In the following profit payoff table for a decis problem with two states of nature and three alternatives, the prior probabilities for s1 and P(81) = .8 and P(82) = .2. Excel File: data20-15.xls State of Nature Decision Alternative $2 d, dz dz 15 10 12 20 10 a. What is the optimal decision? - Select your answer - b. Find the EVPI. c. Suppose that sample information I is obta with P(I|81) = .20 and P(I|82) = .75. Find the posterior probabilities P(81|1) and P(s; decimals). P(81|I) = P(82\I) =

If a = 1, b 1 = 10, b 2 = 10, X 1 = 2, and X 2 = 3, what would the predicted Y score be?

1. Suppose that you estimate a model of house prices to determine the impact of having beach frontage on the value of a house.14 You do some research, and you decide to use the size of the lot instead of the size of the house for a number of theoretical and data availability rea- sons. Your results (standard errors in parentheses) are: PRICE; = 40 + 35.0 LOT¡ – 2.0 AGE; + 10.0 BED; – 4.0 FIRE; (1.0) (5.0) (10.0) (4.0) (10) N = 30 R2 =.63 where: PRICE¡ =the price of the th house (in thousands of dollars) =the size of the lot of the th house (in thousands of square feet) = the age of the th house in years =the number of bedrooms in the th house =a qualitative/dummy variable for a fireplace (1 = yes for the th house) LOT; AGE; BED; FIRE; a. You expect the variables LOT and BED to have positive coefficients. Create and test the appropriate hypotheses to evaluate these expectations at the 5-percent level. b. You expect AGE to have a negative coefficient. Create and test the appropriate…

Westminster Financial has released a summary of investor and investment package information from the past fiscal year. During this time, Westminster provided a choice among 12 pre-designed investment packages. The investment packages were classified according to two variables: riskiness of investment package chosen ("Risky", "Moderate/mixed", and "Conservative") and age of investor ("Under 35", "35-49", or "50+"). Suppose that we're interested in the possible relationship between the age of the investor and the riskiness of the investment package the investor chose. The following contingency table gives a summary of the information released by Westminster regarding age and riskiness of investment package for 150 investors. In the cells of the table are the respective observed frequencies, and three of the cells also have blanks. Fill in these blanks with the frequencies expected if the two variables, riskiness of investment package chosen and age of investor, are independent. Round…

A cellphone provider has the business objective of wanting to determine the proportion of subscribers who would upgrade to a new cellphone with improved features if it were made available at a substantially reduced cost. Data are collected from a random sample of 600 subscribers. The results indicate that 131 of the subscribers would upgrade to a new cellphone at a reduced cost. Reducing the price will be profitable if at least 20% of the subscribers would upgrade. Complete parts​ (a) and​ (b) below.       Question content area bottom Part 1 a. At the 0.01 level of​ significance, is there evidence that more than 20% of the customers would upgrade to a new cellphone at a reduced​ cost?   Determine the null​ hypothesis, H0​, and the alternative​ hypothesis, H1.     A. H0​: π=0.20 H1​: π≠0.20   B. H0​: π≥0.20 H1​: π<0.20   C. H0​: π≤0.20 H1​: π>0.20   D. H0​: π≠0.20 H1​: π=

A pharmaceutical company has developed a drug that is expected to reduce hunger.  To test the drug, three samples of rats are selected with n=9 in each sample.The first sample receives the drug every day.  The second sample is given the drug once a week, and the third sample receives no drug at all (the control group).  These assignments of drugs are called treatments.The (dependent) variable being compared is the amount of food eaten by each rat over a 1-month period.  These data are analyzed by an ANOVA, and the results are reported in the following summary table.  How many groups (or population means or treatments) are being compared in this problem? _________ (Enter a whole number) What is the total number of data used in this problem?  _________(Enter a whole number) Fill in all missing values in the table.  (Hint:  Start with the df column and your above answers.)If there are decimal places in your answer, provide 2 or more decimal places. Source of Variation SS df MS F…

Exercise 2. Marginal and Conditional Relationships can be Very Different. For 100 mild cases of eczema, a new treatment had a higher cure rate than the old treatment (33.3% of 90 vs. 20% of 10). For 100 severe cases of eczema, again the new treatment had a higher cure rate than the old treatment (60% of 20 vs. 50% of 80). Over all 200 eczema cases, however, the old treatment had a higher cure rate than the new treatment- i.e. Simpson's Paradox strikes again. (a) Compute the overall cure rates for the new and old treatments. (b) Which treatment, old or new, would you choose and why?

Q1. A psychologist conducted a study on the relationship between introversion and shyness. The values are results for scales of introversion and shyness. High positive scores on each scale indicate high introversion or shyness; and high negative scores indicate low introversion or shyness. Data collected from 10 people as follows: Introversion 4 -7 -1 0 6 7 -4 -9 -5 8 Shyness 11 -7 -1 -3 0 7 -1 -8 -1 5 a) Compute the correlation coefficient relating introversion and shyness scores. b) Find the regression equation which predicts introversion from shyness. c) What introversion score would you predict from a shyness score of 7?

If we use a cutoff of 0.05, is it unusual for someone to have a great deal of confidence in educational institutions?

Anita's, a fast-food chain specializing in hot dogs and garlic fries, keeps track of the proportion of its customers who decide to eat in the restaurant (as opposed to ordering the food "to go") so it can make decisions regarding the possible construction of in-store play areas, the attendance of its mascot Sammy at the franchise locations, and so on. Anita's reports that 52% of its customers order their food to go. Suppose that this proportion is correct and that a random sample of 40 individual customers is taken. Answer the following. (If necessary, consult a list of formulas.) (a) Estimate the number of customers in the sample who order their food to go by giving the mean of the relevant distribution (that is, the expectation of the relevant random variable). Do not round your response. (b) Quantify the uncertainty of your estimate by giving the standard deviation of the distribution. Round your response to at least three decimal places. acer DII %23 $4 @ 3. 2 t r e tab f d