1Dr.

Ramakrishna NAME:

BUAD631 Final Exam

(100 points)

Instructions:

READ (and FOLLOW) THE INSTRUCTIONS

1. Please make sure you put your name in the space provided at the top right corner of this
page.

2. Please insure that your copy of the exam has a total of 10 numbered pages that includes
14 questions and two computer printouts.

3. For essay questions, I have provided just enough space for you to write your answers.
Please do not write too much beyond the space provided (otherwise, you will run out of
time).

4. You can use the one-page notes sheet on this exam. You are not permitted to use any
other notes, class materials, books, or other sources of information.

5. This is a timed exam. You will have a maximum of 75 minutes to complete the exam.

6. Assume an  = .05 whenever necessary.

GRADE SUMMARY
Problems Partial 36

Full 34
Short essays 12
Multiple choice 18
Extra credit 4
Total 100

Good Luck

Final Exam Page 1 of 10

Problems -- Partial

For the next four problems just do the following:

(Answer any three of the four questions. If you answer a fourth question and identify that as an
extra-credit question, it will be graded for four extra credit points)

A. Identify the independent variable(s) – if any (and define them precisely and indicate they
are qualitative or quantitative)
B. Identify the dependent variable – if any (and define them precisely and indicate they are
qualitative or quantitative)
C. Identify the type of analysis that is appropriate (Chi-Square test of independence, ANOVA,
Regression, or Correlation)
D. Justify why the analysis you identified in part C is correct.
(3 + 3 + 3 + 3 points)

1. Your firm is having quality problem with the production of plastic automotive parts: there are too
many defectives. One of your engineers thinks that it’s because the temperature of the process is
not controlled carefully enough. Another engineer is sure that it’s because the assembly line is
being shut down too often for unrelated reasons. You have decided to analyze the problem and
have come up with figures for the percent defective each day recently, the standard deviation of
temperature measured hourly each day (as a measure of temperature control), and the number of
assembly line stoppages each day. You are interested in finding out which engineer is right.

A.

B.

C.

D.

2. Some critics of big business argue that CEOs are overpaid and that their compensation is not
related the performance of their company. To test this theory, data on executive’s total pay and
company’s performance was collected from a randomly selected set of fifty companies.

A.

B.

C.

D.

Final Exam Page 2 of 10

3. Many companies use well-known celebrities in their ads, while other companies create their own
spokespersons (such as Maytag repairman). A marketing researcher is interested in investigating
the relationship between gender of the spokesperson and brand awareness. Three hundred
television viewers were asked to identify the products advertised by celebrity spokespersons.

A.

B.

C.

D.

4. To test whether the mean time needed to mix a batch of material is the same for machines produced
by three manufacturers, Jacob’s Chemical Company obtained the data on the mixing times from ten
batches for each of the machines. What can we conclude?

A.

B.

C.

D.

Final Exam Page 3 of 10

Problems -- Full

For the next two problems just do the following:

A. Set up the appropriate hypotheses (in plain English)
B. Draw appropriate statistical conclusions (based on the printout provided). In your
conclusions, make sure to indicate what values you specifically used from the printout
(i.e., highlight/mark/circle the relevant values you need from the printout and then use
them in your discussion/conclusions).
C. Present proper conclusions for the business problem.

5. As a consulting industrial engineer you are hired to perform a "human factors experiment"
at Burstinter & Lobel, a large law firm. A pool of 30 typists of similar ability and
experience is selected to participate. Groups of 10 typists each are randomly assigned to
one of three working conditions—very noisy atmosphere (90 Db constant), somewhat
noisy atmosphere (65 Db constant), and pleasant atmosphere (40 Db constant). The
subjects are then asked to type a technical manuscript. The following data represent the
number of mistakes on the manuscript make by the typists under the various working
conditions.

