Exam1B.Sp05v1

# Exam1B.Sp05v1 - COURSE: MSCI 3710 Exam 1 B Spring 2005...

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Use the information given in the following paragraph to answer first four questions. A potential buyer who is considering purchasing a franchise store believes that the average weekly revenue is less than \$10,000. He obtains a random sample of weekly revenues from 10 stores and conducts a statistical analysis on the data using Excel, partial results of which are shown below. Number of Observations 10 Sample Standard Deviation 748.42 Sample Mean 9132.00 Ho: xxxxxx Ha: xxxxxx T* xxxxxx P[ T T*] 0.0026 T Critical, α = 0.025 -2.2622 t Test for Population Mean 1. What is the null hypothesis for testing the potential buyer’s belief? A. Ho: μ > 10,000 * B. Ho: μ ≠Η 10,000 C. Ho: μ < 10,000 D. Ho: μ > 10,000 E. Ho: μ < 10,000 2. What is the calculated test statistic to test the buyer’s belief? A. – 1.833 B. 0.0026 C. 3.668 D. – 2.262 E. – 3.668 * 2
3. Suppose the calculated test statistic is –1.85, which one of the following would best describe the p-value for the test? A. p > .1 B. .05 < p < .10 C. .025 < p < .05 * D. .01 < p < .025 E. p < .01 4. Suppose the p-value of the test is 0.03 . What is the conclusion of the test concerning the potential buyer’s belief, conducted at the 0.05 significance level, and reason for the conclusion? A. Conclude there is insufficient evidence the average weekly revenue is less than \$10,000

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## This note was uploaded on 03/09/2011 for the course DSC 3710 taught by Professor Staff during the Spring '09 term at North Texas.

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Exam1B.Sp05v1 - COURSE: MSCI 3710 Exam 1 B Spring 2005...

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