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Chapter 10: Hypothesis Tests Involving a Sample Mean or Proportion

TRUE/FALSE
1. True or False
A Type I error is the probability of failing to reject a false null hypothesis.
ANS: F

PTS: 1

OBJ: Section 10.1

2. True or False
A Type II error is the probability of rejecting a true null hypothesis.
ANS: F

PTS: 1

OBJ: Section 10.1

3. True or False
The probability of Type I error is referred to as the significance level of the test.
ANS: T

PTS: 1

OBJ: Section 10.1

4. True or False
A directional claim or assertion states that a population parameter is greater than (>), at least,(), no
more than(), or less than (<), some quantity.
ANS: T

PTS: 1

OBJ: Section 10.1

5. True or False
A non-directional claim or assertion states that a population parameter is equal to some quantity.
ANS: T

PTS: 1

OBJ: Section 10.1

6. True or False
Directional assertions lead to what is called a two-tail test.
ANS: F

PTS: 1

OBJ: Section 10.1

7. True or False
A non-directional assertion involves what are called one-tail tests.
ANS: F

PTS: 1

OBJ: Section 10.1

8. True or False
For a two-tail hypothesis test, the level of significance is the sum of both tail areas.
ANS: T

PTS: 1

OBJ: Section 10.2

9. True or False
In conducting a hypothesis test, we can choose any significance level we desire. In practice, however,
levels of 0.10, 0.05, and 0.01 tend to be most common.
ANS: T
10. True or False

PTS: 1

OBJ: Section 10.2

Failure to reject a null hypothesis constitutes proof that it is true.


ANS: F

PTS: 1

OBJ: Section 10.2

11. True or False


The rejection and non-rejection regions can be stated as a decision rule specifying the conclusion to be
reached for a given outcome of the test.
ANS: T

PTS: 1

OBJ: Section 10.2

12. True or False


In conducting a hypothesis test about the population mean , if the population is truly or
approximately normally distributed with unknown, then the test statistic will be z, corresponding to
the normal distribution.
ANS: F

PTS: 1

OBJ: Section 10.2

13. True or False


The z-test is the appropriate test statistic for any population distribution with a small sample size and
an unknown population standard deviation.
ANS: F

PTS: 1

OBJ: Section 10.2

14. True or False


The p-value of a test is the level of significance, where the observed value of the test statistic is exactly
the same as a critical value for that level.
ANS: T

PTS: 1

OBJ: Section 10.3

15. True or False


The p-value is the lowest possible level of significance at which the alternative hypothesis can be
rejected.
ANS: F

PTS: 1

OBJ: Section 10.3

16. True or False


If the p-value for a particular hypothesis test is 0.03 with
hypothesis.
ANS: F

PTS: 1

= 0.05, we do not reject the null

OBJ: Section 10.3

17. True or False


The conclusion from a non-directional hypothesis test for a population mean at the level of
significance will be the same as the conclusion based on a confidence interval at the 100 (1 - )%
confidence level.
ANS: T

PTS: 1

OBJ: Section 10.4

18. True or False


In testing H0:
120; H1: > 120 at the = .05 level of significance, the null hypothesis is rejected.
We must reach the same conclusion based on a confidence interval at the 95% confidence level.
ANS: F

PTS: 1

OBJ: Section 10.4

19. True or False


Confidence intervals and hypothesis tests are both concerned with using sample information to make a
statement about the unknown value of a population parameter. Thus, it is not surprising that their
results are related.
ANS: T

PTS: 1

OBJ: Section 10.4

20. True or False


Reducing the probability of a Type I error also reduces the probability of a Type II error.
ANS: F

PTS: 1

OBJ: Section 10.7

21. True or False


Reducing the probability of a Type II error also reduces the probability of a Type I error.
ANS: F

PTS: 1

OBJ: Section 10.7

22. True or False


Suppose the underlying distribution is known to be normal, or that the sample size is at least thirty
(30). The t-test is the appropriate test statistic when the sample standard deviation is used to estimate
the population standard deviation.
ANS: T

PTS: 1

OBJ: Section 10.5

23. True or False


The power of a test is the probability that a true null hypothesis will be rejected.
ANS: F

PTS: 1

OBJ: Section 10.7

24. True or False


If a test is carried out at a specified significance level (e.g., = .05), using a larger sample size will
change the decision rule but will not change . This is because has been decided upon in advance.
ANS: T

PTS: 1

OBJ: Section 10.7

25. True or False


If a test is carried out at a specified significance level (e.g., = .05), using a larger sample size will
reduce the value of , the probability of making a Type II error.
ANS: T

PTS: 1

OBJ: Section 10.7

26. True or False


A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said
that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt
that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found
a mean of 18.17 and standard deviation of 4.60. Assume that the population is normally distributed and
test at the 0.01 level of significance.
The correct hypotheses are:
H0:

20, H1:

< 20.

ANS: T

PTS: 1

OBJ: Section 10.8

27. True or False


A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said
that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt
that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found
a mean of 18.17 and standard deviation of 4.60. Assume that the population is normally distributed and
test at the 0.01 level of significance.
The correct hypotheses are:
H0:

= 20, H1:

ANS: F

> 20
PTS: 1

OBJ: Section 10.8

28. True or False


A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said
that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt
that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found
a mean of 18.17 and standard deviation of 4.60. Assume that the population is normally distributed and
test at the 0.01 level of significance.
The correct hypotheses are:
H0:

= 20, H1:

ANS: F

20.
PTS: 1

OBJ: Section 10.8

29. True or False


A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said
that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt
that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found
a mean of 18.17 and standard deviation of 4.60. Assume that the population is normally distributed and
test at the 0.01 level of significance.
The decision rule is: Reject H0 if the calculated z > 2.33.
ANS: F

PTS: 1

OBJ: Section 10.8

30. True or False


A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said
that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt
that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found
a mean of 18.17 and standard deviation of 4.60. Assume that the population is normally distributed and
test at the 0.01 level of significance.
The decision rule is: Reject H0 if the calculated t > 2.68 or if t < -2.68.
ANS: F
31. True or False

PTS: 1

OBJ: Section 10.8

A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said
that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt
that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found
a mean of 18.17 and standard deviation of 4.60. Assume that the population is normally distributed and
test at the 0.01 level of significance.
The decision rule is: Reject H0 if the calculated t < -2.405.
ANS: T

PTS: 1

OBJ: Section 10.8

32. True or False


A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said
that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt
that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found
a mean of 18.17 and standard deviation of 4.60. Assume that the population is normally distributed and
test at the 0.01 level of significance.
The decision is: Because the test statistic t = -2.81 falls in the rejection region, reject H0. At the 0.01
level, there is enough statistical evidence to conclude that the alternative hypothesis is true and that the
average P/E ratio for the stocks is less than 20.
ANS: T

PTS: 1

OBJ: Section 10.8

33. True or False


A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said
that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt
that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found
a mean of 18.17 and standard deviation of 4.60. Assume that the population is normally distributed and
test at the 0.01 level of significance.
The decision is: Because the test statistic t = 2.81 is greater than 2.33, reject H0. At the 0.01 level, the
sample data suggest that the average P/E ratio for the stocks is less than 20.
ANS: F

PTS: 1

OBJ: Section 10.8

34. True or False


A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said
that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt
that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found
a mean of 18.17 and standard deviation of 4.60. Assume that the population is normally distributed and
test at the 0.01 level of significance.
The decision is: Because the test statistic t = -2.83 is not less than -2.33, fail to reject H0. At the 0.01
level, the sample data suggest that the average P/E ratio for the stocks is not less than 20.
ANS: F

PTS: 1

MULTIPLE CHOICE
1. A Type I error occurs when we:
a. reject a false null hypothesis.
b. reject a true null hypothesis.
c. don't reject a false null hypothesis.

OBJ: Section 10.8

d. don't reject a true null hypothesis.


ANS: B

PTS: 1

OBJ: Section 10.1

2. In a criminal trial where the null hypothesis states that the defendant is innocent, a Type I error is made
when:
a. a guilty defendant is found not guilty.
b. an innocent person is found guilty.
c. a guilty defendant is found guilty.
d. an innocent person is found not guilty.
ANS: B

PTS: 1

OBJ: Section 10.1

3. A Type II error is defined as:


a. rejecting a true null hypothesis.
b. rejecting a false null hypothesis.
c. failing to reject a true null hypothesis.
d. failing to reject a false null hypothesis.
ANS: D

PTS: 1

OBJ: Section 10.1

4. Which of the following statements is not true?


a. The probability of making a Type I error is represented by the Greek letter .
b. The probability of making a Type II error is represented by the Greek letter .
c. The probability of making a Type II error is referred to as the level of significance.
d. For a given sample, reducing the probability of a Type I error increases the probability of a
Type II error.
e. A Type I error can only occur if we reject the null hypothesis.
ANS: C

PTS: 1

OBJ: Section 10.1

5. If a hypothesis is rejected at the .025 level of significance, it:


a. must be rejected at any level.
b. must be rejected at the .01 level.
c. must not be rejected at the .01 level.
d. may be rejected or not rejected at the .01 level.
ANS: D

PTS: 1

OBJ: Section 10.1

6. In a criminal trial where the null hypothesis states that the defendant is innocent, a Type II error is
made when:
a. a guilty defendant is found not guilty.
b. an innocent person is found guilty.
c. a guilty defendant is found guilty.
d. an innocent person is found not guilty.
ANS: A

PTS: 1

OBJ: Section 10.1

7. A professor of math refutes the claim that the average student spends 3 hours studying for the midterm
exam. Which hypothesis is used to test the claim?
a. H0:
3, H1: > 3
b. H0: = 3, H1:
3
c. H0:
3, H1: = 3
d. H0: = 3, H1: < 3
ANS: B

PTS: 1

OBJ: Section 10.1

8. In a two-tail test for the population mean, if the null hypothesis is rejected when the alternative
hypothesis is true then:
a. a Type I error is committed.
b. a Type II error is committed.
c. a correct decision is made.
d. a one-tail test should be used instead of a two-tail test.
ANS: C

PTS: 1

OBJ: Section 10.1

9. In a one-tail test for the population mean, if the null hypothesis is not rejected when the alternative
hypothesis is true then:
a. a Type I error is committed.
b. a Type II error is committed.
c. a one-tail test should be used instead of a two-tail test.
d. a two-tail test should be used instead of a one-tail test.
ANS: B

PTS: 1

OBJ: Section 10.1

10. A spouse stated that the average amount of money spent on Christmas gifts for immediate family
members is above $1200. The correct set of hypotheses is:
a. H0: = 200, H1: < 1200
b. H0: > 1200, H1: = 1200
c. H0: = 1200, H1: > 1200
d. H0: < 1200, H1: = 1200
ANS: C

PTS: 1

OBJ: Section 10.1

11. If we reject the null hypothesis, we conclude that:


a. there is enough statistical evidence to infer that the alternative hypothesis is true.
b. there is not enough statistical evidence to infer that the alternative hypothesis is true.
c. there is enough statistical evidence to infer that the null hypothesis is true.
d. the test is statistically insignificant at whatever level of significance the test was
conducted.
ANS: A

PTS: 1

OBJ: Section 10.2

12. If we do not reject the null hypothesis, we conclude that:


a. there is enough statistical evidence to infer that the alternative hypothesis is true.
b. there is not enough statistical evidence to infer that the alternative hypothesis is true.
c. there is enough statistical evidence to infer that the null hypothesis is true.
d. the test is statistically insignificant at whatever level of significance the test was
conducted.
ANS: B

PTS: 1

OBJ: Section 10.2

13. The p-value of a test is:


a. the smallest at which the null hypothesis can be rejected.
b. the largest at which the null hypothesis can be rejected.
c. the smallest at which the null hypothesis cannot be rejected.
d. all of the above.
ANS: A

PTS: 1

14. Consider testing the hypothesis H0:

OBJ: Section 10.3


= 800 vs. H1:

800.

If the value of the test statistic z equals 1.75, then the p-value is:
a. 0.0401.
b. 0.0802.
c. 0.4599.
d. 0.9198.
ANS: B

PTS: 1

OBJ: Section 10.3

15. In a one-tail test, the p-value is found to be equal to .068. If the test had been two-tail, the p-value
would have been:
a. 0.932.
b. 0.466.
c. 0.034.
d. 0.136.
ANS: D

PTS: 1

OBJ: Section 10.3

16. In order to determine the p-value, which of the following is not needed?
a. The level of significance
b. Whether the test is one or two tail
c. The value of the test statistic
d. All of these are needed.
ANS: A

PTS: 1

17. Consider testing the hypotheses H0:


If n = 64, = 53.5, and
a. z = 1.96.
b. t = 1.64.
c. z = 2.80.
d. t = 1.96.
e. z = 1.64
ANS: C

OBJ: Section 10.3


= 50 vs. H1:

50.

= 10, then the value of the test statistic is:

PTS: 1

OBJ: Section 10.3

18. Which of the following p-values will lead us to reject the null hypothesis if
a. 0.15
b. 0.10
c. 0.05
d. 0.025
ANS: D

PTS: 1

= 0.05?

OBJ: Section 10.3

19. Suppose that we reject a null hypothesis at the .05 level of significance. Then for which of the
following values do we also reject the null hypothesis?
a. 0.06
b. 0.04
c. 0.03
d. 0.02
ANS: A

PTS: 1

OBJ: Section 10.3

20. Using the confidence interval when conducting a two-tail test for the population mean
reject the null hypothesis if the hypothesized value for :

we do not

a.
b.
c.
d.

is to the left of the lower confidence limit.


is to the right of the upper confidence limit.
falls between the lower and upper confidence limits.
falls in the rejection region.

ANS: C

PTS: 1

OBJ: Section 10.4

21. Based on sample data, the 90% confidence interval limits for the population mean are 170.86 and
195.42. If the 10% level of significance was used in testing the hypothesesH0: = 201, H1:
201,
the null hypothesis:
a. would be rejected.
b. would not be rejected.
c. would have to be revised.
d. none of these.
ANS: A

PTS: 1

OBJ: Section 10.4

22. A mortgage broker is offering home mortgages at a rate of 9.5% but is fearful that this value is higher
than many others are charging. A sample of 40 mortgages filed in the county court house shows an
average of 9.25% with a standard deviation of 8.61%. Does this sample indicate a smaller average?
Use = 0.05 and assume a normally distributed population.
a. Yes, the test statistic falls in the rejection region.
b. No, the test statistic falls in the acceptance region.
c. Yes, because the test statistic is greater than -1.645.
d. No, because the test statistic is -1.85 and falls in the rejection region.
e. Yes, because the sample mean of 9.25 is below 9.5.
ANS: B

PTS: 1

OBJ: Section 10.5

23. In testing the hypotheses H0: = 0.40, H1: > 0.40 at the 5% significance level, if the sample
proportion is .45, and the standard error of the sample proportion is .035, the appropriate conclusion
would be:
a. to reject H0.
b. not to reject H0.
c. to reject H1.
d. to reject both H0 and H1.
ANS: B

PTS: 1

OBJ: Section 10.6

24. The power of a test is the probability of making:


a. a correct decision when the null hypothesis is false.
b. a correct decision when the null hypothesis is true.
c. an incorrect decision when the null hypothesis is false.
d. an incorrect decision when the null hypothesis is true.
ANS: A

PTS: 1

OBJ: Section 10.7

NUMERIC RESPONSE
1. H0:

, H1:

Find
ANS: 2.575

; n > 30 and

= 0.01

PTS: 1

OBJ: Section 10.3

NARRBEGIN: Sermons
My daughter and I have argued about the average length of our preacher's sermons on Sunday
morning. Despite my arguments, she thinks that the sermons are more than twenty minutes (over
twenty minutes is important to her especially when soccer was playing on TV). For one year she has
randomly selected 12 Sundays and found the average time of 26.42 minutes with a standard deviation
of 6.69 minutes. Assuming that the population is normally distributed and using a 0.05 level of
significance, is my daughter correct in thinking that the average length of sermons is more than 20
minutes?
NARREND
2. What is the value of test statistic t?
re
ANS: 3.32
PTS: 1

OBJ: Section 10.5

NARRBEGIN: Bank
A bank holds the mortgage on a motel which the motel owner says has an average daily revenue of at
least $2048. In the event the average is not at least $2048, the bank will ask the motel owner for
additional collateral for the loan as protection against loan default. A loan officer is aware that the daily
average revenue is normally distributed and randomly selects 20 days during the last six months. The
sample has a mean of $2003 and standard deviation of $144.00. At the 0.01 level, is the bank loan
financially sound (should the bank ask for additional collateral)?
NARREND
3. What is the value of test statistic t?
ANS: -1.3975
PTS: 1

OBJ: Section 10.5

NARRBEGIN: Soft drink


A soft drink dispenser is set to automatically dispense drinks and ice in 8 oz. cups. The machine is set
to fill the cups with 7 1/4 oz. so that the liquid will not run over the top of the cup. The company is
getting complaints that the machine is filling the cups too full and spilling over. When the machine is
operating properly, only 1% of the cups will not be filled properly. The production manager conducted
a one-tail hypothesis test at the 0.01 level to check the machine. A sample of 50 fills was measured.
NARREND
4. What is the critical value of z?
ANS: 2.33
PTS: 1

OBJ: Section 10.6

5. What standard error will be associated with this test?


ANS: 0.0141
PTS: 1

OBJ: Section 10.6

6. For the critical z, identify the sample proportion that this z-value represents.
p = ____________________
ANS: 0.0428
PTS: 1

OBJ: Section 10.6

7. Calculate the probability of a Type II error for the following test of hypothesis H0:
> 50 given that = 55, =.05, = 10, and n = 16.

= 50 versus H1:

ANS: 0.3594
PTS: 1

OBJ: Section 10.7

8. A long-haul truck driver is eligible for a year-end bonus if the average miles driven per day are more
than 375 miles per eight-hour day. To determine whether or not a driver is to receive a year-end bonus,
a random sample of 36 days from the driver's logbook is taken and the sample mean is computed.
The hypotheses are: H0:
375 miles (no bonus) vs. H1: > 375 miles (eligible for bonus). If the
population standard deviation = 70 miles and the true mean is 405, what is the power of the test at
= 0.05?
ANS: 0.8238
PTS: 1

OBJ: Section 10.7

9. Determine the power for the following test of hypothesis, H0:


1000, = 0.10, = 200, and n = 25.

= 950 vs. H1:

950, given that

ANS: 0.3465
PTS: 1

OBJ: Section 10.7

COMPLETION
1. A Type II error is the probability of failing to reject a ____________________. It is represented by the
Greek letter ____________________.
ANS: false null hypothesis; beta
PTS: 1

OBJ: Section 10.1

2. A Type I error is represented by the Greek letter ____________________, which represents the
probability of rejecting a ____________________.
ANS: alpha; true null hypothesis
PTS: 1

OBJ: Section 10.1

3. The ____________________ will bound rejection and non-rejection regions for the null hypothesis.
ANS:

critical value
critical values
PTS: 1

OBJ: Section 10.2

4. The ____________________ is appropriate for hypothesis tests in which the sample standard
deviation(s) is used in estimating the value of the population standard deviation ( ).
ANS: t-test
PTS: 1

OBJ: Section 10.5

SHORT ANSWER
NARRBEGIN: Tail graph

NARREND
1. Using the above graph, choose the answers that indicate a right-tail test:
Area 1: ____________________
Area 2: ____________________
Area 3: ____________________
ANS:
Do not reject H0; Do not reject H0; Reject H0
PTS: 1

OBJ: Section 10.1

2. Using the above graph, choose the answers that indicate a left-tail test:
Area 1: ____________________
Area 2: ____________________
Area 3: ____________________
ANS:
Reject H0; Do not reject H0; Do not reject H0
PTS: 1

OBJ: Section 10.1

3. Using the above graph, choose the answers that indicate a two-tail test:
Area 1: ____________________
Area 2: ____________________
Area 3: ____________________
ANS:
Reject H0; Do not reject H0; Reject H0
PTS: 1

OBJ: Section 10.1

4. A researcher wants to carry out a hypothesis test involving the mean for a sample of size n = 15. He
does not know the true value of the population standard deviation, but is reasonably sure that the
underlying population is approximately normally distributed. Should he use a z-test or a t-test in
carrying out the analysis? Why?
ANS:
t-test; He should use a t-test to carry out the analysis since the population standard deviation is
unknown, but he is reasonably sure the population is approximately normally distributed.
PTS: 1

OBJ: Section 10.2

5. It has been claimed that no more than 3% of the units coming off an assembly line are defective.
Formulate a null hypothesis and an alternative hypothesis for this situation.
H0: ____________________
H1: ____________________
ANS:
0.03;
PTS: 1

> 0.03
OBJ: Section 10.2

6. It has been claimed that no more than 3% of the units coming off an assembly line are defective. Will
this test be a one-tail - left, a one tail - right, or a two-tail? Explain your answer.
ANS:
Right-tail; This is a one-tail test since this is a directional claim (no more than 3%). It is a right-tail test
since the alternative hypothesis has a greater-than sign. The rejection region is located in the right tail
of the standard normal curve.
PTS: 1

OBJ: Section 10.2

NARRBEGIN: Merit
In order to receive a merit raise a computer clerk must average less than 15 minutes per order form
processed. An across-the-board raise was given if the average is 15 minutes or more. The supervisor
randomly selects 36 order forms and carefully times the length of time required to enter all of the data
on each form. The significance level = 0.02. The average time to enter the 36 order forms is 14.36
minutes, and the population standard deviation is 3.03 minutes with a normal distribution. The test
question is: Should a merit raise be given?
NARREND

7. State the null and alternative hypotheses.


ANS:
H0: 15, H1: 15
PTS: 1

OBJ: Section 10.3

8. State the decision rule in terms of the critical value as well as the p-value.
ANS:
Reject H0 if z < -2.05 or if p-value < 0.02
PTS: 1

OBJ: Section 10.3

9. What is your conclusion?


Appropriate test: ____________________
Test statistic = ____________________
Conclusion: ____________________
ANS:
z-test; -1.267; Do not reject H0
PTS: 1

OBJ: Section 10.3

NARRBEGIN: Adult drink


A particular study claims that the average U.S. adult drinks 1.7 cups of coffee per day. To test this
claim, a sample of 35 adults were asked about their coffee consumption. The sample average was 1.95
cups per day. Assume the population standard deviation is 0.5 cups per day and set = 0.10.
NARREND
10. State the null and alternative hypothesis.
ANS:

PTS: 1

OBJ: Section 10.3

11. State the decision rule in terms of the critical value.


ANS:
If -1.64 z then fail to reject H0. If z orz , then reject H0
PTS: 1

OBJ: Section 10.3

12. What is your conclusion?


ANS:

Since z = 2.96, we reject H0.


PTS: 1

OBJ: Section 10.3

13. Calculate the p-value and state your conclusions.


ANS:
Since the p-value equals 0.003, which is less than
PTS: 1

= 0.10, we reject H0.

OBJ: Section 10.3

NARRBEGIN: Retail store


A retail store claims that the average age of their customers is less than 40 years old. A sample of 50
customers had an average age of 38.7 years. Assume the population standard deviation is 12.5 years
and use = 0.05.
NARREND
14. State the null and alternative hypothesis.
ANS:

PTS: 1

OBJ: Section 10.3

15. State the decision rule in terms of the critical value.


ANS:
If z -1.64then fail to reject H0. If z , then reject H0
PTS: 1

OBJ: Section 10.3

16. What is your conclusion?


ANS:
Since z = -0.735, we fail to reject H0.
PTS: 1

OBJ: Section 10.3

NARRBEGIN: Dimensions
The dimensions of a two by four board are not actually two inches by four inches. Rather the actual
dimensions are supposed to be 1.50 inches by 3.50 inches. A planer finishes the boards to the proper
dimensions. To maintain quality control, periodic checks are made to see that the planer is set to the
correct dimension. When the planer is adjusted properly, the average width is = 3.5 inches. If the
average width is not 3.5 inches, the planer must be adjusted. Thus the null hypothesis is = 3.5 inches
and the alternate hypothesis is
3.5 inches. For control purposes, a random sample of 49 boards is
taken twice daily. The standard deviation of the process is = 0.25 inches. To minimize the
unnecessary adjustment of the planer, the risk of a Type I error, , is set at 0.05.
NARREND
17. Determine the lower and upper critical values for .

Lower value = ____________________


Upper value = ____________________
ANS:
3.43; 3.57
PTS: 1

OBJ: Section 10.3

18. State the decision rule.


ANS:
If 3.43 inches
PTS: 1

3.57 inches, then fail to reject H0. If > 3.5784 inches, then reject H0.
OBJ: Section 10.3

NARRBEGIN: Light Bulb Mnf.


A light bulb manufacturer claims that the average life of their light bulb is more than 1000 hours. To
test this claim, a sample of 32 light bulbs had an average life of 1120 hours. Assume the population
standard deviation is 325 hours and use = 0.02.
NARREND
19. State the null and alternative hypothesis.
ANS:

PTS: 1

OBJ: Section 10.3

20. State the decision rule in terms of the critical value.


ANS:
If z then fail to reject H0. If z , then reject H0
PTS: 1

OBJ: Section 10.3

21. What is your conclusion?


ANS:
Since z = 2.09, we reject H0.
PTS: 1

OBJ: Section 10.3

22. State your conclusion using the p-value.


ANS:
Since the p-value equals 0.0183, which is less than
PTS: 1

OBJ: Section 10.3

NARRBEGIN: Local Restaurant

= 0.02, we reject H0.

A local restaurant claimed in an advertisement that at least 80% of their customers rate their
establishment as Excellent. An independent survey company asked 200 customers their opinion and
from this random sample, 168 customers rated the establishment Excellent. Use = 0.05.
NARREND
23. State the null and alternative hypotheses.
ANS:

PTS: 1

OBJ: Section 10.6

24. What is the p-value?


What are your conclusions?
ANS:
Since z = 1.41 and the p-value is 0.9207, we fail to reject the null hypothesis. There is not enough
evidence to conclude that at least 80% of their customers rate the establishment Excellent.
PTS: 1

OBJ: Section 10.6

25. A local restaurant claimed in an advertisement that at least 80% of their customers rate their
establishment as Excellent. An independent survey company asked 200 customers their opinion and
from this random sample, 84 customers rated the establishment Excellent. Use = 0.05.
State the decision rule in terms of the critical value.
ANS:
If z 1.645, reject H0. If z > 1.645, fail to reject H0.
PTS: 1
26. H0:

OBJ: Section 10.6


, H1:

; n > 30 and

= 0.10.

State the appropriate decision rule.


ANS:
If z -1.28 fail to reject H0. If z < -1.28, then reject H0
PTS: 1
27. H0:

OBJ: Section 10.3


, H1:

; n > 30 and

= 0.01

State the appropriate decision rule.


ANS:
If z 2.575 fail to reject H0. If z > 2.575 reject H0.
PTS: 1

OBJ: Section 10.3

NARRBEGIN: Restaurant
A restaurant claims that the average gratuity per table is $15.00. To test this claim, a sample of 18
tables was selected which had an average gratuity of $13.75 with a standard deviation of $2.60.
Assume the population of gratuities is normally distributed and use = 0.10.
NARREND
28. State the null and alternative hypotheses.
ANS:

PTS: 1

OBJ: Section 10.5

29. State the decision rule in terms of the critical value.


ANS:
If -1.740 t 1.740then fail to reject H0. If t 1.740ort 1.740, then reject H0.
PTS: 1

OBJ: Section 10.5

30. What is your conclusion?


ANS:
Since t = -2.040, we reject the null hypothesis. The claim that the average gratuity is $15.00 is not
supported by this sample.
PTS: 1

OBJ: Section 10.5

NARRBEGIN: Political candidate


A political candidate needs more then 50% of the votes to win the next election. In an effort to
convince contributors to his campaign, he samples 800 potential voters of which 432 indicated they
would vote for him. Use = 0.05.
NARREND
31. State the null and alternative hypotheses.
ANS:

PTS: 1

OBJ: Section 10.6

32. State the decision rule in terms of the critical value.


ANS:
If z 1.645then fail to reject H0. If z 1.645, then reject H0
PTS: 1
33. What is the p-value?

OBJ: Section 10.6

What are your conclusions?


ANS:
Since z = 2.26 and the p-value is 0.0119 we reject the null hypothesis, and conclude that the candidate
will receive more than 50% of the votes.
PTS: 1

OBJ: Section 10.6

NARRBEGIN: General Manager


The general manager of a large discount chain was considering location of a new store in a small midwestern city. The decision was dependent upon the per capita retail sales for the city being
significantly greater than $4500. A sample of 500 residents was taken, and showed a mean of $4780. A
population standard deviation of $2500 was known.
NARREND
34. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:
4500;
PTS: 1

> 4500
OBJ: Section 10.3

35. State the decision rule for

= 0.01.

ANS:
Reject H0 if z > 2.33, fail to reject H0 if z
PTS: 1

2.33.

OBJ: Section 10.3

36. Calculate the test statistic.


Appropriate test: ____________________
Test statistic = ____________________
ANS:
z-test; 2.504
PTS: 1

OBJ: Section 10.3

37. What is your conclusion?


ANS:
Reject H0; there is enough statistical evidence to conclude that the alternative hypothesis is true and
that the average per capita retail sales for the city is greater than $4500
PTS: 1

OBJ: Section 10.3

38. Determine the p-value associated with each of the following values of the standardized test statistic z.

A) Two-tail test, with z = 1.50


B) One-tail test, with z = 1.05
C) One-tail test, with z = -2.40
ANS:
0.1336; 0.1469; 0.0082
PTS: 1

OBJ: Section 10.3

NARRBEGIN: Tobacco Industry


The tobacco industry advertised that the per capita number of cigarettes sold per year was 3700. An
anti-smoking organization argued strongly that per capita consumption had declined.
NARREND
39. State the null and alternative hypotheses.
ANS:
H0: H1:
PTS: 1

OBJ: Section 10.3

40. State the decision rule for


ANS:
Reject H0 if z < - 1.645; fail to reject H0 if z -1.645
PTS: 1

OBJ: Section 10.3

41. During the last energy crisis, a government official claimed that the average car owner refilled the tank
when there was more than 3 gallons left. To check the claim, 10 cars were surveyed as they entered a
gas station. The amount of gas was measured and recorded as follows: 3, 5, 3, 2, 3, 3, 2, 6, 4, and 1. If
we assume that the amount of gas remaining in tanks is normally distributed with a standard deviation
of one gallon, can we conclude at the 10% significance level that the official was correct?
Appropriate test: ____________________
Test statistic = ____________________
Conclusion: _________________________
Interpretation: _____________________________________________
ANS:
z-test; 0.63; Do not reject H0; Official was not correct
PTS: 1

OBJ: Section 10.3

42. Use the given information to calculate the p-value and interpret the result:
H0:

= 15, H1:

15

= 5, n = 10, = 18.1,

= 0.03

p-value = ____________________
Interpretation: ____________________
ANS:
0.05; Do not reject H0
PTS: 1

OBJ: Section 10.3

43. Use the given information to calculate the p-value and interpret the result:
H0:

= 60, H1:

< 60

= 5, n = 100, = 59,

= 0.05

p-value = ____________________
Interpretation: ____________________
ANS:
0.0228; Reject H0
PTS: 1

OBJ: Section 10.3

44. Use the given information to calculate the p-value and interpret the result:
H0:

= 20, H1:

> 20

= 15, n = 50, = 22,

= 0.04

p-value = ____________________
Interpretation: ____________________
ANS:
0.1736; Do not reject H0
PTS: 1

OBJ: Section 10.3

45. Use the given information to calculate the p-value and interpret the result:
H0:

= 20, H1:

< 20

= 8.1 , n = 100, = 18.1,

= 0.025

p-value = ____________________
Interpretation: ____________________
ANS:

0.0094; Reject H0
PTS: 1

OBJ: Section 10.3

46. Use the given information to calculate the p-value and interpret the result:
H0:

= 40, H1:

40

= 5.5, n = 25, = 42,

= 0.10

p-value = ____________________
Interpretation: ____________________
ANS:
0.0344; Reject H0
PTS: 1

OBJ: Section 10.3

47. A filling machine is designed to fill soda bottles with 16 ounces of soda. The distribution for the
weight of the bottles is normal. Twenty bottles are selected and weighed. The sample mean is 15.3
ounces and sample standard deviation is 1.5 ounces. Develop a 90% confidence interval for this
sample. What can we conclude about this filling process with = 0.10?
ANS:
The 90% confidence interval is 14.72, 15.88. Since this interval does not include the expected
population mean of 16.0 ounces, we can conclude the process is not performing properly.
PTS: 1

OBJ: Section 10.4

48. Suppose that 9 observations are drawn from a normal population whose standard deviation is 2. The
observations are: 15, 9, 13, 11, 8, 12, 11, 7, and 10. At 95% confidence, you want to determine whether
the mean of the population from which this sample was taken is significantly different from 10.
A) State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
B) Compute the value of the test statistic.
C) Determine the rejection region.
D) Interpret the results.
ANS:
= 10;
PTS: 1

10; 1.0; Reject H0 if |z| > 1.96; Do not reject H0


OBJ: Section 10.3

49. The Admissions officer for the graduate programs at Michigan State University (MSU) believes that
the average score on the GRE exam at his university is significantly higher than the national average of
1300. Assume that the population standard deviation is 125 and a random sample of 25 scores had an
average of 1375.
A) State the appropriate null and alternative hypotheses.
H0: ____________________
H1: ____________________
B) Calculate the value of the test statistic.
C) What is your conclusion?
ANS:
= 1300;

> 1300; 3.0; The mean GRE score at MSU is higher than the national average.

PTS: 1

OBJ: Section 10.3

50. A social scientist claims that the average adult watches less than 26 hours of television per week. He
collects data on 25 individuals' television viewing habits and finds that the mean number of hours that
the 25 people spent watching television was 22.4 hours. If the population standard deviation is known
to be eight hours, can we conclude at the 1% significance level that he is right?
Appropriate test: ____________________
Test statistic = ____________________
Conclusion: ______________________________
ANS:
z-test; -2.25; The scientist is wrong
PTS: 1

OBJ: Section 10.3

NARRBEGIN: Table 1
Based on the sample data, a confidence interval has been constructed such that we have 95%
confidence that the population mean is between 75 and 105.
NARREND
51. What conclusion would be reached at the

= .05 level in testing H0:

= 85 versus H1:

= .05 level in testing H0:

= 125 versus H1:

85?

ANS:
Do not reject H0
PTS: 1

OBJ: Section 10.4

52. What conclusion would be reached at the


ANS:
Reject H0

125?

PTS: 1

OBJ: Section 10.4

53. What conclusion would be reached at the

= .05 level in testing H0:

= 100 versus H1:

= .05 level in testing H0:

= 65 versus H1:

100?

ANS:
Do not reject H0
PTS: 1

OBJ: Section 10.4

54. What conclusion would be reached at the

65?

ANS:
Reject H0
PTS: 1

OBJ: Section 10.4

55. For a sample of 36 items from a population for which the standard deviation
is 350. Construct a 95% confidence interval for the population mean.

= 12, the sample mean

____________________ to ____________________
ANS:
346.08; 353.92
PTS: 1

OBJ: Section 10.4

56. For a sample of 36 items from a population for which the standard deviation
the sample mean
is 350. Use the 95% confidence interval to test the hypothesis H0: = 400 versus H1:
400 at the
= .05 level of significance.
ANS:
Since the hypothesized value of = 400 falls outside the confidence limits (346.08 and 353.92), we
reject H0 at = 0.05
PTS: 1

OBJ: Section 10.4

NARRBEGIN: County Agricultural


A county agricultural analyst took a sample of average annual precipitation for 50 cities. He wanted to
test the null hypothesis that the average annual rainfall was at most 31.0 inches against the alternative
that it was greater than 31.0 inches. Assume that the sample standard deviation was 13.76, and the
sample mean was 34.74. Perform the appropriate test for the county analyst at the 0.05 level.
NARREND
57. What is the decision rule?
ANS:
Reject H0 if the calculated t > 1.677.
PTS: 1

OBJ: Section 10.5

58. Calculate the test statistic and write your conclusion.


Appropriate test: ____________________

Test statistic = ____________________


Conclusion: __________________________
ANS:
t-test; 1.922; Reject H0
PTS: 1

OBJ: Section 10.5

59. What is the interpretation of your conclusion?


ANS:
At the 0.05 level of significance, there is enough statistical evidence to conclude that the alternative
hypothesis is true and that the average annual rainfall in the 50 cities is greater than 31 inches.
PTS: 1

OBJ: Section 10.5

60. A parents group in New York City was concerned with the alcohol content in an over-the-counter
cough syrup. They felt that the content was greater than the 2 cc/bottle stated on the label. A sample of
30 bottles showed an average alcohol content of 3.1 cc/bottle with a standard deviation of 2 cc./bottle.
Using a 0.05 level of significance and assuming a normal distribution, does the sample indicate that
the alcoholic content is above 2 cc/bottle?
Appropriate test: ____________________
Test statistic = ____________________
Conclusion: ____________________
Interpretation: _________________________________________________________
ANS:
t-test; 3.01; Reject H0; Parents are correct
PTS: 1

OBJ: Section 10.5

61. A production engineer is checking the volume in cans of paint as the cans leave the filling line. The
machine is set to fill the cans with 4 liters. However, the engineer wishes to determine if the cans are
being filled with less than 4 liters. A sample of 36 is taken. The sample shows a mean of 3.97 and a
standard deviation of 0.14. Conduct the appropriate test at the 0.01level of significance.
Appropriate test: _____________________
Test statistic = ____________________
Conclusion: ____________________
Interpretation: ____________________________________________________
ANS:
t-test; -1.286; Do not reject H0; The cans are filled properly
PTS: 1

OBJ: Section 10.5

NARRBEGIN: Sermons
My daughter and I have argued about the average length of our preacher's sermons on Sunday
morning. Despite my arguments, she thinks that the sermons are more than twenty minutes (over
twenty minutes is important to her especially when soccer was playing on TV). For one year she has
randomly selected 12 Sundays and found the average time of 26.42 minutes with a standard deviation
of 6.69 minutes. Assuming that the population is normally distributed and using a 0.05 level of
significance, is my daughter correct in thinking that the average length of sermons is more than 20
minutes?
NARREND
62. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:
20;

> 20

PTS: 1

OBJ: Section 10.5

63. What is the decision rule?


ANS:
Reject H0 if t > 1.796
PTS: 1

OBJ: Section 10.5

64. What is the conclusion?


ANS:
Reject H0. The average sermon length is more than twenty minutes.
PTS: 1

OBJ: Section 10.5

NARRBEGIN: Bank
A bank holds the mortgage on a motel which the motel owner says has an average daily revenue of at
least $2048. In the event the average is not at least $2048, the bank will ask the motel owner for
additional collateral for the loan as protection against loan default. A loan officer is aware that the daily
average revenue is normally distributed and randomly selects 20 days during the last six months. The
sample has a mean of $2003 and standard deviation of $144.00. At the 0.01 level, is the bank loan
financially sound (should the bank ask for additional collateral)?
NARREND
65. State the null and alternative hypotheses.
ANS:
H0: H1:
PTS: 1

OBJ: Section 10.5

66. What is the decision rule?

ANS:
Reject H0 if t < -2.539
PTS: 1

OBJ: Section 10.5

67. What is the conclusion?


ANS:
Do not reject H0. The bank should not ask for additional collateral.
PTS: 1

OBJ: Section 10.5

NARRBEGIN: Life span


Research has claimed that the average life span of a male mosquito is 15 days. To test this claim, the
life spans of 20 male mosquitos were observed to have an average of 16.5 days and a standard
deviation of 2.2 days. Assume that the life spans are normally distributed and set = 0.05.
NARREND
68. State the null and alternative hypotheses.
ANS:
H0:
H1:
PTS: 1

OBJ: Section 10.5

69. State the decision rule in terms of the critical value.


ANS:
If -2.093
PTS: 1

t 2.093, fail to reject H0. If t < -2.093 or t > 2.093, then reject H0.
OBJ: Section 10.5

70. State your conclusion.


ANS:
Since t = 3.05, we reject the null hypothesis and conclude that the average life span of male mosquitos
is not 15 days.
PTS: 1

OBJ: Section 10.5

NARRBEGIN: Golf
A round of golf on your typical course requires at least 4.5 hours. A particular golf club claims that the
average length of time to complete a round of golf on their course is less than 4.5 hours. To test this
claim, the club sampled 15 golfers and recorded their time to finish their round. The sample average
was 4.4 hours with a standard deviation of 0.8 hours. Assume the time to complete a round of golf is
normally distributed and use = 0.01.
NARREND
71. State the null and alternative hypotheses.
ANS:

PTS: 1

OBJ: Section 10.5

72. State the decision rule in terms of the critical value.


ANS:
If t then fail to reject H0. If t , then reject H0.
PTS: 1

OBJ: Section 10.5

73. State your conclusions.


ANS:
Since t = -0.484, we fail to reject the null hypothesis. There does not appear to be a basis for the claim
that the average round of golf can be completed in less than 4.5 hours.
PTS: 1

OBJ: Section 10.5

74. A random sample of 10 observations was drawn from a large population. The data values were: 22, 17,
27, 20, 23, 19, 24, 18, 19, and 24.
A) Estimate the population mean with 90% confidence.
____________________ to ____________________
B)

Test to determine if we can infer at the 5% significance level that the population mean is
not equal to 20.

H0: ____________________
H1: ____________________
Appropriate test: ____________________
Test statistic = ____________________
Conclusion: ______________________
C) What is the required condition of the techniques used in parts (a) and (b)?
D) What graphical device can you use to check to see if that required condition is satisfied?
ANS:
19.446; 23.154; = 20;
20; t-test; 1.285; Do not reject H0; The population is approximately
normally distributed.; Histogram
PTS: 1

OBJ: Section 10.5

75. A random sample of 10 observations was drawn from a large population. The data values were: 6, 4, 4,
7, 5, 5, 4, 5, 6, and 4 Test to determine if we can infer at the 5% significance level that the population
mean is less than 6.

ANS:
H0: = 6, H1: 6, Rejection region: t < -t.05, 9 = -1.833; Test statistic: t = -3.0; Reject H0, that is,
enough statistical evidence to suggest that the population mean is less than 6
PTS: 1

OBJ: Section 10.5

76. A random sample of 7 observations was drawn from a normal population. The following summations
were computed: xi = 63.5 and xi 2 = 580.2.
Test the following hypotheses: H0:

= 8, H1:

> 8, at the 1% significance level.

Appropriate test:____________________
Test statistic = ____________________
Conclusion: ____________________
ANS:
t-test; 3.403; Reject H0
PTS: 1

OBJ: Section 10.5

77. Use the following information to test at a 0.01 level of significance. n = 400; p = 0.03;
H0:
0.05, H1: < 0.05.
Compute the test statistic.
Appropriate test: ____________________
Test statistic = ____________________
ANS:
z-test; -1.835
PTS: 1

OBJ: Section 10.6

78. Use the following information to test at a 0.01 level of significance. n = 400; p = 0.03;
H0:
0.05, H1: < 0.05.
State the conclusion.
ANS:
Do not reject H0; there is not enough statistical evidence to conclude that the alternative hypothesis is
true
PTS: 1
79. n = 225; p = 0.13; H0:

OBJ: Section 10.6


= 0.10, H1:

0.10;

Compute the test statistic.


Appropriate test: ____________________

= 0.02

Test statistic = ____________________


ANS:
z-test; 1.50
PTS: 1
80. n = 225; p = 0.13; H0:

OBJ: Section 10.6


= 0.10, H1:

0.10;

= 0.02

State the conclusion:


ANS:
Do not reject H0; there is not enough statistical evidence to conclude that the alternative hypothesis is
true
PTS: 1

OBJ: Section 10.6

NARRBEGIN: Soft drink


A soft drink dispenser is set to automatically dispense drinks and ice in 8 oz. cups. The machine is set
to fill the cups with 7 1/4 oz. so that the liquid will not run over the top of the cup. The company is
getting complaints that the machine is filling the cups too full and spilling over. When the machine is
operating properly, only 1% of the cups will not be filled properly. The production manager conducted
a one-tail hypothesis test at the 0.01 level to check the machine. A sample of 50 fills was measured.
NARREND
81. What are the appropriate hypotheses?
ANS:
H0: H1:
PTS: 1

OBJ: Section 10.5

82. For the critical z, identify the sample proportion that this z-value represents.
p = ____________________
Use the value of p determined above to state a decision rule for the test.
ANS:
0.0428; Reject H0 if p > 0.0428
PTS: 1

OBJ: Section 10.6

83. What is the probability that the manager will fail to reject a false H0 if the actual population proportion
of defects is 0.03?
Z = ____________________
= ____________________
ANS:
0.91; 0.8186

PTS: 1

OBJ: Section 10.6

84. A random sample of 200 observations shows that there are 36 successes. Can we conclude at the 1%
significance level that the true proportion of successes in the population is less than 24%?
ANS:
H0: = 0.24, H1: < 0.24; Rejection region: z < -z.01=-2.33; Test statistic: z = -1.99; Fail to reject H0;
PTS: 1

OBJ: Section 10.6

85. The power of the test refers to the probability of:


ANS:
rejecting a false null hypothesis.
PTS: 1

OBJ: Section 10.7

86. A hypothesis test has been set up and is to be conducted at the


sample is doubled, what will be the effect on ? On ?

