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**QMB 6357 Harvard Final Exam Complete Solution**

The median is often a better representative of the central value of a data set when the data set:

Is bimodal.

Has a high standard deviation.

Is highly skewed.

Has no outliers.

2.

The data in the Excel spreadsheet linked below provide information on the nutritional content (in grams per serving) of some leading breakfast cereals.

For which nutrients is the mean nutrient content per serving greater than the median nutrient content per serving?

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Proteins only.

Complex carbohydrates only.

Both nutrients.

Neither nutrient.

3.

The histogram below plots the carbon monoxide (CO) emissions (in pounds/minute) of 40 different airplane models at take-off.

The distribution is best described as is:

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Uniform.

Heteroskedastic.

Normal.

Skewed right.

4.

The histogram below plots the carbon monoxide (CO) emissions (in pounds/minute) of 40 different airplane models at take-off.

Which of the following statements is the best inference that can be drawn from this histogram?

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The mean amount of carbon monoxide emissions is greater than the median amount of carbon monoxide emissions.

The mean amount of carbon monoxide emissions is less than the median amount of carbon monoxide emissions.

The mean and median amounts of carbon monoxide emissions are about equal.

The relative sizes of the mean and median amounts of carbon monoxide emissions cannot be inferred from the histogram.

In the data set shown below, the correlation coefficient of the two variables is:

**6.**

The data in the Excel spreadsheet linked below give the ages and salaries of the chief executive officers of 59 companies with sales between $5 million and $350 million.

The correlation between age and salary can be characterized as:

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Strong and positive.

Strong and negative.

Weak and positive.

Weak and negative

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-1.0.

-0.5

0.0

None of the above

43.

Electronics manufacturer SE must decide whether or not to invest in the development of a new type of battery. If the development succeeds, the market for the battery may be large or small. If it doesn't succeed, the development efforts may or may not generate minor innovations that would offset some of the battery's development costs. The tree below summarizes the decision.

The EMV of developing the new battery is $300,000. Based on EMV, SE should develop the battery. Given that development is successful, for what endpoint values for a large market does developing the battery have a lower EMV than not developing the battery?

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Less than $1.2 million.

Greater than $1.2 million.

Greater than $0.75 million.

None of the above.

44.

The manager of the Eris Shoe Company must decide whether or not to contract a controversial sports celebrity as its spokesperson. The new spokesperson's value to Eris depends heavily on consumers' perception of him. An initial decision analysis based on available data reveals that the expected monetary value of contracting the new spokesperson is $260,000. For $50,000 Eris can engage a market research firm that will help Eris learn more about how consumers might react to the celebrity. The EMV of buying this **sample information** (assuming it is free) for this decision is $300,000.

The tree below summarizes Eris's decision. Based on EMV analysis, Eris's manager should:

Hire the research firm.

Not hire the research firm, but contract the new spokesperson.

Not hire the research firm and not contract the new spokesperson.

The answer cannot be determined from the information

**7.**

7. For a given set of data, the standard deviation measures: