Questions and Answers of Statistics For Business And Economics

A professor of statistics recorded the amount of time to complete a 60-minute time limit quiz for each student in a class of 250. Draw a histogram. What does its shape tell you about times to
A random sample of high school students was asked how many minutes a day they spent on their cell phones. Draw a histogram and briefly describe what you have discovered.
Draw a histogram of the total value of mortgages and home equity loans secured by the primary residence held by the household (NH_MORT). What does the shape tell you about this variable?
For most middle-class households that own their own homes, the house is their biggest investment. Draw a histogram of the unrealized capital gain on their primary residence (KGHOUSE). Describe the
How well are middle-class households doing? To learn more about them, draw a histogram of households’ wage and salary incomes (WAGEINC). Is the graph symmetric or skewed? What does this tell you
The number of viewers (millions) of the Super Bowl games between 1967 and 2020 was recorded. Use a graphical technique to display these figures. Briefly describe your findings.
A sample of people who use software to complete their tax returns was asked how long it took them to calculate the tax and how many years’ experience they had with that software. Draw a scatter
Students reading this book should be particularly interested in determining whether there is a relationship between education and income. Draw a scatter diagram of EDUC and RINCOME to see whether the
We recorded the average test scores in the Scholastic Assessment Test (SAT) for college-bound seniors annually for the years 1966/67 to 2015/16. Some of the scores are shown here.Critical Reading
Draw a chart for each of the following.a. You wish to show that both verbal and mathematics test scores for all students have not changed much over the years.b. The exact opposite of part (a).c. You
The Supplemental Nutrition Assistance Program (SNAP), the program formerly known as food stamps, is a federal program to help relatively poor families buy healthy food. The monthly numbers of
To help you answer that question, try first answering these questions.1. Before Monty shows you what’s behind curtain C, what is the probability that the car is behind curtain A? What is the
Suppose that you are an American League manager. The game is tied in the middle innings of a game, and there is a runner on first base with no one out. Given the following probabilities of the four
A census of Americans over 60 years of age who have a post-graduate degree examined the relationship between age and type of post-graduate degree produced the following table of
In the population of adults who consume alcohol, 22% are between 18 and 29, 33% are between 30 and 49, 25% are between 50 and 64, and 20% are 60 and over. Surveys of adults who consume alcohol
There are four major parties in Canada: Conservative, Green, Liberal, and New Democrat. A survey asked a random sample of Canadians which party they support. From their responses, the following table
High school calculus is a requirement to be admitted to WLU’s undergraduate business program. Suppose that last year 53% of those admitted achieved a mark in calculus between 80 and 100, 27%
At WLU, newly hired faculty members have 5 years before they are required to apply for tenure. An analysis of past tenure decisions reveals that after 5 years, 35% have published more than five
There are three shifts at an automobile plant. Shift 1 makes 50%, shift 2 makes 40%, and shift 3 makes 10% of the vans produced in the plant. It is known that shift 1 has a defective rate of 1%,
Bank managers sometimes make decisions about whether to grant a loan simply on outward appearances. However, banks also use a technique called credit scoring to help make the decision. A credit
Power and Associates survey new car owners and ask a variety of questions. In a recent report they note that 60% of car buyers use the Internet for research and price comparisons. Find the
In his career, Babe Ruth hit an average of one home run per 11.76 at bats. If the Babe were cloned, what is the probability that the clone would hit more than 60 home runs in a season with 800 at
In an Abacus poll, 40% of Millennials believe that the province of Ontario is on the wrong track. To confirm these results, you take a sample of 200 Ontario Millennials and ask their opinion on the
A financial analyst reports that 7% of women between 35 and 45 are self-employed. A survey of 250 women between 35 and 45 was conducted. Compute the probability that more than 10% are self-employed.
