2.99 See Answer

Question: Refer to Exercise 7.40. A previous


Refer to Exercise 7.40. A previous analysis of historical records found that the mean value of orders for promotional goods is $20, with the company earning a gross profit of 20% on each order. Calculate the expected value of the profit contribution next year.
Data from Exercise 7.40:
To examine the effectiveness of its four annual advertising promotions, a mail-order company has sent a questionnaire to each of its customers, asking how many of the previous year’s promotions prompted orders that would not otherwise have been made. The table lists the probabilities that were derived from the questionnaire, where X is the random variable representing the number of promotions that prompted orders. If we assume that overall customer behavior next year will be the same as last year, what is the expected number of promotions that each customer will take advantage of next year by ordering goods that otherwise would not be purchased?


> Among many other pieces of information, the U.S. Census Bureau records the race or ethnicity of the residents of every county in every state. From these results, the bureau calculated a “diversity index” that measures the probability that two people chos

> A study undertaken by the Miami-Dade Supervisor of Elections revealed that 44% of registered voters are Democrats, 37% are Republicans, and 19% are others. If two registered voters are selected at random, what is the probability that both of them have th

> A foreman for an injection-molding firm admits that on 10% of his shifts, he forgets to shut off the injection machine on his line. This causes the machine to overheat, increasing the probability from 2% to 20% that a defective molding will be produced d

> Refer to Exercise 6.6. Employing the subjective approach a political scientist has assigned the following probabilities: P(Adams wins) = .42 P(Brown wins) = .09 P(Collins wins) = .27 P(Dalton wins) = .22 Determine the probabilities of the following event

> A telemarketer calls people and tries to sell them a subscription to a daily newspaper. On 20% of her calls, there is no answer or the line is busy. She sells subscriptions to 5% of the remaining calls. For what proportion of calls does she make a sale?

> The following table lists the bivariate distribution of X and Y . a. Find the marginal probability distribution of X. b. Find the marginal probability distribution of Y . c. Compute the mean and variance of X. d. Compute the mean and variance of Y .

> An aerospace company has submitted bids on two separate federal government defense contracts. The company president believes that there is a 40% probability of winning the first contract. If they win the first contract, the probability of winning the sec

> Refer to Exercise 6.66. Suppose that three people are selected at random. a. Draw a probability tree and insert the probabilities of each branch. b. What is the probability of no right-handers, one right-hander, two right-handers, and three right-handers

> Suppose there are 100 students in your accounting class, 10 of whom are left-handed. Two students are selected at random. a. Draw a probability tree and insert the probabilities for each branch. What is the probability of the following events? b. Both ar

> Refer to Exercise 6.64. Suppose that three people are selected at random. a. Draw a probability tree to depict the experiment. b. If we use the notation RRR to describe the selection of three right-handed people, what are the descriptions of the remainin

> Approximately 10% of people are left-handed. If two people are selected at random, what is the probability of the following events? a. Both are right-handed. b. Both are left-handed. c. One is right-handed and the other is left-handed. d. At least one is

> Given the following probabilities, find the joint probability P(A and B). P(A) = .7 P(B 0 A) = .3

> Given the following probabilities, draw a tree to compute the joint probabilities. P(A ) = .8 P(B 0 A ) = .3 P(AC ) = .2 P(B 0 AC ) = .3

> Draw a probability tree to compute the joint probabilities from the following probabilities. P(A) = .5 P(B 0 A) = .4 P(AC ) = .5 P(B 0 AC ) = .7

> Determine all joint probabilities from the following. P(A) = .8 P(B 0 A) = .4 P(AC ) = .2 P(B 0 AC ) = .7

> Four candidates are running for mayor. The four candidates are Adams, Brown, Collins, and Dalton. Determine the sample space of the results of the election.

