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Performing a two-tailed test

Assignment:

QUESTION 1 The level of significance

can be any positive value

can be any value

is (1 - confidence level)

can be any value between -1.96 to 1.96

QUESTION 2 When the p-value is used for hypothesis testing, the null hypothesis is rejected if

p-value ≤ α

α < p-value

p-value ≥ α

p-value = 1 - α

QUESTION 3 When each data value in one sample is matched with a corresponding data value in another sample, the samples are known as

corresponding samples

matched samples

independent samples

None of these alternatives is correct.

QUESTION 4 What type of error occurs if you reject H0 when, in fact, it is true?

Type II

Type I

either Type I or Type II, depending on the level of significance

either Type I or Type II, depending on whether the test is one tail or two tail

QUESTION 5 The p-value is a probability that measures the support (or lack of support) for the

null hypothesis

alternative hypothesis

either the null or the alternative hypothesis

sample statistic

QUESTION 6 The power curve provides the probability of

correctly accepting the null hypothesis

incorrectly accepting the null hypothesis

correctly rejecting the alternative hypothesis

correctly rejecting the null hypothesis

QUESTION 7 A Type II error is committed when

a true alternative hypothesis is mistakenly rejected

a true null hypothesis is mistakenly rejected

the sample size has been too small

not enough information has been available

QUESTION 8 A two-tailed test is performed at 95% confidence. The p-value is determined to be 0.09. The null hypothesis

must be rejected

should not be rejected

could be rejected, depending on the sample size

has been designed incorrectly

QUESTION 9 Your investment executive claims that the average yearly rate of return on the stocks she recommends is at least 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is

H0: μ < 10.0% Ha: μ ≥ 10.0%

H0: μ ≤ 10.0% Ha: μ > 10.0%

H0: μ > 10.0% Ha: μ ≤ 10.0%

H0: μ ≥ 10.0% Ha: μ < 10.0%

QUESTION 10 For a two-tailed test at 98.4% confidence, Z =

1.96

1.14

2.41

0.8612

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