CHAPTER 9HYPOTHESIS TESTS

MULTIPLE CHOICE 1. The sum of the values of and a. always add up to 1.0 b. always add up to 0.5 c. is the probability of Type II error d. None of these alternatives is correct. ANS: !TS: 1 T"!: #ypothesis Tests

$. %hat type of error occurs if you fail to re&ect # 0 when' in fact' it is not true( a. Type II b. Type I c. either Type I or Type II' dependin) on the level of si)nificance d. either Type I or Type II' dependin) on whether the test is one tail or two tail ANS: A !TS: 1 T"!: #ypothesis Tests

*. An assumption made about the value of a population parameter is called a a. hypothesis b. conclusion c. confidence d. si)nificance ANS: A !TS: 1 T"!: #ypothesis Tests

+. The probability of committin) a Type I error when the null hypothesis is true is a. the confidence level b. c. )reater than 1 d. the ,evel of Si)nificance ANS: !TS: 1 T"!: #ypothesis Tests

5. In hypothesis testin)' a. the smaller the Type I error' the smaller the Type II error will be b. the smaller the Type I error' the lar)er the Type II error will be c. Type II error will not be effected by Type I error d. the sum of Type I and Ttype II errors must e-ual to 1 ANS: . !TS: 1 T"!: #ypothesis Tests

/. In hypothesis testin)' the tentative assumption about the population parameter is a. the alternative hypothesis b. the null hypothesis c. either the null or the alternative d. None of these alternatives is correct. ANS: . !TS: 1 T"!: #ypothesis Tests

0. 1or a lower tail test' the p2value is the probability of obtainin) a value for the test statistic a. at least as small as that provided by the sample

b. at least as lar)e as that provided by the sample c. at least as small as that provided by the population d. at least as lar)e as that provided by the population. ANS: A !TS: 1 T"!: #ypothesis Tests

3. The p2value is a probability that measures the support 4or lac5 of support6 for the a. null hypothesis b. alternative hypothesis c. either the null or the alternative hypothesis d. sample statistic ANS: A !TS: 1 T"!: #ypothesis Tests

7. The p2value a. is the same as the 8 statistic b. measures the number of standard deviations from the mean c. is a distance d. is a probability ANS: !TS: 1 T"!: #ypothesis Tests

10. 1or a two2tail test' the p2value is the probability of obtainin) a value for the test statistic as a. li5ely as that provided by the sample b. unli5ely as that provided by the sample c. li5ely as that provided by the population d. unli5ely as that provided by the population ANS: . !TS: 1 T"!: #ypothesis Tests

11. In hypothesis testin) if the null hypothesis is re&ected' a. no conclusions can be drawn from the test b. the alternative hypothesis is true c. the data must have been accumulated incorrectly d. the sample si9e has been too small ANS: . !TS: 1 T"!: #ypothesis Tests

1$. The level of si)nificance is the a. ma:imum allowable probability of Type II error b. ma:imum allowable probability of Type I error c. same as the confidence coefficient d. same as the p2value ANS: . !TS: 1 T"!: #ypothesis Tests

1*. The power curve provides the probability of a. correctly acceptin) the null hypothesis b. incorrectly acceptin) the null hypothesis c. correctly re&ectin) the alternative hypothesis d. correctly re&ectin) the null hypothesis ANS: !TS: 1 T"!: #ypothesis Tests

1+. A Type II error is committed when a. a true alternative hypothesis is mista5enly re&ected

b. a true null hypothesis is mista5enly re&ected c. the sample si9e has been too small d. not enou)h information has been available ANS: A !TS: 1 T"!: #ypothesis Tests

15. The error of re&ectin) a true null hypothesis is a. a Type I error b. a Type II error c. is the same as d. committed when not enou)h information is available ANS: A !TS: 1 T"!: #ypothesis Tests

1/. The level of si)nificance in hypothesis testin) is the probability of a. acceptin) a true null hypothesis b. acceptin) a false null hypothesis c. re&ectin) a true null hypothesis d. None of these alternatives is correct. ANS: ; !TS: 1 T"!: #ypothesis Tests

10. The level of si)nificance a. can be any positive value b. can be any value c. is 41 2 confidence level6 d. can be any value between 21.7/ to 1.7/ ANS: ; !TS: 1 T"!: #ypothesis Tests

13. In hypothesis testin) if the null hypothesis has been re&ected when the alternative hypothesis has been true' a. a Type I error has been committed b. a Type II error has been committed c. either a Type I or Type II error has been committed d. the correct decision has been made ANS: !TS: 1 T"!: #ypothesis Tests

17. The probability of ma5in) a Type I error is denoted by a. b. c. 1 2 d. 1 2 ANS: A !TS: 1 T"!: #ypothesis Tests

$0. The probability of ma5in) a Type II error is denoted by a. b. c. 1 2 d. 1 2 ANS: . !TS: 1 T"!: #ypothesis Tests

$1. %hen the followin) hypotheses are bein) tested at a level of si)nificance of #0: 500 #a: < 500 the null hypothesis will be re&ected if the p2value is a. b. = c. = >$ d. 1 2 >$ ANS: A !TS: 1 T"!: #ypothesis Tests

$$. %hen the p2value is used for hypothesis testin)' the null hypothesis is re&ected if a. p2value b. < p2value c. p2value d. p2value ? 1 2 ANS: A !TS: 1 T"!: #ypothesis Tests

$*. In order to test the followin) hypotheses at an level of si)nificance #0: 300 #a: = 300 the null hypothesis will be re&ected if the test statistic 8 is a. 8 b. < 8 c. < 28 d. ? ANS: A !TS: 1 T"!: #ypothesis Tests

$+. %hich of the followin) does not need to be 5nown in order to compute the p2value( a. 5nowled)e of whether the test is one2tailed or two2tailed b. the value of the test statistic c. the level of si)nificance d. None of these alternatives is correct. ANS: ; !TS: 1 T"!: #ypothesis Tests

$5. In the hypothesis testin) procedure' is a. the level of si)nificance b. the critical value c. the confidence level d. 1 2 level of si)nificance ANS: A !TS: 1 T"!: #ypothesis Tests

$/. If a hypothesis test leads to the re&ection of the null hypothesis' a. a Type II error must have been committed b. a Type II error may have been committed

c. a Type I error must have been committed d. a Type I error may have been committed ANS: !TS: 1 T"!: #ypothesis Tests

$0. As the test statistic becomes lar)er' the p2value a. )ets smaller b. becomes lar)er c. stays the same' since the sample si9e has not been chan)ed d. becomes ne)ative ANS: A !TS: 1 T"!: #ypothesis Tests

$3. The p2value ran)es between a. 9ero and infinity b. minus infinity to plus infinity c. 9ero to one d. 21 to @1 ANS: ; !TS: 1 T"!: #ypothesis Tests

$7. 1or a lower bounds one2tailed test' the test statistic z is determined to be 9ero. The p2value for this test is a. 9ero b. 20.5 c. @0.5 d. 1.00 ANS: ; !TS: 1 T"!: #ypothesis Tests

*0. In a two2tailed hypothesis test situation' the test statistic is determined to be t ? 2$./7$. The sample si9e has been +5. The p2value for this test is a. 20.005 b. @0.005 c. 20.01 d. @0.01 ANS: !TS: 1 T"!: #ypothesis Tests

*1. In a lower one2tail hypothesis test situation' the p2value is determined to be 0.$. If the sample si9e for this test is 51' the t statistic has a value of a. 0.3+7 b. 20.3+7 c. 1.$77 d. 21.$77 ANS: . !TS: 1 T"!: #ypothesis Tests

*$. If a hypothesis is re&ected at the 5A level of si)nificance' it a. will always be re&ected at the 1A level b. will always be accepted at the 1A level c. will never be tested at the 1A level d. may be re&ected or not re&ected at the 1A level ANS: !TS: 1 T"!: #ypothesis Tests

**. If a hypothesis is not re&ected at the 5A level of si)nificance' it a. will also not be re&ected at the 1A level b. will always be re&ected at the 1A level c. will sometimes be re&ected at the 1A level d. None of these alternatives is correct. ANS: A !TS: 1 T"!: #ypothesis Tests

*+. If the probability of a Type I error 46 is 0.05' then the probability of a Type II error 4 6 must be a. 0.05 b. 0.75 c. 0.0$5 d. None of these alternatives is correct. ANS: !TS: 1 T"!: #ypothesis Tests

*5. If the level of si)nificance of a hypothesis test is raised from .01 to .05' the probability of a Type II error a. will also increase from .01 to .05 b. will not chan)e c. will decrease d. will increase ANS: ; !TS: 1 T"!: #ypothesis Tests

*/. If a hypothesis is re&ected at 75A confidence' it a. will always be accepted at 70A confidence b. will always be re&ected at 70A confidence c. will sometimes be re&ected at 70A confidence d. None of these alternatives is correct. ANS: . !TS: 1 T"!: #ypothesis Tests

*0. 1or a two2tailed test at 3/.1$A confidence' 8 ? a. 1.7/ b. 1.+3 c. 1.07 d. 0.3/ ANS: . !TS: 1 T"!: #ypothesis Tests

*3. 1or a one2tailed test 4lower tail6 at 7*.0A confidence' 8 ? a. 21.3/ b. 21.5* c. 21.7/ d. 21./+5 ANS: . !TS: 1 T"!: #ypothesis Tests

*7. Bead the 8 statistic from the normal distribution table and circle the correct answer. A one2tailed test 4upper tail6 at 30.0A confidenceC 8 ? a. 1.5+ b. 1.7/ c. 1./+5 d. 1.1/

ANS:

!TS: 1

T"!: #ypothesis Tests

+0. 1or a two2tailed test' a sample of $0 at 30A confidence' t ? a. 1.*$3 b. $.5*7 c. 1.*$5 d. $.5$3 ANS: A !TS: 1 T"!: #ypothesis Tests

+1. 1or a one2tailed test 4upper tail6' a sample si9e of 13 at 75A confidence' t ? a. $.1$ b. 2$.1$ c. 21.0+0 d. 1.0+0 ANS: !TS: 1 T"!: #ypothesis Tests

+$. 1or a one2tailed test 4lower tail6' a sample si9e of 10 at 70A confidence' t ? a. 1.*3* b. $.3$1 c. 21.*3* d. 2$.3$1 ANS: ; !TS: 1 T"!: #ypothesis Tests

+*. A two2tailed test is performed at 75A confidence. The p2value is determined to be 0.07. The null hypothesis a. must be re&ected b. should not be re&ected c. could be re&ected' dependin) on the sample si9e d. has been desi)ned incorrectly ANS: . !TS: 1 T"!: #ypothesis Tests

++. 1or a two2tailed test at 73.+A confidence' 8 ? a. 1.7/ b. 1.1+ c. $.+1 d. 0.3/1$ ANS: ; !TS: 1 T"!: #ypothesis Tests

+5. 1or a one2tailed test 4lower tail6 at 37.3A confidence' 8 ? a. 21.$0 b. 21.5* c. 21.7/ d. 21./+ ANS: A !TS: 1 T"!: #ypothesis Tests

+/. 1or a one2tailed test 4upper tail6 at 7*.0A confidence' 8 ? a. 1.50 b. 1.7/ c. 1./+5 d. 1.5*

ANS:

!TS: 1

T"!: #ypothesis Tests

+0. 1or a one2tailed test 4upper tail6' a sample si9e of $/ at 70A confidence' t ? a. 1.*1/ b. 21.*1/ c. 21.0+0 d. 1.0+0 ANS: A !TS: 1 T"!: #ypothesis Tests

+3. 1or a one2tailed test 4lower tail6 with $$ de)rees of freedom at 75A confidence' the value of t ? a. 21.*3* b. 1.*3* c. 21.010 d. 21.0$1 ANS: ; !TS: 1 T"!: #ypothesis Tests

+7. 1or a one2tailed hypothesis test 4upper tail6 the p2value is computed to be 0.0*+. If the test is bein) conducted at 75A confidence' the null hypothesis a. could be re&ected or not re&ected dependin) on the sample si9e b. could be re&ected or not re&ected dependin) on the value of the mean of the sample c. is not re&ected d. is re&ected ANS: !TS: 1 T"!: #ypothesis Tests

50. In a two2tailed hypothesis test the test statistic is determined to be 8 ? 2$.5. The p2value for this test is a. 21.$5 b. 0.+7*3 c. 0.00/$ d. 0.01$+ ANS: !TS: 1 T"!: #ypothesis Tests

51. In a one2tailed hypothesis test 4lower tail6 the test statistic is determined to be 2$. The p2value for this test is a. 0.+00$ b. 0.0$$3 c. 0.005/ d. 0.5$$3 ANS: . !TS: 1 T"!: #ypothesis Tests

5$. The avera)e manufacturin) wor5 wee5 in metropolitan ;hattanoo)a was +0.1 hours last year. It is believed that the recession has led to a reduction in the avera)e wor5 wee5. To test the validity of this belief' the hypotheses are a. #0: < +0.1 #a: +0.1 b. #0: +0.1 #a: < +0.1 c. #0: > +0.1 #a: +0.1 d. #0: = +0.1 #a: +0.1 ANS: . !TS: 1 T"!: #ypothesis Tests

5*. The avera)e monthly rent for one2bedroom apartments in ;hattanoo)a has been D000. .ecause of the downturn in the real estate mar5et' it is believed that there has been a decrease in the avera)e rental. The correct hypotheses to be tested are a. #0: 000 #a: < 000 b. #0: ? 000 #a: 000 c. #0: > 000 #a: 000 d. #0: < 000 #a: 000 ANS: A !TS: 1 T"!: #ypothesis Tests

5+. A machine is desi)ned to fill toothpaste tubes with 5.3 ounces of toothpaste. The manufacturer does not want any underfillin) or overfillin). The correct hypotheses to be tested are a. #0: 5.3 #a: ? 5.3 b. #0: ? 5.3 #a: 5.3 c. #0: > 5.3 #a: 5.3 d. #0: 5.3 #a: < 5.3 ANS: . !TS: 1 T"!: #ypothesis Tests

55. The avera)e hourly wa)e of computer pro)rammers with $ years of e:perience has been D$1.30. .ecause of hi)h demand for computer pro)rammers' it is believed there has been a si)nificant increase in the avera)e wa)e of computer pro)rammers. To test whether or not there has been an increase' the correct hypotheses to be tested are a. #0: < $1.30 #a: $1.30 b. #0: ? $1.30 #a: $1.30 c. #0: > $1.30 #a: $1.30 d. #0: $1.30 #a: = $1.30 ANS: !TS: 1 T"!: #ypothesis Tests

5/. A student believes that the avera)e )rade on the final e:amination in statistics is at least 35. She plans on ta5in) a sample to test her belief. The correct set of hypotheses is a. #0: < 35 #a: 35 b. #0: 35 #a: = 35 c. #0: 35 #a: < 35 d. #0: = 35 #a: 35 ANS: ; !TS: 1 T"!: #ypothesis Tests

50. In the past' 05A of the tourists who visited ;hattanoo)a went to see Boc5 ;ity. The mana)ement of Boc5 ;ity recently undertoo5 an e:tensive promotional campai)n. They are interested in determinin) whether the promotional campai)n actually increased the proportion of tourists visitin) Boc5 ;ity. The correct set of hypotheses is a. #0: ! = 0.05 #a: ! 0.05 b. #0: ! < 0.05 #a: ! 0.05 c. #0: ! 0.05 #a: ! < 0.05 d. #0: ! 0.05 #a: ! = 0.05 ANS: !TS: 1 T"!: #ypothesis Tests

53. The avera)e life e:pectancy of tires produced by the %hitney Tire ;ompany has been +0'000 miles. Eana)ement believes that due to a new production process' the life e:pectancy of their tires has increased. In order to test the validity of their belief' the correct set of hypotheses is

a. b. c. d.

