Introduction to Statistics Review Questions - 1925 Verified Questions

Page 1


Introduction to Statistics Review Questions

Course Introduction

Introduction to Statistics offers students a foundational understanding of key statistical concepts and methods widely used across various disciplines. The course covers topics such as descriptive statistics, probability theory, sampling techniques, hypothesis testing, confidence intervals, correlation, and regression analysis. Students learn how to collect, organize, analyze, and interpret data, drawing meaningful conclusions in both academic and real-world contexts. Practical examples and hands-on exercises help build analytical skills, equipping students to make informed decisions based on statistical reasoning.

Recommended Textbook

Stats Data and Models 1st Canadian Edition by Richard D. De Veaux

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Page 2

Chapter 1: Data

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Sample Questions

Q1) The speed of a car in kilometres per hour

A)Categorical

B)Quantitative Answer: B

Q2) A person's political affiliation

A)Categorical

B)Quantitative Answer: A

Q3) When determining the batting average for a baseball player you must have data on the number of hits in the season,and the number of at-bats in the season.

A)Number of hits,categorical;number of at-bats,quantitative,at-bats;players,categorical.

B)Number of hits,quantitative,hits;number of at-bats,quantitative,at-bats.

C)Number of hits,quantitative,games;number of at-bats,quantitative,at-bats;player,categorical.

D)Number of hits,categorical;number of at-bats,quantitative,at-bats.

E)Number of hits,quantitative,hits;number of at-bats,categorical. Answer: B

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Chapter 2: Displaying and Describing Categorical Data

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Q1) Of the 1,470 applicants to a college program,760 were accepted,269 were wait-listed,and 441 were turned away for lack of space.Find the relative frequency distribution of the decisions made,and write a sentence describing it.

A)1,470 students applied for admission to the college program.52% were accepted,18% were wait-listed,and 30% were turned away.

B)1,470 students applied for admission to the college program.52% were accepted,and 48% were turned away.

C)1,470 students applied for admission to the college program.52% were accepted,35% were wait-listed,and 30% were turned away.

D)1,470 students applied for admission to the college program.52% were accepted,35% were wait-listed,and 58% were turned away.

E)1,470 students applied for admission to the college program.70% were accepted,and 30% were turned away.

Answer: A

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4

Chapter 3: Displaying and Summarizing Quantitative Data

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Sample Questions

Q1) During student-teacher negotiations at a certain high school,teachers seek to change the number of times students are allowed to be tardy,saying that the semester "average" is 8 days of tardiness per student.The students counter that the "average" student is only tardy 4 times per semester.Explain how both sides may be correct,identifying the measure of centre you think each side is using and why the difference might exist.

Answer: Answers will vary.One possibility is that the teachers are using the mean to measure the centre while the students are using the median.The mean could be higher than the median if the distribution is skewed to the right or if there are any large outliers (one or two students were tardy a very large number of days).

Q2) A small company employs a supervisor at $1,400 a week,an inventory manager at $800 a week,8 stock boys at $300 a week each,and 6 drivers at $700 a week each.

A)$2,200

B)$733

C)$500

D)$300

E)$550

Answer: E

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Chapter 4: Understanding and Comparing Distributions

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Sample Questions

Q1) A local ice cream shop hand scoops each of its ice cream cones.The cones vary in weight from 126 grams to 291 grams with a mean of 181 grams and a standard deviation of 34 grams.The quartiles and median weights are 157,255,and 202 ounces.A customer makes a special order of a 448 ounce cone. Which of the summary statistics might not change if that data value was added to the distribution?

A)Median,range

B)Range,SD

C)Q1,Q3

D)Mean,IQR

E)Median,IQR

Q2) Which class had the highest median score?

A)Class 2

B)Class 1 and class 3

C)Class 3

D)Class 1

E)None,because the classes had the same median.

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Chapter 5: The Standard Deviation As a Ruler and the Normal

Model

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Sample Questions

Q1) The mean weights for medium navel oranges is 274 grams.Suppose that the standard deviation for the oranges is 92 grams.Which would be more likely,an orange weighing 392 grams or an orange weighing 137 grams? Explain.

A)A 137 gram orange is more likely (z = 1.49)compared with an orange weighing 392 grams (z = 4.24).

B)A 137 gram orange is more likely (z = -1.49)compared with an orange weighing 392 grams (z = 1.28).

C)A 137 gram orange is more likely (z = 1.28)compared with an orange weighing 392 grams (z = -1.49).

D)A 392 gram orange is more likely (z = -1.49)compared with an orange weighing 137 grams (z = 1.28).

E)A 392 gram orange is more likely (z = 1.28)compared with an orange weighing 137 grams (z = -1.49).

Q2) = 30,37% below 20; = ?

A)0.37

B)-0.33

C)3.03

D)30.3

E)7.4

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Chapter 6: Scatterplots, association, and Correlation

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Sample Questions

Q1) A study shows that the amount of chocolate consumed in Canada and the number of automobile accidents is positively related.Find the lurking variable,if there is one.

A)Vacation

B)Speed

C)Children

D)Population growth

E)No lurking variable

Q2) Air pressure,altitude

A)Positive,straight,strong

B)Positive,straight,moderate

C)Negative,nonlinear,strong

D)Negative,straight,moderate

E)Negative,straight,strong

Q3) Cloudy days,rainy days

A)Negative,nonlinear,strong

B)Positive,nonlinear,moderate

C)Negative,linear,strong

D)Positive,nonlinear,strong

E)Positive,linear,moderate

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Chapter 7: Linear Regression

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Sample Questions

Q1) A random sample of 150 yachts sold in the Canada last year was taken.A regression analysis to predict the price (in thousands of dollars)from length (in metres)was completed.A linear model is appropriate.What are the units of the slope?

A)Slope is yachts per dollar.

B)Slope is metres per dollar.

C)Slope is dollars per metre.

D)Slope is metres per thousand dollars.

E)Slope is thousands of dollars per metre.

Q2) A random sample of records of electricity usage of homes gives the amount of electricity used in July and size (in square feet)of 135 homes.A regression was done to predict the amount of electricity used (in kilowatt-hours)from size.The residuals plot indicated that a linear model is appropriate.What units does the slope have?

A)Slope is kilowatt-hours per square foot.

B)Slope is kilowatt-hours per house.

C)Slope is square feet per kilowatt-hour.

D)Slope is square feet per house.

E)Slope is houses per kilowatt-hour.

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Chapter 8: Regression Wisdom

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Q1) A study of consumer behavior finds a strong positive association between sales of ice cream and sales of soda.Describe three different possible cause-and-effect relationships that might be present.

A)Perhaps sales of ice cream cause higher sales of soda,sales of soda cause higher sales of ice cream,or both could be caused by a lurking variable such as the outdoor temperature.

B)There is only one cause-and-effect relationship: sales of soda cause higher sales of ice cream.

C)There are no possible cause-and-effect relationship ,because there should be an arithmetic mistake.

D)There is only one cause-and-effect relationship: sales of ice cream cause higher sales of soda.

E)There are only two cause-and-effect relationships: sales of ice cream cause higher sales of soda,or sales of soda cause higher sales of ice cream.

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10

Chapter

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Sample Questions

Q1) The relationship between two quantities x and y is examined.The relationship appears to be fairly linear.A linear model is considered,and the regression analysis is as follows:

Dependent variable: y

R-squared = 87.9%

VARIABLE COEFFICIENT

Intercept 37.74

X -9.97

What does the slope say about the relationship between x and y?

A)For each increase in x of 1,the corresponding average decrease in y is 9.97.

B)For each increase in x of 1,the corresponding average increase in y is 37.74.

C)For each increase in x of 1,the corresponding average decrease in y is 37.74.

