Topic Title: Assignment 1

Course Title: Bus 173

Submitted to:
Khandakar Md. Ashraful Munim
Dept. of Management
North South University

Submitted by:
Shaniz Araf
ID: 1821557630
Section: 15
Dept. of Management

Submission Date: 4th June 2020

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Assignment 1

1. The table below lists the number of crimes reported at a police station on each day of the
week for the past three months:
Day of the week Number of Crimes
Monday 21
Tuesday 14
Wednesday 13
Thursday 16
Friday 21
Saturday 29
Sunday 26
The null hypothesis for the goodness-of-fit test is that the number of crimes reported at
this police station is the same for each day of the week. Assume the level of significance
to be 10%.
a) What are the expected numbers of crimes for each of the seven days?
b) What is the value of the test statistic, rounded to three decimal places?
c) What decision would you make about rejecting the null hypothesis in this test?

Answer to Question No. 01 (a):

Expected Number of Crimes for each of the seven days is given below:
Number of Expected
Day of the week
Crimes Probability Frequency
Monday 21 0.14286 20
Tuesday 14 0.14286 20
Wednesday 13 0.14286 20
Thursday 16 0.14286 20
Friday 21 0.14286 20
Saturday 29 0.14286 20
Sunday 26 0.14286 20
140

Answer to Question No. 01 (b):

Step 1:
H0: p1 = p2 = p3 = p4 = p5 = p6 = p7 = .14286
H1: At least two of the five proportions are not equal to .14286

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 Step 2:
There are 7 categories:
 Reported crimes of 7 days in a week
 Multinomial experiment
We use the chi-square distribution to make this test.

Step 3:
Area in the right tail = α = .10
k = number of categories = 7
df = k – 1 = 7 – 1 = 6
The critical value of χ2 = 10.645

Step 4:
All the required calculations to find the value of the test statistic X 2 are shown in the
following table:
Day of the Number of Probabilit Expected (O−E)2
week Crimes (O) y (P) Frequency (E) O-E (O-E)2 E
Monday 21 0.14286 20 1 1 0.05
Tuesday 14 0.14286 20 -6 36 1.8
Wednesday 13 0.14286 20 -7 49 2.45
Thursday 16 0.14286 20 -4 16 0.8
Friday 21 0.14286 20 1 1 0.05
Saturday 29 0.14286 20 9 81 4.05
Sunday 26 0.14286 20 6 36 1.8
Sum = 140 Sum = 11.00

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 2 ( O−E )2
X =∑
E
X 2 =11
Answer to Question No. 01 (c):
The value of the test statistic X2 = 11 is larger than the critical value of X2 = 10.645, it
falls in the rejection region.
Hence, we reject the null hypothesis
We state that the number of crimes reported at this police station is not the same for each
day of the week.

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 2. The manager for an electronic company is trying to decide whether to market his
company's newest product by newspaper, through radio, or on television. He selects 20
communities in which to test-market the product, advertising through one of the three
media in each community. The following table shows the amount of sales, in hundreds of
dollars, for each community:
Newspape
r Radio TV
6 9 16
8 12 11
10 8 13
7 14 8
9 4 9
5 7 14
4 9
Sales are normally distributed and the standard deviations are equal for all three methods
of advertising. You are to test the hypothesis that the means are the same for all three
treatments. Assume the level of significance to be 5%.
a) What will be the value of the test statistic, rounded to two decimal places?
b) Using a one-way ANOVA method, test the hypothesis that the mean amount of sales,
using the 3 methods of advertising, are the same.

Answer to Question No. 02 (a):

Calculating the Test Statistics:
Let us assume,
 x = the score of a student
 k = the number of different samples (or treatments)
 ni = the size of sample i
 Ti = the sum of the values in sample i
 n = the number of values in all samples
= n1 + n2 + n3
 Σx = the sum of the values in all samples
= T1 + T2 + T3
 Σx² = the sum of the squares of the values in all samples

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 To calculate MSB and MSW, we first compute the between-samples sum of squares
(SSB) and within samples sum of squares (SSW).
Newspaper Radio TV
6 9 16
8 12 11
10 8 13
7 14 8
9 4 9
5 7 14
4 9
Ti 49 54 80 ∑ x=183
ni 7 6 7 n = 20

T 12 T 22 T 32 (∑ x )2 T 1 2 T 22 T 3 2
2
SSB=( + + )− SSW =∑ x −( + + )
n1 n 2 n3 n n1 n2 n3
2
492 542 802 (183) 49 2 54 2 802
SSB=( + + )− SSW =1889−( + + )
7 6 7 20 7 6 7
¿(343+ 486+ 914.29)−1674.45 SSW =1889−1743.29
¿ 1743.29−1674.45 ∴ SSW =145.71
∴ SSB=68.84
SST = SSB + SSW
SST = 68.84+ 145.71
∴SST = 214.55

Now, for calculating the test statistics F value we need to calculate the MSB and MSW
using the following formula.
SSB SSW
MSB= MSW =
K −1 n−K
68.84 145.71
MSB= MSW =
3−1 20−3
[Where k is the number of different = 3] ∴ MSB=8.57
∴ MSB=34.42
MSB
MSB=
MSW

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 34.42
MSB=
8.57
∴ MSB=4.02

Answer to Question No. 02 (b):

Step 1:
Based on the question:
H0: μ1 = μ2 = μ3 (The mean scores of the three groups are all equal)
H1: Not all three means are equal
Step 2:
Because we are comparing the means for three normally distributed populations, we use
the F distribution to make this test.
Step 3:
α = .05
A one-way ANOVA test is always right tailed
Area in the right tail is .05
df for the numerator = k – 1 = 3 – 1 = 2
df for the denominator = n – k = 20 – 3 = 17
The required value of F is 3.59 [Using critical value of the F distribution]

Step 4 & 5:
The value of the test statistic F = 1.09 which is less than the critical value of F = 3.59
It falls in the none rejection region
Hence, we fail to reject the null hypothesis
We conclude that the means of the three population are equal.

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