Taft College Week 3 Statistics and Excel Project

Assignment 3 – Week 3Name: ___________________
Directions:
a) Enter all your answers into this Word document (immediately following the relevant question)
and submit the entire document. IMPORTANT: The name of your Word document MUST
begin with your LAST NAME, for instance SMITH-Assignment3. Do not forget to save it as
Word document, so the file name would be SMITH-Assignment3.docx
b) When you use a Template to calculate an answer, copy and paste the results into this
document.
c) While putting your answers in a different color font is helpful, please DO NOT use red font
since this is the color used to provide feedback on your answers.
Chapter 9 #68 – British Men’s Age at Marriage (Data File BritainMarriages)
Data from the Office for National Statistics show that the mean age at which men in Great Britain
married in 2013 is 30.8 years. A news reporter noted that this represents a continuation of the trend of
waiting until a later age to wed. A new sample of 47 recently wed British men provided their age at the
time of marriage. These data are contained in the file BritainMarriages.
Do these data indicate that the mean age of British men at the time of marriage exceeds the mean age
in 2013? Test this hypothesis at a = .05. What is your conclusion?.
Ch 10 – #40 – Load Versus No-Load Mutal Funds. (Data File Mutual)
Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee
based on a percentage of the amount invested in the fund. The no-load funds do not require this initial
fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these
funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual
funds and a sample of 30 no-load mutual funds were selected. Data in the file Mutual were collected on
the annual return for the funds over a five-year period.
a. Formulate H0 and Ha such that rejection of H0 leads to the conclusion that the load mutual funds
have a higher mean annual return over the five-year period.
b. Conduct the hypothesis test. What is the p-value? At a = .05, what is your conclusion?
Ch 11 – #26 – Manufacture of Ball Bearings.
Ball bearing manufacturing is a highly precise business in which minimal part variability is critical. Large
variances in the size of the ball bearings cause bearing failure and rapid wear out. Production standards
call for a maximum variance of .0001 inches2. Gerry Liddy has gathered a sample of 15 bearings that
shows a sample standard deviation of .014 inches.
a. Use a = .10 to determine whether the sample indicates that the maximum acceptable variance is
being exceeded.
b. Compute the 90% confidence interval estimate of the variance of the ball bearings in the population
Ch 14 – # 67 – Income and Percent Audited.
The Transactional Records Access Clearinghouse at Syracuse University reported data showing the odds
of an Internal Revenue Service audit. The following table shows the average adjusted gross income
reported and the percent of the returns that were audited for 20 selected IRS districts
a. Develop the estimated regression equation that could be used to predict the percent audited given
the average adjusted gross income reported.
b. At the .05 level of significance, determine whether the adjusted gross income and the percent audited
are related.
c. Did the estimated regression equation provide a good fit? Explain.
d. Use the estimated regression equation developed in part (a) to calculate a 95% confidence interval for
the expected percent audited for districts with an average adjusted gross income of $35,000
Ch 15 -#54 – Analyzing Repeat Purchases.
The Tire Rack, America’s leading online distributor of tires and wheels, conducts extensive testing to
provide customers with products that are right for their vehicle, driving style, and driving conditions. In
addition, the Tire Rack maintains an independent consumer survey to help drivers help each other by
sharing their long-term tire experiences. The following data show survey ratings (1 to 10 scale with 10
the highest rating) for 18 maximum performance summer tires. The variable Steering rates the tire’s
steering responsiveness, Tread Wear rates quickness of wear based on the driver’s expectations, and
Buy Again rates the driver’s overall tire satisfaction and desire to purchase the same tire again.
a. Develop an estimated regression equation that can be used to predict the Buy Again rating given
based on the Steering rating. At the .05 level of significance, test for a significant relationship.
b. Did the estimated regression equation developed in part (a) provide a good fit to the data?
Explain.
c. Develop an estimated regression equation that can be used to predict the Buy Again rating given
the Steering rating and the Tread Wear rating.
d. Is the addition of the Tread Wear independent variable significant? Use a = .05.
Ch 16 – #27 – Autocorrelation in Stock Price.
The following data show the daily closing prices (in dollars per share) for a stock.
a. Define the independent variable Period, where Period = 1 corresponds to the data for
November 3, Period = 2 corresponds to the data for November 4, and so on. Develop the
estimated regression equation that can be used to predict the closing price given the value of
Period.
b. At the .05 level of significance, test for any positive autocorrelation in the data.
Adjusted
Gross
Percent
Income
Audited
District
Los Angeles
36,664
1.3
Sacramento
38,845
1.1
Atlanta
34,886
1.1
Boise
32,512
1.1
Dallas
34,531
1
Providence
35,995
1
San Jose
37,799
0.9
Cheyenne
33,876
0.9
Fargo
30,513
0.9
New Orleans
30,174
0.9
Oklahoma City
30,060
0.8
Houston
37,153
0.8
Portland
34,918
0.7
Phoenix
33,291
0.7
Augusta
31,504
0.7
Albuquerque
29,199
0.6
Greensboro
33,072
0.6
Columbia
30,859
0.5
Nashville
32,566
0.5
Buffalo
34,296
0.5
Mutual Funds – Load
Return
American National Growth
15.51
Arch Small Cap Equity
14.57
Bartlett Cap Basic
17.73
Calvert World International
10.31
Colonial Fund A
16.23
Common Sense Growth
16.04
Corefund Core Equity
18.77
Davis Convert Seurities
18.21
Deleware Small Cap
17.27
Dreyfus Premium Value
11.95
Federated Stocks & Bonds
13.81
First Invest FD for Income
12.44
Flag Inv Emerging Growth
15.39
Fortis Equity Capital
13.46
FPA Capital
23.66
Franklin STR GL UT
17.38
Gabelli Value Fund
22.45
IDS New Dimensions
18.38
John Hancock Growth & Income
18.06
Lord Abbett Dev Growth
22.75
Merrill Basic Value
20.35
MFS World Tot Return
13.09
New England Growth Opp
18.16
Oppenhmr Quest Small Cap
14.47
Phoenix Worldwide
15.78
Princor Bond
8.40
Stagecoach Disd Income
16.52
United Contl Income
12.59
Victory OH Regional
18.24
Zweig SR TR Apprec
14.80
Mutual Funds – No Load
Return
Amana Income Fund
13.24
Berger One Hundred
12.13
Columbia International Stock
12.17
Dodge & Cox Balanced
16.06
Evergreen Fund
17.61
Fidelity Fund
20.61
Forthis Advtg Cap App
13.38
Founders Blue Chip Fund
17.15
Goldman Core Fixed Income
10.38
Heartland Value
18.15
Janus Fund
15.82
Manstay Cap Appriciation
17.29
Merrill Spec Value
16.42
Mutual Beacon
19.49
Oberweis Emerging Growth
11.06
Paine Webber Growth & Income
13.89
Pimco Total Return
8.43
Prudential Equity
18.29
Putnam Growth & Income
17.80
Royce FD Micro-Cap
17.05
Scudder Development
12.80
Smith Barney Appreciation
15.09
Stein Roe Capital Oppty
19.70
T Rowe Price Balanced
13.57
Thompson Plumb Growth
18.58
USAA Growth & Tax Strat
11.89
Vanguard Equity Income
19.00
Vanguard Windsor
20.71
Vontobel Intl Equity
13.56
Weith Value
19.82
Tire
Steering Tread Wear Buy Again
Goodyear Assurance TripleTred
8.9
8.5
8.1
Michelin HydroEdge
8.9
9.0
8.3
Michelin Harmony
8.3
8.8
8.2
Dunlop SP 60
8.2
8.5
7.9
Goodyear Assurance ComforTred
7.9
7.7
7.1
Yokohama Y372
8.4
8.2
8.9
Yokohama Aegis LS4
7.9
7.0
7.1
Kumho Power Star 758
7.9
7.9
8.3
Goodyear Assurance
7.6
5.8
4.5
Hankook H406
7.8
6.8
6.2
Michelin Energy LX4
7.4
5.7
4.8
Michelin MX4
7.0
6.5
5.3
Michelin Symmetry
6.9
5.7
4.2
Kumho 722
7.2
6.6
5.0
Dunlop SP 40 A/S
6.2
4.2
3.4
Bridgestone Insignia SE200
5.7
5.5
3.6
Goodyear Integrity
5.7
5.4
2.9
Dunlop SP20 FE
5.7
5.0
3.3