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stAT FINAL - Final Exam Stat 51-10 Spring 2008 Name Due...

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Final Exam Stat 51-10, Spring 2008 Name: ________________ Due Date: May 12 th 2008 1. All work must be your own. You may not confer with any of your fellow classmates on this exam. Do not work with friends on this. 2. STAPLE your pages together. I will not accept unstapled work. This has caused many problems this semester with papers/pages being lost. The final exam is too important to not take 5 minutes to locate a stapler. Please print this page out and sign it, verifying that you did the exam on your own. If you cheat, you will fail the class. Please remember that as a statistician, I get paid to look for patterns in data. What this means is that I can readily see when people have cheated. Please, don’t do this. 3. This is due to me, in the classroom on May 12 th at 5:10 PM, Funger Room 207. I will be in the room until 5:30PM. If you don’t hand it in by then, I will not accept the final. a. The alternative hand in date/time is May 7 th at 9:00 AM in the Starbucks at Gelman Library. I’ll be there until 9:30 AM. 4. There will be NO excuses accepted for not handing the exam in by then unless presented to me far in advance. You have plenty of time to complete the exam in the time that is allotted. 5. Please do not call my cell phone with questions. Email only. If we need to meet, we can make an appointment. 6. 10 bonus points if you type the entire assignment. Every word must be typed to earn the bonus points (all or nothing). 7. For hypothesis testing problems. a. Clearly state the null and alternative hypothesis. b. Draw a diagram. This will help you get the answer correctly (plus you’ll lose points if you don’t). c. Clearly state which test you are using (i.e. large sample t-test, paired t-test, chi-square, etc.) d. Clearly state conclusion and interpretation. All work on this final exam is my own work. I did not confer with any fellow students in writing this exam. I agree to the above instructions. Signature ____________________________________
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Part 1: Case Studies (10 pts. Each) Question #1) Discount stores often introduce new merchandise at a special low price to induce people to try it. But in the mid- 1960s a prominent psychologist predicted that in the long run this practice would actually reduce sales. With the cooperation of a discount chain, an experiment was performed in 1968 to test this theory. A representative sample of 120 stores was chosen, and the stores were arranged into 60 pairs, matched according to characteristics like sales volume and location. These stores did not advertise, and displayed their merchandise in similar ways. A new kind of cookie was introduced in all 120 stores. Within each pair of stores, one was chosen at random to introduce the cookies at the special low price of 49 cents a box, with the price increasing to 69 cents after two weeks; the other store in the pair introduced the cookies at the regular price of 69 cents a box.
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