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CaseStudy Assignment Answer
CaseStudy Assignment Answer
a)
Parameter Value
Mean 4.1125
Variance 0.341809
Standard Deviation 0.584645
Chi-Square statistic 43.23777
Degrees of Freedom 2
5% Chi-Square Critical Value 0.10258
KS – Statistic 0.14187
5% KS Critical Value 0.294
Since .102 > 5%, we cannot reject null at 5% significance level and hence we can assume Ariel
Compact “Image” values is following normal distribution.
b) H0: µ1=µ2=µ3=µ4=µ5
H1: Any other alternatives
α – level = 0.05, R=5
N1=N2=N3=N4=N5=20 , N=100.
Decision Rule: Reject Null if (Between Group Variability)/(Within Group Variability) > K
Using excel, it is found that
Between Group Variability = 45.1604
Within Group Variability = 21.37
Between Group Variability/(R-1) = 11.2901
Within Group Variability/(N-R) = 0.224947
Between Group Variability/(R-1) / Within Group Variability/(N-R) = 50.18996
FINV(0.05,4,15) = 2.4674
Between Group/Within Group is greater than K, hence we can reject null at 5% significance
level.
c) H0 : σ 12 = σ 22
H1 : σ 1 2 ≠ σ 2 2
DR: Reject null if s12/s22 > K or s12/s22 < L
P(Reject null | H0 true) = 0.05
P(s12/s22 > K or s12/s22 < L | H0 true) = 0.05
P(s12/s22 > K | H0 true) = 2.5%
P(¿12 * σ 12 /s22 * σ 22 )> K*σ 12/σ 22 | H0 true) = 2.5%
When H0 true, σ 12=σ 22 .
P(Fn1-1,n2-1 > K) = 2.5%
P(F19,19 > K) = 2.5%
K = 2.5264.
s12/s22 = 0.326737/0.251868 = 1.2975
K > s12/s22 , cannot reject null at 5% significance level.
Similarly,
P(s12/s22 < L | H0 true) = 2.5%
P(Fn1-1,n2-1 < L) = 2.5%
P(F19,19 < L) = 2.5%
L = 0.39582
s12/s22 = 0.326737/0.251868 = 1.2975
L< s12/s22, cannot reject null at 5% significance level.
d)
Highest average image score is for brand SE. It has the “Best Image”.
e) N = 20, Sample Mean = 4.585, Sample Standard Deviation S = 0.3232
Confidence Interval = (Sample Mean - tα/2S/√ N , Sample Mean + tα/2S/√ N )
(1-α)% = 95% => α% = 5% => α/2% = 2.5% , t0.025,14 = 2.093
Confidence Interval = (4.585 – 2.093*0.3232/√ 20 , 4.585 + 2.093*0.3232/√ 20) =
(4.4338,4.7362)
f) Sample Size = 100
Sample Variance = 0.672024
P(a < σ 2 < b) = 90% => P(1/b < 1/σ 2 < 1/a) = 90%
P((N-1)S2/b < (N-1)S2/σ 2 < (N-1)S2/a) = 90%
In this above table, whatever data we take, we can prove it is independent of income and Best
Image as P(A∩B)=P(A).P(B)
But the observed table which is given in the question is as follows
Monthly Income AC AS SE SB R Total
Rs. 10000 or 19 12 61 14 - 106
more
Rs. 5000 - Rs. 26 22 14 10 - 72
10000
Below Rs.5000 7 7 8 7 5 34
Total 52 41 83 31 5 212
^
p 2(1− ^p 2) ^ p 1(1− ^p 1) = -1.65
√ N2
+
p-Value
P( ^ p 1<¿ ( ^
p 2− ^ p 2− ^
p 1)obt| H0 true)
P( ^
p 2− ^
p 1<¿ 0.05| H0 true)
^
p 2− ^
p 1−( p 2− p 1) 0.05−( p 2− p 1)
P( ^
p 2(1− ^p 2) ^ p 1) <
p 1(1− ^ p 2(1− ^
^ p 2) ^ p 1) | H0 true)
p 1(1− ^
√ N2
+
N1 √ N2
+
N1