Quiz

Business Statistics

Directions: Answer the following problems. Use ANOVA and CHI-SQUARE test. Perform
the five
steps of hypothesis testing.

Problem #1). Suppose a market analyst wished to see whether consumers have any preference
among eight flavors of a new ice tea. A sample of 320 people provided these data:
Apple - 60 Cherry - 30 Grape - 40 Lemon - 35
Mango - 50 Melon - 25 Orange - 55 Strawberry- 25
If the were no preference, one would expect each flavor to be selected with equal frequency. Is
there enough evidence to reject the claim that there is no preference in the selection of ice tea,
use level of significance α = .01?

Problem #2). A distributor of refrigerator has six locations in the province of Rizal. The sales in
units for the first six months of the year were as follows. At the .05 significance level do the
records suggest that sales are uniformly distributed among the six locations? Given 15% to
Cainta, 10% to Morong and 20% to Antipolo.
Binangonan - 54 Taytay - 36 Antipolo - 31
Cainta - 28 Morong - 46 Tanay - 21

Problem #3). According to recent census report, 44% of families have two parents present, 26%
have only a father, 20% have only a mother, and 10% have no parent. A random sample of
families from the municipality of Bulacan revealed results:
With two parents- 80 Mother only- 75 Father only- 60 No parent
- 65
Is there sufficient evidence to conclude that the proportions of families by type of parent(s)
presence differ from those reported by the census? Use .05 level of significance.

Problem #4). A researcher wanted to study the relationship between gender and cellular phone
communication network. She took a sample of 500 cellular phone users and obtained the
following table.
Communication Network
Gender
Smart Globe Sun Total
Male 105 90 25 220
Female 140 105 35 280
Total 245 195` 60 500
At the .01 level of significance, is there any evidence of a relationship between gender
and communication network?

Problem #5). A manufacturing company was interested in determining whether an association

exists between commuting time of employees and the level of job performance. A study of 200
workers revealed the following:
Commuting Job Performance
Time High Average Low Total
Below 15mins 40 30 20 90
15 – 45 20 35 15 70
Over 45 mins. 10 15 5 40
Total 70 90 40 200
At .01 level of significance, is there evidence of a relationship between commuting time
and job performance?

Problem #6: Performing these calculations for the foreign freighter example yields the
following. Determine the computed Fvalue. Compare the Fvalue with the critical table Fvalue and
decide whether to reject the null hypothesis using the α = .05.
 NUMBER OF FOREIGN FREIGTHERS PER DAY
No. 1 (Long 2(Houston) 3(new 4(New
Beach) York) Orleans)
1 5 2 8 3
2 7 3 4 5
3 4 5 6 3
4 2 4 7 4
5 6 9 2
6 8
Total 18 20 42 17
Mean 4.5 4 7 3.4

Problem #7: An apple juice manufacturer has developed a new product-a liquid concentrate
that, when mixed with water, produces 1 liter of apple juice. The product has several attractive
features. First, it is more convenient than canned juice, which is the way apple juice is currently
sold. Second, because the apple juice that is sold in cans is actually made from concentrate, the
quality of the new product is at least as high as that of canned apple juice. Third, the cost of the
new product is slightly lower than that of canned apple juice. The marketing manager has to
decide how to market the new product. She can create advertising that emphasizes convenience,
quality, or price. To facilitate a decision, she conducts an experiment in three different small
cities. In one city, she launches the product with advertising stressing the convenience of the
concentrate (e.g., easy to carry from store to home and takes up less room n the freezer). In the
second city, the advertisements emphasize the quality of the product (“average” shoppers are
depicted discussing how good the apple juice tastes). Advertising that highlights the relatively
low cost of the liquid concentrate are used in the third city. The number of packages sold weekly
is recorded for the 20 weeks following the beginning of the campaign. These data are listed in
the accompanying table. The marketing manager wants to know whether differences in sales
exist between the three advertising strategies. (We assume that except for the type of
advertising, the three cities are identical.)

City 1 City 2 City 3

(Convenience) (Quality) (Price)
529 804 672
658 630 531
793 774 443
514 717 596
663 679 602
719 604 502
711 620 659
606 697 689
461 706 675
529 615 512
498 492 691
663 719 733
604 787 698
495 699 776
486 572 561
557 523 572
353 584 469
557 634 581
542 580 679
614 624 532