ECN 221 Exam 3 Questions And Answers.docx

ECN 221: Exam 3 Questions And Answers
null hypothesis (H0) -
correct answer ✅-represents the status quo.
-is believed to be true unless there is overwhelming evidence to the
contrary.


alternative hypothesis (H1) -
correct answer ✅-represents the opposite of the null hypothesis
(research hypothesis)
-Is believed to be true if the null hypothesis is found to be false


Type I error -
correct answer ✅-occurs when the null hypothesis is rejected
when it is true
- known as the producer's risk


Type II error -
correct answer ✅-occurs when we fail to reject the null hypothesis
when it is not true
- known as the consumer's risk


two-tail hypothesis test -
correct answer ✅used whenever the alternative hypothesis is
expressed as μ≠ μ0

, ECN 221: Exam 3 Questions And Answers

one-tail hypothesis test -
correct answer ✅used when the alternative hypothesis is stated as
< or >


critical z-score -
correct answer ✅identifies the rejection region


critical sample mean -
correct answer ✅marks the boundary of the rejection region


p-value -
correct answer ✅the probability of observing a sample mean at
least as extreme as the one selected for the hypothesis test,
assuming the null hypothesis is true


T-score is used with: -
correct answer ✅sample standard deviation


Z-score is used with: -
correct answer ✅population standard deviation