ch12-solns-all_skuce_2e

download ch12-solns-all_skuce_2e

of 30

Transcript of ch12-solns-all_skuce_2e

  • 8/12/2019 ch12-solns-all_skuce_2e

    1/30

    Instructors Solutions Manual - Chapter 12

    Chapter 12 Solutions

    Develop Your Skills 12.11. We are looking for evidence of a decrease in the proportion of on-time flights after

    the merger. Call the population of flights before the merger population 1, and the

    population of flights after the merger population 2.

    H0: p1 p2= 0

    H1: p1 p2> 0

    = 0.04

    85.0100

    85p1 , n1= 100, 78.0

    100

    78p 2 , n2= 100

    Sampling is done without replacement, but it is likely that the airline handles many

    thousands of flights, so we can still use the binomial distribution as the appropriateunderlying model.

    Check for normality of the sampling distribution:

    =100(0.85) = 85 > 1011pn

    =100(1-0.85) = 100(0.15) = 15 > 1011qn

    =100(0.78) = 78 > 1022pn

    =100(1-0.78) = 100(0.22) = 22 > 1022 qn

    Since the null hypothesis is that there is no difference in the proportions, we can pool

    the sample data to estimate .p

    815.0100100

    7885p

    We calculate the z-score as:

    2747.1054913568.0

    07.0

    100

    1

    100

    1)815.01)(815.0(

    0)78.085.0(

    n

    1

    n

    1qp

    0)pp(z

    21

    21

    p-value = P(z 1.27) = 1 0.8980 = 0.102

    Since p-value > , fail to reject H0. There is insufficient evidence to infer that theproportion of on-time flights decreased after the merger.

    Copyright 2011 Pearson Canada Inc. 321

  • 8/12/2019 ch12-solns-all_skuce_2e

    2/30

    Instructors Solutions Manual - Chapter 12

    2. Call the data on use of social network profiles by online Canadians in 2009 sample 1

    from population 1, and the data on use of social network profiles by onlineCanadians 18 months previously sample 2 from population 2.

    H0: p1 p2= 0.10

    H1: p1 p2> 0.10

    = 0.05

    5607.0824

    462

    1 p , n1= 824, 39.02 p , n2= 800

    Sampling is done without replacement, but there are millions of online Canadians, sowe can still use the binomial distribution as the appropriate underlying model.

    Check for normality of the sampling distribution:

    = 462 > 1011pn = 824 - 462 = 362 > 1011qn

    =800(0.39) = 312 > 1022pn

    =800(1-0.39) = 800(0.61) = 488 > 1022 qn

    Since the null hypothesis is that there is a 10% difference in the proportions, we

    cannot pool the sample data to estimate .p

    We calculate the z-score as:

    89.2

    800

    )61.0)(39.0(

    824

    )4393.0)(5607.0(

    10.0)39.05607.0(

    )()(

    2

    22

    1

    11

    21

    21 21

    21

    21

    n

    qp

    n

    qp

    pp

    s

    ppz

    pp

    pp

    pp

    p-value = P(z 2.89) = 1 0.9981 = 0.0019

    Since p-value < , reject H0. There is sufficient evidence to infer that the proportion

    of online Canadians with a social network profile is more than 10% higher in 2009than it was 18 months previous.

    Copyright 2011 Pearson Canada Inc. 322

  • 8/12/2019 ch12-solns-all_skuce_2e

    3/30

    Instructors Solutions Manual - Chapter 12

    3. Call the data on perceptions of female bank employees sample 1 from population 1,

    and the data on perceptions of male bank employees sample 2 from population 2.We want to know if the proportion of male employees who felt that female

    employees had as much opportunity for advancement as male employees is more

    than 10% higher than the proportion of female employees who thought so. So, we

    are wondering if p2is more than 10% higher than p1, that is, if p2 p1> 0.10.Rewriting this in standard format, we ask the equivalent question: is p1p2< -0.10?

    H0: p1 p2= -0.10H1: p1 p2< -0.10

    = 0.05

    , n1= 240, , n2= 350825.01p 943.0 2 p

    Sampling is done without replacement, but Canadian banks are large employers (in

    2006, the Royal Bank employed about 69,000 people, for instance), so we can stilluse the binomial distribution as the appropriate underlying model.

    Check for normality of the sampling distribution:

    =240(0.825) = 198 > 1011pn

    =240(1-0.825) = 42 > 1011qn

    =350(0.943) = 330.05 > 1022pn

    =350(1-0.943) =19.95 > 1022 qn

    The null hypothesis is that there is 10% difference in the proportions, so we cannot

    pool the sample data to estimate .p

    We calculate the z-score as:

    1 2 1 2

    1 1 2 2

    1 2

    ( ) (0.825 0.943) ( 0.10)0.655

    (0.825)(0.175) (0.943)(0.057)

    240 350

    p pp p

    zp q p q

    n n

    p-value = P(z -0.66) = 0.2546

    Since p-value > , fail to reject H0. There is not enough evidence to infer that theproportion of male employees who felt that female employees had as much

    opportunity for advancement as male employees was more than 10% higher than the

    proportion of female employees who thought so.

    Copyright 2011 Pearson Canada Inc. 323

  • 8/12/2019 ch12-solns-all_skuce_2e

    4/30

    Instructors Solutions Manual - Chapter 12

    4. Call the data on customers told about the extended warranty by cashiers sample 1

    from population 1. Call the data on customers exposed to the display at the checkoutsample 2 from population 2.

    H0: p1 p2= 0

    H1: p1 p20

    = 0.10

    We presume the store has many thousands of customers, so although we are

    sampling without replacement, we can still use the binomial distribution as the

    appropriate underlying model.

    The data are available in Excel, so we will use Excel to do this problem. First the

    raw data must be organized. The Excel output from the Histogram tool is shownbelow.

    Cashier Display

    Bin Frequency Bin Frequency

    0 122 0 145

    1 28 1 55

    We can then use the Excel template to proceed. The output is shown below.

    MakingDecisionsAboutTwo

    PopulationProportions

    Sample1Size 150

    Sample2Size 200

    Sample1Proportion 0.18666667

    Sample2Proportion 0.275

    n1p1hat 28

    n1q1hat 122

    n2p2hat 55

    n2q2hat 145

    Arenpandnq>=10? yes

    HypothesizedDifference

    in

    Population

    Proportions,p1p2(decimalform) 0

    zScore 1.92275784

    OneTailedpValue 0.02725523

    TwoTailedpValue 0.05451047

    Copyright 2011 Pearson Canada Inc. 324

  • 8/12/2019 ch12-solns-all_skuce_2e

    5/30

    Instructors Solutions Manual - Chapter 12

    This is a two-tailed test, so the appropriate p-value is 0.0545. Since this is less than, reject H0. There is sufficient evidence to infer there is a difference in theproportion of customers who buy the extended warranty when exposed to promotion

    by a display or informed by the cashier.

    5. We will use Excel to calculate this confidence interval (it could also be done byhand, based on the information acquired in Exercise 4 above). The Excel template is

    shown below.

    ConfidenceIntervalEstimatefor

    theDifferenceinPopulation

    Proportions

    ConfidenceLevel(decimalform) 0.9

    Sample1Proportion 0.18667

    Sample2Proportion 0.275

    Sample1Size

    150

    Sample2Size 200

    n1p1hat 28

    n1q1hat 122

    n2p2hat 55

    n2q2hat 145

    Arenpand nq>=10? yes

    UpperConfidenceLimit 0.0146

    LowerConfidence

    Limit

    0.1621

    With 90% confidence, we estimate that the interval (-0.162, -0.015) contains the true

    difference in the proportion of customers who buy the extended warranty, when told

    about it by the cashier, compared with being exposed to a prominent display at the

    checkout. Another way to say this: a greater proportion of those exposed to thedisplay bought the extended warranty. We estimate the difference to be contained in

    the interval (1.5%, 16.2%).

    This confidence interval corresponds to the hypothesis test in the preceding exercise.

    Since we rejected the hypothesis of no difference, we would not expect theconfidence interval to contain zero (and it does not).

    Copyright 2011 Pearson Canada Inc. 325

  • 8/12/2019 ch12-solns-all_skuce_2e

    6/30

    Instructors Solutions Manual - Chapter 12

    Develop Your Skills 12.26. First, summarize the data, and calculate expected values. See the table below.

    Past % Observed Expected

    Pay Now 0.26 23 19.5Pay In Six Months 0.37 32 27.75

    Pay In One Year 0.37 20 27.75

    75 75

    Expected values are calculated as follows. In the past, 26% of customers paidimmediately. Out of the 75 customers surveyed, we would expect 26% 75 = 19.5

    customers to pay immediately. The other expected values are calculated in a similar

    fashion.

    H0: The distribution of customers according to method of payment is the same nowas it was in the past.

    H1: The distribution of customers according to method of payment is different now,compared to the past.

    = 0.05 (given)

    All expected values are more than 5, so we can proceed.

    444.375.27

    )75.2720(

    75.27

    )75.2732(

    5.19

    )5.1923(

    e

    )eo(X

    222

    i

    2

    ii2

    Degrees of freedom = k 1 = 2.

    Using the tables, we see that p-value > 0.100.Using CHITEST, we see that p-value = 0.1787.

    Fail to reject H0. There is insufficient evidence to infer that there has been a changein customers preferences for the different payment plans.

    The graph below summarizes the changes.

    0%

    5%

    10%

    15%

    20%

    25%

    30%35%

    40%

    45%

    PayNow PayinSixMonths PayinOneYear

    CustomerPreferencesforPaymentPlansPastCustomerPreferences CurrentCustomerPreferences

    Copyright 2011 Pearson Canada Inc. 326

  • 8/12/2019 ch12-solns-all_skuce_2e

    7/30

    Instructors Solutions Manual - Chapter 12

    7. H0: The distribution of customers brand preferences is as claimed by the previous

    manager.H1: The distribution of customers brand preferences is different from what was

    claimed by the previous manager.= 0.05 (given)

    Expand the table of claimed brand preferences to show expected and observed

    values, as shown below.

