Math 221 – quizzes – week 6 homework

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Question 1 2 pts

A consumer analyst reports that the mean life of a certain type of alkaline battery is more than 36 months. Write the null and alternative hypotheses and note which is the claim.

Ho: μ = 36 (claim), Ha: μ ≥ 36

Ho: μ > 36 (claim), Ha: μ ≤ 36

Ho: μ ≤ 36, Ha: μ > 36 (claim)

Ho: μ ≤ 36, Ha: μ < 36 (claim)

Question 2 2 pts

A business claims that the mean time that customers wait for service is at most 3.5 minutes. Write the null and alternative hypotheses and note which is the claim.

Ho: μ > 3.5 (claim), Ha: μ > 3.5

Ho: μ > 3.5, Ha: μ ≤ 3.5 (claim)

Ho: μ ≤ 3.5 (claim), Ha: μ > 3.5

Ho: μ ≥ 3.5, Ha: μ ≤ 3.5 (claim)

Question 3 2 pts

An amusement park claims that the average daily attendance is at least 12,000. Write the null and alternative hypotheses and note which is the claim.

Ho: μ > 12000 (claim), Ha: μ = 12000

Ho: μ ≤ 12000, Ha: μ > 12000 (claim)

Ho: μ = 12000, Ha: μ ≤ 12000 (claim)

Ho: μ ≥ 12000 (claim), Ha: μ < 12000

Question 4 2 pts

A transportation organization claims that the mean travel time between two destinations is about 17 minutes. Write the null and alternative hypotheses and note which is the claim.

Ho: μ = 17 (claim), Ha: μ ≤ 17

Ho: μ ≠ 17, Ha: μ = 17 (claim)

Ho: μ > 17, Ha: μ ≤ 17 (claim)

Ho: μ = 17 (claim), Ha: μ ≠ 17

Question 5 2 pts

If the null hypothesis is not rejected when it is false, this is called __________.

the Empirical Rule

a type I error

an alternative hypothesis

a type II error

Question 6 2 pts

A scientist claims that the mean gestation period for a fox is 50.3 weeks. If a hypothesis test is performed that rejects the null hypothesis, how would this decision be interpreted?

There is not enough evidence to support the scientist’s claim that the gestation period is 50.3 weeks

There is enough evidence to support the scientist’s claim that the gestation period is 50.3 weeks

There is not enough evidence to support the scientist’s claim that the gestation period is more than 50.3 weeks

The evidence indicates that the gestation period is less than 50.3 weeks

Question 7 2 pts

A marketing organization claims that none of its employees are paid minimum wage. If a hypothesis test is performed that fails to reject the null hypothesis, how would this decision be interpreted?

There is sufficient evidence to support the claim that some of the employees are paid minimum wage

There is not sufficient evidence to support the claim that some of the employees are paid minimum wage

There is not sufficient evidence to support the claim that none of the employees are paid minimum wage

There is sufficient evidence to support the claim that none of the employees are paid minimum wage

Question 8 2 pts

A sprinkler manufacturer claims that the average activating temperatures is at least 135 degrees. To test this claim, you randomly select a sample of 32 systems and find the mean activation temperature to be 133 degrees. Assume the population standard deviation is 3.3 degrees. Find the standardized test statistic and the corresponding p-value.

z-test statistic = 3.43, p-value = 0.0006

z-test statistic = -3.43, p-value = 0.0006

z-test statistic = -3.43, p-value = 0.0003

z-test statistic = 3.43, p-value = 0.0003

Question 9 2 pts

A consumer group claims that the mean acceleration time from 0 to 60 miles per hour for a sedan is 7.9 seconds. A random sample of 33 sedans has a mean acceleration time from 0 to 60 miles per hour of 7.6 seconds. Assume the population standard deviation is 2.3 seconds. Find the standardized test statistic and the corresponding p-value.

z-test statistic = -0.749, p-value = 0.227

z-test statistic = 0.749, p-value = 0.454

z-test statistic = -0.749, p-value = 0.454

Question 10 2 pts

A consumer research organization states that the mean caffeine content per 12-ounce bottle of a population of caffeinated soft drinks is 37.8 milligrams. You find a random sample of 48 12-ounce bottles of caffeinated soft drinks that has a mean caffeine content of 34.8 milligrams. Assume the population standard deviation is 12.5 milligrams. At α=0.05, what type of test is this and can you reject the organization’s claim using the test statistic?

