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business statistics communicating

Business Statistics 10th Global Edition David Groebner, Patrick Shannon, Phillip Fry - Solutions

The manager at the Sacramento, California, airport recently conducted a study of passengers departing from the airport. A random sample of 100 passengers was selected. The data are in the file called Airline Passengers. An earlier study showed the following usage by airline:Delta 20%Horizon
A 2015 study done by the Employee Benefit Research Institute (EBRI) found about 22% of workers said they and/or their spouses were very confident that they are saving enough for retirement. The file titled Retirement contains the total savings and investments. Use a contingency analysis and an
A bus company received several complaints on their bus service regarding the punctuality of the buses departing from certain locations. To investigate the issue, the company collected data on punctuality of buses departing from four different locations. The data are listed in the following
A study commissioned by the Missouri Traffic Safety Commission was conducted to determine if the proportion of adults who have been in an auto accident in the past three years is related to the age of the driver.Based on the following data, conduct the appropriate goodness-of-fit test using a
The housing crisis and lack of spending on roads and railways is leading to longer commutes for workers.The number of workers who commute daily for more than an hour has increased by a third in five years. A survey was conducted in a city on the number of reports claimed by the commuter who spends
Obesity is one of the biggest health problems in the world and it accounts for the death of millions of people every year. It causes diseases such as diabetes, cardiovascular disease, cancer, stroke, dementia, and various others. To find a solution for this health issue, a random selection of 50
A regional cancer treatment center has had success treating localized cancers with a linear accelerator.Whereas admissions for further treatment nationally average 2.1 per patient per year, the center’s director thinks that readmissions with the new treatment are Poisson distributed, with a mean
The College Bookstore has four checkout stands. The store manager noticed that registers 3 and 4 served fewer students than registers 1 and 2. She is not sure whether the layout of the store channels customers into these registers, whether the checkout clerks in these lines are simply slower than
A 2 * 2 contingency table and a hypothesis test of the difference between two population proportions can be used to analyze the same data set. However, besides all the similarities of the two methods, the hypothesis test of the difference between two proportions has two advantages. Identify these
One of the topics in Chapter 10 was hypothesis testing for the difference between two population proportions.For the test to have validity, conditions were set on the sample sizes with respect to the sample proportions.A 2 * 2 contingency table may also be utilized to test the difference between
Referring to Exercise 13-33, can the quality manager conclude that the type of warranty problem is independent of the shift on which the alarm was manufactured? Test using a significance level of 0.05.Discuss your results.
ECCO (Electronic Controls Company) makes backup alarms that are used on such equipment as forklifts and delivery trucks. Suppose the quality manager performed a study involving a random sample of 110 warranty claims. One of the questions the manager wanted to answer was whether there is a
Suppose that a survey was mailed to a random sample of 400 guests of a national hotel chain. A total of 62 customers responded to the survey. Among the issues of interest was whether there is a relationship between the likelihood that customers will stay at the chain again and whether this was the
According to the Huffington Post, approximately 10%of the population of Europe and North America is lefthanded(source: Katie Kens, “11 Little-known facts about left-handers,” www.huffingtonpost.com, Aug. 13, 2015). Suppose a survey of 501 randomly selected men and women at a midwestern
An article in USA TODAY reported on a study conducted by Daniel Vinson on the relationship between anger and propensity to be injured (source: Steve Sternberg, “Study: Angry people are a danger to themselves,” http://usatoday30.usatoday.com, Feb. 5, 2006). Suppose the file titled Angry contains
The Barclaycard Business Travel Survey is conducted annually. One question asked in two consecutive years was, “Have you considered reducing hours spent away from home to increase quality of life?” The following table represents the responses:Year 1 Year 2 Total Yes—have reduced 400 384 784
An online undergraduate business school uses a learning management software system (LMS) that allows instructors to know how many hours students are connected to the course website. When studying for the midterm exam, students have a choice of using two study guides. One study guide comes with the
