Q6. Which of the following is the correct sequence of events for testing a hypothesis? A) State the hypothesis, select the level of significance, compute the test statistic, formulate the decision rule, and make a decision. B) State the hypothesis, formulate the decision rule, select the level of significance, compute the test statistic, and make a decision. C) State the hypothesis, select the level of significance, formulate the decision rule, compute the test statistic, and make a decision.
Q7. Which of the following statements about hypothesis testing is most accurate? A) The probability of a Type I error is equal to the significance level of the test. B) If you can disprove the null hypothesis, then you have proven the alternative hypothesis. C) The power of a test is one minus the probability of a Type I error.
Q8. An analyst conducts a two-tailed z-test to determine if small cap returns are significantly different from 10%. The sample size was 200. The computed z-statistic is 2.3. Using a 5% level of significance, which statement is most accurate? A) You cannot determine what to do with the information given. B) Fail to reject the null hypothesis and conclude that small cap returns are close enough to 10% that we cannot say they are significantly different from 10%. C) Reject the null hypothesis and conclude that small cap returns are significantly different from 10%.
Q9. An analyst conducts a two-tailed test to determine if mean earnings estimates are significantly different from reported earnings. The sample size is greater than 25 and the computed test statistic is 1.25. Using a 5% significance level, which of the following statements is most accurate? A) The analyst should reject the null hypothesis and conclude that the earnings estimates are significantly different from reported earnings. B) The analyst should fail to reject the null hypothesis and conclude that the earnings estimates are not significantly different from reported earnings. C) To test the null hypothesis, the analyst must determine the exact sample size and calculate the degrees of freedom for the test.
| 
发表于 2009-1-13 15:42
| 
