A smaller sample might provide less sampling error than a larger sample from a given population.
Indicate whether the statement is true or false
Q. 2Whenever the calculated LCL for a p-chart is negative, use ________.
A) that value for the LCL because being negative is not a problem
B) the UCL - 1 instead
C) zero since the fraction nonconforming can never be negative
D) zero because a negative LCL is too confusing to use
Q. 3Suppose it is known that the mean purchase price for all homes sold last year in Blacksburg, Virginia was 203,455. Recently, two studies were done on home sales prices.
In the first study, a random sample of 200 homes was selected from the population. In the second study, a random sample of 60 homes was selected. Based on this information, we know that the second study would contain more sampling errors than the first study due to the smaller sample size. Indicate whether the statement is true or false
Q. 4The Baker Oil and Gas Company has four retail locations, code-named A, B, C, and D.
The following table illustrates the percentage of total company sales at each store and also the percentage of customers at that store who make purchases with debit cards:
Store Proportion of Total Sales Proportion of Customers Using Debit
A 0.18 0.32
B 0.30 0.19
C 0.41 0.18
D 0.11 0.40
Based on this information, the probability that a customer will use a debit card is just slightly greater than 0.23.
Indicate whether the statement is true or false
Q. 5Differentiate between aggressive strategy and conservative strategy.
What will be an ideal response?
Q. 6A major tire manufacturer wishes to estimate the mean tread life in miles for one of its tires. It wishes to develop a confidence interval estimate that would have a maximum sampling error of 500 miles with 90 percent confidence.
A pilot sample of n = 50 tires showed a sample standard deviation equal to 4,000 miles. Based on this information, the required sample size is:A) 124.
B) 246.
C) 174.
D) 196.
Q. 7Determine the projected revenue for selling the projected number of total suites.
A) 20,938.78
B) 20,762.98
C) 30,491.55
D) 72,193.31
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