Posted: May 28th, 2015

Business Statistics for Managers Group Project

Task 6: One-Sample Tests of Hypothesis (Chapter 10).

1. Historical records show the “Family Income” of Patients is AED 19,000 Using your dataset of 100 Patients as a sample (n=100) and a population standard deviation of AED 6,215, establish what evidence you have to support a claim by the current manager that the “Family Income” is less than this at a significance level of 0.05? Show all the steps and use the traditional method and comment on your answer.               3 marks
2. The hospital publicise the average “Treatment Cost” as AED 2,600. A manager thinks the mean “Treatment Cost” is different from the advertised amount. Use your data as a sample (n=100) and show evidence to support the claim. Assume that the population standard deviation is unknown and test the claim using significance level 0.2. Use the P-value method: show all the steps used, draw a normal distribution to support your answer and comment upon your findings.                             2 marks

TASK 7: Correlation and Linear R  egression (Chapter 13)

In this task you should consider the question: Are the number of days that a patient stays at the hospital and the cost of treatment directly related?

1. Determine the dependent variable and the independent variables in the data. Draw the scatter diagram of your dataset (N=100). Describe the relationship between the dependent variable and the independent variable.                                            1 mark
2. Determine the regression equation and explain what it is used for.               1 mark
3. State the value of Y- intercept. Comment on its value.               1 mark
4. State the value of the correlation coefficient. Comment on its value. 1 mark
5. State the value of coefficient of the determination. Comment on its value. 1 mark
6. Estimate the “Treatment Cost” for a patient staying for 11 days.               1 mark