Applied Statistics in Business and Economics
Applied Statistics in Business and Economics
5th Edition
ISBN: 9781259329050
Author: DOANE
Publisher: MCG
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Chapter 1.5, Problem 10SE

A study found that radar detector users have lower accident rates, wear their seat belts more, and even vote more than nonusers. (a) Assuming that the study is accurate, do you think there is cause-and-effect? (b) If everyone used radar detectors, would voting rates and seat-belt usage rise?

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iid 1. The CLT provides an approximate sampling distribution for the arithmetic average Ỹ of a random sample Y₁, . . ., Yn f(y). The parameters of the approximate sampling distribution depend on the mean and variance of the underlying random variables (i.e., the population mean and variance). The approximation can be written to emphasize this, using the expec- tation and variance of one of the random variables in the sample instead of the parameters μ, 02: YNEY, · (1 (EY,, varyi n For the following population distributions f, write the approximate distribution of the sample mean. (a) Exponential with rate ẞ: f(y) = ß exp{−ßy} 1 (b) Chi-square with degrees of freedom: f(y) = ( 4 ) 2 y = exp { — ½/ } г( (c) Poisson with rate λ: P(Y = y) = exp(-\} > y! y²
2. Let Y₁,……., Y be a random sample with common mean μ and common variance σ². Use the CLT to write an expression approximating the CDF P(Ỹ ≤ x) in terms of µ, σ² and n, and the standard normal CDF Fz(·).
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Applied Statistics in Business and Economics

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