Correct Answer: A statement about a population parameter
Explanation:
A statistical hypothesis is a testable statement about a population parameter or distribution.
Incorrect! Try again.
2What does the null hypothesis, , usually state?
Definition of hypothesis
Easy
A.The sample size is sufficient
B.Every observation is identical
C.A strong positive relationship exists
D.No effect or difference exists
Correct Answer: No effect or difference exists
Explanation:
The null hypothesis usually states that there is no effect, difference, or relationship.
Incorrect! Try again.
3What does the alternative hypothesis, , generally represent?
Definition of hypothesis
Easy
A.The sample contains no variation
B.The population size is unknown
C.A calculation error has occurred
D.An effect or difference exists
Correct Answer: An effect or difference exists
Explanation:
The alternative hypothesis states that an effect, difference, or relationship exists.
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4Which hypothesis is tested directly in a standard hypothesis test?
Definition of hypothesis
Easy
A.The alternative hypothesis
B.The research hypothesis
C.The null hypothesis
D.The sampling hypothesis
Correct Answer: The null hypothesis
Explanation:
A hypothesis test evaluates whether the evidence is strong enough to reject the null hypothesis.
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5Which alternative hypothesis represents a two-tailed test for a population mean?
Definition of hypothesis
Easy
A.
B.
C.
D.
Correct Answer:
Explanation:
A two-tailed test checks whether the population mean differs from the stated value in either direction.
Incorrect! Try again.
6Which alternative hypothesis represents a right-tailed test?
Definition of hypothesis
Easy
A.
B.
C.
D.
Correct Answer:
Explanation:
A right-tailed test examines whether the population parameter is greater than a specified value.
Incorrect! Try again.
7What is normally the first step in hypothesis testing?
Statistical procedure of hypothesis testing
Easy
A.Reject the null hypothesis
B.Calculate the sample range
C.Prepare a frequency graph
D.State the null and alternative hypotheses
Correct Answer: State the null and alternative hypotheses
Explanation:
The procedure begins by clearly defining the null and alternative hypotheses.
Incorrect! Try again.
8What does the significance level represent?
Statistical procedure of hypothesis testing
Easy
A.The proportion of sampled individuals
B.The value of the sample mean
C.The probability of a Type II error
D.The probability of a Type I error
Correct Answer: The probability of a Type I error
Explanation:
The significance level is the chosen probability of rejecting a true null hypothesis.
Incorrect! Try again.
9A significance level of is equal to what percentage?
Statistical procedure of hypothesis testing
Easy
A.
B.
C.
D.
Correct Answer:
Explanation:
Multiplying by gives a significance level of .
Incorrect! Try again.
10What is a p-value?
Statistical procedure of hypothesis testing
Easy
A.The fixed value of the population mean
B.The selected size of the sample
C.The probability that is true
D.The probability of equally or more extreme data under
Correct Answer: The probability of equally or more extreme data under
Explanation:
The p-value measures how likely equally or more extreme sample results are if is true.
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11What 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.Increase the significance level
D.Reduce the population size
Correct Answer: Reject the null hypothesis
Explanation:
When the p-value is below , the result is statistically significant and is rejected.
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12What decision is usually made when the p-value is greater than ?
Statistical procedure of hypothesis testing
Easy
A.Prove the alternative hypothesis
B.Reject the null hypothesis
C.Decrease the sample mean
D.Fail to reject the null hypothesis
Correct Answer: Fail to reject the null hypothesis
Explanation:
A p-value greater than indicates insufficient evidence to reject .
Incorrect! Try again.
13What is a Type I error?
Statistical procedure of hypothesis testing
Easy
A.Failing to reject a false
B.Rejecting a true
C.Failing to reject a true
D.Rejecting a false
Correct Answer: Rejecting a true
Explanation:
A Type I error occurs when a true null hypothesis is incorrectly rejected.
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14What is a Type II error?
Statistical procedure of hypothesis testing
Easy
A.Failing to reject a true
B.Rejecting a false
C.Failing to reject a false
D.Rejecting a true
Correct Answer: Failing to reject a false
Explanation:
A Type II error occurs when a false null hypothesis is not rejected.
