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    Multiple choice questions on testing of hypothesis

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    1.The power of a test is measured by its capability of
    a. rejecting a null hypothesis that is true.
    b. not rejecting a null hypothesis that is true.
    c. rejecting a null hypothesis that is false.
    d. not rejecting a null hypothesis that is false.

    2. If an economist wishes to determine whether there is evidence that average family income in a community exceeds $25,000, then
    a. either a one-tailed or two-tailed test could be used with equivalent results.
    b. a one-tailed test should be utilized.
    c. a two-tailed test should be utilized.
    d. None of the above.

    3. If the Type I error (alpha) for a given test is to be decreased, then for a fixed sample size n:
    a. the Type II error ( beta) will also decrease.
    b. the Type II error (beta) will also increase.
    c. the power of the test will increase.
    d. a one-tailed test must be utilized.

    4. Given the following information, calculate the degrees of freedom that should be used in the pooled-variance t test.
    s12 = 4 s22 = 6
    n1 = 16 n2 = 25
    a. df = 41
    b. df = 39
    c. df = 16
    d. df = 25

    5. When testing H0: µ1 -µ2 greater than or equal to 0 versus H1: µ1 -µ2 < 0, the observed value of the Z-score was found to be -2.13. The p value for this test would be:
    a. 0.0166.
    b. 0.0332
    c. 0.9668
    d. 0.9834

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    Solution Preview

    1.The power of a test is measured by its capability of
    a. rejecting a null hypothesis that is true.
    b. not rejecting a null hypothesis that is true.
    c. rejecting a null hypothesis that is false.
    d. not rejecting a null hypothesis that is false.

    Answer :c. rejecting a null hypothesis that is false.

    The power of a test = (1 minus the magnitude of type II error)
    We make a Type II error when we accept a null hypothesis that is false

    2. If an economist wishes to determine whether there is evidence that average family income in a ...

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