OPRE 3360 PRACTICE SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉General procedure in hypothesis testing. Answer: 1. Collect a
random sample of data
2. Compute a test statistic
3. Make a decision based on a rejection region
◉Test statistic. Answer: a value computed from a sample that has a
KNOWN distribution
◉When population standard deviation known. Answer: The equality
part of the hypotheses ALWAYS appears in the null hypothesis
◉Hypothesis testing errors. Answer: Because hypothesis test are
based on sample data, we must allow for the possibility of errors
◉Type 1 error. Answer: rejecting Ho when it is ture
◉Type 2 error. Answer: failing to reject Ho when it is false
- it is difficult to control for the probability of making a type 2 error
, ◉The probability of making a type 1 error when the null hypothesis
is true as equality is called. Answer: the level of significance (alpha)
◉The critical value method. Answer: use the level of significance
(alpha) to determine the critical value and the rejection rule
◉The p-value method. Answer: Probability of getting a test statistic
even more in favor of alternative (Ha)
= that measure the lack of support provided by the sample for the
null hypothesis
◉Regression - managerial decision often are. Answer: based on the
relationship between two or more variables
◉Regression analysis. Answer: can be used to develop an equation
showing how the variables are related
◉Regression - The variable being predicted is called. Answer: the
dependent variable
y
◉Regression - The variables being used to predict the value of the
dependent variable are called. Answer: the independent variables
x
QUESTIONS WITH SOLUTIONS GRADED A+
◉General procedure in hypothesis testing. Answer: 1. Collect a
random sample of data
2. Compute a test statistic
3. Make a decision based on a rejection region
◉Test statistic. Answer: a value computed from a sample that has a
KNOWN distribution
◉When population standard deviation known. Answer: The equality
part of the hypotheses ALWAYS appears in the null hypothesis
◉Hypothesis testing errors. Answer: Because hypothesis test are
based on sample data, we must allow for the possibility of errors
◉Type 1 error. Answer: rejecting Ho when it is ture
◉Type 2 error. Answer: failing to reject Ho when it is false
- it is difficult to control for the probability of making a type 2 error
, ◉The probability of making a type 1 error when the null hypothesis
is true as equality is called. Answer: the level of significance (alpha)
◉The critical value method. Answer: use the level of significance
(alpha) to determine the critical value and the rejection rule
◉The p-value method. Answer: Probability of getting a test statistic
even more in favor of alternative (Ha)
= that measure the lack of support provided by the sample for the
null hypothesis
◉Regression - managerial decision often are. Answer: based on the
relationship between two or more variables
◉Regression analysis. Answer: can be used to develop an equation
showing how the variables are related
◉Regression - The variable being predicted is called. Answer: the
dependent variable
y
◉Regression - The variables being used to predict the value of the
dependent variable are called. Answer: the independent variables
x
