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True/False

1. If the null hypothesis states that there is no difference between the mean income of males and the

mean income of females, then the test is one-tailed.

Answer: False

Difficulty: Easy

Goal: 1

AACSB: MD

2. If the null hypothesis states that there is no difference between the mean net income retail stores in

Chicago and New York City, then the test is two-tailed.

Answer: True

Difficulty: Easy

Goal: 1

3. If we are testing for the difference between two population means, it is assumed that the sample

observations from one population are independent of the sample observations from the other population.

Answer: True

Difficulty: Easy

Goal: 1

4. If we are testing for the difference between two population proportions, it is assumed that the two

populations are approximately normal and have equal variances.

Answer: False

Difficulty: Easy

Goal: 2

5. If we are testing for the difference between two population proportions, it is assumed that the two

samples are large enough that the binomial distribution can be approximated by the normal distribution.

Answer: True

Difficulty: Easy

Goal: 2

AACSB: AS

6. When sample sizes are less than 30, a test for the differences between two population means has n1

degrees of freedom.

Answer: False

Difficulty: Easy

Goal: 1

7. If we are testing for the difference between two population means and assume that the two populations

have equal but unknown standard deviations, then the test has (n1 + n2 2) degrees of freedom.

Answer: True

Difficulty: Easy

Goal: 1

AACSB: AS

8. If we are testing for the difference between two population means and assume that the two populations

have equal but unknown standard deviations, the variances are pooled to compute the best estimated

variance.

Answer: True

Difficulty: Easy

Goal: 1

11

9. If we are testing for the difference between two population means and assume that the two populations

have unequal and unknown standard deviations, the degrees of freedom for the test statistic must be

computed or calculated.

Answer: True

Difficulty: Easy

Goal: 1

10. If we are testing for the difference between two population means and assume that the two

populations have unequal and unknown standard deviations, the variances are pooled to compute the best

estimated variance.

Answer: False

Difficulty: Easy

Goal: 1

AACSB: REF

11. If samples taken from two populations are not independent, then a test of paired differences is

applied.

Answer: True

Difficulty: Easy

Goal: 3

Answer: False

Difficulty: Easy

Goal: 3

13. When testing for the difference between two dependent samples, n1 = n2.

Answer: True

Difficulty: Easy

Goal: 3

14. We use the pooled estimate of the proportion in testing the difference between two population

proportions.

Answer: True

Difficulty: Medium

Goal: 2

15. The pooled estimate of the proportion is found by dividing the total number of samples by the total

number of successes.

Answer: False

Difficulty: Medium

Goal: 2

16. The paired t test is especially appropriate when the sample sizes of two groups are the same.

Answer: False

Difficulty: Easy

Goal: 3

17. A committee studying employer-employee relations proposed that each employee would rate his or

her immediate supervisor and in turn the supervisor would rate each employee. To find reactions

regarding the proposal, 120 office personnel and 160 plant personnel were selected at random. Seventyeight of the office personnel and 90 of the plant personnel were in favor of the proposal. Computed z =

1.48. At the 0.05 level, it was concluded that there is sufficient evidence to support the belief that the

proportion of office personnel in favor of the proposal is greater than that of the plant personnel.

Answer: False

Difficulty: Hard

Goal: 2

179

18. A statistics professor wants to compare grades of two different groups of students taking the same

course in two different sections. This is an example of a paired sample.

Answer: False

Difficulty: Easy

Goal: 4

19. In one class, a statistics professor wants to compare grades on the first and second exams. This is an

example of paired or dependent observations.

Answer: True

Difficulty: Easy

Goal: 4

Multiple Choice

20. If the decision is to reject the null hypothesis of no difference between two population parameters, at

the 5% level of significance, what are examples of the alternate hypothesis and rejection region?

A) 1 2 ; z 1.65 and z - 1.65

B) 1 2 ; z 1.96 and z - 1.96

C) 1 2 ; z 1.65

D) 1 2 ; z 1.96

Answer: B

Difficulty: Hard

Goal: 2

21. A poll of 400 people from Dobbs Ferry showed 250 preferred chocolate raspberry coffee while 170

out of 350 in Irvington preferred the same flavor. To test the hypothesis that there is no difference in

preferences in the two villages, what is the alternate hypothesis?

A) 1 2 .

B) 1 2 .

C) 1 2 .

D) 1 2 .

Answer: D

Difficulty: Medium

Goal: 2

22. If the null hypothesis that two means are equal is true, where will 97% of the computed z-values lie

between?

