QUESTION 1

The price earnings ratios (P/E) is an important tool for stock performance evaluation. U.S bankers

want to know whether the mean P/E ratio in their selected stocks is above the population mean

P/E ratio 19.5. How to form an upper-tail test hypothesis?

	A.	H0: = 19.5 H1: 19.5
	B.	H0: 19.5 H1: < 19.5
	C.	H0: 19.5 H1: > 19.5
	D.	H0: 19.5 H1: = 19.5

QUESTION 2

(Continue with question 1) For an upper-tail test of hypothesis by Z or t test:

	A.	Reject H0whenZa/2orta/2is larger than the Z ortcritical value.
	B.	Reject H0whenZaortais larger than the Z ortcritical value.
	C.	Reject H0whenZa/2orta/2is smaller than the Z ortcritical value.
	D.	Reject H0whenZaortais smaller than the Z ortcritical value.

QUESTION 3

Under a business data analytics project, you collect a sample with sample mean X (x bar) = 30, and

you want to test whether the population mean = 40. How do you form your hypothesis?

	A.	H0: = 40 H1: 40
	B.	H0: = 30 H1: 30
	C.	H0: 40 H1: = 40
	D.	H0: 30 H0: = 30

QUESTION 4

(Following question 3). The confidence level for your hypothesis testing is 95%. Perform aZ test for your hypothesis testing, with sample size n= 100 and population mean known = 27.

What is the ZSTATvalue (rounding to three decimal place)?

	A.	3.704
	B.	-3.704
	C.	1.711
	D.	-1.711

QUESTION 5

(Following question 3&4). Compare the ZSTAT value with Z critical value = +/- 1.96,what conclusion you get?

	A.	Do not rejectH0and conclude that H1: 40.
	B.	Reject H0and conclude that H1: 40.
	C.	Reject H0and conclude that H1: = 40
	D.	Do not rejectH0and conclude that H1: = 40.

QUESTION 6

Estimate the confidence interval of themean value of Y() given Xi = 2000, = 212, SYX =30,X = 1715, SSX (summedsquares of the difference between xiandX) = 1571500, andt0.025= 2.306. The confidence level for this case is 95%. Rounding to three decimal place.

	A.	225.057 Y()272.943
	B.	185.057 Y() 238.943
	C.	166.247 Y() 197.296
	D.	151.247Y() 182.296