Statistics For Business And Economics 14th Edition David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann - Solutions

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25. Acceptance Sampling in Food Production. A manufacturer produces lots of a canned food product. Let p denote the proportion of the lots that do not meet the product quality specifications. An n = 25, c = 0 acceptance sampling plan will be used.a. Compute points on the operating characteristic
24. Calculating Consumer Risk. An acceptance sampling plan with n = 15 and c = 1 has been designed with a producer’s risk of .075.a. Was the value of p0 .01, .02, .03, .04, or .05? What does this value mean?b. What is the consumer’s risk associated with this plan if p1 is .25?
23. Producer and Consumer Risk. An n = 10, c = 2 acceptance sampling plan is being considered; assume that p0 = .05 and p1 = .20.a. Compute both producer’s and consumer’s risk for this acceptance sampling plan.b. Would the producer, the consumer, or both be unhappy with the proposed sampling
22. Retail Restocking. Managers of 1200 different retail outlets make twice-a-month restocking orders from a central warehouse. Past experience shows that 4% of the orders result in one or more errors such as wrong item shipped, wrong quantity shipped, and item requested but not shipped. Random
21. Processing Insurance Claims. An insurance company samples claim forms for errors created by its employees as well as the amount of time it takes to process a claim.a. When the process is in control, the proportion of claims with an error is .033.A p chart has LCL = 0 and UCL = .068. Plot the
20. Filling Weights for a Coffee Production Process. The following were collected for the Master Blend Coffee production process. The data show the filling weights based on samples of 1.5 kilogram cans of coffee. Use these data to construct the x and R charts. What conclusions can be made about the
19. Temperature for a Chemical Manufacturing Process. The following are quality control data for a manufacturing process at Kensport Chemical Company. The data show the temperature in degrees centigrade at five points in time during a manufacturing cycle. The company is interested in using control
18. Control Limits. Twenty-five samples of size 5 resulted in x = 5.42 and R = 2.0.Compute control limits for the x and R charts, and estimate the standard deviation of the process.
17. Filling Rates. Product filling weights are normally distributed with a mean of 350 grams and a standard deviation of 15 grams.a. Develop the control limits for the x chart for samples of size 10, 20, and 30.b. What happens to the control limits as the sample size is increased?c. What happens
15. Quartz Crystals. A domestic manufacturer of watches purchases quartz crystals from a Swiss firm. The crystals are shipped in lots of 1000. The acceptance sampling procedure uses 20 randomly selected crystals.a. Construct operating characteristic curves for acceptance numbers of 0, 1, and 2.b.
14. Incoming Shipments of Raw Materials. To inspect incoming shipments of raw materials, a manufacturer is considering samples of sizes 10, 15, and 19. Use the binomial probabilities from Table 5 of Appendix B to select a sampling plan that provides a producer’s risk of a = .03 when p0 is .05 and
13. KALI Home Appliance Manufacturer. Refer to the KALI problem presented in this section.The quality control manager requested a producer’s risk of .10 when p0 was .03 and a consumer’s risk of .20 when p1 was .15. Consider the acceptance sampling plan based on a sample size of 20 and an
12. Repeat exercise 11 for the acceptance sampling plan with n = 20 and c = 1. What happens to the producer’s risk as the acceptance number c is increased? Explain.
11. Consider an acceptance sampling plan with n = 20 and c = 0. Compute the producer’s risk for each of the following cases.a. The lot has a defect rate of 2%.b. The lot has a defect rate of 6%.
10. For an acceptance sampling plan with n = 25 and c = 0, find the probability of accepting a lot that has a defect rate of 2%. What is the probability of accepting the lot if the defect rate is 6%?
9. Airline Call Center. An airline operates a call center to handle customer questions and complaints. The airline monitors a sample of calls to help ensure that the service being provided is of high quality. Ten random samples of 100 calls each were monitored under normal conditions. The center
8. Tennis String Breaking Strength. Over several weeks of normal, or in-control, operation, 20 samples of 150 packages each of synthetic-gut tennis strings were tested for breaking strength. A total of 141 packages of the 3000 tested failed to conform to the manufacturer’s specifications.a. What
7. Tire Tread Wear Tests. The Goodman Tire and Rubber Company periodically tests its tires for tread wear under simulated road conditions. To study and control the manufacturing process, 20 samples, each containing three radial tires, were chosen from different shifts over several days of
6. Laundry Detergent Carton Weights. A quality control process monitors the weight per carton of laundry detergent. Control limits are set at UCL = 603.6 grams and LCL =597.0 grams. Samples of size 5 are used for the sampling and inspection process. What are the process mean and process standard
5. Production Process Temperature. Temperature is used to measure the output of a production process. When the process is in control, the mean of the process is m =128.5 and the standard deviation is s = .4.a. Construct the x chart for this process if samples of size 6 are to be used.b. Is the
4. A process sampled 20 times with a sample of size 8 resulted in x = 28.5 and R = 1.6.Compute the upper and lower control limits for the x and R charts for this process.
3. Twenty-five samples of 100 items each were inspected when a process was considered to be operating satisfactorily. In the 25 samples, a total of 135 items were found to be defective.a. What is an estimate of the proportion defective when the process is in control?b. What is the standard error of
2. Twenty-five samples, each of size 5, were selected from a process that was in control.The sum of all the data collected was 677.5 kilograms.a. What is an estimate of the process mean (in terms of kilograms per unit) when the process is in control?b. Develop the x control chart for this process
1. A process that is in control has a mean of m = 12.5 and a standard deviation of s = .8.a. Construct the x control chart for this process if samples of size 4 are to be used.b. Repeat part (a) for samples of sizes 8 and 16.c. What happens to the limits of the control chart as the sample size is
26. Glass Tumbler Quantity Index. Williams Sonoma is a consumer retail company that sells kitchenware. Williams Sonoma has reported the quantity and product value information for three different glass tumblers in two different years in the table that follows. Compute a weighted aggregate quantity
25. Walmart Stock Price. The closing price of Walmart stock at the end of its fiscal year(end of January) for five years is given in the following table. The CPI for January of each year is also provided. Deflate the stock price series and comment on the financial performance of Walmart stock.Year
24. Actuary Salaries. Actuaries are analysts who specialize in the mathematics of risk.Actuaries often work for insurance companies and are responsible for setting premiums for insurance policies. Below are the median salaries for actuaries and the yearly CPI for four years. Use the CPI to deflate
23. Seafood Prices. The operations of seafood restaurant chains such as Red Lobster are sensitive to changes in the price of seafood. Quantity data for a regional seafood chain coupled with price data are in the following table (Statista website).2000 2016 Quantity (kg) Price ($/kilogram) Price
22. Male Shaver Expense Index. Suppose on average a male shaver in Year 1 bought one razor handle and used 17 razor blades in a year and that the price relatives for Year 1 to Year 11 are as appears in the following table. Develop a Male Shaver Expense Index based on weighted price relatives for
21. Price Relatives Approach to Computing Stock Market Index. Compute the price relatives for the four stocks making up the Boran index in exercise 20. Use the weighted aggregates of price relatives to compute the January of Year 3 and March of Year 3 Boran indexes.
20. Index of Stock Market Behavior. Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a Year 1 base period, January of Year 3, and March of Year 3 follow. Base-year quantities are set on the basis of historical
19. Paasche Index for Shipping Cost. Use the price data in exercise 18 to compute a Paasche index for the shipping cost if Year 5 quantities are 4000, 3000, 7500, and 3000 for the four products, respectively.
18. Shipping Costs. Nickerson Manufacturing Company has the following data on quantities shipped and unit shipping costs for each of its four products:Mean Shipping Cost Year 1 per Unit ($)Products Quantity Year 1 Year 5 A 2000 10.50 15.90 B 5000 16.25 32.00 C 6500 12.20 17.40 D 2500 20.00 35.50a.
17. Gasoline Prices. Many factors influence the retail price of gasoline. The following table shows the average retail price for a liter of regular grade gasoline for each year from 2014 through 2017 (U.S. Energy Information Administration website).Year Average Price ($)2014 0.887 2015 0.642 2016
16. Automobile Sales. An automobile dealer reports the Year 1 and Year 8 sales for three models in the following table. Compute quantity relatives and use them to develop a weighted aggregate quantity index for Year 8 using the two years of data.Sales Mean Price per Sale Model Year 1 Year 8 (Year
15. Commodity Shipments. Heartland Express handles four commodities for a particular distributor. Total shipments for the commodities in the years 2000 and 2015, as well as the prices in the year 2000, are reported in the following table.Shipments Price/Shipment Commodity 2000 2015 2000 A 120 95
14. Data on quantities of three items sold in Year 1 and Year 5 are given here along with the sales prices of the items in Year 1. Compute a weighted aggregate quantity index for Year 5.Quantity Sold Item Year 1 Year 5 Price/Unit Year 1 ($)A 350 300 18.00 B 220 400 4.90 C 730 850 15.00 Applications
13. Google Revenue. In 2017, Google’s revenue broke $100 billion for the first time. The revenue for Google for the years 2010–2017 is shown in the following table(Statista website). Deflate the revenue in dollars based on the CPI (1982–1984 base period). Comment on the company’s revenue in
12. Electronics Shipments. Shipments of product from manufacturer to the retailer are tracked by the U.S. Census Bureau. The values of shipments for computer and electronic products for three consecutive years are shown in the table below, along with the CPI and PPI for each of these
11. Wage Rate for Construction Workers. The average hourly wage rate for construction laborers in 2001 was $13.36. In 2017 construction laborers made $18.70 per hour.The CPI for 2001 was 177.1 and for 2017, 245.1. Calculate the percentage change in real hourly wages from 2001 to 2017.
10. Nurse Wages. Registered nurses in 2007 made an average hourly wage of $30.04. In 2017, their hourly wage had risen to $35.36. Given that the CPI for 2007 was 207.3 and the 2017 CPI was 245.1, answer the following.a. Give the real wages for registered nurses for 2007 and 2017 by deflating the
7. Chemical Ingredient Prices. The Mitchell Chemical Company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost per kilogram, the ending-year cost per kilogram, and the blend proportions follow.Cost per Kilogram ($) Quantity
6. Price relatives for three items, along with base-period prices and usage, are shown in the following table. Compute a weighted aggregate price index for the current period.Base Period Item Price Relative Price Usage A 150 22.00 20 B 90 5.00 50 C 120 14.00 40 Applications
5. Beverage Distribution. R&B Beverages, Inc., provides a complete line of beer, wine, and soft drink products for distribution through retail outlets in central Iowa. Unit price data for 2015 and 2018 and quantities sold in cases follow.Quantity Unit Price ($)Item (cases) 2015 2018 Beer 35,000
4. Inventory Valuation. Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Use the beginning-of-the-year price per unit as the base-period price and develop
3. Fastener Sourcing. Fastenal, the largest fastener distributor in North America, procures an identical drive anchor from three independent suppliers that differ in unit price and quantity supplied. The relevant data for 2016 and 2018 are given in the following table, where quantity and unit price
1. The following table reports prices and usage quantities for two items in 2016 and 2018.Quantity Unit Price ($)Item 2016 2018 2016 2018 A 1500 1800 7.50 7.75 B 2 1 630.00 1500.00a. Compute price relatives for each item in 2018 using 2016 as the base period.b. Compute an unweighted aggregate price
21. New College Textbook Manuscript. Embassy Publishing Company received a sixchapter manuscript for a new college textbook. The editor of the college division is familiar with the manuscript and estimated a .65 probability that the textbook will be successful. If successful, a profit of $750,000
20. R&D Project Investment Decision. Hemmingway, Inc. is considering a $50 million research and development (R&D) project. Profit projections appear promising, but Hemmingway’s president is concerned because the probability that the R&D project will be successful is only .50. Secondly, the
19. Determining Which Car to Lease. Warren Lloyd is interested in leasing a new car and has contacted three automobile dealers for pricing information. Each dealer offered Warren a closed-end 36-month lease with no down payment due at the time of signing. Each lease includes a monthly charge and a
18. Selecting Mutual Funds. An investor wants to select one of seven mutual funds for the coming year. Data showing the percentage annual return for each fund during five typical one-year periods are shown here. The assumption is that one of these five-year periods will occur again during the
17. Manufacture In-House or Outsource. The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table
16. Choosing a Carpool Route. To save on expenses, Rona and Jerry agreed to form a carpool for traveling to and from work. Rona preferred to use the somewhat longer but more consistent Queen City Avenue. Although Jerry preferred the quicker expressway, he agreed with Rona that they should take
15. In the following profit payoff table for a decision problem with two states of nature and three decision alternatives, the prior probabilities for s1 and s2 are P(s1) = .8 and P(s2) = .2.State of Nature Decision Alternative s1 s2 d1 15 10 d2 10 12 d3 8 20a. What is the optimal decision?b. Find
14. Suppose that you are given a decision situation with three possible states of nature:s1, s2, and s3. The prior probabilities are P(s1) = .2, P(s2) = .5, and P(s3) = .3. With sample information I, P(I • s1) = .1, P(I • s2) = .05, and P(I • s3) = .2. Compute the revised or posterior
13. Buying Decision for Seasonal Product. Lawson’s Department Store faces a buying decision for a seasonal product for which demand can be high, medium, or low. The purchaser for Lawson’s can order 1, 2, or 3 lots of the product before the season begins but cannot reorder later. Profit
12. Entering the Snowplowing Business. Martin’s Service Station is considering entering the snowplowing business for the coming winter season. Martin can purchase either a snowplow blade attachment for the station’s pick-up truck or a new heavy-duty snowplow truck. After analyzing the
11. Producing a TV Pilot for New Comedy Series. More than 500 scripted television series were available for viewing in 2018 (Hollywood Reporter website). New series typically start by producing a pilot episode that can be evaluated by a network before it agrees to pick up the series for production.
10. Bidding on Rights to Construct New Office Building Complex. Dante Development Corporation is considering bidding on a contract for a new office building complex. Figure 19.9 shows the decision tree prepared by one of Dante’s analysts. At node 1, the company must decide whether to bid on the
9. Prepositioning Supplies for Hurricane Response. In 2017, the American Red Cross had to make decisions related to preparations for Hurricane Irma, which was threatening the United States, including the state of Florida, Puerto Rico, and the U.S. Virgin Islands. To prepare for such disasters,
8. Consider a variation of the PDC decision tree shown in Figure 19.5. The company must first decide whether to undertake the market research study. If the market research study is conducted, the outcome will either be favorable (F) or unfavorable(U). Assume there are only two decision alternatives
7. New Community Center in Lake Placid. The Lake Placid Town Council has decided to build a new community center to be used for conventions, concerts, and other public events, but considerable controversy surrounds the appropriate size. Many influential citizens want a large center that would be a
6. Choice of Grapes for New Vineyard. A 2017 survey of sommeliers ranked the Finger Lakes region of New York state as the top wine region to visit (Thrillist web site). Finger Lakes vineyards typically specialize in growing grapes for white wines such as Chardonnay and Riesling. Seneca Hill Winery
5. Determining Which Video Game to Market. The computer-gaming market in the United States is estimated at $18.5 billion as of 2017 (VentureBeat web site). Consider the case of Video Tech, a computer-gaming company located in San Jose, California.It is considering the production of one of two new
4. Air Service from Cleveland to Myrtle Beach. Myrtle Air Express decided to offer direct service from Cleveland to Myrtle Beach. Management must decide between a full price service using the company’s new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is
3. Market Segment Stock Market Returns. Investment advisors estimated the stock market returns for four market segments: computers, financial, manufacturing, and pharmaceuticals. Annual return projections vary depending on whether the general economic conditions are improving, stable, or declining.
2. A decision maker faced with four decision alternatives and four states of nature develops the following profit payoff table.States of Nature Decision Alternative s1 s2 s3 s4 d1 14 9 10 5 d2 11 10 8 7 d3 9 10 10 11 d4 8 10 11 13 The decision maker obtains information that enables the following
1. The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature.States of Nature Decision Alternative s1 s2 s3 d1 250 100 25 d2 100 100 75a. Construct a decision tree for this problem.b. Suppose that the decision maker obtains the
47. Network TV Series Viewership. Nielsen Research provides weekly ratings of nationally broadcast television programs. The mean weekly number of viewers for the 207 prime-time programs broadcast by five major televisions networks (ABC, CBS, FOX, NBC, and CW) for the 2017–2018 television season
46. Midterm and Final Exam Scores. A sample of 15 students received the following rankings on midterm and final examinations in a statistics course. Compute the Spearman rank-correlation coefficient for the data and test for a significant correlation with a = .10.What is the p-value and what is
45. Instructor Course Evaluations. Course evaluation ratings for four college instructors are shown in the following table. Use a = .05 and test for a significant difference among the rating for these instructors. What is your conclusion?Instructor Black Jennings Swanson Wilson 88 87 88 80 80 78 76
44. Evaluating Managerial Potential. A sample of 20 engineers employed with a company for three years has been rank ordered with respect to managerial potential. Some of the engineers attended the company’s management-development course, others attended an off-site management-development program
43. Program Evaluation Methods Comparison. A client wants to determine whether there is a significant difference in the time required to complete a program evaluation with the three different methods that are in common use. The times (in hours) required for each of 18 evaluators to conduct a
42. Weights of an Item Produced on Two Different Lines. The following data are product weights for the same items produced on two different production lines. Test for a difference between the product weights for the two lines. Use a = .05.Line 1 Line 2 13.6 13.7 13.8 14.1 14.0 14.2 13.9 14.0 13.4
41. Effectiveness of a New Poultry Feed. A study was designed to evaluate the weight-gain potential of a new poultry feed. A sample of 12 chickens was used in a six-week study.The weight of each chicken was recorded before and after the six-week test period. The differences between the before and
40. Prices of Brands of Refrigerators. Twelve homemakers were asked to estimate the retail selling price of two models of refrigerators. Their estimates of selling price are shown in the following table. Use these data and test at the .05 level of significance to determine whether there is a
39. National Sales Prices for Single-Family Homes. According to the National Association of Realtors website (https://www.nar.realtor/sites/default/files/documents/metro-home-prices-q3-2017-single-family-2017-11-02.pdf), the national median sales price for single-family homes was $254,000 in 2018.
38. Survey on School Voucher Programs. A survey asked the following question: Do you favor or oppose providing tax-funded vouchers or tax deductions to parents who send their children to private schools? Of the 2010 individuals surveyed, 905 favored the proposal, 1045 opposed the proposal, and 60
37. Quality of Teaching Assessments. A student organization surveyed both current students and recent graduates to obtain information on the quality of teaching at a particular university. An analysis of the responses provided the following teaching-ability rankings. Do the rankings given by the
36. Golfer Driving Distances and Putting Proficiency. The rankings of a sample of professional golfers in both driving distance and putting are shown. What is the rank correlation between driving distance and putting for these golfers? Test for significance of the correlation coefficient at the .10
35. Technology Company Reputations and Investor Willingness to Purchase Stock. A national study by Harris Interactive, Inc., evaluated the top technology companies and their reputations. The following shows how 10 technology companies ranked in reputation and how the companies ranked in percentage
34. State Expenditure per Student and Student–Teacher Ratio. The following data show the rankings of 11 states based on expenditure per student (ranked 1 highest to 11 lowest) and student–teacher ratio (ranked 1 lowest to 11 highest).State Expenditure per Student Student–Teacher Ratio Arizona
33. Consider the following two sets of rankings for six items.Case One Case Two First Second First Second Item Ranking Ranking Item Ranking Ranking A 1 1 A 1 6 B 2 2 B 2 5 C 3 3 C 3 4 D 4 4 D 4 3 E 5 5 E 5 2 F 6 6 F 6 1 Note that in the first case the rankings are identical, whereas in the second
