Salaries of postgraduates
The Economics of Education Review (Vol. 21,2002) published a paper on the relationship between education level andearnings. The date for the research were obtained from the National AdultLiteracy Survey of more than 25,000 respondents. The survey revealed that maleswith a postgraduate degree have a mean salary of $61,340 (with standard error Sx̄ = $2,185), while females with apostgraduate degree have a mean of $32,227 (with standard error Sx̄ = $932).
Questions
1. Thearticle reports that a 95% confidence interval for μM, the population mean salary of all males withpostgraduate degree, is ($57,050, $65,631). Based on this interval, is thereevidence to say that μMdiffers from $60,000? Explain.
2. Usethe 5-step process to test the hypothesis that the true mean salary of maleswith postgraduate degree differs from $60,000. Use α = .50.
Judgment
Theauthors of an article within the Journalof Marketing Research (Dec. 2011) study grocery store shopper’ judgments.For one part of the study, 11 consumers were told to put their arm in a flexposition (similar to a shopping basket) and then each consumer was offeredseveral choices between a vice product and a virtue product (e.g., a movieticket vs. a shopping coupon, pay later with a larger amount vs. pay now). Basedon these choices, a vice choice score was determined on a scale of 0 to 100(where higher scores indicate a greater preference for vice options). The datain the table are (simulated) choice scores for the 11 consumers. Suppose thatthe average choice score for consumers with an extended arm position (similarto pushing a shopping cart) is known to be μ=50. The researchers theorize that the mean choice score for consumers shoppingwith a flexed arm will be higher than 43 (reflecting their higher propensity toselect a vice product.)
Question
Usingthe 5-step process, test this hypothesis at α=.05.
Organic–certified coffee
Coffeemarkets that conform to organic standards focus on the environmental aspects ofcoffee growing, such as the use of shade trees and reduced reliance on chemicalpesticides. A study of organic coffee growers was published in Food Policy (Vol. 36, 2010). In arepresentative sample of 845 coffee growers from southern Mexico, 417 growerswere certified to sell to organic coffee markets while 77 growers weretransitioning to become organic certified. In the United States, 60% of coffeegrowers are organic certified.
Question
Is thereevidence to indicate that fewer than 60% of the coffee growers in southernMexico are either organic certified or transitioning to become organiccertified? Use the 5-step process for hypothesis testing and calculate theprobability of a Type I error.
Fingerprint expertise
Refer tothe Psychological Science (August2011) study of fingerprint identification. The study found that when presentedwith prints from the same individual, a fingerprint expert will correctlyidentify the match 92% of the time. In contrast, a novice will correctlyidentify the match 75% of the time. Consider a sample of five different partsof fingerprints, where each pair is a match.
Questions
1. Whatis the probability that an expert will correctly identify the match in all fivepairs of fingerprints?
2. Whatis the probability that a novice will correctly identify the match in all fivepairs of fingerprints?
Airline fatalities
U.S.airlines average about 4.5 fatalities per month (Statistics Abstract of the United States: 2012). Assume theprobability distribution for x, thenumber of fatalities per month, can be approximated by a Poisson probabilitydistribution.
1. FindE (x) and the standard deviation of x.
Below is the data needed for question titled “Judgement”
Problem#5CHOICE5676625755616243576158
