Which of the following is/are true about a normal distribution?
Answer(s): E
A normal distribution is symmetrical about the mean, which can be non-zero. It has a zero third moment (zero skewness).
An automobile manufacturer makes 2 different chassis, each of which can have 3 different body types and 8 colors. How many different looking cars can be made with these choices?
Answer(s): D
The multiplication rule of counting states that the number of combinations available when there are n_1 options in one aspect, n_2 in another, and so on, up to n_k, is n_1 * n_2 * ... * n_k. In this case, the number of combinations is 2*3*8 = 48.
A linear regression is ________ relationship.
Answer(s): C
It is important to remember that a regression equation does not imply a causal relationship between the dependent and the independent variables. It simply postulates a functional i.e. an associative relationship between them.
John was offered a salary of $25,000 when he graduated from school 15 years ago. He was somewhat depressed to read that the average starting salary for someone with his degree today was $45,000. He then decided to determine the annual, compound rate of increase implied in the increase of the starting salary from $25,000 to $45,000 in 15 years. What is this annually compounded growth rate?
Answer(s): A
Essentially, this question is a compound interest problem with the interest rate as the unknown value. On the BAII Plus, press 15 N, 25000 PV, 0 PMT, 45000 +/- FV, CPT I/Y. On the HP12C, press 15 n, 25000 PV, 0 PMT, 45000 CHS FV, i. John would seem to have no reason to be depressed, since the starting salary today has increased by only 4% per year over the last 15 years, which might be somewhat near the past rate of inflation.Make sure the BAII Plus has the P/Y value set to 1.
Which of the following is NOT a reason for sampling the population?
Answer(s): B
Remember, the entire population contains more information than the sample. With the population, you would get exact parameter values characterizing the population whereas with a sample, you only get estimates.
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