D)For each increase in x of 1,the corresponding average increase in y is 9.97.

E)For each increase in x of 1,y decreases by and average of 87.9%.

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Chapter 10: Understanding Randomness

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Sample Questions

Q1) When drawing five cards randomly from a deck,which is more likely,a royal flush or a full house? A royal flush is the five highest cards of a single suit.A full house is three of one denomination and two of another.How could you simulate 5-card hands? Once you have picked one card,you cannot pick that same card again.Describe how you will simulate a trial.

A)A trial is a single five-card hand.Use five sets of random numbers,ignoring repeated cards.

B)A trial is a single card.Use random numbers,ignoring repeated cards.

C)A trial is a single five-card hand.Use one set of random numbers,ignoring repeated cards.

D)A trial is five-card hands,dealt until the deck is completely dealt.Use five sets of random numbers,ignoring repeated cards.

E)A trial is a single five-card hand.Use five sets of random numbers.

Q2) Is the roll of a fair die random? Why or why not?

A)Yes.You can predict the outcome beforehand.

B)No.You can usually predict the outcome on one of six attempts.

C)Yes.You cannot predict the outcome beforehand.

D)No.There is always a bias in a person's rolling technique.

E)No.A 3 or 4 is the most likely outcome.

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Page 12

Chapter 11: Sample Surveys

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Sample Questions

Q1) The human resources department of a large,well-known telecommunications firm would like to know the job satisfaction of the employees working at its company.The HR department's goal is to have every employee participate in this survey.For this scenario,what sampling method best fits HR's goal?

A)Systematic sampling

B)Stratified sampling

C)Attempted census

D)Convenience sampling

E)Simple random sampling

Q2) A newly-premiered play just ended that evening at a local theatre.Theatre management briefly interviews every eighth person leaving the theatre to see if that person will recommend the play at that theatre to other people.Identify the type of sampling used in this example.

A)Voluntary response sampling

B)Convenience sampling

C)Cluster sampling

D)Systematic sampling

E)Stratified sampling

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Page 13

Chapter 12: Experiments and Observational Surveys

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Sample Questions

Q1) An examination of the medical records of 10,000 women showed that those who were short and fair skinned had a higher risk of osteoporosis.

A)Prospective observational study

B)Retrospective observational study

C)Experiment

Q2) In a clinical trial,780 participants suffering from high blood pressure were randomly assigned to one of three groups.Over a one-month period,the first group received a low dosage of an experimental drug,the second group received a high dosage of the drug,and the third group received a placebo.The diastolic blood pressure of each participant was measured at the beginning and at the end of the period and the change in blood pressure was recorded.Identify the levels of the factor.

A)The experimental drug

B)High blood pressure,low blood pressure

C)The one-month period

D)Placebo,low dosage,high dosage

E)Diastolic blood pressure at the start,diastolic blood pressure at the end

Q3) In an experiment,explain the difference between the treatments and the factors.

Q4) Explain the difference between an observational study and an experiment.

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Page 14

Chapter 13: From Randomness to Probability

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Sample Questions

Q1) Roll two dice;record the positive difference.

A){0,6},not equally likely

B){0,1,2,3,4,5},not equally likely

C){1,2,3,4,5,6},equally likely

D){0,1,2,3,4,5},equally likely

E){1,2,3,4,5,6},not equally likely

Q2) A survey revealed that 50% of people are entertained by reading books,34% are entertained by watching TV,and 16% are entertained by both books and TV.What is the probability that a person will be entertained by either books or TV?

A)1

B)0.32

C)0.84

D)0.16

E)0.68

Q3) Toss a coin three times;record the order of heads and tails.

