Describe what a type I and type II error would be for the following null hypothesis:  H_0: There is no difference between steam and chemical carpet cleaning methods. And Answer “True” if the statement is always true. If the statement is not always true, replace the underlined words with words that make the statement always true. 1 1. (TCO A)Consider the following sample data on the age of the 30 employees that were laid off recently from DVC Inc. 21         38         20         26         37         52         37         24         45         20 50         49         44         30         29         42         56         46         60         30 32         25         47         55         38         25         20         29         32         30   a. Compute the mean, median, mode, and standard deviation, Q1, Q3, Min, and Max for the above sample data on age of employees being laid off. b. In the context of this situation, interpret the Median, Q1, and Q3. (Points : 33) 2. (TCO B) Consider the following data on newly hired employees in relation to which part of the country they were born and their highest degree attained.   HS BS MS PHD Total East 3 5 2 1 11 Midwest 7 9 2 0 18 South 5 8 6 2 21 West 1 7 8 6 22 Total 16 29 18 9 72   If you choose one person at random, then find the probability that the person a. has a PHD. b. is from the East and has a BS as the highest degree attained. c. has only a HS degree, given that person is from the West. (Points : 18) 3. (TCO B) Squib claims that its new pain reliever is effective in giving relief for headaches within 10 minutes for 95% of users. A random sample of 25 patients is selected. Assuming Squibb is correct, then find the probability that   a. exactly 23 patients obtain relief within 10 minutes. b. more than 23 patients obtain relief within 10 minutes. c. at most 22 patients obtain relief within 10 minutes. (Points : 18) 4. (TCO B) At a local supermarket the monthly customer expenditure follows a normal distribution with a mean of $495 and a standard deviation of $121.   a. Find the probability that the monthly customer expenditure is less than $300 for a randomly selected customer. b. Find the probability that the monthly customer expenditure is between $300 and $600 for a randomly selected customer. c. The management of a supermarket wants to adopt a new promotional policy giving a free gift to every customer who spends more than a certain amount per month at this supermarket. Management plans to give free gifts to the top 8% of its customers (in terms of their expenditures). How much must a customer spend in a month to qualify for the free gift? (Points : 18) 5. (TCO C) A tool manufacturing company wants to estimate the mean number of bolts produced per hour by a specific machine. A simple random sample of 9 hours of performance by this machine is selected and the number of bolts produced each hour is noted. This leads to the following results.   Sample Size = 9 Sample Me.

1. Describe what a type I and type II error would be for the
following null hypothesis:
H_0: There is no difference between steam and chemical carpet
cleaning methods.
And Answer “True” if the statement is always true. If the
statement is not always true, replace the underlined words with
words that make the statement always true.
1
1. (TCO A)Consider the following sample data on the age of the
30 employees that were laid off recently from DVC Inc.
21 38 20 26 37 52 37
24 45 20
50 49 44 30 29 42 56
46 60 30
32 25 47 55 38 25 20
29 32 30
a. Compute the mean, median, mode, and standard deviation,
Q1, Q3, Min, and Max for the above sample data on age of
employees being laid off.
b. In the context of this situation, interpret the Median, Q1, and
Q3. (Points : 33)
2. (TCO B) Consider the following data on newly hired
employees in relation to which part of the country they were
born and their highest degree attained.
HS
BS

2. MS
PHD
Total
East
3
5
2
1
11
Midwest
7
9
2
0
18
South
5
8
6
2
21
West
1
7
8
6
22
Total
16
29
18
9
72
If you choose one person at random, then find the probability

