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2024 Tutorial 10

This document contains 7 practice problems involving chi-square goodness of fit and independence tests. The problems cover topics such as testing population proportions, determining if customer rating distributions differ between airlines and telephone companies, and assessing independence between variables such as health insurance coverage and company size. The assistant is asked to summarize the high-level purpose and content of the document in 3 sentences or less.

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hathutrang742003
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28 views

2024 Tutorial 10

This document contains 7 practice problems involving chi-square goodness of fit and independence tests. The problems cover topics such as testing population proportions, determining if customer rating distributions differ between airlines and telephone companies, and assessing independence between variables such as health insurance coverage and company size. The assistant is asked to summarize the high-level purpose and content of the document in 3 sentences or less.

Uploaded by

hathutrang742003
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Tutorial 10

10.1. Test the following hypotheses by using the  2 goodness of fit test.
H 0 :  A  .04,  B  .04 and C  .02 .
H a : The population proportions are not  A  .04,  B  .04 and C  .02 .
A sample of size 200 yielded 60 in category A, 120 in category B, and 20 in category C. Use
  .01 and test to see whether the proportions are as stated in H 0 .
a. Use the p  value approach.
b. Repeat the test using the critical value approach.

10.2. M&M/MARS, makers of M&M® chocolate candies, conducted a national poll in which
more than 10 million people indicated their preference for a new color. The tally of this poll
resulted in the replacement of tan-colored M&Ms with a new blue color. In the brochure “Colors,”
made available by M&M/MARS Consumer Affairs, the distribution of colors for the plain candies
is as follows:

In a follow-up study, samples of 1-pound bags were used to determine whether the reported
percentages were indeed valid. The following results were obtained for one sample of 506 plain
candies.

Use   .05 to determine whether these data support the percentages reported by the company.
10.3. How well do airline companies serve their customers? A study showed the following
customer ratings: 3% excellent, 28% good, 45% fair, and 24% poor (BusinessWeek, September
11, 2000). In a follow-up study of service by telephone companies, assume that a sample of 400
adults found the following customer ratings: 24 excellent, 124 good, 172 fair, and 80 poor. Is the
distribution of the customer ratings for telephone companies different from the distribution of
customer ratings for airline companies? Test with   .01 . What is your conclusion?
10.4. The following 2 × 3 contingency table contains observed frequencies for a sample of 200.
Test for independence of the row and column variables using the  2 test with   .05 .

10.5. One of the questions on the BusinessWeek Subscriber Study was, “In the past 12 months,
when traveling for business, what type of airline ticket did you purchase most often?” The data
obtained are shown in the following contingency table.

Use   .05 and test for the independence of type of flight and type of ticket. What is your
conclusion?
10.6. With double-digit annual percentage increases in the cost of health insurance, more and
more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The
following sample data provide a comparison of workers with and without health insurance
coverage for small, medium, and large companies. For the purposes of this study, small
companies are companies that have fewer than 100 employees. Medium companies have 100 to
999 employees, and large companies have 1000 or more employees. Sample data are reported
for 50 employees of small companies, 75 employees of medium companies, and 100 employees
of large companies.

a. Conduct a test of independence to determine whether employee health insurance coverage is


independent of the size of the company. Use   .05 . What is the p – value, and what is your
conclusion?
b. The USA Today article indicated employees of small companies are more likely to lack health
insurance coverage. Use percentages based on the preceding data to support this conclusion.
10.7. FlightStats, Inc., collects data on the number of flights scheduled and the number of flights
flown at major airports throughout the United States. FlightStats data showed 56% of flights
scheduled at Newark, La Guardia, and Kennedy airports were flown during a three-day
snowstorm (The Wall Street Journal, February 21, 2006). All airlines say they always operate
within set safety parameters—if conditions are too poor, they don’t fly. The following data show
a sample of 400 scheduled flights during the snowstorm.

Use the chi-square test of independence with a .05 level of significance to analyze the data. What
is your conclusion? Do you have a preference for which airline you would choose to fly during
similar snowstorm conditions? Explain.

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