# Question Answer

1 Indicate whether the following are true or false:

a) Suppose we calculate our t-statistic to be t=2.043. If
our sample size was 30, we used a two-tailed test, and
α =0.05 , we should reject H 0.
b) Suppose our critical value is t ¿=1.877 . We use a
lower tail t-test and calculate our t-statistic to be
t=−1.945 , so we fail to reject H 0.
c) Suppose we use an upper tailed t-test and find our
critical value to be t ¿=1.544 . We calculate t=2.433,
so we reject the null hypothesis.
d) If I use an alpha level of 0.05, and I find my P-value
is 0.025, I reject the null hypothesis.
e) The probability of making a Type II error is equal to
the alpha level
2 Suppose I conduct a two-tailed t-test using a sample of 20. I
determine t=1.884 , and based on my alpha level, I reject the
null hypothesis. Which of the following was a possible alpha
level?
a) .01
b) .02
c) .05
d) .10
e) None of the above
3 A manager surveys the next 25 people entering his store,
asking them for their age. The ages are listed below:
38 38 20 33 9 36 2 14 3 5 42 35 16
48 2 22 20 39 40 10 25 23 33 36 38
The manager would like to know if the mean age of his
customers is below 30 years old.
a) What are the null and alternative hypotheses?
b) What is the value of the test statistic?
c) What is the critical value t ¿ given an alpha level of
0.05?
d) What do you conclude at this significance level?
Interpret your result.
4 After completing training at a telemarketing company, it is
expected that an employee will make an average of 420 calls
per day. For a certain employee, the number of calls made
daily is tracked over 30 days, and the average number of calls
made per day is found to be 386, with a standard deviation of
85 calls. The manager would like to see if there is evidence
that this employee is underperforming. Test the manager’s
hypothesis given a significance level of 0.01.
a) List the null and alternative hypotheses.
b) Give the value of the test statistic.
c) What is the critical value t ¿?
d) What do you conclude at this significance level?
Interpret your result.
5 Read the Donors dataset into R. This dataset contains a
random sample of 916 donors (from a population of 1.5
 million) who have donated to a Canadian charitable
organization. It includes the variables age (in years),
homeowner (H=yes, U=unknown), gender, wealth (1=lowest,
9=highest), children, donated last (0=did not donate to last
campaign, 1=did donate to last campaign), and amount
donated last (in dollars).
a) Since there are 9 categories of wealth, the mean value
is 5. An analyst for the organization is interested in
whether the mean wealth category of the donor
population differs from 5. Test this hypothesis at the
α =0.05 level, and interpret your results.
b) What R command would you use to calculate the p-
value in part a) from the obtained value t=3.7438?
c) What is the critical value of t for this test?
6 In Canada, the average age of a person is approximately 39
years old. The organization would like to know if the average
age of their donors is greater than 39 years. Test this
hypothesis at the 0.01 level, and interpret your results.

Is the nearly normal condition satisfied?

7 What is the P-value for t ≤ 2.77 with 27 degrees of freedom