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QT2 Tutorial 9 10

This document contains a tutorial with 9 questions on quantitative techniques and statistical tests. It provides sample data and asks the reader to identify the appropriate statistical tests to apply, conduct the tests, and report the conclusions. Non-parametric tests discussed include the Wilcoxon rank sum test, Wilcoxon signed-rank test, and Spearman's rank-order correlation. Parametric tests include one-way ANOVA. The reader is asked to identify whether assumptions are met to apply different tests and interpret the results of the statistical analyses.

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236 views5 pages

QT2 Tutorial 9 10

This document contains a tutorial with 9 questions on quantitative techniques and statistical tests. It provides sample data and asks the reader to identify the appropriate statistical tests to apply, conduct the tests, and report the conclusions. Non-parametric tests discussed include the Wilcoxon rank sum test, Wilcoxon signed-rank test, and Spearman's rank-order correlation. Parametric tests include one-way ANOVA. The reader is asked to identify whether assumptions are met to apply different tests and interpret the results of the statistical analyses.

Uploaded by

--bolabola
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UKEQ1023 Quantitative Techniques II

UNIVERSITI TUNKU ABDUL RAHMAN


FACULTY OF ACCOUNTANCY AND MANAGEMENT
TUTORIAL 9 & 10 (Answer)

1. Under what conditions should a decision maker use a nonparametric statistical


procedure?

2. What is the parametric counterpart to the Wilcoxon rank sum test? Compare the
assumptions involved in using the respective tests.

3. A real estate broker claims that the median days that one of his listings stays on
the market is more than 45 days. To test this, he has collected the following
random sample of properties sold showing the days they were on the market prior
to selling:

Days 50 30 70 20 30 40 60 80

The broker is unwilling to assume that the population data are normally
distributed.

a. What is the correct null and alternative hypothesis to be tested?

b. What statistical test would you recommend be used to test this hypothesis?
c. Conduct the test and indicate what conclusion should be reached if we test
at an alpha = 0.05 level?

4. UTAR researchers sampled private and public sector .organizations in Australia


to study the planning undertaken by their information systems departments. They asked
each sample organization how much it had spent on information systems and technology
in previous fiscal year as a percentage of the organization’s total revenue. The results are
reported in the table:
Private sector Public sector
2.58 5.40
5.05 2.55
0.05 9.00
2.10 10.55
4.30 1.02
2.25 5.11
2.50 12.42
1.94 1.67
2.33 3.33

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UKEQ1023 Quantitative Techniques II

a. Find the rank sums for the two sectors using the Wilcoxon method.

b. Do the sampled populations have identical probability distributions or is the


distribution for public sector organizations located to the right of private
sector firms? Test using 0.05.

c. What assumptions must be met to ensure the validity of the test you
conducted in part a?

5. Radio advertisements have been stressing the virtues of an audiotape program to


help children learn to read. To test whether this tape program can cause a quick
improvement in reading ability, 10 children were given a nationally recognized
reading test that measures reading ability. The same 10 children were then given
the tapes to listen to for four hours spaced over a two-day period. The children
then were tested again. The test score were as follows:

Child Before After


1 60 63
2 40 38
3 78 77
4 53 50
5 67 74
6 88 96
7 77 80
8 60 70
9 64 65
10 75 75

Use the appropriate test to test whether this tape program produces quick
improvement in reading ability. Use an 0.05.

6. A vice president for marketing recruits 20 college graduates for management


training. Each of the 20 individuals is randomly assigned, 10 each, to one of two
groups. A “traditional” method of training (T) is used in one group, and an
“experimental” method (E) is used in the other. After the graduates spend six
months on the job, the vice president evaluates them on the basis of their
performance, from 0 (worst) to 5 (best) points, with the following results:

T 1 1.2 1.3 2.0 3.0 3.1 3.4 3.5 3.8 3.9


E 1.7 2.3 2.5 2.7 3.3 4.0 4.2 4.5 4.6 4.8

Is there evidence of a difference in the median performance between the two


methods? (Use α = 0.05)

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UKEQ1023 Quantitative Techniques II

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UKEQ1023 Quantitative Techniques II

7. Consumers were asked to “rate” the taste of three popular brands of yogurt that
have been modified to include fibre. The data are shown in the table below. Are
there any differences in the results among the three brands?

Activia Yoplait Dannon


4 2 5
5 2 4
3 2 3
2 1 3
4 1 4

(i). What nonparametric method is appropriate for analysing these data?

(ii). Is there any statistical evidence to conclude that at least one brand differs
from the others at the centre of ratings. Test at α = 0.05.

(iii). If these data did satisfy the assumptions for performing ANOVA, what are
the disadvantages of using this nonparametric method instead?

8. A study has been conducted to determine whether the average monthly spending
during the month of August differs for students of three cities. Random samples
of 24 people were selected from each city and their monthly spending was
recorded during August. The following output was generated using SPSS:

Table B2-1: Average Monthly Spending of August for Students at Setapak, Petaling Jaya and
Sungai Long
No Setapak Petaling Jaya Sungai Long
1 15 21 14
2 16 23 26
3 17 25 26
4 19 31 27
5 20 32 28
6 22 33 29
7 28 35 38
8 32 36 39

Table B2-2: One-way ANOVA Table


Source of Sum of Squares df Mean Square F
Variation (SS) (MS)
Between Groups 330.58 2 ***** ****
Within Groups 906.75 21 *****
Total 1237.33 23

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UKEQ1023 Quantitative Techniques II

(i) Based on the information provided, should we conclude that the three
populations (cities) have different average spending during August? Test at
the 0.05 level of significance.

(ii) If you test at the 0.01 level of significance, what is your conclusion?

(iii) Based on the sample data and a significance level of 0.05, what conclusion
should be reached about the medians of the three populations if you are not
willing to make the assumption that the populations are normally
distributed?

9. A researcher is interested in the relationship between creative opportunities and


desire to commit crimes. To investigate this question, she tests and then rank
orders the number of creative opportunities and crime desires of a group of eight
students. The rank ordered data are presented below:

Student Creative opportunities Crime desire

Michelle 6 1
Daniel 8 2
Phil 5 3
Lesley 7 4
Chris 2 5
Keeley 4 6
Mani 1 7
Monica 3 8

Calculate Spearman’s rank-order.

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