A grocery supplier believes that the mean number of broken eggs per dozen is 0.6, with a standard deviation of 0.5. You buy 3 dozen eggs without checking them. a) How many broken eggs do you expect to get? b) What’s the standard deviation? c) Is it necessary to assume the cartons of eggs are independent? Why?
> In Chapter 1, you identified the W’s for the data in the file Credit card bank. For the categorical variables in the data set, create frequency tables, bar charts, and pie charts using your software. What might the bank want to know about these variables
> Like all credit and charge card companies, this company makes money on each of its cardholders’ transactions. Thus, its profitability is directly linked to card usage. To increase customer spending on its cards, the company sends many different offers to
> The S&P/Case-Shiller Home Price Indices track changes in the value of residential real estate nationally and in 20 metropolitan regions. (Some of these indices are actually traded on the Chicago Mercantile Exchange.) The data set Case-Shiller by City giv
> According to the U.S. Securities and Exchange Commission (SEC), a mutual fund is a professionally managed collection of investments for a group of investors in stocks, bonds, and other securities. The fund manager manages the investment portfolio and tra
> GfK Roper Consulting conducts market research for multinational companies who want to understand attitudes in different countries so they can market and advertise more effectively to different cultures. Every year they conduct a poll worldwide, which ask
> At a casino, people play the slot machines in hopes of hitting the jackpot, but most of the time, they lose their money. A certain machine pays out an average of $0.92 (for every dollar played), with a standard deviation of $120. a) Why is the standard
> A young entrepreneur has just raised $30,000 from investors, and she would like to invest it while she continues her fund-raising in hopes of starting her company one year from now. She wants to do due diligence and understand the risk of each of her inv
> Design, carry out, and analyze your own multifactor experiment. The experiment doesn’t have to involve human subjects. In fact, an experiment designed to find the best settings for microwave popcorn, the best paper airplane design, or the optimal weight
> You are part of a marketing team that needs to research the potential of a new product. Your team decides to e-mail an interactive survey to a random sample of consumers. Write a short questionnaire that will generate the information you need about the n
> The Numbeo website (www.numbeo.com) provides access to a variety of data. One table lists prices of certain items in selected cities around the world. They also report an overall cost-of-living index for each city compared to the costs of hundreds of ite
> The CAPE10 index is based on the Price/Earnings (P/E) ratios of stocks. We can examine the P/E ratios without applying the smoothing techniques used to find the CAPE10. The file CAPE10 2017 holds the data, giving dates, various economic variables, CAPE10
> Between quarterly audits, a company likes to check on its accounting procedures to address any problems before they become serious. The accounting staff processes payments on about 120 orders each day. The next day, the supervisor rechecks 10 of the tran
> Occasionally, when I fill my car with gas, I figure out how many miles per gallon my car got. I wrote down those results after six fill-ups in the past few months. Overall, it appears my car gets 28.8 miles per gallon. a) What statistic have I calculate
> How much change do you have on you right now? Go ahead, count it. a) How much change do you have? b) Suppose you check on your change every day for a week as you head for lunch and average the results. What parameter would this average estimate? c) Su
> What about drawing a random sample only from cell phone exchanges? Discuss the advantages and disadvantages of such a sampling method compared with surveying randomly generated telephone numbers from non–cell phone exchanges. Do you think these advantage
> Anytime we conduct a survey, we must take care to avoid undercoverage. Suppose we plan to select 500 names from the city phone book, call their homes between noon and 4 p.m., and interview whoever answers, anticipating contacts with at least 200 people.
