Chapter 8 The Comparison of Two Populations: True/False Questions

Chapter 8 The Comparison of Two Populations
True/False Questions 1. The only assumption required for the paired-difference test is that the population of differences is normally distributed. Answer: True Type: Concept Difficulty: Easy 2. You always state H first.
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Answer: True Type: Concept Difficulty: Easy 3. When testing for the difference between two population means taken from independent random samples, the two samples must be the same size. Answer: False Type: Concept Difficulty: Easy 4. The appropriate distribution when testing for the difference in two population means, assuming equal variances and small sample sizes is the t distribution. Answer: True Type: Concept Difficulty: Easy 5. When using the t distribution to test for a difference between two population means taken from independent samples the appropriate value for degrees of freedom is always (n1 + n2 -2). Answer: False Type: Concept Difficulty: Easy 6. H and H combined will always include all possible outcomes.
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Answer: True Type: Concept Difficulty: Easy 7. The F distribution is a symmetric distribution. Answer: False Type: Concept Difficulty: Medium 8. Sample sizes are considered large if at least one sample is at least 30. Answer: False Type: Concept Difficulty: Medium
Aczel, Complete Business Statistics, Sixth Edition

9. The two assumptions necessary to test for a difference in two population proportions are that the sample sizes are large and that the samples are independent random samples from the two populations. Answer: True Type: Concept Difficulty: Medium 10. The degrees of freedom for the paired-observation t-test are n - 2. Answer: False Type: Concept Difficulty: Medium 11. If the difference between two sample means is significant, then this is evidence that the two samples come from populations with equal means. Answer: False Type: Concept Difficulty: Medium 12. When the null hypothesis is not rejected, it is inferred that any difference in the two sample means, is due to sampling error, rather than a difference in the two populations. Answer: True Type: Concept Difficulty: Medium 13. When the sample evidence leads us to reject the null hypothesis that two population proportions are equal, then we can conclude that the two population proportions are significantly different. Answer: True Type: Concept Difficulty: Medium 14. In testing for a significant difference in two population proportions, at = .01, if the test statistic is 4.20, then the null hypothesis will not be rejected. Answer: False Type: Concept Difficulty: Medium 15. Paired observations are taken from two independent populations. Answer: False Type: Concept Difficulty: Medium

Multiple Choice Questions 16. When testing for the equality of two population means, using = 0.05 with n = 12
1
and n = 10, from independent samples, so long as the population variances can be
2
assumed equal, the critical values for t are: A) +2.704 and -2.704 B) +1.96 and -1.96 C) +2.086 and -2.086 D) +1.645 and -1.645 E) none of the above Answer: C Type: Computation Difficulty: Medium 17. To test whether or not two population variances are equal, the appropriate distribution is: A) z distribution B) chi-square distribution C) F distribution D) t distribution with n + n - 2 degrees of freedom
1 2
E) none of the above Answer: C Type: Concept Difficulty: Medium Use the following to answer question 18-22: A company made a major change in its advertising theme this year and is interested in knowing whether there is any significant increase in sales over last year. The following data is the sales in thousands for different stores over the country, and has been adjusted for inflation. Take the difference as (current year's sales - last year's sales). S to r e 1 2 3 4 5 6 7 8 L a s t Y e a r 's S a le s 183 406 388 694 274 137 33 1423 C u r r e n t Y e a r 's S a le s 206 528 678 601 258 170 31 1468

18. State the null and alternative hypotheses to test the hypothesis that the change in advertising has increased sales. A) H : > 0, H : 0
0 0 0 0 D D D D 1 D
B) H : 0, H : > 0
1 1 D D
C) H : 0, H : < 0 D) H : = 0, H : > 0
1 D
E) none of the above Answer: B Type: Computation Difficulty: Medium 19. Find the critical value to test the hypothesis that the change in advertising has increased sales, using = 0.05. A) z > 1.645 B) |z| > 1.96 C) |t| > 2.365 D) t > 1.895 E) none of the above Answer: D Type: Computation Difficulty: Medium 20. Compute the test statistic for this test. A) 1.116 B) 1.244 C) -1.116 D) -1.244 E) none of the above Answer: B Type: Computation Difficulty: Medium 21. If the decision for this test is to fail to reject the null hypothesis, what is the appropriate conclusion? A) the change in advertising did increase sales significantly B) sales have not changed at all from last year to this current year C) there is not sufficient evidence to indicate that the change in advertising increased sales D) sales have decreased from last year to this current year E) none of the above Answer: C Type: Concept Difficulty: Medium

