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Unformatted text preview: sample of 25 units of product X, the average weight is 102 lbs., and
the sample standard deviation is 10 lbs. We would like to decide if there is enough evidence
to establish that the average weight for the population of product X is greater than 100 lbs.
Assume the population is normally distributed. At α = .01, we can reject the null hypothesis.
True False 35. A recent study conducted by the state government attempts to determine whether the
voting public supports further increase in cigarette taxes. The opinion poll recently sampled
1500 voting age citizens. 1020 of the sampled citizens were in favor of an increase in cigarette
taxes. The state government would like to decide if there is enough evidence to establish
whether the proportion of citizens supporting an increase in cigarette taxes is significantly
greater than .66. At α = .10, we would fail to reject H0.
True False 36. A recent study conducted by the state government attempts to determine whether the
voting public supports further increase in cigarette taxes. The opinion poll recently sampled
1500 voting age citizens. 1020 of the sampled citizens were in favor of an increase in cigarette
taxes. The state government would like to decide if there is enough evidence to establish
whether the proportion of citizens supporting an increase in cigarette taxes is significantly
greater than .66. At α = .05, we would reject the null hypothesis.
True False 1718 Chapter 01  An Introduction to Business Statistics 37. A microwave manufacturing company has just switched to a new automated production
system. Unfortunately, the new machinery has been frequently failing and requiring repairs
and service. The company has been able to provide its customers with a completion time of 6
days or less. To analyze whether the completion time has increased, the production manager
took a sample of 36 jobs and found that the sample mean completion time was 6.5 days with a
sample standard deviation of 1.5 days. At a significance level of .10, we can show that the
completion time has increased.
True False Multiple Choice Questions 38. The rejection of a true null hypothesis is called a ______________ error.
A. Type I
B. Type II
C. Random
D. β 39. When testing a hypothesis about a single mean, if the sample size is 51, and the
population standard deviation is known, the correct test statistic to use is ___________.
A. χ
B. Z
C. t
D. pvalue 40. When testing a hypothesis about a single mean, if the sample size is 20, and the
population standard deviation is unknown, the correct test statistic to use is ___________.
A. χ
B. Z
C. t
D. pvalue 1719 Chapter 01  An Introduction to Business Statistics 41. When testing a hypothesis about a single mean, sample size of 200 is selected from a
normally distributed population. If the population standard deviation is known, the correct test
statistic to use is ___________.
A. χ
B. Z
C. t
D. pvalue 42. __________is the probability of not rejecting H0when H0 is false.
A. Type I error
B. Type II error
C. Random error
D. α 43. For a fixed sample size, the lower we set α, the higher is the ___________.
A. Type I error
B. Type II error
C. Random error
D. pvalue 44. Assuming a fixed sample size, as α (Type I error) decreases, β (Type II error)
___________.
A. Increases
B. Decreases
C. Stays the same
D. Randomly fluctuates 45. As the type II error β of statistical test increases, the power of the test _____________.
A. Increases
B. Decreases
C. Stays the same
D. Randomly fluctuates 1720 Chapter 01  An Introduction to Business Statistics 46. A null hypothesis is not rejected at given level of significance. As the assumed value of
the mean gets further away from the true population mean, the type II error will
_____________.
A. Increase
B. Decrease
C. Stay the same
D. Randomly fluctuate 47. The _____ hypothesis is not rejected unless there is sufficient sample evidence to do so.
A. Research
B. Alternative
C. Null
D. Chisquare 48. The _____ hypothesis will be accepted only if there is convincing sample evidence that it
is true.
A. Ztest
B. Alternative
C. Null
D. Chisquare 49. Assuming that the null hypothesis is true, the ______________ is the probability of
observing a value of the test statistic that is at least as extreme as the value actually computed
from the sample data.
A. α
B. β
C. pvalue
D. Type I error 1721 Chapter 01  An Introduction to Business Statistics 50. The value of the test statistic is compared with a(n) _______________ in order to decide
whether the null hypothesis can be rejected.
A. α
B. β
C. pvalue
D. critical value 51. A(n) _________ hypothesis is the statement that is being tested. It usually represents the
status quo and it is not rejected unless if there is convincing sample evidence that it is false.
A. Research
B. Alternative
C. Null
D. Chisquare 52. Determine the pvalue for H0: p ≤ .5 versus HA: p > .5 when n = 225 and
A. .1131
B. .2262
C. .0082
D. .8869 = .54. 53. Determine the pvalue for H0: p = .5 versus HA: p ≠ .5 when n = 225 and
A. .1131
B. .2262
C. .0164
D. .0082 = .54. 54. Determine...
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 Winter '14

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