For this and the next 2 questions. An investment company claims that the average annual return on a well-diversified stock portfolio is 11.5%. You wish to test the validity of this claim. You then collect a random sample of 50 stocks across various industries and find that x-bar = 10.8% and s = 3.4%. You wish to conduct a test of hypothesis (alpha = 0.05) to see whether there is sufficient evidence to reject the claim. Which one of the following is the correct statement of hypothesis?

Question 1

1. Calculated Z-value:

1 points  

Question 2

1. Calculate p-value.

1. For this and the next 3 Questions. The average weekly earnings for all fulltime equivalent employees are reported to be $344. You believe that this claim is too low. You wish to prove that that the weekly earnings are HIGHER than the amount stated. You proceed by collecting a random sample of 1,200 employee data in all areas and find that the sample mean is $361 and sample standard deviation is $110. The significance level (alpha) for this test is 0.01. Write the statement of hypothesis.

1 points  

Question 3

1. Calculate Z.

1 points  

Question 4

1. What is the p-value?

1 points  

Question 5

1. State your decision and conclusion.

1 points  

Question6

1. Other things held constant, which of the following will result in an increase in the power of a hypothesis test? [I] Increase in the sample size (n). [II] Increase in level of significance. [III] Increase in standard error. [IV] Decrease in the sample size (n)

1 points  

Question 7

1. The null and alternative hypotheses of a t test for the mean are given as follows:  H₀: μ≥ $344  and  H₁: μ<  $344. Other things held the same, which of the following will result in an increase in the p-value ? [I] Increase in the sample size [II] Decrease in the sample size [III] Increase in the sample standard deviation [IV] Increase in the level of significance.

1 points  

Question 8

1. For this and the next 3 questions: A travel agency claims that at least 58% of all airline bookings are made online. However a sample of 70 airline reservations revealed that only 52% of recent bookings were made online. At the 10% significance level, carry out the hypothesis test. First, state the null and alternative hypotheses.

1 points  

Question 9

1. Describe the normal curve appropriate for this test of hypothesis.

1 points  

Question 10

1. Calculate Z

1 points  

Question 11

1. Calculate p-value

1 points  

Question 12

1. Suppose you wish to test the null hypothesis that the mean of a population is 100 versus the alternative that the mean is not equal to 100. You then take a sample and calculate a sample of mean of 90. Which of the following conclusions is correct?