WEEK 2 – CONFIDENCE INTERVAL & HYPOTHESIS TESTING

Multiple Choice Questions

1. Confidence Interval

1. If we are constructing a 98 percent confidence interval for the population mean, the
confidence level will be
a. 2 percent
b. 2.29
c. 98 percent
d. 2.39
2. The z value corresponding to a 97 percent confidence interval is
a. 1.88
b. 2.17
c. 1.96
d. 3 percent
3. As the sample size increases, the confidence interval for the population mean will
a. decrease
b. increase
c. stay the same
d. decrease and then increase

2. Hypothesis Testing with z distribution

4. It was reported that a certain population had a mean of 27. To test this claim, you
selected a random sample of size 100. The computed sample mean and sample
standard deviation were 25 and 7, respectively. The appropriate set of hypotheses for
this test is
a. 𝐻0 : 𝜇 ≤ 27 𝑣𝑠. 𝐻1 : 𝜇 > 27
b. 𝐻0 : 𝜇 = 27 𝑣𝑠. 𝐻1 : 𝜇 ≠ 27
c. 𝐻0 : 𝜇 ≥ 25 𝑣𝑠. 𝐻1 : 𝜇 < 25
d. 𝐻0 : 𝜇 ≠ 25 𝑣𝑠. 𝐻1 : 𝜇 = 25
5. It was reported that a certain population had a mean of 27. To test this claim, you
selected a random sample of size 100. The computed sample mean and standard
deviation were 25 and 7, respectively. The computed test statistic for the appropriate
set of hypotheses is
a. – 4.0816
b. – 0.4082
c. – 28.5714
d. – 2.8571

6. It was reported that a certain population had a mean of 27. To test this claim, you
selected a random sample of size 100. The computed sample mean and standard
deviation were 25 and 7, respectively. The P value for the appropriate set of
hypotheses is
a. 0.0021
b. 0.9979
c. 0.0042
d. – 0.4979

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7. It was reported that a certain population had a mean of 27. To test this claim, you
selected a random sample of size 100. The computed sample mean and standard
deviation were 25 and 7, respectively. At the 0.05 level of significance, you can claim
that the average of this population is
a. not equal to 25
b. equal to 25
c. not equal to 27
d. equal to 27

3.Hypothesis Testing with t distribution

8. For a small-sample left-tailed test for the population mean, the sample size was 18
and α = 0.01. The critical (table) value for this test is
a. – 2.878
b. – 2.552
c. 2.878
d. – 2.567
9. For the following information,
𝑛 = 16 𝜇0 = 15 𝑥̅ = 16 𝑠 2 = 16
assume that the population is normal. Compute the test statistic for testing for a
population mean.

a. z = 1
b. z = ¼
c. t = 1
d. t = ¼
10. An advertising agency would like to create an advertisement for a fast food restaurant
claiming that the average waiting time from ordering to receiving your order at the
restaurant is less than 5 min. The agency measured the time from ordering to delivery
of order for 25 customers and found that average time was 4.7 min with a standard
deviation of 0.6 min. The appropriate set of hypotheses to be tested is
a. 𝐻0 : 𝜇 ≤ 4.7 𝑣𝑠. 𝐻1 : 𝜇 > 4.7
b. 𝐻0 : 𝜇 ≥ 4.7 𝑣𝑠. 𝐻1 : 𝜇 < 4.7
c. 𝐻0 : 𝜇 ≥ 5 𝑣𝑠. 𝐻1 : 𝜇 < 5
d. 𝐻0 : 𝜇 ≤ 5 𝑣𝑠. 𝐻1 : 𝜇 > 5
11. An advertising agency would like to create an advertisement for a fast food restaurant
claiming that the average waiting time from ordering to receiving your order at the
restaurant is less than 5 min. The agency measured the time from ordering to delivery
of order for 25 customers and found that average time was 4.7 min with a standard
deviation of 0.6 min. The test statistic that would be computed is
a. – 4.2
b. – 12.5
c. – 2.5
d. – 20.8

12. An advertising agency would like to create an advertisement for a fast food restaurant
claiming that the average waiting time from ordering to receiving your order at the
restaurant is less than 5 min. The agency measured the time from ordering to delivery
of order for 25 customers and found that average time was 4.7 min with a standard
deviation of 0.6 min. The P value for this test would be

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 a. 0.100
b. 0.050
c. 0.025
d. 0.010
13. An advertising agency would like to create an advertisement for a fast food restaurant
claiming that the average waiting time from ordering to receiving your order at the
restaurant is less than 5 min. The agency measured the time from ordering to delivery
of order for 25 customers and found that average time was 4.7 min with a standard
deviation of 0.6 min. At the 5 percent level of significance, we can claim that the
average time between ordering and receiving the order is
a. significantly greater than 4.7 min
b. significantly smaller than 4.7 min
c. significantly greater than 5 min
d. significantly smaller than 5 min

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