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.

H0: m < 10.0% Ha: m 10.0%

b.

H0: m 10.0% Ha: m > 10.0%

c.

H0: m > 10.0% Ha: m 10.0%

d.

H0: m 10.0% Ha: m < 10.0%

 

 

 

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.

H0: P > 0.75 Ha: P 0.75

b.

H0: P < 0.75 Ha: P 0.75

c.

H0: P 0.75 Ha: P < 0.75

d.

H0: P 0.75 Ha: P > 0.75

 

 

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