Question

1) If a machine in a manufacturing process is not working correctly, company policy dictates that the machine must be stopped and serviced.

Ho: Machine is working correctly

  H_A: Machine is not working correctly

One day, the machine was left working but in fact it should have been stopped for a service. What type of error would this be?

Select one:

A) Type I

B) No error has been made.

C) Type II error

D) Type I and Type II error

2) You are given the following information:

  Ho:μ=100Ho:μ=100

  HA:μ>100HA:μ>100

x¯=120n=25s=16σunknown X Normal α=0.05x¯=120n=25s=16σunknown X Normal α=0.05

Which of the following is the correct critical value?

Select one:

A) 1.96

B)1.645

C) 1.708

D) 1.711

3) An analyst is researching the relationship between the daily sales revenue ($000’s) of a store and the number of hours the store is closed, the annual advertising expenditure ($) and the number of staff employed in the store.  The Excel output is shown below.

Regression Statistics
Multiple R	0.908
R Square	0.824
Adjusted R Square	0.772
Standard Error	2.230
Observation	14
	Coefficients	Standard error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	15.827	5.976	2.648	0.024	2.510	29.145
Hours closed	-1.505	0.695	-2.162	0.055	-3.055	0.045
Advertising	0.073	0.030	2.452	0.034	0.003	0.140
Staff	4.326	1.347	3.211	0.009	1.325	7.328

Which of the following is the best interpretation for the coefficient of Hours closed?

Select one:

A) For each extra 1 hour the store is closed, daily sales revenue decreases by exactly $1,505.

B) None of these choices is correct.

C) Holding Advertising and Staff constant, for each extra 1 hour the store is closed, we estimate daily sales revenue decreases by $1,505, on average.

D) Holding Advertising and Staff constant, for each extra 1 hour the store is closed, we estimate daily sales revenue increases by $1,505, on average.

Answer 1

The solution to this problem is given by