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Business Statistics 3rd Edition Norean Sharpe, Richard Veaux, Paul Velleman - Solutions

In Exercises 50 and 52, we see the number of advertised brand names people recalled immediately after watching TV shows and 24 hours later. Strangely enough, it appears that they remembered more about the ads the next day. Should we conclude this is true in general about people’s memory of TV
The Chevy Tahoe Hybrid got a lot of attention when it first appeared. It is a relatively high-priced hybrid SUV that makes use of the latest technologies for fuel efficiency. One of the more popular hybrid SUVs on the market is the modestly priced Ford Escape Hybrid. A consumer group was interested
The National Assessment in Education Program compared science scores for students who had home Internet access with the scores of those who did not, as shown in the graph. They report that the differences are statistically significant.a) Explain what €œstatistically
The average credit card debt carried by college students was compared at public versus private universities. It was reported that a significant difference existed between the two types of institutions and that students at private universities carried higher credit card debt. a) Explain what
A national food product company believes that it sells more frozen pizza during the winter months than during the summer months. Average weekly sales for a sample of stores in the Baltimore area over a three-year period provided the following data for sales volume (in pounds) during the two
Here€™s some additional information about the pizza sales data presented in Exercise 57. It is generally thought that sales spike during the weeks leading up to AFC and NFC football championship games, as well as leading up to the Super Bowl at the end of January each year. If we omit those 6
In Olympic running events, preliminary heats are determined by random draw, so we should expect the ability level of runners in the various heats to be about the same, on average. The table gives the times (in seconds) for the 800-m men€™s run in the 2012 Olympics in London for
For the data in Exercise 2, we want to test the null hypothesis that the mean number of page visits is the same for the two websites. Assume that the data come from a population that is normally distributed.a) Using the values you found in Exercise 2, find the value of the t-statistic for the
In Exercise 59, we looked at the times in two different heats for the 800-m men€™s run from the 2012 Olympics. Unlike track events, swimming heats are not determined at random. Instead, swimmers are seeded so that better swimmers are placed in later heats. Here are the times (in seconds) for
If there is no seasonal effect on human births, we would expect equal numbers of children to be born in each season (winter, spring, summer, and fall). A student takes a census of her statistics class and finds that of the 120 students in the class, 25 were born in winter, 35 in spring, 32 in
From the same survey as in Exercise 9, 294 of the 409 respondents who reported earning less than $30,000 per year said they were social networking users. At the other end of the income scale, 333 of the 504 respondents reporting earnings of $75,000 or more were social networking users.a) Find the
The same poll as in Exercise has asked about social networking over several years and for different age groups.Here is a table of responses:a) Under the usual null hypothesis, what are the expected values?b) Compute the x2 statistic.c) How many degrees of freedom does it have?d) What do you
To complete the poll reported in Exercise 9, Pew Research surveyed respondents by telephone, drawing a random sample of landlines and another random sample of cell phones. For those numbers that were valid, they report the following:Are the results they find independent of the telephone type?a)
For each of the following situations, state whether you’d use a chi-square goodness-of-fit test, chisquare test of homogeneity, chi-square test of independence, or some other statistical test. a) A brokerage firm wants to see whether the type of account a customer has (Silver, Gold, or Platinum)
For each of the following situations, state whether you’d use a chi-square goodness-of-fit test, a chi-square test of homogeneity, a chi-square test of independence, or some other statistical test. a) Is the quality of a car affected by what day it was built? A car manufacturer examines a random
After getting trounced by your little brother in a children’s game, you suspect that the die he gave you is unfair. To check, you roll it 60 times, recording the number of times each face appears. Do these results cast doubt on the die’s fairness?Face Count1 .........112 ......... 73 .........
According to recent research (www.nas.org) married couples who met their spouse through an online dating service may have a different divorce rate than those who met €œoff-line.€ (Online Mating From Proceedings of the National Academy of Sciences of the United States of
For a lottery to be successful, the public must have confidence in its fairness. One of the lotteries in Maryland is Pick-3 Lottery, where 3 random digits are drawn each day.7 A fair game depends on every value (0 to 9) being equally likely at each of the three positions. If not, then someone
At a major credit card bank, the percentages of people who historically apply for the Silver, Gold, and Platinum cards are 60%, 30%, and 10%, respectively. In a recent sample of customers responding to a promotion, of 200 customers, 110 applied for Silver, 55 for Gold,
Census data for New York City indicate that 29.2% of the under-18 population is white, 28.2% black, 31.5% Latino, 9.1% Asian, and 2% are of other ethnicities. The New York Civil Liberties Union points out that of 26,181 police officers, 64.8% are white, 14.5% black, 19.1% Hispanic, and 1.4% Asian.
