# STAT 200 OL1 / US1 Sections Final Exam Spring 2015

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 1 of 6

STAT 200

OL1 / US1 Sections

Final Exam

Spring 2015

The final exam will be posted at 12:01 am on March 6, and it is

due at 11:59 pm on March 8, 2015. Eastern Time is our

reference time.

This is an open-book exam. You may refer to your text and other course

materials as you work on the exam, and you may use a calculator. You must

complete the exam individually. Neither collaboration nor consultation with

others is allowed.

Answer all 25 questions. Make sure your answers are as complete as possible.

Show all of your work and reasoning. In particular, when there are

calculations involved, you must show how you come up with your answers

with critical work and/or necessary tables. Answers that come straight from

programs or software packages will not be accepted.

Record your answers and work on the separate answer sheet provided.

This exam has 250 total points.

You must include the Honor Pledge on the title page of your submitted final

exam. Exams submitted without the Honor Pledge will not be accepted.

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 2 of 6

1. True or False. Justify for full credit. (25 pts)

(a) The normal distribution curve is always symmetric to its mean.

(b) If the variance from a data set is zero, then all the observations in this data set are

identical.

(c)

cc

.ofcomplementtheis where,1)AND( AAAAP

(d) In a hypothesis testing, if the p-value is less than the significance level α, we do not

have sufficient evidence to reject the null hypothesis.

(e) The volume of milk in a jug of milk is 128 oz. The value 128 is from a discrete data

set.

Refer to the following frequency distribution for Questions 2, 3, 4, and 5. Show all work. Just the

answer, without supporting work, will receive no credit.

A random sample of 25 customers was chosen in UMUC MiniMart between 3:00 and 4:00

PM on a Friday afternoon. The frequency distribution below shows the distribution for

checkout time (in minutes).

Checkout Time (in minutes) Frequency Relative Frequency

1.0 - 1.9 2

2.0 - 2.9 8

3.0 - 3.9

4.0 - 5.9 5

Total 25

2. Complete the frequency table with frequency and relative frequency. (5 pts)

3. What percentage of the checkout times was less than 3 minutes? (5 pts)

4. In what class interval must the median lie? Explain your answer. (5 pts)

5. Assume that the largest observation in this dataset is 5.8. Suppose this observation were

incorrectly recorded as 8.5 instead of 5.8. Will the mean increase, decrease, or remain

the same? Will the median increase, decrease or remain the same? Why? (5 pts)

6. A random sample of STAT200 weekly study times in hours is as follows:

2 15 15 18 30

Find the sample standard deviation. (Round the answer to two decimal places. Show all work.

Just the answer, without supporting work, will receive no credit.) (10 pts)

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 3 of 6

Refer to the following information for Questions 7, 8, and 9. Show all work. Just the answer,

without supporting work, will receive no credit.

A fair coin is tossed 4 times.

7. How many outcomes are there in the sample space? (5 pts)

8. What is the probability that the third toss is heads, given that the first toss is heads? (10 pts)

9. Let A be the event that the first toss is heads, and B be the event that the third toss is heads. Are A

and B independent? Why or why not? (5 pts)

Refer to the following situation for Questions 10, 11, and 12.

The boxplots below show the real estate values of single family homes in two neighboring

cities, in thousands of dollars.

For each question, give your answer as one of the following: (a) Tinytown; (b) BigBurg; (c) Both

cities have the same value requested; (d) It is impossible to tell using only the given information.

Then explain your answer in each case. (5 pts each)

10. Which city has greater variability in real estate values?

11. Which city has the greater percentage of households with values $85,000 and over?

12. Which city has a greater percentage of homes with real estate values between $55,000

and $85,000?

Refer to the following information for Questions 13 and 14. Show all work. Just the answer,

without supporting work, will receive no credit.

There are 1000 juniors in a college. Among the 1000 juniors, 200 students are taking

STAT200, and 100 students are taking PSYC300. There are 50 students taking both

courses.

