STAT 2100 - Final Term Exam
STAT 2100 - Final Term Exam
STAT 2100 - Final Term Exam
Instruction: Answer the following questions. Placed your solutions organized in the space provided for each
questions.
Mr. Fred is the manager of human resources at Crescent Custom Steel Products. As part of his yearly report to
the CEO, he is required to present an analysis of the salaried employees. For each of the 60 salaried employees,
he records monthly salary ($); service at Crescent, in months; age; sex (1 = male, 0 = female); and whether the
employee has a management or engineering position. Those employed in management are coded 0, and those in
engineering are coded 1.
1. Determine whether there is significant linear correlation between salary and service. Use α =0.05 .
H0 :
Ha :
Test to use:
Decision Rule (P-value method):
P-value:
Decision (whether to reject or not the H 0):
Conclusion:
2. Determine whether there is significant linear correlation between salary and age. Use α =0.05 .
H0 :
Ha :
Test to use:
Decision Rule (P-value method):
P-value:
Decision (whether to reject or not the H 0):
Conclusion:
3. Fit the linear regression equation that expresses salary (y) in terms of service. Interpret b 0 and b 1.
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4. Fit the linear regression equation that expresses salary (y) in terms of age. Interpret b 0 and b 1 .
5. Which is much better independent variable to use? Explain why and what will be your basis.
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6. Determine whether there is significant difference in the average service of male and female employees.
Assume equal variances. Use α =0.05 .
H0 :
Ha :
Test to use:
Decision Rule (P-value method):
P-value:
Decision (whether to reject or not the H 0):
Conclusion:
7. Determine whether there is significant difference in the average service of management and engineering
employees. Assume equal variances. Use α =0.05 .
H0 :
Ha :
Test to use:
Decision Rule (P-value method):
P-value:
Decision (whether to reject or not the H 0):
Conclusion:
8. Test the claim that on the average, management position have $50 less salary that engineering position.
Assume equal variances. Use α =0.05 .
H0 :
Ha :
Test to use:
Decision Rule (P-value method):
P-value:
Decision (whether to reject or not the H 0):
Conclusion:
9. Test the claim that the mean service of male employees is 5 years higher than female employees. Assume
equal variances. Use α =0.05 .
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H0 :
Ha :
Test to use:
Decision Rule (P-value method):
P-value:
Decision (whether to reject or not the H 0):
Conclusion:
10. Test the claim that the average age of male employees is higher that 35 years old. Assume unequal
variances. Use α =0.05 .
H0 :
Ha :
Test to use:
Decision Rule (P-value method):
P-value:
Decision (whether to reject or not the H 0):
Conclusion:
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