Questions and Answers of Business Statistics Communicating

The accompanying data file contains quarterly data on weekly earnings (Earnings, adjusted for inflation) in the U.S. For cross-validation, let the training and the validation sets comprise the
The accompanying data file contains monthly data on housing starts (in 1,000s) in the U.S. For cross-validation, let the training and the validation sets comprise the period from Jan-11 to Dec-16 and
The accompanying data file contains annual population data (in millions) for Japan from 1960 to 2017. For cross-validation, let the training and the validation sets comprise the periods from 1960 to
The accompanying data file contains 57 months of tax revenue from medical and retail marijuana tax and fee collections. For cross-validation, let the training and the validation sets comprise the
The accompanying data file contains daily sales (in $) at Café Venetian for 100 days. For cross-validation, let the training and the validation sets comprise the first 80 days and the last 20 days,
The accompanying data file contains 53 weeks of Apple’s stock price data. For cross-validation, let the training and the validation sets comprise the first 40 weeks and the last 13 weeks,
The accompanying data file contains quarterly data on expenses (in $1,000s) over five years. For cross-validation, let the training and the validation sets comprise the periods from 2008:01 to
Peter plans to invest $25,000 in a mutual fund whose annual returns are normally distributed with a mean of 7.4% and standard deviation of 2.65%. Use Analysis ToolPak or R, both with a seed of 1, to
Monthly demand for a 60" TV at a local appliance store is normally distributed with a mean of 11 units and standard deviation of 4.17 units. Use Analysis ToolPak or R, both with a seed of 1, to
Every Saturday morning between 9:00 am and 10:00 am, customers, on average, arrive at a local coffee shop every 1.2 minutes, and the customer arrival follows an exponential distribution. Use Analysis
On average, a smartphone battery lasts about 6.5 hours with normal usage. The smartphone battery life follows an exponential distribution. Use Analysis ToolPak or R, both with a seed of 1, to
A manufacturer of a smartphone battery estimates that monthly demand follows a normal distribution with a mean of 400 units and standard deviation of 26. Material cost is uniformly distributed
Consider the following LP problem where x1 and x2 represent the decision variables. Solve the LP problem to answer the following questions. a. What are the values of x1 and x2 at the
Consider the following LP problem. where x1 and x2 represents the decision variables. Solve the LP problem to answer the following questions. a. What are the values of x1 and x2 at the
Consider the following LP problem. where x1, x2, and x3 represent the decision variables. Solve the LP problem to answer the following questions. a. What are the values of x1, x2, and x3 at
Consider the following LP problem where x1, x2, and x3 represent the decision variables. Solve the LP problem to answer the following questions. a. What are the values of x1, x2, and x3 at
Big Sur Taffy Company makes two types of candies: salt water taffy and special home-recipe taffy. Big Sur wants to use a more quantitative approach to decide how much salt water and special taffy to
A French vineyard in the Chablis region uses Chardonnay grapes to make Chardonnay wine and Blanc de Blancs blended champagne. To produce 1 liter of wine, the vineyard uses about 8 kilograms of
Calcium and vitamin D are some of the most essential nutrients for bone health. According to the Institute of Medicine, an average adult should have in his or her daily diet 1,000 mg of calcium and
A renowned chocolatier, Francesco Schröeder, makes three kinds of chocolate confectionery: artisanal truffles, handcrafted chocolate nuggets, and premium gourmet chocolate bars. He uses the highest
CaseInPoint is a start-up company that makes ultra-slim, protective cases in stylish bold colors for a highly popular smartphone with two models: a large MÒR model and a BEAG model. CaseInPoint uses
Many vitamin C products are made from ascorbic acid, which is derived from corn. A small dietary supplement company makes two types of vitamin C supplements: capsules and chewable tablets. To produce
A rancher has a six-year old pony that weighs about 180 pounds. A pony of this age and size needs about 6.2 Mcal of digestible energy, 260 grams of protein, and 9,700 IU of vitamin A in her daily
Consider the following IP problem.where x1, x2, and x3 represent the decision variables. Solve the IP problem to answer the following questions. a. What are the values of x1, x2, and x3 at the
