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Business Statistics A First Course 7th Edition David M. Levine, Kathryn A. Szabat, David F. Stephan - Solutions
A market researcher for a consumer electronics company wants to study the media viewing behavior of residents of a particular area. A random sample of 40 respondents is selected, and each respondent is instructed to keep a detailed record of time spent engaged viewing content across all screens
The human resource (HR) director of a large corporation wishes to study absenteeism among its mid- level managers at its central office during the year. A random sample of 25 mid-level managers reveals the following:• Absenteeism: X-bar = 6.2 days, S = 7.3 days.• 13 mid- level managers cite
A national association devoted to HR and workplace pro-grams, practices, and training wants to study HR department practices and employee turnover of its member organizations. HR professionals and organization executives focus on turnover not only because it has significant cost implications but
Suppose that you are going to collect a set of data, either from an entire population or from a random sample taken from that population.
The financial impact of IT systems downtime is a concern of plant operations management today. A survey of manufacturers examined the satisfaction level with the reliability and availability of their manufacturing IT applications. The variables of focus are whether the manufacturer experienced
The branch manager of an outlet (Store 1) of a nationwide chain of pet supply stores wants to study characteristics of her customers. In particular, she decides to focus on two variables: the amount of money spent by customers and whether the customers own only one dog, only one cat, or more than
Scarlett and Heather, the owners of an upscale restaurant in Dayton, Ohio, want to study the dining characteristics of their customers. They decide to focus on two variables: the amount of money spent by customers and whether customers order dessert. The results from a sample of 60 customers are as
The manufacturer of Ice Melt claims that its product will melt snow and ice at temperatures as low as 0° Fahrenheit. A representative for a large chain of hardware stores is interested in testing this claim. The chain purchases a large shipment of 5- pound bags for distribution. The representative
Claims fraud (illegitimate claims) and buildup (exaggerated loss amounts) continue to be major issues of concern among auto-mobile insurance companies. Fraud is defined as specific material misrepresentation of the facts of a loss; buildup is defined as the inflation of an otherwise legitimate
A quality characteristic of interest for a tea- bag- filling process is the weight of the tea in the individual bags. In this example, the label weight on the package indicates that the mean amount is 5.5 grams of tea in a bag. If the bags are under filled, two problems arise. First, customers may
A manufacturing company produces steel housings for electrical equipment. The main component part of the housing is a steel trough that is made from a 14 gauge steel coil. It is produced using a 250 ton progressive punch press with a wipe-down operation that puts two 90 degree forms in the flat
The manufacturer of Boston and Vermont asphalt shingles knows that product weight is a major factor in a customer’s perception of quality. The last stage of the assembly line packages the shingles before they are placed on wooden pallets. Once a pallet is full (a pallet for most brands holds 16
The manufacturer of Boston and Vermont asphalt shingles provides its customers with a 20 year warranty on most of its products. To determine whether a shingle will last the entire warranty period, accelerated- life testing is conducted at the manufacturing plant. Accelerated life testing exposes
A bottled water distributor wants to estimate the amount of water contained in 1 gallon bottles purchased from a nationally known water bottling company. The water bottling company’s specifications state that the standard deviation of the amount of water is equal to 0.02 gallon. A random sample
If you use a 0.05 level of significance in a two- tail hypothesis test, what decision will you make if ZSTAT = - 0.76?
Suppose the defendant in Problem 9.9 is presumed guilty until proven innocent. How do the null and alternative hypotheses differ from those in Problem 9.9? What are the meanings of the risks of committing either a Type I or Type II error here?
