ANSWER KEY ~ QMETH 201, Exercise Set 6, Due 13 November 2014 1. The noted financial markets expert, James Buffett (also known as the Sage of Seattle) used the ‘Microsoft Excel Descriptive Statistics function to produce the following table to summarize the closing price per share of Microsoft stock fora random sample of 25 trading days between 16 June 2011 and 15 Tune 2012: MICROSOFT ‘Mean ma -X Standardror 04963 = Se Median 2319 Mode 32.25 Standard Deviation 24514 Sample Variance 6.1575 Keurtosis 15660 Skewness -oo3e Range 747 Minimum 2079 Maximum 3225 sum 7327 count =n Use the Desriptive States oupat to determine whether the mean closing price for Microsoft soc forall trading days inthe time period was fess than $30 maa se lot signiiance s 4. State the mul and alternative hypotheses associated withthe test. Hg: = 830 He: (KS 30 “Fr TAL 1b, What isthe caledaved value ofthe esocinel tet statistic? R-Mg — 28.93-30 _- 1.07 O43 Tale * «Whats the erica! vale ofthe associated test statistic?” aay -h'7109 Tent @x 0,05, df= a5- 4d. State your decision about the null hypothesis by comparing the calculated and critical values ‘ofthe ext state, I tedel > Iteat |? Reveer Ho ‘¢, State your conclusion (meaning, describe what the decision means in this problem). ‘THe Mean DaiLy Cusine Price Per Suare For Mickosorr Stock For A TRADING DAYS DURING THe Time PERIOD Was LESS THAN 8302. The alcohol content of wine depends on numerous factors, including the grape variety, how the wine is produced, and the weather. Sués Bacchus, noted wine enthusiast, collected data on the alcohol content (percent by volume) of wine for one grape variety produced in 2012 by a random sample of 20 ‘winemakers in Italy. Suds used the Microsoft Excel Descriptive Statistics function to produce the following table to summarize the alealol content of the wines in the sample: ALCOHOLS Mean sa003 = X Standord Error oa = Sy Median 33165 Mode 1337 StandardDeviation 05121 Sample Variance 0.2612 Kurosis 0x85 Skewness “0.1747 Range 163 Maximum 1388 sum 261.85 Count 2=n i 4. State the mul and alternative hypotheses associated with the test SM EIRIS% Hy? > 12.15% Hoi Me bn Maven Tae 'b. Whats the caleated value ofthe associated test statistic? R-Moe _ 13,093 -1a,.75 _ +.0,34 3 Tale* “Gye O43 ~ 0.1143 ~ *3.0008749 . What isthe eritcal value ofthe associated test statistic? Crit (as 010, APs 20-1=19) = + 1.3277 4. State your declsion about the null hypothesis by comparing the calculated and critical values ‘ofthe test ttn. I teatel > [teeith = RETECT Ho «State your conclusion (meaning, describe what the decision means in this problem), Tie Mean Acconoe CONTENT For Alc Wines Proovced For Tuat Grave In Lrary In 2012 Was GREATER THAN 12.959,2a5-(=28 2. anda ample con‘ seers, Deteine the -VALUE fr each vive of the colt ictus oan ste you deen bow eal Mpsacar eas parhyaanamagae ee Vaturina=00s =50 Be yS0 Tho/Berw Tacs, So p-VALUE = an ACE>|tenlel) BICLTIT pValue + ax Pe(t>[ 1.7171] = 2x0.05 > 0.10 OL £ p-VALUE > FAIL To RETECT Ho b.t=25083 p-vaLue + ax FeCt>]a.50831) = an 0.01 = > p-VALE > ReTecr Hp OR Gt=22911 pvaiwe sax fe(t>laatiil) = 2x0.01 To ax0,0RS 0.02 To 0,05 > p-value > ReseECT Ho A1- 11458 p-vawe = ax RCE >|11958)) => 2x 0,102 >0.20 OLS p-VALUE => Faw To Retect Hp 4. Historically, 0.45 ofthe players using the online poker sit louse com, have been from outside the United States. The Chief Executive Officer [CEO] of full_house.com believes the proportion of ‘player using th site who ae fom ouside the United Sats has inceased resell (ewting, exceeds ‘045, According io an August 2014 survey of 200 ofthe site's customers, 102 wee from outside the ‘United States. Test the CEO's belief. prt, loa goo = 0.51 4 State the mll and alternaive hypotheses associated withthe test He: 14045 Hy! 170.45 1 Whats the cnleulted val ofthe associ es toi Zea. = Pz O.S1-0.45 + 0106 40.06 a Me) - 555) ~ To ooiaa7s 00351781 ieee x + /,7056057 ‘. Determine the p-VALUE forthe et. p-vale = &CZ>) E711) 0.5- PCoSZELTD =0.5~ 0.4564 = 0.0436 4 Ifthe level of significance equals 0.01, state your decision about the mull hypothesis by comparing the p-VALUE tothe level of significance. AS p-VALUE > FAIL To ReTect He ¢. State your conclusion (meaning, describe wha the dein meas in his problem). THe PRroPorTioN OF PLAYERS USING THe Site WHo ARe From OuTsiDe THe U.S, Has Not Increasep RECENTLY (or Is Nor GREATER THAN 0,45)