STUDENT

MARQUEZ GEELYKA O.
NAME:
Last name Given name Middle initial

STUDENT
20160102783
NUMBER:

Solve the following problems. Show all pertinent solutions.

1. The average typing speed of a good typist is said to be 60 words per minute. In a
certain company, 45 applicants were given a typing test and the results showed a mean
of 55 words per minute with a standard deviation of 10 minutes. Based on these
results, can we say that the typing speed of the 45 applicants is below the average?
Use ⍺=.01.

Hypothesis

Null Hypothesis (Ho) µ = 60 words per minute

Alternative Hypothesis (H1) µ < 60 words per minute

Level of Significance

⍺ = 0.01

Test Statistics

Use the z-test because the population standard deviation is given, 10, and n is equal to
45. Consider one-tailded test because the H1 is directional alternative hypothesis.

Computation

Manual Excel

z = (55 - 60)*sqrt(45)/10
𝑥̅ − μ
𝒛= 𝝈
z = -3.354
√𝒏

55 − 60
𝒛=
𝟏𝟎
√𝟒𝟓

z = -3.35
Decision

The computed value of z = -3.354 is less than the critical value, -2.33; hence, the null
hypothesis is rejected. In other words, the computed value of z = -3.354 lies within the rejection
region.

Interpretation

Based on the result, we can say that the typing speed of the 45 applicants is not below the
average typing speed.

Based on these results, can we say that the typing speed of the 45 applicants is below the
average?

Yes, since the claim that the average typing speed of a good typist is said to be 60 words per
minute, the claim in the Null Hypothesis (Ho) is false and rejected. So,we can say that the
typing speed of 45 applicants is below the average.

2. In a certain college, the average NCEE score of the first 50 engineering freshmen
students is 82 with a variance of 64. The first 45 BA freshmen students have a mean
NCEE score of 78 with a variance of 49. Based on these information, can we say that
the difference is the value of the mean of the two groups can be attributed to
chance? Use 1% level of significance.

Hypothesis

Null Hypothesis (Ho) x̄1 = x̄2

Alternative Hypothesis (H1) x̄1 ≠ x̄2

Level of Significance

⍺ = 0.01

Test Statistics

Use z-test of two means and utilized two-tailed test since the alternative hypothesis is non-
direction
Computation

Manual Excel

𝛴 𝑥̅1 −𝑥̅ 3 z = (82-78)/SQRT((64/50)+(49/45))

𝑧=
2 2
√𝜎1 ⅈ + 𝜎2 z = 2.599
𝑛 𝑛2

82 − 78
𝑧=
√64 + 49
50 45

z = 2.599

Decision

The computed value of z = 2.599 is greater than the critical value, 1.645; hence, the null
hypothesis is rejected. In other words, computed value of z = 2.599 lies within the
rejection region.

Interpretation

Since there is a significant difference between the two sample means, it can be said that the
difference is not attributable to chance. We can also conclude that the scores of the Engineering
freshmen are better than the BA freshmen students.

3. A researcher is trying to determine whether a new teaching technique is superior to

the old teaching technique . two groups of students with 32 members each were
taken for 3 months and the result are shown below.

New method Old method

X̄ = 82.45 X̄ = 80.67
σ2= 49.9 σ2 = 56.78
Hypothesis

Null Hypothesis (Ho) x̄1 = x̄2

Alternative Hypothesis (H1) x̄1 ≠ x̄2

Level of Significance

⍺ = 0.01

Test Statistics

Use z-test of two means and utilized two-tailed test since the alternative hypothesis is non-
direction

Computation

Manual Excel

𝛴 𝑥̅ 1 −𝑥̅3 z = (82.45-
𝑧= 80.67)/SQRT((49.9/32)+(80.67/32))
2 2
√𝜎1 ⅈ + 𝜎2
𝑛 𝑛2
z = 0.975
82.45 − 80.67
𝑧=
√49.9 + 56.78
32 32

z = 0.975

Decision

The computed value of z = 0.975 is lower than the critical value, 2.575; hence, reject the
null hypothesis. In other words, computed value of z = 0.975 lies within the rejection
region.

Conclusion

Since, there is a significant difference between the two-sample means, it can be said that
the difference is not attributable to chance. We can say that the new teaching technique is
superior to the old teaching technique.
4. A car battery dealer is trying to determine which of the two brands of car battery he is
selling has longer life span. He conducted an investigation by interviewing his customer
and was able to get the following result.

Brand X Brand Y

Mean life span 4.5 years 4.9 years

Standard deviation .56 year .45 years
Sample size 40 40

Hypothesis

Null Hypothesis (Ho) x̄1 = x̄2

Alternative Hypothesis (H1) x̄1 ≠ x̄2

Level of Significance

⍺ = 0.01

Test Statistics

Use z-test of two means and utilized two-tailed test since the alternative hypothesis is non-
direction

Computation

Manual Excel

𝑥̅1 − 𝑥̅2 t = (82.45-

𝑡=
2 2 80.67)/SQRT((49.9/32)+(80.67/32))
√𝑠1 ⅈ + 𝑠2
𝑛 𝑛2
t = -2.517
4.5 − 4.9
𝑡=
√. 56 + . 45
40 40

t = -2.517
 Decision

Since the computed z value of -2.51727 is less than (<) the critical value of 2.575, the
null hypothesis is rejected. In other words, computed value of z = -2.517 lies within the
rejection region.

Conclusion

Since, there is a significant difference between the two-sample means.

5. The following data show the total cost of production of commodity z with the
corresponding output over a period of 10 years.

X (COST) Y (OUTPUT) XY X2 Y2 (X- (Y- (X- )*(Y- )

21,500 5,000 107,500,000 462,250,000 25,000,000 - 12,040 - 34,000 409,360,000
23,700 20,000 474,000,000 561,690,000 400,000,000 - 9,840 - 19,000 186,960,000
25,700 35,000 899,500,000 660,490,000 1,225,000,000 - 7,840 - 4,000 31,360,000
34,000 50,000 1,700,000,000 1,156,000,000 2,500,000,000 460 11,000 5,060,000
22,500 10,000 225,000,000 506,250,000 100,000,000 - 11,040 - 29,000 320,160,000
53,500 65,000 3,477,500,000 2,862,250,000 4,225,000,000 19,960 26,000 518,960,000
24,200 40,000 968,000,000 585,640,000 1,600,000,000 - 9,340 1,000 - 9,340,000
27,400 40,000 1,096,000,000 750,760,000 1,600,000,000 - 6,140 1,000 - 6,140,000
38,500 55,000 2,117,500,000 1,482,250,000 3,025,000,000 4,960 16,000 79,360,000
64,400 70,000 4,508,000,000 4,147,360,000 4,900,000,000 30,860 31,000 956,660,000
335,400 390,000 15,573,000,000 13,174,940,000 19,600,000,000 - - 2,492,400,000

n = 10

∑X = ₱ 335,400
∑Y = ₱ 390,000
∑XY = ₱ 15, 573,000,000
∑X2 = ₱ 13,174,940,000
∑Y2 = ₱ 19,600,000,000
∑(X-X̅)*(Y-Y̅) = ₱ 2,492,400,000

X̅ = 33,540
Y̅ = 39,000

Covariance = 265,844,444.44 Positive Relationship

Correlation = 0.86 Positive High Correlation

Test of Significance = 95% Confidence Interval

Level of Significance = 5%
 a. Draw a scatter diagram

COST VS. OUTPUT

80,000
70,000
Y (Output) 60,000
50,000
40,000
30,000
20,000
10,000
-
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000
X (Cost)

b. Estimate the regression equation: y = a + bx

y = a + bx

y = –4,441.95 + 1.29 x

Computations

∑ 𝑥𝑦 − 𝑛(𝑥̅ )(𝑦̅) 𝑎 = 𝑦̅ − 𝑏𝑥̅

𝑏=
∑ 𝑥 2 − 𝑛(𝑥̅ )2
= 39,000 - 1.294333681 (33,540)
15,573,000,000 − 10(33,540)(39,000)
= a = -4,411.95
13,174,940,000 − 10(33,5402 )

b = 1.29
 c. Test for the significance of the value of r at .05 level significance.

𝑛 ∑ 𝑥𝑦−(∑ 𝑥)(∑ 𝑦)
𝑟=
√ [𝑛 ∑ 𝑥2 −(∑ 𝑥)2 ][𝑛 ∑ 𝑦2 −(∑ 𝑦)2 ]

10 ∗ 15,573,000,000 − ₱ 335,400 ∗ ₱ 390,000

𝑟 =
√[10 ∗ ₱ 13,174,940,000 − (₱ 335,4002) ]⌈10 ∗ 19,600,000,000 − (₱ 390,0002 ⌉

r = 0.86 Positive High Correlation

Generally, a P-value of 0.05 or less is needed for significance (to feel comfortable that the
independent variable is indeed strongly associated with the dependent variable). The variable
(b) cost parameter is significant at 0.0015 level, so it appears to be a highly significant
explanatory variable. The fixed cost parameter, the intercept, is significant at the 0.6701 level.
This is not significant at the 0.05 level.

6. The data below shows the income (x) and the expenditure (y) in (P1,000) of typical
household for a period of 10 months.

X (INCOME) Y (EXPENDITURES) XY X2 Y2
18,500 11,500 212,750,000 342,250,000 132,250,000
20,000 11,000 220,000,000 400,000,000 121,000,000
35,200 23,200 816,640,000 1,239,040,000 538,240,000
22,800 15,600 355,680,000 519,840,000 243,360,000
20,400 10,500 214,200,000 416,160,000 110,250,000
23,400 23,100 540,540,000 547,560,000 533,610,000
50,700 43,200 2,190,240,000 2,570,490,000 1,866,240,000
65,200 60,000 3,912,000,000 4,251,040,000 3,600,000,000
30,300 30,500 924,150,000 918,090,000 930,250,000
25,000 23,000 575,000,000 625,000,000 529,000,000
311,500 251,600 9,961,200,000 11,829,470,000 8,604,200,000

n = 10
X̅ = 31,150
Y̅ = 25,160
b = 0.10 Variable Cost
a = 5,955.06 Fixed Cost
 a. Generate the equation y = a +bx

y = -5,955.06 + 0.1 x

Computations:

a=? b=?

∑ 𝑥𝑦 − 𝑛(𝑥̅ )(𝑦̅) 𝑎 = 𝑦̅ − 𝑏𝑥̅

𝑏=
∑ 𝑥 2 − 𝑛(𝑥̅ )2
a = 25,160 - .998878304 (31,150)
9,961,200,000 − 10(31,150)(25,160)
𝑏= = -5,955.06
11,829,470,000 − 10(31,1502 )

b = 0.1

b. Test for the significance of the value of b

The variable (b) cost parameter is significant at 5.68104E-06 (0.00000568104) level, so it

appears to be a highly significant explanatory variable. The fixed cost parameter, the
intercept, is significant at the 0.1048 level. This is not significant at the 0.05 level.

7. The following data show the total cost of production of commodity z with the
corresponding output over a period of 10 years.

X (COST) Y (OUTPUT) XY X2 Y2
21,500 5,000 107,500,000 462,250,000 25,000,000
23,700 20,000 474,000,000 561,690,000 400,000,000
25,700 35,000 899,500,000 660,490,000 1,225,000,000
34,000 50,000 1,700,000,000 1,156,000,000 2,500,000,000
22,500 10,000 225,000,000 506,250,000 100,000,000
53,500 60,000 3,210,000,000 2,862,250,000 3,600,000,000
24,200 40,000 968,000,000 585,640,000 1,600,000,000
27,400 40,000 1,096,000,000 750,760,000 1,600,000,000
38,500 55,000 2,117,500,000 1,482,250,000 3,025,000,000
64,400 70,000 4,508,000,000 4,147,360,000 4,900,000,000
335,400 385,000 15,305,500,000 13,174,940,000 18,975,000,000

n = 10
∑X = ₱ 335,400
∑Y = ₱ 385,000
∑XY = ₱ 15,305,500,000
∑X^2 = ₱ 13,174,940,000
∑Y^2 = ₱ 18,975,000,000
∑(X-X̅)*(Y- Y̅) = ₱ 2,392,600,000
X̅ = 33,540
Y̅ = 38,500

COVARIANCE:
Sxy = 265,844,444.44 Positive Relationship

CORRELATION:
r = 0.85 Positive High Correlation
b (SLOPE) = 1.242506325
a (INTERCEPT) = -3173.662148

a. Compute the value of r.

𝑛 ∑ 𝑥𝑦 − (∑ 𝑥)(∑ 𝑦)
𝑟=
√ [𝑛 ∑ 𝑥 2 −(∑ 𝑥)2 ][𝑛 ∑ 𝑦 2 −(∑ 𝑦)2 ]

r = 0.85 Positive High Correlation

b. Conduct a test of significance for the value of r. assume that ⍺=0.05

TEST OF SIGNIFICANCE:

⍺ = 0.05 = .6319

If r is not between the positive and negative critical values, then the correlation coefficient is
significant. The critical values associated with df=8 are −0.6319 and +0.6319. If r<negative
critical value or r>positive critical value, then r is significant. Since r=0.85 and 0.85>0.6320, r
is significant.
 8. the following values show the intelligence quotient (IQ) and the corresponding
NCEE scores of 10 incoming freshmen in a certain college.
X (IQ) Y (NCEE SCORE) XY X2 Y2 (X- (Y- (X- )*(Y- )
120 96 11,520 14,400 9,216 23 16 377
85 65 5,525 7,225 4,225 - 12 - 15 173
110 65 7,150 12,100 4,225 13 - 15 - 200
80 66 5,280 6,400 4,356 - 17 - 14 231
95 70 6,650 9,025 4,900 - 2 - 10 16
90 86 7,740 8,100 7,396 - 7 6 - 40
95 87 8,265 9,025 7,569 - 2 7 - 11
112 93 10,416 12,544 8,649 15 13 202
93 81 7,533 8,649 6,561 - 4 1 - 4
86 90 7,740 7,396 8,100 - 11 10 - 107
966 799 77,819 94,864 65,197 636

n = 10
∑X = ₱ 966
∑Y = ₱ 799
∑XY = ₱ 77,819
∑X^2 = ₱ 94,864
∑Y^2 = ₱ 65,197
∑(X-X̅)*(Y- Y̅) = ₱ 636
X̅ = 96.6
Y̅ = 79.9

COVARIANCE:
Sxy = 70.62 Positive Relationship
EXCEL = 70.62

CORRELATION:
R = 0.44 Positive Low Correlation
B (SLOPE) = 0.41
A (INTERCEPT) = 40.25

TEST OF SIGNIFICANCE:
⍺ = 0.05

a. compute the value of r

𝑛 ∑ 𝑥𝑦 − (∑ 𝑥)(∑ 𝑦)
𝑟=
√ [𝑛 ∑ 𝑥 2 −(∑ 𝑥)2 ][𝑛 ∑ 𝑦 2 −(∑ 𝑦)2 ]

= 0.44 Positive Low Correlation

b. using ⍺=.05, test the significance of the value of r.

If r is not between the positive and negative critical values, then the correlation coefficient is significant.
The critical values associated with df = 8 are −0.6319 and +0.6319. If r<negative critical value or
r>positive critical value, then r is significant. Since r = 0.44 and 0.44<0.6320, r is not significant.