A company has developed a new engine whose average lifetime is unknown. In order to estimate this average, 100 engines are randomly selected from a large production line and tested; their average lifetime is found to be 11 years. The 11 years represents a:
a. parameter. c. sample.
b. statistic. d. population.
Q. 2If the coefficient of correlation is .4, the percentage of variation in the dependent variable explained by the estimated regression equation _____.
a. is 40
b. is 16
c. is 4
d. can be any positive value
Q. 3Safety stock
a. can be determined by the EOQ formula.
b. depends on the inventory position.
c. depends on the variability of demand during lead time.
d. is not needed if Q is the actual order quantity.
Q. 4A company has developed a new computer microprocessor whose average lifetime is unknown. In order to estimate this average, 300 microprocessors are randomly selected from a large production line and tested; their average lifetime is found to be 7 years. The 300 microprocessors represent a:
a. parameter. c. sample.
b. statistic. d. population.
Q. 5If the coefficient of correlation is .8, then the percentage of variation in the dependent variable explained by the estimated regression equation is _____.
a. 0.80
b. 80
c. 0.64
d. 64
Q. 6For inventory systems with constant demand and a fixed lead time,
a. the reorder point = lead-time demand.
b. the reorder point > lead-time demand.
c. the reorder point < lead-time demand.
d. the reorder point is unrelated to lead-time demand.
Q. 7A random sample of 100 students is taken at LearnAll University and it's found that their average GPA is 3.1 . If this information is used to help estimate the average GPA for all students at LearnAll University, which branch of statistics was applied?
a. Descriptive statistics c. Sample statistics
b. Inferential statistics d. Population statistics
Q. 8It is possible for the coefficient of determination to be _____.
a. larger than 1
b. less than 1
c. less than 0
d. All of the answers are correct, depending on the situation under consideration.
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