22. Construct a 95% confidence interval for the average change in sales. A) 50.25 (2.365) (40.385) B) 50.25 (1.96) (40.385) C) 50.25 (1.895) (40.385) D) 50.25 (2.306) (40.385) E) none of the above Answer: A Type: Computation Difficulty: Medium Use the following to answer questions 23-25: An auto racing driver is given training and his timings on five different tracks are then measured. The times before and after training are given below. The differences are taken as before after.
T rack 1 2 3 4 5 B efo r e 226 706 559 975 280 A fte r 198 701 589 892 264
23. Compute the average difference, taking each difference as before after. A) 20.4 B) 102 C) 25.5 D) 32.4 E) none of the above Answer: A Type: Computation Difficulty: Easy 24. State the null hypothesis to test that the training was beneficial to this driver. A) H : = 0
0 0 0 0 D D D D
B) H : 0 C) H : > 0 D) H : 0 E) none of the above Answer: B Type: Concept Difficulty: Easy

25. Was the training beneficial to this driver, at = 0.01? A) Yes B) No Answer: B Type: Computation Difficulty: Medium Use the following to answer questions 26-29: A major educational testing service is evaluating the performance of its new automated essay grading system. Student essays are scanned into a computer-recognizable format and then evaluated by the computer program. The software will not be moved into second-level testing unless there is compelling evidence that it finds more grammatical errors than human graders. A random sample of 100 essays evaluated by the software was compared to a different sample of 100 essays evaluated by humans. Results were as follows: Evaluator Software Humans Sample Average 7.2 5.2 Sample Std.Dev. 1.738 1.627
It is assumed that both software grading (population 1) and human grading (population 2) are normally distributed, with equal population variances. 26. State the null and alternative hypotheses to test whether this software does pick out more errors. A) H : - 0, H : - > 0
0 0 0 0 1 1 1 1 2 2 2 2 1 1 2
B) H : - = 0, H : - 0
1 1 2
C) H : - 0, H : - < 0
1 1 2
D) H : - > 0, H : - 0
1 1 2
E) none of the above Answer: C Type: Concept Difficulty: Easy 27. Find the critical points to test whether this software does find more errors, at = 0.05. A) +1.96 B) +1.645 C) +1.282 D) +2.575 E) +2.33 Answer: B Type: Computation Difficulty: Easy

28. Compute the p-value for the test of this hypothesis. A) cannot compute from the information given B) about one-half C) very close to one D) very close to zero E) none of the above Answer: D Type: Computation Difficulty: Medium 29. Construct a 90% confidence interval for the average difference between the number of errors picked by the software and those found by human graders. A) 2 (1.96) (0.9552) B) 2 (2.33) (0.9552) C) 2 (1.645) (0.9552) D) 2 (1.28) (0.9552) E) none of the above Answer: C Type: Computation Difficulty: Medium 30. When testing for the equality of two population proportions, the F distribution is: A) sometimes appropriate B) never appropriate C) only appropriate if both sample sizes are less than 30 D) only appropriate if at least one sample is at least 30 E) used when the two variances are not equal Answer: B Type: Concept Difficulty: Medium Use the following to answer questions 31-35: The proportion of cars stolen that do not have a burglar alarm installed is 12% in a sample of 100 cars. The proportion of cars stolen that do have a burglar alarm installed is 8%, also in a sample of 100 cars. Assume cars with an alarm are population 1 and those without alarms are population 2.

31. State the null hypothesis to test the hypothesis that there is a difference in proportion of cars stolen with and without alarms. A) H : p - p = 0
0 0 0 0 0 1 1 1 1 1 2 2 2 2 2
B) H : p - p 0 C) H : p - p 0 D) H : p - p 0 E) H : p - p > 0 Answer: A Type: Concept Difficulty: Medium 32. Compute the p-value for this test of the hypothesis that there is a difference in proportion of cars stolen, with and without burglar alarms. A) 0.6554 B) 0.6528 C) 0.3472 D) 0.3264 E) 0.1736 Answer: C Type: Computation Difficulty: Hard 33. Find the critical value or values for the test of the hypothesis that there is a difference in the two proportions, at = 0.05. A) |z| > 1.96 B) |z| > 1.645 C) |z| > 2.33 D) z > 1.96 E) z < -1.645 Answer: A Type: Computation Difficulty: Medium 34. Construct a 90% confidence interval for the difference between the proportion of stolen cars with alarms and the proportion of stolen cars without alarms. A) 0.04 (1.28)*(0.0422) B) 0.04 (1.96)*(0.0422) C) 0.04 (2.575)*(0.0422) D) 0.04 (1.645)*(0.0422) E) 0.04 (1.96)*(0.0422) Answer: D Type: Computation Difficulty: Medium

