MS 1023 Multiple Choice Hypothesis Testing Assignment (MAXIMUM is 2 Points) Name_____________________________ID____________________ You have been purchasing regular unleaded gasoline at 2.79 per gallon in your neighborhood. Your friend says the prices in his area are more expensive so you decide to take a random sample of 5 stores in his location to see if he is correct. You collect the following data: 2.722.983.112.682.82 where the sample mean = 2.862 and s = 0.1806. Assume the data is normally distributed. Answer questions 1 through 5. 1. Use the information on gasoline prices above, and an alpha level of .05, and state the null and alternative hypothesis. a. Ho: = 2.86 Ha: > 2.86 b. Ho: = 2.79 Ha: > 2.79 c. Ho: = 2.86 Ha: 2.86 d. Ho: = 2.79 Ha: < 2.79 e. Ho: < 2.86 Ha: > 2.86 2. From gasoline prices above, identify the hypothesized value. a. 2.79b. 2.86c. 1.645d. 0.05e. 0.1806 3. From gasoline prices above, compute the value of the test statistic. a. -0.89b. 2.5c. 0.89d. 1.99e. -2.5 4. From gasoline prices above, determine the critical value using alpha = .05. a. 2.776b. 2.015c. 1.645d. 2.571e. 2.132 5. From gasoline prices above, state your conclusion using an alpha level of .05. a. Reject the null hypothesis and claim there is evidence to suggest your friend is paying more for regular unleaded gasoline. b. Reject the null hypothesis and claim there is NOT enough evidence to suggest your friend is paying more for regular unleaded gasoline. c. Fail to reject the null hypothesis and claim there is evidence to suggest your friend is paying more for regular unleaded gasoline. d. Fail to reject the null hypothesis and claim there is NOT enough evidence to suggest your friend is paying more for regular unleaded gasoline. e. Reject the null hypothesis and claim your friend is paying exactly the same as you for regular unleaded gasoline The reputation of many businesses can be severely damaged due to a large number of defective items during shipment. Suppose 300 batteries are randomly selected from a large shipment; each is tested and 9 defective batteries are found. At a 0.05 level of significance, does this provide evidence that the proportion of defective batteries is less than 5%? Answer questions 6 through 10. 6. From the battery problem above, what proportion of the sample is defective? a. 5b. 0.03c. 9d. 0.1e. 0.05 7. From the battery problem above, what is the value of the test statistic? a. 1.59b. -2.03c. -1.59d. 2.03e. -3.48 8. From the battery problem above, find the critical value using alpha = .05. a. -1.645b. 1.282c. 1.645d. -1.96e. 1.96 9. From question the battery problem above, determine the best decision and interpretation. a. Adopt the null hypothesis and claim, the true proportion of defective batteries is significantly different from 5%. b. Adopt the null hypothesis and claim, the true proportion of defective batteries is not significantly different from 5%. c. Reject Ho. The true proportion of defective batteries is significantly less than 5%. d. Reject Ho. The true proportion of defective batteries is significantly greater than 5%. e. Reject Ho. The true proportion of defective batteries is exactly equal to 5%. 10. From the battery problem above, reevaluate your conclusion at a .10 alpha level. a. Adopt the null hypothesis and claim, the true proportion of defective batteries is significantly different from 5%. b. Adopt the null hypothesis and claim, the true proportion of defective batteries is not significantly different from 5%. c. Reject Ho. The true proportion of defective batteries is significantly less than 5%. d. Reject Ho. The true proportion of defective batteries is significantly greater than 5%. e. Reject Ho. The true proportion of defective batteries is exactly equal to 5%.

MS 1023 Multiple Choice Hypothesis Testing Assignment
Name_____________________________ID____________________

You have been purchasing regular unleaded gasoline at 2.79 per gallon in your neighborhood. Your friend says the prices in his area are more expensive so you decide to take a random sample of 5 stores in his location to see if he is correct. You collect the following data:
2.722.983.112.682.82 where the sample mean = 2.862 and s = 0.1806.
Assume the data is normally distributed. Answer questions 1 through 5.

1. Use the information on gasoline prices above, and an alpha level of .05, and state the null and alternative hypothesis.

a. Ho: = 2.86 Ha: > 2.86
b. Ho: = 2.79 Ha: > 2.79
c. Ho: = 2.86 Ha: 2.86
d. Ho: = 2.79 Ha: e. Ho: 2.86

2. From gasoline prices above, identify the hypothesized value.
a. 2.79b. 2.86c. 1.645d. 0.05e. 0.1806

3. From gasoline prices above, compute the value of the test statistic.
a. -0.89b. 2.5c. 0.89d. 1.99e. -2.5

4. From gasoline prices above, determine the critical value using alpha = .05.
a. 2.776b. 2.015c. 1.645d. 2.571e. 2.132

5. From gasoline prices above, state your conclusion using an alpha level of .05.
a. Reject the null hypothesis and claim there is evidence to suggest your friend is paying
more for regular unleaded gasoline.
b. Reject the null hypothesis and claim there is NOT enough evidence to suggest your
friend is paying more for regular unleaded gasoline.
c. Fail to reject the null hypothesis and claim there is evidence to suggest your friend is
paying more for regular unleaded gasoline.
d. Fail to reject the null hypothesis and claim there is NOT enough evidence to suggest
your friend is paying more for regular unleaded gasoline.
e. Reject the null hypothesis and claim your friend is paying exactly the same as you for regular unleaded gasoline








The reputation of many businesses can be severely damaged due to a large number of defective items during shipment. Suppose 300 batteries are randomly selected from a large shipment; each is tested and 9 defective batteries are found. At a 0.05 level of significance, does this provide evidence that the proportion of defective batteries is less than 5%? Answer questions 6 through 10.

6. From the battery problem above, what proportion of the sample is defective?
a. 5b. 0.03c. 9d. 0.1e. 0.05

7. From the battery problem above, what is the value of the test statistic?
a. 1.59b. -2.03c. -1.59d. 2.03e. -3.48

8. From the battery problem above, find the critical value using alpha = .05.
a. -1.645b. 1.282c. 1.645d. -1.96e. 1.96

9. From question the battery problem above, determine the best decision and interpretation.
a. Adopt the null hypothesis and claim, the true proportion of defective batteries is significantly different from 5%.
b. Adopt the null hypothesis and claim, the true proportion of defective batteries is not significantly different from 5%.
c. Reject Ho. The true proportion of defective batteries is significantly less than 5%.
d. Reject Ho. The true proportion of defective batteries is significantly greater than 5%.
e. Reject Ho. The true proportion of defective batteries is exactly equal to 5%.
10. From the battery problem above, reevaluate your conclusion at a .10 alpha level.
a. Adopt the null hypothesis and claim, the true proportion of defective batteries is significantly different from 5%.
b. Adopt the null hypothesis and claim, the true proportion of defective batteries is not significantly different from 5%.
c. Reject Ho. The true proportion of defective batteries is significantly less than 5%.
d. Reject Ho. The true proportion of defective batteries is significantly greater than 5%.
e. Reject Ho. The true proportion of defective batteries is exactly equal to 5%.