BUS ADM 210
computer project
Instructions:
•
Follow the directions for each problem.
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Use JMP for all the calculations.
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The data sets needed are available in Contents page of D2L in the Computer Project module.
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Create one file for your project.
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Download the project in a D2L dropbox called Computer Project.
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Answer all the questions thoroughly, hand in the answers to the questions fully with JMP outputs. Cut
and paste the JMP output into Word or other document software to create only one file.
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Organize your responses with respect to the problems given.
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If there are any questions do not hesitate to ask your TA or instructor.
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Working with other students is fine. However, each student’s project must be a product of his/her own
solutions of the problems. This is to be your own work. Any projects that are exactly the same will not
be graded.
Datasets:
1. You create your own. A sample of 45 gas station prices of regular unleaded gasoline.
2. Houses sp 15.JMP: A random sample of 24 houses for sale in the area around UWM. Variables are: List
Price of a home, Price, number of bedrooms, Bed and size of the house, Square Feet.
3. Airline.JMP: A Two-way table that compares airlines to on-time status.
1
Problem 1: (5 points) Because of the talk about gas prices we want to know information about the price of
regular unleaded gasoline for the gas stations in the Milwaukee area.
a) What is the population of interest?
b) Find the gas prices of regular unleaded gasoline for 45 gas stations in the Milwaukee area. Hint: You can
use any online source as in AAA or gasbuddy.com or you can drive around. Describe how you found the
sample of 45 gas stations. Here is the website for AAA: http://aaa.opisnet.com/index.aspx
c) Construct a histogram of the regular unleaded gasoline prices that you found. Describe the distribution of
this variable. Give the shape, center, and spread according to the histogram.
d) Determine the following descriptive statistics from your sample of gasoline prices.
i.
mean
ii.
standard deviation
iii.
median
iv.
Q1 the first quartile
v.
Q3 the third quartile
Problem 2: (22 points) We are interested in estimating the mean price of unleaded gasoline in the Milwaukee
area. The following will give us this estimation.
a) Using your data that you found in Problem 1, determine a 99% confidence interval for the mean gasoline
prices.
b) Give an interpretation of this confidence interval.
c) Last month, AAA gave an average gasoline price of $2.29 in Milwaukee. According to your data can we
say there is a significant difference in the mean gasoline prices compared to month ago?
i.
Give the null and alternative hypothesis
ii.
Describe the assumptions of this hypothesis test. Determine if the test statistic you are using is
appropriate. Fully explain.
iii.
Determine the p-value
iv.
Give a conclusion of this hypothesis test. Use α = 0.01.
v.
Compare the results of the 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.
2
This part (c) is to test Quantitative Literacy and will be graded by the following rubric.
Assessment Rubric (points)
3
2
Learning
Outcome
Assessment
Item
4
1
Students will
recognize and
construct
mathematical
models and/or
hypotheses that
represent
quantitative
information.
Give the null and
alternative
hypotheses to
determine if the
mean gasoline
price per gallon
has significantly
changed from
last year’s price.
Skillfully converts
relevant information
into an appropriate and
desired hypothesis that
contributes to a further
or deeper
understanding.
Competently
converts relevant
information into an
appropriate and
desired hypothesis.
Completes conversion
relevant information into a
hypothesis but is only
partially appropriate or
accurate.
Completes
conversion
relevant
information into
a hypothesis but
is inappropriate
or inaccurate.
Students will
evaluate the
validity of
these models
and hypothesis.
Describe the
assumptions of
this hypothesis
test. Determine
if the test
statistic you are
using is
appropriate.
Explicitly describes
the assumptions of
the hypothesis test
and provides
compelling
rationale for why
this test statistic is
appropriate.
Explicitly describes the
assumptions of the
hypothesis test.
Attempts to
describe the
assumptions of
the hypotheses
test.
Students will
analyze and
manipulate
mathematical
models using
quantitative
information.
Determine the pvalue of this
significance test.
