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Page 5 of 8 TOA - January Semester 2020

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Question 3

Suppose a training manager would like to carry out a hypothesis testing to evaluate
whether there is any difference in the effectiveness of two training methods. To test the
difference in the two methods, the manager randomly selected one group of 15
employees to undergo training method A and a second group of 12 employees to undergo
training method B. The test scores of the two methods are shown in Table Q3.

Training method A Training method B

52 50 52 44 56 54 59 55 65

45 47 53 47 48 57 52 64 53

43 51 42 42 44 56 53 53 57

Table Q3

(a) State the null and alternative hypothesis.


(2 marks)

(b) At 5 % level of significance, carry out a suitable hypothesis test to determine


whether there is any significance difference in the mean scores of the two groups
of employees. State any assumptions used.
(14 marks)

(c) Construct a 95 % confidence interval for the difference in the mean scores of the
two training methods.
(4 marks)

Question 4

(a) Table Q4(a) shows the number of washing machines sold and the amount of
money spent on advertising (in thousands of dollars $) for a company as recorded
over a ten-month period. The number of washing machines sold is the dependent
variable Y because its value depends on the amount of money spent on
advertising, the independent variable X.

MTH220e Copyright © 2020 Singapore University of Social Sciences (SUSS) Page 5 of 8


TOA – January Semester 2020
Advertising Number of
expenditure (X) washing machines
sold (Y)

12 205
19 410
16 370
16 320
13 290
17 455
19 300
15 280
17 375
21 420
Table Q4(a)

(i) Construct a scatter plot. Compute the Pearson correlation coefficient and
comment on the results.
(6 marks)

(ii) Assuming a linear relationship, use the least-square method to determine


the regression coefficients and the linear regression model.
(6 marks)

(iii) Predict the number of washing machines sold when the advertising
expenditure is $18000.
(1 mark)

(b) An insurance agent has claimed that the average age of policy holders who insure
through him is less than 35 years old. A random sample of 40 policy holders who
insured through him gave an average of 32 years with the standard error of 2
years. At 5 % level of significance, carry out a suitable hypothesis test to ascertain
whether the insurance agent’s claim is justified.
(7 marks)

Question 5

(a) Suppose an analyst in the airline industry carried out a study to determine whether
there is a difference in the cost per mile of airfares in a particular country between
1980 and 2014. The data in Table Q5(a) represents the costs per mile of airline
tickets for a sample of 17 cities in this country for both 1980 and 2014.

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TOA – January Semester 2020
City Year 1980 Year 2014
A 20.3 22.8
B 19.5 12.7
C 18.6 14.1
D 20.9 16.1
E 19.9 25.2
F 18.6 20.2
G 19.6 14.9
H 23.2 21.3
I 21.8 18.7
J 20.3 20.9
K 19.2 22.6
L 19.5 16.9
M 18.7 20.6
N 17.7 18.5
O 21.6 23.4
P 22.4 21.3
Q 20.8 17.4

Table Q5(a)

(i) State the null and alternative hypothesis.


(2 marks)

(ii) At α = 5 %, using the normal approximation, carry out a Wilcoxon signed


rank test to determine whether there is any significance difference in the
cost of airline tickets between 1980 and 2014.
(10 marks)

(b) Table Q5(b) summarizes the scores of both internal assessment and external
assessment of 9 students. Solve and compute Spearman’s rank correlation
coefficient. Comment on your results.
(6 marks)

Student Internal assessment External assessment


scores scores
A 51 49
B 63 72
C 73 74
D 46 44
E 50 58
F 60 66
G 47 50
H 36 30
I 60 35

Table Q5(b)

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TOA – January Semester 2020
(c) Use the function “aov” to perform Analysis of Variance (ANOVA) in R to
determine the missing values in the one-way ANOVA in Table Q5(c).
(2 marks)

Source SS DF MS F Statistics
Treatment 32.87 3 10.958 ?
Error 0.93 8 ?
Total 33.8 11

Table Q5(c)

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TOA – January Semester 2020

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