Essay Questions:
1. Test H0: 8 versus HA: > 8, given = 0.01, n = 25,

´
X

= 8.13 and s = 0.3. Assume the

sample is selected from a normally distributed population.
2. Test H0: π = 0.25 versus HA: π 0.25 with p = 0.33 and n = 100 at alpha = 0.05 and 0.10.
3. Test at α = 0.01 the hypothesis that a majority (more than 50%) of students favor the
plus/minus grading system at a university if in a random sample of 500 students, 285 favor the
system?
Multiple Choice:
4. When carrying out a large sample test of H0: 10 vs. Ha: > 10 by using a critical value
approach, we reject H0 at level of significance when the calculated test statistic is:
A. Less than z
B. Less than – z
C. Greater than z
D. Greater than z/2
E. Less than the p value
5. If you live in California, the decision to buy earthquake insurance is an important one. A
survey revealed that only 133 of 337 randomly selected residences in one California county were
protected by earthquake insurance. Calculate the appropriate test statistic to test the hypothesis
which leads to the alternate hypothesis that less than 40% of the residents are protected by
earthquake insurance?
A. – 0.20
B. 0.40
C. -0.13
D. 0.20
E. -0.40