6 The power curve provides the probability of a correctly ac

6. The power curve provides the probability of.

a. correctly accepting the null hypothesis

b. incorrectly accepting the null hypothesis

c. correctly rejecting the alternative hypothesis

d. correctly rejecting the null hypothesis

7. A Type II error is committed when.

a. a true alternative hypothesis is mistakenly rejected

b. a true null hypothesis is mistakenly rejected

c. the sample size has been too small

d. not enough information has been available

8. A two-tailed test is performed at 95% confidence. The p-value is determined to be 0.09. The null hypothesis.

a. must be rejected

b. should not be rejected

c. could be rejected, depending on the sample size

d. has been designed incorrectly

9. Your investment executive claims that the average yearly rate of return on the stocks she recommends is at least 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is.

a. H0: < 10.0% Ha: 10.0%

b. H0: 10.0% Ha: > 10.0%

c. H0: > 10.0% Ha: 10.0%

d. H0: 10.0% Ha: < 10.0%

10. For a two-tailed test at 98.4% confidence, Z =.

a. 1.96

b. 1.14

c. 2.41

d. 0.8612

Solution

6. The power curve provides the probability of

d. correctly rejecting the null hypothesis

7. A Type II error is committed when.

a. a true alternative hypothesis is mistakenly rejected

8. A two-tailed test is performed at 95% confidence. The p-value is determined to be 0.09. The null hypothesis.

b. should not be rejected (since p-value > alpha)

9. Your investment executive claims that the average yearly rate of return on the stocks she recommends is at least 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is.

d. H0: 10.0% Ha: < 10.0%

10. For a two-tailed test at 98.4% confidence, Z =.

c. 2.41 (alpha/2 = 0.06, therefore at 99.2% Z=2.41)