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business statistics communicating
Questions and Answers of
Business Statistics Communicating
Despite the growth in digital entertainm ent, the nation's 400 amusement parks have managed to hold on to visitors, as the following data show:Year Visitors (in millions)2000 317 2001 319 2002 324
FILE Consider the follow ing table, consisting of 20 observations of the variable y and tim e t. The data are also on the text website, labeled Exercise 18.12.t y t y t y t y 1 10.32 6 13.84 11 16.95
FILE Consider the following table, consisting of 20 observations of the variable y and tim e t. The data are also on the text website, labeled Exercise 18.11.t yt y ty ty 1 3.01 6 4.94 11 7.28 16
F I L E The accompanying table shows a portion of monthly data on seasonally adjusted inflation and unemployment rates in the United States from January 2009 to November 2010; the entire data set is
F I L E Consider the following table, which shows a portion of the closing prices of the S&P 500 Index for 21 trading days in November 2010. The complete data set can be found on the text website,
F I L E According to the Census Bureau, the number of people below the poverty level has been steadily increasing (CNN, September 16, 2010). This means many families are finding themselves there for
F I L E Use the data from the preceding question for the share of total shipment of music that falls in the category of rock music from 1990–2008.a. Make a forecast for the share of rock music in
F IL E Rock'n'roll is a form of music that evolved in the United States and very quickly spread to the rest of the world. The interest in rock music, like any other genre, has gone through ups and
F I L E Consider the following sample data, consisting of 20 observations. The data are also on the text website, labeled Exercise 18.4.t 1 2 3 4 5 6 7 8 9 10 yt 14 17 12 16 18 16 15 19 23 23 t 11 12
FILE Consider the following sample data, consisting of 20 observations. The data are also on the text website, labeled Exercise 18.2.t 1 2 3 4 5 6 7 8 9 10 y t 27 35 38 33 34 39 40 38 48 35 t11 12 13
F I L E Consider the following sample data, consisting of 10 observations. The data are also on th e text website, labeled Exercise 18.1.t 1 2 3 4 5 6 7 8 9 10 yt 11 12 9 12 10 8 11 12 10 9a.
Use causal forecasting models to make forecasts. pg-75
Use trend regression models with seasonal dummy variables to make forecasts. pg-75
Use decomposition analysis to make forecasts. pg-75
Calculate and interpret seasonal indices and use them to seasonally adjust a time series. pg-75
Use trend regression models to make forecasts. pg-75
Use smoothing techniques to make forecasts. pg-75
Distinguish among the various models used in forecasting. pg-75
The objective outlined in the introductory case is to determ ine if there is any gender or age discrim ination at a large liberal arts college. Use the data in Table 17.1 to answ er the follow ing
A recent article suggests that Asian-Americans face serious discrimination in the college admissions process (The Boston Globe, February 8, 2010). Specifically, Asian applicants typically need an
In Section 17.1 we estimated a regression model that tested for gender and age discrimination in salaries. We found that the number of years of experience x and the gender dummy d 1 were significant
The subprime mortgage crisis has forced financial institutions to be extra stringent in granting mortgage loans. Many seemingly creditworthy applicants are having their loan requests denied. Thirty
Let us revisit Example 17.5, based on the Mortgage Applications data, a portion of which was presented in Table 17.9. Estimate and interpret a logit model for mortgage approval y based on the
A regression model with a dummy variabled, a quantitative variable x , and an interaction variable xd is specified b y y = β 0 + β1x + β 2d + β 3xd + ε . We estimate this model to make
Choose which model is more reliable in predicting the probability of passing the CFA exam. Provide at least one reason for your choice. P-36
Analyze a logit model to explain the probability of success. Predict the probability of passing the CFA exam for a candidate with various values of college GPA and years of experience.
Analyze a linear probability model to explain the probability of success. Predict the probability of passing the CFA exam for a candidate with various values of college GPA and years of experience.
