4662 Words19 Pages

Review Questions - 2: MGMT 3101
(For Final Exam)
Section I: (True or False)
1. Hypothesis testing is a procedure based on sample evidence and probability theory used to decide whether the hypothesis is a reasonable statement and should be not be rejected or is unreasonable and should be rejected.
2. An alternate hypothesis is a statement about a population parameter that is accepted when the null hypothesis is rejected.
3. The level of significance is the risk we assume of rejecting the null hypothesis when it is actually true.
4. Type II error is the probability or risk assumed by rejecting null hypothesis when it is actually true.
5. A test statistic is a value determined from sample information used to reject or not reject the null hypothesis.
6. The region or area of rejection defines the location of all those values that are so large or so small that the probability of their occurrence under a true null hypothesis is rather remote.
7. If the null hypothesis states that there is no difference between the mean income of males and the mean income of females, and the alternate hypothesis states that there is a difference in the mean income of males and females, then the test is one-tailed.
8. If the null hypothesis is µ > 200 and the alternate hypothesis states that µ < 200, then, a two-tail test is being conducted.
9. In not rejecting the null hypothesis, we are actually saying that our sample data does not allow us to reject the null hypothesis. Thus, the null hypothesis is true.
10. If we do not reject the null hypothesis based on sample evidence, we have proven beyond doubt that the null hypothesis is true.
11. The level of significance is selected after setting up a decision rule and sampling the population.
12. The first step in testing a hypothesis is to state the null and the alternate hypotheses.
13. The

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