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Business Statistics In Practice 6th Edition Bruce Bowerman, Richard O'Connell - Solutions
In Exercise 2.85 (page 77), we briefly described a series of international quality standards called ISO 9000. In the results of a Quality Systems Update/Deloittc & Touche survey of ISO 9000 registered companies published by CEEM Information Systems, 515 of 620 companies surveyed reported that they
What is the average selling price of a home? The Data and Story Library (DASL) contains data, including the sale price, for a random sample of 117 homes sold in Albuquerque, New Mexico. Go to the DASL website (lib.stat.cmu.edu/DASL/) and retrieve the home price data set
Recall that a bank manager has developed a new system to reduce the time customers spend waiting to be served by tellers during peak business hours. The mean waiting time during peak business hours under the current system is roughly 9 to 10 minutes. The bank manager hopes that the new system will
The mean of the sample of 65 customer satisfaction ratings in Table L.7 is = 42.95. If we let μ denote the mean of all possible customer satisfaction ratings for the XYZ Box video game system, and assume that σ equals 2.64: a. Calculate 95 percent and 99 percent confidence intervals for . b.
Define each of the following: Type I error, a. Type II error, B.
Suppose that we wish to test H0: μ = 80 versus Ha: μ > 80, where σ is known to equal 20. Also, suppose that a sample of n = 100 measurements randomly selected from the population has a mean of = 85.a. Calculate the value of the test statistic z.b. By comparing - with a critical value, test
Suppose that we wish to test H0: μ = 20 versus Ha: μ < 20, where a is known to equal 7. Also, suppose that a sample of n = 49 measurements randomly selected from the population has a mean of = 18.a. Calculate the value of the test statistic z.b. By comparing z with a critical value, test H0
Suppose that we wish to test H0: μ = 40 versus Ha: μ ≠ 40, where a is known to equal 18. Also, suppose that a sample of n = 81 measurements randomly selected from the population has a mean of = 35.a. Calculate the value of the test statistic z.b. By comparing z with a critical value, test H0
Recall that "very satisfied" customers give the XYZ-Box video game system a rating that is at least 42. Suppose that the manufacturer of the XYZ-Box wishes to use the random sample of 65 satisfaction ratings to provide evidence supporting the claim that the mean composite satisfaction rating for
Recall that a bank manager has developed a new system to reduce the time customers spend waiting for teller service during peak hours. The manager hopes the new system will reduce waiting times from the current 9 to 10 minutes to less than 6 minutes.Suppose the manager wishes to use the random
Consolidated Power, a large electric power utility, has just built a modern nuclear power plant. This plant discharges waste water that is allowed to flow into the Atlantic Ocean. The Environmental Protection Agency (EPA) has ordered that the waste water may not be excessively warm so that thermal
An automobile parts supplier owns a machine that produces a cylindrical engine part. This part is supposed to have an outside diameter of three inches. Parts with diameters that are too small or too large do not meet customer requirements and must be rejected. Lately, the company has experienced
The Crown Bottling Company has just installed a new bottling process that will fill 16-ounce bottles of the popular Crown Classic Cola soft drink. Both overfilling and underfilling bottles are undesirable: Underfilling leads to customer complaints and overfilling costs the company considerable
National Motors has equipped the ZX-900 with a new disk brake system. We define p to be the mean stopping distance (from a speed of 35 mph) of all ZX-900s. National Motors would like to claim that the ZX-900 achieves a shorter mean stopping distance than the 60 ft claimed by a competitor.a. Set up
Suppose that a random sample of 16 measurements from a normally distributed population gives a sample mean of = 13.5 and a sample standard deviation of s = 6. Use critical values to test H0: μ < 10 versus Ha: μ > 10 using levels of significance α = .10, α = .05, α = .01, and α = .001.
Suppose that a random sample of nine measurements from a normally distributed population gives a sample mean of = 2.57 and a sample standard deviation of s = .3. Use critical values to test H0: μ = 3 versus Ha: μ ≠ 3 using levels of significance α = .10. α = .05, α = .01, and α = .001.
