1.

3
4.
(a)
(b)
(c)
5.
(a) First, we need to find the standard errors for each energy type. The standard errors are the square
roots of the diagonal elements of the covariance matrix S.

Standard errors: SE L1= √ 0.856≈ 0.925

SEnaturalgas= √ 0.635≈ 0.797

SEhydroelectricpower = √ 0.568 ≈ 0.754

SEnucliearelectricpower = √ 0.043 ≈ 0.207

Now, we can find the 95% Bonferroni confidence intervals for each energy type. The
Bonferroni method adjusts the individual confidence levels to account for multiple
comparisons. Since we have 4 energy types, we will use a 98.75% confidence level for each
1−0.95
individual interval1− =0.797. We will use the t-distribution with n-1 = 49
4
degrees of freedom. The critical value for a 98.75% confidence interval is t(49, 0.9875) ≈
2.678. Now, we can calculate the confidence intervals for each energy type:

Answer:

2.678∗0.925 2.678∗0.925
CI L1 ≈ (0.766− , 0.766+ )
√ 50 √50
2.678∗0.797 2.678∗0.797
CI naturalgas ≈ (0.508− , 0.508+ )
√ 50 √50
2.678∗0.754 2.678∗0.754
CI hydroelectricpower ≈ (0.438− , 0.438+ )
√ 50 √50
2.678∗0.207 2.678∗0.207
CI nucliearelectricpower≈ (0.161− , 0.161+ )
√ 50 √ 50
So, the large sample 95% Bonferroni confidence intervals for the mean consumption of each
of the four types of energy are:

CI L1 ≈ (0.619, 0.913)

CI naturalgas≈ (0.361, 0.655)

CI hydroelectricpower ≈ (0.291, 0.585)

CI nucliearelectricpower≈ (0.114, 0.208)

(b)
Step 1:

Just like in Bonferroni confidence, we need to find the standard errors for each energy type.
The standard errors are the square roots of the diagonal elements of the covariance matrix S.

SE petroleum= √ 0.856≈ 0.925

SEnaturalgas= √ 0.635≈ 0.797

SEhydroelectricpower = √ 0.568 ≈ 0.754

SEnucliearelectricpower = √ 0.043 ≈ 0.207

Step 2:

For a 95% confidence level, is the critical t-value for a two-tailed test with a significance level
∝
of ∧( df )degrees of freedom. For (df = 49), the critical value is approximately (t_ (0.025, 49)
2
≈ 2.0096.

Answer:

2.0096∗0.925 2.0096∗0.925
CI petroleum ≈ (0.766− , 0.766+ )
√ 50 √50
2.0096∗0.797 2.0096∗0.797
CI naturalgas ≈ (0.508− , 0.508+ )
√ 50 √50
2.0096∗0.754 2.0096∗0.754
CI hydroelectricpower ≈ (0.438− ,0.438+ )
√50 √ 50
2.0096∗0.207 2.0096∗0.207
CI nucliearelectricpower≈ (0.161− , 0.161+ )
√ 50 √ 50
So, the large sample 95% simultaneous T 2intervals for the mean consumption of each of the
four types of energy are:

CI petroleum ≈ (0.619, 0.913)

CI naturalgas≈ (0.361, 0.655)

CI hydroelectricpower ≈ (0.291, 0.585)

CI nucliearelectricpower≈ (0.114, 0.208)