Example Sheet 3

1. What Z-value is associated with a 95% confidence interval?

A. 1.28
B. 1.65
C. 1.96
D. 2.58
2. Which of the following is NOT a property of the t distribution?
A. It is symmetric.
B. Its exact shape (i.e., spread) is characterized by the degrees of freedom.
C. As the sample size grows, it gradually approaches the normal distribution.
D. All of the above are properties of the t distribution.
3. A 95% confidence interval for the mean can be interpreted to mean which of the following?
A. If all possible samples are taken and confidence intervals calculated, 95% of those intervals would
include the true population mean somewhere in their interval.
B. You can be 95% confident that you have selected a sample whose interval includes the population
mean.
C. Both answers #1 and #2 are correct.
D. Neither answer #1 nor #2 is correct.
4. Two random samples have sizes of n=49 and n=36 respectively. Which of the following is true for a
95% confidence interval?
A. The sample of n=36 has a greater degree of confidence.
B. The sample of n=49 has a greater degree of confidence.
C. The confidence interval for the sample of n=49 is narrower.
D. The confidence interval for the sample of n=49 is wider.
5. The Z value selected for constructing a given confidence interval is also called what?
A. The Z value is also called the critical value.
B. The Z value is also called the student value.
C. The Z value is also called the confidence value.
D. The Z value is often called the error value.
6. A sample of 50 students was taken from the local university. These students spent an average of $170
on books this semester, with a standard deviation of $25.50. Which of the following could you say with
95% confidence was the average spent on books by these 50 students?
A. $170 plus or minus $3.46
B. $170 plus or minus $5.95
C. $170 plus or minus $8.42
D. None of these is correct.
7. A random sample of 72 statistics students was taken to estimate the proportion of students who also
were in the Math Club. The 90% confidence interval was 0.438 to 0.642. Using this information, what
size sample would be necessary to estimate
A. 105
B. 150
C. 420
D. 597

8. The formula for determining the confidence interval estimation for the population mean where is
known is simply Xbar e where e is the sampling error or margin of error.
T
F
9. The formula for determining the appropriate sample size to use to calculate confidence interval
estimation for the population mean is simply a matter of solving for n in the formula for e (the sampling
error or margin of error).
T
F
10. In a poll of registered voters, 52% of the voters said they would vote for incumbent while 44% said
they would vote for the challenger. This information means that the incumbent will win.
T
F
11. The following sample was taken from a normally distributed population: 15, 22, 10, 15, 11, 17, and 8.
Calculate the 95% confidence interval for this sample.
A. 14 plus or minus 6.52
B. 14 plus or minus 10.35
C. 14 plus or minus 8.97
D. 14 plus or minus 4.40
12. The width of a confidence interval for a proportion will be
A. narrower for 99% confidence than for 95% confidence.
B. wider for a sample of size 100 than for a sample of size 50.
C. wider for 90% confidence than for 95% confidence.
D. wider when the sample proportion is 0.50 than when the sample proportion is 0.20.
13. A sample size of 200 light bulbs was tested and found that 11 were defective. What is the 95%
confidence interval around this sample proportion?
A. 0.055 plus or minus 0.032
B. 0.055 plus or minus 0.009
C. 0.055 plus or minus 0.044
D. 0.055 plus or minus 0.018
14. The sample mean is an unbiased point estimator of
A. the population variance.
B. the population mean.
C. the population proportion.
D. None of the above
15. An economist is interested in studying the incomes of consumers in a particular region. The
population standard deviation is known to be $1,000. What sample size would the economist need to use
for a 95% confidence interval if the width of the interval should not be more than $100?
A. 20
B. 40
C. 385
D. 1537

16. The confidence interval for the difference between two population means that are normally distributed
where the population variances are unknown but assumed equal rely on
A. the average sample variance.
B. the estimated sample variance.
C. Satterthwaite's approximation.
D. the pooled sample variance.
17. In a random sample of 400 Georgia residents, 272 indicated they were home owners. In another
random sample of 600 Florida residents, 390 were home owners. What is the 99%
confidence interval for the difference between the proportions?
A. 0.030 plus or minus 0.016
B. 0.030 plus or minus 0.035
C. 0.030 plus or minus 0.051
D. 0.030 plus or minus 0.077

