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CIUANTITATIVE METHODS II
STAT

2011

TEST 1

June 2016
Professor: Hernando Burgos

Total of 10 pages and 5O marks

Length of Test: 1: hour 50 minutes

Please note the following:

1.
2.
3.
4.
5.

No dictionaries, material of any kind except a calculator, pencil, pen, formula sheet and eraser
are to be on your desk. You may use your own calculator as described in the course outline' No

other aids are Permitted.

There is to be no sharing of any material during the exam.
All personal belongings must be placed at the front of the room
Cell phones must be turned off and stored in your personal belongings at the front of the room.
The use of scrap paper is NOT permitted. The backs of the test pages may be used for rough
work, which will not be marked. Pages must NOT be detached from the test.

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Student's Signature: ll"-4lV*
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Student Name:

Student lD Number:

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STAT
1)

z0|l.Tnsr 18.

June,2016

A candy company fills a 480-9 package of Halloween candy with individually wrapped pieces oJcandy'
The company
The number of pi"".r of candy per package varies because the package is sold by mass.
packages
of this
wants to estimate the number of pieces per package. Inspectors randomly sample 140
of pieces
candy and count the number of piices in iach package. They find that the sggglg. rnean numler
what is the point estirnate of
ig"l_qas.Assuming a poputration standard aeviqrion

9.1Q.9915,
!tt1""*b:1
intemalto-est-im-ale,then1g4nnunnberof piecesper
ofpieces per package?
(3 marks)
pu.t ug" for the popirlution. Round your answer to two decimal places as needed'

fl: \\O
x . \t.)6
o-: o-tb5
&: 0.02

rb.:b u)

o"tb)!
:.]i *m

a- tb.oB

b>'i'
a'S
(\*m:- th"\z
:
-1+ ai^l.+
tb.:b+:.;t
'' \n'

x.tb.2S
"

{
16.

Ir-- 2.J)

F\ere

oB

st'rnate

nu*bgl

AL

tb.

q-)

and the
A random-samplrof-size-81 is taken from a population of 300 rqglnbers' The sa$*eaaeaLiq3
popg.lalioagtandad_:de,viatisn_1pj2. ConstruCt a 95% cqqfi-denseir*esal-lcestruaatqf!epgp,ly11T_T"""'
(3 marks)
Round your answeu io t*o decimat plaees as needed'

2)

-.-"-'

n--B\

N:3oo

-Fl

U=x

_ a\

y - t2

+Zai,kJH : lf +

d*= 1)
cL = o.o5

S.rbs
{1oc25
ba

7.= l.QL

nA

{ r+.2

'qb(.rF)rm

14- z1

STAT }All.Tss:r 18.

June,2016

3) According to a study five years a9o by fhe Personal Communications

Industry Associalio$, t}rg

average wireless phone user earns $62,000 per year. Suppose a re- searcher believes that the average
annual earnings of a wireless phone user are lower now and he sets up a study in an affempt to prove
alefage annual salary
his theory. He randomly sQrqpjes 20 wireless ptroGGers andfinds out
of$Z3l0. Use a 0.01 to test the
for this sample is $58,620,
researcher's theorykmnte wages in this industry are normally

wi@on

fi

a)

:2o , J - EB,b:o

State the hypotheses: (1

\lo. A :
Hq. ,t {
b)

mark)

C- =-1

\\y' J

t>,ooo

6),ooo

Compute the test statistic. (2 marks)

EB.blo-b)'rxo
\-M
.= -T
rmg_

,fr"

A -0.+gog
P-valvre -* o.5

c)

- o.($o$ : o- olQ 7

Find the critical value (2 marks)

7c = -2-a\ <

d)

State the decision and

$inceltp -n"\ru

*he nr^\\

hqpo+he

o.o\

lusion (1mark)

write

qteo,*ar- +han

r,r {hat /{ :, t)

oo0

do vcjert

STAT ?,0ll..Tssr 18.

