Judging from recent experience, 5 percent of the worm gears produced by an automatic, high speed machine are defective. What is the probability that out of six gears selected at random, exactly zero gears will be defective?
Answer(s): C
Using Binomial probability with n = 6, p = 0.05 and q = 0.95 and r = 0 we get [6!(0.05^0)(0.95^6)]/0!(6 - 0)! = 0.735.
Armando Delrio, a quantitative analyst with Brown Brothers Brokerage, has been instructed to create a regression analysis comparing the relationship between same store sales figures for a batch of retail stocks and marketing expenses for the same series of stocks. In order to adhere to the traditional seven-step method of hypothesis testing, Armando should begin his analysis by performing which of the following actions? Choose the best answer.
Answer(s): A
Hypothesis testing involves a series of seven explicit steps:Step 1: Formulating and stating the hypothesisStep 2: Identifying the appropriate test statistic and its probability distribution Step 3: Specifying the significance levelStep 4: Stating the decision ruleStep 5: Collecting the data and performing the necessary calculations Step 6: Making the statistical decisionStep 7: Making the economic/investment decision.In this example, Armando Delrio, a quantitative analyst, has been instructed to perform a regression analysis in which a hypothesis is tested. The first step in this process is the formulation of the hypothesis.
The sampling distribution of the sampling mean is:
The sampling distribution of the sample means is a probability distribution of all possible sample means of a specific sample size.
All possible samples of size n are selected from a population and the mean of each sample is determined.What is the mean of the sample mean?
If we selected all possible samples from the population, then the sample mean will be equal to the population mean. Only when we cannot select all possible samples will be a difference.
What deposit today is needed to have $2,000 in 4 years, assuming the money will earn interest at 6% per year, compounded monthly?
On the BAII Plus, press 48 N, 6 divide 12 = I/Y, 0 PMT, 2000 FV, CPT PV. On the HP12C, press 48 n, 6 ENTER 12 divide i, 0 PMT, 2000 FV, PV. Make sure the BAII Plus has the P/Y value set to 1.
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