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Essentials of Business Statistics: Communicating With Numbers 1st Edition Solution Manual

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    Chapter 01 - Statistics and Data 1 - 1 Chapter 1. Statistics and Data Solutions 1. a. The population is all iPhone 4 users. b. Sample statistics 2. The value 35 is the estimated average age of the population . It is both costly and time consuming (likely impossible) to reach all video game players . 3. a. The population is all students enrolled in the accounting class. b. The value 3.29 represents the population parameter since we are not choosing a sample but drawing results from the actual population. 4. a. The population is all marketing managers. b. No, the average salary is a sample statistic computed from a sample, not the population. 5. a. The population is all elderly people. The sample consists of 949 elderly people. b. 22% and 17% represent the sample statistics.

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    Chapter 01 - Statistics and Data 1 - 2 6. Date Adj. Close Price Dec 10 $593.97 Nov 10 $555.71 Oct 10 $613.70 Sep 10 $525.79 Aug 10 $450.02 Jul 10 $484.85 Jun 10 $444.95 May 10 $485.63 Apr 10 $525.70 Mar 10 $567.12 Feb 10 $526.80 Jan 10 $529.94 Source: Monthly Adj Close Price in 2010 from http://www.finance.yahoo.com . Retrieved April 19, 2011 . These numbers represent time series data. The adjusted close price of the stock was rather volatile, with a 12 - month high in October and 12 - month low in June. 7. Note: Individual answers will vary. This is an example of what an answer may look like. Accommodation Monthly Expenses Dorm $435 Dorm $480 Rental $505 Other $50 Rental $600 Dorm $425 Rental $525 Other $550 Other $325 Dorm $385 Rental $475 Dorm $400 Dorm $485 Rental $485 Other $475 Dorm $425 Rental $500 Dorm $375 Rental $625 Other $350

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    Chapter 01 - Statistics and Data 1 - 3 This data is cross - sectional data because it can be assumed to be taken at the same point in time . The monthly lodging expenses ranges from a low of $50 to a high of $625. The average expense is $443.75. 8. Note: The data for this website changes regularly. Therefore, individual answers will differ depending on the date the data is retrieved. This is an example of what the table may look like: Homes Price Number of Beds Square Feet Built 1 $ 374,900 .00 3 3073 2004 2 $ 112,000 .00 4 1788 2005 3 $ 190,000 .00 3 1467 2009 4 $ 160,000 .00 4 1891 2000 5 $ 30,000 .00 3 1026 1977 6 $ 317,000 .00 4 3465 2004 7 $ 62,000 .00 3 1362 1973 8 $ 120,000 .00 3 2005 2002 9 $ 289,324 .00 3 1705 2008 10 $ 355,000 .00 4 3648 2001 11 $ 65,000 .00 2 1296 1976 12 $ 33,000 .00 4 1696 1987 13 $ 110,000 .00 3 1376 2000 14 $ 310,000 .00 5 3716 2001 15 $ 75,000 .00 3 1230 2004 16 $ 60,000 .00 3 1285 2004 17 $ 140,000 .00 4 2217 2003 18 $ 178,000 .00 4 1967 1998 19 $ 226,000 .00 1 533 2006 20 $ 128,000 .00 3 1483 2006 Source: http://zillow.com/ ; Retrieved August 20, 2012 . The data above is cross - sectional data. The data represents characteristics of homes sold at approximately the same time of the year.

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    Chapter 01 - Statistics and Data 1 - 4 9. DATE GPSAVE Q1.200 8 2138.9 Q2.200 8 2411.5 Q3.200 8 2333.9 Q4.200 8 2246.7 Q1.200 9 2503.8 Q2.200 9 2621.7 Q3.200 9 2556.6 Q4.200 9 2617.1 Q1.2010 2781.4 Q2.2010 2843.9 Q3. 2010 2888.3 Q4. 2010 2825.7 Q1.201 1 2794.6 Q2.201 1 2836.0 Q3. 201 1 2810.7 Q4. 201 1 2868.5 Source : http://research.stlouisfed.org/fred2/ ; Retrieved August 20, 2012 . These numbers represent time series data. Savings are increasing over this time period . 0 500 1000 1500 2000 2500 3000 3500 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Gross Private Savings (in billions of $) Quarters, 2008 - 2011 Gross Private Savings, 2008 - 2011

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    Chapter 01 - Statistics and Data 1 - 5 10. State Median Household Income in 2010 ($) Alabama 40,976 Arizona 47,279 California 54,459 Florida 44,243 Georgia 44,108 Indiana 46,322 Iowa 49,177 Maine 48,133 Massachusetts 61,333 Minnesota 52,544 Mississippi 37,985 New Mexico 45,098 North Dakota 51,380 Washington 56,253 Source: http://www.census.gov/ ; Retrieved August 20, 2012. These data are estimates for 2010 – you may be able to obtain more recent estimates. These numbers represent cross - sectional data. They record the median income by family size for different states. In this particular group of states, Massachusetts has the highest median income by family size whereas Mississippi has the lowest median income. Also, states in the North such as Massachusetts, Minnesota and Washington have higher incomes than Southern states. 11. a. Quantitative; discrete b. Qualitative c. Quantitative; continuous 12. a. Qualitative b. Quantitative; continuous c. Quantitative; discrete

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    Chapter 01 - Statistics and Data 1 - 6 13. a. Nominal b. Interval c. Ordinal 14. a. Ratio b. Ordinal c. Nominal 15. a. Ratio b. Interval c. Ratio 16. a. Nominal scale of measurement. The values differ in name. b. Major # of Students Accounting 5 Economics 7 Finance 5 Marketing 3 Management 6 Undecided 4

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    Chapter 01 - Statistics and Data 1 - 7 c. An inspection of the data shows that Economics has the highest number of students whereas Marketing has the lowest. 17. a. The Year data is measured on an interval scale. The values can be ranked, categorized and measured when using this kind of scale. However, there is no true zero point so we cannot calculate meaningful ratios between years. b. The Morningstar’s based rating system is measured on an ordinal scale. The values can be ranked and categorized but the differences between ranks are meaningless. The data shows that 80% of the companies have a three and four star rating. Only 20% have a five start rating. Also, the number of three and four star companies is the same. c. The Stock Price data is measured on a ratio scale. This type of scale is the strongest form of measurement. There is a true zero point which allows for the calculation of meaningful ratios between values. Rating Number of Companies *** 1 2 **** 1 2 ***** 6

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    Chapter 02 - Tabular and Graphical Methods 2 - 1 Chapter 2 Tabular and Graphical Methods Solutions 1. a. Rating Frequency Relative Frequency 5 12 12/36 = 0.333 4 9 9/36 = 0.250 3 7 7/36 = 0.194 2 5 5/36 = 0.139 1 3 3/36 = 0.083 Total 36 0.999 b. More than a third of the patrons are very satisfied with the entrees. Overall more than half of the customers gave a top rating of either 4 or 5. Only 8.3% gave the lowest rating. 2. a. Rating Frequency Relative Frequency Excellent 5 5/24 = 0.208 Good 12 12/24 = 0.500 Fair 4 4/24 = 0.167 Poor 3 3/24 = 0.125 Total 24 1 b. The m ost common response is G ood which comprises 50% of total responses. More than 70% of the patients reveal that they are in good or excellent health conditions. 3. a. Expectation Frequency Relative Frequency Better 5 5/25 = 0.20 Same 16 16/25 = 0.64 Worse 4 4/25 = 0.16 Total 25 1

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    Chapter 02 - Tabular and Graphical Methods 2 - 2 Most of the chief executives (64%) believed that the economy would be the same in the next 12 months. b. 4. a. Delays Frequency Relative Frequency PM Delays 1 1/18 = 0.056 All Day Delays 6 6/18 = 0.333 AM Delays 4 4/18 = 0.222 None 7 7/18 = 0.389 Total 18 1 Better 20% Same 64% Worse 16% Expectations of U.S. economy Better Same Worse 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 Better Same Worse Relative Frequency Expectation Type Expectations of U.S economy

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    Chapter 02 - Tabular and Graphical Methods 2 - 3 The most common delays were N one, comprising 38.9% of all delays. The second most common were A ll D ay D elays, comprising 33.3% of all delays. b. 5. a. 22 (18 + 4) out of 50 rookies received a rating of 4 or better; 14 (10 + 4) out of 50 rookies received a rating of 2 or worse. PM Delays 6% All Day Delays 33% AM Delays 22% None 39% Air Travel Delays PM Delays All Day Delays AM Delays None 0.00 0.10 0.20 0.30 0.40 0.50 PM Delays All Day Delays AM Delays None Relative Frequency Delay Type Air Travel Delays

