8. 80.319.5Texaco7466672960020.94.871.7511.5The TJX
Companies17389261026.31.750.098.2Torchmark622831096717.
52.390.5914.2Tosco713282597510.91.370.2423Travelers637609
38655514.92.540.417Ultramar Diamond
Shamrock71088255959.51.941.116.1Union
Carbide26502696428.84.530.7910.7United States Surgical
Corporation5117217267.51.210.1629UNOCAL76064753028.92.
650.815.5UNUM640771320015.22.590.5617USX-
Marathon7157541056512.61.580.7619.8Valero
Energy7575624939.62.030.4217.2Warner-
Lambert58180803130.71.040.5135.7WEIS
Markets418199729.21.870.9416.9Wellman2108313194.80.970.3
520.5Winn-Dixie
Stores413219292115.31.360.9827.2WITCO221872298141.551.1
224.9Zenith Nation Insurance660112527.81.57117
Title
ABC/123 Version X
1
Part 3 Inferential Statistics
2
Part 3: Inferential Statistics Option 1: Manufacturing Database
1. The National Association of Manufacturers (NAM) contracts
with your consulting company to determine the estimate of
mean number of production workers. Construct a 95%
confidence interval for the population mean number of
production workers. What is the point estimate? How much is
the margin of error in the estimate?
2. Suppose the average number of employees per industry group
in the manufacturing database is believed to be less than 150
(1000s). Test this belief as the alternative hypothesis by using
9. the 140 SIC Code industries given in the database as the
sample. Let α = .10. Assume that the number of employees per
industry group are normally distributed in the population.
3. You are also required to determine whether there is a
significant difference between mean Value Added by the
Manufacturer and the mean Cost of Materials in manufacturing
using alpha of 0.01.
4. You are requested to determine whether there is a
significantly greater variance among values of Cost of Materials
than of End-of-Year Inventories.
Option 2: Hospital Database
1. As a consultant, you need to use the Hospital database and
construct a 90% confidence interval to estimate the average
census for hospitals. Change the level of confidence to 99%.
What happened to the interval? Did the point estimate change?
2. Determine the sample proportion of the Hospital database
under the variable “service” that are “general medical”
(category 1). From this statistic, construct a 95% confidence
interval to estimate the population proportion of hospitals that
are “general medical.” What is the point estimate? How much
error is there in the interval?
3. Suppose you want to “prove” that the average hospital in the
United States averages more than 700 births per year. Use the
hospital database as your sample and test this hypothesis. Let
alpha be 0.01.
4. On average, do hospitals in the United States employ fewer
than 900 personnel? Use the hospital database as your sample
and an alpha of 0.10 to test this figure as the alternative
hypothesis. Assume that the number of births and number of
employees in the hospitals are normally distributed in the
population.
10. Option 3: Consumer Food
1. Suppose you want to test to determine if the average annual
food spending for a household in the Midwest region of the U.S.
is more than $8,000. Use the Midwest region data and a 1%
level of significance to test this hypothesis. Assume that annual
food spending is normally distributed in the population.
2. Test to determine if there is a significant difference between
households in a metro area and households outside metro areas
in annual food spending. Let α = 0.01.
3. The Consumer Food database contains data on Annual Food
Spending, Annual Household Income, and Non-Mortgage
Household Debt broken down by Region and Location. Using
Region as an independent variable with four classification
levels (four regions of the U.S.), perform three different one-
way ANOVA's—one for each of the three dependent variables
(Annual Food Spending, Annual Household Income, Non-
Mortgage Household Debt). Did you find any significant
differences by region?
Option 4: Financial Database
1. Use this database as a sample and estimate the earnings per
share for all corporations from these data. Select several levels
of confidence and compare the results.
2. Are the average earnings per share for companies in the stock
market less than $2.50? Use the sample of companies
represented by this database to test that hypothesis. Let α = .05.
3. Test to determine whether the average return on equity for all
companies is equal to 21. Use this database as the sample and α
= .10. Assume that the earnings per share and return on equity
are normally distributed in the population.
