1.

Two paints are tested by a marketing company for a hardware chain to determine if one is superior to the other on coverage per gallon. Both paints have population std. dev. of 12 sq. ft. The results of the tests are shown below. Brand A Brand C Number of tests 8 8 Is the Brand A Paint significantly better than the Brand C? Use a 5% risk. Mean coverage (sq. ft.) 223 199 Mean = Sample. Brand A = m1, Brand C = m2. Std. Dev. 6 10

2. 2 groups, A (experimental group) and B (control group), consist of 100 people each have a disease. A serum is given to Group A but not Group B. It is found that in Groups A and B, 75 and 65 people respectively, recover from the disease. Test the hypothesis that the serum helps cure the disease using a level of significance of 0.01.

3. A test of the breaking strengths of different types of cables was conducted, using samples of 100 pieces of each type of cable. The data are shown in the table. Do the data provide sufficient evidence to indicate a difference in the mean breaking strengths of the 2 cables? Use a risk of 0.10. Cable 1 Cable 2 Mean 1925 lbs. 1905 lbs. Std. Dev. 40 30

4. A survey of buying habits was conducted in Boston and Seattle. In Boston 200 people were interviewed and it was found they spend an average of $490 on food per week, w/ a std. dev. of $25. In Seattle 175 people reported an average weekly food expenditure of $480 w/ a std. dev. of $35. Significance level of 0.05, test the hypothesis that there is no difference (means equal) in the average amount spent on food per week by people in Boston and Seattle.

5. Random samples of 200 bolts manufactured by Machine A and 200 bolts manufactured by Machine B showed 16 & 8 defective bolts, respectively. Do these data present sufficient evidence to suggest a difference in the performances of the machines at a level of significance of 0.05? (Asking difference)

6. A union official believes that the fraction of laborers in favor of wage and price controls is greater than the fraction of managers in favor of wage and controls. The official acquired independent random samples of 200 laborers and 200 managers and found 46 laborers and 34 managers favoring controls. Does this evidence provide statistical supports at the 0.05 level of sig nificance for the union officials belief?

7. Given the sales (in $1,000) of the following gas stations. Do these data provide sufficient evidence to indicate a difference in mean sales for the gas stations at a level of significance of 0.05? Determine which gas station has the highest sales amount, and which has the least. Show ranking. Exxon Arco Shell Monday 22 22 25 Tuesday 23 24 28 Wednesday 21 25 29 Thursday 26 25 30

8. Performance (in miles per gallon) of 4 makes of auto are tested by 2 manufacturers. Following results were collected. Do these data provide sufficient evidence to indicate that there are differences among the makes of auto w/ 99% confidence? Makes of Auto I II III IV Manufacturers A 4 5 6 3 B 6 4 5 7

9 The weekly earnings of 3 salesmen are given Determine if the average earnings of the salesmen differ significantly w/ 95% confidence?

10. An experiment was conducted to compare the price of a loaf of bread (Wonder) in 4 city locations. Do these data provide sufficient evidence to indicate a difference in the mean price of the bread in stores located in the 4 cities at a risk of 0.01? Ralphs Vons Lucky Fullerton 50 67 52 Santa Ana 45 50 62 Orange 55 68 65 Anaheim 70 50 68

11. The table below lists the analysis of a sampling of residential sales in Eugene, OR by the County Assessor Office for the purpose of developing a residential value appraisal model.55 single-family residences were surveyed and 7 predictor (independent) variables were studied w/ the following def. X(1) = sq. ft. (in terms of 100 sq. ft.) X(2) = number of bedrooms X(3) = number of bathrooms X(4) = total rooms X(5) = age of the house X(6) = 1 if there is a garage, 0 if there is not X(7) = 1 if there is a lawn, 0 if there is not The linear model was fitted to the data set using a std. regression analysis program. The results of the analysis follow: Multiple R = 0.9490 R Square = 0.9006 Std. Error of Est = 3.0051 Analysis of Variation DF Regression Residual (Error) Individual analysis of Variables Variable Coefficient Constant -13.4617 Sq. Ft. 1.0207 # of BDRMS 1.6270 # of BTHRMS -3.8510 Total Rooms 2.8936 Age -0.0242 Garage 1.2497 Lawn -1.2897 Sum of Squares 3438.183 379.291 Mean Square F ratio MSR = ? MSE = ? F=?

Std. Error 0.1110 1.4813 1.3634 0.9192 0.1031 1.1239 1.4965

a) Calculate the missing MSR, MSE, and F ratio in the overall analysis of the variance. Test the hypothesis that the model is significant or not at a level of significance of 0.05. b) What proportion of the variation of residential sales is explained by the 7 predictor variables in the model? c) Give the regression equation for predicting the residential sales. d) In the presence of the other variables in the model, which is the most significant predictor of sales? Which is the least significant? e) Find a 90% confidence interval for the difference in predicted sales between residences which have garage and those which have no garage. f) Which variables contribute info for the prediction of sales of houses w/ 95% confidence?

12. Use Excel to develop the multiple regression model to fit the following residential sales data in Eugene, OR.
Residence # 1 2 3 4 5 6 7 8 9 10 11 Sales Price ($1,000) 90.3 96 101.4 105.9 111.3 112.5 114 115.2 117 129 165 Square Feet (100) 25.6 25 25 26.8 22.1 27.5 25 24 31 21 40 Bedrooms Bathrooms 3 2 4 2 2 2 3 2 3 2 3 2 4 2 3 2 4 3 4 2 5 3 Total Rooms 7 8 8 7 8 8 8 8 9 9 12 Age 15 12 8 6 18 12 10 13 25 18 22 Attached Garage 1 1 0 1 1 1 1 1 1 1 1 View 0 0 1 0 0 0 0 1 0 0 0

a) b) c) d)

Show the Excel printout for this multiple regression problem. Give the least squares regression for predicting the sale price (in $1,000) of residential sales Is this model useful in predicting the sales price at 90% confidence? In the presence of the other variables in the model, which is the most significant predictor of the sale price? Which is the least significant? Use the regression model to establish assessed valuations for each of the five residences. The data are given in the table below.

Residence 1 2 3 4 5

Sq ft 22.4 15.3 17.2 31.7 20

Bedrms 4 3 4 5 4

Bathrms Total Rooms 2 7 2 7 1 7 3 9 2 8

Age 18 6 4 24 11

Attached Garage 1 0 1 0 1

View 1 0 0 0 1