
Concept explainers
Pollutants at a housing development. Polycyclic aromatic hydrocarbons (PAHs)—formed during the incomplete burning of oil. gas. or coal—are considered to be potential dangerous pollutants by the Environmental Protection Agency (EPA). Consider' an actual developer who purchased a large parcel of land in Florida that he planned to turn into a residential community. Because the parcel turned out to have significant deposits of PAHs, the developer was required to remove these pollutants from the site prior to commencing development. The clean-up was completed, but the housing bubble burst and the development was a bust. The developer blamed the failure of his plan on the discovery of the pollutants, and filed suit against two industries (named Industry A and B) that were within 25 miles of the site. Although both industries produced PAH waste materials as part of their industrial processes, both denied responsibility for the pollution. Experts were hired to investigate the decree of similarity between pollutants at the industrial sites and these at the development site. Soil specimens were collected at each of four locations: 7 at the housing development site, 6 at Industry A, 5 at Industry B, and 2 at Industry C. Two different molecular diagnostic ratios for measuring the level of PAH in soil were determined for each soil specimen. These data are displayed in the accompanying table.
a. A biochemical expert hired by Industry A chose to analyze the data using a series of t-tests for comparing two means. That is, he conducted a two-sample t-test (Section 8.2 ) using α = .05 for each possible pair of sites: Industry A vs. Industry B, Industry A vs. Industry C, Industry A vs. Development, Industry B vs. Industry C. Industry E vs. Development, and Industry C vs. Development. The results of these 6 t-tests for the second PAH ratio variable led the expert to conclude that (1) mean PAH2 ratio at the development site is statistically different from the corresponding mean at Industry A and (2) the mean PAH2 ratio at the development site is not statistically different from the corresponding mean at Industry B. Use the data in the PAH file to replicate these results.
b. The inferences derived in part a led the expert to argue that the source of the PAH contamination at the housing development site is more likely to have been derived from Industry A than from Industry B. A statistician, hired to rebut this testimony, argued that the analysis (and subsequent inference) was flawed. Explain why. multiple t-tests; inflated Type I error rate
c. Propose a better, more statistically valid, method of analyzing the data. Conduct this analysis for both dependent variables. PAH Ratio 1 and PAH Ratio 2. What do you conclude? Run ANOVA
d. According to the statistician s court testimony, “the results provide clear evidence that these samples are simply too small to make a reliable determination about the sites' similarity or dissimilarity with aspect to [PAH] diagnostic ratios.” The statistician went on to conclude that “the small samples relied upon by [the biochemical expert] shed to light on the issue of whether [Industry A and Industry B] are similar or dissimilar to the [development] site” Do you agree? [Concluding Note: The trial judge ultimate y decided that the biochemist’s statistical analyses and his opinions based on them would be excluded from the evidence used to decide the case. As of this date, the issue of responsibility for the pollution has still not been decided ]

Want to see the full answer?
Check out a sample textbook solution
Chapter 9 Solutions
STATISTICS F/BUS.+ECON-W/ACCESS>CUSTOM<
- You’re fed up with keeping Fido locked inside, so you conduct a mail survey to find out people’s opinions on the new dog barking ordinance in a certain city. Of the 10,000 people who receive surveys, 1,000 respond, and only 80 are in favor of it. You calculate the margin of error to be 1.2 percent. Explain why this reported margin of error is misleading.arrow_forwardYou find out that the dietary scale you use each day is off by a factor of 2 ounces (over — at least that’s what you say!). The margin of error for your scale was plus or minus 0.5 ounces before you found this out. What’s the margin of error now?arrow_forwardSuppose that Sue and Bill each make a confidence interval out of the same data set, but Sue wants a confidence level of 80 percent compared to Bill’s 90 percent. How do their margins of error compare?arrow_forward
- Suppose that you conduct a study twice, and the second time you use four times as many people as you did the first time. How does the change affect your margin of error? (Assume the other components remain constant.)arrow_forwardOut of a sample of 200 babysitters, 70 percent are girls, and 30 percent are guys. What’s the margin of error for the percentage of female babysitters? Assume 95 percent confidence.What’s the margin of error for the percentage of male babysitters? Assume 95 percent confidence.arrow_forwardYou sample 100 fish in Pond A at the fish hatchery and find that they average 5.5 inches with a standard deviation of 1 inch. Your sample of 100 fish from Pond B has the same mean, but the standard deviation is 2 inches. How do the margins of error compare? (Assume the confidence levels are the same.)arrow_forward