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 4 of 6

13. What is the probability that a randomly selected junior is taking at least one of these two

courses? (10 pts)

14. What is the probability that a randomly selected junior is taking PSYC300, given that

he/she is taking STAT200? (10 pts)

15. UMUC Stat Club is sending a delegate of 2 members to attend the 2015 Joint Statistical Meeting

in Seattle. There are 10 qualified candidates. How many different ways can the delegate be

selected? (5 pts)

16. Imagine you are in a game show. There are 4 prizes hidden on a game board with 10

spaces. One prize is worth $100, another is worth $50, and two are worth $10. You have to pay

$20 to the host if your choice is not correct. Let the random variable x be the winning. Show all

work. Just the answer, without supporting work, will receive no credit.

(a) What is your expected winning in this game? (5 pts)

(b) Determine the standard deviation of x. (Round the answer to two decimal places) (10 pts)

17. Mimi just started her tennis class three weeks ago. On average, she is able to return 20%

of her opponent’s serves. Assume her opponent serves 8 times. Show all work. Just the answer,

without supporting work, will receive no credit.

(a) Let X be the number of returns that Mimi gets. As we know, the distribution of X is a binomial

probability distribution. What is the number of trials (n), probability of successes (p) and

probability of failures (q), respectively? (5 pts)

(b) Find the probability that that she returns at least 1 of the 8 serves from her opponent. (10 pts)

(c) How many serves can she expect to return? (5 pts)

Refer to the following information for Questions 18, 19, and 20. Show all work. Just the answer,

without supporting work, will receive no credit.

The IQ scores are normally distributed with a mean of 100 and a standard deviation of 15.

18. What is the probability that a randomly person has an IQ between 85 and 115? (10 pts)

19. Find the 90

th

percentile of the IQ distribution. (5 pts)

20. If a random sample of 100 people is selected, what is the standard deviation of the sample mean?

(5 pts)

21. A random sample of 100 light bulbs has a mean lifetime of 3000 hours. Assume that the

population standard deviation of the lifetime is 500 hours. Construct a 95% confidence interval

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 5 of 6

estimate of the mean lifetime. Show all work. Just the answer, without supporting work, will

receive no credit. (10 pts)

22. Consider the hypothesis test given by

0

1

5.0:

5.0:

pH

pH

In a random sample of 225 subjects, the sample proportion is found to be

51.0

ˆ

p

.

(a) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(b) Determine the p-value for this test. Show all work; writing the correct P-value,

without supporting work, will receive no credit.

0.01

level?

Explain. (15 pts)

(c) Is there sufficient evidence to justify the rejection of

H

at the

0

23. A new prep class was designed to improve AP statistics test scores. Five students were

selected at random. The numbers of correct answers on two practice exams were

recorded; one before the class and one after. The data recorded in the table below. We

want to test if the numbers of correct answers, on average, are higher after the class.

Number of Correct Answers

Subject Before the class After the class

1 12 14

2 15 18

3 9 11

4 12 10

5 12 12

Is there evidence to suggest that the mean number of correct answers after the class

exceeds the mean number of correct answers before the class?

Assume we want to use a 0.01 significance level to test the claim.

(a) Identify the null hypothesis and the alternative hypothesis.

(b) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(c) Determine the p-value. Show all work; writing the correct critical value, without

supporting work, will receive no credit.

(d) Is there sufficient evidence to support the claim that the mean number of correct

answers after the class exceeds the mean number of correct answers before the class?

Justify your conclusion. (20 pts)

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 6 of 6

24. A random sample of 4 professional athletes produced the following data where x is the

number of endorsements the player has and y is the amount of money made (in millions of

dollars).

x

0 1 3 5

y

3 2 3 8

(a) Find an equation of the least squares regression line. Show all work; writing the correct

equation, without supporting work, will receive no credit. (15 pts)

(b) Based on the equation from part (a), what is the predicted value of y if x = 4? Show all

work and justify your answer. (5 pts)

25. Randomly selected nonfatal occupational injuries and illnesses are categorized according

to the day of the week that they first occurred, and the results are listed below. Use a 0.05

significance level to test the claim that such injuries and illnesses occur with equal

frequency on the different days of the week. Show all work and justify your answer.

Day Mon Tue Wed Thu Fri

Number 22 22 20 19 17

(a) Identify the null hypothesis and the alternative hypothesis.

