HYPOTHESIS TESTING

What is the first step in hypothesis testing?

• a) Compute the test statistic

• b) Set the significance level

• c) State the hypotheses

• d) Make a decision

In hypothesis testing, what is the purpose of the null hypothesis (H₀)?

• a) It states the conclusion of the test

• b) It is the claim that we want to prove

• c) It represents no effect or no difference

• d) It determines the test statistic

Why is the significance level (α) important in hypothesis testing?

• a) It helps determine the sample size

• b) It sets the threshold for rejecting H₀

• c) It ensures the alternative hypothesis is correct

• d) It directly affects the population mean

When do we reject the null hypothesis?

• a) When the test statistic is greater than the critical value

• b) When the test statistic is within the acceptance region

• c) When the p-value is greater than α

• d) When the test statistic falls in the rejection region

Why is hypothesis testing useful in real-life decision-making?

• a) It helps make conclusions based on emotions

• b) It allows decisions to be based on statistical evidence

• c) It eliminates uncertainty completely

• d) It only applies to scientific research.

Which of the following is the correct sequence of hypothesis testing?

• a) Compute test statistic → Set significance level → State hypotheses → Decision → Conclusion

• b) State hypotheses → Determine the test to be use→ Compute test statistic → Decision → Make a conclusion

• c) Set significance level → Compute test statistic → Decision → State hypotheses → Conclusion

• d) State hypotheses → Compute test statistic → Determine critical value → Conclusion

What does rejecting the null hypothesis mean?

• b) The sample size is too small

• a) There is sufficient evidence to support the alternative hypothesis

• c) The null hypothesis is always incorrect

• d) The test was inconclusive

What type of error occurs when we reject a true null hypothesis?

• a) Type I error

• b) Type II error

• c) Sampling error

• d) Statistical bias

If the significance level is 0.05, what does it mean?

• a) There is a 5% probability of rejecting a true null hypothesis

• b) The null hypothesis is true 5% of the time

• c) There is a 5% chance of accepting the alternative hypothesis

• d) The test statistic will always be greater than the critical value

10.Why is hypothesis testing important in decision-making

• a) It eliminates uncertainty in all decisions

• b) It provides a structured approach to making conclusions based on data

• c) It always confirms the researcher's beliefs

• d) It only applies to academic research