=.025 level of significance. If the

ANS:
None; Decrease
PTS: 1

OBJ: Section 10.7

NARRBEGIN: Mr. Perfection


Mr. Perfection, the owner of a small unique restaurant called the Village Feed Store, is concerned with
the waiting time for patrons on Sunday morning - the busiest day of the week. He is fearful that,
though his establishment is extremely popular, excess waiting time will drive customers to Kenny's, a
restaurant down the street. The hostess insists that customers do not have to wait more than an average
of 10 minutes before being seated, but Mr. Perfection feels that the waiting time is longer. He takes a
random sample of 100 customers over several Sundays. Assume that the population standard deviation
= 12 minutes, and that the significance level = 0.05.
NARREND
87. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:
10;
PTS: 1

> 10
OBJ: Section 10.8

88. What is the decision rule in terms of the sample mean ?


ANS:
Reject H0 if > 11.974
PTS: 1

OBJ: Section 10.8

89. What is the probability of making a Type II error if the true mean is 14?
ANS:
= 0.0455
PTS: 1

OBJ: Section 10.8

90. What is the power of the test?


ANS:
Power = 1 - = 0.9545
PTS: 1

OBJ: Section 10.7

91. In statistics, what does each of the following symbols represent?


a. ___________________________________________
b. ___________________________________________
c. 1 - ___________________________________________
d. H0 ___________________________________________
e. H1 ___________________________________________
ANS:
a. Alpha, represents the probability of making a Type I error.
b. Beta, represents the probability of making a Type II error.
c. The power of a test (the probability that the test will correctly reject a fall null hypothesis)
d. Null hypothesis
e. Alternative hypothesis
PTS: 1

OBJ: Section 10.8

ESSAY
1. What is a null hypothesis?
ANS:
A statement about the value of a population parameter; it is put up for testing in the face of numerical
evidence.
PTS: 1

OBJ: Section 10.1

2. What is an alternative hypothesis?


ANS:
An alternative hypothesis is an assertion that holds if the null hypothesis is false.
PTS: 1

OBJ: Section 10.1

3. What is a one-tail test?


ANS:
A one-tail test is one in which a null hypothesis can be rejected by an extreme result in one direction
only.
PTS: 1

OBJ: Section 10.1

4. What is a two-tail test?


ANS:
A two-tail test is one in which a null hypothesis can be rejected by an extreme result occurring in either
direction.
PTS: 1

OBJ: Section 10.1

5. An executive with a fast food restaurant believes a street located near a major highway interchange
will be a profitable location. A random sample of sixty days is taken to estimate the average cars per
day passing by the location. On the basis of the sample data, the executive concludes that the average
is not high enough to yield a profitable outlet. Six months later a competitor builds at the same location
and reports it to be one of its best-profit new stores. Describe the type of error made by the executive.
ANS:
Apparently a minimum number of cars passing by the location is needed to be profitable. Since the
average number of cars in the sample was not enough to make a profitable outlet in the judgment of
the executive, he rejected the hypothesis of profitability. When another company built a store on the
same location , which was profitable, it showed the mistake, which had been made. In statistical terms,
the executive committed a Type I error (erroneously rejecting a true null hypothesis).
PTS: 1

OBJ: Section 10.1

6. Identify the following equation:


ANS:
Equation for calculating test statistic, z-test for sample proportion.
PTS: 1

OBJ: Section 10.6

7. What is a power curve and how is it applicable to hypothesis testing?


ANS:
The power of a test is the probability that the test will respond correctly by rejecting a false null
hypothesis. By calculating the power of the test (1 - ) for several assumed values for the population
mean and plotting the power (on the vertical axis) versus the population mean (on the horizontal axis),
we arrive at the power curve. By looking at the power curve, we can get an idea of how powerful the
hypothesis test is for different possible values of the population mean.
PTS: 1

OBJ: Section 10.7

8. What is an operating characteristic curve and how is it related to the power curve for a test?
ANS:

The operating characteristic (OC) curve plots the probability that the hypothesis test will not reject the
null hypothesis for assumed values for the population mean. The OC curve is the complement of the
power curve. It is found by plotting (on the vertical axis) versus the population mean (on the
horizontal axis).
PTS: 1

OBJ: Section 10.7

Chapter 11: Hypothesis Tests Involving Two Sample Means


TRUE/FALSE
1. True or False
When comparing the mean of two dependent samples, we are interested in only one variable: the
difference between measurements for each person or object.
ANS: T

PTS: 1

OBJ: Section 11.2

2. True or False
A typical example of dependent samples occurs when we have before-and-after measures of the same
individuals.
ANS: T

PTS: 1

OBJ: Section 11.1

3. True or False
An important factor in choosing between the pooled-variances t-test and the unequal-variances t-test is
whether we can assume the population means might be equal.
ANS: F

PTS: 1

OBJ: Section 11.1

4. True or False
Although it is often associated only with small-sample tests, the t distribution is appropriate when the
population standard deviations are unknown, regardless of how large or small the samples happen to
be.
ANS: T

PTS: 1

OBJ: Section 11.2

5. True or False
When the population standard deviations are unknown and not assumed to be equal, pooling the
sample standard deviations into a single estimate of their common population value is no longer
applicable.
ANS: T

PTS: 1

OBJ: Section 11.3

6. True or False
When the population standard deviations are unknown and are not assumed to be equal, s1 and s2 must
be used to estimate their respective population standard deviations, 1 and 2.
ANS: T
7. True or False

PTS: 1

OBJ: Section 11.3

The number of degrees of freedom associated with the unequal-variances t-test for comparing the
means of two independent samples is n1 + n2 - 2.
ANS: F

PTS: 1

OBJ: Section 11.3

8. True or False
When either test can be applied to the same data, the z-test for comparing the means of two
independent samples is preferable to the unequal-variances t-tests, especially when doing the test with
computer assistance.
ANS: F

PTS: 1

OBJ: Section 11.3

9. True or False
The z-test requires no assumptions about the shape of the population distributions as long as both n1
and n2 are 30.
ANS: T

PTS: 1

OBJ: Section 11.4

10. True or False


The z-test approximation to the unequal variance t-test assumes that the population standard
deviations, 1 and 2 , are known.
ANS: F

PTS: 1

OBJ: Section 11.4

11. True or False


If we wish to examine the before-and-after productivity of individual employees after a change in their
workstation layout, a matched-pairs t-test is applicable.
ANS: T

PTS: 1

OBJ: Section 11.5

12. True or False


If we wish to compare the before-and-after reading speeds of individual participants in a speed-reading
course, the z-test for comparing the means of two independent samples is appropriate.
ANS: F

PTS: 1

OBJ: Section 11.5

13. True or False


The comparison of sample proportions from two independent samples relies on the t-distribution and
assumes that the two populations are normally distributed.
ANS: F

PTS: 1

OBJ: Section 11.6

14. True or False


The F distribution is the sampling distribution of
that would result if two samples were
repeatedly drawn from the same, normally distributed population.
ANS: T

PTS: 1

OBJ: Section 11.7

15. True or False


Unlike the t distribution, the exact shape of the F distribution is determined by two different degrees of
freedom instead of just a single value.
ANS: T

PTS: 1

OBJ: Section 11.7

16. True or False


Independent samples are those for which the selection process for one is not related to the selection
process for the other.
ANS: T

PTS: 1

OBJ: Section 11.8

17. True or False


Comparing the means or proportions from two independent samples requires comparing the calculated
value of a test statistic with the computed p-value, then deciding whether the null hypothesis should be
rejected.
ANS: F

PTS: 1

OBJ: Section 11.8

18. True or False


One of the most useful applications of business statistics involves comparing two samples to examine
whether a difference between them is significant or more likely due to chance variation from one
sample to the next.
ANS: T

PTS: 1

OBJ: Section 11.8

19. True or False


An example of dependent samples occurs when subjects are randomly assigned to the experimental
and control groups of an experiment.
ANS: F

PTS: 1

OBJ: Section 11.8

20. True or False


A typical example of independent samples occurs with before-and-after measurements for the same
individuals or test units.
ANS: F

PTS: 1

OBJ: Section 11.8

21. True or False


A special hypothesis test, based on the t-distribution, can be applied to test the null hypothesis that the
population variances are equal for two independent samples.
ANS: F

PTS: 1

OBJ: Section 11.8

MULTIPLE CHOICE
1. A political analyst in Texas surveys a random sample of registered Democrats and compares the results
with those obtained from a random sample of registered Republicans. This would be an example of:
a. Independent samples.
b. dependent samples.
c. Independent samples only if the sample sizes are equal.
d. Dependent samples only if the sample sizes are equal.
ANS: A

PTS: 1

OBJ: Section 11.1

2. In testing the difference between two population means using two independent samples, we use the
pooled variance in estimating the standard error of the sampling distribution of the sample mean
difference
if the:

a.
b.
c.
d.

sample sizes are both large.


populations are at least normally distributed with equal variances.
populations are non-normal with unequal variances.
All of these are required conditions.

ANS: B

PTS: 1

OBJ: Section 11.2

3. In testing whether the means of two normal populations are equal, summary statistics computed for
two independent samples are as follows:

Assume that the population variances are equal. Then, the standard error of the sampling distribution
of the sample mean difference
is equal to:
a. 0.1017.
b. 1.2713.
c. 0.3189.
d. 1.1275.
ANS: C

PTS: 1

OBJ: Section 11.2

4. Two samples of sizes 25 and 35 are independently drawn from two normal populations, where the
unknown population variances are assumed to be equal. The number of degrees of freedom of the
equal-variances t-test statistic is:
a. 60.
b. 59.
c. 58.
d. 35.
ANS: C

PTS: 1

OBJ: Section 11.2

5. In testing the difference between two population means using two independent samples, the sampling
distribution of the sample mean difference
is normal if the:
a. sample sizes are both greater than 30.
b. populations are normal.
c. populations are non-normal and the sample sizes are large.
d. population sizes are both greater than 30.
e. all of these are required conditions.
ANS: B

PTS: 1

OBJ: Section 11.3

6. In testing the difference between two population means using two independent samples, the population
standard deviations are assumed to be unknown, each sample size is 30, and the calculated test
statistic z = 2.56. If the test is two-tail and 5% level of significance has been specified, the conclusion
should be to:
a. reject the null hypothesis.
b. not to reject the null hypothesis.
c. choose two other independent samples.
d. none of these answers is correct.

ANS: A

PTS: 1

OBJ: Section 11.4

7. When the necessary conditions are met, a two-tail test is being conducted to test the difference
between two population means, but your statistical software provides only a one-tail area of 0.036 as
part of its output. The p-value for this two-tail test will be:
a. 0.018.
b. 0.009.
c. 0.072.
d. 0.964.
ANS: C

PTS: 1

OBJ: Section 11.4

8. The number of degrees of freedom associated with the t test, when the data are gathered from a
matched pairs experiment with 13 pairs, is:
a. 13.
b. 26.
c. 12.
d. 24.
ANS: C

PTS: 1

OBJ: Section 11.5

9. Diet and health have become big business, but many people are not following good health practices. In
1980, a survey of 150 indicated that 30 percent said that at least one time during that year they had five
or more alcoholic drinks in one sitting. In 2000, a similar survey of 150 showed that 38 percent had
five drinks in one sitting at least one time during the year. Does this represent a significant increase?
Use 0.01 level of significance.
a. The test statistic of -1.46 is not less than -1.96; therefore, the sample evidence indicates
that there has been no significant change in the proportion of those who drink heavily at
least one day during the year.
b. The test statistic of -1.46 is not less than -2.58; therefore, the sample evidence indicates
that there has been no significant change in the proportion of those who drink heavily at
least one day during the year.
c. The test statistic of -1.46 is not less than -2.33; therefore, the sample evidence indicates
that there has not been significant change in the proportion of those who drink heavily at
least one day during the year.
d. The test statistic of -2.56 is less than -2.33; therefore, the sample evidence indicates that
there has been significant change in the proportion of those who drink heavily at least one
day during the year.
e. The test statistic of -2.56 is less than -2.58; therefore, the sample evidence indicates that
there has been significant change in the proportion of those who drink heavily at least one
day during the year.
ANS: C

PTS: 1

OBJ: Section 11.6

10. When the necessary conditions are met, a two-tail test is being conducted to test the difference
between two population proportions. The two sample proportions are p1 = 0.25 and p2 = 0.20, and the
standard error of the sampling distribution of p1 - p2 is 0.04. The calculated value of the test statistic
will be:
a. z = 0.25.
b. z = 1.25.
c. t = 0.25.
d. t = 0.80.
ANS: B

PTS: 1

OBJ: Section 11.6

11. A sample of size 100 selected from one population has 60 successes, and a sample of size 150 selected
from a second population has 95 successes. The test statistic for testing the equality of the population
proportions equal to:
a. -0.5319.
b. 0.7293.
c. -0.419.
d. 0.2702.
ANS: A

PTS: 1

OBJ: Section 11.6

12. When the necessary conditions are met, a two-tail test is being conducted to test the difference
between two population proportions. If the value of the test statistic z is 2.05, then the p-value is:
a. 0.4798.
b. 0.0404.
c. 0.2399.
d. 0.0202.
ANS: B

PTS: 1

OBJ: Section 11.6

13. In testing for the equality of two population variances, when the populations are normally distributed,
the 10% level of significance has been used. To determine the rejection region, it will be necessary to
refer to the F table corresponding to an upper-tail area of:
a. 0.90.
b. 0.05.
c. 0.20.
d. 0.10.
ANS: B

PTS: 1

OBJ: Section 11.7

14. Which of the following statements are true?


a. The pooled-variances t-test is used whenever the population standard deviations are
assumed to be equal regardless of the sample size.
b. The unequal-variances t-test is used whenever the population standard deviations are
unknown and cannot be assumed to be equal.
c. The z-test can be used as a close approximation to the unequal-variances t-test when the
population standard deviations are not assumed to be equal, but samples are large (each n
30).
d. All of these statements are true.
e. None of these statements is true.
ANS: D

PTS: 1

OBJ: Section 11.8

NUMERIC RESPONSE
1. Assume two normally distributed populations with equal population standard deviations. A random
sample is taken from each population. Determine the standard error of the estimate for the following
situation:

ANS: 2.48
PTS: 1

OBJ: Section 11.2

NARRBEGIN: Price earnings


A comparison of the price-earnings (P/E) ratio for the top and bottom 100 companies in valuation is
being prepared. A financial advisor randomly sampled each group to determine whether there is any
difference in P/E ratios of the two groups of companies. Let 1 = a top 100 company and 2 = a bottom
100 company. Assume equal population variances and that the populations are normally distributed.
The advisor is to use a 0.01 significance level. The data were randomly selected and are summarized
below:

NARREND
2. Calculate the standard error of the estimate.
ANS: 4.776
PTS: 1

OBJ: Section 11.2

NARRBEGIN: Realtor
A new realtor in a large community is attempting to determine differences in the selling prices of
houses in two sections of the community. Population 1 is the Northeast and Population 2 is the
Southwest. The realtor is going to perform the hypothesis test: H0:
H1:
A random sample of 35 sale homes is taken from the Northeast and 41 from those in the
Southwest using the multiple listing services. A Minitab summary of the results of the two samples
expressed in thousands follows:

NARREND
3. What is the standard error of the difference between the two means?
ANS: 10.410
PTS: 1

OBJ: Section 11.4

4. What is the value of the test statistic?


z = ____________________
ANS: 2.526
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Traffic Coordinator

A traffic coordinator for a community wishes to determine whether or not there is any difference in the
average age of female and male drivers involved in rear-end accidents. The hypothesis test is: H0:
(no difference in mean age)
H1:
(mean age is different) A random sample of males and females involved in rear-end
accidents results in the following Minitab summary:

NARREND
5. What is the standard error of the difference between the two means?
ANS: 2.314
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Women drivers


In the past, young women drivers have maintained a better driving record than young men drivers. An
insurance company is concerned with the driving record of its insured customers. Specifically, it
conducts a test for the number of speeding tickets received during the past year by drivers between the
ages of 18 and 25.

NARREND
6. A test for the equality of average number of tickets per driver for the two groups is desired. Use
0.01. Calculate the p-value for this test.

ANS: 0.1646
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Chrysler corp


Chrysler Corp. is responding to an advertisement by Toyota, which claims that its compact version
gets much better gasoline mileage for in-city driving than any U.S. made car. Below are the results of
surveys conducted to test the claim. Perform the appropriate test at the 0.01 significance level.

NARREND
7. What is the p-value?

ANS: 0.3557
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Medicare
An economist wishes to test whether there is any difference in the proportion of households receiving
Medicare for white households with less than $5,000 income per year and white households with
$15,000 or more income per year. A random sample from households with less than $5,000 income per
year is taken, and a random sample of households with $15,000 or more income is taken. The results
of the samples are:

NARREND
8. Use a 0.01 significance level to determine if there is sufficient evidence to conclude that a difference in
proportions exists. Calculate the standard error of estimate.
ANS: 0.039
PTS: 1

OBJ: Section 11.6

NARRBEGIN: Ford Motor Co.


The Ford Motor Company, as part of its quality control program, began returning to the supplier all
shipments of steel that had defects or faulty chemistry. When Ford began this program, the defective
rate in 100 shipments was 9%. A recent survey indicated that 2.2% in 136 shipments was defective.
Does this represent a significant improvement in the quality of the steel? Test at the 0.05 level.
NARREND
9. What is the p-value?
ANS: 0.0094
PTS: 1

OBJ: Section 11.6

NARRBEGIN: Production Line


A quality control inspector keeps a tally sheet of the number of acceptable and unacceptable products
that come off two different production lines. The completed sheet is shown below.

NARREND
10. What is the p-value of the test?
ANS: 0.0375
PTS: 1

OBJ: Section 11.6

COMPLETION
1. ____________________ samples are those for which the selection process for one is not related to the
selection process for the other.
ANS: Independent
PTS: 1

OBJ: Section 11.1

2. We say samples are ____________________ when the selection process for one is related to the
selection process for the other.
ANS: dependent
PTS: 1

OBJ: Section 11.1

3. The pooled-variances t-test requires the assumption that the two population
___________________________________ are equal, and that the populations are at least
___________________________________ distributed.
ANS: standard deviations; approximately normally
PTS: 1

OBJ: Section 11.2

4. The ____________________ approximation is an alternative to the unequal-variances t-test whenever


both n1 and n2 are 30.
ANS: z-test
PTS: 1

OBJ: Section 11.4

5. Tests in which samples are not independent are referred to as ______________________________.


ANS: matched pairs
PTS: 1

OBJ: Section 11.5

6. A test that we can use to determine whether two population variances are equal is the
____________________.
ANS: F-test
PTS: 1

OBJ: Section 11.7

7. When comparing the means of two independent samples, the ____________________ is applicable
whenever the population standard deviations are unknown.
ANS: t-test
PTS: 1

OBJ: Section 11.8

SHORT ANSWER
NARRBEGIN: Price earnings
A comparison of the price-earnings (P/E) ratio for the top and bottom 100 companies in valuation is
being prepared. A financial advisor randomly sampled each group to determine whether there is any
difference in P/E ratios of the two groups of companies. Let 1 = a top 100 company and 2 = a bottom
100 company. Assume equal population variances and that the populations are normally distributed.
The advisor is to use a 0.01 significance level. The data were randomly selected and are summarized
below:

NARREND
1. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:
;
PTS: 1

OBJ: Section 11.2

2. What is the value of the test statistic?


Appropriate test: ____________________
Test statistic = ____________________
ANS:
t-test; 1.71
PTS: 1

OBJ: Section 11.2

3. What is the decision rule?


ANS:
Reject H0 if t < -3.169 or if t > 3.169.
PTS: 1

OBJ: Section 11.2

4. What is the conclusion?


ANS:
Do not reject H0
PTS: 1

OBJ: Section 11.2

NARRBEGIN: Automotive parts


A regional automotive parts chain store firm wants to improve the sales of tune-up supplies. It believes
that a TV ad with a popular local, but offbeat, know-it-all actor might be able to affect their sales.
Before the ads are run on TV, the company randomly samples eight of its weekly sales from past years.
Following the ad campaign, eight weeks of sales were sampled. Weekly sales are approximately
normally distributed and the population standard deviations are equal. Their hypothesis test is: Did the
TV ad campaign help or hurt sales? To answer this question, the company plans to use a 0.05
significance level. The results of the two samples are:

NARREND
5. State null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:
(no effect on sales
; (some effect on sales)
PTS: 1

OBJ: Section 11.2

6. What is the test statistic?


Appropriate test: ____________________
Test statistic = ____________________
ANS:
t-test; -0.446
PTS: 1

OBJ: Section 11.2

7. What is the decision rule?


ANS:
Fail to reject H0 if t

-2.145 or if t > 2.145

PTS: 1

OBJ: Section 11.2

8. What is the conclusion?


ANS:
Do not reject H0

PTS: 1

OBJ: Section 11.2

NARRBEGIN: Battery
A new brand of battery for use in calculators and cameras is said to last significantly longer than
another brand. A camera manufacturer is to test this brand (Y) with brand (X) to see if brand Y has a
longer life. If brand Y does last longer, the camera manufacturer will equip their new cameras with
them. If not, they will equip them with brand X that is less costly. Twenty cameras are equipped as
follows: ten with brand Y batteries and ten with brand X batteries and the life of the batteries measured.
Is brand Y superior (does it last longer) to brand X? To answer this question, the camera manufacturer
uses a 0.01 significance level and knows that the populations are normally distributed with equal
variances. Sample data are:

NARREND
9. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:

PTS: 1

OBJ: Section 11.2

10. What is the test statistic?


Appropriate test: ____________________
Test statistic = ____________________
ANS:
t-test; -15.95
PTS: 1

OBJ: Section 11.2

11. What is the decision rule?


ANS:
Reject H0 if t < -2.552; Fail to reject H0 if t
PTS: 1
12. State the conclusion.
ANS:

OBJ: Section 11.2

Reject H0 The evidence points to Brand Y lasting longer than Brand X, so the camera manufacturer
should equip its cameras with Brand Y
PTS: 1

OBJ: Section 11.2

NARRBEGIN: Shooting club


A trap and skeet shooting club purchases clay pigeons. These are quite fragile and often break in the
box during shipment without any outward sign of breakage. Even as the pigeons are loaded into the
throwing machine, broken or cracked pigeons may not be noticed. Each pigeon broken is a net loss to
the club so the club is anxious to purchase from suppliers who have a record of little or no breakage in
shipping and handling. Two suppliers of clay pigeons are contacted and asked for price quotes.
Supplier 1 quotes a higher price than Supplier 2 but says that the higher price is the result of better
packaging and thus more usable pigeons per case. The shooting club manager decides to purchase 10
cases from both suppliers. Each case has 250 pigeons. Careful records are maintained on each case as
to the number of good pigeons. The records after the cases were used are as follows:

NARREND
13. Use Excel or Minitab to summarize this data using descriptive statistics
ANS:
Total
Variable
Supplier 1
Supplier 2

Count
10
10

Variable
Supplier 1
Supplier 2

Q3
241.50
225.25

PTS: 1

Mean
239.10
220.10

SE Mean
1.27
2.01

TrMean
238.88
220.38

StDev
4.01
6.37

Minimum
234.00
208.00

Q1
234.75
216.75

Median
240.00
220.00

Maximum
246.00
230.00

OBJ: Section 11.3

14. Use Excel or Minitab to conduct a two-sample t-test


Test the hypotheses: H0: 1 2 H1: 1 2 at the 5% significance level. What is your conclusion?
ANS:
Difference = mu (Supplier 1) - mu (Supplier 2)
Estimate for difference: 19.0000
95% CI for difference: (13.9271, 24.0729)
T-Test of difference = 0 (vs not =): T-Value = 7.98

P-Value = 0.000

DF = 15

Since the P-value < 0.05, we reject H0, there is enough statistical evidence to conclude that the true
mean number of good pigeons from supplier 1 is higher than those from supplier 2.
PTS: 1

OBJ: Section 11.3

NARRBEGIN: Battery Manufacturer


A battery manufacturer claims that their new long-lasting battery has an average life that is
significantly longer than their competitors regular battery. Both types of batteries were tested and
the number of hours each battery lasted is shown in the following table.
Long-Lasting Battery
(Population 1)
51
44
58
36
48
53
57
40
49
44
60
50

Regular Battery
(Population 2)
42
29
51
38
39
44
35
40
48
45

NARREND
15. Assume unequal variances. State the null and alternative hypothesis.
ANS:

PTS: 1

OBJ: Section 11.3

16. Assume unequal variances. How many degrees of freedom are associated with this test?
ANS:
d.f. = 19.92, rounded to 20.
PTS: 1

OBJ: Section 11.3

17. Assume unequal variances. Using


ANS:
Reject
PTS: 1

if t > 2.528. Fail to reject

if t

2.528.

OBJ: Section 11.3

18. Assume unequal variances. Using


ANS:

= 0.01, state the decision rule in terms of the critical value.

= 0.01, state your conclusions.

Since t = 2.77, we reject


regular batteries.
PTS: 1

and conclude that the long-lasting battery have a longer life than the

OBJ: Section 11.3

NARRBEGIN: 1000 companies


From the top 1000 companies in valuation, a comparison of the mean dividend yield of the top and
bottom ten electric utility companies is desired. Let 1 = top ten, and 2 = bottom ten, electric utility
companies respectively. The data shown below are for two independent samples, which are drawn at
random from populations that are normally distributed.

NARREND
19. Use Excel or Minitab to summarize the data using descriptive statistics
ANS:
Total
Variable
Top ten
Bottom ten

Count
10
10

Variable
Top ten
Bottom ten

Maximum
8.960
8.640

PTS: 1

Mean
7.796
6.476

SE Mean
0.322
0.753

TrMean
7.823
7.015

StDev
1.019
2.382

Minimum
6.420
0.000

Q1
6.625
6.345

Median
7.935
7.130

Q3
8.800
7.540

OBJ: Section 11.3

20. Use Minitab or Excel to conduct a two-sample t-test to test the hypotheses:
H0:
H1:
at the 5% significance level.
ANS:
Two-sample T for Top ten vs Bottom ten
Top ten
Bottom ten

N
10
10

Mean
7.80
6.48

StDev
1.02
2.38

SE Mean
0.32
0.75

Difference = mu (Top ten) - mu (Bottom ten)


Estimate for difference: 1.32000
95% CI for difference: (-0.46533, 3.10533)
T-Test of difference = 0 (vs not =): T-Value = 1.61

Since p-value = 0.133 > 0.05, we fail to reject H0:


PTS: 1

OBJ: Section 11.3

P-Value = 0.133

DF = 12

NARRBEGIN: Coffee breaks


Do government employees take longer coffee breaks than private sector workers? That is a question
that interested a management consultant. To examine the issue, he took a random sample of ten
government employees and another random sample of ten private sector workers and measured the
amount of time (in minutes) they spent in coffee breaks during the day. The results are listed below.
Assume that the two populations are normally distributed.

NARREND
21. Do these data provide sufficient evidence at the 5% significance level to support the consultant's
claim?
H0: ____________________
H1: ____________________
Appropriate test: ____________________
Test statistic = ____________________
Conclusion: ____________________
Interpretation: _________________________________________________
ANS:
;
PTS: 1

; t-test; 2.766; Reject H0; Government employees do take longer breaks


OBJ: Section 11.3

22. Estimate with 95% confidence the difference in coffee breaks mean time between the two groups.
____________________ to ____________________
ANS:
5.7 4.309 = (1.371, 10.029)
PTS: 1

OBJ: Section 11.3

23. Explain what the interval estimate tells you.


ANS:

We estimate that government employees, on average, take between 1.371 and 10.029 minutes longer
for coffee breaks than private sector workers do.
PTS: 1

OBJ: Section 11.3

NARRBEGIN: Realtor
A new realtor in a large community is attempting to determine differences in the selling prices of
houses in two sections of the community. Population 1 is the Northeast and Population 2 is the
Southwest. The realtor is going to perform the hypothesis test: H0:
H1:
A random sample of 35 sale homes is taken from the Northeast and 41 from those in the
Southwest using the multiple listing services. A Minitab summary of the results of the two samples
expressed in thousands follows:

NARREND
24. What is the decision rule at the 0.01 level of significance?
ANS:
Fail to reject H0 if -2.575 z 2.575; Reject H0 if z or if z
PTS: 1

OBJ: Section 11.4

25. What is the conclusion?


ANS:
Do not reject H0
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Traffic Coordinator


A traffic coordinator for a community wishes to determine whether or not there is any difference in the
average age of female and male drivers involved in rear-end accidents. The hypothesis test is: H0:
(no difference in mean age)
H1:
(mean age is different) A random sample of males and females involved in rear-end
accidents results in the following Minitab summary:

NARREND
26. What is the value of the test statistic?
Appropriate test: ____________________
Test statistic = ____________________

ANS:
z-test; -2.14
PTS: 1

OBJ: Section 11.4

27. What is the decision rule at the 0.025 level of significance?


ANS:
Fail to reject H0 if -2.24 z 2.24; Reject H0 if z orif z
PTS: 1

OBJ: Section 11.4

28. What is the conclusion?FI


ANS:
Do not reject H0 There is not enough statistical evidence to say that there is a difference in the average
age of female and male drivers involved in rear-end accidents.
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Slacks Manufacturer


A slacks manufacturer is deciding whether to purchase a new method for bonding seams together.
Before purchasing a new method that bonds, or glues, the seams together, the manufacturer wishes to
determine whether or not the "bonded" seams can withstand more pulling stress than standard seams
sewn with thread. The creator of the new method provides a demonstration machine and supplies for
the slacks maker to test. Two samples of the slacks produced are taken. Each pair of slacks has the
seams tested in an application of force to determine the breaking point (in lbs.) for the seam. The
sample results are:

NARREND
29. The test question is: At the 0.05 level of significance, is the gluing of seams better than sewing? What
are the null and alternative hypotheses?
H0: ____________________
H1: ____________________
ANS:
;
PTS: 1

OBJ: Section 11.4

30. The test question is: At the 0.05 level of significance, is the gluing of seams better than sewing? What
is the value of the test statistic?

Appropriate test: ____________________


Test statistic = ____________________
ANS:
z-test; -3.86
PTS: 1

OBJ: Section 11.4

31. The test question is: At the 0.05 level of significance, is the gluing of seams better than sewing? What
is the decision rule?
ANS:
Fail to reject H0 if z -1.645; Reject H0 if z
PTS: 1

OBJ: Section 11.4

32. The test question is: At the 0.05 level of significance, is the gluing of seams better than sewing? What
is the conclusion?
ANS:
Reject H0 Conclude that the new gluing procedure produces stronger seams than the conventional
sewing.
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Financial analyst


A financial analyst is to estimate the difference in the average return-on-equity for two industry
groups, bank and bank holding companies and nonblank financial companies. The sample data
obtained:

NARREND
33. Construct a 98-percent confidence interval for the true difference in means for the return-on-equity
between bank and bank holding companies and nonblank financial companies.
____________________ to ____________________
ANS:
-1.49; 7.89
PTS: 1

OBJ: Section 11.4

34. A financial analyst is to estimate the difference in the average return-on-equity for two industry
groups, bank and bank holding companies and nonblank financial companies. The sample data
obtained:

If a 98% confidence interval for the true difference in means is (-1.49, 7.89) what can you conclude
about a hypothesis test for H0:
at the 0.02 level?
ANS:
Do not reject H0 because 0 is included in the confidence interval. We conclude that the difference
between the two population means could be zero.
PTS: 1

OBJ: Section 11.4

35. The difference in the average profit margins of two industries is to be estimated for a client of a
financial advisory service. Random samples from Industry A profit margins and Industry B profit
margins are summarized as follows:

Develop a 96-percent confidence interval for the true difference in the profit margin means for
Industry A and Industry B.
____________________ to ____________________
ANS:
-0.2015; 3.2015
PTS: 1

OBJ: Section 11.4

36. An analyst is looking at two portfolios of common stocks in terms of the average price-earnings ratio.
He wishes to determine if there is a difference between the two portfolios.

Calculate a 99% confidence interval.


____________________ to ____________________
ANS:
-6.00; 3.96

PTS: 1

OBJ: Section 11.4

NARRBEGIN: Portfolio
An analyst is looking at two portfolios of common stocks in terms of the average price-earnings ratio.
He wishes to determine if there is a difference between the two portfolios.

NARREND
37. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:
;
PTS: 1

OBJ: Section 11.4

38. Determine the equality of the two population means.


ANS:
Because zero is included in the 99% confidence interval, we fail to reject H0 at the 1% level of
significance and conclude that the population means could be equal.
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Marketing research


A marketing research firm is conducting a survey to determine if there is a difference in consumer
choice in the selection of two rival soft drinks. Those surveyed were asked to rank the taste from 1-10
with 10 being the highest rating. A summary of the survey follows:

NARREND
39. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:

;
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Real pop


A marketing research firm is conducting a survey to determine if there is a difference in consumer
choice in the selection of two rival soft drinks. Those surveyed were asked to rank the taste from 1-10
with 10 being the highest rating. A summary of the survey follows:

NARREND
40. Calculate the test statistic.
Appropriate test: ____________________
Test statistic = ____________________
ANS:
z-test; 2.40
PTS: 1

OBJ: Section 11.4

41. State the decision rule for 0.05 level of significance.


ANS:
If -1.96 zfailto reject H0; If z < -1.96 or if z > 1.96, reject H0;
PTS: 1

OBJ: Section 11.4

42. What is the conclusion?


ANS:
Reject H0 and conclude that the true mean rank of the two soft drinks are not equal
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Women drivers


In the past, young women drivers have maintained a better driving record than young men drivers. An
insurance company is concerned with the driving record of its insured customers. Specifically, it
conducts a test for the number of speeding tickets received during the past year by drivers between the
ages of 18 and 25.

NARREND
43. A test for the equality of average number of tickets per driver for the two groups is desired. Use
0.01. State the null and alternative hypothesis.

H0: ____________________
H1: ____________________
ANS:
;
PTS: 1

OBJ: Section 11.4

44. A test for the equality of average number of tickets per driver for the two groups is desired. Use
0.01. What is the value of the test statistic?

Appropriate test: ____________________


Test statistic = ____________________
ANS:
z-test; 1.39
PTS: 1

OBJ: Section 11.4

45. A test for the equality of average number of tickets per driver for the two groups is desired. Use
0.01. What is the conclusion?

ANS:
Do not reject H0
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Chrysler corp


Chrysler Corp. is responding to an advertisement by Toyota, which claims that its compact version
gets much better gasoline mileage for in-city driving than any U.S. made car. Below are the results of
surveys conducted to test the claim. Perform the appropriate test at the 0.01 significance level.

NARREND
46. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________

ANS:
;
PTS: 1

OBJ: Section 11.4

47. What is the test statistic?


Appropriate test: ____________________
Test statistic = ____________________
ANS:
z-test; 0.373
PTS: 1

OBJ: Section 11.4

48. What is the conclusion?


ANS:
Do not reject H0 There is no sufficient evidence to conclude that Toyota compact version gets much
better gasoline mileage for in-city driving than any U.S. made car.
PTS: 1

OBJ: Section 11.4

49. In testing the hypotheses:


H0:
H1:
t
wo random samples from two normal populations produced the following statistics: n1 = 50,
= 28, n2 = 50, = 30, s2 = 10. What conclusion can we draw at the 5% significance level?

= 35, s1

Appropriate test: ____________________


Test statistic = ____________________
Conclusion: ____________________________
ANS:
There is no reason to believe that the population variances are equal. Since both sample sizes are
larger than 30, we can use the z-test approximation. Rejection region: |z| > 1.96
Test statistic: z = 1.189; Do not reject H0 and conclude that there is no statistical evidence to show a
significant difference between the population means.
PTS: 1

OBJ: Section 11.4

NARRBEGIN: Golf ball


A new golf ball has been designed to improve driving distance off the tee when compared to their
market competitor. To test their new ball, nine golfers hit a drive with the current ball and then hit
another drive with the new ball. The distance in yards for each golfer is shown in the following table.
Current Golf Ball
(Population 1)

New Golf Ball


(Population 2)

212
236
250
243
250
235
230
225
220

215
228
256
264
248
255
239
218
239

NARREND
50. Use

= 0.05. State the null and alternative hypothesis.

ANS:
H0: d

H1: d < 0
PTS: 1
51. Use

= 0.05. State the decision rule in terms of the critical value.

ANS:
Reject

if t < -1.86. Fail to reject

PTS: 1
52. Use

OBJ: Section 11.5

if t

-1.86.

OBJ: Section 11.5

= 0.05. What is your conclusion?

ANS:
Since t = -1.789, we fail to reject H0 and conclude that the new golf ball does not increase driving
distance when compared to the current ball.
PTS: 1

OBJ: Section 11.5

NARRBEGIN: Fast Food


The general manager of a chain of fast food chicken restaurants wants to determine how effective their
promotional campaigns are. In these campaigns "20% off" coupons are widely distributed. These
coupons are only valid for one week. To examine their effectiveness, the executive records the daily
gross sales (in $1,000s) in one restaurant during the campaign and during the week after the campaign
ends. The data is shown below.

NARREND
53. Can they infer at the 5% significance level that sales increase during the campaign?
H0: ____________________
H1: ____________________
Test statistic = ____________________
Conclusion: ________________________________________
ANS:
;
; Rejection region t > 1.943 Test statistic: t = 4.111; Reject H0 and infer that at the 5%
significance level, sales increase during the campaign.
PTS: 1

OBJ: Section 11.5

54. Estimate with 95% confidence the mean difference.


ANS:
0.957 0.387, 1.527)
PTS: 1

OBJ: Section 11.5

55. Briefly explain what the 95% interval estimate tells you.
ANS:
We estimate that the daily sales during the campaign increase, on average, between .387 and $1.527.
PTS: 1

OBJ: Section 11.5

56. Each of 25 consumers is provided with a package containing two different brands of instant coffee. A
week later, they are asked to rate the taste of each coffee on a scale of 1 (poor taste) to 10 (excellent
taste). Is this an example of independent samples or dependent samples? Explain.
ANS:
Dependent; In this case, we do not really have two different samples of persons, but rather before and
after measurement for the same individuals.
PTS: 1

OBJ: Section 11.5

57. A university vice president for academic affairs randomly selects 15 tenured faculty from the College
of Education and 15 tenured faculty from the College of Business. Each faculty member is then asked
to rate his or her job satisfaction on a scale of 1(very dissatisfied) to 10(very satisfied). Would this be
an example of independent samples or dependent samples? Explain.
ANS:
Independent; We have two different samples of tenured faculty from two different colleges.
PTS: 1

OBJ: Section 11.5

NARRBEGIN: Weight loss

A new diet program claims that clients will lose weight after 7 days on the program. To validate their
claim, they recorded the starting and ending weight of 11 individuals over a 7-day period. The results
are shown in the following table.
Starting Weight
221
215
206
236
214
256
240
222
239
218
229

Ending Weight
218
210
204
241
212
250
245
218
230
215
220

NARREND
58. State the null and alternative hypotheses.
ANS:
H0: d

H1: d > 0
PTS: 1
59. Use

OBJ: Section 11.5

= 0.05. State the decision rule in terms of the critical value.

ANS:
If t 1.812, fail to reject H0. If t > 1.812, reject H0.
PTS: 1
60. Use

OBJ: Section 11.5

= 0.05. State your conclusions.

ANS:
Since t = 2.141, we reject H0 and conclude that the new diet program does reduce weight after 7 days.
PTS: 1

OBJ: Section 11.5

NARRBEGIN: SAT
A new SAT preparation program claims that students will improve their verbal scores with a practice
test after one month on the program. To validate their claim, they recorded the starting and practice
verbal SAT scores of 12 individuals after a one-month period. The results are shown in the following
table.
Starting SAT Score
450
390
425

Practice SAT Score


460
390
430

510
520
440
550
610
490
475
535
500

500
525
420
570
625
510
485
540
500

NARREND
61. State the null and alternative hypotheses.
ANS:
H0: d

H1: d < 0
PTS: 1
62. Use

OBJ: Section 11.5

= 0.01. State the decision rule in terms of the critical value.

ANS:
Reject

if t < -2.718. Fail to reject

PTS: 1
63. Use

if t

-2.718.

OBJ: Section 11.5

= 0.01. State your conclusions.

ANS:
Since t = -1.483, we fail to reject H0 and conclude that the new preparation course does not improve
verbal SAT scores after one month.
PTS: 1

OBJ: Section 11.5

NARRBEGIN: Population
In an effort to test the hypothesis that the proportion of home ownership in the state of Delaware is
different than the national proportion, the following data was collected.
Population
Delaware
Nation

Number of Home Owners


310
390

Sample Size
500
600

NARREND
64. State the null and alternative hypotheses.
ANS:
Setting
= the proportion of home ownership in Delaware and
ownership in the nation,,

= the proportion of home

PTS: 1
65. Use

OBJ: Section 11.6

= 0.01. State the decision rule in terms of the critical value.

ANS:
If -2.57 z2.57failto reject H0; If z < -2.57 or if z > 2.57, reject H0;
PTS: 1
66. Use

OBJ: Section 11.6

= 0.01. State your conclusions in terms of the test statistic.

ANS:
Since z = -1.61, we fail to reject the null hypothesis and conclude that the proportion of home
ownership in Delaware is not different from that of the nation.
PTS: 1
67. Use

OBJ: Section 11.6

= 0.01. State your conclusions in terms of the p-value.

ANS:
Since the p-value = 0.107 and = 0.01, we fail to reject the null hypothesis and conclude that the
proportion of home ownership in Delaware is not different from that of the nation.
PTS: 1

OBJ: Section 11.6

68. State the null and alternative hypotheses.


ANS:
Setting

= the proportion of male smokers and

PTS: 1

= the proportion of female smokers,,

OBJ: Section 11.6

NARRBEGIN: Smoking
In an effort to test the hypothesis that the proportion of males who smoke cigarettes regularly is greater
than the proportion of females who smoke cigarettes regularly, the following data was collected.
Population
Male
Female

Number Who Smoke


229
180

Sample Size
850
775

NARREND
69. Use
ANS:

= 0.05. State the decision rule in terms of the critical value.

Reject

if z > 1.64. Fail to reject

PTS: 1
70. Use

if z

1.64.

OBJ: Section 11.6

= 0.05. State your conclusions in terms of the test statistic.

ANS:
Since z = 1.72, we reject the null hypothesis and conclude that the proportion of male smokers is
greater than the proportion of female smokers.
PTS: 1
71. Use

OBJ: Section 11.6

= 0.05. State your conclusions in terms of the p-value..

ANS:
Since p-value = 0.042 and = 0.05, we reject the null hypothesis and conclude that the proportion of
male smokers is greater than the proportion of female smokers.
PTS: 1

OBJ: Section 11.6

NARRBEGIN: Medicare
An economist wishes to test whether there is any difference in the proportion of households receiving
Medicare for white households with less than $5,000 income per year and white households with
$15,000 or more income per year. A random sample from households with less than $5,000 income per
year is taken, and a random sample of households with $15,000 or more income is taken. The results
of the samples are:

NARREND
72. Use a 0.01 significance level to determine if there is sufficient evidence to conclude that a difference in
proportions exists. What is the random variable?
ANS:
p1 - p2; the difference between two sample proportions.
PTS: 1

OBJ: Section 11.6

73. Use a 0.01 significance level to determine if there is sufficient evidence to conclude that a difference in
proportions exists. What are the null and alternative hypotheses?
H0: ____________________
H1: ____________________
ANS:
;
PTS: 1

OBJ: Section 11.6

74. Use a 0.01 significance level to determine if there is sufficient evidence to conclude that a difference in
proportions exists. What is the value of the test statistic?
Appropriate test: ____________________
Test statistic = ____________________
ANS:
z-test; -3.63
PTS: 1

OBJ: Section 11.6

75. Use a 0.01 significance level to determine if there is sufficient evidence to conclude that a difference in
proportions exists. What is the conclusion?
ANS:
There is sufficient evidence for the economist to conclude that there is a significant difference between
the two proportions
PTS: 1

OBJ: Section 11.6

NARRBEGIN: VCR's
An advertising executive suspects that there is a higher proportion of households which own VCR's
residing in places with cable systems than there are for households residing in places without cable
systems. The basis of this suspicion is the broader offering of premium programming available for
taping in places with a cable system. The executive commissions a survey, which results in random
samples of 165 households located in a cable system and 150 households, located outside any cable
system. Of the households in the cable system, 54 own VCR's; outside the cable system, 33 households
own VCR's. Let
be the proportion of households owning a VCR in a cable system and
be the
proportion of households owning a VCR, but not in a cable system. The executive chooses 0.05 as the
significance level. Can the executive reasonably conclude that the ownership of VCR's is higher in
cable systems?
NARREND
76. What are the null and alternative hypotheses?
H0: ________________
H1: ________________
ANS:
;
PTS: 1

OBJ: Section 11.6

77. Find the value of the test statistic.


Appropriate test: ____________________
Test statistic = ____________________
ANS:
z-test; 2.13

PTS: 1

OBJ: Section 11.6

78. What is the decision rule?


ANS:
Fail to reject H0 if z

1.645; Reject H0 if z > 1.645.

PTS: 1

OBJ: Section 11.6

79. What is the conclusion?


ANS:
Reject H0 The sample evidence suggests that ownership of VCRs is higher for households on a cable
system.
PTS: 1

OBJ: Section 11.6

NARRBEGIN: Textbook
A large textbook publisher is concerned about the sale of complimentary desk copies of textbooks to
wholesale book buyers. The publisher randomly samples the faculty from two universities, A and B.
Information provided by salespeople suggests that the faculty at University A had copies of the
publisher's books that had been shipped, whereas the faculty at University B seldomly had them. Let
be the proportion of faculty at University A who sell this publisher's books and
be the proportion
of faculty at University B who sell this publisher's books. The samples provide these data:

At the 0.05 significance level, is this publisher reasonably justified in saying there is a higher
proportion of faculty at University B who sell this publisher's complimentary books than at University
A?
NARREND
80. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:
;
PTS: 1

OBJ: Section 11.6

81. What is the value of the test statistic?


Appropriate test: ____________________
Test statistic = ____________________

ANS:
z test; z = -2.472
PTS: 1

OBJ: Section 11.6

82. State the decision rule.


ANS:
Fail to reject H0 if z

-1.645; Reject H0 if z < -1.645.

PTS: 1

OBJ: Section 11.6

83. State the conclusion.


ANS:
Reject H0. There is sufficient evidence to conclude that there is a higher proportion of faculty at
University B who sell the publishers books
PTS: 1

OBJ: Section 11.6

NARRBEGIN: National Management Assoc


The National Management Association reports that during the past year, there has been a substantial
increase in the use of "flextime" in the work place. Last year, a sample of 100 businesses was taken
which indicated that 22% had implemented the use of "flextime." This year, a second survey of 100
showed that 29% were using flextime. At the 0.05 level, does this represent an increase in the
proportion?
NARREND
84. State the null and alternative hypotheses.
H0: ____________________
H1: ____________________
ANS:
;
PTS: 1

OBJ: Section 11.6

85. State the decision rule.


ANS:
Fail to reject H0 if z

-1.645; Reject H0 if z < -1.645.

PTS: 1

OBJ: Section 11.6

86. What is the value of the test statistic?


Appropriate test: ____________________
Test statistic = ____________________
ANS:

z-test; -1.136
PTS: 1

OBJ: Section 11.6

87. State the conclusion.


ANS:
Do not reject H0 There has not been a significant increase in the proportion of flextime.
PTS: 1

OBJ: Section 11.6

NARRBEGIN: Ford Motor Co.


The Ford Motor Company, as part of its quality control program, began returning to the supplier all
shipments of steel that had defects or faulty chemistry. When Ford began this program, the defective
rate in 100 shipments was 9%. A recent survey indicated that 2.2% in 136 shipments was defective.
Does this represent a significant improvement in the quality of the steel? Test at the 0.05 level.
NARREND
88. State the null and alternative hypotheses.
H0:____________________
H1: ____________________
ANS:
;
PTS: 1

OBJ: Section 11.6

89. What is the test statistic?


Appropriate test: ____________________
Test statistic = ______________________
ANS:
z-test; 2.35
PTS: 1

OBJ: Section 11.6

90. What is the conclusion?


ANS:
Reject H0 There is enough evidence to conclude that there is a significant improvement in the quality
of the steel.
PTS: 1

OBJ: Section 11.6

NARRBEGIN: Politician
In an effort to test the hypothesis that the proportion of voters in the younger than 40 year old age
bracket who will vote for a particular politician is different than the proportion voters in the above 40
age bracket, the following data was collected.

Population
Below 40
Above 40

Number Who Will Vote for


Politician
348
290

Sample Size
700
650

NARREND
91. Use

= 0.10. State your conclusions in terms of the test statistic.

