Example 3.4 Recall the Verizon case study in Section 1.3. Whether Verizon is judged to be...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Example 3.4 Recall the Verizon case study in Section 1.3. Whether Verizon is judged to be making repairs slower for competitors' customers is determined using hypothesis tests, as mandated by the New York Public Utilities Commis- sion (PUC). Thousands of tests are performed to compare the speed of different types of repairs, over different time periods, relative to different competitors. If substantially more than 1% of the tests give P-values below 1%, then Verizon is deemed to be discriminating. Figure 3.4 shows the raw data for one of these tests. The mean of 1664 repairs for ILEC customers is 8.4 h, while the mean for 23 repairs for CLEC customers is 16.5 h. Could a difference that large easily be explained by chance? There ILEC ILEC 1200 150 800 100 600 400- 50 200- 50 100 150 200 -3 -2 -1 O 1 2 Ropair times Theoretical quantiles GLEC CLEC kouenbery Sample quantiles CLEC CLEC 100 15 80 10 60 40 20 50 100 150 200 12 Repair times Theoretical quantles Figure 3.4 Distribution of repair times for Verizon (ILEC) and competitor (CLEC customens. Note that the Y-axis scales are different. appears to be one outlier in the smaller data set; perhaps that explains the difference in means? However, it would not be reasonable to throw out that observation as faulty - it is clear from the larger data set that large repair times do occur fairly frequently. Furthermore, even in the middle of both distribu- tions, the CLEC times do appear to be longer (this is apparent in panel (b). There are curious bends in the normal quantile plot, due to 24h cycles. Let a, denote the mean repair time for the ILEC customers and u, the mean repair time for the CLEC customers. We test H,i H = H versus H H. < We use a one-sided test because the alternative of interest to the PUC is that the CLEC customers are receiving worse service (longer repair times) than the ILEC customers. louerba Sample quantiles 3.5 In the flight delays case study in Section 1.1, the data contain flight delays for two airlines, American Airlines and United Airlines. a) Conduct a two-sided permutation test to see if the difference in mean delay times between the two carriers are statistically significant. b) The flights took place in May and June of 2009. Conduct a two-sided permutation test to see if the difference in mean delay times between the two months is statistically significant. Example 3.4 Recall the Verizon case study in Section 1.3. Whether Verizon is judged to be making repairs slower for competitors' customers is determined using hypothesis tests, as mandated by the New York Public Utilities Commis- sion (PUC). Thousands of tests are performed to compare the speed of different types of repairs, over different time periods, relative to different competitors. If substantially more than 1% of the tests give P-values below 1%, then Verizon is deemed to be discriminating. Figure 3.4 shows the raw data for one of these tests. The mean of 1664 repairs for ILEC customers is 8.4 h, while the mean for 23 repairs for CLEC customers is 16.5 h. Could a difference that large easily be explained by chance? There ILEC ILEC 1200 150 800 100 600 400- 50 200- 50 100 150 200 -3 -2 -1 O 1 2 Ropair times Theoretical quantiles GLEC CLEC kouenbery Sample quantiles CLEC CLEC 100 15 80 10 60 40 20 50 100 150 200 12 Repair times Theoretical quantles Figure 3.4 Distribution of repair times for Verizon (ILEC) and competitor (CLEC customens. Note that the Y-axis scales are different. appears to be one outlier in the smaller data set; perhaps that explains the difference in means? However, it would not be reasonable to throw out that observation as faulty - it is clear from the larger data set that large repair times do occur fairly frequently. Furthermore, even in the middle of both distribu- tions, the CLEC times do appear to be longer (this is apparent in panel (b). There are curious bends in the normal quantile plot, due to 24h cycles. Let a, denote the mean repair time for the ILEC customers and u, the mean repair time for the CLEC customers. We test H,i H = H versus H H. < We use a one-sided test because the alternative of interest to the PUC is that the CLEC customers are receiving worse service (longer repair times) than the ILEC customers. louerba Sample quantiles 3.5 In the flight delays case study in Section 1.1, the data contain flight delays for two airlines, American Airlines and United Airlines. a) Conduct a two-sided permutation test to see if the difference in mean delay times between the two carriers are statistically significant. b) The flights took place in May and June of 2009. Conduct a two-sided permutation test to see if the difference in mean delay times between the two months is statistically significant.