Many consumer groups feel that the U. S. Food and Drug Administration (FDA) drug approval process is too easy and, as a result, too many drugs are approved that are later found to be unsafe. On the other hand, a number of industry lobbyists have pushed for a more lenient approval process so that
As a result of complaints from both students and faculty about lateness, the registrar at a large university is ready to under-take a study to determine whether the scheduled break between classes should be changed. Until now, the registrar has believed that there should be 20 minutes between
Do business seniors at your school prepare for class more than, less than, or about the same as business seniors at other schools? The National Survey of Student Engagement (NSSE) found that business seniors spent a mean of 14 hours per week preparing for class. (Source: A Fresh Look at Student
The quality control manager at a compact fluorescent light bulb (CFL) factory needs to determine whether the mean life of a large shipment of CFLs is equal to 7,500 hours. The population standard deviation is 1,000 hours. A random sample of 64 CFLs indicates a sample mean life of 7,250 hours.a. At
Suppose that in Problem 9.14, the standard deviation is 1,200 hours.a. Repeat (a) through (d) of Problem 9.14, assuming a standard deviation of 1,200 hours.Data From Problem 9.14:The quality-control manager at a compact flu- Test orescent light bulb (CFL) factory needs to determine whether the mean
A bottled water distributor wants to determine whether the mean amount of water contained in 1 gallon bottles purchased from a nationally known water bottling company is actually 1 gallon. You know from the water bottling company specifications that the standard deviation of the amount of water per
Suppose that in Problem 9.16, the standard deviation is 0.012 gallon.a. Repeat (a) through (d) of Problem 9.16, assuming a standard deviation of 0.012 gallon. Data From Problem 9.16:A bottled water distributor wants to determine whether the mean amount of water contained in 1-gallon bottles
If, in a sample of n = 16 selected from a normal population, X-bar = 56 and S = 12, what is the value of tSTAT if you are testing the null hypothesis H0 : μ = 50?
If you use a 0.05 level of significance in a two- tail hypothesis test, what decision will you make if ZSTAT = + 2.21?
In Problems 9.18 and 9.19, what are the critical values of t if the level of significance, a, is 0.05 and the alternative hypothesis, H1, is μ ≠ 50?
If, in a sample of n = 160 selected from a left- skewed population, X-bar = 65, and S = 21, would you use the t test to test the null hypothesis H0 : μ = 60? Discuss.
You are the manager of a restaurant for a fast-food franchise. Last month, the mean waiting time at the drive- through window for branches in your geographic region, as measured from the time a customer places an order until the time the customer receives the order, was 3.7 minutes. You select a
A manufacturer of chocolate candies uses machines to package candies as they move along a filling line. Although the packages are labeled as 8 ounces, the company wants the pack-ages to contain a mean of 8.17 ounces so that virtually none of the packages contain less than 8 ounces. A sample of 50
A marketing researcher wants to estimate the mean savings ($) realized by shoppers who showroom. Showrooming is the practice of inspecting products in retail stores and then purchasing the products online at a lower price. A random sample of 100 shoppers who recently purchased a consumer
The U. S. Department of Transportation requires tire manufacturers to provide performance information on tire sidewalls to help prospective buyers make their purchasing decisions. One very important piece of information is the tread wear index, which indicates the tire’s resistance to tread wear.
The file Fast-Food contains the amount that a sample of fifteen customers spent for lunch ($) at a fast-food restaurant:a. At the 0.05 level of significance, is there evidence that the mean amount spent for lunch is different from $ 6.50?b. Determine the p-value in (a) and interpret its meaning.c.
An insurance company has the business objective of reducing the amount of time it takes to approve applications for life insurance. The approval process consists of underwriting, which includes a review of the application, a medical information bureau check, possible requests for additional medical
The following data (in Drink) represent the amount of soft drink filled in a sample of 50 consecutive 2- liter bottles. The results, listed horizontally in the order of being filled, were:a. At the 0.05 level of significance, is there evidence that the mean amount of soft drink filled is different
One of the major measures of the quality of service pro-vided by any organization is the speed with which it responds to customer complaints. A large family- held department store selling furniture and flooring, including carpet, had undergone a major expansion in the past several years. In
