Question

In a set of hypotheses the smaller p value

a. the stronger the evidence is against the possibility that the observed results arose simply by chance

b. the larger the level of significance is

c. the greater the practical importance of the result is

d. the wider the 95% confidence interval will be

e. the larger the z value will be

A national interest rate on houses for 25 years is 4.3% a banker in a large northwestern city believes that the local interest rates are lower than the national rate what is the null hypothesis that this banker wishes to test

a. H0: population mean=4.3%

b. H0: population mean =/ (equals sign with dash through) 4.3%

c.H0: population mean <4.3%

d. H0: population mean >4.3%

e. H0: population mean=< (greater sign with line underneath)4.3%

Answer 1

Solution:

Q.1)

In a set of hypotheses the smaller p value

the stronger the evidence is against the possibility that the observed results arose simply by chance.

Option a is correct

Explanation:

Meaning of p value : the chance of obtaining a value of the test statistic as or more extreme than the value actually obtained if the null is true.

When p value is less than significance level , we reject the null hypothesis.

Q.2)

A national interest rate on houses for 25 years is 4.3% a banker in a large northwestern city believes that the local interest rates are lower than the national rate what is the null hypothesis that this banker wishes to test.

H0: population mean=4.3%

Option a is correct.

Explanation:

Valid signs in Null hypothesis H₀ are = , and

Valid signs in Alternative hypothesis H_A   are , < and >