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STATISTICS FOR BUSINESS

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EDITON BY LIND MARCHAL
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Student: ___________________________________________________________________________
1. i. If the null hypothesis states that there is no difference between the mean
income of males and the mean income of females, then the test is one-tailed.
ii. If we are testing for the difference between two population means, it is assumed
that the sample observations from one population are independent of the sample
observations from the other population.
iii. If we are testing for the difference between two population means, it is assumed
that the two populations are approximately normal and have equal variances.
A. (i), (ii), and (iii) are all correct statements.

B. (i) and (ii) are correct statements but not (iii).

C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

2. i. If the null hypothesis states that there is no difference between the mean
income of males and the mean income of females, then the test is one-tailed.
ii. If we are testing for the difference between two population means, it is assumed
that the sample observations from one population are independent of the sample
observations from the other population.
iii. When sample sizes are less than 30, a test for the differences between two
population means has n - 1 degrees of freedom.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

3. i. If we are testing for the difference between two population means, it is

assumed that the sample observations from one population are independent of the
sample observations from the other population.
ii. If we are testing for the difference between two population means, it is assumed
that the two populations are approximately normal and have equal variances.
iii. When sample sizes are less than 30, a test for the differences between two
population means has n - 1 degrees of freedom.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

4. i. If we are testing for the difference between two population means, it is

assumed that the sample observations from one population are independent of the
sample observations from the other population.
ii. If we are testing for the difference between two population means, it is assumed
that the two populations are approximately normal and have equal variances.
iii. The critical value of t for a two-tail test of the difference of two means, a level of
significance of 0.10 and sample sizes of seven and fifteen, is 1.734.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

5. i. If the null hypothesis states that there is no difference between the mean
income of males and the mean income of females, then the test is one-tailed.
ii. If we are testing for the difference between two population means, it is assumed
that the sample observations from one population are independent of the sample
observations from the other population.
iii. The critical value of t for the claim that the difference of two means is less than
zero with a level of significance of 0.025 and sample sizes of nine and seven, is
-2.179.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

6. If the null hypothesis that two means are equal is true, 97% of the computed zvalues will lie between what two values?
A. 2.58
B. 2.33
C. 2.17
D. 2.07

7. 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.

Ball Bearings
Hypothesis Test: Independent Groups (t-test, pooled variance)

What is the decision at the 1% level of significance?

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. Using two independent samples, two population means are compared to

determine if a difference exists. The number in the first sample is fifteen and the
number in the second sample is twelve. How many degrees of freedom are
associated with the critical value?
A. 24
B. 25
C. 26
D. 27

9. Administering the same test to a group of 15 students and a second group of 15

students to see which group scores higher is an example of:
A. a one sample test of means.
B. a two sample test of means.
C. a paired t-test.
D. a test of proportions.

10. What is the critical value for a one-tailed hypothesis test in which a null
hypothesis is tested at the 5% level of significance based on two samples, both
sample sizes are 13?
A. 1.708
B. 1.711
C. 2.060
D. 2.064

11. If two samples are used in a hypothesis test for which the combined degrees of
freedom is 24, which one of the following CANNOT be true about the two sample
sizes?
A. Sample A = 11; Sample B = 13
B. Sample A = 12; Sample B = 14
C. Sample A = 13; Sample B = 13
D. Sample A = 10; Sample B = 16

12. If two samples are used in a hypothesis test for which the combined degrees of
freedom is 27, which one of the following might be true about the two sample sizes?
A. Sample A = 14; Sample B = 13
B. Sample A = 12; Sample B = 13
C. Sample A = 15; Sample B = 14
D. Sample A = 20; Sample B = 8

13. The net weights of a sample of bottles filled by a machine manufactured by

Edne, and the net weights of a sample filled by a similar machine manufactured by
Orno, Inc., are (in grams):

Testing the claim at the 0.05 level the mean weight of the bottles filled by the Orno
machine is greater than the mean weight of the bottles filled by the Edne machine,
what is the critical value?
A. -1.96
B. -2.837
C. -6.271
D. +3.674
E. +1.782

14. Which of the following conditions must be met to conduct a test for the
difference in two sample means?
A. Data must be at least of interval scale.
B. Populations must be normal.
C. Variances in the two populations must be equal.
D. Populations must be normal, the variances must be equal and the two samples
must be unrelated, that is, independent.

15. 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. Given the following MegaStat printout,
what analysis and decision can be made?

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 at the 1% level of significance.
D. Fail to reject the null hypothesis at the 5% level of significance and conclude the
means are different.

16. 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.
What is the null hypothesis?
A. A - B = 0
B. A - B 0
C. A - B 0
D. A - B > 0

17. 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.
What is the alternate hypothesis?
A. A - B = 0

B. A - B 0
C. A - B 0
D. A - B > 0

18. 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.
There are how many degrees of freedom?
A. 10
B. 13
C. 26
D. 24

19. 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.
What is the critical t value at the 1% level of significance?
A. +2.779
B. -2.492

C. 1.711
D. 2.797

20. 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.
What is the computed value of t?
A. +2.797
B. -2.797
C. -13.905
D. +13.70

21. 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.
What is the decision at the 1% level of significance?
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.

22. 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 calculated t to be +2.70; what is the decision at the 0.01 level of
significance?
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.

23. 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.
This example is what type of test?
A. One sample test of means.
B. Two sample test of means.
C. Paired t-test.
D. Test of proportions.

24. The results of a mathematics placement exam at Mercy College for two
campuses are as follows:

What is the null hypothesis if we want to test the hypothesis that the mean score on
Campus 1 is higher than on Campus 2?
A. 1 = 0
B. 2 = 0
C. 1 = 2
D. 1 > 2
E. 1 - 2 0

25. The results of a mathematics placement exam at Mercy College for two
campuses are as follows:

What is the computed value of the test statistic?

A. 9.3
B. 2.6
C. 3.4
D. 1.9

26. The results of a mathematics placement exam at Mercy College for two
campuses are as follows:

What is the p-value if the computed test statistic is 4.1?

A. 1.0
B. 0.0
C. 0.05
D. 0.95

27. The results of a mathematics placement exam at Mercy College for two
campuses are as follows:

If you were to use MegaStat to assist in your solution to this problem, which test
would you use?
A. Mean vs. Hypothesized value.
B. Compare two independent groups.
C. Paired observations.
D. Proportion vs. Hypothesized value.
E. Compare two independent proportions.
F. Chi-square variance test.