Claim is alternative, fail to reject the null and support claim as test statistic (-1.66) is not in the rejection region defined by the critical value (-1.64)

Claim is null, reject the null and reject claim as test statistic (-1.66) is in the rejection region defined by the critical value (-1.96)

Claim is null, fail to reject the null and reject claim as test statistic (-1.66) is not in the rejection region defined by the critical value (-1.96)

Claim is alternative, reject the null and support claim as test statistic (-1.66) is in the rejection region defined by the critical value (-1.64)

Question 11 2 pts

A computer manufacturer estimates that its cheapest screens will last less than 2.8 years. A random sample of 61 of these screens has a mean life of 2.7 years. The population is normally distributed with a population standard deviation of 0.88 years. At α=0.02, what type of test is this and can you reject the organization’s claim using the test statistic?

Claim is null, reject the null and cannot support claim as test statistic (-0.89) is in the rejection region defined by the critical value (-2.05)

Claim is null, fail to reject the null and cannot support claim as test statistic (-0.89) is in the rejection region defined by the critical value (-2.05)

Claim is alternative, reject the null and support claim as test statistic (-0.89) is in the rejection region defined by the critical value (-2.05)

Claim is alternative, fail to reject the null and support claim as test statistic (-0.89) is in the rejection region defined by the critical value (-2.05)

Question 12 2 pts

A pharmaceutical company claims that the average cold lasts an average of 8.4 days. They are using this as a basis to test new medicines designed to shorten the length of colds. A random sample of 106 people with colds, finds that on average their colds last 8.7 days. The population is normally distributed with a standard deviation of 0.9 days. At α=0.02, what type of test is this and can you support the company’s claim using the p-value?

Claim is null, reject the null and cannot support claim as the p-value (0.001) is less than alpha (0.02)

Claim is alternative, reject the null and support claim as the p-value (0.001) is greater than alpha (0.02)

Claim is alternative, fail to reject the null and support claim as the p-value (0.001) is less than alpha (0.02)

Claim is null, fail to reject the null and support claim as the p-value (0.001) is greater than alpha (0.02)

Question 13 2 pts

A business receives supplies of copper tubing where the supplier has said that the average length is 26.70 inches so that they will fit into the business’ machines. A random sample of 48 copper tubes finds they have an average length of 26.77 inches. The population standard deviation is assumed to be 0.20 inches. At α=0.05, should the business reject the supplier’s claim?

Yes, since p>α, we fail to reject the null and the null is the claim

No, since p>α, we fail to reject the null and the null is the claim

No, since p>α, we reject the null and the null is the claim

Yes, since p<α, we reject the null and the null is the claim

Question 14 2 pts

The company’s cleaning service states that they spend more than 46 minutes each time the cleaning service is there. The company times the length of 37 randomly selected cleaning visits and finds the average is 46.7 minutes. Assuming a population standard deviation of 5.2 minutes, can the company support the cleaning service’s claim at α=0.10?

Yes, since p<α, we reject the null. The claim is the null, so the claim is not supported

No, since p<α, we reject the null. The claim is the alternative, so the claim is supported

No, since p>α, we fail to reject the null. The claim is the alternative, so the claim is not supported

Yes, since p<α, we fail to reject the null. The claim is the null, so the claim is not supported

Question 15 2 pts

A customer service phone line claims that the wait times before a call is answered by a service representative is less than 3.3 minutes. In a random sample of 62 calls, the average wait time before a representative answers is 3.24 minutes. The population standard deviation is assumed to be 0.29 minutes. Can the claim be supported at α=0.08?

No, since test statistic is in the rejection region defined by the critical value, fail to reject the null. The claim is the alternative, so the claim is not supported

Yes, since test statistic is in the rejection region defined by the critical value, fail to reject the null. The claim is the alternative, so the claim is supported

No, since test statistic is in the rejection region defined by the critical value, reject the null. The claim is the alternative, so the claim is not supported

Yes, since test statistic is in the rejection region defined by the critical value, reject the null. The claim is the alternative, so the claim is supported

Question 16 2 pts

In a hypothesis test, the claim is μ≤40 while the sample of 40 has a mean of 41 and a population standard deviation of 5.9 from a normally distributed data set. In this hypothesis test, would a z test statistic be used or a t test statistic and why?

t test statistic would be used as the data are normally distributed with an unknown population standard deviation

t test statistic would be used as the population standard deviation is known

z test statistic would be used as the mean and sample size are the same

z test statistic would be used as the population standard deviation is known

Question 17 2 pts

A university claims that the mean time professors are in their offices for students is at least 6.5 hours each week. A random sample of eight professors finds that the mean time in their offices is 6.2 hours each week. With a population standard deviation of 0.49 hours, can the university’s claim be supported at α=0.05?