Recall that it is hoped that the mean alert time, μ, using the new display panel is less than eight seconds. Formulate the null hypothesis H0 and the alternative hypothesis Ha that would be used to attempt to provide evidence that μ is less than eight seconds. Discuss the meanings of a Type I
The bad debt ratio for a financial institution is defined to be the dollar value of loans defaulted divided by the total dollar value of all loans made. Suppose that a random sample of seven Ohio banks is selected and that the bad debt ratios (written as percentages) for these banks are 7%, 4%, 6%,
Recall that "very satisfied" customers give the XYZ-Box video game system a rating that is at least 42. Suppose that the manufacturer of the XYZ-Box wishes to use the random sample of 65 satisfaction ratings to provide evidence supporting the claim that the mean composite satisfaction rating for
Recall that a bank manager has developed a new system to reduce the time customers spend waiting for teller service during peak hours. The manager hopes the new system will reduce waiting times from the current 9 to 10 minutes to less than 6 minutes.Suppose the manager wishes to use the random
Recall that "very satisfied" customers give the XYZ-Box video game system a rating that is at least 42. Suppose that the manufacturer of the XYZ-Box wishes to use the 65 satisfaction ratings to provide evidence supporting the claim that the mean composite satisfaction rating for the XYZ-Box exceeds
Consider a chemical company that wishes to determine whether a new catalyst, catalyst XA-100. changes the mean hourly yield of its chemical process from the historical process mean of 750 pounds per hour. When five trial runs are made using the new catalyst, the following yields (in pounds per
Recall from Exercise 8.12 that Bayus (1991) studied the mean numbers of auto dealers visited by early and late replacement buyers. Letting p be the mean number of dealers visited by late replacement buyers, set up the null and alternative hypotheses needed if we wish to attempt to provide evidence
The controller of a large retail chain is concerned about a possible slowdown in payments by customers. The controller randomly selects a sample of 25 accounts and finds that the mean and the standard deviation of the number of days that the accounts have remained unpaid are = 54 and s = 8. Using
Suppose we test H0: p = .3 versus Ha: p ≠ .3 and that a random sample of n = 100 gives a sample proportion = .20.a. Test H0 versus Ha at the .01 level of significance by using a critical value. What do you conclude?b. Find the p-value for this test.c. Use the p-value to test H0 versus Ha by
Recall that a conflict of interest scenario was presented to a sample of 205 marketing researchers and that 111 of these researchers disapproved of the actions taken.a. Let p be the proportion of all marketing researchers who disapprove of the actions taken in the conflict of interest scenario. Set
Last year, television station WXYZ's share of the 11 P.M. news audience was approximately equal to, but no greater than, 25 percent. The station's management believes that the current audience share is higher than last year's 25 percent share. In an attempt to substantiate this belief, the station
In the book Essentials of Marketing Research, William R. Dillon. Thomas J. Madden, and Neil H. Firtle discuss a marketing research proposal to study day-after recall for a brand of mouthwash. To quote the authors:The ad agency has developed a TV ad for the introduction of the mouthwash. The
Recall that a bank manager has developed a new system to reduce the time customers spend waiting for teller service during peak hours. The manager hopes the new system will reduce waiting times from the current 9 to 10 minutes to less than 6 minutes.Suppose the manager wishes to use the 100 waiting
An airline's data indicate that 50 percent of people who begin the online process of booking a flight never complete the process and pay for the flight. To reduce this percentage, the airline is considering changing its website so that the entire booking process, including flight and seat selection
Suppose that a national survey finds that 73 percent of restaurant employees say that work stress has a negative impact on their personal lives. A random sample of 200 employees of a large restaurant chain finds that I4l employees say that work stress has a negative impact on their personal lives.
