Question 1

Given Data Calculation Scatter plot

Brand Price Score xy x^2 y^2
Dell 2800 62 173600 7840000 3844
Hisense 2800 53 148400 7840000 2809 70
Hitachi 2700 44 118800 7290000 1936 60 f(x) = 0.012
JVC 3500 50 175000 12250000 2500 R² = 0.4502
50
LG 3300 54 178200 10890000 2916
Maxent 2000 39 78000 4000000 1521 40
Panasonic 4000 66 264000 16000000 4356
30
Phillips 3000 55 165000 9000000 3025
Proview 2500 34 85000 6250000 1156 20

Samsung 3000 39 117000 9000000 1521 10

Total 29600 496 1503000 90360000 25584
0
1500 2000 250

Applying the linear regression formula r is positive hence, there i

The score tends to increas
y = b0+b1x

b0 329760000 27440000 12.01749

b1 348400 27440000 0.012697

y = 12.017+0.0127x

R^2 = 0.4503
The Price can predict 45% of the variance in Score. Hence it may not be a good fit.

If the price of the television is 3200 the estimated score would be

12.0175+0.0127*3200
52.6575
 Scatter plot

Score
70

60 f(x) = 0.012696793x + 12.0174927114

R² = 0.4502812177
50

40

30

20

10

0
1500 2000 2500 3000 3500 4000 4500

r is positive hence, there is a positive correlation between the price and Price and Score.
The score tends to increase as price increases.

may not be a good fit.

Question Probability
If a stock is selected at random out of the analyst’s list of 246 stocks, what is
the probability that it increased in price? 0.48
If a stock is selected at random, what is the probability that it paid
dividends? 0.46
If a stock is randomly selected, what is the probability that it both increased
in price and paid dividends? 0.14
What is the probability that a randomly selected stock neither paid dividends
nor increased in price? 0.20
What is the probability that a random selected stock is increase in price
given that the dividends paid? 0.30
 Health insurance
Size of the company Yes No Total % of total
Small 36 14 50 22%
Medium 65 10 75 33%
Large 88 12 100 44%
Total 189 36 225

Expected
Size of Company Yes No Total %
Small 42 8 50 22%
Medium 63 12 75 33%
Large 84 16 100 44%
Total 189 36 225

Chi Square

Size of Company Yes No Total Chi-Squared formula is

Small 0.857143 4.5 5.357142857

Medium 0.063492 0.333333 0.396825397
Large 0.190476 1 1.19047619
6.944444444

Employee insurance coverage rate is independent of

Null Hypothesis statement (H0) the size of company

α 0.05 Significance level

Degrees of freedom 2 (no of rows-1)/(no of cols-1)
Critical value of Chi-square 5.991 This is from the table where D.O.F = 2 and =0.05
Chi test - p (Excel Formula) 0.031048 This is the probablity value obtained from the chi-test
Chi test - p (from table) .025<p valUsing the χ2 table with dof= 2, χ2= 6.94 shows thep-value is betwee

Since the p value obtained from the chi-test is less than α, we reject the null hy
Part a) Conclusion "Health insurance coverage is NOT independent of company size

Part b) Considering the first table, we see that only 72% of employees from SMALL com
Hence it indicates that people from SMALL companies Lack a health insurance
 % of yes from each category
72
86.6666666667
88

χ2 = (Observed value -
Expected value)^2/(Expected
value)

= 2 and =0.05
ed from the chi-test
= 6.94 shows thep-value is between 0.025a

is less than α, we reject the null hypothesis and say that

ent of company size

72% of employees from SMALL companies have a health insurance compared to the 86% and 88% of MEDIUM and LARGE comp
ompanies Lack a health insurance plan
DIUM and LARGE companies.