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WCU ECO 252 - ECO 252 Exercise

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12/16/98 252zz98714. A consumer advocacy group compares the proportions of automobiles producer by three different manufacturers that need major repairs in the first three years of ownership. The results are as below:Manufacturer 1 Manufacturer 2 Manufacturer 3 10004511nx 10002722nx 5001833nxa. Test the hypothesis that the proportions for the first two manufacturers are equal at the 90% level. (5)b. Do a confidence interval for the difference between the first two manufacturers at the 95% level. (4)c. Test the hypothesis that the proportion that need repairs is greater for the first manufacturer than the second at the 90% level. (2)d. Find p-values for your results in a) and c). (2)e. Test the hypothesis that the proportions for all three manufacturers are equal at the 90% level.(6)Solution: From page 10 of the Syllabus Supplement:Interval for ConfidenceIntervalHypotheses Test Ratio Critical ValueDifference between proportions q p 1 p p z sp 2p p p 1 2sp qnp qnp 1 112 22HH :01:  p pp p00p p p0 01 020 or p0zp pp 0If pp qnp qnp 001 01102 022 Or use sp p p zcv p 02 If pp qpn n00 01 101 2 2122110nnpnpnp0100:H:H pppp  or 211210:H:H pppp  645.110.2z 045.100045111nxp 027.100027122nxp 018.027.045.21 pppNote: 036.500183p, a fact that we will not use in this form) 036.1000100027452122110nnpnpnp  00833.1000110001964.036.1121000nnqpp     00832.1000973.027.1000955.045.222111nqpnqpspa) (i)161.200833.018.0pppz. This is outside the interval 645.1 so reject 0H. or (ii)   0137.00833.645.1020pcvzpp. This interval does not include .018 so reject 0H. or (ii)   0137.018.00832.645.1018.2pszpp This interval does not include 0 so reject 0H.b)  0163018.00832.96.1018.2pszpp.8c)211210:H:H pppp  . this is the same as 0:H0:H10 pp 282.110. zUse thematerial in a) (i) 161.2zThis is above 1.282 so reject 0H. Or (ii)  011.00833.282.100pcvzpp . Since this is below .018, reject 0H. Or (iii)   .007.011.018.00832.282.1018.2pszpp this is above 0, so reject 0H.d) For a),     0308.48465.216.22 zP. For b),     0308.48465.16.2 zP912/16/98 252zz9871e)UniformityH :0 or 3210: pppH . OManuf. 1 Manuf. 2 Manuf. 3 Total rpRepaired 45 27 18 90 .036Not repaired 955 973 482 2410 .964Total 1000 1000 500 2500 1.000We get the items in E by multiplying the column totals by rp. For example 36.00 = .036(1000).EManuf. 1 Manuf. 2 Manuf. 3 Total rpRepaired 36.00 36.00 18.00 90 .036Not repaired 964.00 964.00 482.00 2410 .964Total 1000.00 1000.00 500.00 2500 1.000 O E EO2 45 36 56.250 27 36 20.250 18 18 18.000 955 964 946.084 973 964 982.084 482 482 482.000 2500 2500 2504.668 We now compute 668.42500668.250422nEO . Since our degrees of freedom are     2131211  cr (ris number of rows and c is number of columns), we test this against  9915.52205.. Since our computed 2 is less than 2 from the table, we accept 0H.1012/16/98 252zz98715.a. A restaurant owner suspects that there is a pattern to when couples enter her restaurant. Older couples seem to come in earlier and younger later. One night she records the apparent age of couples from 5:30 to 10:00 PM (O means ‘older’ and Y means ‘younger’) and gets the following pattern:OOOOOOYOOOOOOYYYOYYYYYYOYYYOYYYIs this random? Assume that the significance level is 5%. (5) b. Use a Kolmogorov-Smirnov test to find if the number of arrivals over 100 days follows a Poisson distribution with a mean of 3. (5)Arrivals 0 1 2 3 4 5 6Number of Days 6 18 32 24 11 2 7 c. Suppose that in b) the null hypothesis had been ‘Poisson’ with no indication of the mean. Choose a method and do the problem with this new hypothesis. (6)Solution:a)15,15,1021 nnr. From the table, the critical values of rare 10 and 16, so we reject RandomnessH :0.b) A table showing computations for a) and b) appears below. For the K-S computations, we find the cumulative expected distribution eFfrom the Poisson(3) table. To get the cumulative observed distribution oF, we divide O by nand add the results. x OxOeFnO oFD  xP E 0 6 0 .04874 .06 .06 .0102 .082085 8.208 1 18 18 .19915 .18 .24 .0408 .205213 20.521 2 32 64 .42319 .32 .56 .1368 .256516 25.652 3 24 72 64723 .24 .80 .1527 .213763 21.376 4 11 44 .81526 .11 .91 .0947 .133602 13.360 5 2 10 .91608 .02 .93 .0132 .066801 6.680 6 7 42 .96649 .06 1.00 .0335 .027834 2.783Total 100 250 1.00 Since the maximum difference is .1527 and the 5% critical value from the table is 136.10036.136.1n, where  On, we reject  3:0PoissonH.c) The only possible method if parameters are unknown (except in the case of the normal distribution) is the Chi-squared method. We computed the mean by summing xO and dividing by n. In this case, our mean is 250 divided by 100 or 2.5. E is computed by looking up probabilities under the Poisson(2.5) distribution and multiplying them by n. O E EO2 6 8.208 4.3860 18 20.521 15.7887 32 25.652 39.9189 24 21.376 26.9461 11 13.360 9.0569 2 6.680 0.5988 7 2.783 17.6069 100 98.580 114.3023 We now compute 2023.41002023.11422nEO . Since our degrees of freedomare equal to the number of lines minus 1 minus the number of parameters estimated from the data = 7 - 1 -111 = 5, we test this against  0705.115205.. Since our computed 2 is less than 2 from the table, we accept PoissonH


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