SOLVED

31) Which of the following is NOT one of the four (4) ingredients for hypothesis testing? A) the sample statistic B) the standard error C) the hypothesized population parameter D) the decision to “support” or “not support” the hypothesized parameter based on a few calculations E) the z value 32) The crux of hypothesis testing is the: A) Central Limit Theorem. B) sampling-distribution concept. C) acceptance region. D) rejection regions. E) z value. 33) Statisticians agree that when the sample is small, rather than the z value it is more proper to use the: A) sample findings alone. B) multiple samples together. C) s value. D) hypothesized z value. E) t value. 34) Another name for a directional hypothesis test is a(n): A) tail-end test. B) one-tailed test. C) greater-than test. D) single-sided test. E) one-sided test. 35) Laurie Fulkerson was in charge of marketing research for Jeff Rogers, a candidate for mayor. No research had been undertaken as it was very early in the campaign. The consensus was that Jeff and his opponent, Elvis Dean, were very close in voter preference. Laurie was negotiating with the research firm that was going to do a survey. She told the project director that she wanted to estimate the percentage of registered voters who would vote for each candidate if the election were to be held at the time of the survey. She also said she wanted to be very confident (99 percent) that the estimate was very accurate, that is, between + 1 percent. The project director quickly estimated that the sample size would be very large and told Laurie that she estimated the study would cost more than $50,000. Shocked at the price, Laurie asked the project director to cut the sample size down to one-fourth of what she estimated. What should the project director tell Laurie? A) that it is impossible to do a study with a sample size this small B) that the sample size can be cut, but it means that the confidence interval that will be calculated around the estimate will be much smaller C) that the sample size can be cut, but it means that the confidence interval that will be calculated around the estimate will be much larger but still under the + 1 percent D) that the sample size can be cut, but it means that the confidence interval that will be calculated around the estimate will be much larger, that is, far greater than the + 1 percent E) that it is fine to cut the sample size for the only impact will be reducing the length of time it takes to do the study 36) Daniel Jean-Baptiste is the brand manager for Healthy-Pick Cookies, Inc. Daniel had been through the new product development process and has developed a new cookie that has very good taste and texture, yet has no calories, fat, sodium, or cholesterol. Concept tests on the product have been excellent and now Daniel is ready to test market the new cookie and has selected Vancouver, British Columbia, as his first test city. But before he starts the test market, Daniel wants to conduct a research project that will help him forecast sales, so that he can better prepare production to supply the test market. The project leads to a probability sample in which household members are randomly called and are given a thorough description of the new cookie, including the price and choices of flavours. The key question respondents are asked is how likely it is that they will actually buy the new cookie, and this is measured on a 7-point intensity continuum scale ranging from 1 being “Very Unlikely” to 7 being “Very Likely”. Respondents were also asked how many boxes of cookies they would expect to buy in a month. At the end of the study, the researchers tell Daniel that 8 percent of the households contacted stated that they were “Very Likely” to buy the new cookie. In order to get an estimate of the sales potential in the test market Daniel could: A) take 8 percent of all the households in Vancouver and multiply this times the population parameter. B) use the 8 percent as the “best estimate” times the number of households in the market and multiply this number by the average number of boxes expected to be purchased. C) use the 8 percent as the “best estimate” times the number of households in the market and divide this number by the average number of boxes expected to be purchased. D) use the 8 percent as the “best estimate” times the number of households in the market and multiply this number by the average number of boxes expected to be purchased. In addition, use the upper and lower limits of a hypothesis test to calculate a pessimistic and optimistic estimate respectively. E) use the 8 percent as the “best estimate” times the number of households in the market and multiply this number by the average number of boxes expected to be purchased. In addition, use the upper and lower limits of a confidence interval around the “best estimate” to calculate optimistic and pessimistic estimates respectively. 37) Suppose we wish to test the hypothesis that an internship program allows its interns to earn $2,750 per semester and let us assume that this hypothesis is, in fact, true. Which of the following best illustrates the logic of hypothesis testing at the 95% confidence level? A) From among 100 samples, 95 percent of them would generate means that fell within + 1.96 z scores. B) From among 100 samples, 98 percent of them would generate means that fell within + 2.58 z scores. C) From among 100 samples, 95 percent of them would generate means that fell within + 2.58 z scores. D) From among 100 samples, 99 percent of them would generate means that fell within + 1.96 z scores. E) From among 95 samples, 100 percent of them would generate means that fell within + 1.96 z scores. 38) The standard error of the average is _________ with more variability and _________ with large samples. A) larger; larger B) smaller; larger C) larger; smaller D) smaller; smaller E) balanced; better 39) A toy store owner hypothesizes, at the 95 percent level of confidence, that parents spend less than $100 on toys per visit to her store. A sample is taken and the hypothesis test shows a z value of -1.65. This means the sample: A) supports the hypothesis. B) does not support the hypothesis. C) supports the alternative hypothesis. D) is inaccurate and we need to take another sample. E) is too small and we need to do more surveys. 40) Regardless of whether a percentage hypothesis or an average hypothesis is being used, the interpretation of a hypothesis test is: A) subject to debate. B) directly linked to the sampling distribution concept. C) difficult to justify. D) infallible. E) up to the client.