1. Consider the price of homes in a large metropolitan area. What kind of distribution would you expect in terms of skew ness and kurtosis? As an index, would the mean or median price be representative? What would the interquartile range indicate?
2. With increased air travel, the training of air traffic controllers is vital. However, of those who enter the program, several drop out, for a variety of reasons. In the past, 70% have completed the program. A new program is being developed at significant cost.
(a) To test the effectiveness of the new program, what set of hypotheses would you test?
(b) Discuss type I and II errors and their relative consequences.
(c) Are there other factors to be considered that might improve the outcome? What data would you collect and analyze to validate your answer?