A professor in the school of business at a certain university wants to investigate the claim that the prices of new textbooks in the campus store are higher than a competing national online bookstore by more than 50 cents. The professor randomly chooses required texts for 12 business school courses. Use α=0.05α=0.05. The data is given in the table below.

(a) Let XAXA denote the price of books at the campus store, and XBXB be the price of books at the online store, also let XD=XA−XBXD=XA−XB. Choose the correct statistical hypotheses.
A. H0:μD~>0.5,HA:μD~<0.5H0:μD~>0.5,HA:μD~<0.5
B. H0:μ~campus=μ~online,HA:μ~campus≠μ~onlineH0:μ~campus=μ~online,HA:μ~campus≠μ~online
C. H0:μcampus=μonline,HA:μcampus≠μonlineH0:μcampus=μonline,HA:μcampus≠μonline
D. H0:μD~=0.5,HA:μD~<0.5H0:μD~=0.5,HA:μD~<0.5
E. H0:μ~campus=μ~online,HA:μ~campus<μ~onlineH0:μ~campus=μ~online,HA:μ~campus<μ~online
F. H0:μD=0.5HA:μD>0.5H0:μD=0.5HA:μD>0.5
G. H0:μD>0.5,HA:μD<0.5H0:μD>0.5,HA:μD<0.5
H. H0:μcampus=μonline,HA:μcampus<μonlineH0:μcampus=μonline,HA:μcampus<μonline
I. H0:μD~=0.5,HA:μD~≠0.5H0:μD~=0.5,HA:μD~≠0.5
J. H0:μD~=0.5HA:μD~>0.5H0:μD~=0.5HA:μD~>0.5
K. H0:μcampus=μonline,HA:μcampus>μonlineH0:μcampus=μonline,HA:μcampus>μonline
L. H0:μ~campus=μ~online,HA:μ~campus>μ~onlineH0:μ~campus=μ~online,HA:μ~campus>μ~online


(b) Carry out the appropriate statistical test and find the P-value, to at least three decimal places.
P=

(c) Based on the above calculations, we should reject or not reject  the null hypothesis.

(d) Using the technology available to you, create the most appropriate graph(s) to check the assumption(s) that need to be satisfied for your inferences in (b) and (c) to be valid. What statement below aligns with your findings?
A. The prices charged at the campus bookstore are normally distributed.
B. The prices charged at the campus bookstore are not normally distributed.
C. The differences in the price of a textbook at the campus bookstore and the price of the textbook at the online store are not normally distributed.
D. The prices charged at the online bookstore are not normally distributed.
E. The differences in the price of a textbook at the campus bookstore and the price of the textbook at the online store are normally distributed.
F. The prices charged at the online bookstore are normally distributed.

The distribution of the number of siblings for students at a large high school is skewed to the right with mean 1.8 siblings and standard deviation 0.7 sibling. A random sample of 100 students from the high school will be selected, and the mean number of siblings in the sample will be calculated. Which of the following describes the sampling distribution of the sample mean for samples of size 100 ?

A

Skewed to the right with standard deviation 0.7 sibling

B

Skewed to the right with standard deviation less than 0.7 sibling

C

Skewed to the right with standard deviation greater than 0.7 sibling

D

Approximately normal with standard deviation 0.7 sibling

E

Approximately normal with standard deviation less than 0.7 sibling

The distribution of height for a certain population of women is approximately normal with mean 65 inches and standard deviation 3.5 inches. Consider two different random samples taken from the population, one of size 5 and one of size 85.

Which of the following is true about the sampling distributions of the sample mean for the two sample sizes?

• Both distributions are approximately normal with mean 65 and standard deviation 3.5.

  A

• Both distributions are approximately normal. The mean and standard deviation for size 5 are both less than the mean and standard deviation for size 85.

  B

• Both distributions are approximately normal with the same mean. The standard deviation for size 5 is greater than that for size 85.

  C

• Only the distribution for size 85 is approximately normal. Both distributions have mean 65 and standard deviation 3.5.

  D

• Only the distribution for size 85 is approximately normal. The mean and standard deviation for size 5 are both less than the mean and standard deviation for size 85.

E

The distribution of wait times for customers at a certain department of motor vehicles in a large city is skewed to the right with mean 23 minutes and standard deviation 11 minutes. A random sample of 50 customer wait times will be selected. Let x¯W represent the sample mean wait time, in minutes. Which of the following is the best interpretation of P(x¯W>25)≈0.10 ?

• For a random sample of 50 customer wait times, the probability that the total wait time will be greater than 25 minutes is approximately 0.10.

  A

• For a randomly selected customer from the population, the probability that the total customer wait time will be greater than 25 minutes is approximately 0.10.

