1) Set Up 1: The mean price for a gallon of milk in Kanas City, MO is the highest in the country last year at $4.85. A sample from 25 different grocery stores in Kansas City this year found the sample mean price per gallon of $4.60. Assume that the population standard deviation is known to be $0.60, and the population of milk prices is normally distributed. Suppose an economist is asked if the price of milk per gallon has decreased. What is the null hypothesis for this test?

H0: = 25

H0: = 4.60

H0: = 0.40

H0: = 4.85

2) Use Set up 1. If the alternate hypothesis states that

In both tails

In the lower or left tail

In the upper or right tail

In the center

3) Use Set up 1. For an alternative hypothesis:

Do not reject H₀.

Reject H₀.

Reject H₁.

None Apply.

4) When testing this null hypothesis, a researcher finds that the test-statistic exceeds the cut-off (critical) value and rejects the null hypothesis at the 5% significance level. The 5% significance level is the:

probability that the researcher rejected the null when it was true (Type I error).

probability that the researcher did not reject the null when it was false (Type II error).

probability that the researcher would find the test-statistic that was found (p-value).

probability that the researcher has too few observations in the sample.

5) If the alternate hypothesis states that ? 4,000, where is the rejection region for the hypothesis test?

In both tails

In the lower or left tail

In the upper or right tail

In the center

6) When testing a null hypothesis against the alternative, the p-value tells us ______

Whether the test is a one tailed or two-tailed test

Whether the null is appropriately constructed

To reject the null if the p-value is less than the significance level

Whether the significance level should be changed

7) You are thinking of using a t procedure to test hypotheses about the mean of a population using a significance level of 0.05 and the standard deviation is not known. You suspect the distribution of the population is not Normal and may be moderately skewed. Which of the following statements is CORRECT?

You should not use the t procedure because the population does not have a Normal distribution.

You may use the t procedure provided your sample size is large, say, at least 40.

You may use the t procedure, but you should probably claim the significance level is only 0.10.

You may not use the t procedures since they are robust to lack of Normality for confidence intervals but not for tests of hypotheses.

8) A simple random sample ("SRS") of 64 items taken from a normal population yields an average and standard deviation of 51.2 and 3.1, respectively. Which of the drawings below is the CORRECT representation of the p-value if these data and a significance level of 0.05 are used to test H₀: = 52, H₁:

Student's t -3.50 -2.50 -2.06 -1.50 -0.50 0.50 1.50 2.50 3.50 O Z-Distribution -3.50 -2.50 -2.06 -1.50 -0.50 0.50 1.50 2.50 3.50O Z-Distribution -3.50 -2.50 -1.50 -0.50 0.50 1.50 2.50 3.50 O Student's t -3.50 -2.50 -1.50 -0.50 0.50 1.50 2.50 3.50An SRS of 64 items taken from a normal population yields a sample average and sample standard deviation of 35 and 14, respectively. Which of the drawings below is the CORRECT representation of the p-value if these data and a significance level of 0.05 are used to test Ho: M = 32, H1: M $ 32? O Z-Distribution 1.71 1.71 0.0436 0.0436 -3.50 -2.50 -1.50 -0.50 0.50 1.50 2.50 3.50 O Z-Distribution 0.0436 -3.50 -2.50 -1.71 -1.50 -0.50 0.50 1.50 2.50 3.50\fThe water diet requires an individual to drink two cups of water every half hour from the time they get up until they go to bed, but otherwise allows them to eat whatever they want. Four adult volunteers agree to test the diet. They are weighed prior to beginning the diet and after six weeks on the diet. The weights (in pounds) are found below. Person 2 3 4 X Weight before the diet 180 125 240 150 173.75 49.56 Weight after six weeks 170 130 215 152 166.75 36.09 For the population of all adults, assume that the Difference 10 25 -2 13.47 weight loss after six weeks on the diet (the weight before the diet minus the weight after six weeks on the diet) is Normally distributed with mean u. To determine if the diet leads to weight loss, we test the hypotheses Ho: M = 0, Ha: M > O. Suppose the P-value of the test was 0.075. Further suppose that a is chosen to be 0.05. The CORRECT conclusion is O statistically significant evidence that the water diet resulted in weight loss on average. O statistically significant evidence that the water diet did not result in weight loss on average. O not statistically significant evidence that the water diet resulted in weight loss on average. O not statistically significant evidence that the water diet did not result in weight loss on average.A manufacturer wants to increase the shelf life of a line of cake mixes. Past records indicate that the average shelf life of the mix is 190 days, and the distribution is normal. After a revised mix has been developed, a sample of nine boxes of cake mix gave these shelf lives (in days) 198 204 198 196 196 199 190 185 196 Using a = 0.05, has the shelf life of the cake mix increased? 0 Yes, because the computed t (test statistic) is greater than the critical (cut-off) value. 0 Yes, because the computed t (test statistic) is less than the critical (cut-off)va|ue. O No, because computed tltest statistic) lies in the acceptance range. 0 No, because 195.78 is close enough to 190