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Which of the following most accurately describes the appropriate test structure?

A) F-test.

B) One-tailed test.

C) Two-tailed test.

D) Chi-square test.

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The correct answer is B

The alternative hypothesis, Ha: μ > $145,000, only allows for values greater than the hypothesized value. Thus, this is a one-sided (one-tailed) test.

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The critical value of the z-statistic is:

A) z = ±1.96.

B) z = –2.33.

C) z = +2.33.

D) z = ±2.33.

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The correct answer is C

For a one-tailed z-test at the 1% level of significance, the critical z-value is z0.01 = 2.33. Since the test is one-tailed on the upper end (i.e., Ha: μ > 145,000), we use a positive z-critical value

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At a 1 percent level of significance, Roberts should:

A) fail to reject the null hypothesis.

B) accept the null hypothesis.

C) reject the null hypothesis.

D) neither reject nor fail to reject the null hypothesis.

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The correct answer is A

The decision rule is: reject H0 if z-computed > z-critical. Since 1.1875 < 2.33, Roberts will fail to reject the null.

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The correct answer is A

The decision rule is: reject H0 if z-computed > z-critical. Since 1.1875 < 2.33, Roberts will fail to reject the null.

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7、Which of the following statements is FALSE?

A) A Type I error is rejecting the null when it is actually true.

B) If a person is presumed innocent unless proven otherwise, finding a guilty person innocent is an example of a Type I error.

C) Failing to reject the null when it is false is an example of a Type II error.

D) The probability of committing a Type I error is the significance level of the test.

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The correct answer is B

This is a Type II error. The null hypothesis is that the defendant is innocent which is not rejected when it should have been.

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8、A Type I error occurs when the null hypothesis:

A) is rejected when it is true.

B) fails to be rejected when it is false.

C) is rejected when it is false.

D) fails to be rejected when it is true.

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