Testing for Trends A turbocharger wheel is manufactured using an investment-casting process. The shaft fits into the
Question:
(a) Suppose that p is the probability that observation Xi+5 exceeds observation Xi. If there is no upward or downward trend, Xi+5 is no more or less likely to exceed Xi or lie below Xi. What is the value of p?
(b) Let V be the number of values of i for which Xi+5 Xi. If there is no upward or downward trend in the measurements, what is the probability distribution of V?
(c) Use the data above and the results of parts (a) and (b) to test H0: there is no trend, versus H1: there is upward trend. Use a = 0.05.
Note that this test is a modification of the sign test. It was developed by Cox and Stuart.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Managing Controlling and Improving Quality
ISBN: 978-0471697916
1st edition
Authors: Douglas C. Montgomery, Cheryl L. Jennings, Michele E. Pfund
Question Posted: