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B. Fail to reject the null hypothesis
Reject H0 at α = .05 so we conclude that the protocol increases test scores
Reject H0 if T+ ≤ T0 use T+ since we are looking for a shift of DB to the left of DA (that is the
test scores are going to improve)
T+ = 6.5 8 so we can reject the null hypothesis AACSB: Analytic Skills
Bloom's: Application
Difficulty: Hard
Learning Objective: 3
Topic: Signed Ranks test 11864 Chapter 01  An Introduction to Business Statistics 100. A readability analysis is conducted to determine how easy four different newspapers are
to read for the average citizen. The sample scores are below: Calculate H
A. 20.00
B. 14.95
C. 11.345
D. 12.06
N = 4*5 = 20
TA = 32.5, TB = 69.5, TC = 23, TD = 85
H = [12/(20*21)][(32.5)2/5 + (69.5)2/5 + (23)2/5 + (85)2/5]  3(21)
H = 14.95 AACSB: Analytic Skills
Bloom's: Application
Difficulty: Medium
Learning Objective: 4
Topic: KruskalWallis 11865 Chapter 01  An Introduction to Business Statistics 101. A readability analysis is conducted to determine how easy four different newspapers are
to read for the average citizen. The sample scores are below: At the
= .01 level of significance, test the claim that the four newspapers have the same
readability level.
A. Reject the null hypothesis
B. Fail to reject the null hypothesis
Reject H0 so for the four newspapers, at least two differ in their readability level.
H0: All newspapers have identical readability levels vs
HA: At least two of the newspapers differ in their location
χ2 for α = .01 with p = k1 = 41 = 3 degrees of freedom = 11.345
N = 4*5 = 20
H = [12/(20*21)][(32.5)2/5 + (69.5)2/5 + (23)2/5 + (85)2/5]  3(21)
H = 14.95
Reject null hypothesis if H > χ2 AACSB: Analytic Skills
Bloom's: Application
Difficulty: Medium
Learning Objective: 4
Topic: KruskalWallis 11866 Chapter 01  An Introduction to Business Statistics 102. For eight randomly selected states, the following table lists the per capita beer
consumption (in gallons) and the per capita wine consumption (in gallons) Calculate the rank correlation coefficient when beer consumption = x and wine consumption
=y
A. rs = .506
B. rs = .703
C. rs = .711
D. rs = .494 rs = 1  [6∑d2]/[n(n21) = 1  [6*42.5]/[8*63] = 1  .506 = .494 AACSB: Analytic Skills
Bloom's: Application
Difficulty: Medium
Learning Objective: 5
Topic: Rank correlation coefficient 11867 Chapter 01  An Introduction to Business Statistics 103. For eight randomly selected states, the following table lists the per capita beer
consumption (in gallons) and the per capita wine consumption (in gallons) Test H0: ps = 0 vs HA: ps > 0 for the relationship between beer consumption and wine
consumption at the state level at α = .05.
A. Reject the null hypothesis
B. Fail to reject the null hypothesis
Cannot reject the null hypothesis so we have no evidence of a significant relationship between
the amount of beer consumption per capita and the amount of wine consumption per capita
t = (.494 * √6)/ √.7559 = 1.392
t.025,6 = 2.447 Reject H0 if t > t.025,6 AACSB: Analytic Skills
Bloom's: Application
Difficulty: Hard
Learning Objective: 5
Topic: Rank correlation coefficient Chapter 19
Decision Theory
True / False Questions 1. The maximin criterion finds the best possible payoff for each alternative and then chooses
the alternative that yields the maximum payoff.
True False 2. A set of potential future conditions that will have an affect on the results of a decision is
called the states of nature.
True False 11868 Chapter 01  An Introduction to Business Statistics 3. The maximax criterion finds the worst possible payoff for each alternative and then chooses
the alternative that yields the maximum payoff.
True False 4. The maximin criterion finds the best possible payoff for each alternative and then chooses
the alternative that yields the maximum payoff.
True False 5. A tire manufacturer needs to make a decision about the amount of production for the
coming month (high vs. low). The level of production largely depends on the level of demand.
For this situation, the level of demand (high, medium, low) is the states of nature.
True False 6. Maximin is a criterion used when making decisions under certainty.
True False 11869 Chapter 01  An Introduction to Business Statistics 7. Maximax is a criterion used when making decisions under uncertainty.
True False 8. The maximin criterion is preferred by optimistic decisionmakers.
True False 9. When the maximin criterion is used, the decisionmaker assumes that for any alternative
action, the state of nature with the maximum payoff will take place.
True False 10. A decisionmaker's expected utility is based upon his/her attitude towards risk.
True False 11. The maximax criterion is preferred by pessimistic decisionmakers.
True False 12. The maximax criterion finds the best possible payoff for each alternative, and then
chooses the alternative that yields the maximum (best) possible payoff.
True False 13. The expected monetary valu...
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 Winter '14

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