Quantitative methods for Business Homework Chapter 12 Fall 2018

Problem I

It is believed that sales of books at a local bookstore follow a Poisson distribution. Below you are given information on
the number of books sold during a sample of 15-minute intervals.

Number of Books Frequency

0 2
1 3
2 12
3 16
4 19
5 20
6 18
7 16
8 9
9 5
120

a. What is the average number of books sold during a 15-minute period?

b. Using the Poisson distribution, find the probability associated with the number of books sold.
c. Generate the expected number of books sold using a Poisson probability table.
d. State the null and alternative hypotheses.
e. Calculate the test statistic.
f. The hypothesis is to be tested at the 5% level. What is the critical value from the table for the test?
g. What is your conclusion?

1
answer

Number of Frequency Xf Proba ef efad X²

Books (x)
0 2 0 0.007447 0.89359
0 or1 1 3 3 0.036488 4.378591 5.272181 0.014052
2 12 24 0.089396 10.72755 10.72755 0.150932
3 16 48 0.146014 17.52166 17.52166 0.132148
4 19 76 0.178867 21.46403 21.46403 0.282867
5 20 100 0.17529 21.03475 21.03475 0.050902
6 18 108 0.143153 17.17838 17.17838 0.039297
7 16 112 0.100207 12.02487 12.02487 1.314083
8 9 72 0.061377 7.365231 7.365231 0.362849
9 5 45 0.033416 4.009959 4.009959 0.244437
120 588 2.591567

Average= 4.9

H0: sales of books at a local bookstore follow a

Poisson distribution
Ha: sales of books at a local bookstore do not follow a
Poisson distribution
X²ob = 2.59
X²0.025, df 8= 17.535
17.535
X²L = 2.18
We FRH means the sales of the book follow
Poisson distribution

Problem II

2
 A professor believes that the final examination scores in statistics are normally distributed. A sample of
40 final scores has been taken. You are given the sample below.

56 63 65 68 72 72 73 75 77 78
78 79 80 80 80 80 80 80 81 81
82 84 84 86 86 87 88 90 90 92
92 93 93 94 95 96 97 98 100 100

a. State the null and alternative hypotheses.

b. Determine the frequency distribution considering five class groupings determined by the grade ranges from
50-60, 60-70, 70-80, 80-90, 90-100
c. Compute the test statistic for the goodness of fit test.
d. The hypothesis is to be tested at the 1% level. What is the critical value from the table for the test?
e. What do you conclude about the distribution of final examination scores?

Answer

a. H0: the final examination scores in statistics are normally distributed

Ha: the final examination scores in statistics are not normally distributed

Average = 83.125, Standard deviation = 10.38042

B,c )
LL UL fi ZU Zl PU PL P ef efad X²
50 60 1 -2.22775 -3.1911 0.0132 0.0013 0.0119 0.476
60 70 3 -1.2644 -2.22775 0.1038 0.0132 0.0906 3.624 4.1 0.002439
70 80 9 -0.30105 -1.2644 0.3821 0.1038 0.2783 11.132 11.132 0.408321
80 90 14 0.662305 -0.30105 0.7454 0.3821 0.3633 14.532 14.532 0.019476
90 100 13 1.625657 0.662305 0.9484 0.7454 0.203 8.12 8.12 2.932808
40 37.884 3.363043

X²ob= 3.36
X²0.005, df=1 =7.789
X²L= 0
We FRH0 means the final examination scores in statistics are normally distributed

Problem III
3
Before the presidential debates, it was expected that the percentages of registered voters in favor
of various candidates to be as follows.

Percentages
Democrats 48%
Republicans 38%
Independent 4%
Undecided 10%

After the presidential debates, a random sample of 1200 voters showed that 540 favored the Democratic candidate; 480
were in favor of the Republican candidate; 40 were in favor of the Independent candidate, and 140 were undecided. At
95% confidence, test to see if the proportion of voters has changed.
Answer :
H0: PD=48%, PR=38% , PI=4%, PU= 10%
H1: PD≠48%, PR≠38% , PI4≠%, PU10≠%
Percentages fi fe (f0-fe)²/fe
Democrats 48% 540 576 2.25
Republicans 38% 480 456 1.263158
Independent 4% 40 48 1.333333
Undecided 10% 140 120 3.333333
Total 1200 1200 8.179825

X²ob= 8.17
X²0.025,df 3= 9.348

Since Chi-square observed (8.17)is less than critical value ( 9.348) we FRH0 means the proportion of voters has not
changed.

Problem IV

4
A medical journal reported the following frequencies of deaths due to cardiac arrest for each day of the week:

Cardiac Death by Day of the Week

Day f
Monday 40
Tuesday 17
Wednesday 16
Thursday 29
Friday 15
Saturday 20
Sunday 17

At 95% confidence, determine whether the number of deaths is uniform over the week.

Cardiac Death by Day of the Week

Cardiac Death by Day of the Week

Day f fe (f0-fe)²/fe
Monday 40 22 14.72727
Tuesday 17 22 1.136364
Wednesday 16 22 1.636364
Thursday 29 22 2.227273
Friday 15 22 2.227273
Saturday 20 22 0.181818
Sunday 17 22 1.136364
154 23.27273
At 95% confidence, determine whether the number of deaths is uniform over the week.
Answer:

H0: the number of deaths is uniform over the week

Ha: the number of deaths is not uniform over the week
chi-square = 23.25
X²0.025, df 6= 14.449
chi-square = 23.25 > 14.449; distribution is not uniform

Problem V

5
 The data below represents the fields of specialization for a randomly selected sample of undergraduate students.
Test to determine whether there is a significant difference in the fields of specialization between regions of the country.
Use a .05 level of significance.
Northeast Midwest South West Total
Business 54 65 28 93 240
Engineering 15 24 8 33 80
Liberal Arts 65 84 33 98 280
Fine Arts 13 15 7 25 60
Health Sciences 3 12 4 21 40
150 200 80 270 700

a. State the critical value of the chi-square random variable for this test of independence of categories.
b. Calculate the value of the test statistic.
c. What is the conclusion for this test?

expected frequencies

Northeast Midwest South West Total

Business 51.4286 68.5714 27.4286 92.5714 240
Engineering 17.1429 22.8571 9.14286 30.8571 80
Liberal 60 80 32 108 280
Arts
Fine Arts 12.8571 17.1429 6.85714 23.1429 60
Health 8.57143 11.4286 4.57143 15.4286 40
Sciences
150 200 80 270 700

H0: fields of specialization and regions of the country are independent

H1: fields of specialization and regions of the country are dependent
We fail to reject H0 means the field of specialization and the region of
the country are
independent

Chisobs 8.673765
=
Ch0.025,12df 23.33
=
CHiL= 4.404