What is the p-value?


ANS:
Since z = 1.87, we reject the null hypothesis and conclude that the proportion of voters in the younger
than 40 year old age bracket who will vote for a particular politician is different than the proportion
voters in the above 40 age bracket.
p-value = 0.0614
PTS: 1

OBJ: Section 11.6

92. State the null and alternative hypotheses.


Use

= 0.10. State the decision rule in terms of the critical value.

ANS:
Setting
= the proportion of home ownership in Delaware and
ownership in the nation,,

= the proportion of home

If -1.645 z1.645failto reject H0; If z < -1.645 or if z > 1.645, reject H0;
PTS: 1

OBJ: Section 11.6

NARRBEGIN: Production Line


A quality control inspector keeps a tally sheet of the number of acceptable and unacceptable products
that come off two different production lines. The completed sheet is shown below.

NARREND
93. Can the inspector infer at the 5% significance level that production line 1 is doing a better job than
production line 2?
Hypotheses: ___________________________________
Test statistic = ________

Conclusion: ________________
Interpretation: __________________________________________________
ANS:
H0: 1 - 2 0, H1: 1 - 2 > 0,
Rejection region: z > 1.645, Test statistic z = 0.993; Do not reject H 0; There is insufficient evidence to
conclude that Production Line 1 is doing better than Production Line 2.
PTS: 1

OBJ: Section 11.6

94. Estimate with 95% confidence the difference in population proportions.


ANS:
0.0442 0.0915 = (-0.0473, 0.1357)
PTS: 1

OBJ: Section 11.6

95. The A-1 Video Rental has run two specials in the local newspaper. One was a two-for-one rental for
Tuesday through Thursday. The second was for $1 off on Friday and Saturday. A computer output is
shown below:

Determine at the 0.05 level if the standard deviations of the populations are equal.
Test statistic = ____________________
Conclusion: ____________________
ANS:
The test statistic of F = 1.178 is less than the critical value of 3.05; Do not reject H 0 and conclude that
the population standard deviations could be equal.
PTS: 1

OBJ: Section 11.7

96. Random samples from two normal populations produced the following statistics: n1 = 16, s12 = 55, n2 =
14, s22 = 118. Is there enough evidence at the 10% significance level to infer that the two population
variances differ?
Hypotheses: ____________________
Test statistic = ____________________
Conclusion: ____________________
ANS:
H0: 12 = 22, H1: 12 22,
Rejection region: F> F(0.05, 13, 15) = 2.48; Test statistic: F = 2.145; Do not reject H 0 and conclude
that there is no sufficient statistical evidence to infer that the two population variances differ.

PTS: 1

OBJ: Section 11.7

97. The number of degrees of freedom associated with a pooled-variance t-test is


_________________________.
ANS:

PTS: 1

OBJ: Section 11.2

ESSAY
1. When testing dependent samples, we test for only one variable. What is it?
ANS:
d = Difference between measurements
PTS: 1

OBJ: Section 11.1

2. There are three different methods for comparing the means of two independent samples. What are
they?
ANS:
The three methods are: the pooled-variances t-test, the unequal-variances t-test, and the z-test.
PTS: 1

OBJ: Section 11.1

Chapter 12: Analysis of Variance Tests


TRUE/FALSE
1. True or False
Analysis of variance (ANOVA) is a set of techniques that allow us to compare two or more sample
means at the same time.
ANS: T

PTS: 1

OBJ: Section 12.1

2. True or False
In ANOVA, the variation between groups represents random error from the sampling process.
ANS: F

PTS: 1

OBJ: Section 12.2

3. True or False
Comparing the variation between the groups to the variation within the groups is the basis of ANOVA.
ANS: T

PTS: 1

OBJ: Section 12.2

4. True or False
The ANOVA model requires that the sample size for each treatment be equal.

ANS: F

PTS: 1

OBJ: Section 12.2

5. True or False
An assumption of the ANOVA model is that the population distributions are normal.
ANS: T

PTS: 1

OBJ: Section 12.3

6. True or False
The one-way ANOVA is also referred to as the one-factor, completely randomized design, since the
treatments are randomly assigned to all of the persons or other test units in the experiment.
ANS: T

PTS: 1

OBJ: Section 12.3

7. True or False
When there are two treatment groups, one-way ANOVA is equivalent to the pooled-variances t-test.
ANS: T

PTS: 1

OBJ: Section 12.3

8. True or False
Three racquetball players, a beginner, an experienced, a professional, have been randomly selected
from the membership of a large city racquetball club. Using the same ball, each person hits three
serves, one with each of five racquet models, with the five racquet models selected randomly. Each
serve is clocked with a radar gun and the result recorded. Among ANOVA models, this setup is most
like the two-way ANOVA.
ANS: F

PTS: 1

OBJ: Section 12.4

9. True or False
In the randomized block design ANOVA, test units are first arranged in similar groups after the
treatments are assigned.
ANS: F

PTS: 1

OBJ: Section 12.4

10. True or False


Using the randomized block design allows the reduction of the amount of error variation.
ANS: T

PTS: 1

OBJ: Section 12.4

11. True or False


In the randomized block design , there is just one observation or measurement for each blocktreatment combination.
ANS: T

PTS: 1

OBJ: Section 12.4

12. True or False


A study will be undertaken to examine the effect of two kinds of background music and of two
assembly methods on the output of workers at a fitness shoe factory. Two workers will be randomly
assigned to each of four groups, for a total of eight in the study. Each worker will be given a
headphone set so that the music type can be controlled. The number of shoes completed by each
worker will be recorded. Does the kind of music or the assembly method or a combination of music
and method affect output? The ANOVA model most likely to fit this situation is the one-way analysis
of variance.
ANS: F

PTS: 1

OBJ: Section 12.5

13. True or False


In the randomized block design, interaction is present when the effect of a treatment depends on the
block to which it has been administered.
ANS: T

PTS: 1

OBJ: Section 12.4

14. True or False


Randomized block ANOVA examines interactions between different levels of the independent
variables.
ANS: F

PTS: 1

OBJ: Section 12.5

15. True or False


In ANOVA, the independent variable must be quantitative.
ANS: F

PTS: 1

OBJ: Section 12.6

16. True or False


Basic to ANOVA is the comparison of variation between samples versus the amount of variation
within the samples. The test statistic is an F-ratio in which the numerator reflects variation within the
samples and the denominator reflects the variation between them.
ANS: F

PTS: 1

OBJ: Section 12.6

17. True or False


In ANOVA, if the calculated F-statistic exceeds the critical F for a given test, the null hypothesis of
equal population means is rejected.
ANS: T

PTS: 1

OBJ: Section 12.6

18. True or False


In two-way ANOVA, it is not appropriate to refer to the factor levels as treatments, since each
combination of their levels constitutes a separate treatment.
ANS: T

PTS: 1

OBJ: Section 12.6

19. True or False


The two-way ANOVA examines the main effects of the levels of both factors as well as interaction
effects associated with the combinations of their levels.
ANS: T

PTS: 1

OBJ: Section 12.6

20. True or False


In two-way ANOVA, significance tests include those for the main effects of each factor, but not for
interaction effects between the combinations of factor levels.
ANS: F

PTS: 1

MULTIPLE CHOICE
1. A balanced experiment requires that:
a. at least one sample equal size is 30.

OBJ: Section 12.6

b.
c.
d.
e.

the number of treatments equals the number of samples.


an equal number of persons or test units receives each treatment.
at least two treatment groups be used.
at least two samples are paired.

ANS: C

PTS: 1

OBJ: Section 12.2

2. Given the significance level 0.01, the F-value for the degrees of freedom, df = (7,3) is:
a. 8.45.
b. 27.67.
c. 5.89.
d. 14.62.
e. 38.22.
ANS: B

PTS: 1

OBJ: Section 12.3

3. The variation that reflects the effect of the factor levels is known as the
a. variation within the groups.
b. variation between the groups.
c. error mean square.
d. sampling error.
e. interaction effect.
ANS: B

PTS: 1

OBJ: Section 12.2

4. The variation that reflects the random error from the sampling process is known as the
a. variation within the groups.
b. variation between the groups.
c. treatment mean square.
d. interaction effect.
e. treatment sum of squares.
ANS: A

PTS: 1

OBJ: Section 12.2

5. The one-way ANOVA model assumes that each individual observation is considered to be the sum of
the overall population mean for all the treatments plus the effect of the treatment plus
a. the effect of the block.
b. the effect of the interaction.
c. the effect of the level.
d. the random error associated with the sampling process.
ANS: D

PTS: 1

OBJ: Section 12.3

6. In using the ANOVA models, the assumptions made about the data are:
a. the samples are independent.
b. the population variances are equal.
c. the population distributions are normal.
d. A, B, and C are all assumptions made about the data.
e. the samples are dependent.
ANS: D

PTS: 1

OBJ: Section 12.3

7. Two samples of ten each from the male and female workers of a large company have been taken. The
data involved the wage rate of each worker. To test whether there is any difference in the average wage
rate between male and female workers a pooled-variances t-test will be considered. Another test option
to consider is ANOVA. The most likely ANOVA to fit this test situation is the:

a.
b.
c.
d.
e.

one-way analysis of variance.


randomized block design.
two-way analysis of variance.
simple regression model.
chi-square test for independence.

ANS: A

PTS: 1

OBJ: Section 12.3

8. The calculated value of F in a one-way analysis is 8.23. The numerator degrees of freedom and
denominator degrees of freedom are 4 and 8, respectively. The most accurate statement to be made
about the p-value is:
a. p-value > 0.05.
b. 0.05 > p-value > 0.025.
c. p-value > 0.01.
d. 0.01 > p-value.
e. 0.025 > p-value > 0.01.
ANS: D

PTS: 1

OBJ: Section 12.3

9. The numerator or MSTR degrees of freedom are 4 and the denominator or MSE degrees of freedom
are 20. The total number of observations in the completely randomized design must equal:
a. 24.
b. 20.
c. 19.
d. 25.
e. 80.
ANS: D

PTS: 1

OBJ: Section 12.3

10. A survey will be conducted to compare the United Way contributions made by sales people from three
county retail corporations. Sales people are to be randomly selected from each of the three
corporations and the dollar amounts of their contribution recorded. The ANOVA model most likely to
fit this situation is the:
a. one-way analysis of variance.
b. randomized block design.
c. two-way analysis of variance.
d. simple regression model.
e. multiple regression model.
ANS: A

PTS: 1

OBJ: Section 12.3

11. One-way ANOVA is applied to three independent samples having means 10, 13, and 18, respectively.
If each observation in the third sample were increased by 30, the value of the F-statistic would:
a. increase.
b. decrease.
c. remain unchanged.
d. increase by 30.
ANS: A

PTS: 1

OBJ: Section 12.3

12. The F-statistic in a one-way ANOVA represents the:


a. variation between the treatments plus the variation within the treatments.
b. variation within the treatments minus the variation between the treatments.
c. variation between the treatments divided by the variation within the treatments.
d. variation within the treatments divided by the variation between the treatments.

ANS: C

PTS: 1

OBJ: Section 12.3

13. One-way ANOVA is performed on three independent samples with n1 = 6, n2 = 7, and n3 = 8. The
critical value obtained from the F-table for this test at the 2.5% level of significance equals:
a. 3.55.
b. 39.45.
c. 4.56.
d. 29.45.
ANS: C

PTS: 1

OBJ: Section 12.3

14. One-way ANOVA is performed on independent samples taken from three normally distributed
populations with equal variances. The following summary statistics were calculated:

The grand mean equals:


a. 50.0.
b. 52.0.
c. 52.3.
d. 53.0.
ANS: C

PTS: 1

OBJ: Section 12.3

15. The distribution of the test statistic for analysis of variance is the:
a. normal distribution.
b. student t-distribution.
c. F-distribution.
d. Poisson distribution.
ANS: C

PTS: 1

OBJ: Section 12.3

16. One-way ANOVA is applied to independent samples taken from three normally distributed populations
with equal variances. The following summary statistics were calculated:

The within-treatments variation equals:


a. 137.
b. 460.
c. 154.
d. 60.
ANS: A

PTS: 1

OBJ: Section 12.3

17. In one-way ANOVA, suppose that there are five treatments with n1 = n2 = n3 = 5, and n4 = n5 = 7. Then
the mean square for error, MSE, equals:
a. SSE / 4.
b. SSE / 29.

c. SSE / 24.
d. SSE / 5.
ANS: C

PTS: 1

OBJ: Section 12.3

18. One-way ANOVA is applied to independent samples taken from three normally distributed populations
with equal variances. The following summary statistics were calculated:

The between-treatments variation equals:


a. 460.
b. 688.
c. 560.
d. 183.
ANS: C

PTS: 1

OBJ: Section 12.3

19. Consider the following partial ANOVA table:

The numerator and denominator degrees of freedom (identified by asterisks) are, respectively,
a. 4 and 15.
b. 3 and 16.
c. 15 and 4.
d. 16 and 3.
ANS: B

PTS: 1

OBJ: Section 12.3

20. Consider the following ANOVA table:

The number of treatments is:


a. 13.
b. 5.
c. 3.
d. 33.
ANS: C

PTS: 1

OBJ: Section 12.3

21. In a completely randomized design for ANOVA, the number of degrees of freedom for the numerator
and denominator are 4 and 25, respectively. The total number of observations must equal:
a. 29.

b. 25.
c. 30.
d. 24.
ANS: C

PTS: 1

OBJ: Section 12.3

22. Consider the following ANOVA table:

The number of observations in all samples is:


a. 25.
b. 29.
c. 30.
d. 32.
ANS: C

PTS: 1

OBJ: Section 12.3

23. The number of degrees of freedom for the denominator in a one-way ANOVA test for 4 population
means with 15 observations sampled from each population is:
a. 60.
b. 19.
c. 56.
d. 45.
ANS: C

PTS: 1

OBJ: Section 12.3

24. In employing the randomized block design, the primary interest lies in:
a. increasing the treatment sum of squares (SSTR).
b. reducing the block sum of squares (SSB).
c. improving the significance of any differences among treatment groups.
d. reducing the total sum of squares (SST).
e. increasing the total sum of squares (SST).
ANS: C

PTS: 1

OBJ: Section 12.4

25. In employing the randomized block design, the expected effect is to:
a. increase the treatment sum of squares (SSTR).
b. reduce the error sum of squares (SSE).
c. improve the significance of any differences within the treatment groups.
d. reduce the total sum of squares (SST).
e. increase the error sum of squares (SSE).
ANS: B

PTS: 1

OBJ: Section 12.4

26. A randomized block design ANOVA has two treatments. The test to be performed in this procedure is
equivalent to:
a. dependent samples z-test.
b. dependent samples t-test.
c. independent samples z-test.
d. independent samples t-test.
e. Spearman rank correlation test.

ANS: B

PTS: 1

OBJ: Section 12.4

27. A randomized block design ANOVA has five treatments and four blocks. The computed test statistic
(value of F) is 4.35. With a 0.05 significance level, the appropriate table value and conclusion will be:
a. 14.37: accept the null hypothesis.
b. 3.11: accept the null hypothesis.
c. 3.26: accept the null hypothesis.
d. 2.87: reject the null hypothesis.
e. 3.26: reject the null hypothesis.
ANS: E

PTS: 1

OBJ: Section 12.4

28. A randomized block experiment having five treatments and six blocks produced the following values:
SSTR = 287, SST = 1,446, SSE = 180. The value of SSB must be:
a. 30.
b. 979.
c. 467.
d. 20.
e. 107.
ANS: B

PTS: 1

OBJ: Section 12.4

29. The randomized block design with two treatments is equivalent to a non-directional:
a. independent samples z-test.
b. independent samples t-test.
c. dependent samples z-test.
d. dependent samples t-test.
e. chi-square test for independence.
ANS: D

PTS: 1

OBJ: Section 12.4

30. The F-test of the randomized block design of the analysis of variance requires that the random variable
of interest must be normally distributed and the population variances must be equal. When the random
variable is not normally distributed, we can use:
a. one-way ANOVA.
b. two-way ANOVA.
c. Friedman test.
d. all of these.
ANS: C

PTS: 1

OBJ: Section 12.4

31. Three tennis players, a beginner, an intermediate, and advanced, have been randomly selected from the
membership of a racquet facility club in a large city. Using the same tennis ball, each player hits ten
serves, one with each of three racquet models, with the three racquet models selected randomly. The
speed of each serve is measured with a machine and the result recorded. Among the ANOVA models
listed below, the most likely model to fit this situation is the:
a. one-way ANOVA.
b. two-way ANOVA.
c. randomized block design.
d. none of these.
ANS: C

PTS: 1

OBJ: Section 12.4

32. A randomized block design with 4 treatments and 5 blocks produced the following sum of squares
values: SST = 1951, SSTR = 349, SSE = 188. The value of SSB must be:

a.
b.
c.
d.

1414.
537.
1763.
1602.

ANS: A

PTS: 1

OBJ: Section 12.4

33. In a two-way ANOVA, there are 3 levels for factor A and 4 levels for factor B, and three observations
within each cell. The number of treatments in this experiment will be:
a. 36.
b. 9.
c. 12.
d. 18.
e. 6.
ANS: C

PTS: 1

OBJ: Section 12.5

34. In a two-way ANOVA, there are 5 levels for factor A and 4 levels for factor B, and three observations
within each cell. The number of treatments in this experiment will be:
a. 20.
b. 9.
c. 12.
d. 18.
e. 6.
ANS: A

PTS: 1

OBJ: Section 12.5

35. When the effect of a level for one factor depends on which level of the other factor is present, use:
a. one-way analysis of variance.
b. randomized block design.
c. two-way analysis of variance.
d. simple regression model.
e. paired sample model.
ANS: C

PTS: 1

OBJ: Section 12.5

36. The equation: SST = SSA + SSB + SSAB + SSE, applies to which ANOVA model?
a. One-way ANOVA
b. Two-way ANOVA
c. Randomized block design
d. All of these
ANS: B

PTS: 1

OBJ: Section 12.5

37. In a two-way ANOVA, there are 4 levels for factor A, 5 levels for factor B, and 3 observations for each
combination of factor A and factor B levels. The number of treatments in this experiment equals:
a. 60.
b. 25.
c. 20.
d. 16.
ANS: C

PTS: 1

OBJ: Section 12.5

38. Which of the following statements are not true regarding the randomized block design?
a. In this design, persons or test units are first arranged into similar groups, or blocks, then
the treatments are randomly assigned.

b. Blocking helps reduce error variation by ensuring that the treatment groups are
comparable in terms of the blocking variable.
c. This design assumes that interactions exist between the blocks and the treatments.
d. Although the blocking variable can be viewed as representing a second independent
variable, it is introduced solely for the purpose of controlling error variation.
e. All of these statements are true.
ANS: C

PTS: 1

OBJ: Section 12.6

NUMERIC RESPONSE
NARRBEGIN: Annuity
A large annuity company holds many industry group stocks. Among the industries are banks, business
services and construction. Seven companies from each industry group are randomly sampled to test the
hypothesis that the mean price per share is the same among industries. The data are:

NARREND
1. Compute the mean square for the between-group variation (MSTR).
ANS: 520.33
PTS: 1

OBJ: Section 12.3

2. Compute the appropriate table value to use as the critical value at the 2.5% significance level.
ANS: 4.56
PTS: 1

OBJ: Section 12.3

3. Compute the mean square error (MSE).


ANS: 151.67
PTS: 1

OBJ: Section 12.3

NARRBEGIN: Alumni clubs


Three alumni clubs for a university have members who contribute to the university athletic program.
The amount of contribution (in dollars) for six contributors randomly selected from each city to test
the hypothesis that the mean contribution is the same among alumni clubs is given below, followed by
the total for each city:

NARREND
4. What is the number of the error degrees of freedom?
ANS: 15
PTS: 1

OBJ: Section 12.3

5. What is the number of the treatment degrees of freedom?


ANS: 2
PTS: 1

OBJ: Section 12.3

6. Calculate the treatment sum of squares (SSTR).


ANS: 1636.0
PTS: 1

OBJ: Section 12.3

7. Calculate the total sum of squares (SST).


ANS: 6608.5
PTS: 1

OBJ: Section 12.3

8. Calculate the error sum of squares (SSE).


ANS: 4972.5
PTS: 1

OBJ: Section 12.3

9. Calculate the error mean squares (MSE).


ANS: 331.5
PTS: 1

OBJ: Section 12.3

10. Compute the appropriate table value to use as the critical value at the 5% significance level.
ANS: 3.68
PTS: 1

OBJ: Section 12.3

NARRBEGIN: Grocery store

Management of the refrigerator space in a grocery store requires knowledge of the average amount of
items sold. Specifically the store manager wishes to determine whether or not to allocate the same
shelf space for three flavors of yogurt: raspberry, peach, and lemon. During five randomly selected
weeks the sales data for each flavor were recorded. The average daily sales for each flavor were:

NARREND
11. Calculate the treatment sum of squares (SSTR).
ANS: 70
PTS: 1

OBJ: Section 12.3

12. Calculate the total sum of squares (SST).


ANS: 1091.6
PTS: 1

OBJ: Section 12.3

13. Calculate the error sum of squares (SSE).


ANS: 1021.6
PTS: 1

OBJ: Section 12.3

14. What is the number of the error degrees of freedom?


ANS: 12
PTS: 1

OBJ: Section 12.3

15. What is the number of the treatment degrees of freedom?


ANS: 2
PTS: 1

OBJ: Section 12.3

16. Calculate the error mean squares (MSE).


ANS: 85.13
PTS: 1

OBJ: Section 12.3

17. Compute the appropriate table value to use as the critical value at the 5% significance level.
ANS: 3.89

PTS: 1

OBJ: Section 12.3

NARRBEGIN: Shelf Level


Shelf height may affect the volume of sales for a product. In order to determine whether or not there is
any effect on average sales due to product shelf height, a marketing consultant chooses four typical
outlets, a supermarket, a drug store, a discount store, and a variety store, and for one week places the
product chosen at one eye level. A resting week follows and the product is moved to another height
and so on for three different heights. The number of units sold per week at each location and height
are:

NARREND
18. Compute the sum of squares for blocks (SSB).
ANS: 361.583
PTS: 1

OBJ: Section 12.4

19. Compute the sum of squares for treatments (SSTR).


ANS: 74
PTS: 1

OBJ: Section 12.4

20. Compute the error sum of squares (SSE).


ANS: 12.667
PTS: 1

OBJ: Section 12.4

21. Compute the total sum of squares (SST).


ANS: 448.250
PTS: 1

OBJ: Section 12.4

22. Compute the mean squares for blocks (MSB).


ANS: 120.528
PTS: 1

OBJ: Section 12.4

23. Compute the mean squares for treatments (MSTR).


ANS: 37

PTS: 1

OBJ: Section 12.4

24. Compute the error mean squares (MSE).


ANS: 2.111
PTS: 1

OBJ: Section 12.4

NARRBEGIN: Music
A study to examine the effect of music type and assembly method on the productivity of workers on a
production line for electronic circuit boards produced the following results:

NARREND
25. What are the degrees of freedom for the error sum of squares?
ANS: 4
PTS: 1

OBJ: Section 12.5

26. What is the computed value for Factor A (assembly method) sum of squares (SSA)?
ANS: 50
PTS: 1

OBJ: Section 12.5

27. What is the computed value for Factor B (music) sum of squares (SSB)?
ANS: 338
PTS: 1

OBJ: Section 12.5

28. What is the computed value for the error sum of squares (SSE)?
ANS: 26
PTS: 1

OBJ: Section 12.5

29. What is the computed value for the total sum of squares (SST)?
ANS: 416
PTS: 1

OBJ: Section 12.5

30. What is the computed value for the sum of squares for the interaction between Factor A and Factor B
(SSAB)?

ANS: 2
PTS: 1

OBJ: Section 12.5

31. What is the computed value for Factor A (assembly method) mean square (MSA)?
ANS: 50
PTS: 1

OBJ: Section 12.5

32. What is the computed value for Factor B (music) mean square (MSB)?
ANS: 338
PTS: 1

OBJ: Section 12.5

33. What is the computed value for the mean square for the interaction between Factor A and Factor B
(MSAB)?
ANS: 2
PTS: 1

OBJ: Section 12.5

34. What is the computed value for the error mean square (MSE)?
ANS: 6.5
PTS: 1

OBJ: Section 12.5

NARRBEGIN: Lighting
A study to examine the effect of lighting type and assembly method on the productivity of workers on
a production line for electronic circuit boards produced the following results:

NARREND
35. What are the total degrees of freedom for this experiment?
ANS: 7
PTS: 1

OBJ: Section 12.5

36. What is the computed value for Factor A (assembly method) sum of squares (SSA)?
ANS: 72
PTS: 1

OBJ: Section 12.5

37. What is the computed value for Factor B (lighting) sum of squares (SSB)?
ANS: 32
PTS: 1

OBJ: Section 12.5

38. What is the computed value for the error sum of squares (SSE)?
ANS: 258
PTS: 1

OBJ: Section 12.5

39. What is the computed value for the total sum of squares (SST)?
ANS: 364
PTS: 1

OBJ: Section 12.5

40. What is the computed value for the sum of squares for the interaction between Factor A and Factor B
(SSAB)?
ANS: 2
PTS: 1

OBJ: Section 12.5

NARRBEGIN: Test Statistic

NARREND
41. Compute the test statistic for the main effect for Factor A.
ANS: 13.58
PTS: 1

OBJ: Section 12.5

42. Compute the test statistic for the main effect for Factor B.
ANS: 4.52
PTS: 1

OBJ: Section 12.5

43. Compute the test statistic for the interaction effect between Factor A and Factor B.
ANS: 2.83
PTS: 1

OBJ: Section 12.5

44. What is the critical F for the 0.05 level for the main effects test, Factor A?

ANS: 3.40
PTS: 1

OBJ: Section 12.5

45. What is the critical F for the 0.05 level for the main effects test, Factor B?
ANS: 3.01
PTS: 1

OBJ: Section 12.5

46. What is the critical F for the 0.05 level for the interaction effects between Factor A and Factor B.
ANS: 2.51
PTS: 1

OBJ: Section 12.5

COMPLETION
1. A(n) ____________________ variable is the variable for which a value is measured or observed.
ANS: dependent
PTS: 1

OBJ: Section 12.2

2. A(n) ____________________ variable is a variable that is observed or controlled for the purpose of
determining its effect on another variable.
ANS: independent
PTS: 1

OBJ: Section 12.2

3. If we examine two or more independent samples to determine if their population means could be
equal, we are performing ________________________________________.
ANS:
one-way analysis of variance
ANOVA
PTS: 1

OBJ: Section 12.3

4. If we simultaneously examine the effects of two factors on the dependent variable, along with the
effects of interactions between the different levels of those factors, we are performing
________________________________________.
ANS:
Two-way analysis of variance
ANOVA
PTS: 1

OBJ: Section 12.5

5. The starting point for ANOVA is often an experiment in which the goal is to determine whether
various levels of an independent variable, or factor, might be exerting different effects on the
dependent variable, or measurement. When there is only one factor in an experiment, each factor level
can be referred to as a ____________________.
ANS: treatment
PTS: 1

OBJ: Section 12.6

6. In the one-way ANOVA, there is just one factor, and the null hypothesis is that the population means
are equal for the respective treatments, or factor levels. Treatments are randomly assigned to the
persons or test units in the experiment, so this method is also referred to as the
___________________________________ ANOVA.
ANS: completely randomized
PTS: 1

OBJ: Section 12.6

7. When there are only two treatments, the one-way ANOVA is equivalent to the nondirectional
______________________________ t-test.
ANS: pooled-variances
PTS: 1

OBJ: Section 12.6

8. When there are just two treatments, the randomized block design is equivalent to the nondirectional
______________________________ t-test.
ANS: dependent-samples
PTS: 1

OBJ: Section 12.6

9. In two-way ANOVA, there are ____________________ factors, each of which operates on


____________________ or more levels.
ANS:
two; two
2, 2
PTS: 1

OBJ: Section 12.6

10. Each specific level of a factor (or, in multiple-factor experiments, the interaction of a level of one
factor with a level of another factor) is referred to as a(n) ____________________.
ANS: treatment
PTS: 1

OBJ: Section 12.2

MATCHING
Match each term with its definition:
a. SST
b. SSTR

c. SSE
d. MSTR
e. MSE
1. Total amount of variation
2. Sum of squares value reflecting variation between individual treatment means and the overall mean for
all treatments
3. Error sum of squares
4. Mean square for the between-group variation
5. Mean square for within-group variation
1.
2.
3.
4.
5.

ANS:
ANS:
ANS:
ANS:
ANS:

A
B
C
D
E

PTS:
PTS:
PTS:
PTS:
PTS:

1
1
1
1
1

OBJ:
OBJ:
OBJ:
OBJ:
OBJ:

Section 12.3
Section 12.3
Section 12.3
Section 12.3
Section 12.3

SHORT ANSWER
1. A university vice president for academic affairs (VPAA) collects data showing the number of papers
published over the past academic year for a random sample of professors in the College of Arts and
Sciences. He does the same for a random sample of 8 professors in the College of Education, and for a
random sample of 10 professors in the College of Business. Does this represent a designed
experiment? Explain.
ANS:
No; This is not a random experience since the university VPAA has no control over which professors
are in a particular college. The professors were not randomly assigned to the colleges.
PTS: 1

OBJ: Section 12.2

2. Thirty finance students are randomly assigned to two different sections of a financial management
class. Each section ends up consisting of 15 students. In one of the sections, computer - assisted
instruction and review software is utilized; in the other section, it is not. All students are given the
same final examination at the end of the semester. Does this represent a designed experiment? Explain.
ANS:
Yes; This experiment represents a designed experiment since the two treatments (methods of teaching)
are randomly assigned to the students.
PTS: 1

OBJ: Section 12.2

NARRBEGIN: Annuity
A large annuity company holds many industry group stocks. Among the industries are banks, business
services and construction. Seven companies from each industry group are randomly sampled to test the
hypothesis that the mean price per share is the same among industries. The data are:

NARREND
3. State the null and alternative hypothesis.
H0: ____________________
H1: ___________________________________
ANS:
; The population means are not equal
PTS: 1

OBJ: Section 12.3

4. Compute the test statistic.


Test statistic = ____________________ = ____________________
ANS:
F; 3.431
PTS: 1

OBJ: Section 12.3

5. What is the conclusion?


ANS:
Do not reject H0
PTS: 1

OBJ: Section 12.3

NARRBEGIN: Alumni clubs


Three alumni clubs for a university have members who contribute to the university athletic program.
The amount of contribution (in dollars) for six contributors randomly selected from each city to test
the hypothesis that the mean contribution is the same among alumni clubs is given below, followed by
the total for each city:

NARREND
6. State the null and alternative hypotheses.

H0: ____________________
H1: ______________________________________________
ANS:
; At least one of the population means is not equal
PTS: 1

OBJ: Section 12.3

7. Compute the test statistic.


Test statistic = ____________________ = ____________________
ANS:
F; 2.468
PTS: 1

OBJ: Section 12.3

8. What is the conclusion?


ANS:
Do not reject H0
PTS: 1

OBJ: Section 12.3

9. A consumer research organization is attempting to determine whether there is any difference in mpg
for fully loaded 22-foot trucks leased from three companies, A-Haul, Bertz, and Glyder. Five of these
trucks are rented from each company. Each truck is driven with the same weight cargo over the same
200 mile route and the mpg recorded. The results of the test are:

Perform the hypothesis test: H0:

(Average mpg is the same for all three rental companies)

H1: Not all of the mean mpg is the same for the three companies An
research organization. Is there any difference in mean mpg?

= 0.05 is used by the consumer

Test statistic = ____________________ = ____________________


Conclusion: ____________________
Interpretation: ________________________________________________________
ANS:
SST = 63.340, SSTR = 28.948, SSE = 34.392; Critical value:F(2,12,0.05) = 3.89 Test statistic: F=
5.05; Reject H0; Mean mpg is NOT equal in all three companies

PTS: 1

OBJ: Section 12.3

NARRBEGIN: Model
A consumer group is testing the gas mileage of 3 different models of cars. Several cars were driven
1000 miles and the gas mileage was recorded in the following table.
Model 1
22.6
20.9
23.6
21.9
22.0
21.1
18.7

Model 2
19.6
22.3
20.5
17.0
17.6
19.2

Model 3
25.3
21.6
20.5
24.6
22.7
20.5
20.9

NARREND
10. State the null and alternative hypotheses.
ANS:
H0:
H1: The population means are not all equal
PTS: 1

OBJ: Section 12.3

11. Calculate the treatment mean square and the error mean square.
Calculate the test statistic.
ANS:
MSTR = 14.71
MSE = 3.32
F = 4.430
PTS: 1
12. Using

OBJ: Section 12.3


= 0.05, state the decision rule in terms of the critical value.

ANS:
If F > 3.59, we reject the null hypothesis. If F
PTS: 1
13. Using

3.59, we fail to reject the null hypothesis.

OBJ: Section 12.3


= 0.05, state the conclusion.

ANS:
Since F > 3.59, we reject the null hypothesis and conclude that the gas mileage differs between the 3
models.
PTS: 1

OBJ: Section 12.3

NARRBEGIN: Grocery store

Management of the refrigerator space in a grocery store requires knowledge of the average amount of
items sold. Specifically the store manager wishes to determine whether or not to allocate the same
shelf space for three flavors of yogurt: raspberry, peach, and lemon. During five randomly selected
weeks the sales data for each flavor were recorded. The average daily sales for each flavor were:

NARREND
14. State the null and alternative hypotheses.
H0: ____________________
H1: _________________________________________
ANS:
; The population means are not equal
PTS: 1

OBJ: Section 12.3

15. Calculate the test statistic.


Test statistic = ____________________ = ____________________
ANS:
F; 0.411
PTS: 1

OBJ: Section 12.3

16. What is the conclusion?


ANS:
Do not reject H0
PTS: 1

OBJ: Section 12.3

17. Fill in the blanks (identified by asterisks and numbers) in the following partial ANOVA table:
Source of Variation
Treatments
Error
Total

SS
(*1)
625
1600

df
(*2)
(*4)
25

ANS:
*1 = 975; *2 = 5; *3 = 6.24; *4 = 20, *5 = 31.25
PTS: 1

OBJ: Section 12.3

MS
195
(*5)

F
(*3)

18. A pharmaceutical manufacturer has been researching new formulas to provide quicker relief of minor
pains. His laboratories have produced three different formulas, which he wanted to test. Fifteen people
who complained of minor pains were recruited for an experiment. Five were given formula 1, five
were given formula 2, and the last five were given formula 3. Each was asked to take the medicine and
report the length of time until some relief was felt. The results are shown below. Do these data provide
sufficient evidence to indicate that differences in the time of relief exist among the three formulas? Use
= .05.

Test statistic = ____________________ = ____________________


Critical Value = ____________________
Conclusion: ____________________
Interpretation: ______________________________________________
ANS:
Source of variation
Treatments
Error
Total

SS
36.4
42.0
78.4

df
2
12
14

MS
18.2
3.5

F
5.2

P-value
.0236

F critical
3.885

H0: 1 = 2 = 3; H1: The population means are not all equal


F = 5.2; Reject H0; The population mean times are NOT all equal
PTS: 1

OBJ: Section 12.3

NARRBEGIN: Courses
A father and his two sons played golf at four different courses with the following scores:
Course 1
Course 2
Course 3
Course 4

Dad
92
95
88
90

Sam
86
86
81
87

Jeff
81
87
83
90

NARREND
19. State the null and alternative hypotheses to test for a difference in golf score means for each person.
ANS:
H0:
H1: The golf score means are not equal

PTS: 1

OBJ: Section 12.4

20. Use a randomized block design to test for the difference of golf score means using
the courses as the blocking variable.

= 0.05 and using

Calculate the block sum of squares.


ANS:
SSB = 56.33
PTS: 1

OBJ: Section 12.4

21. Use a randomized block design to test for the difference of golf score means using
the courses as the blocking variable.

= 0.05 and using

Calculate the error sum of squares and the error mean square.
ANS:
SSE = 41.17
MSE = 6.86
PTS: 1

OBJ: Section 12.4

22. Use a randomized block design to test for the difference of golf score means using
the courses as the blocking variable.

= 0.05 and using

Calculate the treatment sum of squares and the treatment mean square.
ANS:
SSTR = 100.17
MSTR = 50.08
PTS: 1

OBJ: Section 12.4

23. Use a randomized block design to test for the difference of golf score means using
the courses as the blocking variable.

= 0.05 and using

Calculate the test statistic.


ANS:
F = 7.300
PTS: 1

OBJ: Section 12.4

24. Use a randomized block design to test for the difference of golf score means using
the courses as the blocking variable.

= 0.05 and using

State the decision rule in terms of the critical value.


ANS:
If F > 5.14, we reject the null hypothesis. If F
PTS: 1

OBJ: Section 12.4

5.14, we fail to reject the null hypothesis.

25. Use a randomized block design to test for the difference of golf score means using
the courses as the blocking variable.

= 0.05 and using

What is your conclusion?


ANS:
Since F > 5.14, we reject the null hypothesis and conclude that the average golf scores are not equal.
PTS: 1

OBJ: Section 12.4

NARRBEGIN: Stores
A vice president would like to know whether there is a difference between the average number of
customers per day between four different stores. The following data was collected over the same 5-day
period for each store.
Day 1
Day 2
Day 3
Day 4
Day 5

Store 1
36
42
39
25
47

Store 2
12
22
33
30
34

Store 3
25
51
40
42
26

Store 4
30
36
28
46
35

NARREND
26. State the null and alternative hypotheses to test for a difference in average number of customers per
day for each store.
ANS:
H0:
H1: The mean numbers of customers per day for each store are not all equal
PTS: 1

OBJ: Section 12.4

27. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.
Calculate the block sum of squares.
ANS:
SSB = 353.7
PTS: 1

OBJ: Section 12.4

28. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.
Calculate the error sum of squares and the error mean square.
ANS:
SSE = 948.7

MSE = 79.06
PTS: 1

OBJ: Section 12.4

29. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.
Calculate the treatment sum of squares and the treatment mean square.
ANS:
SSTR = 420.55
MSTR = 140.18
PTS: 1

OBJ: Section 12.4

30. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.
Calculate the test statistic.
ANS:
F = 1.773
PTS: 1

OBJ: Section 12.4

31. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.
State the decision rule in terms of the critical value.
What is your conclusion?
ANS:
If F > 3.49, we reject the null hypothesis. If F

3.49, we fail to reject the null hypothesis.

Since F 3.49, we fail to reject the null hypothesis and conclude that we do not have enough evidence
to claim that the average number of customers per day between four different stores are not equal.
PTS: 1

OBJ: Section 12.4

NARRBEGIN: Lawn Fertilizer


To test the effectiveness of three different types of lawn fertilizer, each type was applied to six
different lawns. The same size patch of lawn was mowed for all 18 test units and the grass clippings
were weighed. The weight in pounds are shown in the following table.
Lawn 1
Lawn 2
Lawn 3
Lawn 4

Fertilizer 1
10.3
8.6
8.2
10.6

Fertilizer 2
11.7
12.0
9.3
10.5

Fertilizer 3
8.2
8.9
10.7
9.3

Lawn 5
Lawn 6

9.1
8.2

9.8
12.4

10.4
9.6

NARREND
32. State the null and alternative hypotheses to test for a difference in average number of customers per
day for each store.
ANS:
H0:
H1: The average weights of grass clippings for each fertilizer are not all equal
PTS: 1

OBJ: Section 12.4

33. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.
Calculate the block sum of squares.
ANS:
SSB = 1.14
PTS: 1

OBJ: Section 12.4

34. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.
Calculate the error sum of squares and the error mean square.
ANS:
SSE = 16.76
MSE = 1.68
PTS: 1

OBJ: Section 12.4

35. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.
Calculate the treatment sum of squares and the treatment mean square.
ANS:
SSTR = 10.71
MSTR = 5.36
PTS: 1

OBJ: Section 12.4

36. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.

Calculate the test statistic.


ANS:
F = 3.197
PTS: 1

OBJ: Section 12.4

37. Develop a randomized block design to test for the difference between the average number of
customers per day between four different stores using = 0.05 and using the days as the blocking
variable.
State the decision rule in terms of the critical value.
What is your conclusion?
ANS:
If F > 4.10, we reject the null hypothesis. If F

4.10, we fail to reject the null hypothesis.

Since F 4.10, we fail to reject the null hypothesis and conclude that we do not have enough evidence
to claim that the average weight of the grass clippings for each type of fertilizer are not equal.
PTS: 1

OBJ: Section 12.4

NARRBEGIN: Shelf Level


Shelf height may affect the volume of sales for a product. In order to determine whether or not there is
any effect on average sales due to product shelf height, a marketing consultant chooses four typical
outlets, a supermarket, a drug store, a discount store, and a variety store, and for one week places the
product chosen at one eye level. A resting week follows and the product is moved to another height
and so on for three different heights. The number of units sold per week at each location and height
are:

NARREND
38. Test the following hypotheses at the 5% significance level:
H0 : Mean sales of shelf levels are equal
H1: Mean sales of shelf levels are not equal
Test statistic = ____________________ = ____________________
Critical Value = ____________________
Conclusion: ________________________
Interpretation: ______________________________________
ANS:

Critical value: F(0.05, 2, 6) = 5.14; Test statistic: F = 17.527; Reject H0; There is a difference in the
mean sales for the shelf heights.
PTS: 1

OBJ: Section 12.4

39. Test the following hypotheses at the 5% significance level:


H0: Mean sales of stores are equal
H1: Mean sales of stores are not equal
Test statistic = ____________________ = ____________________
Critical Value = ____________________
Conclusion: ________________________
Interpretation: _______________________________________
ANS:
Critical value: F(0.05, 3, 6) = 4.76; Test statistic: F = 57.092. Reject H0; There is a difference in mean
sales for the stores.
PTS: 1

OBJ: Section 12.4

40. A randomized block design experiment produced the following data.

A) Test to determine whether the treatment means differ. (Use

= 0.05.)

Test statistic = ____________________ = ____________________


Critical Value = ____________________
Conclusion: ____________________
Interpretation: _______________________________________
B) Test the effectiveness of the blocking variable. (Use

= 0.05.)

Test statistic = ____________________ = ____________________


Critical Value = ____________________
Conclusion: ____________________
Interpretation: ________________________________________

ANS:
Source of variation
Treatments
Blocks
Error
Total

SS
29.733
336.933
18.267
384.933

df
2
4
8
14

MS
14.867
84.233
2.283

F
6.511
36.891

P-value
.02097
0.00335

F critical
4.459
3.838

H0: 1 = 2 = 3; H1: The population means are not equal


F= 6.511;Critical value = 4.459; Reject H0; The population means are NOT equal;
H0: The levels of the blocking variable are equal in their effect;
H1: At least one level has a different effect from the others
F;=36.891; Critical value = 3.838; Reject H0; The blocking variable is effective
PTS: 1

OBJ: Section 12.4

NARRBEGIN: Music
A study to examine the effect of music type and assembly method on the productivity of workers on a
production line for electronic circuit boards produced the following results:

NARREND
41. Test for the main effects of factor A at the 5% significance level.
ANS:
H0: i = 0 (No level of factor A has an effect)
H1: i 0 (At least one level of factor A has an effect)
Test statistic: F= 7.69;Critical value: F(0.05, 1, 4) = 7.71; Do not reject H 0; No level of factor A has an
effect.
PTS: 1

OBJ: Section 12.5

42. Test for the main effects of factor B at the 5% significance level.
ANS:
H0: i = 0 (No level of factor B has an effect)
H1: i 0 (At least one level of factor B has an effect)
Test statistic: F= 52.0;Critical value: F(0.05, 1, 4) = 7.71; Reject H0 At least one level of factor B has
an effect.
PTS: 1

OBJ: Section 12.5

43. Test for the interaction effects between levels of factors A and B at the 5% significance level.

ANS:
H0: (ij = 0 (There is no interaction effect)
H1: (ij 0 (At least one combination of i and j has an effect)
Test statistic:= F= 0.308;Critical value: F(0.05, 1, 4) = 7.71; Do not reject H 0; There are no interaction
effects between levels of factors A and B.
PTS: 1

OBJ: Section 12.5

NARRBEGIN: Lighting
A study to examine the effect of lighting type and assembly method on the productivity of workers on
a production line for electronic circuit boards produced the following results:

NARREND
44. Test for the main effects of factor A at the 5% significance level.
ANS:
H0: i = 0 (No level of factor A has an effect)
H1: i 0 (At least one level of factor A has an effect)
Test statistic: F= 1.116;Critical value: F(0.05, 1, 4) = 7.71; Do not reject H 0; No level of factor A has
an effect.
PTS: 1

OBJ: Section 12.5

NARRBEGIN: Test Statistic

NARREND
45. What decisions can be made about the null hypothesis for the main effects and the interaction effects at
the 0.05 significance level?
ANS:
All null hypotheses will be rejected at alpha = 0.05.
PTS: 1

OBJ: Section 12.5

46. In a two-way analysis of variance, there are "a" levels for factor A, "b" levels for factor B, and "r"
replications within each of the factor-level combinations, or cells. What are the degrees of freedom for
error?