(b) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(c) Determine the p-value. Show all work; writing the correct critical value, without

supporting work, will receive no credit.

(d) Is there sufficient evidence to support the claim that such injuries and illnesses occur

with equal frequency on the different days of the week? Justify your answer.

(15 pts)

STAT 200

OL1 / US1 Sections

Final Exam

Spring 2015

The final exam will be posted at 12:01 am on March 6, and it is

due at 11:59 pm on March 8, 2015. Eastern Time is our

reference time.

This is an open-book exam. You may refer to your text and other course

materials as you work on the exam, and you may use a calculator. You must

complete the exam individually. Neither collaboration nor consultation with

others is allowed.

Answer all 25 questions. Make sure your answers are as complete as possible.

Show all of your work and reasoning. In particular, when there are

calculations involved, you must show how you come up with your answers

with critical work and/or necessary tables. Answers that come straight from

programs or software packages will not be accepted.

Record your answers and work on the separate answer sheet provided.

This exam has 250 total points.

You must include the Honor Pledge on the title page of your submitted final

exam. Exams submitted without the Honor Pledge will not be accepted.

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 2 of 6

1. True or False. Justify for full credit. (25 pts)

(a) The normal distribution curve is always symmetric to its mean.

(b) If the variance from a data set is zero, then all the observations in this data set are

identical.

(c)

cc

.ofcomplementtheis where,1)AND( AAAAP

(d) In a hypothesis testing, if the p-value is less than the significance level α, we do not

have sufficient evidence to reject the null hypothesis.

(e) The volume of milk in a jug of milk is 128 oz. The value 128 is from a discrete data

set.

Refer to the following frequency distribution for Questions 2, 3, 4, and 5. Show all work. Just the

answer, without supporting work, will receive no credit.

A random sample of 25 customers was chosen in UMUC MiniMart between 3:00 and 4:00

PM on a Friday afternoon. The frequency distribution below shows the distribution for

checkout time (in minutes).

Checkout Time (in minutes) Frequency Relative Frequency

1.0 - 1.9 2

2.0 - 2.9 8

3.0 - 3.9

4.0 - 5.9 5

Total 25

2. Complete the frequency table with frequency and relative frequency. (5 pts)

3. What percentage of the checkout times was less than 3 minutes? (5 pts)

4. In what class interval must the median lie? Explain your answer. (5 pts)

5. Assume that the largest observation in this dataset is 5.8. Suppose this observation were

incorrectly recorded as 8.5 instead of 5.8. Will the mean increase, decrease, or remain

the same? Will the median increase, decrease or remain the same? Why? (5 pts)

6. A random sample of STAT200 weekly study times in hours is as follows:

2 15 15 18 30

Find the sample standard deviation. (Round the answer to two decimal places. Show all work.

Just the answer, without supporting work, will receive no credit.) (10 pts)

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 3 of 6

Refer to the following information for Questions 7, 8, and 9. Show all work. Just the answer,

without supporting work, will receive no credit.

A fair coin is tossed 4 times.

7. How many outcomes are there in the sample space? (5 pts)

8. What is the probability that the third toss is heads, given that the first toss is heads? (10 pts)

9. Let A be the event that the first toss is heads, and B be the event that the third toss is heads. Are A

and B independent? Why or why not? (5 pts)

Refer to the following situation for Questions 10, 11, and 12.

The boxplots below show the real estate values of single family homes in two neighboring

cities, in thousands of dollars.

For each question, give your answer as one of the following: (a) Tinytown; (b) BigBurg; (c) Both

cities have the same value requested; (d) It is impossible to tell using only the given information.

Then explain your answer in each case. (5 pts each)

10. Which city has greater variability in real estate values?

11. Which city has the greater percentage of households with values $85,000 and over?

12. Which city has a greater percentage of homes with real estate values between $55,000

and $85,000?

Refer to the following information for Questions 13 and 14. Show all work. Just the answer,

without supporting work, will receive no credit.

There are 1000 juniors in a college. Among the 1000 juniors, 200 students are taking

STAT200, and 100 students are taking PSYC300. There are 50 students taking both

courses.

