Exam 2 Pratice
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During a 20-year period, that standard deviation of annual returns on a portfolio 4 John is analyzing was 8 percent. He suspected that the portfolio’s underlying variance of return was less than 100 basis points. He would like to construct a hypothesis test to validate his judgment. Question A: Formulate null and alternative hypothesis. Question B: Calculate the value of test statistic for conducting the test in part (a). Question C: Identify the rejection point or points at the 5% significance level for the hypothesis in part (a). (Use excel functions for the rejection point) Selected Answer: Correct Answer: A.) Null Hypothesis - Population variance is 100 basis points HO = 100 Alterative hypothesis - Population variance is less than 100 H1 < 100 B.) The Chi-Square test for population variance is used to test whether the sample variance is less than 100 x72 = ((20-1) * 842)/100 = (19*64)/100 = 12.16 C.)Probability = 5%, Degrees_freedom = n-1 =20-1 =19 CHISQ.INV(Probability,degrees_freedom) = CHISQ.INV(0.05.19) = 10.1170 Rejection point = 10.1170 @ A: HO: sigma*2 = 1%, Ha: sigma*2 < 1% B: Test-stat = (20-1)*(8%)"2/1% = 12.16 C: Rejection Region is in the left tail. Rejection Point=CHISQ.INV(5%,19)
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Related Questions
What is the value of the test statistic for a test with a null hypothesis that mu = 250, Xbar = 260 the standard deviation = 5 and n = 100?
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Consider the following hypothesis test.
Ho: H = 15
На: и# 15
A sample of 50 provided a sample mean of 14.05. The population standard deviation is 3.
(a) Find the value of the test statistic. (Round your answer to two decimal places.)
(b) Find the p-value. (Round your answer to four decimal places.)
p-value
(c) At a = 0.05, state your conclusion.
Reject Ho. There is sufficient evidence to conclude that u # 15.
Reject Ho. There is insufficient evidence to conclude that u + 15.
Do not reject Ho. There is sufficient evidence to conclude that u + 15.
Do not reject Ho. There is insufficient evidence to conclude that u + 15.
O O O O
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ou are conducting a hypothesis test on the body weights of male fraternity members. The research (alternative) hypothesis is that the averge weight is greater than 200 lbs. Your test will be at the 0.01 significance level. You take a sample of 64 men, and find that the sample average is 210 lbs, and the standard deviation is 20 lbs. The value of your test statistic is, therefore, 4.00. Would your test statistic be higher or lower if your sample stats had been estimated from a sample of 640 men, rather than 64?
Group of answer choices
Lower
The same (neither higher, nor lower).
Higher
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explain the p value
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Which of the following is a test for serial correlation in the error terms?
Johansen test
b. Durbin Watson test
e White test
Dickey Fuller test
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Problem in economics:
Random samples of 400 men and 600 women
were asked whether they would like to have a
flyover near their residence. 200 men and 325
women were in favour of the proposal. Test the
hypothesis that proportions of men and
women in favour of the proposal, are same
against that they are not, at 5% level.
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The hypothesis test H0: μ ≥ 30 vs. Ha: μ =
True
False
30 has been correctly specified.
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A transport company wants to compare the fuel efficiencies of
the two types of lorry it operates. It obtains data from samples of
the two types of lorry, with the following results:
Type Average mpg Standard deviation Sample size
A
B
31.0
32.2
7.6
6.8
33
40
Test the hypothesis that there is no difference in fuel efficiency,
using the 95% confidence level.
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Consider the following hypothesis test:
H 0: 50
H a: > 50
A sample of 55 is used and the population standard deviation is 7. Use the critical value approach to state your conclusion for each of the following sample results. Use = .05.
With = 52.5, what is the value of the test statistic (to 2 decimals)?Can it be concluded that the population mean is greater than 50?Select Yes No Item 2
With = 51, what is the value of the test statistic (to 2 decimals)?Can it be concluded that the population mean is greater than 50?Select Yes No Item 4
With = 51.8, what is the value of the test statistic (to 2 decimals)?Can it be concluded that the population mean is greater than 50?
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Economic topic. Solve it
A radio shop sells, on an average, 200 radios
per day with a standard deviation of 50 radios
After an extensive advertising campaign, the
management will compute the average sales
for the next 25 days to see whether an
improvement has occurred. Assume that the
daily sales of radios is normally distributed:
(i) Write down the null and the alternative
hypotheses.
(ii) Test the hypothesis at 5% level of
significance if X = 216.
%3D
(iii) How large must Xbe in order that the null
hypothesis is rejected at 5% level of
significance.
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Assume that you have a sample of n, 8, with the sample mean X, 42, and a sample standard deviation of S, = 7, and you have an independent sample of n₂ = 13
from another population with a sample mean of X₂=35 and the sample standard deviation S₂ = 6. Complete parts (a) through (d) below.
a. What is the value of the pooled-variance ISTAT test statistic for testing Ho: H+H2?
ISTAT =
(Round to two decimal places as needed.)
b. In finding the critical value, how many degrees of freedom are there?
degrees of freedom
(Simplify your answer.)
c. Using a significance level of a =0.05, what is the critical value for a one-tail test of the hypothesis Ho: H₁5 ₂ against the alternative H₁: ₁₂?
The critical value is
(Round to two decimal places as needed.)
d. What is your statistical decision?
OA. Do not reject Ho because the computed ISTAT test statistic is less than the upper-tail critical value.
OB. Reject H, because the computed ISTAT test statistic is greater than the upper-tail critical value.…
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QUESTION 23
A lab technician realizes the test he had just conducted gave him a false negative result. What is this an example of?
Type 1 error
Type 2 error
Hypothesis error
Test error
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2
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State whether you made a Type I error, a Type II error, or the correct conclusion.
Children in your community have on average less than 5.2 books at home, and you fail to reject the hypothesis that they have greater than or equal to 5.2 books.
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8
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Mary Arnold wants to use the results of a random sample market survey to seek strong evidence that her brand of breakfast cereal has more than 20% of the total market. Formulate the null and alternative hypotheses, using P as the population proportion.
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Consider the following hypothesis test.
Ho: Hs 50
На: и > 50
A sample of 60 is used and the population standard deviation is 8. Use the critical value approach to state your conclusion for each of the following sample results. Use
a = 0.05. (Round your answers to two decimal places.)
(а) х 3D 52.5
Find the value of the test statistic.
2.4206
State the critical values for the rejection rule. (If the test is one-tailed, enter NONE for the unused tail.)
test statistic
State your conclusion.
Reject Ho. There is insufficient evidence to conclude that u > 50.
Do not reject Ho. There is sufficient evidence to conclude that u > 50.
Reject Ho. There is sufficient evidence to conclude that u > 50.
Do not reject Ho. There is insufficient evidence to conclude that u > 50.
(b) х %3D 51
Find the value of the test statistic.
State the critical values for the rejection rule. (If the test is one-tailed, enter NONE for the unused tail.)
test statistic
O O O O
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A recent study focused on the number of times men and women send a Twitter message in a day. The information is summarized here:
Sample Size
Sample Mean
Population Standard Deviation
Men
31
29
5
Women
36
34
10
At the 0.01 significance level, we ask if there is a difference in the mean number of times men and women send a Twitter message in a day. Assume that women are Population 1 and men are Population 2. What is the value of the test statistic for this hypothesis test?
a.
2.907
b.
2.641
c.
2.815
d.
2.911
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Identify the appropriate test to use for the following scenarios:
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Group of answer choices
A)One-Sample T-Test
B) Independent Groups T-Test
C)Correlated Groups T-Test
D) Linear Regression
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ASSISTANCE REQUIRED FOR PART "e" i- vi ONLY, please. Also can you please show step by step how to get null and alternative in the hypothesis?
A car company wants to know the monthly sales made in ($000), based on the brand of vehicle.The data collected was entered on a MINITAB spreadsheet for analysis. Exhibit II below was subsequently generated.
Exhibit 2
Model
N
Mean
Median
Tri.Mean
Std Dev
S.E. Mean
Hyundai
23
109
135
107.64
*
1.34
Toyota
27
165
124
143.65
9.5
**
a) Determine the values of * and **. b) Give the unbiased point estimate for the average monthly earning from Hyundai Vehicles.c) Give the unbiased point estimate for the variance of monthly earning from Hyundai Vehicles.d) Assuming normality, construct and interpret a 90% confidence interval for the average monthly earning from Toyota Vehicles.
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Is it true or false that endogenous sample selection will not cause bias in the OLS estimator.
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U.K. from 1871 to 2017, recent research finds an adjustment of -0.19 with a
sample standard deviation of 0.692.
a) Based on the research evidence, test if PPP holds at a 3% significance level.
Please show the full workings and justify the decision.
b) 1%, 5% or 10% levels of significance are only conventional levels of
significance. Illustrate how the level of significance is a choice and could vary
across contexts.
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Prior 84 48 36 37 54 69 83 96
After 90 58 42 44 62 81 84 86
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table: z table or ttable)
Ho: P1 P2 ≥ 0
HA: P1 P2 < 0
x1 = 223
n1 = 418
x2 = 245
n2 = 418
Test statistic
reference the appropriate
a. Calculate the value of the test statistic. (Negative value should be indicated by a minus sign. Round final answer to 2 decimal
places.)
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A tea company appoints four salesmen A, B, C and D and observes their sales in three months, April, May and June:
Months
Salesmen
A
B
C
D
April
36
36
21
35
May
28
29
31
32
June
26
28
29
29
Prepare a two – way analysis of variance table
Name the blocking variable and the treatment in this experiment.
Test at the 5% level of significance the null hypothesis that there is significant difference in sales made by the four salesmen
Test at the 5% level of significance the null hypothesis that there is significant difference in the sales made during different months.
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Related Questions
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