MGSC EXAM 3 PAPER 2026 SOLVED
QUESTIONS AND FULL SOLUTION GRADED A+
◉ Bootstrap Distribution.
Answer: is the standard deviation of many bootstrap statistics
◉ How is the standard error affected when there is dependence
amoung observations?.
Answer: tend to underestimate uncertainty, smaller standard error
than what it really should be
◉ Hypothesis testing.
Answer: a decision-making process for evaluating claims about a
population
◉ How to identify null hypothesis.
Answer: Ho : parameter = some hypothesized value
(note) the "=" sign always goes with Ho (might be, <,>, =)
◉ alternative hypothesis.
Answer: The hypothesis that states there is a difference between
two or more sets of data.
, Has a direction
Denoted by H1 or HA
◉ Test Statistic Formula.
Answer: (Statistic - Parameter) / (Standard deviation of statistic)
◉ When is certified = 0?.
Answer: When the expected price is a
◉ When is certified = 1?.
Answer: When expected price is a + B
◉ What does low p-value mean.
Answer: you observed a rare result if the null were true
statistical significane
◉ What does a high p-value mean.
Answer: a common result if the null is true
◉ Significance level.
Answer: A pre-specified cut-off for how low the p-value needs to be
to say you think the alternative is true
QUESTIONS AND FULL SOLUTION GRADED A+
◉ Bootstrap Distribution.
Answer: is the standard deviation of many bootstrap statistics
◉ How is the standard error affected when there is dependence
amoung observations?.
Answer: tend to underestimate uncertainty, smaller standard error
than what it really should be
◉ Hypothesis testing.
Answer: a decision-making process for evaluating claims about a
population
◉ How to identify null hypothesis.
Answer: Ho : parameter = some hypothesized value
(note) the "=" sign always goes with Ho (might be, <,>, =)
◉ alternative hypothesis.
Answer: The hypothesis that states there is a difference between
two or more sets of data.
, Has a direction
Denoted by H1 or HA
◉ Test Statistic Formula.
Answer: (Statistic - Parameter) / (Standard deviation of statistic)
◉ When is certified = 0?.
Answer: When the expected price is a
◉ When is certified = 1?.
Answer: When expected price is a + B
◉ What does low p-value mean.
Answer: you observed a rare result if the null were true
statistical significane
◉ What does a high p-value mean.
Answer: a common result if the null is true
◉ Significance level.
Answer: A pre-specified cut-off for how low the p-value needs to be
to say you think the alternative is true
