1. A law firm wants to determine the trend in its annual billings so that it can better forecast revenues.  It plots the data on its billings for the past 10 years and finds that the scatter plot appears to be linear.  What formula should they use to determine the trend line? σ  =  ∑√(x  -  μ)2  ÷  N F  =  s12  ÷  s22 t  =  (x̄ - μx-bar)  ÷  s/√n Tt  =  b0  +  b1t  3 points    QUESTION 2 1. A set of subjects, usually randomly sampled, selected to participate in a research study is called: Population Sample Mode group Partial selection 3 points    QUESTION 3 1. If a researcher accepts a null hypothesis when that hypothesis is actually true, she has committed: a type I error a type II error no error a causation 3 points    QUESTION 4 1. A binomial probability distribution is a discrete distribution (i.e., the x-variable is discrete).  True  False 3 points    QUESTION 5 1. The tdistribution is wider and flatter (i.e., has more variation) than the normal distribution.  True  False 3 points    QUESTION 6 1. A physician wants to estimate the average amount of time that patients spend in his waiting room.  He asks his receptionist to record the waiting times for 28 of his patients and finds that the sample mean (x̄) is 37 minutes and the sample standard deviation (s) is 12 minutes.  What formula would you use to construct the 95% confidence interval for the population mean of waiting times? t  =  (x̄ - μx-bar)  ÷  s/√n µ  =  ∑ x  ÷  N x̄  -  t(s ÷ √n)   <   µ   <  x̄  +  t(s ÷ √n) z  =  (x - µ)  ÷  σ 3 points    QUESTION 7 1. When the alternative hypothesis states that the difference between two groups can only be in one direction, we call this a: One-tailed test Bi-directional test Two-tailed test Non-parametric test 3 points    QUESTION 8 1. For any probability distribution, the probability of any x-value occurring within any given range is equal to the area under the distribution and above that range.  True  False 3 points    QUESTION 9 1. The formula for ____________   is (Row total X Column total)/T Observed frequencies Degrees of freedom Expected frequencies Sampling error 3 points    QUESTION 10 1. State Senator Hanna Rowe has ordered an investigation of the large number of boating accidents that have occurred in the state in recent summers.  Acting on her instructions, her aide, Geoff Spencer, has randomly selected 9 summer months within the last few years and has compiled data on the number of boating accidents that occurred during each of these months. The mean number of boating accidents to occur in these 9 months was 31 (x̄), and the standard deviation (s) in this sample was 9 boating accidents per month.  Geoff was told to construct a 90% confidence interval for the true mean number of boating accidents per month.  What formula should Geoff use? x̄  -  t(s ÷ √n)   <   µ   <  x̄  +  t(s ÷ √n) F  =  s12  ÷  s22 z  =  (x - µ)  ÷  σ x̄  -  z(σ ÷ √n)  <  µ  <  x̄  +  z(σ ÷ √n) .

1. 1. A law firm wants to determine the trend in its annual billings
so that it can better forecast revenues. It plots the data on its
billings for the past 10 years and finds that the scatter plot
appears to be linear. What formula should they use to
determine the trend line?
σ = ∑√(x - μ)2 ÷ N
F = s12 ÷ s22
t = (x̄ - μx-bar) ÷ s/√n
Tt = b0 + b1t
3 points
QUESTION 2
1. A set of subjects, usually randomly sampled, selected to
participate in a research study is called:
Population
Sample
Mode group

2. Partial selection
3 points
QUESTION 3
1. If a researcher accepts a null hypothesis when that hypothesis
is actually true, she has committed:
a type I error
a type II error
no error
a causation
3 points
QUESTION 4
1. A binomial probability distribution is a discrete distribution
(i.e., the x-variable is discrete).
True
False
3 points
QUESTION 5
1. The tdistribution is wider and flatter (i.e., has more variation)
than the normal distribution.
True
False
3 points
QUESTION 6
1. A physician wants to estimate the average amount of time
that patients spend in his waiting room. He asks his

3. receptionist to record the waiting times for 28 of his patients
and finds that the sample mean (x̄ ) is 37 minutes and the sample
standard deviation (s) is 12 minutes. What formula would you
use to construct the 95% confidence interval for the population
mean of waiting times?
t = (x̄ - μx-bar) ÷ s/√n
µ = ∑ x ÷ N
x̄ - t(s ÷ √n) < µ < x̄ + t(s ÷ √n)
z = (x - µ) ÷ σ
3 points
QUESTION 7
1. When the alternative hypothesis states that the difference
between two groups can only be in one direction, we call this a:
One-tailed test
Bi-directional test
Two-tailed test
Non-parametric test
3 points

4. QUESTION 8
1. For any probability distribution, the probability of any x-
value occurring within any given range is equal to the area
under the distribution and above that range.
True
False
3 points
QUESTION 9
1. The formula for ____________ is (Row total X Column
total)/T
Observed frequencies
Degrees of freedom
Expected frequencies
Sampling error
3 points
QUESTION 10
1. State Senator Hanna Rowe has ordered an investigation of the
large number of boating accidents that have occurred in the
state in recent summers. Acting on her instructions, her aide,
Geoff Spencer, has randomly selected 9 summer months within
the last few years and has compiled data on the number of
boating accidents that occurred during each of these months.
The mean number of boating accidents to occur in these 9
months was 31 (x̄ ), and the standard deviation (s) in this sample
was 9 boating accidents per month. Geoff was told to construct
a 90% confidence interval for the true mean number of boating
accidents per month. What formula should Geoff use?

5. x̄ - t(s ÷ √n) < µ < x̄ + t(s ÷ √n)
F = s12 ÷ s22
z = (x - µ) ÷ σ
x̄ - z(σ ÷ √n) < µ < x̄ + z(σ ÷ √n)
3 points
QUESTION 11
1. One critical difference between the assumptions for using
Chi-square and the assumptions for using ANOVA is that the:
Dependent variable for Chi-square must be measured at an
interval level and for ANOVA it must be ratio
Independent variable for Chi-square can only have up to 3
categories but for the ANOVA it can have more than 3
categories
Dependent variable for Chi-square must be measured at a
nominal or ordinal level and for ANOVA it must be interval or
ratio
None of the above
3 points

6. QUESTION 12
1. If the null hypothesis states that µ ≥ $50 lbs., then the test is
two-tailed.
True
False
3 points
QUESTION 13
1. A researcher wants to determine if socioeconomic status
(low, moderate, high) is related to smoking (yes or no). The
Chi-Square null hypothesis for this study is that socioeconomic
status is related to smoking behavior.
True
False
3 points
QUESTION 14
1. If a specific acupuncture technique is known to be successful
in relieving headaches 80% of the time, what formula would
you use to determine the probability that the technique will be
successful for 4 of the next 5 patients?
P (x out of n) = [n! ÷ x!(n – x)!] [px] [(1 – p)n-x]
x̄ w = ∑ wx ÷ ∑ w
P(A) = (# examples of A) ÷ (total # outcomes possible)
σ = ∑√(x - μ)2 ÷ N
3 points
QUESTION 15
1. Parametric tests can be used when the dependent variable is
at any level of measurement (i.e., nominal, ordinal, interval, or

7. ratio).
True
False
3 points
QUESTION 16
1. A requirement for using Chi-square is that the dependent
variable must be measured at a nominal or ordinal level:
True
False
3 points
QUESTION 17
1. Realtor Elaine Snyderman took a random sample of 12 homes
in a prestigious suburb of Chicago and found the average
appraised market value (x̄ ) to be $780,000, and the standard
deviation (s) was $49,000. What formula would you use to test
the hypothesis that for all homes in the area, the mean appraised
value is less than $825,000? (a = 0.05)
z = (x - µ) ÷ σ
t = (x̄ - μx-bar) ÷ s/√n
z = (x̄ - μx-bar) ÷ σ/√n
x̄ - t(s ÷ √n) < µ < x̄ + t(s ÷ √n)
3 points
QUESTION 18
1. In a time series analysis, you can use the trend equation to
make a prediction for any specific time period.
True
False

