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Essentials of Modern Business Statistics with Microsoft Excel 8th Edition Test Bank

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Type:

Test Bank

Resource:

Essentials of Modern Business Statistics with Microsoft Excel

Edition:

8th Edition

Author(s):

David Anderson Dennis Sweeney Thomas Williams Jeffrey Camm James Cochran


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Chapter 09: Hypothesis Tests Multiple Choice 1. More evidence against H0 is indicated by _____. a. lower levels of significance b. smaller p-values c. smaller critical values d. lower probabilities of a Type II error ANSWER: b 2. Two approaches to drawing a conclusion in a hypothesis test are _____. a. p-value and critical value b. one-tailed and two-tailed c. Type I and Type II d. null and alternative ANSWER: a 3. As a general guideline, the research hypothesis should be stated as the _____. a. null hypothesis b. alternative hypothesis c. tentative assumption d. hypothesis the researcher wants to disprove ANSWER: b 4. A Type I error is committed when _____. a. a true alternative hypothesis is not accepted b. a true null hypothesis is rejected c. the critical value is greater than the value of the test statistic d. sample data contradict the null hypothesis ANSWER: b 5. Which of the following hypotheses is not a valid null hypothesis? a. H0: µ ≤ 0 b. H0: µ ≥ 0 c. H0: µ = 0 d. H0: µ < 0 ANSWER: d 6. The practice of concluding “do not reject H0” is preferred over “accept H0” when we _____. a. are conducting a one-tailed test b. are testing the validity of a claim c. have an insufficient sample size d. have not controlled for the Type II error Copyright Cengage Learning. Powered by Cognero.

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Chapter 09: Hypothesis Tests ANSWER: d 7. If the cost of a Type I error is high, a smaller value should be chosen for the _____. a. critical value b. confidence coefficient c. level of significance d. test statistic ANSWER: c 8. When the rejection region is in the lower tail of the sampling distribution, the p-value is the area under the curve _____. a. less than or equal to the critical value b. less than or equal to the test statistic c. greater than or equal to the critical value d. greater than or equal to the test statistic ANSWER: b 9. In tests about a population proportion, p0 represents the _____. a. hypothesized population proportion b. observed sample proportion c. observed p-value d. probability of ANSWER: a 10. Which of the following is an improper form of the null and alternative hypotheses? a.

and

b.

and

c.

and

d.

and

ANSWER: c 11. For a two-tailed hypothesis test about μ, we can use any of the following approaches EXCEPT compare the _____ to the _____. a. confidence interval estimate of μ; hypothesized value of μ b. p-value; value of α c. value of the test statistic; critical value d. level of significance; confidence coefficient ANSWER: d 12. An example of statistical inference is _____. a. a population mean b. descriptive statistics Copyright Cengage Learning. Powered by Cognero.

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Chapter 09: Hypothesis Tests c. calculating the size of a sample d. hypothesis testing ANSWER: d 13. In hypothesis testing, the hypothesis tentatively assumed to be true is _____. a. the alternative hypothesis b. the null hypothesis c. either the null or the alternative hypothesis, depending on the sample size d. always proven to be true ANSWER: b 14. In hypothesis testing, the alternative hypothesis is _____. a. the hypothesis tentatively assumed true in the hypothesis-testing procedure b. the hypothesis concluded to be true if the null hypothesis is rejected c. the maximum probability of a Type I error d. the maximum probability of a Type II error ANSWER: b 15. Your investment executive claims that the average yearly rate of return on the stocks she recommends is at least 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is _____. a. H0: μ < 10.0% Ha: μ ≥ 10.0% b. H0: μ ≤ 10.0% Ha: μ > 10.0% c. H0: μ > 10.0% Ha: μ ≤ 10.0% d. H0: μ ≥ 10.0% Ha: μ < 10.0% ANSWER: d 16. A meteorologist stated that the average temperature during July in Chattanooga was 80 degrees. A sample of July temperatures over a 32-year period was taken. The correct set of hypotheses is _____. a. H0: μ < 80 Ha: μ ≤ 80 b. H0: μ ≤ 80 Ha: μ > 80 c. H0: μ ≠ 80 Ha: μ = 80 d. H0: μ = 80 Ha: μ ≠ 80 ANSWER: d 17. A student believes that the average grade on the final examination in statistics is at least 85. She plans on taking a sample to test her belief. The correct set of hypotheses is _____. a. H0: μ < 85 Ha: μ ≥ 85 b. H0: μ ≤ 85 Ha: μ > 85 c. H0: μ ≥ 85 Ha: μ < 85 d. H0: μ > 85 Ha: μ ≤ 85 ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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Chapter 09: Hypothesis Tests 18. The average life expectancy of tires produced by Whitney Tire Company has been 40,000 miles. Management believes that due to a new production process, the life expectancy of its tires has increased. In order to test the validity of this belief, the correct set of hypotheses is _____. a. H0: μ < 40,000 Ha: μ ≥ 40,000 b. H0: μ ≤ 40,000 Ha: μ > 40,000 c. H0: μ > 40,000 Ha: μ ≤ 40,000 d. H0: μ ≥ 40,000 Ha: μ < 40,000 ANSWER: b 19. A soft drink filling machine, when in perfect adjustment, fills the bottles with 12 ounces of soft drink. Any overfilling or underfilling results in the shutdown and readjustment of the machine. To determine whether or not the machine is properly adjusted, the correct set of hypotheses is _____. a. H0: μ < 12 Ha: μ ≤ 12 b. H0: μ ≤ 12 Ha: μ > 12 c. H0: μ ≠ 12 Ha: μ = 12 d. H0: μ = 12 Ha: μ ≠ 12 ANSWER: d 20. The manager of an automobile dealership is considering a new bonus plan in order to increase sales. Currently, the mean sales rate per salesperson is five automobiles per month. The correct set of hypotheses for testing the effect of the bonus plan is _____. a. H0: μ < 5 Ha: μ ≤ 5 b. H0: μ ≤ 5 Ha: μ > 5 c. H0: μ > 5 Ha: μ ≤ 5 d. H0: μ ≥ 5 Ha: μ < 5 ANSWER: b 21. In hypothesis testing if the null hypothesis is rejected, _____. a. no conclusions can be drawn from the test b. the alternative hypothesis must also be rejected c. the data must have been collected incorrectly d. the evidence supports the alternative hypothesis ANSWER: d 22. If a hypothesis test leads to the rejection of the null hypothesis, a _____. a. Type II error must have been committed b. Type II error may have been committed c. Type I error must have been committed d. Type I error may have been committed ANSWER: d 23. The error of rejecting a true null hypothesis is _____. Copyright Cengage Learning. Powered by Cognero.

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