> At a private golf course known for its excellent golfers a statistician quizzed the members to determine how many holes in one each made in their lifetime. From his work the following probability distribution of the number of career holes in one. One me

> Given the following probabilities, compute all joint probabilities. P(A) = .9 P(B 0 A) = .4 P(AC ) = .1 P(B 0 AC ) = .7

> Here are the joint probabilities for CNN. a. If one person is selected at random what is the probability that he or she distrusts CNN? b. Find the probability that a consistent Conservative trusts CNN. c. Compute the probability that a mostly Liberal ne

> We list the joint probabilities for Fox News. a. Determine the probability that a consistent Liberal would distrust Fox News. b. Find the probability that a mostly Conservative trusts Fox News c. Find the probability that a consistent Conservative neith

> Here are the joint probabilities for MSNBC a. Compute the probability that a mostly Conservative would distrust MSNBC. b. Find the probability that a mixed Liberal– Conservative would neither trust nor distrust MSNBC. c. If one person

> After tabulating the results for NBC news the table of joint probabilities was created. a. Find the probability that one respondent selected at random would trust NBC News. b. What is the probability that a consistent Conservative would distrust NBC New

> There are no universally accepted definitions of the ages of Millennials and Generation Xers; the consensus is that the former are Americans born between 1984 and 2000 and the latter are Americans born between 1965 and 1984. Baby boomers are defined as p

> There are three major political parties in Canada. They are Conservatives, Liberals, and New Democrats. Suppose that in one city the breakdown of the party preferences and gender produced the following table of joint probabilities. a. Find the probabili

> Arthritis is an inflammation of one or more joints. The symptoms are pain and stiffness, which usually worsen with age. Suppose that an analysis of age and incidence of arthritis produced the following table of joint probabilities. a. What is the probab

> A Gallup survey asked a sample of Americans how much confidence they had in the criminal justice system. After recording the responses as well as the race of the respondent, the following table of joint probabilities was created. a. Calculate the probab

> The decision about where to build a new plant is a major one for most companies. One of the factors that is often considered is the education level of the location’s residents. Census information may be useful in this regard. After anal

> Refer to Exercise 7.42. Compute the mean, variance, and standard deviation of the population. Data from Exercise 7.42: An expensive restaurant conducted an analysis of the number of people at tables from which the probability distribution was developed.

> The sample space of the toss of a fair die is S = 51, 2, 3, 4, 5, 66 If the die is balanced each simple event has the same probability. Find the probability of the following events. a. An even number b. A number less than or equal to 4 c. A number greate

> To gauge the relationship between education and unemployment, an economist turned to the U.S. Census from which the following table of joint probabilities was produced: a. What is the probability that a high school graduate is unemployed? b. Determine t

> A retail outlet wanted to know whether its weekly advertisement in the daily newspaper works. To acquire this critical information, the store manager surveyed the people who entered the store and determined whether each individual saw the ad and whether

> Credit scorecards are used by financial institutions to help decide to whom loans should be granted. An analysis of the records of one bank produced the following probabilities. a. What proportion of loans are fully repaid? b. What proportion of loans g

> How are the size of a firm (measured in terms of the number of employees) and the type of firm related? To help answer the question, an analyst referred to the U.S. Census and developed the following. If one firm is selected at random, find the probabil

> A firm has classified its customers in two ways: (1) according to whether the account is overdue and (2) whether the account is new (less than 12 months) or old. An analysis of the firm’s records provided the input for the following tab

> Refer to Exercise 6.43. A similar analysis produced these joint probabilities. a. What is the probability that a school with an enrollment of less than 300 had at least one violent crime during the year? b. What is the probability that a school that has

> Violent crime in many American schools is an unfortunate fact of life. An analysis of schools and violent crime yielded the table of joint probabilities shown next. If one school is randomly selected find the following probabilities. a. Probability of a

> The issue of health care coverage in the United States is becoming a critical issue in American politics. A large-scale study was undertaken to determine who is and is not covered. From this study, the following table of joint probabilities was produced.

> Is there a relationship between the male hormone testosterone and criminal behavior? To answer this question, medical researchers measured the testosterone level of penitentiary inmates and recorded whether they were convicted of murder. After analyzing

> An expensive restaurant conducted an analysis of the number of people at tables from which the probability distribution was developed. If one table is selected at random determine the probability of the following events. a. Table has more than 4 people

> Many critics of television claim that there is too much violence and that it has a negative effect on society. There may also be a negative effect on advertisers. To examine this issue, researchers developed two versions of a cops-and-robbers made-for-te

> An investor tells you that in her estimation there is a 60% probability that the Dow Jones Industrial Averages index will increase tomorrow. a. Which approach was used to produce this figure? b. Interpret the 60% probability.

