Question 1

Identify the power of the test from the following probabilities.

Accepted Answer

A)  P(rejecting H0 | H0 is true) 
B)  P(not rejecting H0 | H0 is false) 
C)  P(rejecting H0 | H0 is false) 
D)  P(not rejecting H0 | H0 is true)

Question 2

For a two-sample test for means with the population variance being known, the Excel procedure used is the Excel z-test.

Accepted Answer

A) True 
 B)False

Question 3

What is the confidence coefficient when the level of significance is 0.03?

Accepted Answer

A)  0.9700 
B)  0.0376 
C)  0.7924 
D)  0.7776

Question 4

Which of the following is true about chi-square distribution?

Accepted Answer

A)  It is a special distribution and is denoted by (C2). 
B)  It is characterized by degrees of freedom. 
C)  It is computed using the Excel function CHISQ.INV.TEST. 
D)  It has a left-tail area equal to the expected value of the sample.

Question 5

Explain how to draw a conclusion for one- and two-tailed hypothesis tests. LO2: Compare and contrast the major types of hypothesis testing for one-sample tests
-Which of the following is true about one-tailed and two-tailed tests?

Accepted Answer

A)  For standard normal and t-distributions, which have a mean of zero, lower-tail critical values are negative and upper-tail critical values are positive. 
B)  For an upper one-tailed test, if the test statistic is greater than the critical value, the decision would be to fail to reject the null hypothesis. 
C)  For a lower one-tailed test, if the test statistic is less than the critical value, the decision would be to fail to reject the null hypothesis. 
D)  For a two-tailed test, if the test statistic is either greater than the upper critical value or less than the lower critical value, the decision would be to fail to reject the null hypothesis.

Question 6

Which of the following is true about determining the proper form of the hypotheses?

Accepted Answer

A)  H0 is statistically proved true while testing 
B)  failure to reject H0 proves H1 wrong 
C)  H0 is always assumed to be true in testing 
D)  H1 is always assumed to be true in testing

Question 7

A manufacturer wishes to determine if the average profit from the sale of his product exceeds $6,710. Which of the following is the appropriate hypothesis test?

Accepted Answer

A) H0: population mean profit from sale > $6,710 vs. H1: population mean profit from sale ≤ $6,710 B) H0: population mean profit from sale ≤ $6,710 vs. H1: population mean profit from sale > $6,710 C) H0: population mean profit from sale < $6,710 vs. H1: population mean profit from sale ≥ $6,710 D) H0: population mean profit from sale ≥ $6,710 vs. H1: population mean profit from sale < $6,710

Question 8

State the proper forms of hypotheses for two-sample hypothesis tests.
-For a lower-tail test, the p-value in the output from an Excel tool:

Accepted Answer

A)  is correct if the test-statistic is negative. 
B)  is the difference from 1.0 if the test-statistic is negative. 
C)  is correct if the test-statistic is zero. 
D)  is correct if the test-statistic is positive.

Question 9

If the alternative hypothesis includes the symbol <, the rejection region is in the upper tail.

Accepted Answer

A) True 
 B)False

Question 10

In a two-sample test for differences in means, the hypotheses are of the form:

Accepted Answer

A)  $ H_{0}: \mu_{1}-\mu_{2}\{\geq, \leq $, or $ =\} 0 $ 
$ H_{1}: \mu_{1}-\mu_{2}\{>,,_{1},< $, or $ =\} 0 $ 
$ H_{1}: \mu 1-\mu 2\{\leq, \geq $, or $ \neq\} 0 $

Question 11

Level of significance is the probability of:

Accepted Answer

A)  incorrectly rejecting an actually true null hypothesis. 
B)  correctly failing to reject an actually true null hypothesis. 
C)  incorrectly failing to reject an actually false null hypothesis. 
D)  correctly rejecting an actually false null hypothesis.

Question 12

Which of the following is a valid one-sample hypothesis test?

