Question 1
A manufacturer claims that at least 40% of its customers use coupons. A study of 25 customers is undertaken to test that claim. The results of the study follow.
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yes
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no
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no
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yes
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yes
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no
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yes
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no
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no
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yes
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no
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no
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no
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no
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yes
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no
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no
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no
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no
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yes
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no
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no
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yes
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no
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yes
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At a 0.05 level of significance, test the manufacturer's claim. Clearly state the null and the alternative hypotheses.
Question 2
Connie Harris, in charge of office supplies at First Capital Mortgage Corp., would like to predict the quantity of paper used in the office photocopying machines per month. She believes that the number of loans originated in a month influence the volume of photocopying performed. She has compiled the following recent monthly data:
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Number of Loans
Originated in Month
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Sheets of Photocopy
Paper Used (000's)
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45
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22
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25
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13
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50
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24
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60
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25
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40
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21
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25
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16
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35
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18
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40
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25
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a. Develop the least-squares estimated regression equation that relates sheets of photocopy paper used to loans originated.
b. Use the regression equation developed in part (a) to forecast the amount of paper used in a month when 42 loan originations are expected.
c. Compute SSE, SST, and SSR.
d. Compute the coefficient of determination r-squared. Comment on the goodness of fit.
e. Compute the correlation coefficient and interpret it.
f. Compute the mean square error MSE.
g. Compute the standard error of the estimate.
h. Compute the estimated standard deviation of b1.
i. Use the t test to test the following hypothesis beta1 = 0 at alpha= 0.05.
j. Develop a 95% confidence interval estimate for beta1 to test the hypothesis beta1 = 0.
k. Use the F test to test the hypothesis beta1 = 0 at a 0.05 level of significance.