BUAD 310 hw 4

BUAD 310 hw 4 - Ryan Sanders 7164539701 BUAD 310 Spring 09-...

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Ryan Sanders 7164539701 BUAD 310 –Spring 09- Dr. Arif Ansari Topics Covered –Hypothesis Testing, Correlation and Regression Homework # 4 - 100 points (Due date 10/28/2009- Wednesday) For Home Work 3, Turn in Question 1(20 points), Parts (c)-(l), Question 2 (20 points) and Question 3 (20 points), Question 4 (20 points), parts (a)-(j) and Question 5, parts (a)-(f) (20 points) 1. A sales manager believes that a firm’s sales representative should spend 40% of their working days traveling. If they are on the road for much less, new orders decline and the service and news-gathering functions of the representatives are not adequately met. If they travel much more than 40% of the time, expense accounts eat up any incremental profit. A study of the previous 5 months (110 working days) shows the following data (number of traveling days by each representative): (Problem 8.8 from text book page 324 – modified by me). Use significance level of 10% 32 33 34 35 37 38 39 40 41 42 43 44 44 44 45 46 48 49 50 51 52 53 54 55 57 58 59 60 61 70 a. Set up the appropriate null and alternative hypothesis to test that the average number of traveling days by representative is less than 44 days (Just to teach you to setup the hypothesis) b. Set up the appropriate null and alternative hypothesis to test that the average number of traveling days by representative is more than 44 days (Just to teach you to setup the hypothesis) c. Set up the appropriate null and alternative hypothesis to test that the average number of traveling days by representative is different from 44 days. μ = number of traveling days by representative H 0 : μ = 44 H a : μ ≠ 44 d. Among the three hypothesis you had setup, which is more appropriate hypothesis. (Answer: c) c, not equal to is the best Now answer the questions below based on the part (C), e. Calculate the Test-statistic? Is it a t-test statistics or Z-test statistics? 1
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Is a t-test statistic because the population standard deviation is unknown. T = (x – μ)/(s/(n) 1/2 ) = (47.1333 – 44)/(9.4677/(30) 1/2 ) = 1.813 f. What is the critical value? t .05, 29 = 1.699 g. What is the rejection rule? What is the rejection region? If test statistic falls in the rejection region, reject H 0 and conclude the H a is significant. If test statistic does not fall in the rejection region, don’t reject H 0 and conclude the H a is not significant. Rejection region is when t < -1.699 or when t > 1.699. h. State your conclusion? Therefore, reject the null hypothesis at the 10% level and conclude that the mean is not 44 days. i. Find the p-value. (Estimate it). Since we know the correct answer for this problem is to reject the null hypothesis at the 10% level, we can estimate the p-value with this knowledge. In order to reject the null judging by the p-value, the value would have to be less than α. Therefore, the p-value must be less than 0.1. Also P(|t| > |t
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This note was uploaded on 04/20/2011 for the course BUAD 310 taught by Professor Lv during the Spring '07 term at USC.

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BUAD 310 hw 4 - Ryan Sanders 7164539701 BUAD 310 Spring 09-...

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