> Suppose that the appliance shop in Exercise 23 plans an 8-hour day. a) Find the mean and standard deviation of the number of repair calls they should expect in a day. b) What assumption did you make about the repair calls? c) Use the mean and standard
> Examine each of the following questions for possible bias. If you think the question is biased, indicate how and propose a better question. a) Do you think that price or quality is more important in selecting a tablet computer? b) Given humanity’s grea
> Examine each of the following questions for possible bias. If you think the question is biased, indicate how and propose a better question. a) Should companies that pollute the environment be compelled to pay the costs of cleanup? b) Should a company e
> The survey described in Exercise 38 asked, Many people believe this playground is too small and in need of repair. Do you think the playground should be repaired and expanded even if that means imposing an entrance fee to the park? Describe two ways this
> The survey of patrons waiting in line for the roller coaster in Exercise 37 asks whether they think it is worthwhile to wait a long time for the ride and whether they’d like the amusement park to install still more roller coasters. What biases might caus
> Some people have been complaining that the children’s playground at a municipal park is too small and is in need of repair. Managers of the park decide to survey city residents to see if they believe the playground should be rebuilt. They hand out questi
> An amusement park has opened a new roller coaster. It is so popular that people are waiting for up to three hours for a two-minute ride. Concerned about how patrons (who paid a large amount to enter the park and ride on the rides) feel about this, they s
> Four new sampling strategies have been proposed to help PTV determine whether enough cable subscribers are likely to purchase highspeed Internet service. For each, indicate what kind of sampling strategy is involved and what (if any) biases might result.
> A local cable TV company, Pacific TV (PTV), with customers in 15 towns is considering offering high-speed Internet service on its cable lines. Before launching the new service they want to find out whether customers would pay the $75 per month that they
> Prior to the mayoral election discussed in Exercise 33, the newspaper also conducted a poll. The paper surveyed a random sample of registered voters stratified by political party, age, sex, and area of residence. This poll predicted that Amabo would win
> A local TV station conducted an “Instant Poll” to predict the winner in the upcoming mayoral election. Evening news viewers were invited to phone in their votes, with the results to be announced on the late-night news. Based on the phone calls, the stati
> For warranty purposes, analysts want to model the number of defects on a screen of the new tablet they are manufacturing. Let X = the number of defective pixels per screen. If X can be modeled by: a) What is the expected number of defective pixels
> For the following reports about statistical studies, identify the following items (if possible). If you can’t tell, then say so—this often happens when we read about a survey. a) The population b) The population parameter of interest c) The sampling fram
> For the following reports about statistical studies, identify the following items (if possible). If you can’t tell, then say so—this often happens when we read about a survey. a) The population b) The population parameter of interest c) The sampling fram
> For the following reports about statistical studies, identify the following items (if possible). If you can’t tell, then say so—this often happens when we read about a survey. a) The population b) The population parameter of interest c) The sampling fram
> For the following reports about statistical studies, identify the following items (if possible). If you can’t tell, then say so—this often happens when we read about a survey. a) The population b) The population parameter of interest c) The sampling fram
> For the following reports about statistical studies, identify the following items (if possible). If you can’t tell, then say so—this often happens when we read about a survey. a) The population b) The population parameter of interest c) The sampling fram
> For the following reports about statistical studies, identify the following items (if possible). If you can’t tell, then say so—this often happens when we read about a survey. a) The population b) The population parameter of interest c) The sampling fram
> For the following reports about statistical studies, identify the following items (if possible). If you can’t tell, then say so—this often happens when we read about a survey. a) The population b) The population parameter of interest c) The sampling fram
> For the following reports about statistical studies, identify the following items (if possible). If you can’t tell, then say so—this often happens when we read about a survey. a) The population b) The population parameter of interest c) The sampling fram
> At its website (www.gallup.com) the Gallup World Poll reports results of surveys conducted in various places around the world. At the end of one of these reports about the reliability of electric power in Africa, they describe their methods, including ex
> Pew Research Center publishes polls on issues important in the news and about American life at its website, www.pewinternet.org. At the end of a report about a survey you can find a paragraph such as this one: These readings come from a national survey c
> A commuter finds that she waits an average of 14.8 seconds at each of five stoplights, with a standard deviation of 9.2 seconds. Find the mean and the standard deviation of the total amount of time she waits at all five lights. What, if anything, did you