12. Signature Assignment Options.
Provide a 1,600-word detailed, four part, statistical report with
the following sections:
· Part 1 - Preliminary Analysis
· Part 2 - Examination of Descriptive Statistics
· Part 3 - Examination of Inferential Statistics
· Part 4 - Conclusion/Recommendations
Part 1 - Preliminary Analysis
Generally, as a statistics consultant, you will be given a
problem and data. At times, you may have to gather additional
data. For this assignment, assume all the data is already
gathered for you.
State the objective:
· What are the questions you are trying to address?
Describe the population in the study clearly and in sufficient
detail:
· What is the sample?
Discuss the types of data and variables:
· Are the data quantitative or qualitative?
· What are levels of measurement for the data?
Part 2 - Descriptive Statistics
13. Examine the given data.
Present the descriptive statistics (mean, median, mode, range,
standard deviation, variance, CV, and five-number summary).
Identify any outliers in the data.
Present any graphs or charts you think are appropriate for the
data.
Note: Ideally, we want to assess the conditions of normality too.
However, for the purpose of this exercise, assume data is drawn
from normal populations.
Part 3 - Inferential Statistics
Use the Part 3: Inferential Statistics document.
· Create (formulate) hypotheses
· Run formal hypothesis tests
· Make decisions. Your decisions should be stated in non-
technical terms.
Hint: A final conclusion saying "reject the null hypothesis" by
itself without explanation is basically worthless to those who
hired you. Similarly, stating the conclusion is false or rejected
is not sufficient.
Part 4 - Conclusion and Recommendations
Include the following:
· What are your conclusions?
14. · What do you infer from the statistical analysis?
· State the interpretations in non-technical terms. What
information might lead to a different conclusion?
· Are there any variables missing?
· What additional information would be valuable to help draw a
more certain conclusion?
Format your assignment consistent with APA format.
OPTIONS BELOW:Option 1: Manufacturing Database
This database contains six variables taken from 20 industries
and 140 subindustries in the United States. Some of the
industries are food products, textile mill products, furniture,
chemicals, rubber products, primary metals, industrial
machinery, and transportation equipment. The six variables are
Number of Employees, Number of Production Workers, Value
Added by Manufacture, Cost of Materials, End-of-Year
Inventories, and Industry Group. Two variables, Number of
Employees and Number of Production Workers, are in units of
1000. Three variables, Value Added by Manufacture, Cost of
Materials, and End-of-Year Inventories, are in million-dollar
units. The Industry Group variable consists of numbers from 1
to 20 to denote the industry group to which the particular
subindustry belongs. Option 2: Hospital Database
This database contains observations for six variables on U.S.
hospitals. These variables include Geographic Region, Control,
Service, Census, Number of Births, and Personnel.
The region variable is coded from 1 to 7, and the numbers
represent the following regions:
1 = South
15. 2 = Northeast
3 = Midwest
4 = Southwest
5 = Rocky Mountain
6 = California
7 = Northwest
Control is a type of ownership. Four categories of control are
included in the database:
1 = government, nonfederal
2 = nongovernment, not-for-profit
3 = for-profit
4 = federal government
Service is the type of hospital. The two types of hospitals used
in this database are:
1 = general medical
2 = psychiatric
Option 3: Consumer Food
The consumer food database contains five variables: Annual
Food Spending per Household, Annual Household Income, Non-
Mortgage Household Debt, Geographic Region of the U.S. of
the Household, and Household Location. There are 200 entries
16. for each variable in this database representing 200 different
households from various regions and locations in the United
States. Annual Food Spending per Household, Annual
Household Income, and Non-Mortgage Household Debt are all
given in dollars. The variable Region tells in which one of four
regions the household resides. In this variable, the Northeast is
coded as 1, the Midwest is coded 2, the South is coded as 3, and
the West is coded as 4. The variable Location is coded as 1 if
the household is in a metropolitan area and 2 if the household is
outside a metro area. The data in this database were randomly
derived and developed based on actual national norms.
Option 4: Financial Database
The financial database contains observations on seven variables
for 100 companies. The variables are Type of Industry, Total
Revenues ($ millions), Total Assets ($ millions), Return on
Equity (%), Earnings per Share ($), Dividends per Share ($),
and Average Price per Earnings (P/E) ratio. The companies
represent seven different types of industries. The variable Type
displays a company's industry type as:
1 = apparel
2 = chemical
3 = electric power
4 = grocery
5 = healthcare products
6 = insurance
7 = petroleum