Question 1

a) What is a null and alternative hypothesis?

b) What does the level of significance tell you?

c) How can you identify a two-tailed test?

d) Briefly explain the difference between a two-tailed and a one-tailed test.

e) Briefly explain when the z-distribution and t-distribution are used to perform a test of hypothesis.

f) There are two types of errors that can occur in hypothesis testing, identify the two types of errors.

Question 2

a) With the aid of an example, explain the difference between an independent and dependent sample.

b) What is the shape of the sampling distribution of p1 - p2 for two large samples?

c) When is the pooled standard deviation used?

d) When calculating the Pooled Standard Deviation for two samples, what does the values of n1 - 1; n2 - 1; and n1 + n2 - 2; tells us?

e) Explain how you will go about constructing a confidence interval for 1 - 2, where 1 and 2 are known, and the sample is large.

f) There are three situations in which the H1 can be written when testing a hypothesis involving two populations. List all three ways using the symbol 1 and 2.

g) Draw a two-tailed normal distribution curve with a significance level of 0.05, identify the critical values on the distribution, the rejection and non-rejection regions, and alpha on the graph.