Computer Project

BUS ADM 210, Fall 2015

DUE: MONDAY, DECEMBER 7 BY 11:59 P.M. TO THE D2L DROPBOX
Instructions:
1. Follow the directions for each problem.
2. Use JMP for all calculations. Answer the questions thoroughly by showing your JMP
outputs. If your JMP outputs are not submitted then you will not receive full credit on the
problem.
3. You will upload ONE file to the D2L Dropbox. It will consist of a Word/PDF/other file
format document containing all of your work and JMP outputs. This is the only file that
should be uploaded to D2L. While your JMP file used in Problems 1 & 2 does not need to
be uploaded, your instructor/TA reserves the right to ask you for this file to verify your
work.
4. In your Word/PDF/document organize your responses by clearly numbering the problems
and sub-parts in order.
5. It is okay to work with other students. However, each students project submission must
be a product of his or her own solutions to the problems. Any projects that are the
same will NOT BE GRADED.
6. Please do not hesitate to contact your instructor or TA if you have any questions about the
project. Questions should be asked in a timely manner, not at the last minute!
7. This project is out of 50 possible points, with 2 bonus points built into Problem 4.
There are 3 data sets you will use with regard to this project:
1. On Problems 1 and 2, you will create your own data set of 45 gas station prices
(regular, unleaded gasoline).
2. On Problems 3 and 4, please use the data file HousesProject.jmp, which consists of a
random sample of 24 houses for sale in the area around UWM. Variables are: list price of
the home (the column called Price), the number of bedrooms (the column called Beds),
and square feet (the column called SquareFeet).
3. On Problem 5, please use the data file Titanic.jmp. In this data file is a two-way table
that compares economic status to whether or not the passengers survived the sinking of
the Titanic.

Problem 1: (11 points) We are going to explore the price of regular, unleaded gasoline in the Milwaukee
area.
a) What is the population of interest?
b) Find the gas prices of regular, unleaded gasoline at 45 gas stations in the Milwaukee area. You can
do this using the suggested websites below or you can drive around and record prices. Note that
these websites typically report results in terms of cheapest gas prices first. Please take this into
consideration when generating your sample of 45 gas stations, which should theoretically be a
random sample.
AAA: http://aaa.opisnet.com/index.aspx (Click on the Automotive tab along the top. Then along
the left hand side click on Fuel Prices. On the next screen click on Launch Finder under the
heading Fuel Price Finder)

milwaukeegasprices.com or gasbuddy.com
In your Word/PDF/document please indicate the source of your gasoline prices (website
used, did you drive around, how did you randomly select 45, etc.).
There is no need to upload your JMP file to D2L. However, your instructor/TA reserves
the right to request you to provide this file, so please keep it saved.
c) In JMP, construct a histogram of the regular unleaded prices of gasoline. Describe the distribution
by giving its shape, center, and spread according to the histogram.
d) Have JMP produce the following summary statistics:
i.
Mean
ii.
Standard deviation
iii.
Median
iv.
The first quartile, Q 1
v.

The third quartile,

Q3

Problem 2: (17 points). We are interested in estimating the mean price of unleaded gasoline in the
Milwaukee area. Please answer the following questions:
a) Using the data from Problem 1, have JMP determine the 99% confidence interval for the mean
gasoline prices. Report your answer as an interval of prices rounded to two decimal places.
b) Give an interpretation of this confidence interval.
c) AAA lists out that the average price of gasoline in the Milwaukee area last month was $2.51.
According to your data, can we say there is a significant difference in the mean gasoline prices
compared to last month?
i.
State the null and alternative hypotheses.
ii.

Describe the assumptions of this hypothesis test to determine if the test statistic you are
using is appropriate. Fully explain. Below are the four items you should comment on:
Does the Normality (or non-Normality) of your data set matter? Why or why not?
Is the population standard deviation, , known or unknown?
If is known, state what it is. If is unknown, state what we are using to
estimate it.
Which distribution should we use to model probabilities related to the hypotheses?

iii.

Determine the p-value using JMP. Below are two suggested ways of doing this:
JMPs Test Mean function
JMPs Distribution Calculator: This can be found via Help >> Sample Data >> Teaching
Scripts >> Interactive Teaching Modules >> Distribution Calculator

iv.

Make a decision and state your conclusion to the hypothesis test in context of the original
problem. Use a significance level of =0.01 (i.e. 1% significance level).

v.

Compare the results of your significance test to the 99% confidence interval for the mean
gasoline price per gallon. Does the conclusion in part (iv.) still hold for the confidence
interval? Fully explain.

Part (c) of Problem 2 is used to test your Quantitative Literacy and will be graded on the following rubric:
Assessment Rubric (points)
Learning
Assessment
3
2
1
Outcome
Item
Students will
State the null
Skillfully converts
Completes
Completes
recognize and
and alternative
relevant information into
conversion
conversion
construct
hypotheses to
an appropriate and
relevant
relevant
mathematical
determine if
desired hypothesis,
information into
information into a
models and/or
there are
including using proper
a hypothesis but
hypothesis but is
hypotheses that significant
notation.
is only partially
inappropriate or
represent
differences in the
appropriate or
inaccurate.
quantitative
mean price of
accurate or uses
information.
gasoline.
improper
notation.
Students will
Describe the
Accurately explains all 4
Accurately
Accurately
evaluate the
assumptions of
of the 4 bullet points
explains 3 of the
explains 1 or 2 of
validity of these
this hypothesis
listed above.
4 bullet points
the 4 bullet points
models and
test to determine
listed above.
listed above.
hypothesis.
if the test
statistic you are
using is
appropriate.
Students will
Determine the p- Analyses are attempted
Analyses are
Analyses are
analyze and
value of this
and all are successful to
attempted but
attempted but are
manipulate
significance test
answer the problem.
are only partially
incorrect in
mathematical
using JMP.
Analysis of the JMP output correct in
answering the
models using
is clearly and concisely
answering the
problem.
quantitative
communicated.
problem or
information.
analysis of the
JMP output is not
given.
Students will
Make a decision
Rejection or failure to
Rejection or
At attempt at a
reach logical
and state your
reject the null hypothesis
failure to reject
decision and
conclusions,
conclusion to the is correctly
the null
conclusion is
predictions, or
hypothesis test
communicated, including
hypothesis is
made but both
inferences.
in context of the
reason for decision.
correctly
draw incorrect
original problem. Provides correct
communicated,
conclusions on
conclusion in proper
including reason
what the
context.
for decision.
information
Conclusion is not means.
in proper context
or is incorrectly
stated.
Students will
Compare the
Uses the quantitative
Uses the
Uses the
assess the
results of your
information effectively as quantitative
quantitative
reasonableness
significance test
a basis for deep and
information
information
of their
to the 99%
thoughtful judgments in
correctly but
incorrectly or
conclusions.
confidence
context. The numerical
deeper
does not provide
interval for the
results of the confidence
connections
contextual basis
mean gasoline
interval are explicitly
between the
for the
price per gallon.
connected to the result of confidence
conclusion.
Does the
the significance test. The interval and the
Connections
conclusion in
connection between the
significance test
between the
part (iv.) still
99% confidence interval
are not made.
confidence
hold for the
and our hypotheses at
interval and the
confidence
the 1% significance level
significance test
interval?
is properly made.
are not made.

Problem 3: (13 points) Using the JMP data set HousesProject.jmp, we want to determine if there is a
significant difference in the mean price of a 3-bedroom home compared to the mean price of a 4-bedroom
home.
a) Give the summary statistics for the price of a 3-bedroom home versus a 4-bedroom home. The
easiest way to generate this is to go to Analyze >> Distribution and use Price in Y, Columns and
Use Beds in the By window.
b) Create a side-by-side boxplot comparison between the price of 3-bedroom versus 4-bedroom
homes. The easiest way to generate this is to use Graph Builder. Go to Graph >> Graph Builder
and drag Price into the Y area and Beds into the X area. Then click on the boxplot icon along
the top. Comment on the spread of the distributions and also on the medians of the distributions.
c) Is the mean house price for a 3-bedroom home significantly less than the mean house price for a 4bedroom home?
i.
State the null and alternative hypotheses.
ii.
Use JMP to produce an output to test the difference in the means. Identify the appropriate pvalue on the output.
iii.
Make a decision on the test at a significance level of =0.02 .
iv.
State your conclusion to the question above in context.
d) Give the 95% confidence interval from the JMP output you used in part (c).
Problem 4: (4 points) Using the JMP data set HousesProject.jmp, we want to determine if the size of the
house (SquareFeet) can predict the list price (Price) of the home.
a) Produce a scatterplot of Price (y axis) versus SquareFeet (x axis). Describe the form, direction, and
strength of the relationship between Price and SquareFeet. Note any potential outliers.
b) Using JMP, estimate the correlation coefficient between Price and SquareFeet.
c) (Optional worth 0.5 bonus points) Determine the simple linear regression line to predict Price
using SquareFeet. In the JMP output is the relationship significant at the 5% level? Justify your
answer.
d) (Optional worth 0.5 bonus points) What is the slope
means about the Price with respect to SquareFeet.

b1 ? Give the interpretation of what it

e) (Optional worth 0.5 bonus points) Using the regression equation, predict the price of a 2000square-foot home.
f)

(Optional worth 0.5 bonus points) What percent of the variation in Price can be explained by this
regression equation?

Problem 5: (5 points) In 1912 the British luxury passenger ship Titanic struck an iceberg and sank on its
way to New York City. Think of the Titanic disaster as an experiment in how the people of that time
behaved when faced with death in a situation where only some can escape, and consider the passengers
from the data file Titanic.jmp as a sample from the population of their peers. We want to determine if
economic status and survival are independent.
Economic Status
Highest
Middle
Lowest

Died
117
526
163

Survival Status
Survived
187
186
112

a) State the null and alternative hypotheses.

b) Produce a contingency table output in JMP. In this table, have JMP display the Count, Expected,
and Cell Chi Square values.
c) Give the p-value and the decision from the test at the 5% significance level.

d) What do you conclude from this significance test at the 5% level? State your conclusion in the
context of the problem.