DATAEXP. SMLeft-handed 36 35 28 26 20 mean=27 stdev=5.83 var=34Right-handed 38 30 33 23 26 mean=30 stdev=5.87 var=34.5Difference -2 5 -5 3 -6 mean=-3 stdev=3.67 var=13.5DS350 – QUANTITATIVE METHODS FOR BUSINESS DECISIONSSPRING SEMESTER 2004“Really Big Statistics Party”(known to the unenlightened as a Final Exam)Answer the following questions in the space provided. SHOW YOUR WORK. Relative problemweights are given in brackets; these total 100 points. Unless otherwise indicated, use the traditionalconfidence level of 95% and the traditional significance level of =.05.You get two points for spelling your name (correctly!) at the top of the page. The word “Pledged”before your name is a reaffirmation of your ongoing commitment to the Stetson Honor System.Enjoy!!Question 1 [5 points]:Anastasia Romanova is testing whether brain damage causes cell phone use. She gets a p-value of .846. What conclusion should she draw?_____ accept the null hypothesis _____ accept the alternative hypothesis_____ reject the null hypothesis _____ not reject the null hypothesis_____ reject the alternative hypothesis _____ not reject the alternative hypothesisQuestion 2 [5 points]:Continuing with the previous problem: Which of the following best expresses the outcome of Anastasia’s experiment?_____ There is enough evidence to believe brain damage causes cell phone use._____ There is enough evidence to believe brain damage does not cause cell phone use._____ There is not enough evidence to believe brain damage causes cell phone use._____ There is not enough evidence to believe brain damage does not cause cell phone use.Question 3 [4 points; 1 point each]:Indicate whether each of the following statements is TRUE or FALSE.a) One disadvantage of mail surveys over face-to-face interviews is that they tendto have a higher cost. TRUE FALSEb) A major reason for the failure of the 1936 Literary Digest poll was itssmall sample size. TRUE FALSEc) An upward-sloping straight line on a log-scale graph indicates the “Y” variable in increasing at a decreasing rate. TRUE FALSEd) The decision on whether to use a one- or two-tailed test is best made after the data have been collected. TRUE FALSEQuestion 4 [2 points]:Clyde Arthur Fazenbaker has computed a Student’s t statistic of 0. Which of the following should Clyde Arthur conclude from this result?_____ His results are highly statistically significant._____ His sample data exactly match his null hypothesis._____ He needs to get a bigger sample size._____ He made a computational mistake; a t statistic cannot be 0._____ None of the above.Question 5 [6 points, divided as indicated]:Mortimer Snodgrass has data on the expected return (in percent) and risk (beta coefficient) for a sample of 500 stocks. He knows that “return is a function of risk” and that the security marketline is the regression line relating return and risk. a) [2] For Mortimer’s sample, the mean and variance of the risk data are 1 and .1, respectively, while the mean and variance of the return data are 8 and 4, respectively. The covariance between these two quantities is .11. The slope of the security market line will be which of the following:_____ .11/.1 _____ .11/4 _____ .11/(.1*4)_____ .11/√.1 _____ .11/√4 _____ .11/√(.1*4)b) [4] Mortimer also wishes to test whether the intercept of his security market line corresponds with the risk-free rate, as measured by the 90-day Treasury bill. Which of the following standard deviations should be used, in computing the test statistic?_____ s.d. for a mean _____ s.d. for a proportion_____ s.d. for a correlation _____ s.d. for a slope_____ s.d. for a predicted average _____ s.d. for a predicted individualQuestion 6 [1 point]:The mean square error is most similar to which of the following statistics?_____ chi-square statistic _____ r-squared _____ variance_____ Student’s t _____ correlation _____ slopeQuestion 7 [8 points, divided as indicated]:Throckmorton P. Addlepate IV truly believes that sleeping with statistics tables under the pillow increases a student’s score on the “big quiz.” For his senior research project, he decides to demonstrate this to some skeptical members of the faculty. He recruits forty-two fellow students forhis study. Half are assigned at random to the treatment group, the other half to a control group. Thestudents in the treatment group are given a plain white envelope with a page of statistics tables inside. Students in the control group get a plain white envelope containing a placebo – a blank sheet of paper. Both groups are instructed to get lots of sleep the night before the “big quiz” (of course, they would anyway), and to sleep with the envelope under the pillow. After the “knowledgefestival” is over, Throckmorton obtains the grades (0 to 100 scale, though of course everyone has at least double digits) for each student.a) [2] This is an example of which of the following?_____ controlled experiment _____ observational studyb) [3] State Throckmorton’s null and alternative hypotheses, in words and in symbols.c) [3] What would a Type I error be, in this context?Question 8 [16 points; 4 each part]:In each of the following, indicate what would be the best statistical procedure to use.a) Wilhelmina Tempusfugit notes that the most recent Student Government Association election at Stetson University was somewhat controversial. She asks a random sample of 200 students about their choice in the election (Canty, Davis, Urscheler, or didn’t vote), and their major (Arts & Sciences, Business, Music). What test should she do to check whether there’s a relation between electoral choice and major?_____ paired data test on means _____ paired data test on proportions_____ independent samples test on means _____ independent samples test on proportions_____ test on correlations _____ chi-square testb) Muford Thrildsnickle is conducting a study to determine whether students are more likely to fall asleep in statistics or accounting class. He asks the Institutional Research Office for the names of twenty students who are taking both classes this semester, and contacts them to ask whether they have fallen asleep in stats and/or accounting class this term. What test should he conduct?_____ paired data test on means _____ paired data test on proportions_____ independent samples test on means _____ independent samples test on proportions_____ test on correlations _____ test on