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TUTORIAL 8

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INCEIF
The Global University in Islamic finance
Kuala Lumpur, Malaysia
MASTERS IN ISLAMIC FINANCE PRACTICE (MIFP)
Assignment for
QM5013 QUANTITATIVE ANALYSIS "Topic " Tutorial EIGHT Answers
Semester June, 2014
Facilitator: PROF. Assoc. Prof Dr. Baharom Abd Hamid Name: MUSTAFA KASSIM AHMED
ID: 1100386

TUTORIAL 8

QUANTITATIVE ANALYSIS

QUESTION 1:

A sample of 40 observations is selected from one population with a population standard deviation of 5. The sample mean is 102. A sample of 50 observations is selected from a second population with a population standard deviation of 6. The sample mean is 99. Conduct the following test of hypothesis using the .04 significance level.

H0: μ1 = μ2
H1: μ1 ≠ μ2

a. Is this a …show more content…

Reject H0, because z > 2.33.
QUESTION 5:

The research department at the home office of New Hampshire Insurance conducts on-going research on the causes of auto mobile accidents, the characteristics of the drivers, and so on. A random sample of 400 policies written on single persons revealed 120 had at least one accident in the previous three-year period. Similarly, a sample of 600 policies written on married persons revealed that 150 had been in at least one accident. At the .05 significance difference in the proportions of single and married persons having an accident during a three-year period? Determine the p-value.
Solution
Given: n1 = 400, x1 = 120, n2 = 600, x2= 150
a. H0: µ1 = µ2 H1: µ1 ≠ µ2
b.  = 0.05 , critical point 1.96
c. Reject Ho, if z > 1.96 or –z < -1.96
d. Computation

P1 = x1/n1 = 120/400= 0.3
P2 = x2/n2 = 150/600= 0.25
Pc = = = 0.27

Z = = = = 1.74
Accept Ho, because z < 1.96

P-value P (z > 1.74) = 0.4591, accept Ho because P-value > 0.05

QUESTION 6:
Ms Lisa Monnin is the budget director for Nexus Media Inc. She would like to compare the daily travel expenses for the sales staff and the audit staff. She collected the following sample information.
At the .10 significance level, can she conclude that the mean daily expenses are greater for the sales staff than the audit staff? What is the p-value?
Solution
Given:
a. H0: µ1 ≤

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