Business Statistics

Assignment
BY GROUP 6
SECTION A
Problem1:
A case-control study was conducted to identify reasons for exceptionally high rate of lung cancer among male
residents of coastal Georgia. The primary risk factor under investigation was employment in shipyards during
World War II. Is there any significant difference that lung cancer affected more when working in shipyard?

Cases: Specific diseases are ascertained

Control: Disease free individuals H1 : Lung cancer and ship building working are not independent.
i.e., There is significant difference that Lung cancer affected more
    Lung Cancer
    Cases Control
when working in shipyard.
Ship Yes 11 35
Building H0: Lung cancer and ship building working are independent. i.e.,
Working
      There is not significant difference that lung cancer affected more
No 50 203
when working in shipyard.
    61 238
Expected Frequencies (fe):
a=11
E(a)= (a+b)*(a+c) = 46*61 = 9.38
b=35
c=50 N 299
d=203
N=299 (11+35+50+203) E(b)= (a+b)*(b+d) = 46*238 = 36.61
N 299

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Problem 1: Df= (2-1)*(2-1)
Degree of freedom=1
Critical Value(0.05,1)= 3.84
E(c) = (a+c)*(c+d) = 61*253 = 36.61 Critical Value(0.05,1)= 3.84
N 299   2
= [(fo-fe)]
E(e)= (b+d)*(c+d) = 238*253 = 201.38
fe
N 299
2
fo fx fo fe Fo-fe (fo-fe)2 Table value=
a E(a) 11 9.38 1.62 2.624 0.279 Reject H0 at 5% 1.0.5 if

b E(b) 35 36.61 -1.61 2.592 0.070 Here,

Therefore, Accept Ho at 5% 1.0.5
c E(c) 50 51.61 -1.61 2.592 0.051 Conclusion: We have accepted H0 at 5%
d E(d) 203 201.38 1.62 2.624 0.013 (0.05,1) i.e., There is no significant
difference that lung cancer affected more
0.4130 when working in shipyard.

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Problem 2:
The weight of 10 cows before they are subjected to a change in diet and their weight after a change of 6
months is recorded below. Is there significant gain in weight after change in diet at 5% significance level? 

SL. No.  1  2  3  4  5  6  7  8  9  10
Before diet  109  112  98  114  102 97  88  101 89  91
   
After change 115  120 99  117  105 98  91  99  93  89
of  diet    

Solution:
• First, we test significant variation in weight of the cows before and after the change in diet. Next, we test
whether there is a significant gain in weight after change in diet.
Problem 2:
Variance Batch 1 = 𝞼21 Variance Batch 2 = 𝞼22
H0: 𝞼21 = 𝞼22
P-value = 2*F.DIST.RT( 1.438, 9, 9) = 0.60
H1: 𝞼21 ≠ 𝞼22
Hence, there is no significant variation in weight of
n1 10 xbar1 100.10 DoF 9 the cows before and after the change in diet.
xbar2 102.60 DoF 9
n2 10
S1 9.34
Level of
significance 5% S2
11.20

Test Statistic = S22 = 1.438

S12
F.INV(0.025,9,9). = 0.25
F.INV(0.975,9,9). = 4.026

Here, F0.025, 9, 9 < T < F0.975, 9, 9

Hence, accept H0.
Problem 2:

Now, we test mean weight of cows,

H0: µ1 = µ2 P-value = T.DIST.2T(abs(-0.542), 18) = 0.594
H1: µ1 ≠ µ2
Hence, there is no significant gain in weight
S1 = S2 ,
2 2
after change in diet.
Sp = 10.31

= -0.542

t(0.05,18) = T.INV.2T(0.05, 18) = 2.445

| T | < | t(0.05,18) |
Hence, we can accept H0.
Problem 3:
The correlation coefficient between verbal and math score for a sample of 20 students was found to be 0.203. Is
there any correlation between verbal and math score for the students population?

n = Sample Size = 20
r = Sample correlation coefficient = 0.203

H0: ρ = 0   
There is no correlation between verbal and maths score for
the student population

H1 : ρ ≠ 0  
There is a correlation between verbal and math scores for
the population

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Problem 3:
We assume level of significance to be 5% , Degree of Freedom : υ = n – 2 = 18,        

According to the t distribution table, at υ=18 and

l.o.s = 0.05
tt,0.05,18 = 2.1009

Since,
tcal ≤ tt,0.05,18      

0.8796 ≤ 2.1009 
We will accept H0

Conclusion:
There is no correlation between verbal and
math score for the students population.

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Problem 4:
The correlation coefficient between brother’s height and sister’s height of 53 brothers and sisters pair was
found 0.585. Is this coefficient significantly smaller than 0.80?
 GIVEN:
n=53
r=0.585

STEP 1: State the hypothesis

Ho
Ha< 0.80

STEP 2: Calculate Test Statistic

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Problem 4:

STEP 3: Determine critical value based on significance level

For,
Degrees of freedom = n-2 = 51 &
level of significance= 0.05
t0.05 = 1.68

STEP 4: Compare Critical value with test statistic and

determine whether or not to reject null hypothesis
Here,
It’s a lower tailed test and Test Statistic > t0.05

Hence, we cannot reject null hypothesis

Therefore, we cannot be sure that correlation
coefficient is significantly smaller than 0.8

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THANK YOU !

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