal population and 8 from the second normal population. For a one-tailed test of hypothesis (.01 significance level) to determine if there is a difference in the population means, the critical value(s) are

A.        2.552

B.         -2.921, 2.921

C.        -2.583, 2.583

D.        None of the above

318 A p-value is

A.        The same as the population proportion

B.         The same as the significance level

C.        The fraction of the population that has a particular characteristic

D.        The probability of finding a value of the test statistic this extreme when the null hypothesis is

319 A Type II error occurs when

A.        We accept a  null hypothesis

B.         We reject a  alternate hypothesis

C.        We reject a  null hypothesis

D.        None of the above

320 Which of the following is not a characteristic of the X2

A.        It approaches a normal distribution as the degrees of freedom increase.

B.         It is positively skewed.

C.        Its shape is based on the sample size.

D.        It is not negative.

321 A correlation matrix

A.        Shows the correlations that are positive.

B.         Shows all possible net regression coefficients.

C.        Reports the multiple regression equation.

D.        Shows all simple coefficients of correlation.

322 In a multiple regression equation

A.        There is only one dependent variable.

B.         The R2 term must be at least .50

C.        All the regression coefficient must be between -1.00 and 1.00

D.        None of these

323 A.  dummy variable or indicator variable

A.        Is found by (Y - Y).

B.         Is another term for the dependent variable

C.        Is equal to Y

D.        May assume only a value of 0 or 1

334 A correlation matrix

A.        Shows the correlations that are positive

B.         Shows all possible net regression coefficients

C.        Reports the multiple regression equation

D.        Shows all simple coefficients of correlation

335 In a multiple regression equation

A.        There is only one dependent variable

B.         The R2 term must be at least .50

C.        All the regression coefficient must be between -1.00 and 1.00

D.        None of these

336 The Special Rule of Addition is used to combine

A. Independent events

B.         Events that total more than one

C.        Events based on subjective probabilities

D.        Mutually exclusive events

337 Events are independent if

A. By virtue of one event happening another cannot

B, We can count the possible outcomes

C. The probability of one event happening does not affect the probability of another event happening

D.        The probability of their occurrence is greater than 1

338 Suppose a population consisted of 20 items. How many different samples of n = 3 are possible?

A.        6840

B.         20

C.        120

D.        1140

339 The weighted mean is a special case of the:

A.        A. Mean

B.         B. Median

C.        C. Mode

D.        D. Geometric mean

340 In a set of observations, which measure of central tendency reports the value that occurs most often?

A.        Mean

B.         Median

C.        Mode

D.        Geometric mean

341 Which of the following statements are correct when deciding whether to use the z or the t distribution

A.        Use zin a test of proportions when nπ and n(1 - π) are greater than or equal to 5

B.         Use z when we have a normal population and we know the standard deviation

C.        Use t when the population is normal and the population standard deviation is not known

D.        All of the above statements are correct

342 In a two-sample test of means for independent samples, the equal sign always appears in

A.        The null hypothesis

B.         The alternate hypothesis

C.        The upper tail of the test statistic

D.        None of the above

343 Which of the following is not a requirement for the two-sample test of means for independent samples observations?

A.        Normal populations

B.         Equal population standard deviations

C.        Equal sample sizes

D.        All of the above are required

344 To conduct a test of means for two independent samples which of the following are always required?

A.        At least one of the samples must have 30 observations

B.         Both samples must have 30 observations

C.        np and n (1 - p) must be 5

D.        None of the above

345 Which of the following is not a type of probability?

A.        Classical

B.         Independent

C.        Subjective

D.        Relative frequency

346 We use the General Rule of Multiplication to combine

A.        Events based on subjective probabilities

B.         Mutually exclusive events

C.        Events that are not independent

D.        Events that total more than 1.00

347 The difference between a random variable and a probability distribution is

A.        A random variable does not include the probability of an event

B.         A random variable can only assume whole numbers

C.        A probability distribution can only assume whole numbers

D.        None of the above

348 Suppose a population consisted of 20 items. How many different samples of n = 3 are possible

A.        120

B.         20

C.        1140

D.        6840

349 The standard error of estimate is

A.        Based on squared deviations from the regression line

B.         May assume negative values

C.        Is in squared units of the independent variable

D.        All of the above

350 Which of the following is not a necessary condition for regression analysis

A.        The standard deviation of each of the conditional distributions must be the same

B.         The Y values are independent

C.        For each X value, there is a group of Y values and these Y values are normally distributed

D.        The slope of the regression line is positive (increasing)

351 A dummy variable or indicator variable

A.        Is found by (Y - Y)

B.         Is another term for the dependent variable

C.        Is equal to Y