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 4 of 6

13. What is the probability that a randomly selected junior is taking at least one of these two

courses? (10 pts)

14. What is the probability that a randomly selected junior is taking PSYC300, given that

he/she is taking STAT200? (10 pts)

15. UMUC Stat Club is sending a delegate of 2 members to attend the 2015 Joint Statistical Meeting

in Seattle. There are 10 qualified candidates. How many different ways can the delegate be

selected? (5 pts)

16. Imagine you are in a game show. There are 4 prizes hidden on a game board with 10

spaces. One prize is worth $100, another is worth $50, and two are worth $10. You have to pay

$20 to the host if your choice is not correct. Let the random variable x be the winning. Show all

work. Just the answer, without supporting work, will receive no credit.

(a) What is your expected winning in this game? (5 pts)

(b) Determine the standard deviation of x. (Round the answer to two decimal places) (10 pts)

17. Mimi just started her tennis class three weeks ago. On average, she is able to return 20%

of her opponent’s serves. Assume her opponent serves 8 times. Show all work. Just the answer,

without supporting work, will receive no credit.

(a) Let X be the number of returns that Mimi gets. As we know, the distribution of X is a binomial

probability distribution. What is the number of trials (n), probability of successes (p) and

probability of failures (q), respectively? (5 pts)

(b) Find the probability that that she returns at least 1 of the 8 serves from her opponent. (10 pts)

(c) How many serves can she expect to return? (5 pts)

Refer to the following information for Questions 18, 19, and 20. Show all work. Just the answer,

without supporting work, will receive no credit.

The IQ scores are normally distributed with a mean of 100 and a standard deviation of 15.

18. What is the probability that a randomly person has an IQ between 85 and 115? (10 pts)

19. Find the 90

th

percentile of the IQ distribution. (5 pts)

20. If a random sample of 100 people is selected, what is the standard deviation of the sample mean?

(5 pts)

21. A random sample of 100 light bulbs has a mean lifetime of 3000 hours. Assume that the

population standard deviation of the lifetime is 500 hours. Construct a 95% confidence interval

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 5 of 6

estimate of the mean lifetime. Show all work. Just the answer, without supporting work, will

receive no credit. (10 pts)

22. Consider the hypothesis test given by

0

1

5.0:

5.0:

pH

pH

In a random sample of 225 subjects, the sample proportion is found to be

51.0

ˆ

p

.

(a) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(b) Determine the p-value for this test. Show all work; writing the correct P-value,

without supporting work, will receive no credit.

0.01

level?

Explain. (15 pts)

(c) Is there sufficient evidence to justify the rejection of

H

at the

0

23. A new prep class was designed to improve AP statistics test scores. Five students were

selected at random. The numbers of correct answers on two practice exams were

recorded; one before the class and one after. The data recorded in the table below. We

want to test if the numbers of correct answers, on average, are higher after the class.

Number of Correct Answers

Subject Before the class After the class

1 12 14

2 15 18

3 9 11

4 12 10

5 12 12

Is there evidence to suggest that the mean number of correct answers after the class

exceeds the mean number of correct answers before the class?

Assume we want to use a 0.01 significance level to test the claim.

(a) Identify the null hypothesis and the alternative hypothesis.

(b) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(c) Determine the p-value. Show all work; writing the correct critical value, without

supporting work, will receive no credit.

(d) Is there sufficient evidence to support the claim that the mean number of correct

answers after the class exceeds the mean number of correct answers before the class?

Justify your conclusion. (20 pts)

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 6 of 6

24. A random sample of 4 professional athletes produced the following data where x is the

number of endorsements the player has and y is the amount of money made (in millions of

dollars).

x

0 1 3 5

y

3 2 3 8

(a) Find an equation of the least squares regression line. Show all work; writing the correct

equation, without supporting work, will receive no credit. (15 pts)

(b) Based on the equation from part (a), what is the predicted value of y if x = 4? Show all

work and justify your answer. (5 pts)

25. Randomly selected nonfatal occupational injuries and illnesses are categorized according

to the day of the week that they first occurred, and the results are listed below. Use a 0.05

significance level to test the claim that such injuries and illnesses occur with equal

frequency on the different days of the week. Show all work and justify your answer.

