Assignment - 02 (Statistical Inference)

Fall-2024

Due Date: 01.12.2024 (Till 10:00 PM) Max. Marks: 100

Q1. On 12 randomly selected cars, one of each type of tyre is installed on the rear wheels and,
as before, the cars are driven until the tyres wear out. The number of kilometers until wear-
out occurred is shown in the following table. Can we conclude from these data that the
new-design tyre is superior at 0.05 level of significance?
Car New Design Existing Design Car New Design Existing Design
1 65 56 7 108 106
2 72 58 8 98 94
3 110 97 9 91 86
4 70 64 10 92 98
5 90 87 11 94 106
6 95 83 12 70 66

Q2. Suppose we want to test the usefulness of IQ and gender on the test score. The regression
outputs are as follows:

F-test, p-value = 0.00000001

*Please note that female is the reference category.
(1) What are the dependent and independent variables?
 (2) Write down the regression equation by defining the dummy variable.
(3) Interpret the partial regression coefficients.
(4) Check the significance of the overall regression model.
(5) Check the significance of the individual 𝛽 coefficients.
(6) Interpret the R – squared value.
Q3. Suppose we have three variables for 12 different basketball players as follows:
Points scored, hours spent practicing, and training program (program 1, program 2,
program 3) used. The regression outputs are as follows:
Residuals:
Min 1Q Median 3Q Max
-1.5192 -1.0064 -0.3590 0.8269 2.4551

Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) 6.3013 0.9462 6.660 0.000159 ***
hours 0.9744 0.3176 3.068 0.015401 *
program2 2.2949 1.1369 2.019 0.078234 .
program3 6.8462 1.5499 4.417 0.002235 **
Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
Residual standard error: 1.403 on 8 degrees of freedom
Multiple R-squared: 0.9392, Adjusted R-squared: 0.9164
F-statistic: 41.21 on 3 and 8 DF, p-value: 3.276e-05
(1) What are the dependent and independent variables?
(2) Which program is the reference category?
(3) Write down the regression equation.
(4) Interpret the partial regression coefficients.
(5) Check the significance of the overall regression model.
(6) Check the significance of the individual 𝛽 coefficients.
(7) Interpret the multiple R – squared value.
Q4. The outputs are related to the impact of the amount of money spent (in US$) on three
advertising media (youtube, facebook and newspapers) on sales units.
youtube facebook newspaper sales
276.1 45.4 83.0 26.5
53.4 47.2 54.1 12.5
20.6 55.1 83.2 11.2
181.8 49.6 70.2 22.2
Residuals
Min 1Q Median 3Q Max
-10.59 -1.07 0.29 1.43 3.40

Coefficients
Estimate Std. Error t value Pr(>|t|)
(Intercept) 3.52667 0.37429 9.42 2e-16 ***
youtube 0.04576 0.00139 32.81 2e-16 ***
facebook 0.18853 0.00861 21.89 2e-16 ***
newspaper -0.00104 0.00587 -0.18 0.86
Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
Residual standard error: 2.02 on 196 degrees of freedom
Multiple R-squared: 0.897, Adjusted R-squared: 0.896
F-statistic: 570 on 3 and 196 DF, p-value: 2e-16
(1) What are the dependent and independent variables?
(2) Write down the regression equation.
(3) Interpret the intercept.
(4) Interpret the partial regression coefficients.
(5) Check the significance of the overall regression model.
(6) Check the significance of the individual 𝛽 coefficients.
(7) Interpret the multiple R – squared value.
Q5. A clinical study was conducted to see whether an antibody called denosumab is effective
in treatment of osteoporosis of postmenopausal women, as reported in the article
“Denosumab in Postmenopausal Women with Low Bone Mineral Density (New England
Journal of Medicine, Vol. 354, No. 8, pp. 821–831) by M. McClung et al. Postmenopausal
women with osteoporosis were randomly assigned into groups that received either a
placebo, or a six-month regimen of Denosumab at doses of 14 mg, 60 mg, 100 mg, or 210
mg. The following table provides summary statistics for the body-mass indexes (BMI) of
the women in each treatment group.
(F – Table Value = 2.41)
Treatment 𝑛𝑗 𝑥̅𝑗 𝑠𝑗

Placebo 46 25.9 4.3

14 mg 54 25.8 5.3
60 mg 47 27.5 5.8
100 mg 42 26.0 4.6
210 mg 47 25.9 4.3

At the 5% significance level, do the data provide sufficient evidence to conclude that a
difference exists in mean BMI for women in the five different treatment groups?
Q6. Gender discrimination in hiring. Suppose you are investigating allegations of gender
discrimination in the hiring practices of a particular firm. An equal-rights group claims that
females are less likely to be hired than males with the same background, experience, and
other qualifications. Data collected on 28 former applicants will be used to fit the model.

1) Estimate the probability that female

candidate who has 5 years of higher education and 6 years of experience is hired.
2) Estimate the probability that male candidate who has 5 years of higher education and 6
years of experience is hired.
3) Find and interpret the marginal effect of candidate’s gender on hiring probability for a
candidate who has 5 years of higher education and 6 years of experience.
 4) Find and interpret the marginal effect of another year of experience on hiring probability
for a candidate who has 5 years of higher education and 6 years of experience.
5) Predict whether a female candidate who has who has 5 years of higher education and 6
years of experience is hired or not hired.
6) Find and interpret the odds ratio of experience and gender variables.
Q7. One of the issues that came up in a recent national election (and is likely to arise in many
future elections) is how to improve Australian economic growth. Specifically, should
governments cut public spending and/or introduce tax reforms, job creation, and increase
education funding? Politicians need to know which sectors of the electorate support these
options to improve economic growth. Suppose that a random sample of 1000 voters were
asked which option they support and their political affiliations: Labor, Liberal-National
Coalition or Others (which included a variety of political persuasions). The responses were
summarized in a table called a contingency table and shown below. Do these results allow
us to conclude that political affiliation affects support for the economic options at 0.05 level
of significance?
Political affiliation
Economic options
Labor Coalition Others
Cut public spending 101 282 61
Introduce tax reforms 38 67 25
Job creation 131 88 31
Increase education funding 61 90 25

Q8. A random sample of 200 married men, all retired, was classified according to education
and number of children:

Number of Children
Education 0-1 2-3 Over 3
Elementary. 14 37 32
Secondary 19 42 17
College. 12 17 10

Test the hypothesis, at the 0.05 level of significance, that the size of a family is independent
of the level of education attained by the father.
Q9. Prepare a decision tree from the given rectangular predictor for the two predictors X1
and X2.

Q10. Prepare a rectangular predictor space corresponding to the decision tree given below for
the two predictors X1 and X2.