# ECON 15B Study Guide - Midterm Guide: Null Hypothesis, Test Statistic, Standard DeviationExam

by OC2657751

Department

EconomicsCourse Code

ECON 15BProfessor

Paul ShireyStudy Guide

MidtermThis

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TEST TWO

PROBABILITY AND STATISTICS, ECON 15B

JULY 6, 2018

YOU MUST SHOW ALL YOUR WORK!

1. In 1968, Doob and Gross studied perceived social status. They found that if an old, beat-up (low-status) car failed to start when a

traffic light turned green, 84% of the time the driver in the car behind them honked the horn. However, when the stopped car was an

expensive, high-status car, only 50% of the time the driver behind them honked the horn. If Type I Error was made, what was concluded

and what was true. (Say something like, “They concluded that _____________, but in reality _____________.” Fill in the blanks with

statements about the experiment, not generic statements that can apply to any experiment.)

2. Continuing with the above experiment: If Type II Error was made, what was concluded and what was true. (Say something like,

“They concluded that ________________, but in reality, we have _________________.” Fill in the blanks with statements about the

experiment, not generic statements that can apply to any experiment.)

3. As evidence against the null hypothesis being true increases, what happens to the test statistic?

4. As evidence against the null hypothesis being true increases, what happens to the p-value?

5. In the case of Joe, the slow tapper, do you think it would be better to have a large significance level or a small significance level?

You need to explain why. Your points depend on your explanation.

6. When can you use a one-tailed test (according to lecture)?

7. True or false (no need to explain): The p-value is the probability of the null hypothesis being true.

8. True or false (no need to explain): You flip a coin 100 times and get 50 heads. Is it possible that the coin is an unfair coin?

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