8. 3 points
QUESTION 19
1. The Willow Company manufactures automobile batteries.
The company has determined that the lives of its batteries are
normally distributed with a mean life (µ) of 63 months with a
population standard deviation (σ) of 3 months. If someone
purchases one of their batteries, what formula should they use
to determine the probability that it will last less than 57
months?
ŷ = b0 + b1x
z = (x - µ) ÷ σ
x̄ - z(σ ÷ √n) < µ < x̄ + z(σ ÷ √n)
t = (x̄ - μx-bar) ÷ s/√n
3 points
QUESTION 20
1. Marketing researchers hypothesized that customer age group
would affect sales of a new technology. The null hypothesis
could be described as:
Customer age group is related to sales of new technology.
Customer age group would not affect sales of a new technology.

9. Customer age group would affect sales of a new technology.
Some factor other than age group affects sales of new
technology.
3 points
QUESTION 21
1. Chi-square tests can be conducted for a 4X3 contingency
table.
True
False
3 points
QUESTION 22
1. In a two-tailed t-test (hypothesis test) where alpha = .01, s =
1.7, and n = 20, the critical values for t are:
+/- 2.09
+/- 2.86
+/- 2.53
+/- 1.73
3 points
QUESTION 23
1. The area of a sampling distribution beyond which the null
hypothesis is rejected is known as the:
Sampling region

10. Directional hypothesis
Critical region
Degrees of freedom
3 points
QUESTION 24
1. In calculating a binomial probability we are determining the
number of successes out of the total number of trials in an
experiment.
True
False
3 points
QUESTION 25
1. The generic formula for the estimating line used in linear
regression analysis is: Y’ = b0 + b1X
True
False
3 points
QUESTION 26
1. In Bigville, a fast-food chain feels it is gaining a bad
reputation because it takes too long to serve the customers.
Because the chain has four restaurants in this town, it is
concerned with whether all four restaurants have the same
average service time. One of the owners of the fast-food chain
has decided to visit each of the stores and monitor the service
time for five randomly selected customers. At his four noon-
time visits, he records the following service times in minutes.
Do all the restaurants have the same mean service time?
(Use a = 0.05)
Restaurant 1

11. 3
4
5.5
3.5
4
Restaurant 2
3
3.5
4.5
4
5.5
Restaurant 3
2
3.5
5
6.5
6
Restaurant 4
3
4
5.5
2.5
3
2.

15. Path: p
Words:0
9 points
QUESTION 27
1.
American Theaters knows that a certain hit movie ran an
average (μ) of 84 days in each city, and the corresponding
standard deviation (σ) was 10 days. The manager of the
southeastern district was interested in comparing the movie’s
popularity in his region with that in all of American’s other
theaters. He randomly chose 75 theaters in his region and found
that they ran the movie an average (x̄ ) of 81.5 days. At the 0.01
significance level, can the manager conclude that there was a
significant difference in the length of the picture’s run between
theaters in the southeastern district and all of American’s other
theaters?

19. Path: p
Words:0
8 points
QUESTION 28
1. The editor-in-chief of a major metropolitan newspaper
has been trying to convince the paper’s owner to improve the
working conditions in the pressroom. He is convinced that the
noise level when the presses are running creates unhealthy
levels of tension and anxiety. He recently had a psychologist
conduct a test during which press operators were placed in
rooms with varying levels of noise and then given a test to
measure mood and anxiety levels. The following table shows
the index of their degree of arousal or nervousness and the level
of noise to which they were exposed (1.0 is low and 10.0 is
high):
Noise Level
4
3
1
2
6
7
2
3

