Referencing Styles : APA 1. For the past year, Bob spent about $4 a day for lunch, give or take a quarter. (8.2-6) a. Draw a rough sketch of this distribution of daily expenditures. b. If, without looking at his bill, Bob paid for his lunch with a $5 bill and received $0.75 in change. Should Bob worry that he was overcharged? c. Explain the logic involved in your answer to (b). d. What would be a Type I error in (b)? e. What would be a Type II error in (b)? f. Using this example, what is meant by “rejection region” and “critical value”? g. Why might Bob want to adopt a one-tailed test in (b), and which tail should he choose? What would happen if he choose the wrong tail? 2. Define “sampling error”. (8.10) 3. What is the difference between a “distribution” and a “sampling distribution”? (8.11) 4. How would decreasing α affect the probabilities in Table 8.1? (8.12) 5. For the distribution in Figure 8.6, Howell states that the probability of a Type II error (β) is 0.64. Show how this probability is obtained. (8.14) 6. Describe the steps you would go through to test the hypothesis that people are more likely to keep watching a movie if they have already invested money to obtain the movie. (8.18)