35. If the decision on this hypothesis test is to reject the null hypothesis that the two proportions are equal, at = 0.10, the correct interpretation is: A) there is no evidence that there is a significant difference in the two proportions B) there is a significant difference in the two proportions C) cars without alarms are stolen twice as often as cars with alarms D) an alarm on a car will reduce the likelihood that it is stolen by 10% E) none of the above Answer: B Type: Concept Difficulty: Medium 36. Calculate the pooled variance for the following sample data.
S a m p le m e a n 40 30 S a m p le V a r ia n c e 10 12 S a m p le S iz e 12 15
A) B) C) D) E)
3.33 124.64 11.12 34.4 none of the above
Answer: C Type: Computation Difficulty: Medium Use the following to answer questions 37-39: A tire manufacturer claims that his tires last at least 1,500 miles more than his competitor's. Two independent samples of 10 tires each are subjected to wear and the average life of the company's tires is found to be 16,700 miles, with a standard deviation of 1,700 miles. The competitor's tires last a mean of 15,100 miles, with a standard deviation of 1,350 miles. 37. State the null hypothesis to test whether the manufacturer's claim is true. Assume that the manufacturer's tires are population 1 and the competitor's tires are population 2. A) H : - 1,500
0 0 0 0 0 1 1 1 1 1 2 2 2 2 2
B) H : - 0 C) H : - 1,500 D) H : - 0 E) H : - = 1,500 Answer: C Type: Concept Difficulty: Medium

