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TEST BANK STATS

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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

2. True or False

A Type II error is the probability of rejecting a true null hypothesis.

ANS: F

PTS: 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

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

5. True or False

A non-directional claim or assertion states that a population parameter is equal to some quantity.

ANS: T

PTS: 1

6. True or False

Directional assertions lead to what is called a two-tail test.

ANS: F

PTS: 1

7. True or False

A non-directional assertion involves what are called one-tail tests.

ANS: F

PTS: 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

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

ANS: F

PTS: 1

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

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

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

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

The p-value is the lowest possible level of significance at which the alternative hypothesis can be

rejected.

ANS: F

PTS: 1

If the p-value for a particular hypothesis test is 0.03 with

hypothesis.

ANS: F

PTS: 1

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

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

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

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

ANS: F

PTS: 1

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

ANS: F

PTS: 1

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

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

ANS: F

PTS: 1

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

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

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

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

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

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

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

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

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

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

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.

ANS: B

PTS: 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

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

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

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

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

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

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

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

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

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

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

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

= 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

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

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

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

= 50 vs. H1:

50.

PTS: 1

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?

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

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 right of the upper confidence limit.

falls between the lower and upper confidence limits.

falls in the rejection region.

ANS: C

PTS: 1

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

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

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

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

NUMERIC RESPONSE

1. H0:

, H1:

Find

ANS: 2.575

; n > 30 and

= 0.01

PTS: 1

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

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

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

ANS: 0.0141

PTS: 1

6. For the critical z, identify the sample proportion that this z-value represents.

p = ____________________

ANS: 0.0428

PTS: 1

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

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

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

ANS: 0.3465

PTS: 1

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

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

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

ANS:

critical value

critical values

PTS: 1

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

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

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

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

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

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

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

ANS:

H0: 15, H1: 15

PTS: 1

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

Appropriate test: ____________________

Test statistic = ____________________

Conclusion: ____________________

ANS:

z-test; -1.267; Do not reject H0

PTS: 1

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

ANS:

If -1.64 z then fail to reject H0. If z orz , then reject H0

PTS: 1

ANS:

PTS: 1

ANS:

Since the p-value equals 0.003, which is less than

PTS: 1

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

ANS:

If z -1.64then fail to reject H0. If z , then reject H0

PTS: 1

ANS:

Since z = -0.735, we fail to reject H0.

PTS: 1

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 .

Upper value = ____________________

ANS:

3.43; 3.57

PTS: 1

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

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

ANS:

If z then fail to reject H0. If z , then reject H0

PTS: 1

ANS:

Since z = 2.09, we reject H0.

PTS: 1

ANS:

Since the p-value equals 0.0183, which is less than

PTS: 1

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

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

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:

, H1:

; n > 30 and

= 0.10.

ANS:

If z -1.28 fail to reject H0. If z < -1.28, then reject H0

PTS: 1

27. H0:

, H1:

; n > 30 and

= 0.01

ANS:

If z 2.575 fail to reject H0. If z > 2.575 reject H0.

PTS: 1

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

ANS:

If -1.740 t 1.740then fail to reject H0. If t 1.740ort 1.740, then reject H0.

PTS: 1

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

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

ANS:

If z 1.645then fail to reject H0. If z 1.645, then reject H0

PTS: 1

33. What is the p-value?

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

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

= 0.01.

ANS:

Reject H0 if z > 2.33, fail to reject H0 if z

PTS: 1

2.33.

Appropriate test: ____________________

Test statistic = ____________________

ANS:

z-test; 2.504

PTS: 1

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

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

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

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

ANS:

Reject H0 if z < - 1.645; fail to reject H0 if z -1.645

PTS: 1

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

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

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

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

H0:

= 20, H1:

> 20

= 0.04

p-value = ____________________

Interpretation: ____________________

ANS:

0.1736; Do not reject H0

PTS: 1

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

H0:

= 20, H1:

< 20

= 0.025

p-value = ____________________

Interpretation: ____________________

ANS:

0.0094; Reject H0

PTS: 1

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

H0:

= 40, H1:

40

= 0.10

p-value = ____________________

Interpretation: ____________________

ANS:

0.0344; Reject H0

PTS: 1

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

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

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

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

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

= 85 versus H1:

85?

ANS:

Do not reject H0

PTS: 1

ANS:

Reject H0

125?

PTS: 1

= 65 versus H1:

100?

ANS:

Do not reject H0

PTS: 1

65?

ANS:

Reject H0

PTS: 1

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.

