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Multiple Choice Questions: Answer: D
Multiple Choice Questions: Answer: D
HYPOTHESIS TESTING
1. If a researcher takes a large enough sample, he/she will almost always obtain:
a.
b. < or >
c. or =
d. or
ANSWER: b
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Hypothesis Testing
a. Type I
b. Type II
c. They are equally serious
d. Neither is serious
ANSWER: a
8. You conduct a hypothesis test and you observe values for the sample mean and
sample standard deviation when n = 25 that do not lead to the rejection of H 0 .
You calculate a p-value of 0.0667. What will happen to the p-value if you observe
the same sample mean and standard deviation for a sample > 25?
a. Increase
b. Decrease
c. Stay the same
d. May either increase or decrease
ANSWER: b
a. one-tailed
b. two-tailed
c. neither one nor two-tailed
d. one or two-tailed
ANSWER: d
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Chapter 10
a. results in only one direction can lead to rejection of the null hypothesis
b. negative sample means lead to rejection of the null hypothesis
c. results in either of two directions can lead to rejection of the null hypothesis
d. no results lead to the rejection of the null hypothesis
ANSWER: c
12. A study in which randomly selected groups are observed and the results are
analyzed without explicitly controlling for other factors is called:
a. an observational study
b. a controlled study
c. a field test
d. a simple study
ANSWER: a
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Hypothesis Testing
16. When one refers to “how significant” the sample evidence is, he/she is referring to
the:
a. value of
b. the importance of the sample
c. the p-value
d. the F-ratio
ANSWER: c
a. 0.01
b. 0.05
c. 0.10
d. 0.25
ANSWER: d
19. The chi-square test can be too sensitive if the sample is:
a. very small
b. very large
c. homogeneous
d. predictable
ANSWER: b
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Chapter 10
a. elective hypothesis
b. alternative hypothesis
c. optional hypothesis
d. null hypothesis
ANSWER: b
23. A null hypothesis can only be rejected at the 5% significance level if and only if:
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Hypothesis Testing
25. The chi-square test is not very effective if the sample is:
a. small
b. large
c. irregular
d. heterogeneous
ANSWER: a
a. elective hypothesis
b. optional hypothesis
c. research hypothesis
d. null hypothesis
ANSWER: c
27. An informal test for normality that utilizes a scatterplot and looks for clustering
around a 45 line is known as:
a. a Lilliefors test
b. an empirical cdf
c. a p-test
d. a quantile-quantile plot
ANSWER: d
28. Which of the following tests are used to test for normality?
29. If a teacher is trying to prove that new method of teaching math is more effective
than traditional one, he/she will conduct a:
a. one-tailed test
b. two-tailed test
c. point estimate of the population parameter
d. confidence interval
ANSWER: a
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Chapter 10
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Hypothesis Testing
TEST QUESTIONS
31. A sport preference poll yielded the following data for men and women. Use the
5% significance level and test to determine is sport preference and gender are
independent.
Sport Preference
Basketball Football Soccer
Men 20 25 30 75
Gender
Women 18 12 15 45
38 37 45 120
ANSWER:
32. Suppose that we observe a random sample of size n from a normally distributed
population. If we are able to reject H 0 : 0 in favor of H a : 0 at the 5%
significance level, is it true that we can definitely reject H 0 in favor of the
appropriate one-tailed alternative at the 2.5% significance level? Why or why
not?
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Chapter 10
ANSWER:
This is not true for certain. Suppose 0 50 and the sample mean we observe is
X 55. If the alternative for the one-tailed test is H a : 50, then we obviously
can’t reject the null because the observed sample mean X is in the wrong
direction. But if the alternative is H1 : 50, we can reject the null at the 2.5%
level. The reason is that we know the p-value for the two-tailed test was less than
0.05. The p-value for a one-tailed test is half of this, or less than 0.025, which
implies rejection at the 2.5% level.
33. An investor wants to compare the risks associated with two different stocks. One
way to measure the risk of a given stock is to measure the variation in the stock’s
daily price changes. The investor obtains a random sample of 20 daily price
changes for stock 1 and 20 daily price changes for stock 2. These data are shown
in the table below. Show how this investor can compare the risks associated with
the two stocks by testing the null hypothesis that the variances of the stocks are
equal. Use = 0.10 and interpret the results of the statistical test.
ANSWER:
n1 20, s1 0.8487, n2 20, s2 0.5291
H 0 : 12 / 22 1
H a : 12 / 22 1
Test statistic: F s12 / s22 2.573
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Hypothesis Testing
P-value=0.023
Since the P-values is less than 0.10, we reject the null hypothesis of equal
variances and conclude that the variances of the stocks are not equal at the 10%
level.
BatCo (The Battery Company) produces your typical consumer battery. The company
claims that their batteries last at least 100 hours, on average. Your experience with the
BatCo battery has been somewhat different, so you decide to conduct a test to see if the
companies claim is true. You believe that the mean life is actually less than the 100
hours BatCo claims. You decide to collect data on the average battery life (in hours) of a
random sample and the information related to the hypothesis test is presented below.
34. Can the sample size be determined from the information above? Yes or no? If
yes, what is the sample size in this case?
ANSWER:
Yes. 19 + 1 = 20.
35. You believe that the mean life is actually less than 100 hours, should you conduct
a one-tailed or a two-tailed hypothesis test? Explain your answer.
ANSWER:
One-tailed test. You are interested in the mean being less than 100.
36. What is the sample mean of this data? If you use a 5% significance level, would
you conclude that the mean life of the batteries is typically more than 100 hours?
Explain your answer.
ANSWER:
98.5 hours. No. You would reject the null hypothesis in favor of the alternative,
which is less than 100 hours (0.034 < 0.05).
37. If you were to use a 1% significance level in this case, would you conclude that
the mean life of the batteries is typically more than 100 hours? Explain your
answer.
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Chapter 10
ANSWER:
Yes. You cannot reject the null hypothesis at a 1% level of significance (0.034 >
0.01).
38. Construct a 90% confidence interval for the difference between the proportions of
unacceptable assemblies generated by the two teams.
ANSWER:
n1 145, Pˆ1 0.1034, n2 125, Pˆ2 0.0640, z multiple 1.645
39. Based on the confidence interval constructed in Question 38, is there sufficient
evidence o conclude, at the 10% significance level, that the two teams differ with
respect to their proportions of unacceptable assemblies?
ANSWER:
Because the 90% confidence interval includes the value 0, we cannot reject the
null hypothesis of equal proportions.
40. Staples, a chain of large office supply stores, sells a line of desktop and laptop
computers. Company executives want to know whether the demands for these
two types of computers are related in any way. Each day's demand for each type
of computers is categorized as Low, Medium-Low, Medium-High, or High. The
data shown in the table below is based on 200 days of operation. Based on these
data, can Staples conclude that demands for these two types of computers are
independent? Test at the 5% level of significance.
Desktops
Low Med-Low Med-High High
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Hypothesis Testing
Low 3 14 14 4 35
Laptops Med-Low 6 18 17 22 63
Med-High 13 16 11 16 56
High 8 14 15 9 46
30 62 57 51 200
ANSWER:
41. Suppose that you are asked to test H 0 : 100 versus H a : 100 at the =
0.05 significance level. Furthermore, suppose that you observe values of the
sample mean and sample standard deviation when n = 50 that lead to the rejection
of H 0 . Is it true that you might fail to reject H 0 if you were to observe the same
values of the sample mean and standard deviation from a sample with n > 50?
Why or why not?
ANSWER:
No. When n increases and the standard deviation of the sample mean stays the
same, the standard error will decrease. Therefore, the test statistic will become
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Chapter 10
more significant. If you rejected H 0 with n = 50, you will continue to reject with
n > 50.
Number of samples 4
Total sample size 32
Grand mean 31039.22
Pooled variance 5308612.5
Pooled standard deviation 2304.043
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Hypothesis Testing
42. Assuming that the variances of the four underlying populations are equal, can you
reject at a 5% significance level that the mean starting salary for each of the given
business majors? Explain why or why not?
ANSWER:
Yes. Because of the F-test and the p-value is less than 0.05 (p-value = 0.0009)
43. Is there any reason to doubt the equal-variance assumption made in Question 42?
Support your answer.
ANSWER:
Yes, there is some cause for concern. The F-test is rather robust, however, is this
case, the sample sizes are rather small and of different sizes.
44. Use the information above related to the 95% confidence intervals for each pair of
differences to explain which ones are statistically significant at = 0.05.
ANSWER:
These confidence intervals show that the accounting majors stating salaries, on
average, are larger than the marketing majors. There is not a significant difference
for the other pairs using a 95% confidence interval.
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Chapter 10
45. Is there any reason to doubt the equal-variance assumption made in the one- way
ANOVA model in this particular case? Explain.
ANSWER:
There certainly is reason to doubt equal variances. The ratio of the largest
standard deviation to the smallest is about 7.12, so the ratio of corresponding
variances is about 51.
46. Assuming that the variances of the four underlying populations are indeed equal,
can you reject at the 10% significance level that the mean starting salary is the
same for each of the given business majors? Explain why or why not.
ANSWER:
H 0 : 1 2 3 4
H : At least two population means are unequal.
The ANOVA table indicates definite mean difference, even at the 1% level (since
the p-value is less than .01). Even if the test is not perfectly valid (because of
unequal variances), we can still be pretty confident that the means are not all
equal.
47. Generate 90% confidence intervals for all pairs of differences between means.
Which of the differences, if any, are statistically significant at the 10%
significance level?
ANSWER:
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Hypothesis Testing
Accounting mean is significantly different (larger) than each of the others. Also,
the Finance mean is significantly different (larger) than the Management mean.
The other means are not significantly different from each other.
Q-Mart is interested in comparing its male and female customers. Q-Mart would like to
know if its female charge customers spend more money, on average, than its male charge
customers. They have collected random samples of 25 female customers and 22 male
customers. On average, women charge customers spend $102.23 and men charge
customers spend $86.46. Additional information are shown below:
Test of difference=0
Sample mean difference 15.77
Pooled standard deviation 79.466
Std error of difference 23.23
t-test statistic 0.679
p-value 0.501
48. Given the information above, what is H 0 and H a for this comparison? Also,
does this represent a one-tailed or a two-tailed test? Explain your answer.
ANSWER:
H 0 : F M , H a : F M . This represents a one-tail test.
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Chapter 10
49. What are the degrees of freedom for the t-statistic in this calculation? Explain
how you would calculate the degrees of freedom in this case.
ANSWER:
d.f = 25 + 22 – 2 = 45
50. What is the assumption in this case that allows you to use the pooled standard
deviation for this confidence interval?
ANSWER:
The assumption is that the populations’ standard deviations are equal ( F M ).
51. Using a 10% level of significance, is there sufficient evidence for Q-Mart to
conclude that women charge customers on average spend more than men charge
customers? Explain your answer.
ANSWER:
No. There is not a statistical difference between women and men spending at Q-
Mart, since p-value = 0.501 > 0.10.
ANSWER:
No. There is not a statistical difference between women and men spending at Q-
Mart, since p-value = 0.501 > 0.01.
ANSWER:
H 0 : P 0.45
H a : P 0.45
Test statistic: Z =-1.279
P-value = 0.10
There is not enough evidence to support this claim. The P-value is large (0.10).
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Hypothesis Testing
Joe owns a sandwich shop near a large university. He wants to know if he is servings
approximately the same number of customers as his competition. His closest competitors
are Bob and Ted. Joe decides to use a couple of college students to collect some data for
him on the number of lunch customers served by each sandwich shop during a weekday.
The data for two weeks (10 days) and additional information are shown below (the tables
have been generated using StatPro).
Number of samples 3
Total sample size 30
Grand mean 46.800
Pooled variance 17.044
Pooled standard deviation 4.128
54. Are all three sandwich shops serving the same number of customers, on average,
for lunch each weekday? Explain how you arrived at your answer.
ANSWER:
No. You should reject Ho at a 5% significance level (p-value = 0.0022). Means
are not all equal.
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Chapter 10
55. Explain why the weights for the pooled variance are the same for each of the
samples.
ANSWER:
The weights for the pooled variance are the same for each of the samples, because
sample sizes are equal (sample of 10 customers from each sandwich shop).
56. Use the information related to the 95% confidence interval to explain how the
number of customers Joe has each weekday compares to his competition.
ANSWER:
These intervals show that there is not a significant difference between Joe’s and
Bob’s. However, there is a significant difference between Joe’s and Ted’s using a
95% confidence interval.
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Hypothesis Testing
57. Using a 10% level of significance, do the given sample data support that the
firm’s training programs is effective in increasing the new employee’s working
knowledge of computing?
ANSWER:
H 0 : D 0
H1 : D 0, where D = Before score-After score
Test statistic: t = - 4.471 (paired t-test)
P-value = 0.00013
The test scores have improved by an average of 11 points. Since the P-value is
virtually 0, there is enough evidence to conclude that the given sample data
support that the firm’s training program is increasing the new employee’s
knowledge of computing at the 10% significance level.
ANSWER:
Again, since the P-value is virtually zero, there is plenty of evidence to support
the effectiveness of the program at the 1% level of significance.
Suppose a firm that produces light bulbs wants to know whether it can claim that it light
bulbs typically last more than 1500 hours. Hoping to find support for their claim, the
firm collects a random sample and records the lifetime (in hours) of each bulb. The
information related to the hypothesis test is presented below.
59. Can the sample size be determined from the information above? Yes or no? If
yes, what is the sample size in this case?
ANSWER:
Yes. 24 + 1 = 25.
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Chapter 10
60. The firm believes that the mean life is actually greater than 1500 hours, should
you conduct a one-tailed or a two-tailed hypothesis test? Explain your answer.
ANSWER:
One-tailed, since the firm is interested in finding whether the mean is actually
greater than 1500.
61. What is the sample mean of this data? If you use a 5% significance level, would
you conclude that the mean life of the light bulbs is typically more than 1500
hours? Explain your answer.
ANSWER:
1509.5 hours. Yes, you would reject the null hypothesis in favor of the mean
being greater than 1500 hours (0.031 < 0.05).
62. If you were to use a 1% significance level in this case, would you conclude that
the mean life of the light bulbs is typically more than 1500 hours? Explain your
answer.
ANSWER:
No. You cannot reject the null hypothesis at a 1% level of significance (0.031 >
0.01).
A study is performed in San Antonio to determine whether the average weekly grocery
bill per five-person family in the town is significantly different from the national average.
A random sample of 50 five-person families in San Antonio showed a mean of $133.474
and a standard deviation of $11.193.
63. Assume that the national average weekly grocery bill for a five-person family is
$131. Is the sample evidence statistically significant? If so, at what significance
levels can you reject the null hypothesis?
ANSWER:
H 0 : 131
H : 131
Test statistic: t = 1.563
p-value: 0.124
The sample mean is not significantly different from 131 at even the 10% level
because the p-value is greater than 0.10
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Hypothesis Testing
64. For which values of the sample mean (i.e., average weekly grocery bill) would
you decide to reject the null hypothesis at the 0.01 significance level? For
which values of the sample mean would you decide to reject the null hypothesis at
the 0.10 significance level?
ANSWER:
For either p-value (0.01 or 0.10), we find the t-value that would lead to the
rejection of the null hypothesis, and then solve the equation
t ( X 131) /1.583 for X on either side of 131. This leads to the following
results:
Test of difference 0
Sample mean difference 2685.5
Pooled standard deviation 2515.41 NA
Std error of difference 795.44 795.44
Degrees of freedom 38 33
t-test statistic 3.376 3.376
p-value 0.0009 0.0009
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Chapter 10
65. Use the information above to perform the test of equal variance. Explain how the
ratio of sample variances is calculated. What type of distribution is used to test
for equal variances? Also, would you conclude that the variances are equal or
not? Explain your answer.
ANSWER:
(2983.39)2 / (1937.52)2 = 2.371. Since the p-value is 0.034, you can conclude that
there is a significant difference between the sample variance. They are not equal.
66. Based on your conclusion in Question 65, which test statistic should be used in
performing a test for the existence of a difference between population means?
ANSWER:
Conduct the t-test with individual sample variances (do not use pooled variance).
ANSWER:
Yes. The average starting salary for IS majors is significantly larger than the
starting salary for MKT majors, since p-value = 0.0009 < 0.05.
ANSWER:
Yes. The average starting salary for IS majors is significantly larger than the
starting salary for MKT majors even at a 1% significance level, since p-value =
0.0009 < 0.01.
69. A recent study of educational levels of 1000 voters and their political party
affiliations in a Midwestern state showed the results given in the table below. Use
the 5% significance level and test to determine if party affiliation is independent
of the educational level of the voters.
Party Affiliation
Democrat Republican Independent
Didn't Complete High School 95 80 115 290
Educational Level Has High School Diploma 135 85 105 325
Has College Degree 160 105 120 385
390 270 340 1000
ANSWER:
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Hypothesis Testing
70. If you were to conduct a hypothesis test to determine if greater than 50% of
customers prefer Coca-Cola to other brands, would you conduct a one-tail or a
two-tail hypothesis test? Explain your answer.
ANSWER:
One-tailed, since the consultant is interested in finding whether the proportion is
actually greater than 50%.
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Chapter 10
71. How many customers out of the 200 sampled must have favored Coke in this
case?
ANSWER:
(200)(0.55) = 110
72. Using a 5% significance level, can the marketing consultant conclude that the
proportion of customers who prefer Coca-Cola exceeds 50%? Explain your
answer.
ANSWER:
No. You cannot reject the null hypothesis at a 5% level of significance, since p-
value = 0.07761 > 0.05.
73. If you were to use a 1% significance level, would the conclusion from part c
change? Explain your answer.
ANSWER:
No. You still cannot reject the null hypothesis at a 1% level of significance, since
p-value = 0.07761 > 0.01.
The owner of a popular Internet-based auction site believes that more than half of the
people who sell items on her site are women. To test this hypothesis, the owner sampled
1000 customers who sale items on her site and she found that 53% of the customers
sampled were women. Some calculations are shown in the table below
74. If you were to conduct a hypothesis test to determine if greater than 50% of
customers who use this Internet-based site are women, would you conduct a one-
tail or a two-tail hypothesis test? Explain your answer.
ANSWER:
One-tailed, since the owner is interested in finding whether the proportion is
actually greater than 50%.
75. How many customers out of the 1000 sampled must have been women in this
case?
ANSWER:
(1000)(0.53) = 530
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Hypothesis Testing
76. Using a 5% significance level, can the owner of this site conclude that women
make up more than 50% of her customers? Explain your answer.
ANSWER:
Yes. You can reject the null hypothesis at a 5% level of significance, since p-
value = 0.0287 < 0.05.
77. If you were to use a 1% significance level, would the conclusion from Question
76 change? Explain your answer.
ANSWER:
Yes. Your answer would now change. You cannot reject the null hypothesis at a
1% level of significance, since p-value = 0.0287 > 0.01.
Q-Mart is interested in comparing customer who used it own charge card with those who
use other types of credit cards. Q-Mart would like to know if customers who use the Q-
Mart card spend more money per visit, on average, than customers who use some other
type of credit card. They have collected information on a random sample of 38 charge
customers and the data is presented below. On average, the person using a Q-Mart card
spends $192.81 per visit and customers using another type of card spend $104.47 per
visit.
Test of difference=0
Sample mean difference 88.34
Pooled standard deviation 88.323
Std error of difference 30.201
t-test statistic 2.925
p-value 0.006
78. Given the information above, what is H 0 and H a for this comparison? Also,
does this represent a one-tailed or a two-tailed test? Explain your answer.
ANSWER:
H 0 : Q Mart Others , H a : Q Mart Others . This represents a one-tail test.
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Chapter 10
79. What are the degrees of freedom for the t-statistic in this calculation? Explain
how you would calculate the degrees of freedom in this case.
