QUANTITATIVE TECHNIQUES ASSIGNMENT-2

Q.1) Jayalaxmi Agro Tech (JAT) believes that the average income per acre
from sericulture is at least Rs.  32,000. Conduct an appropriate hypothesis
test to validate this claim.
Ans. Ho = The average annual income per acre from sericulture is at least INR 32,000
(µ0 ≥32000)
H1 = The average annual income per acre from sericulture is less than INR 32,000 (µ 1
<32000)
. Since the population standard deviation is not known and sample drawn from normal
population is not given, and we are given the sample of average income per acre per
annum in sericulture in Karnataka, we can test this claim using one-sample t test

One Sample T-Test

One Sample T-Test
  t df p
income_per_acre 4.019 1217 1.000

Note.  The alternative hypothesis for the Student t-test is that the mean is less than
32000.
Note.  Student's t-test.
Descriptives
Descriptives
  N Mean SD SE
income_per_acre 1218 36741.292 41175.840 1179.828

Conclusion: Because the calculated P value is greater than the level of significance (=0.05),
we are unable to find evidence supporting the alternative hypothesis. As a result, we accept
the null hypothesis and JAT's claim that the average income per acre per year from
sericulture is at least INR 32000 is correct.

Q.2) JAT believes that there is significant gender disparity among

sericulturists in Karnataka. The claim is that the proportion of female
sericulturists is less than 18%. Conduct an appropriate hypothesis test to
validate this claim.
Ans.
Ho = In Karnataka, the proportion of female sericulturists is less than 18%. ( 0 % 18 % )
H1 = The proportion of female sericulturists in Karnataka is greater than or equal to 18%.
(118 percent)
Since the population standard deviation for females is known from the given sample data.
We use the Z-test.
One Sample T-Test
One Sample T-Test
  Z p
female -10.062 1.000

Note.  For the Z-test, the alternative hypothesis specifies that

the mean is greater than 0.18.
Note.  Z test.

Descriptives
Descriptives

  N Mean SD SE

female 1218 0.095 0.294 0.008

Conclusion: Because the calculated P value is greater than the level of significance (=0.05),
we are unable to find evidence supporting the alternative hypothesis. As a result, we accept
the null hypothesis and JAT's claim that the proportion of female sericulturists in Karnataka
is less than 18% is correct

Q. 3) Intuitively, the average income per acre of sericulturists who did not
receive training on sericulture should be less than that of sericulturists who
received training. Conduct an appropriate hypothesis test to validate this
claim.
AnsH0 = Average income per acre of sericulturists who did not receive sericulture training is
greater than or equal to that of sericulturists who did receive training (0 1).
H1 = The average income per acre of sericulturists who did not receive sericulture training
should be less than that of sericulturists who did receive training (0 1).
We use the independent sample t-test to test the significance difference between the average
income per acre of sericulturists who did not receive training and those who did receive
training because we do not know the population standard deviations and the samples are
independent.
.

Independent Samples T-Test

Independent Samples T-Test
t df p
income_per_acre 4.329 1216 1.000 ᵃ
Note.  For all tests, the alternative hypothesis specifies that group 0 is less than group 1.
Note.  Student's t-test.
ᵃ Levene's test is significant (p < .05), suggesting a violation of the equal variance assumption

Conclusion We cannot find evidence for an alternate hypothesis because the calculated P
value (1.000) is greater than the level of significance (=0.05). As a result, we accept the null
hypothesis (0 1), and JAT's claim is invalid

Q. 4) Inferring an association between incidence of pest infestations and

geographical location might help farmers to emphasize on pest control
activities. Use a suitable test of hypothesis to infer whether geographical
location and incidence of pest infestations are associated.
Ans. H0 = There is no relationship between the incidence of pest infestations and
geographical location (0 1).
H1 = There is a link between the frequency of pest infestations and geographical location (0
= 1).
Because the two variables have different categories, namely pest infestations and
geographical location, and the frequencies are count data, we use the chi-square test of
independence or association to determine whether the two variables are independent or
associated.
.

Contingency Tables
Contingency Tables
affected_by_pest
district   0 1 Total
Count 68.000 3.000 71.000
Belagavi
Expected count 35.092 35.908 71.000
Contingency Tables
affected_by_pest
district   0 1 Total
Count 113.000 184.000 297.000
Bellary
Expected count 146.793 150.207 297.000
Count 157.000 243.000 400.000
Chikballapur
Expected count 197.701 202.299 400.000
Count 52.000 17.000 69.000
Mandya
Expected count 34.103 34.897 69.000
Count 212.000 169.000 381.000
Tumakuru
Expected count 188.310 192.690 381.000
Count 602.000 616.000 1218.000
Total
Expected count 602.000 616.000 1218.000
 
Chi-Squared Tests
  Value df p
Χ² 117.431 4 < .001
N 1218  

Conclusion: We find strong evidence for the alternative hypothesis because the calculated P
value for 2 = 117.431 is less than the assumed level of significance (=0.05). As a result, we
conclude that the frequency of pest infestations and geographic location are linked..