> An analysis of fired or laid-off workers, their age, and the reasons for their departure produced the following table of joint probabilities. a. What is the probability that a 25- to 54-yearold employee was laid off or fired because of insufficient work

> To determine whether drinking alcoholic beverages has an effect on the bacteria that cause ulcers, researchers developed the following table of joint probabilities. a. What proportion of people have ulcers? b. What is the probability that a teetotaler (

> A restaurant chain routinely surveys its customers. Among other questions, the survey asks each customer whether he or she would return and to rate the quality of food. Summarizing hundreds of thousands of questionnaires produced this table of joint prob

> The method of instruction in college and university applied statistics courses is changing. Historically, most courses were taught with an emphasis on manual calculation. The alternative is to employ a computer and a software package to perform the calcu

> Refer to Exercise 6.34. Are smoking and lung disease among 60- to 65-year-old men related? Explain. Data from Exercise 6.34: The costs of medical care in North America are increasing faster than inflation, and with the baby boom generation soon to need h

> The costs of medical care in North America are increasing faster than inflation, and with the baby boom generation soon to need health care, it becomes imperative that countries find ways to reduce both costs and demand. The following table lists the joi

> The following table lists the probabilities of unemployed females and males and their educational attainment. a. If one unemployed person is selected at random, what is the probability that he or she did not finish high school? b. If an unemployed femal

> A department store analyzed its most recent sales and determined the relationship between the way the customer paid for the item and the price category of the item. The joint probabilities in the following table were calculated. a. What proportion of pu

> Discrimination in the workplace is illegal, and companies that discriminate are often sued. The female instructors at a large university recently lodged a complaint about the most recent round of promotions from assistant professor to associate professor

> Refer to Exercise 6.28. a. Compute P(A1 or A2). b. Compute P(A2 or B2). c. Compute P(A3 or B1). Data from Exercise 6.28: Suppose we have the following joint probabilities. Compute the marginal probabilities. A, Az A, B, B2 .15 .20 .10 .25 .25 .05

> A quiz contains a multiple-choice question with five possible answers, only one of which is correct. A student plans to guess the answer because he knows absolutely nothing about the subject. a. Produce the sample space for each question. b. Assign proba

> Refer to Exercise 6.28. a. Compute P(A2 ∣B2). b. Compute P(B2 ∣A2). c. Compute P(B1 ∣A2). Data from Exercise 6.28: Suppose we have the following joint probabilities. Compute the marginal probabili

> Suppose we have the following joint probabilities. Compute the marginal probabilities. A, Az A, B, B2 .15 .20 .10 .25 .25 .05

> Determine whether the events are independent from the following joint probabilities. A, Az B, B2 .20 .15 .60 .05

> Suppose that you have been given the following joint probabilities. Are the events independent? Explain. A, Az B, B2 .20 .60 .05 .15

> Refer to Exercise 6.21. Compute the following. a. P(A1 or B1) b. P(A1 or B2) c. P(A1 or A2) Data from Exercise 6.21: Calculate the marginal probabilities from the following table of joint probabilities. A, A, .4 .3 B, B2 .2 .1

> Are the events in Exercise 6.21 independent? Explain. Data from Exercise 6.21: Calculate the marginal probabilities from the following table of joint probabilities. A, A, .4 .3 B, B2 .2 .1

> Refer to Exercise 6.21. a. Determine P(A1 ∣B2). b. Determine P(B2 ∣A1). c. Did you expect the answers to parts (a) and (b) to be reciprocals? In other words, did you expect that P(A1 ∣B2) = 1/P(B2 ∣A1)? Why is this impossible (unless both probabilities a

> To examine the effectiveness of its four annual advertising promotions, a mail-order company has sent a questionnaire to each of its customers, asking how many of the previous year’s promotions prompted orders that would not otherwise h

> Refer to Exercise 6.21. a. Determine P(A1 ∣B1). b. Determine P(A2 ∣B1). c. Did your answers to parts (a) and (b) sum to 1? Is this a coincidence? Explain. Data from Exercise 6.21: Calculate the marginal probabilities from the following table of joint pro

> Calculate the marginal probabilities from the following table of joint probabilities. A, A, .4 .3 B, B2 .2 .1

> Given the following table of joint probabilities, calculate the marginal probabilities. A, Az A3 B, B2 .1 3 .2 .2 .1 .1

> A sportscaster states that he believes that the probability that the New York Yankees will win the World Series this year is 25%. a. Which method was used to assign that probability? b. How would you interpret the probability?

