Statistics for Business: Decision Making and Analysis, 3rd Edition

True/False

Questions 11–18: H₀: μ ≤ 80, H_a: μ > 80

1. 11. False

2. 13. True

3. 15. False. The smaller the α-level, the less likely to reject H₀.

4. 17. False. When σ is estimated by s, use a t-statistic.

Questions 19–26: H₀: p ≤ 0.4, H_a: p > 0.4

1. 19. False. Not necessarily because of sampling variability.

2. 21. False. A significant result occurs if $\widehat{p}$ is large enough to show that more than 40% will use the service.

3. 23. True

4. 25. False. The p-value is the probability of incorrectly rejecting H₀ and adding a service that will not be profitable.