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Attribution Non-Commercial (BY-NC)

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mean is given below. It shows the distribution of mean of 20 samples for sample sizes of five and 25 respectively

on the cooperative service English test. See Exhibit 1.

Exhibit 1

Distributions of Means of Twenty Samples

Drawn from a Normal Population with µ = 121.6 and σ = 37.15,

when n = 5, and n = 25

Number of Sales

Score Interval n=5 n = 25

140-144 3

135-139 1

130-134 2 1

125-129 2 5

120-124 1 6

115-119 2 5

110-114 1 3

105-109 4

100-104 2

95-99

90-94

85-89 1

80-84 1 _____

Total 20 20

Mean of twenty means 119.0 121.7

Standard deviation of twenty means 18.0 6.1

11. Suppose you are planning a sample of cat owners to determine the monthly average number of cans of cat

food purchased. The following standards have been set: a confidence level of 99 percent and an error of less than

five units. Past research has indicated the standard deviation should be six units. What would be the required

sample size?

Answer:

ZS

2

n

= E

E =5

S =6

Z = 2.57 at 99% confidence

2

( 2. 57) ( 6)

2

15. 42

5 =

5

n =

[3.084]2 = 9.5

n = 9.5

We should be asked why sample size is so low if the confidence level is at 99%. Of course, it is because such a large

magnitude of error is tolerable. Reducing the E to 1 increases sample size to 238.

2

( 2. 57) ( 6)

2

15. 42 237. 7

1 =

1

=

n =

12. In a survey of 500, 60 percent responded positively to an attitude question. Calculate a confidence interval at

95% to get an interval estimate for a proportion.

Answer

p = .6

n = 500

Z = 1.96 at 95% confidence

pq (. 6) ( . 4) .24

= = = . 0048 = . 0219

S = n 500 500

p

Confidence interval = p ± Z S

c.l. p

.6 ± (1.96)(.0219)

.6 ± .042924

13. In a nationwide survey a researcher expects 30% of the population will agree with an attitude statement. She

wishes to have less than 2% error and wishes to be 95% confident. What sample size is needed?

Answer

Z 2c .1. pq

n =

E

2

p = .3

q = .7

Z = 1.96

Z2 = 3.841

E = .02

E2 = .0004

( 3. 841) ( .3) ( . 7)

= 2016. 525

n = . 0004

n = 2017 by calculation

14. City Opera, a local opera company, wishes to take a sample of its subscribers to learn the average number of

years that people have been subscribing to it. The director of research expects the average number of years to be 12

and believes the standard deviation would be about two years (approximately one sixth of the range). She wishes to

be 95% confident in her estimate. What is the appropriate sample size?

Answer :First, let’s summarize the information available:

H : µ = 12

o

That is, the expected value of the average number of years subscribing to the opera is 12.

S=2

α = .05 because of the desire to be 95 percent confident.

There is not enough information to calculate the sample size. The researcher must know the acceptable magnitude

of error. Students will be forced to make this managerial decision on their own. (Many will not like this. Others

will mistakenly utilize µ as an estimate of E.)

Suppose one-half year is an acceptable error. Then, E = .5 and

ZS

2

n=

E

2

( 91. 96) ( 2)

.5

n=

2

3. 92

n= .5

n = (7.84)2

n = 60.68

15. A researcher expects the population proportion of Cubs fans in Chicago to be 80 percent. The researcher wishes

to have an error of less than five percent and to be 95 percent confident of an estimate to be made from a mail

survey. What sample size is required?

Answer:

Z = 1.96

E = 0.05

p = 0.8

q = 0.20

2 2

Z pq ( 1. 96) ( . 80) ( .20) ( 3. 8416) (.16) . 6146

2 = 2 = = = 245. 84

( . 05) ( . 0025)

n = E . 0025

n ≈ 246

What sample size would be required if a 99 percent confidence level were desired?

Z = 2.57

E = 0.05

p = 0.80

q = 0.20

2

( 2. 57) (. 80) ( . 20) ( 6. 6049) (.16) 1. 0567

2 = = = 422. 7

(. 05) . 0025 . 0025

n =

n ≈ 423

16. In a survey respondents were asked to respond to a statement asking if their

work was interesting. Interpret the frequency distribution in the SPSS output

below.

“My work is interesting”:

Category Code Absolute Relative Adjusted Cum.

Label frequency Frequency Frequency Frequency

(Percent) (Percent) (Percent)

Somewhat 2 303 11.2 29.1 91.5

true

Not very true 3 61 2.2 5.9 97.3

Not at all true 4 28 1.0 2.7 100

1673 61.6 Missing

------------- ------------- ---------------

Total 2715 100.0 100.0

Valid cases 1042 Missing cases 1673

Answer: In the above survey the respondents were asked to respond to a statement asking if their work was

interesting on a rating scale of “very true to not at all true”. However, it appears that even among most of the

respondents they rated very true. And only few replied for “not at all true”. The SPSS output gives the absolute

frequency of the observations, the valid percentage (the adjusted frequency as a percentage of the number of

respondents who provided a recorded answer rather than leaving the question blank) and the cumulative

percentage (which is calculated on the basis of missing cases). This table shows that 650 of the respondents in a

survey of 2715 responded that it was very true that working is interesting. The zero code (0) and the

corresponding relative frequency column indicate 61.6 percent of the respondents did not answer this question,

most likely because they were not employed outside the home. Therefore, the adjusted frequency percentage

figures are probably more representative from a percentage point of view. Thus, 62.4 percent answered very

true—working is interesting. Combining those who answered very true and somewhat true, the output shows

the cumulative frequency (among those who answered the question) for this statement is 91.5 percent.

Answer: A statistical hypothesis shall serve the purpose of either confirming or otherwise rejecting the theoretical,

unproven proposition or supposition (hypothesis) which tentatively explains certain facts or phenomena, through the

empirical evidence. A hypothesis is an unproven proposition or supposition which tentatively explains certain facts

or phenomena. In its simplest form, a hypothesis is a guess. The sales manager may hypothesize that salespeople

highest in product knowledge will be the most productive salespeople. A personnel manager may believe that if

attitudes toward job security are changed in a positive direction, there will be an increase in employee retention.

With statistical techniques, we are able to decide whether or not our theoretical hypothesis is confirmed by the

empirical evidence.

Because scientists should be bold in conjecturing but extremely cautious in testing, statistical hypotheses are

generally stated in a null form. A null hypothesis is a statement about a status quo. It is a conservative statement

which communicates the notion that any change from what has been thought to be true or observed in the past will

be due entirely to random error. In fact, the true purpose of setting up the null hypothesis is to provide an

opportunity to nullify it.

18. What is significance level? How does a researcher choose a significance level?

Answer: Significance level is a critical probability in choosing between the null and the alternative hypotheses. It is

the probability level that is too low to warrant support of the null hypothesis.

The researcher chooses the significance level based on:

1. The acceptable values that reflect the difference from hypothesized mean in the null hypothesis

2. The range within which the difference is miniscule which would be explained on the basis of random sampling

error.

3. The significance level would also be based on the of research objectives (Significance at 0.01% level to 0.05%).

We must have some standard or decision rule to determine if, in fact, we should reject the null hypothesis and accept

the alternative hypothesis. Statisticians have defined the decision criterion as the significance level. The level of

significance determines the probability level—say, .05 or .01—that is to be considered too low to warrant support of

the null hypothesis. On the assumption that the hypothesis being tested is true, if the probability of occurrence of

the observed data is smaller than the level of significance, then the data suggest the null hypothesis should be

rejected. In other words, there was evidence to support contradiction of the null hypothesis, which is equivalent to

supporting the alternative hypothesis.

4. The researcher in a way decides “how much” he or she is willing to bet. More appropriately, the researcher

selects the odds of making an “incorrect” decision. Some researchers will take a 90 percent chance; others, more

conservative, will take 99 percent. By convention, 95 percent is often utilized.

Answer: Type I Error: An error caused by rejecting the null hypothesis when is true. The Type I error has the

probability of alpha (α ). A type I error occurs when the researcher concludes that there is a statistically significant

difference when in reality one does not exist.

Type II Error: An error caused by failing to reject the null hypothesis when the alternative hypothesis when the

alternative hypothesis is true. The probability of making this incorrect decision is called beta (β ). No error is

made if the null hypothesis is true and the decision is made to accept it. A correct decision is also made if the null

hypothesis is false and the decision is made to reject the null hypothesis.

*Unfortunately, without increasing sample size, the researcher cannot simultaneously reduce Type I and Type II

errors, because there is an inverse relationship between these two types of errors. Thus, reducing the probability of a

Type II error increases the probability of a Type I error.

20.Assume you have the following data: Ho: µ = 200, S = 30, n = 64, and X = 218. Conduct a hypothesis test at the .

05 significance level.

Answer:

H : µ = 200 versus H : µ ≠ 200

0 1

n = 64

X = 218

Z c .1. = 1.96 at 0.05 significance level

S X = S n = 30 8 = 3. 75

X ± Z c .1.S X

CI ( µ ) =

CI ( µ ) = 218 ± 1.96 (3.75)

CI ( µ ) = 218 ± 7.35

CI ( µ ) = 210.65 to 225.35

X

f(

)

µ

E()=218

225.35

o

=200 21

Upper

0.65

Limit

Lower Limit

The confidence interval [210.65 to 225.35] does not include 200; therefore the null hypothesis is rejected at the 0.05

significance level.

21. Assume you have the following data: Ho: µ = 2450, S = 400, n = 100, and X = 2,300. Conduct a

hypothesis test at the .01 significance level.

