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Business Statistics and Research Methods ≫ Research ≫ Hypothesis testing

Hypothesis testing MCQ Quiz - Objective Question with Answer for Hypothesis testing -
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Question 1: Download PDF ››

Goodness of fit of a distribution is tested by

Options:

1. t - test

2. F - test

3. Chi - square test

4. Z - test

Correct Answer: Option 3 (Solution Below)

Solution:
The goodness of fit:

The goodness of fit test is a statistical hypothesis test to see how well sample data fit a distribution from a population withStart Learning
a normal
distribution.
Put differently, this test shows if your sample data represents the data you would expect to find in the actual population or if it is somehow
skewed.
Goodness-of-fit establishes the discrepancy between the observed values and those that would be expected of the model in a normal
distribution case.
There are multiple methods for determining goodness-of-fit. Some of the most popular methods used in statistics include the
chi-square, the Kolmogorov-Smirnov test, the Anderson-Darling test, and the Shapiro-Wilk test.
Goodness-of-fit tests are often used in business decision making. In order to calculate a chi-square goodness-of-fit, it is necessary to first
state the null hypothesis and the alternative hypothesis, choose a significance level (such as α = 0.5) and determine the critical value.

1. The most common goodness-of-fit test is the chi-square test, typically used for discrete distributions.
2. The chi-square test is used exclusively for data put into classes (bins), and it requires a sufficient sample size in order to produce
accurate results.
3. Goodness-of-fit tests are commonly used to test for the normality of residuals or to determine whether two samples are gathered from
identical distributions.

Thus, option 3 is the correct answer.

1. T-Test: 

The t-test tells you how significant the differences between groups are; In other words it lets you know if those differences (measured in
means) could have happened by chance.
 The t-test is one of many tests used for the purpose of hypothesis testing in statistics.

2. F Test: 

An F-test is conducted by the researcher on the basis of the F statistic.

The F statistic is defined as the ratio between the two independent chi-square variates that are divided by their respective degree of
freedom.
 The F-test follows the Snedecor’s F- distribution. The F-test is used by a researcher in order to carry out the test for the equality of the
two population variances.
If a researcher wants to test whether or not two independent samples have been drawn from a normal population with the Start sameLearning
variability, then he generally employs the F-test.
The F-test is also used by the researcher to determine whether or not the two independent estimates of the population variances are
homogeneous in nature.

3. Z Test: 

A Z-test is a type of hypothesis test—a way for you to figure out if results from a test are valid or repeatable.
For example, if someone said they had found a new drug that cures cancer, you would want to be sure it was probably true.
A hypothesis test will tell you if it’s probably true, or probably not true. A Z test is used when your data is approximately normally
distributed (i.e. the data has the shape of a bell curve when you graph it).

Question 2: Download PDF ››

Match the items of List - II with the items of List - I and select the code of correct matching
List - I List - II
(i) Testing the Start Learning
significance of the
(a) Chi-
differences of the
square
mean values among
Test
more than two sample
groups.
(b) (ii) Testing the
ANOVA goodness of fit of a
(F-test) distribution
(iii) Testing the
significance of the
(c) Z -
difference of the mean

test
values between two
large sized samples
(iv) Testing the
significance of the
difference of the mean

(d) t - values between two

test small sized samples
when population

standard deviation is
not available

Options:

1. (a) - (i), (b) - (ii), (c) - (iii), (d) - (iv)

2. (a) - (iv), (b) - (iii), (b) - (ii), (d) - (i)

3. (a) - (i), (b) - (ii), (c) - (iv), (d) - (iii)

4. (a) - (ii), (b) - (i), (c) - (iii), (d) - (iv)

Correct Answer: Option 1 (Solution Below)
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Solution:

Option 1 is the correct sequence.

Chi-square Test tests the significance of the differences in the mean values among more than two sample groups.
ANOVA (F-test) tests the goodness of fit of a distribution.
Z – test- Testing the significance of the difference of the mean values between two large-sized samples.
t-test- Testing the significance of the difference of the mean values between two small-sized samples when population standard deviation
is not available.

The Chi-Square Test of Independence determines whether there is an association between categorical variables (i.e., whether the variables
are independent or related). It is a nonparametric test.

The one-way analysis of variance (ANOVA) is used to determine whether there are any statistically significant differences between the
means of three or more independent (unrelated) groups

A z-test is a statistical test to determine whether two population means are different when the variances are known and the sample size is
large. It can be used to test hypotheses in which the z-test follows a normal distribution. A z-statistic, or z-score, is a number representing the
result from the z-test

A t-test is a statistical test that is used to compare the means of two groups. It is often used in hypothesis testing to determine whether a
process or treatment actually has an effect on the population of interest, or whether two groups are different from one another.

Question 3: Download PDF ››

Match the tests with suitable situations of their application for hypothesis-testing:
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  Test   Situation

 Comparing the differences in the mean

(a)  z-test (i)  values of more than two sample groups

 (Parametric data)

 Testing the significance of the

difference

(b)  ANOVA (ii)  between averages of two large-sized

sample

 groups (Parametric data)

 Comparing the differences in the mean

 Chi-Square values

(c) (iii)
Test  of more than two sample groups (Non - 

 parametric data)

 Testing the significance of the

 Kruskal -
d) (iv) association

Wallis
 between two attributes

Choose the correct option from those given below 

Options:

1. (a) - (i), (b) - (ii), (c) - (iii), (d) - (iv)

2. (a) - (ii), (b) - (i), (c) - (iv), (d) - (iii)

 3. (a) - (ii), (b) - (iii), (c) - (i), (d) - (iv)

4. (a) - (i), (b) - (iv), (c) - (ii), (d) - (iii) Start Learning

Correct Answer: Option 2 (Solution Below)

Solution:

The following are the explanation for the correct match:

Test Situation

1.  A z-test is a statistical test to determine whether two

population means are different when the variances
are known and the sample size is large.
2. It can be used to test hypotheses in which the z-
 z-test
test follows a normal distribution. 
3. Testing the significance of the difference

 between averages of two large-sized sample

 groups (Parametric data)

1.  Analysis of variance (ANOVA) is a collection of

statistical models and their associated estimation
procedures (such as the "variation" among and
between groups) used to analyze the differences
 ANOVA
among group means in a sample.
2. Comparing the differences in the mean

 values of more than two sample groups

 (Parametric data)

 Chi- 1. The Chi-Square Test of Independence determines

Square whether there is an association between categorical
Test variables (i.e., whether the variables are
independent or related).
 2. It is a nonparametric test.
3. This test is also known as the Chi-Square Test of
Association. Start Learning
4. Testing the significance of the association

 between two attributes

1.  The Kruskal-Wallis H test (sometimes also called

the "one-way ANOVA on ranks") is a rank-based
nonparametric test that can be used to determine if
 Kruskal there are statistically significant differences between
- Wallis two or more groups of an independent variable on a
continuous or ordinal dependent variable.
2. Comparing the differences in the mean values

 of more than two sample groups.

Question 4:
Goodness of fit of a distribution is tested by
Start Learning
Options:

1. t - test

2. F - test

3. Chi - square test

4. Z - test

Correct Answer: Option 3 (Solution Below)

Solution:

The goodness of fit:

The goodness of fit test is a statistical hypothesis test to see how well sample data fit a distribution from a population with a normal
distribution.
Put differently, this test shows if your sample data represents the data you would expect to find in the actual population or if it is somehow
skewed.
Goodness-of-fit establishes the discrepancy between the observed values and those that would be expected of the model in a normal
distribution case.
There are multiple methods for determining goodness-of-fit. Some of the most popular methods used in statistics include the
chi-square, the Kolmogorov-Smirnov test, the Anderson-Darling test, and the Shapiro-Wilk test.
Goodness-of-fit tests are often used in business decision making. In order to calculate a chi-square goodness-of-fit, it is necessary to first
state the null hypothesis and the alternative hypothesis, choose a significance level (such as α = 0.5) and determine the critical value.

1. The most common goodness-of-fit test is the chi-square test, typically used for discrete distributions.
2. The chi-square test is used exclusively for data put into classes (bins), and it requires a sufficient sample size in order to produce
accurate results.
 3. Goodness-of-fit tests are commonly used to test for the normality of residuals or to determine whether two samples are gathered from
identical distributions.
Start Learning
Thus, option 3 is the correct answer.

1. T-Test: 

The t-test tells you how significant the differences between groups are; In other words it lets you know if those differences (measured in
means) could have happened by chance.
 The t-test is one of many tests used for the purpose of hypothesis testing in statistics.

2. F Test: 

An F-test is conducted by the researcher on the basis of the F statistic.

The F statistic is defined as the ratio between the two independent chi-square variates that are divided by their respective degree of
freedom.
The F-test follows the Snedecor’s F- distribution. The F-test is used by a researcher in order to carry out the test for the equality of the
two population variances.
If a researcher wants to test whether or not two independent samples have been drawn from a normal population with the same
variability, then he generally employs the F-test.
The F-test is also used by the researcher to determine whether or not the two independent estimates of the population variances are
homogeneous in nature.

3. Z Test: 

A Z-test is a type of hypothesis test—a way for you to figure out if results from a test are valid or repeatable.
For example, if someone said they had found a new drug that cures cancer, you would want to be sure it was probably true.
A hypothesis test will tell you if it’s probably true, or probably not true. A Z test is used when your data is approximately normally
distributed (i.e. the data has the shape of a bell curve when you graph it).
Question 5:
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F-test is used to test the significance of the differences between/among

Options:

1. Two sample mean

2. More than two samples mean

3. Variance of two samples

4. (B) and (C)

Correct Answer: Option 4 (Solution Below)

Solution:

Hypothesis testing is a way to find out that the results of a survey or experiment are meaningful/true and dependent or not. The alternative
hypothesis assumes that there is some difference between the true mean and comparison value and the null hypothesis assumes that no
difference exists.

F-test:

F-test is any statistical test in which the test statistic has an F-distribution under the null hypothesis.
F-test of overall significance indicates whether your linear regression model provides a better fit to the data than a model that contains no
independent variables.
ANOVA is a way to find out if survey or experiment results are significant and it uses an F-test to determine whether the variability
between more than two sample means is larger than the variability of the observations within the groups.
F-test uses two sample variances, s1 and s2, by dividing them.
There result is always a positive number because variances are always positive.
The equation for calculating the F-test is; F= s21 / s22.
Therefore, F-test is used to test the significance of the differences between/among both (B) and (C).
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Question 6:
Which test we normally apply for Qualitative data ?

Options:

1. ‘t’ test

2. ‘F’ test

3. x2 chi-square test

4. ‘z’ test
Correct Answer: Option 3 (Solution Below)
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Solution:

Qualitative testing of data is about understanding the cognitive process of participants i.e. understanding how the interaction affects their
overall emotions and expectations.

x2 Chi-square test:

It is a statistical hypothesis test that compares two variables of a contingency test to check how they are related.
It is a nonparametric test and this test normally applies to qualitative data.
There are two types of chi-square test:

1. Chi-square goodness of fit test that determines if sample data matches with the population.
2. A chi-square test for independence tests to see whether the distribution of categorical variables differs from each other. 

Therefore, the x2 chi-square test normally applies to Qualitative data.

t-test:

It is used to compare the means of two groups.

It is used in hypothesis testing to find out whether a process actually has an effect on the population, or whether the groups are different
from one another.
A test is necessary for small sample sizes (n<30) where distributions are not normal.

F-test:

F-test is any statistical test in which the test statistic has an F-distribution under the null hypothesis.
F-test of overall significance indicates whether your linear regression model provides a better fit to the data than a model that contains no
independent variables.
F-test uses two sample variances, s1 and s2, by dividing them.
There result is always a positive number because variances are always positive.
z-test:
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This statistical technique is used to determine whether two populations are different from each other when variances are known.
This test can be used to test the hypothesis that follows a normal distribution.
When the sample size of the population is greater than equal to 30 i.e. n>=30 then a z-test will be used.

Question 7:
Match the following:

List - A List - B

a) Type I error i) Small standard error

b) Large sample ii) Non-parametric

c) Multiple
iii) False positive
regression

iv) One dependent

d) Chi-square test
variable

Options:

1. (a) - (iv), (b) - (i), (c) - (ii), (d) - (iii)

2. (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii)

 3. (a) - (ii), (b) - (iii), (c) - (i), (d) - (iv)
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4. (a) - (iii), (b) - (iv), (c) - (i), (d) - (ii)

Correct Answer: Option 2 (Solution Below)

Solution:

List - A List - B

Type I error is also known as

false positive and occurs
when a researcher incorrectly
rejects a true hypothesis.
a) Type I The probability of making a
error type I error is represented by
alpha level (α), which is the p-
value below which the
researcher rejects the null
hypothesis. 
 List - A List - B
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The standard error is inversely
proportional to sample size i.e.
the larger the sample size,
the smaller the standard
error because the statistic will
approach the actual value and
b) Large
vice-versa.
sample
In other words, with bigger
sample sizes the sample mean
becomes a more accurate
estimate of the parametric
mean, so the standard error of
the mean becomes smaller.

Multiple regression
represents the relationship
between multiple independent
(predictor) variables and one
dependent (criterion) variable.
A dependent variable is
modeled as a function of
c) Multiple
several independent variables
regression
with corresponding
coefficients, along with the
constant term.
It requires two or more
predictor variables and this is
why it is known as Multiple
regression.
 List - A List - B
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The Chi-square test is a non-
parametric tool designed to
analyze group differences
when the dependent variable is
measured at a nominal level.
d) Chi-
The Chi-square statistics
square
compare the size of any
test
discrepancies between the
expected results and the actual
results, given the size of the
sample and the number of
variables in the relationship.

Therefore, it is clear from the above explanation that option 2) is the correct answer.
Question 8:
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The error committed by rejecting an applicant who would have been successful on the job is called

Options:

1. True negative error

2. False negative error

3. False positive error

4. True positive error

Correct Answer: Option 2 (Solution Below)

Solution:

False negative error:

A false negative error is a test result that wrongly indicates a condition does not hold.
For example, when a person is guilty of a crime or when an applicant who can be successful on the job is rejected, these are false
negatives.
The condition "a person is guilty", or "an applicant can be successful" holds, but the test (the trial in the court of law or the interview) fails
to realize this condition, and wrongly decides that the person is not guilty or the applicant is not fit for the job.
A false negative error is a type II error occurring in a test where a single condition is checked and the result of the test is erroneous, that
the condition is absent.   

Therefore, the error committed by rejecting an applicant who would have been successful on the job is called a False negative error.
False positive error:

A false positive error is a result that indicates a given condition exists when it does not. Start Learning
For example, the conviction of an innocent person, or selection of an applicant thinking that he would be successful but in reality, he
would be not.
A false positive is a type I error where the test is checking a single condition and wrongly gives a positive decision.

True positive error:

A true positive is an outcome where the model correctly predicts the positive class.
For example, the umpire gives a batsman Not Out when he is Not Out.

True negative error:

A true negative error is an outcome where the model correctly predicts the negative class.
For example, the umpire gives a batsman Out when he is Out.

Question 9:
When null hypothesis is accepted, it can be assumed that proportions are ______ and the differences are due to chance.

Options:

1. Small

2. Large

3. Equal

4. Different
 Start Learning
Correct Answer: Option 2 (Solution Below)

Solution:

Null hypothesis:

A null hypothesis, also known as conjecture is a type of hypothesis that is used in statistics that proposes that there is no difference
between certain characteristics of a population.
The alternative hypothesis proposes that there is a difference. The alternative hypothesis is a direct contradiction of the null
hypothesis
A crucial step in null hypothesis testing is finding the likelihood of the sample result if the null hypothesis were true. This probability is
called the p-value.
A low p-value means that the sample result would be unlikely if the null hypothesis were true and leads to the rejection of the null
hypothesis.
A high p-value means that the sample result would be likely if the null hypothesis were true and leads to the retention of the null
hypothesis.

Therefore, when the null hypothesis is accepted, it can be assumed that proportions are large and the differences are due to chance.

A statistical hypothesis is tested using a four-step process:

1. The first step for the analyst is to state the two hypotheses so that only one can be right
2. The next step is to formulate an analysis plan that outlines how the data will be evaluated
3. The third step is to carry out the plan and physically analyze the sample data
4. The final step is to analyze the results and either reject the null hypothesis or fail to reject it (accepting null hypothesis) by claiming that
the observed differences are explainable by chance alone.
 Start Learning

Analysts look forward to rejecting the null hypothesis because doing so is a strong conclusion. 
That requires strong evidence in the form of an observed difference that is too large to be explained solely by chance.
Failing to reject the null hypothesis i.e. the results are explainable by chance alone is a weak conclusion because it allows that factors
other than chance may be at work but may not be strong enough to be detectable by the statistical test used. 

Question 10:
The method used to compare the means of more than two populations simultaneously is called

Options:

1. Testing of hypothesis
 2. Analysis of variance

3. Latin square design Start Learning

4. 'Z' test

Correct Answer: Option 2 (Solution Below)

Solution:

List I List II

Testing of the hypothesis is

an act in statistics whereby an
analyst tests an assumption
regarding a population
parameter.
a. Testing
The methodology applied by
of
the analyst depends on the
hypothesis
data used and the reason for
the analysis.
It is used to assess the
plausibility of a hypothesis by
using sample data.
 List I List II
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Analysis of variance
(ANOVA) is a collection of
statistical models and their
associated estimation
b.
procedures used to analyze
Analysis
the differences among means
of
in a sample.
variance 
It is the method used to
compare the means of more
than two populations
simultaneously.

A Latin square design is the

arrangement of t treatments,
each one repeated t times in
such a way that each
treatment appears only one
c. Latin
time in each row and each
square
column in the design.
design
The treatments are denoted by
Roman characters.
It is used to reduce systematic
errors due to rows and
columns.   

A z-test is a statistical test

used to determine whether two
population means are different
when variances are known
d. 'Z' test
and the sample size is large.
A z-score, or z-statistic, is a
number representing the result
from the z-test. 
Therefore, the method used to compare the means of more than two populations simultaneously is called Analysis of Variance.
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