Day Mon Tue Wed Thu Fri

Number 22 22 20 19 17

(a) Identify the null hypothesis and the alternative hypothesis.

(b) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(c) Determine the p-value. Show all work; writing the correct critical value, without

supporting work, will receive no credit.

(d) Is there sufficient evidence to support the claim that such injuries and illnesses occur

with equal frequency on the different days of the week? Justify your answer.

(15 pts)

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**1. Assume the speed of vehicles along a stretch of I-10 has an approximately**

1. Assume the speed of vehicles along a stretch of I-10 has an approximately

normal distribution with a mean of 71 mph and a standard deviation of 8 mph.

a. The current speed limit is 65 mph. What is the proportion of vehicles less than

or equal to the speed limit?

b. What proportion of the vehicles would be going less than 50 mph?

c. A new speed limit will be initiated such that approximately 10% of vehicles

will be over the speed limit. What is the new speed limit based on this criterion?

d. In what way do you think the actual distribution of speeds differs from a

normal distribution?

2. A group of students at a school takes a history test. The distribution is normal

with a mean of 25, and a standard deviation of 4. (a) Everyone who scores in

the top 30% of the distribution gets a certificate. What is the lowest score

someone can get and still earn a certificate? (b) The top 5% of the scores get to

compete in a statewide history contest. What is the lowest score someone can

get and still go onto compete with the rest of the state?

3. Use the normal distribution to approximate the binomial distribution and find

the probability of getting 15 to 18 heads out of 25 flips. Compare this to what

you get when you calculate the probability using the binomial distribution.

Write your answers out to four decimal places.

4. The patient recovery time from a particular surgical

procedure is normally distributed with a mean of 5.3 days and a standard deviation of 2.1 days.

What is the median recovery time?

a. 2.7

b. 5.3

c. 7.4

d. 2.1

5. Height and weight are two measurements used to track a child’s development. TheWorld Health Organization measures

child development by comparing the weights of children who are the same height and the same gender. In 2009, weights for

all 80 cm girls in the reference population had a mean μ = 10.2 kg and standard deviation σ = 0.8 kg. Weights are normally

distributed. X ~ N(10.2, 0.8). Calculate the z-scores that correspond to the following weights and interpret them.

a. 11 kg

b. 7.9 kg

c. 12.2 kg

6. In China, four-year-olds average three hours a day unsupervised. Most of the unsupervised children live in rural areas,

considered safe. Suppose that the standard deviation is 1.5 hours and the amount of time spent alone is normally distributed.

We randomly select one Chinese four-year-old living in a rural area.We are interested in the amount of time the child spends

alone per day.

a. In words, define the random variable X.

b. X ~ _____(_____,_____)

c. Find the probability that the child spends less than one hour per day unsupervised. Sketch the graph, and write the

probability statement.

d. What percent of the children spend over ten hours per day unsupervised?

e. Seventy percent of the children spend at least how long per day unsupervised?

There is no other information with this problem....the only other option I have is to do an extra credit problem in place of it....

Extra Credit: Facebook provides a variety of statistics on its Web site that detail the growth and popularity of the site.

On average, 28 percent of 18 to 34 year olds check their Facebook profiles before getting out of bed in the morning. Suppose

this percentage follows a normal distribution with a standard deviation of five percent.

a. Find the probability that the percent of 18 to 34-year-olds who check Facebook before getting out of bed in the

morning is at least 30.

b. Find the 95th percentile, and express it in a sentence.

normal distribution with a mean of 71 mph and a standard deviation of 8 mph.

a. The current speed limit is 65 mph. What is the proportion of vehicles less than

or equal to the speed limit?

b. What proportion of the vehicles would be going less than 50 mph?

c. A new speed limit will be initiated such that approximately 10% of vehicles

will be over the speed limit. What is the new speed limit based on this criterion?

d. In what way do you think the actual distribution of speeds differs from a

normal distribution?