A random sample of 980 heads of households was taken from the customer list for State Bank and Trust.Those sampled were asked to classify their own attitudes and their parents’ attitudes toward borrowing money as follows:A: Borrow only for real estate and car purchases B: Borrow for short-term
A local appliance retailer handles four washing machine models for a major manufacturer: standard, deluxe, superior, and XLT. The marketing manager has recently conducted a study on the purchasers of the washing machines. The study recorded the model of appliance purchased and the credit account
The following table classifies a stock’s price change as up, down, or no change for both today’s and yesterday’s prices. Price changes were examined for 100 days. A financial theory states that stock prices follow what is called a “random walk.” This means, in part, that the price change
To determine if there is a difference between the investing preferences of mid-level managers working in the public and private sectors in an eastern city, a random sample of 320 public-sector employees and 380 private-sector employees was taken. Suppose the sampled participants were asked about
An instructor in a large accounting class is interested in determining whether the grades that students get are related to how close to the front of the room the students sit. He has categorized the room seating as “Front,”“Middle,” and “Back.” The following data were collected over two
A loan officer wished to determine if the marital status of loan applicants was independent of the approval of loans.The following table presents the results of her survey:Approved Rejected Single 213 189 Married 374 231 Divorced 358 252a. Conduct the appropriate hypothesis test that will provide
A marketing research firm is conducting a study to determine if there is a relationship between an individual’s age and the individual’s preferred source of news. The research firm asked 1,000 individuals to list their preferred source for news: newspaper, radio and television, or the Internet.
A manufacturer of sports drinks has randomly sampled 198 men and 202 women. Each sampled participant was asked to taste an unflavored version and a flavored version of a new sports drink currently in development.The participants’ preferences are shown in the table.Flavored Unflavored Men 101 97
Use the following contingency table for this exercise:C1 C2 R1 51 207 R2 146 185 R3 240 157a. State the relevant null and alternative hypotheses.b. Calculate the expected values for each of the cells.c. Compute the chi-square test statistic for the hypothesis test.d. Determine the appropriate
A contingency analysis table has been constructed from data obtained in a phone survey of customers in a market area in which respondents were asked to indicate whether they owned a domestic or foreign car and whether they were a member of a union or not.The following contingency table is
The billing department of a national cable company accepts payment in one of four ways: in person at a local office, by mail, by credit card, or by electronic funds transfer from a bank account. The cable company randomly sampled 400 customers to determine if there is a relationship between the
A university recently completed a study to determine whether the number of classes students dropped during their college course work was related to whether the student lived on campus or commuted. The following data were collected:Where Lived Courses Dropped Commuted On Campus 0 70 90 1 60 50 2 45
Drivers who use the bridges in the San Francisco area have the option of paying the tolls using a system called FasTrak (source: “All electronic tolling on the Golden Gate Bridge,” www.bayareafastrak.org). Suppose the regional transportation director is interested in increasing the percentage
Ellison Mechanical manufactures automatic shutoff valves that can prevent extensive water damage from plumbing failures. The valves contain sensors that cut off water flow in the event of a leak, thereby preventing flooding. One important characteristic is the time (in milliseconds) required for
Again, working with the data in Exercise 13-11, the number of cars that arrive in each 10-minute period is a factor that will determine whether Big Boy has the capacity to handle the drive-thru business. In addition to studying the service times, the owners counted the number of cars that arrived
It has been reported that revenues at Disneyland and Disney World have been increasing faster than attendance, which means it costs more to spend time in the Magic Kingdom (source: Jason Garcia, “Disney parks visitor spending is growing faster than attendance,”Orlando Sentinel,
The owners of Big Boy Burgers are considering remodeling their facility to include a drive-thru window.A key factor in determining how to design the drivethru is the distribution of customer service times. The Big Boy owners have received service time data from a similar operation in another city.
The dean of the Faculty of Business would like to investigate the marks distribution for all the modules in her business program. Due to students’ feedback, she found that students found the calculation modules difficult. So she picked business statistics as her first module to be investigated.
