Assignment No.

4 (Course STA301) Fall 2011 (Total Marks 30)

Deadline
Your Assignment must be uploaded/ submitted before or on

19th Jan, 2012

STUDENTS ARE STRICTLY DIRECTED TO SUBMIT THEIR ASSIGNMENT BEFORE OR BY DUE DATE. NO ASSIGNMNENT AFTER DUE DATE WILL BE ACCEPTED VIA E.MAIL).

Rules for Marking

It should be clear that your Assignment will not get any credit IF: The Assignment submitted, via email, after due date. The submitted Assignment is not found as MS Word document file. There will be unnecessary, extra or irrelevant material. The Statistical notations/symbols are not well-written i.e., without using MathType software. The Assignment will be copied from handouts, internet or from any other students file. Copied material (from handouts, any book or by any website) will be awarded ZERO MARKS. It is PLAGIARISM and an Academic Crime. The medium of the course is English. Assignment in Urdu or Roman languages will not be accepted. Assignment means Comprehensive yet precise accurate details about the given topic quoting different sources (books/articles/websites etc.). Do not rely only on handouts. You can take data/information from different authentic sources (like books, magazines, website etc) BUT express/organize all the collected material in YOUR OWN WORDS. Only then you will get good marks.

Objective(s) of this Assignment:

The assignment is being uploaded to build up The concepts of students regarding the application of sampling distributions in estimation. The students BASIC concept regarding the estimation of parameters and hypothesis testing.

To enable the students that how to compute a good point estimator for estimation purpose.

Assignment 4 (Lessons 31-37)

Question 1: Marks: 7 + 3 = 10 a) A General Incorporated Mills packing machinery is known to pour dry cereal into economy size boxes with a standard deviation of 0.6 ounce. The two samples, taken from two machines, yield the following information: Machine A n1 = 21 X 1 = 21.9 Machine B n2 = 15 X 2 = 18.7

Assume the Machine-A is N ( 1 , 0.36) and Machine-B is N ( 2 , 0.36) , construct the 95.44% confidence interval for 1 2 . SOLUTION: Give data is: Machine A: n1 = 21, X 1 = 21.9, 12 = 0.36 Machine B: n2 = 15, X 2 = 18.7, 22 = 0.36 1 = 95.44% = 0.9544 = 0.0456 So, Z = Z 0.0456 = Z0.0228 = 2
2 2

As we know that the 100( 1 ) % confidence interval for 1 2 is given by:

( X 1 X 2 ) Z

2 12 2 + n1 n2

(21.9 18.7) 2

0.36 0.36 + 21 15

3.2 2(0.203) 3.2 0.406 3.2 0.406,3.2 + 0.406 2.794, 3.606 b) Why we call the standard deviation of sampling distribution of a sample statistic as the standard error of the statistic? SOLUTION: The deviation of sample statistic T from its parameter is considered an error. Hence the standard deviation of a sample statistic is called as standard error of the statistic. Question 2: Marks: 10

A random sample of 100 recorded deaths in an urban city during the past year showed an average life span of 71.8 years, with a standard deviation of 8.9 years. Does this seem to indicate that the average life span today is greater than the 70 years? (Use a 0.05 level of significance.) SOLUTION:

Step 1: Hypothesis: H 0 : 70 years H1 : > 70 years (one sided test ) Step 2 : Level of significance: = 0.05 Step 3 : Test-statistic & Computations: X 0 n = S = 8.9 71.8 70 Z= 8.9 100 Z = 2.02 z= Step 4 : Critical region: The critical region for = 0.05 is Z > 1.645 Step 5 : Conclusion: Since the calculated value of Z = 2.02 falls in the rejection region, so we reject H 0 and conclude that the average life span today is greater than 70 years. Question 3: Marks: 10

A population consist of N = 4 numbers 1, 3, 4 and 5. Find the proportion p of odd numbers in ALL possible samples of size n = 3 drawn without replacement by using the rule of combination. Also construct the sampling distribution of the proportion of odd numbers and find mean and variance of the sampling distribution. SOLUTION:

By rule of combination, the number of possible samples (without replacement):

N

Cn = 4C3 = 4

And samples are: No. 1 2 3 4 Samples 1, 3 , 4 1, 3 , 5 1, 4, 5 3, 4, 5

Now we find proportion p of odd values in the samples No. 1 2 3 4 Samples 1, 3 , 4 1, 3 , 5 1, 4, 5 3, 4, 5 x n 2/3 = 0.667 3/3 = 1.00 2/3 = 0.667 2/3 = 0.667 p=

The Sampling distribution of sample proportion p p 2/3 1 Total Mean: We know that p = pf ( p ) = 3 = 0.75 4 f 3 1 4 f ( p) 3/4 1/4 1 pf ( p ) 2/4 1/4 3/4 p2 f ( p ) 1/3 1/4 7/12

Variance: The variance is given by

 2 p = p 2 f ( p ) ( pf ( p ) ) 7 3 = = 0.583 0.562 12 4 = 0.0205

2

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