A manufacturing company produces steel housings for electrical equipment. The main component part of the housing is a steel trough that is made out of a 14- gauge steel coil. It is produced using a 250- ton progressive punch press with a wipe- down operation that puts two 90- degree forms in the
One operation of a steel mill is to cut pieces of steel into parts that are used in the frame for front seats in an automobile. The steel is cut with a diamond saw and requires the resulting parts must be cut to be within ± 0.005 inch of the length specified by the automobile company. The file
In Problem 3.63 on page 134, you were introduced to a tea- bag- filling operation. An important quality characteristic of interest for this process is the weight of the tea in the individual bags. The file Teabags contains an ordered array of the weight, in grams, of a sample of 50 tea bags
Experian Marketing Services reported that the typical American spends a mean of 144 minutes (2.4 hours) per day accessing the Internet via a mobile device. (Source: The 2014 Digital Marketer, available at ex.pn/1kXJjfX.) In order to test the validity of this statement, you select a sample of 30
The Los Angeles County Metropolitan Transportation Authority has set a bus mechanical reliability goal of 3,900 bus miles. Bus mechanical reliability is measured specifically as the number of bus miles between mechanical road calls. Suppose a sample of 100 buses resulted in a sample mean of 3,975
CarMD reports that the cost of repairing a hybrid vehicle is falling even while typical repairs on conventional vehicles are getting more expensive. The most common hybrid repair, replacing the hybrid inverter assembly, had a mean repair cost of $ 2,826 in 2013. (Data extracted from 2014 CarMD
A quality improvement project was conducted with the objective of improving the wait time in a county health department (CHD) Adult Primary Care Unit (APCU). The evaluation plan included waiting room time as one key waiting time process measure. Waiting room time was defined as the time elapsed
You are the manager of a restaurant that delivers pizza to college dormitory rooms. You have just changed your delivery process in an effort to reduce the mean time between the order and completion of delivery from the current 25 minutes. A sample of 36 orders using the new delivery process yields
A survey of nonprofit organizations showed that online fundraising has increased in the past year. Based on a random sample of 55 nonprofit organizations, the mean one- time gift do-nation in the past year was $ 75, with a standard deviation of $ 9.a. If you test the null hypothesis at the 0.01
The population mean waiting time to check out of a supermarket has been 4 minutes. Recently, in an effort to reduce the waiting time, the supermarket has experimented with a system in which infrared cameras use body heat and in store soft ware to determine how many lanes should be opened. A sample
In Problem, if the null hypothesis is that 20% of the items in the population are defective, what is the value of ZSTAT?
In Problems, suppose you are testing the null hypothesis H0: π = 0.20 against the two- tail alternative hypothesis H1: π ≠ 0.20 and you choose the level of significance a = 0.05. What is your statistical decision?
According to a recent National Association of Colleges and Employers (NACE) report, 48% of college student internships are unpaid. (Source: “Just 38 Percent of Unpaid Internships Were Subject to FLSA Guidelines,” bit.ly/Rx76M8.) A recent survey of 60 college interns at a local university found
The worldwide market share for the Mozilla Firefox web browser was 17% in a recent month. (Data extracted from netmarketshare.com.) Suppose that you decide to select a sample of 100 students at your university and you find that 22 use the Mozilla Firefox web browser. a. Use the five-step
One of the issues facing organizations is increasing diversity throughout an organization. One of the ways to evaluate an organization’s success at increasing diversity is to compare the percentage of employees in the organization in a particular position with a specific background to the
A cellphone provider has the business objective of wanting to determine the proportion of subscribers who would upgrade to a new cellphone with improved features if it were made available at a substantially reduced cost. Data are collected from a random sample of 500 subscribers. The results
Actuation Consulting and Enterprise Agility recently con-ducted a global survey of product teams with the goal of better understanding the dynamics of product team performance and un-covering the practices that make these teams successful. One of the survey findings was that 37% of organizations
What is the difference between a null hypothesis, H0, and an alternative hypothesis, H1?
What is the difference between a one-tail test and a two-tail test?
What is the six-step critical value approach to hypothesis testing?
What is the five-step p-value approach to hypothesis testing?
