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COMM 291 ASSIGNMENT 5 Fall 2014




Question 3 Small Business (7 points);The director of a small business development center located in a mid-sized city is reviewing data;about its clients. In particular, shes interested in examining if the distribution of business owners;across the various stages of business life cycle is the same for white-owned and visible-minorityowned businesses. The data are shown in the table below;Stages in Business;Planning;Starting;Managing;Getting Out;Business ownership;White-owned;Visible-minority-owned;11;9;14;11;20;2;15;1;a) Will you test goodness-of-fit or homogeneity (independence)? (.5 point);b) Write the appropriate hypothesis. (.5 point);c) Find the expected counts for each cell and explain why chi-square procedure are not;appropriate for this table. (1 point);d) Create a new table by combining categories so that a chi-square procedure can be used. (1;point);e) With this change in the table, what has happened to the degrees of freedom? (.5 point);f) Test the hypothesis about the two groups and state the appropriate conclusion. (3.5 points);Question 4 Seasonal spending (8 points);Spending on credit cards decreases after the holiday spending season (as measured by amount;charged on a credit card in December). The data set in the file (Asst5_2014_Data.xlsx) contains;the monthly credit card charges of a random sample of 99 cardholders.;a) Check the conditions of a regression model for the dataset. (3.5 point);b) Build a regression model to predict January spending from Decembers spending. (1 point);c) How much, on average, will cardholders who charged $2000 in December charge in;January? (.5 point);d) Give a 95% confidence interval for the average January charges of cardholders who charged;$2000 in December? (1.5 points);e) From part d), give a 95% confidence interval for the average decrease in the charges of;cardholders who charged $2000 in December? (1 point);f) What reservations, if any, do you have about the confidence intervals you made in part d);and e)? (.5 point)


Paper#20347 | Written in 18-Jul-2015

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