Question 1

The rejection and nonrejection regions are divided by a point called the critical value.

Accepted Answer

A) True 
 B)False

Question 2

Ophelia O'Brien, VP of Consumer Credit of Credit First Banks (CFB), monitors the default rate on personal loans at the CFB member banks.One of her standards is "no more than 5% of personal loans should be in default." On each Friday, the default rate is calculated for a sample of 500 personal loans.Last Friday's sample contained 30 defaulted loans.Ophelia's null hypothesis is ___.

Accepted Answer

A) p > 0.05 
B) p ≤ 0.05 
C) n = 30 
D) n = 500 
E) n = 0.05 
A) p > 0.05 
B) p ≤ 0.05 
C) n = 30 
D) n = 500 
E) n = 0.05

Question 3

The executives of CareFree Insurance, Inc.feel that "a majority of our employees perceive a participatory management style at CareFree." A random sample of 200 CareFree employees is selected to test this hypothesis at the 0.05 level of significance.Eighty employees rate the management as participatory.The appropriate decision is ___.

Accepted Answer

A) do not reject the null hypothesis 
B) reject the null hypothesis 
C) reduce the sample size 
D) increase the sample size 
E) do nothing 
A) do not reject the null hypothesis 
B) reject the null hypothesis 
C) reduce the sample size 
D) increase the sample size 
E) do nothing

Question 4

Ophelia O'Brien, VP of Consumer Credit of Credit First Banks (CFB), monitors the default rate on personal loans at the CFB member banks.One of her standards is "no more than 5% of personal loans should be in default." On each Friday, the default rate is calculated for a sample of 500 personal loans.Last Friday's sample contained 30 defaulted loans.Using $\alpha$ = 0.10, the observed z value is ___.

Accepted Answer

A) 1.03 
B) -1.03 
C) 0.046 
D) -0.046 
E) 1.33 
A) 1.03 
B) -1.03 
C) 0.046 
D) -0.046 
E) 1.33

Question 5

When a false null hypothesis is rejected, the researcher has made a Type II error.

Accepted Answer

A) True 
 B)False

Question 6

A researcher is testing a hypothesis of a single mean.The critical z value for $\alpha$ = .05 and a two-tailed test is +1.96.The observed z value from sample data is -2.11.The decision made by the researcher based on this information is to ___ the null hypothesis.

Accepted Answer

A) reject 
B) not reject 
C) redefine 
D) change the alternate hypothesis into 
E) restate 
A) reject 
B) not reject 
C) redefine 
D) change the alternate hypothesis into 
E) restate

Question 7

Suppose the alternative hypothesis in a hypothesis test is: "the population mean is less than 60".If the sample size is 50 and alpha =.05, the critical value of z is ___.

Accepted Answer

A) 1.645 
B) -1.645 
C) 1.96 
D) -1.96 
E) 2.05 
A) 1.645 
B) -1.645 
C) 1.96 
D) -1.96 
E) 2.05

Question 8

The executives of CareFree Insurance, Inc.feel that "a majority of our employees perceive a participatory management style at CareFree." A random sample of 200 CareFree employees is selected to test this hypothesis at the 0.05 level of significance.Ninety employees rate the management as participatory.The appropriate decision is ___.

Accepted Answer

A) do not reject the null hypothesis 
B) reject the null hypothesis 
C) reduce the sample size 
D) increase the sample size 
E) maintain status quo 
A) do not reject the null hypothesis 
B) reject the null hypothesis 
C) reduce the sample size 
D) increase the sample size 
E) maintain status quo

Question 9

Generally speaking, the hypotheses that business researchers want to prove are stated in the alternative hypothesis.

Accepted Answer

A) True 
 B)False

Question 10

A political scientist wants to prove that a candidate is currently carrying more than 60% of the vote in the riding.She has her assistants randomly sample 200 eligible voters in the riding by telephone and only 90 declare that they support her candidate.The observed z value for this problem is ___.

Accepted Answer

A) -4.33 
B) 4.33 
C) 0.45 
D) -.31 
E) 2.33 
A) -4.33 
B) 4.33 
C) 0.45 
D) -.31 
E) 2.33

Question 11

Jennifer Cantu, VP of Customer Services at Tri-City Auto Insurance Inc., monitors the claims processing time of the claims division.Her standard includes "a mean processing time of 5 days or less." Each week, her staff checks for compliance by analyzing a random sample of 60 claims.Jennifer's null hypothesis is ___.

