A marketing research firm suspects that a particular product has higher name recognition among college graduates than among high school graduates. A sample from each population is selected, and each asked if they have heard of the product in question. A summary of the sample sizes and number of each group answering yes'' are given below:

College Grads (Pop. 1):High School Grads (Pop. 2):n1=86,n2=85,x1=52x2=37 The company making the product is willing to increase marketing targeted at high school graduates if the difference between the two groups is at least 5%. Is there evidence, at an α=0.081 level of significance, to support such an increase in marketing? Carry out an appropriate hypothesis test, filling in the information requested.

A. The value of the standardized test statistic:

Note: For the next part, your answer should use interval notation. An answer of the form (−∞,a) is expressed (-infty, a), an answer of the form (b,∞) is expressed (b, infty), and an answer of the form (−∞,a)∪(b,∞) is expressed (-infty, a)U(b, infty).

B. The rejection region for the standardized test statistic:

C. The p-value is

D. Your decision for the hypothesis test:

A. Do Not Reject H1.

B. Reject H1.

C. Reject H0.

D. Do Not Reject H0

4.

Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000. Nevertheless, Billy will need to borrow $240,000 at an interest rate of 7% per year in case he decides to make this investment. Should Billy purchase this house?

A) No, he will lose money.

B) Yes, his profits will be zero.

C) No, his profits will be positive but close to zero.

D) Yes, he will profit from this investment.

5.

Suppose that CSUSM offers you two payment plans for your last two years of college. You may either pay tuition of $20,000 per year at the beginning of each of the next two years, or pay just $38,000 before the start of freshman year. What would the interest rate have to be for you to be indifferent between these two deals? Explain.

6.A major corporation hires high school students on a part-time basis. It offers a reward of $5,000 to any of its high school seniors who graduate college in four years. What is the present value of that reward to a student who just finished her junior year of high school (i.e., 5 years later to graduate college), assuming a nominal rate of interest of 8%?

Circle the cause/effect structure. Underline the causes and double underline the effects.

1. Based at years of scientific data, the majority of climate scientists now support the idea that climate change is a result of human activity.

2.   One effect of a mother’s heavy alcohol during pregnancy is a baby born with low birthweight.

3.   Bullying, which can be defined as the use of violent actions and / or threatening language to cause physical, social, or psychological harm, is a common cause of depression, social isolation, and low school performance in middle school students.

4. The theory of Natural Selection states that organisms change as a response to changes in their environment.

5. Regular visits to green spaces such as parks, forests, and rural areas have a positive effect on people’s moods.

6. Strong academic performance in elementary school is often attributed to the parents’ readiness to help their children with homework.

7. The overall health of a nation is directly linked to the health of the population. Therefore, governments need to take measures to ensure the people are healthy.

8. Because of extensive time living in China, some native speakers of English are highly proficient in Chinese.

9. Early voter registration usually results in better voter turnout.

10. Wet environments and hot weather are two factors that contribute to insect-borne illnesses.

Circle the cause/effect structure. Underline the causes and double underline the effects.

1. Based at years of scientific data, the majority of climate scientists now support the idea that climate change is a result of human activity.

2.   One effect of a mother’s heavy alcohol during pregnancy is a baby born with low birthweight.

3.   Bullying, which can be defined as the use of violent actions and / or threatening language to cause physical, social, or psychological harm, is a common cause of depression, social isolation, and low school performance in middle school students.

4. The theory of Natural Selection states that organisms change as a response to changes in their environment.

5. Regular visits to green spaces such as parks, forests, and rural areas have a positive effect on people’s moods.

6. Strong academic performance in elementary school is often attributed to the parents’ readiness to help their children with homework.

7. The overall health of a nation is directly linked to the health of the population. Therefore, governments need to take measures to ensure the people are healthy.

8. Because of extensive time living in China, some native speakers of English are highly proficient in Chinese.

9. Early voter registration usually results in better voter turnout.

10. Wet environments and hot weather are two factors that contribute to insect-borne illnesses.

a) At the supermarket, milk costs $2 per quart while cereal costs $5 per box.

1. In a diagram, measuring quarts of milk along the horizontal axis, draw the budget constraint of a consumer with an overall cash budget of $20.

2. In the diagram, illustrate how the consumer’s budget constraint changes if there is a two-for-one sale on cereal.

3. In the diagram, illustrate how the consumer’s budget constraint changes if the two-for-one sale on cereal applies only to the first 4 boxes.

b) A high-school student has a monthly budget of $80 to spend on music and burritos. Burritos cost $8 each, while songs are free after paying the Spotify monthly fee of $9.99.

1. In a diagram, measuring songs along the horizontal axis, draw the high-school student’s budget constraint.

c) A family has an yearly income of $50,000 to spend on the kids’ education or on all other goods.

1. In a diagram measuring dollars spent on education along the horizontal axis and dollars spent on all other goods along the vertical axis, draw the family’s budget constraint.

2. In your diagram, draw the family’s budget constraint if the family must pay a 10% income tax but receives a $5,000 school voucher.

Research results suggest a relationship between TV viewing habits of 5-year old children and their future performance at high school. Wright and Collins (1998) reported that children who regularly watched Sesame Street as children receives better grades than those had not watched the show as children. Suppose another researcher wants to replicate this study on 20 high school children. The researcher first surveyed the parents of the students to obtain information about their TV viewing habits during the times that the students were 5 years old. Based on the survey results researcher selects a sample of n=10 with a history of watching Sesame Street and n=10 that did not watch the program. The average high school grade is recorded for each student and the data are as follows:

How would the researcher test if there were a significant difference between the two groups of students? Use JASP to conduct an independent sample t-test. Write all the steps of hypothesis testing using t-test (as shown in the handout) and attach the document (WORD DOC) here.  

Jose and Emily work as auditors for the state of Texas. They have been assigned to the audit of the Lone Star School District. There have been some problems with audit documentation for the travel and entertainment reimbursement claims of the manager of the school district. The manager knows about the concerns of Jose and Emily, and he approaches them about the matter. The following Conversations takes place:

Manager: Listen, I've requested the documentation you asked for, but the hotel says it's no longer in its system.

Jose: Don't you have the credit card receipt or credit card statement?

Manager: I paid cash.

Jose: What about a copy of the hotel bill?

Manager: I threw it out.

Emily: That's a problem. We have to document all your travel and entertainment expenses for the city manager's office.

Manager: Well, I can't produce documents that the hotel can't find. What do you want me to do?

Questions: Multiple Choice

The manager seems to be failing in regard to which Pillar of Character?

A. Caring

B. Respect

C. Responsibility

D. Fairness

If Jose and Emily decide to report this incident to the school, they would be operating under which Pillar of Character?

A. Caring

B. Respect

C. Responsibility

D. Fairness

In 2002 the Supreme Court ruled that schools could require random drug tests of students participating in competitive after-school activities such as athletics. Does drug testing reduce use of illegal drugs? A study compared two similar high schools in Oregon. Wahtonka High School tested athletes at random and Warrenton High School did not. In a confidential survey, 8 of 132 athletes at Wahtonka and 29 of 111 athletes at Warrenton said they were using drugs. Regard these athletes as SRSs from the populations of athletes at similar schools with and without drug testing.

(a) You should not use the large-sample confidence interval. Why not?
Choose a reason. The sample sizes are too small. The sample sizes are not identical. The sample proportions are too small. At least one sample has too few failures. At least one sample has too few successes.

(b) The plus four method adds two observations, a success and a failure, to each sample. What are the sample sizes and the numbers of drug users after you do this?

Wahtonka sample size:      Wahtonka drug users:  
Warrenton sample size:      Warrenton drug users:

(c) Give the plus four 99.9% confidence interval for the difference between the proportion of athletes using drugs at schools with and without testing.
Interval:  to

Ten years ago the mean Math SAT score of all high school students who took the test in a small high school was 490, with a standard deviation of 80. This year, a researcher took the scores of a random sample of 16 students in the high school who took the SAT.
The mean score of these 16 students is (X bar) = 530. In addition, the researcher assumes that the population standard deviation continues to be σ = 80. The researcher will test if there is evidence that the scores in the district have changed with two approaches: (i) test of significance; and (ii) confidence interval.

1. Find H0 and Ha

2.z statistics

3.p value

4.What are your statistical conclusion and its interpretation? Use significance level, α = 0.05 (or 5%).

5.Find a 95% confidence interval for µ and interpret it. ( lower and upper bound)

6.Based on the hypotheses obtained in (a) and your 95% confidence interval for µ in (e), what is your conclusion? Is it the same as the conclusion of the test, i.e., (d)? Explain.

7.The researcher feels that the confidence interval for µ is too wide. So the researcher wonders how to increase of precision by decreasing the size of the confidence interval for µ. If the researcher can control only its sample size, what should be the researcher’s choice? How does it work? Explain.