The manufacturer of the ColorSmart-5000 television set claims that 95 percent of its sets last at least five years without needing a single repair. In order to test this claim, a consumer group randomly selects 400 consumers who have owned a ColorSmart-5000 television set for five years. Of these
Again consider the Consolidated Power waste water situation. Remember that the power plant will be shut down and corrective action will be taken on the cooling system if the null hypothesis H0: μ ≤ 60 is rejected in favor of Ha: μ > 60. In this exercise we calculate probabilities of various
Again consider the automobile parts supplier situation. Remember that a problem-solving team will be assigned to rectify the process producing the cylindrical engine parts if the null hypothesis H0: μ = 3 is rejected in favor of Ha: μ = 3. In this exercise we calculate probabilities of various
In the Consolidated Power hypothesis test of H0: μ < 60 versus Ha: μ > 60 (as discussed in Exercise 9.47) find the sample size needed to make the probability of a Type I error equal to .025 and the probability of a Type II error corresponding to the alternative value μa = 60.5 equal to
An automobile parts supplier owns a machine that produces a cylindrical engine part. This part is supposed to have an outside diameter of three inches. Parts with diameters that are too small or too large do not meet customer requirements and must be rejected. Lately, the company has experienced
In the automobile parts supplier's hypothesis test of H0: μ = 3 versus Ha: μ ≠ 3 (as discussed in Exercise 9.48) find the sample size needed to make the probability of a Type I error equal to .05 and the probability of a Type II error corresponding to the alternative value μa = 3.005 equal to
The auditor for a large corporation routinely monitors cash disbursements. As part of this process, the auditor examines check request forms to determine whether they have been properly approved. Improper approval can occur in several ways. For instance, the check may have no approval, the check
Recall that the cigarette industry requires that models in cigarette ads must appear to be at least 25 years old. Also recall that a sample of 50 people is randomly selected at a shopping mall. Each person in the sample is shown a "typical cigarette ad" and is asked to estimate the age of the model
The Crown Bottling Company has just installed a new bottling process that will fill 16-ounce bottles of the popular Crown Classic Cola soft drink. Both overfilling and underfilling bottles are undesirable: Underfilling leads to customer complaints and overfilling costs the company considerable
In an article in the Journal of Retailing, Kumar, Kerwin, and Pereira study factors affecting merger and acquisition activity in retailing. As part of the study, the authors compare the characteristics of "target firms'' (firms targeted for acquisition) and "bidder firms" (firms attempting to make
A consumer electronics firm has developed a new type of remote control button that is designed to operate longer before becoming intermittent. A random sample of 35 of the new buttons is selected and each is tested in continuous operation until becoming intermittent. The resulting lifetimes are
Again consider the remote control button lifetime situation discussed in Exercise 9.62. Using the sample information given in the introduction to Exercise 9.62, the H0 value for testing H0 versus Ha can be calculated to be .0174.a. Determine whether H0 would be rejected at each of α = .10, α =
Several industries located along the Ohio River discharge a toxic substance called carbon tetrachloride into the river. The state Environmental Protection Agency monitors the amount of carbon tetrachloride pollution in the river. Specifically, the agency requires that the carbon tetrachloride
Suppose that random samples of 50 returns for each of the following investment classes give the indicated sample mean and sample standard deviation:Fixed annuities: = 7.83%, s = .51% Domestic large-cap stocks: = 13.42%, s = 15.17% Domestic midcap stocks: = 15.03%, s = 18.44% Domestic small-cap
Assume that the U.K. insurance survey is based on 1,000 randomly selected United Kingdom households and that 640 of these households spent money to buy life insurance in 1993.a. If p denotes the proportion of all U.K. households that spent money to buy life insurance in 1993, set up the null and
Consumer Reports (January 2005) indicates that profit margins on extended warranties are much greater than on the purchase of most products.4 In this exercise we consider a major electronics retailer that wishes to increase the proportion of customers who buy extended warranties on digital cameras.
Fortune magazine has periodically reported on the rise of fees and expenses charged by stock funds.a. Suppose that 10 years ago the average annual expense for stock funds was 1.19 percent. Let μ be the current mean annual expense for all stock funds, and assume that stock fund annual expenses are
Consolidated Power, a large electric power utility, has just built a modern nuclear power plant. This plant discharges waste water that is allowed to flow into the Atlantic Ocean. The Environmental Protection Agency (EPA) has ordered that the waste water may not be excessively warm so that thermal
American consumers comfortable using their credit cards to make purchases over the Internet? Suppose that a noted authority suggests that credit cards will be firmly established on the Internet once the "80 percent barrier" is broken; that is, as soon as more than 80 percent of those who make
Suppose we compare two population means, µ1, and µ2, and consider the difference µ1 - µ2. In each case, indicate how µ1, relates to µ2. (That is. is µ1, greater than, less than, equal to, or not equal to µ2?) a µ1, - µ2 < 0 b. µ1, - µ2 = 0 c. µ1 - µ2 < -l0 d. µ1 - µ2 > 0 e. µ1 -
In the Journal of Marketing, Bayus studied differences between "early replacement buyers" and "late replacement buyers." Suppose that a random sample of 800 early replacement buyers yields a mean number of dealers visited of 1 = 3.3. and that a random sample of 500 late replacement buyers yields a
William R. Dillon. Thomas J. Madden1 and Neil H. Firtle discuss a corporate image study designed to find out whether perceptions of technical support services vary depending on the position of the respondent in the organization. The management of a company that suµµlies telephone cable to
Calculate a 95 percent confidence interval for µ1 - µ2. Can we be 95 percent confident that µ1 -µ2 is greater than 20? Explain why we can use the equal variances procedure here.
