Question

A new drug to treat high cholesterol is being tested by pharmaceutical company. The cholesterol levels for 21 patients were recorded before administering the drug and after. The 90% confidence interval for the true mean difference in total cholesterol levels (after - before) was (14.93, 45.35). Which of the following is the appropriate conclusion?

	1) We are 90% confident that the average difference in cholesterol levels is positive, with the higher cholesterol levels being after the drug regimen.
	2) We are 90% confident that the average difference in cholesterol levels is positive, with the higher cholesterol levels being before the drug regimen.
	3) We are 90% confident that the average difference in cholesterol levels is negative, with the higher cholesterol levels being before the drug regimen.
	4) There is not a significant difference in average cholesterol levels before and after the drug.
	5) We are 90% confident that the average difference in cholesterol levels is negative, with the higher cholesterol levels being after the drug regimen.

Consumers Energy states that the average electric bill across the state is $40.493. You want to test the claim that the average bill amount is actually greater than $40.493. The hypotheses for this situation are as follows: Null Hypothesis: ? ? 40.493, Alternative Hypothesis: ? > 40.493. A random sample of 28 customer's bills shows an average cost of $39.947 with a standard deviation of $5.1571. What is the test statistic and p-value for this test?

	1) Test Statistic: -0.56, P-Value: 1.42
	2) Test Statistic: 0.56, P-Value: 0.71
	3) Test Statistic: 0.56, P-Value: 0.29
	4) Test Statistic: -0.56, P-Value: 0.71
	5) Test Statistic: -0.56, P-Value: 0.29

Suppose the national average dollar amount for an automobile insurance claim is $921.53. You work for an agency in Michigan and you are interested in whether or not the state average is different from the national average. The hypotheses for this scenario are as follows: Null Hypothesis: ? = 921.53, Alternative Hypothesis: ? ? 921.53. You take a random sample of claims and calculate a p-value of 0.0311 based on the data, what is the appropriate conclusion? Conclude at the 5% level of significance.

Question 10 options:

	1) The true average claim amount is significantly different from $921.53.
	2) We did not find enough evidence to say a significant difference exists between the true average claim amount and $921.53.
	3) The true average claim amount is significantly higher than $921.53.
	4) The true average claim amount is equal to $921.53.
	5) The true average claim amount is significantly less than $921.53.

Answer 1