Mgmt2340, Exam 2 Study Guide

(Ch. 8) By the Central Limit theorem, (P-bar) can be ___________by a normal distribution for large samples.

Approximated

(Ch. 5) A ___________consists of a series of n independent and identical trials of an experiment such that on each trial: There are only two possible outcomes and each time the trial is repeated; the probabilities of success and failure remain the same.

Bernoulli process.

(Ch. 5) A variable is defined as the number of successes achieved in the n trials of a Bernoulli process

Binomial random

(Ch. 7) According to the __________ for the sample proportion, for any population proportion p, the sampling distribution of p-bar is approximately normal if the sample size n is sufficiently large

Central Limit Theorem

(Ch. 7) __________ is caused by a number of randomly occurring events that are part of the production process

Chance variation

(Ch. 5) If a random variable is characterized by (infinitely) uncountable values within any interval, it is known as ________ variable.

Continuous

(Ch. 5) The _____________ gives the probability that X is less than or equal to x.

Cumulative probability distribution

(Ch. 7) The fraction defective or percent defective chart tracks proportion of _____ in a production process.

Defects

(Ch. 8) _________ determine the extent of the broadness of the tails of the distribution; the fewer the degrees of freedom, the broader the tails.

Degrees of freedom

(Ch. 5) A probability distribution can never be given algebraically.

False

(Ch. 7) An estimate is a statistic that is used to estimate a population parameter.

False

(Ch. 7) Production process is "out of control" if the calculated statistics fall in an expected range.

False

(Ch. 8) If samples of size n are drawn repeatedly from a given population, 95% of the computed sample means, will fall within the interval and the remaining 5% will fall inside the interval.

False

(Ch. 8) While selecting the sample size, the larger n increases the margin of error for the interval estimates.

False

(Ch. 8) Margin of error accounts for the ________ of the estimator and the desired confidence level of the interval.

Variability

(Ch. 8) Confidence level and sample size influence the

Width of confidence interval

(Ch. 5) __________ probability distribution is appropriate in applications where we cannot assume the trials are independent.

Hypergeometric

(Ch. 8) __________ provides a range of values that, with a certain level of confidence, contains the population parameter of interest.

Interval Estimate

(Ch. 5) A _________ always accept a prospect that offers a positive expected gain.

Risk neutral consumers

(Ch. 8) A function of the random sample used to make inferences about the value of an unknown population parameter is called ________

Point Estimator

(Ch. 5) In ________ process, the probability that success occurs in any interval is the same for all intervals of equal size and is proportional to the size of the interval.

Poisson

(Ch. 5) A ________ variable counts the number of successes over a given interval of time or space.

Poisson random

(Ch. 8) ___________ in interval estimates is implied by a low margin of error.

Precision

(Ch. 5) A ___________ function is used to describe continuous random variables.

Probability density

(Ch. 7) A statistic is a _________ variable whose value depends on the chosen random sample and used to make inferences about the population parameters.

Random

(Ch. 7) According to the __________ theory, for any sample size n, the sampling distribution of is normal if the population X from which the sample is drawn is normally distributed.

Sampling from a normal distribution

(Ch. 7) _________ is a sample of n observations which has the same probability of being selected from the population as any other sample of n observations.

Simple random sample

(Ch. 8) The Width of a Confidence Interval is wider if the sample size is ______.

Smaller

(Ch. 7) The _______ is the standard deviation of the sampling distribution for all samples of size n

Standard Error

(Ch. 7) _________ involves statistical techniques used to develop and maintain a firm's ability to produce high-quality goods and services.

Statistical quality control