QMB3200 Exam 3 Practice Problems Solutions

1. Answer: (E) As per the formula sheet, the degrees of freedom for a two-sample t-test are

n1 + n2 2 = 15 + 18 2 = 31
2. Answer: (C) Since we do not know the population standard deviations and the sample sizes are small, we have to do a two sample t-test. For this question, you first have to get the pooled standard deviation:

sp =

2 2 (n1 1)s1 + (n2 1)s2

n1 + n2 2

(15 1)2.52 + (18 1)3.12 15 + 18 2

250.87 31

= 2.84

Then, use that in the formula for the test statistic:

tstat =

( x1 x2 ) H0 value sp 1 n1 + 1 n2

(38 45) 0 2.84 1 15 + 1 18

=
2.84

7 1 15 + 1 18

Note: We know that the H0 value is 0 (as it is 99% of the time) because we are simply testing for a difference in the scores. 3. Answer: (C) In this scenario, the population standard deviations are unknown. However, since both sample sizes are above 30, we can do a two sample z test. Also, since we are attempting to determine of one credit card yields a HIGHER revenue, we must be doing a one-tailed test. 1

4. Answer: (D) Since we are doing a z test, we know that the reject H0 region must be a z value. Also, by reading the question, we know that the following hypotheses are being tested: H0: H < L H L < 0 vs. HA: H > L H L > 0 We know this because the question indicates that we wish to determine if the high interest credit card yields MORE revenue. So, as per the formula sheet: invNorm(1 , 0, 1) = invNorm(1 .05, 0, 1) = +1.645 5. Answer: (C) Since the test statistic falls in the do not reject region, we can conclude H0 i.e. H L < 0 In other words, we believe H < L 6. Answer: (C) Remember we said at the review that you dont need the difference to be zero. You could have some other difference tested for. In this case, since the pretzels claim to have 15 ounces more, you must be testing for a difference of 15 ounces. Also, since we are doing a two-tailed test, we know H0: B S = 15

7. Answer: (B) As per the review, we know that the value for H0 does not HAVE to be 0. That is, we could be testing a different hypothesized value. In this instance, H0: Sony Samsung > $100 vs. HA: Sony Samsung < $100 In addition, we are given sp = $25. Thus, the t test statistic is given as

tstat =

( x1 x2 ) H0 value sp 1 n1 + 1 n2

(310 185) 100 25 1 10 + 1 12

= 2.34

8. Answer: (D) Tricky question. Because the question states that the population standard deviations are known, we will be doing a z test for independent means. Likewise, we know that we are doing a two-sided test because the question wants to know if the mean times for the processes are equal or not. So, as per the formula sheet, we know that for a z test, we get the rejection region by doing invNorm(/2, 0, 1) invNorm(.025, 0, 1) 1.960 However, since we are dealing with a two sided test, we know that the critical z values are +1.960 and 1.960. That is, when you draw it the do NOT reject region is 1.960 < test statistic z < +1.96

9. Answer: (E) Before we do anything else, if we want to test if the mean of population 1 exceeds the mean of population 2, we must be testing H0: 1 < 2 vs. HA: 1 > 2 Also, be careful that in the problem we are given the variance (NOT the standard deviation) of each population. Thus, we compute the test statistic as

sp =

2 2 (n1 1)s1 + (n2 1)s2

n1 + n2 2

(15 1)36 + (13 1)25 15 + 13 2

= 30.92 = 5.561

Then, use that in the formula for the test statistic:

tstat =

( x1 x2 ) H0 value sp 1 n1 + 1 n2

(50 40) 0 5.561 1 15 + 1 13

10 2.107

= 4.75

So, we now need to look this test statistic up on the t table with df = n1 + n2 2 = 15 + 13 2 = 26 0.1 0.05 0.025 0.01 0.005 1Tail df 2Tail 0.2 0.1 0.05 0.02 0.01 : : : : : : 26 1.100 1.383 1.833 2.262 2.821 t = 4.75

