Stat HW8b

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Problem 8

One of the most difficult things to do in statistics is to determine the correct hypothesis test to do for a given scenario.

Determine the most appropriate hypothesis test to use for the following scenario:

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Each year, Kiplinger’s compiles its list of Best Value Cities. One of the statistics used in this ranking is the cost-of-living index compiled by the US Department of Labor Bureau of Labor Statistics. The index measures the cost of living in a city relative to the national average of 100. In 2011, Pueblo Colorado had the lowest index (84), while New York City had an index of 118. The following table lists the cost of living for seven Southeastern US cities:

City	Cost of Living Index (US mean = 100)
Charlotte, NC	93.0
Birmingham, AL	89.6
Florence, SC	100.0
Tampa, FL	92.1
Atlanta, GA	95.2
Knoxville, TN	89.7
Miami, FL	107.7

Is the true mean cost of living index for Southeastern US cities lower than the national mean cost-of-living index of 100? Test at 2% significance level.

The most appropriate hypothesis test to use for this scenario is:

Problem 8 options:

A)	t - test for single sample

B)	z – test for single population mean

C)	t test for single population mean

D)	z test for single population proportion

E)	z – test for single sample

Problem 9

One of the most difficult things to do in statistics is to determine the correct hypothesis test to do for a given scenario.

Determine the null hypothesis and the alternate hypothesis:

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A Harris Poll conducted October 28, 2008 surveyed 2119 US adults who were asked “when you think of rising health care costs, who do you think is most responsible?” One theory is that 50% of adults blame insurance companies, 10% blame pharmaceutical companies, 10% blame Federal and state governments, 10% blame hospitals, 10% blame physicians, 5% blame some other entity, and 5% are unsure who is most responsible. Actual survey responses follow:

Most Responsible for Rising Health Care Costs	Number Responding
Insurance companies	869
Pharmaceutical companies	339
Government	338
Hospitals	127
Physicians	85
Other entity	128
Not sure	233
Total	2119

At a 0.02 level of significance, do the actual results match the theoretical percentages?

Choose the correct HO and HA statements:

Problem 9 options:

HO : Distribution of observed frequency percentages for healthcare blame DOES NOT FIT distribution of expected frequency percentages for healthcare blame (≠)

HA : Distribution of observed frequency percentages for healthcare blame FITS distribution of expected frequency percentages for healthcare blame

B)	HO : pexpected = pobserved HA : pexpected ≠ pobserved

HO : Distribution of observed frequency percentages for healthcare blame FITS distribution of expected frequency percentages for healthcare blame

HA : Distribution of observed frequency percentages for healthcare blame DOES NOT FIT distribution of expected frequency percentages for healthcare blame (≠)

D)	HO : μexpected = μobserved HA : μexpected ≠ μobserved

Problem 10

One of the most difficult things to do in statistics is to determine the correct hypothesis test to do for a given scenario.

Determine the most appropriate hypothesis test to use for the following scenario:

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Most Responsible for Rising Health Care Costs	Number Responding
Insurance companies	869
Pharmaceutical companies	339
Government	338
Hospitals	127
Physicians	85
Other entity	128
Not sure	233
Total	2119

At a 0.02 level of significance, do the actual results match the theoretical percentages?

The most appropriate hypothesis test to use for this scenario is:

Problem 10 options:

A)	one-way ANOVA

B)	two population proportion z - test

C)	t - test for independent means

D)	Χ2 test for goodness-of-fit

E)	Χ2 test for independence

Problem 11

One of the most difficult things to do in statistics is to determine the correct hypothesis test to do for a given scenario.

Determine the null hypothesis and the alternate hypothesis:

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The August 2008 edition of Academy of Management Journal featured an investigation of the performance and timing of corporate acquisitions. The investigation discovered that in a random sample of 2778 firms, 748 announced one or more acquisitions during the year 2000. Does the sample provide sufficient evidence to indicate that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 30%? Test to a level of significance of 0.05.

Choose the correct HO and HA statements:

Problem 11 options:

A)	HO : μ = 30% HA : μ < 30%

B)	HO : μ = 30% HA : μ ≠ 30%

C)	HO : μ = 30% HA : μ > 30%

D)	HO : p = 30% HA : p < 30%

Problem 12

One of the most difficult things to do in statistics is to determine the correct hypothesis test to do for a given scenario.

Determine the most appropriate hypothesis test to use for the following scenario:

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The most appropriate hypothesis test to use for this scenario is:

Problem 12 options:

A)	z - test for single sample

B)	z test for single population proportion

C)	z - test for single population mean

D)	t - test for single sample

E)	t - test for single population mean

Problem 13

One of the most difficult things to do in statistics is to determine the correct hypothesis test to do for a given scenario.

Determine the null hypothesis and the alternate hypothesis:

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In a study to test the effects of science fiction movies on people's belief in the supernatural, seven people completed a measure of belief in the supernatural before and after watching a popular science fiction movie. Participants' scores are listed below with high scores indicating higher levels of belief.

Participant	Supernatural Belief Score BEFORE Watching Sci-Fi Movie	Supernatural Belief Score AFTER Watching Sci-Fi Movie
A	6	9
B	3	5
C	6	6
D	5	2
E	1	7
F	3	8
G	2	3

Using the .01 significance level, does participants' belief in the supernatural change after watching the movie?

Choose the correct HO and HA statements:

Problem 13 options:

A)	HO : μ1 = μ2 HA : μ1 < μ2

B)	HO : μ1 = μ2 HA : μ1 > μ2

C)	HO : p1 = p2 HA : p1 ≠ p2

D)	HO : μ1 = μ2 HA : μ1 ≠ μ2

Problem 14

One of the most difficult things to do in statistics is to determine the correct hypothesis test to do for a given scenario.

Determine the most appropriate hypothesis test to use for the following scenario:

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Participant	Supernatural Belief Score BEFORE Watching Sci-Fi Movie	Supernatural Belief Score AFTER Watching Sci-Fi Movie
A	6	9
B	3	5
C	6	6
D	5	2
E	1	7
F	3	8
G	2	3

Using the .01 significance level, does participants' belief in the supernatural change after watching the movie?

The most appropriate hypothesis test to use for this scenario is:

Question 14 options:

A)	t - test for dependent means

B)	Χ2 test for goodness of fit

C)	z - test for two population proportion

D)	t - test for independent means

E)	one-way ANOVA