In hypothesis testing, the common level of significance is a = 0.05. Some might argue for a level of significance greater than 0.05. Suppose that web designers tested the proportion of potential web page visitors with a preference for a new web design over the existing web design. The null
Financial institutions utilize prediction models to predict bankruptcy. One such model is the Altman Z-score model, which uses multiple corporate income and balance sheet values to mea-sure the financial health of a company. If the model predicts a low Z- score value, the firm is in financial
Sales force Exact Target Marketing Cloud conducted a study of U. S. consumers that included 205 tablet owners. The study found that 134 tablet owners use their tablet while watching TV at least once per day. (Source: “New Mobile Tracking & Survey Data: 2014 Mobile Behavior Report,”
The owner of a specialty coffee shop wants to study coffee purchasing habits of customers at her shop. She selects a random sample of 60 customers during a certain week, with the following results:• The amount spent was X-bar = + 7.25, S = + 1.75.• Thirty- one customers say they “definitely
An auditor for a government agency was assigned the task of evaluating reimbursement for office visits to physicians paid by Medicare. The audit was conducted on a sample of 75 reimbursements, with the following results:• In 12 of the office visits, there was an incorrect amount of
A bank branch located in a commercial district of a city has the business objective of improving the process for serving customers during the noon- to- 1: 00 p. m. lunch period. The waiting time (defined as the time the customer enters the line until he or she reaches the teller window)
A manufacturing company produces electrical insulators. If the insulators break when in use, a short circuit is likely to occur. To test the strength of the insulators, destructive testing is carried out to determine how much force is required to break the insulators. Force is measured by observing
An important quality characteristic used by the manufacturer of Boston and Vermont asphalt shingles is the amount of moisture the shingles contain when they are packaged. Customers may feel that they have purchased a product lacking in quality if they find moisture and wet shingles inside the
Studies conducted by the manufacturer of Boston and Vermont asphalt shingles have shown product weight to be a major factor in the customer’s perception of quality. Moreover, the weight represents the amount of raw materials being used and is therefore very important to the company from a cost
The manufacturer of Boston and Vermont asphalt shingles provides its customers with a 20- year warranty on most of its products. To determine whether a shingle will last through the warranty period, accelerated- life testing is conducted at the manufacturing plant. Accelerated life testing exposes
Accounting Today identified the top accounting firms in 10 geographic regions across the United States. All 10 regions reported growth in 2013. The Southeast and Gulf Coast regions reported growth of 4.7% and 13.86%, respectively. A characteristic description of the accounting firms in the
An important feature of tablets is battery life, the number of hours before the battery needs to be recharged. The file Tablets contains the battery life of 12 WiFi only and 7 3G/4G/ WiFi 9 through 12 inch tablets.a. Assuming that the population variances from both types of tablets are equal,
A bank with a branch located in a commercial district of a city has the business objective of developing an improved process for serving customers during the noon to 1 p. m. lunch period. Management decides to first study the waiting time in the current process. The waiting time is defined as the
Repeat Problem 10.12 (a), assuming that the population variances in the two branches are not equal. Compare these results with those of Problem 10.12 (a). Problem 10.12 (a)t Test for Differences in Two MeansDataHypothesized Difference0Level of Significance0.05Population 1 SampleSample Size15Sample
As a member of the international strategic management team in your company, you are assigned the task of exploring potential foreign market entry. As part of your initial investigation, you want to know if there is a difference between developed markets and emerging markets with respect to the time
Repeat Problem 10.14 (a), assuming that the population variances from developed and emerging countries are not equal. Compare these results with those of Problem 10.14 (a).
Experian Marketing Services reported that the typical American spends 2.4 hours (144 minutes) per day accessing the Internet via a mobile device. You wonder if males and females spend differing amounts of time per day accessing the Internet through a mobile device. You select a sample of 60 friends
Brand valuations are critical to CEOs, financial and marketing executives, security analysts, institutional investors, and others who depend on well researched, reliable information needed for assessments, and comparisons in decision making. Millward Brown Optimor has developed the BrandZ Top 100
Assume that you have a sample of n1 = 8, with the sample mean X1 = 42, and a sample standard deviation σ1 = 4, and you have an independent sample of n2 = 15 from another population with a sample mean of X-bar2 = 34 and a sample standard deviation σ2 = 5. a. What is the value of the pooled-
Nine experts rated two brands of Colombian coffee in a taste testing experiment. A rating on a 7 point scale (1 = extremely unpleasing, 7 = extremely pleasing) is given for each of four characteristics: taste, aroma, richness, and acidity. The following data stored in Coffee contain the ratings
How do the ratings of TV and Internet services compare? The file Telecom contains the rating of 14 different providers. (Data extracted from “Ratings: TV, Phone, and Internet Services,” Consumer Reports, May 2014, pp. 28–29.) a. At the 0.05 level of significance, is there evidence of a
Super Target versus Walmart: Who has the lowest prices? Given Walmart’s slogan “Save Money—Live Better,” you suspect that Walmart does. The prices of 33 foods were compared and the results are stored in Target Walmart. a. At the 0.05 level of significance, is there evidence that the mean
What motivates employees? The Great Place to Work Institute evaluated nonfinancial factors both globally and in the United States. The results, which indicate the importance rating of each factor, are stored in Motivation.a. At the 0.05 level of significance, is there evidence of a difference in
Multiple myeloma, or blood plasma cancer, is characterized by increased blood vessel formulation (angiogenesis) in the bone marrow that is a predictive factor in survival. One treatment approach used for multiple myeloma is stem cell transplantation with the patient’s own stem cells. The data
To assess the effectiveness of a cola video ad, a random sample of 38 individuals from a target audience was selected to participate in a copy test. Participants viewed two ads, one of which was the ad being tested. Participants then answered a series of questions about how much they liked the ads.