Since the test statistic falls off the t-table, we know that the one-tailed p-value is less than .005

10. Answer: (C) These data are paired because every flashlight got each battery. Also, since the differences were calculated as (name brand generic) and we want to see if name brand batteries do better, so this is our alternative hypothesis. Thus, we must be testing N > G N G > 0 or, more appropriately (for paired tests) d > 0 11. Answer: (C) Since we are running a t-test, we have to match the alpha level (with the appropriate number of tails) and the df i.e. we have to go INTO the t-table. As per the formula sheet (for paired means), df = nd 1 = 10 1 = 9. Also, we know that we are conducting a ONE tailed test because we are testing d > 0 .10 .05 .025 .01 .005 1Tail df .20 .10 .05 .02 .01 2Tail : : : : : 9 1.383 1.833 2.262 2.821 3.250 If you draw the rejection region you will be shading the UPPER tail so the rejection region will start at +1.383. 12. Answer: (A) As per the previous question, our rejection region starts at +1.383. Therefore, a test statistic of 2.01 MUST HAVE fallen in the rejection region. Therefore, we reject H0 and conclude d > 0 However, what the hell does that mean? Well, lets trace it back (as per the previous question): N G > 0 N > G So, we conclude that name brand batteries last longer. 5

13. Answer: (B) Recall: All things being equal, paired data are BETTER. This harps at the reasoning behind why the data values are paired in the first place. If we did it independently, the differences in the battery life would be confounded by the different flashlights themselves. By having each flashlight get both batteries, the pairing removes this variation. That is, we know that the difference in battery life is due to the batteries not the flashlights. Note: Read more about this in the conceptual review 14. Answer: (A) These data are paired because the assessors are determining the value of each house. Therefore, you need only focus on the differences. Also, since they are just checking to see if there is a difference or not, you must use a two sided alternative. 15. Answer: (A) OK, this one is tough because you have to work only with the differences (since as per the previous question, we know that the data values are paired). So, first, lets get the differences (completely ignoring the given means and standard deviations) House Realty Independent Differences 1 2 3 4 5 6 7 8 9 10 150 180 310 200 300 450 500 190 138 410 155 199 316 185 296 425 478 190 135 400 5 19 6 15 4 25 22 0 3 10

 Now, put the differences into L1 (STAT Edit) and get the mean and sample standard deviation (STAT Calc 1Var Stats). So, we should get the following

d = 4.9

sd = 13.5

nd = 10

Now, just plug that into the test statistic for paired means

tstat =

d H0 value sd nd

4.9 0 13.5 10

Note: You absolute CANNOT just find the difference in the given means and standard deviations... you absolutely need to get the differneces. 16. Answer: (A) If you do the math, you will get a test statistic of t = 1.15 Now, look that up on the t-table with df = nd 1 = 9 0.15 0.1 0.05 0.025 0.01 1Tail df 0.3 0.2 0.1 0.05 0.02 2Tail : : : : : : 9 1.100 1.383 1.833 2.262 2.821 t = 1.15 Remember that we are looking at the two-tail p-value because we are testing a alternative. Therefore, the p-value is between .20 and .30

17. Answer: (A) Because we are testing the same firemen in both samples, these samples must be paired a.k.a. dependent. Also, since we are testing if the firemen can complete the obstacle course faster after having completed a physical fitness class, we must be doing a one-tailed test. For example, suppose we let B represent the mean time required to complete the course before the physical fitness class and let A represent the mean time required to complete the course after the physical fitness class. In this case, our alternative hypothesis (i.e. what we are trying to prove) would be HA: B > A B A > 0 d > 0 18. Answer: (D) As per the review, we know that for paired samples, the degrees of freedom are nd 1 i.e. number of differences minus one. Since there were 13 firemen (i.e. 13 differences would result), df = n 1 = 13 1 = 12. 19. Answer: (E) When running the chi square test for independence, the sample size (n = 453) is irrelevant. The degrees of freedom for this test are (r 1)(c 1) = (3 1)(5 1) = 8 df 20. Answer: (B) Use the formula for an expected cell count Row Column 30 50 Expected = = = 15 Grand 100

21. Answer: (A) If you do the chi-square test for independence in your calculator, you get a test statistic of 4.76. However, each of the 4 cells in question contributed to that value (I got these expected by looking at matrix B once the test was conducted)

(10 15 ) + ( 20 15 ) + ( 40 35 ) + ( 30 35 ) =
2 2 2

So, how much did conservatives who support the flat tax contribute to this quantity? Just get the first component

15

15

35

35

= 4.76

(10 15 )
15

= 1.67

Note: As we discussed at the review, by just looking at the 1.67 quantity, can we determine if the observed was greater than the expected? No! This is because when we square the result in the formula, it is automatically positive and thus we have NO idea which was bigger (observed or expected). 22. Answer: (B) For the independence test df = (r 1)(c 1) = (2 1)(2 1) = 1 df 23. Answer: (C) Recall the hypotheses that are being tested for the independence test: H0: Political preference and support of the flat tax are independent Ha: Political preference and support of the flat tax are NOT independent Also, recall that a type I error is when we reject H0, but H0 is true. Therefore, a type I error would be if you reject H0 (and thus believe that political preference and support of the flat tax are associated) when, in fact, they are independent (i.e. not associated).

24.

Answer: (A)

As per the formula sheet, expected =

row total column total grand total

650 500 1000

25. Answer: (B) As per the formula sheet, we know df = (r 1)(c 1) = (2 1)(2 1) = 1 So, we are looking for the cutoff value for the rejection region (a.k.a. the critical value). On the chi square table, where df = 1 and = .05 meet, we get a value of 3.84 26. Answer: (E) This question is MUCH easier to do in the TI83 than by hand Press 2nd MATRIX and enter all the data into matrix A You should get a 2 test statistic of 10.99 and a p-value of .00092. Since the p-value = .00092 < = .05, reject H0 and conclude that gender and survival are not independent. 27. Answer: (A) Remember that the problem with why we cannot use the chi-square test is NOT because of the observed cell counts. Rather, it is because of the EXPECTED cell counts. So, for these data, lets compute the expected cell counts and see if any drop below 5. Now, of course, it would be a pain in the ass to compute them all, so lets get slick and just do it for the row and column whose totals are the LOWEST Press STAT TESTS 2 test and press Calculate

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 Male Female Total expected =

Yes 7 4 11

No 8 9 17 = 5.11

Total 15 13 28

row total column total grand total

11 13 28

Because THIS is at least 5, we CAN do the chi-square test for independence. 28. Answer: (B) Recall: The null and alternative hypotheses for the chi square test are H0: Variables independent (NOT associated) vs. HA: Variables dependent (associated) A False Because p-value = .03 < , we reject H0 i.e. we believe the variables are associated B True As per the review, we know that the chi square test statistic values are skewed right and the p-value is computed as a right tail probability C False See answer choice (B) D False See answer choice (A) 29. Answer: (C) As per the review, we know that the rejection region for the chi square test is always in the right (upper) tail. Thus, we look up our chi square critical value with df = (r 1)(c 1) = (3 1)(4 1) = 6 df 0.10 0.05 0.025 0.02 0.01 : : : : : 6 10.64 12.59 14.45 15.03 16.81 Thus, the rejection region is denoted by 2 > 16.81

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30. Answer: (B) As per the review, the expected cell counts are what we would expect to see if the variables were truly independent. Therefore, if ALL of the observed cell counts are equal to ALL the expected cell counts, then the variables are probably REALLY independent! That is, the null hypothesis (which states that the variables are independent) is true. Note: Much as this is very unlikely to occur (i.e. natural sampling variation would indicate that the observed counts should differ at least slightly from their expected counts), you may be asked conceptual questions to this effect. 31. Answer: (A) i True As per the review, we would always expect the observed counts to differ (even slightly) from the expected counts ii False If the observed counts are really close to their respective expected counts, then the chi square test statistic will be small. Think about it. If the test statistic formula measures the distance between the observed and expected counts, the further away they get from each other the larger the test statistic. iii False As per the solution to part (ii), if the observed and expected counts are close together, the chi square test statistic will be small. If the test statistic is small, we know that the p-value will be large. 32. Answer: (E) As per the review, if you reverse the row and column variables, nothing happens. That is, the test just determines if the variables are associated with one another (regardless of direction). 33. Answer: (E) Because we are testing to see if two categorical variables are associated, we will be doing a chi square test for independence. 12

34. Answer: (C) Since each person was given both drugs, these data values must be paired (aka dependent) Also since we are simply testing for a difference, the test must be two tailed. 35. Answer: (A) As per the formula sheet, you know that a type II error is when we conclude H0 when HA is true. Also, make sure that you should re-write the hypotheses as H0: 1 > 2 vs. HA: 1 < 2 So, a type II error would be if we conclude H0 i.e. 1 is equal to or greater than 2 (or 2 is equal to or smaller than 1) when in fact Ha is true i.e. 1 is less than 2 (or 2 is greater than 1). 36. Answer: (C) Since the data values were gathered at each university, the data must be paired. How would this example have been independent? First, the researcher would have to randomly selected 50 universities, go to each, and acquire the PPG for the mens basketball team. Then, he would take another random sample of 50 universities, go to each, and acquire the PPG for the womens basketball team. Because he is purposefully selecting both teams at each university, he is attempting to control the variation that is due to the universities themselves (i.e. similar facilities, similar funding, etc) Also, since we are just looking for a difference, this is a two-tailed test. 37. Answer: (D) I False A paired t-test has df = nd 1 whereas a two sample t-test has df = n1 + n2 2 II True As we said at the review, all things being considered, paired analyses are better because they remove extraneous variation III True See above 13

38. Answer: (C) As per the question, we know that the null and alternative hypotheses are H0: P > S vs. HA: P < S As per the formula sheet, we know a type I error is when we conclude HA (i.e. the professional series lasts LESS time than the standard series or the standard series lasts MORE time than the professional series), when H0 is true (i.e. the professional series lasts at least as long). 39. Answer: (A) i True As per the review, when dealing with dependent (aka paired) samples, we only focus on the mean and standard deviation of the differences ii True As per the read at home section, by focusing only on the mean and standard deviation of the differences, we are conducting a more powerful test i.e. we will be more likely to detect a difference iii False If the samples are completely unrelated at each other, this means that they are independent i.e. we should be doing an independent analysis 40. Answer: (A) i True As per the notecard, we do a z test of independent means if 1 and 2 are both known (though this is a very unlikely thing to occur). ii True As per the notecard, we assume that the population standard deviations (and thus variances) are equal. iii False As per the read at home section, a dependent analysis is better i.e. it yields more powerful results.

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41. Answer: (C) If all observed are the same as all expected, the chi-square value must be zero (because in order to compute it, you must find the difference between each observed and each expected value). In addition, the p-value must be 1 because the tail area beyond a chi-square value of zero (the lowest possible value) is 1 (the highest possible value). Note: In reality, we would NOT anticipate that the observed counts would all be equal to their respective expected counts. However, if this DID happen, this would be the result. 42. Answer: (C) (i) False The test is run under the assumption that the NULL hypothesis is true i.e. the variables are NOT associated. (ii) True As per the formula sheet, we assume that all EXPECTED cell counts are at least 5 (iii) True As per the review, we discussed that if the expected counts drop below 5, we typically consolidate cells until this is achieved. Note: Read more about this in the conceptual review.

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