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Unformatted text preview: set and all of the values in the single set are ranked from smallest to
largest.
A. Wilcoxon Rank Sum
B. KruskalWallis
C. Wilcoxon signed rank
D. Sign Test AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 2
Topic: Rank Sum 58. The KruskalWallis H statistic can be approximated by the _____________ distritibution.
A. Normal
B. Chisquare
C. Z
D. t AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 4
Topic: KruskalWallis 11827 Chapter 01  An Introduction to Business Statistics 59. In order to perform the ________________ test, all of the observations in p samples are
combined into a single set and all of the values in the single set are ranked from smallest to
largest. After ranking, sum of the ranks for each of the p samples are calculated.
A. Wilcoxon Rank Sum
B. KruskalWallis
C. Wilcoxon signed rank
D. Sign Test AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 4
Topic: KruskalWallis 60. Waxcom Electronics Inc. claims that a certain circuit board has a median operating life of
less than 20,000 hours. A random sample of 25 such circuit boards showed 8 circuit boards
failing before 20,000 hours and 17 circuit boards failing after 20,000 hours.
Assume the useful life of the circuit board is not normally distributed and state the null
hypothesis.
A. H0: Md ≥ 20,000
B. H0: Md ≤ 20,000
C. H0: Md < 20,000
D. H0: Md ≠ 20,000
H0: Md ≥ 20,000, HA: Md < 20,000 AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 1
Topic: Sign Test 11828 Chapter 01  An Introduction to Business Statistics 61. Waxcom Electronics Inc. claims that a certain circuit board has a median operating life of
less than 20,000 hours. A random sample of 25 such circuit boards showed 8 circuit boards
failing before 20,000 hours and 17 circuit boards failing after 20,000 hours.
Assume the useful life of the circuit board is not normally distributed. At α = .05, can it be
concluded that the sample contradicts the claim of the company?
A. Reject the null hypothesis
B. Fail to reject the null hypothesis Since 1.6 > 1.645, failed to reject H0. It appears that the claim of the company is not correct.
The median operating life of the circuit board is not less then 20,000 hours. AACSB: Analytic Skills
Bloom's: Application
Difficulty: Medium
Learning Objective: 1
Topic: Sign Test 62. The EPA has stipulated that the PSI, "Pollution Standard Index" for clean air standards is
to be no more than 100 on the average. A random sample of 9 days for the city of Acorn
showed PSI readings of 144, 85, 90, 120, 150, 105, 93, 130 and 115.
The EPA wants to test to determine if Acorn's air is dirtier than the stipulated clean air
standards. Assume the population of PSI readings is highly nonnormal and state the null
hypothesis.
A. H0: Md ≥ 100
B. H0: Md ≤ 100
C. H0: Md ≠ 100
D. H0: Md > 100
H0: Md ≤ 100 or H0: Md = 100, HA: Md > 100 AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 1
Topic: Sign Test 11829 Chapter 01  An Introduction to Business Statistics 63. The EPA has stipulated that the PSI, "Pollution Standard Index" for clean air standards is
to be no more than 100 on the average. A random sample of 9 days for the city of Acorn
showed PSI readings of 144, 85, 90, 120, 150, 105, 93, 130 and 115.
Assume the population of PSI readings is highly nonnormal. Is there significant evidence to
conclude that Acorn's air is dirtier than the stipulated clean air standards? Test at α = .05.
A. Reject the null hypothesis
B. Fail to reject the null hypothesis
Failed to reject H0. No, Acorn's air is not dirtier than the stipulated clean air standards.
H0: Md ≤ 100 or H0: Md = 100, HA: Md > 100
Reject H0 if pvalue is < α
pvalue = P(X ≥ 6) = P(X = 6) + P(X = 7) + P(X = 8) + P(X = 9)
pvalue = .1641 + .0703 + . 0176 + .002 = .254
.254 > .05, failed to reject H0. AACSB: Analytic Skills
Bloom's: Application
Difficulty: Hard
Learning Objective: 1
Topic: Sign Test 64. The EPA has stipulated that the PSI, "Pollution Standard Index" for clean air standards is
to be no more than 100 on the average. A random sample of 9 days for the city of Acorn
showed PSI readings of 144, 85, 90, 120, 150, 105, 93, 130 and 115.
Assume the population of PSI readings is highly nonnormal. EPA wants to determine if there
is significant evidence to conclude that Acorn's air is dirtier than the stipulated clean air
standards. The test is conducted at α = .05 and the pvalue is found to be .254. Based on this
result, provide a one sentence managerial conclusion.
A. Acorn's air is dirtier than the EPA stipulated clean air standards.
B. Cannot conclude that Acorn's air is dirtier than the EPA stipulated clean air standards.
C. Acorn's air is better than the EPA stipulated clean air standards.
D. Acorn's air meets the EPA stipulated clean air standards.
Since .254 > .05, failed to reject H0 AACSB: Refl...
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 Winter '14

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