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business statistics

Questions and Answers of Business Statistics

An airline marketing manager sent out 10,000 mail pieces to a random sample of customers to test a new web-based loyalty program. The customers received either nothing (No Offer), a free companion
Ingots are huge pieces of metal, often weighing in excess of 9000 kilograms, made in a giant mould. They must be cast in one large piece for use in fabricating large structural parts for cars and
According to a recent census, 29% of all families in Quebec were common-law couples. In order to test-market products to common-law couples, you need to select a city with a large percentage of this
McKinsey & Co. surveyed 12,000 Canadian households equally divided among low, middle, and high incomes as to whether they would be able to maintain their lifestyle after they stopped working,
Many fatal road accidents are due to preventable driver-related causes including drugs, alcohol, cell phone use, speeding, and failure to use a seatbelt or helmet. In 2014, 230 out of 265 fatal
Tangerine gives its banking customers a commission if they refer new people to open bank accounts at Tangerine. As a result, 55% of new customers at Tangerine came from referrals in 2014. Another
A company manufactures ceramic ball bearings, but customers complain that some of them are cracked. Some cracking is inevitable and the company accepts 0.2% cracked product. A random sample of ball
A Nanos Research survey for the Globe and Mail on energy and the environment in December 2014 asked what is the most environmentally responsible way to transport oil. Of 205 Canadian adults in the
A Nanos Research survey for the Globe and Mail on energy and the environment in December 2014 asked whether Canadians believe cooperation between Canada and the United States on these issues is
Ontario is the Canadian centre for solar panel manufacturing, with companies like Canadian Solar exporting around the world. A competing company manufactures 250 watt solar panels, but the
Angus Reid Strategies surveys Canadians as to whether they prefer an elected head of state instead of a monarch. The percentages preferring an elected head of state were 54% for men and 33% for women
The National Sample Survey identifies a segment of Indian households as the “Mature Middle Class” with an income of around 170,000 rupees per year. The rapid growth of the Indian economy has
A random survey of 1000 Canadians aged 20–24 in 2008 found that 61.4% lived with their parents. In 2013 a similar survey found 65.3% of Canadians aged 20–24 lived with their parents. Is there a
A random sample of 1000 families in Alberta reported 14% single-parent families. Another random sample of 700 families in Nova Scotia reported 17% single-parent families. Is there a lower percentage
An Angus Reid survey of 1000 adult Canadians about reform of the Canadian Senate found that 32% of people in Ontario supported abolishing the Senate of Canada, whereas the percentage in Quebec was
Suppose a professional survey of 1016 Canadian adults (assume a 50/50 split between men and women) found that 65% of men and 45% of women support scrapping the nickel.a) At what level of significance
Suppose a professional survey of 1016 Canadian adults found that support for scrapping the nickel was high in British Columbia (62%) and Ontario (55%). Do these survey results lead to the conclusion
Suppose a professional survey of 1016 Canadian adults found that 55% were in favour of scrapping the nickel and a reporter commented, “Over half of Canadian adults want to scrap the nickel.”a)
British Columbia introduced a carbon tax of $10 per tonne of carbon in 2008, rising by $5 per tonne each year until 2012. In 2011, with the tax at $25 per tonne, Environics surveyed 1025 British
Molson has been in business in Canada for over two and a quarter centuries, a fact that speaks to the consistent quality of the beer. Suppose Molson’s aim is that at least 98% of customers say the
In 2013, Angus Reid surveyed 1000 adult Canadians about reform of the Canadian Senate.a) 72% answered “Yes” to the question “Do you support allowing Canadians to directly elect their
During the entire history of Canada, 0.74% of the 4201 federal Members of Parliament have been Aboriginals. In 2015, 7 out of the 308 federal Members of Parliament were Aboriginal. Using the methods
Aboriginals make up 3.9% of the Canadian population, and in 2015, 7 out of the 308 federal Members of Parliament were Aboriginal. Using the methods given in this chapter, compare these pieces of
In May 2010, Public Safety Minister Vic Toews introduced a bill in Parliament proposing that sex offenders who have abused children should not be able to get a government pardon. Angus Reid conducted
Angus Reid Strategies regularly surveys Canadians as to whether they prefer an elected head of state instead of a monarch. The percentage preferring an elected head of state was 43% in November 2009,
