MGMT2263

Worksheet #5 Solutions

 

Question 1

Ho: median 1 = median 2 = median 3

Ha: not all are equal

The degrees of freedom is 2. Reject Ho if KW > 5.9915

Here are the ranks for each class with their respective totals:

T1 = 1 + 5 + 10 + 10 + 15 + 16.5 + 20 = 77.5

T2 = 2 + 3 + 7.5 + 13.5 + 18 + 19 + 21 = 84

T3 = 4 + 6 + 7.5 + 10 + 12 + 13.5 + 16.5 = 69.5

As a check, T1 + T2 + T3 = 231 = 21(22)/2.

KW = (12/(21)(22))(77.52/7 + 842/7 + 69.52/7) – 3(22) = 0.3915

Do not reject Ho.

Conclude there is no significant difference in the grades of the students from the 3 classes.

 

Question 2

Ho: median 1 = median 2 = median 3 = median 4 = median 5 = median 6

Ha: not all are equal

The degrees of freedom is 5. Reject Ho if FR > 11.0705

This crosstab shows the ranks within each block as well as the rank sums:

 

A

B

C

D

E

F

Person #1

6

3

1

3

3

5

Person #2

4

4

4

1.5

6

1.5

Person #3

3

5.5

3

1

5.5

3

Person #4

3

4.5

4.5

2

6

1

Person #5

5.5

3.5

3.5

2

5.5

1

Person #6

6

5

1

3

4

2

Person #7

3

4

5.5

5.5

1

2

Person #8

4.5

1.5

1.5

4.5

3

6

Person #9

3.5

3.5

3.5

3.5

3.5

3.5

Person #10

3

3

1

5

6

3

Total

41.5

37.5

28.5

31

43.5

28

As a check the rank sums total to 210. The rank sum for each block is 21 multiplied by 10 blocks to get 210.

FR = (12/[(10)(6)(7)](41.52 + 37.52 + 28.52 + 312 + 43.52 + 282) – 3(10)(7) = 6.5143

Do not reject Ho.

Conclude there is no significant difference in how the exhibits are rated.

 

Question 3

Sxy = 26,370 – 10(762)(2.85) = 4,653

Sxx = 9(144,206.6667) = 1,297,860

b1 = 4,653/1,297,860 = 0.0036 after rounding to 4 decimals.

b0 = 2.85 – 0.0036(762) = 0.1181 after rounding to 4 decimals.

The model is: time = 0.1181 + (0.0036)(distance)

 

Question 4

We already have Sxy and Sxx from question 1.

Syy = 9(2.058333) = 18.525

r2 = 4,6532/[(1,297,860)(18.525)] = 0.9005 = 90.05%

 

Question 5

Ho: B1 = 0

Ha: B1 ¹ 0

The degrees of freedom are 1 and 8. Reject Ho if F > 5.32

Here is the ANOVA table:

 

df

SS

MS

F

Regression

1

16.6816

16.6816

72.3959

Residual

8

1.8434

0.2304

 

Total

9

18.5250

 

 

F = 72.3959

Reject Ho. Conclude the model is significant.

 

Question 6

Sb1 = sqrt(0.2304/1,297,860) = 0.000421334

The t value is 2.306 since we have 8 degrees of freedom.

Lower limit = 0.0036 – 2.306(0.000421334) = 0.0036 – 0.00097 = 0.0026 after rounding to 4 decimals

Upper limit = 0.0036 + 0.00097 = 0.0046

0.0026 < B1 < 0.0046. Since the hypothesized coefficient of zero is not in the 95% confidence interval for B1, we would reject Ho at a 5% level of significance.

 

Question 7

From the ANOVA table, the estimate of the common variance of the residuals is 0.2304.

 

Question 8

Ho: B1 £ 0

Ha: B1 > 0

The degrees of freedom = 8. Reject Ho if t > 1.86

t = 0.003585/0.000421334 = 8.51 (which also equals the square root of 72.3959 from the ANOVA table)

Reject Ho

Conclude that there is a significant direct relationship between the variables.

 

Question 9

time = 0.1181 + (0.0036)(500) = 1.91 after rounding to 2 decimals. It may be wise to use the values for b0 and b1 from your calculator to derive this answer.

 

Question 10

Lower limit = 1.91 – 2.306*sqrt(0.2304)*sqrt(1/10 + (500-762)2/1,297,860) = 1.91 – 0.4328 = 1.48 after rounding to 2 decimals.

Upper limit = 1.91 + 0.4328 = 2.34

1.48 < my < 2.34 for a distance of 500 miles

 

Question 11

Lower limit = 1.91 - 2.306*sqrt(0.2304)*sqrt(1 + 1/10 + (500-762)2/1,297,860) = 1.91 – 1.1885 = 0.72 after rounding to 2 decimals

Upper limit = 1.91 + 1.1885 = 3.1

0.72 < y < 3.1 for a distance of 500 miles

 

Question 12

Sxy = 3,115.036 – 10(1.76)(175.92) = 18.844

Sxx = 9(0.0278222) = 0.2504

b1 = 18.844/0.2504 = 75.2556 after rounding to 4 decimals.

b0 = 175.92 – 75.2556(1.76) = 43.4702 after rounding to 4 decimals.

The model is: price = 43.4702 + 75.2556(size)

 

Question 13

We already have Sxy and Sxx from question 8.

Syy = 9(178.004) = 1,602.036

r2 = 18.8842/[(0.2504)(1,602.036)] = 0.8852 = 88.52%

 

Question 14

Ho: B1 = 0

Ha: B1 ¹ 0

The degrees of freedom are 1 and 8. Reject Ho if F > 5.32

Here is the ANOVA table:

 

df

SS

MS

F

Regression

1

1418.1164

1418.1164

61.6842

Residual

8

183.9196

22.9900

 

Total

9

1602.0360

 

 

F = 61.6842

Reject Ho. Conclude the model is significant.

 

Question 15

Sb1 = sqrt(22.99/0.2504) = 9.5819

The t value is 2.306 since we have 8 degrees of freedom.

Lower limit = 75.2556 – 2.306(9.5819) = 75.2556 – 22.0959 = 53.1597 after rounding to 4 decimals

Upper limit = 75.2556 + 22.0959 = 97.3515

53.1597 < B1 < 97.3515. Since the hypothesized coefficient of zero is not in the 95% confidence interval for B1, we would reject Ho at a 5% level of significance.

 

Question 16

price = 43.4702 + 75.2556(1.5) = 156.354. We multiply this by 1000 to get 156,354 which rounds to 156,400.

 

Question 17

Lower limit = 156.354 – 2.306*sqrt(22.99)*sqrt(1/10 + (1.5-1.76)2/0.2504) = 156.354 – 6.725 = 149.629

Upper limit = 156.354 + 6.725 = 163.079

We multiply these limits by 1000 to get 149,629 and 163,079. We round these to 149,600 and 163,100 respectively.

149,600 < my < 163,100 for an area of 1500 square feet

 

Question 18

Lower limit = 156.354 – 2.306*sqrt(22.99)*sqrt(1 + 1/10 + (1.5-1.76)2/0.2504) = 156.354 – 12.942 = 143.412

Upper limit = 156.354 + 12.942 = 169.296

We multiply these limits by 1000 to get 143,412 and 169,296. We round these to 143,400 and 169,300 respectively.

143,400 < y < 169,300 for an area of 1500 square feet