Q1. Distinguish between probability and non-probability samples. What are the advantages

and disadvantages of each? (15 points)

Q2: The application of Chi-square and

t-tests in hypothesis testing. (35 points)

Scenario 1

A consultant has collected 700 usable responses via a probability sample concerning

political opinions. After analyzing each respondent's political ideology, he/she divides the

respondents into two groups, moderate liberals and moderate conservatives. Further, the

consultant asks respondents the following:

How likely are you to vote for increasing property taxes in the next election?

(1) very unlikely (2) somewhat unlikely (3) undecided (4) somewhat likely (5) very likely

The consultant wants to determine if the moderate conservatives differ significantly from

moderate liberals concerning how they'll vote on the property tax issue in the next election.

Scenario 2

A local car dealer is attempting to determine which premium will draw the most visitors to its

showroom. An individual who visits the showroom and takes a test ride is given a premium with

no obligation. The dealer chose four premiums and offered each for one week. The results are as

follows:

Week, Premium,

Total Given Out

1: Four-foot metal stepladder

425

2: $50 savings bond

610

3: Dinner for four at a local steakhouse

510

4: Six pink flamingos plus an outdoor thermometer

705

a). Please identify the appropriate statistical test for each scenario and explain why you choose

this test. (10 points)

b). For each scenario, please generate the null and alternative hypotheses for each test. (15

points)

c). Assuming both test statistics are rejected (provide actual numbers and table values), what

conclusion can you drawn based on your hypothesis. Interpret your results for both scenarios. (10 points)