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Reading 11: Hypothesis Testing - LOS b, (Part 1) ~ Q13-17

Q13. A survey is taken to determine whether the average starting salaries of CFA charterholders is equal to or greater than $58,500 per year. What is the test statistic given a sample of 175 newly acquired CFA charterholders with a mean starting salary of $67,000 and a standard deviation of $5,200?

A)      21.62.

B)      -1.63.

C)      1.63.

Q14. A survey is taken to determine whether the average starting salaries of CFA charterholders is equal to or greater than $54,000 per year. Assuming a normal distribution, what is the test statistic given a sample of 75 newly acquired CFA charterholders with a mean starting salary of $57,000 and a standard deviation of $1,300?

A)   2.31.

B)   -19.99.

C)   19.99.

Q15. A survey is taken to determine whether the average starting salaries of CFA charterholders is equal to or greater than $57,000 per year. Assuming a normal distribution, what is the test statistic given a sample of 115 newly acquired CFA charterholders with a mean starting salary of $65,000 and a standard deviation of $4,500?

A)   19.06.

B)   -19.06.

C)   1.78.

Q16. If a two-tailed hypothesis test has a 5% probability of rejecting the null hypothesis when the null is true, it is most likely that the:

A)   probability of a Type I error is 2.5%.

B)   power of the test is 95%.

C)   significance level of the test is 5%.

Q17. Which of the following statements about hypothesis testing is most accurate? A Type II error is the probability of:

A)   failing to reject a false null hypothesis.

B)   rejecting a true alternative hypothesis.

C)   rejecting a true null hypothesis.

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