Exam

Name___________________________________

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) In estimating the difference between two population means based on small, independent samples 1)
from the two populations, two important assumptions are that the populations each be normally
distributed and the populations have equal variances.

2) Marketing managers for a toy store located in two separate cities is interested in estimating the 2)
difference in the mean daily sales for the two cities. They want to calculate a 90 percent confidence
interval and will select a sample of 10 days in each store for the study. If the marketing managers
assume that the population standard deviations are known, the critical value for the confidence
interval is z = 1.645.

3) The t-distribution can be used to test hypotheses about the difference between two population 3)
means given the following two assumptions:
- each population is normally distributed, and
- the two populations have equal variances.

4) To find the pooled standard deviation involves taking a weighted average of the two sample 4)
variances, then finding its square root.

5) If the sample data lead us to suspect that the variances of the two populations are not equal, the 5)
t-test statistic and the degrees of freedom must be adjusted accordingly.

6) The NCAA is interested in estimating the difference in mean number of daily training hours for 6)
men and women athletes on college campuses. They want 95 percent confidence and will select a
sample of 10 men and 10 women for the study. The sample results are:

Men Women
n1 = 10 students n2 = 10 students
x 1 = 2.7 hours x 2 = 2.4 hours
s1 = .30 hours s2 = .40 hours

Based on these data, the point estimate is .30 hours.

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7) There is interest at the American Savings and Loan as to whether there is a difference between 7)
average daily balances in checking accounts that are joint accounts (two or more members per
account) versus single accounts (one member per account). To test this, a random sample of
checking accounts was selected with the following results:

Single Accounts Joint Accounts

n = 20 n = 30
s = $256 s = $300
x = $1,123 x = $1,245

Based upon these data, assuming that the populations are normally distributed with equal
variances, the test statistic for testing whether the two populations have equal means is
approximately -1.49.

8) The Cranston Hardware Company is interested in estimating the difference in the mean purchase 8)
for men customers versus women customers. It wishes to estimate this difference using a 95 percent
confidence level. If the sample size is n = 10 from each population, the samples are independent,
and sample standard deviations are used, and the variances are assumed equal, then the critical
value will be t = 2.1009.

9) The Cranston Hardware Company is interested in estimating the difference in the mean purchase 9)
for men customers versus women customers. It wishes to estimate this difference using a 95 percent
confidence level. Assume that the variances are equal and the populations normally distributed.
The following data represent independent samples from each population:

Men Women
16.49 17.21
33.34 17.46
20.18 15.65
26.39 10.67
28.03 14.07
26.02 19.61
16.08 15.90
32.27 11.17
21.66 24.66
32.32 13.35
29.79 20.87
33.37 22.57

Based on these data, the upper limit of the interval estimate is approximately $13.82.

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10) The Cranston Hardware Company is interested in estimating the difference in the mean purchase 10)
for men customers versus women customers. It wishes to estimate this difference using a 95 percent
confidence level. Assume that the variances are equal and the populations normally distributed.
The following data represent independent samples from each population:

Men Women
16.49 17.21
33.34 17.46
20.18 15.65
26.39 10.67
28.03 14.07
26.02 19.61
16.08 15.90
32.27 11.17
21.66 24.66
32.32 13.35
29.79 20.87
33.37 22.57

Based on these data, the company can conclude that there is a statistical difference between men
and women with regard to mean spending at the hardware store with men tending to spend more
on average than women.

11) If you are interested in estimating the difference between the means of two samples that have been 11)
paired, the point estimate for this difference is the mean value of the paired differences.

12) In comparing two populations using paired differences, after the difference is found for each pair, 12)
the method for testing whether the mean difference is equal to 0 becomes the same as was used for
a one-sample hypothesis test with unknown standard deviation.

13) When conducting a hypothesis test to determine whether or not two groups differ, using paired 13)
samples rather than independent samples has the advantage of controlling for sources of variation
that might distort the conclusions of the study.

