Applied Statistics in Business and Economics
Applied Statistics in Business and Economics
5th Edition
ISBN: 9780077837303
Author: David Doane, Lori Seward Senior Instructor of Operations Management
Publisher: McGraw-Hill Education
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Chapter 15.1, Problem 2SE

Instructions: For each exercise, include software results (e.g., from Excel, MegaStat, or JMP) to support your chi-square calculations. (a) State the hypotheses. (b) Show how the degrees of freedom are calculated for the contingency table. (c) Using the level of significance specified in the exercise, find the critical value of chi-square from Appendix E or from Excel’s function =CHISQ.INV.RT(alpha, deg_freedom). (d) Carry out the calculations for a chi-square test for independence and draw a conclusion. (e) Which cells of the contingency table contribute the most to the chi-square test statistic? (f) Are any of the expected frequencies too small? (g) Interpret the p-value. If necessary, you can calculate the p-value using Excel’s function =CHISQ.DIST.RT(test statistic, deg_freedom). *(h) If it is a 2 × 2 table, perform a two-tailed, two-sample z test for π1 = π2 and verify that z2 is the same as your chi-square statistic. Note: Exercises marked with an asterisk (*) are more difficult.

15.2 Teenagers make up a large percentage of the market for clothing. Below are data on running shoe ownership in four world regions (excluding China). Research question: At α = .01, does this sample show that running shoe ownership depends on world region? (See J. Paul Peter and Jerry C. Olson, Consumer Behavior and Marketing Strategy, 9th ed. [McGraw-Hill, 2004], p. 64.)

Chapter 15.1, Problem 2SE, Instructions: For each exercise, include software results (e.g., from Excel, MegaStat, or JMP) to

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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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