+

Advance Research Project

Final Report
+
Group Members

n  Mirza

n  Fahad

n  Rafia Alvi

n  Nida Ghanchi

n  Zeeshan Sangani

+
Q#1

n  Part 1:

n  Confidence interval for the 50 samples:

n  Formulas used:

n  Z-test: x ± zα/2 . S/√n
n  T-test:x ± tα/2 (n – 1) . S/√n
+
Confidence Interval

Lower 78.75 77.98 67.77 77.74

Upper 83.69 84.10 82.47 84.90

Lower 82.29 80.86 67.37 81.27

Upper 85.89 85.50 80.27 85.85

+
Q#2

n  Confidence
Interval for the difference of two Population
Means ( For 25 and 50 Sample Size)

n  Formulas used:

n  Z-test: x - x ± zα/2 √(σ12/n + σ22/n )
1 2 1 2

n  T-test: x - x ± tα/2(n +n -2) Sp√(1/n + 1/n )

1 2 1 2 1 2
+
Confidence Interval µ1-µ2

SP 6.744 13.291 7.457 13.649 8.078 14.015

Lower -3.66 -1.46 -4.34 -1.84 -4.87 -14.17

Upper 4.02 13.66 4.14 13.68 4.31 1.77

Lower -2.03 3.57 -2.38 2.50 -3.64 -16.59

Upper 3.85 16.97 3.44 16.22 2.88 -2.89

+
Q#3

n  Test
the hypothesis that population means of the marks
in economics, BMS, Statistical Inference and Finance. By
taking extreme values from Q#1 separately at 0.05 level
of significance (using full sample of 50 and taking first 25
as sample size)?
+
Formula

n  For Z test:

n  (X-µ•)/(δ/√n)

n  For T Test

n  (X-µ•)/(δ/√n)
+
Summary of 25 samples

summary     ECO   BMS   SI   FIN  

Lower:  Ho   Reject Reject Reject Reject
Upper:  Ho   Reject Reject Reject Reject
C.I is C.I is C.I is C.I is
Verifica=on  
verified verified verified verified
µ lies in that µ lies in that µ lies in that µ lies in that
Remarks  
C.I C.I C.I C.I
+
Summary of 50 samples

summary     ECO   BMS   SI   FIN  

Lower:  Ho   Reject Reject Reject Reject
Upper:  Ho   Reject Reject Reject Reject
C.I is C.I is C.I is C.I is
Verifica=on  
verified verified verified verified
µ lies in that µ lies in that µ lies in that µ lies in that
Remarks  
C.I C.I C.I C.I
+
Q#4

n  Hypothesis
testing for significant difference between avg.
marks of the of subjects.

n  Method:

n  Hypothesis
n  Ho: µ - µ = 0
1 2

n  Ha: µ1 - µ2 ≠ 0

n  Level of significance

n  α = 0.05
n  α/2 = 0.025
+
Method; con’t

n  Critical Region

z > zα/2 , z < - zα/2 t>t α/2 ( n1+n2 - 2) , t<- t α/2 ( n1+n2 - 2)

z > z0.025 , z < - z0.025 t > t0.025(48) , t < - t0.025(48)

z > 1.96 , z < - 1.96 t > 2.011 , t < - 2.011

n  Computation
n  Z = (!x - !x ) – (µ - µ )
1 2 1 2 t = (!x1 - !x2 ) – (µ1 - µ2 )

√( S1/n1 + S2/n2 ) Sp.√( 1/n1 + 1/n2 )

+
Testing of hypothesis; for the
significance of 25 sample size
  ECO-BMS ECO-SI ECO-FIN BMS-SI BMS-FIN SI-FIN
Hø µ1=µ2 µ1=µ2 µ1=µ2 µ1=µ2 µ1=µ2 µ1=µ2
Hå µ1≠µ2 µ1≠µ2 µ1≠µ2 µ1≠µ2 µ1≠µ2 µ1≠µ2
α = 0.05 = 0.05 = 0.05 = 0.05 = 0.05 = 0.05
α/2 0.025 0.025 0.025 0.025 0.025 0.025
(1-α/2) 0.975 0.975 0.975 0.975 0.975 0.975
Degree of
Freedom n1+n2-2 n1+n2-2 n1+n2-2 n1+n2-2 n1+n2-2 n1+n2-2
tα/2&-tα/2 tα/2&-tα/2 tα/2&-tα/2 tα/2&-tα/2 tα/2&-tα/2 tα/2&-tα/2
T-Table (n1+n2-2) (n1+n2-2) (n1+n2-2) (n1+n2-2) (n1+n2-2) (n1+n2-2)
C.Region Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided
t>tα/2
(n1+n2-2) t0.025(48) t0.025(48) t0.025(48) t0.025(48) t0.025(48) t0.025(48)
T-Tab Value 2.3139 2.3139 2.3139 2.3139 2.3139 2.3139
t<-tα/2
(n1+n2-2) "-t0.025(48)" "-t0.025(48)" "-t0.025(48)" "-t0.025(48)" "-t0.025(48)" "-t0.025(48)"
T-Tab Value -2.3139 -2.3139 -2.3139 -2.3139 -2.3139 -2.3139
SP 6.7438 13.2906 7.4575 13.6486 8.0783 14.0149
Computed 0.094 1.623 -0.047 1.534 -0.123 -1.564
Value            
Lies in Lies in Lies in Lies in
Lies in Acceptance Acceptance Acceptance Acceptance Acceptance Lies in Acceptance
Result Region Region Region Region Region Region
Accept Null Accept Null Accept Null Accept Null Accept Null Accept Null
  Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis
             
Conclusion µ1=µ2 µ1=µ2 µ1=µ2 µ1=µ2 µ1=µ2 µ1=µ2
+ Testing of hypothesis; for the significance of 50
sample size

Hø µ1=µ2 µ1=µ2 µ1=µ2 µ1=µ2 µ1=µ2 µ1=µ2

Hå µ1≠µ2 µ1≠µ2 µ1≠µ2 µ1≠µ2 µ1≠µ2 µ1≠µ2
α = 0.05 = 0.05 = 0.05 = 0.05 = 0.05 = 0.05
α/2 0.025 0.025 0.025 0.025 0.025 0.025
(1-α/2) 0.975 0.975 0.975 0.975 0.975 0.975
Degree of
Freedom n1+n2-2 n1+n2-2 n1+n2-2 n1+n2-2 n1+n2-2 n1+n2-2
tα/2&-tα/2 tα/2&-tα/2 tα/2&-tα/2 tα/2&-tα/2 tα/2&-tα/2 tα/2&-tα/2
T-Table (n1+n2-2) (n1+n2-2) (n1+n2-2) (n1+n2-2) (n1+n2-2) (n1+n2-2)
C.Region Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided
t>tα/2
(n1+n2-2) t0.025(48) t0.025(48) t0.025(48) t0.025(48) t0.025(48) t0.025(48)
T-Tab Value 2.2764 2.2764 2.2764 2.2764 2.2764 2.2764
t<-tα/2
(n1+n2-2) "-t0.025(48)" "-t0.025(48)" "-t0.025(48)" "-t0.025(48)" "-t0.025(48)" "-t0.025(48)"
T-Tab Value -2.2764 -2.2764 -2.2764 -2.2764 -2.2764 -2.2764
SP 5.2507 11.9608 5.2024 12.2446 5.8253 12.2240
Computed
Value 0.867 4.293 0.509 3.822 -0.326 -3.984
Lies in Lies in Lies in
Acceptance Lies in Critical Acceptance Lies in Critical Acceptance Lies in Critical
Result Region Region Region Region Region Region
Accept Null Reject Null Accept Null Reject Null Accept Null Reject Null
  Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis
Conclusion µ1=µ2 µ1≠µ2 µ1=µ2 µ1≠µ2 µ1=µ2 µ1≠µ2
+
Q5: Correlation Coefficient

Economics and Business Maths and Stats

Hø ρ=0
Hå ρ≠0
α = 0.05
α/2 0.025
Degree of
Freedom (n-2), (50-2)
C.Region Two-Sided
T-Value (+/-) (+/-) 2.011
   
