MULTIPLE CHOICE QUESTION:
1. A bank’s loan officer rates applicants for credit. The ratings are normally distributed with a mean of 200 and a standard deviation of 50. If an applicant is randomly selected, find the probability of a rating that is between 170 and 220.
A. 0.0703 B. 0.1554 C. 0.2257 D. 0.3812
2. Suppose for 40 observations the variance is 50. If all the observations are increased by 20, the variance of these increased observations will be
A. 2.5 B. 50 C. 70 D. 400
3. These descriptive measures are from a sample of time measurements: x̅= 21.3 seconds; s = 1.7 seconds; and n = 400. At least what proportion of the data lies within 234 standard deviations from the arithmetic mean?
A. 20% B. 72.6% C. 86.8% D. 91%
4. The correlation coefficient computed for the relationship between dependent variable Y and independent variable X is – 0.35. This result means that:
A. 35% of the variation of the dependent variable Y is due to the linear relationship between Y and X.
B. 12.25% of the variation of the dependent variable Y is due to the linear
relationship between Y and X.
C. there is a weak, negative relationship between Y and X.
D. there is a very weak, negative relationship between Y and X.
5. When three experimental groups were compared using the one-way Analysis of Variance (ANOVA), the result turned out to be significant, that is, the Ho was rejected. What will bethe corresponding interpretation of this result?
A. All three experimental groups significantly differ in means or they have differenteffects on the dependent variable.
B. Exactly two of the three groups significantly differ.
C. At least two of the three experimental groups significantly differ in means or interms of their effect on the dependent variable.
D. None of the above.