18. If you were running a small sample (e.g., n=24) two-sided test at level of significance .05, then the
critical t-value would be _________.
A. 1.711
B. 2.069
C. 1.714
D. 1.96
19. A student claims that he can correctly identify whether a person is a business major or an agriculture
major by the way the person dresses. Suppose in actuality that he can correctly identify a business major
87% of the time, while 16% of the time he mistakenly identifies an agriculture major as a business
major. Presented with one person and asked to identify the major of this person (who is either a business
or agriculture major), he considers this to be a hypothesis test with the null hypothesis being that the
person is a business major and the alternative that the person is an agriculture major. What would be a
Type I error?
A. Saying that the person is an agriculture major when in fact the person is a business major.
B. Saying that the person is a business major when in fact the person is a business major.
C. Saying that the person is a business major when in fact the person is an agriculture major.
D. Saying that the person is an agriculture major when in fact the person is an agriculture major.
20. The probability of rejecting the null hypothesis that is true is
A. known as the confidence level.
B. p-value.
C. power of the test.
D. significance level.
21. A small business college claims that their average class size is equal to 35 students. This claim is
being tested with alpha equal to 0.05 using the following sample of class sizes: 42, 28, 36, 47, 35, 41, 33,
30, 39, and 48. Assume class sizes are normally distributed. What is the test statistic and what conclusions
will be drawn?
A. Since the test statistics equals 1.36, we reject the null hypothesis and conclude that class size does not
equal 35 students.
B. Since the test statistics equals 1.36, we fail to reject the null hypothesis and conclude that class size
does equal 35 students.
C. Since the test statistics equals 2.26, we reject the null hypothesis and conclude that class size does not
equal 35 students.
D. Since the test statistics equals 2.26, we fail to reject the null hypothesis and conclude that class size
does equal 35 students.
22. Each of the following statements is true except:
A. The level of significance of a hypothesis test is called alpha
B. The probability of making a Type II error is called beta.
C. The probability of rejecting a null hypothesis when it is true is called alpha
D. The probability of making a Type I error is called beta.
23. Test at the level of significance of 0.01 that 55% of season ticket holders plan to buy season tickets the
next year. The local newspaper reports that the proportion of those season ticket holders who buy tickets
next year is not equal to 55%. A random sample of 400 season ticket holders reveals that 228 will buy
season tickets next year. What decision should be made regarding the null hypothesis?
A. reject it
B. none of the above
C. do not reject it
D. cannot accept or reject it
24. A local eat-in pizza restaurant wants to investigate the possibility of starting to deliver pizzas. The
owner of the store has determined the home delivery will be successful if the average time spent on the

deliveries does not exceed 38 minutes. The owner has randomly selected 15 customers and has delivered
pizzas to their homes. What assumption is necessary for the test above to be valid?
A. The population variance must equal the population mean.
B. None of these assumptions are necessary.
C. The population of paired differences must be normal
D. The population of delivery times must have a normal distribution.
25. The alternative hypothesis for the difference between two means is "mu1-mu2 is not equal 0".
For this test, the test statistic, z is 3.09. What is the p-value for the test?
A. 0.05
B. 0.001
C. 0.002
D. 0.499
26. A study by a corporation revealed that the mean weekly salary for managers in department A was
$1,200 with a standard deviation of $100 (sample size = 64) while the mean weekly salary for managers
in department B was $1350 and a standard deviation of $150 ( sample size = 81 )
The hypothesis test is to be conducted at the level of significance of 5%. The critical region for this test is
A. z < -1.645
B. z > 1.96 or z < -1.96
C. -1.96 < z < 1.96
D. z >1.645
27. Which of the following statements is not correct for the F distribution?
A. Degrees of freedom for the numerator can exceed degrees of freedom for the denominator or be
smaller than or equal to the degrees of freedom for the denominator.
B. Degrees of freedom for the denominator are always smaller than the degrees of freedom for the
numerator.
C. The F distribution is used to compare two population variances.
D. The exact shape of the F distribution depends upon the degrees of freedom associated with the two
samples.
28. A researcher wanted to investigate which of two newly developed automobile engine oils (A and B) is
better at prolonging the life of the engine. Since there are a variety of automobile engines that are used in
today's cars, 20 different engine types were randomly selected and were tested using each of the two
engine oils. The number of hours of continuous use before engine breakdown was recorded for each
engine oil. Based on the information provided, what type of analysis will yield the most useful
information?
A. Matched pairs comparison of population proportions
B. Matched pairs comparison of population means
C. Independent samples comparison of population means
D. Independent samples comparison of population proportions

