QMB 3200 Sec 521
Homework #9
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QMB 3200 Sec 521
Homework #9
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Instructions: Solve all the problems. All problems carry 20 points each. Maximum score for
Homework #9 is 80 points.
Due: Attach your report on Canvas before 1:00 p.m. Wednesday, Dec. 4th.
Additional Suggestions/Instructions:
1) No need for typing. You can do your work by hand on paper.
2) If you use an A-4 size paper to do your Homework on one side, perhaps it will be easier for you to
scan.
3) Remember to write down your name on the report and number the pages.
4) Create a single scanned file. Verify and ensure everything with your report is in order. Word or pdf
formats are acceptable.
5) Name your report file: “Your Full Name”+”Homework Number”.
6) Upload your report file on Canvas and verify if everything is fine.
7) Do not wait until the last minute. The deadline is strictly enforced by Canvas. No hardcopy
submissions are accepted. No e-mail submissions are accepted. If your file is not uploaded to Canvas
before the deadline, you would lose points.
8) If anyone needs help with scanning, please stop by the Information Commons Help Desk by the
second floor Rotunda and seek help. They will explain what you need to do and you will be able to
scan your work. Their service is totally free of charge for you. Information Commons is open 9 a.m.
– 9 p.m. Monday through Thursday; 9 a.m. – 5 p.m. on Friday; and 8 a.m. – 5 p.m. on Saturday.
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1. Are stock splits beneficial to stockholders? SNL Financial studied stock splits in the banking
industry over an 18-month period. For a sample of 20 stock splits, 15 led to an increase in
investment value, 3 led to a decrease in investment value, and 2 resulted in no change.
Conduct a sign test to determine if it can be concluded that stock splits are beneficial for
holders of bank stocks.
a) What are the null and alternative hypotheses?
b) Using α = .01, what is your conclusion?
2. A poll taken during the recession in 2008 asked 600 adults a series of questions about the
state of the economy and their children’s future. One question was, “Do you expect your
children to have a better life than you have had, a worse life, or a life about the same as
yours?” The responses showed 240 better, 310 worse, and 50 about the same. Use the sign
test and α = .01 to determine whether there is a difference between the number of adults who
feel their children will have a better life compared to a worse life. What is your conclusion?
3. A test was conducted for two overnight mail delivery services. Two samples of identical
deliveries were set up so that both delivery services were notified of the need for a delivery at
the same time. The hours required to make each delivery follow. Do the data shown suggest a
difference in the median delivery times for the two services? Use a .10 level of significance
for the test.
Service Delivery 1 2
1 24.5 28.0
2 26.0 25.5
3 28.0 32.0
4 21.0 20.0
5 18.0 19.5
6 36.0 28.0
Service Delivery 1 2
7 25.0 29.0
8 21.0 22.0
9 24.0 23.5
10 26.0 29.5
11 31.0 30.0
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4. Unisys maintains a hurricane database which provides information on hurricanes in the
Atlantic/Caribbean/Gulf of Mexico and the Eastern Pacific Ocean. Maximum wind speeds in
knots for a sample of hurricanes over the past four hurricane seasons are shown. Use α = .10
and test to determine whether the distribution of hurricane wind speeds is the same for these
two regions. What is your conclusion?
Atlantic/Carribean/Gulf of Mexico Eastern Pacific Ocean
Storm Max Wind Speed Storm Max Wind Speed
Frances 125 Darby 105
Jeanne 110 Frank 75
Lisa 65 Isis 65
Emily 135 Hilary 90
Ophelia 80 Max 70
Rita 150 Bud 110
Wilma 150 Daniel 130
Ernesto 65 Sergio 95
Florence 80 Cosme 65
Helene 105 Flossie 120
Dean 145 Henriette 75
Karen 60 Ivo 70
