COURSE: MSCI 3710 Print Name: EXAM 1 Signature: Version A S.S.#: SEMESTER: Fall 2002 Note: Whenever question(s) are connected you may be asked to assume a result (given a value) from the previous question but this result may or may not be correct.This is to prevent you from losing points on a second question because you made a mistake on a previous question.Instructions: Please print your name and social security number on this exam. Also, put your signature on this exam. On your scantron PRINT your name, your version, and your section number. To better protect your privacy also print your name on the backside of your scantron. You have 50 minutes to complete this exam. The exam is open book, open notes, and open mind. You may use any type of calculator but please show all your work on the exam and mark all answers on the scantron. Many of the questions follow the format of those in Adventures in Business Statistics. The remaining questions are either based on the Excel assignment or use an Adventures-like approach with problems nearly identical to those assigned in the textbook.  When you have completed the exam, please insert your scantron into the exam booklet and turn them in to your instructor. No cheating. Good luck and we wish you well on the exam.1Use the information given in the following paragraph to answer the next two questions.An accountant of Slot-Ski Sandwich franchises claims that stores generate an average weekly revenue of at least $4,000 per store. A potential buyer who is considering purchasing Slot-Ski Sandwich franchise is doubtful about this claim, believing that the average weekly revenue might be less than $4,000. He obtains a sample of revenues from 10 stores and conducts a statistical analysis on the data using Excel with a 10% level of significance, the results of which are shown below.T Test of Hypothesis for the MeanLevel of Significance 0.10Sample Size 10Sample Mean 3899.5Sample Standard Deviation 313.7894729Standard Error of the Mean 99.22894403Degrees of Freedom 9t Test Statistic -1.012809327Lower Critical Value -1.383p-Value 0.1688019691. What is the critical value of test statistic to test the buyer’s belief at the 10% level of significance?A. -1.38 *B. -2.82C. -0.17D. -1.01 E. -0.052. What is the conclusion of the test concerning the potential buyer’s belief, conducted atthe 10% significance level, and reason for the conclusion?A. Conclude there is evidence the average weekly revenue is more than $4,000 because the p-value is greater than the significance level. B. Conclude there is evidence the average weekly revenue is less than $4,000 because the p-value is smaller than the significance level. C. Conclude there is evidence the average weekly revenue is at least $4,000 because the test statistic is greater than the significance level.D. Conclude there is insufficient evidence the average weekly revenue is less than $4,000 because the calculated value of the test statistic is in the rejection region. E. Conclude there is insufficient evidence the average weekly revenue is less than $4,000 because the calculated value of the test statistic is not in the rejection region. *2Based on advice from a statistics consultant, a human resources training specialist assigns15 pages of equally difficult text to be typed by the same person before and after completing the corporate contract-training course. The raw data with the number of errors and Excel analysis using a 5% significance level are shown in the tables below. Use this information to answer the next three questions.TypistBeforeAfter129252 19 173 34 304 42 375 35 296 33 317 X X8XX9 X X10 X X Before AfterMean 33.4 30.8Variance 57.1556 29.9556Observations 10 10Pearson Correlation 0.1418Hypothesized Mean Difference 0df 9t Stat 0.9470P(T<=t) one-tail xxxxxxt Critical one-tail 1.833P(T<=t) two-tail xxxxxxt Critical two-tail 2.262 3. What is the critical value (at the 5% level) of the appropriate test statistic to test the belief that there is a reduction in the mean number of errors if typists go through the contract-training course?A. 1.383B. 0.9106C. 1.833*D. 0.9470 E. 2.26234. What is the calculated value of the appropriate test statistic to test the belief that there is a reduction in the mean number of errors if typists go through the contract-training course?A. 1.383B. 0.9106C. 1.8331D. 0.9470 *E. 2.26225. Which of the following ranges best represents the p-value (observed level of significance) for testing the belief that there is a difference in the mean number of errors between typists who did not take the training course and those who completed the course?A. p > 0.1 *B. 0.01 < p < 0.025 C. 0.025 < p < 0.05 D. 0.05 < p < 0.1 E. p < 0.1 Use the information given below to answer the next 2 questions.The CEO of Mean Green Cab Company believes there is a difference between the durability of two brands of tires, Minus and Rub. The CEO decides to test her belief by running an experiment. To conduct the experiment, her R & D department uses a machine with a metallic device to wear down the tires and records the tread depth on a random sample of 10 tires of each brand after new tires are spun for an equivalent of 10,000 miles. Excel output for the test, on the sample data, conducted at the 5% significance level is shown in the tables below. t-Test: Two-Sample Assuming Equal VariancesRub MinusMean 0.2415 0.2538Variance 0.0004 0.0009Observations 10 10Pooled Variance 0.0007Hypothesized Mean Difference0df 18t Stat -1.0183P(T<=t) one-tail 0.161t Critical one-tail 1.734P(T<=t) two-tail 0.322t Critical two-tail 2.10146. To test the claim that there is a difference between the durability of Rub and Minus brands (μR – μM), which of the following is the critical value of the test statistic at the 5% level of significance?A. 1.330B. 2.101*C. 1.734D. -2.113 E. -1.0187. What are the decision and conclusion for the test, if the test is conducted at the 10% significance level?A. Reject the null hypothesis, conclude there is evidence of a significant difference between the durability of the Minus and Rub brands.B. Reject the null hypothesis, conclude there is insufficient evidence that there is no significant difference between the durability of the Minus and Rub brands.C. Fail to reject the