1. A researcher wants to know if calcium is an effective treatment for lowering blood pressure. He assigns one randomly chosen group of subjects to take calcium supplements; the other group will get placebo. At the end of the treatment period, he measures the difference in blood pressure. The 50 members of the calcium group had blood pressure lowered by an average of 25 points with standard deviation 10 points. The 50 members of the placebo group had blood pressure lowered by an average of 15 points with standard deviation 8 points. To analyze this information we will use a
A. two-sample t procedure.
B. two-sample z procedure.
C. matched pairs procedure.
2. A bank is investigating ways to entice customers to charge more on their credit cards. (Banks earn a fee from the merchant on each purchase, and hope to collect interest from the customers as well). A bank selects a random group of customers who are told their "cash back" will increase from 1% to 2% for all charges above a certain dollar amount each month. Of the 500 customers who were told the increase applied to charges above $1000 each month, the average increase in spending was $527 with standard deviation $225. Of the 500 customers who were told the increase applied to charges above $2000 each month, the average increase in spending was $439 with standard deviation $189. When testing whether or not the increases in spending are different, the test is significant at
A. 5%.
B. 1%.
C. 0.5%.
3. The value of t* for a 95% confidence interval when there were 10 pieces of data is
A. 2.262.
B. 2.228.
C. 1.833.