____________________ to ____________________

ANS:

346.08; 353.92

PTS: 1

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

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

Appropriate test: ____________________

Conclusion: __________________________

ANS:

t-test; 1.922; Reject H0

PTS: 1

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

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

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

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

ANS:

Reject H0 if t > 1.796

PTS: 1

ANS:

Reject H0. The average sermon length is more than twenty minutes.

PTS: 1

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

ANS:

Reject H0 if t < -2.539

PTS: 1

ANS:

Do not reject H0. The bank should not ask for additional collateral.

PTS: 1

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

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

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

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

ANS:

If t then fail to reject H0. If t , then reject H0.

PTS: 1

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

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

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

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:

Appropriate test:____________________

Test statistic = ____________________

Conclusion: ____________________

ANS:

t-test; 3.403; Reject H0

PTS: 1

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

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:

= 0.10, H1:

0.10;

Appropriate test: ____________________

= 0.02

ANS:

z-test; 1.50

PTS: 1

80. n = 225; p = 0.13; H0:

= 0.10, H1:

0.10;

= 0.02

ANS:

Do not reject H0; there is not enough statistical evidence to conclude that the alternative hypothesis is

true

PTS: 1

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

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

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

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

ANS:

rejecting a false null hypothesis.

PTS: 1

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

ANS:

None; Decrease

PTS: 1

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

ANS:

Reject H0 if > 11.974

PTS: 1

89. What is the probability of making a Type II error if the true mean is 14?

ANS:

= 0.0455

PTS: 1

ANS:

Power = 1 - = 0.9545

PTS: 1

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

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

ANS:

An alternative hypothesis is an assertion that holds if the null hypothesis is false.

PTS: 1

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

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

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

ANS:

Equation for calculating test statistic, z-test for sample proportion.

PTS: 1

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

An example of dependent samples occurs when subjects are randomly assigned to the experimental

and control groups of an experiment.

ANS: F

PTS: 1

A typical example of independent samples occurs with before-and-after measurements for the same

individuals or test units.

ANS: F

PTS: 1

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

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

z = ____________________

ANS: 2.526

PTS: 1

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

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

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

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

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

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

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

2. We say samples are ____________________ when the selection process for one is related to the

selection process for the other.

ANS: dependent

PTS: 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

both n1 and n2 are 30.

ANS: z-test

PTS: 1

ANS: matched pairs

PTS: 1

6. A test that we can use to determine whether two population variances are equal is the

____________________.

ANS: F-test

PTS: 1

7. When comparing the means of two independent samples, the ____________________ is applicable

whenever the population standard deviations are unknown.

ANS: t-test

PTS: 1

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

Appropriate test: ____________________

Test statistic = ____________________

ANS:

t-test; 1.71

PTS: 1

ANS:

Reject H0 if t < -3.169 or if t > 3.169.

PTS: 1

ANS:

Do not reject H0

PTS: 1

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

Appropriate test: ____________________

Test statistic = ____________________

ANS:

t-test; -0.446

PTS: 1

ANS:

Fail to reject H0 if t

PTS: 1

ANS:

Do not reject H0

PTS: 1

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

Appropriate test: ____________________

Test statistic = ____________________

ANS:

t-test; -15.95

PTS: 1

ANS:

Reject H0 if t < -2.552; Fail to reject H0 if t

PTS: 1

12. State the conclusion.

ANS:

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

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

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

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

16. Assume unequal variances. How many degrees of freedom are associated with this test?

ANS:

d.f. = 19.92, rounded to 20.

PTS: 1

ANS:

Reject

PTS: 1

if t

2.528.

ANS:

regular batteries.

PTS: 1

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

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

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

Estimate for difference: 1.32000

95% CI for difference: (-0.46533, 3.10533)

T-Test of difference = 0 (vs not =): T-Value = 1.61

PTS: 1

P-Value = 0.133

DF = 12

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

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

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

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

ANS:

Do not reject H0

PTS: 1

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

ANS:

Fail to reject H0 if -2.24 z 2.24; Reject H0 if z orif z

PTS: 1

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

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

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?

Test statistic = ____________________

ANS:

z-test; -3.86

PTS: 1

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

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

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

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

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

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.

____________________ to ____________________

ANS:

-6.00; 3.96

PTS: 1

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

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

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

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

ANS:

If -1.96 zfailto reject H0; If z < -1.96 or if z > 1.96, reject H0;

PTS: 1

ANS:

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

PTS: 1

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

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?

