Statistics - Hypothesis Testing Exam 2025 Questions and Answers

Statistics - Hypothesis Testing Exam
2025 Questions and Answers


hypothesis testing - ANSWER✔✔-The statistical assessment of a statement or idea

regarding a population. LOS11.a


hypothesis testing procedure - ANSWER✔✔-1. state the hypothesis


2. select the appropriate test statistic


3. specify the level of significance


4. state the decision rule regarding the hypothesis


5. collect the sample and calculate the sample statistics


6. make a decision regarding the hypothesis


7. make a decision based on the results of the test


LOS11.a


null hypothesis - ANSWER✔✔-H0, the hypothesis that the researcher wants to reject.


LOS11.a

, alternative hypothesis - ANSWER✔✔-Ha, is what is concluded if there is sufficient

evidence to reject the null hypothesis. LOS11.a


one-tailed test - ANSWER✔✔-one-sided test.


ex. researcher wants to test to see if stock options return is greater than zero.


LOS11.a


two-tailed test - ANSWER✔✔-two-sided test.


ex. researcher wants to test to see if the return on options is simply different from zero.


LOS11.a


critical values - ANSWER✔✔-used in two-tailed test. rejection points.


LOS11.a


decision (rejection) rule - ANSWER✔✔-Reject Ho if: test statistic > upper critical value

or test statistic < lower critical value. LOS11.a


test statistic - ANSWER✔✔-The difference between the sample statistic and the

hypothesized value, scaled by the standard error of the sample statistic.


test statistic = (sample stat. - hypothesized value)/standard error


LOS11.b


type I error - ANSWER✔✔-The rejection of the null hypothesis when it is actually true.

LOS11.b