1. Match each step on the left with the procedure at that step on the right.

What is the Step

To do

1. identify the parameter
2. write null and alternative hypotheses
3. calculate test statistic
4. write conclusion
5. reject or fail to reject null
6. compare p-value to alpha
7. calculate p-value
8. identify test type and relevant statistic

2. Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 70 stocks traded on the NYSE that day showed that 33 went up. You are conducting a study to see if the proportion of stocks that went up is significantly more than 0.3. You use a significance level of =0.001=0.001. What is the sample statistic, the point estimate, for this sample? (Report answers accurate to three decimal places.) p^ =

b). The p-value for this sample is 0.0009. This p-value leads to a decision to...

• reject the null
• accept the null
• fail to reject the null

c). As such, the final conclusion in context is that..

• There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3.
• There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3.
• The sample data support the claim that the proportion of stocks that went up is more than 0.3.
• There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is more than 0.3.

3. Test the claim that the proportion of people who own cats is significantly different than 30% at the 0.01 significance level. The null and alternative hypothesis would be:

H0:=0.3 H0:=0.3 H1:>0.3 H1:>0.3 H0:p=0.3 H0:p=0.3 H1:p<0.3 H1:p<0.3 H0:p=0.3 H0:p=0.3 H1:p>0.3 H1:p>0.3 H0:p=0.3 H0:p=0.3 H1:p0.3 H1:p0.3 H0:=0.3 H0:=0.3 H1:0.3 H1:0.3 H0:=0.3 H0:=0.3 H1:<0.3 H1:<0.3

4. Solve, graph, and give interval notation for the compound inequality: 3x4<10 OR 4x+13

Draw the inequality line

Interval notationfor the above graph is:

5. Solve, graph, and give interval notation for the compound inequality. If there is no solution, type DNE and leave graph blank. Note: DNE means does not exist. 2x3<7 OR 4x48

Draw the inequality line

Interval notationfor the above graph is: