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Inclass exercise
1.1
What is wrong?(5.10)
Explain what is wrong in each of the following scenarios.
1. In the binomial setting X is a proportion.
2. The variance for a binomial count is
r
p
(1

p
)
n
.
3. The normal approximation to the binomial distribution is always accurate when n is
greater than 1000.
1.2
Treatment and control group(5.61)
If we have a sample of n observations from a treatment group and an independent sample
of
m
observations of a control group. Suppose that the response to the treatment has the
N
(
μ
X
, σ
X
) distribution and that the response of control subjects has
N
(
μ
Y
, σ
Y
) distribu
tion. Inference about the diFerence
μ
Y

μ
X
between the population means is based on the
diFerence ¯
y

¯
x
between the sample means in the two groups.
1. Under the assumptions given, what is the distribution of ¯
y
or ¯
x
?
2. What is the distribution of ¯
y

¯
x
?
1
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This note was uploaded on 12/10/2010 for the course ECON 3101 taught by Professor Staff during the Spring '08 term at Minnesota.
 Spring '08
 Staff
 Economics

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