Farm Claimants

1.1 A shopkeeper observes the number of cans of cool drink of various types sold during one week. The results are displayed in the table below:

1.2 The results of an annual claimant satisfactory Survey of policyholders who have had claim with State Farm Insurance Company revealed a 90%

satisfactory rate for claim rate for service. To check the accuracy of this claim, a random sample of State farm claimants was asked to rate whether they were satisfied with the quality of the service. The number who were satisfied was 153, unsatisfied 24. Test at the 5% significance level that the satisfaction rate is less than 90%.     (8)

a) What is the difference between the posterior probability computed using Bayes formula, and the p-value of a statistical test? (5 marks)

 

b) According to Cohen (1994), which steps should be taken to improve statistical practice? (5 marks)

c) Random factor and fixed factor ANOVA: Consider the following experiments with two independent variables A and B.

Case 1: A is fixed (2 levels) and B is fixed (2 levels)

Case 2: A is fixed (2 levels) and B is random (levels to be chosen)

Assume that you can test a maximum of 60 participants. Describe for both case 1 and case 2 how you would distribute participants across conditions to maximize statistical power. For case 2 this requires choosing the number of levels for variable B. (5 marks)