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Questions and Answers of
Statistics
A growing niche in the restaurant business is gourmetcasual breakfast, lunch, and brunch. Chains in this group include EggSpectation and Panera Bread. Suppose that the mean per-person check for
What proportion of Americans get most of their news from the Internet? According to a poll conducted by Pew Research Center, 40% get most of their news from the Internet. (Data extracted from "Drill
A survey of 1,000 adults was conducted in March 2009 concerning "green practices." In response to the question of what was the most beneficial thing to do for the environment, 28% said buying
In a study of 500 executives, 315 stated that their company informally monitored social networking sites to stay on top of information related to their company. (Data extracted from "Checking Out the
In response to the question "How do you judge a company?" 84% said the most important way was how a company responded to a crisis. (Data extracted from "How Do You Judge a Company?" USA Today,
There are many reasons adults use credit cards. A recent survey ("Why Adults Use Credit Cards," USA Today, October 18, 2007, p. 1D) found that 66% of adults used credit cards for convenience.a. To
A market researcher selects a simple random sample of n = 100 customers from a population of 2 million customers. After analyzing the sample, she states that she has 95% confidence that the mean
A sample of 25 is selected from a population of 500 items. The sample mean is 25.7, and the sample standard deviation is 7.8. Construct a 99% confidence interval estimate for the population total.
Suppose that a sample of 200 (stored in ItemErr) is selected from a population of 10,000 items. Of these, 10 items are found to have the following errors:Construct a 95% confidence interval estimate
If p = 0.04, n = 300, and N = 5,000 calculate the upper bound for a one-sided confidence interval estimate for the population proportion, π, using the following levels of confidence:a. 90%b. 95%c.
A stationery store wants to estimate the total retail value of the 1,000 greeting cards it has in its inventory. Construct a 95% confidence interval estimate for the population total value of all
The personnel department of a large corporation employing 3,000 workers wants to estimate the family dental expenses of its employees to determine the feasibility of providing a dental insurance
A branch of a chain of large electronics stores is conducting an end-of-month inventory of the merchandise in stock. There were 1,546 items in inventory at that time. A sample of 50 items was
A customer in the wholesale garment trade is often entitled to a discount for a cash payment for goods. The amount of discount varies by vendor. A sample of 150 items selected from a population of
Econe Dresses is a small company that manufactures women's dresses for sale to specialty stores. It has 1,200 inventory items, and the historical cost is recorded on a firstin, first-out (FIFO)
Tom and Brent's Alpine Outfitters conducts an annual audit of its financial records. An internal control policy for the company is that a check can be issued only after the accounts payable manager
An internal control policy for Rhonda's Online Fashion Accessories requires a quality assurance check before a shipment is made. The tolerable exception rate for this internal control is 0.05. During
Suppose that you are going to collect a set of data, either from an entire population or from a random sample taken from that population.a. Which statistical measure would you compute first: the mean
Why can you never really have 100% confidence of correctly estimating the population characteristic of interest? Discuss.
Why is it true that for a given sample size, n, an increase in confidence is achieved by widening (and making less precise) the confidence interval?
Under what circumstances do you use a one-sided confidence interval instead of a two-sided confidence interval?
You work in the corporate office for a nationwide convenience store franchise that operates nearly 10,000 stores. The per-store daily customer count has been steady, at 900, for some time (i.e., the
What do Americans do to conserve energy? A survey of 500 adults (data extracted from "Going on an Energy Diet," USA Today, April 16, 2009, p. 1A) found the following percentages:Turn off lights,
A market researcher for a consumer electronics company wants to study the television viewing habits of residents of a particular area. A random sample of 40 respondents is selected, and each
The real estate assessor for a county government wants to study various characteristics of single-family houses in the county. A random sample of 70 houses reveals the following:• Heated area of
The personnel director of a large corporation wishes to study absenteeism among clerical workers at the corporation's central office during the year. A random sample of 25 clerical workers reveals
The market research director for Dotty's Department Store wants to study women's spending on cosmetics. A survey of the store's customers is designed in order to estimate the proportion of women who
The branch manager of a nationwide bookstore chain (located near a college campus) wants to study characteristics of her store's customers. She decides to focus on two variables: the amount of money
The branch manager of an outlet (Store 1) of a nationwide chain of pet supply stores wants to study characteristics of her customers. In particular, she decides to focus on two variables: the amount
Scarlett and Heather, the owners of an upscale restaurant in Dayton, Ohio, want to study the dining characteristics of their customers. They decide to focus on two variables: the amount of money
The manufacturer of Ice Melt claims that its product will melt snow and ice at temperatures as low as 0i Fahrenheit. A representative for a large chain of hardware stores is interested in testing
An auditor needs to estimate the percentage of times a company fails to follow an internal control procedure. A sample of 50 from a population of 1,000 items is selected, and in 7 instances, the
An auditor for a government agency needs to evaluate payments for doctors' office visits paid by Medicare in a particular zip code during the month of June. A total of 25,056 visits occurred during
A home furnishings store that sells bedroom furniture is conducting an end-of-month inventory of the beds (mattress, bed spring, and frame) in stock. An auditor for the store wants to estimate the
A quality characteristic of interest for a tea-bag-filling process is the weight of the tea in the individual bags. In this example, the label weight on the package indicates that the mean amount is
You are working as an assistant to the dean of institutional research at your university. The dean wants to survey members of the alumni association who obtained their baccalaureate degrees 5 years
