At the optimal order quantity for the quantity discount model, the sum of the annual holding and ordering costs is minimized.
Indicate whether the statement is true or false
Q. 2Identify each of the following as a use of descriptive statistics or inferential statistics.
a. Finding the weights of a sample of 85 manufacturer parts.
b. Calculating the average weight of 125 boxes shipped by FedEx.
c. Estimating the percentage of the U.S. population that will vote for your favorite candidate in the next presidential election.
d. Selecting a random sample of 190 babies born last year and using this information to estimate the birth weight of all babies born last year.
e. Randomly selecting 225 cans of a brand of peas and using their average weight to decide whether the 15 oz. label on the cans is truthful or not.
Q. 3The numerical value of the coefficient of determination _____.
a. is always larger than the coefficient of correlation
b. is always smaller than the coefficient of correlation
c. is negative if the coefficient of determination is negative
d. can be larger or smaller than the coefficient of correlation
Q. 4The EOQ model is insensitive to small variations or errors in the cost estimates.
Indicate whether the statement is true or false
Q. 5Define each of the following statistical terms:
a. Descriptive statistics
b. Statistical inference
c. Confidence level
d. Significance level
e. Population
f. Sample
Q. 6A measure of goodness of fit for the estimated regression equation is the _____.
a. multiple coefficient of determination
b. mean square due to error
c. mean square due to regression
d. sample size
Q. 7The terms inventory on hand and inventory position have the same meaning.
Indicate whether the statement is true or false
Q. 8A candidate who is running for the vacant City Mayor seat with 35,000 registered voters wants to determine what percentage would vote for him. His pollsters interview 600 registered voters from the city at random; 60 say they plan to vote for him.
a. What is the population of interest?
b. What is the sample?
c. Is the 60 a parameter or a statistic in this scenario? Why?
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