This website uses cookies to ensure you have the best experience.

# Statistics Test Essay

1108 words - 5 pages

Name: ______________________

MID-TERM

EXAM I

There are a total of 5 questions.
Question 1 is mandatory.
Answer any, but only 3 of the remaining 4 questions.

Question 1 (has 5 parts)

1 Consider the data shown in the scatter plot below.

Which of the following statements is true about the correlation between X and Y.

a) X and Y are mildly, positively correlated

b) X and Y are perfectly, positively correlated

c) X and Y are mildly, negatively correlated

d) X and Y are perfectly, negatively correlated

e) X and Y are not correlated OR From the information given, we cannot tell whether X and Y are correlated

2 Five students from ...view middle of the document...

5 Which of the following best describes the data in the figure below? Base your answer on the appearance of the histogram. You do not need to do any calculations. Select just one statement below and complete it.

Histogram of bond prices at default, 1974-1995. (Source: Moody’s Investor Services)

(a) The mean is greater than the median because _____

(b) The median is greater than the mean because ____________________________

(c) The mean and the median are roughly the same because ________________________
Question 2

Elaine Benes is considering three possible ways to invest the \$200,000 she has just inherited.

1. Some of her friends are considering financing a combined laundromat, video-game arcade, and pizzeria, where the young singles in the area can meet and play while doing their laundry. This venture is highly risky and could result in either a major loss or a substantial gain within a year. Elaine estimates that the chances of losing all the money (i.e. loss of \$200,000) are 60%, while the chances of making a \$200,000 profit are 40%.

2. She can invest in some new apartments that are being built in town. Within 1 year, this fairly conservative project will produce a profit of at least \$10,000, but it might yield \$20,000 or even \$30,000. Elaine estimates the probabilities of these yields at 20%, 55%, and 25% respectively.

3. Elaine can invest in some private securities that have a current yield of 8.25%.

(a) On the next page, construct a decision tree for Elaine to decide how to invest her money. Which investment will maximize her expected 1-year profit?

(b) How much should she be willing to pay for perfect information about the success of the laundromat? Please answer this question in the space provided here.

(c) How much should she be willing to pay for perfect information about the success of the apartments? Please answer this question in the space provided here.

Question 3

The IRS has studied the frequency of errors in tax form B-7014, a two-page form. The probability of error on the first page is 0.1. Given that the first page has an error, the probability...

## Other Papers Like Statistics Test

### Non-Parametric Hypothesis Testing Paper

904 words - 4 pages which gives us a critical value of 20. Sum of Ranks for Top 25 Sum of Ranks for Bottom 29 Test Stat W (1 Tailed) 20 Top Ranks > Test Stat Fail to Reject Null Step 3: Choose a test statistic Since we used the 2-sample t-test, one non-parametric equivalent is the Wilcoxon rank-sum test (or the Mann-Whitney U test which do the same thing). My statistics text has a table of values for Wilcoxon rank-sum test and the test statistic is W

### Demand Forecasting Essay

1806 words - 8 pages Friedman analysis of variance. While these parametric and nonparametric tests can be calculated by hand, they are fairly complicated and a bit tedious, so most evaluators rely on computerized statistical programs. Therefore, each test will be described in this section, but no hand calculations will be provided. For individuals interested in the manual calculations, any good statistics book will provide the formulas and necessary steps

1075 words - 5 pages What I’ve Learned about Statistics Statistics is all around us that, in fact, it would be difficult to go through the day without being flooded with some sort of statistics or statistical information. It is so commonly used in everyday conversations – be it regarding customer surveys, weather forecasts, political polls, or sports statistics – that we find it difficult to differentiate flawed from actual valid claims. So many times we hear

### Essay On Research Critique Part 2

635 words - 3 pages data report and its preciseness and correctness of information is important. QUANTATIVE ANALYSIS Ickovics et al 2003 utilize both descriptive and inferential statistics to scrutinize the data, the reason for the study was to evaluate the difference among the two groups, for the inferential statistics the McNemar test was used, which was suitable for the degree of enquiry due to the matched group, the Cohort design was also implemented as they

### Busn311-Quantitative Methods and Analysis -Apa Format

769 words - 4 pages . Introduction The lesson required the student to use statistics to formulate hypotheses about office job satisfaction surveys and then test them to see if those same hypotheses should be rejected. The student was required to use Excel to conduct t tests, calculate test statistics and critical values. Finally, the student had to interpret the statistical results to make observations for an office manager. Hypothesis Test #1 Looking at

### Hypothesis

1596 words - 7 pages “Descriptive Statistics”, which provides useful statistics pertaining to a variable like mean, median, mode, standard deviation, kurtosis, skewness etc. These statistics provide information about central tendency, dispersion and skewness of the data and are very useful information about the variable under consideration. This test speaks about a single variable. Many times we need to know more about a pair of sample and also about the

### Two Population Means

378 words - 2 pages University of Phoenix Material Two Population Means A tomato farmer with a very large farm of approximately 2200 acres had heard about a new type of rather expensive fertilizer which would supposedly significantly increase his production. The frugal farmer wanted to test the new fertilizer before committing the large investment required to fertilize a farm of his size. He therefore selected 15 parcels of land on his property and divided

643 words - 3 pages Descriptive Statistics Introduction This week’s team assignment is to collect the team member’s descriptive statistics for week four incorporating the best elements into one team data analysis paper, including data and charts. Descriptive Statistics The research topic for this paper is “McDonald’s is Closing Hundreds of Stores.” As part of the research a sample size of 400 was selected to ensure accuracy of results based on the

### Non Parametric Testing

1766 words - 8 pages - step hypothesis test, the information will be posted along with any additional differences from the previous work using the parametric procedures. According to Applied Statistics, the advantages to non-parametric testing includes that, among other reasons, it’s “generally more powerful than parametric test when normality cannot be assumed” (Doane, 2007). Hypothesis The purpose of this research is to determine if the null hypothesis population

### Uses of Statistical Information

996 words - 4 pages diseases there are in the hospital, to estimate incidence and prevalence and number of deaths in the hospital. Each unit is thorough with evaluating outcomes by performing a pre-test, audit on the charts, and a post-test along with another audit. Statistics Used Descriptive statistics are used in the workplace to describe and share specific data to get information, but not draw any conclusions. According to Bennett, Briggs, and Triola (2009

### Analyzing and Interpreting Data

1203 words - 5 pages and high turnover with the organization. This report will analyze B survey, explain the results, and provide a recommendation for the problems uncovered the analysis of BIMS workforce. This report will define statistics and introduce how to analyze and interpret data. The case study used in this report is BIMS LLC, a cleaning, and housekeeping company. This report will present how number data and graphing is used in analyzing data. This report

## Related Essays

### T Test Statistics Essay

1288 words - 6 pages . “The patients selected for the study were considered to have ‘normal’ preoperative verbal memory, defined as having preoperative performance across the learning (Acquisition) and long delayed free recall (Retrieval) portions of the California Verbal Learning Test (CVLT) of at least a T score above 40 (> 16%ile). The CVLT Acquisition score is the total number of words recalled across the five learning trials. The CVLT Retrieval score is defined

### Distinguish Between Parametric And Nonparametric Statistics And Discuss When To Use Each Method In Analysis Of Data

763 words - 4 pages which is 365 days. Ratio data on the other hand describe measurements with attributes that have the qualities of nominal, ordinal and interval data and a true zero point can be defined e.g. height and weight. Examples of parametric tests include t-test, f test and z test. ii. Nonparametric Statistics: Nonparametric statistics are used when the population from which the samples are selected is not normally distributed. These statistics are

### Descriptive And Inferential Statistics Essay

1251 words - 6 pages developed with the aid of testing prior to the drawing of a conclusion. Psychologist may use any data collected through descriptive statistics and inferential statistics simply to test a hypothesis, therefore both branches of statistical methods complement each other for the benefit of research pertaining to theory. In conclusion, statistics help take a collection of data and present it in an understandable way. Even though descriptive and

### Descriptive And Inferential Statistics Paper

1210 words - 5 pages and formulate their hypothesis and test these and refute these or prove them. We found out that there are 2 different kinds of statistics. Based on the definitions and example which were provided there are distinct differences between descriptive and inferential statistics. Descriptive statistic can describe a population in which data is collected either by sample or that population. Descriptive statistics is more commonly used when