Performing a Chi-Square Goodness-of-Fit Test In Exercises 7−16, (a) identify the claim and state H0 and Ha, (h) find the critical value and identify the rejection region, (c) find the chi-square test statistic, (d) decide whether to reject or fail to reject the null hypothesis, and (e) interpret the decision in the context of the original claim.
15. Home Sues An organization claims that the number of prospective home buyers who want their next house to be larger, smaller, or the same size as their current house is not uniformly distributed. To test this claim, you randomly select 800 prospective home buyers and ask them what size they want their next house to be. The table at the left shows the results. At α = 0.05, test the organization's claim. (Adapted from Better Homes and Gardens)
Response | Frequency, f |
Urger | 285 |
Same size | 224 |
Smaller | 291 |
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Chapter 10 Solutions
Elementary Statistics 7th.ed. Instructor's Review Copy
- 9 (Portfolio allocation) Suppose R₁ and R2 are returns of 2 assets and with expected return and variance respectively r₁ and 72 and variance-covariance σ2, 0%½ and σ12. Find −∞ ≤ w ≤ ∞ such that the portfolio wR₁ + (1 - w) R₂ has the smallest risk.arrow_forward7 (Multivariate random variable) Suppose X, €1, €2, €3 are IID N(0, 1) and Y2 Y₁ = 0.2 0.8X + €1, Y₂ = 0.3 +0.7X+ €2, Y3 = 0.2 + 0.9X + €3. = (In models like this, X is called the common factors of Y₁, Y₂, Y3.) Y = (Y1, Y2, Y3). (a) Find E(Y) and cov(Y). (b) What can you observe from cov(Y). Writearrow_forward1 (VaR and ES) Suppose X ~ f(x) with 1+x, if 0> x > −1 f(x) = 1−x if 1 x > 0 Find VaRo.05 (X) and ES0.05 (X).arrow_forward
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