M II

CHETAN SARUP ROHILLA

MBA07190 B 02/12/2021

QUANTITATIVE ANALYSIS FOR MANAGEMENT - II

ANALYSIS FOR MANAGEMENT -PROF.

IIANALYSIS FOR MANAGEMENT
ARULANANTHA PRABU - II

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Ans1)

Answer 2)

H0: No relationship between stress and salary (beta1=0)

H1: There is linear relationship between stress and salary (beta!=0)

Fstat =11.95

Falpha NrDOF =1 DrDof=8 F_0.05=5.32

Rej Rule: Fstat>Falpha

Reject H0

There is linear relationship b/w stress and salary

Answer 3)

H0: No relationship between stress and salary (beta1=0)

H1: There is linear relationship between stress and salary (beta!=0)

Two tail testing

Tstat_b1=-3.463

Critical values +-t_alpha/2 Dof=n-k-1

+-t_0.025 Dof 8

+-2.306

Tstat lies is outside rejection region

There is linear relationship between stress and salary

Answer 4)

H0: No relationship between stress and salary (beta1=0)

H1: There is linear relationship between stress and salary (beta !=0)

Fstat =11.95

Falpha NrDOF =1 DrDof=8 F_0.01=11.26

Rej Rule: Fstat>Falpha

Reject H0

There is linear relationship b/w stress and salary

Answer 5) H0: No relationship between stress and salary (beta1=0)

H1: There is linear relationship between stress and salary (beta !=0)

Two tail testing

Tstat_b1=-3.463

Critical values +-t_alpha/2 Dof=n-k-1

+-t_0.005 Dof 8

+-3.355

Tstat lies outside rejection region

There is linear relationship between stress and salary

Ans6) r^2 = 0.980147203

Ans7) since at alpha=0.05, beta0 is not significant as the p-value (0.0528) > alpha (0.05), so the general
linear regression model Traffic flow_i= beta0+ beta1*vehicle speed_i+ beta2*Z_i^2+eps_i is
not significant.

Ans8) At alpha = 0.05, coefficient beta 1 is significant as the p-value (0.0169) <alpha (0.05)

Ans9) At alpha= 0.05, coefficient beta2 is significant as the p-value (0.0336) < alpha (0.05)

Ans 10) The significant regression model is Traffic flow_i_hat= b1*vehicle speed_i+ b2*Z_i^2, hence the
traffic flow in vehicles per hour at a speed of 38 miles per hour is: -
Traffic flow= 37.612*38 – 0.385*38^2
Hence, traffic flow = 873.316
Ans11) The MLR model is avg annual salary for salaried_i= B0+ B1*avg annual salary for hourly
emp+ B2* Dum_i+ Epsi.
as the p- values of B0(0.00083), B1(0.001382) and B2(0.0059) are less than alpha (0.05) so the
model is significant.

Ans12). Significant
Taking P_alpha = 0.05
P = 0.001382
P<P_alpha
The coefficient is significant

Ans13). Significant
Taking P_alpha = 0.05
P = 0.0059
P<P_alpha
The coefficient is significant

Ans 14)
Model Variable p-value rej rule
MLR k=1 curb 0.931 not sign so we remove it
MLR k=2 price 0.02 significant so we keep it

Speed at 1/4 mile (mph) Price ($1000s) Curb Weight (lb.) Horsepower
Speed at 1/4 mile (mph) 1
Price ($1000s) 0.738725756 1
Curb Weight (lb.) 0.50938707 0.147628978 1
Horsepower 0.934552296 0.545612592 0.6012189 1
Therefore, none of the value is greater than 0.7. So, we can say that there is a multicollinearity
among the variables.
Ans 15
Model Variable p-value Reject rule
MLR k=1 Curb 0.931 Not significant so we Remove it.
MLR k=2 Price 0.02 Significant so we Keep it

𝐻𝑜: 𝑚𝑒𝑑𝑖𝑎𝑛 𝑠𝑐𝑜𝑟𝑒 = 25

𝐻𝑎: 𝑚𝑒𝑑𝑖𝑎𝑛 𝑠𝑐𝑜𝑟𝑒 ≠ 25

Two tail testing

Assign sign: - - + - - - - - - 8 sample +ve signs = 1 -ve signs = 7

Binomial probability – p-proabability of + sign as per Ho = 0.5

Ho:p=0.5

Ha:p≠0.5

Sample + signs 1 Ho + signs = 4

P =2*(P(1)+P(0))=2*(0.0039+0.0312)=2*0.0351=0.0702

Ans16) Number of plus sign = 1

Ans17) P Value = 0.0702

Ans18) At alpha 0.05, P-value (0.0702) > alpha (0.05) Do not reject Ho

Ans19) At alpha 0.01, P-Value(0.0702)> alpha(0.01) Do not reject Ho

Ans20) 𝐻𝑜: 𝑚𝑒𝑑𝑖𝑎𝑛 𝑠𝑐𝑜𝑟𝑒 ≥ 25 𝐻𝑎: 𝑚𝑒𝑑𝑖𝑎𝑛 𝑠𝑐𝑜𝑟𝑒 < 25

Ho:p≥0.5

Ha:p<0.5
P-value =Probability (1 or fewer) = 0.0351