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Statistical Techniques in Business and Economics, 17th Edition Solution Manual

Statistical Techniques in Business and Economics, 17th Edition Solution Manual provides expertly crafted summaries and insights to boost retention.

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    Chapter 01 - What Is Statistics? 1 - 1 Chapter 1 What I s Statistics? 1. a. Interval b. Ratio c. Nominal d. Nominal e. Ordinal f. Ratio (LO 1 - 5 ) 2. a. Ratio b. Nominal c. Ratio d. Ratio (LO 1 - 5 ) 3. Answer will vary. (LO 1 - 5 ) 4. a. Sample b. Population c. Population d. Sample (LO 1 - 3) 5. Qualitative data is not numerical, whereas quantitative data is numerical. Examples will vary by student. (LO 1 - 4) 6. A population is the entire group which you are studying. A sample is a subset taken from a population. (LO 1 - 3) 7. Discrete variables can assume only certain values, but continuous variables can assume any values within some range. Examples will vary. (LO 1 - 4 ) 8. a. A population is used because the professor likely has grades readily available from every student over the past 5 years. b. A population is employed because the information is easy to find. c. A population is used because the information is easy to find. d. A sample works because it is difficult to locate every musical. (LO 1 - 3) 9. a. Ordinal b. Ratio c. The newer system provided information on the distance between exits. (LO 1 - 5 ) 10. The cell phone provider is nominal level data. The minutes used are ratio level. Satisfaction is ordinal level. (LO 1 - 5 ) 11. If you were using this store as typical of all Barnes & Noble stores then it would be sample data. However, if you were considering it as the only store of interest, then the data would be population data. (LO 1 - 3) 12 . In a presidential election all votes are counted, thus it is similar to a census of the entire population. However, an “exit” poll consists of only some voters and thus is more like a sample of the entire population. (LO 1 - 3)

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    Chapter 01 - What Is Statistics? 1 - 2 13. Discrete Continuous Qualitative b. Gender d. Soft drink preference g. Student rank in class h. Rating of a finance professor Quantitative c. Sales volume of MP3 players f. SAT scores i. Number of home computers a. Salary e. Temperature Discrete Continuous Nominal b. Gender Ordinal d. Soft drink preference g. Student rank in class h. Rating of a finance professor Interval f. SAT scores e. Temperature Ratio c. Sales volume of MP3 players i. Number of home computers a. Salary (LO1 - 4 and LO1 - 5) 14. Answers will vary. (LO 1 - 5 ) 15. As a result of these sample findings, we can conclude that 120/300 or 40% of the white - collar workers would transfer outside the U.S. (LO 1 - 3 ) 16. The obvious majority of consumers (400/500, or 80%) believe the policy is fair. On the strength of these findings, we can anticipate a similar proportion of all customers to feel the same. (LO1 - 3)

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    Chapter 01 - What Is Statistics? 1 - 3 17. a. Manufacturer Difference General Motors Corp. 128,133 Chrysler 126,955 Ford Motor Company 112,975 Toyota Motor Sales USA Inc. 96,078 Nissan North America Inc. 72,146 Subaru of America Inc. 61,834 American Honda Motor Co Inc. 38,440 Kia Motors America Inc. 36,313 Hyundai Motor America 30,656 Mercedes - Benz 20,187 Audi of America Inc. 18,970 Mitsubishi Motors N A, Inc. 16,119 Land Rover 13,535 BMW of North America Inc. 12,202 Mazda Motor of America Inc. 7,407 Volvo 5,980 Mini 4573 Porsche Cars NA Inc. 4,337 Tesla 1,850 Lamborghini 372 Ferrari 164 Rolls Royce 19 Bentley - 351 Jaguar - 633 Maserati - 783 Smart - 2,512 Fiat - 3,650 Volkswagen of America Inc. - 6,585

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    Chapter 01 - What Is Statistics? 1 - 4 b. Percentage differences with top five and bottom five. Manufacturer % change from 2014 Lamborghini 75% Land Rover 32% Mitsubishi Motors N A, Inc. 25% Subaru of America Inc. 15% Audi of America Inc. 13% Volvo 13% Tesla 12% Porsche Cars NA Inc. 11% Mini 10% Ferrari 9% Chrysler 8% Kia Motors America Inc. 7% Mercedes - Benz 7% Nissan North America Inc. 6% Ford Motor Company 5% General Motors Corp. 5% Hyundai Motor America 5% Toyota Motor Sales USA Inc. 5% BMW of North America Inc. 5% American Honda Motor Co Inc. 3% Mazda Motor of America Inc. 3% Rolls Royce 3% Volkswagen of America Inc. - 2% Jaguar - 5% Maserati - 8% Fiat - 9% Bentley - 15% Smart - 29%

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    Chapter 01 - What Is Statistics? 1 - 5 c. (LO1 - 2) 18. The total amount spent is $603.86. The percents by group are: 75, 14, 4, and 7, respectively. (LO1 - 2)

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    Chapter 01 - What Is Statistics? 1 - 6 19. Earnings increase about $3 billion per year over the period. However 2008 sees a very large increase and 2009 sees a large decrease. Perhaps the earnings were affected by the financial “collapse” during the years 2008 - 2010. Perhaps $15 billion of 2008 earnings were somehow “advanced” from the next year or two? (LO1 - 2) 20. a. Qualitative variables: Pool, Garage, Township, Mortgage type, Default Quantitative variables: Price, Bedrooms, Size, Baths, FICO Years (LO1 - 4) b. Price measured in dollars: Continuous, Ratio scale Agent: Nominal Bedrooms are counted: Discrete, Ordinal??? Ratio scale Size measured in area of square feet: Contiguous, Ratio scale Pool measured as present or not: nominal Garage measured as present or not: nominal Baths are counted: Discrete, Ordinal?? Ratio scale Township is labeled: nominal Mortgage type measures as adjustable or fixed: nominal FICO is an index of a person’s ability to pay their bills: ratio Years are counted: ordinal Default: measured as yes or no: nominal (LO1 - 5 ) 21. a. League is a qualitative variable; the others are quantitative. (LO 1 - 4) b. League is a nominal level variable; the others are ratio level variables. (LO 1 - 5 ) 22. a. Bus Number, M anufacturer , and engine type are qualitative variables, the others are quantitative. (LO 1 - 4) b. Bus Number, Manufacturer, and Engine Type nominal level variables; the others are ratio level variables. (LO 1 - 5 )

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    Chapter 02 - Describing Data: Frequency Tables , Frequency Distributions, and Graphic Presentation 2 - 1 Chapter 2 Describing Data: Frequency Tables, Frequency Distributions , and Graphic Presentation 1. Pepsi - Cola has a 25% market share, found by 90/360. (LO 2 - 2 ) 2. Three classes are needed, one for each player. (LO 2 - 1) 3. Season Frequency Relative Frequency Winter 100 0.1 Spring 300 0.3 Summer 400 0.4 Fall 200 0.2 Total 1000 1.0 (LO 2 - 1) 4. City Frequency Relative Frequency Indianapolis 100 0.05 St. Louis 450 0.225 Chicago 1300 0.65 Milwaukee 150 0.075 (LO2 - 1) 5. a. A frequency table. Color Frequency Relative Frequency Bright White 130 0.10 Metallic Black 104 0.08 Magnetic lime 325 0.25 Tangerine Orange 455 0.35 Fusion Red 286 0.22 Total 1300 1.00 b.

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    Chapter 02 - Describing Data: Frequency Tables , Frequency Distributions, and Graphic Presentation 2 - 2

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    Chapter 02 - Describing Data: Frequency Tables , Frequency Distributions, and Graphic Presentation 2 - 3 c. d. Wellstone Inc. should produce 350,000 orange; 250,000 lime; 220,000 red; 100,000 white, and 80,000 black . These numbers are found by multiplying the relative frequency of each color by the 1,000,000 production level . (LO 2 - 2 ) 6. Maxwell Heating & Air Conditioning far exceeds the other corporations in sales. Mancell electric & Plumbing and Mizelle Roofing & Sheet Metal are the two corporations with the least amount of fourth quarter sales. (LO 2 - 2) Mizelle Maxwell Mancell Long Bay J & R Hoden 25000 20000 15000 10000 5000 0 Corporation Sales Chart of Sales 7. 2 5 = 32 < 38 < 64 = 2 6 therefore 6 classes (LO 2 - 3 ) 8. 2 5 = 32 < 45 < 64 = 2 6 suggests 6 classes. $29 $0 4.47 6 i    Use interval of 5. (LO 2 - 3 ) 9. 2 7 = 128 < 230 < 256 = 2 8 suggests 8 classes 567 235 41.5 8 i    Use interval of 45. (LO 2 - 3 )

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    Chapter 02 - Describing Data: Frequency Tables , Frequency Distributions, and Graphic Presentation 2 - 4 10. a. 2 5 = 32 < 53 < 64 = 2 6 suggests 6 classes. b. 129 42 14.5 6 i    Use interval of 15 and start first class at 40. (LO 2 - 3 )