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    Chapter 02 - Tabular and Graphical Methods 2 - 4 b. Rating Relative Frequency 1 4/50 = 0.08 2 10/50 = 0.2 3 14/50 = 0.28 4 18/50 = 0.36 5 4/50 = 0.08 Total 1 8% of the rookies received a rating of 5. c. 6. a. Response Frequency Good Jobs 0.37×5324 = 1970 Affordable homes 0.15×5324 = 799 Top schools 0.11×5324 = 586 Low crimes 0.23×5324 = 1225 Things to do 0.14×5324 = 745 Total 5324 122 5 respondents considered ‘ L ow crime s’ as the most important criteri on . 0 0.1 0.2 0.3 0.4 1 2 3 4 5 Relative Frequency Ratings Ratings of Pro - football Rookies

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    Chapter 02 - Tabular and Graphical Methods 2 - 5 b. 7. a. Top Vacation Choice Relative Frequency Cruises 140/316 = 0.443 Beaches 68/316 = 0.215 Amusement Parks 68/316 = 0.215 Big Cities 20/316 = 0.063 Lakes 12/316 = 0.038 Summer Camp 8/316 = 0.025 Total  1 44.3% of the children cited ‘Cruises’ as the perfect summer trip. 0 500 1000 1500 2000 2500 Good Jobs Affordable homes Top schools Low crimes Things to do Frequency Responses Survey Responses

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    Chapter 02 - Tabular and Graphical Methods 2 - 6 b. 8. a. Car - Rental Company Relative Frequency Enterprise 10.7/21.9 = 0.489 Hertz 4.7/21.9 = 0.215 Avis Budget 4/21.9 = 0.183 Dollar Thrifty 1.5/21.9 = 0.068 Other 1/21.9 = 0.046 Total 1 b. Hertz accounted for 21.5% of sales. c. 0 20 40 60 80 100 120 140 160 Cruises Beaches Amusement Parks Big Cities Lakes Summer Camp Frequency Vacation Choice Top Vacation Choice Survey Enterprise 49% Hertz 21% Avis Budget 18% Dollar Thrifty 7% Other 5% Car - Rental Company Revenues Enterprise Hertz Avis Budget Dollar Thrifty Other

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    Chapter 02 - Tabular and Graphical Methods 2 - 7 9. a. b. (0.4 * 829) = 332 respondents believe that a cure for cancer will be found. 10. a. The number of responses for “O thers ” is the difference between the total number of responses and the sum of responses in the table. That is, 20825 − 15241 = 5584 . b. The proportion of respondents that felt that the Green Bay Packers would win Super Bowl XLV is 1076/20,825 = 0.052. c. Team Relative Frequency Falcons 4040/20,825 = 0.194 0 0.1 0.2 0.3 0.4 0.5 Cure for cancer found End of dependence on oil Signs of life in outer space Peace in Middle East Other None will happen Relative Frequency Events CBS News Survey Cure for cancer found 40% End of dependence on oil 27% Signs of life in outer space 12% Peace in Middle East 8% Other 6% None will happen 7% CBS News Survey Cure for cancer found End of dependence on oil Signs of life in outer space Peace in Middle East Other None will happen

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    Chapter 02 - Tabular and Graphical Methods 2 - 8 Saints 1880/20,825 = 0.090 Texans 1791/20,825 = 0.086 Cowboys 1631/20,825 = 0.078 Vikings 1438/20,825 = 0.069 Colts 1149/20,825 = 0.055 Steelers 1141/20,825 = 0.055 Patriots 1095/20,825 = 0.053 Packers 1076/20,825 = 0.052 Others 5584/20,825 = 0.268 Total 20,825/20,825 = 1 11. a. Since 60% favored Obama and 30% favored Romney in terms of likeability, then 10% favored neither Obama nor Romney. b. Of the 500 respondents, 30 0 (=500×0. 6 0) favored Obama and 150 (=500×0.30) favored Romney. So Obama was favored by 150 more respondents. 12. a. According to this survey, an athlete in football was most likely to sustain an injury with lifelong consequences. An athlete in martial arts was least likely to sustain an injury with lifelong consequences. b. Approximately 79 respondents (= 992 ×0. 08) believed that professional hockey players were most likely to sustain an injury with lifelong consequences. 13. This graph does not correctly depict what has happened to Caterpillar’s stock price over this period. The graph has been given a relatively high value of $500 on the vertical axis. 0 0.05 0.1 0.15 0.2 0.25 0.3 Falcons Saints Texans Cowboys Vikings Colts Steelers Patriots Packers Others Relative Frequency Team Super Bowl XLV Poll

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