Consider the following IP problem.where xij represent the decision variables. Solve the IP problem to answer the following questions. a. What are the values of xij at the optimal
An online apparel retailer runs regular marketing campaigns on social media channels. The retailer is considering four social media marketing campaigns on Facebook, Instagram, Pinterest, and Twitter
Akkadian Capital, a real estate investment firm, owns five apartment buildings around a four-year college campus. The five buildings need significant repairs and renovation, and each renovation
A microbrewery company in Portland, Oregon, operates two breweries that supply its popular craft beer to five local restaurants. The first brewery can produce 56 barrels of craft beer per week, and
An electric car company owns two facilities that manufacture and supply high-capacity lithium-ion batteries to three vehicle assembly plants. The first battery facility can produce and ship up to
Peter has $30,000 to invest in a mutual fund whose annual returns are normally distributed with a mean of 5% and standard deviation of 4.2%. a. Use Analysis ToolPak or R, both with a seed of 1,
An amusement park has a roller coaster that can accommodate up to 45 park goers per ride, and each ride lasts about 20 minutes. For each hour, the park gives out 200 tickets for the ride, and on
Following an exponential distribution, the average lifespan of a smartphone battery is 2.3 years. The battery manufacturer wants to offer a warranty for its customers to receive a free replacement if
At a local appliance store, weekly demand for a large screen TV during the week prior to the Super Bowl is normally distributed with a mean of 35 units and standard deviation of 12 units. The store
Each week, a grocery store purchases eggs from a local ranch for $1.99 for each 12-egg carton and sells it for $3.89. Any cartons not sold within a week will be on “manager’s special” sales or
The accompanying data file contains 20 observations on the response variable y along with the predictor variables x1 and x2.a. Estimate a regression model with the predictor variables x1 and x2, and
Silicon Valley tech companies are under pressure to increase diversity as most of their employees are white and Asian men (Bloomberg, August 16, 2017). Black and Hispanic people, especially women,
In a recent survey, ice cream truck drivers in Cincinnati, Ohio, reported that they make about $280 in income on a typical summer day. The income was generally higher on days with longer work hours,
A manufacturing manager uses a dexterity test on 120 current employees in order to predict watch production based on time to completion (in seconds) and a Male dummy variable. A portion of the data
Brendan Connolly manages the human resource division of a high-tech company. He has access to the salary information of 300 sales reps along with their age, sex (Female), and the net promoter score
Jonah has worked as an agent for rental properties in Cincinnati, Ohio, for almost 10 years. He understands that the premium for additional bedrooms is more in larger as compared to smaller homes.
With college costs and student debt on the rise, the choices that families make when searching for and selecting a college have never been more important. Consider the information from 116 colleges
According to the World Health Organization, the health of an individual, to a large extent, is determined by factors such as income, education, genetics, and social connections. In a survey, 120
It is often claimed that the SAT is an important indicator of the grades students will earn in the first year of college. The admission officer at a state university wants to analyze the relationship
Consider a linear regression model where y represents the response variable and x1 and x2 are the predictor variables. A regression model with x1, x2, and x1x2, where x1x2 is the interaction
Create a sample report to analyze admission and enrollment decisions at the school of arts & letters in a selective four-year college in North America. For predictor variables, include the
Consider a linear regression model where y represents the response variable and x, d1, and d2 are the predictor variables. Both d1 and d2 are dummy variables, each assuming values 1 or 0. A
The consumption function is one of the key relationships in economics, where consumption is a function of disposable income. The accompanying table shows a portion of quarterly data for average U.S.
Like books and stories, television not only entertains, it also exposes a child to new information about the world. While watching too much television is harmful, a little bit may actually help.
A researcher from the Center for Equal Opportunity wants to determine if SAT scores of admitted students at a large state university differed by ethnicity. She collects data on SAT scores and ethnic
A government researcher is analyzing the relationship between retail sales (in $ millions) and the gross national product (GNP in $ billions). He also wonders whether there are significant
Consider a regression model that links a CEO’s compensation (in $ millions) with the total assets of the firm (in $ millions) and the firm’s industry. Dummy variables are used to represent four
While the Federal Reserve controls short-term interest rates, long-term interest rates essentially depend on supply/demand dynamics, as well as longer-term interest rate expectations. In order to
Caterpillar, Inc., manufactures and sells heavy construction equipment worldwide. The performance of Caterpillar’s stock is likely to be strongly influenced by the economy. For example, during the
It is generally believed that the wealthier a student’s family, the higher the student’s Scholastic Aptitude Test (SAT) score. Another commonly used predictor for SAT scores is the student’s
In order to determine if the homeownership rate in the U.S. is linked with income, state level data on the homeownership rate (Ownership in %) and median household income (Income in $) were
Is it defense or offense that wins football games? Consider the following portion of data, which includes a team’s winning record (Win in %), the average number of yards gained, and the average
For a large restaurant chain, a financial analyst uses the following model to estimate a franchise’s net profit: y = β0 + β1x1 + β2x2 + ɛi, where y is net profit, x1 is counter sales, and x2 is
The director of college admissions at a local university is trying to determine whether a student’s high school GPA or SAT score is a better predictor of the student’s subsequent college GPA. She
American football is the highest-paying sport on a per-game basis. Given that the quarterback is considered the most important player on the team, he is typically well-compensated. A sports
A president of a large chain of fast-food restaurants collects data on 100 franchises.a. Estimate the model: y = β0 + β1x1 + β2x2 + ɛ where y is net profit, x1 is counter sales, and x2 is drive
The consumption function, first developed by John Maynard Keynes, captures one of the key relationships in economics. It expresses consumption as a function of disposable income, where disposable
A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portion
Develop a predictive model for the price of a house in the college town of Ames, Iowa. Before evaluating various models, you first have to filter out the House Price data to get the appropriate
The data accompanying this exercise show the average monthly debt payments (Debt, in $) for residents of 26 metropolitan areas. a. State the null and the alternative hypotheses in order to test
A police officer is concerned about speeds on a certain section of Interstate 90. The data accompanying this exercise show the speeds of 40 cars on a Saturday afternoon. a. The speed limit on
Based on the average predictions of 45 economists, the U.S. gross domestic product (GDP) will expand by 2.8% this year. Suppose the sample standard deviation of their predictions was 1%. At the 5%
This past year, home prices in the Midwest increased by an average of 6.6%. A Realtor collects data on 36 recent home sales in the West. He finds an average increase in home prices of 7.5% with a
In a survey of 1,116 adults, 47% approved of the job that President Trump was doing in handling the economy (Opinion Today, July 1, 2019). a. Compute the 90% confidence interval for the
A survey of 1,026 people were asked about what they would do with an unexpected cash gift. Forty-seven percent responded that they would pay off debts. a. With 95% confidence, what is the margin
The monthly closing stock price for a large technology firm for the first six months of the year are reported in the following table. Month
Suppose that a study finds that 33% of teenagers text while driving. The study was based on 100 teen drivers. a. Discuss the sampling distribution of the sample proportion. b. What is the
A 2019 Pew Research study finds that the number of undocumented immigrants living in the United States has dropped to the level it was in 2004. While its share has declined, California still accounts
Suppose that the typical college student graduates with $28,650 in debt. Let debt among recent college graduates be normally distributed with a standard deviation of $7,000. a. What is the
According to a 2018 paper released by the Economic Policy Institute, a nonprofit, nonpartisan think tank in Washington, D.C., income inequality continues to grow in the United States. Over the years,
