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For each of the following situations choose the statistical model that you find to be the most appropriate. Justify your choice.
a) We are interested in assessing the effects of temperature (low, medium, and high) and technical configuration on the amount of waste output for a manufacturing plant. Suppose that we have randomly selected 5 technical configurations out of 100 configurations, and we want our conclusions to apply to all 100 configurations.
b) We are evaluating the association between the presence of a very rare adverse event (yes, no) and the treatment received (placebo, new drug) for a group of 100 patients. We want to be able to control for age (in years).
c) We are evaluating the effectiveness of five different diets with respect to weight loss. Fifty women were randomly assigned to each one of the five different diet regimens, and the weight loss during a one year period was recorded.
d) We are interested in evaluating the relationship between the levels of C-reactive protein and the body mass index for a sample of 1000 middle aged African-American women.
e) We are interested in comparing (on average) the housing prices (in thousands of dollars) for five specific locations within the same city. To allow for fair comparisons we will take into account the size of the house (in square feet) and the age of the house (in years).
Random Sampling Method In this method the units are selected in such a way that every item in the whole universe has an equal chance of being included. In the words of croxton
The Case Study included information about the price for a full meal before and after the law change (in dollars). Of interest is whether the differences in price for a full meal b
Mathematical Properties The sum of deviations of the items from the arithmetic mean (taking signs into account) is always zero, i.e. = 0. The sum of
These techniques are applied when the rows and the columns of the data table represent the same units and when the measure is a disiance or a similarity. The goal of the analysis i
From the information given, what seems to be the main flaw in each of the following statistical generalisations? (i) Banking industry employees are facing a crisis, if their
When the number of farmers growing wheat in Russia increases, the increase in world supply lowers the world price of wheat. Draw an appropriate diagram to analyze how this chang
As one of the oldest multivariate statistical methods of data reduction, Principal Component Analysis (PCA)simplifies a dataset by producing a small number of derived
You are interested in testing the distance of two golf balls, Brand A and Brand B. You take a random sample of 100 golfers, each of whom hits Brand A once and Brand B once. Define
Theories of Business forecasting
Question: (a) (i) Define the term multicollinearity. (ii) Explain why it is important to guard against multicollinearity. (b) (i) Sometimes we encounter missing values
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