Formula r√(n-2)/√(1-r^2)
+
Testing of Correlation

  ECO-BMS ECO-SI ECO-FIN BMS-SI BMS-FIN SI-FIN

ρ 0 0 0 0 0 0
Hø ρ=0 ρ=0 ρ=0 ρ=0 ρ=0 ρ=0
Hå ρ≠0 ρ≠0 ρ≠0 ρ≠0 ρ≠0 ρ≠0
α = 0.05 = 0.05 = 0.05 = 0.05 = 0.05 = 0.05
α/2 0.025 0.025 0.025 0.025 0.025 0.025
Degree
of (n-2), (50-2) (n-2), (50-2) (n-2), (50-2) (n-2), (50-2) (n-2), (50-2) (n-2), (50-2)
Freedo
m
C.Regio Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided
n
T-Value (+/-) 2.011 (+/-) 2.011 (+/-) 2.011 (+/-) 2.011 (+/-) 2.011 (+/-) 2.011
(+/-)
           
Formula r√(n-2)/√(1- r√(n-2)/√(1- r√(n-2)/√(1- r√(n-2)/√(1- r√(n-2)/√(1- r√(n-2)/√(1-
r^2) r^2) r^2) r^2) r^2) r^2)
+
Q5: Correlation Coefficient

Summary

Courses Result Outcome

E and BMS Reject Significance Diff.
E and SI Accept No Significance
Diff.
E and F Reject Significance Diff
BMS and SI Reject Significance Diff
BMS and FI Reject Significance Diff
SI and FI Reject Significance Diff
+
Q#6

n  Regression
Line and testing of their significance as
independence

n  Beta is calculated from excel slope formula.

n  Alpha is calculated from forecast formula where x=0

+
Regression Line
+
Testing of Significance
  ECO-BMS ECO-SI ECO-FIN BMS-SI BMS-FIN SI-FIN
ß 0 0 0 0 0 0
Hø ß=0 ß=0 ß=0 ß=0 ß=0 ß=0
Hå ß≠0 ß≠0 ß≠0 ß≠0 ß≠0 ß≠0

Hypothesis in which the pop beta will be 0

In order to test the significance we must develop
α = 0.05 = 0.05 = 0.05 = 0.05 = 0.05 = 0.05
α/2 0.025 0.025 0.025 0.025 0.025 0.025
Degree of (n-2), (50-2) (n-2), (50-2) (n-2), (50-2) (n-2), (50-2) (n-2), (50-2) (n-2), (50-2)
Freedom
C.Region Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided
T-Value (+/-) 2.011 (+/-) 2.011 (+/-) 2.011 (+/-) 2.011 (+/-) 2.011 (+/-) 2.011
(+/-)
Sb 0.154 0.507 0.171 1.040 0.066 0.049
Formula (b-ß)/Sb (b-ß)/Sb (b-ß)/Sb (b-ß)/Sb (b-ß)/Sb (b-ß)/Sb
  (0.72-0)/0.15 (0.69-0)/0.51 (0.47-0)/0.17 (0.28-0)/1.04 (0.4-0)/0.07 (0.11-0)/0.05
Compute
d 4.68 1.36 2.74 0.27 6.15 2.28
Value
           

Result T(comp)>T T(comp)<T(tab) T(comp)>T(tab) T(comp)<T(tab) T(comp)>T T(comp)>T(tab)

(tab) value value value value (tab) value value
  Reject Null Accept Null Reject Null Accept Null Reject Null Reject Null
hypothesis Hypotheses hypothesis Hypotheses hypothesis hypothesis
           
Conclusio ß is not equals ß is equals to 0 ß is not equals ß is equals to 0 ß is not equals ß is not equals
n to 0 to 0 to 0 to 0
+
Sb and S.Y.X

Ex 4204.5 4204.5 4204.5 4159 4159 3691

EY 4159 3691 4178 3691 4178 4178
Ex2 355627.25 355627.25 355627.25 349391 349391 299023
Ey2 349391 299023 352458 299023 352458 352458
Exy 351224.5 311808 352297 309703 348898 311360
Alpha 22.51 15.68 44.21 8.98 50.44 75.39
Beta 0.72 0.69 0.47 0.28 0.40 0.11
SYX 7.02 23.08 7.76 61.05 3.86 7.93
Sb 0.154 0.507 0.171 1.040 0.066 0.049
+
Q#7

n  Confidence
Interval for first 25 sample size for one
population variance marks at 95%.

