Statistical Techniques in Business and Economics

18th Edition

ISBN: 9781260579611

Author: Douglas Lind; William Marchal; Samuel Wathen

Publisher: MCGRAW-HILL HIGHER EDUCATION

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Textbook Question

Chapter 16, Problem 2C

B. Thomas Testing Labs

John Thomas, the owner of Thomas Testing, has for some time done contract work for insurance companies regarding drunk driving. To improve his research capabilities, he recently purchased the Rupple Driving Simulator. This device will allow a subject to take a “road test” and provide a score indicating the number of driving errors committed during the test drive. Higher scores indicate more driving errors. Driving errors would include not coming to a complete stop at a stop sign, not using turning signals, not exercising caution on wet or snowy pavement, and so on. During the road test, problems appear at random and not all problems appear in each road test. These are major advantages to the Rupple Driving Simulator because subjects do not gain any advantage by taking the test several times.

With the new driving simulator, Mr. Thomas would like to study in detail the problem of drunk driving. He begins by selecting a random sample of 25 drivers. He asks each of the selected individuals to take the test drive on the Rupple Driving Simulator. The number of errors for each driver is recorded. Next, he has each of the individuals in the group drink three 16-ounce cans of beer in a 60-minute period and return to the Rupple Driving Simulator for another test drive. The number of driving errors after drinking the beer is also shown. The research question is: Does alcohol impair the driver’s ability and, therefore, increase the number of driving errors?

Mr. Thomas believes the distribution of scores on the test drive does not follow a normal distribution and, therefore, a nonparametric test should be used. Because the observations are paired, he decides to use both the sign test and the Wilcoxon signed-rank test.

Chapter 16, Problem 2C, B. Thomas Testing Labs John Thomas, the owner of Thomas Testing, has for some time done contract

a. Compare the results using these two procedures. Conduct an appropriate test of hypothesis to determine if alcohol is related to driving errors.
b. Write a report that summarizes your findings.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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Chapter 16, Problem 1C

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Chapter 16 Solutions

Statistical Techniques in Business and Economics

Ch. 16 - Prob. 1SR Ch. 16 - Prob. 1E Ch. 16 - Prob. 2E Ch. 16 - Calorie Watchers has low-calorie breakfasts,...Ch. 16 - Prob. 4E Ch. 16 - Prob. 2SR Ch. 16 - Prob. 5E Ch. 16 - Prob. 6E Ch. 16 - Prob. 3SR Ch. 16 - Prob. 7E

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Solution Summary: The author compares the results using the sign test and Wilcoxon signed-rank test to determine if alcohol is related to driving errors.

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