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| 1.
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A financial analyst working for a financial consulting company wishes to find evidence that the average price-to-earnings ratio in the consumer industry is higher than average price-to-earnings ratio in the banking industry. The alternative hypothesis is |
| | A) | μconsumer - μbanking. = 0 |
| | B) | μconsumer - μbanking. ≤ 0 |
| | C) | μconsumer - μbanking. > 0 |
| | D) | μconsumer - μbanking. < 0 |
| | E) | μconsumer - μbanking ≠ 0 |
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| 2.
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In testing the equality of two population means by using independent random samples, if the null hypothesis of equal population means is rejected at α = .01, it will ___________ be rejected at α = .05. |
| | A) | always |
| | B) | sometimes |
| | C) | never |
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| 3.
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In testing the difference between the means of two normally distributed populations using independent samples with known variances the correct test statistic to use is |
| | A) | Z statistic. |
| | B) | t statistic. |
| | C) | F statistic. |
| | D) | Chi-square statistic. |
| | E) | None of the above. |
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| 4.
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In testing the difference between the means of two independent samples with unknown variances, the correct test statistic to use is: |
| | A) | Z statistic. |
| | B) | t statistic. |
| | C) | F statistic. |
| | D) | Chi-square statistic. |
| | E) | None of the above. |
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| 5.
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When comparing the variances of two normally distributed populations using independent random samples, the correct test statistic to use is ________________ |
| | A) | Z statistic. |
| | B) | t statistic. |
| | C) | F statistic. |
| | D) | Chi-square statistic. |
| | E) | None of the above. |
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| 6.
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In testing a hypothesis about the Mean, μd, of a population of paired differences, the correct test statistic to use is: |
| | A) | Z statistic. |
| | B) | t statistic. |
| | C) | F statistic. |
| | D) | Chi-square statistic. |
| | E) | None of the above. |
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| 7.
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The degrees of freedom for a t-test about the differences between two population means when the variances are unknown and the sample sizes are 20 and 22 respectively are: |
| | A) | 42 |
| | B) | 41 |
| | C) | 40 |
| | D) | 20 |
| | E) | 22 |
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| 8.
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When comparing two population means by using large independent random samples selected from populations with equal and known variances, the correct test statistic to use is t. |
| | A) | True |
| | B) | False |
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| 9.
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When testing the difference between two population proportions by using large independent random samples, a Z test statistic is used. |
| | A) | True |
| | B) | False |
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| 10.
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In testing the equality of population variances, two assumptions are required: independent samples and normally distributed populations. |
| | A) | True |
| | B) | False |
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| 11.
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In testing the difference between two population variances, if s12 =s22, the calculated value of F will be equal to one. |
| | A) | True |
| | B) | False |
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| 12.
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In testing the difference between the means of two normally distributed populations using large independent random samples, the sample sizes from the two populations must be equal in order to use a Z statistic. |
| | A) | True |
| | B) | False |
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