In 2002, the Liberal government introduced “harm reduction” programs for drug users, such as supervised injection sites and needle-exchange programs. However, a Conservative government was
The Liberal government that decriminalized the possession of small quantities of marijuana was replaced by a Conservative government in the 2006 federal election. The new government considered
A philanthropic organization knows that its donors have an average age near 60, and so is considering taking out an ad in the Canadian Association of Retired Persons (CARP) magazine. The head of
The data set provided contains last month’s credit card purchases of 500 customers randomly chosen from a segment of a major credit card issuer. The Marketing Department is considering a special
A nonprofit company concerned with high school dropout rates has designed a tutoring program aimed at students between 16 and 18 years of age. Nationally, the high school dropout rate for the year
The accounting department of a major Canadian university would like to advertise that more than 50% of its graduates obtained a job offer prior to graduation. A sample of 240 recent graduates
An internal report from a manufacturing company indicated that about 3% of all products were defective. Data from one batch found only 4 defective products out of 233 products. Is this consistent
A company hopes to improve customer satisfaction, setting as a goal no more than 5% negative comments. A random survey of 350 customers found only 10 with complaints.a) Create a 95% confidence
In 2006, 34% of students had not been absent from school even once during the previous month. In a 2011 survey, responses from 8302 students showed that this figure had slipped to 33%. Officials
In a telephone poll of 1302 randomly selected men, only 39 said that their most important measure of success was their work.a) Estimate the percentage of all males who measure success primarily by
A newsletter reported that 90% of adults drink milk. A regional farmers’ organization planning a new marketing campaign across its multicounty area polls a random sample of 750 adults living there.
The same Gallup Poll data from Exercise 29 also reported that 33% of those surveyed rated the economy as “Poor.” The same media outlet claimed the true proportion to be 30%. Does the Gallup Poll
In 2008, a Gallup Poll asked 2336 U.S. adults aged 18 or over how they rated economic conditions. In a poll conducted from January 27 through February 1, 2008, 24% rated the economy as
A young investor is concerned that investing in the stock market is actually gambling, since the chance of the stock market going up on any given day is 50%. She decides to track her favourite stock
A mutual fund manager claims that at least 70% of the stocks she selects will increase in price over the next year. We examined a sample of 200 of her selections over the past three years. Our
An information technology analyst believes that her company is losing customers on its website who find the checkout and purchase system too complicated. She adds a one-click feature to the website
The clothing company in Exercise 19(a) looks at a sample of delivery reports. The company tests the hypothesis that 90% of the deliveries are on time against the alternative that greater than 90% are
In 2012, 14.8% of medium-sized businesses in Canada were foreign-controlled, according to Statistics Canada Table 1790005: “Corporations Returns Act (CRA), enterprise characteristics by country of
Last year, a luxury hotel chain operating across the Caribbean attracted 14% of Canadian snowbirds travelling to the Caribbean during February and found that 56% were “very satisfied” with their
An Angus Reid survey of 1003 Canadian adults and 1980 British adults found that 59% of the Canadian sample and 56% of the British sample thought that homosexuality is something people are born with
In an Angus Reid survey of opinions regarding same-sex marriage, 13% of a sample of 1003 Canadian adults said that same-sex couples should not have any legal recognition. The corresponding percentage
Utilities must forecast the demand for energy use far into the future, because it takes decades to plan and build new power plants. Ron Bears, who worked for a Maritime utility company, had the job
Suppose you’re working for Gallup Canada on a survey to estimate how many people believe that Canada should increase the amount of electric power generated by nuclear power stations. You conduct an
In 2014, Nanos Research conducted a survey of 1000 adult Canadians to determine their favourability toward the Alberta oil sands project. The responses were “favourable,” “somewhat
The University of Calgary’s Hotchkiss Brain Institute has developed a new procedure for treating stroke using a retrievable stent. Initial trials indicate a positive outcome in 55% of patients
Ipsos-Reid asked 900 Canadian adults whether they approve of using illegal or unauthorized online methods to access online music. In their responses, 12% of men said they completely approve, whereas
Suppose we surveyed 1006 Canadian adults and found that 41% believed that Canadian values were more right wing than 10 years previously.a) A newspaper reporting these results stated, “Canadian
Suppose we surveyed 1016 Canadian adults (assume half men and half women) and found that 65% of men and 45% of women support scrapping the five-cent coin (the nickel).a) Construct a 90% confidence
Suppose we surveyed 1000 adult Canadians about reform of the Canadian Senate. We found that 32% of people in Ontario supported abolishing the Senate of Canada, whereas the percentage in Quebec was
Research at the University of Manitoba has resulted in the development of high yielding, high protein soybeans particularly suited to the local climate. There has been rapid growth in the land area
Suppose we surveyed 1000 adult Canadians about reform of the Canadian Senate and 34% answered “Yes” to the question, “Do you support abolishing the Senate of Canada?”a) Construct a 95%
It’s not often that taxes are popular, but when Environics surveyed 1023 adult British Columbians in 2011, it found 54% in favour of the carbon tax in that province. At $25/tonne of carbon, the tax
Ipsos surveyed 1005 Canadian adults just after the Black Friday sale in 2014 and found that 24.7% of them had bought something during the Black Friday sales promotions.a) Calculate a 95% confidence
A survey of 1013 randomly selected Canadian adults asked whether they thought the government will impose a carbon tax on the oil sands in Alberta; only 12% thought that it would. Calculate a 90%
Abortion is legal in Canada, but public opinion is divided on the circumstances in which it should be publicly funded. According to a survey of 1002 randomly selected Canadian adults, 43% said the
Results from a January 2008 telephone survey conducted by Gallup showed that 57% of urban Colombian adults support a free trade agreement (FTA) with the United States. Gallup used a cluster sample in
ACT Inc. reported that 74% of 1644 randomly selected first-year college students returned to college the next year. Estimate the national first-year student retention rate.a) Check that the
In a random survey of 226 selfemployed individuals, 20 reported having had their tax returns audited by the Canada Revenue Agency in the past year. Estimate the proportion of self-employed
A real estate agent looks over the 15 listings she has in a particular postal code in Toronto and finds that 80% of them have swimming pools.a) Check the assumptions and conditions for inference on
A survey developed by Babson College and the Association of Women’s Business Centers (WBCs) was distributed to WBCs in the United States. Of a representative sample of 20 WBCs, 40% reported that
In 2008, a Gallup Poll asked 2335 Americans aged 18 or over how they rated economic conditions. In a poll conducted January 27–February 1, 2008, only 24% rated the economy as “Excellent/Good.”
For quality control purposes, 900 ceramic tiles were inspected to determine the proportion of defective (e.g., cracked, uneven finish) tiles. Assuming that these tiles are representative of all tiles
A student is considering publishing a new magazine aimed directly at owners of Japanese automobiles. He wants to estimate the fraction of cars in Canada that are made in Japan. The computer output
Recently, two students made worldwide headlines by spinning a Belgian euro 250 times and getting 140 heads—that’s 56%. That makes the 90% confidence interval (51%, 61%). Can we draw any
Consider each situation described below. Identify the population and the sample, explain what p and pn represent, and tell whether the methods of this chapter can be used to create a confidence
A market researcher estimates that the percentage of adults between the ages of 21 and 39 who will see a particular television ad is 15%, adding that he believes his estimate has a margin of error of
A corporate executive reports the results of an employee satisfaction survey, stating that 52% of employees say they are either “satisfied” or “extremely satisfied” with their jobs. The
In a Nanos Research survey of 1000 Canadian adults about how favourable they were toward the Alberta oil sands project, 30.5% were unfavourable and 16.9% were somewhat unfavourable. Of those who were
In a Nanos Research survey of 1000 Canadian adults about how favourable they were toward the Alberta oil sands project, 19.5% were favourable and 25.6% were somewhat favourable. Of those who were
Consider each situation described below. Identify the population and the sample, explain what p and p̂ represent, and tell whether the methods of this chapter can be used to create a confidence
A sample of 200 students is selected randomly on a large university campus. They are asked if they use a laptop in class to take notes. The result of the survey is that 70 of the 200 students
MBNA Canada’s affiliates program allows other organizations to offer credit cards to their members. The Toronto Blue Jays and the Edmonton Eskimos both use MBNA’s affiliates program, as does the
The Economist Intelligence Unit says there were 32.5 broadband subscribers per 100 people in Canada in 2012.a) We ask 1000 randomly selected Canadian adults whether they have broadband internet
According to a survey from Statistics Canada (Table 2020107, “Earnings of Individuals, by Selected Characteristics and North American Industry Classification System (NAICS), 2011 Constant
According to a survey from Statistics Canada (Table 2020107, “Earnings of Individuals, by Selected Characteristics and North American Industry Classification System (NAICS), 2011 Constant
According to the Canadian Census, the proportion of families with three or more children (aged less than 25) declined from 42% in 1961 to 19% in 2011. Suppose we estimate that this proportion is
On World Hepatitis Day, July 28, 2014, the BC Centre for Disease Control stated that 3% of British Columbians (about 130,000 people) were infected with hepatitis C. Although there is no vaccination
Using the data in Exercises 54 and 55, what is the probability that a random sample of 1500 families from Nova Scotia contains more loneparent families than a random sample of 1500 families from
Statistics Canada divides families into two groups: couple families and lone-parent families. According to Statistics Canada’s Table 1110009 “Family Characteristics, Summary,” in 2012 in
Statistics Canada divides families into two groups: couple families and lone-parent families. According to Statistics Canada’s Table 1110009 “Family Characteristics, Summary,” in 2012 in Nova
When the British Columbia government introduced a carbon tax in 2008, it didn’t want to lose votes, as might easily happen with a new tax. It therefore guaranteed that revenue from the carbon tax
CREA puts the average price at which a house was sold in Canada in 2014 at $415,100. Let’s assume that the standard deviation of the house prices is $134,216. Suppose you’d done a survey of a
The Economist Intelligence Unit says there were 132.6 computers per 100 people in Canada in 2012. We ask 1000 randomly selected Canadian adults how many computers they have; 100 of them say none; 500
Although most of us buy milk by the litre, quart, or gallon, farmers measure daily production in pounds. Ayrshire cows average 47 pounds of milk a day, with a standard deviation of 6 pounds. For
The weight of cement in a medium-size bag is stated to be 10 kilograms. The amount that the packaging machine puts in these bags is believed to have a Normal model with a mean of 10.2 kilograms and a
Grocery store receipts show that customer purchases have a skewed distribution with a mean of $32 and a standard deviation of $20.a) Explain why you cannot determine the probability that the next
Young cod are transferred from a hatchery to sea cages, and it then takes an average of 26 months for cod to reach market size, with a standard deviation of one month. The average weight of
Suppose that, according to a recent census, the income per capita measured in U.S. dollars was $41,287 in Canada and $43,298 in Norway. Let’s assume that income per capita is Normally distributed
Intact is the leading property and casualty (P&C) insurer in Canada and claimed 17% of the market in its “Quick Facts” report for 3Q14. The top five P&C insurers have 38% of the market.
Suppose that, according to a recent census, 29% of all families in the province of Quebec are common-law couples. You survey 100 families in the city of Montreal in order to assess the purchasing
In 1150, it was recognized in England that coins should have a standard weight of precious metal as the basis for their value. A guinea, for example, was supposed to contain 128 grains of gold.
Many variables important to the real estate market are skewed, limited to only a few values or considered as categorical variables. Yet marketing and business decisions are often made based on means
When a very large star reaches the end of its life it explodes, causing a supernova, a very intense burst of radiation that is sufficient to destroy almost all life on planets of nearby stars. Some
Maria is starting a career as a professional wildlife photographer and plans to photograph Canada geese at one of their staging grounds during their migration in northeastern Manitoba. She booked a
Statistics Canada provides data on the number of reportable transport accidents involving dangerous goods. The probability that reportable transport accidents involving dangerous goods in Canada

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