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    Chapter 02 - Describing Data: Frequency Tables , Frequency Distributions, and Graphic Presentation 2 - 5 11. a. 2 4 =16 suggests 5 classes b. 31 25 1.2 5 i    Use interval of 1.5 c. 24 d. f Relative frequency 24 up to 25.5 2 0.125 25.5 up to 27 4 0.250 27 up to 28.5 8 0.500 28.5 up to 30 0 0.000 30 up to 31.5 2 0.125 Total 16 1.000 e. The number of units produced in the past 16 days range between 24 and 31 units. The largest concentration is in the 27 up to 28.5 class (8). (LO 2 - 3 ) 12. a. 2 4 = 16 < 20 < 32 = 2 5 suggest 5 classes b. 98 51 9.4 5 i    Use interval of 10. c. 50 d. f Relative frequency 50 up to 60 4 0.20 60 up to 70 5 0.25 70 up to 80 6 0.30 80 up to 90 2 0.10 90 up to 100 3 0.15 Total 20 1.00 e. The fewest number is about 50, the highest about 100. The greatest concentration is in classes 60 up to 70 and 70 up to 80. (LO 2 - 3 ) Visits f 13. a. 0 up to 3 9 3 up to 6 21 6 up to 9 13 9 up to 12 4 12 up to 15 3 15 up to 18 1 Total 51 b. The largest group of shoppers (21) shop at BiLo 3, 4 or 5 times during a month period. Some customers visit the store only 1 time during the month, but others shop as many as 15 times. c. Number of Percent of Visits Total 0 up to 3 17.65 3 up to 6 41.18 6 up to 9 25.49 9 up to 12 7.84 12 up to 15 5.88 15 up to 18 1.96 Total 100.00 (LO 2 - 3 )

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    Chapter 02 - Describing Data: Frequency Tables , Frequency Distributions, and Graphic Presentation 2 - 6 14. a. The 2 k rule would suggest 6 classes as 2 5 = 32 < 40 < 64 = 2 6 . With six classes the interval would be larger than (84 – 18) / 6 = 11, but as we are summarizing money observations a class interval of 10 is more convenient to work with. The frequency distribution using 10 is: f 15 up to 25 1 25 up to 35 2 35 up to 45 5 45 up to 55 10 55 up to 65 15 65 up to 75 4 75 up to 85 3 Total 40 b. Data tends to cluster in classes 45 up to 55 and 55 up to 65. c. Based on the distribution, the youngest person taking the Caribbean cruise is 15 years (actually 18 from the raw data). The oldest person was less than 85 years (actually 84 from the raw data) . The largest concentration of ages is between 45 up to 65 years. d. Ages Percent of Total 15 up to 25 2.5 25 up to 35 5.0 35 up to 45 12.5 45 up to 55 25.0 55 up to 65 37.5 65 up to 75 10.0 75 up to 85 7.5 Total 100.0 (LO 2 - 3 ) 15 . a. Histogram b. 100 c. 5 d. 28 e. 0.28 f. 12.5 g. 13 (LO 2 - 4 ) 1 6 . a. 3 b. about 26 c. 2 d. frequency polygon (LO 2 - 4 )

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    Chapter 02 - Describing Data: Frequency Tables , Frequency Distributions, and Graphic Presentation 2 - 7 1 7 . a. 50 b. 1.5 thousand frequent flier miles c. d. X = 1.5, Y = 5 e. f. For the 50 employees about half earn between 6 and 9 thousand frequent flier miles. Five earn less than 3 thousand frequent flier miles, and two earn more than 12 thousand frequent flier miles. (LO 2 - 4 ) 1 8 . a. 40 b. 2.5 days c. 2.5,6 d.

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    Chapter 02 - Describing Data: Frequency Tables , Frequency Distributions, and Graphic Presentation 2 - 8 d. e. e. f. Based on the charts, the shortest lead time is 0 days, the longest 25 days. The concentration of lead times is 10 - 15 days. (LO 2 - 4 ) 1 9 . a. 40 b. 5 c. 11 or 12 d. about $18 per hour e. about $9 per hour f. about 7 8 % (LO 2 - 4 ) 20 . a. 200 b. 50 or $50,000 c. about $180,000 d. about $240,000 e. about 60 homes f. about 145 homes (LO 2 - 4 ) 21 . a. 5 b. Miles CF

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    Chapter 02 - Describing Data: Frequency Tables , Frequency Distributions, and Graphic Presentation 2 - 9 Less than 3 5 Less than 6 17 Less than 9 40 Less than 12 48 Less than 15 50 c. d. about 8.7 thousand frequent flier miles (LO 2 - 4 )

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