Data
alpha 0.05

n size 25 degree of free V Tab-value

α/2 0.025 24 39.3610
1-α/2 0.975 24 12.4010
+
Confidence interval at 95%
significance level

C.I for 25 Eco BMS SI Fin

@95%
Lower 21.85 33.61 193.56 45.97
Upper 69.35 106.68 614.36 145.91
+
Q#7

n  Confidence
Interval for first 25 sample size for one
population variance marks at 99% significance level.

Data
alpha 0.01
(n-1)S²/X²(α/2)(n-1)<δ²<(n-1)S²/X²(1-
α/2)(n-1)
degree of Tab-
n size 25 free V value
α/2 0.005 24 45.5585
1-α/2 0.995 24 9.8862
+
Confidence interval at 99%
significance level

C.I for 25 Eco BMS SI Fin

@99%
Lower 18.88 29.04 167.23 39.72
Upper 86.99 133.82 770.63 183.03
+
Q#8

n  Testing
of Hypothesis for one population variance at the
Extreme Values,

n  This
testing includes developing two Hypothesis for each
course

n  Thepurpose is to verify that pop mean lies in the confidence

interval

n  so
One alternate hyp would be δ²>lower & other would be
δ²<upper
+
At 95% significance level

n  Testing
of hypothesis for the Confidence interval of 25
samples at 0.05 level of significance:

summary     ECO   BMS   SI   FIN  

Lower:  Ho   Reject Reject Reject Reject
Upper:  Ho   Reject Reject Reject Reject
C.I is C.I is C.I is C.I is
Verifica=on  
verified verified verified verified
δ² lies in δ² lies in δ² lies in δ² lies in
Remarks  
that C.I that C.I that C.I that C.I
+
At 99% significance level

n  Testing
of hypothesis for the Confidence interval of 25
samples at 0.05 level of significance:

Summary     ECO   BMS   SI   FIN  

Lower:  Ho   Reject Reject Reject Reject
Upper:  Ho   Reject Reject Reject Reject
Verifica=on   C.I is verified C.I is verified C.I is verified C.I is verified
δ² lies in that δ² lies in that δ² lies in that δ² lies in that
Remarks  
C.I C.I C.I C.I
+
Q#9

n  Test
the hypothesis that is there any significance
difference between two-population variance of the marks
in;
n  Eco-BMS,
n  Eco-SI,
n  ECO-FIN,
n  BMS-SI,
n  BMS-FIN,

n  SI-FIN.

n  At
0.05 level of significance (using full first 25 as sample
size)?
+
Methodology

Hº : δ1²=δ2²
Ha : δ1²≠δ2²
 
level of
significanc α 0.05
e=
 
Critical Region:
F < F ( 1-α/2)(V1,V2)
F > F (α/2)(V1,V2)
  ECO-BMS ECO-SI ECO-FIN BMS-SI BMS-FIN SI-FIN
Hø δ²1=δ²2 δ²1=δ²2 δ²1=δ²2 δ²1=δ²2 δ²1=δ²2 δ²1=δ²2
Hå δ²1≠δ²2 δ²1≠δ²2 δ²1≠δ²2 δ²1≠δ²2 δ²1≠δ²2 δ²1≠δ²2
α/2 0.025 0.025 0.025 0.025 0.025 0.025
(1-α/2) 0.975 0.975 0.975 0.975 0.975 0.975
fα/2&1-α/2 fα/2&1-α/2 fα/2&1-α/2 fα/2&1-α/2(n1-1)- fα/2&1-α/2 fα/2&1-α/2
F table (n1-1)-(n2-1) (n1-1)-(n2-1) (n1-1)-(n2-1) (n2-1) (n1-1)-(n2-1) (n1-1)-(n2-1)
C.Region Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided Two-Sided
F>Fα/2
(v1,v2) f0.025(24,24) f0.025(24,24) f0.025(24,24) f0.025(24,24) f0.025(24,24) f0.025(24,24)
F-Tab Value 2.2693 2.2693 2.2693 2.2693 2.2693 2.2693
F<F(1-α/2)
(v1,v2) f0.975(24,24) f0.975(24,24) f0.975(24,24) f0.975(24,24) f0.975(24,24) f0.975(24,24)
F-Tab Value 0.4407 0.4407 0.4407 0.4407 0.4407 0.4407
Formula F= S1²/S2² F= S1²/S2² F= S1²/S2² F= S1²/S2² F= S1²/S2² F= S1²/S2²
Computed
Value 0.650 0.113 0.475 0.174 0.731 4.210
Lies in Lies in Lies in
Acceptance Lies in Critical Acceptance Lies in Critical Acceptance Lies in Critical
Result Region Region Region Region Region Region
Accept Null Reject Null Accept Null Reject Null Accept Null Reject Null
  Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis
             
