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RES/342 – Research & Evaluation for Business II
Quiz I

Name _____________________________ Date _______________

Please complete the following quiz and post it to your individual forum by
Day 7. DO NOT post it in any OTHER forums except your individual forum.
Use bold or color when you write the answer.

TRUE-FALSE (½ point each). Write „True‟ if the statement is correct and „false‟ if
it is incorrect.

________1. If the null hypothesis is stated that the average number of milligrams
of sodium in a manufacturer‟s can of soup is 200 mg, an appropriate alternative
hypothesis is that the average number of milligrams of sodium exceeds 200 mg.

________2. If a calculated p value is relatively large, the implication is that the
data are inconsistent with the null hypothesis such that it is likely that H0 should
be rejected.

________3. In order to conduct a lower-tail test of a population mean, the
alternative hypothesis, HA, would be that the population exceeds a specific

________4. One way to determine whether a test is lower-tail or upper-tail is that
a “<” sign is embedded in the alternative hypothesis of a lower-tail test and a “>”
sign is embedded in the alternative hypothesis of an upper-tail test.

________5. If the null hypothesis is actually true and your decision has been to
reject it, you have committed a Type I error.

________6. If you fail to reject the null hypothesis when it is actually true, then
you have committed neither a Type I nor a Type II error.

________7. The larger the t statistic for an upper-tail test, the more likely the null
hypothesis will be rejected.

________8. In order to compare the characteristics of two different populations, a
sample should be extracted from each population.

________9. One of the major assumptions underlying ANOVA is that all the
populations being studied in the experiment have the same variance.

________10. The z-test requires n-1 degrees of freedom to determine a critical
value that separates the acceptance region from the rejection region.

MULTIPLE CHOICE (1 point each). Choose the best alternative and write the
corresponding letter in the space provided.

________11. “Students with better study habits will suffer less test anxiety”.
This statement can be classified as a:
A. Theory       B. Hypothesis         C. Fact      D. body of Knowledge

________12. Whenever a hypothesis is tested, the evidence that is used to
determine validity comes from the:
A) decision B) conjecture C) sample data D) theory.

________13. A grocery store owner is interested in determining if the average
weight of a package of ground beef sold in the store weighs one pound. An
appropriate null hypothesis for this study is
              a.    H0:  = 1 lb
              b.    H0:   1 lb
              c.    H0:  > 1 lb
              d.    H0:  < 1 lb

________14. The appropriate alternative hypothesis for an upper-tail test to
determine if mean body weight of all the men who have joined a health club
exceeds 185 pounds would be
              a.   H1:   185 lb.
              b.   H1:  > 185 lb.
              c.   H1:   185 lb.
              d.   H1:   185 lb.

________15. The shape of the F distribution is:
A) symmetric B) skewed right C) skewed left D) the same as the t distribution

________16. In a right-tail test, a statistician came up with a z-test statistic of
1.469. What is the p-value?
a. 0.4292        b. 0.0708               C. 0.0874      D. 0.1416

________17. Dullco Manufacturing claims that its alkaline batteries last 40 hours
on average in a certain type of portable CD player. Tests on a random sample of
16 batteries showed a mean of 38 hours with a standard deviation of 4 hours.
The t-test statistic is:
A. -1.33              B. -2.00        C. 1.33            D. 2.00

________18. The technique that is used to determine if three or more population
means are equal by analyzing the variation in the data is known as:
A) chi-square test B) ANOVA C) correlation analysis D) regression analysis

________19. When p-value is greater than alpha (α) in hypothesis testing:
A. We reject Ho.
B. We accept Ho
C. We accept H1
D. There is neither type 1 nor type 2 error.

________ 20. One of the following hypothesis tests is not considered as
A. Chi-square test
B. z-test
C. t- test
D. F-test

Problem Solving (5 points).
Solve the following problem. Show your work wherever necessary (5 points)

21. The CFO of a company selling computer software through mega stores
claims that average monthly profits throughout country will exceed $1 billion, with
a standard deviation of $0.10 billion. A sample survey of software sales in 36
mega stores revealed an average monthly profit of $1.2 billion. You are asked to
test the CFO‟s claim by examining monthly profits from the sample mega stores
using the Z-test.

A) State Ho and H1 for this claim.

B) Is this an upper tailed, lower tailed or two-tailed test? Why?

C) State the decision rule using α = 0.05 significance level? [First find out tabular
or critical z value using standard normal distribution table. Then, state the
condition under which Ho is rejected).

                                              X 
D) Compute Z- statistic (z-calculated). z =        .
                                              s/ n

E) What is the p-value? [To get the p-value for one-tailed test, first get the
probability value in the normal distribution table using the computed Z value or
use the web-based calculator at following link:].

F) What is your decision regarding Ho? ACCEPT or REJECT? Why?

G) Write your conclusion regarding the CFO‟s claim? Was the claim correct or

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