FIN 3154 STATISTICAL ANALYSIS WITH SA
If the p-value is less than () in a two tail test,
Chapter 9: Fundamentals of Hypothesis
Testing: One-Sample Tests
Name: ____________________________________
Class Schedule: _____________ Date: __________
1. Which of the following would be an appropriate
null hypothesis?
a. The mean of the population is equal to
55.
b. The mean of a sample is equal to 55
c. The mean of a population is greater
than 55.
d. Only (a) and (c) are appropriate.
2. Which of the following would be an appropriate
alternative hypothesis?
a. The mean of a population is equal to
55.
b. The mean of a sample is equal to 55
c. The mean of the population is greater
than 55.
d. The mean of a sample is greater than
55.
3. A type II error is committed when.
a. You reject a null hypothesis that is true
b. You don’t reject a null hypothesis that is
true.
c. You reject a null hypothesis that is false
d. You don’t reject a null hypothesis that
is false.
4. A type I error is committed when.
a. You reject a null hypothesis that is true
b. You don’t reject a null hypothesis that is
true.
c. You reject a null hypothesis that is false
d. You don’t reject a null hypothesis that is
false.
5. The power of a test is measured by its capability
of
a. Rejecting a null hypothesis that is true
b. Not rejecting a null hypothesis that is
true.
c. Rejecting a null hypothesis that is false
d. Not rejecting a null hypothesis that is
false.
6. If an economist wishes to determine whether
there is evidence that mean family income in a
community exceeds $50,000.
a. Either a one-tail or two-tail test could
be used with equivalent results.
b. A one-tail test should be utilized.
c. A two-tail test should be utilized
d. None of the above
7. If an economist wishes to determine whether
there is evidence that mean family income in a
community is equals $50,000.
a. Either a one-tail or two-tail test could
be used with equivalent results.
b. A one-tail test should be utilized.
c. A two-tail test should be utilized
d. None of the above
8.
a. The null hypothesis should not be
rejected.
b. The null hypothesis should be rejected
c. A one-tail test should be used
d. No conclusion should be reached
9. If the test of hypothesis has a Type I error
probability () of 0.01, it means that
a. If the null hypothesis is true, you don’t
reject it 1% of the time.
b. If the null hypothesis is true, you reject
1% of the time
c. If the null hypothesis is false, you don’t
reject it 1% of the time.
d. If the null hypothesis is false, you reject
it 1% of the time
10. If the type I error () for a given test is to be
decreased, then for a fixed sample size n
a. The type II error () will also decrease
b. The type II error () will increase
c. The power of the test will increase
d. A one-tail test must be utilized
11. For a given sample size n, if the level of
significance (α) is decreased, the power of the
test
a. Will increase.
b. Will decrease.
c. Will remain the same.
d. Cannot be determined.
12. For a given level of significance (α), if the sample
size n is increased, the probability of a Type II
error (β)
a. Will decrease.
b. Will increase.
c. Will remain the same.
d. Cannot be determined.
13. If you know that the level of significance (α) of a
test is 5%, you can tell that the probability of
committing a Type II error (β) is
a. 2.5%.
b. 95%.
c. 97.5%.
d. Unknown
14. If you know that the probability of committing a
Type II error (β) is 5%, you can tell that the
power of the test is
a. 2.5%.
b. 95%.
c. 97.5%.
d. Unknown
15. The power of a statistical test is
a. The probability of not rejecting H0
when it is false.
b. The probability of rejecting H0 when it
is true.
c. The probability of not rejecting H0
when it is true.
d. The probability of rejecting H0 when it
is false.
16. The symbol for the power of a statistical test is
a. α.
b. 1 - α.
c. β.
d. 1 - β.
17. The symbol for the probability of committing a
Type I error of a statistical test is
a. α.
b. 1 - α.
c. β.
d. 1 – β
18. The symbol for the level of significance of a
statistical test is
a. α.
b. 1 - α.
c. β.
d. 1 - β.
19. The symbol for the probability of committing a
Type II error of a statistical test is
a. α.
b. 1 - α.
c. β.
d. 1 - β.
20. The symbol for the confidence coefficient of a
statistical test is
a. α.
b. 1 - α.
c. β.
d. 1 - β.
21. Suppose we wish to test H0 : μ ≤ 47 versus H1 :
μ > 47. What will result if we conclude that the
mean is greater than 47 when its true value is
really 52?
a. We have made a Type I error.
b. We have made a Type II error.
c. We have made a correct decision.
d. None of the above are correct.
22. You have created a 95% confidence interval for
 with the result 10 <  < 1. What decision will
you make if you test H0:
a. Reject H) in favor of H1
b. Do not reject H0 in favor of H1
c. Fail to reject H0 in favor of H1
d. We cannot tell what our decision will be
from the information given.