> Major League Baseball, responding to concerns about their “brand,” tests players to see whether they are using performance-enhancing drugs. Officials select a team at random, and a drug-testing crew shows up unannounced to test all 40 players on the team
> The website www.gamefaqs.com asked, as their question of the day to which visitors to the site were invited to respond, “Do you ever read the end-user license agreements when installing software or games?” Of the 98,574 respondents, 63.47% said they neve
> An investment newsletter makes general predictions about the economy to help their clients make sound investment decisions. a) Recently they said that because the stock market had been up for the past three months in a row that it was “due for a correct
> Even though commercial airlines have excellent safety records, in the weeks following a crash, airlines often report a drop in the number of passengers, probably because people are afraid to risk flying. a) A travel agent suggests that since the law of
> Respond to the following questions: a) After an unusually dry autumn, a radio announcer is heard to say, “Watch out! We’ll pay for these sunny days later on this winter.” Explain what he’s trying to say, and comment on the validity of his reasoning. b)
> Respond to the following questions: a) A casino claims that its roulette wheel is truly random. What should that claim mean? b) A reporter on Market Place says that there is a 50% chance that the NASDAQ will hit a new high in the next month. What is th
> Corporations are also very interested in the value of their brand. The following chart displays the value of the top 6 carbonated soft drink brands in 2015 as collected by Millward Brown (www.millwardbrown .com/brandz/top-global-brands/2015/brand-categor
> Multinational corporations face stiff competition in the carbonated drink category (also known as soda or pop, depending on where you live). Data were collected on the 2015 U.S. market share of leading sellers of carbonated soft drinks, summarized in the
> For each description of data in Exercises 7 to 26, identify the W’s, name the variables, specify for each variable whether its use indicates it should be treated as categorical or quantitative, and for any quantitative variable identify the units in whic
> For each description of data in Exercises 7 to 26, identify the W’s, name the variables, specify for each variable whether its use indicates it should be treated as categorical or quantitative, and for any quantitative variable identify the units in whic
> For the cookie recipe experiment of Exercise 1, identify how Control, Randomization, and Replication were used. Exercise 1: For the following experiment, identify the experimental units, the treatments, the response, and the random assignment. A commer
> The American Veterinary Association claims that the annual cost of medical care for dogs averages $100, with a standard deviation of $30, and for cats averages $120, with a standard deviation of $35. a) What’s the expected difference in the cost of medi
> The amount of cereal that can be poured into a small bowl varies with a mean of 1.5 ounces and a standard deviation of 0.3 ounce. A large bowl holds a mean of 2.5 ounces with a standard deviation of 0.4 ounce. You open a new box of cereal and pour one la
> A newsletter for investors recently reported that the average stock price for a blue chip stock over the past 12 months was $72. No standard deviation was given. Is the standard deviation more likely to be $6, $16, or $60? Explain.
> A business publication recently released a study on the total number of years of experience in industry among CEOs. The mean is provided in the article, but not the standard deviation. Is the standard deviation most likely to be 6 months, 6 years, or 16
> The police department of a major city needs to update its budget. For this purpose, they need to understand the variation in their fines collected from motorists for speeding. As a sample, they recorded the speeds of cars driving past a location with a 2
> Two companies make batteries for cell phone manufacturers. One company claims a mean life span of 2 years, while the other company claims a mean life span of 2.5 years (assuming average use of minutes/month for the cell phone). a) Explain why you would
> A tire manufacturer believes that the tread life of its snow tires can be described by a Normal model with a mean of 32,000 miles and a standard deviation of 2500 miles. a) If you buy a set of these tires, would it be reasonable for you to hope that the
> Manufacturing and selling drugs that claim to reduce an individual’s cholesterol level is big business. A company would like to market their drug to women if their cholesterol is in the top 15%. Assume the cholesterol levels of adult American women can b
> A large philanthropic organization keeps records on the people who have contributed to their cause. In addition to keeping records of past giving, the organization buys demographic data on neighborhoods from the U.S. Census Bureau. Eighteen of these vari
> A survey of 200 middle managers showed a distribution of the number of hours of exercise they participated in per week with a mean of 3.66 hours and a standard deviation of 4.93 hours. a) According to the Normal model, what percent of managers will exer
> A company has discovered that a recent batch of batteries had manufacturing f laws, and has issued a recall. You have 10 batteries covered by the recall, and 3 are dead. You choose 2 batteries at random from your package of 10. a) Has the assumption of i
> Exercise 23 proposes modeling quarterly returns of a group of mutual funds with N(0.062, 0.018). The manager of this group of funds would like to f lag any fund whose return is unusually low for a quarter. What level of return would you consider to be un
> Suppose that job satisfaction scores can be modeled with N(100, 12). Human resource departments of corporations are generally concerned if the job satisfaction drops below a certain score. What score would you consider to be unusually low? Explain.