Incorrect! Try again.
15What 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 remove all sampling variation
D.To summarize sample evidence about
Correct Answer: To summarize sample evidence about
Explanation:
A test statistic summarizes the sample data in a form used to evaluate the null hypothesis.
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16What is the critical region of a hypothesis test?
Statistical procedure of hypothesis testing
Easy
A.Values that lead to rejecting
B.Values that describe the population size
C.Values that define the sample size
D.Values that calculate the median
Correct Answer: Values that lead to rejecting
Explanation:
The critical region contains test-statistic values for which the null hypothesis is rejected.
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17A 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
Correct Answer: mL
Explanation:
The null hypothesis normally includes equality and represents the manufacturer's stated fill level.
Incorrect! Try again.
18A company tests whether a new advertisement increases average sales. Which test direction is appropriate?
Applications of hypothesis testing in business contexts
Easy
A.A variance-only test
B.A left-tailed test
C.A two-tailed test
D.A right-tailed test
Correct Answer: A right-tailed test
Explanation:
An increase corresponds to a greater-than alternative hypothesis, so a right-tailed test is appropriate.
Incorrect! Try again.
19How can hypothesis testing help a business evaluate employee training?
Applications of hypothesis testing in business contexts
Easy
A.By guaranteeing that every employee improved
B.By eliminating differences among employees
C.By fixing the performance score in advance
D.By testing whether performance improved
Correct Answer: By testing whether performance improved
Explanation:
A business can compare performance data to determine whether training produced a statistically significant improvement.
Incorrect! Try again.
20A 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 increase office space
B.Whether to adopt the new process
C.Whether to change the company logo
D.Whether to rename the product
Correct Answer: Whether to adopt the new process
Explanation:
Evidence that the defect rate decreased can support adopting the new production process.
Incorrect! Try again.
21Which statement is a statistical hypothesis?
Definition of hypothesis
Medium
A.The sample mean delivery time was minutes
B.The population mean delivery time is minutes
C.The company recorded deliveries yesterday
D.The fastest delivery took minutes
Correct Answer: The population mean delivery time is minutes
Explanation:
A statistical hypothesis is a testable statement about a population parameter, such as the population mean .
Incorrect! Try again.
22A 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.
Correct Answer:
Explanation:
The null hypothesis usually contains equality and refers to the population parameter , not the sample mean .
Incorrect! Try again.
23A 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.
Correct Answer:
Explanation:
The retailer is specifically testing for an increase, so a right-tailed alternative is appropriate.
Incorrect! Try again.
24Which pair of hypotheses correctly tests whether a population proportion differs from ?
Definition of hypothesis
Medium
A. and
B. and
C. and
D. and
Correct Answer: and
Explanation:
The word "differs" indicates a two-tailed test, while the equality condition belongs in the null hypothesis.
Incorrect! Try again.
25Why are the null and alternative hypotheses required to be mutually exclusive?
Definition of hypothesis
Medium
A.Both must be accepted whenever the sample is large
B.Each must contain an equality involving the parameter
C.Only one can describe the population parameter at a time
D.Neither may refer to an unknown population value
Correct Answer: Only one can describe the population parameter at a time
Explanation:
Mutually exclusive hypotheses cannot both be true for the same population parameter, allowing the evidence to distinguish between them.
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26A 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.
Correct Answer:
Explanation:
Using gives .
Incorrect! Try again.
27For versus , a test produces . At , the right-tail critical value is . What decision should be made?
Statistical procedure of hypothesis testing
Medium
A.Accept as proven
B.Fail to reject
C.Reject
D.Repeat the test automatically
Correct Answer: Fail to reject
Explanation:
Because , the statistic is not in the rejection region, so there is insufficient evidence against .
Incorrect! Try again.
28A hypothesis test gives a p-value of . What is the correct decision at ?
Statistical procedure of hypothesis testing
Medium
A.Reject because
B.Change to match the p-value
C.Reject because
D.Retain because
Correct Answer: Reject because
Explanation:
The null hypothesis is rejected when the p-value is less than the predetermined significance level.
Incorrect! Try again.
29A 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 sampling-frame error
B.A measurement-scale error
C.A Type I error
D.A Type II error
Correct Answer: A Type I error
Explanation:
A Type I error occurs when a true null hypothesis is rejected.
Incorrect! Try again.
30A 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 classification error
C.A calculation error
D.A Type I error
Correct Answer: A Type II error
Explanation:
A Type II error occurs when the test fails to reject a false null hypothesis, such as missing a real increase.
Incorrect! Try again.
31If 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.Statistical power always increases
C.Type I error risk decreases
D.Type I error risk increases
Correct Answer: Type I error risk decreases
Explanation:
The significance level is the maximum probability of a Type I error, so lowering reduces that risk.
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32A 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.Reject because is inside the interval
B.Reject because is outside the interval
C.Fail to reject because the interval has finite width
D.Fail to reject because both bounds are positive
Correct Answer: Reject because is outside the interval
Explanation:
A two-tailed test at rejects a hypothesized difference not contained in the corresponding confidence interval.
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33Historically, 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.
Correct Answer:
Explanation:
Here , so .
Incorrect! Try again.
34A 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.
Correct Answer:
Explanation:
For a one-sample t-test, the degrees of freedom are .
Incorrect! Try again.
35Which 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.Reducing the sample size
B.Using less precise measurements
C.Increasing measurement variability
D.Increasing the sample size
Correct Answer: Increasing the sample size
Explanation:
A larger sample reduces standard error, making a genuine departure from the null hypothesis easier to detect.
Incorrect! Try again.
36A 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.A paired-samples t-test
B.A one-sample proportion test
C.An independent-samples t-test
D.A chi-square goodness-of-fit test
Correct Answer: A paired-samples t-test
Explanation:
The before-and-after observations come from the same customers, so the measurements are paired.
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37An 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 variance ratio test
C.A two-proportion z-test
D.A one-sample mean test
Correct Answer: A two-proportion z-test
Explanation:
The response is binary, and conversion proportions are being compared between two independent visitor groups.
Incorrect! Try again.
38A 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 one-sample z-test for a mean
B.A simple linear correlation test
C.A paired-samples t-test
D.A chi-square test of independence
Correct Answer: A chi-square test of independence
Explanation:
A chi-square test of independence evaluates whether two categorical variables, such as supplier and defect status, are associated.
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39A 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
Correct Answer: There is insufficient evidence of an increase at
Explanation:
Since , the result is not statistically significant at the company's chosen level.
Incorrect! Try again.
40A 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 the p-value can be changed to
B.Whether statistical significance proves zero risk
C.Whether the gain is practically valuable after costs
D.Whether the null hypothesis is exactly true
Correct Answer: Whether the gain is practically valuable after costs
Explanation:
Statistical significance does not guarantee business importance; management should compare the small estimated gain with implementation costs and risks.
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41Which pair correctly classifies the hypotheses and ?
Definition of hypothesis
Hard
A. is composite, and is composite.
B. is simple, and is simple.
C. is simple, and is composite.
D. is composite, and is simple.
Correct Answer: is composite, and is composite.
Explanation:
A simple hypothesis specifies one distribution or parameter value. Here, permits two values, while permits every other value, so both are composite.
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42A 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
Correct Answer: versus
Explanation:
Adoption requires evidence for improvement, so the desired claim belongs in . The null includes equality and all cases representing no improvement.
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43For 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 always makes the test statistic normally distributed.
C.The boundary converts every composite hypothesis into a simple one.
D.The boundary makes Type II error equal to significance level.
Correct Answer: The boundary often maximizes rejection probability over the null.
Explanation:
For many monotone test statistics, rejection becomes more likely as increases. Thus, within , the largest Type I error occurs at .
Incorrect! Try again.
44A 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 reject because .
C., so reject because .
D., so retain because .
Correct Answer: , so reject because .
Explanation:
The statistic is . Its upper-tail probability is approximately .
Incorrect! Try again.
45A 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.
Correct Answer:
Explanation:
For a symmetric null distribution, the two-sided probability is twice the corresponding one-tail probability: .
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46A 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.
