Question

In: Economics

II-(7 pts) A city wants to know if a new advertising campaign to make citizens aware...

II-(7 pts) A city wants to know if a new advertising campaign to make citizens aware of the dangers of

driving after drinking has been effective. They count the number of drivers who have been stopped with

more alcohol in their systems than the law allows for each day of the week in the week before and the

week a month after the campaign starts. Let ?? be the difference between the number of drivers caught

with excessive alcohol in their systems before and after the campaign on each calendar day in any given

week. Treat these as a random sample from a Normal (?, ??) distribution.

Information collected randomly during the seven days of a week before and a week a month after the

campaign, indicate a mean difference ?̅ = −2 , and a standard deviation ? = 3.162.

a. Obtain a 95% confidence interval for the true average difference in number of drivers stopped with

excess alcohol in their systems. (1pt)

b. You are asked by the city administration to study whether the advertising campaign has been

effective. State in terms of , the relevant null and alternative hypothesis in conducting this study. (1pt)

c. Compute the t statistic for testing ?? against ?? (1pt)

d. Obtain the p- value for the test (1pt)

e. Do you reject ?? at the 5% level? At the 1% level? (1pt)

f. Provide a short summary of your conclusions from this study. Comment on the practical versus

statistical significance of this estimate. (2pts)

w

1 w

b R b R

b R w

1 w s b R  wR  (1 w)R

Solutions

Expert Solution

Given data:

A city wants to know if a new advertising campaign to make citizens aware of the dangers of driving after drinking has been effective.

Let

? = be the difference between the number of drivers caught

Treat these as a random sample from a Normal (?, ??) distribution.

Mean difference ?̅ = −2

Standard deviation ? = 3.162.

a) Obtain a 95% confidence interval for the true average difference in number of drivers stopped with excess alcohol in their systems:

Sample mean difference (xbar) = -2

Sample Standard deviation ? = 3.162

Degrees of freedom = 7-1 = 6

            T for 95% confidence interval = 2.446899

            Confidence interval = xbar±ts/n

                                            = -2± 2.4469*3.162/7

            Confidence interval = (4.9244, 0.9243)

b) State in terms of , the relevant null and alternative hypothesis in conducting this study:

A hypothesis is a suggested solution for an unexplained occurrence that does not fit into current accepted scientific theory.

                        Null hypothesis: H0 :µd = 0

                        Alternate hypothesis: Ha :µd > 0

c) the t statistic for testing ?? against ??:

t = xbar- µd/sn

= -2-0/3.162/7

t = -1.6735

d) Obtain the p- value for the test:

P value for t =-1.6735

Degree of freedom = 6 is 0.072979

e) Do you reject ?? at the 5% level? At the 1% level?

At 5% significance levels as a P value (0.072979)>0.65; therefore we can reject the Null Hypothesis.

At 1% significance level as a P value (0.072979)>0.01; therefore we can reject the Null Hypothesis.

f) In summary we can say that there is no efficient evidence to say that the number of drivers caught with the excessive alcohol has reduced.


Related Solutions

II-(7 pts) A city wants to know if a new advertising campaign to make citizens aware...
II-(7 pts) A city wants to know if a new advertising campaign to make citizens aware of the dangers of driving after drinking has been effective. They count the number of drivers who have been stopped with more alcohol in their systems than the law allows for each day of the week in the week before and the week a month after the campaign starts. Let ?௜ be the difference between the number of drivers caught with excessive alcohol in...
A city wants to know if a new advertising campaign to make citizens aware of the...
A city wants to know if a new advertising campaign to make citizens aware of the dangers of driving after drinking has been effective. The accompanying table shows the number of drivers who have been stopped with more alcohol in their systems than the law allows for each day of the week in the week before and the week a month after the campaign starts. Assume that the data from each population is Normally distributed. Complete parts a through i...
A city wants to know if a new advertising campaign to make citizens aware of the...
A city wants to know if a new advertising campaign to make citizens aware of the dangers of driving after drinking has been effective. The accompanying table shows the number of drivers who have been stopped with more alcohol in their systems than the law allows for each day of the week in the week before and the week a month after the campaign starts. Assume that the data from each population is Normally distributed. Complete parts a through i...
In a certain city, 15% of senior citizens have used Uber. To see if an advertising...
In a certain city, 15% of senior citizens have used Uber. To see if an advertising campaign was effective, a researcher samples 200 senior citizens and finds that 40 have used Uber. Testing at significance level α = .05, find: H0 and Ha: Sample proportion = Standard error (S.E.) assuming H0 is true = z-value = p-value = Conclusion: Group of answer choices do not reject H0 50-50 chance advertising campaign was effective .05 chance advertising campaign was effective reject...
A producer of electronic clocks, ClockRUs (CRU) wants to create an advertising campaign to stimulate their...
A producer of electronic clocks, ClockRUs (CRU) wants to create an advertising campaign to stimulate their demand. Based on CRU?s experience, if they spend $250,000 on newspaper and magazines now, their sales should increase by $180,000 in the first year, and $150,000 in the second year. However, with the changing interest rate, and profitability concern, CRU must have 9% rate of return. A) What is the Present Value of year 1 sales increase (cash flow in year 1)? (2 points)...
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The...
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new as campaign can be kept within the original budget allocation is 0.30. Assuming that the two events are independent, the probability that the cost is kept within budget or the campaign will NOT increase sales is ____. Answer given 0.440
An advertising company wants to know whether the size of an advertisement and the color of...
An advertising company wants to know whether the size of an advertisement and the color of the advertisement make a difference in the response of magazine readers. A random sample of readers shown ads of 4 different colors and 3 different sizes. Assume that the ratings follow the normal distribution. The rating is shown in the following table: Size of Ad Color of Ad Red Blue Orange Green Small 4 3 3 8 Medium 3 5 6 7 Large 6...
Use the 7 steps in an advertising campaign for one of your favorite product. Clearly label...
Use the 7 steps in an advertising campaign for one of your favorite product. Clearly label each step, and provide details for each.
The American Heart Association is about to conduct an anti-smoking campaign and wants to know the...
The American Heart Association is about to conduct an anti-smoking campaign and wants to know the fraction of Americans over 36 who smoke. Step 1 of 2: Suppose a sample of 632 Americans over 36 is drawn. Of these people, 430 430 don't smoke. Using the data, estimate the proportion of Americans over 36 36 who smoke. Enter your answer as a fraction or a decimal number rounded to three decimal places then calculate lower and upper endpoints
The American Heart Association is about to conduct an anti-smoking campaign and wants to know the...
The American Heart Association is about to conduct an anti-smoking campaign and wants to know the fraction of Americans over 42 who smoke. Step 2 of 2: Suppose a sample of 897 Americans over 42 is drawn. Of these people, 637 don't smoke. Using the data, construct the 95%confidence interval for the population proportion of Americans over 42 who smoke. Round your answers to three decimal places.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT