Unit 12: Hypothesis Testing - Practice Quiz

ECAP790 60 Questions
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1 What is a statistical hypothesis?

Definition of hypothesis Easy
A. A statement about a population parameter
B. A method for collecting observations
C. A calculation of a sample range
D. A graph showing sample frequencies

2 What does the null hypothesis, , usually state?

Definition of hypothesis Easy
A. No effect or difference exists
B. Every observation is identical
C. The sample size is sufficient
D. A strong positive relationship exists

3 What does the alternative hypothesis, , generally represent?

Definition of hypothesis Easy
A. The population size is unknown
B. The sample contains no variation
C. An effect or difference exists
D. A calculation error has occurred

4 Which hypothesis is tested directly in a standard hypothesis test?

Definition of hypothesis Easy
A. The alternative hypothesis
B. The null hypothesis
C. The research hypothesis
D. The sampling hypothesis

5 Which alternative hypothesis represents a two-tailed test for a population mean?

Definition of hypothesis Easy
A.
B.
C.
D.

6 Which alternative hypothesis represents a right-tailed test?

Definition of hypothesis Easy
A.
B.
C.
D.

7 What is normally the first step in hypothesis testing?

Statistical procedure of hypothesis testing Easy
A. Prepare a frequency graph
B. State the null and alternative hypotheses
C. Calculate the sample range
D. Reject the null hypothesis

8 What does the significance level represent?

Statistical procedure of hypothesis testing Easy
A. The value of the sample mean
B. The proportion of sampled individuals
C. The probability of a Type I error
D. The probability of a Type II error

9 A significance level of is equal to what percentage?

Statistical procedure of hypothesis testing Easy
A.
B.
C.
D.

10 What is a p-value?

Statistical procedure of hypothesis testing Easy
A. The probability of equally or more extreme data under
B. The selected size of the sample
C. The fixed value of the population mean
D. The probability that is true

11 What decision is usually made when the p-value is less than ?

Statistical procedure of hypothesis testing Easy
A. Accept the sample hypothesis
B. Reject the null hypothesis
C. Reduce the population size
D. Increase the significance level

12 What decision is usually made when the p-value is greater than ?

Statistical procedure of hypothesis testing Easy
A. Reject the null hypothesis
B. Decrease the sample mean
C. Fail to reject the null hypothesis
D. Prove the alternative hypothesis

13 What is a Type I error?

Statistical procedure of hypothesis testing Easy
A. Rejecting a false
B. Failing to reject a false
C. Rejecting a true
D. Failing to reject a true

14 What is a Type II error?

Statistical procedure of hypothesis testing Easy
A. Failing to reject a false
B. Failing to reject a true
C. Rejecting a true
D. Rejecting a false

15 What is the purpose of a test statistic?

Statistical procedure of hypothesis testing Easy
A. To set the population parameter
B. To select members of the population
C. To summarize sample evidence about
D. To remove all sampling variation

16 What is the critical region of a hypothesis test?

Statistical procedure of hypothesis testing Easy
A. Values that calculate the median
B. Values that describe the population size
C. Values that lead to rejecting
D. Values that define the sample size

17 A manufacturer tests whether the mean bottle fill is mL. What is an appropriate null hypothesis?

Applications of hypothesis testing in business contexts Easy
A. mL
B. mL
C. mL
D. mL

18 A company tests whether a new advertisement increases average sales. Which test direction is appropriate?

Applications of hypothesis testing in business contexts Easy
A. A two-tailed test
B. A variance-only test
C. A left-tailed test
D. A right-tailed test

19 How can hypothesis testing help a business evaluate employee training?

Applications of hypothesis testing in business contexts Easy
A. By fixing the performance score in advance
B. By guaranteeing that every employee improved
C. By eliminating differences among employees
D. By testing whether performance improved

20 A quality manager tests whether a new process lowers the defect rate. What business decision can the test support?

Applications of hypothesis testing in business contexts Easy
A. Whether to change the company logo
B. Whether to adopt the new process
C. Whether to increase office space
D. Whether to rename the product

21 Which statement is a statistical hypothesis?

Definition of hypothesis Medium
A. The company recorded deliveries yesterday
B. The population mean delivery time is minutes
C. The fastest delivery took minutes
D. The sample mean delivery time was minutes

22 A bottling company claims that its machines fill bottles with a mean of mL. Which null hypothesis represents this claim?

Definition of hypothesis Medium
A.
B.
C.
D.

23 A retailer wants to determine whether a new layout increases mean daily sales above the previous mean of . What is the appropriate alternative hypothesis?

Definition of hypothesis Medium
A.
B.
C.
D.