1. One way to get a narrower confidence interval, is to increase the sample size.
A) True
B) False
Answer:
2. The closer it is necessary for the sample estimate to be to the unknown population parameter, the
smaller the sample size required.
A) True
B) False
Answer:
3. I would like to test the null hypothesis that the population mean is 50 versus the alternative that it is
not 50. My sample size is 6, and the sample mean is 38 with sample standard deviation of 16. At =
0.05, I should:
A) strongly reject the null hypothesis
B) mildly reject the null hypothesis
C) fail to reject the null hypothesis
D) accept the alternative hypothesis
E) there is insufficient information to determine
Answer:
4. The proportion of defective items is not allowed to be over 15%. A buyer wants to test whether the
proportion of defectives exceeds the allowable limit. The buyer takes a random sample of 100 items
and finds that 19 are defective. State the null and alternative hypotheses for this test.
A) H0: p .15, H1: p > .15
B) H0: p < .15, H1: p .15
C) H0: p = .15, H1: p .15
D) H0: p < .15, H1: p > .15
E) none of the above
Answer:
5. A manufacturer claims that his tires last at least 40,000 miles. A test on 25 tires reveals that the mean
life of a tire is 39,750 miles, with a standard deviation of 387 miles. Compute the test statistic.
A) t = -0.65
B) t = 3.23
C) t = -3.23
D) t = 0.65
E) none of the above
Answer:
6. Given a p-value of 0.065, and using the customary = 5%, the conclusion should be:
A) accept the null hypothesis
B) reject the null hypothesis
C) not enough information to determine
Answer:
7. A random sample of 36 items gave a sample mean of 48 and a sample standard deviation of 12.
Compute the p-value to test whether or not the population mean is equal to 50.
A) 0.3413
B) -0.4772
C) 0.1587
D) 0.6826
E) 0.3174

Answer:
8. I want to conduct a statistical test of whether or not the population mean is 70. My sample mean is 71,
my sample standard deviation is 5, and my sample size is 100. The result is:
A) not significant
B) significant
C) very significant
D) cant tell
Answer:
1. The only assumption required for the paired-difference test is that the population of differences is
normally distributed.
a) True
b) False
2. When using the t distribution to test for a difference between two population means taken from
independent samples the degrees of freedom are: n1 + n2 2.
a) True
b) False
3. If the difference between two sample means is significant, then this is evidence that the two samples
come from populations with equal means.
a) True
b) False
4. When testing for the equality of two population means, using = 0.05 with n1 = 12 and n2 =10, the
critical points are:
a) +2.704 and 2.704
b) +1.96 and 1.96
c) +2.086 and 2.086
d) +1.645 and 1.645
e) none of the above
Use the following to answer questions 6, 7, 8:
A company made a major change in its advertising theme this year and is interested in knowing whether
there is any significant increase in sales over last year. The following data is the sales in thousands for
different stores over the country, and has been adjusted for inflation. Take the difference as (current years
sales last years sales).
Store
1
2
3
4
5
6
7
8

Last Years Sales

183
406
388
694
274
137
33
1423

Current Years Sales

206
528
678
601
258
170
31
1468

6. State the null and alternative hypotheses to test the hypothesis that the change in advertising has
increased sales.
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) none of the above
7.

