Student Name: <Type your name here> Date: <Enter the date on which you began working on this assignment.> This assignment is worth a total of 60 points. Part I. Chi-Square Goodness of Fit Test (equal frequencies) Four different brands of a pain medication used for chronic back ailments were tested to see if the number of side effects for each brand were the same. The table below lists the results of the reported number of side effects for each brand of pain medication. Brand A Brand B Brand C Brand D 23 17 33 11 [Hint: Be sure to watch the video at Week 5 Resources on the “Chi-Square Goodness-of-Fit test (equal frequencies)” before attempting this problem. Instructions for performing this test in STATDISK can be found in the Statdisk User Manual.] Instructions Answers 1. Use the Chi-Square Goodness-of-Fit test to see if there is a difference between the number of side effects from the different brands of medication. Use a significance level of .01. Paste results here. 2. What are we trying to show here? 3. What is the p-value and what does it represent in the context of this problem? 4. State in your own words what the results of this Goodness-of-fit test tells us. 5. Repeat the above procedure using only Brands A, B, and D. Paste results here. 6. Do you get a different result? Part II. Chi-Square Goodness of Fit Test (unequal frequencies) An opinion poll was taken to see how people felt about Health Care reform. Previous poll results indicate that within a particular population 34% were for reform, 41% were against reform, and 25% were uncertain. This year, the following results were observed: FOR: 317 people AGAINST: 223 people UNCERTAIN: 211 people [Hint: Be sure to watch the video at Week 5 Resources on the “Chi-Square Goodness-of-Fit test (unequal frequencies)” before attempting this problem. Instructions for performing this test in STATDISK can be found in the Statdisk User Manual.] Instructions Answers 7. Complete the table as necessary. [Hint: You will need to compute the expected frequencies based on the previous poll results. Round to the nearest integer.] 1. OBSERVED 2. EXPECTED 8. Use the Chi-Square Goodness-of-Fit test for Unequal frequencies to see if there is a difference between the observed frequencies (this year) and the expected frequencies (based on the previous poll results). Use a significance level of .01. Paste results here. 9. State the null and alternative hypothesis. 10. What conclusion would you reach, given the result of your Goodness-of-Fit test? [State in your own words.] Part III. Chi-Square Test of Independence A study was done to test the claim that discharging a newborn infant discharged early (less than 30 hours after birth) is related to re-hospitalization of that infant within a week of discharge. The following data was collected related to early discharge and re-hospitalization: Re-hospitalized within 1 week Not re-hospi.

1. Student Name: <Type your name here>
Date: <Enter the date on which you began working on this
assignment.>
This assignment is worth a total of 60 points.
Part I. Chi-Square Goodness of Fit Test (equal frequencies)
Four different brands of a pain medication used for chronic
back ailments were tested to see if the number of side effects
for each brand were the same. The table below lists the results
of the reported number of side effects for each brand of pain
medication.
Brand A
Brand B
Brand C
Brand D
23
17
33
11
[Hint: Be sure to watch the video at Week 5 Resources on the
“Chi-Square Goodness-of-Fit test (equal frequencies)” before

2. attempting this problem. Instructions for performing this test in
STATDISK can be found in the Statdisk User Manual.]
Instructions
Answers
1. Use the Chi-Square Goodness-of-Fit test to see if there is a
difference between the number of side effects from the different
brands of medication. Use a significance level of .01.
Paste results here.
2. What are we trying to show here?
3. What is the p-value and what does it represent in the context
of this problem?
4. State in your own words what the results of this Goodness-
of-fit test tells us.
5. Repeat the above procedure using only Brands A, B, and D.
Paste results here.
6. Do you get a different result?
Part II. Chi-Square Goodness of Fit Test (unequal frequencies)
An opinion poll was taken to see how people felt about Health
Care reform. Previous poll results indicate that within a
particular population 34% were for reform, 41% were against
reform, and 25% were uncertain.
This year, the following results were observed:
FOR: 317 people AGAINST: 223 people
UNCERTAIN: 211 people

3. [Hint: Be sure to watch the video at Week 5 Resources on the
“Chi-Square Goodness-of-Fit test (unequal frequencies)” before
attempting this problem. Instructions for performing this test in
STATDISK can be found in the Statdisk User Manual.]
Instructions
Answers
7. Complete the table as necessary.
[Hint: You will need to compute the expected frequencies
based on the previous poll results. Round to the nearest
integer.]
1.
OBSERVED
2.
EXPECTED
8. Use the Chi-Square Goodness-of-Fit test for Unequal
frequencies to see if there is a difference between the observed
frequencies (this year) and the expected frequencies (based on
the previous poll results). Use a significance level of .01.
Paste results here.
9. State the null and alternative hypothesis.

4. 10. What conclusion would you reach, given the result of your
Goodness-of-Fit test? [State in your own words.]
Part III. Chi-Square Test of Independence
A study was done to test the claim that discharging a newborn
infant discharged early (less than 30 hours after birth) is related
to re-hospitalization of that infant within a week of discharge.
The following data was collected related to early discharge and
re-hospitalization:
Re-hospitalized within 1 week
Not
re-hospitalized
Total
Early Discharge (less than 30 hours)
622
3997
4619
Late Discharge (30 – 78 hours)
631
4660
5291
Hint: Instructions for performing this test in STATDISK can be
found in the Stat Disk User’s Manual under the heading Chi
Square Test of Independence (Contingency Tables).
Instructions
Answers
11. Just looking at the numbers in the table, what is your best

5. guess about whether early discharge is related to re-
hospitalization? [Hint: you might compute the difference in
percentages between those that were discharged early and those
that were not.]
12. Compute a Chi-Square Test of Independence on this data
using a 0.05 level of significance. Paste your results here.
13. What is the null and alternative hypothesis for this result?
14. What is the p-value for this result? What does this
represent?
15. State your conclusion related to the context of this problem.
Part IV. Apply this to your own situation
Using one of the above statistical tests, compose and SOLVE an
actual problem from the context of your own personal or
professional life. You will need to make up some data and
describe which test you will use to analyze the situation.
Here’s an example:
Example
State the problem that you are analyzing.
Last year, I asked the kids in my neighborhood what kind of
cookies they preferred. 50% said chocolate-chip, 20% said
oatmeal-raisin, and 30% said sugar cookie. I want to see if this
has changed.
Make up some data for the new situation.
I asked 50 neighborhood kids what kind of cookie they
preferred now and here’s what they said:

6. · 35 said chocolate-chip
· 5 said oatmeal-raisin
· 10 said sugar-cookie
Determine which type of Chi-Square test you will perform.
Since these are unequal frequencies, I will perform a Chi-
Square Goodness-of-Fit Test (Unequal Frequencies).
;;;;;;i8i8Specify your null and alternative hypotheses.
H0: There is no difference this year in the preferences of
cookies within the neighborhood kids.
H1: Things have changed.
Setup the test
Chocolate-Chip
Oatmeal-Raisin
Sugar-Cookie
3.
OBSERVED
35
5
10
4.
EXPECTED
25
10
15
Perform the test
Paste your STATDISK results here
State your conclusion
We have evidence to believe ….
Submit your final draft to the Assignment 2 Turnitin – Week 5
area of your course. Please use the naming convention
"WK5Assgn2+first initial+last name" as the Submission Title.

7. 1
Strategic Planning and Finance Page 2 of 4
By the end of this lesson, students should be able to:
List the four optimal links between planning and budgeting.
Explain why it has become more difficult to conduct planning
and budgeting at
universities.
Discuss ways to re-engineer the planning and budgeting
process
There is no doubt that proper budgeting requires careful
planning. If a university has poor
planning you will find that the finances of the institution are
always under suspicion. It is easy to

8. spend so much time planning that we don’t move the institution
forward at an acceptable pace.
Universities need to be on guard to strike the appropriate
balance between planning and
strategic decisions.
To properly link strategic planning and finance a university
should consider the following:
1. Changes to what the university costs and all sources of
income can have a profound
impact on the budget.
2. A large shift in a departmental budget due to internal or
external factors should be
anticipated.
3. Political pressures both internal and external should be
considered when linking
strategic planning to budget.
4. Communication between and among those who draft the
budget will enhance the
outcome of the budget process.
Universities behave much like consumers as they have needs,
desires, and a limited amount of
income. There is an infinite supply of vendors and products but
there is a financial limit to what
can be purchased. Most employees in higher education do not
view their activities as consumer
oriented. In this environment the financial administrator must
devise ways to evaluate individual
consumer information. Across the board change is not adequate

9. when dealing with the
complexities of higher education. Some departments will have
greater needs than others.
There are several approaches used to link planning and
budgeting. Each university will have
their culture and style. One common approach is for there to be
a “King” who makes most of
the decisions. Their preferences often enter into the decision
process and have a tendency to
weaken the outcomes. Some universities allow each functional
unit to operate within the unit.
Usually an imbalance occurs between units in this method.
There are departments that are
particularly good at asking for resources so they receive more
than others by being loud and
forceful. Budget shifts occur that create an imbalance in this
method.
The traditional method is to plan, focus on programs, and
distribute budget funding. This is the
most commonly used system and it does incorporate many of the
theories outlined above.
Zero-based budgeting requires the unit to start over from zero
each year and justify every
Strategic Planning and Finance Page 3 of 4
expenditure. This method is disruptive and escalates political
pressures because the unit does
not want to see a downturn in funding. Strategic planning is
widely used and looks very
different at each institution. Most of the strategic planning
models do not consider budget

