Assignment 2

Choose the correct answer
1. What is the measurement level of the following question?

“What is your gross income per month? € ”
a. Non-metric.
b. Interval.
c. Ratio.
d. None of the above.
2.What is the type of scale of the variable ‘age’ if it is measured in the following way?
“What is your age? ____ years.”
a. Nominal.
b. Ordinal.
c. Interval.
d. Ratio.
3. What is the measurement level of income, measured in the following way:

“What is your annual gross income?”
< €15.000
€20.000 - €30.000
€30.000 - €45.000
> € 45.000
a. Nominal.
b. Ordinal.
c. Interval.
d. Ratio.
4. “As the calibration or fine-tuning of a scale increases in sophistication, so does the

power of the scale”. What is therefore the most powerful scale?
a. A nominal scale.
b. An ordinal scale.
c. An interval scale.
d. A ratio scale.
5. The difference between an ordinal and a ratio scale is that a ratio scale has an arbitrary
zero point.
a. True
b. False
6. Army rank (such as lieutenant, captain, major, colonel, general, etc.) is ordinal in
nature.
a. True
b. False
7. Temperature is usually measured on a ratio scale.

a. True
b. False
8. Interval and ratio variables are also called metric variables.
a. True
b. False
9. A characteristic of a ratio scale is that it has an absolute zero point.

a. True
b. False
10. The daily temperature in Cairo is considered

a. Time series data
b. Cross sectional.
c. Panel data.
11. The temperature of some cities in the country on a certain day is considered
a. Time series data
b. Cross sectional.
c. Panel data.
12. The 30 numbers of daily traffic accidents on 30 high ways during a month are
considered
a. Time series data
b. Cross sectional.
c. Panel data.
13. Mean can be computed to describe the satisfied customers of the new product’s
package.
a. True
b. False
14. Sample proportion is a statistic that is used to describe the variability of the data set.
a. True
b. False
15. Variability measures how close the observations to their mean.

a. True
b. False
16. A Type II error is committed if we make:

a. a correct decision when the null hypothesis is false.
b. a correct decision when the null hypothesis is true.
c. an incorrect decision when the null hypothesis is false.
d. an incorrect decision when the null hypothesis is true.
17. Which of the following is an example illustrating the use of variance?

a. As a measure of risk.
b. As a judge of consistency.
c. To search for and reduce variability in a process.
d. All of these choices are true.
18. The hypothesis of most interest to the researcher is:

a. the alternative hypothesis.
b. the null hypothesis.
c. both hypotheses are of equal interest.
d. Neither hypothesis is of interest.
19. From a sample of 400 items, 14 are found to be defective. The point estimate of the
population proportion defective will be:
a. 14
b. 0.035
c. 28.57
d. 0.05
20. Which of the following would be an appropriate null hypothesis?

a. The population proportion is equal to 0.60.
b. The sample proportion is equal to 0.60.
c. The population proportion is not equal to 0.60.
21. Which of the following would be an appropriate alternative hypothesis?

a. The population proportion is less than 0.65.
b. The sample proportion is less than 0.65.
c. The population proportion is equal to 0.65.
d. The sample proportion is equal to 0.65.
22. A professor of statistics refutes the claim that the proportion of Republican voters in
Michigan is at most 44%. To test the claim, the hypotheses: H0: p = 0.44, H1: p ≠ 0.44,
should be used.
a. True
b. False
23. Estimating or testing for p is used in situations when the data are
a. Nominal
b. Ordinal
c. a and b are true
d. Metric
24. To test to see if the majority of the population exhibits a certain characteristic of
interest, the alternative hypothesis of the test is H1: p
a. <0.5
b. >0.5
c. =0.5
d. None of the above
25. A Type I error is committed if we make:

a. a correct decision when the null hypothesis is false.
b. a correct decision when the null hypothesis is true.
c. an incorrect decision when the null hypothesis is false.
d. an incorrect decision when the null hypothesis is true.
26. Which of the following is an appropriate null hypothesis?

