D. 0.095SubjectCOURSE: MSCI 3710 Print Name:Exam 1 Signature:Version C S.S.#:SEMESTER: Spring 2003Note: Whenever question(s) are connected you may be asked to assume a result (given a value) from the previous question but this result may ormay 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 backsideof 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 below to answer the next two questions. (Kvanli Chapter 9)An auto dealer is marketing two different models of a high-end sedan. Since customers are particularly interested in the safety features of the sedans, the dealer would like to determine if there is a difference in the braking distance (the number of feet required to go from 60 mph to 0 mph) of the two sedans. Six drivers are randomly selected and askedto participate in a test to measure the braking distance for both models. Each driver is asked to drive both models and brake once they have reached exactly 60 mph. The distance required to come to a complete stop is then measured in feet. Excel output for the tests, based on the experiment and conducted at the 5% significance level, is shown inthe following table.t-Test: Paired Two Sample for MeansVariable 1 Variable 2Mean 152.5 154Variance 25.1 22.86Observations 6 6Pearson Correlation 0.986524144Hypothesized Mean Difference0df 5t Stat -4.391550328P(T<=t) one-tail 0.003538799t Critical one-tail XXXXP(T<=t) two-tail 0.007077598t Critical two-tail 1.4758848011. To test the claim that there is a difference in breaking distance of the two sedans, whatis the p-value of the test using the dependent samples approach?A. 0.3035 B. 0.0071*C. 0.6071D. 0.0035E. 0.12. What are the decision and conclusion using the dependent samples approach if the test is conducted at the 5% significance level?A. Reject the null hypothesis, conclude there is evidence of no difference in braking distance of the two sedans.B. Fail to reject the null hypothesis, conclude there is insufficient evidence of no difference in braking distance of the two sedans.C. Reject the null hypothesis, conclude there is evidence of a difference in braking distance of the two sedans.*D. Fail to reject the null hypothesis, conclude there is insufficient evidence of a difference in braking distance of the two sedans. E. There is insufficient information given to decide whether there is a difference in braking distance of the two sedans.2Use the information given in the following paragraph to answer the next two questions. (Kvanli Chapter 8)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 is 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 1% level of significance, the results of which are shown below.t Test for Population Mean Number of Observations 10Sample Standard Deviation 434.536547Sample Mean 3969.700000Ho: µ > 4000 Ha: µ < 4000T* -0.220504P[T < T*] 0.415200T Critical, α = 0.01 -2.8214343. What is the critical value of test statistic to test the buyer’s belief at the 1% level of significance?A. –1.38 B. –0.17C. –1.01 D. –0.05E. –2.82 *4. What is the conclusion of the test concerning the potential buyer’s belief, conducted atthe 1% significance level, and reason for the conclusion?A. 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. B. 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.*C. Conclude there is evidence the average weekly revenue is more than $4,000 because the p-value is greater than the significance level. D. Conclude there is insufficient evidence the average weekly revenue is more 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 more than $4,000 because the calculated value of the test statistic is not in the rejection region.3Use the information given in the paragraph below to answer the next three questions. (Kvanli Chapter 10)American Airlines created the AAdvantage Executive Platinum program for its frequent flier passengers. Membership requires that a customer fly 100,000 miles a year. This elitelevel allows members to reserve an upgrade to first class, 4 days before their flight as compared to 3 days previously allowed for AAdvantage members. American Airlines previously found that 19% of its surveyed customers did not have difficulty getting upgrades when requested. Another survey after the executive Platinum program has been in effect for a year and from a sample of 350 customers, found only 78 said that they did not have difficulty getting upgrades when requested. Is the data sufficient to conclude that the new Executive Platinum program has increased the proportion of customers that obtain an upgrade without difficulty? (Use alpha = 0.005)5. What are the null and alternative hypotheses for the above situation?A. Ho: p < 0.21 Ha: p > 0.21B. Ho: p = 0.19 Ha: p ≠ 0.19C. Ho: p = 0.21 Ha: p ≠ 0.21D. Ho: p < 0.19 Ha: p > 0.19*E. Ho: p = 0.19 Ha: p < 0.196. The value of the calculated test statistic is A.