The Baltimore Steel and Pipe Company recently developed a new pipe product for a customer.According to specifications, the pipe is supposed to have an average outside diameter of 2.00 inches with a standard deviation equal to 0.10 inch, and the outside diameters are to be normally
Suppose that managers of a major book publisher believe that the occurrence of typographical errors in the books the company publishes is Poisson distributed with a mean of 0.2 per page. Because of some customer quality complaints, the managers have arranged to conduct a test to determine if the
The loan manager at a New York City branch bank keeps track of the number of loan applicants who visit his branch’s loan department per week. Having enough loan officers available is one of the ways of providing excellent service. Over the last year, the loan manager accumulated the following
Data collected from a hospital emergency room reflect the number of patients per day that visited the emergency room due to cardiac-related symptoms.Suppose it is believed that the number of cardiac patients entering the emergency room per day over a two-month period has a Poisson distribution with
An experiment is run that is claimed to have a binomial distribution with p = 0.15 and n = 18, and the number of successes is recorded. The experiment is conducted 200 times with the following results:Number of Successes 0 1 2 3 4 5 Observed Frequency 80 75 39 6 0 0 Using a significance level of
A chi-square goodness-of-fit test will be conducted to test whether a population is normally distributed. No statement has been made regarding the value of the population mean and standard deviation. A frequency distribution has been formed based on a random sample of 1,000 values. The frequency
Based on the sample data in the following frequency distribution, conduct a test to determine whether the population from which the sample data were selected is Poisson distributed with mean equal to 6. Test using a = 0.05.x Frequency x Frequency 2 or less 7 9 53 3 29 10 35 4 26 11 28 5 52 12 18 6
A large retailer receives shipments of batteries for consumer electronic products in packages of 50 batteries. The packages are held at a distribution center and are shipped to retail stores as requested. Because some packages may contain defective batteries, the retailer randomly samples 400
An investigation into the effects of various levels of nitrogen conducted by a the agricultural department at a state university addressed the pounds per acre of nitrogen required to produce certain yield levels of corn on fields that had previously been planted with other crops. Suppose the data
Although retail store scanners can save customers a great deal of time, scanners sometimes misread an item’s price code. Before investing in one of three new systems, a store would like to determine if there is a difference in scanner accuracy. To investigate possible differences in scanner
Gordon Manufacturing produces golf balls. Recently, Gordon developed a golf ball made from a space-age material. This new golf ball promises greater distance off the tee. To test Gordon Manufacturing’s claim, a test was set up to measure the average distance of four different golf balls (the New
A manufacturer of tortilla chips has recently developed a new product, a blue corn tortilla chip. The manufacturer has arranged with a regional supermarket chain to display the chips at the end of the aisle at four different locations in stores that have had similar weekly sales in snack foods. The
A senior analyst working for a stock brokerage firm has reviewed purchases his customers have made over the last six months. He has categorized the mutual funds purchased into eight categories: (1) Aggressive Growth (AG), (2) Growth (G), (3) Growth-Income (G-I),(4) Income Funds (IF), (5)
Many people rely on local accountants to handle their tax work. A local television station, which prides itself on doing investigative reporting, decided to do a study to determine the extent to which tax errors are made by the accounting firms.The station selected eight people to have their taxes
The Promise Seed Co. is owned by Tim Carlton Jr. One of Promise’s most demanded seeds is corn. Promise continues to increase production to meet the growing demand. To this end, it conducts an experiment such as the one presented here to determine the combination of fertilizer and seed type that
