Deck 19: More About Tests and Intervals

Question 1

Answer 1

B

Question 2

A psychologist claims that more than 2.2% of the population suffers from professional problems due to extreme shyness.Identify the Type II in this context.

A)The error of accepting the claim that the true proportion is more than 2.2% when it really is more than 2.2%.
B)The error of rejecting the claim that the true proportion is more than 2.2% when it really is more than 2.2%.
C)The error of rejecting the claim that the true proportion is at most 2.2% when it really is at most 2.2%.
D)The error of failing to reject the claim that the true proportion is at most 2.2% when it is actually more than 2.2%.
E)The error of failing to accept the claim that the true proportion is at most 2.2% when it is actually more than 2.2%.

Answer 2

D

Question 3

Insurance companies track life expectancy information to assist in determining the cost of life insurance policies.Last year the average life expectancy of all policyholders was 77
Years.ABI Insurance wants to determine if their clients now have a longer life expectancy,
On average, so they randomly sample some of their recently paid policies.The insurance
Company will only change their premium structure if there is evidence that people who buy
Their policies are living longer than before.Which of the following statement is true about
This hypothesis test?

A)It is a one tailed test about a mean.
B)It is a one tailed test about a proportion.
C)It is a two tailed test about a mean.
D)It is a two tailed test about a proportion.

Answer 3

A

Question 4

Question 5

A company that sells eco-friendly cleaning products is concerned that only 19.5% of people who use such products select their brand.A marketing director suggests that the company
Invest in new advertising and labeling to strengthen its green image.The company decides to
Do so in a test market so that the effectiveness of the marketing campaign may be evaluated.
In this context, committing a Type I error
I)Occurs when they conclude that the percentage of customers purchasing the company's
Brand has increased when in fact it has not.
II)Occurs then they conclude that the percentage of customers purchasing the company's
Brand has not increased when in fact it has.
III)Would result in the company wasting money on a new marketing campaign that does not
Increase the percentage of customers buying their brand.

A)I only
B)II only
C)III only
D)Both I and III

Question 6

Question 7

Question 8

Question 9

Question 10

Top management of a large multinational corporation wants to create a culture of innovativeness and change.A consultant hired to assess the company's organizational culture
Finds that only 15% of employees are open to new ideas and approaches toward their work.
Consequently, the company conducts a program for employees in order to reinforce the new
Corporate philosophy.After the program is completed, employees are surveyed to see if a
Greater percentage is now open to innovativeness and change.The correct alternative
Hypothesis is

Question 11

Question 12

Question 13

Question 14

Which of the following would increase the power of a test? I.Increase the sample size
II)Decrease the significance level
III)Increase alpha

A)I only
B)II only
C)III only
D)I and II
E)I and III

Question 15

Question 16

Question 17

Top management of a large multinational corporation wants to create a culture of innovativeness and change.A consultant hired to assess the company's organizational culture
Finds that only 15% of employees are open to new ideas and approaches toward their work.
Consequently, the company conducts a program for employees in order to reinforce the new
Corporate philosophy.After the program is completed, employees are surveyed to see if a
Greater percentage is now open to innovativeness and change.Suppose that based on the
Sample results the company rejects the null hypothesis when in fact it is true.Which of the
Following statements is correct?

A)This led to the conclusion that the percentage of employees open to new ideas did not increase when in fact it did.
B)This led to the conclusion that the percentage of employees open to new ideas did increase when in fact it did not.
C)This is known as a fatal error.
D)This is known as a Type II error.