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Questions and Answers of Statistics

The following table contains observed frequencies for a sample of 240. Test for independence of the row and column variables using Î± =.05.
A Deloitte employment survey asked a sample of human resource executives how their company planned to change its workforce over the next 12 months (INC. Magazine, February 2012). A categorical
Health insurance benefits vary by the size of the company (Atlanta Business Chronicle, December 31, 2010). The sample data below show the number of companies providing health insurance for small,
A vehicle quality survey asked new owners a variety of questions about their recently purchased automobile (J.D. Power and Associates, March 2012). One question asked for the ownerâ€™s rating of
The Wall Street Journal Corporate Perceptions Study 2011 surveyed readers and asked how each rated the quality of management and the reputation of the company for over 250 worldwide corporations.
The race for the 2012 Academy Award for Actress in a Leading Role was extremely tight, featuring several worthy performances (ABC News online, February 22, 2013). The nominees were Jessica Chastain
The National Sleep Foundation used a survey to determine whether hours of sleep per night are independent of age. A sample of individuals was asked to indicate the number of hours of sleep per night
On a syndicated television show the two hosts often create the impression that they strongly disagree about which movies are best. Each movie review is categorized as Pro (â€œthumbs upâ€),
Sudoku puzzles have become very popular in recent years; 31.1% of members of house-holds with annual income of at least $100,000 worked Sudoku puzzles in 2012 (Statistica.com, March 10, 2013). Are
A large automobile insurance company selected samples of single and married male policyholders and recorded the number who made an insurance claim over the preceding three-year period.a. Use Î± =
Medical tests were conducted to learn about drug-resistant tuberculosis. Of 142 cases tested in New Jersey, 9 were found to be drug-resistant. Of 268 cases tested in Texas, 5 were found to be
Vacation occupancy rates were expected to be up during March 2008 in Myrtle Beach, South Carolina (The Sun News, February 29, 2008). Data in the file named Occupancy will allow you to replicate the
The bullish sentiment of individual investors was 27.6% (AAII Journal, February 2009). The bullish sentiment was reported to be 48.7% one week earlier and 39.7% one month earlier. The sentiment
Phoenix Marketing International identified Bridgeport, Connecticut, Los Alamos, New Mexico, Naples, Florida, and Washington D.C. as the four U.S. cities with the highest percentage of millionaires
In a quality control test of parts manufactured at Dabco Corporation, an engineer sampled parts produced on the first, second, and third shifts. The research study was designed to determine if the
Efforts by airlines to improve on-time arrival rates are showing results. Boston.com (December 22, 2012) reports that in the first 10 months of 2012 on-time arrival rates at U.S. airports were the
The five most popular art museums in the world are MusÃ©e du Louvre, the Metropolitan Museum of Art, British Museum, National Gallery, and Tate Modern (The Art Newspaper, April 2012). Which of
The Golden Snow Globe website shows that four U.S. cities with a population of at least 100,000 (Rochester, NY; Salt Lake City, UT; Madison, WI; Bridgeport, CT) had recorded between 60 and 70 inches
A sample of parts provided the following contingency table data on part quality by production shift.Use Î± = .05 and test the hypothesis that part quality is independent of the production shift.
The Wall Street Journal Subscriber Study showed data on the employment status of subscribers. Sample results corresponding to subscribers of the eastern and western editions are shown here.Use Î± =
A lending institution supplied the following data on loan approvals by four loan officers. Use Î± = .05 and test to determine whether the loan approval decision is independent of the loan officer
A Pew Research Center survey asked respondents if they would rather live in a place with a slower pace of life or a place with a faster pace of life (USA today, February 13, 2009). Consider the
According to Ezine@rticles, the most popular flavors of ice cream in the United States are vanilla, chocolate, butter pecan, and strawberry (Ezine@rticles website, March 9, 2013), but are these
The office occupancy rates were reported for four California metropolitan areas. Do the following data suggest that the office vacancies were independent of metropolitan area?Use a .05 level of
1. Use descriptive statistics to summarize the data from this study. What are your preliminary conclusions about the independence of the response (Yes or No) and party affiliation for each of the
Given are five observations for two variables, x and y.a. Develop a scatter diagram for these data.b. What does the scatter diagram developed in part (a) indicate about the relationship between the
Given are five observations collected in a regression study on two variables.a. Develop a scatter diagram for these data.b. Develop the estimated regression equation for these data.c. Use the
Brawdy Plastics, Inc., produces plastic seat belt retainers for General Motors at its plant in Buffalo, New York. After final assembly and painting, the parts are placed on a conveyor belt that moves
The National Football League (NFL) records a variety of performance data for individuals and teams. To investigate the importance of passing on the percentage of games won by a team, the following
A sales manager collected the following data on annual sales for new customer accounts and the number of years of experience for a sample of 10 salespersons./a. Develop a scatter diagram for these
The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls members on their experiences with discount brokers. As part of the survey, members were asked to rate the
Companies in the U.S. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual revenue. In 2011, Hertz had 320,000 cars in service and annual revenue of
On March 31, 2009, Ford Motor Company€™s shares were trading at a 26-year low of $2.63. Ford€™s board of directors gave the CEO a grant of options and restricted shares with an
To help consumers in purchasing a laptop computer, Consumer Reports calculates an overall test score for each computer tested based on rating factors such as ergonomics, portability, performance,
Concur Technologies, Inc., is a large expense-management company located in Redmond, Washington. The Wall Street Journal asked Concur to examine the data from 8.3 million expense reports to provide
A large city hospital conducted a study to investigate the relationship between the numbers of unauthorized days that employees are absent per year and the distance (miles) between home and work for
Using a global-positioning-system (GPS)-based navigator for your car, you enter a destination and the system will plot a route, give spoken turn-by-turn directions, and show your progress along the
The data from exercise 1 follow.The estimated regression equation for these data is y = .20 + 2.60x.a. Compute SSE, SST, and SSR using equations (12.8), (12.9), and (12.10).b. Compute the coefficient
The data from exercise 2 follow.The estimated regression equation for these data is y = 68 €“ 3x.a. Compute SSE, SST, and SSR.b. Compute the coefficient of determination r2. Comment on the
The data from exercise 3 follow.The estimated regression equation for these data is y = 7.6 + .9x. What percentage of the total sum of squares can be accounted for by the estimated regression
In exercise 7 a sales manager collected the following data on x = annual sales and y 5 years of experience. The estimated regression equation for these data is y = 80 + 4x.a. Compute SST, SSR, and
Bicycling, the world€™s leading cycling magazine, reviews hundreds of bicycles throughout the year. The magazine€™s €œRoad-Race€ category contains reviews of
An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression
Refer to exercise 9 where the following data were used to investigate the relationship between the number of cars in service (1000s) and the annual revenue ($millions) for six smaller car rental
The data from exercise 2 follow.a. Compute the mean square error using equation (12.15).b. Compute the standard error of the estimate using equation (12.16).c. Compute the estimated standard
The data from exercise 3 follow.a. What is the value of the standard error of the estimate?b. Test for a significant relationship by using the t test. Use Î± = .05.c. Use the F test to
The number of megapixels in a digital camera is one of the most important factors in determining picture quality. But do digital cameras with more megapixels cost more? The following data show the
In exercise 8 ratings data on x = the quality of the speed of execution and y = overall satisfaction with electronic trades provided the estimated regression equation y = .2046 + .9077x (AAII
Refer to exercise 21, where data on production volume and cost were used to develop an estimated regression equation relating production volume and cost for a particular manufacturing operation. Use
Refer to exercise 9 where the following data were used to investigate the relationship between the number of cars in service (1000s) and the annual revenue ($millions) for six smaller car rental
In exercise 20, data on x = weight (pounds) and y = price ($) for 10 road-racing bikes provided the estimated regression equation y = 28,574 – 1439x. (Bicycling website March 8, 2012). For these
The data from exercise 2 follow.a. Estimate the standard deviation of y* when x = 8.b. Develop a 95% confidence interval for the expected value of y when x = 8.c. Estimate the standard deviation of
The data from exercise 3 follow.Develop the 95% confidence and prediction intervals when x = 12. Explain why these two intervals aredifferent.
In exercise 7, the data on y = annual sales ($1,000s) for new customer accounts and x = number of years of experience for a sample of 10 salespersons provided the estimated regression equation y = 80
In exercise 5, the following data on x = the number of defective parts found and y = the line speed (feet per minute) for a production process at Brawdy Plastics provided the estimated regression
Refer to exercise 21, where data on the production volume  and total cost y for a particular manufacturing operation were used to develop the estimated regression equation y = 1246.67 + 7.6x.a.
In exercise 12, the following data on x = average daily hotel room rate and y = amount spent on entertainment (The Waal Street Journal, August 18, 2011) led to the estimated regression equation y =
Following is a portion of the computer output for a regression analysis relating y = maintenance expense (dollars per month) to x = usage (hours per week) of a particular brand of computer
A regression model relating x, number of salespersons at a branch office, to y, annual sales at the office (in thousands of dollars), provided the following computer output from a regression analysis
Out-of-state tuition and fees at the top graduate schools of business can be very expensive, but the starting salary and bonus paid to graduates from many of these schools can be substantial. The
Automobile racing, high-performance driving schools, and driver education programs run by automobile clubs continue to grow in popularity. All these activities require the participant to wear a
Given are data for two variables, x and y.a. Develop an estimated regression equation for these data.b. Compute the residuals.c. Develop a plot of the residuals against the independent variable x. Do
The following data were used in a regression study.a. Develop an estimated regression equation for these data.b. Construct a plot of the residuals. Do the assumptions about the error term seem to
Data on advertising expenditures and revenue (in thousands of dollars) for the Four Sea-sons Restaurant follow.Advertising Expenditures Revenue1 .................. 192 .................. 324
Refer to exercise 7, where an estimated regression equation relating years of experience and annual sales was developed.a. Compute the residuals and construct a residual plot for this problem.b. Do
In 2011, home prices and mortgage rates dropped so low that in a number of cities the monthly cost of owning a home was less than renting. The following data show the average asking rent for 10
The Dow Jones Industrial Average (DJIA) and the Standard & Poor€™s 500 (S&P 500) indexes are used as measures of overall movement in the stock market. The DJIA is based on the price
The following data show Morningstar€™s Fair Value estimate and the Share Price for 28 companies. Fair Value is an estimate of a company€™s value per share that takes into account
One of the biggest changes in higher education in recent years has been the growth of online universities. The Online Education Database is an independent organization whose mission is to build a
Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should
The regional transit authority for a major metropolitan area wants to determine whether there is any relationship between the age of a bus and the annual maintenance cost. A sample of 10 buses
Reuters reported the market beta for Xerox was 1.22 (Reuter’s website, January 30, 2009). Market betas for individual stocks are determined by simple linear regression. For each stock, the
The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends upon many factors, including the model year, mileage, and condition. To investigate the
A 2012 survey conducted by Idea Works provided data showing the percentage of seats available when customers try to redeem points or miles for free travel. For each airline listed, the column labeled
You have been assigned to analyze the risk characteristics of these stocks. Prepare a report that includes but is not limited to the following items.a. Compute descriptive statistics for each stock
1. Develop numerical and graphical summaries of the data.2. Use regression analysis to investigate the relationship between the number of fatal accidents and the percentage of drivers under the age
1. Develop numerical summaries of the data.2. Using overall score as the dependent variable, develop three scatter diagrams, one using price as the independent variable, one using the number of
1. Develop numerical summaries of the data.2. Use regression analysis to develop an estimated regression equation that could be used to predict the value score given the price of the car.3. Use
The estimated regression equation for a model involving two independent variables and 10 observations follows.y = 29.1270 + .5906x1 + .4980x2a. Interpret b1 and b2 in this estimated regression
A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures.y = 25 + 10x1 + 8x2Wherex1 = inventory investment ($1,000s)x1 =
In exercise 1, the following estimated regression equation based on 10 observations was presented.y = 29.1270 + .5906x1 + .4980x2The values of SST and SSR are 6724.125 and 6216.375, respectively.a.
In exercise 3, the following estimated regression equation based on 30 observations was presented.y = 17.6 + 3.8x1 – 2.3x2 + 7.6x3 + 2.7x4The values of SST and SSR are 1805 and 1760,
In exercise 4, the following estimated regression equation relating sales to inventory investment and advertising expenditures was given.y = 25 + 10x1 + 8x2The data used to develop the model came
In exercise 1, the following estimated regression equation based on 10 observations was presented.y = 29.1270 + .5906x1 + .4980x2a. Develop a point estimate of the mean value of y when x1 = 180 and
The personnel director for Electronics Associates developed the following estimated regression equation relating an employee’s score on a job satisfaction test to his or her length of service and
In a regression analysis involving 30 observations, the following estimated regression equation was obtained.y = 17.6 + 3.8x1 – 2.3x2 + 7.6x3 + 2.7x4a. Interpret b1, b2, b3, and b4 in this
The National Football League (NFL) records a variety of performance data for individuals and teams. To investigate the importance of passing on the percentage of games won by a team, the following
PCWorld rated four component characteristics for 10 ultraportable laptop computers: features; performance; design; and price. Each characteristic was rated using a 0€“100 point scale. An
The CondÃ© Nast Traveler Gold List for 2012 provided ratings for the top 20 small cruise ships (CondÃ© Nast Traveler website, March 1, 2012). The data shown below are the
The Professional Golfers Association (PGA) maintains data on performance and earnings for members of the PGA Tour. For the 2012 season Bubba Watson led all players in total driving distance, with an
Major League Baseball (MLB) consists of teams that play in the American League and the National League. MLB collects a wide variety of team and player statistics. Some of the statistics often used to
In exercise 6, data were given on the average number of passing yards per attempt (Yds/Att), the number of interceptions thrown per attempt (Int/Att), and the percentage of games won (Win%) for a
In exercise 9, data contained in the file named PGA Driving Dist (PGA Tour website, November 1, 2012) were used to develop an estimated regression equation to predict the average number of yards per
Refer to exercise 10, where Major League Baseball (MLB) pitching statistics were reported for a random sample of 20 pitchers from the American League for the 2011 season (MLB website, March 1, 2012).
Refer to the data presented in exercise 2. The estimated regression equation for these data isy = – 218.37 + 2.01x1 + 4.74x2Here SST = 15,182.9, SSR = 14,052.2, sb1 = .2471, and sb2 = .9484.a. Test
The following estimated regression equation was developed for a model involving two independent variables.y = 40.7 + 8.63x1 + 2.71x2After x2 was dropped from the model, the least squares method was
In exercise 4, the following estimated regression equation relating sales to inventory investment and advertising expenditures was given.y = 25 + 10x1 + 8x2The data used to develop the model came
The National Football League (NFL) records a variety of performance data for individuals and teams. A portion of the data showing the average number of passing yards obtained per game on offense
The CondÃ© Nast Traveler Gold List for 2012 provided ratings for the top 20 small cruise ships (CondÃ© Nast Traveler website, March 1, 2012). The data shown below are the
In exercise 10, data showing the values of several pitching statistics for a random sample of 20 pitchers from the American League of Major League Baseball were provided (MLB website, March 1, 2012).

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