**chap 9**

**Multiple
Choice**

*Identify
the letter of the choice that best completes the statement or answers the
question.*

1. In hypothesis testing, the hypothesis
tentatively assumed to be true is

a. |
the alternative hypothesis |

b. |
the null hypothesis |

c. |
either the null or the alternative |

d. |
None of these alternatives is correct. |

2. The level of significance is the

a. |
maximum allowable probability of Type II
error |

b. |
maximum allowable probability of Type I
error |

c. |
same as the confidence coefficient |

d. |
same as the p-value |

3. A Type II error is committed when

a. |
a true alternative hypothesis is
mistakenly rejected |

b. |
a true null hypothesis is mistakenly
rejected |

c. |
the sample size has been too small |

d. |
not enough information has been
available |

4. The error of rejecting a true null hypothesis
is

a. |
a Type I error |

b. |
a Type II error |

c. |
is the same as b |

d. |
committed when not enough information is
available |

5. The level of significance

a. |
can be any positive value |

b. |
can be any value |

c. |
is (1 - confidence level) |

d. |
can be any value between -1.96 to 1.96 |

6. The probability of making a Type I error is
denoted by

a. |
a |

b. |
b |

c. |
1 - a |

d. |
1 - b |

7. When the p-value is used for hypothesis
testing, the null hypothesis is rejected if

a. |
p-value < a |

b. |
a < p-value |

c. |
p-value > a |

d. |
p-value = a |

8. Which of the following does **not** need
to be known in order to compute the p-value?

a. |
knowledge of whether the test is
one-tailed or two-tailed |

b. |
the value of the test statistic |

c. |
the level of significance |

d. |
None of these alternatives is correct. |

9. Your investment executive claims that the
average yearly rate of return on the stocks she recommends is at least 10.0%.
You plan on taking a sample to test her claim. The correct set of hypotheses is

a. |
H |

b. |
H |

c. |
H |

d. |
H |

10. In the past, 75% of the tourists who visited
Chattanooga went to see Rock City. The management of Rock City recently
undertook an extensive promotional campaign. They are interested in determining
whether the promotional campaign actually **increased** the proportion of
tourists visiting Rock City. The correct set of hypotheses is

a. |
H |

b. |
H |

c. |
H |

d. |
H |

1. ANS: B

2. ANS: B

3. ANS: A

4. ANS: A

5. ANS: C

6. ANS: A

7. ANS: A

8. ANS: C

9. ANS: D

10. ANS: D