20. Degree of Arousal
39
38
16
18
41
45
25
38
1. Develop an equation relating noise level and degree of
arousal. [10 POINTS]
2. Predict the degree of arousal that might be expected if the
noise level is 3. [5 POINTS]
Pr. 21(6)-5AProblem 21(6)-5AName: 0Section: # N-box
Incorrects due to blanks COUNTIF(B15:AT24," ")66Score:
0%# N-box +B-box corrects COUNTIF(B15:AT24," ")0Key
Code: [Key code here]Total SUM(AD13:AD15)Instructions
66Answers are entered in the cells with gray
backgrounds.Percentage =(AD16-AD13-AD14)/AD16Cells with
non-gray backgrounds are protected and cannot be edited.0%An
asterisk (*) will appear to the right of an incorrect entry.
Notes:If number-entry box is blank (this would be an incorrect
answer for N-boxes), error check returns two spaces, " "If
number-entry or blank-entry box is incorrect, returns "*"1.If
number-entry or blank-entry box is correct, returns single space,
" "REGINA SOAP CO.Accounts ReceivableUse data
verification to set data entry to whole number >= 0, and use
drop-downs for lables and names, so that students can't enter a
space in a box and have it counted as correct.Budgeted Income
StatementAccounts PayableConditional formatting might be
used but wasn't here, to hide some of the error check return

21. symbols. If A1 = "~*", then font = red, if something else, then
font = background color.For the Year Ending December 31,
2017Sales
Mark Sears: Enter as a formula of units x price.Cost of goods
sold:Materials inventory, May 1, 2012Direct materials
Mark Sears: Enter a formula of units x unit cost.
Direct laborFactory overhead
Mark Sears: Complete the supporting calculations below and
enter appropriate amount here.
Cost of goods manufacturedCost of goods soldCost of materials
available for useGross profitMiscellaneous costOperating
expenses:Property taxesSelling expenses:SuppliesSales salaries
and commissions
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
AdvertisingMiscellaneous selling expense
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Total selling expensesAdministrative expenses:Finished goods
inventory, May 1, 2012Office and officers salaries
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Supplies
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Miscellaneous admin. expenses
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.

22. Finished goods inventory, May 31, 2012Total administrative
expensesMaterials inventory, May 1, 2012Total operating
expensesIncome before income taxIncome tax expenseNet
incomeSupporting calculations for budgeted income
statement:Factory overhead:Office and officers
salaries:Variable overhead
Mark Sears: Enter a formula of units x variable unit cost.
Fixed portionDepreciationVariable portion
Mark Sears: Enter a formula of units x variable unit cost.
OtherTotalTotalSales salaries and commissions:Supplies
expense:Fixed portionFixed portionVariable portion
Mark Sears: Enter a formula of units x variable unit cost.
Variable portion
Mark Sears: Enter a formula of units x variable unit cost.
TotalTotalMiscellaneous selling expenses:Miscellaneous
administrative expenses:Fixed portionFixed portionVariable
portion
Mark Sears: Enter a formula of units x variable unit cost.
Variable portion
Mark Sears: Enter a formula of units x variable unit cost.
TotalTotal2.REGINA SOAP CO.Budgeted Balance SheetFor the
Year Ending December 31, 2017AssetsCurrent assets:Cash
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Accounts receivableInventories:Finished goodsWork in
processMaterialsPrepaid expensesTotal current assetsProperty,
plant, and equipment:Plant and equipment
Mark Sears: Enter a formula of current plant and equipment plus

