Exercises: (Activity #6)

1. Consider the data below to determine if there exists a significance difference in the degree of
seriousness encountered by the College Freshmen Students. Use 0.01 as the level of significance.
Studen Before After D D2
t
1 3.5 3.6 0.1 0.01
2 2 2.75 0.75 0.56
3 2.75 3.5 0.75 0.56
4 3 3.75 0.75 0.56
5 2.5 3 0.5 0.25
6 3.75 4 0.25 0.06
7 4 4.52 0.52 0.27
n=7 ∑D = 3.62 ∑D2 = 2.27
Solution:
2. A researcher tried to test if there is a significant difference in the knowledge of students before
and after the subject was taken using pre-test and post-test with an alpha of 0.05. The following
data was obtained.
Studen Pre- Post test D D^2
t no. test
1 40 80 40 1600
2 35 75 40 1600
3 30 76 46 2116
4 50 79 29 841
5 55 81 26 676
6 42 74 32 1024
7 49 75 26 676
8 59 78 19 361
9 62 75 13 169
10 47 80 33 1089
11 31 73 42 1764
12 43 74 31 961
13 51 78 27 729
14 62 90 28 784
15 58 82 24 576
2
∑D = 456 ∑D = 14966
Solution:
3. John is an investor. His portfolio primarily tracks the performance of the S&P 500 and John
wants to add the stock of Apple Inc. Before adding Apple to his portfolio, he wants to assess the
correlation between the stock and the S&P 500 to ensure that adding the stock won’t increase the
systematic risk of his portfolio. To find the coefficient, John gathers the following prices for the
last five years. Test at 0.05 level of significance.
S&P Apple xy x2 y2
(x) (y)
2013 1691.75 68.96 116663.08 2862018.06 4755.48
2014 1977.8 100.11 197997.56 3911692.84 10022.01
2015 1884.09 109.06 205478.86 3549795.13 11894.08
2016 2151.13 112.18 241313.76 4627360.28 12584.35
2017 2519.36 154.12 388283.76 6347174.81 23752.97
2 2
∑xy = 1149737.02 ∑x = 21298041.12 ∑y = 63008.90
Solution:
4. A researcher tried to test if there is a significant relationship in the knowledge of students
before and after the subject was taken using pre-test and post-test with an alpha of 0.05.
Studen Pre- Post test D D^2
t no. test
1 40 80 40 1600
2 35 75 40 1600
3 30 76 46 2116
4 50 79 29 841
5 55 81 26 676
6 42 74 32 1024
7 49 75 26 676
8 59 78 19 361
9 62 75 13 169
10 47 80 33 1089
11 31 73 42 1764
12 43 74 31 961
13 51 78 27 729
14 62 90 28 784
Solution:
5. Consider the gain in weight of 19 female rats between 28 and 84 days after birth. 12 were fed
on a high protein diet and 7 on a low protein diet. Use 95% confidence level.
High Protein Low Protein
134 70
146 118
104 101
119 85
124 107
161 132
107 94
83
113
129
97
123
6. Three different milling machines were being considered for purchase by a manufacturer.
Potentially, the company would be purchasing hundreds of these machines, so it wanted to make
sure it made the best decision. Initially, five of each machine were borrowed, and each was
randomly assigned to one of 15 technicians (all technicians were similar in skill). Each machine
was put through a series of tasks and rated using a standardized test. The higher the score on the
test, the better the performance of the machine. The data are:
Machine 1 Machine 2 Machine 3
24.5 28.4 26.1
23.5 34.2 28.3
26.4 29.5 24.3
27.1 32.2 26.2
29.9 30.1 27.8
a. Perform an ANOVA on this data using 0.05 level of significance. Remember that the program
expect two fields, a Group field and Observation field. Are there differences between the means
by group?
b. What specific machines, if any, are different? Which machine would you recommend for
purchase? I would recommend Machine 2 since it has the highest mean among all the three of
the machines.

Solution:
Machine 1 Machine 2 Machine 3
24.5 28.4 26.1
23.5 34.2 28.3
26.4 29.5 24.3
27.1 32.2 26.2
29.9 30.1 27.8
∑X1 =131.4 ∑X2 = 154.4 ∑X3 = 132.7
∑Xt = 418.5
X1 X12 X2 X22 X3 X32
24.5 600.25 28.4 806.56 26.1 681.21
23.5 552.25 34.2 1169.64 28.3 800.89
26.4 696.96 29.5 870.25 24.3 590.49
27.1 734.41 32.2 1036.84 26.2 686.44
29.9 894.01 30.1 906.01 27.8 772.84
3477.88 4789.3 3531.87

∑X2 = 11799.05
7. A firm wishes to compare four programs for training workers to perform a certain manual
task. Twenty new employees are randomly assigned to the training programs, with 5 in each
program. At the end of training period, a test conducted to see how quickly trainees can perform
the task. The number of times the task is performed per minute is recorded for each trainee, with
the following results:
Observation Program 1 Program 2 Program 3 Program 4
1 9 10 12 9
2 12 6 14 8
3 14 9 11 11
 4 11 9 13 7
5 13 10 11 8
Perform hypothesis testing using 0.05 level of significance.
Solution:
X1 X2 X3 X4
9 10 12 9
12 6 14 8
14 9 11 11
11 9 13 7
13 10 11 8
X1 = 59 ∑X2 = 44 ∑X3 = 61 ∑X4 = 43
∑Xt = 207
X12 X22 X32 X42
81 100 144 81
144 36 196 64
196 81 121 121
121 81 169 49
169 100 121 64
∑X12 = 711 ∑X22 = 398 ∑X32= 751 2
∑X4 = 379
∑X2 = 2239