The probability that SUV sales will decline by over 10% by June 1 if gasoline prices increase by 50% by May 1, is called:
Answer(s): D
A conditional probability takes the form of P(A|B), the probability that a an event (A) will happen, given the occurrence of another event, B. It is conditional because it is conditioned on another event, B.
You are examining a group of 6 stocks within an industry. The industry average profit margin is expected to be 30%. For these stocks, the average profit margins have been 50%, 25%, 15%, 5%, 45%, and 30%. What is the mean absolute deviation of profit margins from the industry average?
Answer(s): A
The mean absolute deviation = the sum of (as i goes from 1 to n) of the absolute value of (X_i - Xbar), divided by n. Here, we have [|50% - 30%| + |25% - 30%| + |15% - 30%| + |5% - 30%| + |45% - 30%| + |30% - 30%|]/6 = 13.33%
A large group of inductees was given a mechanical aptitude and a finger dexterity test. The mean score on the mechanical aptitude test was 200, with a standard deviation of 10. The mean and standard deviation for the finger dexterity test were 30 and 6 respectively. What is the relative dispersion in the two groups?
The respective CVs are found from (s*100)/mean. Mechanical: 10*100/200 = 5% and Finger: 6*100/30 = 20%.
A sample of the personnel files of eight male employees revealed that during a six month period, they lost the following number of days due to illness: 2, 0, 6, 3, 10, 4, 1 and 2. What is the mean deviation (in days)?
The mean is 3.5. The mean deviation is the absolute values of the deviation from the mean. (1.5 + 3.5 + 2.5 + 0.5 + 6.5 + 0.5 + 2.5 + 1.5)/8 = 19/8 = 2.375
The slope coefficient in a regression measures:
Answer(s): C
In a univariate regression, the slope coefficient gives the change in the dependent variable caused by a unit change in the independent variable. It thus measures the rate at which the dependent variable changes with respect to the independent variable.
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