A manufacturing company produces steel housings for electrical equipment. The main component part of the housing is a steel trough that is made from a 14-gauge steel coil. It is produced using a
The manufacturer of Boston and Vermont asphalt shingles knows that product weight is a major factor in a customer's perception of quality. The last stage of the assembly line packages the shingles
The manufacturer of Boston and Vermont asphalt shingles provides its customers with a 20-year warranty on most of its products. To determine whether a shingle will last the entire warranty period,
Refer to the team project on page 73 that uses the data in Bond Funds. Construct all appropriate confidence interval estimates of the population characteristics of below-average-risk, average-risk,
Problem 1.27 on page 14 describes a survey of 62 undergraduate students (stored in UndergradSurvey).a. For these data, for each variable, construct a 95% confidence interval estimate for the
Problem 1.28 on page 15 describes a survey of 44 MBA students (stored in GradSurvey).a. For these data, for each variable, construct a 95% confidence interval estimate for the population
The manager of a paint supply store wants to estimate the actual amount of paint contained in 1-gallon cans purchased from a nationally known manufacturer. The manufacturer's specifications state
Suppose the defendant in Problem 9.9 is presumed guilty until proven innocent, as in some other judicial systems. How do the null and alternative hypotheses differ from those in Problem 9.9? What are
Many consumer groups feel that the U.S. Food and Drug Administration (FDA) drug approval process is too easy and, as a result, too many drugs are approved that are later found to be unsafe. On the
Do students at your school study more than, less than, or about the same as students at other business schools? BusinessWeek reported that at the top 50 business schools, students studied an average
The quality-control manager at a light bulb factory needs to determine whether the mean life of a large shipment of light bulbs is equal to 375 hours. The population standard deviation is 100 hours.
Suppose that in Problem 9.14, the standard deviation is 120 hours.a. Repeat (a) through (d) of Problem 9.14, assuming a standard deviation of 120 hours.b. Compare the results of (a) to those of
The manager of a paint supply store wants to determine whether the mean amount of paint contained in 1-gallon cans purchased from a nationally known manufacturer is actually 1 gallon. You know from
Suppose that in Problem 9.16, the standard deviation is 0.012 gallon.a. Repeat (a) through (d) of Problem 9.16, assuming a standard deviation of 0.012 gallon.b. Compare the results of (a) to those of
If, in a sample of n = 16 selected from a left-skewed population, = 65, and S = 21, would you use the t test to test the null hypothesis H0: μ = 60? Discuss.
If, in a sample of n = 160 selected from a left-skewed population, = 65, and S = 21, would you use the t test to test the null hypothesis H0: μ = 60? Discuss.
You are the manager of a restaurant for a fast-food franchise. Last month, the mean waiting time at the drive-through window for branches in your geographical region, as measured from the time a
A manufacturer of chocolate candies uses machines to package candies as they move along a filling line. Although the packages are labeled as 8 ounces, the company wants the packages to contain a mean
A stationery store wants to estimate the mean retail value of greeting cards that it has in its inventory. A random sample of 100 greeting cards indicates a mean value of $2.55 and a standard
The U.S. Department of Transportation requires tire manufacturers to provide performance information on tire sidewalls to help prospective buyers make their purchasing decisions. One very important
The file FastFood contains the amount that a sample of nine customers spent for lunch ($) at a fast-food restaurant:4.20 5.03 5.86 6.45 7.38 7.54 8.46 8.47 9.87a. At the 0.05 level of significance,
In NewYork State, savings banks are permitted to sell a form of life insurance called savings bank life insurance (SBLI). The approval process consists of underwriting, which includes a review of the
The following data (in Drink) represent the amount of soft-drink filled in a sample of 50 consecutive 2-liter bottles. The results, listed horizontally in the order of being filled, werea. At the
One of the major measures of the quality of service provided by any organization is the speed with which it responds to customer complaints. A large family-held department store selling furniture and
A manufacturing company produces steel housings for electrical equipment. The main component part of the housing is a steel trough that is made out of a 14-gauge steel coil. It is produced using a
One operation of a steel mill is to cut pieces of steel into parts that are used in the frame for front seats in an automobile. The steel is cut with a diamond saw and requires the resulting parts
In Problem 3.67 on page 135, you were introduced to a tea-bag-filling operation. An important quality characteristic of interest for this process is the weight of the tea in the individual bags. The
Although many people think they can put a meal on the table in a short period of time, an article reported that they end up spending about 40 minutes doing so. (Data extracted from N. Hellmich,
In a recent year, the Federal Communications Commission reported that the mean wait for repairs for Verizon customers was 36.5 hours. In an effort to improve this service, suppose that a new repair
In a recent year, the Federal Communications Commission reported that the mean wait for repairs for AT&T customers was 25.3 hours. In an effort to improve this service, suppose that a new repair
Southside Hospital in Bay Shore, New York, commonly conducts stress tests to study the heart muscle after a person has a heart attack. Members of the diagnostic imaging department conducted a quality
You are the manager of a restaurant that delivers pizza to college dormitory rooms. You have just changed your delivery process in an effort to reduce the mean time between the order and completion
The per-store daily customer count (i.e., the mean number of customers in a store in one day) for a nationwide convenience store chain that operates nearly 10,000 stores has been steady, at 900, for
The population mean waiting time to check out of a supermarket has been 10.73 minutes. Recently, in an effort to reduce the waiting time, the supermarket has experimented with a system in which there
In Problem 9.52, if the null hypothesis is that 20% of the items in the population are defective, what is the value of ZSTAT?In problemIf, in a random sample of 400 items, 88 are defective, what is
In Problems 9.52 and 9.53, suppose you are testing the null H0: π = 0.20 hypothesis against the two-tail alternative hypothesis H1: π ≠ 0.20 and you choose the level of significance α = 0.05.