4) A hole-punch

June,2016

machine is set to punch a bolg ].!4_cm in diameler in a strip of sheet metal

i11 a

manufacfuring process. The sfrip of metal is then creased and sent on to the next phase of production,
where a metal rod is slipped through the hole. It is imporfant that the hole be punched to the specified
diameter of 1.84 cm. Tq test punching aaqqrac]- technicians have randomly sampled 12 punched holes
and measured the diameters. The data (in centimeters) follow. Use an
of 0.10 to determine whether
the holes being punched have an average diarreter of 1.84 crr.
the punched holes are normally
distributsd in tlre populatloll.
:\>.

a)

1.81 1.85 1.84 1.89 1.86 1.83

\1r^,

b)

\.8+

-*

AA

+ \.tti

Compute the test statistic. (2

\:

mark)

State the hypotheses: (1

\io' /

7-^^
-s_

1.

oL=o.\ ?=o-ot
1.87 1.85 1.86 1.88 1.85
1=t.85 S= o.o)3b3)bqB

marls)

l-95 - '94
1

-@

{n

o.o)il

.lla

to/t,n-, = t,,.B,r>-\ = l.

t't-+J <\,
c)

= {,14b

Find the critical value. (2 marks)

7= u t tu.rr& :

.o) 15 3:bt 8

\-84+ \.rqL rlt;

,$

x. "- \.E5>r

d)

State the decision and write your conclusion (1 ma

\i.'.e t= \-ql is
F\t{ a6u nu\\

srr\a[\er. .{han

h1qr"+h+st

'{"h

STAT

5)

z0ll.Tusr 18.

June,2016

Suppose *re altemative hypothesis states that the mean is greatgr.tha$-s0*If a randorn sample of,35 itemq

istakentotestthishypothesis,whatisthevalueofBifth"popg1q4q@andthe
u"tuulpgqgluttott -ggo is 53? Use
marks)

\lo'.

,t\ --Eo

Ho.. 4A > 5o

n-_35

0.01. Round your answer to two decimal places as needed. (3

/A

+ Z.^$ --6o+).13tr;n

o-

-t

t -/^

- l)..-lb

6).rb - 63
-1

{n

c=l
AAa.

a:

"F5

!3

d. : q.o\

o,o \

?c.

2.1>,

e'

: D, sfrrt3) :
\,

z0ll.Tnsr 18.

STAT

6)

June,2016

Multinational companies generally provide an allowance for personal long-distance calls for
executives living overseas. Assume that T8o/o of Canadian-based multinational companies
provide such an allowance. A researcher thinks that Canadian-based multinational companies
are having a more difficult time recruiting executives to live overseas and that an increasing
number of these companies are providing an allowance for personal long-distance calls to these
executives to ease the burden of living away from home. To test this hypothesis, a study is
conducted by contacting420 multinational companies.9T of these surveyed companies are
to executives living overseas. Does the
providing an allowance for personal long-distance
ly h[g,hsr .nroportion of multinational
test show enough evidence to declare that a si
? Let a: 0.01. n :
companies provide a long-distance call
a) State the hypotheses: (1 ma
\ \.
\

b)

'r.\!l

i, ., r'- il

!,.

Compute the test statistic. (2 marks)

'..fi
I

,'l

i.

,i.

.,

t:

c)

Find the p value (2 marks)

7.:

.t:

ii - ;

iri-1!'

d)

--Volu

1..1:.

State the decision and

t,

r'., ii ili

write your conclusion (1 marks)

c. cC-:;

\te

Fti( r"{ Jl''.t 1..,..ii

'1,,-,,ir,:,!i.{

'.

i"

i''

!rr, r.', rl

STAT

7)

ztll.Trsr

18.

June,2016

Two processes in a manufacturing line are performed manually: operation A and operation B. A random
sample of 64 diflerent assemblies using operation A shows that the sample average time per assembly is
8.05 minutes, with apopulation standard deviation of 1.36 minutes. A random sample of 49 different
assemblies using operation B shows that the sample avarage time per assemhly is 8.26 minutes, with a
population standard deviation of 1.06 minutes. For s : 0.01, is there enough evidence in these samples
to declare that op:ryllqn B takes significantly ,l-gggg1to- perform than operation A?

e)

State the hypotheses: (1

L\o.

r1.\'

marks)

B. r\z=

-8":b

C-,'\.ib
C. - \.ot

-Ma= o

Hn. M'-M.<O

Compute the test statistic.

(x' x,t (M,-M,r

t--+

!:

g)

iq'

-e-:

n'

?.os 8.:b

G'
+

I.1r

Find the p value. (2 marks)

-L-

- 11 O)

/\: 0.3)\2
P-va\ue

h)

= 0-5-o.]2

rk)

State the decision and write your conclusion.

Si^.*

+\" p-

\\e {n'\

volurq

"{.,o Lt\Pc+

\s

o. \ttBB

+he

ni,.[

whi

\i

{ra*gv {{oan o.o\

{hc,t

IA,

q:L: o-oi

STAT zA11. Tssr 1B.

June,2016

8) Some studies have shown that men spend more tlran women buying gifts and cards on Valentine's

Day.