Answer:

H : µ = 2450 versus H : µ ≠ 2450

0 1

n = 100, S = 400

X = 2300

Z c .1. = 2.57 at 1 % significance level

S X = S n = 40

X ± Z c .1.S X

CI ( µ ) = = 2300 ± (2.57)(40) = 2300 ± 102.8

CI ( µ ) = 2197.2 to 2402.8

X

f(

)

µ =

2402.8

2197.2

Lower o

Upper

E()=2300

2450

Limit

The confidence interval [2197.2 to 2402.8] does not include 2450; so the null hypothesis is rejected at the 0.01

significance level.

22. A personnel researcher hypothesizes that 15 percent of employees eligible for early retirement will actually

choose to retire. In a sample of 1,200, 20 percent of the people say they plan to retire. Perform a hypothesis test.

Answer: H0: π = .15 versus H1: π ≠ .15

Sample:

n = 1,200, p = .20

pq ( . 2) ( .8) .16

Sp = n = 1200 = 1200

Sp = .0115

p- π

Sp

Z =

. 20 − .15

Z = . 0115

. 05

Z = . 0115

Z = 4.348

The Z value exceeds 1.96 so the null hypothesis should be rejected at the .05 level. Indeed it is significant beyond

the .001 level.

23. A personnel manager has a computerized list of all employees that indicates 70 percent are full-time employees, 20

percent are part-time employees, and 10 percent are furloughed or are laid off employees. A sample of 50 employees

from the list indicates 40 full-time employees, 6 part-time employees and 4 furloughed/laid off employees. Conduct a

statistical test to determine if the sample is representative of the population.

Answer:

Population Expected Observed

Distribution Frequency Frequency

Full-time 70% 35 40

Part-time 20 10 6

Laid-off 10 5 4

2

(0i Ei ) 2 2 2 2 2 2

2 − ( 40 − 35) ( 6 − 10) ( 4 − 5) ( 5) ( − 4) (1) 25 16 1

X = ∑ = + + = + + = + + =

Ei 35 10 5 35 10 5 35 10 5

. 71+ 1. 6 + . 2 = 2.51

d.f. = K – 1 = 3 – 1 = 2 , Critical value=5.99. Therefore H0 can not be rejected at α =0.05.

The chi square value of 2.251 with 2 degreed of freedom indicates that this test is not statistically significant at the 0.05

level.

24. Test the hypothesis of no differences for average payback period (years) necessary to justify solar systems for

residences.

Answer: Savings and Loans Other Financiers

X 1 = 8.7 X 2 = 7.7

2 2

S1 = 0.5 S 2 = 0.6

n1= 100 n2 = 64

X1 − X2

t=

SX − X 2

1

where

[( n1 − 1)S21 − ( n 2 − 1)S 22 ] 1 1

SX = +

1− X2

n1 + n2 − 2 n1 n2

[( 100 - 1) . 5 + ( 64 − 1). 6] 1 1

SX 1 − X 2 = +

100 + 64 − 2 100 64

8. 7 - 7. 7

t=

.1175

= 8. 51 0

Thus we have sufficient evidence to reject H

25. Analyze the following contingency table with respect to which program is more effective:

Message Recall When Presented with Two Different

Television Programs

Result A B Total

Message recalled 60 60 120

Message not recalled 90 140 230

________________________

Total 150 200 350

Answer:

χ 2 = 3.83

At α = .05, the critical level is 2.706.

At α = .1, the critical level is 3.841; thus, if you use the α = .05 level, there is no significant difference

between the programs.

26. What does it mean when a researcher says that there is a strong (.60), significant (α = .05) sample based

correlation between two variables? Can we conclude that the sample correlation is also the population

correlation coefficient?

Answer

The researcher must be careful in the way that he/she interprets the .6 correlation value. Remember that the

square of the correlation value shows how much variance is explained in the relationship. In this case the

square is .36, or 36% of the variance is explained and 64% is unexplained. Correlation does not imply cause

and effect. Other ingredients are necessary to establish a cause/effect relationship. The significance of a

correlation value is virtually useless because it is determined mostly by the sample size, not the size of the

coefficient. In other words, all things being equal, even a small correlation can be significant if the sample

size is large. Also, you cannot imply that the correlation will hold in the population even though it is

significant. In fact, this is the hardest to establish except when the finding is replicated a number of times

under different settings and with different samples.

27. Given the following number of hours worked per week of an independent sample of males and females,

determine if there are any significant differences at a α = .05 level of significance?

Male Female

30 40

20 25

35 15

25 20

15 10

125 110

Answer

XM = 25 XF = 22

S2m = 49.99 S2m = 106.04

df = 5 + 5 - 2 = 8

A. Ho : µ m = µ f

H1 : µ m ≠ µ f

B. At α = 0.05, df = 8 [Critical t = 2.306]

4(49.99) + 4(106.04)

C. t = 25 - 22/ ───────────── (1/5 + 1/5) = 3/5.59 = 0.54

5+5-2

t calculated = .054

D. Since t calculated is less than t critical, do not reject Ho , no difference.

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