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Quiz 1 Review Questions (SOLUTIONS)

DSCI 305

1. False. The standard deviation of the sample mean decreases as the sample size increases.

2. True.
3. True.
4. True.
5. True.
6. True.
7. True.

8. False. In order to use a z statistic the following conditions should be met: (i) The sample should be an
SRS. (ii) The population standard deviation is known. (ii) The sample size should be large if the
population is not Normal.

9. False. As the sample size increases, the variability of a t distribution gets smaller and converges to 1, and
eventually it becomes the standard normal distribution.

10. True.
11. True
12. (d)
13. (c)

14. (a) Other things being equal, the margin of error of a confidence interval, z *  n , decreases as the
sample size increases, the confidence level decreases, or the population standard deviation decreases.

15. (a) The probability that the test statistic will take a value at least as extreme as the sample statistic is
called the P-value of the test. Thus, a small P-value supports the alternative hypothesis, and we reject the
null hypothesis if the P-value is less than the significance level .

 6
16.  x    18.6,  x   1
n 36
 x   29.9  30 
17. P( x  29.9)  P     P( Z  2)  0.0228
  n 2 / 1600 

 x   1000  1026 
18. P( x  1000)  P     P( Z  1.21)  1  P( Z  1.21)  1  .1131  .8869
 n 152 50 

 90.14 90.86
1
19. x  z *  90.5  1.96
n 30
x   x 90.5  90
20. The test statistic z    2.74 , and the critical z at  = 5% is 1.645. Thus, we reject the
x 1 / 30
null hypothesis. P-value = P( Z  2.74)  1  .9969  0.0031 .

1
21. The test statistic is 2.74, and the critical z at  = 5% is 1.96. Thus, we still reject the null hypothesis. P-
value = P( Z  2.74)  2  (1  .9969)  2  0.0062 .

22. H0:  = 1250, Ha:  < 1250

x   1.53  1.5
23. The test statistic, z    3 and the P-value = 1 - .9987 = .0013.
 / n 0.1/ 100

s 4400
24. t *  2.704  1858
n 41

s 12
25. x  t *  64  2.093  [58.38 69.62]
n 20

x  x 64  60
26. The test statistic is t    1.49 , and the critical t at  = 5% with 19 degrees of freedom
s / n 12 / 20
is 1.729. Thus, we fail to reject the null hypothesis.

27. Let d be the mean difference of brand 1 minus brand 2. H0: d = 0, Ha: d < 0.

28. The critical t at  = 5% and d.f. = 11 is -1.796 (either from Table D or the Excel output shown below).

Decision rule: Reject the null hypothesis if the test statistic is smaller than -1.796. Note that the rejection
region is the lower (left) tail and the critical value in this case is negative.

29. Below is the output generated by the Excel Data Analysis. The t statistic is -1.142.

t-Test: Paired Two Sample for Means


t-Test: Paired Two Sample for
Means
Brand 1 Brand 2
Mean 31.24 31.34
Variance 1.43 1.74
Observations 12 12
Pearson Correlation 0.977
Hypothesized Mean Difference 0
df 11
t Stat -1.142
P(T<=t) one-tail 0.139
t Critical one-tail 1.796
P(T<=t) two-tail 0.278
t Critical two-tail 2.201

30. From the output, the P-value is 0.139 since the test is one-tailed.
2
31. We fail to reject the null since the test statistic greater than the critical value (-1.142 > -1.796) or the P-value
is greater than the significance level (0.139 > 0.05). There is no significant difference in times between the
two brands.

32. A 95% confidence interval for d is

  0.29 0.09
s 0.30
x  t*  0.10  2.201
n 12

Note that the critical value for the confidence interval is two-tailed.