Chapter 9: Statistical Inference Hypothesis Testing

CHAPTER NINE
Statistical Inference:
Hypothesis Testing for Single Populations
B
1.
Hypothesis testing is derived from the mathematical notion of

_______.
M
Term
A.
B.
C.
D.
The first step in testing a hypothesis is to establish _______.
2.
E
Term
A.
B.
C.
D.
direct proof
indirect proof
margin of error
infinity
an not rejectance hypothesis and a rejection hypothesis

a power function
a null hypothesis and alternative hypothesis
an indirect hypothesis
227
228 Test Bank

B
3. In testing hypotheses, the researcher initially assumes that the
_______.
E
Term
A.
B.
C.
D.
Consider the following null and alternative hypotheses.

Ho: 7
4.
alternative hypothesis is true.

null hypothesis is true
errors cannot be made
the population parameter of interest is known
H a: > 6
These hypotheses _______________.
E
App
A.
B.
C.
D.
5.
are not mutually exclusive

are not collectively exhaustive
do not reference a population parameter
are established correctly

Ho: 7
H a: > 7
E
App
A.
B.
C.
D.
6.


Ho: 7
H a: < 6
E
App
A.
B.
C.
D.

7.
Chapter 9: Statistical Inference: Hypothesis Testing for Single

Populations 229
Ho: 78
Ha: < 81
E
App
A.
B.
C.
D.
8.
E
App

Ho: x 352
Ha: x > 352
A.
B.
C.
D.
9.



0.61
Ho: p
> 0.61
H a: p
E
App
A.
B.
C.
D.

Ho: P 0.39
Ha: P > 0.39
10.
E
App
A.
B.
C.
D.


230 Test Bank

C 11. Consider the following null and alternative hypotheses.
Ho: S 558
Ha: S < 558
E
App
A.
B.
C.
D.

D 12.

Ho: 2 35
Ha: 2< 35
E
App
A.
B.
C.
D.
D 13.
The region of the distribution in hypothesis testing in which the

null hypothesis is rejected is called the _______.
E
Term
A.
B.
C.
D.
The rejection and not rejectance regions are divided by a point

called the _______.
14.

not rejectance region

null region
alternative region
rejection region
E
Term
A.
B.
C.
D.
The portion of the distribution which is not in the rejection region

is called the _______.
15.
E
Term
A
16.
dividing point
critical value
rejection value
not rejectance value
A. tolerable region
B. not rejectance region
C. null region
D. alternative region
The probability of committing a Type I error is called _______.

Populations 231
E
Term
A.
B.
C.
D.
The probability of committing a Type I error is called _______.
17.
the level of significance

beta
the power of the test
reliability
E
Term
A.
B.
C.
D.
In statistical hypothesis testing, another name for is _______.
18.
E
Term
A.
B.
C.
D.
When a null hypothesis is rejected, the probability of committing

a Type II error is _______.
19.
level of significance
power
beta
Type II error probability
0
1-
M
Term
A.
B.
C.
D.
When a true null hypothesis is rejected, the researcher has made

a _______.
20.
M
Term
A.
B.
C.
D.
When a false null hypothesis is rejected, the researcher has

made a _______.
21.
M
Term
A.
B.
C.
D.
Type II error
Type I error
sampling error
powerful error
Type II error
Type I error
correct decision
powerful error
232
A
Test Bank
22.
When a researcher fails to reject a false null hypothesis, a ______

error has been committed.
M
Term
A.
B.
C.
D.
When a researcher fails to reject a null hypothesis, the

probability of a Type I error is ________.
23.
Type II error
Type I error
sampling error
powerful error
0
1-
M
Term
A.
B.
C.
D.
The probability of committing a Type II error is represented by

_______.
24.
1-
/2
M
Term
A.
B.
C.
D.
Power is equal to _______.
25.
M
Term
A.
B.
C.
D.

Ho: 67
26.
1-if the null hypothesis is true

if the null hypothesis is false
1- if the null hypothesis is false
if the null hypothesis is true
Ha: > 67
E
App
A.
B.
C.
D.
indicate a one-tailed test with a rejection area in the right tail

indicate a one-tailed test with a rejection area in the left tail
indicate a two-tailed test
are established incorrectly
27.

Populations 233
Ho: 67
Ha: < 67
E
App
A.
B.
C.
D.

Ho: = 67
28.

Ha: 67
E
App
A.
B.
C.
D.