Your company provides computers, printers, and Internet service to a number of engineers and programmers so that they can telecommute from home.Because of the cost of name-brand printer replacement cartridges, several companies have entered the secondary market. You are currently considering offers
In any of the multiple comparison techniques (Tukey-Kramer, LSD), the estimate of the within-sample variance uses data from the entire experiment. However, if one were to do a two-sample t-test to determine if there were a difference between any two means, the estimate of the population variances
As part of a class project, students chose beers and obtained the sodium content from the labels on the bottle or can. The file titled Sodium contains the amounts of sodium (mg) found in 12 fluid ounces of beer produced by the four major producers: Anheuser-Busch Inc., Miller Brewing Co., Coors
The Iams Company sells dog and cat foods (dry and canned) in countries throughout the world. Suppose that one of the company’s dry dog food products comes in five formulas. One of the ingredients is of particular importance: crude fat. To discover if there is a difference in the average
Assume that a psychologist conducted a study to determine whether there are differences between the ability of history majors and mathematics majors to solve various types of puzzles. Twenty-five mathematics majors and 25 history majors were randomly selected from the students at a liberal arts
Mt. Jumbo Plywood Company makes plywood for use in furniture production. The first major step in the plywood process is peeling the logs into thin layers of veneer. Ideally, when a log is reduced to a 4-inch core diameter, the lathe releases the core and a new log is loaded onto the lathe. However,
A popular consumer food item was displayed in different locations in the same aisle of a grocery store to determine what, if any, effect different placements might have on its sales. The product was placed at one of three heights on the aisle—low, medium, and high—and at one of three locations
The Lanier Company produces a single product on three production lines that use different equipment.The production manager is considering changing the layouts of the lines and would like to know what effects different layouts would have on production output. Suppose that the manager measured the
Suppose that a national health club chain investigated how many pounds heavier club members were than their perceived ideal weight. It investigated whether these perceptions differed among different regions of the country and gender of the respondents. The following data (pounds) reflect the survey
A two-factor experiment yielded the following data:Factor A Factor B Level 1 Level 2 Level 3 Level 1 375 402 395 390 396 390 Level 2 335 336 320 342 338 331 Level 3 302 485 351 324 455 346a. Determine if there is interaction between Factor A and Factor B. Use the p-value approach and a significance
Consider the following partially completed two-factor analysis of variance table, which is an outgrowth of a study in which Factor A has four levels and Factor B has three levels. The number of replications was 11 in each cell.Source of Variation SS df MS F-ratio Factor A 345.1 4 Factor B 28.12 AB
Consider the following data for a two-factor experiment:Factor A Factor B Level 1 Level 2 Level 3 33 30 21 Level 1 31 42 30 35 36 30 23 30 21 Level 2 32 27 33 27 25 18a. Based on the sample data, do Factors A and B have significant interaction? State the appropriate null and alternative hypotheses
Examine the following two-factor analysis of variance table:Source SS df MS F-ratio Factor A 162.79 4 Factor B 28.12 AB Interaction 262.31 12 Error _______ __ Total 1,298.74 84a. Complete the analysis of variance table.b. Determine if interaction exists between Factor A and Factor B. Use a =
Consider the following data from a two-factor experiment:Factor A Factor B Level 1 Level 2 Level 3 Level 1 43 25 37 49 26 45 Level 2 50 27 46 53 31 48a. Determine if there is interaction between Factor A and Factor B. Use the p-value approach and a significance level of 0.05.b. Does the average
Students in a business statistics class were asked to do a project in which a “market basket” of food products was selected at random from those items offered in three grocery stores in Boise, Idaho:Walmart, WinCo, and Albertsons. At issue was whether the mean prices at the three stores are
Although natural fibers like manila, sisal, and cotton were once the predominant rope materials, industrial synthetic fibers dominate the marketplace today, with most ropes made of nylon, polyester, or polypropylene.One of the principal traits of rope material is its breaking strength. Assume that