3. that the person
a. has a PHD.
b. is from the East and has a BS as the highest degree attained.
c. has only a HS degree, given that person is from the West.
(Points : 18)
3. (TCO B) Squib claims that its new pain reliever is effective
in giving relief for headaches within 10 minutes for 95% of
users. A random sample of 25 patients is selected. Assuming
Squibb is correct, then find the probability that
a. exactly 23 patients obtain relief within 10 minutes.
b. more than 23 patients obtain relief within 10 minutes.
c. at most 22 patients obtain relief within 10 minutes. (Points :
18)
4. (TCO B) At a local supermarket the monthly customer
expenditure follows a normal distribution with a mean of $495
and a standard deviation of $121.
a. Find the probability that the monthly customer expenditure is
less than $300 for a randomly selected customer.
b. Find the probability that the monthly customer expenditure is
between $300 and $600 for a randomly selected customer.
c. The management of a supermarket wants to adopt a new
promotional policy giving a free gift to every customer who
spends more than a certain amount per month at this
supermarket. Management plans to give free gifts to the top 8%
of its customers (in terms of their expenditures). How much
must a customer spend in a month to qualify for the free gift?
(Points : 18)
5. (TCO C) A tool manufacturing company wants to estimate

4. the mean number of bolts produced per hour by a specific
machine. A simple random sample of 9 hours of performance by
this machine is selected and the number of bolts produced each
hour is noted. This leads to the following results.
Sample Size = 9
Sample Mean = 62.3 bolts/hr
Sample Standard Deviation = 6.3 bolts/hr
a. Compute the 90% confidence interval for the average number
bolts produced per hour.
b. Interpret this interval.
c. How many hours of performance by this machine should be
selected in order to be 90% confident of being within 1 bolt/hr
of the population mean number of bolts per hour by this specific
machine? (Points : 18)
6. (TCO C) A clock company is concerned about errors in
assembly in their custom made clocks. A simple random sample
of 120 clocks yields nine clocks with errors in assembly.
a. Compute the 99% confidence interval for the proportion of
clocks with errors in assembly.
b. Interpret this confidence interval.
c. How large a sample size will need to be selected if we wish
to have a 99% confidence interval that is accurate to within
1.5%? (Points : 18)
7. (TCO D) An article in a trade journal reports that nationwide
28% of liquor purchases are made by women. If B & B Liquor’s
proportion of sales to women is significantly different from the
national norm, the owners are considering redesigning B & B’s
advertising. A random sample of 100 customers is selected
resulting in 24 women and 76 men. Does the sample data
provide evidence to conclude that less than 28% of B&B’s
Use the hypothesis

5. testing procedure outlined below.
a. Formulate the null and alternative hypotheses.
b. State the level of significance.
c. Find the critical value (or values), and clearly show the
rejection and non-rejection regions.
d. Compute the test statistic.
e. Decide whether you can reject Ho and accept Ha or not.
f. Explain and interpret your conclusion in part e. What does
this mean?
g. Determine the observed p-value for the hypothesis test and
interpret this value. What does this mean?
less than 28% of B & B’s customers are women? (Points : 24)
8. (TCO D) Bill Smith is the Worthington Township manager.
When citizens request a traffic light, the staff assesses the
traffic flow at the requested intersection. Township policy
requires the installation of a traffic light when an intersection
averages more than 150 vehicles per hour. A random sample of
48 vehicle counts is done. The results are as follows:
Sample Size = 48
Sample Mean = 158.3 vehicles/hr.
Sample Standard Deviation = 27.6 vehicles/hr.
Does the sample data provide evidence to conclude that the
Use the hypothesis testing procedure outlined below.
a. Formulate the null and alternative hypotheses.
b. State the level of significance.
c. Find the critical value (or values), and clearly show the
rejection and nonrejection regions.
d. Compute the test statistic.
e. Decide whether you can reject Ho and accept Ha or not.

