UKEQ1023 Quantitative Techniques II

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND MANAGEMENT
TUTORIAL 8

1. A local politician was interested in determining whether income level affects

opinion regarding the government’s bailout bill for easing the 2008 financial
crisis on stock market. He surveyed a sample of his constituents and got the
following results.

Opinion
Income Level ($) Favor Oppose
> 200,000 36 27
50,000 to 200,000 32 44
< 50,000 32 59

Using significant level of 0.05, determine whether there is a relationship between

income level and opinion regarding the government’s bailout bill for easing the
2008 financial crisis on stock market.

2. A survey of Internet users in the United States, Australia, and Europe studied
whether those who downloaded music subsequently purchased a CD or tape of the
music (“Net Music Inspires Buying,” USA Today, January 23, 2001, 1A). The
survey reported that 77% of Americans, 78% of Australians, and 54% of
Europeans who downloaded music get inspired to purchase a CD or tape of the
music. Suppose the survey was based on a sample of 500 Americans, 250
Australians, and 500 Europeans.

At the 0.05 level of significance, determine whether there is a significant

difference in the proportion of Americans, Australians, and Europeans who get
inspired to purchase a CD or tape of the music.

3. An online book store wants to determine if coupon redemption is dependent of

gender. After a special coupon broadcast to its reward members, the following
data on coupon redemption at check-out were collected.

Gender Coupon Redeemed? Total

Yes No
Male 66 66 132
Female 125 74 199
Total 191 140 331

(i). Using α = 0.05, determine whether coupon redemption is dependent of

gender.
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UKEQ1023 Quantitative Techniques II

(ii). Based on your findings, who are more likely to redeem online coupons.

4. Recently a survey was conducted involving customers of a fitness center in

Cheras. Participants were asked to indicate how often they use the club by
checking one of the following categories: 0-1 time per week; 2-3 times per week;
4-5 times per week; more than 5 times. The following data show how males and
females responded to this question.

0-1 2-3 4-5 over 5

Males 41 61 50 20
Females 109 89 60 45

One of the purposes of the survey was to determine whether there is a relationship
between the gender of the customer and the number of visits made each week.
Conduct the hypothesis test using an alpha = 0.05 level.

5. April 2019: A mobile phone company wants to determine if the use of text
messaging is independent of age. The following data has been collected from a
random sample of their customers.

Text messaging
Age Regularly use Do not Regularly use
15 – 24 8 52
25 – 34 11 49
35 – 44 15 35

(i) At α = 0.01, examine whether the use of text messaging is dependent of

age.

(ii) List the two assumptions for the Chi-square test of contingency table.