In a local community, there are three grocery chain stores. A local news station recently sent a reporter to the three stores to check prices on several items. She found that each store had the lowest price for certain specific items. The station set up a test in which 20 shoppers were given a list
Applebee’s International, Inc., is the largest chain of casual dining restaurants in the country, with more than 2,000 restaurants across the United States (source:Applebees.com). Suppose the company is interested in determining if mean weekly revenues differ among three restaurants in a
Assume that a large accounting firm provides auditing training for its employees in three different auditing methods. Auditors were grouped into four blocks according to the education they had received: (1) high school, (2) bachelor’s, (3) master’s, and (4) doctorate.Three auditors at each
D&G Industries operates three shifts every day of the week. Each shift includes full-time hourly workers, nonsupervisory salaried employees, and supervisors/managers. D&G Industries would like to know if there is a difference among the shifts in terms of the number of hours of work missed due to
Suppose the California Lettuce Research Board conducted a study that followed a randomized complete block design where variety of lettuce (Salinas and Sniper) was the main factor and salinity levels(SAR) were the blocks. The measurements (the number of lettuce heads from each plot) of the kind
The Goodson Company manufactures four different products that it ships to customers throughout Canada.Breakage cost is very expensive, and Goodson would like to select a mode of delivery that reduces the amount of product breakage. The managers have decided to examine the dollar amounts of breakage
A randomized complete block design is carried out, resulting in the following statistics:Source x1 x2 x3 x4 Primary Factor 237.15 315.15 414.01 612.52 Block 363.57 382.22 438.33 SST = 364,428a. Determine if blocking was effective for this design.b. Using a significance level of 0.05, produce the
The following sample data were recently collected in the course of conducting a randomized block analysis of variance. Based on these sample data, what conclusions should you reach about blocking effectiveness and about the means of the three populations involved? Test using a significance level
The following ANOVA table and accompanying information are the result of a randomized block ANOVA test.Summary Count Sum Average Variance 1 4 443 110.8 468.9 2 4 275 68.8 72.9 3 4 1,030 257.5 1,891.7 4 4 300 75.0 433.3 5 4 603 150.8 468.9 6 4 435 108.8 72.9 7 4 1,190 297.5 1,891.7 8 4 460 115.0
The following data were collected for a randomized block analysis of variance design with four populations and eight blocks:Group 1 Group 2 Group 3 Group 4 Block 1 56 44 57 84 Block 2 34 30 38 50 Block 3 50 41 48 52 Block 4 19 17 21 30 Block 5 33 30 35 38 Block 6 74 72 78 79 Block 7 33 24 27 33
A student club wishes to determine whether there are differences in new textbook prices at on-campus bookstores, off-campus bookstores, and Internet bookstores. To control for differences in textbook prices that might exist across disciplines, suppose the students randomly selected 12 textbooks and
To determine whether which company makes auto batteries affects the average length of life of the battery, the sample data in the file titled Start were obtained.The data represent the lengths of life (months) for batteries of the same specifications for each of three manufacturers.a. Determine if
The owner of Ranch Style Burgers wants to determine if its speed of service is different across its four outlets.Orders at the Ranch Style restaurants are tracked electronically, and the chain is able to determine the speed with which every order is filled. The owner decided to randomly sample 20
A regional package delivery company is considering changing from full-size vans to minivans. The company sampled minivans from each of three manufacturers. The number sampled represents the number the manufacturer was able to provide for the test. Each minivan was driven for 5,000 miles, and the
Automatic shutoff valves can prevent extensive water damage from plumbing failures. The valves contain sensors that cut off water flow in the event of a leak, thereby preventing flooding. One important characteristic is the time (in milliseconds) required for the sensor to detect the water leak.