Use critical values to test the null hypothesis H0: µ1 - µ2 < 20 versus the alternative hypothesis Ha: µ1 - µ2 > 20 by setting a equal to .101 .051 .011 and .001. How much evidence is there that the difference between µ1 and µ2 exceeds 20?
Use critical values to test the null hypothesis H0: µ1 - µ2 = 20 versus the alternative hypothesis Ha: µ1 - µ2 ≠ 20 by setting a equal to .101 .051 .011 and .001. How much evidence is there that the difference between µ1 and µ2 is not equal to 20?
Repeat Exercises 10.16 through 10.18 using the unequal variances procedure. Compare your results to those obtained using the equal variances procedure.
Suppose we commute a 95 percent confidence interval for µ1 - µ2. If the interval is a. [3, 5], can we be 95 percent confident that µ1, is greater than µ2? Why or why not? b. |3, 5], can we be 95 percent confident that µ, is not equal to µ2? Why or why not? c. [-20, -10], can we be 95 percent
The October 71 19911 issue of Fortune magazine reported on the rapid rise of fees and expenses charged by mutual funds. Assuming that stock fund expenses and municipal bond fund expenses are each approximately normally distributed, suppose a random sample of 12 stock funds gives a mean annual
Donald R. Cooper and C. William Emory (1995) discuss a manager who wishes to compare the effectiveness of two methods for training new salespeople. The authors describe the situation as follows:The company selects 22 sales trainees who are randomly divided into two experimental groups one receives
A marketing research firm wishes to compare the prices charged by two supermarket chains- Miller's and Albert's. The research firm, using a standardized one-week shopping plan (grocery list), makes identical purchases at 10 of each chain's stores. The stores for each chain are randomly selected and
A large discount chain compares the performance of its credit managers in Ohio and Illinois by comparing the mean dollar amounts owed by customers with delinquent charge accounts in these two states. Here a small mean dollar amount owed is desirable because it indicates that bad credit risks are
A loan officer compares the interest rates for 48-month fixed-rate auto loans and 48-month variable-rate auto loans. Two indeµendent1 random samples of auto loan rates are selected. A sample of eight 48-month fixed-rate auto loans had the following loan rates:8.29% 7.75% 7.50% 7.99% 7.75% 7.99%
Suppose a sample of 11 paired differences that has been randomly selected from a normally distributed population of paired differences yields a sample mean of d = 103.5 and a sample standard deviation of sd = 5.a. Calculate 95 percent and 99 percent confidence intervals for µd = µ1 - µ2. Can we
Suppose a sample of 49 µaired differences that have been randomly selected from a normally distributed population of paired differences yields a sample mean of J = 5 and a sample standard deviation of sd = 7.a Calculate a 95 percent confidence interval for µd = µ1 - µ2. Can we be 95 percent
On its website, the Statesman Journal newspaper (Salem1 Oregon1 1999) reports mortgage loan interest rates for 30-year and 15-year fixed-rate mortgage loans for a number of Willamette Valley lending institutions. Of interest is whether there is any systematic difference between 30-year rates and
In the book Essentials of Marketing Research William R. Dillon1 Thomas J. Madden, and Neil H. Firtle (1993) present preexposure and postexposure attitude scores from an advertising study involving 10 respondents. The data for the experiment are given in Table 10.4. Assuming that the differences
National paper Company must purchase a new machine for producing cardboard boxes. The company must choose between two machines. The machines produce boxes of equal quality, so the company will choose the machine that produces (on average) the most boxes. It is known that there are substantial
During 2004 a company implemented a number of policies aimed at reducing the ages of its customers' accounts. In order to assess the effectiveness of these measures, the company randomly selects 10 customer accounts. The average age of each account is determined for the years 2003 and 2004. These
Do students reduce study time in classes where they achieve a higher midterm score? In a Journal of Economic Education article (Winter 2005), Gregory Krohn and Catherine O'Connor studied student effort and performance in a class over a semester. In an intermediate macroeconomics course, they found
Calculate a 95 percent confidence interval for µ1 - µ2. Interpret this interval. Can we be 95 percent confident that µ1 - µ2 is less than 0? That is, can we be 95 percent confident that µ1 is less than µ2, Explain.
