Formulate the null and alternative hypothesis in each case:

Formulate the null and alternative hypothesis in each case:
a. Ten years ago the average American drank 2.5 cups of coffee per day. You suspect that amount has changed since then.
b. A researcher at Ohio State University speculates that the average SAT score for entering freshmen is higher than the national average of 1,650.
c. The manager of the University of Iowa bookstore suspects the average amount of money a student spends on books is less than the reported 400.

Q. 2

In order to represent a nominal variable with m categories, we must create m - 1 indicator variables.
Indicate whether the statement is true or false

Q. 3

After you set up the hypotheses and collect your data, you calculate the statistic that serves as the criterion for making your decision. This number is called the ____________________ statistic.
Fill in the blank(s) with correct word

Q. 4

When a dummy variable is included in a multiple regression model, the interpretation of the estimated slope coefficient does not make any sense anymore.
Indicate whether the statement is true or false

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Formulate the null and alternative hypothesis in each case:

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