> Refer to Exercise 6.18. The results of the survey are listed next. How Safe is Uber? Responses (%) Very safe 17 Somewhat safe 28 Somewhat unsafe 21 Very unsafe 12 Not sure 22 If

> Uber, the ride-sharing service has been encountering protests mostly from taxi drivers. The taxi industry claims that Uber is more dangerous than other taxis because of the lack of government scrutiny. A survey was conducted where people were asked, “In

> Refer to Exercise 2.55. Here is a list of the top 10 foreign governments that own the U.S. debt (in order of magnitude). Depict these figures with a graph. Government Debt China, m

> Refer to Exercise 6.16. The numbers (in millions) of Americans speaking non-English languages at home are listed next. Language Spoken at Home Millions of Americans Spanish 38.4 Chinese 3.0 Tagalog 1.6 Vietnamese 1.4 F

> As of May 2016 the U.S. government owes $19,190,059,553,782. To whom does the U.S. government owe money? The list is shown below (in $billions). Use a graphical technique to depict these figures. U.S. Individuals and Institutions

> The Gallup poll in Exercise 2.40 asked American adults about their views on economic issues. The survey also asked which political party they supported. 1. Democrat 2. Independent 3. Republican Use a graphical technique to gauge the differences between t

> Refer to Exercise 7.38. Further analysis by the manager revealed that the cost of processing each page of a fax is $.25. Determine the mean and variance of the cost per fax. Data from Exercise 7.38: After an analysis of incoming faxes, the manager of an

> Exercise 2.39 featured a Gallup survey of American adults asking whether they are liberal, moderate or conservative on social issues. In addition, the survey asked respondents whether they considered themselves to be 1. Democrat 2. Independent 3. Republi

> To help determine the need for more golf courses, a survey was undertaken. A sample of 75 self-declared golfers was asked how many rounds of golf they played last year. Draw a histogram and describe what it tells you.

> In addition to asking American adults whether they support keeping the Affordable Care Act the Gallup poll determined whether the respondents were 1. Democrats or 2. Republicans. Determine whether Democrats and Republicans differ in their support of the

> In Exercise 2.35 a Gallup survey asked American adults whether they believed that upperincome people are paying their fair share in federal taxes. Each respondent was also classified as 1. Conservative 2. Moderate 3. Liberal Present a graphical method to

> Exercise 2.34 presented the data from a Pew Research Center survey of American adults describing whether their friends share their political views. Also recorded were the political views of the respondents. The responses are as follows: 1. Consistent co

> Residents of condominiums were recently surveyed and asked a series of questions. Identify the type of data for each question. a. What is your age? b. On what floor is your condominium? c. Do you own or rent? d. How large is your condominium (in square f

> Also recorded was the gender (1 = male, 2 = female) of the respondents. Use a graphical technique to determine whether the choice of light beers differs between genders. Refer to Exercise 2.33. 1. Bud Light 2. Busch Light 3. Coors Light 4. Michelob Light

> In 2010, the total number of prescriptions sold in the United States was 3,676,000 (Source: National Association of Drug Store Chains). The sales manager of a chain of drug stores wanted to determine whether changes in where the prescriptions were filled

> There are 62 million Americans who speak a language other than English at home. The languages are Spanish, Chinese Tagalog (Philippines language), Vietnamese, French, Korean, and others. Suppose that one of these individuals is selected at random. Use se

> In 2009 there were 8,626,000 men and 6,199,000 women who were unemployed at some time during the year. A statistics practitioner wanted to investigate the reason for that unemployment status and whether the reasons differed by gender. A random sample of

> After an analysis of incoming faxes, the manager of an accounting firm determined the probability distribution of the number of pages per facsimile as follows: Compute the mean and variance of the number of pages per fax. 1 3 4 5 7 P(x) .05 .12 20 .

