Stat 202 Quiz 2 Spring 2018

Student No:
Student Name:

1. The average cost of tuition, room and board at small private liberal arts colleges is reported
to be $8,500 per term, but a financial administrator believes that the average cost is higher. A
study conducted using 350 small liberal arts colleges showed that the average cost per term is
$8,745 with a standard deviation of $1,200. Let = 0.05. What is the p-value for this test?
A. 0.0000
B. 0.0124
C. 0.0500
D. 0.4938

2. Based on the above problem, what is our decision about the average cost?
A. Equal to $8,500
B. Greater than $8,500
C. Less than $8,500
D. Not equal to $8,500

3. Based on the above problem, write the H0 and H1 .

A. H0 = 8745 and H1 > 8745.
B. H0 ≥ 8500 and H1 <8745.
C. H0 = 8745 and H1 ≤ 8745.
D. H0 ≤8500 and H1 > 8500.

4. If the decision is to reject the null hypothesis of no difference between two population
proportions at the 5% level of significance, what are the alternative hypothesis and rejection
region?
A. H0: 1  2; z > 1.65 and z < -1.65
B. H0: 1  2; z > 1.96 and z < -1.96
C. H0: 1 > 2; z < - 1.65
D. H0: 1 > 2; z < -1.96F

5. A recent study focused on the number of times men and women send a Twitter message in
a day. The information is summarized below.

At the .01 significance level, is there a difference in the mean number of times men and
women send a Twitter message in a day? What is the value of the test statistic for this
hypothesis test?
A. 2.668
B. 2.672
C. 2.58
D. 2.40
6. Based on the above what is the p-value hypothesis test?
A. 0.05
B. 0.0164
C. 0.0001
D. 0.0082

7. Based on the above what is the decision and conclusion?

A. Reject the null hypothesis and conclude the means are different.
B. Reject the null hypothesis and conclude the means are the same.
C. Fail to reject the null hypothesis and conclude the means are the same.
D. Fail to reject the null hypothesis and conclude the means are different.

8. A national manufacturer of ball bearings is experimenting with two different processes for
producing precision ball bearings. It is important that the diameters be as close as possible to
an industry standard. The output from each process is sampled and the average error from the
industry standard is calculated. The results are presented below.

The researcher is interested in determining whether there is evidence that the two processes
yield different average errors. Assume that the population standard deviations are equal.
What is the null hypothesis?
A. H0: µA = µB
B. H0: µA  µB
C. H0: µA  µB
D. H0: µA > µB

9. Based on the above story what is the alternate hypothesis?

A. H0: µA = µB
B. H0: µA  µB
C. H0: µA  µB
D. H0: µA > µB

10. Based on the above story what is the critical t value at the 1% level of significance?
A. +2.779
B. -2.492
C. 1.711
D. 2.797

11. Based on the above story what is the computed value of t?

A. +2.797
B. -2.797
C. -13.70
D. +13.70
 12. A company is researching the effectiveness of a new web site design to decrease the time
to access a website. Five web site users were randomly selected and their times (in seconds) to
access the web site with the old and new designs were recorded. The results follow.

What is the value of the test statistic?

A. t = 4.341
B. z= 5.089
C. t = 2.340
D. z=4.412
E. t= 3.089.

13. Based on the above story, express your answer in terms of the null hypothesis.

A. Do not reject the null hypothesis; The time to access the new design is shorter.
B. Do not reject the null hypothesis; The time to access the new design is longer.
C. Reject the null hypothesis; The time to access the new design is shorter.
D. Reject the null hypothesis; The time to access the new design is not shorter.
E. None is correct.

14. Which of the following is / are correct?

A. Employees are tested before and after a training session to study the employee's
response to the training therefore dependent sample approach with t test can be used.
B. A property appraisal company hires two different property appraisers. To study the
consistency of the two appraisers, they are assigned the same 10 properties to appraise.
Their appraisals on each of the ten properties are compared using a paired-t test.
C. Mean returns of two stock exchange indices are tested therefore dependent sample
approach with t test can be used.
D. A and C are both correct.
E. A and B are both correct.

15. Which of following correctly defines the null hypothesis ?

A. The probability area for the validity of the null is relatively bigger than rejection area
because the null reflects our beliefs.
B. Probability of incorrectly rejecting a correct null is shown by significance level.
C. Probability of incorrectly not rejecting a false null is shown by significance level.
D. A and B are correct.
E. B and C are correct.

Each question carries 7 pts.