#0: < +0'000 #0: +0'000 #0: = +0'000 #0: +0'000

#a: +0'000 #a: = +0'000 #a: +0'000 #a: < +0'000 !TS: 1 T"!: #ypothesis Tests

ANS: .

57. A soft drin5 fillin) machine' when in perfect ad&ustment' fills the bottles with 1$ ounces of soft drin5. Any over fillin) or under fillin) results in the shutdown and read&ustment of the machine. To determine whether or not the machine is properly ad&usted' the correct set of hypotheses is a. #0: < 1$ #a: 1$ b. #0: 1$ #a: = 1$ c. #0: 1$ #a: ? 1$ d. #0: ? 1$ #a: 1$ ANS: !TS: 1 T"!: #ypothesis Tests

/0. The academic planner of a university thin5s that at least *5A of the entire student body attends summer school. The correct set of hypotheses to test his belief is a. #0: ! = 0.*5 #a: ! 0.*5 b. #0: ! 0.*5 #a: ! = 0.*5 c. #0: ! 0.*5 #a: ! < 0.*5 d. #0: ! = 0.*5 #a: ! 0.*5 ANS: ; !TS: 1 T"!: #ypothesis Tests

/1. The mana)er of an automobile dealership is considerin) a new bonus plan in order to increase sales. ;urrently' the mean sales rate per salesperson is five automobiles per month. The correct set of hypotheses for testin) the effect of the bonus plan is a. #0: < 5 #a: 5 b. #0: 5 #a: = 5 c. #0: = 5 #a: 5 d. #0: 5 #a: < 5 ANS: . !TS: 1 T"!: #ypothesis Tests

/$. Four investment e:ecutive claims that the avera)e yearly rate of return on the stoc5s she recommends is at least 10.0A. Fou plan on ta5in) a sample to test her claim. The correct set of hypotheses is a. #0: < 10.0A #a: 10.0A b. #0: 10.0A #a: = 10.0A c. #0: = 10.0A #a: 10.0A d. #0: 10.0A #a: < 10.0A ANS: !TS: 1 T"!: #ypothesis Tests

/*. A weatherman stated that the avera)e temperature durin) Guly in ;hattanoo)a is 30 de)rees or less. A sample of *$ Gulys is ta5en. The correct set of hypotheses is a. #0: 30 #a: < 30 b. #0: 30 #a: = 30 c. #0: 30 #a: ? 30 d. #0: < 30 #a: = 30 ANS: . !TS: 1 T"!: #ypothesis Tests

/+. The schoolHs newspaper reported that the proportion of students ma&orin) in business is at least *0A. Fou plan on ta5in) a sample to test the newspaperHs claim. The correct set of hypotheses is a. #0: ! < 0.*0 #a: ! 0.*0 b. #0: ! 0.*0 #a: ! = 0.*0 c. #0: ! 0.*0 #a: ! < 0.*0 d. #0: ! = 0.*0 #a: ! 0.*0 ANS: ; !TS: 1 T"!: #ypothesis Tests

NABB.IJIN: I:hibit 07201 Exhibit 9 ! n ? */ NABBIN /5. Befer to I:hibit 721. The test statistic is a. $.* b. 0.*3 c. 2$.* d. 20.*3 ANS: A !TS: 1 T"!: #ypothesis Tests ? $+./ S ? 1$ #0: $0 #a: = $0

//. Befer to I:hibit 721. The p2value is between a. 0.005 to 0.01 b. 0.01 to 0.0$5 c. 0.0$5 to 0.05 d. 0.05 to 0.10 ANS: . !TS: 1 T"!: #ypothesis Tests

/0. Befer to I:hibit 721. If the test is done at 75A confidence' the null hypothesis should a. not be re&ected b. be re&ected c. Not enou)h information is )iven to answer this -uestion. d. None of these alternatives is correct. ANS: . !TS: 1 T"!: #ypothesis Tests

NABB.IJIN: I:hibit 0720$ Exhibit 9 " n ? /+ NABBIN /3. Befer to I:hibit 72$. The test statistic e-uals a. 2+ b. 2* c. 2$ ? 50 s ? 1/ #0: 5+ #a: < 5+

d. 21 ANS: ; !TS: 1 T"!: #ypothesis Tests

/7. Befer to I:hibit 72$. The p2value is between a. .005 to .01 b. .01 to .0$5 c. .0$5 to .05 d. .05 to .01 ANS: . !TS: 1 T"!: #ypothesis Tests

00. Befer to I:hibit 72$. If the test is done at 75A confidence' the null hypothesis should a. not be re&ected b. be re&ected c. Not enou)h information is )iven to answer this -uestion. d. None of these alternatives is correct. ANS: . !TS: 1 T"!: #ypothesis Tests

NABB.IJIN: I:hibit 0720* Exhibit 9 # n ? +7 NABBIN 01. Befer to I:hibit 72*. The test statistic is a. 0.101+ b. 0.*3+7 c. 21.$ d. 1.$ ANS: !TS: 1 T"!: #ypothesis Tests ? 5+.3 s ? $3 #0: 50 #a: = 50

0$. Befer to I:hibit 72*. The p2value is between a. 0.01 to 0.0$5 b. 0.0$5 to 0.05 c. .05 to 0.1 d. 0.1 to 0.$ ANS: !TS: 1 T"!: #ypothesis Tests

0*. Befer to I:hibit 72*. If the test is done at the 5A level of si)nificance' the null hypothesis should a. not be re&ected b. be re&ected c. Not enou)h information )iven to answer this -uestion. d. None of these alternatives is correct. ANS: A !TS: 1 T"!: #ypothesis Tests

NABB.IJIN: I:hibit 0720+ Exhibit 9 $

The mana)er of a )rocery store has ta5en a random sample of 100 customers. The avera)e len)th of time it too5 the customers in the sample to chec5 out was *.1 minutes with a standard deviation of 0.5 minutes. %e want to test to determine whether or not the mean waitin) time of all customers is si)nificantly more than * minutes. NABBIN 0+. Befer to I:hibit 72+. The test statistic is a. 1.7/ b. 1./+ c. $.00 d. 0.05/ ANS: ; !TS: 1 T"!: #ypothesis Tests

05. Befer to I:hibit 72+. The p2value is between a. .005 to .01 b. .01 to .0$5 c. .0$5 to .05 d. .05 to .10 ANS: . !TS: 1 T"!: #ypothesis Tests

0/. Befer to I:hibit 72+. At 75A confidence' it can be concluded that the mean of the population is a. si)nificantly )reater than * b. not si)nificantly )reater than * c. si)nificantly less than * d. si)nificantly )reater then *.13 ANS: A !TS: 1 T"!: #ypothesis Tests

NABB.IJIN: I:hibit 07205 Exhibit 9 % A random sample of 100 people was ta5en. Ii)hty2five of the people in the sample favored ;andidate A. %e are interested in determinin) whether or not the proportion of the population in favor of ;andidate A is si)nificantly more than 30A. NABBIN 00. Befer to I:hibit 725. The test statistic is a. 0.30 b. 0.05 c. 1.$5 d. $.00 ANS: ; !TS: 1 T"!: #ypothesis Tests

03. Befer to I:hibit 725. The p2value is a. 0.$11$ b. 0.05 c. 0.0$5 d. 0.105/ ANS: !TS: 1 T"!: #ypothesis Tests

07. Befer to I:hibit 725. At 75A confidence' it can be concluded that the proportion of the population in favor of candidate A

a. b. c. d.

is si)nificantly )reater than 30A is not si)nificantly )reater than 30A is si)nificantly )reater than 35A is not si)nificantly )reater than 35A !TS: 1 T"!: #ypothesis Tests

ANS: .

NABB.IJIN: I:hibit 0720/ Exhibit 9 & A random sample of 1/ students selected from the student body of a lar)e university had an avera)e a)e of $5 years and a standard deviation of $ years. %e want to determine if the avera)e a)e of all the students at the university is si)nificantly more than $+. Assume the distribution of the population of a)es is normal. NABBIN 30. Befer to I:hibit 72/. The test statistic is a. 1.7/ b. $.00 c. 1./+5 d. 0.05 ANS: . !TS: 1 T"!: #ypothesis Tests

31. Befer to I:hibit 72/. The p2value is between a. .005 to .01 b. .01 to .0$5 c. .0$5 to .05 d. .05 to .10 ANS: ; !TS: 1 T"!: #ypothesis Tests

3$. Befer to I:hibit 72/. At 75A confidence' it can be concluded that the mean a)e is a. not si)nificantly different from $+ b. si)nificantly different from $+ c. si)nificantly less than $+ d. si)nificantly more than $+ ANS: !TS: 1 T"!: #ypothesis Tests

NABB.IJIN: I:hibit 07200 Exhibit 9 ' A random sample of 1/ statistics e:aminations from a lar)e population was ta5en. The avera)e score in the sample was 03./ with a variance of /+. %e are interested in determinin) whether the avera)e )rade of the population is si)nificantly more than 05. Assume the distribution of the population of )rades is normal. NABBIN 3*. Befer to I:hibit 720. The test statistic is a. 0.+5 b. 1.30 c. *./ d. 3 ANS: . !TS: 1 T"!: #ypothesis Tests

3+. Befer to I:hibit 720. The p2value is between a. .005 to .01 b. .01 to .0$5 c. .0$5 to .05 d. .05 to 0.1 ANS: ; !TS: 1 T"!: #ypothesis Tests

35. Befer to I:hibit 720. At 75A confidence' it can be concluded that the avera)e )rade of the population a. is not si)nificantly )reater than 05 b. is si)nificantly )reater than 05 c. is not si)nificantly )reater than 03./ d. is si)nificantly )reater than 03./ ANS: . !TS: 1 T"!: #ypothesis Tests

NABB.IJIN: I:hibit 07203 Exhibit 9 ( The avera)e )asoline price of one of the ma&or oil companies in Iurope has been D1.$5 per liter. Becently' the company has underta5en several efficiency measures in order to reduce prices. Eana)ement is interested in determinin) whether their efficiency measures have actually red)ced prices. A random sample of +7 of their )as stations is selected and the avera)e price is determined to be D1.$0 per liter. 1urthermore' assume that the standard deviation of the population 4 6 is D0.1+. NABBIN 3/. Befer to I:hibit 723. The standard error has a value of a. 0.1+ b. 0 c. $.5 d. 0.0$ ANS: !TS: 1 T"!: #ypothesis Tests

30. Befer to I:hibit 723. The value of the test statistic for this hypothesis test is a. 1.7/ b. 1./+5 c. 2$.5 d. 21./+5 ANS: ; !TS: 1 T"!: #ypothesis Tests

33. Befer to I:hibit 723. The p2value for this problem is a. 0.+7*3 b. 0.00/$ c. 0.01$+ d. 0.05 ANS: . !TS: 1 T"!: #ypothesis Tests

NABB.IJIN: I:hibit 07207 Exhibit 9 9

The sales of a )rocery store had an avera)e of D3'000 per day. The store introduced several advertisin) campai)ns in order to increase sales. To determine whether or not the advertisin) campai)ns have been effective in increasin) sales' a sample of /+ days of sales was selected. It was found that the avera)e was D3'*00 per day. 1rom past information' it is 5nown that the standard deviation of the population is D1'$00. NABBIN 37. Befer to I:hibit 727. The correct null hypothesis for this problem is a. < 3000 b. > 3000 c. ? 3000 d. > 3$50 ANS: A !TS: 1 T"!: #ypothesis Tests

70. Befer to I:hibit 727. The value of the test statistic is a. $50 b. 3000 c. 3$50 d. $.0 ANS: !TS: 1 T"!: #ypothesis Tests

71. Befer to I:hibit 727. The p-value is a. $.00 b. 0.700$ c. 0.0$$3 d. 0.5+05 ANS: ; PRO*LEM 1. The epartment of Iconomic and ;ommunity evelopment 4 I; 6 reported that in $007 the avera)e number of new &obs created per county was +50. The department also provided the followin) information re)ardin) a sample of 5 counties in $010. Co)nt+ .radley Bhea Earion Jrundy Se-uatchie a. b. c. d. ,e- .obs Created In "/!/ +10 +30 +00 +$3 +00 !TS: 1 T"!: #ypothesis Tests

;ompute the sample avera)e and the standard deviation for $010. %e want to determine whether there has been a si0ni1icant decrease in the avera)e number of &obs created. !rovide the null and the alternative hypotheses. ;ompute the test statistic. ;ompute the p2valueC and at 75A confidence' test the hypotheses. Assume the population is normally distributed.

ANS:

a. b. c. d.

? +$5 and s ? *$.++ 4rounded6 #o: = +50 #a: < +50 Test statistic t ? 21.0$+ P2value is between 0.05 and 0.1C do not re&ect #o. There is no evidence of a si)nificant decrease. T"!: #ypothesis Tests

!TS: 1

$. The .ureau of ,abor Statistics reported that the avera)e yearly income of dentists in the year $007 was D110'000. A sample of 31 dentists' which was ta5en in $010' showed an avera)e yearly income of D1$0'000. Assume the standard deviation of the population of dentists in $010 is D*/'000. a. b. c. %e want to test to determine if there has been a si)nificant increase in the avera)e yearly income of dentists. !rovide the null and the alternative hypotheses. ;ompute the test statistic. etermine the p2valueC and at 75A confidence' test the hypotheses.