28. i. A committee studying employer-employee relations proposed that each

employee would rate his or her immediate supervisor and in turn the supervisor
would rate each employee. To find reactions regarding the proposal, 120 office
personnel and 160 plant personnel were selected at random. Seventy-eight of the
office personnel and 90 of the plant personnel were in favour of the proposal.
Computed z = 1.48. At the 0.05 level, it was concluded that there is sufficient
evidence to support the belief that the proportion of office personnel in favour of the
proposal is greater than that of the plant personnel.
ii. We use the pooled estimate of the proportion in testing the difference between
two population proportions.
iii. The pooled estimate of the proportion is found by dividing the total number of
samples by the total number of successes.
A. (i), (ii), and (iii) are all false statements.
B. (ii) is a correct statement but not (i) or (iii).
C. (i) and (iii) are correct statements but not (ii).

D. (ii) and (iii) are correct statements but not (i).

E. (i) is a correct statement but not (ii) and (iii).

29. i. We use the pooled estimate of the proportion in testing the difference
between two population proportions when the samples are not chosen
independently.
ii. The pooled estimate of the proportion is found by dividing the total number of
samples by the total number of successes.
iii. A committee studying employer-employee relations proposed that each
employee would rate his or her immediate supervisor and in turn the supervisor
would rate each employee. To find reactions regarding the proposal, 120 office
personnel and 160 plant personnel were selected at random. Seventy-eight of the
office personnel and 90 of the plant personnel were in favour of the proposal.
Computed z = 1.48. At the 0.05 level, it was concluded that there is sufficient
evidence to support the belief that the proportion of office personnel in favour of the
proposal is greater than that of the plant personnel.
A. (i), (ii), and (iii) are all false statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i) is a correct statement, but not (ii) and (iii).

30. If the decision is to reject the null hypothesis at the 5% level of significance,
what are the acceptable alternate hypothesis and rejection region?
A. p1 p2; z > 1.65 and z < -1.65
B. p1 p2; z > 1.96 and z < -1.96
C. p1 > p2; z < -1.65
D. p1 > p2; z < -1.96

31. A poll of 400 people from village 1 showed 250 preferred chocolate raspberry
coffee to the regular blend while 170 out of 350 in village 2 preferred the same
flavour. To test the hypothesis that there is no difference in preferences in the two
villages, what is the alternate hypothesis?
A. p1 - p2 < 0
B. p1 - p2 > 0

C. p1 = p2
D. p1 - p2 0

32. How is a pooled estimate represented?

A. pc
B. z
C. p
D. np

33. Suppose we are testing the difference between two proportions at the 0.05 level
of significance. If the computed z is -1.07, what is our decision?
A. Reject the null hypothesis.
B. Do not reject the null hypothesis.
C. Take a larger sample.
D. Reserve judgment.

34. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The null hypothesis is pa - pb = 0.

ii. The alternate hypothesis is pa - pb 0.
iii. The proportion of sales made in Market Area 1 is 0.45.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

35. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The null hypothesis is pa - pb = 0.

ii. The alternate hypothesis is pa - pb 0.
iii. The proportion of sales made in Market Area 2 is 0.33.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

36. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The null hypothesis is pa - pb > 0.

ii. The alternate hypothesis is pa - pb 0.
iii. The pooled estimate of the population proportion is 0.36.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

37. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The null hypothesis is pa - pb = 0.

ii. The alternate hypothesis is pa - pb 0.
iii. Using the 1% level of significance, the critical value is 2.58.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

38. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The null hypothesis is pa - pb = 0.

ii. The alternate hypothesis is pa - pb > 0.
iii. The z-statistic is 3.40.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

39. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The null hypothesis is pa - pb = 0.

ii. The alternate hypothesis is pa - pb 0.
iii. If = 0.01 and the z-statistic were calculated to be -1.96, your decision would
be to fail to reject.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

40. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The alternate hypothesis is pa - pb 0.

ii. The proportion of sales made in Market Area 1 is 0.40.
iii. The proportion of sales made in Market Area 2 is 0.33.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

41. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The alternate hypothesis is pa - pb 0.

ii. The pooled estimate of the population proportion is 0.36.
iii. Using the 1% level of significance, the critical value is 1.96.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

42. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The alternate hypothesis is pa - pb 0.

ii. Using the 1% level of significance, the critical value is 2.58.
iii. The z-statistic is 3.40.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

43. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. Using the 1% level of significance, the critical value is 2.58.

ii. The z-statistic is 3.40.
iii. Your decision is to reject the null hypothesis.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

44. To compare the effect of weather on sales of soft drinks, a soda manufacturer
sampled two regions of the country with the following results. Is there a difference
in sales between the 2 regions?

i. The alternate hypothesis is pa - pb >0.

ii. The z-statistic is 3.40.
iii. Your decision is to accept the null hypothesis.
A. (i), (ii), and (iii) are all correct statements
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

45. Of 250 adults who tried a new multi-grain cereal, Wow! 187 rated it excellent; of
100 children sampled, 66 rated it excellent. Using the 0.1 significance level and the
alternate hypothesis p1 not equal to p2, what is the null hypothesis?
A. p1 - p2> 0
B. p1 - p2< 0
C. p1 - p2 = 0

46. Of 250 adults who tried a new multi-grain cereal, Wow!, 187 rated it excellent;
of 100 children sampled, 66 rated it excellent. What test statistic should we use?
A. z-statistic
B. Right one-tailed test
C. Left one-tailed test
D. Two-tailed test

47. A recent study compared the time spent together by single and dual-earner
couples. According to the records kept during the study, the mean amount of time
spent together watching TV among single-earner couples was 64 minutes per day,
with a standard deviation of 15.5 minutes. For the dual-earner couples, the mean
time was 48.4 and the standard deviation was 18.1. At a 0.01 significance level, can
we conclude that the single-earner couples on average spend more time watching
TV together? There were 20 single-earner and 12 dual-earner couples studied. State
the decision rule, the value of the test statistic, and your decision.
A. Reject if t > 2.457, t = 2.49, single-earner couples spend more time watching TV
together.
B. Reject if t > 2.508, t = 0.96, insufficient evidence to say that single-earner
couples spend more time watching TV together.
C. Reject if t > 2.797, t = 2.57, single-earner couples spend more time watching TV
together.
D. Reject if t > 2.042, t = 1.96, insufficient evidence to say that single-earner
couples spend more time watching TV together.
E. Reject if t > 2.485, t = 2.77, single-earner couples spend more time watching TV
together.