    Labatt

    Blue

    Labatt

    Blue

    Light

    Molson

    Canadian

    Kokanee Rickards

    Honey

    Brown

    Claimed

    Preference

    33% 8% 25% 19% 15%

    Expected

    (for 75Customers) 24.75 6.00 18.75 14.25 11.25

    Observed 29 6 21 16 13

    All expected values are more than 5, so we can proceed.

    487.1

    25.11

    )25.1113(

    25.14

    )25.1416(

    75.18

    )75.1821(

    00.6

    )00.66(

    75.24

    )75.2429()( 222222

    2

    i

    ii

    e

    eo

    X

    Degrees of freedom = k 1 = 4.

    Using the tables, we see that p-value > 0.100.

    Using CHITEST, we see that p-value = 0.8289

    .Fail to reject H0. There is insufficient evidence to infer that the distribution of

    customers brand preferences is different from what the previous manager claimed.

    Copyright 2011 Pearson Canada Inc. 327

  • 8/12/2019 ch12-solns-all_skuce_2e

    8/30

    Instructors Solutions Manual - Chapter 12

    8. H0: The die is fair (the probability of occurrence of each side is 1/6).

    H1: The die is not fair.= 0.025 (given)

    Expand the table of observations from repeated tosses of a die to show expected and

    observed values, as shown below.

    1 Spot 2 Spots 3 Spots 4 Spots 5 Spots 6 Spots

    Observed 18 24 17 25 16 25

    Expected(Out Of 125) 20.83333 20.83333 20.83333 20.83333 20.83333 20.83333

    All expected values are more than 5.

    Using the formula as before, we calculate X2= 4.36.

    Degrees of freedom = k 1 = 5.

    From the table, we see p-value > 0.100.

    Using CHITEST, we see that p-value = 0.4988.

    Fail to reject H0. There is insufficient evidence to infer that the die is not fair.Johns troubles are of his own making. We have no way to know if Mary will ever

    forgive him.

    9. H0: The distribution of customer destination preferences at the travel agency is the

    same as in the past.

    H1: The distribution of customer destination preferences at the travel agency is

    different from the past.= 0.04 (given)

    Summarize the data from the random sample and calculate expected values.

    Canada U.S. Caribbean Europe Asia Australia

    /NewZealand

    Other

    Past Preferences 28% 32% 22% 12% 2% 3% 1%

    Expected

    (for a sample of54) 15.12 17.28 11.88 6.48 1.08 1.62 0.54

    Observed 22 14 8 8 0 2 0

    Copyright 2011 Pearson Canada Inc. 328

  • 8/12/2019 ch12-solns-all_skuce_2e

    9/30

    Instructors Solutions Manual - Chapter 12

    In this case, there are three expected values < 5 (these are highlighted in the table).

    It seems logical to combine these categories, and then proceed. The new table ofexpected and observed values is shown below.

    Canada U.S. Caribbean Europe OtherPast Preferences 28% 32% 22% 12% 6%

    Expected

    (for a sample of 54)15.12 17.28 11.88 6.48 3.24

    Observed 22 14 8 8 2

    However, even this change still leaves us with an expected value < 5. We must

    combine categories again. It is less satisfying to combine Europe with Asia,

    Australia/New Zealand and Other. However, all of these destinations represent

    destinations at a significant distance from the North American continent, so there is

    some sense to combining them

    The final table of expected and observed values is shown below.

    Canada U.S. Caribbean Europe, Asia,

    Australia/New

    Zealand, Other

    Past Preferences 28% 32% 22% 18%

    Expected(for a sample of 54)

    15.12 17.28 11.88 9.72

    Observed 22 14 8 10

    Now that all expected values are 5, we can proceed.Using the formula as before, we calculate X

    2= 5.028.

    Using the tables, with 3 degrees of freedom, we see p-value > 0.100.

    Using CHITEST, we see that p-value = 0.1697.Fail to reject H0. There is insufficient evidence to infer that there has been a change

    in customer destination preferences at this travel agency.

    10. H0: The distribution of responses to the survey at the local branch is the same as the

    national benchmarksH1: The distribution of responses to the survey at the local branch is not the same as

    the national benchmarks

    = 0.025; X2= 20.859; from the tables (4 degree of freedom), p-value < .005Reject H0. There is sufficient evidence to infer that the distribution of responses to

    the survey at the local branch differs from the national benchmarks. The graph belowgives some indication of where the differences lie.

