Quiz: More Hypothesis Testing Practice

More Hypothesis Testing Practice

Using the following questions, you will build your intuition for common hypothesis test techniques, and what you are really testing when setting up your hypotheses.

SOLUTION:

population parameters

Which of the below represents how you would set up a hypothesis test to test if the average return of portfolio 1 $\mu_1$ is greater than the average return of portfolio 2 $\mu_2$ ?

a. $H_0: \mu_1 > \mu_2$ $H_1: \mu_1 \leq \mu_2$

b. $H_0: \mu_1 = \mu_2$ $H_1: \mu_1 \leq \mu_2$

c. $H_0: \mu_1 \leq \mu_2$ $H_1: \mu_1 > \mu_2$

d. $H_0: \mu_1 = \mu_2$ $H_1: \mu_1 \neq \mu_2$

e. None of the above

SOLUTION:

c

Which of the below represents how you would set up a hypothesis test to test if the average length of Chinook fish $\mu_1$ is different than the average length of Coho fish $\mu_2$ ?

a. $H_0: \mu_1 > \mu_2$ $H_1: \mu_1 \leq \mu_2$

b. $H_0: \mu_1 = \mu_2$ $H_1: \mu_1 \leq \mu_2$

c. $H_0: \mu_1 \leq \mu_2$ $H_1: \mu_1 > \mu_2$

d. $H_0: \mu_1 = \mu_2$ $H_1: \mu_1 \neq \mu_2$

e. None of the above

SOLUTION:

d

Given what you know about hypothesis testing and the notation used so far in the statistics content, which of the below values would not be tested in a hypothesis?

a. $\pi_1 - \pi_2$

b. $\mu_1$

c. $\pi_1 + \pi_2/\pi_3$

d. $\bar{x}_1$

e. $\sigma_1/\sigma_2$

SOLUTION:

d