> Anna, a business major, took final exams in both Microeconomics and Macroeconomics and scored 83 on both. Her roommate Megan, also taking both courses, scored 77 on the Micro exam and 95 on the Macro exam. Overall, student scores on the Micro exam had a
> Each year thousands of high school students take either the SAT or ACT, standardized tests used in the college admissions process. Combined SAT scores can go as high as 1600, while the maximum ACT composite score is 36. Since the two exams use very diffe
> Every Normal model is defined by its parameters, the mean and the standard deviation. For each model described here, find the missing parameter. Don’t forget to draw a picture. a) m = 1250, 35% below 1200; s = ? b) m = 0.64, 12% above 0.70; s = ? c) s
> Every Normal model is defined by its parameters, the mean and the standard deviation. For each model described here, find the missing parameter. As always, start by drawing a picture. a) m = 20, 45% above 30; s = ? b) m = 88, 2% below 50; s = ? c) s =
> Consider the IQ model N(100, 16) one last time. a) What IQ represents the 15th percentile? b) What IQ represents the 98th percentile? c) What’s the IQR of the IQs?
> Consider the Normal model N(0.062, 0.018) for returns of mutual funds in Exercise 23 one last time. a) What value represents the 40th percentile of these returns? b) What value represents the 99th percentile? c) What’s the IQR of the quarterly returns
> In the Normal model N(100, 16) for IQ scores from Exercise 24, what cutoff value bounds the a) highest 5% of all IQs? b) lowest 30% of the IQs? c) middle 80% of the IQs? d) lowest 90% of all IQs?
> Based on the model N(0.062, 0.018) for quarterly returns from Exercise 23, what are the cutoff values for the a) highest 10% of these funds? b) lowest 20%? c) middle 40%? d) highest 80%?
> Your company bids for two contracts. You believe the probability that you get contract #1 is 0.8. If you get contract #1, the probability that you also get contract #2 will be 0.2, and if you do not get contract #1, the probability that you get contract
> Based on the Normal model N (100, 16) describing IQ scores from Exercise 24, what percent of applicants would you expect to have scores a) over 80? b) under 90? c) between 112 and 132? d) over 125?
> According to the Normal model N(0.062, 0.018) describing mutual fund returns in the 1st quarter of 2013 in Exercise 23, what percent of this group of funds would you expect to have return a) over 6.8%? b) between 0% and 7.6%? c) more than 1%? d) less
> For Exercises 23–30, use the 68–95–99.7 Rule to approximate the probabilities rather than using technology to find the values more precisely. Answers given for probabilities or percentages from Exercise 31 on assume that a calculator or software has been
> For Exercises 23–30, use the 68–95–99.7 Rule to approximate the probabilities rather than using technology to find the values more precisely. Answers given for probabilities or percentages from Exercise 31 on assume that a calculator or software has been
> For Exercises 23–30, use the 68–95–99.7 Rule to approximate the probabilities rather than using technology to find the values more precisely. Answers given for probabilities or percentages from Exercise 31 on assume that a calculator or software has been
> For Exercises 23–30, use the 68–95–99.7 Rule to approximate the probabilities rather than using technology to find the values more precisely. Answers given for probabilities or percentages from Exercise 31 on assume that a calculator or software has been
> For Exercises 23–30, use the 68–95–99.7 Rule to approximate the probabilities rather than using technology to find the values more precisely. Answers given for probabilities or percentages from Exercise 31 on assume that a calculator or software has been
> For Exercises 23–30, use the 68–95–99.7 Rule to approximate the probabilities rather than using technology to find the values more precisely. Answers given for probabilities or percentages from Exercise 31 on assume that a calculator or software has been
> For Exercises 23–30, use the 68–95–99.7 Rule to approximate the probabilities rather than using technology to find the values more precisely. Answers given for probabilities or percentages from Exercise 31 on assume that a calculator or software has been
> For Exercises 23–30, use the 68–95–99.7 Rule to approximate the probabilities rather than using technology to find the values more precisely. Answers given for probabilities or percentages from Exercise 31 on assume that a calculator or software has been
> A sporting goods manufacturer was asked to sponsor a local boy in two fishing tournaments. They claim the probability that he will win the first tournament is 0.4. If he wins the first tournament, they estimate the probability that he will also win the s
> Recently, the International Gaming Technology company issued the following press release: (LAS VEGAS, Nev.)—Cynthia Jay was smiling ear to ear as she walked into the news conference at the Desert Inn Resort in Las Vegas today, and well she should. Last n
> Insurance companies collect annual payments from homeowners in exchange for paying to rebuild houses that burn down. a) Why should you be reluctant to accept a $3000 payment from your neighbor to replace his house should it burn down during the coming y
> A sample of 1800 homes in different neighborhood of Washington, DC, in 2017 produced the data in the table for the number of bedrooms and house price. Is the price of the house independent of whether it has 3 or more bedrooms? Property Values In the
> The following table shows a sample of property listings and values from one neighborhood (one ZIP code) in the Washington, DC, area in September 2017: a) In this sample, what proportion of homes is valued at $500K or less? b) Are the number of bedrooms
> Professional polling organizations face the challenge of selecting a representative sample of U.S. adults by telephone. This has been complicated by people who only use cell phones and by others whose landline phones are unlisted. A careful survey by Dem
> In the real estate research described in Exercise 33, 64% of homes for sale have garages, 21% have swimming pools, and 17% have both features. a) What is the probability that a home for sale has a garage, but not a pool? b) If a home for sale has a gar
> Look again at the data in the electronic communications in Exercise 54. a) If we select a respondent at random, what’s the probability that we choose a person earning less than $50 K and responded “somewhat”? b) Among those earning $50–99.9K, what is t
> Look again at the data from the coffeehouse survey in Exercise 53. a) If we select a person at random, what’s the probability we choose a person between 18 and 24 years old who is spending more time at coffeehouses? b) Among the 18- to 24-year olds, wh
> Given the table of probabilities compiled for a department store chain in Exercise 58, are age and shopping at the department store independent? Explain.
> Given the table of probabilities compiled for marketing managers in Exercise 57, are high blood pressure and high cholesterol independent? Explain.
> A consumer organization inspecting new cars found that many had appearance defects (dents, scratches, paint chips, etc.). While none had more than three of these defects, 7% had three, 11% had two, and 21% had one defect. a) Find the expected number of a
> A European department store is developing a new advertising campaign for their new U.S. location, and their marketing managers need to understand their target market better. A survey of adult shoppers found the probabilities that an adult would shop at t
> A U.S. pharmaceutical company is considering manufacturing and marketing a pill that will help to lower both an individual’s blood pressure and cholesterol. The company is interested in understanding the demand for such a product. The j
> Twenty percent of cars that are inspected have faulty pollution control systems. The cost of repairing a pollution control system exceeds $100 about 40% of the time. When a driver takes her car in for inspection, what’s the probability that she will end
> Exercises 36 and 38 discussed the challenges faced by the Red Cross in finding enough blood of various types. But blood typing also depends on the Rh factor, which can be negative or positive. Here is a table of the estimated proportions worldwide for bl
> A Mintel study asked consumers if electronic communications devices influenced whether or not they bought a certain car. The table below gives the results classified by household income: If we select a person at random from this sample: a) What is the pr
> A Mintel report on coffeehouses asked consumers if they were spending more time in coffeehouses. The table below gives the responses classified by age: a) What is the probability that a randomly selected respondent is spending more time at coffeehouses a