Ho: P 0.16
Ha: P > 0.16
29.

E
App
A.
B.
C.
D.

Ho: P 0.16
Ha: P < 0.16
30.
E
App
A.
B.
C.
D.


234 Test Bank

C 31. Consider the following null and alternative hypotheses.
Ho: P = 0.16
Ha: P 0.16
E
App
A.
B.
C.
D.
Whenever hypotheses are established such that the alternative

hypothesis is ">", then this would be a _______.
32.

E
Term
A.
B.
C.
D.
Whenever hypotheses are established such that the alternative

hypothesis is "not equal to", then this would be a _______ test.
33.
two-tailed test
one-tailed test
Type II test
Type I test
E
Term
A.
B.
C.
D.
If, in testing hypotheses, the researcher uses a method in which

the probability of the calculated statistic is compared to alpha to
reach a decision, the researcher is using the _______.
34.
two-tailed
one-tailed
Type II
Type I
E
Term
A.
B.
C.
D.
Suppose the alternative hypothesis in a hypothesis test is "the

population mean is greater than 65". If the sample size is 50 and
alpha =.05, the critical value of Z is _______.
35.
M
Calc
A.
B.
C.
D.
probability method
critical value method
Z value method
statistical method
1.645
-1.645
1.96
-1.96
36.

Populations 235
population mean is less than 60". If the sample size is 50 and
alpha =.05, the critical value of Z is _______.
M
Calc
A.
B.
C.
D.

population mean is greater than 60". If the sample size is 80 and
alpha = .01, the critical value of Z is _______.
37.
M
Calc
D 38.
1.645
-1.645
1.96
-1.96
A. 2.575
B. -2.575
C. 2.33
D. -2.33
In a two-tailed hypothesis about a population mean with a
sample size of 100 and alpha = 0.10, the rejection region would
be _______.
E
Calc
A.
B.
C.
D.
In a two-tailed hypothesis about a population mean with a

sample size of 100 and alpha = 0.05, the rejection region would
be _______.
39.
Z>1.64
Z>1.28
Z<-1.28 and Z>1.28
Z<-1.64 and Z>1.64
E
Calc
A.
B.
C.
D.
Suppose you are testing the null hypothesis that a population

mean is less than or equal to 80, against the alternative
hypothesis that the population mean is greater than 80. If the
sample size is 49 and alpha = .10, the critical value of Z is
_______.
40.
M
Calc
Z>1.64
Z>1.96
Z<-1.96 and Z>1.96
Z<-1.64 and Z>1.64
A. 1.645
B. -1.645
C. 1.28
236
A
Test Bank
D. -1.28
41.

hypothesis that the population mean is greater than 80. If the
sample size is 49 and alpha =.05, the critical value of Z is
_______.
M
Calc
A.
B.
C.
D.

hypothesis that the population mean is greater than 80. The
sample size is 49 and alpha =.05. If the sample mean is 84 and
the sample standard deviation is 14, the calculated Z value is
_______.
42.
1.645
-1.645
1.96
-1.96
M
Calc
A.
B.
C.
D.

mean is greater than or equal to 60, against the alternative
hypothesis that the population mean is less than 60. The
sample size is 64 and =.05. If the sample mean is 58 and the
sample standard deviation is 16, the calculated Z value is
_______.
43.
2
-2
14
-14
M
Calc
A.
B.
C.
D.
Suppose a researcher is testing a null hypothesis that = 61. A

random sample of n = 36 is taken resulting in a sample mean of
63 and S=9. The calculated Z value is _______.
44.
M
Calc
A.
B.
C.
D.
-1
1
-8
8
-0.22
0.22
1.33
8
45.

Populations 237
A researcher is testing a hypothesis of a single mean. The critical
Z value for =.05 and a one-tailed test is 1.645. The calculated
Z value from sample data is 1.13. The decision made by the
researcher based on this information is to ______ the null
hypothesis.
M
App
A.
B.
C.
D.

Z value for =.05 and a two-tailed test is +1.96. The calculated
Z value from sample data is -1.85. The decision made by the
researcher based on this information is to _____ the null
hypothesis.
46.
reject
not reject
redefine
change the alternate hypothesis into
M
App
A.
B.
C.
D.