2. A group of students at a school takes a history test. The distribution is normal

with a mean of 25, and a standard deviation of 4. (a) Everyone who scores in

the top 30% of the distribution gets a certificate. What is the lowest score

someone can get and still earn a certificate? (b) The top 5% of the scores get to

compete in a statewide history contest. What is the lowest score someone can

get and still go onto compete with the rest of the state?

3. Use the normal distribution to approximate the binomial distribution and find

the probability of getting 15 to 18 heads out of 25 flips. Compare this to what

you get when you calculate the probability using the binomial distribution.

Write your answers out to four decimal places.

4. The patient recovery time from a particular surgical

procedure is normally distributed with a mean of 5.3 days and a standard deviation of 2.1 days.

What is the median recovery time?

a. 2.7

b. 5.3

c. 7.4

d. 2.1

5. Height and weight are two measurements used to track a child’s development. TheWorld Health Organization measures

child development by comparing the weights of children who are the same height and the same gender. In 2009, weights for

all 80 cm girls in the reference population had a mean μ = 10.2 kg and standard deviation σ = 0.8 kg. Weights are normally

distributed. X ~ N(10.2, 0.8). Calculate the z-scores that correspond to the following weights and interpret them.

a. 11 kg

b. 7.9 kg

c. 12.2 kg

6. In China, four-year-olds average three hours a day unsupervised. Most of the unsupervised children live in rural areas,

considered safe. Suppose that the standard deviation is 1.5 hours and the amount of time spent alone is normally distributed.

We randomly select one Chinese four-year-old living in a rural area.We are interested in the amount of time the child spends

alone per day.

a. In words, define the random variable X.

b. X ~ _____(_____,_____)

c. Find the probability that the child spends less than one hour per day unsupervised. Sketch the graph, and write the

probability statement.

d. What percent of the children spend over ten hours per day unsupervised?

e. Seventy percent of the children spend at least how long per day unsupervised?

There is no other information with this problem....the only other option I have is to do an extra credit problem in place of it....

Extra Credit: Facebook provides a variety of statistics on its Web site that detail the growth and popularity of the site.

On average, 28 percent of 18 to 34 year olds check their Facebook profiles before getting out of bed in the morning. Suppose

this percentage follows a normal distribution with a standard deviation of five percent.

a. Find the probability that the percent of 18 to 34-year-olds who check Facebook before getting out of bed in the

morning is at least 30.

b. Find the 95th percentile, and express it in a sentence.

**FINAL EXAM HRM/531 Human Capital Management**

1. Which question should not be important in evaluating the value of training?

Was the cost of training within the budget?

Is the change due to training?

Is the change positive related to organizational goals?

Did change occur?

2. For organizations, _________ is an indirect cost associated with downsizing.

administrative processing

an increase in the unemployment tax rate

outplacement

severance pay

3. Employee demotions usually involve.

a reduction in pay but no loss of opportunity, status, or privilege

a decrease in status and privilege but no loss of opportunity or pay

an increase in pay and more responsibility

a cut in pay, status, privilege, or opportunity

4. Hard quotas

· represent a mandate to hire or promote specific numbers or proportions of women or minority group members

· systematically favor women and minorities in hiring and promotion decisions

· are a commitment to treat all races and sexes equally in all decisions about hiring, promotion, and pay

· are a concerted effort by the organization to actively expand the pool of applicants so that no one is excluded because of past or present discrimination

5. Because practical considerations make job tryouts for all candidates infeasible, it is necessary to __________ the relative level of job performance for each candidate on the basis of available information.

· accept

· predict

· abandon

· assign

6. _____ analysis is the level of analysis that focuses on employees specifically.

· Employee

· Operations

· Environmental

· Individual

7. Title VII of the _____________ states that top executives in companies receiving government support can retract bonuses, retention awards, or incentives paid to the top five senior executive officers or the next 20 most highly compensated employees based on corporate information that is later found to be inaccurate.

· Equal Pay Act (1963)

· Sarbanes–Oxley Act (2002)

· Pay for Performance Act (2009)

· American Recovery and Reinvestment Act (2009)

8. Which is not a quality of Generation Y?

· A blurring of the lines between work and leisure time while on the job

· The constant need for stimulation/entertainment

· Inability to handle numerous projects

· Short attention spans

9. This made extensive changes to the Employee Retirement Income Security Act (ERISA) of 1974 that governs employer-sponsored, qualified (for tax deferral) retirement-benefit plans.

