Individual Assignment: E-Text o Resource: Ch.

8 of Applied Statistics in Business and Economics o Prepare answers to the following assignments: Chapter Exercises 8.48 A sample of 20 pages was taken without replacement from the 1,591-page phone directory Ameritech Pages Plus Yellow Pages. On each page, the mean area devoted to display ads was measured (a display ad is a large block of multicolored illustrations, maps, and text). The data (in square millimeters) are shown below: 0 260 356 403 536 0 268 369 428 536 268 396 469 536 162 338 403 536 536 130 o (a) Construct a 95 percent confidence interval for the true mean. o (b) Why might normality be an issue here? o (c) What sample size would be needed to obtain an error of 10 square millimeters with 99 percent confidence? o (d) If this is not a reasonable requirement, suggest one that is. (Data are from a project by MBA student Daniel R. Dalach.)
(a) Construct a 95 percent confidence interval for the true mean. x-bar = 346.5 s = 170.378 t-critical value for 95% CI with df=19 = 2.093 E = 2.093*170.378/sqrt(20) = 2.0931.96*38.0976=79.74 95% CI : (346.5-79.74,346.5+79.74) --------------------------------------(b) Why might normality be an issue here The CI is a statement about the whole population. The random sample is probably not representative of the whole population. -----------------------------------------------------(c) What sample size would be needed to obtain an error of 10 square millimeters with 99 percent confidence? n = [t*s/E] n = [2.093*170.378/10]^2 = 1271.64 n = 1272 (when rounded up) ------------------------------------. (d) If this is not a reasonable requirement, suggest one that is. Increase E or decrease the confidence level; both will have the effect of lowering "n".

This is not a reasonable sample size, since that might even be more pages than the phone book contains! We should either lower the confidence requirement or raise the acceptable error.

Chapter Exercises 8.64 Biting an unpopped kernel of popcorn hurts! As an experiment, a self-confessed connoisseur of cheap popcorn carefully counted 773 kernels and put them in a popper. After popping, the unpopped kernels were counted. There were 86. o (a) Construct a 90 percent confidence interval for the proportion of all kernels that would not pop. o (b) Check the normality assumption. o (c) Try the Very Quick Rule. Does it work well here? Why, or why not? o (d) Why might this sample not be typical? (a) Construct a 90 percent confidence interval for the proportion of all kernels that would not pop. E = z*(p-hat/sqrt(n)) E = 1.645*sqrt[(86/773)(687/773)/773) = 0.01131 90% C.I. = ((86/773)-0.01131 , (86/773)+0.01131) ============================ (b) Check the normality assumption. pn= (86/773)773>5; nq=(687/773)773>5

ANOTHER ------------------(b) Check the normality assumption. Check pn>5 and qn>5

0.1113*773 = 86-plus ; q*p-hat is even larger ------------------------(c) Try the Very Quick Rule. Does it work well here?Why or why not? I am not familiar with that Rule. ----------------(d) Why might this sample not be typical? Since the C.I. is a statement about the whole population of popcorn kernnels, the sample here might not be representative.

Individual Assignment: Hypothesis Identification Article Analysis

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Use the University Library or the Electronic Reserve Readings to locate a peer-reviewed article that reports original research and pertains to a specific, stated hypothesis that was used to validate a research study. Use major databases in the Online Collection and the key search words research studies in to obtain an article. Select communication, finance, economics, marketing, technology, or another faculty approved topic for the research study. Prepare a 350- to 700-word analysis of your selected article. Start by identifying and summarizing the hypothesis described in the article. Explain whether the hypothesis was rejected or accepted and what the implications of this finding are for the study. Format your paper consistent with APA guidelines.