Here is a table showing who survived the sinking of the Titanic based on whether they were crew members or passengers booked in first-, second-, or third-class staterooms.a) If we draw an individual at random from this table, what€™s the probability that we will draw a member of the crew?b)
The table shows the rank attained by male and female officers in the New York City Police Department (NYPD). Do these data indicate that men and women are equitably represented at all levels of the department? (All possible ranks in the NYPD are shown.)a) What€™s the probability that a person
Students in an Introductory Statistics class at a large university were classified by birth order and by the college they attend.a) What kind of chi-square test is appropriate€”goodness-of-fit, homogeneity, or independence? b) State your hypotheses. c) State and check the conditions. d)
Consumer Reports uses surveys given to subscribers of its magazine and website (www.ConsumerReports.org) to measure reliability in automobiles. This annual survey asks about problems that consumers have had with their cars, vans, SUVs, or trucks during the previous 12 months. Each analysis is based
It’s common folk wisdom that cranberries can help prevent urinary tract infections in women. A leading producer of cranberry juice would like to use this information in their next ad campaign, so they need evidence of this claim. In 2001, the British Medical Journal reported the results of a
In March and April of 2011, the Pew Research Center asked 2142 U.S. adults and 1055 college presidents whether they would €œrate the job the higher education system is doing in providing value for the money spent by students and their families as€ Excellent, Good, Only Fair, or
The Cornell National Social Survey 8 polls 1000 U.S. adults each year throughout that time. One question asked in each survey was €œHow much does your family spend weekly on eating out?€ The table shows the results for 2008 and 2010. Was there a change?a) Would you interpret a
A large company in the northeastern United States that buys fish from local fishermen and distributes them to major companies and restaurants is considering launching a new ad campaign on the health benefits of fish. As evidence, they would like to cite the following study. Medical researchers
A survey of 430 randomly chosen adults finds that 47 of 222 men and 37 of 208 women had purchased books online. a) Is there evidence that the sex of the person and whether they buy books online are associated? b) If your conclusion in fact proves to be wrong, did you make a Type I or Type II
For the births in Exercise 1, In exercise If there is no seasonal effect on human births, we would expect equal numbers of children to be born in each season (winter, spring, summer, and fall). A student takes a census of her statistics class and finds that of the 120 students in the class, 25 were
A recent report suggests that Chief Information Officers (CIOs) who report directly to Chief Financial Officers (CFOs) rather than Chief Executive Officers (CEOs) are more likely to have IT agendas that deal with cost cutting and compliance (Search CIO .com, March 14, 2006). In a random sample of
GfK Roper Consulting gathers information on consumer preferences around the world to help companies monitor attitudes about health, food, and health care products. They asked people in many different cultures how they felt about the following statement: I try to avoid eating fast foods. In a random
Public libraries are not run for profit, but they must know their customers. A Pew Research survey in November 2012 found that 426 of 584 surveyed parents of young children had current library cards. 967 of 1668 adults without young children had library cards. a) Is there evidence that the
In early 2012, the proportion of mortgages that were “under water”—a negative equity position in which the homeowner owes more than the value of the home—was highest in Nevada and Arizona (s.wsj.net/public/resources/documents/info-NEGATIVE_EQUITY_0911.html). Lenders are also interested in
Immigration reform has focused on dividing illegal immigrants into two groups: long-term and short-term. In a random sample of 958 construction workers from the Northeast, 66 are illegal short-term immigrants. In the Midwest, 42 out of a sample of 1070 are illegal short-term immigrants. a) Is there
The surveys discussed in Exercise 27 also asked about weekly household expenditures for groceries. Here is a table with the results for the years 2008, 2009, and 2010:State and test an appropriate hypothesis about household expenditures for groceries in these three years.
A full service brokerage firm surveyed a random sample of 1200 clients asking them to indicate the likelihood that they would add inflation-linked annuities and bonds to their portfolios within the next year. The table below shows the distribution of responses by the investors€™ tolerance
Pew Research surveyed U.S., adults in December 2011. They asked how important it is €œto you personally€ to be successful in a high-paying career or profession. Among 18€“34 year-old respondents do men and women have the same ideas about the importance of this kind of
A leading CEO mentoring organization offers a program for chief executives, presidents, and business owners with a focus on developing entrepreneurial skills. Women and men executives that recently completed the program rated its value. Are perceptions of the program€™s value the same for
The Cornell National Social Survey asked 1000 U.S. adults about their employment status and whether they owned stocks. This table gives the counts of the 938 respondents:Is there a relationship between employment status and stock ownership? a) Select an appropriate procedure. b) Check the
For the customers in Exercise, In exercise At a major credit card bank, the percentages of people who historically apply for the Silver, Gold, and Platinum cards are 60%, 30%, and 10%, respectively. In a recent sample of customers responding to a promotion, of 200 customers, 110 applied for Silver,
A recent report concludes that while Internet users like the convenience of online shopping, they do have concerns about privacy and security (Online Shopping, Washington, DC Pew Internet & American Life Project FEBRUARY 2008). A random sample of adults were asked to indicate their level of
In some situations where the expected counts are too small, as in Exercise 38, we can complete an analysis anyway. We can often proceed after combining cells in some way that makes sense and also produces a table in which the conditions are satisfied. Here is a new table displaying the same data,
The director of a small business development center located in a mid-sized city is reviewing data about its clients. In particular, she is interested in examining if the distribution of business owners across the various stages of the business life cycle is the same for white-owned and
A subtle form of racial discrimination in housing is €œracial steering.€ Racial steering occurs when real estate agents show prospective buyers only homes in neighborhoods already dominated by that family€™s race. This violates the Fair Housing Act of 1968. Tenants at a large apartment
Newspaper headlines at the time and traditional wisdom in the succeeding decades have held that women and children escaped the Titanic in greater proportion than men. Here€™s a table with the relevant data. Do you think that survival was independent of whether the person was male or female?
Find a 95% confidence interval for the difference in the proportions of Black renters in the two sections for the data in Exercise 43.In exercise A subtle form of racial discrimination in housing is €œracial steering.€ Racial steering occurs when real estate agents show prospective buyers
Find a 95% confidence interval for the difference in the proportion of women who survived and the proportion of men who survived for the data in Exercise. (Assume the passengers on the Titanic were representative of others who might have taken the trip.)In exercise Newspaper headlines at the time
Many companies have chosen to outsource segments of their business to external providers in order to cut costs and improve quality and/or efficiencies. Common business segments that are outsourced include Information Technology (IT) and Human Resources (HR). The data below show the types of
Industry sector and outsourcing, part 2. Consider only the companies that have outsourced their IT and HR business segments. Do these data suggest significant differences between companies in the financial and industrial goods sectors with regard to their outsourcing decisions?a) Select the
Use the survey results in the table below to investigate differences in employee job satisfaction among organizations in the United States with different management styles.a) Select the appropriate procedure. b) Check the assumptions. c) State the hypotheses. d) Test an appropriate hypothesis and
For the data in Exercise, In exercise If there is no seasonal effect on human births, we would expect equal numbers of children to be born in each season (winter, spring, summer, and fall). A student takes a census of her statistics class and finds that of the 120 students in the class, 25 were
Every year, Fortune Magazine lists the 100 best companies to work for, based on criteria such as pay, benefits, turnover rate, and diversity. In 2013, the top three were Google, SAS, and CHG Healthcare. Of the top 30, 11 experienced double-digit job growth (10% or more), 16, single-digit growth (1%
The Pew Internet & American Life Project routinely conducts surveys to gauge the impact of the Internet and technology on daily life. A recent survey asked respondents if they read online journals or blogs, an Internet activity of potential interest to many businesses. A subset of the data from
It has become more common for shoppers to €œcomparison shop€ using the Internet. Respondents to a Pew survey in 2013 who owned cell phones were asked whether they had, in the past 30 days, looked up the price of a product while they were in a store to see if they could get a better price
In a recent study of enterprise resource planning (ERP) system effectiveness, researchers asked companies about how they assessed the success of their ERP systems. Out of 335 manufacturing companies surveyed, they found that 201 used return on investment (ROI), 100 used reductions in inventory
The U.S. Bureau of Economic Analysis provides information on the Gross Domestic Product (GDP) in the United States by state (www.bea.gov). The Bureau recently released figures that showed the real GDP by state for 2007. Using the data in the table below examine if GDP and Region of the country are
The U.S. Bureau of Economic Analysis also provides information on the growth of the U.S. economy (www.bea.gov). The Bureau recently released figures that they claimed showed a growth spurt in the western region of the United States. Using the table and map below, determine if the percent change in
Economic growth, revisited. The U.S. Bureau of Economic Analysis provides information on the GDP in the United States by metropolitan area (www.bea.gov). The Bureau recently released figures that showed the percent change in real GDP by metropolitan area for 2004€“2005.Using the data in the
For the data in Exercise, In Exercise At a major credit card bank, the percentages of people who historically apply for the Silver, Gold, and Platinum cards are 60%, 30%, and 10%, respectively. In a recent sample of customers responding to a promotion, of 200 customers, 110 applied for Silver, 55
An analyst at a local bank wonders if the age distribution of customers coming for service at his branch in town is the same as at the branch located near the mall. He selects 100 transactions at random from each branch and researches the age information for the associated customer.Here are the
A market researcher working for the bank in Exercise wants to know if the distribution of applications by card is the same for the past three mailings. She takes a random sample of 200 from each mailing and counts the number applying for Silver, Gold, and Platinum. The data follow:a) What is the
Markets have become interested in the potential of social networking sites. But they need to understand the demographics of social networking users. Pew Research conducted a survey in late 2012 that addressed these questions.
A website that rents movies online recorded the age and the number of movies rented during the past month for some of their customers. Here are their data:Age Rentals35 .... 940 .... 850 .... 465 .... 340 .... 1030 .... 12Make a scatterplot for these data. What does it tell you about the
The study of external disk drives from Chapter 4, exercise 2 (with the outlier removed) find the following:The least squares line was found to be: Price = 15.112 + 62.417 Capacity with se = 42.037 and SE(b1) = 11.328.a) Find the predicted Price of a 2 TB hard drive.b) Find a 95% confidence interval
A survey designed to study how much households spend on eating out finds the following regression model, EatOut $> wk = 17.28 + 0.354 HH Income relating the amount respondents said they spent individually to eat out each week to their household income in $ 1000’s. a) A 95% prediction interval for
In Exercise 5, we saw a regression to predict the sales per person at a movie theater in terms of the time (in minutes) before the show. The model was: Sales = 4.3 + 0.265 Minutes. a) A 90% prediction interval for sales to a concessions customer 10 minutes before the movie starts is ($ 4.60, $
Recall the small bookstore. Number of Salespeople .... Working Sales (in $1000’s) 2 ............. 10 3 ............. 11 7 ............. 13 9 ............. 14 10 ............. 18 10 ............. 20 12 ............. 20 15 ............. 22 16
Look back at the prices for the external disk drives we saw in Exercise 10. The least squares line is Price = 15.112 + 62.417 Capacity.The assumptions and conditions for regression are met.SE(b1) = 11.328a) Disk drives keep growing in capacity. Some tech experts now talk about Petabyte (PB = 1000
Several studies have found that the frequency with which shoppers browse Internet retailers is related to the frequency with which they actually purchase products and/ or services online. Here are data showing the age of respondents and their answer to the question “How many minutes do you browse
The Earth has been getting warmer. Most climate scientists agree that one important cause of the warming is the increase in atmospheric levels of carbon dioxide (CO2), a greenhouse gas. Here is part of a regression analysis of the mean annual CO2 concentration in the atmosphere, measured in parts
How does the cost of a movie depend on its length? Data on the cost (millions of dollars) and the running time (minutes) for major release films in one recent year are summarized in these plots and computer output:a) Explain in words and numbers what the regression says. b) The intercept is
How does the price of a house depend on its size? Data from Saratoga, New York, on 1064 randomly selected houses that had been sold include data on price ($1000s) and size (1000 ft2), producing the following graphs and computer output:a) Explain in words and numbers what the regression says. b) The
Exercise 17 shows computer output examining the association between the length of a movie and its cost.a) Check the assumptions and conditions for inference. b) Find a 95% confidence interval for the slope and interpret it.
A training center, wishing to demonstrate the effectiveness of their methods, tests some of their clients after different numbers of days of training, recording their scores on a sample test. Their data are:Training DaysCorrect Responses1 .......... 44 .......... 68 .......... 710 .......... 912
Exercise 18 shows computer output examining the association between the sizes of houses and their sale prices.a) Check the assumptions and conditions for inference. b) Find a 95% confidence interval for the slope and interpret it.
In an investigation of environmental causes of disease, data were collected on the annual mortality rate (deaths per 100,000) for males in 61 large towns in England and Wales. In addition, the water hardness was recorded as the calcium concentration (parts per million, or ppm) in the drinking
The brief case for Chapter 4 listed the rate of return for 92 mutual funds over the previous 3-year and 5-year periods. It’s common for advertisements to carry the disclaimer that “past returns may not be indicative of future performance.” Do these data indicate that there was an association
The index of deflated turnover for retail trade shows the activity in volume of the retail trade sector. The United Nations Statistics Division reports Retail trade deflated sales/turnover (seasonally adjusted) with 2005 = 100. The data-file holds this index for 43 countries for the years 2007–
Using unemployment data provided by the United Nations, investigate the association between the male unemployment rate in 2007 and 2010 for a sample of 75 countries.a) Find a regression model predicting the 2010 rate from the 2007 rate.b) Examine the residuals to determine if a linear regression is
Classified ads in a newspaper offered several used Toyota Corollas for sale. Listed below are the ages of the cars and the advertised prices. Age (yr) Prices Advertised ($) 1 ........ 13990 1 ........ 13495 3 ........ 12999 4 ........ 9500 4 ........ 10495 5 ........
The following software results provide information about the size (in square feet) of 18 homes in Ithaca, New York, and the city€™s assessed value of those homes, where the response variable is Assessment.a) Explain why inference for linear regression is appropriate with these data.b) Is there
Based on the analysis of used car prices you did for Exercise 25, if appropriate, create a 95% confidence interval for the slope of the regression line and explain what your interval means in context. Age (yr) .... Prices Advertised ($) 1 ........ 13990 1 ........ 13495 3 ........ 12999 4
A business analyst is looking at a company€™s assets and sales to determine the relationship (if any) between the two measures. She has data (in $ million) from a random sample of 79 Fortune 500 companies, and obtained the linear regression below:Use the data provided to find a 95%
A consumer organization has reported test data for 50 car models. We will examine the association between the weight of the car (in thousands of pounds) and the fuel efficiency (in miles per gallon). Use the data provided on the disk to answer the following questions, where the response variable is
For the regression of Exercise 1, find the standard error of the regression slope. Show all three values that go into the calculation. In Exercise Age .... Rentals 35 .... 9 40 .... 8 50 .... 4 65 .... 3 40 .... 10 30 .... 12
Consumer Reports listed the price (in dollars) and power (in cold cranking amps) of auto batteries. We want to know if more expensive batteries are generally better in terms of starting power. Here are the regression and residual output, where the response variable is Power.a) How many batteries
How strong was the association between student scores on the Math and Verbal sections of the old SAT? Scores on this exam ranged from 200 to 800 and were widely used by college admissions offices. Here are summary statistics, regression analysis, and plots of the scores for a graduating class of
How strong is the association between labor productivity and labor costs? Data from the Bureau of Labor Statistics for labor productivity, as measured by Output per Hour, and Unit Labor Costs across 53 industries, are used to examine this relationship. a) From a scatterplot, is there evidence of a
Football owners are constantly in competition for good players. The more wins, the more likely that the team will provide good business returns for the owners. The resources that each of the 32 teams has in the National Football League (NFL) vary, but the draft system is designed to counteract the
The Gallup organization has, over six decades, periodically asked the following question: If your party nominated a generally well-qualified person for president who happened to be a woman, would you vote for that person?We wonder if the proportion of the public who have €œno
Consider again the data in Exercise 29 about the gas mileage and weights of cars. In exercise A consumer organization has reported test data for 50 car models. We will examine the association between the weight of the car (in thousands of pounds) and the fuel efficiency (in miles per gallon). Use
Consider the high school SAT scores data from Exercise 31.In exercisea) Find a 90% confidence interval for the slope of the true line describing the association between Math and Verbal scores. b) Explain in this context what your confidence interval means.
The Environmental Protection Agency is examining the relationship between the ozone level (in parts per million) and the population (in millions) of U. S. cities. Part of the regression analysis is shown.a) We suspect that the greater the population of a city, the higher its ozone level. Is the
A business analyst was interested in the relationship between a company€™s sales and its profits. She collected data (in millions of dollars) from a random sample of Fortune 500 companies and created the regression analysis and summary statistics shown. The assumptions for regression
Using a statistics program, consider again the relationship between the population and ozone level of U. S. cities that you analyzed in Exercise 37.In exercisea) Give a 90% confidence interval for the approximate in-crease in ozone level associated with each additional million city inhabitants.b)
For the regression of Exercise 2, find the standard error of the regression slope. Show all three values that go into the calculation. In Exercise Training Days Correct Responses 1 .......... 4 4 .......... 6 8 .......... 7 10 .......... 9 12 .......... 10
Using a statistics program, consider again the relationship between the sales and profits of Fortune 500 companies that you analyzed in Exercise 38.In exercisea) Find a 95% confidence interval for the slope of the regression line. Interpret your interval in context.b) Last year, the drug
In July 2013, cnet.com listed the battery life (in hours) and luminous intensity (i. e., screen brightness, in cd/m2) for a sample of tablet computers. We want to know if screen brightness is associated with battery
Are wages for various marketing managerial positions related? One way to determine this is to examine the relationship between the mean hourly wages for two managerial occupations in marketing: sales managers and advertising managers. The average hourly wage for both occupations is reported for all

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