· Short-Term Disability laws

· The Pension Protection Act (PPA) of 2006

· Short-Term Severance Pay laws

· Employer Cost Shifting laws

10. When companies discover they can communicate better with their customers through employees who are similar to their customers, those companies then realize they have increased their _____ diversity.

external

secondary

primary

internal

11. Mary arrives at her new job. Before she can begin actually doing the work, she must complete a series of activities including role playing and virtual reality interactions. What type of training method does Mary’s new employer use?

Organizational development

Information presentation

On-the-job training

Simulation

12. If employers fail to check closely enough on a prospective employee who then commits a crime in the course of performing his or her job duties, they can be held liable for

loss of consortium

quid pro quo

hostile environment

negligent hiring

13. _____ proceeds from an oral warning to a written warning to a suspension to dismissal.

Due process

Progressive discipline

Procedural justice

Positive discipline

14. Which of the following is a distinctive feature of the U.S. system compared with other countries?

All agreements are of unlimited duration

Low union dues and small union staffs

Wages set by arbitration councils

Exclusive representation

15. If objective performance data are available, which of the following is the best strategy to use?

MBO

summated rating scales

work planning and review

BARS

16. ____ implies that appraisal systems are easy for managers and employees to understand and use.

Acceptability

Sensitivity

Practicality

Reliability

17. Training that results in ______ is costly because of the cost of training (which proved to be useless) and the cost of hampered performance.

negative transfer of training

applicability of training

reinforcement of training

simulation of training

18. A _____ occurs when parties are unable to move further toward settlement.

mediation

grievance

bargaining impasse

lockout

19. In _____, workers have been fired for refusing to quit smoking, for living with someone without being married, drinking a competitor’s product, motorcycling, and other legal activities outside of work.

defamation

constructive discharge

lifestyle discrimination

invasion of privacy

20. Organizations periodically turn to _________ to meet demands for talent brought about by business growth and a desire for fresh ideas, or to replace employees who leave.

former employees

outside labor markets

entry-level employees

their subsidiaries

21. ________________ include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others.

Internal pay objectives

General business strategies

Nonfinancial rewards

Social responsibilities

22. The Civil Rights Act of 1991 offered what for victims of unintentional discrimination?

Monetary damages and jury trials

Race-norming

Adverse impact

Affirmative action

23. Properly designed incentive programs work because they are based on two well-accepted psychological principles: (1) increased motivation improves performance and (2)

control-based compensation

the Scanlon plan

the Rucker plan

recognition is a major factor in motivation

24. __________ is the process where managers provide feedback to the employees regarding their past and present job performance proficiency, as well as a basis for improving performance in the future.

Selection

Recruiting

Placement

Performance management

25. When conduction a performance feedback discussion, active listening requires

verbal communications only

interruptions to get your point across

summarizing your key points

summarizing what was said and what was agreed to

26. What can affirmative action assist organizations in achieving that diversity initiatives cannot?

Maximizing workforce commitment

Correcting specific problems of the past

Maximizing creativity

Increased productivity

27. In determining the competitiveness of benefits, senior management tends to focus mainly on

value

cost

security

worth

28. What is our country’s income maintenance program?

ERISA (1974)

Social Security

PPA (2006), 401(k)

COBRA (1985)

29. ____________ is the biggest hurdle to overcome in a pay-for-performance plan.