48. A recent study compared the time spent together by single and dual-earner
couples. According to the records kept during the study, the mean amount of time
spent together watching TV among single-earner couples was 60 minutes per day,

with a standard deviation of 15.5 minutes. For the dual-earner couples, the mean
time was 48.4 and the standard deviation was 18.1. At a 0.01 significance level, can
we conclude that the single-earner couples on average spend more time watching
TV together? There were 12 single-earner and 12 dual-earner couples studied. State
the decision rule, the value of the test statistic, and your decision.
A. Reject if t > 2.485, t = 2.77, single-earner couples spend more time watching TV
together.
B. Reject if t > 2.508, t = 1.96, insufficient evidence to say that single-earner
couples spend more time watching TV together.
C. Reject if t > 2.797, t = 2.57, single-earner couples spend more time watching TV
together.
D. Reject if t > 2.508, t = 1.69, insufficient evidence to say that single-earner
couples spend more time watching TV together.
E. Reject if t > 2.508, t = 0.96, insufficient evidence to say that single-earner
couples spend more time watching TV together.

49. A recent study compared the time spent together by single and dual-earner
couples. According to the records kept during the study, the mean amount of time
spent together watching TV among single-earner couples was 61 minutes per day,
with a standard deviation of 15.5 minutes. For the dual-earner couples, the mean
time was 48.4 and the standard deviation was 18.1. At a 0.01 significance level, can
we conclude that the single-earner couples on average spend more time watching
TV together? There were 15 single-earner and 12 dual-earner couples studied. State
the decision rule, the value of the test statistic, and your decision.
A. Reject if t > 2.485, t = 1.91, insufficient evidence to say that single-earner
couples spend more time watching TV together.
B. Reject if t > 2.485, t = 2.11, insufficient evidence to say that single-earner
couples spend more time watching TV together.
C. Reject if t > 2.473, t = 1.95, insufficient evidence to say that single-earner
couples spend more time watching TV together.
D. Reject if t > 2.473, t = 2.55, single-earner couples spend more time watching TV
together.
E. Reject if t > 2.485, t = 2.55, single-earner couples spend more time watching TV
together.

50. A recent study compared the time spent together by single and dual-earner
couples. According to the records kept during the study, the mean amount of time
spent together watching TV among single-earner couples was 65 minutes per day,

with a standard deviation of 15.5 minutes. For the dual-earner couples, the mean
time was 48.4 and the standard deviation was 18.1. At a 0.01 significance level, can
we conclude that the single-earner couples on average spend more time watching
TV together? There were 15 single-earner and 12 dual-earner couples studied. State
the decision rule, the value of the test statistic, and your decision.
A. Reject if t > 2.485, t = 2.01, single-earner couples spend more time watching TV
together.
B. Reject if t > 2.473, t = 1.95, insufficient evidence to say that single-earner
couples spend more time watching TV together.
C. Reject if t > 2.473, t = 2.57, single-earner couples spend more time watching TV
together.
D. Reject if t > 2.485, t = 2.57, insufficient evidence to say that single-earner
couples spend more time watching TV together.
E. Reject if t > 2.485, t = 2.52, single-earner couples spend more time watching TV
together.

51. A recent study compared the time spent together by single and dual-earner
couples. According to the records kept during the study, the mean amount of time
spent together watching TV among single-earner couples was 55 minutes per day,
with a standard deviation of 15.5 minutes. For the dual-earner couples, the mean
time was 48.4 and the standard deviation was 18.1. At a 0.01 significance level, can
we conclude that the single-earner couples on average spend more time watching
TV together? There were 12 single-earner and 12 dual-earner couples studied. State
the decision rule, the value of the test statistic, and your decision.
A. Reject if t > 2.485, t = 2.57, insufficient evidence to say that single-earner
couples spend more time watching TV together.
B. Reject if t > 2.508, t = 0.96, insufficient evidence to say that single-earner
couples spend more time watching TV together.
C. Reject if t > 2.473, t = 2.57, single-earner couples spend more time watching TV
together.
D. Reject if t > 2.508, t = 0.96, single-earner couples spend more time watching TV
together.
E. Reject if t > 2.485, t = 2.01, single-earner couples spend more time watching TV
together.

52. Of 150 adults who tried a new peach-flavoured peppermint patty, 99 rated it
excellent. Of 200 children sampled, 123 rated it excellent. Using the 0.10 level of
significance, can we conclude that there is a significant difference in the proportion

of adults and the proportion of children who rate the new flavour as excellent? State
the decision rule, the value of the test statistic, and your decision.
A. Reject if z > 1.96 or < -1.96, z = -2.26, difference exists.
B. Reject if z > 1.96 or < -1.96, z = -0.66, no difference.
C. Reject if z > 1.645 or < -1.645, z = 0.87, difference exists.
D. Reject if z > 1.645 or < -1.645, z = -0.28, difference exists.
E. Reject if z > 1.645 or < -1.645, z = 0.87, no difference.

53. Of 150 adults who tried a new peach-flavoured peppermint patty, 90 rated it
excellent. Of 200 children sampled, 123 rated it excellent. Using the 0.10 level of
significance, can we conclude that there is a significant difference in the proportion
of adults and the proportion of children who rate the new flavour as excellent? State
the decision rule, the value of the test statistic, and your decision.
A. Reject if z > 1.645 or < -1.645, z = -0.28, difference exists
B. Reject if z > 1.645 or < -1.645, z = -0.28, no difference.
C. Reject if z > 1.645 or < -1.645, z = -1.28, difference exists.
D. Reject if z > 1.96 or < -1.96, z = -0.66, no difference.
E. Reject if z > 1.96 or < -1.96, z = -2.26, difference exists.

