BUS 204 Week 11 Quiz

BUS 204 Week 11 Quiz  | MiraCosta College

Question 1

Which of the following statements is true?

Alpha and beta are directly related such that when one is increased the other will increase also.  

The alternative hypothesis should contain the equality.  

Alpha represents the probability of making a Type II error.  

The decision maker controls the probability of making a Type I statistical error.

Question 2

If an economist wishes to determine whether there is evidence that average family income in a community near Seattle exceeds $125,000. An appropriate alternative hypothesis is:

μ ≤ 125,000. 

μ ≥ 125,000. 

μ = 125,000. 

μ > 125,000.

Question 3

A hypothesis test is to be conducted using an alpha = .01 level. This means:

there is a 99 percent chance that a Type II error has been committed.  

there is a 1 percent chance that the null hypothesis is true.  

there is a 1 percent chance that the alternative hypothesis is true.  

there is a maximum 1 percent chance that a true null hypothesis will be rejected.

Question 4

When testing a two-tailed hypothesis using a significance level of 0.05, a sample size of n = 16, and with the population standard deviation unknown, which of the following is true?

The alpha probability must be split in half and a rejection region must be formed on both sides of the sampling distribution.

The null hypothesis can be rejected if the sample mean gets too large or too small compared with the hypothesized mean.

The test statistic will be a t-value.  

All of the above are true.

Question 5

A two-tailed hypothesis test with α = 0.05 is similar to a 95 percent confidence interval.

True  

False

Question 6

When using the p-value method, the null hypothesis is rejected when the calculated p-value > α.

True

False

Question 7

When using the p-value method for a two-tailed hypothesis, the p-value is found by finding the area in the tail beyond the test statistic, then doubling it.

True  

False