A management consultant claims that 4% of American workers actually believe that they are overpaid. A Gallup survey was planned in which American workers were asked, among other questions, whether
An environmentalist claims that 20% of people would participate in a protest about climate change. You organize a survey wherein you plan to ask people about the issue. If the sample size is 400 and
A neighborhood group has complained that at an intersection near a school, half of all cars roll through the stop sign without coming to a complete halt. A statistics practitioner plans to observe a
A school board claims that 80% of its grade 10 students pass the state’s reading comprehension test. An auditor randomly selects 100 grade 10 students and determines whether each passed the test.
When two fair dice are used in a Las Vegas casino, the probability that the total equals 7 is 1/6. Find the probability that in next 100 tosses of the dice, the 7 occurs less than 12% of the time.
Given a Poisson random variable with μ = 2, use the formula to find the following probabilities.a. P(X = 0)b. P(X = 3)c. P(X = 5)
Here is another function.a. Determine the probability that X is less than 2.b. Find the probability that X is less than 3.c. What is the probability that X lies between 1and 2.5?
According to J.D. Power and Associates, the mean defect rate in a new Jaguar convertible is 2.4. What is the probability that a randomly selected new Jaguar convertible has 3 or more defects?
The mean number of accidents that occur daily on a stretch of highway is 12. Find the probability that there will be 12 accidents on this stretch of highway tomorrow.
A teacher’s union president claims that more than 90% of parents are satisfied with their children’s school. A group of unsatisfied parents hires a polling company to test the claim. If the
Here is another density function.a. Graph the density function.b. Determine the probability that X is less than 8.c. What is the probability that X lies between .4 and 10? f(x) = .40 =.05 0
The Internal Revenue Service (IRS) is attempting to change their image. After an advertising campaign showing how friendly and cooperative IRS auditors are, the commissioner of the IRS claims that
The Internal Revenue Service (IRS) is attempting to change their image. After an advertising campaign showing how friendly and cooperative IRS auditors are, the commissioner of the IRS claims that
A statistician working for Major League Baseball counted the number of foul balls hit into the stands and calculated that the number averages 7.2 per inning. What is the probability that in one
A survey asked Americans whether they think that taxes on large corporations should be increased, decreased, or stay the same. If 24% believe that taxes should be decreased, what is the probability
The average number of goals in a National Hockey League (NHL) game is 5.35. Determine the probability that there are 3 goals in a game.
In a large city, the annual amount of money households spend on food away from home is normally distributed. The mean and standard deviation are $2,200 and $700, respectively. Compute the probability
The Bureau of Labor Statistics gathers data about a variety of subjects. One of them is the Consumer Expenditures Survey. From this survey we learn that the mean annual expenditure of an American
In 2018, the amount of time it takes to play an average major league baseball game is 3 hours and 5 minutes (or 185 minutes). Assume that the game completion times are normally distributed with a
The U.S. Census states that the average net worth of a family that rents (rather than owns) their residence is $2,381. Assume that this variable is normally distributed with a standard deviation of
The number of emails that are received by an executive in a week is normally distributed with a mean and standard deviation of 220 and 40, respectively. Compute the probability that the executive
The amount of money spent by cruise passengers on land excursions is a normal random variable with a mean and standard deviation of $650 and $150, respectively. Find the three quartiles for this
Most restaurants suggest that tips should exceed 18%. In fact, tips are a normally distributed random variable with a mean of 15% and a standard deviation of 2%. Determine the tip amount that is
In middle class homes, the food budget is a normally distributed random variable with a mean of $5,800 and a standard deviation of $1,400.a. What is the probability that a randomly selected
The debt-to-income ratio is an important economic indicator. A large ratio may indicate that a particular household’s debt is unsustainable. Assume that this ratio is normally distributed with a
In the United States, capital gains on homes is taxable if the amount exceeds a set amount. In one large American city the amount of capital gains on houses was studied. It turns out that the
The weekly demand for a popular software sold by Business Depot is normally distributed with a mean of 42 and a standard deviation of 10. At the beginning of this week the store has on hand 46
The marks on the statistics midterm test are normally distributed with a mean of 72 and a standard deviation of 9. Pat Statsdud plans to do just enough work so that the midterm mark is better than
The monthly balances of the checking accounts of a bank’s customers are normally distributed with an average balance of $1,200 and a standard deviation of $250. If the bank wants to launch an
The lengths of full-term newborn babies are normally distributed with a mean of 50 cm and a standard deviation of 2 cm. Physicians express concern if a full-term newborn baby is in the bottom 20% in
A brewery sells cans of beer that are supposed to contain 355 ml. However, there is some variation in the amount of beer dispensed into each can. The mean amount is 356 ml with a standard deviation
A survey of Australian adults asked, what best describes your thoughts about climate change? The responses are 1= Human caused, 2 = Natural fluctuation, 3 = Not happening, 4 = Don’t know. There are
In a recent municipal election, the list of “eligible” voters contained 102,412 names. However, the list may contain a substantial number of names of voters who for one reason or another are
The lockdowns that were a reaction to the increasing number of deaths from the pandemic in 2020 caused financial hardship to a large number of American households. A U.S. Census Bureau survey asked
Despite the strong economy in 2018 and 2019, many Americans were feeling stress, worry, and anger. A Gallup survey asked a random sample of Americans 1 = years old and older if they felt stress the
Christmas shopping represents a major of revenue for retailers. A successful season usually means that the retailer will be profitable for the year. A Gallup survey conducted in October asked
In New York City the number of taxis allowed to operate is limited by the municipal government. The number of taxis has remained constant for a number of years. That number is 13,587. Taxi records
The Drive Clean program started in Ontario in 1999. Its purpose was to improve air quality by requiring older vehicles to be tested for the amount of pollutants emitted. If they exceeded a certain
Psychologists have been wrestling with the question of whether the birth order of children affects their intelligence. A study conducted in Norway took random samples of teenagers 18 and 19 years old
To learn more about the cost of food in Toronto, a survey was conducted and each respondent reported the annual cost of food to be consumed at home (in Canadian dollars). According to the U.S. Bureau
66°North, an outdoor apparel store in Iceland, is analyzing the defective items three items—parkas, trousers, and sweaters. From a total of 500 parkas, 780 trousers, and 720 sweaters, it sampled
A property agent is investigating the average renting price per month for the factories in an area. In his study area, totally there are 8 types of factories. He randomly selected 4 different types
Refer to the data in Exercise 17.3. Determine the sample size for Group 1 under each of the following schemes. Data From Exercise 17.3A teacher would like to know the average height (in
A researcher in Denmark is studying the reading habits of the people in the country. His sample that comprises three different cities—Aarhus, Esbjerg, and Copenhagen. Assume there are 150
A teacher would like to know the average height (in inches) of the students in her school. She divided the students into 4 groups based on their ages from the youngest to the oldest. The total number
In a stratified random sample of individuals—male and female—in Porvoo, Finland, sample members were asked to share the amount of time they spent on reading (in hours) per week. The results had
JM Property, a Nordic property developer, is considering the price for three housing subdivisions (apartment, single storey, and double storey) in Malmö, Sweden. Random samples of prices were taken
Bónus, an Icelandic supermarket chain, wants to know the level of consumer satisfaction derived from its four products—A, B, C, and D. The company’s sales records showed that 10,000 customers
Refer to the data in Exercise 17.4. Determine the sample size for female individuals in Porvoo, Finland, by under each of the following schemes.Data From Exercise 17.4In a stratified random sample of
Refer to the data in Exercise 17.2. Determine the sample size for Copenhagen under each of the following schemes.a. Proportional allocationb. Optimum allocation for the overall population mean.Data
The program director for Aarhus School of Business, Denmark, is analyzing the marks obtained by students from three different modules—Business Economics, and Political Science. For Business, he
An economist is studying the average profit earned by companies in Stuttgart, Germany. Assume that Stuttgart consists of 576 companies. A simple random sample of 10 companies was selected, and each
A cellphone technician wishes to estimate the average lifetime (in years) of a cellphone battery in the current market. In total there are 1183 different brands of cellphone battery selling in the
Alex Perry is an Australian fashion designer and television presenter, known for his womenswear. To estimate the mean time (in hours) taken by a tailor to create a woman’s gown, which will be part
A researcher at Procter & Gamble (P&G) wants to determine the consumers’ satisfaction proportion on 3 different fabric softener brands—Downy (United States), Cuddly (Australia), and Makom
The University of Jordan, the Middle East, is counting the mean research papers published per year by its faculty members—professors, senior lecturers, and lecturers. The university has 55
Given the following analysis of variance table, compute mean squares for between groups and within groups. Compute the F ratio and test the hypothesis that the group means are equal. Source
A manufacturer of cereal is considering three alternative box colors—red, yellow, and blue. To check whether such a consideration has any effect on sales, 16 stores of approximately equal size are
Given the information in the following table, compute the F ratio and test the hypothesis that the group means are equal. The SST = 378. Size, n; Mean, x₁ SS₁ Group 1 Group
An instructor at the University of Liège, Belgium, teaches a class of 28 students. At the beginning of the semester, each student is randomly assigned to one of four teaching assistants—Lucas,
Starbucks is launching their new member cards in three different designs for this coming Christmas. A branch manager would like to know whether the average sales of the three cards are the same for 5
Two tutoring services offer crash courses in preparation for the CPA exam. To check on the effectiveness of these services, twenty-one students were chosen. Seven students were randomly assigned to
Independent random samples of 6 advertisements were taken from three different magazines: EuroScientist, Focus, and Science Reporter. The fog indices, measuring the reading difficulty of a written
Consider a problem with three subgroups with different subgroup sizes of n1 = 8, n2 = 7, and n3 = 6. The sum of ranks in each of these subgroups equal to 131, 58, and 42. Complete the Kruskal-Wallis
Consider a problem with three subgroups with the ranks in each subgroup shown as follows. Complete the Kruskal-Wallis test and test the null hypothesis to determine whether the subgroups have equal
Consider a problem with four subgroups with the sum of ranks in each of the subgroups equal to 227, 151, 198, and 271 and with subgroup sizes equal to 5, 9, 15, and 12. Complete the Kruskal-Wallis
A pharmacist randomly selected a group of 45 individuals with a similar level of back pain. The participants randomly distributed into three treatment groups in which using three different medicines
Consider a two-way analysis of variance with one observation per cell and randomized blocks with the following results:Compute the mean squares and test the hypotheses that between-group means are
Consider a two-way analysis of variance with one observation per cell and randomized blocks with the following results:Compute the mean squares and test the hypotheses that between-group means are
Consider a two-way analysis of variance with one observation per cell and randomized blocks with the following results:Compute the mean squares and test the hypotheses that between-group means are
In Greece, an agricultural experiment designed to assess differences in yields of olives for four different varieties (Athenolia, Black olives, Green olives, and Koroneiki), using six different
For the data of Exercise 15.34, obtain sample estimates for each term on the right-hand side of the equation used in the previous exercise for the text C–multiple choice combination.Data From
A company has test-marketed three new types of soup in selected stores over a period of 1 year. The following table records sales achieved (in thousands of dollars) for each of the three soups in
We introduced for the two-way analysis of variance the population modelFor the data of Exercise 15.33, obtain sample estimates for each term on the right-hand side of this equation for the east
Four real estate agents were asked to appraise the values of 10 houses in a particular neighborhood. The appraisals were expressed in thousands of dollars, with the results shown in the following
Consider an experiment with treatment factors A and B, with factor A having four levels and factor B having three levels. The results of the experiment are summarized in the following analysis of

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