  B

• For a randomly selected customer from the population, the probability that the sample mean customer wait time will be greater than 25 minutes is approximately 0.10.

  C

• For a random sample of 50 customer wait times, the probability that the sample mean customer wait time will be greater than 23 minutes is approximately 0.10.

  D

• For a random sample of 50 customer wait times, the probability that the sample mean customer wait time will be greater than 25 minutes is approximately 0.10.

E

At the beginning of the school year, Katherine Malloy decided to prepare a A budget of estimated cash receipts and payments.cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.

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b. Are the four monthly budgets that are presented prepared as A budget that does not adjust to changes in activity levels.static budgets or A budget that adjusts for varying rates of activity.flexible budgets?

• Static
• Flexible

c. Malloy can see that her present plan

• will provide
• will not provide

sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $

• over
• short

at the end of December, with no time left to adjust

This is a Personal Budget:

At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

c. What are the budget implications for Craig Kovar?

Craig can see that his present plan   sufficient cash. If Craig did not budget but went ahead with the original plan, he would be $   at the end of December, with

As part of a school project students will be randomly sampling from the students in the class. The assignment is to estimate the proportion of students who play on a sports team. Each student will randomly select 6 students. One student found out that 3 of the 6 play a sport. The teacher has collected data from all students and found that out of the 31 students in the class 21 of them played sports.

Give the statistic for the percentage of students who play sports.

____%

Question 35

A professor in the Accountancy Department of a business school indicated that there is much more variability in the final exam scores of students taking the introductory accounting course as a requirement than for students taking the course as part of their major. Random samples of 16 non-accounting majors and 10 accounting majors taken from the professor's class roster in his large lecture and the following results are computed based on the final exam scores:

Using  =5%, the test and critical F-values, for the hypothesis test to support the professor's statement, respectively are:

Select one:

a. 5.7589 and 3.77 respectively

b. 0.1736 and 3.77 respectively

c. 5.7589 and 3.01 respectively

d. 2.3998 and 3.01 respectively

Question 42

An electrical engineer is interested in the effect on the tube conductivity of five different types of coating for cathode ray tubes used in telecommunications system display device. The following conductivity data are obtained:

                        Coating Type                         

                                    1                      143      141      150      146

                                    2                      152      149      137      143

                                    3                      134      133      132      127

                                    4                      129      127      132      129

                                    5                      147      148      144      142

At 5% level of significance, is there any difference in conductivity due to coating type? What is the value of test statistic?

Select one:

a. 16.35

b. 19.0

c. 15

d. 3.06

Question 43

Last school year, the student body of a local university consisted of 30% freshmen, 24% sophomores, 26% juniors, and 20% seniors. A sample of 400 students taken from this year's student body showed the following number of students in each classification.

We are interested in determining whether or not there has been a significant change in the classifications between the last school year and this school year. The calculated value for the test statistic equals

Select one:

a. .54.

b. .65.

c. 2.063.

d. 2.664.

Question 46

An electric company operates a fleet of trucks that provide electrical service to the construction industry. Monthly maintenance cost has been $75 per truck. A random sample of 16 trucks provided a sample mean maintenance cost of $82.50 per month, with a sample standard deviation of $30. Using a 5% level of significance, you like to see whether the mean monthly maintenance cost has increased. Set the appropriate hypotheses and calculate the test statistic

Select one:

a. Z = +/- 1.0

b. t = +/-1.0

c. Z = 1.0

d. t = 1.0

The Dean of ASBE School of Business is concerned that grades in the MBA program are distributed appropriately. Too many high grades or too many low grades would pose a problem. We wish to test the claim that the mean GPA of ASBE students is smaller than 3.6 at the .01 significance level.

The null and alternative hypothesis would be:

• H0:μ=3.6
  Ha:μ<3.6
• H0:p=3.64/4
  Ha:p≠3.64/4
• H0:p=3.6/4
  Ha:p>3.6/4
• H0:p=3.6/4
  Ha:p>3.6/4
• H0:μ=3.6
  Ha:μ>3.6
• H0:p=3.6/4
  Ha:p<3.6/4
• H0:μ=3.6
  Ha:μ≠3.6

• The test is:

  two-tailed

  right-tailed

  left-tailed

  
  
  Based on a sample of 20 student grades, the sample mean GPA was 3.55 with a standard deviation of 0.08
  
  The test statistic is:  (Round to 3 decimals)
  
  Based on this we:
• Fail to reject the null hypothesis
• Reject the null hypothesis

The Dean of ASBE School of Business is concerned that grades in the MBA program are distributed appropriately. Too many high grades or too many low grades would pose a problem. We wish to test the claim that the mean GPA of ASBE students is smaller than 3.3 at the .005 significance level.

