STAT 30100: Elementary Statistical Methods I

Department of Mathematical Sciences

School of Science, IUPUI

Project # 4
Spring 2015, Total 20 points

Due Date: 4/27-5/1 (Week #15)

Important Instructions:
Provide complete and clear explanations to all questions. Graphs must be labeled for clear communication.
(Remember the importance of context throughout!) Your project must be typed, easy to read and have the
answer to each question identified by question number. Copy and paste the specified StatCrunch output, including
graphs and number summaries, into the specified table. The indicated StatCrunch output MUST appear with the
discussion, not as separate pages. Also, consider three decimals for your calculation throughout the project.

Problem # 1
In a number of previous Phase I and II studies of male, non-insulin-dependent diabetic (NIDDM)
patients conducted by Mylitech Biosystems, Inc., the mean body mass index (BMI) was found to be
28.4. An investigator has 20 male NIDDM patients enrolled in a new study and wants to know if the
BMI from this sample is consistent with previous findings. BMI is computed as the ratio of weight in
kilograms to the square of the height in meters. The Excel data file BMI.xlsx shows the BMI for 20
males. Conduct a hypothesis test at 1% level of significance to answer the question.
Consider the following steps for your hypotheses test.

[2 pts.]

(i)

Formulate the hypotheses. (Level the parameter, null hypothesis, alternative hypothesis)

(ii)

Test statistic. (Name of the test you are going to use and verify all required conditions for your test
using the data; using StatCrunch, produce a boxplot to verify the normality condition)
[2 pts.]

(iii)

Calculation of your proposed test statistic and p-value. (Both StatCrunch output and manual
calculation must be reported; note that answer should be the same in both cases)
[4 pts.]
Statcrunch output:
(Load the data file on StatCrunch and then go to STAT T statistics one sample with data
Modify other boxes according to the question)

Manual calculation:

(iv)

Decision and conclusion in the context.

[2 pts.]

Problem # 2
A company reports that 65% of its employees participate in the companys stock purchase plan. A random
sample of 70 employees was asked the question, Do you participate in the stock purchase plan? The answers
are shown below.
yes
no
no
yes
no
no
yes
yes
no
yes
no
no
yes
yes
yes
no
yes
no
no
yes
yes
yes
no
yes
yes
no
yes
yes
no
yes
yes
yes
yes
yes
no
no
yes
yes
yes
yes
yes
yes
no
yes
no
yes
yes
no
yes
yes
yes
yes
no
yes
no
yes
yes
no
yes
yes
no
no
yes
yes
yes
no
yes
no
no
yes
Perform the appropriate test of hypothesis to investigate your suspicion that fewer than 65% of the companys
employees participate in the plan. Use = .05. [ Note that # yes = 44, # no =26, and total, n=70]
Consider the following steps for your hypotheses test.

[2 pts.]

(i)

Formulate the hypotheses. (Level the parameter, null hypothesis, alternative hypothesis)

(ii)

Test statistic. (Name of the test you are going to use and verify all required conditions for your test
using the data)
[2 pts.]

(iii)

Calculation of your proposed test statistic and p-value. (Both StatCrunch output and manual
calculation must be reported; note that answer should be the same in both cases)
[4 pts.]
Statcrunch output:
[Go to StatCrunch and then click on STAT Proportion statistics one sample with Summary
Enter # of successes
44
# of Observations
70
Change H0 : p=.65
Click on Compute! ]

Manual calculation:

(iv)

Decision and conclusion in the context.

[2 pts.]