14) Two placement exams are available that students can take to determine which math class they 14)
should begin with in their freshman year. It is believed that there is no difference in the mean
scores that would be received for the two tests. To test this using a 0.05 level of significance, a
randomly selected group of students took both tests and had their scores recorded. The following
data were obtained:

Student Test A Test B

1 78 82
2 86 74
3 74 79
4 72 93
5 75 80
6 68 82
7 77 99

Based on these data, the test statistic is approximately t = -1.892.

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15) An accounting firm has been hired by a large computer company to determine whether the 15)
proportion of accounts receivables with errors in one division (Division 1) exceeds that of the
second division (Division 2). The managers believe that such a difference may exist because of the
lax standards employed by the first division. To conduct the test, the accounting firm has selected
random samples of accounts from each division with the following results.

Division 1 Division 2
Sample Size n 1 = 100 n 2 = 100
Errors found x1 = 13 x2 = 8

Based on this information and using a significance level equal to 0.05, the critical value from the
standard normal table is z = 1.645.

16) An accounting firm has been hired by a large computer company to determine whether the 16)
proportion of accounts receivables with errors in one division (Division 1) exceeds that of the
second division (Division 2). The managers believe that such a difference may exist because of the
lax standards employed by the first division. To conduct the test, the accounting firm has selected
random samples of accounts from each division with the following results.

Division 1 Division 2
Sample Size n 1 = 100 n 2 = 100
Errors found x1 = 13 x2 = 8

Based on this information, and using a significance level equal to 0.05, the pooled estimator for the
overall proportion is p = .1050.

17) An accounting firm has been hired by a large computer company to determine whether the 17)
proportion of accounts receivables with errors in one division (Division 1) exceeds that of the
second division (Division 2). The managers believe that such a difference may exist because of the
lax standards employed by the first division. To conduct the test, the accounting firm has selected
random samples of accounts from each division with the following results.

Division 1 Division 2
Sample Size n 1 = 100 n 2 = 100
Errors found x1 = 13 x2 = 8

Based on this information and using a significance level equal to 0.05, the test statistic for the
hypothesis test is approximately 1.153 and, therefore, the null hypothesis is not rejected.

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 18) A major manufacturer of home electronics is interested in determining whether customers have a 18)
preference between two new speaker designs for their home entertainment centers. To test this, the
design department manager has selected a random sample of customers and shown them the first
design. A second sample of customers is shown design 2. The manager then asks each customer
whether they prefer the new design they were shown over the one they currently own. The
following results were observed:

Design 1 Design 2
Sample size n 1 = 150 n 2 = 80
Number preferring new x1 = 65 x2 = 58

Based on these data and a significance level equal to 0.05, the appropriate null and alternative
hypotheses are:
H0 : p 1 p2
Ha : p 1 < p 2

19) A major manufacturer of home electronics is interested in determining whether customers have a 19)
preference between two new speaker designs for their home entertainment centers. To test this, the
design department manager has selected a random sample of customers and shown them the first
design. A second sample of customers is shown design 2. The manager then asks each customer
whether they prefer the new design they were shown over the one they currently own. The
following results were observed:

Design 1 Design 2
Sample size n 1 = 150 n 2 = 80
Number preferring new x1 = 65 x2 = 58

Based on these data and a significance level equal to 0.05, the test statistic is approximately -4.22
and thus the null hypothesis should be rejected.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

20) A commuter has two different routes available to drive to work. She wants to test whether route A 20)
is faster than route B. The best hypotheses are:
A) H0 : µA - µ < 0 B) H0 : µA - µ 0
HA : µA - µ 0 HA : µA - µ > 0
C) H0 : µA - µ 0 D) H0 : µA - µ = 0
HA : µA - µ < 0 HA : µA - µ 0

21) A hypothesis test for the difference between two means is considered a two-tailed test when: 21)
A) the null hypothesis states that the population means are equal.
B) the population variances are equal.
C) the standard deviations are unknown.
D) the alpha level is 0.10 or higher.

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22) In conducting a hypothesis test for the difference between two population means where the 22)
standard deviations are known and the null hypothesis is:
H0 : µA - µ 0
What is the p-value assuming that the test statistic has been found to be z = 2.52?
A) 0.9882 B) 0.4941 C) 0.0059 D) 0.0118

23) Under what conditions can the t-distribution be correctly employed to test the difference between 23)
two population means?
A) When the population variances are assumed to be equal
B) When the two populations of interest are assumed to be normally distributed
C) When the samples from the two populations are small and the population variances are
unknown
D) All of the above

24) A company in Maryland has developed a device that can be attached to car engines, which it 24)
believes will increase the miles per gallon that cars will get. The owners are interested in estimating
the difference between mean mpg for cars using the device versus those that are not using the
device. The following data represent the mpg for random independent samples of cars from each
population. The variances are assumed equal and the populations normally distributed.

With Device Without Device

22.6 26.9
23.4 24.4
28.4 20.8
29.0 20.8
29.3 20.2
20.0 26.0
28.1
25.6

Given this data, what is the upper limit for a 95 percent confidence interval estimate for the
difference in mean mpg?
A) Approximately 3.88 mpg B) Just under 25.0
C) About 5.44 mpg D) None of the above

25) The management of a department store is interested to estimate the difference in the amount of 25)
money spent by female and male shoppers. You are given the following information.

Female Shoppers Male Shoppers

Sample size 64 49
Sample mean $140 $125
Population standard deviation $10 $8

A 95 percent confidence interval estimate for the difference between the average purchases of the
customers using the two different credit cards is:
A) 8 to 10 B) 49 to 64 C) 125 to 140 D) 11.68 to 18.32

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26) Given the following information, calculate the degrees of freedom that should be used in the 26)
pooled-standard deviation t-test.
s1 2 = 4 s2 2 = 6
n1 = 16 n2 = 25
A) df = 41 B) df = 25 C) df = 16 D) df = 39

27) A recent study posed the question about whether Japanese managers are more motivated than 27)
American managers. A randomly selected sample of each was administered the Sarnoff Survey of
Attitudes Toward Life (SSATL), which measures motivation for upward mobility. The SSATL
scores are summarized below.

American Japanese
Sample Size 211 100
Mean SSATL Score 65.75 79.83
Population Std. Dev 11.07 6.41

Judging from the way the data were collected, which test would likely be most appropriate?
A) Pooled-variance t-test for the difference in means
B) Independent samples Z-test for the difference in means
C) Related samples Z-test for mean difference
D) Related samples t-test for mean difference

28) A recent study posed the question about whether Japanese managers are more motivated than 28)
American managers. A randomly selected sample of each was administered the Sarnoff Survey of
Attitudes Toward Life (SSATL), which measures motivation for upward mobility. The SSATL
scores are summarized below.

American Japanese
Sample Size 211 100
Mean SSATL Score 65.75 79.83
Population Std. Dev 11.07 6.41

Which of the following is the correct the null and alternative hypotheses to determine if the average
SSATL score of Japanese managers differs from the average SSATL score of American managers?
A) H0 : µA - µJ 0 versus H1 : µA - µJ > 0 B) H0 : µA - µJ 0 versus H1 : µA - µJ < 0
C) H0 : µA - µJ = 0 versus H1 : µA - µJ 0 D) H0 : XA - XJ = 0 versus H1 : XA - XJ 0

29) There have been complaints recently from homeowners in the north end claiming that their homes 29)
have been assessed at values that are too high compared with other parts of town. They say that the
mean increase from last year to this year has been higher in their part of town than elsewhere. To
test this, the assessor's office staff plans to select a random sample of north end properties (group 1)
and a random sample of properties from other areas within the city (group 2) and perform a
hypothesis test. Based on the information provided, the research (or alternate) hypothesis is:
A) µ1 µ2 B) µ1 < µ2 C) µ1 = µ2 D) µ1 > µ2

