Interpretation of Statistical Tests
Not what you're looking for?
1. The statement that the probability of a Type I error is 0.05 means
1) alpha = 0.05
2) The probability that we are wrong in our decision of rejecting the null hypothesis is 5%.
3) All of the above
4) We decide to reject the null hypothesis at the 0.05 level of significance.
2. A gambler has developed two strategies for betting in the game of blackjack. To test these strategies, he decides to go gambling on a casino boat. He plays five sessions of blackjack with each strategy, with each session consisting of 20 hands. He then records the profits of each session. Please note that a negative profit indicates a loss. The computer output used in this analysis is shown below. The goal of the gambler is to determine, if possible, which of the two betting strategies will result in a higher mean profit.
TWO-SAMPLE T TESTS FOR PROFIT BY STRATEGY
NULL HYPOTHESIS: DIFFERENCE = 0
ALTERNATIVE HYP: DIFFERENCE < 0
Which of the following interpretations of the 95% confidence interval given above is correct?
1) At the 95% confidence level, we cannot determine which of the two strategies results in a higher mean profit.
2) We are 95% confident that the mean profit gained using strategy 2 exceeds the mean profit gained using strategy 1.
3) Since the interval contains only negative values, we are 95% confident that the mean profit of both strategies is negative.
4) We are 95% confident that the mean profit gained using strategy 1 exceeds the mean profit gained using strategy 2.
Purchase this Solution
Solution Summary
This solution provides assistance with the hypothesis testing problems below.
Solution Preview
1. The statement that the probability of a Type I error is 0.05 means
Type I error is a "false positive": it is incorrectly rejecting the null hypothesis when it is actually true. It is symbolized by the symbol alpha. All three statements listed are true, so the answer is (3).
2. A gambler has developed two strategies for betting in the game of blackjack. To ...
Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.