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

TABLE 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 samples 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 Table 9-8, the parameter the company officials is interested in is:

Which of the following would be an appropriate null hypothesis?

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?

TABLE 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, it will continue to produce the older drug. 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 Table 9-4, if the level of significance had been chosen as 0.05, the company would market the new anesthetic.

TABLE 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 samples 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 Table 9-8, state the alternative hypothesis for this study.

TABLE 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 Table 9-7, the lowest level of significance at which the null hypothesis can be rejected is ________.

TABLE 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 samples 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 Table 9-8, the value of the probability of committing a Type II error β is 0.95.

If the p-value is less than α in a two-tail test,

TABLE 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: -Referring to Table 9-1, the null hypothesis would be rejected if a 1% probability of committing a Type I error is allowed.

The power of a test is measured by its capability of

TABLE 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: -Referring to Table 9-1, state the alternative hypothesis for this study.

The symbol for the probability of committing a Type II error of a statistical test is

TABLE 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 Table 9-9, the evidence proves beyond a doubt that the mean SAT score of the entering class this year is lower than previous years.

TABLE 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: -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 20 versus the alternative hypothesis that the mean of the population differs from 20, the null hypothesis could be rejected at a level of significance of 0.10.

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

If you know that the level of significance (α)of a test is 5%, you can tell that the probability of committing a Type II error (β)is

The marketing manager for an automobile manufacturer is interested in determining the proportion of new compact-car owners who would have purchased a side curtain air bag if it had been available for an additional cost of $300. The manager believes from previous information that the proportion is 0.30. Suppose that a survey of 200 new compact-car owners is selected and 79 indicate that they would have purchased the side curtain air bags. If you were to conduct a test to determine whether there is evidence that the proportion is different from 0.30, which test would you use?

The symbol for the level of significance of a statistical test is

TABLE 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, the student 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), the student 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 Table 9-2, what is the value of β?

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: = 52, S = 22. Suppose the alternative you wanted to test was H₁: μ < 60. State the correct rejection region for α = 0.05.