6. f. Explain and interpret your conclusion in part e. What does
this mean?
g. Find the observed p-value for the hypothesis test and
interpret this value. What does this mean?
the installation of the traffic light is warranted? (Points : 24)
Question 1. 1. (TCO E) Management at New England Life wants
to establish the relationship between the number of sales calls
made each week (CALLS, X) and the number of sales made
each week (SALES, Y). A random sample of 18 life insurance
salespeople were surveyed yielding the data found below.
CALLS
SALES
PREDICT
57
18
50
18
2
100
61
18
48
14
58
17
48
13
29

7. 9
43
12
51
17
32
12
59
21
32
8
39
12
54
16
37
9
21
5
62
18
44
14

8. Correlations: CALLS, SALES
Pearson correlation of CALLS and SALES = 0.956
P-Value = 0.000
Regression Analysis: SALES versus CALLS
The regression equation is
SALES = - 2.39 + 0.351 CALLS
Predictor Coef SE Coef T P
Constant -2.392 1.231 -1.94 0.070
CALLS 0.35063 0.02674 13.11 0.000
S = 1.50743 R-Sq = 91.5% R-Sq(adj) = 91.0%
Analysis of Variance
Source DF SS MS F P
Regression 1 390.59 390.59 171.89 0.000
Residual Error 16 36.36 2.27
Total 17 426.94
Predicted Values for New Observations

9. New Obs Fit SE Fit 95% CI 95% PI
1 15.140 0.389 (14.315, 15.965) (11.839, 18.440)
2 32.672 1.538 (29.412, 35.932) (28.107, 37.237)XX
XX denotes a point that is an extreme outlier in the predictors.
Values of Predictors for New Observations
New Obs CALLS
1 50
2 100
a. Analyze the above output to determine the regression
equation.
b. Find and interpret βˆ1in the context of this problem.
c. Find and interpret the coefficient of determination (r-
squared).
d. Find and interpret coefficient of correlation.
number of calls can be used to predict the sales? Test the utility
of this model using a two-tailed test. Find the observed p-value
and interpret.
f. Find the 95% confidence interval for mean sales for all weeks
having 50 calls. Interpret this interval.
g. Find the 95% prediction interval for the sales for 1 week
having 50 calls. Interpret this interval.
h. What can we say about the sales when we had 100 calls in a
week? (Points : 48)
4
Question 1. 1. (TCO E) Sam Smith, owner and general manager
of Campus Stationery Store, is concerned about the sales
behavior of a scanner at the store. He understands that there
may be many factors, which may help explain sales, but he

10. believes that advertising and price are major determinants of
sales. Sam collects the data given below with Y=SALES (# of
sales), X1=ADS (# of ads), X2= PRICE ($)
SALES
ADS
PRICE
Predict ADS
Predict PRICE
33
3
125
10
130
61
6
115
70
10
113
82
13
130
17
9
145
24
6

11. 140
40
5
120
48
5
116
56
7
110
72
11
108
Regression Analysis: SALES versus ADS, PRICE
The regression equation is
SALES = 157 + 4.33 ADS - 1.14 PRICE
Predictor Coef SE Coef T P
Constant 157.50 33.78 4.66 0.002
ADS 4.327 1.078 4.01 0.005
PRICE -1.1428 0.2677 -4.27 0.004
S = 10.1422 R-Sq = 82.9% R-Sq(adj) = 78.1%

12. Analysis of Variance
Source DF SS MS F P
Regression 2 3502.0 1751.0 17.02 0.002
Residual Error 7 720.1 102.9
Total 9 4222.1
Predicted Values for New Observations
New Obs Fit SE Fit 95% CI 95% PI
1 52.20 4.67 (41.16, 63.25) (25.80, 78.61)
Values of Predictors for New Observations
New Obs ADS PRICE
1 10.0 130
Correlations: SALES, ADS, PRICE
SALES ADS
ADS 0.621
0.055
PRICE -0.661 0.008
0.037 0.982
Cell Contents: Pearson correlation
P-Value
a. Analyze the above output to determine the multiple
regression equation.
b. Find and interpret the multiple index of determination (R-

13. Sq).
c. Perform the t-tests on βˆ1and on βˆ2(use two tailed test with
d. Predict the number of sales given that there were 10 ads and
the price was $130. Use both a point estimate and the
appropriate interval estimate. (Points : 31)