Scribd Logo
Upload

Welcome to Scribd!

  • 14 views

    Chapter 9 Tutorial

    Uploaded by

    ngcamusiphesihle12
    The document presents statistical information about braking distances of different tire types, stock price variances, employee performance ratings for stayers and leavers, and sales results from two training methods. It includes sample sizes, means, standard deviations, and hypotheses tests at the 5%, 10%, and 90% significance levels. Questions 1-10 that follow assess understanding of hypotheses testing, confidence intervals, and conclusions that can be drawn from the statistical analyses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Chapter 9 Tutorial

    Uploaded by

    ngcamusiphesihle12
    14 views4 pages
    The document presents statistical information about braking distances of different tire types, stock price variances, employee performance ratings for stayers and leavers, and sales results from two training methods. It includes sample sizes, means, standard deviations, and hypotheses tests at the 5%, 10%, and 90% significance levels. Questions 1-10 that follow assess understanding of hypotheses testing, confidence intervals, and conclusions that can be drawn from the statistical analyses.

    Original Description:

    Tutorial

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document presents statistical information about braking distances of different tire types, stock price variances, employee performance ratings for stayers and leavers, and sales results from two training methods. It includes sample sizes, means, standard deviations, and hypotheses tests at the 5%, 10%, and 90% significance levels. Questions 1-10 that follow assess understanding of hypotheses testing, confidence intervals, and conclusions that can be drawn from the statistical analyses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views4 pages

    Chapter 9 Tutorial

    Uploaded by

    ngcamusiphesihle12
    The document presents statistical information about braking distances of different tire types, stock price variances, employee performance ratings for stayers and leavers, and sales results from two training methods. It includes sample sizes, means, standard deviations, and hypotheses tests at the 5%, 10%, and 90% significance levels. Questions 1-10 that follow assess understanding of hypotheses testing, confidence intervals, and conclusions that can be drawn from the statistical analyses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Questions 1

    A safety engineer is investigating the braking distances (in feet) of 2 types of tyres. A sample
    of 50 tyres is randomly selected for each type of tyre and the braking distance is recorded.
    The results are given in the table below.

    Type 1 n1 = 50 x̄ 1 = 42 s1 = 4.7
    Type 2 n2 = 50 x̄ 2 = 45 s2 = 4.3

    The 99% confidence interval for the mean difference in braking time for the two types of
    tyres is
    a) ( –5.32 ; –0.68 )
    b) ( –4.09 ; –1.91 )
    c) ( –0.68 ; –5.32 )
    d) ( –4.77 ; –1.23 )
    e) ( –1.91 ; –4.09 )

    Questions 2, 3 and 4 are based on the following information:


    When putting together an investment portfolio, the variability of the stock prices needs to be
    taken into account. The larger the variability, the greater the potential payoff, but also the greater
    the potential loss. Cautious investors should buy stock that has small variances in price.
    You are a cautious investor and have the option to add either Stock 1 or Stock 2 to your portfolio.
    You randomly select 40 days from the last year and check the stock price change (cents) for each
    of the stocks. The information you gather is shown in the table below.

    Sample size Mean Standard deviation


    Stock 1 40 243 45
    Stock 2 40 264 52

    You want to buy Stock 1 but will only do so if it has a smaller variance than Stock 2. To decide
    which stock to buy, you do a hypothesis test using a 5% level of significance

    Question 2
    What is the value of the test statistic that you use?
    a) 1.156
    b) 0.865
    c) 0.538
    d) 1.335
    e) 0.749

    Question 3
    Suppose you reject H0. Then, there is enough evidence to conclude that
    a) the variance of the price of Stock 1 is greater than that of Stock 2 so you should invest in
    Stock 1.
    b) the variance of the price of Stock 2 is greater than that of Stock 1 so you should invest in
    Stock 1.
    c) the variance of the price could be the same for Stock 1 and Stock 2 so you should invest in
    both stocks.
    d) although the variance of the price of Stock 1 is smaller than that of Stock 2, it has a
    smaller average price so you must invest is Stock 2.
    e) you need a professional advisor to help you decide which stock to choose.