ANSWER:
d.f = 13 + 25 – 2 = 36
80. What is the assumption in this case that allows you to use the pooled standard
deviation for this confidence interval?
ANSWER:
The assumption is that the two populations standard deviations are equal; that is
Q Mart Others
ANSWER:
Yes. There is a statistical difference between those using the Q-Mart card and
those who use other types of charge cards, since p-value = 0.006 < 0.05.
ANSWER:
Yes. There is still a statistical difference between those using the Q-Mart card
and those who use other types of charge cards, since p-value = 0.006 < 0.01.
83. The number of cars sold by three salespersons over a 6-month period are shown in
the table below. Use the 5% level of significance to test for independence of
salespersons and type of car sold.
Insurance Preference
Chevrolet Ford Toyota
Ali 15 9 5 29
Salesperson Bill 20 8 15 43
Chad 13 4 11 28
48 21 31 100
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Hypothesis Testing
ANSWER:
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Chapter 10
ANSWER:
Yes. Based on the Chi-square test, with a p-value of 0.545, you can conclude that
the values are normally distributed. The frequency distribution also shows that
the values are fairly close to the expected values.
85. Are there any weaknesses or concerns about your conclusions in Question 84?
Explain your answer.
ANSWER:
Yes. There are a couple of concerns. The sample size is rather small (n = 40),
you should use a larger sample size for this test to be more effective. Also, the
test depends on which and how many categories are used for the histogram. A
different choice could result in a different answer.
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Hypothesis Testing
ANSWER:
A two-sample, not paired-sample, procedure should be used because there is no
evidence of pairing.
87. Perform an appropriate hypothesis test with a 1% significance level. Assume that
the population variances are equal.
ANSWER:
H 0 : 1 2 0 , H a : 1 2 0 , Test statistic t = 6.22, P-value=0. Since P-value
is virtually 0, we can conclude at the 1% level that the mean salary for CIS majors
is indeed larger.
88. How large would the difference between the mean starting salaries of CIS and IB
majors have to be before you could conclude that CIS majors earn more on
average? Employ a 1% significance level in answering this question.
ANSWER:
P-value=0.01, t =2.41, and Standard error of difference = SE ( X 1 X 2 ) 544.439 .
Then X 1 X 2 t SE ( X 1 X 2 ) 1312.20
A mean difference of 1312.20 is all that would be required to get the conclusion
in Question 87 at the 1% level.
89. A statistics professor has just given a final examination in his linear models
course. He is particularly interested in determining whether the distribution of 50
exam scores is normally distributed. The data are shown in the table below.
Perform the Lilliefors test. Report and interpret the results of the test.
77 71 78 83 84 71 81 82 79 71
73 89 74 75 93 74 88 83 90 82
79 62 73 88 76 76 76 80 84 84
91 70 76 74 68 80 87 92 84 79
80 91 74 69 88 84 83 87 82 72
ANSWER:
The maximum distance between the empirical and normal cumulative
distributions is 0.0802. This is less than 0.1247, the maximum allowed with a
sample size of 50. Therefore, the normal hypothesis cannot be rejected at the 5%
level.
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Chapter 10
1.0
0.8
0.6
0.4
0.2
0.0
-2.93
-2.71
-2.49
-2.27
-2.05
-1.83
-1.61
-1.39
-1.17
-0.95
-0.73
-0.51
-0.29
-0.07
0.15
0.80
1.02
2.34
2.56
2.78
3.22
0.36
0.58
1.24
1.46
1.68
1.90
2.12
3.00
Standardized values of Score
90. An insurance firm interviewed a random sample of 600 college students to find
out the type of life insurance preferred, if any. The results are shown in the table
below. Is there evidence that life insurance preference of male students is
different than that of female students. Test at the 5% significance level.
Insurance Preference
Term Whole Life No Insurance
Male 80 30 240 350
Gender
Female 50 40 160 250
130 70 400 600
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Hypothesis Testing
ANSWER:
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Chapter 10
ASNWER:
StatPro’s one-way ANOVA produces the following results:
To test at the 0.05 level of significance whether the average sales volumes in
thousands of dollars are different across the three store aisle locations, we conduct
an F test:
H0: Front Middle Rear
H1: At least one mean is different.
