Question 1

A market research firm has come up with two coupon designs that could be inserted into the envelopes that go out with the monthly statement to credit card customers. The coupons offer the customer an opportunity to become a member of a travel club. The research firm is interested in estimating the difference in proportion of customers who will join the club after receiving one or the other of the two coupons. To obtain this estimate, the research firm has sent out coupon design 1 to a random sample of 100 customers. A second random sample of 100 customers received coupon 2. For the first coupon, 11 customers joined the travel club, while 15 customers who received coupon 2 joined. Based upon this sample information, develop and interpret the desired 95 percent confidence interval estimate.

Accepted Answer

The parameter of interest in this situation is the difference in population proportions. The
general format for any confidence interval estimate is:
Point estimate ± critical value (standard error).  This indicates that we estimate the difference in proportions of redeemed coupons to be between -0.1331
and +0.0531. Thus, the range of possibilities for the difference in population proportions ranges from over
0.13 more for coupon 2 versus coupon 1 all the way to over 0.05 more for coupon 1 versus coupon 2.
Therefore, since the interval crosses zero, we are unable to conclude that a difference exists between the
two coupons with respect to the proportions that will be redeemed.

Question 2

Box and whisker plots are often useful for determining whether two populations have distributions that might be skewed.

Accepted Answer

A) True 
 B)False  True

Question 3

The NCAA is interested in estimating the difference in mean number of daily training hours for men and women athletes on college campuses. It wants 95 percent confidence and will select a sample of 10 men and 10 women for the study. The variances are assumed equal and the populations normally distributed. The sample results are:  Based on these sample data, the estimate for the standard deviation of the sampling distribution is found by taking the square root of the sum of the two sample variances.

Accepted Answer

A) True 
 B)False  False

Question 4

The t-distribution is still applicable even when there are small violations of the assumptions for the case when the variances for two populations are unknown. This is particularly true when the sample sizes are approximately equal.

Accepted Answer

A) True 
 B)False

Question 5

Two samples are said to be independent if they are collected at different points in time.

Accepted Answer

A) True 
 B)False

Question 6

The NCAA is interested in estimating the difference in mean number of daily training hours for men and women athletes on college campuses. It wants 95 percent confidence and will select a sample of 10 men and 10 women for the study. The variances are assumed equal and the populations normally distributed. The sample results are:  Based on these sample data, the critical value for developing the confidence interval is z = 1.96.

Accepted Answer

A) True 
 B)False

Question 7

The following information is based on independent random samples taken from two normally distributed populations having equal variances:  Based on the sample information, determine the 90% confidence interval estimate for the difference between the two population means.

Accepted Answer

A)   -6.54 ≤ (µ1 - µ2)  ≤ 0.54
B)   -4.25 ≤ (µ1 - µ2)  ≤ 1.25
C)   -5.98 ≤ (µ1 - µ2)  ≤ 1.88
D)   -2.25 ≤ (µ1 - µ2)  ≤ 5.25

Question 8

The following information is based on independent random samples taken from two normally distributed populations having equal variances:  Based on the sample information, determine the 95% confidence interval estimate for the difference between the two population means.

Accepted Answer

A)   -6.23 
B)   -4.81 
C)   -5.17 
D)   -3.25 < (µ1 - µ2)  < 17.25

Question 9

Descent, Inc., produces a variety of climbing and mountaineering equipment. One of its products is a traditional three-strand climbing rope. An important characteristic of any climbing rope is its tensile strength. Descent produces the three-strand rope on two separate production lines: one in Bozeman and the other in Challis. The Bozeman line has recently installed new production equipment. Descent regularly tests the tensile strength of its ropes by randomly selecting ropes from production and subjecting them to various tests. The most recent random sample of ropes, taken after the new equipment was installed at the Bozeman plant, revealed the following:  Descent's production managers are willing to assume that the population of tensile strengths for each plant is approximately normally distributed with equal variances. Based on the sample results, can Descent's managers conclude that there is a difference between the mean tensile strengths of ropes produced in Bozeman and Challis? Conduct the appropriate hypothesis test at the 0.05 level of significance.

Accepted Answer

A)   Because the calculated value of t = 0.896 is neither less than the lower tail critical value of t = -2.0167, nor greater than the upper tail critical value of t = 2.0167, do not reject the null hypothesis. Based on theseSample data, at the α = 0.05 level of significance there is not sufficient evidence to conclude that theAverage tensile strength of ropes produced at the two plants is different.
B)   Because the calculated value of t = 0.451 is neither less than the lower tail critical value of t = -2.0167, nor greater than the upper tail critical value of t = 2.0167, do not reject the null hypothesis. Based on theseSample data, at the α = 0.05 level of significance there is not sufficient evidence to conclude that theAverage tensile strength of ropes produced at the two plants is different.
C)   Because the calculated value of t = -2.8126 is less than the lower tail critical value of t = -2.0167, reject the null hypothesis. Based on these sample data, at the α = 0.05 level of significance there is sufficientEvidence to conclude that the average tensile strength of ropes produced at the two plants is different.
D)   Because the calculated value of t = 2.8126 is greater than the lower tail critical value of t = -2.0167, reject the null hypothesis. Based on these sample data, at the α = 0.05 level of significance there is sufficientEvidence to conclude that the average tensile strength of ropes produced at the two plants is different.

Question 10

When estimating the difference between two population means, when should the normal distribution be used and when should the t-distribution be used?

