DEPARTMENT OF MARKETING

INTERNATIONAL ISLAMIC UNIVERSITY

FACULTY OF MANAGEMENT SCIENCES
MIDTERM EXAM SPRING 2020

Course Name: Statistical Inference QNT 401 Instructor: Natasha Habib

Total Marks: 60 Time Allowed: AUG 17th
Batch Name: BBA 39 A&B
Attempt all Question’s. Try to give the minimum details of every theoretical question and
solve all the Question’s on paper. Then use cam scanner to make pdf and then upload on
Google Classroom.

QUESTION NO 1: (4+3+3+10)
a. Explain how the null hypothesis and the alternative hypothesis formulated. Distinguish
between the concept a test at 𝛼 level of significance and at (1-𝛼) confidence level with
the help of real-life example.
b. A random sample of 16 values form a normal distribution gave means 42inches and
sum of squared deviations from mean is 135(inches)2 . Test the hypothesis that mean
in population is 43.5 inches.
c. An electric company claimed that at least 85% of the parts which they supplied
conformed to specifications. A sample of 400 parts was tested and 75 did not meet
specification. Can we accept thee company’s claim at 0.05 level of significance?
d. An experiment was performed with seven hop plants. One half of each was pollinated
and the other was not pollinated. The yield of the seed of each hop plant is tabulated as
follows. (4+1.5+1.5+3)
Plant number 1 2 3 4 5 6 7
pollinated 0.78 0.76 0.43 0.92 0.86 0.59 0.68
Non- 0.21 0.12 0.32 0.29 0.30 0.20 0.14
pollinated
a: Determine at the 5 per cent level whether the pollinated half of the plant gives a higher yield
in seed than the non-pollinated half. State the assumptions and hypotheses to be tasted and
carry through the computations to make decision.
b: How can the experimenter make a type- 1 error? What are the consequences of his doing
so?
c: How can the experimenter make a type- 11 error? What are the consequences of his doing
so?
d: Give 90%confidence limits for the difference in mean yields and interpret your finding.
QUESTION NO 2 (a): (13+3+4)
A researcher conducted an experiment on rats and found the below given data of initial weights X
of 15 four weeks-old rats and their weight gains Y, after 9 weeks on a special diet. (3+2+4+2+2)

Initial 50,71,55,65,75,62,70,69,73,49,56,60,51,53,64
weight(X)
Weight 101,112,95,120,135,125,118,121,122,90,105,107,85,104,105
gain(Y)
The researcher wish to know
a. Whether or not the weight gain depends upon birth weight.
b. Is there any relationship between birth weight and weight gain after 9 weeks of special
diet.
c. Use 5% significance level and assuming normality, test the hypothesis  = 0 against
 0
d. Assuming normality, calculate the 95% confidence interval for the value of  .
e. Interpret your finding in part (a), part (b), part (c) and part(d).
(b) For 8 observation on deposits (X) and loan (Y), two regression equations are established
which are Yˆ = 54.62 − 0.38 X AND Xˆ = 58.72 − 0.27Y .Find the correlation coefficient between
deposits and loans. (3)
(c) Explain the term correlation it is known that rXY = 0.7 . Find rXY and rUV where u = −2 X
and v = 3Y (4)

Question No 3: (5+6+9)

a. The following is percentage distribution by income level and ownership of a random

sample of 400 families in the city of Islamabad
Income Level
Less than Rs. 12,000 to More than
Rs. 12,000 Rs. 60,000 Rs. 60,000
Homeowner 5% 35% 10%
Renter 15% 25% 10%

Test the hypothesis that the home ownership is independent of the family income level,
using 1% level of significance.
b. A civil service examination is given to a group of 200 candidates. On the basis of their
scores, the 200 candidates are divided into two groups, the upper 30 per cent and the
 remaining 70 per cent. Consider the first question on the examination. Among the first
group, 40 had the correct answer, whereas among the second group, 80 had the correct
answer. On the basis of these result can one conclude that the first question is no good
at discriminating ability of the type being examined here?
c. In an experiment on reaction times in seconds of two individuals A and B, measured
under identical conditions, the following results were obtained:

A 0.41,0.38,0.37,0.42,0.35,0.38

B 0.32,0.36,0.38,0.33,0.38

a: Do these data provides sufficient evidence to indicate a difference between the

population variances and also find the 90 per cent confidence interval?
b: If null hypothesis is do not rejected in part (a) which another test you can apply.