ANS: a. #o: D110'000 #a: > D110'000 b. 8 ? $.5 c. p2value ? 0.00/$ Since the p2value ? 0.00/$ < 0.05' re&ect #o. Therefore' there has been a si)nificant increase. !TS: 1 T"!: #ypothesis Tests

*. A tire manufacturer has been producin) tires with an avera)e life e:pectancy of $/'000 miles. Now the company is advertisin) that its ne- tiresH life e:pectancy has increased. In order to test the le)itimacy of the advertisin) campai)n' an independent testin) a)ency tested a sample of / of their tires and has provided the followin) data. Li1e Ex2ectanc+ 3In Tho)sands o1 Mi4es5 $3 $0 $5 $3 $7 $5 a. b. c. etermine the mean and the standard deviation. At 77A confidence usin) the critical value approach' test to determine whether or not the tire company is usin) le)itimate advertisin). Assume the population is normally distributed. Bepeat the test usin) the p2value approach.

ANS: a. ? $0' s ? 1./0 b. #o: < $/000 #a: = $/000 Since t ? 1.+0 < *.*/5' do not re&ect #o and conclude that there is insufficient evidence to support the manufacturerHs claim.

c.

p2value > 0.1C do not re&ect #o T"!: #ypothesis Tests

!TS: 1

+. A producer of various 5inds of batteries has been producin) K K si9e batteries with a life e:pectancy of 30 hours. ue to an improved production process' mana)ement believes that there has been an increase in the life e:pectancy of their K K si9e batteries. A sample of */ batteries showed an avera)e life of 33.5 hours. Assume from past information that it is 5nown that the standard deviation of the population is 7 hours. a. b. c. d. Jive the null and the alternative hypotheses. ;ompute the test statistic. At 77A confidence usin) the critical value approach' test mana)ementHs belief. %hat is the p2value associated with the sample results( %hat is your conclusion based on the p2value(

ANS: a. #o: < 30 #a: = 30 b. c. d. 1.00 Since 8 ? 1 < $.**' do not re&ect #o and conclude that there is insufficient evidence to support the corporationHs claim. p2value = 0.1530C therefore do not re&ect #o T"!: #ypothesis Tests

!TS: 1

5. Some people who bou)ht L2Jame )amin) systems complained about havin) received defective systems. The industry standard for such systems has been ninety2ei)ht percent non2defective systems. In a sample of 1$0 units sold' / units were defective. a. b. c. d. ;ompute the proportion of defective items in the sample. ;ompute the standard error of . At 75A confidence usin) the critical value approach' test to see if the percenta)e of defective systems produced by L2Jame has e:ceeded the industry standard. Show that the p2value approach results in the same conclusion as that of part b.

ANS: a. b. c. d. 0.05 0.01$3 Test statistic 8 ? $.*5 = 1./+5C re&ect #oC the number of defects has e:ceeded the industry standard. p2value 4.007+6 < 0.05C re&ect #o. T"!: #ypothesis Tests

!TS: 1

/. ;hoo ;hoo !aper ;ompany ma5es various types of paper products. "ne of their products is a *0 mils thic5 paper. In order to ensure that the thic5ness of the paper meets the *0 mils specification' random cuts of paper are selected and the thic5ness of each cut is measured. A sample of $5/ cuts had a mean thic5ness of *0.* mils with a standard deviation of + mils.

a. b. c.

;ompute the standard error of the mean. At 75A confidence usin) the critical value approach' test to see if the mean thic5ness is si)nificantly more than *0 mils. Show that the p2value approach results in the same conclusion as that of part b.

ANS: a. b. c. 0.$5 Test statistics t ? 1.$ < 1./+5C do not re&ect #o. p2value 4.11516 is between 0.1 and 0.$C do not re&ect #o. T"!: #ypothesis Tests

!TS: 1

0. ,ast year' 50A of ENE' Inc. employees were female. It is believed that there has been a reduction in the percenta)e of females in the company. This year' in a random sample of +00 employees' 130 were female. a. b. c. Jive the null and the alternative hypotheses. At 75A confidence usin) the critical value approach' determine if there has been a si)nificant reduction in the proportion of females. Show that the p2value approach results in the same conclusion as that of !art b.

ANS: a. b. c. #o: p 0.5 #a: p < 0.5 Test statistic 8 ? 2$.0 < 21./+5C re&ect #oC the proportion of female employees is si)nificantly less than 50A. p2value ? 0.0$$3 < 0.05C re&ect #o. T"!: #ypothesis Tests

!TS: 1

3. ,ast year' a soft drin5 manufacturer had $1A of the mar5et. In order to increase their portion of the mar5et' the manufacturer has introduced a new flavor in their soft drin5s. A sample of +00 individuals participated in the taste test and 100 indicated that they li5e the taste. %e are interested in determinin) if more than $1A of the population will li5e the new soft drin5. a. b. c. d. Set up the null and the alternative hypotheses. etermine the test statistic. etermine the p2value. At 75A confidence' test to determine if more than $1A of the population will li5e the new soft drin5.

ANS: a. b. c. d. #0: p 0.$1 #a: p = 0.$1 Test statistic 8 ? 1.7/ p2value ? 0.0$5 p2value ? 0.0$5 < .05C therefore' re&ect #oC more than $1A li5e the new drin5. T"!: #ypothesis Tests

!TS: 1

7. In the past' the avera)e a)e of employees of a lar)e corporation has been +0 years. Becently' the company has been hirin) older individuals. In order to determine whether there has been an increase in the avera)e a)e of all the employees' a sample of /+ employees was selected. The avera)e a)e in the sample was +5 years with a standard deviation of 1/ years. ,et ? .05. a. b. c. State the null and the alternative hypotheses. ;ompute the test statistic. Msin) the p2value approach' test to determine whether or not the mean a)e of all employees is si)nificantly more than +0 years.

ANS: a. b. c. #0: +0 #a: = +0 t ? $.5 p2value 4.0005136 is between .005 and .01C re&ect # 0 T"!: #ypothesis Tests

!TS: 1

10. The avera)e )asoline price of one of the ma&or oil companies has been D$.$0 per )allon. .ecause of cost reduction measures' it is believed that there has been a si)nificant red)ction in the avera)e price. In order to test this belief' we randomly selected a sample of */ of the companyHs )as stations and determined that the avera)e price for the stations in the sample was D$.1+. Assume that the standard deviation of the 2o2)4ation 46 is D0.1$. a. b. c. d. State the null and the alternative hypotheses. ;ompute the test statistic. %hat is the p2value associated with the above sample results( At 75A confidence' test the companyHs claim.

ANS: a. b. c. d. #0: $.$0 #a: < $.$0 8 ? 2* p2value ? almost 9ero 40.001*6 p2value < .05C re&ect #0C the avera)e price has been reduced. T"!: #ypothesis Tests

!TS: 1

11. A sample of 31 account balances of a credit company showed an avera)e balance of D1'$00 with a standard deviation of D1$/. a. b. c. 1ormulate the hypotheses that can be used to determine whether the mean of all account balances is si)nificantly different from D1'150. ;ompute the test statistic. Msin) the p2value approach' what is your conclusion( ,et ? .05.

ANS: a. #0: ? 1150 #a: 1150

b. c.

t ? *.50 p2value 4almost 9ero6 <.005C therefore' re&ect #0 T"!: #ypothesis Tests

!TS: 1

1$. 1rom a population of cans of coffee mar5ed K1$ ounces'K a sample of 50 cans was selected and the contents of each can were wei)hed. The sample revealed a mean of 11.3 ounces with a standard deviation of 0.5 ounces. a. b. c. 1ormulate the hypotheses to test to see if the mean of the population is at least 1$ ounces. ;ompute the test statistic. Msin) the p2value approach' what is your conclusion( ,et ? .05.

