Assignment 1

Dhrubajyoti Chakraborty

February 10, 2024

Q1.
[C-7] @Junior_Woolridge

Soln.:
Difference in wages=Di ∼ N µ, σ2 , N = 15. Referring to the below table -

Table 1: C-7 table @Woolridge

2
Worker Wage Before Wage After Difference (Di − D̄)
1 8.3 9.25 0.95 0.5041
2 9.4 9 -0.4 0.4096
3 9 9.25 0.25 0.0001
4 10.5 10 -0.5 0.5476
5 11.4 12 0.6 0.1296
6 8.75 9.5 0.75 0.2601
7 10 10.25 0.25 0.0001
8 9.5 9.5 0 0.0576
9 10.8 11.5 0.7 0.2116
10 12.55 13.1 0.55 0.0961
11 12 11.5 -0.5 0.5476
12 8.65 9 0.35 0.0121
13 7.75 7.75 0 0.0576
14 11.25 11.5 0.25 0.0001
15 12.65 13 0.35 0.0121

1. The 95% confience interval for the mean change in wages D is [D̄ ± cα/2 .se D̄ ],
where cα denote 100(1 − α)% percentile in the tn−1 distribution. The value
2.145 is the 97.5th percentile in a q
t14 distribution. For the particular sample
1 P

2
Di − D̄ = 0.451, se D̄ = √s =


values, D̄ = 0.24 and s = sd (D) = n−1
15
0.116. The required exact 95% confidence interval is [0.24 ± 2.145 × 0.116] =
[−0.009, 0.489].

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Assignment 1 Dhrubajyoti Chakraborty

2. Since, Di ∼ N µ, σ2 , E (D) = µ. The null hypothesis, that there has been no

change in average wages is -

H0 : µ = 0
The alternative hypothesis says, the new management’s claim is true -

Ha : µ > 0

As it is said wages generally increase and people become more productive, we

perform the one-tailed test.

3. Using D̄ and se(D̄), we can compute the t − statistic -

D̄ 0.24
t= = = 2.07
se(D̄) 0.116

This is a one-tailed test. t0.95,14 = 1.761 and t0.99,14 = 2.624.

t0.99,14 > t > t0.95,14

So, we can reject the null in favor of alternative at 5% level of significance but
fail to reject at 1% level of significance.

4. The p − value, i.e., the minimum level of significance at which we can reject
the null hypothesis is, p = P (t > 2.07|H0 ) = 0.029 (< α = 0.05, > α = 0.01), ob-
tained from t-distribution table.

Q2.
To determine if the finding from the random sample survey refutes the government’s
statement that at most 40% of individuals in India are anemic, we can conduct a
hypothesis test for a proportion. In this case, the null hypothesis (H0 ) is that the pro-
portion of anaemic individuals in India is at most 40%, and the alternative hypothesis
(H1 ) is that more than 40% of individuals are anaemic.
Let’s define the hypotheses as follows:
H0 : p ⩽ 0.40
Ha : p > 0.40
The test statistic for a proportion is calculated as:

p̂ − p0 0.45 − 0.40 0.05

Z= q = q = = 1.25 < Z0.95 = 1.645
p0 (1−p0 ) 0.4×0.6 0.04
n 150

We fail to reject the null hypothesis. Thus we cannot refute the statement by the
government that at most 40% individuals in India are anaemic.

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Assignment 1 Dhrubajyoti Chakraborty

Q3.
1. The mean birth weight (bwght) is 118.7 ounces.

Figure 1: Mean birth weight

2. Test: Whether mean birth weight significantly more than 110 -

H0 : B̄ = 110
Ha : B̄ > 110

where, B̄ is the mean birth weight.

Figure 2: Mean birth weight

Since, weight is positive, we have conducted an one-tailed test. p − value is

reported and highlighted in the table. p − value is very low, we fail to reject
null at 1% level of significance. So, we can conclude the mean birth weight isn’t
significantly more than 110 at 1% level of significance.

3. Test:
H0 : µ1 − µ0 = 0
Ha : µ1 − µ0 ̸= 0

Here, µ1 , µ2 are mean birth weight of male and female children. We have con-
ducted a two tailed test, to check whether mean birth weight is equal across
these two groups. The p − value of the test is 0.0071. So, we fail to reject the
null hypothesis, that is the mean across two groups are not significantly differ-
ent when measured at 1% level of significance.

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Assignment 1 Dhrubajyoti Chakraborty

Figure 3: Test of difference in mean birth weight across groups

4. Proportion of male children at each birth order:

Figure 4: Proportion of male children

Refer Fig.4, column male=1, caption captures proportion of male children at

each birth order (parity).

5. Test to check whether proportion of male children are equal across birth orders.

Figure 5: Testing whether proportion of male are equal across birth order

The p − value of the test is 0.610 (0.05). Thus, we cannot reject the null hypoth-
esis at 5% level of significance. Thus we conclude, proportion of male children
differ across groups.

February 10, 2024 Page 4