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    Managerial Statistics

    WEB CASE

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    1). Data Collection procedures followed CCACC toform its conclusions are flawed, because theyvefollowed Convenience Sampling

    They should have followed Simple Random Samplingto make their conclusions more accurate. Alsosample size used should be more than 5 units.

    2) (a) Oxford Os mean weight:

    (360.4 + 361.8 + 362.3 + 364.2 +371.4 )/5

    =(1820.1)/5

    = 364.02

    Oxford Alpine frosted flakes mean weight:

    Chapter 7

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    (b)

    Parameters Oxford Os Alpine

    368 368

    364.02 368.04

    15 15

    Z -0.59 0.006

    Z(Critical) -1.64 -

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    3). It will be incorrect to conclude about the filling process of the

    two cereals, as the conclusion is drawn using biased samples of 5units each.

    4). Yes, the request is reasonable because allegations is not

    backed with ample evidence.

    5). Yes, such techniques can be used if we take an unbiased

    sample by using simple random sampling. In such scenario, if

    there is any cheating case it can be proved by CCACC.

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    Oxford Cereal chapter 9

    The Null &Alternate hypothesisare as follows

    H0 : < 368

    H1 : > 368

    As depicted the p value0.07

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    Oxford Cereal chapter 9

    The confidence level for themean weight of the box contents is

    367.16 < < 373.71

    This implies that the contents ofthe box could weigh anything upto 373.71 grams,hence Oxfordcereals claim that many boxes

    contain more than 368 grams isnot surprising and is true.

    Possibility that the publicexperiment and the CCACCclaim can both be right exists

    because the sample size taken inboth cases could have been

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    Q. On a recent purchase of a new sample of cereal boxes--ten produced atPlant #1 and ten produced at Plant #2. It was discovered that the average

    weight of Plant #1 boxes was 372.44 grams, but that the average weight ofPlant #2 was 365.64 grams, less than the 368 grams claimed.

    Even after the recent public experiment about cereal box weights, theCCACC remains convinced that Oxford Cereals has mislead public.

    1. Do the CCACCs results prove that there is a statistical difference in themean weights of cereal boxes produced at Plant# 1 and 2?

    2. Perform the appropriate analysis to test the CCACCs hypothesis. Whatconclusions can you reach based on the data?

    Chapter 10- OXFORDCEREALS

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    Samples are randomly and independently drawn.

    Populations are normally distributed

    Population variances are unknown

    If population variances are equal, the pooled-variance t test is appropriate

    Here, use a separate-variance t test, which includes the two separate sample variancesin the computation of the test statistic

    We have 2 sets of data where the variances are unknown, so we have 2 options here.We can either apply POOLED-VARIANCE t-test or SEPARATE VARIANCE t-test.

    So we will apply F-test here to decide for the same.

    Solution

    2

    2

    2

    1

    S

    SF =

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    DATA

    Plant 1 Plant 2

    375.28 364.51

    368.19 367.95356.98 368.62

    366.1 370.25

    379.84 345.45

    365.51 359.36376.39 379.64

    398.66 378.71

    353.09 358.14

    384.37 363.74

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    From the F-test we can see that variances are different,

    so we will apply separate variance t-test.

    F-testF-Test Two-Sample for Variances

    Variable 1 Variable 2

    Mean 372.441 365.637

    Variance 180.8843 101.1672

    Observations 10 10

    df 9 9

    F 1.787974

    P(F

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    t-Test: Two-Sample Assuming Unequal Variances

    Variable 1 Variable 2

    Mean 372.441 365.637

    Variance 180.884277 101.167201

    Observations 10 10

    Hypothesized Mean Difference 0

    df 17t Stat 1.2811504

    P(T

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    Hypothesis:

    From the results, we can see that the t-value is less than

    the t-critical, so we can accept our hypothesis.

    Interpretations

    Two-tail test:

    H0: 1 = 2H1: 1 2

    i.e.,

    H0: 1 2 = 0H1: 1 2 0

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    THANK YOU.