10. details. Much thought should be given to the way a university
links planning and budgeting.
Universities conduct many different types of planning
processes. It is more difficult to link
planning to budget. Strategic planning involves a cross-section
of people at the university who
attempt to describe the environment in which they live and
work. Program planning is the study
of specific programs that can help move the vision of the
university forward. Facility planning
has to do with the management of physical assets and the
construction of new physical assets
that will help the university accomplish its goals. Operational
planning is concerned with placing
resources in the proper departments to reach short-term goals.
Budget planning gathers the
financial resources of the institution and determines how to
strike a balance between the
services needed with the revenue. Issue-specific planning deals
with particular initiatives that
concern the operation of the university. Retention is an
example of an issue that may receive
attention in this type of planning.
Universities are more sensitive to revenue sources that drive the
need for planning more
carefully. Most initiatives undertaken today consider whether
the new activity will produce at
least a minimal amount of positive revenue. They also consider
how well this revenue can be
maintained. One important aspect of new revenue is the
flexibility of launching the new effort.
When investing new resources universities should make sure
that the immediate costs are
covered and that efficiency is required. It does little good to

11. launch a new program without the
resources to make it successful and it is a waste of time if the
operation is inefficient.
Higher education is selling a product that is largely not
understood by their customers. There is
a basic level of trust on the part of the consumer that we are
offering a good product. When the
university fails to deliver a good product the trust of the
consumer is damaged. Higher
education must be careful to deliver on their implied
responsibility of trust. The financial officer
must recognize that there are multiple sources of income and
each should be evaluated and
proper distribution of that income is important. There are
various ways to distribute the income
to maximize the performance of the institution. One way is to
return a portion of tuition revenue
back to the department that generated the income.
Higher education is always changing the planning process and
no one method is the best fit for
all institutions. Some general approaches that seem to be
effective is to have a strategic
planning process. The key stakeholders of the institution
should be included in this activity.
The assessment data collected should be widely shared in an
effort to have better informed
planners.
Several themes are consistent with quality improvement in
higher education. Faculty
development is important to improving the product we sell.
They should be encouraged to
consider how the student moves through their classes to
complete a degree. Alternative

12. scheduling may be helpful to consider. The use of technology
may enhance the classroom
experience and sufficient training of faculty is important. The
campus life climate is another
important theme to consider. Students should be consulted
regarding the availability of campus
activities and the services provided to students should be
evaluated. By focusing on these
areas the university can be more certain that they are placing
resources on the most critical
functions. The budget must reflect these plans to ensure that
they get done in a timely manner.
Strategic Planning and Finance Page 4 of 4
The university is wise to consider that external accountability is
affecting the way resources are
allocated. Students want an education so they can get a better
job and earn better pay for the
long-run. The most effective strategy is to use this external
demand to shape the university.
One of the major external drivers of change in higher education
is vocationalism. The majority
of students in the U.S. are considered non-traditional. Their
primary focus is to better
themselves rather than to simply become more educated. As
parents and students borrow
more money for higher education they are becoming
increasingly concerned about the value
they are receiving for their investment. Some time and
resources should be directed to ensure
that quality is measured and enhanced.

13. The changing of technology is affecting academic life in new
ways. Students have access to so
much information on the internet that they did not have prior to
the 1990’s. The ability to offer
classes at distant locations or in the home of the student has
also changed the landscape. In
order to take full advantage of the benefits of the change in
technology significant restructuring
is needed. This restructuring will require new ways of looking
at resource allocation.
In response to the new challenges of consumerism and
technology universities should consider
tuition increases, research grants, new revenue sources, and
across the board cuts in budgets.
These changes can either be brought by upper management or a
broad-based effort to include
as many people as possible.
The government has met these new consumer demands and
increased technology costs by
awarding a set amount to the university based on past
performance. Future changes to that
amount may go up or down depending on factors both inside
and outside of the university. The
key is to retain accountability and efficiency in this type of
financial climate.
Strategic budgeting is the process a university undertakes to
divide the financial resources fairly
and produce the desired outcome. There are a couple of
advantages to strategic budgeting.
When decisions about the budget are being made there are
parameters placed on how much
the institution is able to spend. There is internal discussion

14. about how well they will maintain
the current level of academic programs versus the alternative of
doing nothing. Because each
unit is considering what to do with the budget the
administrators are not likely to be reactive.
Strategic budgeting is a proactive way of improving higher
education.