MM305 UNIT 4 PROJECT

Name:

Directions:

·         The following software may be used:

o   Excel->Data Analysis

o   Excel QM

o   PhStat

·         Please make sure to insert your answers, including any charts, graphs, or output, on this document.  You may be required to also upload original files from Excel.

·         The calculations are not your final answer.  A summary/explanation in your own word for each question posed should be included.

• Questions 1,3,6,7 and 11 require the use of the Salary Data File.  The Salary Data file is located in Doc Sharing->Instructor Graded Projects.

·         Be sure to put your name on this document and save it to your computer. Upload this Word document as your Unit 4 submission in the course Drop Box.

Submitting Your Project:

·         Save your project in a location that you will remember and with your full name. When you are ready to submit your project, click on the Dropbox and complete the steps below:

·         Click the link that says, “Submit an Assignment.”

·         In the “Submit to Basket” menu, select Unit 4 Project.

·         In the “Comments” field include your name.

·         Click the “Add Attachments” button.

·         Follow the steps listed to attach your Word Document.

·         You should revisit the Dropbox to view any helpful feedback your instructor has and to retrieve your graded project.

·         Make sure that you save a copy of your submitted project.

1. For each the following variables from the Salary Data Set provide the measures of location and measures of dispersion for the following variables:

1.    Beginning Salary

Answer:

.

Explanation (include any calculations or software output):

2.    Previous Experience

Answer:

.

Explanation (include any calculations or software output):

3.    Which variable has the greatest relative variability?

Answer:

Explanation (include any calculations or software output):

2. You are the manager of a high-end ladies fashion store.  For the past few months you have been gathering data and found that 55% of persons entering the store actually make a purchase. Assume these data follow a Binomial Distribution and use Excel to calculate the following binomial probabilities:

1.    If 15 people enter the store, what is the probability that exactly 8 of them will make a purchase?

Answer:

.

Explanation (include any calculations or software output):

2.    What is the probability that more than 8 of the 15 people will make a purchase?

Answer:

.

Explanation (include any calculations or software output):

3. Using the Salary Data Set what is the probability of randomly selecting one individual (male or female) with a current annual salary of over $40,000?

Answer:

Explanation (include any calculations or software output):

4. The time required to complete a project is normally distributed with a mean of 77 weeks and a standard deviation of 4 weeks.  The construction company must pay a penalty if the project is not finished by the due date of the contract. If a construction company bidding on this contract wishes to be 95 percent sure of finishing by the due date, use the NORMINV Excel Function to determine what due date (project week #) should be negotiated?

Answer:

.

Explanation (include any calculations or software output):

5. In a state lottery participants select 8 numbers between 1 and 49. At the end of the week, the state lottery commission randomly draws 8 numbers between 1 and 49. How many different possible winning number combinations could be drawn by the lottery commission?

Answer:

.

Explanation (include any calculations or software output):

6. From the Salary Data Set and assuming that the salary data is a random sample from the population of salaries from the multi-national company use the 95% confidence level in PHStat to estimate the mean beginning salary for company executives.

1.    The 95% confidence level interval is:

Answer:

Explanation (include any calculations or software output):

2.    If you were to change the confidence level to 99%, what would happen to the confidence interval?  What is the 99% confidence interval?

Answer:

.

Explanation (include any calculations or software output):

7. Using the Salary Data Set,

1.      Create a scatter plot to show this relationship between education and current salary

2.      Determine the correlation coefficient between the variables.  What does this tell us about the relationship?

Answer:

.

Explanation (include any calculations or software output):

8. Explain why rejecting the null hypothesis does not make the alternative hypothesis true.

Answer in your words:

9.  What is the purpose of statistical inference?

Answer in your words:

10. What is the difference between sampling error and the standard error of the mean?

Answer in your words:

11. You are a consultant working for Kaplan Consulting. The Director of Human Resources for a multi-national company has requested help in investigating a pay discrimination complaint brought by a female executive. The company provided the data in the Salary Data Set. Use PHStat and the appropriate t test, to investigate the claim of pay discrimination in the Beginning Salary.

“Is there a significant difference between the average female and average male salaries?”

1. What is the Null and the Alternative Hypotheses?

Ho:

Ha:

1. What is your level of alpha (α)?

Answer:

Why did you choose this level?  Please explain in terms of Type I or Type II errors.

1. What is the output from your analysis?

Software output or calculations:

1. What is your decision about the hypothesis based on the software output?

Answer in your words:

1. Is there a significant difference between the average female and average male salaries?  Please write a written statement to the director of Human Resources as to whether they should be concerned about the complaint.

Answer in your words: