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bayesian statistics an introduction
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
8. Supplier Quality: Three Inspection Outcomes. The Ertl Company is well known for its high-quality die-cast metal alloy toy replicas of tractors and other farm equipment.As part of a periodic procurement evaluation, Ertl is considering purchasing parts for a toy tractor line from three different
7. Use of Social Media. Social media is becoming more and more popular around the world. Statista.com provides estimates of the number of social media users in various countries in 2017 as well as the projections for 2022. Assume that the results for surveys in the United Kingdom, China, Russia,
6. Error Rates in Tax Preparation. A tax preparation firm is interested in comparing the quality of work at two of its regional offices. The observed frequencies showing the number of sampled returns with errors and the number of sampled returns that were correct are as follows.Regional Office
5. Research Classification of Higher Education. The Carnegie Classification of Institutes of Higher Education categorizes colleges and universities on the basis of their research and degree-granting activities. Universities that grant doctoral degrees are placed into one of three classifications:
4. Electronic Component Supplier Quality Comparison. Benson Manufacturing is considering ordering electronic components from three different suppliers. The suppliers may differ in terms of quality in that the proportion or percentage of defective components may differ among the suppliers. To
3. Late Flight Comparison Across Airlines. The sample data below represent the number of late and on time flights for Delta, United, and US Airways.Airline Flight Delta United US Airways Late 39 51 56 On Time 261 249 344a. Formulate the hypotheses for a test that will determine if the population
2. Reconsider the observed frequencies in exercise 1a. Compute the sample proportion for each population.b. Use the multiple comparison procedure to determine which population proportions differ significantly. Use a .05 level of significance.
1. Use the sample data below to test the hypotheses H0: p1 = p2 = p3 Ha: Not all population proportions are equal where pi is the population proportion of Yes responses for population i. Using a .05 level of significance, what is the p-value and what is your conclusion?Populations Response 1 2 3
34. Lean Process Improvement at the New York City Food Bank. In an effort to make better use of its resources, the New York City Food Bank engaged in lean process improvement. This employee-driven kaizen effort resulted in a new method for packing meals for distribution to needy families. One goal
33. Weekly Cost Reporting. Stable cost reporting in a manufacturing setting is typically a sign that operations are running smoothly. The accounting department at Rockwell Collins, an avionics manufacturer, analyzes the variance of the weekly costs reported by two of its production departments. A
32. Grade Point Average Comparison. The grade point averages of 352 students who completed a college course in financial accounting have a standard deviation of .940.The grade point averages of 73 students who dropped out of the same course have a standard deviation of .797. Do the data indicate a
31. Golf Scores. Is there any difference in the variability in golf scores for players on the LPGA Tour (the women’s professional golf tour) and players on the PGA Tour(the men’s professional golf tour)? A sample of 20 tournament scores from LPGA events showed a standard deviation of 2.4623
30. Passenger Volume on Allegiant Airlines. A sample standard deviation for the number of passengers taking a particular Allegiant Airlines flight is 8. A 95% confidence interval estimate of the population standard deviation is 5.86 passengers to 12.62 passengers.a. Was a sample size of 10 or 15
29. Daily Patient Volume at Dental Clinic. A sample of 9 days over the past six months showed that Philip Sherman, DDS, treated the following numbers of patients at his dental clinic: 22, 25, 20, 18, 15, 22, 24, 19, and 26. If the number of patients seen per day is normally distributed, would an
28. OrderUp Food Delivery. OrderUp is a service that delivers food that its customers order online from participating restaurants. OrderUp claims consistent delivery times for its deliveries. A sample of 22 meal deliveries shows a sample variance of 1.5. Test to determine whether H0: s2 ≤ 1 can
27. Count Chocula Cereal. Filling boxes with consistent amounts of its cereals is critical to General Mills’s success. The filling variance for boxes of Count Chocula cereal is designed to be 16 grams2 or less. A sample of 41 boxes of Count Chocula shows a sample standard deviation of 4.5 grams.
26. Manufacture of Ball Bearings. Ball bearing manufacturing is a highly precise business in which minimal part variability is critical. Large variances in the size of the ball bearings cause bearing failure and rapid wearout. Production standards call for a maximum variance of .0625 millimeters2.
