INTRODUCTION TO QUANTITATIVE ANALYSIS.

LEONARDO D. VILLAMIL.
HW4
10/31/2016
SOLUTION.
6.2
a.
Let Ho represent the null hypothesis and Ha the research hypothesis. The assumed
number of children is considered the mean of the sample population.
Ho: Ideal number of children is 2.
Ha: The ideal number of children is different of 2.
b.
The statistics calculated is the t-score. Its calculation is obtained from:

c.
Assuming the Ho hypothesis is true, the p-value is the probability of obtaining a test
statistic equal or greater than the t-score observed (20.80). In this case the probability is
0. So, it is higly unlikely that we observe a value as extreme as the one oberved when
the Ho is true. Therefore the Ho can no be accepted in a first instance.

6.4
a.
For Ha: u different from 0 the one tail p-value = 0.025 which correspond to a t-value =
(+/-) 2.064.
For u > 0, then t-value = 1.711. And for u < 0, then t-value = -1.711.
b.
This value present a weaker evidence against the p-value = 0.01. The smaller the pvalue the stronger the evidence against the Ho.

6.22.
a.
The Ho assert that there is not benefit from the treatment or that there is not a treatment
effect. Type one error is rejecting the Ho when it is true. Concluding that there is a
possitive effect of the treatment over the girls will be a mistake, because the Ho is true
or better stated there is not evidence to reject the Ho.
The type II error will be ignoring or rejecting the benefits of the treatment and accepting
the Ho.
b.
I will be rejecting the Ho when it fact it is true. Type I error.
c.
I will be accepting the Ho when in fact it is false.. Type II error for a alpha = 0.01

6.42

There are possible reasons of why a student do not want to exchange the lottery ticket
for another one plus an incentive.
May be that the one you have is the winner one.
Students thing a lottery ticket represent a greater value as compared to that of a
pen in case they win.
Students like to win. If they exchange a pen by another pen, plus an incentive.
Why not?
Students are attached to things by religious bounds.
A student may think that he will not excuse himself if he/she gave up the winner
ticket. They will regret that decision forever.
In order to gain a better understanding of this behavior more information is needed. For
example asking a participant why he/she does not want to exchange the ticket? Is the
religion a factor in their decisions?.