Correct Answer:
Explanation:
Use . This gives , which must be rounded up to .
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47A valid confidence interval for is . What follows for the corresponding two-sided test of at ?
Statistical procedure of hypothesis testing
Hard
A.Reject because most interval values are positive.
B.Reject because the interval midpoint is positive.
C.Fail to reject because the interval contains zero.
D.Fail to reject because both endpoints differ from zero.
Correct Answer: Fail to reject because the interval contains zero.
Explanation:
A two-sided level- test rejects exactly when the corresponding confidence interval excludes the null value. This interval includes .
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48Ten 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.
Correct Answer:
Explanation:
Bonferroni uses . Its family-wise error guarantee does not require independence.
Incorrect! Try again.
49A 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 pooled -test applied to the two sets of scores
D.A one-sample proportion test applied to improvement indicators
Correct Answer: A paired -test applied to within-employee differences
Explanation:
The observations are matched by employee. A paired test analyzes the within-employee differences and accounts for the dependence created by matching.
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50Two 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.The paired-sample -test
C.Pearson's chi-square independence test
D.The pooled two-sample -test
Correct Answer: Welch's two-sample -test
Explanation:
Welch's test permits unequal population variances and adjusts the degrees of freedom. Pooling variances can distort the test when group sizes and variances differ.
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51In 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
Correct Answer: and
Explanation:
The rates are and , with pooled rate . The pooled standard error is about , yielding and a two-sided .
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52A 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 the reported result occurred only by chance is exactly .
C.If were true, results this extreme or more would occur with probability .
D.The probability that is true after observing the data is exactly .
Correct Answer: If were true, results this extreme or more would occur with probability .
Explanation:
A -value is a probability calculated under for the observed result or something more extreme. It is not the posterior probability that is true.
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53An 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 actual Type II error necessarily becomes exactly .
B.The null distribution remains valid for every stopping rule.
C.The actual Type I error generally exceeds .
D.The estimate becomes unbiased because stopping is data-dependent.
Correct Answer: The actual Type I error generally exceeds .
Explanation:
Repeated unadjusted opportunities to reject inflate the chance of a false positive. A valid sequential design requires methods such as alpha spending or always-valid inference.
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54Let 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
Correct Answer: versus
Explanation:
Inferiority beyond the allowed margin means . Noninferiority is established by rejecting that null in favor of a difference greater than .
Incorrect! Try again.
55An 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 commercially sufficient because the interval excludes zero.
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 statistically null because the interval includes .
Correct Answer: The effect is statistically positive but not established as commercially sufficient.
Explanation:
The interval excludes , supporting a positive effect, but it contains values below the business threshold. Statistical significance alone does not establish practical sufficiency.
Incorrect! Try again.
56A 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.
Correct Answer:
Explanation:
Bayes' rule gives . A low base rate can produce many false positives despite high sensitivity.
Incorrect! Try again.
57A 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.Failing to increase inventory when true mean demand exceeds
B.Increasing inventory when true mean demand does not exceed
C.Increasing inventory when sampled mean demand exceeds
D.Failing to increase inventory when true mean demand equals
Correct Answer: Failing to increase inventory when true mean demand exceeds
Explanation:
A Type II error is failure to reject a false null. Here, it means not detecting demand above and therefore not increasing inventory.
Incorrect! Try again.
58A 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
Correct Answer: The treatment-by-post-period interaction coefficient equals zero.
Explanation:
The interaction coefficient captures the treated regions' additional post-period change relative to controls. Testing it against zero tests the difference-in-differences effect.
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59A 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.The significance level is unchanged because the customer count is large.
B.Standard errors are overstated because store randomization removes all variation.
C.Standard errors are understated because customers within stores are correlated.
D.The treatment estimate is undefined because outcomes are customer-level.
Correct Answer: Standard errors are understated because customers within stores are correlated.
Explanation:
The independent assignment units are stores, not customers. Ignoring within-store dependence creates pseudoreplication and usually produces standard errors that are too small.
Incorrect! Try again.
60A 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.
Correct Answer:
Explanation:
The probability of no false rejection is . Therefore, the probability of at least one is , illustrating multiplicity inflation.
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