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
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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 ≤
So, we should reject the null hypothesis H0. At a 0.05 level of significance level, we conclude that there is a significant difference between the average height for females and the average height for the males.
Since 1.499893 < 9.488 we do not reject Ho. The answer is no as there is insufficient evidence to conclude that H1 is true.
Because the p-value of .035 is less than the significance level of .05, I will reject the null hypothesis at 5% level.
Use the Internet or Strayer Library to research articles on hypothesis test and its application in business. Select one (1) company or organization which utilized hypothesis test
Topics Distribution of the sample mean. Central Limit Theorem. Confidence intervals for a population mean. Confidence intervals for a population proportion. Sample size for a given confidence level and margin of error (proportions). Poll articles. Hypotheses tests for a mean, and differences in means (independent and paired samples). Sample size and power of a test. Type I and Type II errors. You will be given a table of normal probabilities. You may wish to be familiar with the follow formulae and their application.
The null hypothesis is rejected since the p-value is below the significance level of 0.05.
To test the null hypothesis, if the P-Value of the test is less than 0.05 I will reject the null hypothesis.
“Hypothesis testing is a decision-making process for evaluating claims about a population” (Bluman, 2013, p. 398). This process is used to determine if you will accept or reject the hypothesis. The claim is that the bottles contain less than 16 ounces. The null hypothesis is the soda bottles contain 16 ounces. The alternative hypothesis is the bottles contain less than 16 ounces. The significance level will be 0.05. The test method to be used is a t-score. The test statistic is calculated to be -11.24666539 and the P-value is 1.0. The P-value is the probability of observing a sample statistic as extreme as the test statistic, assuming the null hypothesis is true. The T Crit value is 1.69912702. The calculations show there is enough evidence to support the claim that the soda bottles do
The next table shows the results of this independent t-test. At the .05 significance level, can we conclude
Let’s use what you learned not only earlier in the class but also information from Module 7 for this assignment. Answer the following questions using your newfound knowledge about applying bivariate statistics and their p values to published results. Make sure you answer all parts of the question to get full credit.
Conclusion : Reject the null hypothesis. The sample provide enough evidence to support the claim that mean is significantly different from 12 .
A pharmaceutical company is testing the effectiveness of a new drug for lowering cholesterol. As part of this trial, they wish to determine whether there is a difference between the effectiveness for women and for men. Using = .05, what is the value the test statistic?
I rejected the null hypothesis and found out the p-value is smaller than the significance level. The p-value is greater than the significance level 0.05.
With a P-value of 0.00, we have a strong level of significance. No additional information is needed to ensure that the data given is accurate.
c. Then find the 95% confidence interval for the difference between proportions. From this confidence interval, can we conclude that there is a significant difference in the proportions?