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QUESTION 1
Where people turn to for news is different for various age groups. A study of
indicated where different age groups primarily get their news.
Column variable
Row variable
Under 36
36-50
50+
Total
Local TV
97
115
130
342
National TV
71
101
126
298
Radio
80
95
108
283
Local newspaper
50
80
103
233
105
85
71
261
403
476
538
1417
Internet
Total
(a)
H0:Thereisnorelationshipbetweentheagegroupandwherepeopleprimarilyget
theirnews.
H1:Thereisarelationshipbetweentheagegroupandwherepeopleprimarilyget
theirnews.
Exceloutput
Observed Frequencies
Column variable
Row variable
Under 36
36-50
50+
Total
Local TV
97
115
130
342
National TV
71
101
126
298
Radio
80
95
108
283
Local newspaper
50
80
103
233
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Internet
Total
105
85
403
476
71
261
538 1417
Expected Frequencies
Column variable
Row variable
Under 36
36-50
50+
Total
342
298
283
233
261
Total
403
476
538 1417
Data
Level of Significance
0.05
Number of Rows
Number of Columns
Degrees of Freedom
Results
Critical Value
15.50731
30.92932
p-Value
0.000145
2
Decisionrule:If STAT
>15.5073,rejectH0.
2
Teststatistic: STAT
=30.9293
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TUTORIALWEEK72012_2013
2
=30.9293isgreaterthanthecriticalboundof15.5073,rejectH0.
Decision:Since STAT
Thereisevidenceofasignificantrelationshipbetweentheagegroupandwherepeople
primarilygettheirnews.The50+grouphasalowerthanexpectedfrequencyofgetting
theirnewsthroughtheInternetwhiletheunder36grouphasahigherthanexpected
frequencyofgettingtheirnewsthroughtheInternet.
QUESTION 2
Where people turn to for news is different for various age groups. Suppose that a
study conducted on this issue and it was based on 200 respondents who were
between the ages of 36 and 50 and 200 respondents who were above 50. The
results are represented in the following table with the specific breakdown of the
responses.
Source of News
Newspapers
Other
Total
Age
36-50
82
118
200
Above 50
104
96
200
Total
186
214
400
Solution: In this problem we have a 2x2 contingency table. Firstly we define the null and
alternative hypothesis.
a)
H 0 : 1 2 . (Proportion of 36-50 years old and the proportion of the group above
50, who get the news primarily for the newspaper is equal)
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TUTORIALWEEK72012_2013
( fo fe )2
Test Statictic
fe
all cells
X1 X 2 X
82 104
0.465 and
n1 n2
n 200 200
X1 X 2 X
118 96
0.535
n1 n2
n 200 200
Age
36-50
200(0.46
5)=93
200(0.53
5)=107
200
Above 50
200(0.465)=93
Total
186
200(0.537)=93
214
200
400
4.863
fe
93
93
107
107
all cells
The value for the chi square distribution for 1degrees of freedom at the 5% level of
significance is
2
0.05
3.841 .
Comparing the critical value with the value of the chi square test statistic we can see that
3.841 4.863 . Hence it follows that we will not accept the H 0 hypothesis. At the 5% level of
significance, the two proportions are not the same and there is a significant difference of the
proportion who get their news primarily from the newspaper between the ages 36 to 50 years
old and those above 50 years old.
b)
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TUTORIALWEEK72012_2013
Results
Critical Value
3.8415
Chi-Square Test Statistic
4.8638
p-Value
0.0274
Reject the null hypothesis
Based on the
excel output we can see
that the p-values is 0.024. If we compare it with the significance level is smaller
0.024<0.05 hence we will reject the H 0
hypothesis mentioned in a).
QUESTION 3
More shoppers do their majority of their grocery shopping on Saturday than any
other day of the week. To check this statement 600 shoppers were interviewed, 200
from each age group: under 35, between 35-54 and over 54. The results are
represented in the following table
Observed Frequencies
Row variable
Saturday
A Day other than Saturday
Total
Column variable
Under 35
35-54
48
56
152
144
200
200
Over 54
24
176
200
Total
128
472
600
Is there evidence of a significant difference among the age groups with respect to
the majority shopping day? Use the 5% level of significance.
Solution: In this problem we have a 3x2 contingency table. Firstly we define the null and
alternative hypothesis.
a)
H 0 : 1 2 3 .
In this type of problems we will use the chi square test statistic.