A) 2.58

B) 2.33

C) 2.17

D) 2.07

Answer: C

Difficulty: Medium

Goal: 1

AACSB: AS

180

A) pc

B) z

C)

D) n

Answer: A

Difficulty: Medium

Goal: 2

24. Suppose we are testing the difference between two proportions at the 0.05 level of significance. If

the computed z is 1.07, what is our decision?

A) Reject the null hypothesis

B) Do not reject the null hypothesis

C) Take a larger sample

D) Reserve judgment

Answer: B

Difficulty: Medium

Goal: 2

AACSB: AS

25. The net weights of a sample of bottles filled by a machine manufactured by Edne, and the net weights

of a sample filled by a similar machine manufactured by Orno, Inc., are (in grams):

Edne: 5, 8, 7, 6, 9 and 7

Orno: 8, 10, 7, 11, 9, 12, 14 and 9

Testing the claim at the 0.05 level that the mean weight of the bottles filled by the Orno machine is

greater than the mean weight of the bottles filled by the Edne machine, what is the critical value? Assume

equal standard deviations for both samples.

A) 2.179

B) 2.145

C) 1.782

D) 1.761

Answer: C

Difficulty: Hard

Goal: 1

26. A hypothesis will test that two population means are equal. A sample of 10 with a standard deviation

of 3 is selected from the first population and a sample of 15 with a standard deviation of 8 from the

second population. The standard deviations are not equal. Testing the claim at the 0.01 level, what is the

critical value? Assume unequal standard deviations.

A) 2.845

B) 2.787

C) 2.807

D) 2.977

Answer: A

Difficulty: Hard

Goal: 1

181

27. Which of the following conditions must be met to conduct a test for the difference in two sample

means?

A) Data must be at least of interval scale

B) Populations must be normal

C) Variances in the two populations must be equal

D) A and B correct

E) A, B, and C are correct

Answer: D

Difficulty: Medium

Goal: 1

28. When is it appropriate to use the paired difference t-test?

A) Four samples are compared at once

B) Any two samples are compared

C) Two independent samples are compared

D) Two dependent samples are compared

Answer: D

Difficulty: Medium

Goal: 3

29. Using two independent samples, two population means are compared to determine if a difference

exists. The population standard deviations are equal. The number in the first sample is fifteen and the

number in the second sample is twelve. How many degrees of freedom are associated with the critical

value?

A) 24

B) 25

C) 26

D) 27

Answer: B

Difficulty: Medium

Goal: 1

30. Administering the same test to a group of 15 students and a second group of 15 students to see which

group scores higher is an example of

A) a one sample test of means.

B) a two sample test of means.

C) a paired t-test.

D) a test of proportions.

Answer: B

Difficulty: Medium

Goal: 1

AACSB: AS

31. What is the critical value for a one-tailed hypothesis test in which a null hypothesis is tested at the 5%

level of significance based on two samples, both sample sizes are 13? Assume the population standard

deviations are equal.

A) 1.708

B) 1.711

C) 2.060

D) 2.064

Answer: B

Difficulty: Medium

Goal: 1

182

32. What is the critical value for a one-tailed hypothesis test in which a null hypothesis is tested at the 5%

level of significance based on two samples, both sample sizes are 13? The standard deviations for the

samples are 5 and 7. Assume the population standard deviations are unequal.

A) 2.064

B) 1.711

C) 2.074

D) 1.717

Answer: D

Difficulty: Hard

Goal: 1

33. If two samples are used in a hypothesis test for which the combined degrees of freedom is 24, which

one of the following is NOT true about the two sample sizes? Assume the population standard deviations

are equal.

A) Sample A = 11; sample B = 13

B) Sample A = 12; sample B = 14

C) Sample A = 13; sample B = 13

D) Sample A = 10; sample B = 16

E) Cannot determine from the above information

Answer: A

Difficulty: Hard

Goal: 1

34. If two samples, one of size 14 and the second of size 13, are used to test the difference between

population means, how many degrees of freedom are used to find the critical value? Assume the

population standard deviations are equal.

A) 27

B) 26

C) 25

D) 14

E) 13

Answer: C

Difficulty: Hard

Goal: 1

35. 20 randomly selected statistics students were given 15 multiple-choice questions and 15 open-ended

questions all on the same material. The professor was interested in determining which type of questions

the students scored higher. This experiment is an example of

A) a one sample test of means.

B) a two sample test of means.

C) a paired t-test.

D) a test of proportions.

Answer: C

Difficulty: Medium

Goal: 3

Of 250 adults who tried a new multi-grain cereal, Wow!, 187 rated it excellent; of 100 children

sampled, 66 rated it excellent.