Conclusion δ²1=δ²2 δ²1≠δ²2 δ²1=δ²2 δ²1≠δ²2 δ²1=δ²2 δ²1≠δ²2
+
Q#10
n  Construct a contingency table:

n  1): Gender and CGPA 2—3, 3—4.

n  2): CGPA 2—3, 3—4 and Each for Eco, BMS, SI, FIN

n  3): Mathematical Background or each for Eco, BMS, SI

and FIN.

n  Usingthe above contingency table test the independence

of the said variables (relationship b/w gender and CGPA,
CGPA and marks and subjects and backgrounds in math)
at 0.05 level of significance?
+
Methodology
n  Ho:
n  There is no relationship exist

n  Ha:
n  There is a relationship

n  Critical Values:

n  Chi Square ∂ (r-1)(c-1)

n  Computation:
n  X²=Σ(O-E)*2/E

n  Result:
n  X²> X²(r-1)(c-1); reject null hypothesis

n  X²<X²(r-1)(c-1); accept null hypothesis

+
Summary table of all the
independence test
Criteria for giving remarks:
1): If calculated value is greater than critical one: “There is a relationship between said variables.
2): If calculated value is less than critical one: “There is no relationship b/w said variables in particular.

Particular Calculated Value Critical Vale Remarks

Gender W.R.T CGPA 0.16 3.84 No relation

ECO GPA W.R.T CGPA 11.079 14.067 No relation

BMS GPA W.R.T CGPA 16.480 14.067 Relationship exist

SI GPA W.R.T CGPA 11.244 18.307 No relation

FIN GPA W.R.T CGPA 15.020 14.067 Relationship exist

Math Background WRT ECO GPA 7.343 14.067 No relation

Math Background WRT BMS GPA 16.201 14.067 Relationship exist
Math Background WRT SI GPA 13.310 18.307 No relation
Math Background WRT Fin GPA 15.020 14.067 Relationship exist
+
Q#11

n  Test
the hypothesis that all population means are equal
by using analysis of variance (ANOVA) table:
+
Methodology

n  Ho: µ1 = µ2 = µ3 = µ4

n  Ha: At least two of the means are not equal

n  Level of significance

n  α = 0.05

n  Critical Region

n  V1 = k – 1 = 3,
n  V2 = n – k = 196
n  F > Fα (V1,V2)
n  F > F0.05 (3,196)
n  F > 2.6507
+
Computation
n  Computation
F=Sb2/Sw2

n  Sb2
BSS/(K-1)

n  Sw2
WSS/(n-K)

n  BSS
(∑T.J^2/r) – (T..^2/n)

n  WSS: TSS-BSS

n  TSS
(∑∑X^2ij) – (T..^2/n)
+
Data

n  K 4

n  r 50

n  n 200

n  T.. 16232.5

n  T..^2 263494056.3    

n  ∑T.J^2 66054266.25

n  ∑∑X^2ij 1356499.25

+
Execution

n  Sb2
1205.01

n  Sw2
180.68

n  F
6.67

n  Results:
n  Since the calculated value is greater than the tabulated value i.e
(6.67>2.6507), we may reject our null hypothesis and conclude
that the population means of all the courses are hetregenous or
atleast two of them are not equal
+

Thank you

Q/A