Expert Answer:
Answer rating: 100% (QA)
According to the chegg guideline Im solving only question ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
If this landfill is judged to be a governmental fund, what liability will be reported at the end of the second year on fund financial statements? a. $0 b. $110,000 c. $190,000 d. $200,000 A city...
-
If this landfill is judged to be a proprietary fund, what liability will the city report at the end of the second year on fund financial statements? a. $0 b. $110,000 c. $190,000 d. $200,000 A city...
-
Use the data in the case study in Section 16-2 to explain how the shares of the four components of gross private domestic investment (GPDI) in natural GDP (a), have changed since 1960 and (b), behave...
-
Let F = [F] lb. a) Determine the force Fp acting at roller D. b) Determine the force FE acting at pin E. F 4 ft B 600 lb. ft -3 ft C -3 ft OD -2 ft- E
-
Pier 1 Imports is a nationwide retail outlet selling imported furniture and other home items. From time to time, the company surveys its regular customers by obtaining random samples based on...
-
Find the Maclaurin polynomial of order n for f(x) = 1 / (1 - x). Then use it with n = 4 so approximate each of the following? (a) f(0.1) (b) f(0.5) (c) f(0.9) (d) f(2)
-
Express the Henry's-law constants reported in Table 8.1 as \(H_{i, p c}\) and \(H_{i, c p}\). Dimensionless temperature, 0.9 0.8 0.7 0.6 K=1+ (0-1/2) 0.5 0.4 0.3 0.2 0.1 K = 1 0 0.2 0.4 0.6 0.8...
-
Moonstruck Company manufactures a reservation system with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment...
-
Legacy issues $ 6 1 0 , 0 0 0 of 6 . 5 % , four - year bonds dated January 1 , 2 0 2 1 , that pay interest semiannually on June 3 0 and December 3 1 . They are issued at $ 5 4 0 , 9 8 1 when the...
-
A developer has a rectangular 5-acre site with a commercial zoning designation allowing mini-storage, office, retail, or apartments. The land is under contract for purchase for $3.35 million and the...
-
Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 120 $11 5/5...
-
Question 6 A is used to connect networks together. A connects nodes within a single network. router/switch switch / router port/ switch router/gateway
-
Abba, Inc. is considering dropping a product line. During the prior year, the line had sales of $207,000 and a contribution margin of $124,000. Fixed expenses consist of: Salaries $60,000 Rent 50,000...
-
Suppose that the five dining philosophers all suddenly wake up (they were watching golf on TV, and it had put them to sleep). Realizing that they are hungry they all rush to the table and grab their...
-
Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art drove his car 11,000 miles for business purposes and 27,000 miles in...
-
For the unadjusted trial amounts, how does the cash amount change?
-
For the physical system shown in the figure, a. Sketch the free-body diagrams for the two masses. b. Write the equations of motion. X2 K 000 M2 -fa(t) B X K B M 000 B3
-
As water moves through the hydrologic cycle, water quality changes are common because of natural phenomena or anthropogenic pollution. Using Figure 11.1, describe how water-quality changes occur...
-
Explain how each of the following will shift the IS curve. (a) The decline in sales of American agricultural products to foreign countries resulting from a strong U.S. dollar in the early to...
-
Explain how a person who falls into the ranks of the hidden unemployed differs from someone who is officially counted as unemployed. Compare the Global Economic Crisis with earlier recessions in...
-
Suppose that a collapse of housing and stock prices reduces real wealth. That reduction in real wealth reduces autonomous planned spending by 800 billion at every interest rate. (a) Derive the new...
-
A membrane separator is \(3 \mathrm{~mm}\) in diameter, and the membrane permeability was estimated as \(2 \times 10^{-6} \mathrm{~m} / \mathrm{s}\). The solute being transported has a diffusivity of...
-
Develop a simple backmixed model to evaluate the performance of a gas-separation system. Here a feed gas enters a high-pressure chamber with a mole fraction of A of \(x_{\mathrm{Af}}\) and leaves...
-
Pervaporation: a case-study problem. Pervaporation refers to removal of the permeate as vapor and represents an intermediate case between purely gas transport and purely liquid transport in a...
Study smarter with the SolutionInn App