54. Of 150 adults who tried a new peach-flavoured peppermint patty, 81 rated it
excellent. Of 200 children sampled, 123 rated it excellent. Using the 0.10 level of
significance, can we conclude that there is a significant difference in the proportion
of adults and the proportion of children who rate the new flavour as excellent? State
the decision rule, the value of the test statistic, and your decision.
A. Reject if z > 1.645 or < -1.645, z = -1.28, no difference.
B. Reject if z > 1.645 or < -1.645, z = -1.28, difference exists.
C. Reject if z > 1.96 or < -1.96, z = -0.66, no difference.
D. Reject if z > 1.96 or < -1.96, z = -1.41, difference exists.
E. Reject if z > 1.645 or < -1.645, z = -1.41, no difference.

55. Of 150 adults who tried a new peach-flavoured peppermint patty, 75 rated it
excellent. Of 200 children sampled, 123 rated it excellent. Using the 0.10 level of
significance, can we conclude that there is a significant difference in the proportion

of adults and the proportion of children who rate the new flavour as excellent? State
the decision rule, the value of the test statistic, and your decision.
A. Reject if z > 1.645, z = -0.66, no difference.
B. Reject if z > 1.645 or < -1.645, z = -5.28, difference exists.
C. Reject if z > 1.96 or < -1.96, z = -2.15 no difference.
D. Reject if z > 1.96 or < -1.96, z = -2.26, difference exists.
E. Reject if z > 1.645 or < -1.645, z = -2.15, difference exists.

56. Of 150 adults who tried a new peach-flavoured peppermint patty, 87 rated it
excellent. Of 200 children sampled, 123 rated it excellent. Using the 0.10 level of
significance, can we conclude that there is a significant difference in the proportion
of adults and the proportion of children who rate the new flavour as excellent? State
the decision rule, the value of the test statistic, and your decision.
A. Reject if z > 1.645 or < -1.645, z = -0.66, no difference.
B. Reject if z > 1.645, z = -0.66, no difference.
C. Reject if z > 1.645 or < -1.645, z = -5.28, difference exists.
D. Reject if z > 1.96 or < -1.96, z = -0.66, no difference.
E. Reject if z > 1.96 or < -1.96, z = -2.26, difference exists.

57. i. If samples taken from two populations are not independent, then a test of
paired differences is applied.
ii. The paired difference test has (n1 + n2 - 2) degrees of freedom.
iii. The paired t test is especially appropriate when the sample sizes of two groups
are the same.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i) is a correct statement but not (ii) and (iii).

58. i. If samples taken from two populations are not independent, then a test of
paired differences is applied.
ii. The paired difference test has (n1 + n2 - 2) degrees of freedom.

iii. A statistics professor wants to compare grades of two different groups of

students taking the same course in two different sections. This is an example of a
paired sample.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) is a correct statement but not (ii) or (iii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

59. i. The paired difference test has (n1 + n2 - 2) degrees of freedom.

ii. The paired t test is especially appropriate when the sample sizes of two groups
are the same.
iii. A statistics professor wants to compare grades of two different groups of
students taking the same course in two different sections. This is an example of a
paired sample.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

60. i. If samples taken from two populations are not independent, then a test of
paired differences is applied.
ii. The paired difference test has (n - 1) degrees of freedom.
iii. The paired t test is especially appropriate when the sample sizes of two groups
are the same.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (ii) is a correct statement but not (i) and (iii).

61. A poll of 400 people from village 1 showed 250 preferred chocolate raspberry
coffee to the regular blend while 170 out of 350 in village 2 preferred the same
flavor. You wish to test the hypothesis that there is no difference in preferences in
the two villages. If you were to use Excel's MegaStat to assist in your solution to this
problem, which test would you use?
A. Mean vs. Hypothesized value.
B. Compare two independent groups.
C. Paired observations.
D. Proportion vs. Hypothesized value.
E. Compare two independent proportions.
F. Chi-square variance test.

62. When is it appropriate to use the paired difference t-test?

A. Four samples are compared at once.
B. Any two samples are compared.
C. Two independent samples are compared.
D. Two dependent samples are compared.

63. A random sample of 20 statistics students was given 15 multiple-choice

questions and 15 open-ended questions-all on the same material. The professor was
interested in determining which type of questions the students scored higher. This
experiment is an example of:
A. a one sample test of means.
B. a two sample test of means.
C. a paired t-test.
D. a test of proportions.

64. A random sample of 20 statistics students were given 15 multiple-choice

questions and 15 open-ended questions-all on the same material. The professor was
interested in determining which type of questions the students scored higher. If you
were to use MegaStat to assist in your solution to this problem, which test would
you use?
A. Mean vs. Hypothesized value.
B. Compare two independent groups.

C. Paired observations.
D. Proportion vs. Hypothesized value.
E. Compare two independent proportions.
F. Chi-square variance test.

65. A local retail business wishes to determine if there is a difference in preferred

indoor temperature between men and women. A random sample of data is
collected, with the following results:

What is the decision at the 5% level of significance?

A. Since the p-value is large at 0.4752, we fail to reject the null hypothesis and
conclude that there is no significant difference in the preferred room temperatures
between the sexes.
B. Since the p-value is small at 0.4752, we reject the null hypothesis and conclude
that there is a significant difference in the preferred room temperatures between
the sexes.
C. Since the calculated t-value is more than the critical t-value, we reject the null
hypothesis and conclude that there is a significant difference in the preferred room
temperatures between the sexes.
D. Since the calculated t-value is more than the critical t-value, we fail to reject the
null hypothesis and conclude that there is a significant difference in the preferred
room temperatures between the sexes.
E. There is insufficient information to make a decision.

66. A local retail business wishes to determine if there is a difference in preferred

indoor temperature between men and women. A random sample of data is
collected, with the following results:

If you were to use Excel's Data Analysis to assist in your solution to this problem,
which test would you use?

A. T-test: paired 2-sample for means.

B. T-test: 2-sample assuming equal variances.
C. T-test: 2-sample assuming unequal variances.
D. Z-test: 2-sample for mean.
E. F-test: 2-sample for variances.

67. A local retail business wishes to determine if there is a difference in preferred

indoor 2 temperature between men and women. A random sample of data is
collected, with the following results:

If you were to use Megastat to assist in your solution to this problem, which test
would you use?
A. Mean vs. Hypothesized value.
B. Compare two independent groups.
C. Paired observations.
D. Proportion vs. Hypothesized value.
E. Compare two independent proportions.
F. Chi-square variance test.