ANS: a. b. c. #0: 1$ #a: < 1$ t ? 2$.3* p2value 4.00*+6 < .005C therefore' re&ect #0 T"!: #ypothesis Tests

!TS: 1

1*. A lathe is set to cut bars of steel into len)ths of / centimeters. The lathe is considered to be in perfect ad&ustment if the avera)e len)th of the bars it cuts is / centimeters. A sample of 1$1 bars is selected randomly and measured. It is determined that the avera)e len)th of the bars in the sample is /.03 centimeters with a standard deviation of 0.++ centimeters. a. b. c. 1ormulate the hypotheses to determine whether or not the lathe is in perfect ad&ustment. ;ompute the test statistic. Msin) the p2value approach' what is your conclusion( ,et ? .05.

ANS: a. b. c. #0: ? / #a: / t?$ p2value 4.0+5/6 is between 0.0$ and 0.05C therefore' re&ect # 0 T"!: #ypothesis Tests

!TS: 1

1+. Ahmadi' Inc. has been manufacturin) small automobiles that have avera)ed 50 miles per )allon of )asoline in hi)hway drivin). The company has developed a more efficient en)ine for its small cars and now advertises that its new small cars avera)e more than 50 miles per )allon in hi)hway drivin). An independent testin) service road2tested /+ of the automobiles. The sample showed an avera)e of 51.5 miles per )allon with a standard deviation of + miles per )allon. a. b. c. 1ormulate the hypotheses to determine whether or not the manufacturerHs advertisin) campai)n is le)itimate. ;ompute the test statistic. %hat is the p2value associated with the sample results and what is your conclusion( ,et ? . 05.

ANS: a. b. c. #0: 50 #a: = 50 t?* p2value 4.00176 is less than .005C re&ect #0 T"!: #ypothesis Tests

!TS: 1

15. A soft drin5 fillin) machine' when in perfect ad&ustment' fills the bottles with 1$ ounces of soft drin5. A random sample of +7 bottles is selected' and the contents are measured. The sample yielded a mean content of 11.33 ounces with a standard deviation of 0.*5 ounces. a. b. c. 1ormulate the hypotheses to test to determine if the machine is in perfect ad&ustment. ;ompute the value of the test statistic. ;ompute the p2value and )ive your conclusion re)ardin) the ad&ustment of the machine. ,et ? .05.

ANS: a. b. c. #0: ? 1$ #a: 1$ t ? 2$.+ p2value is between 0.01 and 0.0$5C therefore' re&ect #0 T"!: #ypothesis Tests

!TS: 1

1/. K K si9e batteries produced by ENE ;orporation have had a life e:pectancy of 30 hours. .ecause of an improved production process' it is believed that there has been an increase in the life e:pectancy of its K K si9e batteries. A sample of */ batteries showed an avera)e life of 33.5 hours. Assume from past information that it is 5nown that the standard deviation of the 2o2)4ation is 7 hours. a. b. c. 1ormulate the hypotheses for this problem. ;ompute the test statistic. %hat is the p2value associated with the sample results( %hat is your conclusion based on the p2value( ,et ? .05.

ANS: a. b. c. #0: 30 #a: = 30 8?1 p2value ? 0.1530C therefore' do not re&ect #0 T"!: #ypothesis Tests

!TS: 1

10. At a local university' a sample of +7 evenin) students was selected in order to determine whether the avera)e a)e of the evenin) students is si)nificantly different from $1. The avera)e a)e of the students in the sample was $* with a standard deviation of *.5. a. b. 1ormulate the hypotheses for this problem. ;ompute the test statistic.

c. ANS: a. b. c.

etermine the p2value and test these hypotheses. ,et ? .05.

#0: ? $1 #a: $1 t?+ p2value is almost 9eroC therefore' re&ect # 0 T"!: #ypothesis Tests

!TS: 1

13. In order to determine the avera)e price of hotel rooms in Atlanta' a sample of /+ hotels was selected. It was determined that the avera)e price of the rooms in the sample was D103.50 with a standard deviation of D1/. a. b. c. 1ormulate the hypotheses to determine whether or not the avera)e room price is si)nificantly different from D11$. ;ompute the test statistic. At 75A confidence usin) the p2value approach' test the hypotheses. ,et ? 0.1.

ANS: a. b. c. #0: ? 11$ #a: 11$ t ? 21.05 p2value is between 0.0$5 and 0.05C therefore' do not re&ect # 0 T"!: #ypothesis Tests

!TS: 1

17. Identify the null and alternative hypotheses for the followin) problems. a. b. c. The mana)er of a restaurant believes that it ta5es a customer less than or e-ual to $5 minutes to eat lunch. Iconomists have stated that the mar)inal propensity to consume is at least 70N out of every dollar. It has been stated that 05 out of every 100 people who )o to the movies on Saturday ni)ht buy popcorn.

ANS: a. b. c. #0: $5 #a: = $5 #0: p 0.7 #a: p < 0.7 #0: p ? 0.05 #a: p 0.05 T"!: #ypothesis Tests

!TS: 1

$0. A student believes that the avera)e )rade on the statistics final e:amination was 30. A sample of */ final e:aminations was ta5en. The avera)e )rade in the sample was 3*.7/ with a standard deviation of 1$.

a. b. c.

State the null and alternative hypotheses. Msin) the critical value approach' test the hypotheses at the 5A level of si)nificance. Msin) the p2value approach' test the hypotheses at the 5A level of si)nificance.

ANS: a. b. c. #0: ? 30 #a: 30 test statistic t ? 21.5$' critical t ? $.0*C do not re&ect #0 p2value is between .05 and 0.1C therefore' do not re&ect # 0 T"!: #ypothesis Tests

!TS: 1

$1. A carpet company advertises that it will deliver your carpet within 15 days of purchase. A sample of +7 past customers is ta5en. The avera)e delivery time in the sample was 1/.$ days. The standard deviation of the 2o2)4ation 46 is 5nown to be 5./ days. a. b. c. State the null and alternative hypotheses. Msin) the critical value approach' test to determine if their advertisement is le)itimate. ,et ? .05. Msin) the p2value approach' test the hypotheses at the 5A level of si)nificance.

ANS: a. b. c. #0: 15 #a: = 15 test statistic 8 ? 1.5 < 1./+5C therefore do not re&ect # 0 o not re&ect #0C p2value is 4.5 2 .+**$6 ? 0.0//3 T"!: #ypothesis Tests

!TS: 1

$$. A sample of *0 coo5ies is ta5en to test the claim that each coo5ie contains at least 7 chocolate chips. The avera)e number of chocolate chips per coo5ie in the sample was 0.3 with a standard deviation of *. a. b. c. d. State the null and alternative hypotheses. Msin) the critical value approach' test the hypotheses at the 5A level of si)nificance. Msin) the p2value approach' test the hypothesis at the 5A level of si)nificance. ;ompute the probability of a Type II error if the true number of chocolate chips per coo5ie is 3.

