Business Statistics 2

Question 1

What is Type 1 error

Answer 1

rejecting a true null hypothesis

Question 2

What is Type II error

Answer 2

Failure to reject a false null hypothesis

Question 3

What’s a hypothesis?

Answer 3

• A belief about a population parameter, such as the mean
• The hypothesis must be stated before the analysis
• Sample data is used to test the belief about the population

Question 4

Is a Null hypothesis assumed to be true or false?

Answer 4

It is assumed to be true

Question 5

What is one tailed testing?

Answer 5

When the hypothesis is phrased with “” in the alternative hypothesis

Question 6

What is Two tailed testing?

Answer 6

When your alternatives are phrased with =/ (is not)

Question 7

How is a significance level expressed?

Answer 7

As a percentage %

Question 8

What are two methods used to calculate critical value?

Answer 8

1. NORM.INV

2. T.INV

Question 9

What is the rejection region?

Answer 9

• the critical value determined by alpha give the cutoff levels for the rejection region

Question 10

What are the 5 steps in hypothesis testing?

Answer 10

Step 1: State H
Step 2: Select significance
Step 3: Determine Critical Values
Step 4: Calculate Test Statistic
Step 5: Compare Test Statistic

Question 11

What is Two Sample test?

Answer 11

When you have two sets of hypothesis and need to find a co-variance.

Question 12

What excel function do you use for 2 sample tests?

Answer 12

t-test: Two Sample Assuming Unequal Variances