The U.S. Department of Education reports that 46% of full-time college students are employed while attending college. (Data extracted from "The Condition of Education 2009," National Center for
Online magazines make it easy for readers to link to an advertiser's website directly from an advertisement placed in the digital magazine. A recent survey indicated that 56% of online magazine
One of the issues facing organizations is increasing diversity throughout the organization. One of the ways to evaluate an organization's success at increasing diversity is to compare the percentage
Of 1,000 respondents aged 24 to 35, 65% reported that they preferred to "look for a job in a place where I would like to live" rather than "look for the best job I can find, the place where I live is
The telephone company wants to investigate the desirability of beginning a marketing campaign that would offer customers the right to purchase an additional telephone line at a substantially reduced
A study by the Pew Internet and American Life Project (pewinternet.org) found that Americans had a complex and ambivalent attitude toward technology. (Data extracted from M. Himowitz, "How to Tell
What is the difference between a null hypothesis, H0, and an alternative hypothesis, H1?
What is the difference between a one-tail test and a two-tail test?
What is the six-step critical value approach to hypothesis testing?
What is the five-step p-value approach to hypothesis testing?
An article in Marketing News (T. T. Semon, "Consider a Statistical Insignificance Test," Marketing News, February 1, 1999) argued that the level of significance used when comparing two products is
La Quinta Motor Inns developed a computer model to help predict the profitability of sites that are being considered as locations for new hotels. If the computer model predicts large profits, La
Webcredible, a UK-based consulting firm specializing in websites, intranets, mobile devices, and applications, conducted a survey of 1,132 mobile phone users between February and April 2009. The
The owner of a gasoline station wants to study gasoline purchasing habits of motorists at his station. He selects a random sample of 60 motorists during a certain week, with the following results:•
An auditor for a government agency is assigned the task of evaluating reimbursement for office visits to physicians paid by Medicare. The audit was conducted on a sample of 75 of the reimbursements,
A bank branch located in a commercial district of a city had the business objective of improving the process for serving customers during the noon-to-1:00 P.M. lunch period. The waiting time (defined
A manufacturing company produces electrical insulators. If the insulators break when in use, a short circuit is likely to occur. To test the strength of the insulators, destructive testing is carried
An important quality characteristic used by the manufacturer of Boston and Vermont asphalt shingles is the amount of moisture the shingles contain when they are packaged. Customers may feel that they
Studies conducted by the manufacturer of Boston and Vermont asphalt shingles have shown product weight to be a major factor in the customer's perception of quality. Moreover, the weight represents
The manufacturer of Boston and Vermont asphalt shingles provides its customers with a 20-year warranty on most of its products. To determine whether a shingle will last through the warranty period,
The Computer Anxiety Rating Scale (CARS) measures an individual's level of computer anxiety, on a scale from 20 (no anxiety) to 100 (highest level of anxiety). Researchers at Miami University
An important feature of digital cameras is battery life, the number of shots that can be taken before the battery needs to be recharged. The file DigitalCameras contains the battery life of 29
A bank with a branch located in a commercial district of a city has the business objective of developing an improved process for serving customers during the noon-to- 1 P.M. lunch period. Management
Repeat Problem 10.12 (a), assuming that the population variances in the two branches are not equal. Compare the results with those of Problem 10.12 (a).In problemA bank with a branch located in a
In intaglio printing, a design or figure is carved beneath the surface of hard metal or stone. The business objective of an intaglio printing company is to determine whether there are differences in
Repeat Problem 10.14 (a), assuming that the population variances from untreated and treated steel plates are not equal. Compare the results with those of Problem 10.14 (a).In problemIn intaglio
Do young children use cell phones? Apparently so, according to a recent study (A. Ross, "Message to Santa; KidsWant a Phone," Palm Beach Post, December 16, 2008, pp. 1A, 4A), which stated that cell
Nondestructive evaluation is a method that is used to describe the properties of components or materials without causing any permanent physical change to the units. It includes the determination of
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