ANS: a. b. c. d. #0: 7 #a: < 7 test statistic t ? 2$.170 < 21./77C re&ect #0 re&ect #0C the p2value is between .01 to .0$5 A Type II error has not been committed since # 0 was re&ected. T"!: #ypothesis Tests

!TS: 1

$*. A )roup of youn) businesswomen wish to open a hi)h fashion bouti-ue in a vacant store but only if the avera)e income of households in the area is at least D$5'000. A random sample of 7 households showed the followin) results. D$3'000 D$*'000 D$+'000 D$+'000 D$0'000 D$/'000 D$/'000 D$5'000 D$$'000

Assume the population of incomes is normally distributed. a. b. c. d. ;ompute the sample mean and the standard deviation. State the hypotheses for this problem. ;ompute the test statistic. At 75A confidence usin) the p2value approach' what is your conclusion(

ANS: a. b. c. d. ? $5'000 s ? 1'7*/.+7 #0: $5'000 #a: < $5'000 test statistic t ? 0 p2value ? 0.5C do not re&ect #0' the bouti-ue should be opened. T"!: #ypothesis Tests

!TS: 1

$+. Nancy believes that the avera)e runnin) time of movies is e-ual to 1+0 minutes. A sample of + movies was ta5en and the followin) runnin) times were obtained. Assume the population of the runnin) times is normally distributed. 150 a. b. c. d. 150 130 100

;ompute the sample mean and the standard deviation. State the null and alternative hypotheses. Msin) the critical value approach' test the hypotheses at the 10A level of si)nificance. Msin) the p2value approach' test the hypotheses at the 10A level of si)nificance.

ANS: a. b. c. d. ? 1/$.5 s ? 15 #0: ? 1+0 #a: 1+0 Be&ect #0C test statistic t ? * = $.*5* The p2value is between .05 to .10C Be&ect #0 T"!: #ypothesis Tests

!TS: 1

$5. A student believes that no more than $0A 4i.e.' $0A6 of the students who finish a statistics course )et an A. A random sample of 100 students was ta5en. Twenty2four percent of the students in the sample received AHs. a. b. State the null and alternative hypotheses. Msin) the critical value approach' test the hypotheses at the 1A level of si)nificance.

c.

Msin) the p2value approach' test the hypotheses at the 1A level of si)nificance.

ANS: a. b. c. #0: ! 0.$ #a: ! = 0.$ o not re&ect #0C test statistic 8 ? 1 < $.** o not re&ect #0C p2value ? 0.1530 = 0.01 T"!: #ypothesis Tests

!TS: 1

$/. An official of a lar)e national union claims that the fraction of women in the union is not si)nificantly different from one2half. Msin) the critical value approach and the sample information reported below' carry out a test of this statement. ,et ? 0.05. sample si9e women men ANS: #0: ! ? 0.5 #a: ! 0.5 !TS: 1 +00 1/3 $*$

Be&ect #0C test statistic 8 ? 2*.$ < 21.7/ T"!: #ypothesis Tests

$0. A law enforcement a)ent believes that at least 33A of the drivers stopped on Saturday ni)hts for speedin) are under the influence of alcohol. A sample of // drivers who were stopped for speedin) on a Saturday ni)ht was ta5en. Ii)hty percent of the drivers in the sample were under the influence of alcohol. a. b. c. State the null and alternative hypotheses. ;ompute the test statistic. Msin) the p2value approach' test the hypotheses at the .05 level of si)nificance.

ANS: a. b. c. #0: ! 0.33 #a: ! < 0.33 8 ? 2$ p2value ? 0.0$$3 < 0.05C re&ect #0 T"!: #ypothesis Tests

!TS: 1

$3. Two thousand numbers are selected randomlyC 7/0 were even numbers. a. b. c. State the hypotheses to determine whether the proportion of odd numbers is si)nificantly different from 50A. ;ompute the test statistic. At 70A confidence usin) the p2value approach' test the hypotheses.

ANS: a. #0: ! ? 0.5

b. c.

#a: ! 0.5 8 ? 1.07 p2value ? .00*+ < 0.10C re&ect #0 T"!: #ypothesis Tests

!TS: 1

$7. In the last presidential election' a national survey company claimed that no more than 50A 4i.e.' < 50A6 of all re)istered voters voted for the Bepublican candidate. In a random sample of +00 re)istered voters' $03 voted for the Bepublican candidate. a. b. c. State the null and the alternative hypotheses. ;ompute the test statistic. At 75A confidence' compute the p2value and test the hypotheses.

ANS: a. b. c. #0: ! 0.5 #a: ! = 0.5 8 ? 0.3 p2value ? 0.$117 = 0.05C do not re&ect #0. T"!: #ypothesis Tests

!TS: 1

*0. An automobile manufacturer stated that it will be willin) to mass produce electric2powered cars if 6ore than *0A of potential buyers indicate they will purchase the newly desi)ned electric cars. In a sample of 500 potential buyers' 1/0 indicated that they would buy such a product. a. b. c. d. State the hypotheses for this problem ;ompute the standard error of . ;ompute the test statistic. At 75A confidence' what is your conclusion( Should the manufacturer produce the new electric powered car(

ANS: a. b. c. d. #0: ! 0.* #a: ! = 0.* 0.0$05 8 ? 0.73 p2value ? 0.1/*5 <0.05C do not re&ect #0C no' the manufacturer should not produce the cars. T"!: #ypothesis Tests

!TS: 1

*1. It is said that 6ore males re)ister to vote in a national election than females. A research or)ani9ation selected a random sample of *00 re)istered voters and reported that 1/5 of the re)istered voters were male. a. b. c. d. 1ormulate the hypotheses for this problem. ;ompute the standard error of . ;ompute the test statistic. Msin) the p2value approach' can you conclude that more males re)istered to vote than females( ,et ? .05.

ANS: a. b. c. d. #0: ! 0.5 #a: ! = 0.5 0.0$37 8 ? 1.0* p2value ? 0.0+13 < .05C re&ect #0C yes' more males than females re)istered to vote. T"!: #ypothesis Tests

!TS: 1

*$. ;onsider the followin) hypothesis test: #o: ? 10 #a: 10 A sample of 31 provides a sample mean of 7.5 and a sample standard deviation of 1.3. a. b. c. etermine the standard error of the mean. ;ompute the value of the test statistic. etermine the p2valueC and at 75A confidence' test the above hypotheses.

ANS: a. b. c. 0.$ t ? 2$.5 p2value is between .01 and .0$ 4two tail test6C re&ect # 0 T"!: #ypothesis Tests

!TS: 1

**. ;onsider the followin) hypothesis test: #o: 1+ #a: < 1+ A sample of /+ provides a sample mean of 1* and a sample standard deviation of +. a. b. c. etermine the standard error of the mean. ;ompute the value of the test statistic. etermine the p2valueC and at 75A confidence' test the above hypotheses.

ANS: a. b. c. 0.5 t ? 2$ p2value is between .01 and .0$5C re&ect #0 T"!: #ypothesis Tests

!TS: 1

*+. ;onsider the followin) hypothesis test: #o: +0

#a: < +0 A sample of +7 provides a sample mean of *3 and a sample standard deviation of 0. a. b. c. etermine the standard error of the mean. ;ompute the value of the test statistic. etermine the p2valueC and at 75A confidence' test the above hypotheses.

ANS: a. b. c. 1 t ? 2$ p2value is between .0$5 and .05C re&ect #0 T"!: #ypothesis Tests

!TS: 1

*5. ;onsider the followin) hypothesis test: #o: *3 #a: = *3 Fou are )iven the followin) information obtained from a random sample of si: observations. Assume the population has a normal distribution. 7 *3 +0 +$ *$ +/ +$ a. b. c. d. e. ;ompute the mean of the sample etermine the standard deviation of the sample. etermine the standard error of the mean. ;ompute the value of the test statistic. At 75A confidence usin) the p2value approach' test the above hypotheses.

