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# QNT 351 Final Exam Answers

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## QNT 351 Final Exam Instant Download. 100% Accurate.

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- Two Separate Answer Guides (30 Answers Each)
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**New Answers for 2016**

**A time series trend equation for Hammer Hardware is Y’ = 5.6 + 1.2t, where sales are in millions of dollars and t increases by one unit for each year. If the value of sales in the base year of 2016 is $5.6 million, what would be the estimated sales amount for 2018?**

$8 million

Explanation: The value of Hammer Hardware’s sales in the initial year of 2016 is $5.6 million and t = 0 for base year 2016. This means that in 2018 t will equal 2. This leaves us with following equation: Y’ = 5.6 + 1.2t = 5.6 +1.2*2 = 8 or 8 Million.

**An auditor for American Health Insurance reports that 20% of policyholders submit a claim during the year. 15 policyholders are selected randomly. What is the probability that at least 3 of them submitted a claim the previous year? **

.602

Explanation: This is an example of a binomial distribution. This problem can be precisely solved in excel, but it can also be looked up in a binomial distribution table. On a table, n = 15 and P(x) = 0.2. Crossing these two values will give you .602 or 60.2% that 3 of people in the population submitted a claim the previous year.

**A research firm conducted a survey to determine the mean amount steady smokers spend on cigarettes during a week. A sample of 64 smokers revealed that u = $20 and S = $5. What is the 95% confidence interval for μ? **

$18.78 to $21.23

Explanation: This question can be solved using the following formula: P( [sample mean] - margin of error < μ < [sample mean] + margin of error) = 0.95. When we solve the correct variables, we get $18.78 to $21.23

### Previous Versions Answer Preview

**The main purpose of descriptive statistics is to**

summarize data in a useful and informative manner

Explanation: In other words, descriptive statistics is all about making sense of complex data

**The general process of gathering, organizing, summarizing, analyzing, and interpreting data is called**

statistics

Explanation: This is the most basic definition of statistics and encompasses all the more specialized forms of statistics below it, such as descriptive and interferential.

**The performance of personal and business investments is measured as a percentage, return on investment. What type of variable is return on investment?**

Continuous

Explanation: The variable amount is constantly changing with the financial environment, thus called continuous.