183

36. Using the 0.1 significance level and the alternate hypothesis 1 not equal to 2, what is the null

hypothesis?

A) 1 2 .

B) 1 2 .

C) 1 2 .

D) None of the above

Answer: C

Difficulty: Medium

Goal: 2

A) z-statistic

B) Right one-tailed test

C) Left one-tailed test

D) Two-tailed test

Answer: A

Difficulty: Medium

Goal: 2

A national manufacturer of ball bearings is experimenting with two different processes for producing

precision ball bearings. It is important that the diameters be as close as possible to an industry standard.

The output from each process is sampled and the average error from the industry standard is calculated.

The results are presented below.

M ean

S ta n d a rd D e v ia tio n

S a m p le S iz e

P ro c e ss A

0 .0 0 2 m m

0 .0 0 0 1 m m

12

P ro c e ss B

0 .0 0 2 6 m m

0 .0 0 0 1 2 m m

14

The researcher is interested in determining whether there is evidence that the two processes yield different

average errors. Assume that the population standard deviations are equal.

A) A B .

B) A B .

C) A B .

D) A B .

Answer: A

Difficulty: Medium

Goal: 1

184

A) A B .

B) A B .

C) A B .

D) A B .

Answer: B

Difficulty: Medium

Goal: 1

A) 10

B) 13

C) 26

D) 24

Answer: D

Difficulty: Medium

Goal: 1

A) +2.779

B) 2.492

C) 1.711

D) 2.797

Answer: D

Difficulty: Medium

Goal: 1

42. What is the computed value of t?

A) +2.797

B) 2.797

C) 13.70

D) +13.70

Answer: C

Difficulty: Hard

Goal: 1

43. What is the decision at the 1% level of significance?

A) Reject the null hypothesis and conclude the means are different.

B) Reject the null hypothesis and conclude the means are the same.

C) Fail to reject the null hypothesis and conclude the means are the same.

D) Fail to reject the null hypothesis and conclude the means are different.

Answer: A

Difficulty: Hard

Goal: 1

44. Assume calculated t to be +2.70, at the 0.01 level of significance what would be the decision?

A) Reject the null hypothesis and conclude the means are different.

B) Reject the null hypothesis and conclude the means are the same.

C) Fail to reject the null hypothesis and conclude the means are the same.

D) Fail to reject the null hypothesis and conclude the means are different.

Answer: C

Difficulty: Hard

Goal: 1

185

A) One sample test of means.

B) Two sample test of means.

C) Paired t-test.

D) Test of proportions.

Answer: B

Difficulty: Medium

Goal: 1

The results of a mathematics placement exam at Mercy College for two campuses is as follows:

46. What is the null hypothesis if we want to test the hypothesis that the mean score on Campus 1 is

higher than on Campus 2?

A) 1 0 .

B) 2 0 .

C) 1 2 .

D) 1 2 .

E) None of the above

Answer: E

Difficulty: Medium

Goal: 1

A) 9.3

B) 2.6

C) 3.4

D) 1.9

Answer: C

Difficulty: Hard

Goal: 1

48. Given that the two population standard deviations are known, what is the p-value if the computed test

statistic is 4.1?

A) 1.0

B) 0.0

C) 0.05

D) 0.95

Answer: B

Difficulty: Medium

Goal: 2

186

Fill-in-the-Blank

49. What is the purpose of pooling the sample variances when testing the difference between two

population means? ___________

Answer: To compute a single estimate of the population variance.

Difficulty: Medium

Goal: 1

50. What is the critical value of t for a two-tail test of the difference of two means, a level of significance

of 0.10 and sample sizes of seven and fifteen? Assume equal population standard deviations. _________

Answer: 1.734

Difficulty: Medium

Goal: 1

51. What is the critical value of t for the claim that the difference of two means is less than zero with =

0.025 and sample sizes of nine and seven? Assume equal population standard deviations. _________

Answer: -2.179

Difficulty: Medium

Goal: 1

Use the following to answer questions 52-55:

A study by a bank compared the average savings of customers who were depositors for three years or less,

with those who had been depositors for more than three years. The results of a sample are:

52. Assuming that the financial officer wants to show that there is a difference in the average savings

balance between the two classes of depositors, what is the null hypothesis? _____________________

Answer: less more

Difficulty: Medium

Goal: 2

Answer: 1.96

Difficulty: Medium

Goal: 1

Answer: 11.00

Difficulty: Hard

Goal: 1

55. What is the p-value if = .05 and the test statistic is 3.15? _____

Answer: approximately 0.00

Difficulty: Hard

Goal: 1

187

A study by a bank compared the average savings of customers who were depositors for three years or less,

with those who had been depositors for more than three years. The results of a sample are:

56. Assuming that the financial officer wants to show that there is a difference in the average savings

balance between the two classes of depositors, what is the null hypothesis? _____________________

Answer: less more

Difficulty: Medium

Goal: 2

Difficulty: Hard

Goal: 1

Answer: 2.069

Difficulty: Hard

Goal: 1

Answer: 1.000

59. What is the p-value if = .05 and the test statistic is 2.807? _____

Answer: approximately 0.01

Difficulty: Hard

Goal: 1

Multiple Choice

Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or FIFO

(First In First Out). A manufacturer evaluated its finished goods inventory (in $ thousands) for five

products both ways. Based on the following results, is LIFO more effective in keeping the value of his

inventory lower?

P ro d u c t

1

2

3

4

5

F IF O (F )

225

119

100

212

248

L IF O (L )

221

100

113

200

245

188

A) F L .

B) F L .

C) F L .

D) F L .

Answer: C

Difficulty: Medium

Goal: 3

A) F L .

B) F L .

C) F L .

D) F L .

Answer: D

Difficulty: Medium

Goal: 3

A) 4

B) 5

C) 15

D) 10

E) 9

Answer: A

Difficulty: Medium

Goal: 3

63. If you use the 5% level of significance, what is the critical t value?

A) +2.132

B) 2.776

C) +2.262

D) 2.228

Answer: A

Difficulty: Medium

Goal: 3

A) +1.93

B) 2.776

C) +0.0.47

D) 2.028

Answer: A

Difficulty: Hard

Goal: 3

A) Fail to reject the null hypothesis and conclude LIFO is more effective.

B) Reject the null hypothesis and conclude LIFO is more effective.

C) Reject the alternate hypothesis and conclude LIFO is more effective.

D) Fail to reject the null hypothesis and conclude LIFO is not more effective.

189

Answer: D

Difficulty: Hard

Goal: 3

190

A) One sample test of means.

B) Two sample test of means.

C) Paired t-test.

D) Test of proportions.

Answer: C

Difficulty: Medium

Goal: 3

Fill-in-the-Blank

To compare the effect of weather on sales of soft drinks, a soda manufacturer sampled two regions of the

country with the following results. Is there a difference in sales between the 2 regions?

S a m p le S iz e

S a le s

R e g io n A

1000

400

R e g io n B

1500

500

Answer: a b

Difficulty: Medium

Goal: 2

68. What is the alternate hypothesis? _______________________

Answer: a b

Difficulty: Medium

Goal: 2

69. What is the proportion of sales made in Market Area 1? ______

Difficulty: Easy

Goal: 2

Answer: 0.40

Answer: 0.33

Difficulty: Easy

Goal: 2

71. What is the pooled estimate of the population proportion? _______

Difficulty: Hard

Goal: 2

Answer: 0.36

72. Using the 1% level of significance, what is the critical value? _____

Difficulty: Medium

Goal: 2

Answer: 2.58

Difficulty: Hard

Goal: 2

Answer: 3.57

191

Answer: reject

Difficulty: Medium

Goal: 2

75. What is your decision if = 0.01 and the z-statistic is 1.96? ____________________

Answer: fail to reject

Difficulty: Medium

Goal: 2

Use the following to answer questions 76-79:

A financial planner wants to compare the yield of income and growth mutual funds. Fifty thousand

dollars is invested in each of a sample of 35 income and 40 growth funds. The mean increase for a twoyear period for the income funds is $900. For the growth funds the mean increase is $875. Income funds

have a population standard deviation of $35; growth funds have a population standard deviation of $45.

At the 0.05 significance level, is there a difference in the mean yields of the two funds?

Answer: H o : i income i growth

Difficulty: Easy

Goal: 1

Difficulty: Medium

Goal: 1

Answer: 2.70

78. What is the p-value for the computed test statistic? ____________

Difficulty: Medium

Goal: 1

Answer: 0.007

79. What decision is made about the null hypothesis using and = 0.05? ____________

Difficulty: Medium

Goal: 1

Essay

80. For hypotheses that compare two population means, when is a pooled variance used?

Answer: Independent populations and the population standard deviations are unknown and assumed to be

equal. Difficulty: Medium

Goal: 1

81. For hypotheses that compare two population means, when are the degrees of freedom adjusted?

Answer: Independent populations, and the population standard deviations are unknown and assumed

unequal. Difficulty: Medium

Goal: 1

192

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