68. 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. If you were to use MegaStat to assist in
your solution to this problem, which test would you use?
A. Mean vs. Hypothesized value.

B. Compare two independent groups.

C. Paired observations.
D. Proportion vs. Hypothesized value.
E. Compare two independent proportions.
F. Chi-square variance test.

69. Married women are more often than not working outside the home on at least a
part-time basis, as do most mannered men. Does a husband's employment status
affect his wife's well-being? In an attempt to answer this question, 75 married
female professionals were surveyed as to their job satisfaction. In this sample, 45
husbands were employed, and 30 were unemployed. The Learning Objective of the
study was to compare the mean job satisfaction levels of the married women with
working husbands, with the mean job satisfaction levels of the married women with
husbands that stayed at home.
The test statistic for this problem has what type of distribution?
A. Normal z
B. Student's t
C. Positively skewed
D. Negatively skewed
E. Binomial

70. Married women are more often than not working outside the home on at least a
part-time basis, as do most mannered men. Does a husband's employment status
affect his wife's well-being? In an attempt to answer this question, 75 married
female professionals were surveyed as to their job satisfaction. In this sample, 45
husbands were employed, and 30 were unemployed. The Learning Objective of the
study was to compare the mean job satisfaction levels of the married women with
working husbands, with the mean job satisfaction levels of the married women with
husbands that stayed at home.
If you were to use Excel's Data Analysis to assist in your solution to this problem,
which test would you use?
A. T-test: paired 2-sample for means.
B. T-test: 2-sample assuming equal variances.
C. T-test: 2-sample assuming unequal variances.
D. Z-test: 2-sample for means.

E. F-test: 2-sample for variances.

71. Married women are more often than not working outside the home on at least a
part-time basis, as do most mannered men. Does a husband's employment status
affect his wife's well-being? In an attempt to answer this question, 75 married
female professionals were surveyed as to their job satisfaction. In this sample, 45
husbands were employed, and 30 were unemployed. The Learning Objective of the
study was to compare the mean job satisfaction levels of the married women with
working husbands, with the mean job satisfaction levels of the married women with
husbands that stayed at home.
If you were to use MegaStat to assist in your solution to this problem, which test
would you use?
A. Mean vs. Hypothesized value.
B. Compare two independent groups.
C. Paired observations.
D. Proportion vs. Hypothesized value.
E. Compare two independent proportions.
F. Chi-square variance test.

72. The results of a mathematics placement exam at Mercy College for two
campuses is as follows:

We want to test the hypothesis that the mean score on Campus 1 is higher than on
Campus 2.

Using the printout above, what decision(s) can be made?

A. Looking at the P-value we conclude that there is no significant difference in the
results from each campus.
B. At a 5% level of significance we conclude that there is no significant difference in
the results from each campus.

C. At a 1% level of significance we conclude that campus 1 results are higher than

campus 2 results.
D. Looking at the P-value we conclude that there is no significant difference in the
results from each campus; we get the same conclusion when tested at a 5% level of
significance.
E. Looking at the P-value we conclude that there is no significant difference in the
results from each campus; however, at a 1% level of significance we conclude that
campus 1 results are higher than campus 2 results.

73. Accounting procedures allow a business to evaluate their inventory at LIFO (Last
In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods
inventory (in $1000) for five products both ways. Based on the following results, is
LIFO more effective in keeping the value of his inventory lower?

What is the null hypothesis?

A. F = L, or d = 0
B. F L, or d 0
C. F L
D. F > L

74. Accounting procedures allow a business to evaluate their inventory at LIFO (Last
In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods
inventory (in $1000) for five products both ways. Based on the following results, is
LIFO more effective in keeping the value of his inventory lower?

What is the alternate hypothesis?

A. F = L, or d = 0
B. F L, or d 0
C. F L
D. F > L

75. Accounting procedures allow a business to evaluate their inventory at LIFO (Last
In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods
inventory (in $1000) for five products both ways. Based on the following results, is
LIFO more effective in keeping the value of his inventory lower?

What is the degree of freedom?

A. 4
B. 5
C. 15
D. 10
E. 9

76. Accounting procedures allow a business to evaluate their inventory at LIFO (Last
In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods
inventory (in $1000) for five products both ways. Based on the following results, is
LIFO more effective in keeping the value of his inventory lower?

If you use the 5% level of significance, what is the critical t value?

A. +2.571
B. 2.776
C. +2.262
D. 2.228
E. +2.132

77. Accounting procedures allow a business to evaluate their inventory at LIFO (Last
In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods
inventory (in $1000) for five products both ways. Based on the following results, is
LIFO more effective in keeping the value of his inventory lower?

What is the value of calculated t?

A. +0.93
B. 2.776
C. +0.0.47
D. -2.028

78. Accounting procedures allow a business to evaluate their inventory at LIFO (Last
In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods
inventory (in $1000) for five products both ways. Based on the following results, is
LIFO more effective in keeping the value of his inventory lower?

What is the decision at the 5% level of significance?

A. Fail to reject the null hypothesis and conclude LIFO is more effective.
B. Reject the null hypothesis and conclude LIFO is more effective.
C. Reject the alternate hypothesis and conclude LIFO is more effective.
D. Fail to reject the null hypothesis and conclude LIFO is not more effective.

79. Accounting procedures allow a business to evaluate their inventory at LIFO (Last
In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods
inventory (in $1000) for five products both ways. Based on the following results, is
LIFO more effective in keeping the value of his inventory lower?

This example is what type of test?

A. One sample test of means.
B. Two sample test of means.

C. Paired t-test.
D. Test of proportions.

80. Accounting procedures allow a business to evaluate their inventory at LIFO (Last
In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods
inventory (in $1000) for five products both ways. Based on the following results, is
LIFO more effective in keeping the value of his inventory lower?

If you were to use Megastat to assist in your solution to this problem, which test
would you use?
A. Mean vs. Hypothesized value.
B. Compare two independent groups.
C. Paired observations.
D. Proportion vs. Hypothesized value.
E. Compare two independent proportions.
F. Chi-square variance test.

