BUSINESS STATISTICS - EXAM 3 REVIEW ACTUAL
EXAM QUESTIONS BANK / COMPLETE ACCURATE
QUIZZES WITH DETAILED, VERIFIED ANSWERS /
2025
Hypothesis testing and confidence intervals - ANS-Two paths to answer the inferential statistics question
Hypothesis Testing - ANS-Key conceptual approach to science generally
Purpose of hypothesis testing is to choose one of the following:
1) Conclude that it is not prudent ot rule out *sampling error as the explanation for the results found
(fail to reject Ho)
2) Conclude that the sampling error is probably not the explanation of the results found, that is, the
result is "real" (reject Ho)
Ho - ANS-Null hypothesis, the results are due to sampling error
H1 - ANS-Alternative hypothesis, the results are "real"
Types of hypotheses - ANS-1) Research hypotheses
2) Statistical hypotheses
3) Substantive hypotheses
Research Hypotheses - ANS-A statement of what the researcher believes will be the outcome of an
experiment or a study
Statistical Hypotheses - ANS-A formal hypothesis structure set up with a null and an alternative
hypothesis to scientifically test research hypotheses
Substantive Hypotheses - ANS-When the outcome of a statistical study produces results that are
important to the decision maker
5 Steps of Hypothesis Testing - ANS-1. Write a null and alternative hypothesis (Ho and H1)
2. Identify the value of alpha (the Type I error rate), and whether this is a 1 - or 2-tailed test
3. Draw the sampling distribution, and label the rejection region(s)
4. Calculate the test statistic and locate it on the drawing
5. Make a statistical conclusion (reject Ho or fail to reject Ho) and describe what the conclusion means in
words that a business person can understand
EXAM QUESTIONS BANK / COMPLETE ACCURATE
QUIZZES WITH DETAILED, VERIFIED ANSWERS /
2025
Hypothesis testing and confidence intervals - ANS-Two paths to answer the inferential statistics question
Hypothesis Testing - ANS-Key conceptual approach to science generally
Purpose of hypothesis testing is to choose one of the following:
1) Conclude that it is not prudent ot rule out *sampling error as the explanation for the results found
(fail to reject Ho)
2) Conclude that the sampling error is probably not the explanation of the results found, that is, the
result is "real" (reject Ho)
Ho - ANS-Null hypothesis, the results are due to sampling error
H1 - ANS-Alternative hypothesis, the results are "real"
Types of hypotheses - ANS-1) Research hypotheses
2) Statistical hypotheses
3) Substantive hypotheses
Research Hypotheses - ANS-A statement of what the researcher believes will be the outcome of an
experiment or a study
Statistical Hypotheses - ANS-A formal hypothesis structure set up with a null and an alternative
hypothesis to scientifically test research hypotheses
Substantive Hypotheses - ANS-When the outcome of a statistical study produces results that are
important to the decision maker
5 Steps of Hypothesis Testing - ANS-1. Write a null and alternative hypothesis (Ho and H1)
2. Identify the value of alpha (the Type I error rate), and whether this is a 1 - or 2-tailed test
3. Draw the sampling distribution, and label the rejection region(s)
4. Calculate the test statistic and locate it on the drawing
5. Make a statistical conclusion (reject Ho or fail to reject Ho) and describe what the conclusion means in
words that a business person can understand
