26) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________. A. inflation targeting B. the monetary policy reaction lag C. the sacrifice ratio dilemma D. the time inconsistency of policy 27) The open-economy macroeconomic model examines the determination of __________. A. the output growth rate and the real interest rate B. unemployment and the exchange rate C. the trade balance and the exchange rate D. the output growth rate and the inflation rate 42) Use the following table to answer question: P(S | W) is approximately _____. A. .58 B. .30 C. .40 D. .12 43) William used a sample of 68 U.S. cities to estimate the relationship between Crime(annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income. Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with Y = number of robberies in each city (thousands of robberies) and X = size of police force in each city (thousands of police)? A. Autocorrelation. B. Positive slope (due to city size). C. High R2 (due to city size). D. No correlation. 44) Independent events A and B would be consistent with which of the following statements: A. P (A) = .3, P (B) = .5, P (A B) = .4 B. P (A) = .4, P (B) = .3, P (A B) = .5 C. P (A) = .4, P (B) = .5, P (A B) = .2 D. P (A) = .5, P (B) = .4, P (A B) = .3 45) Use the following table to answer question: Are Service provider and county independent events? A. No B. Insufficient information to determine C. Yes 46) In a random sample of 810 women employees, it is found that 81 would prefer working for a female boss. The width of the 95% confidence interval for the proportion of women who prefer a female boss is _____. A. ± .0196 B. ± .0105 C. ± .0207 D. ± .0288 47) From its 32 regions, the Federal Aviation Administration selects 5 regions, and then randomly audits 20 departing commercial flights in each region for compliance with legal fuel and weight requirements. This is __________. A. judgment sampling B. cluster sampling C. simple random sampling D. stratified random sampling 48) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE? A. A–B–C has the most slack. B. The expected duration of this project is 25 days. C. A–D–C is the critical path. D. The expected duration of this project is 25 + 15 + 20 = 60 days. 49) Likely reasons for inaccurate control limits would include which of the following? A. The engineers were underpaid for their work. B. There was insufficient preliminary sampling. C. The engineering parameter for variance is unknown. D. Process variation was not zero, as expected. 50) In statistical process control a p-chart could __________. A. measure the fraction of conforming parts in a sample B. have more than one characteristics C. measure the number of defects per sample unit D. use the student's distribution  |