D.        May assume only a value of 0 or 1

352 A correlation matrix

A.        Shows the correlations that are positive

B.         Shows all possible net regression coefficients

C.        Reports the multiple regression equation

D.        Shows all simple coefficients of correlation

353 In a multiple regression equation

A.        There is only one dependent variable

B.         The R2 term must be at least

C.        All the regression coefficient must be between -1.00 and 1.00

D.        None of these

354 An experiment is a

A.        The act of taking a measurement or the observation of some activity

B.         Collection of outcomes

C.        Collection of events

D.        Always greater than 1

355. Which of the following is not based on squared deviations from the regression line?

A.        The coefficient of correlation

B.         The coefficient of determination

C.        The standard deviation

D.        The standard error of estimate

356. In an ANOVA table for regression, the degrees of freedom for regression is

A.        Equal to 1

B.         n – 1

C.        n – 2

D.        None of the above

357 The multiple standard error of estimate is

A.        Is based on the (Y - Y)2

B.         Is negative when one of the net regression coefficients is 0

C.        Is found by taking the square root of SSR/SS total

D.        All of these

358 In a two-sample test of means for independent samples, the equal sign always appears in

A.        The null hypothesis

B.         The alternate hypothesis

C.        The upper tail of the test statistic

D.        None of these

359 To conduct a nonparametric test the

A.        The data must be at least interval scale

B.         The standard deviation must be known

C.        Population must follow the normal distribution

D.        It is not necessary to make any assumption about the shape of the population

360 Which of the following is not necessary to determine a p-value

A.        Knowledge of whether the test is one-tailed or two-tailed

B.         The value of the test statistic

C.        The level of significance

D.        All of the above

361 When conducting a test of hypothesis for the dependent samples

A.        We should have at least 30 pairs

B.         The significance level is more than .05

C.        The p-value is more than .10

D.        None of the above

362 Given a two-tail test for the population mean, the null hypothesis contains a(n) __________ sign, and the alternative hypothesis contains a(n) ___________ sign.

A.        . ?, =

B.         . =, ?

C.        . ?, =

D.        . =, ?

363 If each of a set of raw scores is transformed into a Z-score, the new distribution will have a standard deviation equal to

A.        . zero.

B.         . one.

C.        . the mean of the original distribution.

D.        . the standard deviation of the original distribution

367 Consider the following two columns that describe different types of data:

368 Nominal 1. Qualitative B. Discrete 2. Quantitative C. Ordinal D. Continuous The correctly paired groupings of the two columns is

A.        . 1–AB 2–CD

B.         . 1–AD 2–BC

C.        . 1–AC 2–BD

D.        . 1–BC 2–AD

369 Arrange the following steps in correct sequence: 1. Begin sampling. 2. Determine the sample size. 3. Establish the sampling frame.

A.        . 1, 2, 3

B.         . 2, 1, 3

C.        . 3, 1, 2

D.        . 3, 2, 1 Q14

370 To conduct a test of hypothesis for dependent samples we assume that

A.        The distribution of the difference between the paired observations follows the normal distribution

B.         Both samples are at least 30

C.        The samples are unrelated

D.        All of the above

371 To conduct a test of means for two independent samples which of the following are always required?

A.        At least one of the samples must have 30 observations.

B.         Both samples must have 30 observations

C.        np and n (1 - p) must be 5

D.        None of the above

372 The term ANOVA

A.        Has no special meaning

B.         Stands for Analysis of Variance

C.        Stands for Another Numerical Observation of the Variance

D.        None of the above

373 The general idea of analysis of variance is to compare estimates of variance

A.        From both between the treatment means and within the treatment means

B.         Based on the several treatments

C.        From within the treatments

D.        None of the above

374 Which of the following is not a characteristic of the F distribution?

A.        It is a discrete distribution

B.         In cannot be negative

C.        It is based on two sets of degrees of freedom

D.        All of the above

375 The term “Treatment” refers to

A.        A source of variation

B.         The numerator degrees of freedom

C.        The variation within the cells

D.        None of the above

376 Suppose we select 6 observations from each of three treatments. The appropriate degrees of freedom are

A.        3 and 6

B.         2 and 6

C.        2 and 15

D.        None of the above

377 The term MSE

A.        Is called the mean square error

B.         Is found by SSE/(n - k)

C.        Is an estimate of the common population variance

D.        All of the above

378 Which of the following is not an assumption required for ANOVA?

A.        The populations are normally distributed

B.         The populations have equal standard deviations

C.        The samples are independent

D.        All of the above

379 Under which of the following conditions will the computed value of F be negative?

A.        When there is no difference in the treatment means

B.         When there is no difference in the block means

C.        When the SS total is larger than SST

D.        F cannot be negative

380 Suppose we conduct an ANOVA test of four treatment means and reject the null hypothesis. Construction of a confidence interval for the difference between the first and second sample mean revealed the interval to be 10 plus or minus 12. We conclude

