Reference no: EM13786259

For this and the next 2 questions. An investment company claims that the average annual return on a well-diversified stock portfolio is 11.5%. You wish to test the validity of this claim. You then collect a random sample of 50 stocks across various industries and find that x-bar = 10.8% and s = 3.4%. You wish to conduct a test of hypothesis (alpha = 0.05) to see whether there is sufficient evidence to reject the claim. Which one of the following is the correct statement of hypothesis?

Question 1

1. Calculated Z-value:

		1.645
		-1.4558
		-0.206
		None of the above

1 points  

Question 2

1. Calculate p-value.

		0.00
		About 0.43
		About 0.14
		None of the above

 

1. For this and the next 3 Questions. The average weekly earnings for all fulltime equivalent employees are reported to be $344. You believe that this claim is too low. You wish to prove that that the weekly earnings are HIGHER than the amount stated. You proceed by collecting a random sample of 1,200 employee data in all areas and find that the sample mean is $361 and sample standard deviation is $110. The significance level (alpha) for this test is 0.01. Write the statement of hypothesis.

2.		H0:  μ  ≤  $344;   H1:           μ  > $344
		H0:  μ  =  $344;   H1:           μ  ≠ $344
		H0:  μ  ≥  $344;   H1:           μ  < $344
		None of the above

1 points  

Question 3

1. Calculate Z.

		0.15455
		0.491
		5.354
		None of the above

1 points  

Question 4

1. What is the p-value?

		About 0.00
		About 0.3254
		About 0.01
		None of the above

1 points  

Question 5

1. State your decision and conclusion.

		Do NOT reject H0. P-value > level of significance. There is no evidence that weekly earnings for FTE employees are greater than $344.
		Reject H0. P-value < level of significance. There is evidence that weekly earnings for FTE employees is greater than $344
		Reject H0. P-value > level of significance. There is no evidence that weekly earnings for FTE employees are greater than $344.
		None of the above

1 points  

Question6

1. Other things held constant, which of the following will result in an increase in the power of a hypothesis test? [I] Increase in the sample size (n). [II] Increase in level of significance. [III] Increase in standard error. [IV] Decrease in the sample size (n)

		I and II
		I and III
		II and IV
		III and IV

1 points  

Question 7

1. The null and alternative hypotheses of a t test for the mean are given as follows:  H₀: μ≥ $344  and  H₁: μ<  $344. Other things held the same, which of the following will result in an increase in the p-value ? [I] Increase in the sample size [II] Decrease in the sample size [III] Increase in the sample standard deviation [IV] Increase in the level of significance.

		I and III
		II and III
		I and IV
		II and IV

1 points  

Question 8

1. For this and the next 3 questions: A travel agency claims that at least 58% of all airline bookings are made online. However a sample of 70 airline reservations revealed that only 52% of recent bookings were made online. At the 10% significance level, carry out the hypothesis test. First, state the null and alternative hypotheses.

		H0: p ≠  0.58 or 58%;  H1: p = 0.58 or 58%
		H0: p =  0.58 or 58%;  H1: p ≠ 0.58 or 58%
		H0: p ≤  0.58 or 58%;  H1: p > 0.58 or 58%
		H0: p ≥  0.58 or 58%;  H1: p < 0.58 or 58%
		None of the above

1 points  

Question 9

1. Describe the normal curve appropriate for this test of hypothesis.

		Two-tail with critical Z values of ±1.285
		One-tail (right-tail) with critical Z value of 1.285
		Two-tail with critical Z values of ±1.285
		One-tail (left-tail) with critical Z value of -1.285
		None of the above

1 points  

Question 10

1. Calculate Z

		-1.0171
		1.285
		-17.24
		None of the above

1 points  

Question 11

1. Calculate p-value

		About 0.15 *
		About 0.05
		About 0.45
		None of the above

1 points  

Question 12

1. Suppose you wish to test the null hypothesis that the mean of a population is 100 versus the alternative that the mean is not equal to 100. You then take a sample and calculate a sample of mean of 90. Which of the following conclusions is correct?

		You should reject the null hypothesis
		You should not reject the null hypothesis
		You should reject the null if n > 30, otherwise do not reject
		You should accept the alternative hypothesis
		You have incomplete information to make a conclusion. You need to know the standard deviation and sample size