Question: Which of the following statements is true?
Answer Choices:
The denominator in a predetermined overhead is estimated using the formula Y = a + bx.
The numerator in a predetermined overhead is estimated using the formula Y = a + bx.
The estimated amount of the allocation base used in a predetermined overhead rate is determined using the formula Y = a + bx.
The actual amount of the allocation base used in an overhead rate is determined using the formula Y = a + bx.
Answer: The numerator in a predetermined overhead is estimated using the formula Y = a + bx.
Question: What does standard error of estimate indicate in regression?
Answer Choices:
A. It tells us the slope of the regression line.
B. It measures the accuracy of prediction made by the regression model.
C. It gives the mean of residuals.
D. It is used to test the hypothesis of correlation.
Answer: B. It measures the accuracy of prediction made by the regression model.
Question: Based on this information, do the data meet the condition of equal population standard deviations for the use of the ANOVA?
Answer Choices:
a. Yes, because 287.7 – 147.2 < 2.
b. Yes, because 287.7 / 147.2 < 2.
c. No, because 287.7 – 147.2 > 2.
d. No, because the standard deviations are not equal.
Answer: b. Yes, because 287.7 / 147.2 < 2.
Question: How many pairwise comparisons are conducted in this analysis?
Answer Choices:
(Choices not explicitly given, but implied by context.)
Answer: 6 pairwise comparisons
Question: What about Question 9 (assigning 3 jobs to 12 candidates)?
Answer Choices:
A. Combination
B. Permutation
C. Simple probability
D. Binomial
Answer: B. Permutation Since the roles are distinct and order matters, it’s a permutation.
Question: Explain the difference between R-squared and Adjusted R-squared value in simple terms.
Answer Choices:
(Not multiple choice, but conceptual explanation was given.)
Answer: R-squared shows how much variance is explained; Adjusted R-squared adjusts for number of predictors to prevent overfitting.
Question: Which of the following statements is true?
Answer Choices:
Conventional cost systems usually allocate too much nonmanufacturing costs to high-volume products whereas activity-based costing systems usually do not allocate enough nonmanufacturing costs to high-volume products.
Conventional cost systems usually overcost high-volume products and undercost low-volume products when compared to activity-based costing systems.
Conventional cost systems usually undercost high-volume products and overcost low-volume products when compared to activity-based costing systems.
Conventional cost systems usually do not allocate enough nonmanufacturing costs to high-volume products whereas activity-based costing systems usually allocate too much nonmanufacturing costs to high-volume products.
Answer: Conventional cost systems usually overcost high-volume products and undercost low-volume products when compared to activity-based costing systems.
Question: But in this case, we have not rejected the null hypothesis then can we say our probability of making type 1 error is zero?
Answer Choices:
A. Yes, since we did not reject the null, there is no Type I error.
B. No, Type I error refers to the maximum risk we took when setting α, regardless of result.
C. Yes, because p-value > 0.05 ensures zero error.
D. No, because Type I error only applies when the null is false.
Answer: B. No, Type I error refers to the maximum risk we took when setting α, regardless of result.
Question: What about Question 6 (making a password with 5 unique characters from 10 options)?
Answer Choices:
A. Permutation
B. Combination
C. Factorial
D. Combination with replacement
Answer: A. Permutation Since order matters and characters cannot repeat, it’s a permutation problem.
Question: The contingency table represents the frequencies of two qualitative variables in cross-tabulated format.
Answer Choices:
True or False
Answer: True
Question: What should be the value of 𝑛 n? I am confused because I know 𝑛 1 = 18 n 1 =18 and 𝑛 2 = 18 n 2 =18.
Answer Choices:
A. Use the average: 𝑛 = 18 n=18
B. Combine the samples: 𝑛 = 36 n=36
C. Use one group only: 𝑛 = 18 n=18
D. Use pooled variance degrees of freedom: 𝑑 𝑓 = 34 df=34
Answer: B. Combine the samples: 𝑛 = 36 n=36 (but note: in t-test context, degrees of freedom is what’s used, not raw 𝑛 n).
Question: A researcher has obtained data from a questionnaire in a form of a contingency table of 3×3 for anxiety and awareness levels. Which statistical test will indicate whether the two variables are independent?
Answer Choices:
a. Spearman’s rank difference method of correlation
b. Pearson’s correlation
c. T-test
d. Chi-square test
Answer: d. Chi-square test
Question: Classify each of the activities as either a unit-level, batch-level, product-level, or facility-level activity. a. Preventive maintenance is performed on general-purpose production equipment. b. Products are assembled by hand. c. A security guard patrols the company grounds after normal working hours. d. Purchase orders are issued for materials to be used in production. e. Modifications are made to product designs. f. New employees are hired by the personnel office. g. Machine settings are changed between batches of different products. h. Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.) i. Insurance costs are incurred on the company’s facilities.
Answer Choices:
Unit-level
Batch-level
Product-level
Facility-level
Answer: a. Facility-level b. Unit-level c. Facility-level d. Batch-level e. Product-level f. Facility-level g. Batch-level h. Product-level i. Facility-level
Question: What type of counting problem is Question 7 (Olympic committee selects 4 finalists from 10 countries)?
Answer Choices:
A. Permutation
B. Combination
C. Factorial
D. Binomial
Answer: B. Combination Because the order of the 4 finalists does not matter.
Question: The Spearman’s coefficient of rank correlation always lies between
Answer Choices:
a. -1 and 0
b. 0 and +1
c. -1 and +1
d. any number
Answer: c. -1 and +1
Question: Which variable more accurately predicts the amount tipped: distance or time?
Answer Choices:
a. Distance, because the slope is smaller.
b. Time, because the SSE is larger.
c. Distance, because the SSE is smaller.
d. Time, because the slope is larger.
Answer: c. Distance, because the SSE is smaller.
Question: Classify each of the activities below as either a unit-level, batch-level, product-level, or facility-level activity. a. Various individuals manage the parts inventories. b. A clerk in the factory issues purchase orders for a job. c. The personnel department trains new production workers. d. The factory’s general manager meets with other department heads to coordinate plans. e. Direct labor workers assemble products. f. Engineers design new products. g. The materials storekeeper issues raw materials to be used in jobs. h. The maintenance department performs periodic preventive maintenance on general-use equipment.
Answer Choices:
Unit-level
Batch-level
Product-level
Facility-level
Answer: a. Product-level b. Batch-level c. Facility-level d. Facility-level e. Unit-level f. Product-level g. Batch-level h. Facility-level
Question: Which of the following strategies is more likely to produce a non-representative sample?
Answer Choices:
a. A professor asks students in class to voluntarily respond to an anonymous 5-minute survey on college study habits.
b. A researcher solicits people through a newspaper advertisement to participate in an unpaid, full-day study.
c. A researcher’s recruitment notice offers participants a chance to win an iPad for completing a 30-minute survey.
d. All of the above would produce non-representative samples to a similar degree.
Answer: d. All of the above would produce non-representative samples to a similar degree.