Z value from sample data is 2.85. The decision made by the
hypothesis.
47.
reject
not reject
redefine
M
App
A.
B.
C.
D.

hypothesis.
48.
M
App
A.
B.
C.
D.
reject
not reject
redefine
reject
not reject
redefine
238 Test Bank

A 49. A researcher is testing a hypothesis of a single mean. The critical
Z value for = .01 and a one-tailed test is -2.33. The calculated
researcher based on this information is to _________ the null
hypothesis.
M
App
A.
B.
C.
D.
A researcher has a theory that the average age of managers in a

particular industry is over 35-years-old, and he wishes to prove
this. The null hypothesis to conduct a statistical test on this
theory would be ____________.
50.
reject
not reject
redefine
M
App
A.
B.
C.
D.
the population mean is < 35

the population mean is > 35
the population mean is = 35
the population mean is > 35
D 51.
A company produces an item that is supposed to have a six inch

hole punched in the center. A quality control inspector is
concerned that the machine which punches the hole is
"out-of-control" (hole is too large or too small). In an effort to
test this, the inspector is going to gather a sample punched by
the machine and measure the diameter of the hole. The
alternative hypothesis used to statistical test to determine if the
machine is out-of-control is
M
BApp
A.
B.
C.
D.
D 52.
Jennifer Cantu, VP of Customer Services at Tri-State Auto

Insurance, Inc., monitors the claims processing time of the
claims division. Her standard includes "a mean processing time
of 5 days or less." Each week, her staff checks for compliance
by analyzing a random sample of 60 claims. Jennifer's null
hypothesis is ________.
E
BApp
A. > 5
B. > 5
C. n = 60
the mean diameter is > 6 inches

the mean diameter is < 6 inches
the mean diameter is = 6 inches
the mean diameter is not equal to 6 inches

Populations 239
D. 5
A
53.
E
BApp
54.

claims division. Her standard includes "a mean processing time
of 5 days or less." Each week, her staff checks for compliance
by analyzing a random sample of 60 claims. Jennifer's
alternative hypothesis is ________.
A. > 5
B. 5
C. n = 60
D. 5
claims division. Each week, her staff randomly selects a sample
of 60 claims and tests the null hypothesis that the "mean
processing time is 5 days or less." Jennifer chooses a 0.05 level
of significance, the critical Z value is _____.
E
BCalc
A.
B.
C.
D.

processing time is 5 days or less." Jennifer chooses a 0.01 level
of significance, the critical Z value is _____.
55.
E
BCalc
A.
B.
C.
D.
1.96
-1.96
1.645
-1.645
-2.33
2.33
-2.58
2.58
240 Test Bank

C 56. Jennifer Cantu, VP of Customer Services at Tri-State Auto
processing time is 5 days or less" using a 0.10 level of
significance. Last week the sample mean and standard
deviation were 5.2 days and 0.56 days, respectively. The
calculated Z value is _____.
M
BCalc
A.
B.
C.
D.
D 57.

appropriate decision is _____.
H
BCalc
A.
B.
C.
D.

appropriate decision is _____.
58.
H
BCalc
A.
B.
C.
D.
0.36
1.28
2.86
2.91
reduce the sample size

increase the sample size
do not reject the null hypothesis
reject the null hypothesis

59.

Populations 241
Restaurateur Denny Valentine is evaluating the feasibility of
opening a restaurant in Richmond. The Chamber of Commerce
estimates that "Richmond families, on the average, dine out at
least 3 evenings per week." Denny plans to test this hypothesis
using a random sample of 81 Richmond families. His null
hypothesis is __________.
3
3
n = 81
<3
E
BApp
A.
B.
C.
D.

using a random sample of 81 Richmond families. His alternative
hypothesis is __________.
60.
3
<3
<3
n = 81
E
BApp
A.
B.
C.
D.

at the 0.05 level of significance using a random sample of 81
Richmond families. The critical Z value is __________.
61.
E
BCalc
A.
B.
C.
D.
-1.645
1.645
-1.96
1.96
242 Test Bank

C 62. Restaurateur Denny Valentine is evaluating the feasibility of
at the 0.01 level of significance using a random sample of 81
Richmond families. The critical Z value is __________.
E
BCalc
A.
B.
C.
D.

at the 0.01 level of significance. His random sample of 81
Richmond families produced a mean and a standard deviation of
2.7 and 0.9 evenings per week, respectively. The calculated Z
value is __________.
63.
-2.58
2.58
-2.33
2.33
M
BCalc
A.
B.
C.
D.