- A survey of 1,000 dental patients produces 450 people who floss their teeth adequately. What’s the margin of error for this result? Assume 90 percent confidence.arrow_forwardThe annual aggregate claim amount of an insurer follows a compound Poisson distribution with parameter 1,000. Individual claim amounts follow a Gamma distribution with shape parameter a = 750 and rate parameter λ = 0.25. 1. Generate 20,000 simulated aggregate claim values for the insurer, using a random number generator seed of 955.Display the first five simulated claim values in your answer script using the R function head(). 2. Plot the empirical density function of the simulated aggregate claim values from Question 1, setting the x-axis range from 2,600,000 to 3,300,000 and the y-axis range from 0 to 0.0000045. 3. Suggest a suitable distribution, including its parameters, that approximates the simulated aggregate claim values from Question 1. 4. Generate 20,000 values from your suggested distribution in Question 3 using a random number generator seed of 955. Use the R function head() to display the first five generated values in your answer script. 5. Plot the empirical density…arrow_forwardFind binomial probability if: x = 8, n = 10, p = 0.7 x= 3, n=5, p = 0.3 x = 4, n=7, p = 0.6 Quality Control: A factory produces light bulbs with a 2% defect rate. If a random sample of 20 bulbs is tested, what is the probability that exactly 2 bulbs are defective? (hint: p=2% or 0.02; x =2, n=20; use the same logic for the following problems) Marketing Campaign: A marketing company sends out 1,000 promotional emails. The probability of any email being opened is 0.15. What is the probability that exactly 150 emails will be opened? (hint: total emails or n=1000, x =150) Customer Satisfaction: A survey shows that 70% of customers are satisfied with a new product. Out of 10 randomly selected customers, what is the probability that at least 8 are satisfied? (hint: One of the keyword in this question is “at least 8”, it is not “exactly 8”, the correct formula for this should be = 1- (binom.dist(7, 10, 0.7, TRUE)). The part in the princess will give you the probability of seven and less than…arrow_forward
- please answer these questionsarrow_forwardSelon une économiste d’une société financière, les dépenses moyennes pour « meubles et appareils de maison » ont été moins importantes pour les ménages de la région de Montréal, que celles de la région de Québec. Un échantillon aléatoire de 14 ménages pour la région de Montréal et de 16 ménages pour la région Québec est tiré et donne les données suivantes, en ce qui a trait aux dépenses pour ce secteur d’activité économique. On suppose que les données de chaque population sont distribuées selon une loi normale. Nous sommes intéressé à connaitre si les variances des populations sont égales.a) Faites le test d’hypothèse sur deux variances approprié au seuil de signification de 1 %. Inclure les informations suivantes : i. Hypothèse / Identification des populationsii. Valeur(s) critique(s) de Fiii. Règle de décisioniv. Valeur du rapport Fv. Décision et conclusion b) A partir des résultats obtenus en a), est-ce que l’hypothèse d’égalité des variances pour cette…arrow_forwardAccording to an economist from a financial company, the average expenditures on "furniture and household appliances" have been lower for households in the Montreal area than those in the Quebec region. A random sample of 14 households from the Montreal region and 16 households from the Quebec region was taken, providing the following data regarding expenditures in this economic sector. It is assumed that the data from each population are distributed normally. We are interested in knowing if the variances of the populations are equal. a) Perform the appropriate hypothesis test on two variances at a significance level of 1%. Include the following information: i. Hypothesis / Identification of populations ii. Critical F-value(s) iii. Decision rule iv. F-ratio value v. Decision and conclusion b) Based on the results obtained in a), is the hypothesis of equal variances for this socio-economic characteristic measured in these two populations upheld? c) Based on the results obtained in a),…arrow_forward
- MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons IncProbability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage LearningStatistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
- Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSONThe Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. FreemanIntroduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman





