Ex1 : Estimate

The survey ,which was conducted for 100 found that 10% of disease had cause
lead to death that covid 19

^
pq
The interval estimator is ^p ± z α n
2 √
n=100, ^p = 0,1 => q^ = 0,9
α
We set the confidence level at 95%, so α = 0.05 , 2 = 0.025 and z α2 = z 0.025=1,96

The 95 % confidence level interval estimate of p is

^p ± z α
2 √ ^
pq
n
=0.1 ±1.96
√0.1× 0.9
100
=0.1 ± 0.0588

The lower and upper confidence limits are:

LCL = 0.0412

UCL = 0.1588

Ex2: Hypothesis testing

One of the critical factors is choosing a location for a new men’s clothing store is
the mean clothing expenditure per household in the surrounding neighbourhood. A
survey of 100 households reveals that the mean and the standard deviation of
annual ex on clothes are $299 and $277 respectively.

Can we conclude that at 5 % significant level that the population mean annual ex is
less than $ 280?

The null and alternative hypothesis are:

H 0 :u=280

H A :u<280 (left tail test)

X −u
Test statistic : N (0 ,1)
σ /√n
 α =0 , 05=¿ z α =1.645

Reject H 0 if : z < -1.645

277−280
Z= = -0.1 > z – 1.645
299/ √ 100

 Do not reject H 0
Therefore ,there is not enough evidence to infor that the population mean
annual expenditure less than $ 280

Palestine 448 3
Togo 442 13
Taiwan 442 7
Caibo Verde 435 4
Uganda 417 0
Viet Nam 328 0
Mauritius 335 10
Liberia 228 27
Benin 232 3
Myanmar 224 6

Find the least square regression line:

n=10 ; ∑ x i= 27713 ; Z y i = 934 ; y i = 9,34
∑ x i = 16545493
2
; X i = 277,13
∑ yi = 33394
2

∑ x i y i = 535719

S xy =
1
99[535719−
27713 ×934
100 ]
= 2796,76

[ ]
2
1 27713
Sx =
2 16545493− = 166349,5
99 100
 S xy
^
β1 = = 0,017
Sx 2

 y – intercept as follows:

β0 = y - ^
^ β1  ^
β 0 = 9,34 – 0,017 . 277,1
x

^ B0 = 44
^y = ^
β0+ ^
β 1 x = 44 + 0,017

Hypothesis : H 0 : β1 = 0
H A : β 1 ≠ 0 ( two-tail test)
^1 −β1
B
Test statistic : t = S t n−2
^
β 1

Level of significance level of 5% => α = 0,05

Decision rule: Reject H 0 if |H| > t 42 ,n−2 = t 0,025 ,98 = 1,984

[ ]
2
2 1 934
Sy = 33394− = 249,19
99 100

[ ] [ ]
2
2 S xy 2796 , 76
2
SSE= (n-1) S y − = 99 . 249 ,19−
S x2 166349 , 5
¿20014,8

Sε
Sε =
√ SSE
n−2
=14 ,3

 S ^β = = 0,00354
1
√(n−1)s x
2

^β β 0,017−0
1 1
t= = = 4,8
S ^β 0,00354
1

t=4 , 8>1,984 => reject H 0