24 Which pair of hypotheses correctly tests whether a population proportion differs from ?

Definition of hypothesis Medium
A. and
B. and
C. and
D. and

25 Why are the null and alternative hypotheses required to be mutually exclusive?

Definition of hypothesis Medium
A. Neither may refer to an unknown population value
B. Only one can describe the population parameter at a time
C. Both must be accepted whenever the sample is large
D. Each must contain an equality involving the parameter

26 A population has known standard deviation . For , the sample mean is , and . What is the test statistic?

Statistical procedure of hypothesis testing Medium
A.
B.
C.
D.

27 For versus , a test produces . At , the right-tail critical value is . What decision should be made?

Statistical procedure of hypothesis testing Medium
A. Reject
B. Repeat the test automatically
C. Fail to reject
D. Accept as proven

28 A hypothesis test gives a p-value of . What is the correct decision at ?

Statistical procedure of hypothesis testing Medium
A. Reject because
B. Reject because
C. Retain because
D. Change to match the p-value

29 A quality manager rejects : "The defect rate is no greater than " when the true defect rate is actually no greater than . What error occurred?

Statistical procedure of hypothesis testing Medium
A. A measurement-scale error
B. A Type I error
C. A Type II error
D. A sampling-frame error

30 A bank fails to detect that the mean transaction time has increased when it actually has increased. Which error has occurred?

Statistical procedure of hypothesis testing Medium
A. A Type II error
B. A Type I error
C. A calculation error
D. A classification error

31 If the significance level is reduced from to while all other conditions remain unchanged, what generally happens?

Statistical procedure of hypothesis testing Medium
A. The sample mean becomes smaller
B. Type I error risk decreases
C. Statistical power always increases
D. Type I error risk increases

32 A confidence interval for a difference in population means is . What conclusion follows for a two-tailed test of at ?

Statistical procedure of hypothesis testing Medium
A. Fail to reject because the interval has finite width
B. Reject because is outside the interval
C. Reject because is inside the interval
D. Fail to reject because both bounds are positive

33 Historically, of customers cancel a subscription. In a sample of customers, cancel. For versus , which test statistic is closest?

Statistical procedure of hypothesis testing Medium
A.
B.
C.
D.

34 A one-sample t-test is conducted using a random sample of observations. How many degrees of freedom are used?

Statistical procedure of hypothesis testing Medium
A.
B.
C.
D.

35 Which change will generally increase the power of a hypothesis test when the effect size and significance level remain fixed?

Statistical procedure of hypothesis testing Medium
A. Using less precise measurements
B. Increasing the sample size
C. Reducing the sample size
D. Increasing measurement variability

36 A company compares customer spending before and after the same customers join a loyalty program. Which procedure is most appropriate?

Applications of hypothesis testing in business contexts Medium
A. An independent-samples t-test
B. A paired-samples t-test
C. A chi-square goodness-of-fit test
D. A one-sample proportion test

37 An online retailer randomly assigns visitors to two page designs and compares their purchase proportions. Which test best evaluates whether conversion rates differ?

Applications of hypothesis testing in business contexts Medium
A. A paired-samples t-test
B. A one-sample mean test
C. A variance ratio test
D. A two-proportion z-test

38 A manufacturer wants to determine whether defect status is associated with the supplier used. Both variables are categorical. Which test is appropriate?

Applications of hypothesis testing in business contexts Medium
A. A simple linear correlation test
B. A chi-square test of independence
C. A paired-samples t-test
D. A one-sample z-test for a mean

39 A new advertisement produces a p-value of when testing whether mean weekly sales increased. The company selected before collecting data. What should it conclude?

Applications of hypothesis testing in business contexts Medium
A. There is insufficient evidence of an increase at
B. There is sufficient evidence of an increase at
C. The advertisement certainly reduced weekly sales
D. The null hypothesis has a probability of

40 A very large sample shows that a pricing change increases mean profit per transaction by with p-value below . What should management examine before implementation?

Applications of hypothesis testing in business contexts Medium
A. Whether statistical significance proves zero risk
B. Whether the gain is practically valuable after costs
C. Whether the p-value can be changed to
D. Whether the null hypothesis is exactly true

41 Which pair correctly classifies the hypotheses and ?

Definition of hypothesis Hard
A. is composite, and is simple.
B. is simple, and is composite.
C. is composite, and is composite.
D. is simple, and is simple.

42 A manufacturer will adopt a process only if evidence shows that its mean defect rate is below the current benchmark . Which formulation places the burden of proof appropriately?

Definition of hypothesis Hard
A. versus
B. versus
C. versus
D. versus

43 For testing against , why is the Type I error probability commonly calibrated at the boundary ?

Definition of hypothesis Hard
A. The boundary often maximizes rejection probability over the null.
B. The boundary makes Type II error equal to significance level.
C. The boundary converts every composite hypothesis into a simple one.
D. The boundary always makes the test statistic normally distributed.

44 A population has known standard deviation . For , the sample mean is . Testing against at , which conclusion is correct?

Statistical procedure of hypothesis testing Hard
A. , so retain because .
B. , so retain because .
C. , so reject because .
D. , so reject because .