ANS:
ab(r - 1)
PTS: 1

OBJ: Section 12.5

47. In a two-way analysis of variance, there are "a" levels for factor A, "b" levels for factor B, and "r"
replications within each of the factor-level combinations, or cells. What are the degrees of freedom for
the interaction between factors A and B?
ANS:
(a - 1)(b - 1)
PTS: 1

OBJ: Section 12.5

48. In a two-way analysis of variance, there are "a" levels for factor A, "b" levels for factor B, and "r"
replications within each of the factor-level combinations, or cells. What are the total degrees of
freedom?
ANS:
abr - 1
PTS: 1

OBJ: Section 12.5

49. A professor of statistics is trying to determine which of three statistical software packages is the best
for his students. He believes that the time (in hours) it takes a student to master a particular software
may be influenced by gender. A 3 X 2 factorial experiment with three replicates was designed, as
shown below:

Is there sufficient evidence at the 10% significance level to infer that the time it takes a student to
master software and the gender of the student interact?
ANS:
Source of variation
Software
Gender
Interaction
Error
Total

SS
34.778
53.389
26.778
213.333
328.278

df
2
1
2
12
17

MS
17.389
53.389
13.389
17.778

F
0.978
3.003
0.753

P-value
0.4041
0.1087
0.4919

H0: Software type and gender do not interact; H1: Software and gender do interact

F critical
2.807
3.177
2.807

F= 0.753;Critical value = 2.807; Do not reject H0; Software and gender do NOT interact
PTS: 1

OBJ: Section 12.5

50. In a two-way ANOVA experiment, factor A is operating on 3 levels, factor B is operating on 4 levels,
and there are 2 replications per cell. How many treatments are there in this experiment? Explain.
ANS:
12; A treatment consists of a combination of one level of factor A and one level of factor B.
PTS: 1

OBJ: Section 12.5

ESSAY
1. What is an experiment?
ANS:
A study or investigation designed for the purpose of examining the effect that one variable has on the
value of another variable.
PTS: 1

OBJ: Section 12.2

2. What is meant by a designed experiment?


ANS:
A designed experiment is an experiment in which treatments are randomly assigned to the participants
or test units.
PTS: 1

OBJ: Section 12.2

3. What is a factor?
ANS:
A factor is an independent variable.
PTS: 1

OBJ: Section 12.2

4. Explain the role that between-sample variation and within-sample variation play in carrying out an
analysis of variance.
ANS:
In ANOVA, we compare between-sample variation to within-sample variation. The basic role of the
two variations is that their ratio provides the test statistic.
PTS: 1

OBJ: Section 12.2

5. What is the purpose of the randomized block design?


ANS:
The purpose of the randomize block design is to reduce the amount of error variation by ensuring that
the treatment groups will be comparable in terms of the blocking variable.
PTS: 1

OBJ: Section 12.4

6. In the randomized block design, what benefit is gained from blocking?


ANS:
Blocking allows for a better comparison of the effect of the treatments by reducing the amount of error
variation.
PTS: 1

OBJ: Section 12.4

7. What assumptions are required in using the randomized block design?


ANS:
a. The one observation in each treatment-block combination has been randomly selected from a
normally distributed population. b. The variances are equal for the values in the respective populations.
c. There is no interaction between the blocks and treatments.
PTS: 1

OBJ: Section 12.4

8. How does the randomized block design differ from the one-way, completely randomized design?
ANS:
In the one-way ANOVA, the treatments are randomly assigned to the test units. In the randomized
block design, the test units are first arranged into similar groups and then the treatments are randomly
assigned.
PTS: 1

OBJ: Section 12.4

9. What is the purpose of two-way ANOVA?


ANS:
The purpose two-way ANOVA is to simultaneously examine the effects of two factors on a dependent
variable and the effect of interactions between the different levels of these two factors.
PTS: 1

OBJ: Section 12.5

10. In the two-way ANOVA, what is meant by the term "replications"?


ANS:
Replications refers to the number of persons or test units within each cell. Within each combination of
levels, there will be k = 1 through r observations or replications.
PTS: 1

OBJ: Section 12.5

11. What assumptions are required in using the two-way ANOVA?


ANS:
We assume the r observations in each cell have been drawn from normally distributed populations with
equal variances.
PTS: 1

OBJ: Section 12.5

12. Why are there more sets of null and alternative hypotheses that can be tested in two-way ANOVA
compared to the one-way and the randomized block design?

ANS:
In the two-way analysis of variance we are interested in the effect of two factors and their interaction
on the dependent variable. Therefore, we test for each factor effect and for interaction. In the one-way
analysis of variance and the randomized block designs, we are interested in only one factor effect.
PTS: 1

OBJ: Section 12.5

13. How is two-way ANOVA similar to the randomized block design? How does it differ?
ANS:
The two-way analysis of variance and the randomized block design are similar since they both
consider two factors in the model. However, in the randomized block design, the blocking variable is
only used for the purpose of exerting improved control over the examination of the single factor of
interest. In two-way analysis of variance, we are interested in the effects of two factors and their
interaction on the dependent variable.
PTS: 1

OBJ: Section 12.5

14. In the two-way ANOVA, what is meant by main effects and interactive effects?
ANS:
The main effect is an effect caused by one of the factors in the experiment. The interactive effect is the
effect that results from the combination of a level of one factor with a level of another factor.
PTS: 1

OBJ: Section 12.5

Chapter 13: Chi-Square Applications


TRUE/FALSE
1. True or False
The chi-square distribution can be used in constructing confidence intervals and carrying out
hypothesis tests regarding the value of a population variance.
ANS: T

PTS: 1

OBJ: Section 13.1

2. True or False
The normal distribution can be used to examine whether two nominal variables could be independent
of each other.
ANS: F

PTS: 1

OBJ: Section 13.1

3. True or False
Like the critical values for the normal distribution and the t-distribution, the critical values for the chisquare distribution can be either positive or negative.
ANS: F

PTS: 1

OBJ: Section 13.2

4. True or False
The chi-square distribution is skewed to the left (negatively skewed), but as degrees of freedom
increase, it approaches the shape of the binomial distribution.
ANS: F

PTS: 1

OBJ: Section 13.2

5. True or False
The goodness-of-fit chi-square test is a two-tailed test.
ANS: F

PTS: 1

OBJ: Section 13.3

6. True or False
In a goodness-of-fit chi-square test, a large amount of discrepancy between the frequencies that are
observed and those that are expected tend to cause us to fail to reject the null hypothesis.
ANS: F

PTS: 1

OBJ: Section 13.3

7. True or False
In goodness-of-fit tests, the chi-square analysis is applied for the purpose of examining whether two
nominal-scale variables are related to each other.
ANS: F

PTS: 1

OBJ: Section 13.3

8. True or False
The goodness-of-fit test requires that the sample data be arranged into categories that are both
mutually exclusive and exhaustive.
ANS: T

PTS: 1

OBJ: Section 13.3

9. True or False
The purpose of the chi-square analysis to test the independence of two variables is to determine the
exact nature of the relationship between two ratio variables.
ANS: F

PTS: 1

OBJ: Section 13.4

10. True or False


By using chi-square analysis, we can compare two or more sample proportions at the same time.
ANS: T

PTS: 1

OBJ: Section 13.5

11. True or False


For all practical purposes, the test for equality of proportions is really just a special case for the
independence of two variables.
ANS: T

PTS: 1

OBJ: Section 13.5

12. True or False


Since the sample variance is the point estimate for the population variance, the confidence interval for
the population variance will be the sample variance plus or minus a fixed quantity.
ANS: F

PTS: 1

OBJ: Section 13.6

13. True or False


Although the chi-square distribution is continuous, it is used to analyze discrete (counts) data.
ANS: T
14. True or False

PTS: 1

OBJ: Section 13.6

In order to use the chi-square distribution to construct confidence intervals and carry out hypothesis
tests regarding the value of a population variance, an important assumption to be made is that the
population is chi-square distributed.
ANS: F

PTS: 1

OBJ: Section 13.6

MULTIPLE CHOICE
1. With larger and larger numbers of categories in chi-square tests, the chi-square distribution takes on
the shape of the:
a. Poisson distribution.
b. t-distribution.
c. normal distribution.
d. F-distribution.
e. binomial distribution.
ANS: C

PTS: 1

OBJ: Section 13.2

2. A chi-square test for independence with 8 degrees of freedom results in a test statistic of 18.21. Using
the chi-square table, the most accurate statement that can be made about the p-value for this test is that:
a. p-value > 0.20.
b. 0.025 > p-value > 0.01.
c. 0.05 > p-value > 0.025.
d. 0.10 > p-value > 0.05.
e. 0.20 > p-value > 0.10.
ANS: B

PTS: 1

OBJ: Section 13.2

3. The area to the right of a chi-square value is 0.025. For 5 degrees of freedom, the table value is:
a. 12.833.
b. 15.086.
c. 11.07.
d. 11.143.
e. 16.182.
ANS: A

PTS: 1

OBJ: Section 13.2

4. When the number of degrees of freedom is small, the shape of the chi-square distribution is
a. symmetrical.
b. uniform.
c. positively skewed.
d. negatively skewed.
e. normal.
ANS: C

PTS: 1

OBJ: Section 13.2

5. For the chi-square goodness-of-fit test, the null hypothesis is rejected whenever:
a. the calculated chi-square statistic is less than the critical value.
b. the calculated chi-square statistic is equal to the critical value.
c. the calculated chi-square statistic is greater than the critical value.
d. the calculated chi-square statistic is not equal to the critical value.
ANS: C

PTS: 1

OBJ: Section 13.3

6. Which of the following tests will determine whether sample data could have been drawn from a
population having a specified probability distribution?
a. independence of two variables
b. comparing proportions from two independent samples
c. estimating the population variance
d. goodness-of-fit test
e. confidence interval around a sample mean
ANS: D

PTS: 1

OBJ: Section 13.3

7. For a chi-square distributed random variable with 12 degrees of freedom and a significance level of
0.025 the chi-square value from the table is 23.337. Which of the following computed values of chisquare will lead to acceptance of the null hypothesis?
a. 42.22
b. 28.43
c. 31.34
d. 26.34
e. 18.26
ANS: E

PTS: 1

OBJ: Section 13.2

8. A chi-square test for independence with 10 degrees of freedom results in a test statistic of 18.21. Using
the chi-square table, the most accurate statement that can be made about the p-value for this test is that:
a. p-value > 0.20.
b. 0.025 > p-value > 0.01.
c. 0.05 > p-value > 0.025.
d. 0.10 > p-value > 0.05.
e. 0.20 > p-value > 0.10.
ANS: D

PTS: 1

OBJ: Section 13.2

9. To use the chi-square distribution table to select a table value requires the following:
a. numerator degrees of freedom.
b. denominator degrees of freedom.
c. level of significance.
d. degrees of freedom.
e. C and D above.
ANS: E

PTS: 1

OBJ: Section 13.2

10. The middle 0.95 portion of the chi-square distribution with 10 degrees of freedom has table values of:
a. 2.558, 3.247, respectively.
b. 3.247, 18.307, respectively.
c. 3.247, 20.483, respectively.
d. 3.940, 20.483, respectively.
e. 4.366, 23.843, respectively.
ANS: C

PTS: 1

OBJ: Section 13.6

11. In the goodness-of-fit chi-square test, under which assumption are the expected frequencies
constructed?
a. The population follows the chi-square distribution.
b. The null hypothesis is true.
c. The alternative hypothesis is true.
d. The null hypothesis is false.

e. None of the above assumptions are necessary to construct the expected frequencies.
ANS: B

PTS: 1

OBJ: Section 13.3

12. A left tail area in the chi-square distribution equals 0.95. For df = 10, the table value equals:
a. 18.307.
b. 15.987.
c. 3.940.
d. 20.483.
ANS: A

PTS: 1

OBJ: Section 13.6

13. The chi-square distribution is used in:


a. a goodness-of-fit test.
b. a test of a contingency table.
c. making inferences about a single population variance.
d. comparing proportions from independent samples.
e. all of these answers are correct.
ANS: E

PTS: 1

OBJ: Section 13.2

14. Which of the following tests do not use the chi-square distribution?
a. Test of a contingency table
b. Goodness-of-fit test
c. Difference between two population means test
d. All of these tests use the chi-squared distribution
ANS: C

PTS: 1

OBJ: Section 13.2

15. In the goodness-of-fit chi-square test, the rule of thumb that the expected frequency for each category
should be at least 5 exists because:
a. the chi-square distribution is not symmetrical when the expected frequency of a category
is less than 5.
b. the test statistic for the chi-square distribution is based on the assumption that the expected
frequency of each category is greater than 5.
c. the chi-square distribution is negatively skewed when the expected frequency of a
category is less than 5.
d. the chi-square distribution is continuous while the counts on which the test statistic are
based are discrete.
e. the chi-square distribution is positively skewed when the expected frequency of a category
is less than 5.
ANS: D

PTS: 1

OBJ: Section 13.3

16. The chi-square test statistic is chi-squared distributed with n - 1 degrees of freedom only if the:
a. population is normally distributed.
b. sample is normally distributed.
c. sample has a Student t-distribution with degrees of freedom equal to n - 1.
d. population has a Student t-distribution with degrees of freedom equal to n.
ANS: A

PTS: 1

OBJ: Section 13.2

17. Which of the following would be the recommended action if the expected frequency for a particular
category is less than 5 in the goodness-of-fit chi-square test?
a. Decrease the significance level so that each category will have an expected frequency
greater than 5.

b. Combine adjacent cells so that the result will have an expected frequency greater than 5.
c. Increase the sample size so that each category will have an expected frequency greater
than 5.
d. Either b or c could be used to ensure that each category will have an expected frequency
greater than 5.
e. Either a, b or c could be used to ensure that each category will have an expected frequency
greater than 5.
ANS: D

PTS: 1

OBJ: Section 13.3

18. In a goodness-of-fit test, the null hypothesis states that the data came from a normally distributed
population. The researcher estimated the population mean and population standard deviation from a
sample of 500 observations. In addition, the researcher used 6 standardized intervals to test for
normality. Using a 5% level of significance, the critical value for this test is:
a. 11.143.
b. 9.348.
c. 7.815.
d. 9.488.
ANS: C

PTS: 1

OBJ: Section 13.3

19. A chi-square goodness-of-fit test is always conducted as:


a. a left-tail test.
b. a right-tail test.
c. a two-tail test.
d. the answer depends of whether the hypothesis is directional or nondirectional.
ANS: B

PTS: 1

OBJ: Section 13.3

20. In a goodness-of-fit chi-square test, if the null hypothesis states The sample was drawn from a
population that follows the normal distribution and the test has 7 categories that are mutually
exclusive and exhaustive, the number of degrees of freedom will be
a. 4
b. 5
c. 6
d. 7
e. 8
ANS: A

PTS: 1

OBJ: Section 13.3

21. In chi-square tests, the conventional and conservative rule, known as the Rule of Five, is to require
that:
a. observed frequency for each cell be at least five.
b. degrees of freedom for the test be at least five.
c. expected frequency for each cell be at least five.
d. difference between the observed and expected frequency for each cell be at least five.
ANS: C

PTS: 1

OBJ: Section 13.3

22. Of the values for a chi-squared test statistic listed below, which one is likely to lead to rejecting the
null hypothesis in a goodness-of-fit test?
a. 30
b. 3
c. 2
d. 1

ANS: A

PTS: 1

OBJ: Section 13.3

23. To determine whether a single coin is fair, the coin was tossed 100 times, and head was observed 60
times. The value of the test statistic is:
a. 4.
b. 40.
c. 6.
d. 60.
ANS: A

PTS: 1

OBJ: Section 13.3

24. To determine whether data were drawn from a specific distribution, we use a:
a. chi-square goodness-of-fit test.
b. chi-square test of a contingency table.
c. chi-square test for normality.
d. chi-square test for a population variance.
ANS: A

PTS: 1

OBJ: Section 13.3

25. In a goodness-of-fit chi-square test, if the null hypothesis states The sample was drawn from a
population that follows the binomial distribution and the test has 6 categories that are mutually
exclusive and exhaustive, the number of degrees of freedom will be
a. 3.
b. 4.
c. 5.
d. 6.
e. 7.
ANS: B

PTS: 1

OBJ: Section 13.3

26. In a chi-squared test of a contingency table, the value of the test statistic was 2 = 12.678, and the
critical value at = 0.025 was 14.4494. Thus:
a. we fail to reject the null hypothesis at = 0.025.
b. we reject the null hypothesis at = 0.025.
c. we don't have enough evidence to accept or reject the null hypothesis at = 0.025.
d. we should decrease the level of significance in order to reject the null hypothesis.
ANS: A

PTS: 1

OBJ: Section 13.4

27. The number of degrees of freedom in a test of a contingency table with 5 rows and 3 columns equals:
a. 4.
b. 7.
c. 8.
d. 3.
ANS: C

PTS: 1

OBJ: Section 13.4

28. The chi-square test of independence is based upon:


a. two qualitative variables.
b. two quantitative variables.
c. three or more qualitative variables.
d. three or more quantitative variables.
ANS: A

PTS: 1

OBJ: Section 13.4

29. In the chi-square test for equality of proportions, the procedure is identical test for independence of
two variables with the exception that in the test for equality of proportions:
a. each column consists of observations for an independent sample.
b. each table will always have 2 rows.
c. the number of degrees of freedom will be the number of rows times the number of
columns.
d. both a and b.
e. all of the above.
ANS: D

PTS: 1

OBJ: Section 13.5

30. In testing a population variance or constructing a confidence interval for the population variance, an
essential assumption is that:
a. sample size exceeds 30.
b. expected frequencies equal or exceed 5.
c. the population is uniformly distributed.
d. the population is normally distributed.
e. the population is binomially distributed.
ANS: D

PTS: 1

OBJ: Section 13.6

31. In a hypothesis test for the population variance, the alternate hypothesis is the population variance
does not equal 17.0. The significance level to be used is 0.05 and the sample size to be taken is 25. The
table value(s) to use from the chi-square distribution is (are):
a. 39.364.
b. 40.647.
c. 12.401 and 39.364.
d. 13.120 and 40.647.
e. 12.401.
ANS: C

PTS: 1

OBJ: Section 13.6

32. Lily Energy Systems manufactures wood-burning heaters and fireplace inserts. One of its systems has
an electric blower, which is thermostatically controlled. The blower is designed to automatically turn
on when the temperature in the stove reaches 125 degrees F. and turn off at 85 degrees F. Complaints
from customers indicate that the thermostat control is not working properly. The company feels that
the thermostat is acceptable if the variance in the cutoff temperature is less than or equal to 175. The
company takes a sample of 24 thermostats and finds that the variance equals 289. The calculated chisquare test statistic and the table value for a 0.05 significance level are:
a. 35.172, 38.99.
b. 37.983, 35.172.
c. 38.076, 38.99.
d. 37.983, 38.076.
e. none of these.
ANS: B

PTS: 1

OBJ: Section 13.6

33. The Forest Management Institute is conducting a test, which involves measuring the size of trees by
photographing from helicopter rather than actual field measurement. This process is especially
important in forest areas accessible only by helicopter. A sample of 31 trees measured by aerial
photography had a sample standard deviation of 2.24. A 95 percent confidence interval for the
population variance is represented by the values:
a. 30(2.24) / 46.979 and 30(2.24) / 16.791.
b. 30(2.242) / 46.979 and 30(2.242) / 16.791.
c. 31(2.24) / 16.791 and 31(2.24) / 46.979.

d. 31(2.242) / 46.979 and 31(2.242) / 16.791.


e. 30(2.24) / 16.791 and 30(2.24) / 46.979.
ANS: B

PTS: 1

OBJ: Section 13.6

34. A researcher is studying cancer mortality rates for men in five southern states. In the five states, the
sample standard deviation is 6.76 (per 100,000). A 98 percent confidence interval estimate of the
population variance is represented by:
a. 5(6.76) / 13.277 and 5(6.76) / 0.297.
b. 5(6.762) / 13.277 and 5(6.762) / 0.297.
c. 4(6.76) / 13.277 and 4(6.76) / 0.297.
d. 4(6.762) / 13.277 and 4(6.762) / 0.297.
e. 4(6.762) / 0.297 and 4(6.762) / 13.277.
ANS: D

PTS: 1

OBJ: Section 13.6

NUMERIC RESPONSE
1. The null hypothesis states that the sample data came from a normally distributed population. The
researcher calculates the sample mean and the sample standard deviation from the data. The data
arrangement consisted of six categories. Using a 0.01 significance level, what is the appropriate critical
value for this chi-square test?
ANS: 11.345
PTS: 1

OBJ: Section 13.3

NARRBEGIN: Department store


A large department store records the number of returns per day in women's dresses for reasons such as
wrong size; husband didn't like it, color, etc. The manager of the women's dresses department recalls
from her statistics class in college that the Poisson distribution might describe such events. A random
sample of 150 days is taken. The number of returns per day in the sample as well as the observed
frequencies are shown below:

NARREND
2. She tests the hypothesis that returns per day are Poisson distributed with a population mean equal to
1.90. Her significance level is 0.05. What are the appropriate degrees of freedom?
ANS: 4
PTS: 1

OBJ: Section 13.3

NARRBEGIN: Stocks

One thousand stocks watched by a financial advisory company are advertised as having an average
return-on-equity (ROE) of 11.4 percent and a standard deviation of 3 percent. An inquiry is made by a
prospective client who finds that the ROE is supposed to be normally distributed for these stocks. The
prospective client obtains a list of the stocks and randomly samples 300 stocks and records the ROE.
The results are:

NARREND
3. What are the appropriate degrees of freedom based on the above data?
ANS: 3
PTS: 1

OBJ: Section 13.3

4. What is the appropriate table value for the .10 significance level?
ANS: 6.251
PTS: 1

OBJ: Section 13.3

5. What is the calculated value of the chi-square test statistic?


ANS: 3.732
PTS: 1

OBJ: Section 13.3

NARRBEGIN: Accommodations
Business travelers stay in a variety of accommodations. A set of national percentages for types of
accommodations shows their choices below. During a sluggish economy there may be changes in
business traveler accommodation patterns so a travel consultant surveyed 300 business travelers and
asked about their accommodations. These data will be used to test whether or not the present
accommodation distribution is the same as the national one.

NARREND
6. What are the appropriate degrees of freedom?
ANS: 3

PTS: 1

OBJ: Section 13.3

7. What is the expected frequency of the Hotel or Motel category?


ANS: 192
PTS: 1

OBJ: Section 13.3

8. What is the computed value of the chi-square test statistic?


ANS: 6.851
PTS: 1

OBJ: Section 13.3

NARRBEGIN: Mean Profit


A report stated that the mean profit margin of 1000 publicly held corporations is 7.5 percent and the
standard deviation is 5.1 percent. Profit margins appear normally distributed. A financial analyst
sampled 100 of these companies to test whether or not the mean and standard deviation are as stated.
The sample results were:

NARREND
9. What is the expected frequency of the under 2 category?
ANS: 14.01
PTS: 1

OBJ: Section 13.3

10. What is the expected frequency of the 18 or more category?


ANS: 1.97
PTS: 1

OBJ: Section 13.3

11. A test for independence is applied to a contingency table with 4 rows and 5 columns for two nominal
variables. Calculate the degrees of freedom for this test.
ANS: 12
PTS: 1

OBJ: Section 13.4

NARRBEGIN: Large city


A large city is in the process of voting on a bond issue to build a covered sports arena. A local political
analyst wishes to determine if the level of income will impact on the decision of the voters. He takes a
sample of 350 who plan to vote in the upcoming election.

NARREND
12. What is the appropriate table value for a test for independence at the 0.025 significance level?
ANS: 11.143
PTS: 1

OBJ: Section 13.4

13. What is the expected frequency of the $50,000 and over and No categories?
ANS: 10.29
PTS: 1

OBJ: Section 13.4

14. What is the calculated value of the test statistic?


ANS: 13.77
PTS: 1

OBJ: Section 13.4

NARRBEGIN: Gifts
Three choices of free gifts are offered to 270 persons who subscribed to a new magazine. The number
choosing each gift is shown in the table below. Assume the null hypothesis that the gifts are equally
attractive to the subscribers. Use a 0.01 significance level.

NARREND
15. Compute the test statistic.
ANS: 15.56
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Video
The owner of a video store is interested in whether or not there is a difference in the proportions of
VCR movies rented by members and non-members among movie titles. Three movies are selected and
each person who rents them is identified as a member or non-member. A total of 350 people rent these
movies and the responses are:

NARREND
16. What are the degrees of freedom for the test of equal proportions?
ANS: 2
PTS: 1

OBJ: Section 13.5

17. What is the expected frequency of the cell Rambo and Non-member?
ANS: 70
PTS: 1

OBJ: Section 13.5

18. What is the computed value of the test statistic?


ANS: 35.89
PTS: 1

OBJ: Section 13.5

19. What is the critical value for a 0.01 significance level?


ANS: 9.21
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Employee
Four employees are monitored to determine whether there is any difference in the proportions of
acceptable parts produced by the employees. The sample of parts produced is given below.

NARREND
20. These data provide the information for testing the hypothesis that the proportion of unacceptable is the
same for the four employees. What is the expected frequency for Acceptable and employee 3?
ANS: 237.50
PTS: 1

OBJ: Section 13.5

21. These data provide the information for testing the hypothesis that the proportion of unacceptable is the
same for the four employees. What will be the degrees of freedom for this test?

