Homework 3
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Pennsylvania State University *
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Mathematics
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Jan 9, 2024
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docx
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Uploaded by MajorNeutron12395
MTH 1014
Homework 3
Due: October 31 2023 at 1:50pm
All work must be shown
1.
The following table shows the cross-classification of hedge funds by market capitalization (either small,
mid, or large cap) and objective (either growth or value).
Growth
Value
Large Cap
23
19
Mid Cap
9
10
Small Cap
17
72
Does the evidence suggest market capitalization and objective are dependent at the
5% significance level?
2.
MARS claims that Skittles candies should be comprised of 30% purple, 10% orange, and
20% should be red, yellow, and green. Business students count a large bag of Skittles and
find 265 red, 279 purple, 303 yellow, 271 green, and 212 orange candies.
Does the evidence suggest that at least one proportion is different from the claimed value
at the 5% significance level?
3.
A manufacturer has test-marketed a new men s cologne. Simple random samples of male
ʹ
students at a university were asked to try the product for four weeks and then were asked
the question: Would you purchase the product? The results are shown in the following
ʺ
ʺ
table:
Soph.
Jr.
Sr.
Will not purchase
13
12
25
Will purchase
87
88
275
Would you conclude the respondents preferences are independent of year in college? Conduct
ʹ
the test at α = 0.05.
4.
The manager of a commercial mortgage department of a large bank has collected data
during the past two years concerning the number of commercial mortgages approved per
week. The results from these two years (104 weeks) indicated the following:
Does the distribution of commercial mortgages approved per week follow a Poisson
distribution? (Use the 0.01 level of significance.)
5.
The following table shows the observed frequencies of the quarterly returns for a sample
of 60 hedge funds. The table also contains the hypothesized proportions of each class
assuming the quarterly returns have a normal distribution. The sample mean and standard
deviation are 3.6% and 7.4% respectively.
Class
Observed
Return < −5
14
−5 ≤ Return < 0
11
0 ≤ Return < 5
10
5 ≤ Return < 10
11
Return ≥ 10
14
Does the evidence suggest that the quarterly returns do not have a normal distribution at the
10% significance level?
Mortgages
Approved
Frequency
0
14
1
18
2
26
3
19
4
19
5
16
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