Exam 9: Fundamentals of Hypothesis Testing: One-Sample Tests

SCENARIO 9-8 One of the biggest issues facing e-retailers is the ability to turn browsers into buyers.This is measured by the conversion rate,the percentage of browsers who buy something in their visit to a site.The conversion rate for a company's website was 10.1%.The website at the company was redesigned in an attempt to increase its conversion rates.A sample of 200 browsers at the redesigned site was selected.Suppose that 24 browsers made a purchase. The company officials would like to know if there is evidence of an increase in conversion rate at the 5% level of significance. -Referring to Scenario 9-8,state the null hypothesis for this study.

SCENARIO 9-10 A manufacturer produces light bulbs that have a mean life of at least 500 hours when the production process is working properly.Based on past experience,the population standard deviation is 50 hours and the light bulb life is normally distributed.The operations manager stops the production process if there is evidence that the population mean light bulb life is below 500 hours. -Referring to Scenario 9-10,if you select a sample of 100 light bulbs and are willing to have a level of significance of 0.10,the probability of a Type I error is _____if the population mean bulb life is 510 hours.

Referring to Scenario 9-3,the consumer group can conclude that there is enough evidence that the manufacturer's claim is not true when allowing for a 5% probability of committing a Type I error.

The power of a statistical test is

You have created a 95% confidence interval for ? with the result 10 $\le$ $\mu$ $\le$ 15 .What decision will you make if we test H₀ : ? = 16 versus H₁ : ? $\neq$ 16 at ? = 0.10?

A manager of the credit department for an oil company would like to determine whether the mean monthly balance of credit card holders is equal to $75.An auditor selects a random sample of 100 accounts and finds that the mean owed is $83.40 with a sample standard deviation of $23.65.If you wanted to test whether the mean balance is different from $75 and decided to reject the null hypothesis,what conclusion could you reach?

SCENARIO 9-2 A student claims that he can correctly identify whether a person is a business major or an agriculture major by the way the person dresses.Suppose in actuality that if someone is a business major,he can correctly identify that person as a business major 87% of the time.When a person is an agriculture major,the student will incorrectly identify that person as a business major 16% of the time.Presented with one person and asked to identify the major of this person (who is either a business or an agriculture major),he considers this to be a hypothesis test with the null hypothesis being that the person is a business major and the alternative that the person is an agriculture major. -Referring to Scenario 9-2,what would be a Type II error?

SCENARIO 9-7 A major home improvement store conducted its biggest brand recognition campaign in the company's history.A series of new television advertisements featuring well-known entertainers and sports figures were launched.A key metric for the success of television advertisements is the proportion of viewers who "like the ads a lot".A study of 1,189 adults who viewed the ads reported that 230 indicated that they "like the ads a lot." The percentage of a typical television advertisement receiving the "like the ads a lot" score is believed to be 22%.Company officials wanted to know if there is evidence that the series of television advertisements are less successful than the typical ad at a 0.01 level of significance. -Referring to Scenario 9-7,the null hypothesis will be rejected if the test statistic is

Which of the following statements is not true about the level of significance in a hypothesis test?

Referring to Scenario 9-3,the null hypothesis will be rejected at 5% level of significance.

Referring to Scenario 9-3,for this test to be valid,it is necessary that the power consumption for microwave ovens has a normal distribution.

The larger the p-value,the more likely you are to reject the null hypothesis.

For a given level of significance,if the sample size is increased but the summary statistics remain the same,the probability of committing a Type II error will increase.

SCENARIO 9-4 A drug company is considering marketing a new local anesthetic.The effective time of the anesthetic the drug company is currently producing has a normal distribution with an mean of 7.4 minutes with a standard deviation of 1.2 minutes.The chemistry of the new anesthetic is such that the effective time should be normally distributed with the same standard deviation,but the mean effective time may be lower.If it is lower,the drug company will market the new anesthetic;otherwise,they will continue to produce the older one.A sample of size 36 results in a sample mean of 7.1.A hypothesis test will be done to help make the decision. -Referring to Scenario 9-4,the p-value of the test is .

How many tissues should the Kimberly Clark Corporation package of Kleenex contain? Researchers determined that 60 tissues is the mean number of tissues used during a cold.Suppose a random sample of 100 Kleenex users yielded the following data on the number of tissues used during a cold: x̄ = 52,S = 22.Suppose the test statistic does fall in the rejection region at α = 0.05.Which of the following decision is correct?

SCENARIO 9-8 One of the biggest issues facing e-retailers is the ability to turn browsers into buyers.This is measured by the conversion rate,the percentage of browsers who buy something in their visit to a site.The conversion rate for a company's website was 10.1%.The website at the company was redesigned in an attempt to increase its conversion rates.A sample of 200 browsers at the redesigned site was selected.Suppose that 24 browsers made a purchase. The company officials would like to know if there is evidence of an increase in conversion rate at the 5% level of significance. -Referring to Scenario 9-8,state the alternative hypothesis for this study.

A sample is used to obtain a 95% confidence interval for the mean of a population.The confidence interval goes from 15 to 19.If the same sample had been used to test the null hypothesis that the mean of the population is equal to 18 versus the alternative hypothesis that the mean of the population differs from 18,the null hypothesis could be rejected at a level of significance of 0.05.

SCENARIO 9-7 A major home improvement store conducted its biggest brand recognition campaign in the company's history.A series of new television advertisements featuring well-known entertainers and sports figures were launched.A key metric for the success of television advertisements is the proportion of viewers who "like the ads a lot".A study of 1,189 adults who viewed the ads reported that 230 indicated that they "like the ads a lot." The percentage of a typical television advertisement receiving the "like the ads a lot" score is believed to be 22%.Company officials wanted to know if there is evidence that the series of television advertisements are less successful than the typical ad at a 0.01 level of significance. -Referring to Scenario 9-7,the null hypothesis would be rejected.

SCENARIO 9-9 The president of a university claimed that the entering class this year appeared to be larger than the entering class from previous years but their mean SAT score is lower than previous years.He took a sample of 20 of this year's entering students and found that their mean SAT score is 1,501 with a standard deviation of 53.The university's record indicates that the mean SAT score for entering students from previous years is 1,520.He wants to find out if his claim is supported by the evidence at a 5% level of significance. -Referring to Scenario 9-9,if these data were used to perform a two-tail test,the p-value would be 0.1254.

You know that the level of significance ( ? )of a test is 5%,you can tell that the probability of committing a Type II error ( $\beta$ )is