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30) There have been complaints recently from homeowners in the north end claiming that their homes 30)
have been assessed at values that are too high compare with other parts of town. They say that the
mean increase from last year to this year has been higher in their part of town than elsewhere. To
test this, the assessor's office staff plans to select a random sample of north end properties (group 1)
and a random sample of properties from other areas within the city (group 2) and perform a
hypothesis test. The following sample information is available:

North End Other

Sample Size 20 10
Sample Mean Increase $4,010 $3,845
Sample St. Deviations $1,800 $1,750

Assuming that the null hypothesis will be tested using an alpha level equal to 0.05, what is the
value of the test statistic?
A) t = 1.7011 B) z = 1.578 C) t = 0.2388 D) t = 0.3944

31) There have been complaints recently from homeowners in the north end claiming that their homes 31)
have been assessed at values that are too high compare with other parts of town. They say that the
mean increase from last year to this year has been higher in their part of town than elsewhere. To
test this, the assessor's office staff plans to select a random sample of north end properties (group 1)
and a random sample of properties from other areas within the city (group 2) and perform a
hypothesis test. The following sample information is available:

North End Other

Sample Size 20 10
Sample Mean Increase $4,010 $3,845
Sample St. Deviations $1,800 $1,750

Assuming that the null hypothesis will be tested using an alpha level equal to 0.05, what is the
critical value?
A) t = 1.7011 B) t = 0.2388 C) t = 2.0484 D) z = 1.578

32) The U.S. Golf Association provides a number of services for its members. One of these is the 32)
evaluation of golf equipment to make sure that the equipment satisfies the rules of golf. For
example, they regularly test the golf balls made by the various companies that sell balls in the
United States. Recently they undertook a study of two brands of golf balls with the objective to see
whether there is a difference in the mean distance that the two golf ball brands will fly off the tee.
To conduct the test, the U.S.G.A. uses a robot named "Iron Byron," which swings the club at the
same speed and with the same swing pattern each time it is used. The following data reflect sample
data for a random sample of balls of each brand.

Brand A: 234 236 230 227 234 233 228 229 230 238
Brand B: 240 236 241 236 239 243 230 239 243 240

Given this information, what is the test statistic for testing whether the two population means are
equal?
A) t = 1.115 B) t = -4.04 C) t = 1.96 D) t = -2.58

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33) The t-test for the mean difference between 2 related populations assumes that the respective: 33)
A) populations are approximately normal or sample sizes are large.
B) sample sizes are equal.
C) sample variances are equal.
D) All of the above

34) Suppose that a group of 10 people join a weight loss program for 3 months. Each person's weight is 34)
recorded at the beginning and at the end of the 3-month program. To test whether the weight loss
program is effective, the data should be treated as:
A) paired samples using the t-distribution.
B) independent samples using the t-distribution.
C) independent samples using the normal distribution.
D) independent proportions.

35) Assume that 20 people participated in a weight loss program for 6 months. Each person's weight 35)
before and after the program is determined and recorded. The following summarizes the results for
the 20 people:

Mean weight lost = 9 pounds

Sample standard deviation of weight lost = 4.6 pounds

Assume that the hypothesis test will be conducted to determine whether or not the weight loss
program is effective using a 0.05 level of significance. What is the value of the test statistic?
A) t = 1.96 B) z = 6.19 C) z = 1.96 D) t = 18.634

36) Most companies that make golf balls and golf clubs use a one-armed robot named "Iron Byron" to 36)
test their balls for length and accuracy, but because of swing variations by real golfers, these test
robots don't always indicate how the clubs will perform in actual use. One company in the golfing
industry is interested in testing its new driver to see how it compares with the best-selling driver.
To do this, it has selected a group of golfers of differing abilities and ages. Its plan is to have each
player use each of the two clubs and hit five balls. It will record the average length of the drives
with each club for each player. Given this description of the planned test, which of the following
statements is true?
A) The samples in this case are called paired samples since the same players are hitting both golf
clubs.
B) The test will be invalid unless different players are used to hit each club so that the samples
will be independent.
C) The test won't be meaningful if only five balls are hit by each player with each club.
D) The samples are independent because each player is independent of the other players.

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37) Most companies that make golf balls and golf clubs use a one-armed robot named "Iron Byron" to 37)
test their balls for length and accuracy, but because of swing variations by real golfers, these test
robots don't always indicate how the clubs will perform in actual use. One company in the golfing
industry is interested in testing its new driver to see if has greater length off the tee than the
best-selling driver. To do this, it has selected a group of golfers of differing abilities and ages. Its
plan is to have each player use each of the two clubs and hit five balls. It will record the average
length of the drives with each club for each player. The resulting data for a sample of 10 players is:

Player New Club Leading Club

1 236.4 237.2
2 202.5 200.4
3 245.6 240.8
4 257.4 259.3
5 223.5 218.9
6 205.3 200.6
7 266.7 258.9
8 240 236.5
9 278.9 280.5
10 211.4 206.5

Based on these sample data, what is the point estimate for the difference between the mean distance
for the new driver versus the leading driver?
A) -3.45 B) 233.4 C) 1.55 D) 2.81

38) An advertising company has developed a new ad for one of the national car manufacturing 38)
companies. The ad agency is interested in testing whether the proportion of favorable response to
the ad is the same between male adults versus female adults. It plans on conducting the test using
an alpha level equal to 0.05. A sample of 100 adults of each gender will be used in the study. Each
person will be asked to view the ad and indicate whether they find the ad to be "pleasing" or not.
The samples resulted in 57 males that liked the ad and 47 females that liked the ad. Based on this
information, what is the value of the test statistic?
A) t = 2.234 B) z = 1.42 C) z = 1.024 D) z = 1.645

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39) Descent, Inc., produces a variety of climbing and mountaineering equipment. One of its products is 39)
a traditional three-strand climbing rope. An important characteristic of any climbing rope is its
tensile strength. Descent produces the three-strand rope on two separate production lines: one in
Bozeman and the other in Challis. The Bozeman line has recently installed new production
equipment. Descent regularly tests the tensile strength of its ropes by randomly selecting ropes
from production and subjecting them to various tests. The most recent random sample of ropes,
taken after the new equipment was installed at the Bozeman plant, revealed the following:

Bozeman Challis
x 1 = 7,200 lb x 2 = 7,087 lb
s1 = 425 s2 = 415
n1 = 25 n2 = 20

Descent's production managers are willing to assume that the population of tensile strengths for
each plant is approximately normally distributed with equal variances. Based on the sample
results, can Descent's managers conclude that there is a difference between the mean tensile
strengths of ropes produced in Bozeman and Challis? Conduct the appropriate hypothesis test at
the 0.05 level of significance.
A) Because the calculated value of t = -2.8126 is less than the lower tail critical value of t =
-2.0167, reject the null hypothesis. Based on these sample data, at the = 0.05 level of
significance there is sufficient evidence to conclude that the average tensile strength of ropes
produced at the two plants is different.
B) Because the calculated value of t = 0.896 is neither less than the lower tail critical value of t =
-2.0167, nor greater than the upper tail critical value of t = 2.0167, do not reject the null
hypothesis. Based on these sample data, at the = 0.05 level of significance there is not
sufficient evidence to conclude that the average tensile strength of ropes produced at the two
plants is different.
C) Because the calculated value of t = 2.8126 is greater than the lower tail critical value of t =
-2.0167, reject the null hypothesis. Based on these sample data, at the = 0.05 level of
significance there is sufficient evidence to conclude that the average tensile strength of ropes
produced at the two plants is different.
D) Because the calculated value of t = 0.451 is neither less than the lower tail critical value of t =
-2.0167, nor greater than the upper tail critical value of t = 2.0167, do not reject the null
hypothesis. Based on these sample data, at the = 0.05 level of significance there is not
sufficient evidence to conclude that the average tensile strength of ropes produced at the two
plants is different.

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40) Suppose as part of a national study of economic competitiveness a marketing research firm 40)
randomly sampled 200 adults between the ages of 27 and 35 living in metropolitan Seattle and 180
adults between the ages of 27 and 35 living in metropolitan Minneapolis. Each adult selected in the
sample was asked, among other things, whether they had a college degree. From the Seattle sample
66 adults answered yes and from the Minneapolis sample 63 adults answered yes when asked if
they had a college degree. Based on the sample data, can we conclude that there is a difference
between the population proportions of adults between the ages of 27 and 35 in the two cities with
college degrees? Use a level of significance of 0.10 to conduct the appropriate hypothesis test.
A) Since the test statistic, 0.7001, is not greater than the critical value of 1.645, do not reject the
null hypothesis and conclude that there is not a higher proportion of Seattle adults that have a
college degree.
B) Since the test statistic, 1.8214, is greater than the critical value of 1.645, reject the null
hypothesis and conclude that there is a higher proportion of Seattle adults that have a college
degree
C) Since the test statistic, 0.8921, is not greater than the critical value of 1.645, do not reject the
null hypothesis and conclude that there is not a higher proportion of Seattle adults that have a
college degree.
D) Since the test statistic, 2.0112, is greater than the critical value of 1.645, reject the null
hypothesis and conclude that there is a higher proportion of Seattle adults that have a college
degree.

41) The American College Health Association produced the National College Health Assessment 41)
(Andy Gardiner, "Surfacing from Depression," February 6, 2006). The assessment indicates that the
percentage of U.S. college students who report having been diagnosed with depression has risen
from 2000. The assessment surveyed 47,202 students at 74 campuses. It discovered that 10.3% and
14.9% of students indicated that they had been diagnosed with depression in 2000 and 2004,
respectively. Assume that half of the students surveyed were surveyed in 2004.
Conduct a hypothesis test to determine if there has been more than a 0.04 increase in the proportion
of students who indicated they have been diagnosed with depression. Use a significance level of
0.05 and a p-value approach to this test.
A) Since p-value = 0.025 < 0.05, reject H0. There is sufficient evidence to conclude that there has
been more than a 0.04 increase in the proportion of students that indicate they have been
diagnosed with depression.
B) Since p-value = 0.065 > 0.05, do not reject H0. There is not sufficient evidence to conclude that
there has been more than a 0.04 increase in the proportion of students that indicate they have
been diagnosed with depression.
C) Since p-value = 0.072 < 0.05, reject H0. There is sufficient evidence to conclude that there has
been more than a 0.04 increase in the proportion of students that indicate they have been
diagnosed with depression.
D) Since p-value = 0.071 > 0.05, do not reject H0. There is not sufficient evidence to conclude that
there has been more than a 0.04 increase in the proportion of students that indicate they have
been diagnosed with depression.

42) The American College Health Association produced the National College Health Assessment 42)
(Andy Gardiner, "Surfacing from Depression," February 6, 2006). The assessment indicates that the
percentage of U.S. college students who report having been diagnosed with depression has risen
from 2000. The assessment surveyed 47,202 students at 74 campuses. It discovered that 10.3% and
14.9% of students indicated that they had been diagnosed with depression in 2000 and 2004,
respectively. Assume that half of the students surveyed were surveyed in 2004.
Indicate the margin of error for estimating p 1 - p 2 with p 1 - p 2 .
A) 0.04156 B) 0.03418 C) 0.00121 D) 0.00597

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