Yes, since the test statistic is not in the rejection region defined by the critical value, the null is not rejected. The claim is the null, so is supported

Yes, since the test statistic is in the rejection region defined by the critical value, the null is not rejected. The claim is the null, so is supported

No, since the test statistic is not in the rejection region defined by the critical value, the null is rejected. The claim is the null, so is not supported

No, since the test statistic is in the rejection region defined by the critical value, the null is rejected. The claim is the null, so is not supported

Question 18 2 pts

A credit reporting agency claims that the mean credit card debt in a town is greater than $3500. A random sample of the credit card debt of 20 residents in that town has a mean credit card debt of $3547 and a standard deviation of $391. At α=0.10, can the credit agency’s claim be supported?

Yes, since p-value of 0.30 is greater than 0.10, fail to reject the null. Claim is null, so is supported

No, since p-value of 0.30 is greater than 0.10, reject the null. Claim is null, so is not supported

No, since p of 0.30 is greater than 0.10, fail to reject the null. Claim is alternative, so is not supported

Yes, since p-value of 0.30 is less than 0.54, reject the null. Claim is alternative, so is supported

Question 19 2 pts

A car company claims that its cars achieve an average gas mileage of at least 26 miles per gallon. A random sample of five cars from this company have an average gas mileage of 25.2 miles per gallon and a standard deviation of 1 mile per gallon. At α=0.06, can the company’s claim be supported?

Yes, since the test statistic of -1.79 is not in the rejection region defined by the critical value of -2.60, the null is rejected. The claim is the null, so is supported

No, since the test statistic of -1.79 is in the rejection region defined by the critical value of -1.97, the null is rejected. The claim is the null, so is not supported

Yes, since the test statistic of -1.79 is not in the rejection region defined by the critical value of -1.97, the null is not rejected. The claim is the null, so is supported

No, since the test statistic of -1.79 is close to the critical value of -2.60, the null is not rejected. The claim is the null, so is supported

Question 20 2 pts

A researcher wants to determine if lead levels are different between the top of a glass of water and the bottom of a glass of water. Many samples of water are taken. From half, the lead level at the top is measured and from half, the lead level at the bottom is measured. Would this be a valid matched pair test?

No, as the measurements of top and bottom should be from the same glass

Yes, as long as they are all from the same faucet

Yes, as long as there are an equal number of glasses in each group

No, as the lead levels cannot be accurately measured

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July 1, 2023

2.3 The Circular Flows

1) ________ the owners of the factors of production, while ________ what amounts of those factors to hire.

A) Households are; firms determine

B) Households are; the government determines

C) The government is; firms determine

D) Firms are; households determine

E) Firms are; the government determines

2) What two groups of decision makers are represented in the basic circular flow model?

A) governments and financial institutions

B) lenders and borrowers

C) wholesalers and retailers

D) bankers and regulators

E) households and firms

3) Dan missed class the day the professor covered the circular flow model. Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market

A) requires a physical location for buyers and sellers to get together.

B) is any arrangement that brings buyers and sellers together.

C) must include a written contract between buyers and sellers.

D) is only a place to purchase groceries.

E) must have many buyers and only one seller, who is willing to sell to all the buyers.

4) The decisions of firms and households are

A) coordinated by markets.

B) made independently of one another.

C) controlled by but not totally coordinated by the government.

D) unexplainable by the circular flow model.

E) coordinated by but not totally controlled by the government.

5) The circular flow model is used to show the

A) flow of renewable natural resources.

B) recycling process of production materials.

C) expansions and contractions of economic activity.

D) flow of expenditures and incomes in the economy.

E) flow of supply and the flow of demand.

6) The circular flow model shows the

A) distribution of income and consumption goods across income levels.

B) combinations of the factors of production needed to produce goods and services.

C) flow of expenditure and incomes that arise from the households', firms', and governments' decisions.

D) flow of natural resources from firms to the private market to government and back to firms.

E) distribution of income to the different factors of production.

7) The circular flow model shows the flow of

A) expenditure and income throughout the economy.

B) only money throughout the economy.

C) only funds in stock and bond markets.

D) only tax payments and government expenditures.

E) goods markets and factor markets as they move through the economy.

8) In the circular flow model, there are two types of markets: the ________ market and the ________ market.

A) producers; consumers

B) households; firms

C) service; goods

D) goods; factor

E) supply; demand

9) In the circular flow model, consumption goods are bought and sold in the

A) goods market.

B) financial market.

C) factor markets.

D) government market.

E) monetary flows.