Find the critical value to test the hypothesis that the change in advertising has increased sales,
using = 0.05.
a) +1.645
b) +1.96
c) +2.365
d) +1.895
e) none of the above

8.
a)
b)
c)
d)
e)

Construct a 95% confidence interval for the average change in sales.

50.25 (2.365) (40.385)
50.25 (1.96) (40.385)
50.25 (1.895) (40.385)
50.25 (2.306) (40.385)
none of the above

Use the following to answer questions 9, 10:

A programmer has written a software package that points out errors in programs. Previously, this was
done manually. The mean number of errors the software picket out of 100 different programs was 15, with
a standard deviation of 8.2. The mean number of errors picked out manually, out of 100 programs, was 13,
with a standard deviation of 4.9. We want to test whether there is evidence that this software picks out
more errors than checking manually does. Assume that the software is population 1 and manual checking
is population 2.
9.
a)
b)
c)
d)
e)

State the null and alternative hypotheses to test whether this software does pick out more errors.
H0: 1 - 2 0, H1: 1 - 2 > 0
H0: 1 - 2 = 0, H1: 1 - 2 0
H0: 1 - 2 0, H1: 1 - 2 < 0
H0: 1 - 2 > 0, H1: 1 - 2 0
none of the above

a)
b)
c)
d)
e)

Find the critical points to test whether this software does find more errors, at = 0.05.
+1.96
+1.645
+1.282
+2.575
+2.33

a)
b)
c)
d)
e)

When testing for the equality of two population proportions, the F distribution is:
sometimes appropriate
never appropriate
only appropriate if both sample sizes are less than 30
only appropriate if at least one sample is at least 30
used when the two variances are not equal

10.

11.

12.

Calculate the pooled variance for the following sample data.

Sample mean
40
30
a) 3.33
b) 124.64

Sample Variance
10
12

Sample Size
12
15

c) 11.12
d) 34.4
e) none of the above
13.

Compute the p-value for a two-tailed test of the difference in two means, with both sample sizes at
least 30, if the test statistic is z = 2.50.
P-value: ..........................

14.

A survey was conducted to see if the proportion of men and women liking this brand of jeans
differed. In a sample of 100 men and 90 women, 62 of the men liked the jeans, and 66 of the women
liked the jeans. Construct a 95% confidence interval for the difference in the proportion of men and
women liking these jeans.
CI = [
,
]

15.

In fifty different localities, the cable company gives free access to all cable channels for a
weekend, as a promotional gesture. The mean proportion of customers who had the premium channels
before the promotion was 20%. The mean proportion of customers who had the premium channels
after the promotion was 26%. The increase significant at a = 0.05.
a) True
b) False

16.

Your company is interested in a new method of advertising. In order to test the new method they
have selected thirty-one control and thirty one experimental markets. Mean sales in the control
markets were 134, 630 with a standard deviation of 5,290. Mean sales in the experimental markets
were 138,780 with a standard deviation of 5,730. At the 95% confidence level you conclude that the
new method is better than the old.
a) True
b) False

