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T F 7. A small number...

T F 7. A small number of cells with expected frequencies less than 5, might result in an erroneous conclusion for the application of the chi-square distribution.

8. Which of the following assumptions is necessary to apply a nonparametric test of hypothesis using the chi-square distribution?

A) Normal population is required

B) Interval scale of measurement is required

C) Population variance must be known

D) Both "a" and "c"

E) None of the above

9. The computed chi-square value is positive because the difference between the observed and expected frequencies is

A) squared.

B) linear.

C) uniform.

D) always positive.

T F 10. To apply the sign test, at least an interval level of measurement is required.

T F 11. A Spearman's rank-order correlation coefficient of 0.91 indicates a very weak relationship.

12. A two-tailed test of hypothesis was conducted and 60 values were above the median. The computed z = 1.61. At the 0.05 level, what is the decision regarding the null hypothesis?

A) Reject it with a 0.05 Type I error rate

B) Fail to reject it

C) Reject it with a 0.025 Type I error rate

D) None of the above

13. This test is used when the assumptions for the parametric analysis of variance (ANOVA) cannot be met. Its purpose is to test whether three or more populations are equal. The data must be at least ordinal scaled. What nonparametric test is this?

A) Students' t

B) Kruskal-Wallis

C) Mann-Whitney

D) ANOVA

T F 14. One component of a time series is the secular trend that is the smooth movement of a series over a short period of time, such as a few months or quarters.

T F 15. One component of a time series is cyclical variation. An example of cyclical variation is the business cycle that consists of periods of prosperity followed by periods of recession, depression, and recovery.

T F 16. In a time series analysis, the letter "a" in the linear trend equation is the value of Y' when t = 0.

T F 17. A straight-line trend equation is used to represent the time series when it is believed that the data is increasing (or decreasing) by equal amounts, on the average, from one period to another.

T F 18. The reason for deseasonalizing a sales series is to remove trend and cyclical fluctuations so that we can study seasonal fluctuations.

19. Since a ski resort does most of its business in the winter, what is the major source of variation in income due to?

A) Secular trend

B) Seasonal variation

C) Cyclical effect

D) Episodic effects

20. If the least squares equation for sales data going from 2000 to 2004 is Y' = 10 + 1.3t (in $ millions), what is the value of t and the forecast for 2006?

A) t = 6, y = 17.8

B) t = 0, y = 10.0

C) t = 7, y = 19.1

D) t = 10, y = 0.0

Bonus:

Given the trend equation Y' = 25 + 0.6t (base year = 2000), what would be the forecast value for 2004?

A) 25

B) 28

C) 30

D) 32

If a quarterly seasonal index is 0.56, it implies that

A) the quarter's sales are 56% above the yearly average.

B) the quarter's sales are 56% of the year total sales.

C) the other three quarter percentages will total 44%.

D) the quarter's sales are 56% of the yearly average

8. Which of the following assumptions is necessary to apply a nonparametric test of hypothesis using the chi-square distribution?

A) Normal population is required

B) Interval scale of measurement is required

C) Population variance must be known

D) Both "a" and "c"

E) None of the above

9. The computed chi-square value is positive because the difference between the observed and expected frequencies is

A) squared.

B) linear.

C) uniform.

D) always positive.

T F 10. To apply the sign test, at least an interval level of measurement is required.

T F 11. A Spearman's rank-order correlation coefficient of 0.91 indicates a very weak relationship.

12. A two-tailed test of hypothesis was conducted and 60 values were above the median. The computed z = 1.61. At the 0.05 level, what is the decision regarding the null hypothesis?

A) Reject it with a 0.05 Type I error rate

B) Fail to reject it

C) Reject it with a 0.025 Type I error rate

D) None of the above

13. This test is used when the assumptions for the parametric analysis of variance (ANOVA) cannot be met. Its purpose is to test whether three or more populations are equal. The data must be at least ordinal scaled. What nonparametric test is this?

A) Students' t

B) Kruskal-Wallis

C) Mann-Whitney

D) ANOVA

T F 14. One component of a time series is the secular trend that is the smooth movement of a series over a short period of time, such as a few months or quarters.

T F 15. One component of a time series is cyclical variation. An example of cyclical variation is the business cycle that consists of periods of prosperity followed by periods of recession, depression, and recovery.

T F 16. In a time series analysis, the letter "a" in the linear trend equation is the value of Y' when t = 0.

T F 17. A straight-line trend equation is used to represent the time series when it is believed that the data is increasing (or decreasing) by equal amounts, on the average, from one period to another.

T F 18. The reason for deseasonalizing a sales series is to remove trend and cyclical fluctuations so that we can study seasonal fluctuations.

19. Since a ski resort does most of its business in the winter, what is the major source of variation in income due to?

A) Secular trend

B) Seasonal variation

C) Cyclical effect

D) Episodic effects

20. If the least squares equation for sales data going from 2000 to 2004 is Y' = 10 + 1.3t (in $ millions), what is the value of t and the forecast for 2006?

A) t = 6, y = 17.8

B) t = 0, y = 10.0

C) t = 7, y = 19.1

D) t = 10, y = 0.0

Bonus:

Given the trend equation Y' = 25 + 0.6t (base year = 2000), what would be the forecast value for 2004?

A) 25

B) 28

C) 30

D) 32

If a quarterly seasonal index is 0.56, it implies that

A) the quarter's sales are 56% above the yearly average.

B) the quarter's sales are 56% of the year total sales.

C) the other three quarter percentages will total 44%.

D) the quarter's sales are 56% of the yearly average

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