Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) A Type I error is committed when 1)

A) you don't reject a null hypothesis that is false.
B) you reject a null hypothesis that is true.
C) you don't reject a null hypothesis that is true.
D) you reject a null hypothesis that is false.

2) If a test of hypothesis has a Type I error probability ( ) of 0.01, it means that 2)

A) if the null hypothesis is true, you reject it 1% of the time.
B) if the null hypothesis is false, you reject it 1% of the time.
C) if the null hypothesis is false, you don't reject it 1% of the time.
D) if the null hypothesis is true, you don't reject it 1% of the time.

3) If the Type I error ( ) for a given test is to be decreased, then for a fixed sample size n, 3)
A) the Type II error ( ) will also decrease. B) a one-tail test must be utilized.
C) the power of the test will increase. D) the Type II error ( ) will increase.

4) If an economist wishes to determine whether there is evidence that mean family income in a 4)
community equals $50,000,
A) a two-tail test should be utilized.
B) a one-tail test should be utilized.
C) either a one-tail or two-tail test could be used with equivalent results.
D) None of the above.

5) If the p-value is less than in a two-tail test, 5)

A) the null hypothesis should not be rejected.
B) a one-tail test should be used.
C) the null hypothesis should be rejected.
D) no conclusion should be reached.

6) How many tissues should the Kimberly Clark Corporation package of Kleenex contain? 6)
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: X = 52, S = 22. Give the null and alternative hypotheses to determine if the number of
tissues used during a cold is less than 60.
A) H0 : X = 52 and H1 : X 52. B) H0 : µ 60 and H1 : µ > 60.
C) H0 : X 60 and H1 : X 52. D) H0 : µ 60 and H1 : µ < 60.

7) How many tissues should the Kimberly Clark Corporation package of Kleenex contain? 7)
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: X = 52, S = 22. Using the sample information provided, calculate the value of the test
statistic.
A) t = (52 - 60) / (22 / 10) B) t = (52 - 60) / (22 / 1002 )
C) t = (52 - 60) / (22 / 100) D) t = (52 - 60) / 22

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 8) How many tissues should the Kimberly Clark Corporation package of Kleenex contain? 8)
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: X = 52, S = 22. Suppose the alternative you wanted to test was H1 : µ < 60. State the
correct rejection region for = 0.05.
A) Reject H0 if t > 1.9842 or Z < -1.9842. B) Reject H0 if t < -1.9842.
C) Reject H0 if t > 1.6604. D) Reject H0 if t < -1.6604.

9) How many tissues should the Kimberly Clark Corporation package of Kleenex contain? 9)
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: X = 52, S = 22. Suppose the test statistic does fall in the rejection region at = 0.05.
Which of the following decisions is correct?
A) At = 0.10, you do not reject H0 . B) At = 0.05, you reject H0 .
C) At = 0.10, you reject H0 . D) At = 0.05, you do not reject H0 .

10) You have created a 95% confidence interval for µ with the result 10 µ 15. What decision will you 10)
make if you test H0 : µ = 16 versus H1 : µ 16 at = 0.05?
A) Reject H0 in favor of H1 .
B) Do not reject H0 in favor of H1 .
C) Fail to reject H0 in favor of H1 .
D) We cannot tell what our decision will be from the information given.

11) You have created a 95% confidence interval for µ with the result 10 µ 15. What decision will you 11)
make if we test H0 : µ = 16 versus H1 : µ 16 at = 0.10?
A) Reject H0 in favor of H1 .
B) Do not reject H0 in favor of H1 .
C) Fail to reject H0 in favor of H1 .
D) We cannot tell what our decision will be from the information given.

12) The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the 12)
club. She would now like to determine whether or not the mean age of her customers is greater
than 30. If so, she plans to alter the entertainment to appeal to an older crowd. If not, no
entertainment changes will be made. The appropriate hypotheses to test are
A) H0 : X 30 versus H1 : X > 30. B) H0 : µ 30 versus H1 : µ < 30.
C) H0 : X 30 versus H1 : X < 30. D) H0 : µ 30 versus H1 : µ > 30.

13) The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the 13)
club. She would now like to determine whether or not the mean age of her customers is greater
than 30. If so, she plans to alter the entertainment to appeal to an older crowd. If not, no
entertainment changes will be made. If she wants to have a level of significance at 0.01, what
rejection region should she use?
A) Reject H0 if t < -2.5758. B) Reject H0 if t > 2.3263.
C) Reject H0 if t > 2.5758. D) Reject H0 if t < -2.3263.

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 14) The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the 14)
club. She would now like to determine whether or not the mean age of her customers is greater
than 30. If so, she plans to alter the entertainment to appeal to an older crowd. If not, no
entertainment changes will be made. Suppose she found that the sample mean was 30.45 years and
the sample standard deviation was 5 years. If she wants to have a level of significance at 0.01, what
decision should she make?
A) Do not reject H0 .
B) Reject H0 .
C) Reject H1 .
D) We cannot tell what her decision should be from the information given.

15) The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the 15)
club. She would now like to determine whether or not the mean age of her customers is greater
than 30. If so, she plans to alter the entertainment to appeal to an older crowd. If not, no
entertainment changes will be made. Suppose she found that the sample mean was 30.45 years and
the sample standard deviation was 5 years. If she wants to have a level of significance at 0.01 what
conclusion can she make?
A) There is sufficient evidence that the mean age of her customers is not greater than 30.
B) There is not sufficient evidence that the mean age of her customers is not greater than 30.
C) There is not sufficient evidence that the mean age of her customers is greater than 30.
D) There is sufficient evidence that the mean age of her customers is greater than 30.

16) An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims 16)
that over the past 5 years, the mean daily revenue was $675 with a population standard deviation
of $75. A sample of 30 days reveals a daily mean revenue of $625. If you were to test the null
hypothesis that the daily mean revenue was $675, which test would you use?
A) Z test of a population mean B) t test of population mean
C) t test of a population proportion D) Z test of a population proportion

17) A survey claims that 9 out of 10 doctors recommend aspirin for their patients with headaches. To 17)
test this claim against the alternative that the actual proportion of doctors who recommend aspirin
is less than 0.90, a random sample of 100 doctors was selected. Suppose that the test statistic is
-2.20. Can you conclude that H0 should be rejected at the (a) = 0.10, (b) = 0.05, and (c) = 0.01
level of Type I error?
A) (a) no; (b) no; (c) yes B) (a) yes; (b) yes; (c) no
C) (a) yes; (b) yes; (c) yes D) (a) no; (b) no; (c) no

An appliance manufacturer claims to have developed a compact microwave oven that consumes a mean of no more than 250
W. From previous studies, it is believed that power consumption for microwave ovens is normally distributed with a
population standard deviation of 15 W. A consumer group has decided to try to discover if the claim appears true. They take
a sample of 20 microwave ovens and find that they consume a mean of 257.3 W.

18) The population of interest is 18)

A) the mean power consumption in all such microwave ovens.
B) the power consumption in all such microwave ovens.
C) the power consumption in the 20 microwave ovens.
D) the mean power consumption in the 20 microwave ovens.

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 19) The parameter of interest is 19)
A) 257.3.
B) 250.
C) the mean power consumption of all such microwave ovens.
D) the mean power consumption of the 20 microwave ovens.

20) The appropriate hypotheses to determine if the manufacturer's claim appears reasonable are 20)
A) H0 : µ 250 versus H1 : µ > 250. B) H0 : µ 250 versus H1 : µ < 250.
C) H0 : µ 257.3 versus H1 : µ < 257.3. D) H0 : µ = 250 versus H1 : µ 250.

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

21) The value of the test statistic is ________. 21)

22) The p-value of the test is ________. 22)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

23) True or False: The null hypothesis will be rejected at 1% level of significance. 23)

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

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.

24) The parameter the company officials is interested in is 24)

A) the mean number of company officials who "like the ads a lot."
B) the mean number of viewers who "like the ads a lot."
C) the total number of viewers who "like the ads a lot."
D) the proportion of viewers who "like the ads a lot."

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

25) State the null hypothesis for this study. 25)

26) State the alternative hypothesis for this study. 26)

27) What critical value should the company officials use to determine the rejection region? 27)

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

28) The null hypothesis will be rejected if the test statistic is 28)
A) greater than -2.3263. B) greater than 2.3263.
C) less than 2.3263. D) less than -2.3263.

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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

29) True or False: The null hypothesis would be rejected. 29)

A bank tests the null hypothesis that the mean age of the bank's mortgage holders is less than or equal to 45 years, versus an
alternative that the mean age is greater than 45 years. They take a sample and calculate a p-value of 0.0202.

30) True or False: The null hypothesis would be rejected at a significance level of = 0.05. 30)

31) True or False: The bank can conclude that the mean age is greater than 45 at a significance level of 31)
= 0.01.

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Answer Key
Testname: CH9

1) B
2) A
3) D
4) A
5) C
6) D
7) A
8) D
9) B
10) A
11) A
12) D
13) B
14) A
15) C
16) A
17) B
18) B
19) C
20) A
21) 2.18
22) 0.0148 using Excel or 0.0146 using Table E.2
23) FALSE
24) D
25) H0 : 0.22
26) H1 : < 0.22
27) -2.3263
28) D
29) FALSE
30) TRUE
31) FALSE