2.7 and 0.9 evenings per week, respectively. The appropriate
decision is __________.
64.
H
BCalc
A.
B.
C.
D.
-3.00
3.00
-0.33
0.33

65.

Populations 243
2.7 and 1.8 evenings per week, respectively. The calculated Z
value is __________.
M
BCalc
A.
B.
C.
D.

66.
1.50
-1.50
0.17
-0.17
H
BCalc
A.
B.
C.
D.

67.
H
BCalc
A.
B.
C.
D.


244 Test Bank

B 68. When the rod shearing process at Stockton Steel is "in control" it
produces rods with a mean length of 120 inches. Periodically,
quality control inspectors select a random sample of 36 rods. If
the mean length of sampled rods is too long or too short, the
shearing process is shut down. The null hypothesis is _________.
E
BApp
A.
B.
C.
D.
When the rod shearing process at Stockton Steel is "in control" it

shearing process is shut down. The alternative hypothesis is
_________.
69.
n = 36
= 120
120
n 36
E
BApp
A.
B.
C.
D.
n = 36
= 120
120
n 36
D 70.

shearing process is shut down. Sarah Shum, Director of Quality
Programs, chose a 0.05 level of significance for this test. The
critical Z values are _________.
E
BCalc
A.
B.
C.
D.
-1.645 and 1.645

-1.75 and 1.75
-2.33 and 2.33
-1.96 and 1.96
71.

Populations 245
shearing process is shut down. Sarah Shum, Director of Quality
Programs, chose a 0.10 level of significance for this test. The
critical Z values are _________.
E
BCalc
A.
B.
C.
D.

shearing process is shut down. The last sample showed a mean
and standard deviation of 120.5 and 1.2 inches, respectively.
Using = 0.05, the calculated Z value is _________.
72.
-1.645 and 1.645

-1.75 and 1.75
-2.33 and 2.33
-1.96 and 1.96
M
BCalc
A.
B.
C.
D.

Using = 0.05, the appropriate decision is _________.
73.
H
BCalc
0.42
-0.42
2.50
-2.50
A. do not reject the null hypothesis and shut down the process
B. do not reject the null hypothesis and do not shut down the
process
C. reject the null hypothesis and shut down the process
D. reject the null hypothesis and do not shut down the process
246 Test Bank

B 74. When the rod shearing process at Stockton Steel is "in control" it
Using = 0.05, the appropriate decision is _________.
H
BCalc
A. do not reject the null hypothesis and shut down the process
B. do not reject the null hypothesis and do not shut down the
process
C. reject the null hypothesis and shut down the process
D. reject the null hypothesis and do not shut down the process
In performing a hypothesis test where the null hypothesis is that

the population mean is 23 against the alternative hypothesis
that the population mean is not equal to 23, a random sample of
17 items is selected. The sample mean is 24.6 and the sample
standard deviation is 3.3. It can be assumed that the population
is normally distributed. The degrees of freedom associated with
this are _______.
75.
E
Calc
A.
B.
C.
D.

the population mean is 4.8 against the alternative hypothesis
that the population mean is not equal to 4.8, a random sample
of 25 items is selected. The sample mean is 4.1 and the sample
is normally distributed. The degrees of freedom associated with
this are _______.
76.
E
Calc
A.
B.
C.
D.
17
16
15
2
25
24
26
2
77.

Populations 247
is normally distributed. The level of significance is selected to
be 0.10. The table "t" value for this problem is _______.
E
Calc
A.
B.
C.
D.

is normally distributed. The computed "t" value for this problem
is _______.
78.
1.318
1.711
2.492
2.797
E
Calc
A.
B.
C.
D.

is normally distributed. The computed "t" value for this problem
is _______.
79.
M
Calc
A.
B.
C.
D.
-12.5
12.5
-2.5
-0.7
0.05
0.20
0.33
1.33
248 Test Bank

D 80. In performing a hypothesis test where the null hypothesis is that
is normally distributed. The level of significance is selected as
0.05. The table "t" value for this problem is _______.
E
Calc
A.
B.
C.
D.

is normally distributed. The level of significance is selected as
0.05. The decision rule for this problem is to reject the null
hypothesis if the computed "t" value is _______.
81.
1.753
2.947
2.120
2.131
M
Calc
A.
B.
C.
D.
The diameter of 3.5 inch diskettes is normally distributed.