The file Concrete1 contains the compressive strength, in thousands of pounds per square inch (psi), of 40 samples of concrete taken two and seven days after pouring. (Data extracted from O. Carrillo Gamboa and R. F. Gunst, “Measurement Error Model Collinearities,” Technimetrics, 34 (1992):
Let n1 = 100, X1 = 50, n2 = 100, and X2 = 30. a. At the 0.05 level of significance, is there evidence of a significant difference between the two population proportions? b. Construct a 95% confidence interval estimate for the difference between the two population proportions.
Let n1 = 100, X1 = 45, n2 = 50, and X2 = 25. a. At the 0.01 level of significance, is there evidence of a significant difference between the two population proportions? b. Construct a 99% confidence interval estimate for the difference between the two population proportions.
An online survey asked 1,000 adults “ What do you buy from your mobile device?” The results indicated that 61% of the females and 39% of the males answered clothes. (Source: Ebates.com 2014 Mobile Shopping Survey: Nearly Half of Americans Shop from a Mobile Device, available from
Do social recommendations increase ad effectiveness? A study of online video viewers compared viewers who arrived at an advertising video for a particular brand by following a social media recommendation link to viewers who arrived at the same video by web browsing. Data were collected on whether
A/B testing is a testing method that businesses use to test different designs and formats of a web page to determine whether a new web page is more effective than a current web page. Web designers tested a new call to action button on its web page. Every visitor to the web page was randomly shown
The consumer research firm Scarborough analyzed the 10% of American adults that are either “ Superbanked” or “ Unbanked.” Superbanked consumers are defined as U. S. adults who live in a household that has multiple asset accounts at financial institutions, as well as some additional
What social media tools do marketers commonly use? A survey by Social Media Examiner (data extracted from “2014 Social Media Marketing Industry Report,” April 2014) of B2B marketers (marketers that focus primarily on attracting businesses) and B2C marketers (marketers that primarily target
Does co browsing have positive effects on the customer experience? Co browsing refers to the ability to have a contact center agent and customer jointly navigate an online document or mobile application on a real time basis through the web. A study of businesses indicates that 81 of 129 co browsing
One of the most impressive, innovative advances in online fundraising over the past decade is the rise of crowd funding websites. While features differ from site to site, crowd funding sites are websites that allow you to set up an online fundraising campaign based around a fundraising page, and
Determine the upper tail critical values of F in each of the following two tail tests. a. α = 0.10, n1 = 16, n2 = 21 b. α = 0.05, n1 = 16, n2 = 21 c. α = 0.01, n1 = 16, n2 = 21
Determine the upper tail critical value of F in each of the following one tail tests. a. α = 0.05, n1 = 16, n2 = 21 b. α = 0.01, n1 = 16, n2 = 21
The following information is available for two samples selected from independent normally distributed populations: Population A: n1 = 25 S21 = 16 Population B: n2 = 25 S 22 = 25 a. Which sample variance do you place in the numerator of FSTAT? b. What is the value of FSTAT?
The following information is available for two samples selected from independent normally distributed populations:Population A: n1 = 25 S21 = 161.9Population B: n2 = 25 S22 = 133.7What is the value of FSTAT if you are testing the null hypothesis H0: σ21 = σ22?
Referring to Problem 10.2, construct a 95% confidence interval estimate of the population mean difference between μ1 and μ2.
In Problem 10.43, assume that two samples are selected from independent normally distributed populations. a. At the 0.05 level of significance, is there evidence of a difference between σ21 and σ22? b. Suppose that you want to perform a one tail test. At the 0.05 level of significance, what is
A problem with a telephone line that prevents a customer from receiving or making calls is upsetting to both the customer and the telecommunications company. The file Phone contains samples of 20 problems reported to two different offices of a telecommunications company and the time to clear these
Accounting Today identified the top accounting firms in 10 geographic regions across the United States. All 10 regions reported growth in 2013. the Southeast and Gulf Coast regions reported growth of 4.7% and 13.86%, respectively. A characteristic description of the accounting firms in the
A bank with a branch located in a commercial district of a city has the business objective of improving the process for serving customers during the noon to 1 p.m. lunch period. To do so, the waiting time (defined as the number of minutes that elapses from when the customer enters the line until he
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