Test H0: µ1 - µ2 = 0 versus Ha: µ1 - µ2 0 by using critical values and by setting a equal to .101 .051 .011 and .001. How much evidence is there that µ1 and µ2 differ? Explain. Zooo5 = 3.29.
Test H0: p1 - p2 > -. 12 versus Ha: p1 - p2 < -. 12 by using a p-value and by setting a equal to. 10. .051 .011 and .001. How much evidence is there that p2 exceeds p1 by more than. 12? Explain.
In an article in the Journal of Advertising, Weinberger and Spotts compare the use of humor in television ads in the United States and in the United Kingdom. Suppose that independent random samples of television ads are taken in the two countries. A random sample of400 television ads in the United
William R. Dillon. Thomas J. Madden, and Neil H. Firtle discuss a research proposal in which a telephone company wants to determine whether the appeal of a new security system varies between homeowners and renters. Independent samples of 140 homeowners and 60 renters are randomly selected. Each
Nunnally and plath (1995) µresent a case in which the estimated percentage of uncollectible accounts varies with the age of the account. Here the age of an unpaid account is the number of days elapsed since the invoice date.An accountant believes that the percentage of accounts that will be
On January 71 20001 the Gallup Organization released the results of a poll comparing the lifestyles of today with yesteryear. The survey results were based on telephone interviews with a randomly selected national sample of 1.0.31 adults1 18 years and older1 conducted December 20-21 1999. The poll
Philip R. Cateora reports the results of an MTV-commissioned study of the lifestyles and spending habits of the 14-34 age group in six countries. The survey results are given in Table 10.7a. As shown in Table 10.71 96 percent of the 14- to 34-year-olds surveyed in the United States had purchased
Use Table 10.8 to find the F.05 point for each of the following: a. df1 = 3 numerator degrees of freedom and df2 = 14 denominator degrees of freedom. b. df1 = 6 and df2 = 10. c. df1 = 2 and df2 = 22. d. df = 7 and df2 = 5.
Use Tables A.5. A.6, A.7, and A.8 to find the following Fa points: a. F.l0 with df1 = 4 numerator degrees of freedom and df2 = 7 denominator degrees of freedom. b. F.01 with df1 = 3 and df2 = 25. c. F.025 with df1 = 7 and df2 = 17. d. F.05 with df1 = 9 and df2 = 3.
Suppose we randomly select two independent samples from populations having means µ1, and µ2. If 1, = 25, 2 = 20, σ1, = 3, σ2 = 4, n1, = 100 and n2 = 100:a. Calculate a 95 percent confidence interval for µ1, - µ2. Can we be 95 percent confident that µ1, is greater than µ2? Explain.b. Test
Suppose two independent random samples of sizes n1 = 9 and n2 = l6 that have been taken from two normally distributed populations having variances σ21 and σ21 give sample variances of s21 = 100 and s22 = 20.a. Test H0: σ21 = σ22 versus Ha: σ21 + σ22 with a = .05. What do you conclude?b. Test
Suppose two independent random samples of sizes n1 = 5 and n2 = 16 that have been taken from two normally distributed populations having variances σ21 and σ22 give sample standard deviations of s1 = 5 and s2 = 9.a. Test H0: σ21 = σ22 versus Ha: σ21 ≠ σ22 with a = .05. What do you
Consider the situation of Exercise 10.23. Use the sample information to test H0: σ21 = σ22 versus Ha: σ21 = σ22 with a = .05. Based on this test, does it make sense to believe that the unequal variances procedure is appropriate? Explain.
