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252x0731 4/9/07 (Page layout view!) ECO252 QBA2 THIRD HOUR EXAM April 16, 2007 Name Student number_____________ I. (8 points) Do all the following (2points each unless noted otherwise). Make Diagrams! Show your work! x ~ N 13, 7.2 1. Px 0 2. P6 x 20 3. P1 x 12 4. x.145 (Find z .145 first) 1 252x0731 4/9/07 (Page layout view!) II. II. (22+ points) Do all the following (2 points each unless noted otherwise). Do not answer a question ‘yes’ or ‘no’ without giving reasons. Show your work when appropriate. Use a 5% significance level except where indicated otherwise. 1. Turn in your computer problems 2 and 3 marked as requested in the Take-home. (5 points, 2 point penalty for not doing.) 2. (Dummeldinger) As part of a study to investigate the effect of helmet design on football injuries, head width measurements were taken for 30 subjects randomly selected from each of 3 groups (High school football players, college football players and college students who do not play football – so that there are a total of 90 observations) with the object of comparing the typical head widths of the three groups. Before the data was compared, researchers ran two tests on it. They first ran a Lilliefors test and found that the null hypothesis was not rejected. They then ran a Bartlett test and found that the null hypothesis was not rejected. On the basis of these results they should use the following method. a) The Kruskal-Wallis test. b) One-way ANOVA c) The Friedman test d) Two-Way ANOVA e) Chi-square test [7] 3. The coefficient of determination a) Is the square of the sample correlation b) Cannot be negative c) Gives the fraction of the variation in the dependent variable explained by the independent variable. d) All of the above. e) None of the above. 4. The Kruskal-Wallis test is an extension of which of the following for two independent samples? a) Pooled-variance t test b) Paired-sample t test c) (Mann – Whitney -) Wilcoxon rank sum test d) Wilcoxon signed ranks test e) A test for comparison of means for samples with unequal variances f) None of the above. 5. One-way ANOVA is an extension of which of the following for two independent samples? a) Pooled-variance t test b) Paired-sample t test c) (Mann – Whitney -) Wilcoxon rank sum test d) Wilcoxon signed ranks test e) A test for comparison of means for samples with unequal variances f) None of the above. [13] 2 252x0731 4/9/07 (Page layout view!) Exhibit 1: As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting speeds of 4 brands of bicycles. She took 3 of each brand and determined their maximum downhill speeds. The results are presented in miles per hour in the table below. She assumes that the Normal distribution is not applicable and uses a rank test. She treats the columns as independent random samples. Barth Tornado Reiser Shaw 43 37 41 43 46 38 45 45 43 39 42 46 6. What are the null and alternative hypotheses? 7. Construct a table of ranks for the data in Exhibit 1. 8. Complete the test using a 5% significance level (3) [20] 3 252x0731 4/9/07 (Page layout view!) Exhibit 2: (Webster) A placement director is trying to find out if a student’s GPA can influence how many job offers the student receives. Data is assembled and run on Minitab, with the results below. The regression equation is Jobs = - 0.248 + 1.27 GPA Predictor Coef SE Coef Constant -0.2481 0.7591 GPA 1.2716 0.2859 S = 1.03225 R-Sq = 71.2% Analysis of Variance Source DF SS Regression 1 21.076 Residual Error 8 8.524 Total 9 29.600 T P -0.33 0.752 4.45 0.002 R-Sq(adj) = 67.6% MS 21.076 1.066 F 19.78 P 0.002 9. In Exhibit 2, how many job offers would you predict for someone with a GPA of 3. 10. In Exhibit 2, what percent of the variation in job offers is explained by variation of GPA? (1) 11. For the regression in Exhibit 2 to give us ‘good’ estimates of the coefficients. a) The variances of ‘Jobs’ and ‘GPA’ must be equal. b) The amount of variation of ‘Jobs’ around the regression line must be independent of ‘GPA.’ c) ‘Jobs’ must be independent of ‘GPA.’ d) The p-value for ‘Constant’ must be higher than the p-value for ‘GPA.’ e) All of the above must be true. f) None of the above need to be true. [25] 12. Assuming that the Total of 29.600 in the ANOVA in Exhibit 2 is correct, but that you cannot read any other part of the printout, what are the largest and smallest values that the Regression Sum of Squares could take? [27] 13. A corporation wishes to test the effectiveness of 3 different designs of pollution-control devices. It takes its 6 factories and puts each type of device for one week during each month of the year, for a total of 216 measurements. Pollution in the smoke is measured and an ANOVA is begun. Let factor A be months. Factor B will be factories and Factor C will be the devices. Fill in the following table. Note that we have too little data to compute interaction ABC. The Total sum of squares is 106. SSA is 44, SSB is 11, SSC is 21, SSAB is 9, SSAC is 7 and SSBC is 3. Use a significance level of 1%. Do we have enough information to decide which of the devices is best? (Do not answer this without showing your work!) (6) [33] Row 1 2 3 4 5 6 7 8 Factor A B C AB AC BC Within Total SS DF MS F F01 Significant? 4 252x0731 4/9/07 (Page layout view!) Exhibit 3: A plant manager is concerned for the rising blood pressure of employees and believes that it is related to the level of satisfaction that they get out of their jobs. A random sample of 10 employees rates their satisfaction on a 1to 60 scale and their blood pressure is tested. Row 1 2 3 4 5 6 7 8 9 10 Satisfaction BloodPr 34 124 23 128 19 157 43 133 56 116 47 125 32 147 16 167 55 110 25 156 We also know that Sum of Satisfaction = 350, Sum of BloodPr = 1363, Sum of squares (uncorrected) of Satisfaction = 14170 and Sum of squares (uncorrected) of BloodPr = 189113. It is also true that the sum of the first eight numbers of the product of Satisfaction and Blood is 35609. 14. a) Finish the computation of xy (1). Try to do a regression explaining blood pressure as a result of job satisfaction (4). Please do not recompute things that I have already done for you. Find the slope and test its significance(4). Do the prediction or confidence interval as appropriate for the blood pressure of the highly satisfied employee (satisfaction level is 57) that you hired last month. (3) [45] 5 252x0731 4/9/07 (Page layout view!) ECO252 QBA2 THIRD EXAM April 16, 2007 TAKE HOME SECTION Name: _________________________ Student Number: _________________________ Class days and time : _________________________ Please Note: Computer problems 2 and 3 should be turned in with the exam (2). In problem 2, the 2 way ANOVA table should be checked. The three F tests should be done with a 5% significance level and you should note whether there was (i) a significant difference between drivers, (ii) a significant difference between cars and (iii) significant interaction. In problem 3, you should show on your third graph where the regression line is. Check what your text says about normal probability plots and analyze the plot you did. Explain the results of the t and F tests using a 5% significance level. (2) III Do the following. (20+ points) Note: Look at 252thngs (252thngs) on the syllabus supplement part of the website before you start (and before you take exams). Show your work! State H 0 and H 1 where appropriate. You have not done a hypothesis test unless you have stated your hypotheses, run the numbers and stated your conclusion. (Use a 95% confidence level unless another level is specified.) Answers without reasons or accompanying calculations usually are not acceptable. Neatness and clarity of explanation are expected. This must be turned in when you take the in-class exam. Note that from now on neatness means paper neatly trimmed on the left side if it has been torn, multiple pages stapled and paper written on only one side. 1) (Ken Black) A national travel organization wanted to determine whether there is a significant difference between the cost of premium gas in various regions of the country. The following data was gathered in July 2006. Because the brand of gas may confuse the results, data is blocked by brand. Data Display Row 1 2 3 4 5 6 Brand A B C D E F City 1 3.47 3.43 3.44 3.46 3.46 3.44 City 2 3.40 3.41 3.41 3.45 3.40 3.43 City 3 3.38 3.42 3.43 3.40 3.39 3.42 City 4 3.32 3.35 3.36 3.30 3.39 3.39 City 5 3.50 3.44 3.45 3.45 3.48 3.49 To personalize these data, let the last digit of your student number be a . Mark your problem ‘VERSION a .’ If a is zero, use the original numbers. If a is 1 through 4, add a to the city 4 column. If a is 5 100 through 9, add 0.04 a to the city 5 column. Example: Seymour Butz’ number is 090909, so he adds 100 0.04 9 .05 to column 5 (subtracts .05) and gets the table below. 100 Version 9 Row 1 2 3 4 5 6 Brand A B C D E F City 1 3.47 3.43 3.44 3.46 3.46 3.44 City 2 3.40 3.41 3.41 3.45 3.40 3.43 City 3 3.38 3.42 3.43 3.40 3.39 3.42 City 4 3.32 3.35 3.36 3.30 3.39 3.39 City 5 3.45 3.39 3.40 3.40 3.43 3.44 a) Do a 2-way ANOVA on these data and explain what hypotheses you test and what the conclusions are. Show your work. (6) b) Using your results from a) present two different confidence intervals for the difference between numbers of defects for the best and worst worker and for the defects from the best and second best times. Explain which of the intervals show a significant difference and why. (3) 6 252x0731 4/9/07 (Page layout view!) c) What other method could we use on these data to see if city makes a difference while allowing for crossclassification? Under what circumstances would we use it? Try it and tell what it tests and what it shows. (3) d) (Extra credit) Check you results on the computer. The Minitab setup for both 2-way ANOVA and the corresponding non-parametric method is the same as the extra credit in the third graded assignment or the third computer problem. You may want to use and compare the Statistics pull-down menu and ANOVA or Nonparametrics to start with. Explain your results. (4) [12] 2) A local official wants to know how land value affects home price. The official collects the following data. 'Home price' is the dependent variable and 'Land Value' is the independent variable. Both are in thousands of dollars. If you don’t know what dependent and independent variables are, stop work until you find out. Row 1 2 3 4 5 6 7 8 9 10 HomePr 67 63 60 54 58 36 76 87 89 92 LandVal 7.0 6.9 5.5 3.7 5.9 3.8 8.9 9.6 9.9 10.0 To personalize the data let g be the second to last digit in your student number. Mark your problem ‘VERSION g . ’Subtract g from 92, which is the last home price. a) Compute the regression equation Y b b x to predict the home price on the basis of land value. 0 1 (3).You may check your results on the computer, but let me see real or simulated hand calculations. b) Compute R 2 . (2) c) Compute s e . (2) d) Compute s b0 and do a significance test on b0 (2) e) Use your equation to predict the price of the average home that is on land worth $9000. Make this into a 95% interval. (3) f) Make a graph of the data. Show the trend line and the data points clearly. If you are not willing to do this neatly and accurately, don’t bother. (2) [26] 3) A sales manager is trying to find out what method of payment works best. Salespersons are randomly assigned to payment by commission, salary or bonus. Data for units sold in a week is below. Row 1 2 3 4 5 6 7 8 9 10 11 12 13 Commission 25 35 20 30 25 30 26 17 31 30 Salary 25 25 22 20 25 23 22 25 20 26 24 Bonus 28 41 21 31 26 26 46 32 27 35 23 22 26 To personalize the data let g be the second to last digit in your student number. Subtract 2 g from 46 in the last column. Mark your problem ‘VERSION g .’Example: Payme Well’s student number is 000090, so she subtracts 18 and gets the following numbers. 7 252x0731 4/9/07 (Page layout view!) Version 9 Row 1 2 3 4 5 6 7 8 9 10 11 12 13 Commission 25 35 20 30 25 30 26 17 31 30 Salary 25 25 22 20 25 23 22 25 20 26 24 Bonus 28 41 21 31 26 26 28 32 27 35 23 22 26 a) State your null hypothesis and test it by doing a 1-way ANOVA on these data and explain whether the test tells us that payment method matters or not. (4) b) Using your results from a) present individual and Tukey intervals for the difference between earnings for all three possible contrasts. Explain (i) under what circumstances you would use each interval and (ii) whether the intervals show a significant difference. (2) c) What other method could we use on these data to see if payment method makes a difference? Under what circumstances would we use it? Try it and tell what it tests and what it shows. (3) [37] d) (Extra Credit) Do a Levene test on these data and explain what it tests and shows. (4) f) (Extra credit) Check you results on the computer. The Minitab setup for 1-way ANOVA can either be unstacked (in columns) or stacked (one column for data and one for column name). There is a Tukey option. The corresponding non-parametric methods require the stacked presentation. You may want to use and compare the Statistics pull-down menu and ANOVA or Nonparametrics to start with. You may also want to try the Mood median test and the test for equal variances which are on the menu categories above. Even better, do a normality test on your columns. Use the Statistics pull-down menu to find the normality tests. The Kolmogorov-Smirnov option is actually Lilliefors. The ANOVA menu can check for equality of variances. In light of these tests was the 1-way ANOVA appropriate? You can get descriptions of unfamiliar tests by using the Help menu and the alphabetic command list or the Stat guide. (Up to 7) [12] 8