- On average, an American professional football game lasts about three hours, even though the ball is actually in play only 11 minutes (SB Nation, April 1, 2019). Assume that game times are normally
- Suppose that one in six smartphone users have fallen prey to cyber-attack. a. Discuss the sampling distribution of the sample proportion based on a sample of 200 smartphone users. Is it
- The data accompanying this exercise show miles per gallon (MPG) for a sample of 50 hybrid cars. a. State the null and the alternative hypotheses in order to test whether the average MPG differs
- The following table lists the population, in millions, in India and China, the two most populous countries in the world, for the years 2013 through 2017. a. Organize the data into a fixed-width
- The following table lists the top five countries in the world in terms of their happiness index on a 10-point scale, and their corresponding GDP per capita as reported by the United Nations in
- 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 eight are in size M,
- Apple products have become a household name in America, with the average household owning 2.6 Apple products (CNBC, October 10, 2017). Suppose that in the Midwest, the likelihood of owning an Apple
- As part of the 2010 financial overhaul, bank regulators are renewing efforts to require Wall Street executives to cut back on bonuses (The Wall Street Journal, March 5, 2019). It is known that 10 out
- It is reported that 85% of Asian, 78% of white, 70% of Hispanic, and 38% of black children have two parents at home. Suppose there are 500 students in a representative school, of which 280 are white,
- Despite the availability of several modes of transportation, including metro and ride-booking services, most people in the Washington, D.C., area continue to drive their own cars to get around (The
- Fraud detection has become an indispensable tool for banks and credit card companies to combat fraudulent credit card transactions. A fraud detection firm has detected some form of fraudulent
- New Age Solar installs solar panels for residential homes. Because of the company’s personalized approach, it averages three home installations daily. a. What is the probability that New Age
- According to the Centers for Disease Control and Prevention (CDC), the aging of the U.S. population is translating into many more visits to doctors’ offices and hospitals. It is estimated that an
- Last year, there were 24,584 age-discrimination claims filed with the Equal Employment Opportunity Commission. Assume there were 260 working days in the fiscal year for which a worker could file a
- A professional basketball team averages 105 points per game with a standard deviation of 10 points. Assume points per game follow the normal distribution. a. What is the probability that a
- Business interns from a small private college earn an average annual salary of $43,000. Let the salary be normally distributed with a standard deviation of $18,000. a. What percentage of
- A financial advisor informs a client that the expected return on a portfolio is 8% with a standard deviation of 12%. There is a 15% chance that the return would be above 16%. If the advisor is right
- Melissa Hill is a real estate agent in Berkeley, California. She wants to build a predictive model that can help her price a house more accurately. Melissa has compiled a data set in the House_Data
- The accompanying data set contains four predictor variables (x1, x2, x3, and x4) and the target variable (y). Partition the data in the Exercise_9.20_Data worksheet to develop a naïve Bayes
- According to the Mortgage Banking Association, loans that are 90 days or more past due are considered seriously delinquent (housingwire.com, May 14, 2019). It has been reported that the rate of
- Some first-time home buyers—especially millennials—are raiding their retirement accounts to cover the down payment on a home. An economist is concerned that the percentage of millennials who will
- Americans are spending an average of two hours and 37 minutes daily on smartphones and other mobile devices to connect to the world of digital information (Business Insider, May 25, 2017). The usage
- A 2012 survey by Business Week found that Massachusetts residents spent an average of $860.70 on the lottery, more than three times the U.S. average. A researcher at a Boston think tank believes that
- According to a 2018 report by CNBC on workforce diversity, about 60% of the employees in hightech firms in Silicon Valley are white and about 20% are Asian. Women, along with African Americans and
- The accompanying data file contains 20 observations on the response variable y along with the predictor variables x, d1, and d2.a. Estimate a regression model with the predictor variables x, d1, and
- Consider the following portion of data that lists the starting salaries (in $1,000) of newly hired employees and their college GPAs:a. Without transforming the values, compute the Euclidean distance
- Consider the following portion of data that lists information about an online retailer’s annual revenues (Revenue in $), the number of products available on the retailer’s website (SKUs), and the
- The accompanying data file contains 20 observations on the response variable y along with the predictor variables x and d.a. Estimate a regression model with the predictor variables x and d, and then
- Consider the following portion of data that shows vehicle information based on three variables: Type of vehicle, whether or not the vehicle has all-wheel drive (AWD), and whether the vehicle’s
- The accompanying data file contains 19 observations with two variables, x1 and x2.a. Using the original values, compute the Euclidean distance for all possible pairs of the first three
- The accompanying data file contains 10 observations with two variables, x1 and x2.a. Based on the entire data set, calculate the sample mean and standard deviation of the two variables. Using the
- The accompanying data file contains 12 observations with three variables, x1, x2, and x3.a. Based on the entire data set, calculate the sample mean and standard deviation for the three variables.
- The accompanying data file contains five observations with three categorical variables, x1, x2, and x3.a. Compute the matching coefficient for all pairwise observations.b. Identify the observations
- Consider the following portion of data that includes information about home loan applications. Variables on each application include (1) Whether the application is conventional or subsidized by
- The accompanying file contains four observations with four categorical variables, x1, x2, x3, and x4.a. Compute the matching coefficient for all pairwise observations.b. Identify the pair of
- Information is collected on university students. The variables of interest include (1) Whether a student is an undergraduate or graduate student (Level of education)(2) Whether or not the
- The accompanying file contains six observations with four binary variables, x1, x2, x3, and x4.a. Compute the matching coefficient for all pairwise observations. Identify the pair of observations
- Consider the following data that shows a portion of point of sales transactions from a local bookstore. Each binary variable indicates whether or not a particular book genre is purchased within a
- Consider the following data that show a portion of the point of sales transactions from a grocery store. Each binary variable indicates whether or not a product is purchased as part of the
- Consider the following data that show a portion of the sales transactions from a local fast-food restaurant. Each binary variable indicates whether or not a product is purchased as part of the sales
- Construct a confusion matrix using the accompanying data set that lists actual and predicted class memberships for 10 observations.
- Compute the misclassification rate, accuracy rate, sensitivity, precision, and specificity for the following confusion matrix. Actual Class Class 1 Class 0 Predicted Class 1 Predicted Class
- Compute the misclassification rate, accuracy rate, sensitivity, precision, and specificity for the following confusion matrix. Actual Class Predicted Class 1 Predicted Class 0 Class 1 Class
- Compute the misclassification rate, accuracy rate, sensitivity, precision, and specificity for the following confusion matrix. Actual Class Class 1 Class 0 Predicted Class 1 Predicted Class
- Compute the misclassification rate, accuracy rate, sensitivity, precision, and specificity for the following confusion matrix. Actual Class Class 1 Class 0 Predicted Class 1 Predicted Class
- Answer the following questions using the accompanying data set that lists the actual class memberships and predicted Class 1 (target class) probabilities for 10 observations.a. Compute the
- A mail-order catalog company has developed a classification model to predict whether a prospective customer will place an order if he or she receives a catalog in the mail. If the prospective
- Randy Johnson is an insurance adjustor for a national auto insurance company. Using historical insurance claim data, Randy has built an insurance fraud detection model with the help of a data
- Use the data in the preceding exercise.a. What is the lift that the classification model provides if 5 observations are selected by the model compared to randomly selecting 5 observations?b. What is
- Kenzi Williams is the Director of Human Resources of a high-tech company. In order to manage the high turnover rate of the IT professionals in her company, she has developed a predictive model for
- Answer the following questions using the accompanying data set that lists the actual class memberships and predicted Class 0 (nontarget class) probabilities for 10 observations.a. Compute the
- Monstermash, an online game app development company, has built a predictive model to identify gamers who are likely to make in-app purchases. The model classifies gamers who are likely to make in-app
- Use the data in the preceding exercise.a. What is the lift that the classification model provides if 5 observations are selected by the model compared to randomly selecting 5 observations?b. What is
- A real estate company has built two predictive models for estimating the selling price of a house. Using a small test data set of 10 observations, it tries to assess how the prediction models would
- Mary Grant, a marketing manager of an online retailer, has built two predictive models for estimating the annual spending of new customers. Applying the models to the 100 observations in the
- The following table displays the weights for computing the principal components and the standardized data (z-scores) for three observations.a. Compute the first principal component score for
- Perform principal component analysis on the accompanying data set.a. Use the data with the covariance matrix to compute the first two principal components. What are the weights for computing the
- Perform principal component analysis on the accompanying data set.a. Use the data with the covariance matrix and choose Smallest # components explaining at least: 85% of variance. How many principal
- The following Analytic Solver results were generated by a principal component analysis.a. How many original variables are in the data set?b. What percent of variance does the third principal
- Perform principal component analysis on the accompanying data set.a. Use the data with the covariance matrix to compute the seven principal components. How many principal components do you need to
- The following R results were generated by a principal component analysis.a. How many original variables are in the data set?b. What percent of variance does the third principal component account
- Standardize the accompanying data set, and then perform principal component analysis.a. What percent of total variance is accounted for by the first three principal components?b. What are the weights
- Standardize the accompanying data set, and then perform principal component analysis.a. How many principal components do you need to account for at least 80% of the total variance?b. What are the
- The accompanying data set contains some economic indicators for 11 African countries collected by the World Bank in 2015. The economic indicators include annual % growth in agriculture (Agriculture),
- Perform principal component analysis on the accompanying data set.a. Use standardized data to compute the principal components. Select the number of principal components that account for at least 80%
- Beza Gordon-Smith is a high school senior in northern California who loves watching football. She keeps track of football results and statistics of the quarterbacks of each high school team. The
- Ben Derby is a scout for a college baseball team. He attends many high school games and practices each week in order to evaluate potential players to recruit during each college recruitment season.
- Internet addiction has been found to be a widespread problem among university students. A small liberal arts college in Colorado conducted a survey of Internet addiction among its students using the
- Jenny, a first-year Nutrition Studies student at Hillside College, is conducting research on various common food items and their nutritional facts. She compiled a data set that contains the nutrition
- Since 2014, the United Nations has conducted annual studies that measure the level of happiness among its member countries. Experts in social science and psychology are commissioned to collect
- In tennis, how well a player serves and returns serves often determine the outcome of the game. Coaches and players track these numbers and work tirelessly to make improvement. The accompanying table
- Investors usually consider a variety of information to make investment decisions. The accompanying table displays a sample of large publicly traded corporations and their financial information.
- Every year, millions of high school students apply and vie for acceptance to a college of their choice. For many students and their parents, this requires years of preparation, especially for those
- The accompanying file contains 60 observations with the binary target variable y along with the predictor variables x1 and x2. a. Perform KNN analysis. What is the optimal value of k? b.
- The accompanying file contains 111 observations with the binary target variable y along with the predictor variables x1, x2, x3, and x4. a. Perform KNN analysis on the data set. What is the
- The accompanying file contains 80 observations with the binary target variable y along with the predictor variables x1, x2, x3, and x4. a. Perform KNN analysis on the data set. What is the
- The accompanying file contains 200 observations with the binary target variable y along with the predictor variables x1, x2, x3, x4, and x5. a. Perform KNN analysis on the data set. What is the
- The accompanying file contains 1,000 observations with the binary target variable y along with the predictor variables x1, x2, and x3. a. Perform KNN analysis on the data set. What is the
- The accompanying file contains 2,000 observations with the binary target variable y along with the predictor variables x1, x2, and x3.a. Perform KNN analysis on the data set. What is the optimal
- The accompanying file contains 400 observations with the binary response variable y along with the predictor variables x1, x2, x3, and x4.a. Perform KNN analysis on the data set. What is the optimal
- A social media marketing company is conducting consumer research to see how the income level and age might correspond to whether or not consumers respond positively to a social media campaign. Aliyah
- Universities often rely on a high school student’s grade point average (GPA) and scores on the SAT or ACT for the college admission decisions. Consider the data for 120 applicants on college
- Law enforcement agencies monitor social media sites on a regular basis, as a way to identify and assess potential crimes and terrorism activities. For example, certain keywords on Facebook pages are
- The Chartered Financial Analyst (CFA) designation is the de facto professional certification for the financial industry. Employers encourage their prospective employees to complete the CFA exam.
- Daniel Lara, a human resources manager at a large tech consulting firm, has been reading about using analytics to predict the success of new employees. With the fast-changing nature of the tech
- Peter Derby works as a cyber security analyst at a private equity firm. His colleagues at the firm have been inundated by a large number of spam e-mails. Peter has been asked to implement a spam
- Online retailers often use a recommendation system to suggest new products to consumers. Consumers are compared to others with similar characteristics such as past purchases, age, income, and
- In recent years, medical research has incorporated the use of data analytics to find new ways to detect heart disease in its early stage. Medical doctors are particularly interested in accurately
- College admission is a competitive process where, among other things, the SAT and high school GPA scores of students are evaluated to make an admission decision. The accompanying data set contains
- The following table contains three variables and five observations with some missing values.a. Handle the missing values using the omission strategy. How many observations remain in the data set and
- The accompanying data set contains four variables, x1, x2, x3, and x4.a. Subset the data set to include only observations that have a date on or after May 1, 1975, for x3. How many observations are
- The accompanying data set contains five variables, x1, x2, x3, x4, and x5. There are missing values in the data set.a. Which variables have missing values?b. Which observations have missing values?c.
- The accompanying data set contains five variables, x1, x2, x3, x4, and x5. There are missing values in the data set. Handle the missing values using the simple mean imputation strategy for numerical
- The accompanying data set contains five variables, x1, x2, x3, x4, and x5.a. Are there missing values for x1? If so, impute the missing values using the mean value of x1. After imputation, what is
- The accompanying data set contains five variables, x1, x2, x3, x4, and x5. There are missing values in the data set.a. Which variables have missing values?b. Which observations have missing values?c.
- The accompanying data set contains four variables, x1, x2, x3, and x4. There are missing values in the data set.a. Subset the data set to include only x1, x2, and x3.b. Which variables have missing
- The accompanying data set contains seven variables, x1, x2, x3, x4, x5, x6, and x7. There are missing values in the data set.a. Remove variables x2, x6, and x7 from the data set. Which of the
- The US Census Bureau records the population for the 50 states each year. The accompanying table shows a portion of these data for the years 2010 to 2018.a. Create two subsets of the state population
- Jerry Stevenson is the manager of a travel agency. He wants to build a model that can predict whether or not a customer will travel within the next year. He has compiled a data set that contains the
- Refer to the previous exercise for a description of the problem and data set.a. Based on his past experience, Jerry knows that whether the individual has a credit card or not has nothing to do with