Suppose as part of your job you are responsible for installing emergency lighting in a series of state office buildings. Bids have been received from four manufacturers of battery-operated emergency lights.The costs are about equal, so the decision will be based on the length of time the lights
The manager at the Lawrence National Bank is interested in determining whether there is a difference in the mean time that customers spend completing their transactions depending on which of four tellers they use.To conduct the test, the manager has selected simple random samples of 15 customers
The Weidmann Group Companies are in the insulation systems technology business. One facet of its expertise is the development of dielectric fluids in electrical equipment. Mineral oil–based dielectric fluids have been used more extensively than other dielectric fluids.Their only shortcomings are
To target health-conscious consumers, a potato chips manufacturer tried four different fats to see which one was least absorbed by the potato chips during the deepfrying process. The following table shows the grams of fat absorbed by each 100 grams of potato chips.Fat Absorbed (in grams)Fat 1 64 72
EverRun Incorporated produces treadmills for use in exercise clubs and recreation centers. The treadmill motors are purchased from an outside vendor.Currently, EverRun is considering which motor to include in its new ER1500 series. Three potential suppliers have been identified: Venetti, Madison,
A major U.S. bank wishes to determine if the average credit card balance depends on the type of credit card used. Under consideration are Visa, MasterCard, Discover, and American Express. The sample sizes to be used for each level are 25, 25, 26, and 23, respectively.a. Describe the parameter of
Examine the three samples obtained independently from three populations:Item Group 1 Group 2 Group 3 1 14 17 17 2 13 16 14 3 12 16 15 4 15 18 16 5 16 14 6 16a. Conduct a one-way analysis of variance on the data.Use alpha = 0.05.b. If warranted, use the Tukey-Kramer procedure to determine which
You are given the following sample data:Item Group 1 Group 2 Group 3 Group 4 1 20.9 28.2 17.8 21.2 2 27.2 26.2 15.9 23.9 3 26.6 21.6 18.4 19.5 4 22.1 29.7 20.2 17.4 5 25.3 30.3 14.1 6 30.1 25.9 7 23.8a. Based on the computations for the within- and between-sample variation, develop the ANOVA table
Respond to each of the following questions using this partially completed one-way ANOVA table:Source of Variation SS df MS F-ratio Between Samples 3 Within Samples 405 ___ Total 888 31a. How many different populations are being considered in this analysis?b. Fill in the ANOVA table with the missing
Respond to each of the following questions using this partially completed one-way ANOVA table:Source of Variation SS df MS F-ratio Between Samples 1,745 Within Samples _____ 240 Total 6,504 246a. How many different populations are being considered in this analysis?b. Fill in the ANOVA table with
A manager is interested in testing whether three populations have equal population means. Simple random samples of size 10 were selected from each population. The following ANOVA table and related statistics were computed:ANOVA: Single Factor Summary Groups Count Sum Average Variance Sample 1 10
An analyst is interested in testing whether four populations have equal means. The following sample data have been collected from populations that are assumed to be normally distributed with equal variances:Sample 1 Sample 2 Sample 3 Sample 4 9 12 8 17 6 16 8 15 11 16 12 17 14 12 7 16 14 9 10 13
A startup cell phone applications company is interested in determining whether household incomes are different for subscribers to three different service providers. A random sample of 25 subscribers to each of the three service providers was taken, and the annual household income for each
The Transportation Security Administration (TSA) has instituted the PreCheck program for some airline passengers. Individuals who pay a fee, and who are approved, can receive a TSA PreCheck message on their boarding pass that allows expedited screening at many U.S. airports. This program is
Freedom Hospital is concerned that there is a greater variability in the total charges for men than in the total charges for women. To investigate this issue, the hospital collected a random sample of data for 137 patients. The data are contained in the file Patients. Using the data for total
Recently, the X-John Company developed a new cell phone battery it believes will be less expensive to produce. There is concern about the consistency in the lasting power of the battery. If there is too much variability in battery life, cellular phone users will be unwilling to buy X-John batteries
The operations manager for Cozine Corporation is concerned with variation in the number of pounds of garbage collected per truck. The manager believes the current truck routing system provides for consistent garbage pickup per truck and is unwilling to reroute the trucks unless the variability,
Suppose the California State Highway Patrol conducted a study on a stretch of interstate highway south of San Francisco to determine what differences, if any, existed in driving speeds of cars licensed in California and cars licensed out of state. One of the issues to be examined was whether there
As the facility management manager, you received complaints from several departments in the company.The employees were complaining on the air-conditioners that did not work accordingly and affect their daily productivities. You are interested to investigate the difference of average temperature

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