A){HHH,HHT,TTH,TTT},equally likely

B){HHH,HHT,HTH,HHT,HTT,THT,TTH,TTT},equally likely

C){HHH,HHT,TTH,TTT},not equally likely

D){H,T},equally likely

E){HHH,HHT,HTH,HHT,HTT,THT,TTH,TTT},not equally likely

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Chapter 14: Probability Rules

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Sample Questions

Q1) Some employers use lie detector tests to screen job applicants.Lie detector tests are not completely reliable.Suppose that a polygraph can detect 64% of lies,but incorrectly identifies 16% of true statements as lies.A company gives its job applicants a polygraph test,asking "Did you tell the truth on your job application?".All the applicants answer "Yes",but the test identifies some of those answers as lies,thereby causing the person to fail the test.Suppose that 90% of the job applicants tell the truth during the polygraph test.What is the probability that a person who fails the test was actually telling the truth?

A)0.444

B)0.308

C)0.16

D)0.692

E)0.9

Q2) You roll a fair die six times.What is the probability that you roll all 5's?

A)1

B)0.00002

C)1.2

D)0.167

E)0.833

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Chapter 15: Random Variables

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Sample Questions

Q1) A slot machine at a casino pays out an average of $0.93,with a standard deviation of $120.It costs a dollar to play.If a person plays 10 times,what are the mean and standard deviation of the casino's profit?

A) = $9.30, = $379.47

B) = $0.70, = $12,000

C) = $9.30, = $1,200

D) = $0.70, = $1,200

E) = $0.70, = $379.47

Q2) An insurance policy costs $140 per year,and will pay policyholders $15,000 if they suffer a major injury (resulting in hospitalization)or $7,000 if they suffer a minor injury (resulting in lost time from work).The company estimates that each year 1 in every 2,200 policyholders will have a major injury and 1 in every 400 a minor injury.What is the company's expected profit on this policy?

A)$115.68

B)$99.32

C)$130.68

D)-$24.32

E)-$297.95

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Page 17

Chapter 16: Probability Models

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Sample Questions

Q1) The probability that a car will have a flat tire while driving through a certain tunnel is 0.00005.Use the Poisson approximation to the binomial distribution to find the probability that among 14,000 cars passing through this tunnel,exactly two will have a flat tire.

A)0.8783

B)0.1217

C)0.1460

D)0.1703

E)0.1947

Q2) Suppose that 11% of people are left handed.If 26 people are selected at random,what is the mean of the number of right-handers in the group?

A)13

B)1.60

C)2.55

D)23.14

E)2.86

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18

Chapter 17: Sampling Distribution Models

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Q1) If we imagine all the possible random samples of 150 students at this university,95% of the samples should have means between what two numbers?

A)$2,206.06 and $2,793.94

B)$150.00 and $2,695.96

C)$2,304.04 and $2,695.96

D)$300 and $4900

E)$150.00 and $2,597.98

Q2) A candy company claims that its jelly bean mix contains 15% blue jelly beans.Suppose that the candies are packaged at random in small bags containing about 200 jelly beans.What is the probability that a bag will contain more than 20% blue jelly beans?

A)0.9761

B)0.0239

C)0.0422

D)0.0478

E)0.9578

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19

Chapter 18: Confidence Intervals for Proportions

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Q1) A poll of 565 home sellers found that 25.1% were trying to sell their home without a real estate agent.The margin of error for this poll was 3%.

A)99%

B)90%

C)98%

D)95%

E)Not enough information is given.

Q2) Among a sample of 100 students selected at random from one college,the mean number of siblings is 1.4 with a standard deviation of 1.3.Find a 95% confidence interval for the mean number of siblings for all students at this college.

A)(1.08,1.73)

B)(1.36,1.44)

C)(61.8,66.2)

D)(0.95,1.45)

E)(1.24,1.44)

Q3) A mayoral election race is tightly contested.In a random sample of 1,100 likely voters,572 said that they were planning to vote for the current mayor.Based on this sample,would you claim with 95% confidence that the mayor will win a majority of the votes? Explain.

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Page 20

Chapter 19: Testing Hypotheses About Proportions

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Q1) Data in 1980 showed that about 42% of one country's population had never smoked cigarettes.In 2004,a national health survey in this country interviewed a random sample of 3000 adults and found that 51% had never been smokers.Create a 95% confidence interval for the proportion in 2004 of this country's adults who had never been smokers.

A)Based on the data,we are 95% confident the proportion of adults in 2004 who had never smoked cigarettes is between 49.2% and 52.8%.

B)Based on the data,we are 95% confident the proportion of adults in 2004 who had never smoked cigarettes is between 47.8% and 58.2%.

C)Based on the data,we are 95% confident the proportion of adults in 2004 who had never smoked cigarettes is between 49.2% and 63.2%.

D)Based on the data,we are 95% confident the proportion of adults in 2004 who had never smoked cigarettes is between 40% and 60%.

E)Based on the data,we are 95% confident the proportion of adults in 2004 who had never smoked cigarettes is between 37.4% and 52.8%.

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Chapter 20: More About Tests

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Q1) A city claims that 75% of all low income housing is 1500 sq.ft.The tenants believe the proportion of housing this size is smaller than the claim,and hire an independent firm to test the hypothesis.Identify the Type I error in this context.

A)The firm concludes that the proportion of housing less than 1500 sq.ft.is smaller,but in fact there is no change in the proportion.

B)The product of the firm's sample size and sample proportion was less than 10.

C)The firm sampled all low income houses.

D)The firm concludes that the proportion of housing this size is rising since the majority of housing can only increase.

E)The firm shows there in no change in the proportion of housing this size,but in fact the proportion of houses less than 1500 sq.ft.is smaller.

Q2) Farmers concerned with the affect of snowfall levels on their crops found that there wasn't evidence of a decrease in crop growth.They based this conclusion on a test using = 0.10.Would they have made the same decision at = 0.05 and = 0.01?

Q3) A researcher has tested the difference between the means of a treatment group and a placebo group.With a P-value of 0.034,he concludes there is a difference.

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Chapter 21: Comparing Two Proportions

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Q1) You wish to construct a 90% confidence interval to compare two proportions.If we wish to obtain a margin of error of at most 0.04,what sample size should we take from each group? Assume equal sample sizes.

A)423

B)846

C)1984

D)845

E)422

Q2) A university wishes to compare the proportions of female students in the science and social science programs.A random sample of 120 science students contained 43 females.A random sample of 200 social science students contained 132 females.Construct a 99% confidence interval for the difference in the proportions of female students in the science and social science programs at this university.

A)(-0.44,-0.16)

B)(-0.66,0.30)

C)(-0.11,0.28)

D)(-0.57,0.25)

E)(0.30,0.66)

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Page 23

Chapter 22: Inferences About Means

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Q1) You want to estimate the average gas price in your city for a litre of regular unleaded gasoline with 90% confidence.You believe that the standard deviation of prices is $0.04.If you wish to achieve a margin of error no larger than $0.02,how many gas stations should you sample?

A)13

B)11

C)12

D)14

E)10

Q2) A laboratory wishes to compute a 95% confidence interval for the mean amount of cholesterol,in milligrams,in chicken eggs.They believe the population standard deviation to be 15 milligrams.How many eggs should they use if they want a margin of error of 10 milligrams?

A)9

B)8

C)12

D)10 E)11

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Page 24

Chapter 23: Comparing Means

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Q1) You wish to construct a 90% confidence interval to compare the mean measurement for two groups.A small pilot study yields sample standard deviations of 10 and 12 for Group 1 and Group 2,respectively.If we wish to obtain a margin of error of at most 2,what sample size should we take from each group? Assume equal sample sizes.

A)165

B)168

C)169

D)166

E)167

Q2) You wish to construct a 90% confidence interval to compare the mean measurement for two groups.A small pilot study yields sample standard deviations of 20 and 30 for Group 1 and Group 2,respectively.If we wish to obtain a margin of error of at most 5,what sample size should we take from each group? Assume equal sample sizes.

