1) In a study, the final statistical analysis showed that r square=0.35 (p<0.01). Which one of the following interpretations best explains this results?

A) The model explains 65% of the variation in the outcome, because 1.00-0.35=65%.

B) No conclusions can be drawn because it is not apparent whether the estimated coefficients for each covariate were statistically significant.

C) About 35% of the variation in the outcome was explained by the independent variable(s).

D) The model explains about 35% of the variation for independent variable(s).

2) Which of followings refers the multicollinearity problem?

A) Some independent variables are strongly correlated each other.

B) When the coefficient for a product of two independent variables (X₁*X₂) is statistical significant (p<0.05).

C) There is an interaction effect between two independent variables.

D) It will occur when linear regression encounters step-wise regression.

3) A PGY1 post-graduate conducted a survey study in her community. Of 10,000 surveyed residents, there are 200 persons with diabetes mellitus, 50 persons with heart disease and 20 persons with both diabetes and heart disease.   If a selected resident has diabetes mellitus, what is the probability that this same individual also has heart disease? (Clue: need to calculate the relevant probability).

A) 10%

B) 20%

C) 0.2%

D) 40%

E) 0.5%

4) A clinical research plans to conduct a linear regression analysis to assess the Health related quality of life score which is the primary outcome with continuous data. The health outcomes will be regressed on 10 predictors or confounding factors including age, sex, race, BMI, health education, family incomes, number of years disease on set, etc. Based on our discussion in the lecture, how many patients at least does he/she need to recruit for this linear regression?

A) 50

B) 150

C) 200

D) 1500

E) 30

5) Since you learned the multiple linear regression analysis in class, you are given the following linear regression model:   Y (female life expectancy) = 82.7 – 0.12 * (fertility number) – 0.24 * (infant mortality per 1000). Please predict the female life expectancy in Ghana country where fertility number = 5.8 and infant mortality per 1000 = 58.3.

A) 80.7

B) 68.0

C) 57.6

D) 69.0

6) A research scientist conducted a factorial ANOVA for her clinical study, which involved 5 different therapy regimens in each of four different hospital settings. In order to assess the therapy effect, the pharmacist would like to evaluate any interaction effect between hospital and regimen. The degree of freedom for interaction is equal to:

A) 7

B) 12

C) 8

D) 20

E) 6

7) There are two kinds of influential statistics: parametric vs. non-parametric statistics. Which of followings is NOT parametric influential statistics?

A) Student t-test

B) F-test

C) Two-way ANOVA

D) Wilcoxon test

E) ANCOVA

A researcher measures the relationship between Internet use (hours per week) and social interaction (hours per week) in a sample of 10 students. The following table lists the hypothetical results of this study.

(a) Compute the Pearson correlation coefficient. (Round your answer to three decimal places.)


(b) Compute the coefficient of determination. (Round your answer to three decimal places.)


(c) Using a two-tailed test at a 0.05 level of significance, state the decision to retain or reject the null hypothesis.

Retain the null hypothesis. Reject the null hypothesis.    

Valuing a European put: Suppose the current price of TIR is DKK 50 per share. In each of the next two years, the stock price will either increase by 20% or decrease by 10%. The 3% one-year risk-free rate of interest will remain constant. Calculate the price of a two-year European call option on TIR with strike price DKK 60.

11. Assume the current selling price of a firm’s stock is: $100. Using the Excel file Dividend Data, compute the firm’s cost of equity using the Gordon dividend model.

In a four-digit lottery, each of the four digits is supposed to have the same probability of occurrence. The table shows the frequency of occurrence of each digit for 83 consecutive daily four-digit drawings. Digit Frequency 0 26 1 32 2 27 3 40 4 31 5 31 6 33 7 44 8 33 9 35 Total 332 Click here for the Excel Data File

(a) The hypothesis for the given issue is H0: The digits come from a uniform population. No Yes

(b) Calculate the chi-square test statistic, degrees of freedom, and the p-value. (Round your test statistic value to 2 decimal places and the p-value to 4 decimal places.) Test statistic d.f. p-value

(c) Find the critical value of the chi-square for α = .01. (Round your answer to 2 decimal places.) Critical value

(d) At α = .01, can you reject the hypothesis that the digits are from a uniform population? Yes No

Part 1: V₂ Quantitative Data

Use the list of 100 numbers from Lab 1, column V₂ for this part of the lab. (Lab 1 data at the bottom)

Identify the name of the quantitative variable V₂ that you are using. __________________

B. Use Microsoft Excel to find

Mean ________________________

Median _______________________

Mode _________________________

            Standard Deviation _________________________

            Minimum Value          ________________________

            Maximum Value         ________________________

Q1 _____________________________

Q3 _____________________________

C.            Consider your values for mean, median and mode listed above. Which is the largest?

Discuss the similarities and differences among your three measures.

Which one of these measures of central tendency is most suitable for your data? Explain your choice.

D.           Using the appropriate numbers from B above, make a box-and-whisker plot for your data.

What does this plot tell you about your data?

Lab 1 Data

Harry Potter books have become popular with children and adults alike. A recent survey conducted in London revealed that 80% high school students have read the first Harry Potter book. A random sample of 7 London high school students is taken, and the number of students who have read the first Harry Potter book is recorded.

a) Define the random variable of interest and give its distribution, including the values of all the parameters.                          

X = (Click to select)the sample meanSample size of London high school students who participated in the surveyProbability that a London high school student has read the first Harry Potter bookNumber of London high school students who have read the first Harry Potter book

X ~ (Click to select)BinomialNormalContinuousUniform(n=, p=)

Round answers for parts (b) and (c) to two decimal places. Round answers for parts (d) through (h) to four decimal places.

b) What is the expected number of randomly selected students who have read the first Harry Potter book?   

c) What is the variance of number of students who have read the first Harry Potter book?   

d) What is the probability that exactly two of the randomly selected students has read the first Harry Potter book?

e) What is the probability that at least two of the randomly selected students have read the first Harry Potter book?

f) What is the probability that no more than five of the randomly selected students have read the first Harry Potter book?

g) What is the probability that between two and seven (inclusive) of the randomly selected students have read the first Harry Potter book?

h) What is the probability that more than seven of the randomly selected students have read the first Harry Potter book?

3, 7, 8, 5, 6, 4, 9, 10, 7, 8, 6, 5 Using the previous question 's scores, If three points were added to every score in this distribution, what would be the new mean? If three points were added to every score in this distribution, what would be the new standard deviation. Remember, you have already calculated population standard deviation in a previous problem. This problem requires two answers.

During each of the three (3) years, 10 million shares of common stock were outstanding. Assume that all sales were on account and that the applicable market prices per share of stock were RM 90.00 for 2011 and 2012.

1. Compute each of the following for each of the last two years, 2011 & 2012.
2. 1. Average collection period for accounts receivables
   2. P/E ratio
   3. Dividend-payout percentage
   4. Dividend yield
   5. Gross profit rate