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Business Statistics Study Set 1
Quiz 9: Introduction to Hypothesis Testing
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Question 41
True/False
When using the p-value method for a two-tailed hypothesis, the p-value is found by finding the area in the tail beyond the test statistic, then doubling it.
Question 42
True/False
When using the p-value method, the null hypothesis is rejected when the calculated p-value > α.
Question 43
True/False
A two-tailed hypothesis test is used when the null hypothesis looks like the following: H0 : = 100.
Question 44
True/False
A company that makes and markets a device that is aimed at helping people quit smoking claims that at least 70 percent of the people who have used the product have quit smoking. To test this, a random sample of n = 100 product users was selected. Of these, 65 people were found to have quit smoking. Given these results, the test statistic value is z = -1.0911.
Question 45
True/False
One claim states the IRS conducts audits for not more than 5 percent of total tax returns each year. In order to test this claim statistically, the appropriate null and alternative hypotheses are: H0 : μ ≤ 0.05 Ha : μ > 0.05
Question 46
True/False
A major package delivery company claims that at least 95 percent of the packages it delivers reach the destination on time. As part of the evidence in a lawsuit against the package company, a random sample of n = 200 packages was selected. A total of 188 of these packages were delivered on time. Using a significance level of .05, the test statistic for this test is approximately z = -0.65.
Question 47
True/False
When testing a hypothesis involving population proportions, an increase in sample size will result in a smaller chance of making a Type I statistical error.
Question 48
True/False
When deciding the null and alternative hypotheses, the rule of thumb is that if the claim contains the equality (e.g., at least, at most, no different from, etc.), the claim becomes the null hypothesis. If the claim does not contain the equality (e.g., less than, more than, different from), the claim is the alternative hypothesis.
Question 49
True/False
When the hypothesized proportion is close to 0.50, the spread in the sampling distribution of is greater than when the hypothesized proportion is close to 0.0 or 1.0.
Question 50
True/False
A cell phone company believes that 90 percent of their customers are satisfied. They survey a sample of n = 100 customers and find that 82 say they are satisfied. In calculating the standard error of the sampling distribution (σp) the proportion to use is 0.82.
Question 51
True/False
Aceco has a contract with a supplier to ship parts that contain no more than three percent defects. When a large shipment of parts comes in, Aceco samples n = 150. Based on the results of the sample, they either accept the shipment or reject it. If Aceco wants no more than a 0.10 chance of rejecting a good shipment, the cut-off between accepting and rejecting should be 0.0478 or 4.78 percent of the sample.
Question 52
True/False
The executive director of the United Way believes that more than 24 percent of the employees in the high-tech industry have made voluntary contributions to the United Way. In order to test this statistically, the appropriate null and alternative hypotheses are: H0 : ≤ .24 HA : > .24
Question 53
True/False
Lube-Tech is a major chain whose primary business is performing lube and oil changes for passenger vehicles. The national operations manager has stated in an industry newsletter that the mean number of miles between oil changes for all passenger cars exceeds 4,200 miles. To test this, an industry group has selected a random sample of 100 vehicles that have come into a lube shop and determined the number of miles since the last oil change and lube. The sample mean was 4,278 and the standard deviation was known to be 780 miles. Based on this information, the p-value for the hypothesis test is less than 0.10.
Question 54
True/False
Lube-Tech is a major chain whose primary business is performing lube and oil changes for passenger vehicles. The national operations manager has stated in an industry newsletter that the mean number of miles between oil changes for all passenger cars exceeds 4,200 miles. To test this, an industry group has selected a random sample of 100 vehicles that have come into a lube shop and determined the number of miles since the last oil change and lube. The sample mean was 4,278 and the sample standard deviation was 780 miles. Based on this information, the test statistic is approximately t = 1.000.
Question 55
True/False
Generally, it is possible to appropriately test a null and alternative hypotheses using the test statistic approach and reach a different conclusion than would be reached if the p-value approach were used.
Question 56
True/False
A company that makes and markets a device that is aimed at helping people quit smoking claims that at least 70 percent of the people who have used the product have quit smoking. To test this, a random sample of n = 100 product users was selected. The critical value for the hypothesis test using a significance level of 0.05 would be approximately -1.645.
Question 57
True/False
Lube-Tech is a major chain whose primary business is performing lube and oil changes for passenger vehicles. The national operations manager has stated in an industry newsletter that the mean number of miles between oil changes for all passenger cars exceeds 4,200 miles. To test this, an industry group has selected a random sample of 100 vehicles that have come into a lube shop and determined the number of miles since the last oil change and lube. The sample mean was 4,278 and the standard deviation was known to be 780 miles. Based on a significance level of 0.10, the critical value for the test is approximately z = 1.28.
Question 58
True/False
A major package delivery company claims that at least 95 percent of the packages it delivers reach the destination on time. As part of the evidence in a lawsuit against the package company, a random sample of n = 200 packages was selected. A total of 188 of these packages were delivered on time. Using a significance level of 0.05, the critical value for this hypothesis test is approximately 0.90.
Question 59
True/False
A cell phone company believes that 90 percent of its customers are satisfied with their service. They survey n = 30 customers. Based on this, it is acceptable to assume the sample distribution is normally distributed.