    Copyright 2011 Pearson Canada Inc. 329

  • 8/12/2019 ch12-solns-all_skuce_2e

    10/30

    Instructors Solutions Manual - Chapter 12

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    StronglyAgree

    Agree Neit herAgreenorDisagree

    Disagree StronglyDisagree

    ResponsetoaSurveyofFinancialServicesCompanyCustomers:"Thestaffatmylocalbranchcanprovide

    me

    with

    good

    advice

    on

    my

    financial

    affairs"

    NationalBenchmark

    ObservedPercentage

    Develop Your Skills 12.3

    11. H0: There is no relationship between the views on the proposed health benefit

    changes and the type of job held in the organization

    H1: There is a relationship between the views on the proposed health benefitchanges and the type of job held in the organization

    = 0.01

    The calculations of expected values for a contingency table can be done manually,

    but are somewhat tedious. We will use Excels Non-Parametric Tool for Chi-Squared Expected Value Calculations. The Excel output is shown below.

    Chi-Squared Expected Values Calculations

    Chi-squared test statistic 16.44338

    # of expected values

  • 8/12/2019 ch12-solns-all_skuce_2e

    11/30

    Instructors Solutions Manual - Chapter 12

    The p-value is 0.002478, which is < = 0.01. Reject H0. There is sufficient

    evidence to infer that there is a relationship between the views on the proposedhealth benefits changes and the type of job held in the organization.

    12. H0: There is no relationship between hair colour and tendency to use sunscreen.

    H1: There is a relationship between hair colour and tendency to use sunscreen.= 0.05

    The output of the Excel tool for Chi-Squared Expected Value Calculations is shownbelow.

    Chi-squared test statistic 21.39291

    # of expected values

  • 8/12/2019 ch12-solns-all_skuce_2e

    12/30

    Instructors Solutions Manual - Chapter 12

    13. H0: There is no relationship between household income and the section of the paper

    read most closely.H1: There is a relationship between household income and the section of the paper

    read most closely.= 0.25

    The output of the Excel tool for Chi-Squared Expected Value Calculations is shown

    below.

    Chi-Squared Expected Values Calculations

    Chi-squared teststatistic 51.92698

    # of expected values

  • 8/12/2019 ch12-solns-all_skuce_2e

    13/30

    Instructors Solutions Manual - Chapter 12

    All expected values are 5, so we can proceed. The p-value is 0.14647 > = 0.05.

    Fail to reject H0. There is insufficient evidence to infer that there are differences inthe proportions of students whose first language is English, French, or something

    else for these four schools.

    15. H0: The proportions of students drawn from inside or outside the local area are thesame for the Business, Technology and Nursing programs at a college.

    H1: The proportions of students drawn from inside or outside the local area are

    different for the Business, Technology and Nursing programs at a college.= 0.025

    The output of the Excel tool for Chi-Squared Expected Value Calculations is shown

    below.

    Chi-Squared Expected Values Calculations

    Chi-squared test statistic 0.823106

    # of expected values = 0.025.

    Fail to reject H0. There is not enough evidence to infer that the proportions of

    students drawn from inside or outside the local area are different for the Business,Technology and Nursing programs at a college.

    Chapter Review Questions1. We can pool data when the null hypothesis is that there is NO difference in the

    population proportions. If that is the case (as we assume), then we can pool thesample data, because both samples provide estimates of the sameproportion of

    successes. We cannot pool the data when the null hypothesis is that the population

    proportions differ by 5%, because the sample data are providing estimates of twodifferentproportions of success.

    2. We can't pool the sample data when we are constructing a confidence intervalestimate of p1 p2, because we are not assuming there is no difference in the

    population proportions. We do not have a null hypothesis in mind when we areestimating the difference in proportions.

    3. H0: p1 p2= - 0.10

    H1: p1 p2< -0.10

    This may not be immediately obvious. Remember, the subscript 1 corresponds to last

    year's results, and the subscript 2 corresponds to this year's results. If the proportion

    Copyright 2011 Pearson Canada Inc. 333

  • 8/12/2019 ch12-solns-all_skuce_2e

    14/30

    Instructors Solutions Manual - Chapter 12

    of people who pass this year is more than 10% higher, then when we subtract p 1-p2,

    we will get a negative number, and it will be to the left of -0.10 on the number line.

    4. The Chi-square goodness-of-fit test measures only how closely the observed

    frequencies match the expected frequencies. The test does not take into account

    whether the differences are positive or negative (differences are squared in thecalculation of the test statistic). Larger differences result in larger values of the Chi-

    square test statistics. Unusually large values (in the right tail of the distribution)

    signal that there are significant differences in the distributions.

    5. Repeated tests on the same data set lead to higher chances of Type I error, and are

    therefore not reliable. A Chi-square test allows us to compare all three proportionssimultaneously.

    6. Call the data on members who were taking fitness classes sample 1 from population1. Call the data on members who were working with a personal trainer sample 2 from

    population 2.

    H0: p1 p2= 0H1: p1 p20

    = 0.05

    63333333.060

    38p1 , n1= 60, 75.0

    80

    60p 2 , n2= 80

    Sampling is done without replacement, but presumably the fitness club has hundreds

    of members. This is an assumption that we should note before we proceed to use thebinomial distribution as the underlying model.

    Check for normality of the sampling distribution:

    =38 > 1011pn

    =60 - 38 = 22 > 1011qn

    =60 > 1022pn

    =80 - 60 = 20 > 1022 qn

    Since the null hypothesis is that there is no difference in the proportions, we can pool

    the sample data to estimate .p

    70.08060

    6038p

    Copyright 2011 Pearson Canada Inc. 334

  • 8/12/2019 ch12-solns-all_skuce_2e

    15/30

    Instructors Solutions Manual - Chapter 12

    We calculate the z-score as:

    49.1

    80

    1

    60

    1

    )70.01)(70.0(

    0)75.060

    38(

    n

    1

    n

    1

    qp

    0)pp(z

    21

    21

    (Note that p1is left in fractional form to preserve accuracy for calculations with a

    P(z - 1.49) = 2 0.0681 = 0.1362

    Since p-value > , fail to reject H0. There is insufficient evidence to infer that there

    ith

    . Since the Chi-square test is equivalent to the test of proportions, we expect to get the

    Still working out in Quit working out in

    calculator.)

    p-value = 2

    is a difference in the proportion of new members still working out regularly sixmonths after joining the club, when comparing those who attend fitness classes w

    those who work out with a personal trainer.

    7same answer. First, set up the appropriate contingency table for the data, as shown

    below.

    first six months first six months

    Taking fitness classes 38 22

    Working with a personal trainer 60 20

    The setup of the problem is the same, with the same null and alternative hypotheses.

    red Expected Values Calculations

    The output of the Excel tool for Chi-Squared Expected Value Calculations is shown

    below.

    Chi-Squa

    Chi-squared test statistic 2.222222

    # of expected values

  • 8/12/2019 ch12-solns-all_skuce_2e

    16/30

    Instructors Solutions Manual - Chapter 12

    8. Call the data on deliveries by the private courier sample 1 from population 1. Call

    H0: p1 p2= 0.05

    = 0.025

    , n1= 100, , n2= 75

    Sampling is done without replacement, but presumably both the private courier and

    Check for normality of the sampling distribution:

    0

    0

    Since the null hypothesis is that there is a difference in the proportions, we cannot

    We calculate the z-score as:

    the data on deliveries by Canada Post sample 2 from population 2.

    H1: p1 p2> 0.05

    89.01 p 80.0p2

    Canada Post make a very large number of deliveries, so we can use the binomialdistribution as the appropriate underlying model.

    11pn = 100(0.89) = 89 > 10

    = 100(1-0.89) = 11 111qn

    2 =75(0.80) = 60 > 102pn

    =75(1 - 0.80) = 15 > 122 qn

    pool the sample data.

    72.0

    75

    )20.0)(80.0(

    100

    )11.0)(89.0(

    05.0)80.089.0(

    )(

    2

    22

    1

    11

    21 21

    n

    qp

    n

    qp

    ppz

    pp

    p-value = P(z 0.72) = 1 0.7642 = 0.2358

    Since p-value > , fail to reject H0. There is insufficient evidence to infer that the

    uldon-time or early percentage for the private courier is more than 5% higher thanCanada Posts. Using this criterion for the decision, the mail order company sho

    not use the private courier service.

    Copyright 2011 Pearson Canada Inc. 336

  • 8/12/2019 ch12-solns-all_skuce_2e

    17/30

    Instructors Solutions Manual - Chapter 12

    9. Call the data on students who were called by program faculty sample 1 from

    population 1. Call the data on students who were only sent a package in the mailsample 2 from population 2.

    H0: p1 p2= 0

    H1: p1 p2> 0

    = 0.025

    841726618.0278

    234

    1 p , n1= 278, 76821192.0302

    232

    2 p , n2= 302

    Sampling is done without replacement. We have no information on collegeenrolment. Sample sizes are fairly large. For these samples to be at most 5% of the

    relevant populations, the college would have to have about 5560 students who were

    called by faculty in total, and about 6040 who were sent acceptance packages. This

    means a fairly large potential first-year enrolment. This is an assumption that weshould note before we proceed to use the binomial distribution as the underlying

    model.

    Check for normality of the sampling distribution:

    = 234 > 1011pn

    = 278 - 234 = 44 > 1011qn

    = 232 > 1022pn

    = 302 - 232 = 70 > 1022 qn

    Since the null hypothesis is that there is no difference in the proportions, we can poolthe sample data to estimate .p

    80344828.0302278

    232234

    p

    We calculate the z-score as:

    23.2

    3021

    2781

    5804661

    580466

    0302

    232

    278

    234

    11

    0)(

    21

    21

    nnqp

    ppz

    (Note that some proportions are left in fractional form to preserve accuracy for

    calculations with a calculator.)

    p-value = P(z 2.23) = 1 - 0.9871 = 0.0129

    Copyright 2011 Pearson Canada Inc. 337

  • 8/12/2019 ch12-solns-all_skuce_2e

    18/30

    Instructors Solutions Manual - Chapter 12

    Since p-value < , reject H0. There is sufficient evidence to infer that the proportionof prospective students who send acceptances is higher when they get calls from

    program faculty (compared with receiving a package in the mail).

    10. This confidence interval could be calculated manually. The output of the Exceltemplate is shown below (manual calculations should be very close).

    ConfidenceIntervalEstimatefor

    theDifferenceinPopulation

    Proportions

    ConfidenceLevel(decimalform) 0.95

    Sample1Proportion 0.84173

    Sample2Proportion 0.76821

    Sample1Size 278

    Sample2Size 302

    n1p1hat 234

    n1q1hat 44

    n2p2hat 232

    n2q2hat 70

    Arenpandnq>=10? yes

    UpperConfidenceLimit 0.13759

    LowerConfidenceLimit 0.00944

    With 95% confidence, we estimate that the proportion of students who send

    acceptances when called by program faculty is 0.9% to 13.8% higher than the

    proportion who send acceptances when they receive only a package in the mail.

    11. Call the data on managers who have been sent to conflict resolution training sample

    1 from population 1. Call the data on non-managerial employees who have been sentto conflict resolution training sample 2 from population 2.

    H0: p1 p2= 0H1: p1 p20

    = 0.025

    72.050

    36p1 , n1= 50, 50.0

    76

    38p 2 , n2= 76

    Copyright 2011 Pearson Canada Inc. 338

  • 8/12/2019 ch12-solns-all_skuce_2e

    19/30

    Instructors Solutions Manual - Chapter 12

    Sampling is done without replacement. We have no information on the total number

    of employees who have been sent to conflict resolution training. We are told that the

    company is large. For these samples to be at most 5% of the relevant populations,

    the company would have had to send 1000 managerial employees to the training, and1520 non-managerial employees. This is an assumption that we should note before

    we proceed to use the binomial distribution as the underlying model.

    Check for normality of the sampling distribution:

    = 36 > 1011pn

    = 50 - 36 = 14 > 1011qn

    = 38 > 1022pn

    = 76 - 38 = 38 > 1022 qn

    Since the null hypothesis is that there is no difference in the proportions, we can poolthe sample data to estimate .p

    587301587.07650

    3836p

    We calculate the z-score as:

    45.2

    76

    1

    50

    1

    126

    741

    126

    74

    0)50.072.0(

    n

    1

    n

    1qp

    0)pp(z

    21

    21

    (Note that some proportions are left in fractional form to preserve accuracy for

    calculations with a calculator.)

    p-value = 2 P(z 2.45) = 2 (1 - 0.9929) = 2 0.0071 = 0.0142

    Since p-value < , reject H0. There is sufficient evidence to infer there is a

    difference in the proportions of managers and non-managers who thought thatconflict resolution training was a waste of time.

    12. In the sample, 72% of managers and 50% of non-managers thought the training wasa waste of time. There is no way to know why, and this is something that might beworthy of further research. Was the training perceived as a waste of time because

    the employees felt they did not benefit? If they did not benefit, was this because they

    learned nothing new, or they thought the training was poorly done? Was it a waste

    of time only because they felt they had more important tasks to complete?

    Copyright 2011 Pearson Canada Inc. 339

  • 8/12/2019 ch12-solns-all_skuce_2e

    20/30

    Instructors Solutions Manual - Chapter 12

    The initial research was not really that helpful. It would have been more appropriate

    to ask the employees what they learned at the training, and whether they were likelyto put what they learned into practice.

    However, generally, the sample results raise a question about whether the training is

    accomplishing its intended goals. Before continuing to spend money on training, thedecision to implement the training should be revisited, with further data collection a

    possibility.

    13. We can set this up as a Chi-square test, with the information organized as in the tablebelow.

    Manufacturer#1

    Manufacturer#2

    Manufacturer#3

    Defective Components 36 30 38

    Non-DefectiveComponents 89 95 87

    Total 125 125 125

    H0: The proportions of defective items are the same for all three manufacturers.

    H1: The proportions of defective items are different among the three manufacturers.= 0.05

    The output from the Excel tool for Chi-Squared Expected Value Calculations is

    shown below.

    Chi-Squared Expected Values Calculations

    Chi-squared test statistic 1.383764# of expected values = 0.05.

    Fail to reject H0. There is not enough evidence to infer that the proportions of

    defective items are different among the three manufacturers.

    Copyright 2011 Pearson Canada Inc. 340

  • 8/12/2019 ch12-solns-all_skuce_2e

    21/30

    Instructors Solutions Manual - Chapter 12

    14. Refer to the two plants as Plant 1 and Plant 2.

    H0: p1 p2= 0

    H1: p1 p20

    = 0.05

    15333333.0150

    23p1 , n1= 150, 184.0

    125

    23p 2 , n2= 125

    Sampling is done without replacement. We have no information on the total number

    of employees at the two plants. As long as Plant 1 has 3000 employees, and Plant 2

    has 2500 employees, we can still use the binomial distribution as the appropriateunderlying model. We note this assumption and proceed.

