ch n Question 1 In conducting a hypothesis test where the conclusion is to rejec

Question

ch n

Question 1

In conducting a hypothesis test where the conclusion is to reject the null hypothesis, then either a correct decision has been made or else a Type I error.

               True

               False

Question 2

When the decision maker has control over the null and alternative hypotheses, the alternative hypotheses should be the "research" hypothesis.

               True

               False

Question 3

To calculate beta requires making a "what if" assumption about the true population parameter, where the "what-if" value is one that would cause the null hypothesis to be false.

               True

               False

Question 4

Choosing an alpha of 0.01 will cause beta to equal 0.99.

               True

               False

Question 5

Woof Chow Dog Food Company believes that it has a market share of 25 percent. It surveys n = 100 dog owners and ask whether or not Woof Chow is their regular brand of dog food, and 23 people say yes. Based upon this information, what is the critical value if the hypothesis is to be tested at the 0.05 level of significance?

               1.28

               1.96

               2.575

               1.645

Question 6

A hypothesis test is to be conducted using an alpha = .05 level. This means:

               there is a maximum 5 percent chance that a true null hypothesis will be rejected.

               there is a 5 percent chance that the null hypothesis is true.

               there is a 5 percent chance that a Type II error has been committed.

               there is a 5 percent chance that the alternative hypothesis is true.

Question 7

According to data from the Environmental Protection Agency, the average daily water consumption for a household of four people in the United States is approximately at least 243 gallons. (Source: http://www.catskillcenter.org/programs/csp/H20/Lesson3/house3.htm) Suppose a state agency plans to test this claim using an alpha level equal to 0.05 and a random sample of 100 households with four people.

Calculate the probability of committing a Type II error if the true population mean is 230 gallons. Assume that the population standard deviation is known to be 40 gallons.

               0.1412

               0.0331

               0.0537

               0.0712

Question 8

Waiters at Finegold's Restaurant and Lounge earn most of their income from tips. Each waiter is required to "tip-out" a portion of tips to the table bussers and hostesses. The manager has based the "tip-out" rate on the assumption that the mean tip is at least 15% of the customer bill. To make sure that this is the correct assumption, he has decided to conduct a test by randomly sampling 60 bills and recording the actual tips.

Calculate the probability of a Type II error if the true mean is 14%. Assume that the population standard deviation is known to be 2% and that a significance level equal to 0.01 will be used to conduct the hypothesis test.

               0.0606

               0.0041

               0.4123

               0.1251

Question 9

When someone is on trial for suspicion of committing a crime, the hypotheses are:

H0 : innocent

HA : guilty

Which of the following is correct?

               Type II error is convicting an innocent person.

               Type I error is convicting an innocent person.

               Type I error is acquitting a guilty person.

               Type II error is acquitting an innocent person.

Explanation / Answer

1. This answer is TRUE.

Reason: Type I error represents the situation of rejecting the null hypothesis when it is correct. Hence,

When we reject the null hypothesis, we can either make a correct decision or we can make type I error.

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