Accepted Answer

A)  H0: population parameter ≠ constant vs. H1: population parameter = constant 
B)  H0: population parameter > constant vs. H1: population parameter ≤ constant 
C)  H0: population parameter < constant vs. H1: population parameter ≥ constant 
D)  H0: population parameter = constant vs. H1: population parameter ≠ constant

Question 13

Which of the following probabilities gives the confidence coefficient?

Accepted Answer

A)  P(rejecting H0 | H0 is true) 
B)  P(not rejecting H0 | H0 is false) 
C)  P(rejecting H0 | H0 is false) 
D)  P(not rejecting H0 | H0 is true)

Question 14

Use the data given below to answer the following question(s).
The following extract from a manufacturer's database shows a sample of 10 suppliers, their transportation charges, and the estimated and actual total costs of supplying materials. (Note: Assume a significance level of 0.05 wherever necessary.) $$\begin{array} { | l | c | c | c | } 
\hline \text { Supp lier } & \begin{array} { c } 
\text { Transportation } \
\text { Charges }
\end{array} & \begin{array} { c } 
\text { Estimated Total } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Actual Total } \
\text { Cost }
\end{array} \
\hline \text { Peter } & 340 & 4,500 & 4,680 \
\hline \text { John } & 560 & 4,500 & 4,790 \
\hline \text { Martin } & 480 & 4,500 & 5,110 \
\hline \text { Philip } & 290 & 4,500 & 4,780 \
\hline \text { Mark } & 370 & 4,500 & 4,810 \
\hline \text { Thomas } & 520 & 4,500 & 4,770 \
\hline \text { Jaison } & 350 & 4,500 & 5,250 \
\hline \text { David } & 430 & 4,500 & 4,930 \
\hline \text { Carter } & 510 & 4,500 & 5,010 \
\hline \text { Leonard } & 270 & 4,500 & 4,810 \
\hline
\end{array}$$
-Conduct the appropriate type of one-sample test-statistic to determine whether the average transportation charge is less than $430. Apply a decision rule using the observed level of significance and draw a conclusion.

Accepted Answer

The answer of Use the data given below to answer...

Question 15

Use the data given below to answer the following question(s).
In a lower one-tailed hypothesis test, chosen level of significance = 0.10, sample size = 55, and t- test statistic = -1.76.
-Which of the following is the conclusion?

Accepted Answer

A)  This is a high probability and the conclusion is difficult. 
B)  The null hypothesis is rejected. 
C)  There are many sampling errors. 
D)  The null hypothesis cannot be rejected.

Question 16

The confidence coefficient is denoted by:

Accepted Answer

A)  α 
B)  1 - β 
C)  β 
D)  1 - α

Question 17

Use the data given below to answer the following question(s).
The following extract from a manufacturer's database shows a sample of 10 suppliers, their transportation charges, and the estimated and actual total costs of supplying materials. (Note: Assume a significance level of 0.05 wherever necessary.) $$\begin{array} { | l | c | c | c | } 
\hline \text { Supp lier } & \begin{array} { c } 
\text { Transportation } \
\text { Charges }
\end{array} & \begin{array} { c } 
\text { Estimated Total } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Actual Total } \
\text { Cost }
\end{array} \
\hline \text { Peter } & 340 & 4,500 & 4,680 \
\hline \text { John } & 560 & 4,500 & 4,790 \
\hline \text { Martin } & 480 & 4,500 & 5,110 \
\hline \text { Philip } & 290 & 4,500 & 4,780 \
\hline \text { Mark } & 370 & 4,500 & 4,810 \
\hline \text { Thomas } & 520 & 4,500 & 4,770 \
\hline \text { Jaison } & 350 & 4,500 & 5,250 \
\hline \text { David } & 430 & 4,500 & 4,930 \
\hline \text { Carter } & 510 & 4,500 & 5,010 \
\hline \text { Leonard } & 270 & 4,500 & 4,810 \
\hline
\end{array}$$
-Conduct the appropriate type of one-sample test-statistic to determine whether the average transportation charge is less than $430.

Accepted Answer