Salary cap performance level

Compensation equation

Inflation

Merit-pay increases

30. To avoid legal difficulties related to performance appraisals and enhance credibility in court, employers should

present only the employee’s perspective

present only the manager’s perspective

have friends testify

document appraisal ratings and reason for termination

**Best Solution Answer**

P16-7 Multiple differences; calculate taxable income; balance sheet classification

Sherrod, Inc. reported pretax accounting income of 76 million for 2011. The following information relates to differences between pretax accounting income and taxable income:

a. Income from installment sales of properties included in pretax accounting income in 2011 exceeded that reported for tax purposes by 3 million. The installment receivable account at year-end had a balance of 4 million (representing portions of 2010 and 2011 installment sales), expected to be collected equally in 2012 and 2013.

b. Sherrod was assessed a penalty of 2 million by the Environmental Protection Agency for violation of a federal law in 2011. The fine is to be paid in equal amounts in 2011 and 2012.

c. Sherrod rents its operating facilities but owns one asset acquired in 2010 at a cost of 80 million. Depreciation is reported by the straight-line method assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight- line depreciation the next two years ($ in millions).

Income Statement Tax Returns Differences

2010 $20 $26 $(16)

2011 20 35 (15)

2012 20 12 8

2013 20 7 13

$80 $80 $0

d. Bad debt expense of 3 million is reported using the allowance method in 2011. For tax purposes the expense is deducted when accounts prove uncollectible (the direct write-off method): 2 million in 2011. At December 31, 2011, the allowance for uncollectible accounts was 2 million (after adjusting entries). The balance was 1 million at the end of 2010.

e. In 2011, Sherrod accrued an expense and related liability for estimated paid future absences of 7 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years (4 million in 2012; 3 million in 2013).

f. During 2010, accounting income included an estimated loss of 2 million from having accrued a loss contingency. The loss is paid in 2011 at which time it is tax deductible.

Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2011, were 1.2 million and 2.8 million, respectively. The enacted tax rate is 40% each year.

Requred:

1. Determine the amounts necessary to record income taxes for 2011 and prepare the appropriate journal entry.

2. What is 2011 net income?

3. Show how any deferred tax amounts should be classified and reported in the 2011 balance sheet.

E 17-10 Determine pension expense

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2011, Abbott and Abbott received the following information:

($ in the millions)

Projected Benefit Organization

Balance, January 1 $120

Service Cost 20

Interest Cost 12

Benefits paid (9)

Balance, December 31 $143

Plan Assets

Balance, January 1 $ 80

Actual return on plan assets 9

Contribution 2011 20

Benefits paid (9)

Balance, December 31 $100

The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss- AOCI on January 1, 2011.

Required:

1. Determine Abbott and Abbott’s pension expense for 2011.

2. Prepare the journal entries record Abbott and Abbott’s pension, funding, and payments for 2011.

E 17-19 Record pension expense, funding, and gains and losses; determine account balances

Beale Management has noncontributory, defined benefit pension plan. On December 31, 2011 (the end of Beale’s fiscal year), the following pension-related data were available.

Projected Benefit Obligation ($ in millions)

Balance, January 1, 2011 480

Service Cost 82

Interest cost, discount rate, 5% 24

Gain due to changes in actuarial assumptions in 2011 (10)

Pension benefits paid (40)

Balance, December 31, 2011 536

Plan Assets

Balance, January 1, 2011 500

Actual return on plan assets 40

(Expected return on plan assets, 45)

Pension benefits paid (40)

Balance, December 31. 2011 570

January 1, 2011, balances:

Pension asset 20

Prior service cost –AOCI (amortization $8 per year) 48

Net gain-AOCI (any amortization over 15 years) 80

Required:

1. Prepare the 2011 journal entry to record pension expense.

2. Prepare the journal entry (s) to record any 2011 gains and losses.

3. Prepare the 2011 journal entries to record the contribution to plan assets, and benefit payments to retirees.

4. Determine the balances at December 31, 2011, in PBO, plan assets, the net gain-AOCI and prior service cost-AOCI and show how the balances changed during 2011. (t-accounts may be useful).

5. What amount will Beale report in its 2011 balance sheet as a net pension asset or net pension liability for the funded stat s of the plan?

P 17-6 Determine the PBO; plan assets; pension expense; two years

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2011. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is 150,000 for 2011 and 200,000 for 2012. Year-end funding is 160,000 for 2011 and 170,000 for 2012. No assumptions or estimates were revised during 2011.

Required:

Calculate each of the following amounts as of both December 31, 2011, and December 31, 2012.

1. Projected benefit obligation

2. Plan assets

3. Pension expense

4. Netpension asset or net pension liability