A)141

B)139

C)143

D)140

E)142

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25

Chapter 24: Paired Samples and Blocks

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Q1) A researcher is interested in investigating whether people perform better at dexterity tests while listening to classical music or to no music.He designs a dexterity test,and first gives it to his participants while classical music is playing,and then while no music is playing.

A)Paired t-test,since there are two sets of measurements on the same subjects,providing a natural linking.

B)1-sample t-test,since there is only one sample of subjects taking the dexterity tests.

C)Not enough information is given to determine the best type of test.

D)z-test,since the researcher can find the standard deviation of his population.

E)Two-sample t-test,since how a subject performs with music should have no influence on how he performs without music,creating two independent samples.

Q2) Suppose that you wish to perform a traditional hypothesis test to test a claim regarding two means.Give an example of a situation in which the matched pairs test would be appropriate and give an example of a situation in which it would be appropriate to perform a two-sample t-test.

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Chapter 25: Comparing Counts

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Q1) A company says that each bag of their candy pieces contains 15% chocolate,27% butterscotch,10% caramel,7% peanut butter,and the rest toffee.You can buy a bag and separate the various kinds of candies.Upon weighing them,you find there are 30 grams of chocolate,48 grams of butterscotch,57 grams of caramel,63 grams of peanut butter and 90 grams of toffee.You wonder whether your bag is significantly different from what the company advertises.

A)Yes

B)No,because the expected values are unclear.

C)No,because it is not possible to find the residuals.

D)No,because the data are quantitative.

E)No,because the observed counts are too close to the expected counts.

Q2) When performing a chi-square goodness-of-fit test,how are the expected frequencies obtained?

Q3) Describe the null hypothesis for the test of independence.List the assumptions for the <sup>2</sup> test of independence.What is the major difference between the assumptions for this test and the assumptions for the previous tests we have studied?

Q4) Describe a goodness-of-fit test.What assumptions are made when using a goodness-of-fit test?

Q5) Explain why a chi-square goodness-of-fit test is always right-tailed.

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Chapter 26: Inferences for Regression

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Q1) If the assumptions for regression inferences are met,what would you expect to see when constructing a residual plot and a normal probability plot for the residuals?

Q2) In a study of the relationship between weight and height,a sample regression equation is obtained,in which height is used as the predictor variable.This sample regression equation is then used to make inferences.Which of the following statements is true?

A)A 95% confidence interval for the mean weight of all subjects of height 165 cm will be the same width as a 95% prediction interval for the weight of an individual of height 165 cm.

B)A 95% confidence interval for the mean weight of all subjects of height 165 cm will be narrower than a 95% prediction interval for the weight of an individual of height 165 cm.

C)A 95% confidence interval for the mean weight of all subjects of height 165 cm will be wider than a 95% prediction interval for the weight of an individual of height 165 cm.

Q3) In the context of regression analysis,the sum of the residuals is always zero.

A)True

B)False

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Chapter 27: Analysis of Variance

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Q1) A horticulturist wants to test the effectiveness of four types of fertilizer on the growth rate of Bermuda grass.Six sections of grass are randomly assigned to each of the four fertilizer types,and the rate of growth for each section is measured.The F-value from an ANOVA is 10.866.What is the P-value?

A)p = 0.0002

B)p = 0.010

C)p = 0.001

D)p = 0.0001

E)p = 0.0011

Q2) An independent research firm conducts a study to compare the taste of four new sports drinks.Five people are randomly assigned to each of the four drinks.Each person tastes the drink and judges it on a scale from one to five.How many degrees of freedom does the treatment sum of squares have? How about the error sum of squares?

