An Assignment

On
Applied Statistics

Prepared for
Gazi Mohammad Hasan Jamil
Associate Professor
Department of Finance
Faculty of Business Studies
University of Dhaka

Prepared by
Group No: 07
BBA 24th Batch
Section: C
Department of Finance
Faculty of Business Studies
University of Dhaka

Date of Submission: October 17, 2019

 Chapter No. 06: Discrete Probability Distributions

6.1 Binomial Probability Distribution

The binomial probability distribution is a widely

occurring discrete probability distribution. One
characteristic of a binomial distribution is that there
are only two possible outcomes on a particular trial of
an experiment.

Examples:

It is reported that 20% of students are exclusively

using smart phones for playing online games. In
a sample of 12 students,

a) Find the probability that no one uses a smart

phone exclusively for playing online games.
b) Find the probability that exactly 2 students use
a smart phone exclusively for playing online
games.

c) Find the probability that exactly 5 students use

a smart phone exclusively for playing online
games.

Solution:

We will solve this problem by using excel

software. Here are the procedures for finding the
solution:

a)when no one uses, success = 0, probability =

.20
The result is 0.069 which perfectly matches with
the result of Table B.1 .

b) The probability that exactly 2 students use a

smart phone exclusively for playing online
games is :
The result is 0.283 .

c) The probability that exactly 5 students use a

smart phone exclusively for playing online
games:
The result is 0.05 .

6.2 Poisson Probability Distribution

: It is estimated that 1.5% of the students

Example

using smart phones for their study purpose only.

What is the probability that out of 1200 students,
at least 25 students are using their smart phones
for study purpose only?

Solution:
The result indicates that 2.4% of 25 students are
using smart phones for their study purpose only.
 Chapter 11 & Chapter 12

Examples: In a business/ school, there are 4 departments namely Finance, Accounting, Marketing &
Management. A sample of the CGPA of the 1st year students is given below.

Finance Accounting Marketing Management

2.49 2.58 3.59 3.11
2.25 3.43 3.06 3.33
3.72 3.80 2.79 2.76
3.79 3.69 2.85 2.59
3.62 3.81 3.24 3.40
2.20 3.40 2.03 3.51
3.14 3.80 3.90 2.78
2.02 3.45 3.34 3.88
3.29 3.22 2.25 3.19
3.13 2.98 3.91 3.75
2.19 2.61 2.98 2.76
2.15 3.91 2.92 2.50
2.29 2.68 3.99 3.80
3.56 3.67 2.79 2.30
2.95 3.14 3.88 3.78
3.21 3.12 3.83 2.02
2.12 3.88 2.75 2.62
3.67 3.42 3.44 3.52
3.99 3.18 2.89 3.05
2.38 2.69 2.42 3.40
3.47 2.27 2.67 2.59
2.09 3.85 2.58 3.17
3.43 2.38 2.01 2.82
2.87 3.95 3.94 2.93
3.62 2.44 2.17 3.57
3.52 3.83 3.77 2.37
3.78 2.54 3.79 3.68
2.53 3.73 2.91 2.78
3.53 2.34 2.49

3.62 3.93 3.94

3.92 2.96

3.75 3.80

2.17

3.75

3.90

1) At the 0.05 significance level, can we conclude that the mean CGPA of Finance
department is equal to marketing department?
2) At the 0.05 significance level, can we conclude that the mean CGPA of all the
departments are equal?

Fina Acco Mark Mana

nce untin eting gemen
g t

Mea 3.02 Mean 3.29 Mea 3.12 Mean 3.07

n 040 186 n 167 002
7 1
Stan 0.11 Stand 0.09 Stan 0.11 Standa 0.09
dard 898 ard 995 dard 102 rd 684
Erro 9 Error 3 Error 3 Error 4
r
Med 3.17 Medi 3.42 Medi 2.97 Media 3.07
ian 723 an 884 an 284 n 995
2 3 2
Mod 3.62 Mod #N/ Mod #N/ Mode 2.76
e 294 e A e A 488
6
Stan 0.65 Stand 0.59 Stan 0.62 Standa 0.51
dard 172 ard 132 dard 804 rd 245
Devi 8 Devia 8 Devi 4 Deviati 1
atio tion ation on
n
Sam 0.42 Samp 0.34 Sam 0.39 Sampl 0.26
ple 474 le 966 ple 443 e 260
Vari 9 Varia 9 Varia 9 Varian 6
ance nce nce ce
Descriptive Statistics:

Solution to 01

The Excel commands for the two-sample t-test

t-Test: Two-Sample Assuming Equal Variances

Select the Data tab on the top menu. Then, on the
far right, select Data Analysis. Select t-Test: Two
Sample Assuming Equal Variances, and then click
OK.
In the dialog box, indicate that the range of Variable
1 is from B2 to B32 and Variable 2 from D2 to
D34, the Hypothesized Mean Difference is 0, click
Labels, Alpha is 0.05, and the Output Range is
J3. Click OK.
Excel Output
t-Test: Two-Sample Assuming Equal Variances

Finance Marketing

Mean 3.020407 3.12167

Variance 0.424749 0.394439
Observations 30 32
Pooled Variance 0.409089

Hypothesized Mean Difference 0

df 60

t Stat -0.62299

P(T<=t) one-tail 0.267826

t Critical one-tail 1.670649

P(T<=t) two-tail 0.535652

t Critical two-tail 2.000298

Test process:
Step 1: State the null hypothesis and the alternate hypothesis.
H0: µF= µM
H1: µF≠ µM

Step 2: Select the level of significance.

We selected the .05 significance level.
Step 3: Determine the test statistic.
t test
Step 4: Formulate a decision rule.
Reject H0 if t< -2.000298 or t> 2.000298
Step 5: Make the decision regarding H0
Fail to reject H0
Step 6: interpret the result.
The mean CGPA of Finance department is equal to marketing department.

t-Test: Two-Sample Assuming Unqual Variances

Select the Data tab on the top menu. Then, on the
far right, select Data Analysis. Select t-Test: Two
Sample Assuming Equal Variances, and then click
OK.
In the dialog box, indicate that the range of Variable
1 is from B2 to B32 and Variable 2 from D2 to
D34, the Hypothesized Mean Difference is 0, click
Labels, Alpha is 0.05, and the Output Range is
J3. Click OK.

Excel Output
t-Test: Two-Sample Assuming Unequal Variances

Finance Marketing

Mean 3.020407 3.12167

Variance 0.424749 0.394439
Observations 30 32
Hypothesized Mean Difference 0

df 59

t Stat -0.62223

P(T<=t) one-tail 0.268093

t Critical one-tail 1.671093

P(T<=t) two-tail 0.536185

t Critical two-tail 2.000995

Test process:
Step 1: State the null hypothesis and the alternate hypothesis.
H0: µF= µM
H1: µF≠ µM
Step 2: Select the level of significance.
We selected the .05 significance level.
Step 3: Determine the test statistic.
t test
Step 4: Formulate a decision rule.
Reject H0 if t< -2.000995or t> 2.000995
Step 5: Make the decision regarding H0
Fail to reject H0
Step 6: interpret the result.
The mean CGPA of Finance department is equal to marketing department.

Solution to 02

The Excel commands for the one-way ANOVA

Select the Data tab on the top menu. Then, on
the far right, select Data Analysis. Select ANOVA:
Single Factor, then click OK.
In the subsequent dialog box, make the input
range B2: E37, click on Grouped by Columns,
click on Labels in first row, the Alpha text box
is .05, and finally select Output Range as I3 and
click OK.

Excel output

ANOVA

Source of Variation SS df MS F P-value F crit

Between Groups 1.37874 3 0.45958 1.277655 0.285167 2.679535

Within Groups 43.52441 121 0.359706

 Total 44.90315 124

Test process
Step 1: State the null hypothesis and the alternate hypothesis.
H0: µF= µa = µMK= µMg
H1: Not all treatment means are the same.

Step 2: Select the level of significance.

We selected the .05 significance level.
Step 3: Determine the test statistic.
F test
Step 4: Formulate a decision rule.
Reject H0 if F>2.679535
Step 5: Make the decision regarding H0
Fail to reject H0
Step 6: Interpret the result.
The mean CGPA of all the departments are equal