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MCQs: Hypothesis Testing

1. Of the following ordinary words, which one is most closely associated with the meaning of a hypothesis?
a. trial
b. decision
c. outcome
d. assumption

2. The appropriate null hypothesis for an upper-tail test to determine if mean body weight of all the men who have joined a health club exceeds 185 pounds would be
a. HO: m = 185 lb.
b. HO: m > 185 lb.
c. HO: m £ 185 lb
d. HO: m ¹ 185 lb

3. The test statistic that is used to test hypotheses about the mean when a small sample is involved follows a _________ distribution.
a. t
b. z
c. chi-square
d. binomial

Use the following scenario for questions 4 - 6

Easy Eye, Inc. manufactures adult sunglasses of all types. The company's management is not sure whether to target the next promotional campaign primarily toward men or women and has asked the research team to determine whether the market for sunglasses is split in half. A study is conducted at various cooperating stores selling sunglasses scattered throughout the market area. In a random sample of 300 adult purchasers of sunglasses, 141 were men.

4. If p is the proportion of adult sunglass purchasers who are men, what is the appropriate null hypothesis for Easy Eye, Inc. to test?
a. H0: p = 0.5
b. H0: p ¹ 0.5
c. H0: p ³ 0.5
d. H0: p £ 0.5

5. What is the value of the test statistic?
a. -0.06
b. -0.50
c. -1.04
d. -2.54

6. Based on the data and at a = 0.05, what can Easy Eye's management conclude?
a. An equal proportion of men and women are buying sunglasses in the market area.
b. A greater proportion of women buy sunglasses than do men in the market area.
c. A greater proportion of men buy sunglasses than do women in the market area.
d. There is not an equal proportion of men and women buying sunglasses in the market area.

7. Sherry Weinstein, a buyer, has decided that she will spend an extra \$7 per shirt for the next 10,000 T-shirts she buys for her chain of stores only if the vendor of the more expensive shirt can show conclusive evidence that its shirt can withstand at least 20 more times in the wash without fading. The vendor elected to set m1 as the mean number of washes without fading for the more expensive shirt. An appropriate null hypothesis for the vendor to test is
a. H0: m1 - m2 £ 20.
b. H0: m1 - m2 < 20
c. H0: m1 - m2 > 20.
d. H0: m1 - m2 £ 0

8. The technique that is used to determine if more than two population means are equal by analyzing the variation in the data is known as
a. chi-square.
b. analysis of variance.
c. correlation analysis.
d. least squares regression.

9. . The least squares method finds the equation of the line that __________ the __________ of the squared deviations between the points and the line.
a. maximizes, sum
b. minimizes, product
c. minimizes, sum
d. maximizes, product

10. A linear regression between Y and X produced the following equation for the least squares line:
= 2.15 - 3.2x
Which of the following statements concerning this relationship is true?
a. For every one-unit increase in X, Y increases 3.2 units.
b. For every one-unit increase in Y, X decreases 3.2 units.
c. For every one-unit increase in X, Y decreases 3.2 units.
d. For every one-unit increase in Y, X increases 3.2 units.

11. Horace Mann, principal of Jones Public School, has decided to construct a time series model to obtain a 2- and a 3-period moving average to forecast student enrollments for next term. Which statement is true concerning the accuracy of each forecast that Horace will obtain?
a. The 2-period forecast will be more accurate than the 3-period forecast.
b. The 3-period forecast will be more accurate than the 2-period forecast.
c. Both forecasts will be equally accurate.
d. Either forecast could be more accurate than the other.