# If an economist wishes to determine whether there is evidence that

**Question 1**

1. If an economist wishes to determine whether there is evidence that average family income in a community exceeds $25,000

a) either a one-tailed or two-tailed test could be used with equivalent results.

b) A one-tailed test should be utilized with the critical value on the right of our curve.

c) A two-tailed test should be utilized.

d) A one-tailed test should be utilized with the critical value on the left of our curve.

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**Question 2**

2. If a test of hypothesis has a Type I error of .01, we mean

a) If the null hypothesis is true, we don’t reject it 1% of the time.

b) If the null hypothesis is true, we may reject it 1% of the time.

c) If the null hypothesis is false, we don’t reject if 1% of the time.

d) If the null hypothesis is false, we may reject it 1% of the time.

**Question 3**

3. A one sample test for a proportion is being performed. If the critical value is +2.33 and the test statistics is +1.37,

a) The null hypothesis should not be rejected.

b) The alternative hypothesis cannot be rejected.

c) The null hypothesis should be rejected.

d) The sample size should be decreased.

**Question 4**

4. If a 1% level of significance is used to test a null hypothesis, there is a probability of __________ of rejecting the null hypothesis when it is true.

a) .995

b) .990

c) .010

d) .005

**Question 5**

5. If a statistician specifies a 5% level of significance, then she will reject the null hypothesis only if her sample result differs from her hypothesized value by an amount that would occur by chance

a) Less than 5% of the time.

b) More than 5% of the time.

c) 95% of the time or more.

d) 2.5% of the time or less.

**Question 6**

6. Which hypothesis, the Null or the Alternate, represents the conclusion for which evidence is sought? a. Null,

b. Alternate,

c. neither,

d. both

**Question 7**

7. What is the value called that separates the region of rejection from the region of non rejection?

a. test statistics,

b. critical value,

c. alpha,

d. beta

**Question 8**

8. If the Null hypothesis was that the mean is at least 80 and the true mean was in fact 78 would you have a greater chance of determining that the Null hypothesis is false than you would if the true mean was 77?

a. yes,

b. no,

c. maybe

d. it depends

**Question 9**

9. If you were concerned if there was statistical evidence that the proportion of customers who would leave a checkout line if they had to wait more than 6 minutes was greater than 40%, your alternate hypothesis would be: note use P for the proportion in the population.

a. P < .60,

b. P > .60,

c. P > .40,

d. P < .40

**Question 10**

If you were concerned with testing the diffence between two populations variances the best test would a. Z test,

b. t test,

c. F test,

d. none of these.

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