There are 2,000 eligible voters in a precinct. Despite protests from knowledgeable persons that a sample size of 500 was too large in relation to the total, the 500 selected at random were asked to indicate whether they planned to vote for the Democratic incumbent or the Republican challenger. Of the 500 surveyed, 350 said they were going to vote for the Democratic incumbent. Using the 0.99 confidence coefficient, what is the confidence limits for the proportion who plan to vote for the Democratic incumbent?
Answer(s): C
Interval estimate can be found from p +/- z[p(1-p)/n]^0.5. Here we have n = 500, p = 350/500 = 0.7 and z = 2.58 (for 99%). Therefore 0.7 +/- 2.58*0.02049 and we get 0.647 and 0.7529.
Three defective electric toothbrushes were accidentally shipped to a drugstore by the manufacturer along with 17 nondefective ones. What is the probability that the first two electric toothbrushes sold will be returned to the drugstore because they are defective?
Answer(s): E
3/20*2/19 = 3/190
How many quarters will it take for an original $1,000 deposit to grow to be $2,000, if the deposit earns interest at 6% per year, compounded quarterly?
On the BAII Plus, press 1000 PV, 2000 +/- FV, 0 PMT, 6 divided by 4 = I/Y, then CPT N. On the HP12C, press 1000 PV, 2000 CHS FV, 0 PMT, 6 ENTER 4 divide i, then press n. HP12C answer is shown as 47. Answer should be in quarters, not years. Make sure the BAII Plus has the P/Y value set to 1.
What does a regression equation do?
The dependent variable is the variable Y which is being predicted by the X variable, the independent variable.The regression is written as Y' = a + bX. The letter "a" is the Y intercept and b is the slope of the line. Y' is the predicted value of Y given a specific value of X.
Under the null hypothesis, Ho, x = y. Under the alternative hypothesis, x does not equal y. If the critical z- statistic for the desired significance level is 1.68 and you find the z-statistic to be -3.2, you should:
Answer(s): B
Since the z-statistic is larger in magnitude than the critical value, you should reject the null hypothesis. Note that all the other alternatives loosely mean the same thing.
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