38. Find the critical value or values to test the claim that the manufacturer's tires last on the average at least 1,500 more miles that the competitor's tires. Use = 0.05. A) 1.330 B) 1.734 C) 1.645 D) 2.101 E) 1.96 Answer: B Type: Computation Difficulty: Medium 39. Compute the test statistic for this test. A) 2.33 B) 9.16 C) 1.53 D) 0.146 E) none of the above Answer: D Type: Computation Difficulty: Hard 40. The average stock price of a particular company is $34 before a dividend is announced, for the last nine months, with a standard deviation of $2. After the dividend is announced, the average stock price is $37, with a standard deviation of $2.50 for the next nine months. State the null and alternative hypotheses to test whether this data provides evidence that a dividend release raises the stock price. Assume that population I is before the dividend release and population 2 is after. A) H : - > 0, H : - 0
0 0 0 0 0 1 1 1 1 1 2 2 2 2 2 1 1 1 1 1 1 2 2 2
B) H : - = 0, H : - 0 C) H : - < 0, H : - 0 D) H : - 0, H : - < 0
1 1 1 1 2 2
E) H : - 0, H : - > 0 Answer: D Type: Computation Difficulty: Medium 41. Using two independent samples, two population means are compared to determine if a difference exists. The number in the first sample is 15 and the number in the second sample is 12. How many degrees of freedom are associated with the critical t-value? A) 27 B) 26 C) 25 D) None of the above. Answer: C Type: Computation Difficulty: Medium
10 Aczel, Complete Business Statistics, Sixth Edition
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42. If a researcher is testing the difference in population mean before and after some experimental intervention, the use of the ___________ test will reduce the ___________ error rate without a corresponding increase in the risk of an inappropriately rejected null hypothesis. A) Paired-observation t; Type I B) Paired-observation t; Type II C) Independent-samples z; Type I D) Independent-samples z; Type II E) None of the above Answer: B Type: Concept Difficulty: Hard Use the following to answer questions 43-45: The rate of consumption of disposable tooling is a significant cost driver at a small manufacturing firm which employs 12 workers. Recently, on a trial basis the firm switched suppliers of its tooling and observed the following changes in rates of consumption across its employees: Monthly Consumption Old New 72 59 59 57 44 37 51 51 91 66 73 63 55 60 80 72 72 67 57 48 62 53 65 67
Employee Charles Caroline Emma Andrew Roy Colleen Edgar Gregory Janet Brenda Susan Michael
The firm will permanently switch suppliers only if it has substantial evidence ( = 0.05) that consumption is lower under the new supplier.
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43. What are the most appropriate null and alternate hypotheses for this scenario? A) H : 0; H : > 0
0 0 0 0 0 1 1 2 2 1 1 2
B) H : = 0; H : 0
1 1 2
C) H : D) H :
D D D
0; H : < 0
1 1 D D
0; H : < 0
1 D
E) H : = 0; H :
Answer: D Type: Concept Difficulty: Medium 44. What is an appropriate decision rule to use for hypothesis testing in this situation? A) Reject H if the observed t is less than -1.796
0 0 0 0 0
B) Reject H if the absolute value of the observed t is greater than 2.074 C) Reject H if the observed t is less than -2.200 D) Reject H if the absolute value of the observed z is greater than 1.96 E) Reject H if the absolute value of the observed z is less than -1.645 Answer: A Type: Computation Difficulty: Medium 45. Compute the test statistic for this test: A) t = -2.97 B) t = -1.42 C) t = -0.38 D) z = -0.96 E) z = -1.37 Answer: A Type: Computation Difficulty: Hard Use the following to answer questions 46-48: A manufacturing firm uses two different processes to evaluate the quality of incoming components of a particular class. In a recent test of the processes' effectiveness, a random sample was taken consisting of 5,000 components, 2,500 that had been evaluated by process A and 2,500 that had been evaluated by process B. Of the 2,500 that had been evaluated by process A, 87 had been misclassified. Process B generated 65 misclassifications in its sample. Assume that this evaluation was undertaken to determine if there is sufficient evidence to conclude that process B leads to a lower miscalculation rate. Assume also that is set at 0.05.
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46. Which of the following is the appropriate null hypothesis to test in this instance? A) H : p - p 0
0 0 0 0 A A A A B B B
B) H : p - p
0 0
C) H : p - p = 0 D) H : p p
B
E) None of the above Answer: A Type: Concept Difficulty: Medium 47. What is the appropriate critical value for the test statistic in this instance? A) Z < - 1.96 B) Z < - 1.645 C) Z > 2.33 D) Z > 1.96 E) Z > 1.645 Answer: E Type: Computation Difficulty: Medium 48. What is the p-value for the observed test statistic in this instance? A) 0.0351 B) 0.0708 C) 0.1401 D) 0.3085 E) 0.2266 Answer: A Type: Computation Difficulty: Hard 49. Before a researcher can proceed with hypothesis tests involving a potential difference in population means, she hopes to first establish that the two population variances are equal. In a random sample of 18 observations from each of populations 1 and 2, she observes sample variances of, respectively, 33 and 47. Given = 0.10, the critical lower and upper values for F are, respectively: A) F = 0.32, F = 3.10
LOWER LOWER LOWER LOWER LOWER UPPER UPPER UPPER UPPER UPPER
B) F C) F D) F E) F
= 0.37, F = 0.39, F = 0.44, F = 0.45, F
= 2.67 = 2.60 = 2.27 = 2.22
Answer: D Type: Computation Difficulty: Medium
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Short Answer Questions 50. Before selecting a method for studying whether two populations have different means, a researcher first assesses whether or not their variances are different. Suppose he randomly samples from each population and observes the following:
P o p u la tio n 1 P o p u la tio n 2 S a m p le S iz e (n ) 10 16 S a m p le S td . D e v . (s ) 7 .9 4 4 .7 9
State: A) Null and alternate hypotheses B) Critical values for the test statistic at = 0.10 C) The observed test statistic and a corresponding decision Answer: 2 2 2 2 A) H : = , H :
0 1 2 1 1
B) F C) F
LOWER
= 0.33, F
UPPER
= 2.59
0
OBSERVED
= 2.748; Reject H
Type: Computation Difficulty: Hard 51. Guests of a popular resort destination are given the opportunity to purchase memberships in a resort company's international condominium club. Management believes that guests who stay in oceanfront rooms are more inclined to purchase memberships than those who stay in marshview rooms. Suppose 100 oceanfront guests were randomly sampled and 36 of them purchased memberships. Out of 100 marshview guests, only 29 purchased memberships. Is this sufficient evidence to conclude (at = 0.05) that oceanfront guests are more likely to purchase memberships? Answer: No, given Z
crit
= 1.645 and Z
observed
= 1.06, this is not sufficient evidence to
conclude that the two populations differ in their rate of membership purchases Type: Computation Difficulty: Medium 52. Monthly travel and entertainment expenditures for a random sample of 16 top-level business executives were observed before and after an IRS ruling on the deductibility of certain business expenses. The average difference was $-123.20, with a standard deviation of $115.43. Does it appear the IRS ruling significantly (at = 0.05) affected these executives behavior? Answer: Yes, given |t
crit
| = 2.13 and an observed t of -4.27, we would reject a null
hypothesis of no difference and conclude there has been a change in behavior.

16 Aczel, Complete Business Statistics, Sixth Edition

Type: Computation Difficulty: Medium
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53. A survey was conducted to see if the proportion of men and women liking this brand of jeans differed. In a sample of 100 men and 90 women, 62 of the men liked the jeans, and 66 of the women liked the jeans. Conduct a test of the hypothesis that there is no difference in the proportions of men and women liking this brand of jeans. Assume = 0.05. Answer: z = -1.66, do not reject the null Type: Computation Difficulty: Hard 54. A soap manufacturer changes the color of the wrapper of the soap from red to green in the hope of increasing sales. The mean difference in sales over 30 stores is found to be $150 per month, with a standard deviation of $120. Find the p-value for this test of the hypothesis that the change in color of the wrapper has increased sales. Answer: p approximately 0 Type: Computation Difficulty: Medium 55. Two samples of 64 students each from two colleges in a city spend an average of $540 and $590, with standard deviations of $25 and $29 per month on their living expenses, respectively. State the null and alternative hypotheses to test the claim that the living expenses of the students are the same. Answer: H : - = 0, H : - 0 Type: Concept Difficulty: Medium
0 1 2 1 1 2
56. A commercial bank wants to lower the fluctuations in its deposit holdings and announces a minimum amount required to be held in its checking accounts. The variance in 16 of its accounts before the minimum limit was 2,500 dollars squared, and after the change it is 2025 dollars squared. Has the change in policy decreased the variance of account holdings? Assume = 0.05. Answer: F = 1.23, do not reject the null; no. Type: Computation Difficulty: Hard 57. Compute the p-value for a two-tailed test of the difference in two means, with both sample sizes at least 30, if the test statistic is z = 2.50. Answer: 0.0124 Type: Computation Difficulty: Medium 58. A survey was conducted to see if the proportion of men and women liking this brand of jeans differed. In a sample of 100 men and 90 women, 62 of the men liked the jeans, and 66 of the women liked the jeans. Construct a 95% confidence interval for the difference in the proportion of men and women liking these jeans. Answer: [-0.0186, +0.2452 Type: Computation Difficulty: Medium
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59. Two samples of 64 students each from two colleges in a city spend an average of $540 and $555, with standard deviations of $25 and $29 per month on their living expenses, respectively. Compute the p-value for this test of the hypothesis that the living expenses of these students are the same. Answer: 0.0018 Type: Computation Difficulty: Medium 60. A sample of seven students who were given a GMAT test before and after they took review classes had the following scores: S tu d en t 1 2 3 4 5 6 7 B e fo r e 500 610 430 480 440 550 690 A fte r 510 650 480 460 410 600 750
At an 0.01 level of significance, can we conclude that the instructional classes were helpful? Answer: t = 1.66, do not reject the null, no. Type: Computation Difficulty: Hard 61. Two control groups of 25 members each were given cigarettes with and without a special filter. Their physical condition was examined after one month by testing the time it took them to climb a certain flight of stairs. The mean time for the smokers with the filter was 25 seconds, with a standard deviation of 3 seconds, and the time for the smokers without the filter was 32 seconds, with a standard deviation of 2.5 seconds. Construct a 99% confidence interval for the mean difference in the time it takes the two groups to climb the stairs. Answer: [4.90, 9.09] Type: Computation Difficulty: Medium 62. In fifty different localities, the cable company gives free access to all cable channels for a weekend, as a promotional gesture. The mean proportion of customers who had the premium channels before the promotion was 20%. The mean proportion of customers who had the premium channels after the promotion was 26%. Is the increase significant at = 0.05? Answer: z = 0.71, do not reject the null, no. Type: Computation Difficulty: Hard
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63. Your company is interested in a new method of advertising. They test the new method in eleven markets with the following sales in thousands of dollars: $124; $157; $98; $190; $103; $135; $149; $176; $200; $180; and $256. Using the old method of advertising, these same markets had the following sales in thousands of dollars: $142; $158; $97; $212; $116; $135; $150; $184; $209; $180; and $269. Is the difference significant at = 0.05? Answer: t = 3.13529, P = .0106, reject the null hypothesis; the new procedure is better than the old. Type: Computation Difficulty: Medium 64. Your company is interested in a new method of advertising. In order to test the new method they have selected thirty-one control and thirty one experimental markets. Mean sales in the control markets were 134,630 with a standard deviation of 5,290. Mean sales in the control markets were 138,780 with a standard deviation of 5,730. At the 95% confidence level can you conclude that the new method is better than the old? Answer: Yes, Z = 2.95 Type: Computation Difficulty: Medium
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Chapter 8 The Comparison of Two Populations: True/False Questions

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Chapter 8 The Comparison of Two Populations

Aczel, Complete Business Statistics, Sixth Edition