Imus Institute

COLLEGE DEPARTMENT
2nd Semester AY 2014 2015
Midterm Examination
Advanced Statistics

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Rating

Name: ___________________________________ Date : ____________ Permit No. : __________

Prof. :Mr. Jun Catalan
I.

Solve the following:

1. SJS Company as been selling to retail customers in the Metro Manila area. They
advertise extensively on radio, print ads, and in the internet. The owner would like
to review the relationsip between the amount spent on advertising expense (in
000s) and sales (in P000s). Below is information on advertising expense and sales
for the last 9 monts.
Month
Advertising
Expense
Sales Revenue

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

10
180

14
170

12
190

9
220

13
235

15
208

8
215

13
175

16
250

Find the coefficient of correlation. Determine at the 0.10 significance level whether
the correlation in the population is greater than zero.
2. Suppose a market analyst wised to see whether consumers have any preferences
among eight flavors of a new ice tea. A sample of 320 people provided these data:

Apple
60

Cherry
30

Grape
40

Lemon
45

Mango
35

Melon
50

Orang
e
25

Banan
a
55

If there were no preference, one would expect each flavor to be selected with equal
frequency. Is there enough evidence to reject the claim that there is no preference in
te selection of ice tea, use level of significance = 0.01
GOOD LUCK