The null and alternative hypothesis would be:

• H0:p=3.34H0:p=3.34
  Ha:p>3.34Ha:p>3.34
• H0:μ=3.3H0:μ=3.3
  Ha:μ≠3.3Ha:μ≠3.3
• H0:p=3.34H0:p=3.34
  Ha:p<3.34Ha:p<3.34
• H0:μ=3.3H0:μ=3.3
  Ha:μ<3.3Ha:μ<3.3
• H0:p=3.34H0:p=3.34
  Ha:p≠3.34Ha:p≠3.34
• H0:μ=3.3H0:μ=3.3
  Ha:μ>3.3Ha:μ>3.3

The test is:

left-tailed

two-tailed

right-tailed

Based on a sample of 75 student grades, the sample mean GPA was 3.28 with a standard deviation of 0.02

The test statistic is:  (Round to 3 decimals)

Based on this we:

• Fail to reject the null hypothesis
• Reject the null hypothesis

A shareholders' group is lodging a protest against your company. The shareholders group claimed that the mean tenure for a chief exective office (CEO) was at least 9 years. A survey of 59 companies reported in The Wall Street Journal found a sample mean tenure of 7.3 years for CEOs with a standard deviation of s=s= 5 years (The Wall Street Journal, January 2, 2007). You don't know the population standard deviation but can assume it is normally distributed.

You want to formulate and test a hypothesis that can be used to challenge the validity of the claim made by the group, at a significance level of α=0.01α=0.01. Your hypotheses are:

      Ho:μ=9Ho:μ=9
      Ha:μ<9Ha:μ<9

What is the test statistic for this sample?
test statistic =  (Report answer accurate to 3 decimal places.)

What is the p-value for this sample?
p-value =  (Report answer accurate to 4 decimal places.)  

The p-value is...

• less than (or equal to) αα
• greater than αα

This test statistic leads to a decision to...

• reject the null
• accept the null
• fail to reject the null

As such, the final conclusion is that...

• There is sufficient evidence to warrant rejection of the claim that the population mean is less than 9.
• There is not sufficient evidence to warrant rejection of the claim that the population mean is less than 9.
• The sample data support the claim that the population mean is less than 9.
• There is not sufficient sample evidence to support the claim that the population mean is less than 9.

The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 10 percent return on the investment of funds. Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $16,500 per year. The machine is expected to have a three-year useful life with a zero salvage value. (Use appropriate factor(s) from the tables provided.)

Required

1. Use Present Value Appendix PV of $1, to determine the maximum amount of cash the dean should be willing to pay for a copy machine. (Round your intermediate calculations and final answer to 2 decimal places.)

2. Use Present Value Appendix PVA of $1, to determine the maximum amount of cash the dean should be willing to pay for a copy machine. (Round your final answer to 2 decimal places.)

A professor in the school of business at a certain university wants to investigate the claim that the prices of new textbooks in the campus store are higher than a competing national online bookstore. The professor randomly chooses required texts for 12 business school courses. The data is given in the table below.

(a) Let XAXA denote the price of books at the campus store, and XBXB be the price of books at the online store, also let XD=XA−XBXD=XA−XB. Choose the correct statistical hypotheses.
A. H0:μD=0,HA:μD≠0H0:μD=0,HA:μD≠0
B. H0:μcampus=μonline,HA:μcampus<μonlineH0:μcampus=μonline,HA:μcampus<μonline
C. H0:μD=0,HA:μD<0H0:μD=0,HA:μD<0
D. H0:μcampus=μonline,HA:μcampus>μonlineH0:μcampus=μonline,HA:μcampus>μonline
E. H0:μcampus=μonline,HA:μcampus≠μonlineH0:μcampus=μonline,HA:μcampus≠μonline
F. H0:μD=0,HA:μD<0H0:μD=0,HA:μD<0
G. H0:μD>0,HA:μD<0H0:μD>0,HA:μD<0
H. H0:μD=0HA:μD>0H0:μD=0HA:μD>0


(b) Carry out the appropriate statistical test and find the P-value, to at least three decimal places.

(c) Based on the above calculations, we should  ? reject not reject  the null hypothesis. Use α=0.05

(d) Using the technology available to you,check the assumption(s) that need to be satisfied for your inferences in (b) and (c) to be valid. What statement below aligns with your findings?
A. The prices charged at the online bookstore are normally distributed.
B. The differences in the price of a textbook at the campus bookstore and the price of the textbook at the online store are normally distributed.
C. The prices charged at the online bookstore are not normally distributed.
D. The differences in the price of a textbook at the campus bookstore and the price of the textbook at the online store are not normally distributed.
E. The prices charged at the campus bookstore are normally distributed.
F. The prices charged at the campus bookstore are not normally distributed.