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ECON306 Midterm #2 - What parameters must a researcher decide upon before testin

ID: 3054816 • Letter: E

Question

ECON306 Midterm #2 - What parameters must a researcher decide upon before testing an hypothesis? a) Alpha (a), which is the probability of type I error b) Whether or not the test is directional (one-tailed) or non-directional (two-tailed). c) (Both (a) and (b).) d) The sample size N. 7) Suppose you take a sample of size N-44 from a normal population. The sample's mean is X-106 and its standard deviation is s-25. With alpha ofa-5%, what is your lower limit for the (2-tailed) confidence interval of the true population mean (rounded to one decimal point)? a) 99.3. b) 98.4 c) 98.6 d) (None of the above are true.) 8) If we are testing for differences between group means using a t-test, what is the largest number of groups you can test at one time? a) One only b) Two. c) As many as you wish 9) d) (None. This is a trick question. You must you the normal distribution and a Z-test.) 10) The shape of the t-distribution gets closer and closer to that of the normal distribution as a) The sample size N gets larger. b) The sample mean X gets closer to zero. c) The sample standard deviation "s" gets closer to I d) The sample variance s' gets closer to 1. 11) The sampling distribution of sample means will be normally distributed, as established by a) The central limit theorem. b) The law of large numbers. c) Pascal's law d) Bernoulli's theorem. 12) Whereas confidence intervals are always centered around the _i) the critical values in a two-tailed test (of HO: a) () the sample mean X; (ii) 0. b) Ho) are always centered around (ii) (i) the hypothesized mean ? ; (ii) 0. c) ( the hypothesized mean puo; (ii) the sample mean X. d) (i) the sample meanX: (ii) the hypothesized mean . 13) Suppose you are comparing two samples to test whether or not their population means are the same. All else the same, you will be more likely to reject the null hypothesis... a) The smaller are the sample standard deviations si and sz. b) The further apart are the sample means Ix1-X2 c) The larger are the two sample sizes Ni and N2 d) (All of the above are true.) Page 2 of 4

Explanation / Answer

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While starting the hypothesis test, the researcher should know the probability of Type I error and the direction of the test. So, the correct answer is (c) Both (a) and (b)