Spring2003FinalASolutions

Spring2003FinalASolutions - MSCI 3710 No. 1 2 Final Exam...

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MSCI 3710 Final Exam Solutions Spring 2003 No. Solution Version A 1 The historical mean is 29 and we want to see if it is now lower, so it will be the left-tailed test Ho: µ >= 29 vs. Ha: µ < 29 B 2 The distribution of the test statistic is t because the population standard deviation is not given (s=25 is the sample standard deviation) and the sample size is 10 (i.e., less than 30) B 3 This is a one-tail test (left tail). Look at the t table with alpha=5% and 9 degrees of freedom. The critical t value is 1.833, for our case it will be –1.833 to get it on the left tail. So, the rejection area is t* < –1.833 D 4 Since t*(= –1.56) > t critical (= –1.833), we fail to reject the null hypothesis. So the new mean is not less than 29. D 5 Here the test is left-tailed and –0.327 < 1.77, so t* < t crit, therefore we fail to reject the null hypothesis. Alternatively, the p-value (= 0.374, we have one-tail test) is not smaller than alpha, so fail to reject the null hypothesis. So, IDT rates are not lower. C 6 There are 14 pairs of observations. So, d.f. = 14 – 1 = 13 C 7 Because this is a one-tail test, the critical value is t = 1.77 A 8 The correct set of hypotheses for this test is
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Spring2003FinalASolutions - MSCI 3710 No. 1 2 Final Exam...

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