Test statistic = ____________________

ANS:

z-test; 1.39

PTS: 1

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

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

Appropriate test: ____________________

Test statistic = ____________________

ANS:

z-test; 0.373

PTS: 1

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

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

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

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)

(Population 2)

212

236

250

243

250

235

230

225

220

215

228

256

264

248

255

239

218

239

NARREND

50. Use

ANS:

H0: d

H1: d < 0

PTS: 1

51. Use

ANS:

Reject

PTS: 1

52. Use

if t

-1.86.

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

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

ANS:

0.957 0.387, 1.527)

PTS: 1

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

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

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

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

ANS:

If t 1.812, fail to reject H0. If t > 1.812, reject H0.

PTS: 1

60. Use

ANS:

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

PTS: 1

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

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

ANS:

Reject

PTS: 1

63. Use

if t

-2.718.

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

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

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,,

PTS: 1

65. Use

ANS:

If -2.57 z2.57failto reject H0; If z < -2.57 or if z > 2.57, reject H0;

PTS: 1

66. Use

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

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

ANS:

Setting

PTS: 1

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

229

180

Sample Size

850

775

NARREND

69. Use

ANS:

Reject

PTS: 1

70. Use

if z

1.64.

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

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

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

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

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

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

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

Appropriate test: ____________________

Test statistic = ____________________

ANS:

z-test; 2.13

PTS: 1

ANS:

Fail to reject H0 if z

PTS: 1

ANS:

Reject H0 The sample evidence suggests that ownership of VCRs is higher for households on a cable

system.

PTS: 1

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

Appropriate test: ____________________

Test statistic = ____________________

ANS:

z test; z = -2.472

PTS: 1

ANS:

Fail to reject H0 if z

PTS: 1

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

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

ANS:

Fail to reject H0 if z

PTS: 1

Appropriate test: ____________________

Test statistic = ____________________

ANS:

z-test; -1.136

PTS: 1

ANS:

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

PTS: 1

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

Appropriate test: ____________________

Test statistic = ______________________

ANS:

z-test; 2.35

PTS: 1

ANS:

Reject H0 There is enough evidence to conclude that there is a significant improvement in the quality

of the steel.

PTS: 1

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

Politician

348

290

Sample Size

700

650

NARREND

91. Use

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

Use

ANS:

Setting

= the proportion of home ownership in Delaware and

ownership in the nation,,

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

PTS: 1

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

ANS:

0.0442 0.0915 = (-0.0473, 0.1357)

PTS: 1

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

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

_________________________.

ANS:

PTS: 1

ESSAY

1. When testing dependent samples, we test for only one variable. What is it?

ANS:

d = Difference between measurements

PTS: 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

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

2. True or False

In ANOVA, the variation between groups represents random error from the sampling process.

ANS: F

PTS: 1

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

4. True or False

The ANOVA model requires that the sample size for each treatment be equal.

ANS: F

PTS: 1

5. True or False

An assumption of the ANOVA model is that the population distributions are normal.

ANS: T

PTS: 1

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

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

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

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

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

ANS: T

PTS: 1

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

ANS: T

PTS: 1

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

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

Randomized block ANOVA examines interactions between different levels of the independent

variables.

ANS: F

PTS: 1

In ANOVA, the independent variable must be quantitative.

ANS: F

PTS: 1

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

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

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

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

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.

b.

c.

d.

e.

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

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

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

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

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

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

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.

randomized block design.

two-way analysis of variance.

simple regression model.

chi-square test for independence.

ANS: A

PTS: 1

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

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

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

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

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

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

14. One-way ANOVA is performed on independent samples taken from three normally distributed

populations with equal variances. The following summary statistics were calculated:

a. 50.0.

b. 52.0.

c. 52.3.

d. 53.0.

ANS: C

PTS: 1

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

16. One-way ANOVA is applied to independent samples taken from three normally distributed populations

with equal variances. The following summary statistics were calculated:

a. 137.

b. 460.

c. 154.

d. 60.

ANS: A

PTS: 1

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

18. One-way ANOVA is applied to independent samples taken from three normally distributed populations

with equal variances. The following summary statistics were calculated:

a. 460.

b. 688.

c. 560.

d. 183.

ANS: C

PTS: 1

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

a. 13.

b. 5.

c. 3.

d. 33.

ANS: C

PTS: 1

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

a. 25.

b. 29.

c. 30.

d. 32.

ANS: C

PTS: 1

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Compute the appropriate table value to use as the critical value at the 2.5% significance level.

