ALLAMA IQBAL OPEN UNIVERSTY

(Department of Statistics)
Program: MSc (Statistics)
Course: Statistical Methods (1551) Assignment No. 1
________________________________________________________________
Q. 1 a) What do you know about measurement scales? Discuss briefly with examples.
b) What do you know about Skewness and Kurtosis? Explain briefly.
Q. 2 Explain the following in detail with examples.

i) Descriptive and Inferential Statistics.

ii) Estimation and testing of hypothesis.
iii) Simple and Composite hypotheses.
iv) Type-I and Type-II errors.
v) Power of the test.
vi) Critical region

Q.3 The finished inside diameter of a piston ring is normally distributed with a mean of 10
centimeters and a standard deviation of 0.03 centimeter.

a) What proportion of rings will have inside diameters exceeding 10.075 centimeters?
b) What is the probability that a piston ring will have an inside diameter between 9.97 and
10.03 centimeters?
c) Below what value of inside diameter will 15% of piston ring fall?

Q.4 a) If 20% of residents in U.S. city prefer a whit telephone over any other color available, what
is the probability that among the next 1000 telephones installed in this city

i) between 170 and 185 inclusive will be white?

ii) at least 210 but not more than 225 will be white?

b) A pheasant hunter claims that she brings down 75% of the birds she shoot at. Of the next
80 pheasants shot at by this hunter, what is the probability that
i) at least 50 escape? ii) at most 56 are brought down?

Q5. A manufacturer has developed a new fishing line, which he claims has a mean breaking
strength of 15 kilograms with a standard deviation of 0.5 kilogram. To test the hypothesis that
µ=15 kilograms against the alternative that µ<15 kilograms, a random sample of 50 will be
tested. The critical region is defined to be x < 14.9.

a) Find the probability of committing type I error when Ho is true.

b) Evaluate type II error for the alternative µ=14.6, 14.7, 14.8, and 14.9 kilograms.
c) Find the power of the test and construct Operating Characteristic (OC) curve.
Q.6 a) The manufacturer of the X-15 steel-belted radial truck tire claims that the mean mileage the
tire can be driven before the tread wears out is 60,000 miles. Assume the mileage wear
follows the normal distribution and the standard deviation of the distribution is 5,000 miles.
Crosset Truck Company bought 48 tires and found that the mean mileage for its trucks is
59,500 miles. Is Crosset’s experience different from that claimed by the manufacturer at
the .05 significance level? Use p-value in calculations?
b) The mean length of a small counterbalance bar is 43 millimeters. The production supervisor
is concerned that the adjustments of the machine producing the bars have changed. He asks
the Engineering Department to investigate. Engineering selects a random sample of 14 bars
and measures each. The results are reported below in millimeters.
42, 39, 42, 45, 43, 40, 39, 41, 40, 42, 43, 42, 45, 44
Is it reasonable to conclude that there has been a change in the mean length of the bars?
Use the .02 significance level. Also Use p-value approach.
i) Find the 95% C.I for the population mean.
Q.7 a) The National Safety Council reported that 52 percent of American turnpike drivers are men.
A sample of 300 cars traveling southbound on the New Jersey Turnpike yesterday revealed
that 170 were driven by men. At the .01 significance level, can we conclude that a larger
proportion of men were driving on the New Jersey Turnpike than the national statistics
indicate? Also use p-value approach.
i) Find the 99% C.I for population proportion.
b) Gibbs Baby Food Company wishes to compare the weight gain of infants using its brand
versus its competitor’s. A sample of 40 babies using the Gibbs products revealed a mean
weight gain of 7.6 pounds in the first three months after birth. For the Gibbs brand, the
population standard deviation of the sample is 2.3 pounds. A sample of 55 babies using the
competitor’s brand revealed a mean increase in weight of 8.1 pounds. The population
standard deviation is 2.9 pounds. At the .05 significance level, can we conclude that babies
using the Gibbs brand gained less weight? Compute the p-value and interpret it. Also Find
95% C.I for the difference of population means.
Q.8 The research department at the home office of New Hampshire Insurance conducts ongoing
research on the causes of automobile accidents, the characteristics of the drivers, and so on.
A random sample of 400 policies written on single persons revealed 120 had at least one
accident in the previous three-year period. Similarly, a sample of 600 policies written on
married persons revealed that 150 had been in at least one accident. At the .05 significance
level, is there a significant difference in the proportions of single and married persons having
an accident during a three-year period? Determine the p-value.
i) Find the 95% C.I for population proportion.
Q.9 Ms. Lisa Monnin is the budget director for Nexus Media Inc. She would like to compare
the daily travel expenses for the sales staff and the audit staff. She collected the following
sample information. Assume the population is normal with equal variances.

Sales ($) 131 135 146 165 136 142 143 163
Audit ($) 130 102 129 143 149 120 139 146 152
At the .10 significance level, can she conclude that the mean daily expenses are greater for
the sales staff than the audit staff? What is the p-value? Also find 90% C.I for the
difference of the population mean.
Q.10 Assume that SAT mathematics scores of students who attend small liberal arts colleges are
N ( ,8100) . We shall test H 0 :   530 against the alternative hypothesis H 0 :   530 .
Given a random sample of size 36 SAT mathematics scores, let the critical region be defined
by C  {x : x  510.77}, where x is the observed mean of the sample.

a) Find the power function, K(µ), for the test.

