Unformatted text preview: lity that the test statistic would assume a value as or more extreme
than the observed value of the test.
True False 9. Everything else being constant, increasing the sample size decreases the probability of
committing a Type II error.
True False 10. The null hypothesis is a statement that will be accepted only if there is convincing sample
evidence that it is true.
True False 11. As the level of significance α increases, we are more likely to reject the null hypothesis.
True False 12. A test statistic is computed from sample data in hypothesis testing and is used in making a
decision about whether or not to reject the null hypothesis.
True False 1714 Chapter 01  An Introduction to Business Statistics 13. When conducting a hypothesis test about a single mean, other relevant factors held
constant, increasing the level of significance from .05 to .10 will reduce the probability of a
Type I error.
True False 14. When conducting a hypothesis test about a single mean, other relevant factors held
constant, increasing the level of significance from .05 to .10 will reduce the probability of a
Type II error.
True False 15. The level of significance indicates the probability of rejecting a false null hypothesis.
True False 16. When conducting a hypothesis test about a single mean, reducing the level of significance
(α) will increase the size of the rejection region.
True False 17. When the null hypothesis is not rejected, there is no possibility of making a Type I error.
True False 18. When the null hypothesis is true, there is no possibility of making a Type I error.
True False 19. Testing H0: µ ≤ 8 versus HA: µ > 8, given α = .01, n = 25,
= 8.112, and s = .16, we
should reject the H0. (Assume the sample is selected from a normally distributed population.)
True False 1715 Chapter 01  An Introduction to Business Statistics 20. Testing H0: µ ≥ 22 versus HA: µ < 22, given α = .01, n = 100,
we should not reject H0.
True False = 36, s = 1.6, and n = 30 at α = .05, we 21. Testing H0: µ = 32 versus HA: µ > 32 when
should reject H0.
True False 22. When we test H0: p = .2 versus HA: p ≠ .2 with
reject the null hypothesis.
True False 23. After testing at
to reject H0.
True False = 21.431, and s = 1.295, = .26 and n = 100 at alpha = .05 we = .05 H0: p = .33 versus HA: p < .33 with = .20 and n = 100, we fail 24. Testing H0: µ ≤ .95 versus HA: µ > .95 when
= .99, s = .12, and n = 24 at alpha = .05,
we reject H0. (Assume a normally distributed population.)
True False 25. Testing H0: p ≥ .7 versus HA: p < .7 with
reject the null hypothesis.
True False = .63 and n = 100 at = .01, we fail to 26. When we test H0: µ ≤ 3.0 versus HA: µ > 3.0 when
= 3.44, s = .57, and n = 13 at a
significance level of .05, we fail to reject H0. (Assume population normality)
True False 1716 Chapter 01  An Introduction to Business Statistics 27. Testing H0: µ ≥ 2.5 versus HA: µ < 2.5 when
= 2.46, s = .05, and n = 26 at α = .10 we
reject the null hypothesis. (Assume that the population from which the sample is selected is
normally distributed.)
True False 28. It can be established at
= .05 that a majority of students favor the plus/minus grading
system at a university if in a random sample of 500 students, 270 favor the system.
True False 29. Testing H0: µ ≤ 42 versus HA: µ > 42 when
= 45, s = 1.2, and n = 15 at α = .01, we
fail to reject the null hypothesis. (Assume that the population from which the sample is
selected is normally distributed.)
True False 30. The sample evidence indicates that the average time an employee stays with a company in
their current positions is less than 3 years at α = .01. A random sample of 50 employees
yielded a mean of 2.79 years and s = .76.
True False 31. Based on a random 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. The null hypothesis can be written: H0: µ =
100.
True False 1717 Chapter 01  An Introduction to Business Statistics 32. Based on a random 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.
The alternative hypothesis can be written as HA: µ > 100. (Assume the population is normally
distributed.)
True False 33. Based on a random 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 = .05, we fail to reject H0.
True False 34. Based on a random...
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 Winter '14
 Frequency, Frequency distribution, Histogram, AACSB, Statistical charts and diagrams

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