f98Key1d

# f98Key1d - Answer Key for Exam 1 ( Version D) 1. The...

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Answer Key for Exam 1 ( Version D) 1. The hypothesized mean time (= 8) is not included in the confidence interval ( 8.3 to 9.4 ). The decision is to reject Ho and conclude there is evidence the average warm-up period is not equal to 8 minutes. NOTE : 90% C.I. is related to a two-tailed test at the 10% significant level. Ans. D 2. A Type I error occurs if you reject Ho when in fact it is true (see page 273). In this case, Ho states “the average warm-up time is equal to 8 minutes.” So rejecting Ho is concluding the mean is not equal to 8 minutes. Ans. E 3. From the given Excel output, the absolute value of T* (=t stat.) is = 2.0718 Ans. C 4. From the given Excel output, p-value ( =.0286) > α (=.01). The decision is to fail to reject Ho. Conclude there is insufficient evidence the annual utility expenses are more than \$25,000. Ans. A 5. The required C. I. is given by ( ) ± t α / 2, df * √(S 2 / n ). Using α/2 = .01/2 = .005 and df = 14, we have .t α / 2, df = 2.977 from t-table. From the Excel output we have (26129.13)

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## f98Key1d - Answer Key for Exam 1 ( Version D) 1. The...

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