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For each of the following situations choose the statistical model that you find to be the most appropriate. Justify your choice.
a) We are interested in assessing the effects of temperature (low, medium, and high) and technical configuration on the amount of waste output for a manufacturing plant. Suppose that we have randomly selected 5 technical configurations out of 100 configurations, and we want our conclusions to apply to all 100 configurations.
b) We are evaluating the association between the presence of a very rare adverse event (yes, no) and the treatment received (placebo, new drug) for a group of 100 patients. We want to be able to control for age (in years).
c) We are evaluating the effectiveness of five different diets with respect to weight loss. Fifty women were randomly assigned to each one of the five different diet regimens, and the weight loss during a one year period was recorded.
d) We are interested in evaluating the relationship between the levels of C-reactive protein and the body mass index for a sample of 1000 middle aged African-American women.
e) We are interested in comparing (on average) the housing prices (in thousands of dollars) for five specific locations within the same city. To allow for fair comparisons we will take into account the size of the house (in square feet) and the age of the house (in years).
applications of normal probability distribution
Lifts usually have signs indicating their maximum capacity. Consider a sign in a lift that reads "maximum capacity 1400kg or 20 persons". Suppose that the weights of lift-users are
You want to know the thoughts of air travelers in fields such as tickets, comffort, safety, securuty, services and economic growth. You are given a database and 20 questions to ask
Question Following the general methodology used by econometricians as explained in the session for week 1 (eight steps), explain how you would proceed to determine if a good com
Simulation When decisions are to be taken under conditions of uncertainty, simulation can be used. Simulation as a quantitative method requires the setting up of a mathematical
How to a calculate the combined standard deviation for five groups (samples)?
The Null Hypothesis - H0: The random errors will be normally distributed The Alternative Hypothesis - H1: The random errors are not normally distributed Reject H0: when P-v
Exercise: (Binomial and Continuous Model.) Consider a binomial model of a risky asset with the parameters r = 0:06, u = 0:059, d = 0:0562, S0 = 100, T = 1, 4t = 1=12. Note that u
Empirical Mode Where mode is ill-defined, its value may be ascertained by the following formula based upon the empirical relationship between Mean, Median and Mode: Mode = 3
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