Groups
Very Noisy Somewhat Noisy Pleasant
(90 Db) (65 Db) (40 Db)
14 2 2
12 5 6
13 8 6
13 5 2
16 7 4
18 6 3
19 9 2
11 4 1
10 10 7
13 9 5

At the .01 level of significance, is there evidence of a difference in the average number of
errors between the three groups?
(3 + 8 + 6 points)

Please refer to Printout #1 for this problem

A. H0:

H1:

B.

C.

Final Exam Page 4 of 10

6. A list of best selling cars for 1987 is shown in the table. The 1988 suggested retail price
and the total number sold are given in the table below..

MODEL 1988 Price Number sold

(in thousands) (in thousands)

Hyundai 5.4 264

Oldsmobile Cierra 11.4 245
Nissan Sentra 6.4 236
Ford Tempo 9.1 219
Chev. Corsica 10.0 214
Pontiac Grand Am 10.3 211
Toyota Camry 11.2 187
Chev. Caprice 12.5 177
At  = .05, is there evidence of relationship between the two variables?
(3 + 8 + 6 points)

Please refer to Printout #2 for this problem

A H0:

H1:

B.

C.

Final Exam Page 5 of 10

Essay Questions

7. What is Post-ANOVA test? Why is it necessary? When? Explain with an example.

(4 + 2 + 2 points)

8. The heights of a sample of husbands and wives in the Heightlands are given below. Write
down an equation (i.e., the regression equation) predicting the height of a husband (Y)
from the height of his wife (X). What is the correlation coefficient for this equation? (2 + 2
points)

Height of husband Height of wife

72 67
68 63
63 58
59 54

___________________________________________________________

Final Exam Page 6 of 10

 Printout #1
One-way ANOVA: Mistakes versus NoiseLevel
Method
Null hypothesis All means are equal
Alternative Not all means are equal
hypothesis
Significance level α = 0.05
Equal variances were assumed for the analysis.
Factor Information
Factor Levels Values

NoiseLeve 3 1, 2, 3
l
Analysis of Variance
Adj
Source DF SS Adj MS F-Value P-Value

NoiseLeve 2 546.9 273.433 42.19 0.000

l
Error 27 175.0 6.481    
Total 29 721.9      
Model Summary
R-
S R-sq sq(adj) R-sq(pred)

2.5458 75.76% 73.96% 70.07%

8
Means
NoiseLeve StDe
l N Mean v 95% CI

1 1 13.900 2.923 (12.248, 15.552)

0
2 1 6.500 2.550 (4.848, 8.152)
0
3 1 3.800 2.098 (2.148, 5.452)
0
Pooled StDev = 2.54588

Final Exam Page 7 of 10

 Interval Plot of Mistakes vs NoiseLevel
95% CI for the Mean
16

14

12
Mistakes

10

2
1 2 3
NoiseLevel
The pooled standard deviation is used to calculate the intervals.

Final Exam Page 8 of 10

 Printout #2
Regression Analysis: Number versus Price
Analysis of Variance
Adj
Source DF Adj SS MS F-Value P-Value

Regressio 1 3311 3310.9 7.77 0.032

n
  Price 1 3311 3310.9 7.77 0.032
Error 6 2556 426.0    
Total 7 5867      
Model Summary
R-
S R-sq sq(adj) R-sq(pred)

20.639 56.43% 49.17% 23.44%

6
Coefficients
SE T-
Term Coef Coef Value P-Value VIF

Constan 302.9 30.9 9.80 0.000  

t
Price -8.78 3.15 -2.79 0.032 1.00
Regression Equation
Numbe = 302.9 - 8.78 Price
r
Fits and Diagnostics for Unusual Observations
Ob Std
s Number Fit Resid Resid

2 245.0 202.8 42.2 2.30 R

R  Large residual

Final Exam Page 9 of 10

 Scatterplot of Number vs Price
270

260

250

240

230
Number

220

210

200

190

180

5 6 7 8 9 10 11 12 13
Price

Final Exam Page 10 of 10