23. expected acquisitions.
Less accumulated depreciation
Mark Sears: Enter a formula of current balance plus expected
2013 depreciation.
Total assetsLiabilitiesCurrent liabilities:Accounts
payableStockholders' EquityCommon stockRetained earnings
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Total stockholders' equityTotal liabilities and stockholders'
equitySupporting calculations for budgeted balance sheet:Cash
balance:Balance, January 1, 2017Plus cash from operations:Net
income (from budgeted income statement)Depreciation (add
back noncash item)Less planned nonoperating cash
outflows:Dividends to be paid in 2017Plant and equipment to be
acquired in 2017Balance, December 31, 2017Retained earnings
balance:Balance, January 1, 2017Plus expected net income for
2017Less dividends to be paid in 2017Balance, December 31,
2017
SolProblem 21(6)-5AName:
Solution
Section: Score: ONInstructions
Answers are entered in the cells with gray backgrounds.Cells
with non-gray backgrounds are protected and cannot be
edited.An asterisk (*) will appear to the right of an incorrect
entry. 1.REGINA SOAP CO.Budgeted Income StatementFor the
Year Ending December 31, 2017Sales$ 1,000,000

24. Mark Sears: Enter as a formula of units x price.Cost of goods
sold:Direct materials$ 220,000
Mark Sears: Enter a formula of units x unit cost.
Direct labor130,000Factory overhead132,000
Mark Sears: Complete the supporting calculations below and
enter appropriate amount here.
Cost of goods sold482,000Gross profit$ 518,000Operating
expenses:Selling expenses:Sales salaries and commissions$
136,000
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Advertising64,000Miscellaneous selling expense56,000
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Total selling expenses$ 256,000Administrative
expenses:Office and officers salaries$ 96,400
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Supplies25,000

25. Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Miscellaneous admin. expenses14,000
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Total administrative expenses135,400Total operating
expenses391,400Income before income tax$ 126,600Income
tax expense30,000Net income$ 96,600Supporting calculations
for budgeted income statement:Factory overhead:Office and
officers salaries:Variable overhead$ 80,000
Mark Sears: Enter a formula of units and variable unit cost.
Fixed portion$ 72,400Depreciation40,000Variable
portion24,000
Mark Sears: Enter a formula of units and variable unit cost.
Other12,000Total$ 96,400Total$ 132,000Sales salaries and
commissions:Supplies expense:Fixed portion$ 46,000Fixed
portion$ 5,000Variable portion90,000
Mark Sears: Enter a formula of units and variable unit cost.
Variable portion20,000
Mark Sears: Enter a formula of units and variable unit cost.

26. Total$ 136,000Total$ 25,000Miscellaneous selling
expenses:Miscellaneous administrative expenses:Fixed portion$
6,000Fixed portion$ 4,000Variable portion50,000
Mark Sears: Enter a formula of units and variable unit cost.
Variable portion10,000
Mark Sears: Enter a formula of units and variable unit cost.
Total$ 56,000Total$ 14,0002.REGINA SOAP CO.Budgeted
Balance SheetFor the Year Ending December 31,
2017AssetsCurrent assets:Cash$ 135,800
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Accounts receivable125,600Inventories:Finished goods$
69,300Work in process32,500Materials48,900150,700Prepaid
expenses2,600Total current assets$ 414,700Property, plant,
and equipment:Plant and equipment$ 400,000
Mark Sears: Enter a formula of current plant and equipment plus
expected acquisitions.
Less accumulated depreciation196,200
Mark Sears: Enter a formula of current balance plus expected
2013 depreciation.

27. 203,800Total assets$ 618,500LiabilitiesCurrent
liabilities:Accounts payable$ 62,000Stockholders'
EquityCommon stock$ 180,000Retained earnings376,500
Mark Sears: Complete the supporting calculations below and
enter the appropriate amount here.
Total stockholders' equity556,500Total liabilities and
stockholders' equity$ 618,500Supporting calculations for
budgeted balance sheet:Cash balance:Balance, January 1, 2017$
85,000Plus cash from operations:Net income (from budgeted
income statement)$ 96,600Depreciation (add back noncash
item)40,000136,600Less planned nonoperating cash
outflows:Dividends to be paid in 2017$ (10,800)Plant and
equipment to be acquired in 2017(75,000)(85,800)Balance,
December 31, 2017$ 135,800Retained earnings
balance:Balance, January 1, 2017$ 290,700Plus expected net
income for 201796,600Less dividends to be paid in
2017(10,800)Balance, December 31, 2017$ 376,500