ECON 2331: Economic and Business Statistics 2 1

Assignment 2 (75 marks; 5%)

Toreceivefullmarks,youneedtoshowallyourwork.
1. Socialnetworkingisbecomingmoreandmorepopulararoundtheworld.
PewResearchCenterusedasurveyofadultsinseveralcountriesto
determinethepercentageofadultswhousesocialnetworkingsites(USA
Today,February8,2012).AssumethattheresultsforsurveysinGreatBritain,
Israel,Russia,andUnitedStatesareasfollows:(31markstotal)

Country

Great Israel Russia United

States
Britain

Use Social Yes 344 265 301 500

Networking
Sites No 456 235 399 500

a. Statethenullandalternativehypotheses.(2marks)
b. Conductatesttodeterminewhethertheproportionofadultsusingsocial
networkingsitesisequalforallfourcountries.Whatisthedegreesof
freedom?(10marks)
c. Whatisthepvalue?(2marks)
d. Usinga5%levelofsignificance,whatisyourconclusion?(2marks)
e. Whatarethesampleproportionsforeachofthefourcountries?(2marks)
f. Whichcountryhasthelargestproportionofadultsusingsocial
networkingsites?(2marks)
g. Usinga5%levelofsignificance,conductmultiplecomparisontests
amongthefourcountries.Whatisyourconclusion?Whatisthedegrees
offreedom?(11marks)

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2 Assignment 2

2. Basedonsalesoverasixmonthperiod,thefivetopsellingcompactcarsare
ChevyCruze,FordFocus,HyundaiElantra,HondaCivic,andToyotaCorolla
(Motor Trend, November 2, 2011).A sample of compact car sales inChicago
showedthefollowingnumberofvehiclessold:(17markstotal)

Cars Vehicles Sold

ChevyCruze 108

FordFocus 92

Hyundai 64
Elantra

HondaCivic 84

ToyotaCorolla 52

a. Stateyournullandalternativehypotheses.(2marks)
b. Useagoodnessoffittesttodetermineifthesampledataindicatethatthe
marketsharesforthefivecompactcarsinChicagoaredifferentthanthe
marketsharesreportedbyMotorTrend.Showallthestepsinyour
calculationsofthistest,includingthedegreesoffreedom.(9marks)
c. Usinga5%levelofsignificance,whatisthepvalueforthistest?(2marks)
d. Whatisyourconclusion?(2marks)
e. Whatmarketsharedifferencesfromothers,ifany,existinChicago?
(2marks)

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ECON 2331: Economic and Business Statistics 2 3

3. Wewanttodetermineifthefollowingsamplecomesfromanormal
distribution:(15markstotal)

105 260 314 400 520 280 270 516 419 520

300 306 115 200 208 420 438 511 708 300

418 110 410 312 360 420 519 702 690 518

310 314 418 316 412 510 700 650 670 612

516 480 490 504 518 460 600 680 692 600

a. Computethemeanandthestandarddeviation.(3marks)
b. Computetheteststatistic.Hint:dividethedistributioninto10equal
intervals.(8marks)
c. At95%confidenceusingthecriticalvalueapproach,testtodetermineif
thesamplecomesfromanormalpopulation.(2marks)
d. Computethepvalue.(2marks)

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4 Assignment 2

4. Priortothestartoftheseason,itwasexpectedthataudienceproportionsfor
thefourmajornewsnetworkswouldbeCBS28%,NBC35%,ABC22%and
CBC15%.Arecentsampleofhomesyieldedthefollowingviewingaudience
data:

Number of
Homes
CBS 850
NBC 980
ABC 670
CBC 500

Wewanttodeterminewhetherornottherecentsamplesupportsthe
expectationsofthenumberofhomesoftheviewingaudienceofthefour
networks.(12markstotal)
a. Clearlystatethenullandalternativehypothesestobetested.(2marks)
b. Computetheteststatistic.Showallthestepsinyourcalculationsofthis
testincludingthedegreesoffreedom.(6marks)
c. Thenullhypothesisistobetestedat95%confidence.Determinethe
criticalvalueforthistest.(2marks)
d. Whatdoyouconclude?(2marks)

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