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# Normal Distribution – CCJ Homework

Please assist with simple statistical questions. All data is available and you just need to compute the z score and also construct the normal distribution and plot the distribution along with the mean. All instructions are available, see attached.
Please do not take assignment if you are not competent in statistics.

## Please submit 2 files: Excel sheet with work and word document with essay answers. Please use the textbook chapter

Please submit 2 files: Excel sheet with work and word document with essay answers. Please use the textbook chapter I provided as the only reference needed and only cite it one time. Here are the details:
The Lazer Company has a contract to produce a part for Boeing Corporation that must have an average diameter of 6 inches and a standard deviation of 0.10 inch. The Lazer Company has developed a process that will meet the specifications with respect to the standard deviation, but it is still trying to meet the mean specifications. A test run (considered a random sample) of parts was produced, and the company wishes to determine whether this latest process that produced the sample will produce parts meeting the requirement of an average diameter equal to 6 inches.

Use Excel to:
1. Construct the appropriate null and alternative hypotheses with correct parameters.
2. Develop the decision rule assuming that the sample size is 200 parts and the significance level is 0.01.

In a Word document:
1. Recommend what the Lazer Company should conclude if the sample mean diameter for the 200 parts is 6.03 inches.
2. Submit your recommendations in a Word document and attach your Excel file.

## Topic Often times there are so many variables involved in a study that it is difficult to distinguish “causes”.

Often times there are so many variables involved in a study that it is difficult to distinguish “causes”. For example, there is the belief that “smoking causes lung cancer”. I tend to believe this myself but my own mother was a chain smoker and never developed lung cancer. There are many other variables that might affect the outcome of lung cancer such as working conditions, heredity, diet, etc.

It is too hard to account for every “factor” in these circumstances so we might just focus on one such as studying lung cancer patients and asking them if they smoked or not.

In this discussion, you are going to come up with some example of the binomial probability distribution. Remember our definition:

Def: Binomial probability distribution
1. procedure has fixed # of trials
2. trials must be independent
3. each trial must have all outcomes classified into 2 categories
4. probabilities must remain constant for each trial

For example, we interview 50 lung cancer patients (fixed # of trials). They come from all occupations and parts of the state (independence). Either they smoked or did not smoke (2 categories). If 15% of the population smokes then the probability would remain constant for each trial equaling 15% or 0.15. This would meet the conditions for a binomial probability distribution.

Come up with your own examples of a binomial probability distribution. It can be made up, you do not need actual numbers.

## stata Problem Set

Using our US Macro data, do the following (make sure your year and quarter variables are destringed like we did last week)
a. First, run a hypothesis test looking at if the average unemployment rate (over all years) is different than 6. Write your null and alternative hypotheses. Interpret your results. Do they make sense to you?
b. Now run a hypothesis test the average unemployment rate from 2008 – 2010 is different than 6. Write your null and alternative hypotheses. Interpret your results. Do they make sense to you?
c. What is the 95% confidence interval for the unemployment rate between 2008

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