a. The mean of a population is equal to 60.
b. The mean of a sample is equal to 60.
c. The mean of a population is not equal to 60.
27. If a hypothesis is not rejected at the 0.10 level of significance, it:

a. must be rejected at the 0.05 level.
b. may be rejected at the 0.05 level.
c. will not be rejected at the 0.05 level.
d. must be rejected at the 0.025 level.
28. Which of the following p-values will lead us to reject the null hypothesis if the level of
significance equals 0.05?
a. 0.150
b. 0.100
c. 0.051
d. 0.025
29. The power of a test is measured by its capability of:

a. rejecting a null hypothesis that is true.
b. not rejecting a null hypothesis that is true.
c. rejecting a null hypothesis that is false.
d. not rejecting a null hypothesis that is false.
30. Which of the following would be an appropriate alternative hypothesis?

a. The population proportion is equal to 0.60.
b. The sample proportion is equal to 0.60.
c. The population proportion is not equal to 0.60.
TRUE/FALSE
1. A null hypothesis is a statement about the value of a population parameter.
2. It is possible to commit a Type I error and a Type II error at the same time.
3. The statement of the null hypothesis always includes an equals sign (=).
4. There is a direct relationship between the power of a test and the probability of a Type
II error.
5. A professor of statistics refutes the claim that the proportion of Republican voters in
Michigan is at most 44%. To test the claim, the hypotheses: H0: p = 0.44, H1: p ≠ 0.44,
should be used.
SHORT ANSWER
1. Formulate the null and alternative hypothesis in each case:

a. Ten years ago the average American drank 2.5 cups of coffee per day. You suspect
that amount has changed since then.
b. A researcher at Ohio State University speculates that the average SAT score for
entering freshmen is higher than the national average of 1,650.
c. The manager of the University of Iowa bookstore suspects the average amount of
money a student spends on books is less than the reported $400.
2. Suppose a delivery company states that their packages arrive within two days or less on
average. You want to find out whether the actual average delivery time is longer than
this. You conduct a hypothesis test.
a. Set up the null and alternative hypotheses.
b. Suppose you conclude wrongly that the company's statement about average
delivery time is within two days. What type of error is being committed and what
is the impact of that error?
c. Suppose you conclude wrongly that the delivery company's average time to
delivery is in fact longer than two days. What type of error did you commit and
what is the impact of this error?
d. Which error is worse from the company's standpoint, a Type I or a Type II error?
Why?
e. Which error is worse from a consumer standpoint, a Type I or a Type II error?
Why?
3. The manager of a service station is in the process of analyzing the number of times car
owners change the oil in their cars. She believes that the average motorist changes his or
her car's oil less frequently than recommended by the owner's manual (two times per
year). In a preliminary survey she asked 14 car owners how many times they changed
their cars' oil in the last 12 months. The results are 1, 1, 2, 0, 3, 3, 0, 1, 0, 1, 2, 3, 3, and 1.
a- State the null and alternative hypothesis.

b- Assume that the p-value= 0.02. Does this data provide sufficient evidence at the
10% significance level to indicate that the manager is correct?
c- What condition is required in order to analyze this data using a t-test? How can
we check it.

Assignment 2

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Assignment 2

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Choose the correct answer

1. What is the measurement level of the following question?

3. What is the measurement level of income, measured in the following way:

4. “As the calibration or fine-tuning of a scale increases in sophistication, so does the

7. Temperature is usually measured on a ratio scale.

9. A characteristic of a ratio scale is that it has an absolute zero point.

10. The daily temperature in Cairo is considered

15. Variability measures how close the observations to their mean.

16. A Type II error is committed if we make:

17. Which of the following is an example illustrating the use of variance?

18. The hypothesis of most interest to the researcher is:

20. Which of the following would be an appropriate null hypothesis?

21. Which of the following would be an appropriate alternative hypothesis?

25. A Type I error is committed if we make:

26. Which of the following is an appropriate null hypothesis?

27. If a hypothesis is not rejected at the 0.10 level of significance, it:

29. The power of a test is measured by its capability of:

30. Which of the following would be an appropriate alternative hypothesis?

1. Formulate the null and alternative hypothesis in each case:

a- State the null and alternative hypothesis.

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