Accepted Answer

A) $\mu$ > 5 B) $\sigma$ > 5 C) n = 60 D) $\mu$ < 5 E) $\mu$ ≤ 5 A) $\mu$ > 5 B) $\sigma$ > 5 C) n = 60 D) $\mu$ < 5 E) $\mu$ ≤ 5

Question 12

Consider the following null and alternative hypotheses: Ho: µ$\le$ 67
Ha: µ > 67
These hypotheses ___.

Accepted Answer

A) indicate a one-tailed test with a rejection area in the right tail 
B) indicate a one-tailed test with a rejection area in the left tail 
C) indicate a two-tailed test 
D) are established incorrectly 
E) are not mutually exclusive 
A) indicate a one-tailed test with a rejection area in the right tail 
B) indicate a one-tailed test with a rejection area in the left tail 
C) indicate a two-tailed test 
D) are established incorrectly 
E) are not mutually exclusive

Question 13

In performing a hypothesis test where the null hypothesis is that the population mean is 4.8 against the alternative hypothesis that the population mean is not equal to 4.8, a random sample of 25 items is selected.The sample mean is 4.1 and the sample standard deviation is 1.4.It can be assumed that the population is normally distributed.The degrees of freedom associated with this are ___.

Accepted Answer

A) 25 
B) 24 
C) 26 
D) 2 
E) 1 
A) 25 
B) 24 
C) 26 
D) 2 
E) 1

Question 14

David Desreumaux, VP of Human Resources of Maritime Boat Manufacturing (MBM), is reviewing the employee training programs of MBM factories.Based on a recent census of personnel, David knows that the variance of worker training time in New Brunswick is 8, and he wonders if the variance in Nova Scotia is the same number.His staff randomly selected personnel files for 15 workers in Nova Scotia, and determined that their mean training time was 25 hours and that the standard deviation was 4 hours.Assume that worker training time is normally distributed in the population.Using $\alpha$ = 0.10, the observed value of chi-square is ___.

Accepted Answer

A) 28.00 
B) 30.00 
C) 56.00 
D) 60.00 
E) 65.00 
A) 28.00 
B) 30.00 
C) 56.00 
D) 60.00 
E) 65.00

Question 15

Ophelia O'Brien, VP of Consumer Credit of Credit First Banks (CFB), monitors the default rate on personal loans at the CFB member banks.One of her standards is "no more than 5% of personal loans should be in default." On each Friday, the default rate is calculated for a sample of 500 personal loans.Last Friday's sample contained 38 defaulted loans.Using$\alpha$= 0.10, the appropriate decision is ___.

Accepted Answer

A) reduce the sample size 
B) increase the sample size 
C) reject the null hypothesis 
D) do not reject the null hypothesis 
E) do nothing 
A) reduce the sample size 
B) increase the sample size 
C) reject the null hypothesis 
D) do not reject the null hypothesis 
E) do nothing

Question 16

Whenever hypotheses are established such that the alternative hypothesis is ">", then this would be a two-tailed test.

Accepted Answer

A) True 
 B)False

Question 17

The probability of committing a Type I error is called the power of the test.

Accepted Answer

A) True 
 B)False

Question 18

The first step in testing a hypothesis is to establish a true null hypothesis and a false alternative hypothesis.

Accepted Answer

A) True 
 B)False

Question 19

The diameter of 3.5 centimetre discs is normally distributed.Periodically, quality control inspectors at Winnipeg Discs randomly select a sample of 16 discs.If the mean diameter of the discs is too large or too small the disc punch is shut down for adjustment; otherwise, the punching process continues.The last sample showed a mean and standard deviation of 3.55 and 0.08 centimetres, respectively.Using $\alpha$= 0.05, the appropriate decision is ___.

Accepted Answer

A) reject the null hypothesis and shut down the punch 
B) reject the null hypothesis and do not shut down the punch 
C) do not reject the null hypothesis and shut down the punch 
D) do not reject the null hypothesis and do not shut down the punch 
E) do nothing 
A) reject the null hypothesis and shut down the punch 
B) reject the null hypothesis and do not shut down the punch 
C) do not reject the null hypothesis and shut down the punch 
D) do not reject the null hypothesis and do not shut down the punch 
E) do nothing

Question 20

The diameter of 3.5 centimetre discs is normally distributed.Periodically, quality control inspectors at Winnipeg Discs randomly select a sample of 16 discs.If the mean diameter of the discs is too large or too small the disc punch is shut down for adjustment; otherwise, the punching process continues.The null hypothesis is ___.

