MM305 Unit 4 Project

MM305 Unit 4 Project

Name:

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. Previous Experience

2. Education

3. Which variable has the greatest relative variability?

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 45% 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 9 of them will make a purchase?

2. What is the probability that at least 6 of the 15 people will make a purchase?

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 $55,000?

4. The time required to complete a project is normally distributed with a mean of 80 weeks and a standard deviation of 5 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 90 percent sure of finishing by the due date, use the NORMINV Excel Function to determine what due date (project week #) should be negotiated?

5. In a state lottery participants select 6 numbers between 1 and 49. At the end of the week, the state lottery commission randomly draws 6 numbers between 1 and 49. How many different possible winning number combinations could be drawn by the lottery commission?

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 90% confidence level in PHStat to estimate the mean current salary for company executives .

1. The 90% confidence level is:

2. If you were to change the confidence level to 95%, what would happen to the confidence interval?

7. Using the Salary Data Set,

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

2. Determine the correlation between the variables

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

9. What is the purpose of statistical inference?

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

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 current salaries. Be sure to include:

1. Your null and alternative hypotheses;

2. The level of alpha you elect to use and why in terms of Type I or Type II error;

3. Show the output from the analysis;

4. Your interpretation of the results; and

5. A written statement to the director of Human Resources as to whether they should be concerned about the complaint.

Salary Data
Employee	Gender (1=male, 2=female)	Education (years)	Current Salary	Beginning Salary	Previous Experience (months)
1	1	15	$57,000	$27,000	144
2	1	8	$31,900	$13,200	190
3	1	12	$31,900	$12,750	0
4	1	15	$27,900	$12,750	115
5	1	12	$44,000	$13,500	244
6	1	15	$27,750	$14,250	34
7	1	12	$40,800	$15,000	24
8	1	15	$34,650	$14,250	61
9	1	12	$37,500	$15,000	75
10	1	12	$25,800	$15,000	143
11	1	12	$26,700	$12,900	18
12	1	15	$26,700	$15,000	56
13	1	16	$66,000	$47,490	150
14	1	16	$52,650	$19,500	20
15	1	16	$45,625	$23,250	60
16	1	12	$44,900	$11,250	0
17	1	12	$45,500	$12,000	11
18	1	8	$27,100	$10,200	0
19	1	18	$68,125	$32,490	29
20	1	12	$30,600	$15,750	460
21	1	8	$31,300	$11,550	24
22	1	12	$23,400	$11,250	18
23	1	12	$23,400	$11,250	0
24	1	16	$34,500	$17,250	3
25	1	12	$28,150	$10,950	0
26	1	12	$24,450	$14,250	117
27	1	12	$42,200	$16,500	7
28	1	17	$29,100	$12,750	375
29	1	12	$37,650	$15,750	132
30	1	12	$27,900	$13,500	32
31	1	12	$28,500	$11,250	154
32	1	12	$35,000	$15,000	121
33	1	19	$61,250	$33,000	9
34	1	19	$36,000	$19,500	21
35	1	8	$35,200	$18,750	344
36	1	16	$34,950	$20,250	55
37	1	8	$36,250	$16,050	264
38	1	15	$23,850	$13,500	122
39	1	12	$29,700	$13,500	26
40	1	8	$21,600	$13,500	228
41	1	16	$110,500	$44,100	128
42	2	16	$40,200	$18,750	36
43	2	12	$21,450	$12,000	381
44	2	15	$45,000	$21,000	138
45	2	15	$32,100	$13,500	67
46	2	15	$26,000	$18,750	114
47	2	16	$30,300	$16,500	143
48	2	8	$28,350	$12,000	26
49	2	15	$35,100	$16,800	137
50	2	12	$27,300	$13,500	66
51	2	15	$46,000	$14,250	48
52	2	16	$67,500	$27,510	70
53	2	15	$23,700	$13,500	359
54	2	16	$32,300	$26,250	126
55	2	8	$30,750	$15,000	451
56	2	12	$20,850	$12,000	163
57	2	15	$35,250	$15,000	54
58	2	12	$26,550	$13,050	11
59	2	12	$27,750	$12,000	11
60	2	16	$25,050	$12,750	123
61	2	15	$30,900	$15,000	25
62	2	15	$29,400	$16,500	24
63	2	12	$19,650	$10,950	11
64	2	12	$22,050	$10,950	9
65	2	15	$28,200	$12,750	19
66	2	12	$23,100	$11,250	13
67	2	12	$25,500	$11,400	9
68	2	19	$52,125	$27,480	221
69	2	19	$51,875	$36,750	199
70	2	12	$19,650	$11,250	5
71	2	12	$22,350	$11,250	5
72	2	12	$24,300	$10,950	8
73	2	12	$28,500	$11,250	4
74	2	12	$19,950	$11,250	8
75	2	8	$21,750	$12,450	318
76	2	12	$49,400	$33,750	272
77	2	16	$79,500	$60,000	150
78	2	12	$35,700	$16,500	72
79	2	15	$22,950	$13,950	22
80	2	12	$23,100	$12,000	228
81	2	16	$56,750	$30,000	15
82	2	8	$21,150	$12,000	159
83	2	12	$31,200	$15,750	155
84	2	12	$20,700	$11,250	2
85	2	12	$21,300	$11,250	3
86	2	12	$19,650	$13,950	133
87	2	17	$60,000	$32,490	17
88	2	15	$30,300	$15,750	55
89	2	12	$30,750	$15,000	56
90	2	12	$33,540	$15,750	47
91	2	15	$40,350	$16,500	80
92	2	12	$30,270	$15,750	80
93	2	15	$32,400	$15,000	64
94	2	12	$20,400	$11,250	0
95	2	8	$24,150	$12,750	96
96	2	12	$24,450	$15,750	87
97	2	15	$28,050	$16,500	84
98	2	15	$49,000	$20,550	86
99	2	12	$16,350	$10,200	163
100	2	16	$70,000	$21,750	19

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