Statistics - Hypothesis Testing UPDATED
ACTUAL Exam Questions and CORRECT
Answers
hypothesis testing - CORRECT ANSWER - The statistical assessment of a statement or
idea regarding a population. LOS11.a
hypothesis testing procedure - CORRECT 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 - CORRECT ANSWER - H0, the hypothesis that the researcher wants to
reject.
LOS11.a
alternative hypothesis - CORRECT ANSWER - Ha, is what is concluded if there is
sufficient evidence to reject the null hypothesis. LOS11.a
one-tailed test - CORRECT ANSWER - one-sided test.
ex. researcher wants to test to see if stock options return is greater than zero.
LOS11.a
two-tailed test - CORRECT 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 - CORRECT ANSWER - used in two-tailed test. rejection points.
LOS11.a
decision (rejection) rule - CORRECT ANSWER - Reject Ho if: test statistic > upper
critical value or test statistic < lower critical value. LOS11.a
test statistic - CORRECT 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 - CORRECT ANSWER - The rejection of the null hypothesis when it is
actually true. LOS11.b
type II error - CORRECT ANSWER - the failure to reject the null hypothesis when it is
actually false. LOS11.b
significance level - CORRECT ANSWER - the probability of making a type I error
(rejecting null when its true). Designated by α. LOS11.b
decision rule - CORRECT ANSWER - The decision rule for rejecting or failing to reject
the null hypothesis is based on the distribution of the test statistic. LOS11.c
power of a test - CORRECT ANSWER - The probability of correctly rejecting the null
hypothesis when it is false. One minus the probability of making a Type II error.
1 - P(Type II Error)
LOS11.c
ACTUAL Exam Questions and CORRECT
Answers
hypothesis testing - CORRECT ANSWER - The statistical assessment of a statement or
idea regarding a population. LOS11.a
hypothesis testing procedure - CORRECT 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 - CORRECT ANSWER - H0, the hypothesis that the researcher wants to
reject.
LOS11.a
alternative hypothesis - CORRECT ANSWER - Ha, is what is concluded if there is
sufficient evidence to reject the null hypothesis. LOS11.a
one-tailed test - CORRECT ANSWER - one-sided test.
ex. researcher wants to test to see if stock options return is greater than zero.
LOS11.a
two-tailed test - CORRECT 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 - CORRECT ANSWER - used in two-tailed test. rejection points.
LOS11.a
decision (rejection) rule - CORRECT ANSWER - Reject Ho if: test statistic > upper
critical value or test statistic < lower critical value. LOS11.a
test statistic - CORRECT 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 - CORRECT ANSWER - The rejection of the null hypothesis when it is
actually true. LOS11.b
type II error - CORRECT ANSWER - the failure to reject the null hypothesis when it is
actually false. LOS11.b
significance level - CORRECT ANSWER - the probability of making a type I error
(rejecting null when its true). Designated by α. LOS11.b
decision rule - CORRECT ANSWER - The decision rule for rejecting or failing to reject
the null hypothesis is based on the distribution of the test statistic. LOS11.c
power of a test - CORRECT ANSWER - The probability of correctly rejecting the null
hypothesis when it is false. One minus the probability of making a Type II error.
1 - P(Type II Error)
LOS11.c