A.        This pair of means differ

B.         This pair of means does not differ

C.        Because we do not know the units involved, we cannot draw any conclusion

D.        Because we do not know the degrees of freedom, we cannot draw any conclusion

381 In a two-way ANOVA the second source of variation is due to

A.        Random error

B.         Blocks

C.        Total variation

D.        None of the above

382 A scatter diagram is a chart

A.        In which the dependent variable is scaled along the vertical axis

B.         In which the independent variable is scaled along the horizontal axis

C.        That portrays the relationship between two variables

D.        All of the above

383 In correlation analysis

A.        We consider several independent variables

B.         We study the strength of the association between two variables

C.        We consider the intercept with the Y-axis

D.        None of the above

384 The sample coefficient of correlation

A.        Has the same sign as the slope, i.e. b

B.         Can range from -1.00 up to 1.00

C.        Is also called Pearson=s r

D.        All of the above

385 The coefficient of determination

A.        Is the square of the coefficient of correlation

B.         Cannot be negative

C.        Reports the percent of the variation in the dependent variable explained by the independent variable

D.        All of the above

386 Suppose we developed the following least squares regression equation: Y= = 3.5 + 2.1X. Which of the following statements are correct?

A.        The dependent variable increases 2.1 for an increase of 1 in X

B.         The equation crosses the Y-axis at 3.5

C.        If X = 5, then Y= = 14

D.        All of the above

387 The term SSR/SS total is also called the

A.        Sum of squares due to regression

B.         Coefficient of determination

C.        Standard error of estimate

D.        Coefficient of correlation

388. Which of the following statements is not a characteristic of the t distribution?

E.         It is symmetrical

F.         Like z there is only one t distribution

G.        It is a continuous distribution

H.        It has a mean of 0.

389. A nominal scale variable is

E.         Cannot have more than two categories.

F.         B. Has a meaningful zero point.

G.        C. Usually the result of counting something

F.         May assume negative values.

390: What area under the standard normal curve falls outside the Z values -1.96 and 1.96?

A. 0.05

B. 0.01

C. 0.90

D. 0.10

391 Which level of measurement is required for the median?

A. Nominal

B. Ordinal

C. Interval

D. Ratio

392 The weighted mean is a special case of the:

A. Mean

B. Median

C. Mode

D. Geometric mean

393 In a set of observations, which measure of central tendency reports the value that occurs most often?

A. Mean

B. Median

C. Mode

D. Geometric mean

394 The mean and the variance are equal in

A. All probability distributions.

B. The binomial distribution.

C. The Poisson distribution.

D. The hypergeometric distribution.

395 Which of the following is not a requirement of a binomial distribution?

A. A constant probability of success.

B. Only two possible outcomes.

C. A fixed number of trails.

D. Equally likely outcomes.

396 In which of the following distributions is the probability of a success usually small?

A. Binomial

B. Poisson

C. Hypergeometric

D. All distribution

397 A sample

A. Is part of the population.

B. Has more than 30 observations.

C. Is usually identified as N.

D. All of these

398 If each of a set of raw scores is transformed into a Z-score, the new distribution will have a standard deviation equal to

A. zero.

B. one.

C. the mean of the original distribution.

D. the standard deviation of the original distribution.

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 OR

1.         The role of statistics is business research is to capture a population’s characteristics by using inferential statistics from a sample’s characteristics –

2.         The difference between business research and scientific research is that business research does not involve a hypothesis –

3.         Business research usually requires use of the both qualitative and quantitative data –

4.         A sample does not need to be representative of the larger population as long as the sample is large enough –

5.         A research design is always based on a research question –

6.         A theory is a statement about a population parameter developed for testing –

7.         The z-test statistic is used when performing a small sample (<30) test of means –

8.         The test of whether two variables are related results in an ANOVA table –

9.         Correlation analysis is the study of the relationship between variables –

10.       A correlation of -.25 is weaker than a correlation of +.15 –

11.       The number of individuals in a family is a continuous variable.

12.       Distributions are spread out more than a normal distribution with MU = 0, SIGMA = 1.  

13.       A random sample of 64 cars passing a check point on a certain highway showed a mean speed of 60 mph. The standard deviation of speeds is known to be 15 mph. In this case 60 mph is a point estimate of the population mean speed on this highway.

14.       According to the Central Limit Theorem, the shape of the sampling distribution of sample mean (given that n ≥ 30) will be normal, whether or not the shape of the population is normal.

15.       If the sample size is large (n ≥ 30), the standard deviation of the sample mean will equal the population standard deviation for that random variable.

16.       Level of confidence is another name for level of significance.

If we would reject a null hypothesis at the 5% level, we would also reject it at the 1% level.

17. A Type I error is committed when one accepts the null hypothesis when it is .

18. In a one-way ANOVA, when the null hypothesis is , the calculated F-ratio would exceed the critical value of F for the chosen significance level.

19. Rejection of a hypothesis using a nonparametric test is more convincing than using an equivalent parametric test when the data are badly skewed.

20. Most nonparametric tests assume ordinal data.

21.One of the assumptions of regression analysis is that the error terms are normally distributed.

 

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