> Is there brand loyalty among car owners in their purchases of gasoline? To help answer the question a random sample of car owners was asked to record the brand of gasoline in their last two purchases (1 = Exxon, 2 = Amoco, 3 = Texaco, and 4 = Other). Use

> The associate dean of a business school was looking for ways to improve the quality of the applicants to its MBA program. In particular she wanted to know whether the undergraduate degree of applicants differed among her school and the three nearby unive

> The average loss from robbery in the United States in 2014 (last year available) was $1,227. Suppose that an insurance analyst wanted to know whether the type of robbery differs in the years 1995, 2000, 2005, 2009, and 2014. A random sample of robbery re

> A survey of 50 baseball fans to report the number of games they attended last year. Draw a histogram and describe its shape.

> How do governments spend the tax dollars they collect, and has this changed over the past decade? The following table displays state and local government expenditures for public works in years 1995, 2000, 2005, and 2008 in millions of dollars. Use a grap

> Gallup Organization Date: May 2016 Population: American adults Question: “Describe your views on economic issues.” Responses: 1. Liberal 2. Moderate 3. Conservative a. Determine the frequency and the relative frequency distributions. b. Draw a pie chart

> The placement office at a university regularly surveys the graduates 1 year after graduation and asks for the following information. For each, determine the type of data. a. What is your occupation? b. What is your income? c. What degree did you obtain?

> Gallup Organization Date: May 2016 Population: American adults Question: “Describe your views on social issues.” Responses: 1. Liberal 2. Moderate 3. Conservative a. Determine the frequency and the relative frequency distributions. b. Draw a pie chart an

> Refer to Exercises 6.13 and 6.14. Find the probability of each of the following events. a. The adult is single. b. The adult is not divorced c. The adult is either widowed or divorced. Data from Exercise 6.14: Suppose that in the city in which the survey

> Pew Research Center Date: November 2015 Population: Married, two-parent households with at least one child under 18 Question: How do working parents share the work load at home? Responses: 1. Mom: Full time; Dad: Full time 2. Mom: Part time; Dad: Full ti

> It cost one dollar to buy a lottery ticket, which has five prizes. The prizes and the probability that a player wins the prize are listed here. Calculate the expected value of the payoff. Prize ($) 1 million 200,000 Probability 1/10 million 1/1 milli

> Pew Research Center Date: December 2015 Population: American adults Question 1: “Which Social Class does the Republican Party favor?” Question 2: “Which Social Class does the Democratic Party favor?” (Each question was posed to a different sample.) Respo

> Gallup Organization Date: April 2016 Population: American adults Question: “As I read off some different groups, please tell me if you think they are paying their FAIR share in federal taxes, paying too MUCH or paying too LITTLE? First, how about upperin

> Pew Research Center Date: June 2015 Population: Americans who are most likely to vote, donate to campaigns, and participate directly in politics. (They comprise about 20% of all Americans.) Question: Views of their close friends. Responses: 1. Many close

> Increasing tuition has resulted in some students being saddled with large debts upon graduation. To examine this issue, a random sample of recent graduates was asked to report whether they had student loans, and, if so, how much was the debt at graduatio

> Chris Golfnut loves the game of golf. Chris also loves statistics. Combining both passions, Chris records a sample of 100 scores. a. What statistics should Chris compute to describe the scores? b. Calculate the mean and standard deviation of the scores.

> A survey of 60 individuals leaving a mall asked how many stores they entered during this visit to the mall. The figures are listed here. 3 2 4 3 3 9 2 4 3 6 2 2 8 7 6 4 5 1 5 2 3 1 1 7 3 4 1 1 4 8 0 2 5 4 4 4 6 2 2 5 3 8 4

> Refer to Exercise 4.139. In addition to the bone density losses, the ages of the women were also recorded. Compute the coefficient of determination and describe what this statistic tells you. Data from Exercise 4.139: Osteoporosis is a condition in which

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