ANS: 4.56

PTS: 1

ANS: 151.67

PTS: 1

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

ANS: 2

PTS: 1

ANS: 1636.0

PTS: 1

ANS: 6608.5

PTS: 1

ANS: 4972.5

PTS: 1

ANS: 331.5

PTS: 1

10. Compute the appropriate table value to use as the critical value at the 5% significance level.

ANS: 3.68

PTS: 1

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

ANS: 1091.6

PTS: 1

ANS: 1021.6

PTS: 1

ANS: 12

PTS: 1

ANS: 2

PTS: 1

ANS: 85.13

PTS: 1

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

ANS: 3.89

PTS: 1

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

ANS: 74

PTS: 1

ANS: 12.667

PTS: 1

ANS: 448.250

PTS: 1

ANS: 120.528

PTS: 1

ANS: 37

PTS: 1

ANS: 2.111

PTS: 1

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

26. What is the computed value for Factor A (assembly method) sum of squares (SSA)?

ANS: 50

PTS: 1

27. What is the computed value for Factor B (music) sum of squares (SSB)?

ANS: 338

PTS: 1

28. What is the computed value for the error sum of squares (SSE)?

ANS: 26

PTS: 1

29. What is the computed value for the total sum of squares (SST)?

ANS: 416

PTS: 1

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

31. What is the computed value for Factor A (assembly method) mean square (MSA)?

ANS: 50

PTS: 1

32. What is the computed value for Factor B (music) mean square (MSB)?

ANS: 338

PTS: 1

33. What is the computed value for the mean square for the interaction between Factor A and Factor B

(MSAB)?

ANS: 2

PTS: 1

34. What is the computed value for the error mean square (MSE)?

ANS: 6.5

PTS: 1

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

36. What is the computed value for Factor A (assembly method) sum of squares (SSA)?

ANS: 72

PTS: 1

37. What is the computed value for Factor B (lighting) sum of squares (SSB)?

ANS: 32

PTS: 1

38. What is the computed value for the error sum of squares (SSE)?

ANS: 258

PTS: 1

39. What is the computed value for the total sum of squares (SST)?

ANS: 364

PTS: 1

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

NARREND

41. Compute the test statistic for the main effect for Factor A.

ANS: 13.58

PTS: 1

42. Compute the test statistic for the main effect for Factor B.

ANS: 4.52

PTS: 1

43. Compute the test statistic for the interaction effect between Factor A and Factor B.

ANS: 2.83

PTS: 1

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

ANS: 3.40

PTS: 1

45. What is the critical F for the 0.05 level for the main effects test, Factor B?

ANS: 3.01

PTS: 1

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

COMPLETION

1. A(n) ____________________ variable is the variable for which a value is measured or observed.

ANS: dependent

PTS: 1

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

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

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

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

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

7. When there are only two treatments, the one-way ANOVA is equivalent to the nondirectional

______________________________ t-test.

ANS: pooled-variances

PTS: 1

8. When there are just two treatments, the randomized block design is equivalent to the nondirectional

______________________________ t-test.

ANS: dependent-samples

PTS: 1

____________________ or more levels.

ANS:

two; two

2, 2

PTS: 1

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

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

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

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

Test statistic = ____________________ = ____________________

ANS:

F; 3.431

PTS: 1

ANS:

Do not reject H0

PTS: 1

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

Test statistic = ____________________ = ____________________

ANS:

F; 2.468

PTS: 1

ANS:

Do not reject H0

PTS: 1

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:

H1: Not all of the mean mpg is the same for the three companies An

research organization. Is there any difference in mean mpg?

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

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

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

= 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

= 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

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

Test statistic = ____________________ = ____________________

ANS:

F; 0.411

PTS: 1

ANS:

Do not reject H0

PTS: 1

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

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.

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

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

PTS: 1

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

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

the courses as the blocking variable.

ANS:

SSB = 56.33

PTS: 1

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

the courses as the blocking variable.

Calculate the error sum of squares and the error mean square.

ANS:

SSE = 41.17

MSE = 6.86

PTS: 1

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

the courses as the blocking variable.

Calculate the treatment sum of squares and the treatment mean square.

ANS:

SSTR = 100.17

MSTR = 50.08

PTS: 1

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

the courses as the blocking variable.

ANS:

F = 7.300

PTS: 1

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

the courses as the blocking variable.

ANS:

If F > 5.14, we reject the null hypothesis. If F

PTS: 1

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

the courses as the blocking variable.

