Baldwin Computer Sales is a small company located in Oldenburg, Washington. The founder of the company, Jonathan Baldwin, began the business by selling computer systems through mail-order at discount prices. Baldwin was one of the first computer mail-order companies to offer a toll-free phone number to their customers for support and trouble-shooting. Although the company has grown over time, many new competitors have entered the computer mail-order marketplace so that Baldwin’s share of this market has actually declined
Ben Davis and Teresa Grimes must analyze the data from the student purchase program and make a recommendation to Mr. Baldwin about the future of the program. The necessary data are contained in the file BALDWIN. A description of this data set is given in the Data Description section that follows. Using this data set and other information given in the case, help Ben Davis and Teresa Grimes evaluate the student purchase program and the potential usefulness of the screening test developed by the assistant to Teresa Grimes. The case questions will assist you in your analysis of the data. Use important details from your analysis to support your recommendations.
Data Description
The BALDWIN file contains data on all participants in the student purchase program who by now should have either paid in full or defaulted (i.e., those participants who should have graduated and held a job for at least two years). A partial listing of the data is shown here.
The dots in this applet can be viewed as showing the speeds of a sample of nine cars being driven through a residential area. Eight of the values are fixed, but we can change the “speed” of one of them to see how this change affects the median for the sample data. By clicking on the data value for the ninth car (represented by the green dot at the far right), we can drag the value upward or downward and change this car’s speed. The median for the data is shown at the top of the applet.
1.1 Click on the rightmost green dot and drag it so that the speed of the ninth car is 40 mph. What is the value for the median?
1.2 Click on the rightmost green dot and drag it so that the speed of the ninth car increases from 40 mph to 100 mph. What effect has this had on the value of the median?
1.3 By adjusting the speed of the ninth car, identify the highest and lowest possible values for the median speed for the nine cars in the applet.
1.4 Suppose the ninth car were a jet-powered supersonic vehicle and traveled through the neighborhood at 1000 mph. Although such a speed lies far beyond the scale in the applet, what would be the value of the median? What would be the approximate value for the mean? Which of these two sample descriptors has been more greatly affected by this extreme value in the data?

  • CreatedSeptember 08, 2015
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