Indian Institute of Management Lucknow

Post Graduate Programme: QAM II

End-term Examination 2021: Section D, E & F

Course Instructor: Kaustav Banerjee

Full Marks: 40 Duration: 120 min

Instructions: Use calculator for computations. You can use the formula provided at the end.

1. Based on interviews of couples seeking divorces, a social worker compiles the following
data related to the period of acquaintanceship before marriage and the duration of mar-
riage. Perform a test to determine if the data substantiate an association between the
stability of a marriage and the period of acquaintanceship prior to marriage. (3+5)

Duration of Marriage
Acquaintanceship before Marriage ≤ 4 years > 4 years Total
< 6 months 11 8 19
6 − 18 months 28 24 52
> 18 months 21 19 40
Total 60 51 111

(a) Formulate the null and alternative hypotheses.

(b) Carry out the test and draw your conclusion in simple words at 5% level.

2. To examine the quality of a random number generator, frequency counts of the integers
are recorded from an output of 500 integers. The concept of randomness implies that
the integers 0, 1, ..., 9 are equally likely. Based on the observed frequency counts, would
you suspect any bias of the random number generator? (3+5)

Integer 0 1 2 3 4 5 6 7 8 9 Total
Frequency 41 58 51 61 39 56 45 35 62 52 500

(a) Formulate the null and alternative hypotheses.

(b) Carry out the test and draw your conclusion in simple words at 5% level.

3. An antibiotic for pneumonia was injected into 100 patients with kidney malfunctions
(called uremic patients) and 100 patients with no kidney malfunctions (called normal
patients). Some allergic reaction developed in 38 of the uremic patients and 21 of the
normal patients. (4+4)
(a) Do the data provide strong evidence that the rate of incidence of allergic reaction to
the antibiotic is higher in uremic patients than normal patients? Test at 5% level.
(b) Construct a 95% confidence interval for the difference between the rate of incidence
and draw your conclusions.

4. A sample of river water is divided into two specimens. One is randomly selected to be
sent to Lab A and the other is sent to Lab B. This is repeated for a total of nine times.

1
 The measurement of suspended solids at Lab B is subtracted from that of Lab A to
obtain the differences

12 10 15 42 11 −4 − 2 10 −7

(a) Is there strong evidence that the mean difference is not zero? Test at 5% level.
(b) Construct 95% confidence interval for the mean difference of the suspended solids
measurements and draw your conclusions. (4+4)

5 Students can bike to a park on the other side of a lake by going around one side of
the lake or the other. After much discussion about which was faster, they decided to
perform an experiment. Among the 12 students available, 6 were randomly selected to
follow Path A on one side of the lake and the rest followed Path B on the other side.
They all went on different days so the conclusion would apply to a variety of conditions.

Path A 10 12 15 11 16 11
Path B 12 15 17 13 18 16

(a) Is there a significant difference (at 5% level) between the mean travel times between
the two paths? State the assumptions you have made in performing the test.
(b) Construct 95% confidence interval for the mean difference between the travel times
and draw your conclusions. (4+4)

2
 Some Necessary Formulae
(symbols have their usual interpretation)

Test for equality of means of two independent populations

Two-sample t -test
Test statistic for H0 : µx = µy

X̄ − Ȳ H0 (n1 − 1) × Sx2 + (n2 − 1) × Sy2

t= q ∼ tn1 +n2 −2 where S 2 =
S 1
+ 1 n1 + n2 − 2
n1 n2

100(1 − α)% Confidence interval for (µx − µy )

( s s )
1 1 1 1
(X̄ − Ȳ ) − tα/2;(n1 +n2 −2) × S + , (X̄ − Ȳ ) + tα/2;(n1 +n2 −2) × S +
n1 n2 n1 n2

Test for equality of means of two dependent populations

Paired sample t -test
Test statistic for H0 : µD = µx − µy = 0
√ n
n × D̄ H0 2 1 X
t= ∼ tn−1 where SD = (Di − D̄)2
SD n − 1 i=1

and Di = Xi − Yi denotes i’th paired differences, i = 1(1)n.

100(1 − α)% Confidence interval for (µx − µy )
( )
SD SD
(X̄ − Ȳ ) − tα/2;(n−1) × √ , (X̄ − Ȳ ) + tα/2;(n−1) × √
n n

Test for equality of variances of two independent populations

F -test
H
Test statistic for H0 : σx = σy ; F = Sx2 /Sy2 ∼0 Fn1 −1,n2 −1
100(1 − α)% Confidence interval for σx /σy
( )
1 S2 S2
× x2 , Fα/2;(n2 −1),(n1 −1) × x2
Fα/2;(n1 −1),(n2 −1) Sy Sy

Test for equality of proportions of two independent populations

Test statistic for H0 : p1 = p2
s
1 1 n1 × p̄1 + n2 × p̄2
 
H0
Z = (p̄1 − p̄2 )/ p̄(1 − p̄) + ∼ N (0, 1) where p̄ =
n1 n2 n1 + n2

The distribution of Z holds approximately for large sample sizes.

100(1 − α)% Confidence interval for p1 − p2
 s s 
 p̄1 (1 − p̄1 ) p̄2 (1 − p̄2 ) p̄1 (1 − p̄1 ) p̄2 (1 − p̄2 ) 
(p̄1 − p̄2 ) − Zα/2 + , (p̄1 − p̄2 ) + Zα/2 +
 n1 n2 n1 n2 

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Test for goodness of fit
Test statistic for H0 that the observed and expected counts match

X (Observed count - Expected count)2 H0 2

T = ∼ χk−1
Expected count

where k represents the number of categories to compare. In case of parameter estimation, the
degrees of freedom will be reduced further, by the number of parameters estimated.
Test for association
Test statistic for H0 that there is no association
X (Observed count - Expected count)2 H0 2
T = ∼ χ(I−1)(J−1)
Expected count

where I and J denote the number of categories present in the two categorical variables under
comparison.
One-way ANOVA
Computational steps
TSS = ki=1 nj=1 x2ij − n × x̄2G , where x̄G denotes the grand mean
P P i
Pk
SSB = i=1 (x̄i − x̄G )2 × ni , where x̄i denotes the sample mean of the i’th group
SSW = ki=1 (ni − 1) × Si2 , where Si2 denotes sample variance of the i’th group
P

TSS = SSB + SSW

Test statistic
SSB/(k − 1) H0
F = ∼ Fk−1,n−k
SSW/(n − k)
under the null hypothesis that the population group means are equal.
Two-way ANOVA
Computational steps
TSS = bi=1 kj=1 x2ij − b × k × x̄2G
P P

SSC = b × kj=1 (x̄0j − x̄G )2 is the sum of squares due to columns

P

SSR = k × bi=1 (x̄i0 − x̄G )2 is the sum of squares due to rows

P

TSS = SSC + SSR + RSS, RSS being the residual sum of squares
Test statistics
SSC/(k − 1) H0
F1 = ∼ Fk−1,(b−1)(k−1)
RSS/(b − 1)(k − 1)
under the null hypothesis that the k column means are equal.

SSR/(b − 1) H0
F2 = ∼ Fb−1,(b−1)(k−1)
RSS/(b − 1)(k − 1)

under the null hypothesis that the b row/block means are equal.