1. Which of the following best describe the significance level=1%?

I.The probability of acceptingwhenis false is0.01

II.The probability of rejectingwhenis true is 0.01

III.The probability of failing to rejectwhenis falseis1-0.01=0.99

II only

I and III

I,II,and III

I only

2.A study of 20 professors in a university indicated that the 95% confidence interval for the mean salary of all faculty members in the university is between $68,945 and $81,245. What assumptions must be true for this confidence interval to be valid?

The sample is randomly selectedfrom a population of salaries that is a t-distribution

The distribution of all professors' salaries is approximately normal

The sampling distribution of the sample means is approximately normal

No assumptions are necessary.The Central Limit Theorem applies