Researchers from leading universities have shown that divorces are contagious (Chicago Tribune, August 16, 2018). A split-up between immediate friends increases a person’s own chances of getting
According to the Census Bureau projections, Hispanics will comprise 28.6% of the total population in 2060 (CNN, March 6, 2019). For comparison, they comprised just 18.1% of the total population in
As of 2018, 30% of Americans have confidence in U.S. banks, which is still below the pre-recession level of 41% reported in June 2007 (www.gallup.com, June 28, 2018). a. What is the probability
Fraud detection has become an indispensable tool for banks and credit card companies to combat fraudulent credit card transactions. A fraud detection firm raises an alarm on 5% of all transactions
Professor Lang is a professor of economics at Salem State University. She has been teaching a course in Principles of Economics for over 25 years. Professor Lang has never graded on a curve because
The accompanying data file shows the annual return (in %) for Fidelity’s Technology and Energy mutual funds from 1982 through 2018. a. Construct a boxplot for the Technology variable. Does the
The accompanying data file shows the average price of gas (Price in $ per gallon) for the 50 states during January 2019. a. Construct a boxplot for the Price variable. Does the boxplot suggest
The accompanying data file shows the average monthly debt payments (Debt in $) for residents of 26 metropolitan areas. a. Construct a boxplot for the Debt variable. Does the boxplot suggest that
The accompanying data file shows the annual expenditures (Expenditures in $) for 100 Amazon Prime customers. a. Construct a boxplot for the Expenditures variable. Does the boxplot suggest that
On average, an American professional football game lasts about three hours, even though the ball is actually in play only 11 minutes. Assume that game times follow a bell-shaped distribution and that
The historical returns on a portfolio had an average return of 8% and a standard deviation of 6%. Assume returns on the portfolio follow a bell-shaped distribution. Use the empirical rule to answer
A sample of the salaries of assistant professors on the business faculty at a local university revealed a mean income of $100,000 with a standard deviation of $10,000. Assume that salaries follow a
Consider the following five-point summary for a variable that was obtained using 500 observations a. Interpret Q1 and Q3.b. Calculate the interquartile range. Determine whether any outliers
Consider the following boxplot.a. Does the boxplot indicate possible outliers in the data?b. Comment on the skewness of the underlying distribution 1.5 IQR 1.5 IQR
Consider the following boxplot.a. Does the boxplot indicate possible outliers in the data?b. Comment on the skewness of the underlying distribution. 1.5 IQR 1.5 IQR
Many attempts have been made to relate happiness with various factors. A 2018 study in the Journal of Happiness relates happiness with age and finds that holding everything else constant, people are
The accompanying data file shows life expectancies (in years) and obesity rates (in %) for the 50 states and the District of Columbia. Calculate and interpret the correlation coefficient.
The accompanying table shows a portion of the annual returns (in %) for a technology mutual fund and an energy mutual fund from 1982 through 2018.a. Which fund had the higher average return?b. Which
The accompanying data file shows midterm and final grades for 32 students. Calculate and interpret the correlation coefficient.
The accompanying table shows a portion of the annual returns (in %) for a mutual fund focusing on investments in Latin America and a mutual fund focusing on investments in Canada from 1994 through
Refer to the previous exercise for a description of the data. a. The skewness and (excess) kurtosis coefficients for the Latin America fund are 0.3215 and −0.7026, respectively. Interpret
Monthly stock prices (in $) for Firm A and Firm B are collected for five years. A portion of the data is shown in the accompanying table. a. Calculate the mean, the variance, and the standard
Many environmental groups and politicians are suggesting a return to the federal 55-mile-per-hour (mph) speed limit on America’s highways. They argue that not only will a lower national speed limit
Refer to the previous exercise for a description of the data. a. The skewness and (excess) kurtosis coefficients for monthly rent are 1.0198 and 0.4790, respectively. Interpret these
The following table shows a portion of the monthly rent and square footage for 40 rentals in a large college town.a. Calculate the mean and the standard deviation for monthly rent.b. Calculate the
The following table lists a portion of the average price (in $) for a gallon of gas for the 50 states and the District of Columbia as reported by AAA Gas Prices on January 2, 2019. a. Find the

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