    Question 4
    You decide to test if Stock 1 has a lower average price than Stock 2. You assume that the
    variances of the stocks are equal and use a 10% level of significance. The test statistic you
    calculate is –1.93. What is the rejection region and what decision will you make?
    Reject H0 if the test statistic is
    a) greater than –1.645. So do not reject H0.
    b) less than –1.282. So reject H0.
    c) greater than –1.645 or less than 1.645. So do not reject H0.
    d) greater than 1.282. So reject H0.
    e) less than 1.282. So reject H0.

    Questions 5, 6 and 7 are based on the following information:


    As part of a study, the work performance ratings for people who stay in their organisation
    (“stayers”) were compared to the ratings of people who voluntarily quit their jobs (“leavers”).
    The ratings were done on a 20-point scale. The table below gives some of the information
    gathered.

    Stayers n1=175 x=12.8 s1=3.72


    Leavers n1=140 x=14.7 s2=4.0

    You are surprized to see that the average performance rating for the leavers is higher than that
    of the stayers. You do a hypothesis test, using a 5% level of significance, to see if this could
    generally be true. Based on similar previous surveys you assume that σ 1=3.7 and σ 2=4.5

    Question 5
    What will be the rejection rule for your test?
    Do not reject H0 if the test statistic is
    a) greater than –4.02
    b) greater than 1.645
    c) between –1.96 and 1.96
    d) smaller than –1.645
    e) smaller than –4.02

    Question 6
    Suppose you reject the null hypothesis. There is sufficient evidence to conclude that
    a) 5% of the time the sample performance ratings are the same.
    b) the average performance rating for leavers is higher than that of stayers.
    c) leavers always perform better than stayers.
    d) 95% of leavers perform better than stayers.
    e) the average leaver works harder than the average stayer.

    Question 7
    You estimate the difference between the average performance ratings using a 96% confidence
    interval. The interval you construct is
    a) ( –2.87 ; –0.93 )
    b) ( –2.89 ; –0.91 )
    c) ( –2.37 ; –1.43 )
    d) ( –2.73 ; –1.07 )
    e) None of the above.

    Questions 8, 9 and 10 based on the following information:


    You wish to compare the effectiveness of two different methods of training salespeople in
    your company. You randomly select 100 salespeople and train half using Method 1 and the
    other half with Method 2. At the end of the training, you measure the sales for each person
    (for the following month).The table below shows some of the information gathered.

    Method 1 x 1=R 15 000 s1=R 2250

    Method 2 x 2=R 13 900 s2=R 2510

    It appears that the average sales for salespeople who were trained using Method 1 are higher
    than that of salespeople trained using Method 2. You do a hypothesis test to see if this could
    generally be the case. You use a 5% level of significance.

    Question 8
    Which of the following pairs of hypotheses do you use?
    a) H 0 : μ1−μ2=0 vs H 1 : μ1−μ2 <0
    b) H 0 : μ1−μ2 >0 vs H 1 : μ 1−μ2 <0
    c) H 0 : μ1−μ2 <0 vs H 1 : μ 1−μ2=0
    d) H 0 : μ1−μ2=0 vs H 1 : μ1−μ2 ≠ 0
    e) H 0 : μ1−μ2=0 vs H 1 : μ1−μ2 >0

    Question 9
    The value of the test statistic that you use is
    a) 159.44
    b) 2.31
    c) 3.26
    d) 1.645
    e) 112.74

    Question 10
    A 90% confidence interval for the difference between the average weekly sales of the two
    different groups of salespeople is
    ( 315.81 ; 1884.19 ).
    From this we can say, with 90% confidence, that
    a) The average weekly sales for people trained using Method 1 is greater than that of
    people trained using Method 2 by an amount of R315.81 to R1884.19
    b) 90% of the people trained using Method 1 had weekly sales of between R315.81 and
    R1884.19 more than people trained using Method 2.
    c) The average weekly sales for people trained using Method 2 is greater than that of
    people trained using Method 1 by an amount of R315.81 to R1884.19.
    d) The weekly sales for people trained with Method 1 are R1884.19 and the weekly sales
    for people trained with Method 2 is R315.81.
    e) The average Method 1 trained salesperson sells between R315.81 and R1884.19 more
    than the average Method 2 trained salesperson.

    You might also like