Use the following for the next 4 questions: A nationwide survey of college students was conducted and found that students spend two hours per class hour studying. A professor at your school wants to determine whether the time students spend at your school is significantly different from the two hours. A random sample of fifteen statistics students is carried out and the findings indicate an average of 2.1 hours with a standard deviation of 0.24 hours. Using the 0.10 level of significance, can we conclude that the time students spend studying at your school is different from 2 hours?
H0: U= 2 Min
H1: U=/ 2 Min
1) What Kind of test is this?
One-tail (left tail)
Two-tail
One-tail (right tail)
2) What is the critical value? State the positive one.
3) What is the value of the test statistic? Round to three decimal places.
4) What is your decision regarding the null hypothesis?
e) What is your conclusion?
1) There is not a difference in amount of time spent studying at your school
2) There is a difference in the amount of time spent studying at your school
In: Statistics and Probability
The College Board National Office recently reported that in 2011–2012, the 547,038 high school juniors who took the ACT achieved a mean score of 515 with a standard deviation of 129 on the mathematics portion of the test (http://media.collegeboard.com/digitalServices/pdf/research/2013/TotalGroup-2013.pdf). Assume these test scores are normally distributed.
In: Math
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Problem Set 1: Chi Square Test of Goodness of Fit Research Scenario: A political psychologist is curious about the effects of a town hall meeting on people’s intentions to support a state proposition that would legalize gambling. He interviews people as they leave and asks them whether their opinion about the proposition has changed as a result of the meeting. He records these frequencies in the table below. Using this table, enter the data into a new SPSS data file and run a Chi Square Test of Goodness of Fit to test whether the frequencies are equal across the categories. Create a bar chart to show the relationship between the variables. |
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Less likely to support |
No change |
More likely to support |
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25 |
12 |
9 |
In: Statistics and Probability
a. For the experiment in which the number of computers in use at a six - computer lab is observed, let B, C be the events defined as B = {3, 4, 5, 6}, and C = {1, 3, 5}. Give the event (B ^ C) using set notation (i.e using { } ).
b. Suppose that the probability of a person getting a certain rare disease is 0.0004 . Consider a town of 10,000 people. What is the approximate probability of seeing more than 3 new cases in a year?
c. To get to work, a commuter must cross train tracks. The time the train arrives varies slightly from day to day, but the commuter estimates he will be stopped 10% of work days. During a certain 5 - day work week, what is the probability that he gets stopped at least once during the week?
d. Suppose occurrences of sales on a small company’s website are modeled by a Poisson model with λ = 6/hour. What is the probability that the next sale will happen in the next 12 minutes?
In: Statistics and Probability
a. For the experiment in which the number of computers in use at a six - computer lab is observed, let B, C be the events defined as B = {3, 4, 5, 6}, and C = {1, 3, 5}. Give the event (B ^ C) using set notation (i.e using { } ).
b. Suppose that the probability of a person getting a certain rare disease is 0.0004 . Consider a town of 10,000 people. What is the approximate probability of seeing more than 3 new cases in a year?
c. To get to work, a commuter must cross train tracks. The time the train arrives varies slightly from day to day, but the commuter estimates he will be stopped 10% of work days. During a certain 5 - day work week, what is the probability that he gets stopped at least once during the week?
d. Suppose occurrences of sales on a small company’s website are modeled by a Poisson model with λ = 6/hour. What is the probability that the next sale will happen in the next 12 minutes?
In: Statistics and Probability
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Problem Set 1: Chi Square Test of Goodness of Fit Research Scenario: A political psychologist is curious about the effects of a town hall meeting on people’s intentions to support a state proposition that would legalize gambling. He interviews people as they leave and asks them whether their opinion about the proposition has changed as a result of the meeting. He records these frequencies in the table below. Using this table, enter the data into a new SPSS data file and run a Chi Square Test of Goodness of Fit to test whether the frequencies are equal across the categories. Create a bar chart to show the relationship between the variables. |
|
Less likely to support |
No change |
More likely to support |
|
25 |
12 |
9 |
In: Statistics and Probability
1. Suppose we would like to determine if the typical amount spent per customer for dinner at a new restaurant in town is more than $20.00. A sample of 49 customers over a three-week period was randomly selected and the average amount spent was $22.60. Assume that the standard deviation is known to be $2.50.
•Using a 95% confidence level of significance, would we conclude the typical amount spent per customer is more than $20.00?