81. Accounting procedures allow a business to evaluate their inventory at LIFO (Last
In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods
inventory (in $1000) for five products both ways. Based on the following results, is
LIFO more effective in keeping the value of his inventory lower?

What is the decision at the 5% level of significance?

A. Looking at the large P-value of .2019 we conclude LIFO is more effective.

B. Reject the null hypothesis and conclude LIFO is more effective.
C. Reject the alternate hypothesis and conclude LIFO is more effective.

D. The large P-value of .2017 indicates that there is a good chance of getting this
sample data when the two methods are in fact not significantly different, so we
conclude that LIFO is not more effective.

82. The employees at the East Vancouver office of a multinational company are
demanding higher salaries than those offered at the company office located in
Oshawa Ontario. Their justification for the pay difference is that the difference
between the average price of single-family houses in East Vancouver and that in
Oshawa is more than $60,000. Before making a decision, the company
management wants to study the difference in the prices of single-family houses for
sale at the two locations.
The results of their search of recent house sales are as follows (in $1000, rounded to
the nearest thousand):

Assuming that the population distributions are approximately normal, can we

conclude at the 0.05 significance level that the difference between the two
population means is greater than $60,000?
If we let East Vancouver be population 1 and Oshawa be population 2, what is the
null hypothesis?
A. 1 = 2, or d = 0
B. 1 2, or d 0
C. 1 - 2 60
D. 1 - 2 > 60

83. The employees at the East Vancouver office of a multinational company are
demanding higher salaries than those offered at the company office located in
Oshawa Ontario. Their justification for the pay difference is that the difference
between the average price of single-family houses in East Vancouver and that in
Oshawa is more than $60,000. Before making a decision, the company
management wants to study the difference in the prices of single-family houses for
sale at the two locations.
The results of their search of recent house sales are as follows (in $1000, rounded to
the nearest thousand):

Assuming that the population distributions are approximately normal, can we

conclude at the 0.05 significance level that the difference between the two
population means is greater than $60,000?
What is the alternate hypothesis?
A. 1 = 2, or d = 0
B. 1 2, or d 0
C. 1 - 2 60
D. 1 - 2 > 60

84. The employees at the East Vancouver office of a multinational company are
demanding higher salaries than those offered at the company office located in
Oshawa Ontario. Their justification for the pay difference is that the difference
between the average price of single-family houses in East Vancouver and that in
Oshawa is more than $60,000. Before making a decision, the company
management wants to study the difference in the prices of single-family houses for
sale at the two locations.
The results of their search of recent house sales are as follows (in $1000, rounded to
the nearest thousand):

Assuming that the population distributions are approximately normal, can we

conclude at the 0.05 significance level that the difference between the two
population means is greater than $60,000?
What is the degree of freedom?
A. 4
B. 5
C. 15
D. 23
E. 9

85. The employees at the East Vancouver office of a multinational company are
demanding higher salaries than those offered at the company office located in

Oshawa Ontario. Their justification for the pay difference is that the difference
between the average price of single-family houses in East Vancouver and that in
Oshawa is more than $60,000. Before making a decision, the company
management wants to study the difference in the prices of single-family houses for
sale at the two locations.
The results of their search of recent house sales are as follows (in $1000, rounded to
the nearest thousand):

Assuming that the population distributions are approximately normal, can we

conclude at the 0.05 significance level that the difference between the two
population means is greater than $60,000?
If you use the 5% level of significance, what is the critical t value?
A. 2.228
B. 1.714
C. 1.833
D. 2.262

86. The employees at the East Vancouver office of a multinational company are
demanding higher salaries than those offered at the company office located in
Oshawa Ontario. Their justification for the pay difference is that the difference
between the average price of single-family houses in East Vancouver and that in
Oshawa is more than $60,000. Before making a decision, the company
management wants to study the difference in the prices of single-family houses for
sale at the two locations.
The results of their search of recent house sales are as follows (in $1000, rounded to
the nearest thousand):

Assuming that the population distributions are approximately normal, can we

conclude at the 0.05 significance level that the difference between the two
population means is greater than $60,000?
What is the value of calculated t?
A. +1.93

B. +3.22
C. -2.76
D. -2.028

87. The employees at the East Vancouver office of a multinational company are
demanding higher salaries than those offered at the company office located in
Oshawa Ontario. Their justification for the pay difference is that the difference
between the average price of single-family houses in East Vancouver and that in
Oshawa is more than $60,000. Before making a decision, the company
management wants to study the difference in the prices of single-family houses for
sale at the two locations.
The results of their search of recent house sales are as follows (in $000, rounded to
the nearest thousand):

Assuming that the population distributions are approximately normal, can we

conclude at the 0.05 significance level that the difference between the two
population means is greater than $60,000?
What is the decision at the 5% level of significance?
A. Fail to reject the null hypothesis and conclude that the average house prices in
East Vancouver are not more than $60,000 greater than those in Oshawa.
B. Reject the null hypothesis and conclude that the average house prices in East
Vancouver are not more than $60,000 greater than those in Oshawa.
C. Reject the null hypothesis and conclude that the average house prices in East
Vancouver are indeed at least $60,000 greater than those in Oshawa.
D. Fail to reject the null hypothesis and conclude that the average house prices in
East Vancouver are more than $60,000 greater than those in Oshawa.

88. The employees at the East Vancouver office of a multinational company are
demanding higher salaries than those offered at the company office located in
Oshawa Ontario. Their justification for the pay difference is that the difference
between the average price of single-family houses in East Vancouver and that in
Oshawa is more than $60,000. Before making a decision, the company
management wants to study the difference in the prices of single-family houses for
sale at the two locations.

The results of their search of recent house sales are as follows (in $1000, rounded to
the nearest thousand):

Assuming that the population distributions are approximately normal, can we

conclude at the 0.05 significance level that the difference between the two
population means is greater than $60,000?
This example is what type of test?
A. One sample test of means.
B. Two sample test of means.
C. Paired t-test.
D. Test of proportions.

89. The employees at the East Vancouver office of a multinational company are
demanding higher salaries than those offered at the company office located in
Oshawa Ontario. Their justification for the pay difference is that the difference
between the average price of single-family houses in East Vancouver and that in
Oshawa is more than $60,000. Before making a decision, the company
management wants to study the difference in the prices of single-family houses for
sale at the two locations.
The results of their search of recent house sales are as follows (in $1000, rounded to
the nearest thousand):

If you were to use MegaStat to assist in your solution to this problem, which test
would you use?
A. Mean vs. Hypothesized value.
B. Compare two independent groups.
C. Paired observations.
D. Proportion vs. Hypothesized value.
E. Compare two independent proportions.
F. Chi-square variance test.

90. The employees at the East Vancouver office of a multinational company are
demanding higher salaries than those offered at the company office located in
Oshawa Ontario. Their justification for the pay difference is that the difference
between the average price of single-family houses in East Vancouver and that in
Oshawa is more than $60,000. Before making a decision, the company
management wants to study the difference in the prices of single-family houses for
sale at the two locations.
The results of their search of recent house sales are as follows (in $1000, rounded to
the nearest thousand):

What is the decision at the 5% level of significance?

A. Fail to reject the null hypothesis and conclude that the average house prices in
East Vancouver are not more than $60,000 greater than those in Oshawa.
B. Since the P-value is less than the t-stat we conclude that the average house
prices in East Vancouver are not more than $60,000 greater than those in Oshawa.
C. Since the P-value is so very small, we conclude that the average house prices in
East Vancouver are indeed at least $60,000 greater than those in Oshawa.
D. Conclude that the average house prices in East Vancouver are different than
those in Oshawa.

91. A local retail business wishes to determine if there is a difference in preferred

indoor temperature between men and women. A random sample of data is
collected, with the following results (note: there are slight differences between Excel
and MegaStat output in this test):

Using a 0.05 level of significance, can we conclude that there is indeed a difference
in the temperature that men prefer compared to women?
What is the null hypothesis if we assume men to be group 1 and women group 2?
A. 1 = 2, or d = 0
B. 1 2, or d 0
C. 1 - 2 20

D. 1 - 2 > 20

92. A local retail business wishes to determine if there is a difference in preferred

indoor temperature between men and women. A random sample of data is
collected, with the following results (note: there are slight differences between Excel
and MegaStat output in this test):

What is the alternate hypothesis?

A. 1 - 2 > 0, or d > 0
B. 1 2, or d 0
C. 1 - 2 0, or d < 0
D. 1 - 2 = 0

93. A local retail business wishes to determine if there is a difference in preferred

indoor temperature between men and women. A random sample of data is
collected, with the following results (note: there are slight differences between Excel
and MegaStat output in this test):

What is the degree of freedom?

A. 11
B. 22
C. 21
D. 20
E. 19

94. A local retail business wishes to determine if there is a difference in preferred

indoor temperature between men and women. A random sample of data is
collected, with the following results (note: there are slight differences between Excel
and MegaStat output in this test):

If you use the 5% level of significance, what is the critical t value?

A. 2.093
B. 2.086
C. 1.729
D. 1.725

95. A local retail business wishes to determine if there is a difference in preferred

indoor temperature between men and women. A random sample of data is
collected, with the following results (note: there are slight differences between Excel
and MegaStat output in this test):

What is the decision at the 5% level of significance?

A. Since the calculated t-value is less than the critical t-value, fail to reject the null
hypothesis and conclude that there is no significant difference in the preferred room
temperatures between the sexes.
B. Since the calculated t-value is less than the critical t-value, we reject the null
hypothesis and conclude that there is a significant difference in the preferred room
temperatures between the sexes.
C. Since the calculated t-value is more than the critical t-value, we reject the null
hypothesis and conclude that there is a significant difference in the preferred room
temperatures between the sexes.
D. Since the calculated t-value is more than the critical t-value, we fail to reject the
null hypothesis and conclude that there is a significant difference in the preferred
room temperatures between the sexes.
E. There is insufficient information to make a decision.

96. Married women are more often than not working outside the home on at least a
part-time basis, as do most mannered men. Does a husband's employment status
affect his wife's well-being? In an attempt to answer this question, 20 married
female professionals were surveyed as to their job satisfaction. In this sample, 15

husbands were employed, and 5 were unemployed. The Learning Objective of the
study was to compare the mean job satisfaction levels of the married women with
working husbands, with the mean job satisfaction levels of the married women with
husbands that stayed at home.
Set up the hypotheses to test whether the job satisfaction levels of married women
with working husbands is any more than that of their counterparts with unemployed
husbands.
A. H0: E = U, H1: E U, or H0: d = 0, H1: d 0
B. H0: E = U, H1: E < U, or H0: d = 0, H1: d < 0
C. H0: E = U, H1: E > U, or H0: d = 0, H1: d > 0
D. H0: E U, H1: E > U, or H0: d 0, H1: d > 0
E. H0: E U, H1: E < U, or H0: d 0, H1: d < 0

97. Married women are more often than not working outside the home on at least a
part-time basis, as do most mannered men. Does a husband's employment status
affect his wife's well-being? In an attempt to answer this question, 20 married
female professionals were surveyed as to their job satisfaction. In this sample, 15
husbands were employed, and 5 were unemployed. The Learning Objective of the
study was to compare the mean job satisfaction levels of the married women with
working husbands, with the mean job satisfaction levels of the married women with
husbands that stayed at home.
The test statistic for this problem has what type of distribution?
A. Normal z
B. Student's t
C. Positively skewed.
D. Negatively skewed.
E. Binomial

98. Married women are more often than not working outside the home on at least a
part-time basis, as do most mannered men. Does a husband's employment status
affect his wife's well being? In an attempt to answer this question, 20 married
female professionals were surveyed as to their job satisfaction. In this sample, 15
husbands were employed, and 5 were unemployed. The Learning Objective of the
study was to compare the mean job satisfaction levels of the married women with
working husbands, with the mean job satisfaction levels of the married women with
husbands that stayed at home.

If the p-value obtained from the computer printout is 0.025, does this give sufficient
evidence to conclude that the mean level of job satisfaction for women with working
husbands is more than that of those whose husbands don't work?
A. Yes, at alpha = 0.05.
B. Yes, at alpha = 0.01.
C. No, at alpha = 0.10.
D. No, at alpha = 0.04.
E. Insufficient information to make a decision.

