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5. (06.02 MC) Which of the following increases the power of a significance test? (2 points) I. Decrease the variability of the data Il. Decrease

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5. (06.02 MC) Which of the following increases the power of a significance test? (2 points) I. Decrease the variability of the data Il. Decrease the p-value Ill. Increase a I only O lI only Ill only I and Ill only I, 11, and Ill3. (06.02 MC) A large restaurant is being sued for age discrimination because 15% of newly hired candidates are between the ages of 30 years and 50 years when 50% of all applicants were in that age bracket. You plan to use hypothesis testing to determine whether there is significant evidence that the company's hiring practices are discriminatory. Part A: State the null and alternative hypotheses for the significance test. (2 points) Part B: In the context of the problem, what would a Type I error be? A Type II error? (2 points) Part C: If the hypothesis is tested at a 1% level of significance instead of 5%, how will this affect the power of the test? (3 points) Part D: If the hypothesis is tested based on the hiring of 1,000 employees rather than 100 employees, how will this affect the power of the test? (3 points)] 6. (06.01 MC) A manufacturer of a new medication on the market for Alzheimer's disease makes a claim that the medication is effective in 65% of people who have the disease. One hundred eighty individuals with Alzheimer's disease are given the medication, and 115 of them note the medication was effective. Does this nding provide statistical evidence at the 0.05 level that the effectiveness is less than the 65% claim the company made? Make sure to include parameter, conditions, calculations, and a conclusion in your answert (10 points) 3 7. (06.02 HC) Mars candy company is testing one of its machines in the factory to make sure it is producing more than 98% highquality candy (Ho: p = 0.98; Ha: p > 0.98;

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