Homework: Statistics for Management
Problem I
• Describe a scenario in the field of Finance which could be modeled as a Binomial
• Seed crops such as wheat, maize, pumpkin are sensitive to moisture and thus the amount of rainfall. Rainfall levesl can be qualified as : Light, Moderate, Heavy and Violent. A seed crop farmer recorded his production in kg during the past seasons in the four different scenarios of rainfall. Furthermore, The meteorological services have just released the forecast for rainfall for the coming season in terms of number of expected days of light ,moderate, heavy and violent rain.
Advise the producer on how he can use the above information to determine his expected harvest in kg of seed crops. Illustrate by creating a numerical example to show the steps and workings.
Problem II
A Bank wishes to determine the mean income of its credit card holders and more specifically wants to investigate whether there are any differences in the mean income between males and females. Confidence interval as a statistical inference method has been considered to respond this objective.
You are required to
• Comment on the choice of confidence intervals as a statistical inference method for the above.
• Describe how you will proceed to determine the corresponding confidence intervals.
• Explain how you would use confidence intervals as evidence suggesting that in average males and females income differ.
Use Numerical examples to illustrate as and when required.
Problem III
Simple Linear Regression analysis is a statistical technique that attempts to explore and model the linear relationship between two variables for decision making.
You are required to describe a situation (other than the examples used in lecture) where a simple linear regression analysis has to be applied. In your write up you have to:
• Provide a brief background of the situation you are going to look at. Specifically, why did you choose the dependent variable you chose? Indicate the general model that you are going to estimate.
• Using a numerical example, apply the simple linear regression analysis techniques and Present the estimated model. Give an interpretation of each of the estimated coefficients. Determine the measures of goodness of fit and discuss the validity of the model.
Problem IV
A consumer protection Association is concerned about the false claims of reduced sugar content on soft drinks packaging which may falsely give consumers a sense of confidence before they purchase. According to the consumer group, these claims rarely reflect the actual nutritional quality of the food, more specifically the sugar content is more than the amount specified on the cans or bottles.
You are required to use the Hypothesis Testing as a statistical inference method to help the consumer Protection Association to test the above. More specifically you have to
• Describe and justify the steps you will use to achieve the objective above.
Compare the different Statistics that could be used.
• Using a numerical example, apply the steps and critically discuss the outcome of the test.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.