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Business Statistics 3rd Edition Norean Sharpe, Richard Veaux, Paul Velleman - Solutions
How has trade between the United States and the European Union developed? The file EU Imports contains U.S. imports ($ M) from the European Union countries from 1997 to 2012. (Source: Download from the bottom of www.census.gov/foreign-trade/balance/.census.gov/foreign-trade/balance/c5700.htm)Plot
Tiffany was founded in 1837, when Charles Lewis Tiffany opened his first store in downtown Manhattan. Tiffany retails and distributes a selection of Tiffany & Co. brand jewelry at a range of prices. Today, more than 150 Tiffany & Co. stores sell to customers in U. S. and international
In a completely randomized design, ten subjects were assigned to each of four treatments of a factor. Below is the partially completed ANOVA table.a) What are the degrees of freedom for treatment, error, and total? b) What is SSE? c) What is MSTr? d) What is MSE?
Refer to Exercise 11.In exercisea) State the null and alternative hypotheses. b) Calculate the F-ratio. c) What is the P-value? d) State your conclusion at α = .05.
In the experiment described in Exercise 3, in fact the study also compared the use of butter or margarine in the recipes. The design was balanced, with each combination of chip type and oil type tested. a) What were the factors and factor levels? b) What were the treatments? c) If an interaction
The investment club described in Exercise 4 decided to repeat their experiment in a different way. Three members of the club took responsibility for one of each of the three investment “strategies,” making the final choices and allocations of investment dollars. For this new experiment: a) What
A consumer group wants to test the efficacy of a new laundry detergent. They take 16 pieces of white cloth and stain each with the same amount of grease. They decide to try it using both hot and cold water set tings and at both short and long washing times. Half of the 16 pieces will get the new
An outdoor products company wants to test a new website design where customers can get information about their favorite outdoor activity. They randomly send half of the customers coming to the website to the new design. They want to see whether the Web visitors spend more time at the site and
One member of the consumer group in Exercise 15 is concerned that the experiment will take too long and makes some suggestions to shorten it. Comment briefly on each idea. a) Cut the runs to 8 by testing only the new detergent. Compare the results to results on the standard detergent published by
Will listening to a Mozart piano sonata make you smarter? In a published study, Rauscher, Shaw, and Ky reported that when students were given a spatial reasoning section of a standard IQ test, those who listened to Mozart for 10 minutes improved their scores more than those who simply sat
An advertisement selling specially designed CDs of Mozart’s music specifically because they will “strengthen your mind, heal your body, and unlock your creative spirit” claims that “in Japan, a brewery actually reported that their best sake is made when Mozart is played near the yeast.”
The makers of Frumpies, "the breakfast of rug rats," want to improve their marketing, so they consult you.a) They first want to know what fraction of children, ages 10 to 13, like their celery-flavored cereal. What kind of study should they perform?b) They are thinking of introducing a new flavor,
A Danish study published in the Archives of Internal Medicine casts significant doubt on suggestions that adults who drink wine have higher levels of “good” cholesterol and fewer heart attacks. These researchers followed a group of individuals born at a Copenhagen hospital between 1959 and 1961
Can special study courses actually help raise SAT scores? One organization says that the 30 students they tutored achieved an average gain of 60 points when they retook the test.a) Explain why this does not necessarily prove that the special course caused the scores to go up.b) Propose a design for
An industrial machine requires an emergency shutoff switch that must be designed so that it can be easily operated with either hand. Design an experiment to find out whether workers will be able to deactivate the machine as quickly with their left hands as with their right hands. Be sure to explain
These boxplots show the relationship between the number of cylinders in a cars engine and its fuel economy from a study conducted by a major car manufacturer.a) What are the null and alternative hypotheses? Talk about cars and fuel efficiency, not symbols.b) Do the conditions for an
The boxplots display case prices (in dollars) of wine produced by wineries along three of the Finger Lakes in upstate New York.a) What are the null and alternative hypotheses? Talk about prices and location, not symbols.b) Do the conditions for an ANOVA seem to be met here? Why or why not?
Cell phone adoption rates are available for various countries in the United Nations Database (unstats.un.org). Countries were randomly selected from three regions (Africa, Asia, and Europe), and cell phone adoption (per 100 inhabitants) rates retrieved. The box-plots display the data.a) What are
A sample of eight states was selected randomly from each of three regions in the United States (Northeast, Southeast, and West). Mean annual salaries for marketing managers were retrieved from the U.S. Bureau of Labor Statistics (data.bls.gov/oes). The boxplots display the data.a) What are the null
A bank is studying the average time that it takes 6 of its tellers to serve a customer. Customers line up in the queue and are served by the next available teller. Here is a boxplot of the times it took to serve the last 140 customers.a) What are the null and alternative hypotheses? b) What do you
For the following experiment, identify the experimental units, the treatments, the response, and the random assignment. A commercial food lab compared recipes for chocolate chip cookies. They baked cookies with different kinds of chips (milk chocolate, dark chocolate, and semi-sweet). All other
Vendors of hearing aids test them by having patients listen to lists of words and repeat what they hear. The word lists are supposed to be equally difficult to hear accurately. But the challenge of hearing aids is perception when there is background noise. A researcher investigated four different
A report released by the Pew Internet & American Life Project entitled The Internet & Consumer Choice focused on current online issues. Respondents were asked to indicate their level of agreement (1 = strongly agree to 4 = strongly disagree) with a variety of statements including I
Airlines strive to have flights arrive on time. Transportation statistics (www.transtats.bts.gov/Timeseries.asp) report the percentage of scheduled flights arriving on time in each month. We have data for 20052010. Flights can fail to be on time for a variety of reasons, but do the
A large financial institution is interested in training its college educated workforce in Six Sigma principles and methods. One part of the training involves basic statistical concepts and tools. Management is considering three approaches: online, traditional classroom, and hybrid (a mix of both).
Online retailers want customers to trust their websites and want to alleviate any concerns potential customers may have about privacy and security. In a study investigating the factors that affect e-trust, participants were randomly assigned to carry out online transactions on fictitious
To improve the quality of molded parts, companies often test different levels of parameter settings to find the best combinations. Injection molding machines typically have many adjustable parameters. One company used three different mold temperatures (25, 35, and 45 degrees Celsius) and four
Some people believe that the stock market shows patterns according to the day of the week or the month of the year (Sell in May and walk away). We have the closing price of the Dow Jones Industrial Average for every day from January 2009 through February 2013. Here is the
After complaints about gender discrimination regarding bonus incentive pay, a large multinational firm collected data on bonuses awarded during the previous year (% of base pay). Human Resources (HR) randomly sampled male and female managers from three different levels: senior, middle, and
What affects marketing managers hourly wages? To find out, mean hourly wages were retrieved from the U.S. Bureau of Labor Statistics for two managerial occupations in marketing (Sales managers, Advertising managers) for a random sample of states from three regions (Midwest, Southeast,
For the following experiment, identify the experimental units, the treatments, the response, and the random assignment. An investment club decided to compare investment strategies. Starting with nine equal investment amounts, three invested in the “dogs of the Dow”—stocks in the Dow
A company that specializes in developing concrete for construction strives to continually improve the properties of its materials. To increase the compressive strength of one of its new formulations, they varied the amount of alkali content (low, medium, high). Since the type of sand used may also
A manufacturing company that makes dental drills was experiencing problems with a specific part on the production line. Management suspected a machining problem that resulted in the length of the part varying outside of target specification.Two factors were examined: the machine setting (at three
One way to improve a process is to eliminate nonvalue-added activities (e.g., extra movements) and wasted effort (e.g., looking for materials).A consultant was hired to improve the efficiency in a large shop floor operation. She tested three different workspace designs and two different
An experiment to determine the effect of several methods of preparing cultures for use in commercial yogurt was conducted by a food science research group. Three batches of yogurt were prepared using each of three methods: traditional, ultra filtration, and reverse osmosis. A trained expert then
Particulate matter is a serious form of air pollution often arising from industrial production. One way to reduce the pollution is to put a filter, or scrubber, at the end of the smokestack to trap the particulates. An experiment to determine which smokestack scrubber design is best was run by
Supermarkets often place similar types of cereal on the same supermarket shelf. The shelf placement for 77 cereals was recorded as well their sugar content. Does sugar content vary by shelf? Heres a boxplot and an ANOVA table.a) What kind of design or study is this? b) What are the null
We also have data on the protein content on the 77 cereals in Exercise 45. Does protein content vary by shelf? Heres a boxplot and an ANOVA table.a) What kind of design or study is this? b) What are the null and alternative hypotheses? c) What does the ANOVA table say about the null
The National Highway Transportation Safety Administration runs crash tests in which stock automobiles are crashed into a wall at 35 mph with dummies in both the passenger and the drivers seats. The THOR Alpha crash dummy is capable of recording 134 channels of data on the impact of the
An experiment to test a new gasoline additive, Gasplus, was performed on three different cars: a sports car, a minivan, and a hybrid. Each car was tested with both Gasplus and regular gas on 10 different occasions, and their gas mileage was recorded. Here are the boxplots.A two-way ANOVA with
For the cookie recipe experiment of Exercise 3, identify how Control, Randomization, and Replication were used.
For the investment experiment of Exercise 4, identify how Control, Randomization, and Replication were used.
An Internet sale site randomly sent customers to one of three versions of its welcome page. It recorded how long each visitor stayed in the site.Here is a diagram of that experiment. Fill in the parts of the experiment.
Analysts from the Internet company of Exercise 7 are now concerned that customers who come directly to their site (by typing their URL into a browser) might respond differently than those referred to the site from other sites (such as search engines). They decide to block according to how the
For the following experiment, indicate whether it was single-blind, double-blind, or not blinded at all. Explain your reasoning. Makers of a new frozen entrée arranged for it to be served to randomly selected customers at a restaurant in place of the equivalent entrée ordinarily prepared in the
Design, carry out, and analyze your own multifactor experiment. The experiment doesn’t have to involve human subjects. In fact, an experiment designed to find the best settings for microwave popcorn, the best paper airplane design, or the optimal weight and placement of coins on a toy car to make
A producer of beverage containers wants to ensure that a liquid at 90°C will lose no more than 4°C after 30 minutes. Containers are selected at random and subjected to testing. Historical data shows the standard deviation to be 0.2°C. The quality control team has set 3.5 and 4.5°C
Major League Baseball (MLB) requires that a ball used in a major league game weigh between 5 and 5.25 oz. (www.MLB.com). Rawlings® is the official supplier of baseballs for MLB. In their production process, do they treat 5 and 5.25 oz. as control or specification limits? Explain.
Pole vault technology has evolved considerably since the times of the ancient Greeks and even more recently as new materials have found their way into pole manufacturing. There are currently no regulations on the composition of poles although for safety reasons, there are restrictions on the amount
Whether pasteurized or raw, both the European Economic Council (EEC) and the U.S. Food and Drug Administration (USFDA) require that milk sold to consumers contain no more than 10 coliform bacteria per mL of milk (www.cdfa.ca.gov). Should dairies take this as a control or specification limit when
The two Gemini observatories (www.gemini.edu) were built and are operated by a partnership of seven countries including the United States, United Kingdom, Canada, Chile, Australia, Brazil, and Argentina. Astronomers in each of these countries are able to apply for time on the telescopes for
Plastic covers for DVDs must be manufactured with enough precision so that a DVD can properly fit into the cover. Specifically, the diameter of the central plastic piece over which the DVD is placed must not vary more than a certain amount. A manufacturer has been producing DVD covers for several
An observer at the roulette wheel in Monte Carlo notices that there seems to be no pattern to the numbers that come up during an entire evening. Is this an example of special- or common-cause variation? Explain.
In 1980, millions of viewers watched as the number 666 was drawn for the Pick 3 Pennsylvania lottery. Although as likely as any other number, lottery authorities and local bookmakers became suspicious when they noticed that a large number of tickets were purchased for the eight numbers 444, 446,
Most control charts use three sigmas (standard deviations) to set the upper and lower control limits. For a run chart, what is the probability that an observation would fall beyond 3σ from the mean based on random chance variation alone? What assumptions do you have to make to answer this?
Instead of one observation outside of 3σ from the mean as in Exercise 17, suppose a quality control engineer decides to use only the run chart rule that the system is out of control if 8 observations in a row lie on the same side of the mean. What is the probability that this would happen based on
A company that makes basketballs has the motto: €œOur basketballs are ready to play.€ Therefore, it is important to the company that the basketballs are inflated with the proper amount of air when shipped. Most basketballs are inflated to 7 to 9 pounds per square inch. From a set of
A computer screen manufacturing process must produce screens of uniform size. In particular, for a new tablet, the screen should be 10.1 inches long. The engineers have set 10.16 and 10.04 as the upper and lower specifications on screen length. If the actual process standard deviation is 0.01
A company that traditionally made rulers and yardsticks is setting up a manufacturing process to make metersticks. Obviously, accuracy is important for their new product. The company runs a 24-hour production process. Using a calibration set of data they found:They took a sample of 3 metersticks
A graphite manufacturer makes long rolls of flexible graphite to be used to seal components in combustion engines. The specifications state that the mean strength should be 21.2 ounces per square yard with a standard deviation of 0.29. Further specifications state that no roll should have strength
The same graphite manufacturer from Exercise 21 uses an alternative process to make rolls. For this process the data are separated into 10 lanes—a sample consists of one roll from each lane. The results of 25 samples are shown in the table at the top of the page. a) Using the same mean and
The following data are from a production process that makes 250 units each hour. The data were collected over a normal 12-hour shift one day. The data are shown in the table at the right. Using the first 10 hours as the calibration period,a)Calculate the center line of the p
The following data are from a production process that makes approximately 250 units each hour. The data were collected over a normal 12-hour shift one day. Historical data shows the proportion of defects to be 6.21%. Either use technology to accommodate the different sample sizes, or use 250 as an
MediaChip manufactures computer chips specifically for MP3 players. The process uses sophisticated lasers to imprint several hundred chips on a single silicon wafer. While the process is completely automated and set in a clean room environment, a batch of chips can contain
In LCD screens, every attempt is made to make sure that all pixels illuminate when they receive a signal, but it is impossible to ensure that every pixel in a large screen will actually work. A screen is determined to be defective if more than 2 pixels fail to light. Every week 500 screens are
The following data were collected from the number of patient complaints from a small medical service facility over a two-week period. The past year the average number of complaints was 4.57. The management team would like to use that as a baseline for monitoring.Based on last year, using a c
The medical facility in Exercise 27 also keeps track of the number of errors found when transcribing information from patient forms. Last year the average number of errors was 1.26 per day which the facility found acceptable. Here are the past two weeks€™ data:Based on last year, using a c
Baseballs used in the major leagues in the United States must adhere to strict standards. One such standard is that the circumference must be between 9 and 9.25 inches. One could look at this standard as a target circumference of 9.125 inches with a tolerance of +/ -0.125 inches. These data (shown
For the data in Exercise 1, instead of the specification limits, a) Use the historical standard deviation to set up 1, 2, and 3s limits and draw the control chart. b) Are any points outside the 3s limits on either side? c) Are two of three consecutive points outside of 2s on either
Baseballs used in the major leagues in the United States must adhere to strict standards. One such standard is that the weight must be between 5 and 5.25 ounces. One could look at this standard as a target weight of 5.125 ounces with a tolerance of +/ 0.125 ounces. The following data
For the data in Exercise 1, suppose the historical standard deviation had been 0.1°C instead of 0.2°C. How would that change your answers to the questions in Exercise 3? In exercise For the data in Exercise 1, instead of the specification limits, a) Use the historical standard deviation to set
A process to make dental floss produces spools with a desired mean length of 91.4 m (100 yds). The historical standard deviation is 1 cm (0.01 m). If samples of size 5 are taken and measured,a) What is the standard deviation of the sample mean?b) How long (or short) would a sample mean have to
As in Exercise 5, a process to make dental floss produces spools with a desired mean length of 91.4 m (100 yds). The historical standard deviation is 1 cm (0.01 m). If samples of size 5 are taken and measured,a) What is the center line for the R chart?b) What is the standard deviation of the
One of the ways in which the dental floss discussed in Exercise 5 can fail is if it snaps when pulled with a certain tension. Historically, only 2% of the tested floss snaps. Suppose boxes of size 50 are selected at random to be tested.a) What is the standard deviation for the sample proportion
Rather than use the proportion of packages that contain defective floss, another quality control inspector simply counts the number of packages. If historically, only 1 pack-age out of 50 is defective,a) What is the standard deviation of the number of defective packages?b) What are the upper
Cyanoacrylates, the generic name for several compounds with strong adhesive properties, were invented during WWII during experiments to make a special extra-clear plastic suitable for gun sights. They didn’t work for gun sights, however, because they stuck to everything. They were first
Consumers always seem to want thinner and lighter electronic products, and computer laptops are no exception. One of the challenges of producing extremely thin and light laptops is the manufacturing of the touch pads. In particular, touch pads are difficult to align. A common complaint is that one
Which of the following variables are ranks? For those that are not ranks, give the units. a) Student ratings of a course on a 5-point Likert scale. b) Students' letter grades in that course. c) Students' point scores on the final exam.
