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Essentials Of Business Statistics Communicating With Numbers 1st Edition Sanjiv Jaggia, Alison Kelly - Solutions

It is important for women to gain the right amount of weight during pregnancy by eating a healthy, balanced diet (webmd.com). It is recommended that a woman of average weight before pregnancy should gain 25 to 35 pounds during pregnancy. The accompanying table shows a portion of the weight data for
A farmer is concerned that a change in fertilizer to an organic variant might change his crop yield. He subdivides 6 lots and uses the old fertilizer on one-half of each lot and the new fertilizer on the other half. The following table shows the results.a. Specify the competing hypotheses that
The accompanying table shows annual return data from 2001â€“2009 for Vanguardâ€™s Balanced Index and European Stock Index mutual funds. The data set, labeled Balanced_European, can also be found on the text website.Assume that returns are normally distributed.a. Set up the hypotheses to
The SAT is required of most students applying for college admission in the United States. This standardized test has gone through many revisions over the years. In 2005, a new writing section was introduced that includes a direct writing measure in the form of an essay. People argue that female
An engineer wants to determine the effectiveness of a safety program. He collects annual loss of hours due to accidents in 12 plants â€œbefore and afterâ€ the program was put into operation. The data set, labeled Safety_Program, can also be found on the text website.a. Specify the
A government agency wants to determine whether the average salaries of four various kinds of transportation operators differ. A random sample of five employees in each of the four categories yields the salary data given in the table below:a. Construct an ANOVA table and estimate the p-value.b.
An economist wants to determine whether average Price/Earnings (P/E) ratios differ for firms in three industries. Independent samples of five firms in each industry show the following results:a. Construct an ANOVA table. Assume that P/E ratios are normally distributed.b. At the 5% significance
The manager of an SAT review program wonders whether average SAT scores differ depending on the ethnicity of the test taker. Thirty test scores for four ethnicities are collected. A portion of the data is shown in the accompanying table; the entire data set, labeled SAT_Ethnicity, can be found on
An engineer wants to determine whether the average strength of plywood boards (in pounds per square inch) differs depending on the type of glue used.For three types of glue, she measures the strength of 20 plywood boards. A portion of the data is shown in the accompanying table. The entire data
Consider the following competing hypotheses and accompanying results from matched samples:H0: µD ≤ 2; HA: µD > 2d̅ = 5.6 , sD = 6.2 , n = 10a. Calculate the value of the test statistic and approximate the p-value assuming that the sample difference is normally distributed.b. Use the 1%
The following Excel output summarizes the results of an analysis of variance experiment in which the treatments were three different hybrid cars and the variable measured was the miles per gallon (mpg) obtained while driving the same route. Assume mpg is normally distributed.At the 5% significance
An employee of a small software company in Minneapolis bikes to work during the summer months. He can travel to work using one of three routes and wonders whether the average commute times (in minutes) differ between the three routes. He obtains the following data after traveling each route for one
Before the recession, job-creating cities in the Sunbelt, likeÂ Las Vegas, Phoenix, and Orlando, saw their populations, income levels, and housing prices surge. Las Vegas, however, offered something that often eluded these other cities: upward mobility for the working class. For example,
David Anderson has been working as a lecturer at Michigan State University for the last three years. He teaches two large sections of introductory accounting every semester. While he uses the same lecture notes in both sections, his students in the first section outperform those in the second
A statistics instructor wonders whether significant differences exist in her studentsâ€™ final exam scores in her three different sections. She randomly selects the scores from 10 different students in each section. A portion of the data is shown below; the complete data set, labeled
An accounting professor wants to know if students perform the same on the departmental final exam irrespective of the accounting section they attend. For three sections, he obtains the final exam grades for 20 students. The following Excel output for Î± = 0.05 summarizes a portion of the
Chad Perrone is a financial analyst in Boston studying the annual return data for the health and information technology industries. He randomly samples 20 firms in each industry and notes each firm’s annual return. A portion of the data is shown in the accompanying table; the entire data set,
The Speedo LZR Racer Suit is a high-end, body-length swimsuit that was launched onFebruary 13, 2008. When 17 world records fell at the December 2008 European Short CourseChampionships in Croatia, many believed a modification in the rules surrounding swim-suits was necessary. The FINA Congress, the
Lisa Grattan, a financial analyst for a small investment firm, collects annual stock return data for 10 firms in the energy industry, 13 firms in the retail industry, and 16 firms in the utilities industry. A portion of the data is shown in the accompanying table; the entire data set, labeled
Given x1 = 50, n1 = 200, x2 = 70, n2 = 250, construct a 95% confidence interval for the difference between the population proportions. Is there a difference between the population proportions at the 5% significance level? Explain.
Given = 0.85, n1 = 400, = 0.90, n2 = 350, construct a 90% confidence interval for the difference between the population proportions. Is there a difference between the population proportions at the 10% significance level? Explain.
Consider the following competing hypotheses and accompanying sample data.H0: - = 0HA: - ≠ 0x1 = 100 x2 = 172n1 = 250 n2 = 400a. Calculate the value of the test statistic.b. Calculate the p-value.c. At the 5% significance level, what is the conclusion to the test? Do the population
Consider the following competing hypotheses and accompanying sample data.a. At the 5% significance level, find the critical value(s).b. Calculate the value of the test statistic.c. What is the conclusion to the test? Is significantly less than ?
Consider the following competing hypotheses and accompanying sample data.H0: - = 0HA: - ≠ 0x1 = 300 x2 = 325n1 = 600 n2 = 500a. Calculate the value of the test statistic.b. Calculate the p-value.c. At the 5% significance level, what is the conclusion to the test? Do the population
Consider the following competing hypotheses and accompanying sample data.a. Calculate the value of the test statistic.b. Calculate the p-value.c. At the 5% significance level, what it the conclusion to the test? Can you conclude that the difference between the population proportions differs from
A recent study claims that girls and boys do not do equally well on math tests taken from the 2nd to 11th grades (Chicago Tribune, July 25, 2008). Suppose in a representative sample, 344 of 430 girls and 369 of 450 boys score at proficient or advanced levels on a standardized math test.a. Construct
According to the Pew report, 14.6% of newly married couples in 2008 reported that their spouse was of another race or ethnicity (CNNLiving, June 7, 2010). In a similar survey in 1980, only 6.8% of newlywed couples reported marrying outside their race or ethnicity. Suppose both of these surveys were
Research by Harvard Medical School experts suggests that boys are more likely than girls to grow out of childhood asthma when they hit their teenage years (BBC News, August 15, 2008). Scientists followed over 1,000 children between the ages of 5 and 12, all of whom had mild to moderate asthma.
More people are using social media to network, rather than phone calls or e-mails (US News & World Report, October 20, 2010). From an employment perspective, jobseekers are no longer calling up friends for help with job placement, as they can now get help online. In a recent survey of 150
According to a recent report, 32.2% of American adults (aged 20 and older) are obese (New York Times, August 15, 2008).Among ethnic groups in general, African-American women are more overweight than Caucasian women, but African-American men are less obese than Caucasian men. Sarah Weber, a recent
Only 26% of psychology majors are “satisfied” or “very satisfied” with their career paths as compared to 50% of accounting majors (The Wall Street Journal, October 11, 2010).Suppose these results were obtained from a survey of 300 psychology majors and 350 accounting majors.a. Develop the
A recent report suggests that business majors spend the least amount on course work than all other college students (New York Times, November 17, 2011). A provost of a university decides to conduct a survey where students are asked if they study hard, defined as spending at least 20 hours per week
Consider a multinomial experiment with n = 250 and k = 4.The null hypothesis to be tested is H0: p1 = p2 = p3 = p4 = 0.25.The observed frequencies resulting from the experiment area. Specify the alternative hypothesis.b. Find the critical value at the 5% significance level.c. Calculate the value of
Consider a multinomial experiment with n = 400 and k = 3.The null hypothesis is H0: p1 = 0.60, p2 = 0.25 and p3 = 0.15.The observed frequencies resulting from the experiment area. Deine the alternative hypothesis.b. Calculate the value of the test statistic and approximate the p -value for the
A multinomial experiment produced the following results:Can we conclude at the 1% significance level that the population proportions are notequal?
A multinomial experiment produced the following results:At the 1% significance level, can we reject H0: p1 = 0.30, p2 = 0.20 and p3 =0.50?
You suspect that an unscrupulous employee at a casino has tampered with a die; that is, he is using a loaded die. In order to test this claim, you roll the die 200 times and obtain the following frequencies:a. Specify the null and alternative hypotheses in order to test your claim.b. Approximate
A study conducted in September and October of 2010 found that fewer than half of employers who hired new college graduates last academic year plan to definitely do so again (The Wall Street Journal, November 29, 2010). Suppose the hiring intentions of the respondents were asÂ follows:Six
A rent-to-own (RTO) agreement appeals to low-income and financially distressed consumers. It allows immediate access to merchandise, and by making all payments, the consumer acquires the merchandise. At the same time, goods can be returned at any point without penalty. Suppose a recent study
Despite Zimbabwe’s shattered economy, with endemic poverty and widespread political strife and repression, thousands of people from overseas still head there every year (BBC News,August 27, 2008). Main attractions include the magnificent Victoria Falls, the ruins of Great Zimbabwe, and herds of
In 2003 The World Wealth Report first started publishing market shares of global millionaires (The Wall Street Journal, June 25, 2008). At this time, the distribution of the world’s people worth $1 million or more wasRegion Percentage of MillionairesEurope ...........35.7%North America ........
An Associated Press/GfK Poll shows that 38% of American drivers favor U.S. cars, while 33% prefer Asian brands, with the remaining 29% going for other foreign cars (www.msnbc.com, April 21, 2010). This highlights a significant improvement for U.S. automakers, especially when just a few years ago
Given the following contingency table, conduct a test of independence at the 5% significance level using(a) The critical value approach and(b) The p-valueapproach.
Given the following contingency table, conduct a test of independence at the 1% significance level using(a) The p -value approach and(b) The critical valueapproach.
According to an online survey by Harris Interactive for job site CareerBuilder.com (InformationWeek.com, September 27, 2007), more than half of IT workers say they have fallen asleep at work. Sixty-four percent of government workers admitted to falling asleep on the job. Assume that the following
A market researcher for an automobile company suspects differences in preferred color between male and female buyers. Advertisements targeted to different groups should take such differences into account, if they exist. The researcher examines the most recent sales information of a particular car
The following sample data reflect shipments received by a large firm from three different vendors.a. Specify the competing hypotheses to determine whether quality is associated with the source of the shipments.b. Conduct the test at a 1% significance level using the critical value approach.c.
According to a 2008 survey by the Pew Research Center, people in China are highly satisfied with their roaring economy and the direction of their nation (USA TODAY, July 22, 2008). Eighty-six percent of those who were surveyed expressed positive views of the way China is progressing and described
A study by the Massachusetts Community & Banking Council found that blacks, and, to a lesser extent, Latinos, remain largely unable to borrow money at the same interest rate as whites (Boston Globe, February 28, 2008). The following contingency table shows representative data for the city of
Founded in February 2004, Facebook is a social utility that helps people communicate with their friends and family. In just six years, Facebook has acquired more than 500 million active users, of which 50% log on to Facebook in any given day. In a survey of 3,000 Facebook users, the designers
A recent Health of Boston report suggests that 14% of female residents suffer from asthma as opposed to 6% of males (Boston Globe, August 16, 2010). Suppose 250 females and 200 males responded to the study.a. Develop the appropriate null and alternative hypotheses to test whether the proportion of
Depression engulfs millions of Americans every day. A new federal study reported that 10.9% of adults aged 18–24 identified with some level of depression versus 6.8% of adults aged 65 or older (Boston Globe, October 18, 2010). Suppose 250 young adults (18–24 years old) and200 older adults (65
Fresh numbers from the U.S. Department of Transportation suggest that fewer lights in the U.S. arrive on time than before. The explanations offered for the lackluster performance are understaffed airlines, a high volume of travelers, and overtaxed air traffic control. A transportation analyst is
The following table lists the market share of the four firms in a particular industry in 2010 and total sales for each firm in 2011.a. Specify the competing hypotheses to test whether the market shares in 2011 are consistent with those from 2010.b. At the 1% significance level, find the critical
A study suggests that airlines have increased restrictions on cheap fares by raising overnight requirements (The Wall Street Journal, August 19, 2008). This would force business travelers to pay more for their lights, since they tend to need the most flexibility and want to be
A local TV station claims that 60% of people support Candidate A, 30% support Candidate B, and 10% support Candidate C. A survey of 500 registered voters is taken. The accompanying table indicates how they are likely to vote.a. Specify the competing hypotheses to test whether the TV
Although founded only in 2004, Facebook has more than 500 million active users, of which 50% log on to Facebook on any given day. In a recent survey by Facebook, young users (those born after 1984) were asked about their preference for delivering the news about breaking up a relationship (The Wall
A recent study in the Journal of the American Medical Association (February 20, 2008) found that patients who go into cardiac arrest while in the hospital are more likely to die if it happens after 11 pm. The study investigated 58,593 cardiac arrests during the day or evening. Of those, 11,604
An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are independent of the industry to which they belong. She examines four industries and classifies the stock prices in these industries into one of three categories (high-priced, average-priced, low riced).a.