Periodically, quality control inspectors at Dallas Diskettes
randomly select a sample of 16 diskettes. If the mean diameter
of the diskettes is too large or too small the diskette punch is
shut down for adjustment; otherwise, the punching process
continues. The null hypothesis is _______.
82.
E
BApp
A.
B.
C.
D.
less than -2.131 or greater than 2.131

n 16
n = 16
= 3.5
3.5
83.

Populations 249
continues. The last sample showed a mean and standard
deviation of 3.49 and 0.08 inches, respectively. Using = 0.05,
the critical "t" values are _______.
E
BCalc
A.
B.
C.
D.
D 84.

the appropriate decision is _______.
H
BCalc
A.
B.
C.
D.

85.
H
BCalc
-2.120 and 2.120

-2.131 and 2.131
-1.753 and 1.753
-1.746 and 1.746
reject the null hypothesis and shut down the punch

reject the null hypothesis and do not shut down the punch
do not reject the null hypothesis and shut down the punch
do not reject the null hypothesis and do shut down the punch
A. reject the null hypothesis and shut down the punch

B. reject the null hypothesis and do not shut down the punch
C. do not reject the null hypothesis and shut down the punch
D. do not reject the null hypothesis and do not shut down the
punch
250 Test Bank

C 86. In performing hypothesis test about the population mean, the
population standard deviation should be used if it is known. If it
is not known, for large samples it can be approximated by
_______.
E
Term
A.
B.
C.
D.
In performing hypothesis test about the population mean, the

population standard deviation should be used if it is known. If it
is not known, it can be approximated by the sample standard
deviation if _______.
87.
the sample mean

the sample size
the sample standard deviation
the population variance
M
Term
A.
B.
C.
D.
A political scientist wants to prove that a candidate is currently

carrying more than 60% of the vote in the state. She has her
assistants randomly sample 200 eligible voters in the state by
telephone and only 90 declare that they support her candidate.
The calculated Z value for this problem is _______.
88.
the sample size is at least thirty

the sample is random
the population mean is known
the alpha is less than 0.10
M
Calc
A.
B.
C.
D.
A company believes that it controls more than 30% of the total

market share for one of its products. To prove this belief, a
random sample of 144 purchases of this product are contacted.
It is found that 50 of the 144 purchased this company's brand of
the product. If a researcher wants to conduct a statistical test for
this problem, the alternative hypothesis would be _______.
89.
M
BApp
A.
B.
C.
D.
-4.33
4.33
0.45
-.31
the population proportion is less than 0.30

the population proportion is greater than 0.30
the population proportion is not equal to 0.30
the population mean is less than 40
D 90.

Populations 251
this problem, the calculated Z value would be _______.
M
BCalc
A.
B.
C.
D.

this problem, the test would be _______.
91.
0.05
0.103
0.35
1.24
E
BApp
A.
B.
C.
D.
Ophelia O'Brien, VP of Consumer Credit of American First Banks

(AFB), monitors the default rate on personal loans at the AFB
member banks. One of her standard's is "no more than 5% of
personal loans should be in default." On each Friday, the default
rate is calculated for a sample of 500 personal loans. Last
Friday's sample contained 30 defaulted loans. Ophelia's null
hypothesis is _______.
92.
E
BApp
A.
B.
C.
D.
a one-tailed test
a two-tailed test
an alpha test
a finite population test
P > 0.05
P 0.05
n = 30
n = 500
252 Test Bank

C 93. Ophelia O'Brien, VP of Consumer Credit of American First Banks
Friday's sample contained 30 defaulted loans. Using = 0.10,
the critical Z value is _______.
E
BCalc
A.
B.
C.
D.

the calculated Z value is _______.
94.
1.645
-1.645
1.28
-1.28
M
BCalc
A.
B.
C.
D.
1.03
-1.03
0.046
-0.046
D 95.

H
BCalc
A.
B.
C.
D.

96.

Populations 253
H
BCalc
A.
B.
C.
D.
The executives of CareFree Insurance, Inc. feel that "a majority

of our employees perceive a participatory management style at
CareFree." A random sample of 200 CareFree employees is
selected to test this hypothesis at the 0.05 level of significance.
Eighty employees rate the management as participatory. The
null hypothesis is __________.
97.

E
BApp
A.
B.
C.
D.

critical Z value is __________.
98.
E
BCalc
A.
B.
C.
D.
n = 30
n = 200
P 0.50
P < 0.50
-1.645
1.645
-1.96
1.96
254 Test Bank

B 99. The executives of CareFree Insurance, Inc. feel that "a majority
appropriate decision is __________.
H
BCalc
A.
B.
C.
D.

A 100.

Ninety employees rate the management as participatory. The
appropriate decision is __________.
H
BCalc
A.
B.
C.
D.
D 101.
Elwin Osbourne, CIO at GFS, Inc., suspects that at least 25% of

e-mail messages sent by GFS employees are not business
related. A random sample of 300 e-mail messages was selected
to test this hypothesis at the 0.01 level of significance. Fifty-four
of the messages were not business related. The null hypothesis
is ____.
E
BApp
A.
B.
C.
D.
A 102.

of the messages were not business related. The critical Z value
is ____.
E
BApp
A.
B. -1.96

= 30
n = 300
P < 0.25
P 0.25

Populations 255
C. 1.96
D. 2.57
C 103.

of the messages were not business related. The appropriate
decision is _______.
E
BApp
A.
B.
C.
D.
C 104.

to test this hypothesis at the 0.01 level of significance. Sixty of
the messages were not business related. The appropriate
decision is _______.
E
BApp
A.
B.
C.
D.
A 105.
A two tailed hypothesis test about the mean is performed. The

calculated Z value is 1.78. If alpha = 0.05, the correct decision
would be _______.
M
Calc
A.
B.
C.
D.
B 106.
A two tailed hypothesis test about the mean is performed. The

calculated Z value is 1.78. If alpha = 0.10, the correct decision
would be _______.
M
Calc
A.
B.
C.
D.

gather more data

gather more data

take a larger sample
get a new calculator

take a larger sample
get a new calculator
256
Test Bank
C 107.

Populations 257
A null hypothesis was rejected at the 0.10 level of significance.
It the level of significance were changed to 0.05 and the same
sample results were obtained, what decision should be made?
M
App
A.
B.
C.
D.

cannot be determined without further information
all of the above
B 108.
A null hypothesis was not rejected at the 0.10 level of

significance. It the level of significance were changed to 0.05
and the same sample results were obtained, what decision
should be made?
M
App
A.
B.
C.
D.
B 109.
What happens to the rejection region if the level of significance

is changed from 0.10 to 0.05?
E
App
A.
B.
C.
D.
A 110.
What happens to the rejection region if the level of significance

is changed from 0.05 to 0.10?
E
App
A.
B.
C.
D.
D 111.
A null hypothesis is P > 0.65. To test this hypothesis, a sample

of 400 is taken and alpha is set at 0.05. If the true proportion is
P = 0.60, what is the probability of a type II error?
H
Calc
A.
B.
C.
D.

cannot be determined without further information
all of the above
it gets larger
it gets smaller
it does not change
all of the above
it gets larger
it gets smaller
it does not change
all of the above
0.17
0.45
0.95
0.67
258 Test Bank

D 112. Discrete Components, Inc. manufactures a line of electrical
resistors. Presently, the carbon composition line is producing
100 ohm resistors. The population variance of these resistors
"must not exceed 4" to conform to industry standards.
Periodically, the quality control inspectors check for conformity
by randomly select 10 resistors from the line, and calculating the
sample variance. The last sample had a variance of 4.36. Using
= 0.05, the null hypothesis is _________________.
= 100
10
S2 4
2 4
E
BApp
A.
B.
C.
D.
B 113.
Discrete Components, Inc. manufactures a line of electrical

= 0.05, the critical value of chi-square is _________________.
E
BCalc
A.
B.
C.
D.
D 114.

= 0.05, the calculated value of chi-square is _________________.
E
BCalc
A.
B.
C.
D.
18.31
16.92
3.94
3.33
1.74
1.94
10.90
9.81
D 115.

Populations 259
= 0.05, the appropriate decision is _________________.
H
BCalc
A.
B.
C.
D.