32. Consider the following set of rankings for a sample of 10 elements.Element x y Element x y 1 10 8 6 2 7 2 6 4 7 8 6 3 7 10 8 5 3 4 3 2 9 1 1 5 4 5 10 9 9a. Compute the Spearman rank-correlation coefficient for the data.b. Use a = .05 and test for significant rank correlation. What is your
31. Calories in Popular Candies. The better-selling candies are often high in calories.Assume that the following data show the calorie content from samples of M&M’s, Kit Kat, and Milky Way candies. Test for significant differences among the calorie content of these three candies. At a .05 level
30. Supervisory Skills Developed by Off-Site Training Courses. A large corporation sends many of its first-level managers to an off-site supervisory skills training course.Four different management development centers offer this course. The director of human resources would like to know whether
29. NFL Draft Positions by College Football Conference. The National Football League (NFL) holds its annual draft of the nation’s best college football players in April each year. Prior to the draft, various sporting news services project the players who will be drafted along with the order in
28. Calories Burned During Different Types of Workouts. Forty-minute workouts of one of the following activities three days a week will lead to a loss of weight, assuming no change in calories consumed. The following sample data show the number of calories burned during 40-minute workouts for three
27. College Admission Test Prep Programs. Three admission test preparation programs are being evaluated. The scores obtained by a sample of 20 people who used the programs provided the following data. Use the Kruskal-Wallis test to determine whether there is a significant difference among the three
26. Consumer Ratings for Three Products. A sample of 15 consumers provided the following product ratings for three different products. Five consumers were randomly assigned to test and rate each product. Use the Kruskal-Wallis test and a = .05 to determine whether there is a significant difference
25. Delayed Flights at Midway and BWI. Chicago Midway International Airport and Baltimore/Washington International Thurgood Marshall Airport were the U.S. airports with the worst percentage of delayed flights in 2015 (Travel+Leisure website,
24. Microwave Oven Prices in Dallas vs. San Antonio. A certain brand of microwave oven was priced at 10 stores in Dallas and 13 stores in San Antonio. The data follow.Use a .05 level of significance and test whether prices for the microwave oven are the same in the two cities.Dallas San Antonio 445
23. Crime in Winter vs. Summer. Police records show the following numbers of daily crime reports for a sample of days during the winter months and a sample of days during the summer months. Use a .05 level of significance to determine whether there is a significant difference between the winter and
22. P/E Ratios for Japanese and U.S. Companies. Each year Bloomberg Businessweek publishes statistics on the world’s 1000 largest companies. A company’s price/earnings (P/E) ratio is the company’s current stock price divided by the latest 12 months’ earnings per share. The following table
21. Chief Executive Officer Salaries. In 2018 a survey of 10,508 CEOs by PayScale.com, the range of annual salaries reported was from $73,187 to $336,550. But do CEO salaries differ across the two most populous states in the United States? Consider the salaries for CEOs who work for companies
20. Gender Earnings Gap. The gap between the earnings of men and women with equal education is narrowing but has not closed. Sample data for seven men and seven women with bachelor’s degrees are as follows. Data are shown in thousands of dollars.Men Women 35.6 49.5 80.5 40.4 50.2 32.9 67.2 45.5
19. Beginning Salaries for Public Accountants and Financial Planners. Samples of starting annual salaries for individuals entering the public accounting and financial planning professions follow. Annual salaries are shown in thousands of dollars.a. Use a .05 level of significance and test the
18. Fuel Additives and Mileage. Two fuel additives are being tested to determine their effect on gasoline mileage. Seven cars were tested with additive 1 and nine cars were tested with additive 2. The following data show the kilometers per liter obtained with the two additives. Use a = .05 and the
17. SAT Writing Scores. The Scholastic Aptitude Test (SAT) consists of three parts:critical reading, mathematics, and writing. Each part of the test is scored on a 200- to 800-point scale with a median of approximately 500. Scores for each part of the test can be assumed to be symmetric. Use the
16. Scores on the First Two Rounds in an LPGA Tournament. The Ladies Professional Golf Association (LPGA) ANA Inspiration tournament was held in April 2015 at the Mission Hills Country Club in Rancho Mirage, California. Shown here are first-round and second-round scores for a random sample of 13

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Statistics For Business And Economics 14th Edition David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann - Solutions

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