Question 1

Histogram of 2000 returns with 8 classes Bin 5 7 9 11 13 15 17 19 Frequency 3 4 8 18 13 16 2 1 2000 Statistics Mean Median Range Standard Deviation 10.9 10.8 14.3 2.9 Histogram of 2001 returns with 8 classes Bin 5 5.75 6.5 7.25 8 8.75 9.5 10.25 Frequency 5 5 6 10 12 12 9 6 2001 Statistics Mean Median Range Standard Deviation 7.5 7.5 6.2 1.6

A comparison of the data reveals that both median and mean percentage returns were higher for 2000. Therefore, 2000 was the better investment.

Question 2
t-Estimate: Mean Mean Standard Deviation LCL UCL Orders($) 107 23.58971 104.6645 109.3355

a)The average order to 95% confidence is meanta/2,n-1*(/sqrt(n)) a/2=0.025 107 2.3355 LCL = 104.6645 UCL = 109.3355 b) Therefore, since the LCL is greater than 100 with a 95% confidence level (a=0.05), the average order to a 95% confidence level will exceed 100$.

Question 3
t-Test: Two-Sample Assuming Equal Variances
Reaction time on phone Reaction time not on phone

Mean 0.646936937 0.600626016 Variance 0.001893605 0.0025144 Observations 111 123 Pooled Variance 0.002220058 Hypothesized Mean Difference 0 Df 232 t Stat 7.507708698 P(T<=t) one-tail 6.42659E-13 t Critical one-tail 1.651448062 P(T<=t) two-tail 1.28532E-12 t Critical two-tail 1.970241936 Null Hypothesis: H0 1- 2 <= 0; Alternate Hypothesis: H0 1- 2 > 0 where 1 = mean of reaction time on phone and 2= mean of reaction time not on phone. The test is two-tailed The test statistic is 7.50 A=1-0.95 = 0.05

T.N = 112+124-2 = 234 Sub into t(A/2,T.N) T0.025,234=1.970 Discard H0 if the T statistic is equal to or greater than than T 0.025,234 Discard H0 if the T statistic >1.97 The T statistic is greater than 1.97, therefore we may discard the null hypothesis. Therefore, the alternate hypothesis is true and we may conclude that the reaction times are slower for drivers using mobile phones.

Question 4
t-Test: Paired Two Sample for Means Last Year ($) This Year ($) 14977.91789 15529.17046 22166700.97 23013456.86 199 199 0.978461208 0 198 7.851757353 1.26746E-13 1.652585784 2.53492E-13 1.972017478

Mean Variance Observations Pearson Correlation Hypothesized Mean Difference df

t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail Null hypothesis: d<=0 Alternative hypothesis: d>0 d=1-2 The test is one-tailed. Where 1 is the average investment for this year, and 2 is the average investment for last year. The test statistic is 7.8 T.N = 200 2 = 198 a = 1-0.95 = 0.5 Sub into t(a, T.N)

Discard H0 if the absolute value of the T statistic is equal to or greater than than T 0.05,198 Discard H0 if the absolute value of the T statistic >1.62 (2 dp) The T statistic is 7.85 (2 dp), which is greater than 1.62 (2 dp). Therefore we may discard the null hypothesis. Therefore, the alternate hypothesis is true and we may conclude that the average investment for this year was less than that of last year