•Discuss your interpretation of your findings.
2. Suppose an editor of a publishing company claims that the mean time to write a textbook is at most 15 months. A sample of 16 textbook authors is randomly selected and it is found that the mean time taken by them to write a textbook was 12.5. Assume also that the standard deviation is known to be 3.6 months.
•Assuming the time to write a textbook is normally distributed and using a 95% confidence level of significance, would you conclude the editor’s claim is true?
•Discuss your interpretation of your findings.
**Please show all work**
In: Statistics and Probability
You have decided to purchase a small tract of land for building a new home on the outskirts of town. You have some money available but need a loan of $18,000 to make the purchase. The land will be owner-financed over 4 years with end-of-year payments. The interest rate is 9%.
For each of the payback methods given, determine the present worth of the loan payments made by the borrower, using TVOM rates of 5%, 9%, and 13%
Method 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the loan period.
Method 2: Make equal principal payments, plus interest on the unpaid balance at the end of the period.
Method 3: Make equal end-of-period payments.
Method 4: Make a single payment of principal and interest at the end of the loan period.
Method 5: Pay $3,000 principal at the end of the first year, then $4,000, $5,000, and $6,000 at the end of years 2, 3, 4, plus the accumulated interest at the end of each interest period.
In: Accounting
1.In the 1980s and 1990s many states passed Any-Willing-Provider (AWP) legislations that require managed care organizations to accept any provider into their network if the provider agreestotheconditions,termsandreimbursementrates. Supposeyouarehiredbyanagency to estimate the effect of AWP legislation on state-level hospital and physician expenditures (EXP). You have state-level data on expenditures, year AWP law passed, and demographic and health characteristics spanning 1980 through 1998. Note that both EXP and AWPvary across years and states. The state-level demographic and health characteristics include population density, percent of the population of African American race, HMO market share, real per capita income and unemployment rate. Assume that data are available for 50 states.
A.[20 Points] What approach would you use to estimate the effect of the policy change (i.e.,AWP) on total hospital and physician expenditures? Specify your model (the equation and important assumptions), and then explain your estimation approach.
B. [10 Points] Do we need to worry about potential endogeneity in AWP? Explain.
Hint:
You have panel data on 50 states (n= 50) and 9 years (t = 9). In part (A), set-up a linear panel data model with dependent variable EXP and key explanatory variable AWPit, other regressors (population,....unemployment rate), year dummies, individual effects and the idiosyncratic error term. Note AWPit = 1 if state i passed the law (or the law was in effect) during year t. Depending on the assumptions you make, you can in principle use fixed effects, random effects or first difference. You need to explain your chosen approach. The FE estimator might be preferable, though.
For part (B), explain why the AWP legislation might be endogenous. Basically, if the AWP legislation is related to the underlying changes in health expenditures, then AWP may be endogenous. This is the so called policy endogeneity. If states implement the legislation in response to upward trends in health expenditures, then AWP may be correlated with the idiosyncratic error term.
In: Economics
Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company in its finance department. One of the major revenue-producing items manufactured by Conch Republic is a smartphone. Conch republic currently has one smartphone model on the market and sales have been excellent. The smartphone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smartphone has limited features in comparison with new models. Conch Republic spent $1.2 million to develop a prototype for a new smartphone that has all the features of the existing one but adds new features such as Wifi tethering. The company has spent a further $250,000 for a marketing study to determine the expected sales figures for the new smartphone. Conch Republic can manufacture the new smartphone for $210 each in variable costs. Fixed costs for the operation are estimated to run $5.3 million per year. The estimated sales volumes are 64,000, 106,000, 87,000, 78,000, and 54,000 per year for each of the next five years, respectively. The unit price of the new smartphone will be $515. The necessary equipment can be purchased for $38.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $5.8 million. Net working capital for the smartphones will be 20 percent of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC thus will occur first in year 1 with the first year’s sales. Conch Republic has a 22 percent corporate tax rate and a required return of 12 percent. Shelly has asked Jay to prepare a report that answers the following questions:
6) what is the payback period of the project?
7) What is the profitability index of the project?
8) What is the IRR of the project?
9) What is the NPV of the project?
10) How sensitive is the NPV to changes in the price of the new smartphone?
11) How sensitive id the NPV to changes in the quantity sold?
12) Should Conch Republic produce the new smartphone?
In: Accounting