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1. What is the primary...

1. What is the primary reason for applying a finite population correction coefficient?

A. When the sample is a very small portion of the population, the correction coefficient is required.

B. If you don't apply the correction coefficient, your confidence intervals will be too broad, and thus less useful in decision making.

C. If you don't apply the correction coefficient, your confidence intervals will be too narrow, and thus overconfident.

D. If you don't apply the correction coefficient, you won't have values to plug in for all the variables in the confidence interval formula.

2. A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said that the average price-earnings ratio was 20 for the many stocks that his firm had traded, but the portfolio manager felt that the figure was too high. He randomly selected a sample of 50 price-earnings ratios and

found a mean of 18.17 and a standard deviation of 4.60. Assume that the population is normally distributed, and test at the 0.01 level of significance. Which of the following is the correct decision rule for the manager to use in this situation?

A. Because 2.81 is greater than 2.33, reject H0. At the 0.01 level, the sample data suggest that the average price-earnings ratio for the stocks is less than 20.

B. Because –2.81 falls in the rejection region, reject H0. At the 0.01 level, the sample data suggest that the average priceearnings ratio for the stocks is less than 20.

C. If z > 2.33, reject H0. D. If t > 2.68 or if t < –2.68, reject H0.

3. When the confidence coefficient is large, which of the following is true?

A. The confidence interval is narrow. B. Its value is 1.0 or larger.

C. It's more likely that the test will lead you to reject the null hypothesis.

D. Its value is close to 1.0, but not larger than 1.0.

4. If a teacher wants to test her belief that more than five students in college classes typically receive A as a grade, she'll perform

A. one-tail testing of a proportion. B. one-tail testing of a mean.

C. two-tail testing of a proportion. D. two-tail testing of a mean.

5. For 1996, the U.S. Department of Agriculture estimated that American consumers would have eaten, on average, 2.6 pounds of cottage cheese throughout the course of that year. Based on a longitudinal study of 98 randomly selected people conducted during 1996, the National Center for Cottage Cheese Studies found an average cottage cheese consumption of 2.75 pounds and a standard deviation of s = 14 ounces. Given this information, which of the following statements would be correct concerning a two-tail test at the 0.05

level of significance?

A. We can conclude that we can't reject the claim that the average cottage cheese consumption in America is 2.6 pounds per person per year.

B. We can conclude that the average cottage cheese consumption in America is at least 0.705 pound more or less than 2.75 pounds per person per year.

C. We can conclude that the average cottage cheese consumption in America is actually 2.75 pounds per person per year.

D. We can conclude that the average cottage cheese consumption in America isn't 2.6 pounds per person per year.

6. Consider a null hypothesis stating that the population mean is equal to 52, with the research hypothesis that the population mean is not equal to 52. Assume we have collected 38 sample data from which we computed a sample mean of 53.67 and a sample standard deviation of 3.84. Further assume the sample

data appear approximately normal. What is the test statistic?

A. –2.68 B. –2.64 C. 2.64 D. 2.68

7. Consider a null hypothesis stating that the population mean is equal to 52, with the research hypothesis that the population mean is not equal to 52. Assume we have collected 38 sample data from which we computed a sample mean of 53.67 and a sample standard deviation of 3.84. Further assume the sample data appear approximately normal. What is the p-value you would report for this test?

A. 0.0037 B. 0.4963 C. 0.0041 D. 0.4959

8. Which of the following statements about hypothesis testing is false?

A. In both the one-tailed and two-tailed tests, the rejection region is one contiguous interval on the number line.

B. The rejection region is always given in units of standard deviations from the mean.

C. A Type I error is the chance that the researcher rejects the null hypothesis when in fact the null hypothesis is true.

D. The test will never confirm the null hypothesis, only fail to reject the null hypothesis.

A. When the sample is a very small portion of the population, the correction coefficient is required.

B. If you don't apply the correction coefficient, your confidence intervals will be too broad, and thus less useful in decision making.

C. If you don't apply the correction coefficient, your confidence intervals will be too narrow, and thus overconfident.

D. If you don't apply the correction coefficient, you won't have values to plug in for all the variables in the confidence interval formula.

2. A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said that the average price-earnings ratio was 20 for the many stocks that his firm had traded, but the portfolio manager felt that the figure was too high. He randomly selected a sample of 50 price-earnings ratios and

found a mean of 18.17 and a standard deviation of 4.60. Assume that the population is normally distributed, and test at the 0.01 level of significance. Which of the following is the correct decision rule for the manager to use in this situation?

A. Because 2.81 is greater than 2.33, reject H0. At the 0.01 level, the sample data suggest that the average price-earnings ratio for the stocks is less than 20.

B. Because –2.81 falls in the rejection region, reject H0. At the 0.01 level, the sample data suggest that the average priceearnings ratio for the stocks is less than 20.

C. If z > 2.33, reject H0. D. If t > 2.68 or if t < –2.68, reject H0.

3. When the confidence coefficient is large, which of the following is true?

A. The confidence interval is narrow. B. Its value is 1.0 or larger.

C. It's more likely that the test will lead you to reject the null hypothesis.

D. Its value is close to 1.0, but not larger than 1.0.

4. If a teacher wants to test her belief that more than five students in college classes typically receive A as a grade, she'll perform

A. one-tail testing of a proportion. B. one-tail testing of a mean.

C. two-tail testing of a proportion. D. two-tail testing of a mean.

5. For 1996, the U.S. Department of Agriculture estimated that American consumers would have eaten, on average, 2.6 pounds of cottage cheese throughout the course of that year. Based on a longitudinal study of 98 randomly selected people conducted during 1996, the National Center for Cottage Cheese Studies found an average cottage cheese consumption of 2.75 pounds and a standard deviation of s = 14 ounces. Given this information, which of the following statements would be correct concerning a two-tail test at the 0.05

level of significance?

A. We can conclude that we can't reject the claim that the average cottage cheese consumption in America is 2.6 pounds per person per year.

B. We can conclude that the average cottage cheese consumption in America is at least 0.705 pound more or less than 2.75 pounds per person per year.

C. We can conclude that the average cottage cheese consumption in America is actually 2.75 pounds per person per year.

D. We can conclude that the average cottage cheese consumption in America isn't 2.6 pounds per person per year.

6. Consider a null hypothesis stating that the population mean is equal to 52, with the research hypothesis that the population mean is not equal to 52. Assume we have collected 38 sample data from which we computed a sample mean of 53.67 and a sample standard deviation of 3.84. Further assume the sample

data appear approximately normal. What is the test statistic?

A. –2.68 B. –2.64 C. 2.64 D. 2.68

7. Consider a null hypothesis stating that the population mean is equal to 52, with the research hypothesis that the population mean is not equal to 52. Assume we have collected 38 sample data from which we computed a sample mean of 53.67 and a sample standard deviation of 3.84. Further assume the sample data appear approximately normal. What is the p-value you would report for this test?

A. 0.0037 B. 0.4963 C. 0.0041 D. 0.4959

8. Which of the following statements about hypothesis testing is false?

A. In both the one-tailed and two-tailed tests, the rejection region is one contiguous interval on the number line.

B. The rejection region is always given in units of standard deviations from the mean.

C. A Type I error is the chance that the researcher rejects the null hypothesis when in fact the null hypothesis is true.

D. The test will never confirm the null hypothesis, only fail to reject the null hypothesis.

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