99. Married women are more often than not working outside the home on at least a
part-time basis, as do most mannered men. Does a husband's employment status
affect his wife's well-being? In an attempt to answer this question, 20 married
female professionals were surveyed as to their job satisfaction. In this sample, 15
husbands were employed, and 5 were unemployed. The Learning Objective of the
study was to compare the mean job satisfaction levels of the married women with
working husbands, with the mean job satisfaction levels of the married women with
husbands that stayed at home.
If the p-value obtained from the computer printout is 0.055, does this give sufficient
evidence to conclude that the mean level of job satisfaction for women with working
husbands is more than that of those whose husbands don't work?
A. Yes, at alpha = 0.05.
B. Yes, at alpha = 0.01.
C. Yes, at alpha = 0.10.
D. No, at alpha = 0.06.
E. Insufficient information to make a decision.

100. Suppose we test H0: 1 = 2 at the 0.05 level of significance. If the z-test
statistic is -1.07, what is our decision?
A. Reject the null hypothesis.
B. Do not reject the null hypothesis.
C. Take a larger sample.
D. Reserve judgment.

101. The net weights (in grams) of a sample of bottles filled by a machine
manufactured by Edne, and the net weights of a sample filled by a similar machine
manufactured by Orno, Inc., are:

Testing the claim at the 0.05 level that the mean weight of the bottles filled by the
Orno machine is greater than the mean weight of the bottles filled by the Edne
machine, what is the critical value of t? Assume equal standard deviations for both
samples.
A. +2.179
B. +2.145
C. +1.782
D. +1.761

102. For a hypothesis comparing two population means, H0: 1 2, what is the
critical value for a one-tailed hypothesis test, using a 5% significance level, with
both sample sizes equal to 13? Assume the population standard deviations are
equal.
A. 1.711
B. +1.711
C. +2.060
D. +2.064

103. An investigation of the effectiveness of a training program to improve

customer relationships included a pre-training and post-training customer survey. To
compare the differences, they computed (post-training survey score - pre-training
survey score). Seven customers were randomly selected and completed both
surveys. The results follow:

This analysis is an example of _____________.

A. a one-sample test of means

B. a two-sample test of means

C. a paired t-test
D. a test of proportions

104. An investigation of the effectiveness of a training program to improve

customer relationships included a pre-training and post-training customer survey. To
compare the differences, they computed (post-training survey score - pre-training
survey score). Seven customers were randomly selected and completed both
surveys. The results follow:

For a 0.05 significance level, determine the critical value and the calculated value of
the test statistic?
A. 1.943; -2.542
B. 1.895; 2.542
C. 1.645; 2.447
D. 2.447; 1.943

105. An investigation of the effectiveness of a training program to improve

customer relationships included a pre-training and post-training customer survey. To
compare the differences, they computed (post-training survey score - pre-training
survey score). Seven customers were randomly selected and completed both
surveys. The results follow:

Was the training effective in improving customer relationships when tested at a 0.05
level of significance?
A. Reject the null hypothesis and conclude that the training was effective.
B. Reject the null hypothesis and conclude that the training was ineffective.
C. Fail to reject the null hypothesis and conclude that mean survey scores are the
same.

D. Fail to reject the null hypothesis and conclude that the mean survey scores are
not equal.

106. An investigation of the effectiveness of a training program to improve

customer relationships included a pre-training and post-training customer survey. To
compare the differences, they computed (post-training survey score - pre-training
survey score). Seven customers were randomly selected and completed both
surveys. The results follow:

Determine the calculated value of t. Was the training effective in improving

customer relationships when tested at a 0.05 level of significance?
A. -2.542; Reject the null hypothesis and conclude that the training was effective
B. 2.542; Reject the null hypothesis and conclude that the training was ineffective
C. 2.447; Fail to reject the null hypothesis and conclude that mean survey scores are
the same
D. 2.542; Fail to reject the null hypothesis and conclude that the mean survey
scores are not equal.
E. 2.447; Reject the null hypothesis and conclude that the training was effective

107. An investigation of the effectiveness of a training program to improve

customer relationships included a pre-training and post-training customer survey. To
compare the differences, they computed (post-training survey score - pre-training
survey score). Seven customers were randomly selected and completed both
surveys. The results follow:

The calculated value of t. is -2.542. Was the training effective in improving customer
relationships when tested at a 0.05 level of significance?
A. Reject the null hypothesis and conclude that the training was effective
B. Reject the null hypothesis and conclude that the training was ineffective
C. Fail to reject the null hypothesis and conclude that mean survey scores are the
same

D. Fail to reject the null hypothesis and conclude that the mean survey scores are
not equal.

108. A company is researching the effectiveness of a new website design to

decrease the time to access a website. Five website users were randomly selected,
and their times (in seconds) to access the website with the old and new designs
were recorded. To compare the times, they computed (new website design time old website design time). The results follow:

What are the null and alternative hypothesis?

A. H0: d = 0; H1: d 0
B. H0: d 0; H1: d = 0
C. H0: d 0; H1: d > 0
D. H0: d 0; H1: d 0
E. H0: d 0; H1: d < 0

109. A company is researching the effectiveness of a new website design to

decrease the time to access a website. Five website users were randomly selected,
and their times (in seconds) to access the website with the old and new designs
were recorded. To compare the times, they computed (new website design time old website design time). The results follow.

What is the value of the calculated test statistic?

A. -2.256
B. 1.895
C. -3.747
D. 2.447

110. A company is researching the effectiveness of a new website design to

decrease the time to access a website. Five website users were randomly selected,
and their times (in seconds) to access the website with the old and new designs
were recorded. To compare the times, they computed (new website design time old website design time). The results follow:

For a 0.01 significance level, what is the critical value?

A. 2.256
B. 1.895
C. 3.747
D. 2.447

111. A company is researching the effectiveness of a new website design to

decrease the time to access a website. Five website users were randomly selected,
and their times (in seconds) to access the website with the old and new designs
were recorded. To compare the times, they computed (new website design time old website design time). The results follow:

If the calculated test statistic is -2.256, what is the decision regarding the
hypothesis that the training was effective in improving customer relationships when
tested at a 0.01 significance level?
A. Reject the null hypothesis and conclude that the new design reduced mean
access times.
B. Reject the null hypothesis and conclude that the new design did not reduce mean
access times.
C. Fail to reject the null hypothesis.
D. Fail to reject the null hypothesis and conclude that the mean access times are
inaccurate.