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ECON 2202 – Statistical Methods in Economics and Business II EXCEL ASSIGNMENT WINTER 2016 Late…
ECON 2202 –Statistical Methods in Economics and Business II
EXCEL ASSIGNMENT
WINTER 2016
 Late assignments receive a grade of 0. Failure to submit this assignment leads to an FND in the course.
 You must use EXCEL in the questionswhere indicated for this assignment. Copy and paste the tables into EXCEL from the text below.You must hand in all EXCEL output where indicated. .
 The assignment otherwise is hand written. Please label the Excel outputs with the question numbers.
 Students may work together on the assignment, but each student MUST submit the assignment independently.
 Keep a copy of this assignment to study from, solutions will be posted.
 All hypothesis tests MUST use the five steps. Formulae are necessary in all cases unless otherwise noted. For this assignment ONLY you can follow these examples to keep the document smaller and save time!! The conclusions MUST be complete IN CONTEXT as always.
Ftest:
1. Ho: regression is not significant, Ha: regression is significant
2. ?=0.05, onetailed. F_{?,(k, nk1)}= F_{0.05,(2,7)}= 6.542
3. Reject Ho if F_{0} >F_{?}
4. F = MSR/MSE = 43.3648
5. Since F_{0} > F_{?}(43.3648> 6.542), reject Ho. The regression equation is significant; the relationship between apples and oranges is significant.
OR if using pvalues
Pvalue approach
1. Ho: regression is not significant, Ha: regression is significant
2. ?=0.05, onetailed
3. Reject Ho if pvalue < =="">
4. pvalue = 0.0001
5. Since pvalue = 0.0001 < =="" 0.05,="" reject="" ho.="" the="" regression="" equation="" is="" significant;="" the="" relationship="" between="" apples="" and="" oranges="" is="">
1. (16 +3 for Excel work) A company is reviewing the performance of two different suppliers of toner ink as their intention is to compare them and possible switch to the alternate one. Using the following data for hours of toner use before empty and alpha = 0.05 in all cases answer the following.
CURRENT SUPPLIER A 
ALTERNATE SUPPLIER B 
486 
489 
490 
489 
491 
491 
491 
492 
494 
492 
494 
492 
496 
492 
498 
493 
498 
493 
498 
494 
502 
495 
504 
496 
505 
497 
506 
497 
507 
497 
508 
498 
510 
499 
514 
502 
515 
503 
527 
505 
a. (5) Determine if the standard deviation of the Alternate Supplier B is significantly less than 5. Use alpha = 0.05. (No EXCEL)
b. (3) Determine if the variation of the hours of toner use of Current Supplier A is greater than that of Alternate Supplier B. Use EXCEL, include printout of result andDO NOT USE pvalues in test write up.
c. (3) Determine if there is any difference in the variation of the hours of toner use between the two suppliers. Use EXCEL, include printout of result andDO NOT USE pvalues in test write up.
d. (3) Using the findings of part (c), test to determine if Current Supplier A has higher average hours of toner use than Alternate Supplier B. Use EXCEL, include printout of result and use pvalues in test.
e. (2) What is your recommendation to the company with respect to the supplier to select? Explain.
2. (3+1 for Excel work) Public health in a local hospital decided to test whether the length of time that nurses wash their hands will alter the amount of bacteria remaining on them. To ensure consistency in the testing nine nurses were selected and each washed their hands, in the first trial for 2.5 seconds and in the second for 15 seconds. The amount of remaining bacteria was measured in each case. Test the hypothesis that longer washing leads to less bacteria remaining. Use alpha = 0.05.
CULTURE 1 
CULTURE 2 
66 
78 
132 
115 
120 
93 
187 
48 
190 
77 
17 
3 
33 
12 
92 
12 
1000 
146 
3. (15+1 for Excel work) Grading assignments is a real problem, taking a great deal of time and while many students do a poor job, many copy and gain no benefit. An instructor who taught three sections of a course carried out a test. One section had no assignments, one had assignments but they were not graded, and the final section had graded assignments. Grades were reviewed after the first midterm. Assume each population is normally distributed, and samples are independent random samples. Using EXCEL where possible performALL ANOVA tests necessary to determine which approach if any led to higher grades. Use alpha = 0.05 in all tests. Use EXCEL for the ANOVA test and use the p values in testing. For those tests for which you cannot use EXCEL, use the standard write up as used in the practice assignments.
No Assignments 
Assignments, Not Graded 
Assignments, Graded 
69 
73 
83 
69 
63 
97 
92 
68 
72 
84 
79 
79 
79 
57 
84 
84 
68 
76 
76 
72 
91 
63 
74 
76 
76 
49 
83 
82 
84 
88 
89 
79 
91 
72 
71 
96 
72 
80 
68 
65 
74 
99 
73 
71 
89 
47 
63 
80 
92 
88 
79 
71 
83 
91 
83 
89 
83 
81 
82 
83 
92 
69 
76 
80 
92 
90 
64 
79 
79 
72 
81 
67 
84 
76 
86 
79 
81 
86 
74 
81 
82 
81 
75 
84 
4. (9+1 for Excel work) The instructor in the previous example teaches the same sections of the course four times a year and wanted to investigate if there was not only a difference in the way assignments were treated but also in the time of year the course was given. The following data was collected. Assume all populations are normally distributed, observations are independent, and population variances are equal. Using EXCEL perform all remaining tests necessary to determine whether the grades were influenced by assignment method and/or semester. Use alpha = 0.05 in all tests. No post tests are required.
TERM 
No Assignments 
Assignments, Not Collected 
Assignments, Collected 
FALL 
69 
73 
83 
69 
63 
97 

92 
68 
72 

84 
79 
79 

79 
57 
84 

84 
68 
76 

76 
72 
91 

WINTER 
63 
74 
76 
76 
49 
83 

82 
84 
88 

89 
79 
91 

72 
71 
96 

72 
80 
68 

65 
74 
99 

EARLY SUMMER 
73 
71 
89 
47 
63 
80 

92 
88 
79 

71 
83 
91 

83 
89 
83 

81 
82 
83 

92 
69 
76 

LATE SUMMER 
80 
92 
90 
64 
79 
79 

72 
81 
67 

84 
76 
86 

79 
81 
86 

74 
81 
82 

81 
75 
84 
5. (16) Is the type of beverage ordered with lunch at a restaurant independent of the age of the customer? A random sample of 309 lunch customers was taken and the results are as follows. Using alpha = 0.01, test to determine if the two factors are related. Please show intermediate calculation steps for part marks. (No Excel in this question.)
AGE 
COFFEE/TEA 
SOFT DRINK 
OTHER 

2134 
26 
95 
18 
139 
3555 
41 
40 
20 
101 
OVER 55 
24 
13 
32 
69 
91 
148 
70 
309 
6. (13 +5 for Excel work) Can sales of major fast food chains be explained by the number of individual locations the chain has? Consider the following data where sales are measured in $ billions and locations are in thousands.
SALES 
LOCATIONS 

MCDONALD'S 
17.1 
12.4 
BURGER KING 
7.9 
7.5 
TACO BELL 
4.8 
6.8 
PIZZA HUT 
4.7 
8.7 
WENDY'S 
4.6 
4.6 
KFC 
4 
5.1 
SUBWAY 
2.9 
11.2 
DAIRY QUEEN 
2.7 
5.1 
A & W 
2.7 
2.9 
Use EXCEL, to create a scatter diagram, correlation matrix, and regression model. Conduct all tests at the 5% significance level.
a) (2) Reviewing the data and the scatter diagram, does the correlation matrix result support the relationship you would expect? Are there any other considerations or concerns that arise from this?
b) (5) Conduct a test to determine whether the population correlation coefficient is significantly different from zero. Do not use p values.
c) (4) Is there an observation which is impacting the relationship?Given your findings in parts (a) and (b), explain what you might consider doing to further investigate this relationship? Rerun the correlation matrix and the equation and compare the two models with respect to the correlation of the variables, the fit (R2), and the significance of the slope. You do not need to write out the tests just use the p values to explain what happens and why when comparing the significance of the model or slope.
d) (2) Which model would you select to examine the relationship? Explain your choice.
7. (15+2 for Excel work) Consider the following data for the average cost of various fuels and electricity for a twelve year period. The data measure the following:
Electricity 
Residential rate per kilowatt hour 
Natural Gas 
Residential natural gas per 1000 cubic feet 
Fuel Oil 
Residential fuel oil per gallon 
Gasoline 
Regular gasoline per gallon 
Your model will attempt to predict residential electricity costs using the cost of the other fuels.
a) (1) State whether you would expect a positive or negative relationship between electricity costs and each of the independent variables and explain why.
b) (2) Use EXCEL, to create a correlation usingall independent variables provided. Discuss all aspects of the correlation matrix, as it compares to your expectations in part (a) and what it tells you about the potential results of a regression analysis.
c) (3) Use EXCEL to run a multiple regression to estimate electricity costs usingall independent variables provided. Test if the overall regression is significant at the 5% level.
d) (3) Test for the significance of each slope coefficient at the 5% level. (Incorporate all tests into ONE five step answer as in the slides.)
e) (2) Based on your correlation matrix and the results of your regression do you suspect multicollinearity? If yes, which independent variable(s) to you think could be responsible?
f) (2) Explain how you test for multicollinearity but do not test.
g) (2)How could you rerun the regression taking into account the issues in the first regression? Which variable or variables would you keep as an explanatory variable(s), and why?
Electricity 
Natural Gas 
Gasoline 
Fuel Oil 
2.54 
1.29 
0.39 
0.21 
3.51 
1.71 
0.57 
0.31 
4.64 
2.98 
0.86 
0.44 
5.36 
3.68 
1.19 
0.61 
6.2 
4.29 
1.31 
0.76 
6.86 
5.17 
1.22 
0.68 
7.18 
6.06 
1.16 
0.65 
7.54 
6.12 
1.13 
0.69 
7.79 
6.12 
1.12 
0.61 
7.41 
5.83 
0.86 
0.34 
7.41 
5.54 
0.9 
0.42 
7.49 
4.49 
0.9 
0.33 