b) What is the value of significance level of this test?
c) What is the value of K(510.77), K(509.70), K(508.79)?
d) Sketch the graph of the power function.
e) What is the p-value associated with (i) x =507.35 (ii) x =497.45.
 ALLAMA IQBAL OPEN UNIVERSTY
(Department of Statistics)
Program: MSc (Statistics)
Course: Statistical Methods (1551) Assignment No. 2
________________________________________________________________
Q.1 Write down the assumptions and properties of the following.
a) Normal Distribution b) Chi- Square Distribution
c) Student’s-t and d) F- Distribution e) Analysis of Variance
Q.2 Write a note on the following in detail.
a) Nonparametric methods. b) P.P and Q.Q plots c) Contingency table.
Q.3 a) The Engineering Department at Sims Software Inc. recently developed two chemical
solutions designed to increase the usable life of computer disks. A sample of disks treated
with the first solution lasted 86, 78, 66, 83, 84, 81, 84, 109, 65, and 102 hours. Those treated
with the second solution lasted 91, 71, 75, 76, 87, 79, 73, 76, 79, 78, 87, 90, 76, and 72
hours. Assume the population standard deviations are not the same. At the .10 significance
level, can we conclude that there is a difference in the length of time the two types of
treatment lasted? Also use p-value approach. And find the 95% C.I.
b) The federal government recently granted funds for a special program designed to reduce
crime in high-crime areas. A study of the results of the program in eight high-crime areas of
Miami, Florida, yielded the following results.
Before 14 7 4 5 17 12 8 9 6
After 2 7 3 6 8 13 3 5 7
Has there been a decrease in the number of crimes since the inauguration of the program? Use
the .01 significance level. Estimate the p-value. Also find the 95% confidence interval.
Q.4 A stockbroker at Critical Securities reported that the mean rate of return on a sample of 10 oil
stocks was 12.6 percent with a standard deviation of 3.9 percent. The mean rate of return on
a sample of 8 utility stocks was 10.9 percent with a standard deviation of 3.5 percent. At the
.05 significance level, can we conclude that there is more variation in the oil stocks? Use p-
value in calculation. Also find 95% C.I.
Q.5 A criminologist conducted a survey to determine whether the incidence of certain types of
crime varied from one part of a large city to another. The particular crime of interest were
assault, burglary, larceny and homicide. The following table shows the number of crime
committed in four areas of city during the past year.
Type of crime
Districts Assault Burglary Larceny Homicide
1 162 118 451 18
2 310 196 996 25
3 258 193 458 10
4 280 175 390 19
 Can we conclude from these data at the 0.01 level of significance that the occurrence of these
types of crime is dependent on the city districts? Use p-value in calculation.
Q.6 The following data represent the number of packages of 5 popular brands of cigarettes sold
by a supermarket on 8 randomly selected days:

Brand
A B C D E
21 35 45 32 45
35 12 60 53 29
32 27 33 29 31
28 41 36 42 22
14 19 31 40 36
47 23 40 23 29
25 31 43 35 42
38 20 48 42 30
a) Perform the analysis of variance at 0.05 level of significance, and determine whether or
not the 5 brands sell, on the average, the same number of cigarettes at this supermarket.
b) To test the hypothesis that the variances of the 5 populations are equal.
Q.7 The following data represents the statistics grades for a random sample of 12 freshman at a
certain college along with their scores on an intelligence test administrated while they are still
seniors in high school.
Test score, X 65 50 55 65 55 70 65 70 55 70 50 55
Stat grades, Y 85 74 76 90 85 87 94 98 81 91 76 74
a) Calculate and interpret the correlation coefficient.
b) Stat necessary assumption on random variable.
c) Test the hypothesis that   0.5, against the alternative that   0.5, . Use p-value in
calculation.
d) Set the 95% confidence interval on correlation coefficient.

Q.8 a) A random sample of size 22 pairs from a certain bivariate population gave r1  0.4 another
random sample of 18 pairs from another bivariate population gave r2  0.5 . Test the
hypothesis that both the population have same correlation coefficients at 0.05 level of
significance
b) The samples of sizes 18, 22, 26, 32, 40, 46, and 52 are drawn from a same parent
population, yielding values of sample correlation coefficient 0.42, 0.63, 0.48, 0.51, 0.65,
0.42 and 0.52 respectively. Use these values of ‘r’ to obtain a combined estimate of
population correlation coefficient. Test the hypothesis that the samples comes from same
bivariate population. Use 0.025 level of significance.
Q.9 An experiment was conducted to determine if the weight, y, of an animal can be predicted
after a given period of time on the basis of initial weight, x1 , and the amount of feed eaten, x2
.The following calculations have been made for a random sample of 10 animals.
10 10 10 10 10

x
i 1
1i  379 , x
i 1
2i  2417 , y
i 1
i  379 , x
i 1
2
1i  14533 , x
i 1
2
2i  601,365 ,

10 10 10 10

 yi2  70, 083 ,

i 1
 x1i yi  31, 726 ,
i 1
 x2i yi  204,569 ,
i 1
x
i 1
x  92, 628 .
1i 2 i

a) Find and interpret the partial correlation coefficient for y and x2 when x1 is held fixed and
y and x1 when x2 is held fixed.
b) Find and interpret the multiple correlation for the above data Ry.21 .
c) Test the hypothesis that H0 :  y 2.1  0, vs H1 :  y 2.1  0, and H0 :  y1.2  0, vs H1 :  y1.2  0 at
0.05 level of significance.
d) Test the hypothesis that H0 :  y.21  0, vs H1 :  y.21  0, at 0.01 level of significance.

Q.10 In an experiment to determine the different three missile systems is preferred, the propellant
burning rate was measured. The data, after coding, are given in the following table.
Missile 1 24.0 16.7 22.8 19.8 18.9
System 2 23.2 19.8 18.1 17.6 20.2 17.8
3 18.4 19.1 17.3 17.3 19.7 18.9 18.8 19.3
Use the Kruskal-Walis test and a significant level 0.05 to test the hypothesis that the propellant
burning rates are the same for the three missile system.