Many parents have turned to St. Johnâ€™s Wort, a herbal remedy, to treat their children with attention deficit hyperactivity disorder (ADHD). The Journal of the American Medical Association (June 11, 2008) recently published an article that explored the herbâ€™s effectiveness. Children
A recent poll asked 3,228 Americans aged 16 to 21 whether they are likely to serve in the U.S. military. The following table, cross-classified by gender and race, reports those who responded that they are likely or very likely to serve in the active-duty military.a. State the competing hypotheses
Given a shaky economy and high heating costs, more and more households are struggling to pay utility bills (The Wall Street Journal, February, 14, 2008). Particularly hard hit are households with homes heated with propane or heating oil. Many of these households are spending twice as much to stay
According to the Census’s Population Survey, the percentage of children with two parents at home is the highest for Asians and lowest for blacks (USA TODAY, February 26, 2009). It is reported that 85% of Asian children have two parents at home versus 78% of white, 70% of Hispanic, and 38% of
Suppose you are conducting a test of independence. Specify the critical value under the following scenarios:a. r = 3, c = 3, and α = 0.10 .b. r = 4, c = 5, and α = 0.05 .
Suppose you are conducting a test of independence. Specify the critical value under the following scenarios:a. r = 5, c = 2, and α = 0.025 .b. r = 3, c = 5, and α = 0.01 .
It has generally been believed that it is not feasible for men and women to be just friends (New York Times, April 12, 2012). Others argue that this belief may not be true anymore since gone are the days when men worked and women stayed at home and the only way they could get together was for
According to a recent study, cell phones are the main medium for teenagers to stay connected with friends and family (CNN, March 19, 2012). These days text messaging followed by cell calling have become an integral part of life for teenagers. It is estimated that 90% of older teens (aged 14–17)
A detailed study of Americansâ€™ religious beliefs and practices by the Pew Forum on Religion & Public Life revealed that religion is quite important in an individualâ€™s life (Boston Globe, June 24, 2008). The second column of the accompanying table reports the proportion of Americans
A University of Utah study examined 7,925 severely obese adults who had gastric bypass surgery and an identical number of people who did not have the surgery (Boston Globe, August 23, 2007). The study wanted to investigate whether losing weight through stomach surgery prolonged the lives of
A sample space S yields five equally likely events, A, B, C, D, and E.a. Find P(D) .b. Find P(Bc) .c. Find P(A ∪ C ∪ E) .
You roll a die with the sample space S = {1, 2, 3, 4, 5, 6}. You define A as {1, 2, 3}, B as {1, 2, 3, 5, 6}, C as {4, 6}, and D as {4, 5, 6}. Determine which of the following events are exhaustive and/or mutually exclusive.a. A and Bb. A and Cc. A and Dd. B and C
A sample space, S, yields four simple events, A, B, C, and D, such that P(A) = 0.35 , P(B) = 0.10 and P(C) = 0.25.a. Find P(D).b. Find P(Cc).c. Find P(A ∪ B).
An alarming number of U.S. adults are either overweight or obese. The distinction between overweight and obese is made on the basis of body mass index (BMI), expressed as weight/height2. An adult is considered overweight if the BMI is 25 or more but less than 30. An obese adult will have a BMI of
Many communities are finding it more and more difficult to ill municipal positions such as town administrators, finance directors, and treasurers. The following table shows the percentage of municipal managers by age group in the United States for the years 1971 and 2006.a. In 1971, what was the
At four community health centers on Cape Cod, Massachusetts, 15,164 patients were asked to respond to questions designed to detect depression (The Boston Globe, June 11, 2008). The survey produced the following results..a. What is the probability that a randomly selected patient suffered from mild
Let P (A) = 0.65, P(B) = 0.30, and P(A | B) = 0.45.a. Calculate P (A ∩ B).b. Calculate P (A ∪ B).c. Calculate P (B | A).
Let P (A) = 0.55, P (B) = 0.30, and P (A ∩ B) = 0.10.a. Calculate P (A | B).b. Calculate P (A ∪ B).c. Calculate P ((A ∪ B)c).
Let A and B be mutually exclusive with P (A) = 0.25 and P (B) = 0.30.a. Calculate P (A ∩ B).b. Calculate P (A ∪ B).c. Calculate P (A | B).
Let A and B be independent with P (A) = 0.40 and P (B) = 0.50.a. Calculate P (A ∩ B).b. Calculate P ((A ∪ B)c).c. Calculate P (A | B).
Let P (A) = 0.65, P (B) = 0.30, and P (A | B) = 0.45.a. Are A and B independent events? Explain.b. Are A and B mutually exclusive events? Explain.c. What is the probability that neither A nor B takes place?
Let P (A) = 0.15, P (B) = 0.10, and P (A ∩ B) = 0.05.a. Are A and B independent events? Explain.b. Are A and B mutually exclusive events? Explain.c. What is the probability that neither A nor B takes place?
Consider the following probabilities: P(A) = 0.25, P(B c) = 0.40, and P(A ∩ B) = 0.08. Find:a. P(B)b. P(A | B)c. P(B | A)
Consider the following probabilities: P (Ac) = 0.30, P (B) = 0.60, and P (A ∩ Bc) = 0.24. Find:a. P (A | Bc)b. P (Bc | A)c. Are A and B independent events? Explain.
Consider the following probabilities: P (A) = 0.40, P (B) = 0.50 and P (Ac ∩ Bc) = 0.24. Find:a. P (Ac | Bc)b. P (Ac ∪ Bc)c. P (A ∪ B)
Survey data, based on 65,000 mobile phone subscribers, shows that 44% of the subscribers use smart-phones (Forbes, December 15, 2011). Moreover, 51% of smart-phone users are women.a. Find the probability that a mobile phone subscriber is a woman who uses a smart-phone.b. Find the probability that
Twenty percent of students in a college ever go to their professor during office hours. Of those who go, 30% seek minor clarification and 70% seek major clarification.a. What is the probability that a student goes to the professor during her office hours for a minor clarification?b. What is the
The probabilities that stock A will rise in price is 0.40 and that stock B will rise in price is 0.60. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.80.a. What is the probability that at least one of the stocks will rise in price?b. Are events A and B
Despite government bailouts and stimulus money, unemployment in the United States had not decreased significantly as economists had expected (US News and World Report, July 2, 2010). Many analysts predicted only an 18% chance of a reduction in U.S. unemployment. However, if Europe slipped back into
Dr. Miriam Johnson has been teaching accounting for over 20 years. From her experience she knows that 60% of her students do homework regularly. Moreover, 95% of the students who do their homework regularly generally pass the course. She also knows that 85% of her students pass the course.a. What
Records show that 5% of all college students are foreign students who also smoke. It is also known that 50% of all foreign college students smoke. What percent of the students at this university are foreign?
An analyst estimates that the probability of default on a seven-year AA-rated bond is 0.06, while that on a seven-year A-rated bond is 0.13. The probability that they will both default is 0.04.a. What is the probability that at least one of the bonds defaults?b. What is the probability that neither
In general, shopping online is supposed to be more convenient than going to stores. However, according to a recent Harris Interactive poll, 87% of people have experienced problems with an online transaction (The Wall Street Journal, October 2, 2007). Forty-two percent of people who experienced a
Mike Danes has been delayed in going to the annual sales event at one of his favorite apparel stores. His friend has just texted him that there are only 20 shirts left, of which 8 are in size M, 10 in size L, and 2 in size XL. Also 3 of the shirts are white, 5 are blue, and the remaining is of
A manufacturing firm just received a shipment of 20 assembly parts, of slightly varied sizes, from a vendor. The manager knows that there are only 15 parts in the shipment that would be suitable. He examines these parts one at a time.a. Find the probability that the first part is suitable.b. If the
Despite the repeated effort by the government to reform how Wall Street pays its executives, some of the nation’s biggest banks are continuing to pay out bonuses nearly as large as those in the best years before the crisis (The Washington Post, January 15, 2010). It is known that 10 out of 15
Apple products have become a household name in America with 51 percent of all households owning at least one Apple product (CNN, March 19, 2012). The likelihood of owning an Apple product is 61 percent for households with kids and 48 percent for households without kids. Suppose there are 1,200
According to the Census’s Population Survey, the percentage of children with two parents at home is the highest for Asians and lowest for blacks (USA TODAY, February 26, 2009). It is reported that 85% of Asian, 78% of white, 70% of Hispanic, and 38% of black children have two parents at home.
Christine Wong has asked Dave and Mike to help her move into a new apartment on Sunday morning. She has asked them both in case one of them does not show up. From past experience, Christine knows that there is a 40% chance that Dave will not show up and a 30% chance that Mike will not show up. Dave
According to a recent survey by two United Nations agencies and a nongovernmental organization, two in every three women in the Indian capital of New Delhi are likely to face some form of sexual harassment in a year (BBC World News, July 9, 2010). The study also reports that women who use public
Since the fall of 2008, millions of Americans have lost jobs due to the economic meltdown. A recent study shows that unemployment has not impacted white-collar and blue-collar workers equally (Newsweek, April 20, 2009). According to the Bureau of Labor Statistics report, while the national

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