25. Business Travel Costs. According to the 2017 Corporate Travel Index compiled by Business Travel News, the average daily cost for business travel in the United States rose to $321 per day (Executive Travel website,
24. Pricing of Initial Public Offerings. Initial public offerings (IPOs) of stocks are on average underpriced. The standard deviation measures the dispersion, or variation, in the underpricing-overpricing indicator. A sample of 13 Canadian IPOs that were subsequently traded on the Toronto Stock
23. Daily Hotel Room Occupancy. Because of staffing decisions, managers of the Gibson-Marimont Hotel are interested in the variability in the number of rooms occupied per day during a particular season of the year. A sample of 20 days of operation shows a sample mean of 290 rooms occupied per day
22. Stopping Distances of Automobiles. A research hypothesis is that the variance of stopping distances of automobiles on wet pavement is substantially greater than the variance of stopping distances of automobiles on dry pavement. In the research study, 16 automobiles traveling at the same speeds
17. Repair Costs as Automobiles Age. In its 2016 Auto Reliability Survey, Consumer Reports asked subscribers to report their maintenance and repair costs. Most individuals are aware of the fact that the average annual repair cost for an automobile depends on the age of the automobile. A researcher
16. Comparing Risk of Mutual Funds. Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard
15. Consider the following hypothesis test.H0:Ha:s21 5 s22 s21± s22a. What is your conclusion if n1 = 21, s 21= 8.2, n2 = 26, and s 22= 4.0? Use a = .05 and the p-value approach.b. Repeat the test using the critical value approach.
14. A sample of 16 items from population 1 has a sample variance s 21= 5.8 and a sample of 21 items from population 2 has a sample variance s 22= 2.4. Test the following hypotheses at the .05 level of significance.H0:Ha:s21# s22 s21. s22a. What is your conclusion using the p-value approach?b.
13. Find the following F distribution values from Table 4 of Appendix B.a. F.05 with degrees of freedom 5 and 10b. F.025 with degrees of freedom 20 and 15c. F.01 with degrees of freedom 8 and 12d. F.10 with degrees of freedom 10 and 20
12. Vehicle Ownership by Fortune Magazine Subscribers. A Fortune study found that the variance in the number of vehicles owned or leased by subscribers to Fortune magazine is .94. Assume a sample of 12 subscribers to another magazine provided the following data on the number of vehicles owned or
11. Variability in GMAT Scores. In 2016, the Graduate Management Admission Council reported that the variance in GMAT scores was 14,660. At a recent summit, a group of economics professors met to discuss the GMAT performance of undergraduate students majoring in economics. Some expected the
10. Costco Customer Satisfaction. Consumer Reports uses a 100-point customer satisfaction score to rate the nation’s major chain stores. Assume that from past experience with the satisfaction rating score, a population standard deviation of s = 12 is expected. In 2012, Costco, with its 432
9. Aerospace Part Manufacturing. The competitive advantage of small American factories such as Tolerance Contract Manufacturing lies in their ability to produce parts with highly narrow requirements, or tolerances, that are typical in the aerospace industry. Consider a product with specifications
8. Variability in Daily Change in Stock Price. Consider a day when the Dow Jones Industrial Average went up 149.82 points. The follow ing table shows the stock price changes for a sample of 12 companies on that day.a. Compute the sample variance for the daily price change.b. Compute the sample
7. Halloween Spending. In 2017, Americans spent a record-high $9.1 billion on Halloween-related purchases (the balance website, https://www.thebalance.com/halloween-spending-statistics-facts-and-trends-3305716). Sample data showing the amount, in dollars, 16 adults spent on a Halloween costume are
6. Volatility of General Electric Stock. To analyze the risk, or volatility, associated with investing in General Electric common stock, consider a sample of the eight quarterly percent total returns. The percent total return includes the stock price change plus the dividend payment for the
5. College Basketball Coaches’ Salaries. In 2018, Mike Krzyewski and John Calipari topped the list of highest-paid college basketball coaches (Sports Illustrated website,
4. Package Delivery by Drones. Amazon.com is testing the use of drones to deliver packages for same-day delivery. In order to quote narrow time windows, the variability in delivery times must be sufficiently small. Consider a sample of 24 drone deliveries with a sample variance of s2 = .81.a.
3. A sample of 16 items provides a sample standard deviation of 9.5. Test the following hypotheses using a = .05. What is your conclusion? Use both the p-value approach and the critical value approach.H0:Ha:s2 # 50 s2 . 50
2. A sample of 20 items provides a sample standard deviation of 5.a. Compute the 90% confidence interval estimate of the population variance.b. Compute the 95% confidence interval estimate of the population variance.c. Compute the 95% confidence interval estimate of the population standard
1. Find the following chi-square distribution values from Table 11.1 or Table 3 of Appendix B.a. x2 .05 with df = 5b. x2 .025 with df = 15c. x2 .975 with df = 20d. x2 .01 with df = 10e. x2 .95 with df = 18
46. News Access Via Computer. The American Press Institute reports that almost 70%of all American adults use a computer to gain access to news. Based on generational differences, you suspect that the proportion of American adults under 30 years old who use a computer to gain access to news exceeds
45. Drug-Resistant Gonorrhea. Each year, more than 2 million people in the United States become infected with bacteria that are resistant to antibiotics. In particular, the Centers of Disease Control and Prevention have launched studies of drug-resistant gonorrhea (CDC.gov). Of 142 cases tested in
44. Differences in Insurance Claims Based on Marital Status. A large automobile insurance company selected samples of single and married male policy holders and recorded the number who made an insurance claim over the preceding three-year period.Single Policyholders Married Policyholders n1 5 400
43. Change in Financial Security. Country Financial, a financial services company, uses surveys of adults age 18 and older to determine if personal financial fitness is changing over time. A recent sample of 1000 adults showed 410 indicating that their financial security was more than fair. Just a
42. Effect of Siblings on SAT Scores. In Born Together—Reared Apart: The Landmark Minnesota Twin Study (http://www.hup.harvard.edu/catalog.php?isbn=9780674055469), Nancy Segal discusses the efforts of research psychologists at the University of Minnesota to understand similarities and differences
41. Kitchen Versus Bedroom Remodeling Costs. The National Association of Home Builders provided data on the cost of the most popular home remodeling projects. Sample data on cost in thousands of dollars for two types of remodeling projects are as follows.Kitchen Master Bedroom Kitchen Master
40. Load Versus No-Load Mutal Funds. Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load
39. SUV Lease Payments. Statista reports that the average monthly lease payment for an automobile is falling in the United States (Statista.com), but does this apply to all classes of automobiles? Suppose you are interested in whether this trend is true for sport utility vehicles (SUVs). The file
37. Default Rates on Bank Loans. Carl Allen and Norm Nixon are two loan officers at Brea Federal Savings and Loan Bank. The bank manager is interested in comparing the default rate on the loans approved by Carl to the default rate on the loans approved by Norm. In the sample of loans collected,
36. Gender Differences in Raise or Promotion Expectations. The Adecco Workplace Insights Survey sampled men and women workers and asked if they expected to get a raise or promotion this year. Suppose the survey sampled 200 men and 200 women. If 104 of the men replied Yes and 74 of the women replied
35. Hotel Occupancy Rates. Tourism is extremely important to the economy of Florida.Hotel occupancy is an often-reported measure of visitor volume and visitor activity(Orlando Sentinel, https://www.orlandosentinel.com/business/tourism/os-bz-hotel-occupancy-dip-20180522-story.html). Hotel occupancy
33. Voter Turnout. Minnesota had the highest turnout rate of any state for the 2016 presidential election (United States Election Project website). Political analysts wonder if turnout in rural Minnesota was higher than turnout in the urban areas of the state. A sample shows that 663 of 884
32. Mislabeled Fish. Researchers with Oceana, a group dedicated to preserving the ocean ecosystem, reported finding that 33% of fish sold in retail outlets, grocery stores, and sushi bars throughout the United States had been mislabeled (San Francisco Chronicle,
31. Impact of Pinterest on Purchase Decisions. Forbes reports that women trust recommendations from Pinterest more than recommendations from any other social network platform
30. Corporate Hiring Outlook. A Businessweek/Harris poll asked senior executives at large corporations their opinions about the economic outlook for the future. One question was, “Do you think that there will be an increase in the number of full-time employees at your company over the next 12
29. Consider the hypothesis test H0:Ha:p1 2 p2 # 0 p1 2 p2 . 0 The following results are for independent samples taken from the two populations.Sample 1 Sample 2 n1 = 200 n2 = 300 p1 = .22 p2 = .16a. What is the p-value?b. With a = .05, what is your hypothesis testing conclusion?
28. Consider the following results for independent samples taken from two populations.Sample 1 Sample 2 n1 = 400 n2 = 300 p1 = .48 p2 = .36a. What is the point estimate of the difference between the two population proportions?b. Develop a 90% confidence interval for the difference between the two
27. Price Comparison of Smoothie Blenders. A personal fitness company produces both a deluxe and a standard model of a smoothie blender for home use. Selling prices obtained from a sample of retail outlets follow.Model Price ($) Model Price ($)Retail Outlet Deluxe Standard Retail Outlet Deluxe
26. PGA Tour Scores. Scores in the first and fourth (final) rounds for a sample of 20 golfers who competed in PGA tournaments are shown in the following table. Suppose you would like to determine if the mean score for the first round of a PGA Tour event is significantly different than the mean
25. SAT Scores. The College Board SAT college entrance exam consists of three parts:math, writing, and critical reading. Sample data showing the math and writing scores for a sample of 12 students who took the SAT follow.Student Math Writing Student Math Writing 1 540 474 7 480 430 2 432 380 8 499
24. Domestic Airfare. The Global Business Travel Association reported the domestic airfare for business travel for the current year and the previous year. Below is a sample of 12 flights with their domestic airfares shown for both years.Current Year Previous Year Current Year Previous Year 345 315
23. Credit Card Expenditures. Bank of America’s Consumer Spending Survey collected data on annual credit card charges in seven different categories of expenditures: transportation, groceries, dining out, household expenses, home furnishings, apparel, and entertainment.Using data from a sample of
22. First-Quarter Stock Market Performance. The price per share of stock for a sample of 25 companies was recorded at the beginning of the first financial quarter and then again at the end of the first financial quarter. How stocks perform during the first financial quarter is an indicator of what
21. Television Commercials and Product Purchase Potential. A market research firm used a sample of individuals to rate the purchase potential of a particular product before and after the individuals saw a new television commercial about the product.The purchase potential ratings were based on a 0
20. The following data are from matched samples taken from two populations.Population Element 1 2 1 11 8 2 7 8 3 9 6 4 12 7 5 13 10 6 15 15 7 15 14a. Compute the difference value for each element.b. Compute d.c. Compute the standard deviation sd.d. What is the point estimate of the difference
19. Consider the following hypothesis test.H0:Ha:md # 0 md . 0 The following data are from matched samples taken from two populations.Population Element 1 2 1 21 20 2 28 26 3 18 18 4 20 20 5 26 24a. Compute the difference value for each element.b. Compute d.c. Compute the standard deviation sd.d.
18. Comparing Length of Flight Delays. The success of an airline depends heavily on its ability to provide a pleasant customer experience. One dimension of customer service on which airlines compete is on-time arrival. The file LateFlights contains a sample of data from delayed flights showing the
17. Comparing Financial Consultant Ratings. Periodically, Merrill Lynch customers are asked to evaluate Merrill Lynch financial consultants and services.Higher ratings on the client satisfaction survey indicate better service, with 7 the maximum service rating. Independent samples of service
16. Effect of Parents’ Education on Student SAT Scores. The College Board provided comparisons of Scholastic Aptitude Test (SAT) scores based on the highest level of education attained by the test taker’s parents. A research hypothesis was that students whose parents had attained a higher level
15. Hotel Prices. Hotel room pricing changes over time (Lodging Magazine), but is there a difference between Europe hotel prices and U.S. hotel prices? The file IntHotels contains changes in the hotel prices for 47 major European cities and 53 major U.S. cities.a. On the basis of the sample
14. Salaries of Recent College Graduates. The Tippie College of Business obtained the following results on the salaries of a recent graduating class:Finance Majors Business Analytics Majors n1 = 110 n2 = 30 x1 = $48,537 x2 = $55,317 s1 = $18,000 s2 = $10,000a. Formulate hypothesis so that, if the
13. Annual Cost of College. The increasing annual cost (including tuition, room, board, books, and fees) to attend college has been widely discussed (http://time.com/money/4543839/college-costs-record-2016/). The following random samples show the annual cost of attending private and public
12. Kilometers Driven Per Day. The U.S. Department of Transportation provides the number of kilometers that residents of the 75 largest metropolitan areas travel per day in a car. Suppose that for a simple random sample of 50 Buffalo residents the mean is 36.2 kilometers a day and the standard
11. Consider the following data for two independent random samples taken from two normal populations.Sample 1 10 7 13 7 9 8 Sample 2 8 7 8 4 6 9a. Compute the two sample means.b. Compute the two sample standard deviations.c. What is the point estimate of the difference between the two population
10. Consider the following hypothesis test.H0:Ha:m1 2 m2 5 0 m1 2 m2 ± 0 The following results are from independent samples taken from two populations.Sample 1 Sample 2 n1 = 35 n2 = 40 x1 = 13.6 x2 = 10.1 s1 = 5.2 s2 = 8.5a. What is the value of the test statistic?b. What is the degrees of freedom
9. The following results are for independent random samples taken from two populations.Sample 1 Sample 2 n1 = 20 n2 = 30 x1 = 22.5 x2 = 20.1 s1 = 2.5 s2 = 4.8a. What is the point estimate of the difference between the two population means?b. What is the degrees of freedom for the t distribution?c.
8. Increases in Customer Satisfaction. Will improving customer service result in higher stock prices for the companies providing the better service? “When a company’s satisfaction score has improved over the prior year’s results and is above the national average (75.7), studies show its
7. Supermarket Customer Satisfaction. Consumer Reports uses a survey of readers to obtain customer satisfaction ratings for the nation’s largest supermarkets (Consumer Reports, https://www.consumerreports.org/products/grocery-stores-supermarkets/ratings-overview/).Each survey respondent is asked
6. Hotel Price Comparison. Suppose that you are responsible for making arrangements for a business convention and that you have been charged with choosing a city for the convention that has the least expensive hotel rooms. You have narrowed your choices to Atlanta and Houston. The file named Hotel
5. Valentine's Day Expenditures. USA Today reports that the average expenditure on Valentine’s Day is $100.89. Do male and female consumers differ in the amounts they spend? The average expenditure in a sample survey of 40 male consumers was$135.67, and the average expenditure in a sample survey
4. Cruise Ship Ratings. Condé Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100-point scale, with higher values indicating better service. A sample of 37 ships that carry fewer than 500 passengers resulted in an average rating of
3. Consider the following hypothesis test.H0:Ha:m1 2 m2 5 0 m1 2 m2 ± 0 The following results are for two independent samples taken from the two populations.Sample 1 Sample 2 n1 5 80 n2 5 70 x1 5 104 x2 5 106 s1 5 8.4 s2 5 7.6a. What is the value of the test statistic?b. What is the p-value?c.
2. Consider the following hypothesis test.H0:Ha:m1 2 m2 # 0 m1 2 m2 . 0 The following results are for two independent samples taken from the two populations.Sample 1 Sample 2 n1 5 40 n2 5 50 x1 5 25.2 x2 5 22.8 s1 5 5.2 s2 5 6.0a. What is the value of the test statistic?b. What is the p-value?c.
1. The following results come from two independent random samples taken of two populations.Sample 1 Sample 2 n1 5 50 n2 5 35 x1 5 13.6 x2 5 11.6 s1 5 2.2 s2 5 3.0a. What is the point estimate of the difference between the two population means?b. Provide a 90% confidence interval for the difference
83. TSA Security Line Wait Times. According to the U.S. Transportation Security Administration(TSA), 2% of the 771,556,886 travelers who utilized 440 federalized airports in 2017 waited more than 20 minutes in the TSA security line. The file TSAWaitTimes contains waiting times in TSA security lines
82. Potato Chip Quality Control. NDC Technology’s MM710e On-Line Snacks Gauge rapidly measures surface brownness of potato chips just before packaging. This allows for a high degree of control over this important characteristic of a potato chip; chips that are too brown are overfried, and chips
81. Time Spent Channel Surfing. According to Ericsson’s 2016 ConsumerLab TV &Media report, the average person in the United States spends 23 minutes per day channel surfing. The file ChannelSurfing provides the number of minutes per day looking for something to watch on television for a random
80. Soap Production Process. H0: m = 120 and Ha: m Þ 120 are used to test whether a bath soap production process is meeting the standard output of 120 bars per batch.Use a .05 level of significance for the test and a planning value of 5 for the standard deviation.a. If the mean output drops to 117
79. Federal Funding for Neighborhood Projects. A federal funding program is available to low-income neighborhoods. To qualify for the funding, a neighborhood must have a mean household income of less than $15,000 per year. Neighborhoods with mean annual household income of $15,000 or more do not
78. Construction Worker Idle Time. Shorney Construction Company bids on projects assuming that the mean idle time per worker is 72 or fewer minutes per day. A sample of 30 construction workers will be used to test this assumption. Assume that the population standard deviation is 20 minutes.a. State
77. Vegetarianism in the United States. Vegetarians are much less common in the United States than in the rest of the world. In a 2018 survey of 11,000 people in the United States, VeganBits found 55 who are vegetarians.a. Develop a point estimate of the proportion of people in the United States
76. Hotel Availability Over Holiday Weekend. A radio station in Myrtle Beach announced that at least 90% of the hotels and motels would be full for the Memorial Day weekend. The station advised listeners to make reservations in advance if they planned to be in the resort over the weekend. On
75. Using Social Media in a Job Search. According to Inc.com, 79% of job seekers used social media in their job search in 2018. Many believe this number is inflated by the proportion of 22- to 30-year-old job seekers who use social media in their job search. A survey of 22- to 30-year-old job
74. Millennial Dependency on Parents. Members of the millennial generation are continuing to be dependent on their parents (either living with or otherwise receiving support from parents) into early adulthood. A family research organization has claimed that, in past generations, no more than 30% of
73. Using Laptops on Flights. An airline promotion to business travelers is based on the assumption that two-thirds of business travelers use a laptop computer on overnight business trips.a. State the hypotheses that can be used to test the assumption.b. What is the sample proportion from an
72. Sleeping on Flights. According to Expedia, 52% of Americans report that they generally can sleep during flights. Are people who fly frequently more likely to be able to sleep during flights? Suppose we have a random sample of 510 individuals who flew at least 40,000 kilometers last year and 285
71. Length of Time to Sell a Home. According to the the National Association of Realtors, it took an average of three weeks to sell a home in 2017. Data for the sale of 40 randomly selected homes sold in Greene County, Ohio, in 2017 showed a sample mean of 3.6 weeks with a sample standard deviation
70. Residential Property Values. The chamber of commerce of a Florida Gulf Coast community advertises that area residential property is available at a mean cost of $125,000 or less per lot. Suppose a sample of 32 properties provided a sample mean of $130,000 per lot and a sample standard deviation
69. Wages of Workers Without High School Diploma. SmartAsset reports that the average weekly earnings for workers who have not received a high school diploma is$493 in 2018. Suppose you would like to determine if the average weekly earnings for workers who have received a high school diploma is
68. British Men’s Age at Marriage. Data from the Office for National Statistics show that the mean age at which men in Great Britain married in 2013 is 30.8 years. A news reporter noted that this represents a continuation of the trend of waiting until a later age to wed. A new sample of 47
67. Starting Salaries for Business Graduates. Michigan State University’s Collegiate Employment Research Institute found that starting salary for recipients of bachelor's degrees in business was $50,032 in 2017. The results for a sample of 100 business majors receiving a bachelor’s degree in
66. Exposure to Background Television. CNN reports that young children in the United States are exposed to an average of 4 hours of background television per day. Having the television on in the background while children are doing other activities may have adverse consequences on a child’s
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