Since p-value = 0.0004 < = 0.05, we reject H0. There is enough evidence to
conclude that the average sales volumes in thousands of dollars are different
across the three store aisle locations.
ANSWER:
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Hypothesis Testing
It appears that the front and middle aisles and also the front and rear aisles differ
significantly in average sales at = 0.05.
93. What should the retailing manager conclude? Fully describe the retailing
manager’s options with respect to aisle locations?
ANSWER:
The front aisle is best for the sale of this product. The manager should evaluate
the tradeoff in switching the location of this product and the product that is
currently intended for the front location.
A real estate agency wants to compare the appraised values of single-family homes in
two cities in Michigan. A sample of 60 listings in Lansing and 99 listings in Grand
Rapids yields the following results (in thousands of dollars):
94. Is there evidence of a significant difference in the average appraised values for
single-family homes in the two Michigan cities? Use 0.05 level of significance.
ANSWER:
Populations: 1 = Lansing, 2 = Grand Rapids
H0: 1 2 (The average appraised values for single-family homes are the same
in Lansing and Grand Rapids)
H1: 1 2 (The average appraised values for single-family homes are not the
same in Lansing and Grand Rapids)
2 2
2 (n1 – 1) S1 (n2 – 1) S 2 (59) 32.60 2 (98) 16.92 2
Sp = 578.0822
(n1 – 1) (n2 – 1) 59 98
Test statistic:
( X 1 – X 2 ) – ( 1 – 2 ) (191.33 – 172.34) – 0
t
2 1 1 1 1 = 4.8275
S p 578.0822
n1 n 2 60 99
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Chapter 10
Decision: Since tcalc = 4.8275 is above the upper critical bound of 1.9752, reject
H0. There is enough evidence to conclude that there is a difference in the average
appraised values for single-family homes in the two Michigan cities. The p value
is 3.25E-06 using Excel.
95. Do you think any of the assumptions needed in Question 94 have been violated?
Explain.
ANSWER:
The assumption of equal variances may be violated because the sample variance
in Lansing is nearly four times the size of the sample variance in Grand Rapids
and the two sample sizes are not small. Nevertheless, the results of the test for the
differences in the two means were overwhelming (i.e., the p value is nearly 0).
96. Construct a 95% confidence interval estimate of the difference between the
population means of Lansing and Grand Rapids.
ANSWER:
1 1 1 1
X 1 X 2 t S p2 191.33 172.34 1.9752 578.08
n1 n2 60 99
11.2202<1 2 26.7598
97. Explain how to use the confidence interval in Question 96 to answer Question 94.
ANSWER:
Since the 95% confidence interval in Question 96 does not include 0, we reject
the null hypothesis at the 5% level of significance that the average appraised
values for single-family homes are the same in Lansing and Grand Rapids.
In a survey of 1,500 customers who did holiday shopping on line during the 2000 holiday
season, 270 indicated that they were not satisfied with their experience. Of the customers
that were not satisfied, 143 indicated that they did not receive the products in time for the
holidays, while 1,197 of the customers that were satisfied with their experience indicated
that they did receive the products in time for the holidays. The following complete
summary of results were reported:
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Hypothesis Testing
for Holidays
98. Is there a significant difference in satisfaction between those who received their
products in time for the holidays, and those who did not receive their products in
time for the holidays? Test at the 0.01 level of significance.
ANSWER:
Populations: 1 = received product in time, 2 = did not receive product in time
H 0 : P1 P2
H1 : P1 P2
Decision: Since Zcalc = 23.248 is well above the upper critical bound of Z =
2.5758, reject H0. There is sufficient evidence to conclude that a significant
difference in satisfaction exists between those who received their products in time
for the holidays and those who did not receive their products in time for the
holidays.
ANSWER:
The p-value is virtually 0. The probability of obtaining a difference in two sample
proportions as large as 0.7166 or more is virtually 0 when H 0 is true.
100. Based on the results of Questions 98 and 99, if you were the marketing director of
a company selling products online, what would you do to improve the satisfaction
of the customers?
ANSWER:
Ensuring that the customers receive their products in time for the holidays will be
one effective way to improve the satisfaction of the customers.
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Chapter 10
101. The p-value of a test is the probability of observing a test statistic at least as
extreme as the one computed given that the null hypothesis is true.
ANSWER: T
ANSWER: F
ANSWER: T
ANSWER: T
ANSWER: F
ANSWER: F
ANSWER: T
ANSWER: F
109. The probability of making a Type I error and the level of significance are the
same.
ANSWER: T
250
Hypothesis Testing
110. The p-value of a test is the smallest level of significance at which the null
hypothesis can be rejected.
ANSWER: T
111. If a null hypothesis about a population mean is rejected at the 0.025 level of
significance, it must be rejected at the 0.01 level.
ANSWER: F
ANSWER: T
113. If we reject a null hypothesis about a population proportion p at the 0.025 level of
significance, then we must also reject it at the 0.05 level.
ANSWER: T
114. Using the confidence interval when conducting a two-tailed test for the population
mean , we do not reject the null hypothesis if the hypothesized value for falls
between the lower and upper confidence limits.
ANSWER: T
115. A professor of statistics refutes the claim that the proportion of independent
voters in Minnesota is at most 40%. To test the claim, the hypotheses:
H : p 0.40 , H : p 0.40 , should be used.
0 a
ANSWER: F
116. Using the confidence interval when conducting a two-tailed test for the population
proportion p, we reject the null hypothesis if the hypothesized value for p falls
inside the confidence interval.
ANSWER: F
117. When testing the equality of two population variances, the test statistic is the ratio
of the population variances; namely 12 / 22 .
ANSWER: F
118. Tests in which samples are not independent are referred to as matched pairs.
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Chapter 10
ANSWER: T
119. The pooled-variances t-test requires that the two population variances are
different.
ANSWER: F.
120. 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 x1 x 2 if the populations
are normal with equal variances.
ANSWER: T
121. In conducting hypothesis testing for difference between two means when samples
are dependent, the variable under consideration is D ; the sample mean difference
between n pairs.
ANSWER: T
122. The number of degrees of freedom associated with the t test, when the data are
gathered from a matched pairs experiment with 12 pairs, is 22.
ANSWER: F
ANSWER: T
124. 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 0.35 and p2 0.42 , and the standard error of the sampling distribution of
p1 p2 is 0.054. The calculated value of the test statistic will be 1.2963.
ANSWER: F
ANSWER: T
126. When the necessary conditions are met, a two-tail test is being conducted at =
0.05 to test H 0 : 1 / 2 1 . The two sample variances are s12 700 and s22 875 ,
2 2
252
Hypothesis Testing
and the sample sizes are n1 40 and n2 40 . The calculated value of the test
statistic will be F = 0.80.
ANSWER: T
ANSWER: T
128. Given the significance level 0.01, the F-value for the degrees of freedom, d.f. =
(6,9) is 7.98.
ANSWER: F
129. The analysis of variance (ANOVA) technique analyzes the variance of the data to
determine whether differences exist between the population means.
ANSWER: T
130. The F-test of the analysis of variance requires that the populations be normally
distributed with equal variances.
ANSWER: T
131. One-way ANOVA is applied to four independent samples having means 13, 15,
18 and 20, respectively. If each observation in the forth sample were increased by
30, the value of the F-statistics would increase by 30.
ANSWER: F
132. The degrees of freedom for the denominator of a one-way ANOVA test for 4
population means with 10 observations sampled from each population are 40.
ANSWER: F
133. A test for independence is applied to a contingency table with 4 rows and 4
columns. The degrees of freedom for this chi-square test must equal 9.
ANSWER: T
134. The number of degrees of freedom for a contingency table with r rows and c
columns is rc - 1 , provided that both r and c are greater than or equal to 2.
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Chapter 10
ANSWER: F
ANSWER: T
254