Consider the situation of Exercise 10.24 a. Use the Excel output in Figure 10.7 and a critical value to test H0: σ21 = σ22 versus Ha: σ21 ≠ σ22 with a = .05. What do you conclude?b. Does it make sense to use the equal variances procedure in this situation?
In its February 21 19981 issue. Fortune magazine published the results of a Yankelovich partners survey of 600 adults that investigated their ideas about marriage1 divorce1 and the contributions of the corporate wife. The survey results are shown in Figure 10.16. For each statement in the figure1
a. Set up the null and alternative hypotheses needed to test whether the mean earnings per share for all "target firms" differs from the mean earnings per share for all "bidder firms." Test these hypotheses at the .101 .051 .011 and .001 levels of significance. How much evidence is there that these
a. Set up the null and alternative hypotheses needed to test whether the mean debt-to-equity ratio for all "target firms" differs from the mean debt-to-equity ratio for all "bidder firms." Test these hypotheses at the .101 .051 .011 and .001 levels of significance. How much evidence is there that
What impact did the September 11 terrorist attack have on U.S. airline demand? An analysis was conducted by I to and Lee1 "Assessing the impact of the September 11 terrorist attacks on U.S. airline demand," in the Journal of Economics and Business (January-February 2005). They found a negative
William R. Dillon1 Thomas J. Madden1 and Neil H. Firtle discuss evaluating the effectiveness of a test coupon. Samples of 500 test coupons and 5(K) control coupons were randomly delivered to shoppers. The results indicated that 35 of the 500 control coupons were redeemed, while 50 of the 500 test
A marketing manager wishes to compare the mean prices charged for two brands of CD players. The manager conducts a random survey of retail outlets and obtains independent random samples of prices with the following results:Assuming normality and equal variances:a. Use an appropriate hypothesis test
Suppose we select two independent random samples from populations having means µ1 and µ2. If 1, = 151, 2 = 162, σ1, = 6, σ2 = 8, n1 = 625 and n2 = 625:a. Calculate a 95 percent confidence interval for µ1 - µ2. Can we be 95 percent confident that µ2 is greater than µ1? By how much?
Consider the situation of Exercise 10.59. Use the sample information to test H0: σ21 = σ22 versus Ha: σ21 σ22 with a = .05. Based on this test, does it make sense to use the equal variances procedure? Explain.
a. A prominent issue of the 2000 U.S. µresidential campaign was campaign finance reform. A Washington post/ABC News poll (reported April 41 2000) found that 63 percent of 11083 American adults surveyed believed that stricter campaign finance laws would be effective (a lot or somewhat) in reducing
In an article in Accounting and Business Research, Carslaw and Kaplan study the effect of control (owner versus manager control) on audit delay (the length of time from a company's financial year-end to the date of the auditor's report) for public companies in New Zealand. Suppose a random sample
In an article in the Journal of Management1 Wright and Bonett study the relationshipµ between voluntary organizational turnover and such factors as work µerformance1 work satisfaction1 and company tenure. As µart of the study1 the authors compare work performance ratings for "stayers" (employees
An Ohio university wishes to demonstrate that car ownership is detrimental to academic achievement. A random sample of 100 students who do not own cars had a mean grade point average (GPA) of 2.681 while a random sample of 100 students who own cars had a mean GPA of 2.55.a. Assuming that the
Define the meaning of the terms response variable, factor, treatments, and experimental units. Discuss.
Consider the display panel situation in Exercise 11.3, and let µA, µB, and µC (represent the mean times to stabilize the emergency condition when using display panels A, B, and C, respectively. Figure 11.4 gives the MINITAB output of a one-way ANOVA of the display panel data in Table 11.3.FIGURE
Consider the bottle design study situation in Exercise 11.4. and let µA, µB and µC represent mean daily sales using bottle designs A. B, and C. respectively. Figure 11.5 gives the Excel output of a one-way ANOVA of the bottle design study data in Table 11.4. a. Test the null hypothesis that µA,
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