ANS: 3
PTS: 1

OBJ: Section 13.5

22. These data provide the information for testing the hypothesis that the proportion of unacceptable is the
same for the four employees. At a significance level of 0.01, what will be he critical value for this chisquare test?
ANS: 11.345
PTS: 1

OBJ: Section 13.5

23. These data provide the information for testing the hypothesis that the proportion of unacceptable is the
same for the four employees. Calculate the test statistic.
ANS: 24.02
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Metro Bus System


The management of the Metro Bus System of Houston, TX was faced with the task of improving
efficiency in terms of running on time. One of its greatest problems was breakdown of equipment.
Between 1994 and 1997, emphasis was placed on maintenance. ,o of 10,000 bus runs were taken from
the records of 1994 and 1997. The percentage of breakdowns in 1994 was 0.4 and in 1997 it was 0.04.
Use a chi-square test for equal proportions to analyze these data.
NARREND
24. What is the value of the test statistic?
ANS: 29.455
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Survey
In a survey of 100 males and 100 females at a regional university, 26 percent of the males and 18
percent of the females responded that they were offended by frequently aired television. The test
question is: Could these results indicate that the same proportions of the two samples are offended?
NARREND
25. What is the calculated value of the test statistic?
ANS: 1.864
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Biology
A biology professor claimed that the proportions of grades in his classes are the same. A sample of 100
students showed the following frequencies:

NARREND
26. Compute the value of the test statistics.
ANS: 7.90
PTS: 1

OBJ: Section 13.5

27. In a hypothesis test for the population variance, the alternate hypothesis is the population variance is
less than 17.0. The significance level to be used is 0.025 and the sample size to be taken is 25. What
table value should we use from the chi-square distribution?
ANS: 12.401
PTS: 1

OBJ: Section 13.6

28. In a hypothesis test for the population variance, the alternate hypothesis is the population variance is
greater than 17.0. The significance level to be used is 0.025 and the sample size to be taken is 25. What
table value should we use from the chi-square distribution?
ANS: 39.364
PTS: 1

OBJ: Section 13.6

NARRBEGIN: Hypotheses
In testing the hypotheses:
H0:
H1:
a random sample of 10 observations was drawn from a normal population, and the sample standard
deviation was 0.043.
NARREND
29. Compute the value of the test statistic.
ANS: 1.664
PTS: 1

OBJ: Section 13.6

COMPLETION
1. When we apply chi-square analysis to examine whether sample data could have been drawn from a
population having a specified probability distribution, we are performing ____________________
tests.
ANS:
goodness-of-fit
goodness of fit
PTS: 1

OBJ: Section 13.3

2. Under the assumption that the null hypothesis is true, we construct a table of ____________________
that are based on the probability distribution from which the sample is assumed to have been drawn.
ANS: expected frequencies
PTS: 1

OBJ: Section 13.3

3. The starting point for the chi-square test of variable independence is the ____________________.
ANS: contingency table
PTS: 1

OBJ: Section 13.4

4. When samples of size n are drawn from a normal population, the ____________________ distribution
is the sampling distribution of
.
ANS: chi-square
PTS: 1

OBJ: Section 13.7

SHORT ANSWER
1. When samples of size n are drawn from a normal population, the chi-square distribution is the
sampling distribution of = ____________________, where s2 and
are the sample and population
variances, respectively.
ANS:

PTS: 1

OBJ: Section 13.2

2. Find the chi-square value for each of the right-tail areas below, given that the degrees of freedom are 7:
A) 0.95 ____________________
B) 0.01 ____________________
C) 0.025 ____________________
D) 0.05 ____________________
ANS:
2.167; 18.475; 16.013; 14.067
PTS: 1

OBJ: Section 13.2

3. Find the chi-square value for each of the four degrees of freedom below, given that the area to the left
of a chi-square value is 0.05.
A) 2 ____________________

B) 6 ____________________
C) 10 ____________________
D) 26 ____________________
ANS:
0.103; 1.635; 3.940; 15.379
PTS: 1

OBJ: Section 13.2

NARRBEGIN: Department store


A large department store records the number of returns per day in women's dresses for reasons such as
wrong size; husband didn't like it, color, etc. The manager of the women's dresses department recalls
from her statistics class in college that the Poisson distribution might describe such events. A random
sample of 150 days is taken. The number of returns per day in the sample as well as the observed
frequencies are shown below:

NARREND
4. She tests the hypothesis that returns per day are Poisson distributed with a population mean equal to
1.90. Her significance level is 0.05. State the null and alternative hypotheses.
H0: _______________________________________________________________
H1: _______________________________________________________________
ANS:
H0: The sample was drawn from a population that is Poisson distributed with a mean equal to 1.90.;
H1: The sample was not drawn from such population.
PTS: 1

OBJ: Section 13.3

5. She tests the hypothesis that returns per day are Poisson distributed with a population mean equal to
1.90. Her significance level is 0.05. Identify the critical value.
ANS:
Critical Value2(0.05, 5) = 11.07
PTS: 1

OBJ: Section 13.3

6. She tests the hypothesis that returns per day are Poisson distributed with a population mean equal to
1.90. Her significance level is 0.05. Calculate the expected frequencies.
ANS:

Number of Returns Per Day


0
1
2
3
4
>4
PTS: 1

Expected Frequency
22.44
42.63
40.50
25.65
12.18
6.60

OBJ: Section 13.3

7. She tests the hypothesis that returns per day are Poisson distributed with a population mean equal to
1.90. Her significance level is 0.05. Determine the calculated value of the chi-square test statistic.
ANS:
Calculated Value2 = 3.172
PTS: 1

OBJ: Section 13.3

8. She tests the hypothesis that returns per day are Poisson distributed with a population mean equal to
1.90. Her significance level is 0.05. State the appropriate conclusion at the 0.05 significance level.
ANS:
Do not reject H0 No statistical evidence that these data do not come from a Poisson distribution with a
mean equal to 1.90
PTS: 1

OBJ: Section 13.3

NARRBEGIN: Stocks
One thousand stocks watched by a financial advisory company are advertised as having an average
return-on-equity (ROE) of 11.4 percent and a standard deviation of 3 percent. An inquiry is made by a
prospective client who finds that the ROE is supposed to be normally distributed for these stocks. The
prospective client obtains a list of the stocks and randomly samples 300 stocks and records the ROE.
The results are:

NARREND
9. Employing a 0.10 significance level, what is the appropriate conclusion based on the calculations from
the above data?
ANS:
Do not reject H0
PTS: 1

OBJ: Section 13.3

NARRBEGIN: Accommodations
Business travelers stay in a variety of accommodations. A set of national percentages for types of
accommodations shows their choices below. During a sluggish economy there may be changes in
business traveler accommodation patterns so a travel consultant surveyed 300 business travelers and
asked about their accommodations. These data will be used to test whether or not the present
accommodation distribution is the same as the national one.

NARREND
10. At the 0.05 significance level, what is the appropriate table value?
ANS:
Critical Value2(0.05, 3) = 7.815
PTS: 1

OBJ: Section 13.3

11. What is the conclusion?


ANS:
Do not reject H0; there is no evidence to suggest the present accommodation is different from the
national one.
PTS: 1

OBJ: Section 13.3

12. Assuming that there is only one category with an expected frequency less than five, what is the
appropriate table value for the 0.05 significance level?
ANS:
Critical Value2(0.05, 4) = 9.488
PTS: 1

OBJ: Section 13.3

NARRBEGIN: Number of sales


A salesperson makes five calls per day. A sample of 200 days gives the frequencies of sales volumes
listed below

NARREND

13. Assume the population is a binomial distribution with a probability of purchase equal to 0.50.
Compute the expected frequencies (Ej) for the number of sales by using the binomial tables. Combine
if necessary to satisfy the rules of five.
ANS:
x
0
1
2
3
4
5
TOTAL
PTS: 1

Oj
10
38
69
63
18
2
200

p(x)
.0313
.1562
.3125
.3125
.1562
.0313
1.00

Ej
6.26
31.24
62.50
62.50
31.24
6.26
200

OBJ: Section 13.3

14. Should the assumption of a binomial distribution with a probability of purchase


rejected at the 5% significance level?

equal to 0.50 be

Hypotheses: ____________________
Test statistic = ____________________
Critical Value = ____________________
Conclusion: ____________________________
ANS:
H0: The sample is from a binomial distribution with = 0.50
H1: The sample is not from a binomial distribution with = 0.50
Rejection region: reject H0 if calculated2 > 11.07 Since calculated 2 = 12.888, we reject H0;
conclude that there is statistical evidence to show that the sample is not from a binomial distribution
with = 0.50
PTS: 1

OBJ: Section 13.3

15. The number of degrees of freedom in a test of a contingency table with r rows and c columns is
_________________________.
ANS:
PTS: 1

OBJ: Section 13.4

NARRBEGIN: Large city


A large city is in the process of voting on a bond issue to build a covered sports arena. A local political
analyst wishes to determine if the level of income will impact on the decision of the voters. He takes a
sample of 350 who plan to vote in the upcoming election.

NARREND
16. State the null and alternative hypotheses.
H0: _________________________________________________________________
H1: _________________________________________________________________
ANS:
H0: Level of income and the decision of the voters on the bond issue are independent.;
H1: Level of income and the decision of the voters on the bond issue are dependent.
PTS: 1

OBJ: Section 13.4

17. What is the conclusion?


ANS:
Reject H0 and conclude that the level of income impacts the decision of voters on the bond issue.
PTS: 1

OBJ: Section 13.4

18. The personnel manager of a consumer product company asked a random sample of employees how
they felt about the work they were doing. The following table gives a breakdown of their responses by
gender. Do the data provide sufficient evidence to conclude that the level of job satisfaction is related
to gender? Conduct the test at the 0.10 level of significance.

H0: ___________________________________________________________
H1: ___________________________________________________________
Test statistic = _________________________________
Critical Value = ________________________________
Conclusion: ____________________________________
ANS:
Gender and level of job satisfaction are independent.;
Gender and level of job satisfaction are dependent.;

Rejection region reject H0 if calculated 2 > 2(0.10) = 4.605 Calculated 2 = 4.708;


Reject H0 and conclude that the level of job satisfaction is related to gender.
PTS: 1

OBJ: Section 13.4

19. A large carpet store wishes to determine if the brand of carpet purchased is related to the purchaser's
family income. As a sampling frame, they mailed a survey to people who have a store credit card. Five
hundred customers returned the survey and the results follow:

At the 5% level of significance, can you conclude that the brand of carpet purchased is related to the
purchaser's family income?
H0: ____________________________________________________________
H1: ____________________________________________________________
Test statistic = ____________________
Critical Value = ____________________
Conclusion: ____________________________
ANS:
H0: Family income and brand of carpet are independent.;
H1: Family income and brand of carpet are dependent.;
Rejection region: reject H0 if calculated 2 > 2(.05, 4) = 9.488
Calculated 2 = 27.372; we reject H0 and conclude that the brand of carpet purchased is related to the
purchasers family income.
PTS: 1

OBJ: Section 13.4

20. A sport preference poll showed the following data for men and women:

Use the 5% level of significance and test to determine whether sport preferences depend on gender.
H0: _______________________________________________________________
H1: _______________________________________________________________
Test statistic = ____________________

Critical Value = ____________________


Conclusion: _________________________
ANS:
H0: Gender and favorite sport are independent.;
H1: Gender and favorite sport are dependent.;
Rejection region: Reject H0 if calculated2 >2(.05,4) = 9.488;
Calculated 2 = 3.30; Do not reject H0; there is not enough statistical evidence to conclude that sport
preferences depend on gender.
PTS: 1

OBJ: Section 13.4

NARRBEGIN: Gifts
Three choices of free gifts are offered to 270 persons who subscribed to a new magazine. The number
choosing each gift is shown in the table below. Assume the null hypothesis that the gifts are equally
attractive to the subscribers. Use a 0.01 significance level.

NARREND
21. State the null and alternative hypotheses.
H0: __________________________________________________________
H1: __________________________________________________________
ANS:
H0: The gifts are equally attractive to the subscribers).;
H1: At least one of the values differs from the others. (Gifts are not equally attractive to the
subscribers).
PTS: 1

OBJ: Section 13.5

22. State the decision rule.


ANS:
Reject H0 if calculated chi-square > critical value = 9.21.
PTS: 1

OBJ: Section 13.5

23. What is the conclusion?


ANS:
Reject H0 and conclude that the gifts were not equally attractive to the subscribers
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Video
The owner of a video store is interested in whether or not there is a difference in the proportions of
VCR movies rented by members and non-members among movie titles. Three movies are selected and
each person who rents them is identified as a member or non-member. A total of 350 people rent these
movies and the responses are:

NARREND
24. What is the conclusion?
ANS:
Reject H0 and conclude there is a difference in the proportion of movies rented by members and nonmembers at the movie store.
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Employee
Four employees are monitored to determine whether there is any difference in the proportions of
acceptable parts produced by the employees. The sample of parts produced is given below.

NARREND
25. These data provide the information for testing the hypothesis that the proportion of unacceptable is the
same for the four employees. What is the conclusion?
ANS:
Reject H0 and conclude that there is a difference in the proportions of the production of acceptable
parts for at least one employee.
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Metro Bus System


The management of the Metro Bus System of Houston, TX was faced with the task of improving
efficiency in terms of running on time. One of its greatest problems was breakdown of equipment.
Between 1994 and 1997, emphasis was placed on maintenance. Random samples of 10,000 bus runs
were taken from the records of 1994 and 1997. The percentage of breakdowns in 1994 was 0.4 and in
1997 it was 0.04. Use a chi-square test for equal proportions to analyze these data.
NARREND
26. What are the observed frequencies of the 1994 and 1997 breakdowns?

1994: ____________________
1997: ____________________
ANS:
40; 4
PTS: 1

OBJ: Section 13.5

27. What are the expected frequencies of the 1994 and 1997 breakdowns?
1994: ____________________
1997: ____________________
ANS:
22; 22
PTS: 1

OBJ: Section 13.5

28. State the conclusion at the 0.01 significance level.


ANS:
Reject H0 and conclude that at least one of the proportions of breakdowns is not the same as the other
years.
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Survey
In a survey of 100 males and 100 females at a regional university, 26 percent of the males and 18
percent of the females responded that they were offended by frequently aired television. The test
question is: Could these results indicate that the same proportions of the two samples are offended?
NARREND
29. What are the observed frequencies of the males and females who are offended by the ads?
Males: ____________________
Females: ____________________
ANS:
26; 18
PTS: 1

OBJ: Section 13.5

30. Calculate the expected frequencies of the males and females who are offended by the ads.
Males: ____________________
Females: ____________________
ANS:
22; 22

PTS: 1

OBJ: Section 13.5

31. State the appropriate conclusion at the 0.05 significance level.


The proportions of males and females who are offended by the ads are: ____________________
ANS:
equal
PTS: 1

OBJ: Section 13.5

NARRBEGIN: Biology
A biology professor claimed that the proportions of grades in his classes are the same. A sample of 100
students showed the following frequencies:

NARREND
32. State the null and alternative hypotheses to be tested.
H0: ____________________________________________________________
H1: ____________________________________________________________
ANS:
;
At least one proportion differs from its specified value.
PTS: 1

OBJ: Section 13.5

33. State the critical value which determines the rejection region at the 5% significance level.
ANS:
Reject H0 if2 > 9.488
PTS: 1

OBJ: Section 13.5

34. Do the data provide enough evidence to support the professor's claim?
ANS:
Since 7.90 < 9.488, we fail to reject the null hypothesis. The data supports the professor's claim.
PTS: 1

OBJ: Section 13.5

35. In 2000, the student body of a state university in Michigan consists of 30% freshmen, 25%
sophomores, 27% juniors, and 18% seniors. A sample of 400 students taken from the 2000 student
body showed that there are 138 freshmen, 88 sophomores, 94 juniors, and 80 seniors. Test with 5%
significance level to determine whether the student body proportions have changed.
H0: _______________________________________________________

H1: _______________________________________________________
Test statistic = ____________________
Critical Value = ____________________
Conclusion: ___________________________
ANS:
H0:
;
H1: At least one proportion differs from its specified value.;
Rejection region: reject H0 if calculated 2 > 2(0.05, 3) = 7.815.
Since calculated 2 = 6.844, do not reject H0 and conclude that there is no statistical evidence to
suggest that the student body proportions have changed.
PTS: 1

OBJ: Section 13.5

NARRBEGIN: TV Model
Three hundred individuals were asked to view the picture quality of four different TVs and asked to
choose the one they preferred. The data is shown in the following table:
TV Model
A
B
C
D
Total

Number Who preferred


82
65
73
80
300

NARREND
36. Test the equality of proportions at the 0.05 level.
What are the null and alternative hypotheses?
ANS:
H0:
H1: At least one population proportion differs from the others.
PTS: 1

OBJ: Section 13.5

37. Test the equality of proportions at the 0.05 level the hypotheses.
Compute the test statistic.
ANS:
= 2.37
PTS: 1

OBJ: Section 13.5

38. Test the equality of proportions at the 0.05 level the hypotheses.

State the decision rule in terms of the critical value.


What is the conclusion?
ANS:
Reject the null hypothesis if
Since

> 7.815.

< 7.815, we fail to reject the null hypothesis.

PTS: 1

OBJ: Section 13.5

NARRBEGIN: Grade distribution


A professor would like to test to see if the grade distribution for male and female students are the
same. The following table shows the distribution of grades for 1450 students.
Male
Female
Total

A
124
195
319

B
192
238
430

C
212
240
452

D
87
120
207

F
15
27
42

Total
630
820
1450

D
89.9
117.1
207

F
18.2
23.8
42

Total
630
820
1450

NARREND
39. Compute the expected counts for each category.
ANS:
Male
Female
Total
PTS: 1

A
138.6
180.4
319

B
186.8
243.2
430

C
196.4
255.6
452

OBJ: Section 13.5

40. Compute the test statistic.


ANS:
= 6.36
PTS: 1
41. Using

OBJ: Section 13.5


= 0.05, state the decision rule in terms of the critical value.

ANS:
Reject the null hypothesis if
PTS: 1
42. Using
ANS:

> 9.488.

OBJ: Section 13.5


= 0.05, state the conclusion.

Since
< 9.488, we fail to reject the null hypothesis. Therefore there is no evidence to suggest that
male students have a different grade distribution than female students.
PTS: 1

OBJ: Section 13.5

43. The realtor for an exclusive, planned housing development says that house prices average $125
thousand and uniformity of prices within the development is indicated by the standard deviation of $
8 thousand. A prospective buyer wants to check on the uniformity of prices and randomly
samples 12 houses and determines the selling price. These data are: 113.0, 126.2, 134.4, 129.4, 106.6,
117.4, 123.5, 121.0, 109.6, 119.4, 126.6, and 119.6. Use these data to test the hypothesis:
H0:
(realtor correct)
H1: (realtor incorrect)
The buyer assumes selling prices are normally distributed and employs a 0.05 significance level. Is the
statement by the realtor correct?
Test statistic = ____________________
Critical Value = ____________________
Conclusion: _____________________
Interpretation: _____________________________________
ANS:
Calculated value = 11.426; Critical value = 19.675; Do not reject H 0; The realtor's statement is
supported by this data.
PTS: 1

OBJ: Section 13.6

44. In preparing a confidence level for a population variance, the size of the sample is 12, and the level of
confidence is 0.90. What are the appropriate table values for this interval?
____________________ and ____________________
ANS:
4.575; 19.675
PTS: 1

OBJ: Section 13.6

45. In preparing a confidence level for a population variance, the size of the sample is 13, and the level of
confidence is 0.90. What are the appropriate table values for this interval?
____________________ and ____________________
ANS:
5.226; 21.026
PTS: 1

OBJ: Section 13.6

46. In preparing a confidence level for a population variance, the size of the sample is 13 and the level of
confidence is 0.95. What are the appropriate table values for this interval?

____________________ and ____________________


ANS:
4.404; 23.337
PTS: 1

OBJ: Section 13.6

NARRBEGIN: Hypotheses
In testing the hypotheses:
H0:
H1:
a random sample of 10 observations was drawn from a normal population, and the sample standard
deviation was 0.043.
NARREND
47. Determine the rejection region at the 5% significance level.
ANS:
Reject H0 if calculated chi-square < 2.7 or if calculated chi-square > 19.023
PTS: 1

OBJ: Section 13.6

48. What is the conclusion?


ANS:
Reject H0 We can infer that the population variance differs significantly from 0.01
PTS: 1

OBJ: Section 13.6

49. A sample of size 20 is used to obtain the following statistics:


and
conclude at the 1% significance level that the population variance is less than 100?

Can we

Hypotheses:
Test statistic = ____________________
Critical Value = ____________________
Conclusion: _________________________
Interpretation: __________________________________________________
ANS:
H0: 2 100
H1: 2 < 100
Rejection region: if2 < 7.633 Calculated 2 = 13.916; Do not reject H0; There is not enough evidence
to conclude that the population variance is less than 100.

PTS: 1

OBJ: Section 13.6

50. A sample of size 20 is used to obtain the following statistics:


population variance with 98% confidence.

and

Estimate the

Lower value = ____________________


Upper value = ____________________
ANS:
38.450; 182.307
PTS: 1

OBJ: Section 13.6

51. A random sample of 5 observations was drawn from a normal population. These were: 18, 16, 10, 13,
and 23. Test the hypotheses:
H0:
H1:
at the 10% significance level.
Test statistic = ____________________
Critical Value = ____________________
Conclusion: ____________________
Interpretation: _________________________________________________
ANS:
Rejection region: Reject H0 if2 > 7.779; Calculated 2 = 4.90; Do not reject H0; There is not enough
evidence to conclude that the population variance is greater than 20.
PTS: 1

OBJ: Section 13.6

52. A random sample of 5 observations was drawn from a normal population. These were: 18, 16, 10, 13,
and 23. Estimate the population variance with 90% confidence.
Lower value = ____________________
Upper value = ____________________
ANS:
10.329; 137.888
PTS: 1

OBJ: Section 13.6

53. In order to examine whether a sample could have come from a given type of population distribution
(e.g., the normal distribution), chi-square analysis involves the comparison of a table of
______________________________ Oij with a table of ______________________________ Eij that
has been constructed under the assumption that the null hypothesis is true.

ANS:
observed frequencies; expected frequencies
PTS: 1

OBJ: Section 13.6

ESSAY
1. Using the chi-square distribution, along with sample data and frequency counts, what will we be able
to examine?
ANS:
We will be able to examine: 1) whether a sample could have come from a given type of population
distribution. 2) whether two nominal variables could be independent of each other. 3) whether two or
more independent samples could have the same population proportion.
PTS: 1

OBJ: Section 13.1

2. In what way are the chi-square and normal distributions related?


ANS:
The chi-square distribution is skewed positively, but as its degrees of freedom increase, it approaches
the shape of the normal distribution.
PTS: 1

OBJ: Section 13.2

3. In carrying out a chi-square goodness-of-fit test, what are the "k" and "m" terms in the "df = k - 1 - m"
expression and why is each term present?
ANS:
Given k is the number of categories or groups in the, and m is the number of population parameters
that must be estimated from sample data in order to carry out the test. "k-1" cells to determine the
count in the cell. In addition, each population parameter that must be estimated also reduces our
degrees of freedom.
PTS: 1

OBJ: Section 13.3

4. What is the rationale for df = (r - 1)(k - 1) in conducting a chi-square test of independence for a
contingency table with r rows and k columns?
ANS:
The rationale for df = (r-1) (k-1) is that this quantity represents the number of cell frequencies that are
free to vary. Given that we know the sample size (the total number of observations in the table), we
need only know the contents of (r-1) rows and (k-1) columns in order to completely fill in the cells
within the r x k table.
PTS: 1

OBJ: Section 13.4