A)df-treatment = 3;df-error = 19

B)df-treatment = 3;df-error = 17

C)df-treatment = 4;df-error = 17

D)df-treatment = 3;df-error = 16

E)df-treatment = 4;df-error = 16

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29

Chapter 28: Multifactor Analysis of Variance

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Q1) A student runs a two-factor experiment to test how toaster level and speed affect the level of crispness of a bagel.He choses 3 levels of crispness (light,medium,dark)and 3 speeds (1 min,2 min,3 min),toasting one bagel at each condition.

Q2) A student runs an experiment to study the effect that a teacher has based on the size of their class.She uses 3 different teachers on 5 different class sizes.

Q3) A student runs an experiment to study the effect of gas brand and car type on mileage.She uses 3 different brands of gas on 8 different types of cars.

A)Gas brand SS: 3 df;Car type SS: 7 df;SSE: 14 df

B)Gas Brand SS: 3 df;Car type SS: 4 df;SSE: 12 df

C)Gas brand SS: 1 df;Car type SS: 7 df;SSE 14 df

D)Gas Brand SS: 2 df;Car type SS: 3 df;SSE: 8 df

E)Gas brand SS: 2 df;Car type SS: 7 df;SSE 14 df

Q4) A student runs an experiment to study the effect of gas brand and car type on mileage.She uses 3 different brands of gas on 4 different types of cars.

Q5) A student runs an experiment on test scores for males and females at different times of day.She uses 4 different times of day.

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Chapter 29: Multiple Regression

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Q1) From this model,what is the predicted calorie content of a serving of breakfast cereal which contains 10 g of protein,3 g of fat,6 g of fibre,14 g of carbohydrates,and 2 g of sugar?

A)203 calories

B)144 calories

C)183 calories

D)98 calories

E)111 calories

Q2) What does the coefficient of neck mean?

A)For every measurement unit of the neck,all other measurements will increase by 28.594 units.

B)For every measurement unit of the neck,the average head width will decrease by -11.24 units.

C)For every measurement unit of the neck,the average weight will increase by 28.594 units.

D)For every measurement unit of the neck,the average weight will increase by one unit. E)For every measurement unit of the neck,the average age will decrease by -1.3838 units.

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Chapter 30: Multiple Regression Wisdom

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Q1) What is the purpose of an indicator variable in a regression model?

A)An indicator variable allows us to increase our R-squared value.

B)An indicator variable allows us to include quantitative variables in our model.

C)An indicator variable allows us to fix violations of our constant variance assumption.

D)An indicator variable allows us to fix violations of our normality assumption.

E)An indicator variable allows us to include categorical variables in our model.

Q2) How would you interpret the coefficient of Science in the multiple regression?

Q3) An actuary wishes to predict the life expectancy of a person based on several variables.One categorical variable of interest is their relationship statussingle,married,divorced,widowed,or common-law.If the actuary wished to include "relationship status" in a regression model,how many indicator variables would he/she need to use in the model?

Q4) How would you interpret the coefficient of sex in this model?

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Page 32

Chapter 31: Rank-Based Nonparametric Tests

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Q1) Fifty (50)students took a math test before and after tutoring.Of the 50 students,34 showed an improvement and 2 showed no change.After ranking the remaining 48 differences (before - after),it is found that T- = 873 and T+ = 303 Do the data suggest that the tutoring improves math scores? Conduct a Wilcoxon signed rank test using a 0.01 level of significance.

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Chapter 32: The Bootstrap

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Sample Questions

Q1) Consider the following sample of four measurements {2,5,11,14}.Five bootstrap samples of this sample produced the following resamples: {2,5,5,14},{5,11,11,11},{2,11,14,14},{2,2,14,14}, {5,5,11,14}.Based on these five resamples,find the bootstrap of the standard error of the sample mean.

A)0.6452

B)4.5667

C)8.6

D)1.4427

E)2.0813

Q2) When computing a bootstrap confidence interval using the percentile method,what is the minimum number of resamples required (according to the textbook)?

A)200

B)1000

C)30

D)60

E)100

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