    Check for normality of the sampling distribution:

    = 23 > 1011pn = 150 - 23 = 127 > 1011qn

    = 23 > 1022pn

    = 125 - 23 = 102 > 1022 qn

    Since the null hypothesis is that there is no difference in the proportions, we can pool

    the sample data to estimate .p

    71672727272.0275

    46

    125150

    2323p

    We calculate the z-score as:

    68.0

    125

    1

    150

    1

    275

    461

    275

    46

    0184.0150

    23

    n

    1

    n

    1qp

    0)pp(z

    21

    21

    (Note that some proportions are left in fractional form to preserve accuracy for

    calculations with a calculator.)

    p-value =2 P(z -0.68) = 2 0.2483 = 0.4966

    Using Excel, we calculate the exact p-value as 0.497. (See the output from the Exceltemplate for Making Decisions About Two Population Proportions, Qualitative Data,

    shown below.)

    Copyright 2011 Pearson Canada Inc. 341

  • 8/12/2019 ch12-solns-all_skuce_2e

    22/30

    Instructors Solutions Manual - Chapter 12

    MakingDecisionsAboutTwo

    PopulationProportions

    Sample1Size 150

    Sample2Size 125

    Sample1Proportion 0.15333333

    Sample2Proportion 0.184

    n1p1hat 23

    n1q1hat 127

    n2p2hat 23

    n2q2hat 102

    Arenpand nq>=10? yes

    HypothesizedDifferenceinPopulation

    Proportions,p1

    p2

    (decimal

    form) 0

    zScore 0.67847976

    OneTailedpValue 0.24873378

    TwoTailedpValue 0.49746755

    Since p-value > , fail to reject H0. There is insufficient evidence to infer there is adifference in the proportions of employees who had accidents at the two plants.

    15. Exercise 14 could also be done as a Chi-square test. First, organize the data as

    shown below.

    Plant 1 Plant 2

    Employees Who Had An Accident 23 23

    Employees Who Had No Accident 127 102

    Total 150 125

    H0: The proportions of employees who had accidents are the same at the two plants.H1: The proportions of employees who had accidents are different at the two plants.

    = 0.05

    Copyright 2011 Pearson Canada Inc. 342

  • 8/12/2019 ch12-solns-all_skuce_2e

    23/30

    Instructors Solutions Manual - Chapter 12

    The output from the Excel tool for Chi-Squared Expected Value Calculations is

    shown below.

    Chi-Squared Expected Values Calculations

    Chi-squared test statistic 0.460335# of expected values , fail to reject H0. There is insufficient evidence toinfer there is a difference in the proportions of employees who had accidents at the

    two plants.

    16. H0: There is no relationship between an individuals family status and his/her

    willingness to accept a foreign posting

    H1: There is a relationship between an individuals family status and his/her

    willingness to accept a foreign posting= 0.05

    The output of the Excel tool for Chi-squared Expected Value Calculations is shownbelow.

    Chi-Squared Expected Values Calculations

    Chi-squared teststatistic 5.474924

    # of expected values

  • 8/12/2019 ch12-solns-all_skuce_2e

    24/30

    Instructors Solutions Manual - Chapter 12

    17. H0: The absences are equally distributed across the five working days of the week.

    H1: The absences are not equally distributed across the five working days of theweek.

    = 0.05

    There are 48 absences in total, in the sample. If the absences are equally distributedacross the five working days of the week, then we would expect each of the five days

    to have 48/5 = 9.6 absences.

    625.126.9

    )6.916(

    6.9

    )6.97(

    6.9

    )6.94(

    6.9

    )6.96(

    6.9

    )6.915()( 222222

    2

    i

    ii

    e

    eoX

    p-value = P(X2> 12.625)=0.013261 (using Excels CHITEST).

    Using the table, for four degrees of freedom, we see 0.010 < P(X2> 12.625) < 0.025.

    Reject H0. There is enough evidence to suggest that the absences are not equally

    distributed across the five working days of the week.

    18. H0: There is no relationship between gender and preferred movie type.

    H1: There is a relationship between gender and preferred movie type.

    = 0.04

    This problem could be done manually, of course. The output of the Excel tool for

    Chi-squared Expected Value Calculations is shown below.

    Chi-Squared Expected Values Calculations

    Chi-squared test statistic 10.8983

    # of expected values

  • 8/12/2019 ch12-solns-all_skuce_2e

    25/30

    Instructors Solutions Manual - Chapter 12

    19. H0: The proportions of workers who travel to work via the different methods are the

    same for the software firm and the accounting firm.H1: The proportions of workers who travel to work via the different methods at the

    software firm are different from the proportions of workers who travel to work

    via the different methods at the accounting firm.

    = 0.05

    The output of the Excel tool for Chi-Squared Expected Value Calculations is shown

    below.

    Chi-Squared Expected Values Calculations

    Chi-squared test statistic n/a

    # of expected values

  • 8/12/2019 ch12-solns-all_skuce_2e

    26/30

    Instructors Solutions Manual - Chapter 12

    Since the expected values are now all 5, we can proceed. The p-value is verysmall, at 0.00045. We have very convincing evidence that the proportions of

    workers who travel to work via the different methods at the software firm are

    different from the proportions of workers who travel to work via the different

    methods at the accounting firm.

    20. H0: The distribution of preferences for beer, wine and other alcoholic drinks is the

    same for males and females.H1: The distribution of preferences for beer, wine and other alcoholic drinks is

    different for males and females.

    = 0.05

    The output of the Excel tool for Chi-Squared Expected Value Calculations is shown

    below.

    ChiSquaredExpectedValuesCalculations

    Chisquaredteststatistic 0

    #ofexpectedvalues

  • 8/12/2019 ch12-solns-all_skuce_2e

    27/30

    Instructors Solutions Manual - Chapter 12

    All of the expected values are 5, so we can proceed.

    X2= 1.827

    From the table (degrees of freedom = k 1 = 4), we see that p-value > 0.100.

    Using CHITEST, we see that p-value = 0.7676.Fail to reject H0. There is insufficient evidence to infer that the proportions of mixed

    nuts are not as specified.

    22. H0: p = 0.50

    H1: p > 0.50

    = 0.025

    = 190/374 = 0.50802139p

    n = 374

    Sampling is done without replacement. The company presumably produces a

    significant quantity of mixed nuts, so the sample is presumably not more than 5% of

    the population. This means the binomial distribution is still the appropriateunderlying model. In this case, we are presuming that one package of mixed nuts

    constitutes a random sample.

    np = 374(0.50) = 187

    nq = 374(1 0.50) = 187

    Both are 10, so the sampling distribution of will be approximately normal, with

    a mean of 0.50, and a standard error of

    p

    025854384.0374

    )50.0)(50.0(

    n

    pqp .

    3783.0

    6217.01

    )31.0z(P

    374

    )50.0)(50.0(

    50.0374

    190

    zP

    )

    374

    190p(P

    p-value = 0.3783 > = 0.025Fail to reject H0. There is insufficient evidence to infer that there are more than 50%

    peanuts in the mixed nuts packages.

    Copyright 2011 Pearson Canada Inc. 347

  • 8/12/2019 ch12-solns-all_skuce_2e

    28/30

    Instructors Solutions Manual - Chapter 12

    23. H0: The proportions of types of nuts are the same for the two companies.

    H1: The proportions of types of nuts are different for the two companies.

    = 0.05

    The output of the Excel tool for Chi-Squared Expected Value Calculations is shown

    below.

    Chi-Squared Expected ValuesCalculations

    Chi-squared test statistic 2.036656

    # of expected values 10AApn

    =184 >10AA qn

    =375 >10BBpn =363 > 10BB qn

    Since the null hypothesis is that there is no difference in the proportions, we can pool

    the sample data to estimate .p

    Copyright 2011 Pearson Canada Inc. 348

  • 8/12/2019 ch12-solns-all_skuce_2e

    29/30

    Instructors Solutions Manual - Chapter 12

    508093525.0738374

    375190p

    z-score = - 0.003

    P(z -0.003) 50%Fail to reject H0. There is insufficient evidence to suggest that there is a difference in

    the proportions of peanuts in the mixed-nuts packages of the two companies.

    25. The Excel template output is shown below.

    ConfidenceIntervalEstimatefor

    theDifferenceinPopulation

    Proportions

    ConfidenceLevel

    (decimal

    form) 0.9

    Sample1Proportion 0.50802

    Sample2Proportion 0.50813

    Sample1Size 374

    Sample2Size 738

    n1p1hat 190

    n1q1hat 184

    n2p2hat 375

    n2q2hat 363

    Arenp

    and

    nq

    >=10? yes

    UpperConfidenceLimit 0.05209

    LowerConfidenceLimit 0.0523

    With 90% confidence, we estimate the interval (-0.0523, 0.0521) contains the truedifference in the proportion of peanuts in the mixed-nuts packages of the two

    companies.

    This confidence interval is wider than the confidence interval that would correspondto the hypothesis test in the previous exercise. Since we failed to reject the

    hypothesis of no difference in that test, we would expect that narrower confidence

    interval to contain zero. The wider confidence interval for this exercise, then, wouldalso contain zero.

    26. You cannot use the Chi-square test on the weights of the different-coloured candies

    directly. The Chi-square test works with discrete qualitative data, and weights arecontinuous quantitative data. As well, it is important to use the correct counts for the

    test. Don't be lazy!

    Copyright 2011 Pearson Canada Inc. 349

  • 8/12/2019 ch12-solns-all_skuce_2e

    30/30

    Instructors Solutions Manual - Chapter 12

    ghts into an approximate number of candies, you can proceed,although you are only approximating. So, for example, if you knew each candy

    ppose the weight breakdown was as follows:

    Red Yellow Green Black Orange Total

    If you convert the wei

    weighed 1.5 grams, you could convert the weights for each colour into a number of

    candies.

    Try it! Su

    Weight 62 46 58 39 45 250

    Use Excel to do a Chi-square test for this data set. Then divide each of the weightsby 1.5 grams to get the number of candies of each colour, and repeat. You will see

    that you do not get the same Chi-square statistic or p-value for the two versions.

    Only the second version, based on counts, is correct.