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3)A real estate agency, located in a metropolitan area in the northeastern U.S., kept
data on the various types of properties purchased in the area. Historically, 15% of
purchases were for condominiums, 30% were for townhouses, 40% for single family
homes, 10% for commercial properties and 5% for land. With changing
demographics, the agency wondered if the current distribution matches the
historical distribution. Recent data showed the following:
distribution. HA: The current distribution of property sales differs from the
historical distribution.
b. What is the value of the test statistic and its associated P-value? b. Assuming
that the null hypothesis is true, we use the historical distribution to find
the expected frequencies. For example, the expected frequency for
condos is (0.15) (325) = 48.75. Expected frequencies are shown in the
table above next to observed frequencies. 2 = 62.538 P-value < 0.0001
c. State the conclusion at = 0.05. c. The P-value is very small (less than ),
so we reject the null hypothesis. There is strong evidence that the current
distribution of property sales differs from the historical distribution.
(c) Judging by the size of the slope coefficient, there is strong evidence of
unconditional convergence for the OECD countries. The regression R2 is
quite high, given that there is only a single explanatory variable in the
regression. However, since we do not know the sampling distribution of
the estimator in this case, we cannot conduct inference.
A company that sells eco-friendly cleaning products is concerned that only 19.5% of
people who use such products select their brand. A marketing director suggests that
the company invest in new advertising and labeling to strengthen its green image.
The company decides to do so in a test market so that the effectiveness of the
marketing campaign may be evaluated. Based on data collected in the test market,
the company constructed a 98% confidence interval for the proportion of all
consumers who might buy their brand. The resulting interval is 16% to 28%. What
conclusion should the company reach about the new marketing campaign?
A. The data do not provide convincing evidence that the marketing
campaign increases the percentage of customers for the company's
products.
B. The data do provide convincing evidence that the marketing campaign increases
the percentage of customers for the company's products.
C. The new marketing campaign is effective in increasing the percentage of
customers buying their brand.
D. The company should launch the new marketing campaign.
E. None of the above.
A report on the U.S. economy indicates that 28% of Americans have experienced
difficulty in making mortgage payments. A news organization randomly sampled
400 Americans from 10 cities named the "fastest dying cities in the U.S." (Forbes
Magazine, August 2008) and found that 136 reported such difficulty. Does this
indicate that the problem is more severe among these cities? The correct null and
alternative hypotheses for testing this claim are:
A. H0 : p = 0.28 and HA : p > 0.28
B. H0 : p = 0.28 and HA : p < 0.28
C. H0 : p = 0.28 and HA : p 0.28
D. H0 : p 0.28 and HA : p = 0.28
E. H0 : p > 0.28 and HA : p = 0.28
A report on the U.S. economy indicates that 28% of Americans have experienced
difficulty in making mortgage payments. A news organization randomly sampled
400 Americans from 10 cities named the "fastest dying cities in the U.S." (Forbes
Magazine, August 2008) and found that 136 reported such difficulty. Does this
indicate that the problem is more severe among these cities? The correct value of
the test statistic for testing this claim is
A. z = -1.28
B. z = -2.67
C. z = 2.67
D. z = 1.96
E. z = -1.28
A national study report released by the Center for Studying Health System Change
(HSC) in 2010, indicated that 20.9% of Americans were identified as having medical
bill financial issues. Many people in families with problems paying medical bills in
2010 experienced severe financial consequences from their medical debt, with
about two-thirds reporting problems paying for other necessities and a quarter
considering bankruptcy, the study found. What if a news organization randomly
sampled 400 Americans from 10 cities and found that 90 reported having such
difficulty. A test was done to investigate whether the problem is more severe among
these cities. The p-value for this test is
A. 0.2156
B. 0.0539
C. 0.1078
D. 0.4312
E. None of the above.
Let's say a group of 17 average ninth grade students are assigned to a new style of
science teaching. Their performance before entering the new classroom was
average, though as a result of the new style of classroom instruction we believe
they should score higher than average on tests of science knowledge if the new
curriculum is working. After 6 weeks in the classroom, we give them a test
assessing their knowledge of basic science concepts to see if the teaching has been
effective. We find the following: x(bar) = 84, S.D. = 16, N = 17
We know from studies done at UCLA that ninth graders in general score an average
of 78 on this exam (0 = 78). Is the difference we observed after six weeks of
instruction consistent with what is likely under conditions of chance alone of does it
reflect a true difference, a better performance on the test than average?
Cleveland metropolitan
area to learn what percent of their spending goes toward housing. Suppose that the
study finds x-bar = 30.2% for the 40 households in the sample.
Take to be the mean percent of spending devoted to housing among all Cleveland
households.
Type I Error The error of rejecting Ho when it is true. (finding a guilty man
innocent)
Type I Error Example researchers claiming that the new system improves
the miles-per-gallon rating when in fact the new system is not any better than
the current system
If the cost of making a Type I error is not too high: larger values
of (alpha symbol) are typically used. (.25)
P-Value a probability that provides a measure of the evidence against the null
hypothesis given by the sample
Critical Value a value that is compared with the test statistic to determine
whether Ho should be rejected.