Accepted Answer

The answer of When estimating the difference between two population...

Question 11

A recent study posed the question about whether Japanese managers are more motivated than American managers. A randomly selected sample of each was administered the Sarnoff Survey of Attitudes Toward Life (SSATL), which measures motivation for upward mobility. The SSATL scores are summarized below.  Judging from the way the data were collected, which test would likely be most appropriate?

Accepted Answer

A)   Related samples t-test for mean difference
B)   Pooled-variance t-test for the difference in means
C)   Independent samples Z-test for the difference in means
D)   Related samples Z-test for mean difference

Question 12

All other things held constant, decreasing the level of confidence for a confidence interval estimate for the difference between two population means will result in a smaller margin of error.

Accepted Answer

A) True 
 B)False

Question 13

A major retail clothing store is interested in estimating the difference in mean monthly purchases by customers who use the store's in-house credit card versus using a Visa, Mastercard, or one of the other major credit cards. To do this, it has randomly selected a sample of customers who have made one or more purchases with each of the types of credit cards. The following represents the results of the sampling:  Suppose that the managers wished to test whether there is a statistical difference in the mean monthly purchases by customers using the two types of credit cards, using a significance level of .05, what is the value of the test statistic assuming the standard deviations are known?

Accepted Answer

A)   t = 3.49
B)   z = 11.91
C)   z = 2.86
D)   z = 3.49

Question 14

In conducting a hypothesis test for the difference between two population means where the standard deviations are known and the null hypothesis is: H0 : μA - μβ ≥ 0 What is the p-value assuming that the test statistic has been found to be z = 2.52?

Accepted Answer

A)   0.0059
B)   0.9882
C)   0.0118
D)   0.4941

Question 15

The NCAA is interested in estimating the difference in mean number of daily training hours for men and women athletes on college campuses. They want 95 percent confidence and will select a sample of 10 men and 10 women for the study. The sample results are:  Based on these data, the point estimate is .30 hours.

Accepted Answer

A) True 
 B)False

Question 16

A hypothesis test for the difference between two means is considered a two-tailed test when:

Accepted Answer

A)   the population variances are equal.
B)   the null hypothesis states that the population means are equal.
C)   the alpha level is 0.10 or higher.
D)   the standard deviations are unknown.

Question 17

Recently the managers for a large retail department store stated that a study has revealed that female shoppers spend on average 23.5 minutes longer in the store per visit than do male shoppers. Based on this information, the managers can be confident that female shoppers, as a population, do spend longer times in the store than do males shoppers, as a population.

Accepted Answer

A) True 
 B)False

Question 18

There have been complaints recently from homeowners in the north end claiming that their homes have been assessed at values that are too high compare with other parts of town. They say that the mean increase from last year to this year has been higher in their part of town than elsewhere. To test this, the assessor's office staff plans to select a random sample of north end properties (group 1) and a random sample of properties from other areas within the city (group 2) and perform a hypothesis test. The following sample information is available:  Assuming that the null hypothesis will be tested using an alpha level equal to 0.05, what is the value of the test statistic?

Accepted Answer

A)   z = 1.578
B)   t = 1.7011
C)   t = 0.2388
D)   t = 0.3944

Question 19

A paired sample study has been conducted to determine whether two populations have equal means. Twenty paired samples were obtained with the following sample results:  Based on these sample data and a significance level of 0.05, what conclusion should be made about the population means?

Accepted Answer

A)   Because t = 5.06 > 2.0930, reject the null hypothesis.
B)   Because t = 3.41 > 2.0930, reject the null hypothesis.
C)   Because t = 1.82 
D)   Because t = 2.02 < 2.0930, do not reject the null hypothesis.

Question 20

To find a confidence interval for the difference between the means of independent samples, when the variances are unknown but assumed equal, the sample sizes of the two groups must be the same.

Accepted Answer

A) True 
 B)False

Exam 10: Estimation and Hypothesis Testing for Two Population Parameters

Box and whisker plots are often useful for determining whether two populations have distributions that might be skewed.

The t-distribution is still applicable even when there are small violations of the assumptions for the case when the variances for two populations are unknown. This is particularly true when the sample sizes are approximately equal.

Two samples are said to be independent if they are collected at different points in time.

The following information is based on independent random samples taken from two normally distributed populations having equal variances: Based on the sample information, determine the 90% confidence interval estimate for the difference between the two population means.

The following information is based on independent random samples taken from two normally distributed populations having equal variances: Based on the sample information, determine the 95% confidence interval estimate for the difference between the two population means.

When estimating the difference between two population means, when should the normal distribution be used and when should the t-distribution be used?

All other things held constant, decreasing the level of confidence for a confidence interval estimate for the difference between two population means will result in a smaller margin of error.

In conducting a hypothesis test for the difference between two population means where the standard deviations are known and the null hypothesis is: H0 : μA - μβ ≥ 0 What is the p-value assuming that the test statistic has been found to be z = 2.52?

A hypothesis test for the difference between two means is considered a two-tailed test when:

A paired sample study has been conducted to determine whether two populations have equal means. Twenty paired samples were obtained with the following sample results: Based on these sample data and a significance level of 0.05, what conclusion should be made about the population means?

To find a confidence interval for the difference between the means of independent samples, when the variances are unknown but assumed equal, the sample sizes of the two groups must be the same.