Explicitly describes
the assumptions of the
hypothesis test and
provides compelling
rationale for why this
test statistic is
appropriate. Shows
awareness that
confidence in final
conclusions is limited
by the accuracy of this
hypothesis.
Analyses are attempted
and all are successful
to answer the problem.
Analyses are also
presented elegantly.
(clearly, concisely,
etc.)
Analyses are
attempted and all
are successful to
answer the
problem.
Analyses are attempted
and some are successful to
answer the problem.
Analyses are
attempted but
are incorrect to
answer the
problem.
Students will
reach logical
conclusions,
predictions, or
inferences.
Give the
conclusion of
this significance
test, use 0.01 as
the level of
significance.
Provides correct
conclusion based on
the quantitative
information derived.
Makes appropriate
inferences based on
that information.
Provides correct
conclusion based
on the quantitative
information
derived.
Provides somewhat correct
conclusion based on the
quantitative information
derived, but may have
some wrong conclusions.
Students will
assess the
reasonableness
of their
conclusions.
Compare the
results of the
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?
Uses the quantitative
information effectively
as a basis for deep and
thoughtful judgments,
drawing insightful,
carefully qualified
assessment for the
reasonableness of their
conclusions.
Uses the
quantitative
information as a
basis for competent
judgments, drawing
reasonable and
appropriately
qualified
assessment for the
reasonableness of
their conclusions.
Uses the quantitative
information effectively as
a basis for workmanlike
(without inspiration)
judgments, drawing
plausible assessment for
the reasonableness of their
conclusions.
Attempts to
provide correct
conclusion based
on the
information, but
draws incorrect
conclusions
about what the
information
means.
Uses the
quantitative
information as a
basis for
tentative, basic
judgments
assessment for
the
reasonableness
of their
conclusions.
3
Problem 3: (8 points) Using the JMP dataset Houses sp 15.JMP, we want to determine if the size of the house
(Square feet) can predict the list price (Price).
a) Give a scatterplot of Price (y-axis) and Square feet (x-axis). Describe the relationship between price and
size by describing the form, direction and strength. Note any outliers or influential points.
b) Estimate the correlation coefficient between Price and Square feet.
c) Determine the simple linear regression line equation to predict Price by Square feet of the house.
d) What is the slope b1? Give the interpretation of what that means about the Price with respect to Square
Feet.
e) Using the regression equation, predict the Price of a house that is 1,800 sq ft.
f) What percent of variation in Price can be explained by this regression equation?
Problem 4: (10 points) Using the JMP dataset Houses sp 15.JMP,, we are going to look at the difference
between the mean price of a 4-bedroom house compared to the mean price of a 3-bedroom house.
a) Give the summary statistics for price of 4-bedroom houses and the price of 4-bedroom houses. Hint: you
can use Bed as the “by variables” in the dialog box for “Distribution.”
b) Create a boxplot of the price between 4-bedroom houses and 3-bedroom houses. Write out similarities or
differences to the list price of the houses compared to number of bedrooms.
c) Determine a 98% confidence for the difference for the mean price 4-bedroom houses and 3-bedroom
houses.
d) Are the mean house prices for a 3 bedroom house significantly less than the mean house prices for 4
bedroom houses?
i.
Give the null and alternative hypothesis.
ii.
Give the p-value.
iii.
Make a decision of the test. Use α =0.02
iv.
Give a conclusion in answer to the question above.
Problem 5: (5 points) Suppose the Federal Aviation Administration (FAA) would like to compare the on-time
performances of different airlines on domestic, nonstop flights. The following table shows three different airlines and the
frequency of flights that arrived early, on-time, and late for each. This is also in the JMP file airline.jmp.
Airline
Status
Southwest US Airways
Delta
Early
20
24
22
On-time
60
55
50
Late
25
30
14
We want to determine if on-time status and airline are independent of one another.
a) Give the null and alternative hypothesis.
b) In the contingency table output from JMP include count, expected, and cell chi square.
c) Give the P-value and decision of this test.
d) What can we conclude from this significance test? Using α = 0.05.
4
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