CHAPTER 1: ANSWER KEY
Case Exercises
1. Return to me
. tabstat Return, statistics(mean)
variable |
mean
-------------+---------Return |
.16
-----------------------. display .16*(1-.16)
0.1344
. display (.16*(1-.16))^.5
0.36660606
2. EE TV Sales
part one
Store A
Store B
0.066807
0.04779
prob of stock
out
Store A has a higher chance of running out of stock.
part two
Store A
20.21499
21
Store B
15.16124
16
min stock needed
integer value
Store A needs 21 TV's in stock while Store B needs
16.
3. EE Job Applications
part a.
. tabstat Acceptance_Rate, s(mean sd semean)
variable |
mean
sd
se(mean)
-------------+--------------------------------Acceptance_Rate |
.4306018
.1396651
.0188324
-----------------------------------------------
part b.
. ci Acceptance_Rate
Variable |
Obs
Mean
Std. Err.
[95% Conf. Interval]
-------------+--------------------------------------------------------------Acceptance_Rate |
55
.4306018
.0188324
.392845
.4683586
*Manual calculation:
t-statistic for computing 95%-confidence intervals:
2.0049
95% confidence interval: 0.4306 +/- 2.0049*0.01883 = [0.39285, 0.46835]
part c.
. ci Acceptance_Rate, level(90)
Variable |
Obs
Mean
Std. Err.
[90% Conf. Interval]
-------------+--------------------------------------------------------------Acceptance~e |
55
.4306018
.0188324
.3990845
.4621191
*Manual calculation:
t-statistic for computing 90%-confidence intervals:
1.6736
90% confidence interval: 0.4306 +/- 1.6736*0.01883 = [0.39909, 0.46211]
part d.
prob of sample mean <= 0.4306 if true mean = 0.50: 0.00026499
(Stata command: display 1-ttail(54, (.4306-.5)/.01883))
part e.
Given the low probability that a number as low as our sample mean would have occurred if the
true mean acceptance rate was fifty percent, this assumption seems unreasonable.
4. EE Stores
part a.
. tabstat half_plus, s(mean sd semean)
variable |
mean
sd
se(mean)
-------------+-----------------------------half_plus |
.3636364
.4854794
.065462
--------------------------------------------
part b.
. ci half_plus
Variable |
Obs
Mean
Std. Err.
[95% Conf. Interval]
-------------+--------------------------------------------------------------half_plus |
55
.3636364
.065462
.2323929
.4948798
*Manual calculation:
t-statistic for computing 95%-confidence intervals:
2.0049
95% confidence interval: 0.3636 +/- 2.0049*0.06546 = [0.23236, 0.49484]
part c.
. ci half_plus, level(70)
Variable |
Obs
Mean
Std. Err.
[70% Conf. Interval]
-------------+--------------------------------------------------------------half_plus |
55
.3636364
.065462
.2951315
.4321412
*Manual calculation:
t-statistic for computing 70%-confidence intervals:
1.0465
70% confidence interval: 0.3636 +/- 1.0465*0.06546 = [0.29510, 0.43210]
part d.
prob of sample mean <= 0.3636 if true mean = 0.50: 0.0209665
(Stata command: display 1-ttail(54, (.3636-.5)/.06546))
part e.
Given the low probability that a number as low as our sample proportion would have occurred if
the true proportion was fifty percent, it seems unreasonable to conclude that the true proportion
was indeed fifty percent.
Problems
problem 1
Prob
0.99744
0.96407
0.78814
0.42074
0.11507
a
b
c
d
e
problem 2
Prob
0.01072
0.09680
0.38209
0.75804
0.95543
problem 6
a
b
c
d
e
Prob
0.01600
0.10695
0.27611
0.24642
0.07894
problem 7
a
b
c
d
e
a
b
c
d
e
Prob
0.99823
0.90879
0.56618
0.13933
0.00621
a
b
c
d
e
Prob
0.12507
0.46017
0.59871
0.82894
0.96407
problem 3
problem 4
problem 5
problem 10
95% confidence interval
a
b
c
d
e
Prob
0.15731
0.21615
0.21615
0.15731
0.08331
a
b
c
d
e
f
z
0.00000
-0.91537
-1.95996
0.55338
1.28155
1.64485
a
b
c
d
e
f
Prob
0.11168
0.18336
0.28366
0.41772
0.59764
0.97428
a
b
c
d
e
f
Prob
0.93696
0.76293
0.57114
0.51589
0.22800
0.02543
problem 8
problem 9
sample proportion = 0.57
sample size = 802
standard error of proportion =
0.57 +/- 1.96 * 0.01748
0.01748173
[ 0.5357, 0.6043 ]
problem 11
sample mean = 6.5 minutes
sample size = 117
sample standard dev = 14
standard error of the mean =
t statistic for 90% CI =
90% confidence interval
problem 12
6.5 +/- 1.658 * 1.2943
[ 4.3541, 8.6459 ]
sample mean = 37
sample size = 83
sample standard dev = 21
standard error of the mean =
a
b
c
90% CI
95% CI
99% CI
problem 13
t statistic
1.6636
1.9893
2.6371
90% CI
95% CI
99% CI
t statistic
1.6820
2.0181
2.6981
2.30504946
interval
33.16521
40.83479
32.41452
41.58548
30.9213
43.0787
sample mean = 1.15
sample size = 43
sample standard dev = 0.482
standard error of the mean =
a
b
c
1.29430046
1.65809524
0.07350431
interval
1.0263693
1.2736307
1.0016623
1.2983377
0.9516805
1.3483195
