Discussion:
Q1. In order to test whether the mean IQ of employees in an organization is greater than 100, a sample of 35 employees is taken and the sample value of the computed test statistic, t_ = 3:5 The null and alternative hypotheses are:
A) H0: X = 100; Ha: X 6= 100.
B) H0: X _ 100; Ha: X > 100.
C) H0: µ = 100; Ha: µ 6= 100.
D) H0: µ _ 100; Ha: µ > 100.
Q2. In order to test whether the mean IQ of employees in an organization is greater than 100, a sample of 35 employees is taken and the sample value of the computed test statistic, t_ = 1:52, If you choose the level of significance as _ = 5%, you should
A) reject the null hypothesis and conclude that the population mean is equal to 100.
B) fail to reject the null hypothesis and conclude that the population mean is greater than 100.
C) fail to reject the null hypothesis and conclude that the population mean is not greater than 100.
D) reject the null hypothesis and conclude that the population mean is less than 100.
Q3. John is examining changes in estimated betas for the common stock of companies in a computer industry before and after deregulation. He believes that betas may decline because of deregulation since companies are no longer subject to the uncertainties of rate regulation or that they may increase because there is more uncertainties regarding competition in the industry. He has the following collected information from a sample with 39 entries,
1. mean of difference in betas (before deregulation- after deregulation): 0:23
2. standard error of the mean of dfference in beta is 0.0224
Complete the following problems.
a.. Formulate the corresponding Hypotheses
b. Conduct the hypothesis testing at the level of significance _ = 0:05 by the critical value or p-value approach and draw your conclusion(s)
c. Conduct the corresponding test at 95% confidence by p-value approach, according to the following information
For a sample with 81 elements, we have s2 = 625; Ho :σ2= 500; Ha : σ2 ≠ 500
Q4. John has the following hypotheses about the average price about stocks in telecommunication industry this year.
Ho : μ= $28; Ha : μ≠ $28.
The population standard deviation is assumed known as _ σ= $6 and John has a sample of 100 stocks. Under 5% level of significance,
What 's the probability of accepting H0 when _μ = $26?
What 's the power of this test? What does it mean?