Q1. You compute the components of a one-way ANOVA table, and you find MSB = 12 and MSW = 2. The critical value for the F test is 2.45. What is your test decision?
A. Reject
B. Accept
C. We do not have enough information to make the test decision
Q2. You get a job at a financial services firm, and your new boss explains that they use some simple tools to track company performance. In one case, they average the investment returns generated by all of their account managers for the past 20 trading days. Then, the manager studies the variation in the mean return to evaluate the riskiness of the investments they have recommended to clients. Initially, the firm was small and had only 5 account managers, but the firm has grown and now employs 20 account managers. Based on this change in the number of account managers over time, what is the expected change in the variance of the mean investment return as the firm has grown?
A. Variance in mean return has grown
B. Variance in mean return has not changed
C. Variance in mean return has declined
Q3. You are a marketing specialist for a regional grocery store chain. Suppose your data analysis shows that the amount of ice cream sold per week in your stores is positively correlated with the average daily high temperature for the week. Does this mean that the temperature causes the ice cream consumption?
A. Yes, correlation indicates causation
B. No, correlation and causation are distinct
Q4. What happens to the value of a t-test statistic if the sample variance increases?
A. Statistic does not change
B. Statistic declines in absolute value
C. Statistic increases in absolute value
Q5. When comparing the means of two independent samples, we must assume that the variances for the two samples are identical.
A. False
B. True