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TUTORIALWEEK72012_2013
( fo fe )2
Test Statictic
fe
all cells
X1 X 2 X 3
48 56 24
0.213 and
200 200 200
n1 n2 n3
X1 X 2 X 3
152 144 176
0.786
200 200 200
n1 n 2 n3
Column variable
Under 35
35-54
Over 54
200(0.213)=
42.67
200(0.786)=
157.33
200
200(0.213)=
42.67
200(0.786)=
157.33
200
200(0.213)=
42.67
200(0.786)=
157.33
200
Total
128
472
600
( f o f e ) 2 (48 - 42.6) 2
(56 42.67) 2 (24 - 42.67) 2 (152 - 157.33) 2
fe
42.67
42.67
42.67
157.33
all cells
(144 - 157.33) 2 (176 - 157.33) 2
16.521
157.33
157.33
The value for the chi square distribution for 2 degrees of freedom at the 5% level of
significance is
2
0.05
5.991 .
Hence 2 0,05 5.991 and we reject the H 0 . There is enough evidence to conclude that there
is a difference between the age group and the day that they do their shopping.
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QUESTION 4
A sample of 500 shoppers was selected in a large metropolitan in order to determine
various informations concerning consumer behaviour. Among the questions asked
was Do you enjoy shopping for clothing? The results are summarized in the
following contingency table:
ObservedFrequencies
EnjoyShopping
Gender
Male
Female
Total
Yes
126
234
360
No
104
36
140
Total
230
270
500
Solution
Exceloutput:
ObservedFrequencies
EnjoyShopping
Gender
Male
Female
Total
Yes
126
234
360
No
104
36
140
Total
230
270
500
ExpectedFrequencies
EnjoyShopping
Gender
Male
Female
Total
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Yes
165.6
194.4
360
No
64.4
75.6
140
Total
230
270
500
LevelofSignificance
0.01
NumberofRows
NumberofColumns
DegreesofFreedom
Results
CriticalValue
6.634897
ChiSquareTestStatistic
62.6294
pValue
2.5E15
Rejectthenullhypothesis
H0: 1 2
2
>6.635,rejectH0.
Decisionrule:df=1.If STAT
2
=62.6294
Teststatistic: STAT
H1: 1 2
wherepopulation:1=males,2=females
2
Decision:Since STAT
=62.6294isgreaterthantheuppercriticalboundof6.6349,
rejectH0.Thereisenoughevidencetoconcludethatthereissignificantdifference
betweentheproportionsofmalesandfemaleswhoenjoyshoppingforclothingatthe
0.01levelofsignificance.
(b)
pvalue=virtuallyzero.Theprobabilityofobtainingateststatisticof62.6294or
largerwhenthenullhypothesisistrueisvirtuallyzero.
(c)
(a)
H0: 1 2
2
=0.9881islessthantheuppercriticalboundof
Decision:Since STAT
H1: 1 2
wherePopulations:1=males,2=females
6.635,donotrejectH0.Thereisnotenoughevidencetoconcludethatthe
proportionofmalesandfemaleswhoenjoyshoppingforclothingare
different.
(b)
pvalue=0.3202.Theprobabilityofobtainingateststatisticof0.9881or
largerwhenthenullhypothesisistrueis0.3202.
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QUESTION 5
A survey was conducted in five countries. The percentage of respondents said that
they eat out once a week or more are as follows:
GERMANY
10%
FRANCE
12%
UNITED KINDOM
28%
GREECE
39%
US
57%
Suppose that the survey was based on 1000 respondents in each country
a) At the 5% level of significance determine whether there is a significance
difference in the proportion of people who eat out at least once in a week in
the various countries.
b) Find the p-value in (a) and interpret its meaning.
Solution:
EXCEL output:
Observed Frequencies
Column variable
Row variable
Germany
France
UK
Greece
US
Total
Yes
100
120
280
390
570
1460
No
900
880
720
610
430
3540
Total
1000
1000
1000
1000
1000
5000
US
Total
Expected Frequencies
Column variable
Row variable
Germany
France
UK
Greece
Yes
292
292
292
292
292
1460
No
708
708
708
708
708
3540
Total
1000
1000
1000
1000
1000
5000
Data
Level of Significance
0.05
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Number of Rows
Number of Columns
Degrees of Freedom
Results
Critical Value
9.487728
Chi-Square Test
Statistic
742.3961
p-Value
2.3E-159
(a)
H 0 : 1 2 3 4 5
2
STAT
( f0 fe )2
= 742.3961
fe
All Cells
Decision: Since the calculated test statistic 742.3961 is greater than the critical value of
9.4877, you reject H 0 and conclude that there is a difference in the proportion of people
who eat out at least once a week in the various countries.
(b)
p-value is virtually zero. The probability of obtaining a data set which gives rise to a test
statistic of 742.3961 or more is virtually zero if there is no difference in the proportion of
people who eat out at least once a week in the various countries.
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