ANS: a. b. c. d. e. +0 +.0* 1.7* 1.0*/ p2value is between 0.1 and 0.$C do not re&ect #0. T"!: #ypothesis Tests

!TS: 1

*/. ;onsider the followin) hypothesis test: #o: ! 0.3 #a: ! = 0.3

A sample of +00 provided a sample proportion of 0.35*. a. b. c. etermine the standard error of the proportion. ;ompute the value of the test statistic. etermine the p2valueC and at 75A confidence' test the above hypotheses.

ANS: a. b. c. 0.0$ 8 ? $./5 p2value ? 0.00+C re&ect #0 T"!: #ypothesis Tests

!TS: 1

*0. Fou are )iven the followin) information obtained from a random sample of 5 observations. Assume the population has a normal distribution. $0 13 10 $$ 13

Fou want to determine whether or not the mean of the population from which this sample was ta5en is si)nificantly less than $1. a. b. c. d. State the null and the alternative hypotheses. ;ompute the standard error of the mean. etermine the test statistic. etermine the p2value and at 70A confidence' test whether or not the mean of the population is si)nificantly less than $1.

ANS: a. b. c. d. #0: $1 #a: < $1 0.37++ t ? 2$.$*/ p2value is between .0$5 and .05C re&ect #0' the mean is si)nificantly less than $1. T"!: #ypothesis Tests

!TS: 1

*3. ;onsider the followin) hypothesis test: #o: p ? 0.5 #a: p 0.5 A sample of 300 provided a sample proportion of 0.53. a. b. c. etermine the standard error of the proportion. ;ompute the value of the test statistic. etermine the p2value' and at 75A confidence' test the hypotheses.

ANS: a. b. 0.010/3 8 ? +.5*

c.

p2value is almost 9eroC re&ect #0 T"!: #ypothesis Tests

!TS: 1

*7. Fou are )iven the followin) information obtained from a random sample of + observations. $5 +0 *$ 5/

Fou want to determine whether or not the mean of the population from which this sample was ta5en is si)nificantly different from +3. 4Assume the population is normally distributed.6 a. b. c. State the null and the alternative hypotheses. etermine the test statistic. etermine the p2valueC and at 75A confidence test to determine whether or not the mean of the population is si)nificantly different from +3.

ANS: a. b. c. #0: ? +3 #a: +3 t ? 21.1*0 p2value is between 0.$ and 0.+ 4two tailed6C do not re&ect # 0. T"!: #ypothesis Tests

!TS: 1

+0. ;onfirmed cases of %est Nile virus in birds for a sample of si: counties in the state of Jeor)ia are shown below. Co)nt+ ;atoosa ;hattoo)a ade Jordon Eurray %al5er Cases / * * 5 * +

%e are interested in testin) the followin) hypotheses re)ardin) these data: #0: * #a: = * a. b. c. d. ;ompute the mean and the standard deviation of the sample. ;ompute the standard error of the mean. etermine the test statistic. etermine the p2value and at 75A confidence' test the hypotheses.

ANS: a. b. c. d. + and 1.$/5 4rounded6 0.51/+ t ? 1.7+ 4rounded6 p2value is between 0.05 and 0.1C re&ect #0 and conclude that the mean of the population is si)nificantly more than *.

!TS: 1

T"!: #ypothesis Tests

+1. A sample of /+ account balances from a credit company showed an avera)e daily balance of D1'0+0. The standard deviation of the population is 5nown to be D$00. %e are interested in determinin) if the mean of all account balances 4i.e.' population mean6 is si)nificantly different from D1'000. a. b. c. d. e. evelop the appropriate hypotheses for this problem. ;ompute the test statistic. ;ompute the p2value. Msin) the p2value approach at 75A confidence' test the above hypotheses. Msin) the critical value approach at 75A confidence' test the hypotheses.

ANS: a. #o: = 1000 #a: 1000 b. 1./0 c. 0.107/ d. The p2value ? 0.107/' which is lar)er than ? 0.05 475A confidence6. #ence' the null hypothesis is not re&ectedC and we conclude that there is not sufficient evidence to indicate that the advertisin) campai)ns have been effective. e. In !art b' the Z statistic was computed and its value was 1./0. Since 1./0 is between 21.7/ and 1.7/' the null hypothesis cannot be re&ectedC and we conclude that there is no evidence that the mean is si)nificantly different from D1'000. !TS: 1 T"!: #ypothesis Tests

+$. ;onsider the followin) hypotheses test. #o: 30 #a: < 30 A sample of 1$1 provided a sample mean of 00.*. The population standard deviation is 5nown to be 1/.5. a. b. c. ;ompute the value of the test statistic. etermine the p2valueC and at 7*.0A confidence' test the above hypotheses. Msin) the critical value approach at 7*.0A confidence' test the hypotheses.

ANS: a. 8 ? 21.3 b. p2value ? 0.0*57 < 0.0/*' re&ect #o c. test statistic Z ? 21.3 < 8.0/* ? 21.5*' re&ect #o !TS: 1 T"!: #ypothesis Tests

+*. Automobiles manufactured by the Ifficiency ;ompany have been avera)in) +$ miles per )allon of )asoline in hi)hway drivin). It is believed that its new automobiles avera)e 6ore than +$ miles per )allon. An independent testin) service road2tested */ of the automobiles. The sample showed an avera)e of +$.3 miles per )allon with a standard deviation of 1.$ miles per )allon. a. %ith a 0.05 level of si)nificance usin) the critical value approach' test to determine whether or not the new automobiles actually do avera)e more than +$ miles per )allon.

b.

%hat is the p2value associated with the sample results( %hat is your conclusion based on the p2value(

ANS: a. #o: < +$ #a: = +$ Since t ? +.0 = 1./70' re&ect #o and conclude that the new cars avera)e more than +$ miles per )allon. b. p2value < 0.005' therefore re&ect #o 4area to the ri)ht of t ? +.0 is almost 9ero6 !TS: 1 T"!: #ypothesis Tests

++. The avera)e startin) salary of students who )raduated from colle)es of .usiness in $007 was D+3'+00. A sample of 100 )raduates of "/!/ showed an avera)e startin) salary of D50'000. Assume the standard deviation of the population is 5nown to be D3'000. %e want to determine whether or not there has been a si)nificant increase in the startin) salaries. a. b. c. d. e. State the null and alternative hypotheses to be tested. ;ompute the test statistic. The null hypothesis is to be tested at 75A confidence. test. %hat do you conclude( ;ompute the p2value.

etermine the critical value for this

ANS: a. #o: +3'+00 #a : > +3'+00 b. Test Statistic 8 ? $.0 c. ;ritical 8 ? 1./+ d. Be&ect #o and conclude that there has been a si)nificant increase. e. !2value ? .0$$3 !TS: 1 T"!: #ypothesis Testin)

+5. The avera)e price of homes sold in the M.S. in the past year was D$$0'000. A random sample of 31 homes sold this year showed an avera)e price of D$10'000. It is 5nown that the standard deviation of the population is D*/'000. At 75A confidence test to determine if there has been a si)nificant decrease in the avera)e price homes. a. b. c. d. e. State the null and alternative hypotheses to be tested. ;ompute the test statistic. etermine the critical value for this test. %hat do you conclude( ;ompute the p2value.

ANS: a. #o: $$0'000 #a : < $$0'000 b. Test statistic 8 ? 2$.5 c. ;ritical 8 ? 21./+ d. Be&ect #o and conclude that there has been a si)nificant decrease. e. !2value ? 0.00/$

!TS: 1

T"!: #ypothesis Testin)