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Fall 2014 Take Home Midterm 3, BUSA 320-1

DCS 11/19/2014

1. If the p is ___________, H0 __________________

2. An auditor for a government agency is assigned the task of evaluating reimbursements for
office visits to physicians paid by Medicare. The audit was conducted on a sample of 70 of the
reimbursements with the following results:
In 12 of the office visits, there was an incorrect amount of reimbursement.
The amount of reimbursement (of the 70) was Xbar = $94.60 and S = 35.60

a. [5] At the 0.05 level of significance, is there evidence that the population mean was less than
$100? To aid in getting the answer – and full credit -- include the following.
State the null and alternative hypotheses.
Make a sketch illustrating the problem.
State your decision rule
State your critical value and after working the problem, the approximate P value
Show the formula used and your calculation.
State your managerial conclusion.

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Fall 2014 Take Home Midterm 3, BUSA 320-1
DCS 11/19/2014

b. [6] At the 0.05 level of significance, is there evidence that the proportion of incorrect
reimbursements was greater than 0.10?
To aid in getting the answer – and full credit -- include the following.
State the null and alternative hypotheses.
Make a sketch illustrating the problem.
State your decisions rule
State your critical value and after working the problem, the approximate p value.
Show the formula used and your calculation.
State your managerial conclusion.

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Fall 2014 Take Home Midterm 3, BUSA 320-1
DCS 11/19/2014

3. a. If two populations are normally distributed and their variances (unknown) are
approximately equal, the differences between the means of small samples will also follow the
__________distribution.

b. What if their variances are known and the sample is large, what distribution then?

4. Do male and female students study the same amount per week? In 2007, 58 sophomore
business students were surveyed at a large university that has more than 1000 sophomore
business students each year. The file StudyTime.xls contains the gender and the number of
hours spent studying in a typical week for the sampled students.
NOTE: You will need to unstack the data.

In each case below show the null and alternative hypotheses (were appropriate) and the formula
used.

a. At the 0.05 level of significance, is there a difference in the variance of the study time for male
students and female students? [4]
Hypotheses?

b. Using the results of a., which t test (separate vs. pooled variance) is appropriate for comparing
the mean study time for male and female students? Why? [5]
Hypotheses?

c. At the 0.05 level of significance, conduct the test selected in b.

d. What is the 95% confidence interval of the mean difference and [3]?

d. Write a short summary of your findings of all the parts of this question 4. [3]

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Fall 2014 Take Home Midterm 3, BUSA 320-1
DCS 11/19/2014

5. A one-way analysis of variance is used to compare differences between more than two
_________

6. An airline wants to select a computer software package for its reservation system. Four
software packages (1, 2, 3, and 4) are commercially available. The airline will choose the
package that bumps as few passengers as possible during a month. An experiment is set up in
which each package is used to make reservations for 5 randomly selected weeks. (A total of 20
weeks was included in the experiment.) The number of passengers bumped each week is
obtained and averaged for each system, which gives rise to the following ANOVA output:

a.) [2] State the null and alternative hypotheses

b.) [2] Referring to the ANOVA table, the total degrees of freedom are: _________

c.) [2] Referring to ANOVA table, the within groups degrees of freedom are ______.

d.) [2] Referring to the ANOVA table, the among-group (between-group) mean squares is
________.

e.) [2] The critical F value shown is for what level of significance? _________________

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Fall 2014 Take Home Midterm 3, BUSA 320-1
DCS 11/19/2014

7. Four surgical procedures currently are used to install pacemakers. If the patient does not need
to return for follow-up surgery, the operation is called a "clear" operation. A heart center wants
to compare the proportion of clear operations for the four procedures, and collects the following
numbers of patients from their own records:

Procedure
A B C D Total
Clear 28 41 21 7 97
Return 11 15 9 11 46
Total 39 56 30 18 143

They will use this information to test for a difference among the proportion of clear operations
using a chi-square test with a level of significance of 0.05.

a.) [2] Referring to the table above, the test will involve ________ degrees of freedom.

b.) [2] Referring to the table for this problem, the expected cell frequency for the Procedure
B/Clear cell is ________.

c.) [2] Referring to Table E.4, the critical value of the test is ________.

d.) [2] Referring to your calculations, the value of the test statistic is ________.

e.) [2] State your managerial conclusion.

f.) [2] If the level of significance is 0.01, what is your managerial conclusion?

Go back and check that you wrote down the key equation(s) used to solve each problem.

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