L1: Quant: Hypothesis 23/01/22, 4:23 PM

L1: Quant: Hypothesis Total points 11/20

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1. A sample of 30 observations contains returns of a stock. Mean return is 1/1

2% and sample standard deviation is 20%. Calculate standard error of
sample mean.

3%

3.6%

3.9%

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2. A sample of debt / equity ratios of 25 publicly traded US banks as of 0/1

fiscal year end 2020 is an example of ...

Cross sectional Data

A point estimate

A stratified random sample

Correct answer

Cross sectional Data

3. To apply central limit theorem to a sampling distribution of the sample 1/1

mean, the sample is usually considered to be large if "n" is greater than ...

20

25

30

4. Student's t distribution has _____ tails than normal distribution. 1/1

Thinner

Fatter

minor different

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5. With sample size of 30 data, mean return of 2% and Standard deviation 1/1
of 20%, construct 95% confidence interval for mean monthly return and
calculate upper limit.

-5.4

+/- 6.25

9.4

6. A bias where the statistical significance of the pattern is over 1/1

estimated is referred to as ...

sample selection bias

Survivorship bias

data mining bias

7. When a study tests a relationship using sample data that was not 0/1
available on the test date, is called as ...

Look Ahead Bias

Sample selection bias

Survivorship Bias

Correct answer

Look Ahead Bias

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8. _____ is the hypothesis which a researcher wants to prove. 0/1

Believed hypothesis

Null hypothesis

Alternate Hypothesis

Correct answer

Alternate Hypothesis

9. Researcher fails to reject null hypothesis within 2 tailed test, if test 0/1
result falls _______ of test statistics.

beyond

between

above

Correct answer

between

10. When Ho is true and Ho is rejected, the situation is known as _____ 1/1

Type II error

Type I error

Type III error

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11. When level of significance is greater than P value, chances of error are 1/1
_____

high

low

equal

12. With n of 250, mean return of 0.1%, sample SD of 0.25% and CI of 0/1
95%, calculate test statistics.

0.0158%

+ / - 1.96

6.33

Correct answer

6.33

13. P value signifies probability of _____ 1/1

Error - I

Error - II

No error

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14. T test can't certainly be applied if _____ 0/1

Sample size is greater than 30

Sample variance is unknown with higher P values

Population variance is known

Correct answer

Population variance is known

15. Assuming population mean of 2.5, n being 25, sample mean of 2.49, 0/1
population standard deviation of 0.021 and CI of 95% under 2 tailed test,
check whether null hypothesis can be rejected.

Null hypothesis can be rejected

Null hypothesis can't be rejected

Alternate hypothesis can be accepted

16. Under Chi square test, using 5% Level of significance and 24 1/1
observations, calculate upper tail critical value.

11.689

38.076

19.254

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17. When population and sample data of the same set are given and when 1/1
hypothesis test is to be performed, which among following methods can
be used?

F Square test

T test

Chi square test

18. Under Chi square test formula, numerator will have _____ standard 0/1
deviation.

Population

Sample

Mean

Correct answer

Sample

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19. Which among the following tests need 2 degree of freedom. 0/1

Chi Square test

T test

F square test

Correct answer

F square test

20. Under F square test, we put larger sample variance in ______. 1/1

Denominator

Numerator

formula

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