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

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 (i.e. if there is evidence that the population proportion of "like the ads a lot" for the company's ads is less than 0.22) at a 0.01 level of significance. -Referring to Scenario 9-7, what will be the p-value if these data were used to perform a two-tail test?

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 is the "actual confidence coefficient"?

SCENARIO 9-3 An appliance manufacturer claims to have developed a compact microwave oven that consumes a mean of no more than 250 W. From previous studies, it is believed that power consumption for microwave ovens is normally distributed with a population standard deviation of 15 W. A consumer group has decided to try to discover if the claim appears true. They take a sample of 20 microwave ovens and find that they consume a mean of 257.3 W. -Referring to Scenario 9-3, the null hypothesis will be rejected at 5% level of significance.

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 is the "actual level of significance" of the test?

SCENARIO 9-1 Microsoft Excel was used on a set of data involving the number of defective items found in a random sample of 46 cases of light bulbs produced during a morning shift at a plant. A manager wants to know if the mean number of defective bulbs per case is greater than 20 during the morning shift. She will make her decision using a test with a level of significance of 0.10. The following information was extracted from the Microsoft Excel output for the sample of 46 cases: $n = 46$ ; Arithmetic Mean $= 28.00$ ; Standard Deviation $= 25.92$ ; Standard Error $= 3.82$ ; Null Hypothesis: $H _ { 0 } : \mu \leq 20 ; \alpha = 0.10 ; \mathrm { df } = 45 ; T$ Test Statistic $= 2.09$ ; One-Tail Test Upper Critical Value $= 1.3006 ; p$ -value $= 0.021 ;$ Decision $=$ Reject. -Referring to Scenario 9-1, what critical value should the manager use to determine the rejection region?

If an economist wishes to determine whether there is evidence that mean family income in a community exceeds $50,000

If a test of hypothesis has a Type I error probability (α) of 0.01, it means that

Which of the following would be an appropriate null hypothesis?

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, the highest level of significance at which the null hypothesis cannot be rejected is ______.

Which of the following would be an appropriate alternative hypothesis?

SCENARIO 9-5 A bank tests the null hypothesis that the mean age of the bank's mortgage holders is less than or equal to 45 years, versus an alternative that the mean age is greater than 45 years. They take a sample and calculate a p-value of 0.0202. -Referring to Scenario 9-5, if the same sample was used to test the opposite one-tail test, what would be that test's p-value?

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 I 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 (i.e. if there is evidence that the population proportion of "like the ads a lot" for the company's ads is less than 0.22) at a 0.01 level of significance. -Referring to Scenario 9-7, the parameter the company officials is interested in is:

SCENARIO 9-1 Microsoft Excel was used on a set of data involving the number of defective items found in a random sample of 46 cases of light bulbs produced during a morning shift at a plant. A manager wants to know if the mean number of defective bulbs per case is greater than 20 during the morning shift. She will make her decision using a test with a level of significance of 0.10. The following information was extracted from the Microsoft Excel output for the sample of 46 cases: $n = 46$ ; Arithmetic Mean $= 28.00$ ; Standard Deviation $= 25.92$ ; Standard Error $= 3.82$ ; Null Hypothesis: $H _ { 0 } : \mu \leq 20 ; \alpha = 0.10 ; \mathrm { df } = 45 ; T$ Test Statistic $= 2.09$ ; One-Tail Test Upper Critical Value $= 1.3006 ; p$ -value $= 0.021 ;$ Decision $=$ Reject. -In a hypothesis test, it is irrelevant whether the test is a one-tail or two-tail test.

SCENARIO 9-11-B You are the quality control manager of a water bottles company. One of the biggest complaints in the past years has been the breakage and, hence, the concern on the durability of the connector between the lid and the bottle which many users use as a handle for the bottles. To collect evidence before implementing any modification to the production process, your department has subjected 50 water bottle to durability test and the following data on the number of times the handles have been used to lift the bottles before they break are contained in the file Scenario9-11-DataB.XLSX. 1493 1506 1515 1491 1500 1505 1517 1510 1506 1503 1503 1491 1495 1496 1496 1505 1493 1486 1504 1483 1514 1494 1497 1501 1493 1490 1510 1494 1494 1495 1494 1486 1495 1506 1506 1507 1502 1498 1510 1501 1500 1505 1492 1486 1501 1496 1501 1521 1510 1498 Assume that the number of times the handles have been used to lift the bottles before they break follows a normal distribution. You want to test to see if there is enough evidence that the mean number of times the handles have been used to lift the bottles before they break is more than 1500. -Referring to Scenario 9-11-B, for a test with a level of significance of 0.01, the critical value would be ________.

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, the null hypothesis would be rejected if a 10% probability of committing a Type I error is allowed.

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, what critical value should the company officials use to determine the rejection region?

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

The power of a statistical test is

Suppose we wish to test $H _ { 0 } : \mu \leq 47 \text { versus } H _ { 1 } : \mu > 47$ . What will result if we conclude that the mean is greater than 47 when its true value is really 52?