35. When $H_0$ is true in a given test with significance level 0.05, what is the most range for the p-value?
(A) Equals to 0.05.
(B) Greater than or equal to 0.95.
(C) Greater than or equal to 0.05.
(D) Less than 0.05.
(E) Less than 0.95.

36. Which of the following statement is correct? (A) A \( 95\% \) confidence interval for \( \mu = \) population mean IQ is (96, 110). So, in the test of \( H_0: \mu = 100 \) versus \( H_a: \mu \neq 100 \), the p-value is greater than 0.05. (B) For a fixed significance level \( \alpha \), the probability of a Type II error increases when the same size increases. (C) If we reject \( H_0: \mu = 0 \) in a study about change in weight on a new diet using a significance level of \( \alpha = 0.05 \), then we also reject it using \( \alpha = 0.01 \). (D) P[Type II error]=1-P[Type I error] (E) The \( p \) value is the probability that \( H_0 \) is true.

37. An industrial plant claims to discharge no more than 1000 gallons of wastewater per hour, on the average, into a neighboring lake. An environmental action group took some random samples from the lake over a period of time to analyze the true mean discharge of wastewater per hour exceeded the company claim of 1000 gallons. Consider a one-sided hypotheses and use a significance level of $\alpha = 0.05$. What of the following statement is correct? (A) If the plant is not exceeding the limit, but actually \( \mu = 1000 \), there is only \( 5\% \) chance that we will conclude they are exceeding the limit. (B) If the plant is exceeding the limit, there is only a \( 5\% \) chance that we will conclude that they are not exceeding the limit. (C) If we reject \( H_0 \), the probability that it is actually true is 0.05. (D) The probability that the sample mean equals exactly the observed value would equal 0.05 if \( H_0 \) were true. (E) All of the above.

38. Suppose that a 99% confidence interval for the difference $p_1 - p_2$ between the proportions of men and women in Taiwan who are alcoholics equals (0.02, 0.09). (A) We are \( 99\% \) confident that the proportion of alcoholics is between 0.02 and 0.09. (B) We are \( 99\% \) confident that the proportion of men in Taiwan who are alcoholics is between 0.02 and 0.09 larger than the proportion of women in Taiwan who are. (C) We can conclude that the population proportions may be equal. (D) We are \( 99\% \) confident that a minority of Taiwan residents are alcoholics. (E) Since the confidence interval does not contain 0, it is impossible that \( p_1 = p_2 \)

39. Which of the following statement is when the one-way ANOVA provides relatively more evidence that $H_0: \mu_1 = \mu_2 = \cdots = \mu_g$ is rejected? (A) The smaller the between-groups variation. (B) The smaller the within-groups variation. (C) The larger the between-groups variation. (D) The larger the within-group variation. (E) None of the above.

40. Which of the following statement about coefficient of determination $R^2$ is incorrect? (A) As the number of explanatory variables increases, \( R^2 \) may increase. (B) It provides the percentage of explained variance in the response variable using the regression model. (C) Its value must fall in 0 and 1. (D) The correlation of coefficient must equal to \( R^2 \). (E) When \( R^2 = 1 \), the response variable has an exact linear relationship with the explanatory variable in the simple regression model.

1. Refer to Table 1. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $50,000 into his account at the bank. If the bank takes no other action it will (A) have $65,000 in excess reserves. (B) have $55,000 in excess reserves. (C) need to raise an additional $5,000 of reserves to meet the reserve requirement ratio (D) None of the above is correct.

2. Refer to Table 1. If the bank is holding $4,000 in excess reserves, then the reserve requirement with which it must comply is (A) 4 percent. (B) 6 percent. (C) 12 percent. (D) 14 percent.

3. An MP3 player in Singapore costs 200 Singaporean dollars. In the U.S. it costs 100 US dollars. Which of the following is correct? (A) if the nominal exchange rate is 2.0 Singaporean dollars per U.S. dollar, purchasing power parity holds. (B) if the nominal exchange rate is 1 Singaporean dollar per U.S. dollar, purchasing power parity holds. (C) if the nominal exchange rate is .50 Singaporean dollar per U.S. dollar, purchasing power parity holds. (D) purchasing power parity does not hold at any of the above exchange rates.

4. If the reserve ratio is 20 percent, then $100 of new reserves can generate (A) $60 of new money in the economy. (B) $250 of new money in the economy. (C) $500 of new money in the economy. (D) $2,000 of new money in the economy.

5. Other things the same, automatic stabilizers tend to (A) raise expenditures during expansions and recessions. (B) lower expenditures during expansions and recessions. (C) raise expenditures during recessions and lower expenditures during expansions. (D) raise expenditures during expansions and lower expenditures during recessions.

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