Question 1

The level of significance indicates the probability of rejecting a false null hypothesis.

Accepted Answer

A) True 
 B)False

Question 2

The larger the p-value,the more we doubt the null hypothesis.

Accepted Answer

A) True 
 B)False

Question 3

If you live in California,the decision to buy earthquake insurance is an important one.A survey revealed that only 133 of 337 randomly selected residences in one California county were protected by earthquake insurance.Calculate the appropriate test statistic to test the claim that less than 40% of the residents in the county are protected by earthquake insurance.

Accepted Answer

A) 0.20 
B) 0.40 
C) -0.13 
D) -0.20 
E) -0.40 
A) 0.20 
B) 0.40 
C) -0.13 
D) -0.20 
E) -0.40

Question 4

A null hypothesis is not rejected at given level of significance.As the assumed value of the mean gets further away from the true population mean,the type II error will _____________.

Accepted Answer

A) Increase 
B) Decrease 
C) Stay the same 
D) Randomly fluctuate 
A) Increase 
B) Decrease 
C) Stay the same 
D) Randomly fluctuate

Question 5

A cereal manufacturer is concerned that the boxes of cereal not be under filled or overfilled.Each box of cereal is supposed to contain 13 ounces of cereal.A random sample of 31 boxes is tested.The average weight is 12.58 ounces and the standard deviation is 0.25 ounces.What is the critical value for testing these hypotheses at $\alpha$ = .001.

Accepted Answer

A) 1.28 
B) 1.645 
C) 2.575 
D) 3.09 
E) 3.291 
A) 1.28 
B) 1.645 
C) 2.575 
D) 3.09 
E) 3.291

Question 6

Last year,KAAA's share of the 6 pm news audience was approximately equal to,but not greater than,25 percent.This station's advertising department believes the current audience share is higher than last year's 25 percent share.In an attempt to substantiate this belief,the station surveyed a random sample of 400 6 pm viewers and found that 146 watched KAAA.Calculate the appropriate test statistic to test the hypotheses.

Accepted Answer

A) -5.31 
B) -4.69 
C) 3.21 
D) 4.69 
E) 5.31 
A) -5.31 
B) -4.69 
C) 3.21 
D) 4.69 
E) 5.31

Question 7

A major car manufacturer wants to test a new catalytic converter to determine whether it meets new air pollution standards.The mean emission of all converters of this type must be less than 20 parts per million of carbon.Ten (10)converters are manufactured for testing purposes and their emission levels are measured with a mean of 17.17 and a standard deviation of 2.98.Calculate the appropriate test statistic to test the hypotheses.

Accepted Answer

A) 3.00 
B) 9.50 
C) -0.95 
D) -3.00 
E) -9.50 
A) 3.00 
B) 9.50 
C) -0.95 
D) -3.00 
E) -9.50

Question 8

According to a national survey,the average commuting time for people who commute to a city with a population of 1 to 3 million is 19.0 minutes.Suppose a researcher lives in a city with a population of 2.4 million and wants to test this claim in her city.Taking a random sample of 20 commuters she calculates a mean time of 19.346 minutes and a standard deviation of 2.842 minutes.What is the critical value for $\alpha$ = .10 to test the hypotheses.

Accepted Answer

A) 1.729 
B) 1.725 
C) 1.328 
D) 1.325 
E) 1.645 
A) 1.729 
B) 1.725 
C) 1.328 
D) 1.325 
E) 1.645

Question 9

A test statistic is computed from sample data in hypothesis testing and is used in making a decision about whether or not to reject the null hypothesis.

Accepted Answer

A) True 
 B)False

Question 10

When testing a hypothesis about a single mean,if the sample size is 51,and the population standard deviation is known,the correct test statistic to use is ___________.

Accepted Answer

A) $\chi$ 
B) Z 
C) t 
D) p-value 
A) $\chi$ 
B) Z 
C) t 
D) p-value

Question 11

In an early study,researchers at an Ivy University found that 33% of the freshmen had received at least one A in their first semester.Administrators are concerned that grade inflation has caused this percentage to increase.In a more recent study,of a random sample of 500 freshmen,185 had at least one A in their first semester.Calculate the appropriate test statistic to test the hypotheses.

Accepted Answer

A) 1.853 
B) 1.157 
C) 1.902 
D) 2.710 
E) -1.902 
A) 1.853 
B) 1.157 
C) 1.902 
D) 2.710 
E) -1.902

Question 12

In a bottling process,a manufacturer will lose money if the bottles contain either more or less than is claimed on the label.Suppose a quality manager for a steak sauce company is interested in testing whether the mean number of ounces of steak sauce per restaurant size bottle differs from the labeled amount of 20 ounces.The manager samples nine bottles,measures the weight of their contents,and finds the sample mean is 19.7 ounces and the sample standard deviation is 0.3 ounces.Calculate the appropriate test statistic to test the hypotheses.

Accepted Answer

A) 3.00 
B) 1.00 
C) -9.00 
D) -1.00 
E) -3.00 
A) 3.00 
B) 1.00 
C) -9.00 
D) -1.00 
E) -3.00

Question 13

For a hypothesis test about a population proportion or mean,if the level of significance is less than the p-value,the null hypothesis is rejected.

Accepted Answer

A) True 
 B)False

Question 14

__________is the probability of not rejecting H0when H0 is false.

Accepted Answer

A) Type I error 
B) Type II error 
C) Random error 
D) $\alpha$ 
A) Type I error 
B) Type II error 
C) Random error 
D) $\alpha$

Question 15

The _____ hypothesis is not rejected unless there is sufficient sample evidence to do so.

Accepted Answer

A) Research 
B) Alternative 
C) Null 
D) Chi-square 
A) Research 
B) Alternative 
C) Null 
D) Chi-square

Question 16

A survey of the wine market has shown that the preferred wine for 17% of Americans is merlot.A wine producer in California where merlot is produced believes the figure is higher in California.She contacts a random sample of 550 California residents and asks which wine they purchase most often.Suppose 115 replied that merlot was the primary wine.Calculate the p-value associated with the test statistic.

Accepted Answer

A) .0146 
B) .0122 
C) .0073 
D) .1335 
E) .0244 
A) .0146 
B) .0122 
C) .0073 
D) .1335 
E) .0244

Question 17

A manufacturer of salad dressings uses machines to dispense liquid ingredients into bottles that move along a filling line.The machine that dispenses dressing is working properly when 8 ounces are dispensed.The standard deviation of the process is 0.15 ounces.A sample of 48 bottles is selected periodically,and the filling line is stopped if there is evidence that the mean amount dispensed is different from 8 ounces.Suppose that the mean amount dispensed in a particular sample of 48 bottles is 7.983 ounces.Calculate a confidence interval to test the hypotheses at $\alpha$ = .05.

Accepted Answer

A) [7.947 8.019] 
B) [7.941 8.025] 
C) [7.933 8.033] 
D) [7.955 8.011] 
E) [7.916 8.050] 
A) [7.947 8.019] 
B) [7.941 8.025] 
C) [7.933 8.033] 
D) [7.955 8.011] 
E) [7.916 8.050]

Question 18

Testing H0: µ $\le$ .95 versus HA: µ > .95 when   = .99,s = .12,and n = 24 at alpha = .05,we reject H0.(Assume a normally distributed population. )

Accepted Answer

A) True 
 B)False

Question 19

A cereal manufacturer is concerned that the boxes of cereal not be under filled or overfilled.Each box of cereal is supposed to contain 13 ounces of cereal.A random sample of 31 boxes is tested.The average weight is 12.58 ounces and the standard deviation is 0.25 ounces.Calculate the test statistic to test these hypotheses.

Accepted Answer

A) 9.35 
B) -9.35 
C) 4.68 
D) -4.68 
E) -1.68 
A) 9.35 
B) -9.35 
C) 4.68 
D) -4.68 
E) -1.68

Question 20

It is estimated that the average person in the US uses 123 gallons of water per day.Some environmentalists believe this figure is too high and conducted a survey of 40 randomly selected Americans.They find a mean of 113.03 gallons and a standard deviation of 25.99 gallons.Calculate the appropriate test statistic to test the hypotheses.

Accepted Answer

A) -0.38 
B) 2.43 
C) 0.38 
D) -15.34 
E) -2.43 
A) -0.38 
B) 2.43 
C) 0.38 
D) -15.34 
E) -2.43

The level of significance indicates the probability of rejecting a false null hypothesis.

The larger the p-value,the more we doubt the null hypothesis.

A null hypothesis is not rejected at given level of significance.As the assumed value of the mean gets further away from the true population mean,the type II error will _____________.

A test statistic is computed from sample data in hypothesis testing and is used in making a decision about whether or not to reject the null hypothesis.

When testing a hypothesis about a single mean,if the sample size is 51,and the population standard deviation is known,the correct test statistic to use is ___________.

For a hypothesis test about a population proportion or mean,if the level of significance is less than the p-value,the null hypothesis is rejected.

__________is the probability of not rejecting H₀when H₀ is false.

The _____ hypothesis is not rejected unless there is sufficient sample evidence to do so.

An Introduction to Business Statistics

Descriptive Statistics: Tabular and Graphical Methods

Descriptive Statistics: Numerical Methods

Probability

Discrete Random Variables

Continuous Random Variables

Sampling and Sampling Distributions

Confidence Intervals

Statistical Inferences Based on Two Samples

Experimental Design and Analysis of Variance

Chi-Square Tests

Simple Linear Regression Analysis

Multiple Regression

Model Building and Model Diagnostics

Time Series Forecasting

Process Improvement Using Control Charts

Nonparametric Methods

Decision Theory

Filters

Exam 9: Hypothesis Testing

The level of significance indicates the probability of rejecting a false null hypothesis.

The larger the p-value,the more we doubt the null hypothesis.

A null hypothesis is not rejected at given level of significance.As the assumed value of the mean gets further away from the true population mean,the type II error will _____________.

A test statistic is computed from sample data in hypothesis testing and is used in making a decision about whether or not to reject the null hypothesis.

When testing a hypothesis about a single mean,if the sample size is 51,and the population standard deviation is known,the correct test statistic to use is ___________.

For a hypothesis test about a population proportion or mean,if the level of significance is less than the p-value,the null hypothesis is rejected.

__________is the probability of not rejecting H0when H0 is false.

The _____ hypothesis is not rejected unless there is sufficient sample evidence to do so.

Testing H0: µ ≤\le≤ .95 versus HA: µ > .95 when = .99,s = .12,and n = 24 at alpha = .05,we reject H0.(Assume a normally distributed population. )

An Introduction to Business Statistics

Descriptive Statistics: Tabular and Graphical Methods

Descriptive Statistics: Numerical Methods

Probability

Discrete Random Variables

Continuous Random Variables

Sampling and Sampling Distributions

Confidence Intervals

Statistical Inferences Based on Two Samples

Experimental Design and Analysis of Variance

Chi-Square Tests

Simple Linear Regression Analysis

Multiple Regression

Model Building and Model Diagnostics

Time Series Forecasting

Process Improvement Using Control Charts

Nonparametric Methods

Decision Theory

Filters

__________is the probability of not rejecting H₀when H₀ is false.