ANS:

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

PTS: 1

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

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

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

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

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

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

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

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

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

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

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

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.

ANS:

F = 3.197

PTS: 1

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

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

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

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

= 0.05.)

Critical Value = ____________________

Conclusion: ____________________

Interpretation: _______________________________________

B) Test the effectiveness of the blocking variable. (Use

= 0.05.)

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

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

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

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

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

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

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

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

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

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

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

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

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

ANS:

A designed experiment is an experiment in which treatments are randomly assigned to the participants

or test units.

PTS: 1

3. What is a factor?

ANS:

A factor is an independent variable.

PTS: 1

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

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

ANS:

Blocking allows for a better comparison of the effect of the treatments by reducing the amount of error

variation.

PTS: 1

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

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

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

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

ANS:

We assume the r observations in each cell have been drawn from normally distributed populations with

equal variances.

PTS: 1

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

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

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

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

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

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

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

5. True or False

The goodness-of-fit chi-square test is a two-tailed test.

ANS: F

PTS: 1

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

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

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

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

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

ANS: T

PTS: 1

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

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

Although the chi-square distribution is continuous, it is used to analyze discrete (counts) data.

ANS: T

14. True or False

PTS: 1

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

a. two qualitative variables.

b. two quantitative variables.

c. three or more qualitative variables.

d. three or more quantitative variables.

ANS: A

PTS: 1

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

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

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

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

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.

e. 30(2.24) / 16.791 and 30(2.24) / 46.979.

ANS: B

PTS: 1

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

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

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

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

4. What is the appropriate table value for the .10 significance level?

ANS: 6.251

PTS: 1

ANS: 3.732

PTS: 1

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

ANS: 192

PTS: 1

ANS: 6.851

PTS: 1

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

ANS: 1.97

PTS: 1

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

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

13. What is the expected frequency of the $50,000 and over and No categories?

ANS: 10.29

PTS: 1

ANS: 13.77

PTS: 1

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

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

17. What is the expected frequency of the cell Rambo and Non-member?

ANS: 70

PTS: 1

ANS: 35.89

PTS: 1

ANS: 9.21

PTS: 1

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

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

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

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

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

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

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

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

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

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

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

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

3. The starting point for the chi-square test of variable independence is the ____________________.

ANS: contingency table

PTS: 1

4. When samples of size n are drawn from a normal population, the ____________________ distribution

is the sampling distribution of

.

ANS: chi-square

PTS: 1

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

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

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

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

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

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:

0

1

2

3

4

>4

PTS: 1

Expected Frequency

22.44

42.63

40.50

25.65

12.18

6.60

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

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

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

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

ANS:

Do not reject H0; there is no evidence to suggest the present accommodation is different from the

national one.

PTS: 1

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

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

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

15. The number of degrees of freedom in a test of a contingency table with r rows and c columns is

_________________________.

ANS:

PTS: 1

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

ANS:

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

PTS: 1

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.;

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

PTS: 1

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

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 = ____________________

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

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

ANS:

Reject H0 if calculated chi-square > critical value = 9.21.

PTS: 1

ANS:

Reject H0 and conclude that the gifts were not equally attractive to the subscribers

PTS: 1

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

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

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

27. What are the expected frequencies of the 1994 and 1997 breakdowns?

1994: ____________________

1997: ____________________

ANS:

22; 22

PTS: 1

ANS:

Reject H0 and conclude that at least one of the proportions of breakdowns is not the same as the other

years.

PTS: 1

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

30. Calculate the expected frequencies of the males and females who are offended by the ads.

Males: ____________________

Females: ____________________

ANS:

22; 22

PTS: 1

The proportions of males and females who are offended by the ads are: ____________________

ANS:

equal

PTS: 1

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

33. State the critical value which determines the rejection region at the 5% significance level.

ANS:

Reject H0 if2 > 9.488

PTS: 1

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

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

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

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

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

Compute the test statistic.

ANS:

= 2.37

PTS: 1

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

What is the conclusion?

ANS:

Reject the null hypothesis if

Since

> 7.815.

PTS: 1

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

ANS:

= 6.36

PTS: 1

41. Using

= 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.

= 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

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

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

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

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?

ANS:

4.404; 23.337

PTS: 1

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

ANS:

Reject H0 We can infer that the population variance differs significantly from 0.01

PTS: 1

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

population variance with 98% confidence.

and

Estimate the

Upper value = ____________________

ANS:

38.450; 182.307

PTS: 1

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

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

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

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

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

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

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

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