Suppose a researcher wants to test this hypothesis by randomly sampling 9 men and 8 women. Each study
participant is asked to keep a log beginning one month before Valentine's Day and record all purchases

made for Valentine's Day during that one-month period. The resulting data are shown below. Use these
data and a 5oZ level of significance to testto determine if, on average, nne-!,,?ppglh{-o_qpgq{significantly

more than women on Valentine's Day. Assume that such spending is normally distributed
population and that the population variances are equal.

$115.98 45.s3 s6.35 80.62 46.37 44.34 7s.21

Women

State the hypotheses: (1

t M' - M'' '

Ha' M, -M'. )
Ho

j)

f\, .

l{\ en

marks)

fi: '8

\\cvo en

58.48

*r - \\3.2t1 Sl zt.tz
1. = 66. 51 S. ' :$. 4o

Compute the test statistic. (2 marks)

Sr>(n,-r) *

\:'(0r-t)

n,{h1 - l

( x,

z-1.r2=(q:r) +>j+
f!?. r )

t{8-=

-i,\ - tM' *Ai>)

F1

'

-26-/

t\i.>t-r * b(.6\

Ib. ))

r\>

Jq--t

-=

k)

Find the critical value (2 marks)

D.{. fl,to>->= 1+t

e.

o5

\.

74

t. 'r..l !

x, aq

= to.og, ,5 :

D State the decision and write your conclusion.

(1 marks)

- 3.bt ,whith is {Wafet t\^n

we wltt t\e nrnll hqpothesrs And Acrp+

S,^ce {

the

$108.41 t43.61 110.19 125.53 70.79 83.00 129.63 ts4.22 93.80

Men

r)

in

tc=\.
M, ) Mr

STAT 2011. Tnsr 18.

9)

June,20l6

milk is produced in acertain area. Some people might argue that because of transportation costs,
the price of milk in stores increases with the distance of markets from that area. Suppose the milk prices
Suppose

in eight cities are as follows.

Milk

Price of

/r,er2L)'

tr

Distance fiom MilkProducins Area (km)

s2.64

1.245

2.30

450

2_70

1.346

2.52

973

2.t9

255

2.55

870

v-i

2.

'-

\'i\

o.otQL

*. r:ti4

-115-l

2lot i

: -i{:-j

//

,/

-l :. \r,-\
-:- 4tq\,/
as needed. ,/

;,'{u.,rot'

' 6rt-3

..

L>.

tr)*\

O. o

Iu[,

Round your answer to four decimal places

a) Compute the coefficient of correlation betweenfr{two variables

r: o.tit -lt
b)

/'

(2Y{rk)

(he pice of 2
Develop a regression line to(plg
kilometers the city is from the milk-producing

ilk by

the number

of

(1 mark)
residuals for this model. Sketch a graph of the residualsjnfbg llder of the x values.
Comment on the shape of the residual graph. (3 marks)

qf
I

STAT 201l.Trsr 18.

d)

Determine the sum of squares of error (SSE) and the standard error of the
estimate (se)
3 marks)

sSr:

. 1,1- {t" :

0.Oo*E

r--*****
lc.cu4g
t_-.***-

J i,-;.

*h e sian ;,{ \QLr{nLs ,*_{

S-1

e)

Compute

rinJnr

ql r...,y

-{

the

0*l-58% 4

'O-,J3qb

g".yl

ar

1{r

*c.4q, c !

6.

r2 far and discuss the value

F' . O.ql5t

-+

.rh

c.\,.J.{ifl

L! " clqli.t"E

.r

i*:\q{ L,
(1 mark)

$e val-iobi\;{t c{" the

.ihe \Sr',nt,urr \fi

l0)

l0

June, 2016

pvtce

gg .{lr,,"rt *,,i,1

,q 6vplc',r'r,A
"{ *,\k
.

1-,.r.0;11,f

tnt

hr1

i\i.{,/.i

Study the following ANovA table, which was generated from a simple. reeressjon analysis
in Excel.
Determine tfu value of t,and test the slope of the regression line. (2 marksj

Analysis of Variance
DF

Source

Regression t

Error
Total

r
f

MS

6252463A24 625246.3024 52.86064854 0.A00344486

70969.19765 L1828.19961

6962L5.5

_,Ll

(--'

L_ -\F
-a

"l

\etre\

ob.

"{

srrlnr{ire^nc{ C :

Tt-2

n-]

\---lzl

wq

Feje r

nrnll

h r,1po{he:r

E -lh..t

{lr,

: t} -

I-{Fl(i

prtdt*r

vAriorb\

-i
o,

h.-{

to.

nrr,r{

pl,

pu