For which one of the following situations would Kend all's tau be appropriate? a) The Mohs scale rates the hardness of minerals. If one mineral can scratch another, it is judged to be harder. (Diamond, the hardest mineral, is a 10.) Is hardness related to the weight of a 1 × 1 × 1 cm cube of the
For which one of the following situations would Spearman's rho be appropriate? a) Comparing the ratings of a new product on a 5-point Likert scale by a panel of consumers to their ratings of a competitor's product on the same scale. b) Comparing the sweetness of a diet drink (rated from 1 to 10) as
For which one of the following situations would Spearman's rho be appropriate? a) The Mohs scale rates the hardness of minerals. If one mineral can scratch another, it is judged to be harder. (Diamond, the hardest mineral, is a 10.) Is hardness related to the weight of a 1 × 1 × 1 cm cube of the
A company is producing and marketing new reading activities for elementary school children that it believes will improve reading comprehension scores. A researcher randomly assigns third graders to an eight-week program in which some will use these activities and others will experience traditional
The owner of a small organic food store was concerned about her sales of a specialty yogurt manufactured in Greece. As a result of increasing fuel costs, she recently had to increase its price. To help boost sales, she decided to place the product on a different shelf (near eye level for most
A food company is concerned about recent criticism of the sugar content of their children’s cereals. The data show the sugar content (as a percentage of weight) of several national brands of children’s and adults’ cereals. Are children’s cereals really different from adults’ cereals in
Home foreclosures were up 47% in March 2008 compared to the previous year (realestate.msn.com; MSN Real Estate, April 2008). The data show home foreclosure rates (as % change from the previous year) for a sample of cities in two regions of the United States, the Northeast and the
The table gives the names, dates first awarded, and heights (inches) of major trophies and awards in sports and entertainment. The America's Cup, awarded for sailing, claims to be the oldest such award. The first five were created in the 19th century (which ended in 1900, not in 1899). The others
American League baseball teams play their games with the designated hitter rule, meaning that pitchers do not bat. The league believes that replacing the pitcher, traditionally a weak hitter, with another player in the batting order produces more runs and generates more interest among fans. Below
Cornell Professor of Nutrition David Lev it sky recruited students from two large sections of an introductory health course to test the validity of the €œFreshman 15€ theory that students gain 15 pounds their first year. Although they were volunteers, they appeared to match the rest of the
Which of the following variables are ranks? For those that are not ranks, give the units. a) U.S. change by size: dime, penny, nickel, quarter, half dollar, dollar. b) U.S. change by value: penny, nickel, dime, quarter, half dollar, dollar. c) The change in your pocket by year minted.
A company institutes an exercise break for its workers to see whether this will have any effect on job satisfaction, as measured by a questionnaire that assesses workers€™ satisfaction. Scores for 10 randomly selected workers before and after the implementation of the exercise program are shown
When implementing a packaged Enterprise Resource Planning (ERP) system, many companies report that the module they first install is Financial Accounting. Among the measures used to gauge the effectiveness of their ERP system implementation is acceleration of the financial close process. Below is a
A local insurance agent was concerned that he might lose customers to online discount insurance sites. To investigate, he randomly selected profiles (type of car, coverage, driving record, etc.) for 10 of his clients and checked online price quotes for their policies. The comparisons are shown in
In 1993 the British Medical Journal published an article titled, €œIs Friday the 13th Bad for Your Health?€ Researchers in Britain examined how Friday the 13th affects human behavior. One question was whether people tend to stay at home more on Friday the 13th€”an issue of great concern,
The researchers in Exercise 23 also examined the of people admitted to emergency rooms for vehicular accidents on 12 Friday evenings (6 each on the 6th and 13th). Is Friday the 13th "unlucky"? Hospital emergency rooms need to plan for any increased "business" if they can. Use an appropriate
Cuckoos lay their eggs in the nests of other (host) birds. The eggs are then adopted and hatched by the host birds. But the potential host birds lay eggs of different sizes. Does the cuckoo change the size of her eggs for different foster species? The numbers in the table are lengths (in mm) of
A pharmaceutical company tested three formulations of a pain relief medicine for migraine headache sufferers. For the experiment, 27 volunteers were selected and 9 were randomly assigned to one of three drug formulations. The subjects were instructed to take the drug during their next migraine
In a Chance magazine article (Summer 2005), Danielle Vasilescu and Howard Wainer used data from the United Nations Center for Human Settlements to investigate aspects of living conditions for several countries. Among the variables they looked at were the countrys per capita gross
Baseball is big business, and the top salaries have become quite large. The highest salaries (in millions of dollars per season) for some notable players since 1980 are given in the following table:a) Kendalls tau for these data is 0.887. What does that about these data? b) Based on
Here are data that relate Sales at The Home Depot and Housing Starts, for quarters during its period of rapid growth between 1995 and 2004.a) Would Kendalls t or Pearson correlation be the more appropriate summary? Explain. b) What could we learn from Kendalls tau that we
For which one of the following situations would a Wilcoxon rank-sum (or Mann-Whitney) test be appropriate? a) Comparing the ratings of a new product on a 5-point Likert scale by a panel of consumers to their ratings of a competitor's product on the same scale. b) Comparing the sweetness of a diet
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