Q. 5) JAT suspects that there is equal variability in income per acre when
the sericulturists are using biovoltine hybrids alone as compared to when
they are using a combination of biovoltine hybrids and other hybrids or
other hybrids exclusively. Check this claim by conducting an appropriate
hypothesis test.
Ans. H0 = There is no significant difference in income per acre between sericulturists who use
bivoltine hybrids alone and those who use a combination of bivoltine and other hybrids (σ12
= σ22)
H1 = There is a significant difference in income per acre between sericulturists who use
bivoltine hybrids alone and those who use a combination of bivoltine and other hybrids. (σ12 ≠
σ22)
Here, two samples are given: sericulturists who use bivoltine hybrids and those who use a
combination of bivoltine and other hybrids, and it is supposed to test the significant
differences between variances of the two samples. We use the F-test to test the difference
between variances.
Q. 6) From a policy perspective, some districts of Karnataka might require
more attention in terms of aid  provided. One way to validate this is to
check if there is significant disparity in the average income  per acre of
sericulture farmers in different districts. Use a suitable statistical method
to check this.
Ans. H0 = There are no significant differences in the average income per acre of sericulturists
across the five districts (µ1 = µ2 = µ3 = µ4 = µ5)
H1 = The average income per acre of sericulturists varies significantly across the five districts.
(µ1 ≠ µ2 ≠ µ3 ≠ µ4 ≠ µ5)
We must use one-way ANOVA to test for significant differences between more than two
groups (between groups, independent). We need one dependent variable and one independent
variable to perform One-way ANOVA. In this test, the dependent variable is income per acre,
and the independent variable, which is categorical, is the different districts.

ANOVA
ANOVA - income_per_acre
Cases Sum of Squares df Mean Square F p η²
district 4.826e +11 4 1.207e +11 92.587 < .001 0.234
Residuals 1.581e +12 1213 1.303e  +9  
Note.  Type III Sum of Squares

Conclusion: The P (F>F=92.587) at 4,1213 df is P-value < 0.001 which is less than the level
of significance α= 0.05. Therefore, there exist strong evidence towards the alternative
hypothesis, so we conclude that there exist significant differences statistically among the avg.
income per acre of sericulturists across the five different districts in Karnataka.

Q. 7) JAT wants to understand how various factors like inputs, subsidies,

loan amounts and repayment  status, and rearing and management costs
affect the income per acre of sericulturists. Apply a  suitable statistical
method to determine this relationship. Is the method developed helps in 
estimating the future income?
Ans: Conclusion: The Anova Model summary of income per acre of alternative hypothesis
less than 0.001 and null hypothesis less than which is less than the level of significance
(=0.05). As a result, we accept the null hypothesis, and JAT's claim is correct, with
coefficients 0.001 for the null hypothesis and 0.001 for the alternative hypothesis of
significance. As a result, we accept the null hypothesis..
Linear Regression
Model Summary - income_per_acre

Model R R² Adjusted R² RMSE

H₀ 0.000 0.000 0.000 38734.235

H₁ 0.398 0.158 0.150 35712.943

 
ANOVA
Model   Sum of Squares df Mean Square F p
H₁ Regression 1.204e +11 5 2.408e +10 18.882 < .001
  Residual 6.403e +11 502 1.275e  +9  
  Total 7.607e +11 507  

Note.  The intercept model is omitted, as no meaningful information can be shown.

 
Coefficients
Mode Unstandardize Standard
  Standardized t p
l d Error
27.14
H₀ (Intercept) 46641.364 1718.554 < .001
0
H₁ (Intercept) 38982.286 4652.512 8.379 < .001
  instrument_mgmt_cost -0.772 0.310 -0.104 -2.490 0.013
  loan_amount -0.138 0.025 -0.232 -5.512 < .001
  rearing_cost 0.313 0.076 0.171 4.151 < .001
  seri_total_subsidy -0.072 0.025 -0.123 -2.898 0.004
  years_of_exp_in_sericulture 514.493 156.215 0.139 3.294 0.001

Residuals vs. Dependent

Residuals vs. Predicted

Q-Q Plot Standardized Residuals

In this case, we were supposed to test Jayalakshmi Agrotech's claims using various
parameters, and we did the following.
We used a one-sample T test to validate the average income per acre per year of sericulture
for 32000 people, a F test to validate any difference in variability between people who use
Bivoltine hybrids and people who do not use Bivoltine hybrids, and an ANOVA to find the
significant disparity of pest infections with districts and inferred those specific conclusions.
We could clearly infer from all of the test statistics that Jayalakshmi Agrotech's claims are
true in the majority of the cases we tested. However, there are other options.
.

As the statistics had proven almost all the claims on favor of Jayalakshmi Agrotech is
true to its claims the company can be relied upon for any of the future data (Of
course after Proper validation ) with various variables.