Statistics Homework 003

Homework 3
1.
M&M/MARS, maker of M&M Chocolate candies, conducted a national poll in which more than 10 million people
indicated their preference for a new color. The tally of this poll resulted in the replacement of tan-colored M&Ms with a
new blue color. In the brochure Colors, made available by M&M/MARS Consumer Affairs, the distribution of colors of
the plain color is as follows:
Brown
Yellow
Red
Orange
Green
Blue
30%
20%
20%
10%
10%
10%
In a follow-up study, samples of 1-pound bags were used to determine whether the reported percentages were indeed
valid. The following results were obtained for one sample of 506 plain candies.
Brown
Yellow
Red
Orange
Green
Blue
177
135
79
41
36
38
Use =0.05 to determine whether these data support the percentages reported by the company.
Information
=
=
=
=
=
=
Sol
( )
30%
177.0
20%
135.0
20%
79.0
10%
41.0
10%
36.0
10%
38.0
( )
506 30
= 151.8
100
506 20
= 101.2
100
506 20
= 101.2
100
506 10
= 50.6
100
506 10
= 50.6
100
506 10
= 50.6
100
( )
( )
( )
25.2
635.04
4.1834
33.8
1142.44
11.2889
22.2
492.84
4.8700
9.6
92.16
1.8213
14.6
213.16
4.2126
12.6
158.76
3.1375
1) 0 : = 0.3, = 0.2, = 0.2, = 0.1, = 0.1, = 0.1

1 : 0.3, 0.2, 0.2, 0.1, 0.1, 0.1
2) = 0.05
6
3) 2 =
=1
( )2
= 29.5137
4) = 5, = 1.8382 105
5)
-
< , 0
, 0
6) 1.8382 105 < 0.05, 0

Therefore, we find sufficient statistical evidence to reject the null hypothesis at the 0.05 level of significance. In the
other words, these data does not support the percentages reported by the company.
2.
Visa Card USA studied how frequently consumers of various age groups use plastic cards (debit and credit cards) when
making purchases (Associated Press, January 16, 2006). Sample data of 300 customers shows the use of plastic cards by
four age groups.
Age Group
18-24
25-34
35-44
45 and over
Plastic
21
27
27
36
Cash or Check
21
36
42
90
Payment
a.
b.
c.
Test for the independence between method of payments and age group. What is the p-value? Using =0.05, what is
your conclusion?
If method of payment and age group are not independent, what observation can you make about how different age
groups use plastic to make purchases?
What implications dose this study has for companies such as Visa, MasterCard, and Discover?
Information

11
12
13
14
21
22
23
24
()

Total
21
27
27
36
21
36
42
90
()

42
111 = 15.54
300
42
189 = 26.46
300
63
111 = 23.31
300
63
189 = 39.69
300
69
111 = 25.53
300
69
189 = 43.47
300
126
111 = 46.62
300
126
189 = 79.38
300
Total
Sol

( )
21.00
15.54
5.46
29.8116
1.9184
27.00
23.31
3.69
13.6161
0.5841
27.00
25.53
1.47
2.1609
0.0846
36.00
46.62
10.62
112.7844
2.4192
21.00
26.46
5.46
29.8116
1.1267
36.00
39.69
3.69
13.6161
0.3431
42.00
43.47
1.47
2.1609
0.0497
90.00
79.38
10.62
112.7844
1.4208
( )
( )
( )
( )
1) 0 : 11 = 21 , 12 = 22 , 13 = 23 , 14 = 24
1 : 11 21 , 12 22 , 13 23 , 14 24
2) = 0.05
2
3) 2 =
=1 =1
( )
= 7.9466
4) = 3, = 0.0471
5)
-
< , 0
, 0
6) 0.0471 < 0.05, 0

a.
Test for the independence between method of payments and age group. What is the p-value? Using =0.05, what is
your conclusion?
p-value is 0.0471
In conclusion, we find sufficient statistical evidence to reject the null hypothesis at the 0.05 level of
significance. In the other words, the method of payments and age group are not independent.
b.
If method of payment and age group are not independent, what observation can you make about how different age
groups use plastic to make purchases?
From the study above, we found that customers who are between 18 and 44 years old have higher observed
than expected frequencies for plastic card. However, customers who are older than 44 years old have higher
observed than expected frequencies only for cash or check.
c.
What implications dose this study has for companies such as Visa, MasterCard, and Discover?
3.
From the information in (b.), it was found that the uses of plastic cards are significantly increased in the
customers who are between 18 and 44 years. Therefore we would like to suggest the companies such as Visa,
MasterCard, and Discover that the age group which they have to focus on the customers who are between 18
and 44 years. For example, the companies should launch the campaign which will be interested by them.
However, If the companies can do a research about need of customers, who are older than 44 years, and
found what they want, it would be also a great opportunities to expand the uses of credit cards in these
group.
The number of automobile accidents per day in a particular city is believed to have a Poisson distribution. A sample of 80
days during the past year gives the following data. Do these data support the belief that the number of accidents per day
has a Poisson distribution? Use =0.05.
Number of Accidents
0
1
2
3
4
Observed Frequency (days)

34
25
11
7
3
Information

0
()
34
1
2
3
4
25
11
7
3
0(34) + 1(25) + 2(11) + 3(7) + 4(3) 0 + 25 + 22 + 21 + 12 80

=
=
=1
80
80
80

()
0.3679
0.9963
0.3679
0.9963
0.1839
0.9963
0.0613
0.9963
0
1
2
3
0.0153
0.9963
Sol

()

()
= 0.37
80 0.37
= 29.60
= 0.37
80 0.37
= 29.60
= 0.18
80 0.18
= 14.40
= 0.06
80 0.06
= 4.80
= 0.02
80 0.02
= 1.60
()
( )
( )
34.00
29.60
25.00
( )
( )
4.40
19.36
0.65
29.60
4.60
21.16
0.71
11.00
14.40
3.40
11.56
0.80
7.00
4.80
2.20
4.84
1.01
3.00
1.60
1.40
1.96
1.23
.00
( )
1) 0 : .
1 : .
2) = 0.05
4
3)
=
=1
( )2
= 4.40
4) = 3, = 0.22
5)
-
< , 0
, 0
6) 0.22 > 0.05, 0

Therefore, we do not have sufficient statistical evidence to reject the null hypothesis at the 0.05 level of significance.
In the other words, the number of accidents per days has a Poisson distribution.

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Homework 3

1) 0 : = 0.3, = 0.2, = 0.2, = 0.1, = 0.1, = 0.1

6) 1.8382 105 < 0.05, 0

6) 0.0471 < 0.05, 0

Observed Frequency (days)

0(34) + 1(25) + 2(11) + 3(7) + 4(3) 0 + 25 + 22 + 21 + 12 80

6) 0.22 > 0.05, 0

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