1. A Type II error occurs when

A. We accept a false null hypothesis.
C. We reject a false null hypothesis.

B. We reject a true alternate hypothesis.

D. None of the above.

2. If a hypothesis test leads to the rejection of the null hypothesis

A. a Type II error is always committed
B a Type I error is always committed
C. a Type I error may have been committed
D. a Type II error may have been committed
3. How many Kleenex should the Kimberly Clark Corporation package of tissues contain? Researchers
determined that 60 tissues is the average number of tissues used during a cold. Suppose a random sample
of 10000 Kleenex users yielded the following data on the number of tissues used during a cold: Give the
null and alternative hypothesis to determine if the number of tissues used during a cold is less than 60.
A. H0: = 60 vs. H1: > 60
B. H0: = 60 vs. H1: < 60
C. H0: = 60 vs. H1: 60
D. H0: > 60 vs. H1: <= 60
4. A programmer has written a software package that points out errors in programs. Previously, this was
done manually. The mean number of errors the software picket out of 100 different programs was 15, with
a standard deviation of 8.2. The mean number of errors picked out manually, out of 100 programs, was 13,
with a standard deviation of 4.9. We want to test whether there is evidence that this software picks out
more errors than checking manually does. Assume that the software is population 1 and manual checking
is population 2.
State the null and alternative hypotheses to test whether this software does pick out more errors.
A. H0: 1 - 2 0, H1: 1 - 2 > 0
B. H0: 1 - 2 = 0, H1: 1 - 2 0
C. H0: 1 - 2 0, H1: 1 - 2 < 0
D. H0: 1 - 2 > 0, H1: 1 - 2 0
E. none of the above
5. Two samples each of size 25 are taken from independent populations assumed to be normally
distributed with equal variances. The first sample has a mean of 35.5 and standard deviation of 3.0 while
the second sample has a mean of 33.0 and standard deviation of 4.0. The computed t statistic is _____.
A. 3.6
B. 5
C. 2.5
D. 1.85
6. In testing for differences between the means of two independent populations if the test statistic is very
large, then the p-value of the test should be very small
A. True
B. False
7. When the sample size increases, everything else remaining the same, the width of a confidence interval
for the population parameter will:
A. Increase
B. Decrease
C. Remain unchanged
D. Sometimes increases and sometimes decreases
E. Impossible to tell
8. Weekly sales of diet coke at each of twelve Target stores are recorded before and after installing a new
eye-catching display. To determine if the display is effective in increasing sales, what type of statistical
test would you expect to perform?
A. Comparison of means using an independent sample t-test.
B. Comparison of means using a paired t-test.
C. Comparison of means using a z-test.
D. None of these above
9. The Board of Surgeons recommends a postoperative examination six months after a prostatectomy. In a
sample from the records of Cutter Memorial Hospital, follow-up exams were given in 90 out of 200 cases.

In a sample of records from Paymor Hospital, follow-up exams were given in 110 out of 200 cases. In a
left-tailed test for equality of proportions, the test statistic is
A. 1.96
B. 2.58
C. 2.00
D. 3.47
E. None of the above
10. Which is not true of p-values?
A. When they are small, we want to reject H0.
B. They show the chance of Type I error if we reject H0.
C. They must be specified before the sample is taken.
D. None of these above
11. A paper manufacturer samples 100 sheets of paper with the a variance in thickness of 0.0025 inches
squared. Construct a 95% confidence interval for the population variance.
A. [0.001990 , 0.003176]
B. [0.002010 , 0.002990]
C. [0.001910 , 0.003335]
D [0.001930 , 0.003368]
E [0.002011 , 0.003208]
12. A 99% confidence interval can be interpreted as:
A. In 99% of the samples, the mean of the samples will be outside the interval.
B. There is a 1% chance that the true parameter value is outside the interval.
C. Both A and B
D. None of these above.
13. When testing for the equality of two population proportions, the F distribution is:
A. sometimes appropriate
B. only appropriate if both sample sizes are less than 30
C. never appropriate
D. only appropriate if at least one sample is at least 30
E. used when the two variances are not equal
14. The rate of married women's participation in the work force has increased steadily over the past
several years. How does wives' employment status affect their husbands' well being? To answer this
question, a survey of the job satisfaction of 25 male accountants who were employed full-time and
married was conducted. In this sample, 15 wives were employed and 10 were unemployed. The goal of
the study is to compare the mean job satisfaction levels of the two groups of husbands: (1) those with
working wives and (2) those with unemployed wives. The observed significance level (p-value) of the
test, obtained from a computer printout, is .03. Is this sufficient evidence to conclude that the mean
satisfaction level of husbands with working wives is less than the mean satisfaction level of husbands with
unemployed wives?
A.Yes, at = .01
B. No, at = .10
C. Yes, at = .05
D. No, at = .04
15. In a a paired t-test, the two samples may be of unequal size.
A. True
B.False