B 116.
David Desreumaux, VP of Human Resources of American First

Banks (AFB), is reviewing the employee training programs of AFB
banks. Based on a recent census of personnel, David knows that
the variance of teller training time in the Southeast region is 8,
and he wonders if the variance in the Southwest region is the
same number. His staff randomly selected personnel files for 15
tellers in the Southwest Region,anddeterminedthattheirmeantraining
timewas25hoursandthatthestandarddeviationwas4hours.Using=0.10,
thenullhypothesisis________.
E
BApp
A. = 25
B.2 = 8
C.2 = 4
D.2 8
B 117.

thecriticalvaluesofchisquareare________.
M
BCalc
A.7.96and26.30
B.6.57and23.68
C.1.96and1.96
D.1.645and1.645
260
Test Bank
A 118.

thecalculatedvalueofchisquareis________.
E
BCalc
A.28.00
B.30.00
C.56.00
D.60.00
D 119.

theappropriatedecisionis________.
H
BCalc
A.increasethesamplesize
B.reducethesamplesize
C.donotrejectthenullhypothesis
D.rejectthenullhypothesis
120.
M
BApp

Populations 261
The last operation on the 'dry line' at Canine Delights is a
semiautomatic bag filling step. The dry line mixes, shapes,
dries, and bags the five dry dog foods (one at a time) in Canine
Delights' product line. Each of the five mixes is offered in 4
different sizes (5, 10, 15, and 25 pounds). When the bag filling
machine is properly adjusted, the mean weight of the filled bags
equals the advertised weight. Even so, the weight varies from
bag to bag.
Discuss statistical procedures for controlling the bag filling
operation. Other than improper adjustment of the machine,
what factors may account for the variability of the bags weights,
or for an upward (downward) drift in the mean bag weight?
What are the consequences of significantly overfilling
(underfilling) the bags?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
262
Test Bank
121. Carlos Cavazos, Director of Human Resources, is developing
plans for an employee morale 'barometer.' First, he plans to
measure the current morale level to use as a benchmark. Then,
periodic (possibly monthly) measurements will be taken to track
increases (decreases). His primary measuring instrument will be
several 5-point scaled items (1 = totally depressed, 5 = it
doesn't get any better than this). Carlos believes that, after the
bugs are worked out, the system will allow management to
assess the impact of managerial actions on employee morale.
M
BApp
Describe the statistical methods which will be useful to Carlos,

during the design and implementation of the morale barometer.
What are the limitations of this system? What factors affect
employee morale?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
122.

Populations 263
Alan Lessoff, VP of Marketing at CyberWarehouse, Inc. (CWI),
wants to know what makes a good web site for online shoppers.
What design factors of a web site increase repeat visits by web
shoppers? Color schemes? Graphics? Animations? Audio?
Organization of pages? Ease of navigation? Opinion polls? Email feedback?
Representatives of Web Shoppe Designs (WSD) claim that their
team knows, and offer Alan a test trial of their design. Alan is
inclined to accept the offer since it would be hosted, at no
expense to CWI, on WSD's servers during the trial period.
Alan has accumulated an extensive database of demographic
data, and frequency of visits of repeat visitors to CWI web sites.
The WSD representatives will collect comparable data during the
trial period.
M
BApp
Describe the statistical methods which will be useful to Alan at

the conclusion of the trial period.
264
Test Bank
123. Online financial brokerages continue go grow with the Internet.
CyberMarkets, Inc. (CMI) advises e-commerce businesses on
their marketing strategies.
Addalie McMinn, VP of Research at CMI, expects increasingly
intense competition between online brokerages for new
customers as the industry matures. She wants to learn more
about the customers of online brokerages; she wants to
understand "what makes them tick," so she can advise CMI
clients how to compete more successfully. What factors do these
investors use to choose one broker over another? Transaction
costs? Basic service characteristics such as fast order execution,
and timely, well-organized statements? Free tie-in services such
as an address book, a calendar service, and links to favorite web
sites for gifts.
Should Addalie segment the customer population? Are all
factors equally important for all market segments? Does age
matter? Does gender matter? Does profession matter?
Addalie has accumulated an extensive database of on traditional
full-service brokerage customers. She plans to use summary
measures from the database as benchmarks for comparisons
with online customers.
M
BApp
Describe the statistical methods that will be useful to Addalie

during the study.

Populations 265

Chapter 9: Statistical Inference Hypothesis Testing

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Chapter 9: Statistical Inference Hypothesis Testing

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CHAPTER NINE

Hypothesis testing is derived from the mathematical notion of

The first step in testing a hypothesis is to establish _______.

an not rejectance hypothesis and a rejection hypothesis

228 Test Bank

Consider the following null and alternative hypotheses.

alternative hypothesis is true.

are not mutually exclusive

Consider the following null and alternative hypotheses.

are not mutually exclusive

Consider the following null and alternative hypotheses.

are not mutually exclusive