45 A symmetric test statistic produces an observed value . Under , . What is the two-sided -value when testing departure in either direction?

Statistical procedure of hypothesis testing Hard
A.
B.
C.
D.

46 A one-sided -test of a mean uses . The standard deviation is , and the test should have power to detect an increase of . Using and , what minimum sample size is required?

Statistical procedure of hypothesis testing Hard
A.
B.
C.
D.

47 A valid confidence interval for is . What follows for the corresponding two-sided test of at ?

Statistical procedure of hypothesis testing Hard
A. Fail to reject because the interval contains zero.
B. Fail to reject because both endpoints differ from zero.
C. Reject because the interval midpoint is positive.
D. Reject because most interval values are positive.

48 Ten related null hypotheses are tested, and arbitrary dependence among their test statistics is possible. Which per-test threshold guarantees family-wise error rate at most by the Bonferroni method?

Statistical procedure of hypothesis testing Hard
A.
B.
C.
D.

49 A company records each employee's productivity before and after introducing software. Measurements within an employee are strongly correlated. Which test most directly uses this design when normality of individual differences is plausible?

Statistical procedure of hypothesis testing Hard
A. A chi-square test applied to the productivity variances
B. A paired -test applied to within-employee differences
C. A one-sample proportion test applied to improvement indicators
D. A pooled -test applied to the two sets of scores

50 Two independent groups have unequal variances and unequal sample sizes. The observations are approximately normal. Which procedure best tests equality of population means without assuming equal variances?

Statistical procedure of hypothesis testing Hard
A. Welch's two-sample -test
B. Pearson's chi-square independence test
C. The paired-sample -test
D. The pooled two-sample -test

51 In an A/B experiment, variant A has conversions among users and variant B has among . For versus , which result is closest for the pooled two-proportion -test?

Statistical procedure of hypothesis testing Hard
A. and
B. and
C. and
D. and

52 A study reports for a correctly specified test. Which interpretation is valid?

Statistical procedure of hypothesis testing Hard
A. If the experiment were repeated, the effect would replicate with probability .
B. The probability that is true after observing the data is exactly .
C. The probability that the reported result occurred only by chance is exactly .
D. If were true, results this extreme or more would occur with probability .

53 An analyst repeatedly checks an ordinary fixed-sample -value after every new observation and stops when . No sequential correction was planned. What is the principal consequence?

Statistical procedure of hypothesis testing Hard
A. The null distribution remains valid for every stopping rule.
B. The actual Type I error generally exceeds .
C. The estimate becomes unbiased because stopping is data-dependent.
D. The actual Type II error necessarily becomes exactly .

54 Let denote the mean outcome for a new product minus that for a standard product, where larger is better. With noninferiority margin , which hypotheses test whether the new product is not worse by more than ?

Statistical procedure of hypothesis testing Hard
A. versus
B. versus
C. versus
D. versus

55 An A/B test estimates an average revenue increase of per user with a confidence interval . Deployment costs require an increase of at least per user. Which conclusion is best?

Applications of hypothesis testing in business contexts Hard
A. The effect is statistically null because the interval includes .
B. The effect is commercially sufficient because the point estimate is positive.
C. The effect is statistically positive but not established as commercially sufficient.
D. The effect is commercially sufficient because the interval excludes zero.

56 A fraud screen flags of fraudulent transactions and of legitimate transactions. If of transactions are fraudulent, approximately what proportion of flagged transactions are actually fraudulent?

Applications of hypothesis testing in business contexts Hard
A.
B.
C.
D.

57 A retailer tests against , where is mean weekly demand. It increases inventory only after rejecting . In this setting, what is a Type II error?

Applications of hypothesis testing in business contexts Hard
A. Increasing inventory when sampled mean demand exceeds
B. Failing to increase inventory when true mean demand exceeds
C. Failing to increase inventory when true mean demand equals
D. Increasing inventory when true mean demand does not exceed

58 A firm evaluates a regional advertising campaign using treated and untreated regions before and after launch. In a difference-in-differences regression, which hypothesis directly tests the campaign's average effect under parallel trends?

Applications of hypothesis testing in business contexts Hard
A. The post-period indicator coefficient equals zero.
B. The treatment-by-post-period interaction coefficient equals zero.
C. The treatment-region indicator coefficient equals zero.
D. The regression intercept coefficient equals zero.

59 A marketing experiment randomizes treatment by store but analyzes thousands of customer purchases as independent observations. What is the most likely inferential problem?

Applications of hypothesis testing in business contexts Hard
A. Standard errors are understated because customers within stores are correlated.
B. Standard errors are overstated because store randomization removes all variation.
C. The significance level is unchanged because the customer count is large.
D. The treatment estimate is undefined because outcomes are customer-level.

60 A company tests five customer segments and plans to advertise success if any segment has . Assuming independent true nulls, what is the probability of at least one false rejection?

Applications of hypothesis testing in business contexts Hard
A.
B.
C.
D.