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:
	C.	H0: 19.5 H1: > 19.5
	D.	H0: 19.5 H1: = 19.5

(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.

What is a Type II error ?

	A.	Reject H0 when H0 is True
	B.	Do not reject H0 when H0 is True
	C.	Do not reject H0 whenH0 is False
	D.	Reject H0 when H0 is False

(Continue with question 3) How does the type II error affected by the other factors ?

	A.	When increases, increases.
	B.	When population standard deviation increases, decreases.
	C.	When sample size increases, decreases.
	D.	When sample size increases, bothand increase.

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

(Following question 5). 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

(Following question 5&6). 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.

What is a Type I error ?

	A.	Reject H0 when H0 is found false.
	B.	Reject H0when H0 is found true.
	C.	Did not reject H1 when H1is found false.
	D.	Did not reject H1 when H1 is found true.

Determine the upper-tail critical value ta/2 from t table when n = 41 and = 0.05 for doing a two tail test of the hypothesis about population mean.

	A.	2.021
	B.	2.042
	C.	1.684
	D.	1.318

Determine the upper-tail critical value ta from t table when n = 41 and = 0.05 for doing a one tail test of the hypothesis about population mean.

	A.	2.021
	B.	2.042
	C.	1.684
	D.	1.318

The following information is available for two samples selected from independent normally distributed populations.

PopulationA:n1=30S21=27

PopulationB:n2=31S22=54

What is the value for FSTAT ?

	A.	F STAT =6
	B.	FSTAT=4
	C.	FSTAT=2
	D.	FSTAT= 1

(Following question 11) The aim of the F test in the above case is to test:

	A.	whether there is a difference between the mean of population A and mean of population B.
	B.	whether there exists a difference between the means of the two populations due to a treatment.
	C.	whether the two populations have equal variances.
	D.	whether the model built indicates a good fit between the independent variable and the dependent variable.

Consider you are doing a One-way ANOVA test by running an experiment with 4 groups, with 8 values (observations) in each group. Form the ANOVA summary table below. What is the SSA(d) value ? Degree of Sum of Mean Square F Freedom Squares (Variance) Among C- 1= SSA = MSA = 80 F stat = groups (a) (d) (9) Within n - C= SSW = 560 MSW = Groups (b) (f) Total n- 1= SST = (C) (e) A. 60 O B. 120 O C. 240 O D. 80