10) In the circular flow model, which of the following is on the buying side in the goods market?

i.firms

ii.households

iii.federal, state, and local governments

A) i only

B) ii only

C) iii only

D) i and ii

E) ii and iii

July 1, 2023

111. A company issues at par 9% bonds with a par value of $100,000 on April 1. The bonds pay interest semi-annually on January 1 and July 1. The cash received on July 1 by the bond holder(s) is:

A. $1,500.

B. $3,000.

C. $4,500.

D. $6,000.

E. $7,500.

112. A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $101,137 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

A. $3,386.30.

B. $3,500.00.

C. $3,613,70.

D. $6,633.70.

E. $7,000.00.

113. A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $101,137 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is:

A. $3,500.00.

B. $7,000.00.

C. $3,286.95.

D. $6,573.90.

E. $1,750.00.

114. A company may retire bonds by:

A. Exercising a call option.

B. The holders converting them to stock.

C. Purchasing the bonds on the open market.

D. Paying them off at maturity.

E. All of these.

115. Bonds that give the issuer an option of retiring them before they mature are:

A. Debentures.

B. Serial bonds.

C. Sinking fund bonds.

D. Registered bonds.

E. Callable bonds.

116. A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,500. The company retired these bonds by buying them on the open market at 97. What is the gain or loss on this retirement?

A. $0 gain or loss.

B. $1,500 gain.

C. $1,500 loss.

D. $3,000 gain.

E. $3,000 loss.

117. A company has bonds outstanding with a par value of $100,000. The unamortized premium on these bonds is $2,700. If the company retired these bonds at a call price of 99, the gain or loss on this retirement is:

A. $1,000 gain.

B. $1,000 loss.

C. $2,700 loss.

D. $2,700 gain.

E. $3,700 gain.

118. A company retires its bonds at 105. The face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745. The issuer's journal entry to record the retirement will include a:

A. Debit to Premium on Bonds.

B. Credit to Premium on Bonds.

C. Debit to Discount on Bonds.

D. Credit to Gain on Bond Retirement.

E. Credit to Bonds Payable.

119. A corporation issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:

A. $0.

B. $10,000 gain.

C. $10,000 loss.

D. $22,000 gain.

E. $22,000 loss.

120. On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid at the end of each year on September 30. The present value of an annuity factor for 3 years at 6% is 2.6730. The payment will be:

A. $10,000.00.

B. $11,223.34.

C. $10,800.00.

D. $10,400.00.

E. $1,223.34.

July 1, 2023

2.3 The Circular Flows

1) ________ the owners of the factors of production, while ________ what amounts of those factors to hire.

A) Households are; firms determine

B) Households are; the government determines

C) The government is; firms determine

D) Firms are; households determine

E) Firms are; the government determines

2) What two groups of decision makers are represented in the basic circular flow model?

A) governments and financial institutions

B) lenders and borrowers

C) wholesalers and retailers

D) bankers and regulators

E) households and firms

3) Dan missed class the day the professor covered the circular flow model. Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market

A) requires a physical location for buyers and sellers to get together.

B) is any arrangement that brings buyers and sellers together.

C) must include a written contract between buyers and sellers.

D) is only a place to purchase groceries.

E) must have many buyers and only one seller, who is willing to sell to all the buyers.

4) The decisions of firms and households are

A) coordinated by markets.

B) made independently of one another.

C) controlled by but not totally coordinated by the government.

D) unexplainable by the circular flow model.

E) coordinated by but not totally controlled by the government.

5) The circular flow model is used to show the

A) flow of renewable natural resources.

B) recycling process of production materials.

C) expansions and contractions of economic activity.

D) flow of expenditures and incomes in the economy.

E) flow of supply and the flow of demand.

6) The circular flow model shows the

A) distribution of income and consumption goods across income levels.

B) combinations of the factors of production needed to produce goods and services.

C) flow of expenditure and incomes that arise from the households', firms', and governments' decisions.

D) flow of natural resources from firms to the private market to government and back to firms.

E) distribution of income to the different factors of production.

7) The circular flow model shows the flow of

A) expenditure and income throughout the economy.

B) only money throughout the economy.

C) only funds in stock and bond markets.

D) only tax payments and government expenditures.

E) goods markets and factor markets as they move through the economy.

8) In the circular flow model, there are two types of markets: the ________ market and the ________ market.

A) producers; consumers

B) households; firms

C) service; goods

D) goods; factor

E) supply; demand

9) In the circular flow model, consumption goods are bought and sold in the

A) goods market.

B) financial market.

C) factor markets.

D) government market.

E) monetary flows.

10) In the circular flow model, which of the following is on the buying side in the goods market?

i.firms

ii.households

iii.federal, state, and local governments

A) i only

B) ii only

C) iii only

D) i and ii

E) ii and iii

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Math 221 – quizzes – week 6 homework

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