Accepted Answer

A) n $\neq$ 16 
B) n = 16 
C) $\mu$= 3.5 
D) $\mu$$\neq$ 3.5 
E) $\mu$ ≥ 3.5 
A) n $\neq$ 16 
B) n = 16 
C) $\mu$= 3.5 
D) $\mu$$\neq$ 3.5 
E) $\mu$ ≥ 3.5

The rejection and nonrejection regions are divided by a point called the critical value.

When a false null hypothesis is rejected, the researcher has made a Type II error.

A researcher is testing a hypothesis of a single mean.The critical z value for $\alpha$ = .05 and a two-tailed test is +1.96.The observed z value from sample data is -2.11.The decision made by the researcher based on this information is to ___ the null hypothesis.

Suppose the alternative hypothesis in a hypothesis test is: "the population mean is less than 60".If the sample size is 50 and alpha =.05, the critical value of z is ___.

Generally speaking, the hypotheses that business researchers want to prove are stated in the alternative hypothesis.

A political scientist wants to prove that a candidate is currently carrying more than 60% of the vote in the riding.She has her assistants randomly sample 200 eligible voters in the riding by telephone and only 90 declare that they support her candidate.The observed z value for this problem is ___.

Consider the following null and alternative hypotheses: H_o: µ $\le$ 67 H_a: µ > 67 These hypotheses ___.

Whenever hypotheses are established such that the alternative hypothesis is ">", then this would be a two-tailed test.

The probability of committing a Type I error is called the power of the test.

The first step in testing a hypothesis is to establish a true null hypothesis and a false alternative hypothesis.

Introduction to Statistics

Charts and Graphs

Descriptive Statistics

Probability

Discrete Distributions

Continuous Distributions

Sampling and Sampling Distributions

Statistical Inference: Estimation for Single Populations

Statistical Inferences About Two Populations

Analysis of Variance and Design of Experiments

Simple Regression Analysis and Correlation

Multiple Regression Analysis

Building Multiple Regression Models

Time-Series Forecasting and Index Numbers

Analysis of Categorical Data

Nonparametric Statistics

Statistical Quality Control

Decision Analysis

Filters

Exam 9: Statistical Inference: Hypothesis Testing for Single Populations

The rejection and nonrejection regions are divided by a point called the critical value.

When a false null hypothesis is rejected, the researcher has made a Type II error.

A researcher is testing a hypothesis of a single mean.The critical z value for α\alphaα = .05 and a two-tailed test is +1.96.The observed z value from sample data is -2.11.The decision made by the researcher based on this information is to ___ the null hypothesis.

Suppose the alternative hypothesis in a hypothesis test is: "the population mean is less than 60".If the sample size is 50 and alpha =.05, the critical value of z is ___.

Generally speaking, the hypotheses that business researchers want to prove are stated in the alternative hypothesis.

A political scientist wants to prove that a candidate is currently carrying more than 60% of the vote in the riding.She has her assistants randomly sample 200 eligible voters in the riding by telephone and only 90 declare that they support her candidate.The observed z value for this problem is ___.

Consider the following null and alternative hypotheses: Ho: µ ≤\le≤ 67 Ha: µ > 67 These hypotheses ___.

Whenever hypotheses are established such that the alternative hypothesis is ">", then this would be a two-tailed test.

The probability of committing a Type I error is called the power of the test.

The first step in testing a hypothesis is to establish a true null hypothesis and a false alternative hypothesis.

Introduction to Statistics

Charts and Graphs

Descriptive Statistics

Probability

Discrete Distributions

Continuous Distributions

Sampling and Sampling Distributions

Statistical Inference: Estimation for Single Populations

Statistical Inferences About Two Populations

Analysis of Variance and Design of Experiments

Simple Regression Analysis and Correlation

Multiple Regression Analysis

Building Multiple Regression Models

Time-Series Forecasting and Index Numbers

Analysis of Categorical Data

Nonparametric Statistics

Statistical Quality Control

Decision Analysis

Filters

A researcher is testing a hypothesis of a single mean.The critical z value for $\alpha$ = .05 and a two-tailed test is +1.96.The observed z value from sample data is -2.11.The decision made by the researcher based on this information is to ___ the null hypothesis.

Consider the following null and alternative hypotheses: H_o: µ $\le$ 67 H_a: µ > 67 These hypotheses ___.