F IL E E stim ate th e logit m odel w ith th e above Parole data.a. Are th e results consistent with th e claims of o th er studies with respect to age and gender?b. Predict th e probability of a
FILE More and more parole boards are using risk assessment tools w hen trying to determ ine an individual's likelihood of returning to crim e (The Boston Globe, February 2 0 , 2011). M ost o f th e
FILE Use th e Seton Hall data to estim ate the logit model.a. Analyze th e significance of th e variables at th e 5% level.b. Use th e above estim ates to predict th e probability of adm ission for
F I L E Seton Hall University is a Roman Catholic university situated in New Jersey, w ith easy access to New York City.Like m o st universities, it uses SAT scores and high school GPA as prim ary
F I L E According to th e C enter for Disease Control and Prevention, life expectancy at ag e 65 in America is ab o u t 18.7 years. Medical researchers have argued th a t while excessive drinking is
F I L E According to th e U.S. D epartm ent of Health and Hum an Services, African-American w om en have th e highest rates of being overw eight com pared to o th er groups in th e U.S.Individuals
An analyst studies quarterly data on th e relationship b etw een retail sales (y , in $ millions), gross national product(x, in $ billions), and a quarterly dum m y d th a t equals 1 if th e sales
FILE In a sem inal study, researchers docum ented race-based hiring in th e Boston and Chicago labor m arkets (American Economic Review, Septem ber 2004). They sen t o ut identical resum es to em
FILE A financial analyst w ould like to determ ine w h eth er th e return on Fidelity's M agellan m utual fund varies depending on th e quarter; th a t is, if th ere is a seasonal com ponent
F IL E Estimate and interpret the logit model with the above Divorce data.a. Do the data support the article's claim that the divorce rate is higher for those aged 25–29 years old? Explain.b. Use
FILE According to a recent estimate, the divorce rate in England has fallen to a 26-year low (The Guardian, August 29 , 2008).However, it is documented that the rate of divorce is more than twice as
FILE Analyze a logit model with the above Health Insurance data. Consider an individual with an income of $60,000.What is the probability that she has insurance coverage if her employer contributes
F IL E A ccording to th e National C oalition on Health Care, there has been a steady decline in th e p ro p o rtio n o f Am ericans w h o have health insurance. The rising insurance premiums have
FILE Use the above data labeled Purchase to estimate a logit model.a. C om pute the predicted probability o f an Under A rm our purchase fo r a 20-year-old custom er and a 30-year-old customer.b.
F IL E Annabel, a retail analyst, has been following Under Armour, Inc., the pioneer in the compression-gear market.Compression garments are meant to keep moisture away from a wearer's body during
Using 40 observations, the following output was obtained when estimating the logit model.Predictor Coef SE Z P Constant 1.609 1.405 1.145 0.252 x1 – 0.194 0.143 – 1.357 0.177 x2 0.202 0.215 0.940
Using 30 observations, the following output was obtained when estimating the logit model.Predictor Coef SE Z PConstant – 0.188 0.083 2.27 0.024 x 3.852 1.771 2.18 0.030a. What is the predicted
Using 30 observations, the follow ing regression output is obtained from estimating the linear probability model y = β 0 + β1 x + ε .Coefficients Standard Error t Stat p-value Intercept 1.31 0.31
Consider a binary response variable y and two explanatory variables x 1 and x2. The follow ing table contains the param eter estimates of the linear probability model (LPM) and the logit model, w ith
Consider a binary response variable y and an explanatory variable x. The following table contains the parameter estim ates o f the linear p ro b a b ility m odel (LPM) and the lo g it model, w ith
Consider a binary response variable y and an explanatory variable x that varies between 0 to 50. The linear probability model is estimated as ŷ = 0.92 – 0.02x.a. Com pute the estim ated p
FILE The savings rate has declined dramatically over the past few decades (CNNMoney.com, June 30, 2010). While some economists are extremely concerned about this decline, others believe that it is a
F I L E O ne of th e th eo ries regarding initial public offering(IPO) pricing is th a t th e initial return (change from offer to o p en price) on an IPO d e p en d s on th e price revision(change
F IL E According to th e World Health Organization, obesity has reached ep idem ic p ro p o rtio n s globally. While obesity has generally b een linked w ith chronic disease an d disability,
FILE A sociologist is looking at th e relationship betw een consum ption expenditures y of families in th e United States, family incom e x, and w h eth er or not th e family lives in an urban or
House pricey is estim ated as a function of th e square footage of a house x ; a dum m y variable d th a t equals 1 if th e house has ocean views and 0 otherw ise; and a product of this dum m y and
Using 20 o b se rv atio n s, th e follow ing reg ressio n o u tp u t is obtained from estim ating y = β0 + β 1x + β 2d + β 3xd + ε.Coefficients Standard Error t Stat p -value Intercept 13.56
Consider a linear regression m odel w h e re y represents th e response variable and x and d are th e explanatory variables;d is a dum m y variable assum ing values 0 or 1. A m odel with th e dum m y
FILE The issues regarding executive compensation have received extensive media attention. The government is even considering a cap on high-flying salaries for executives(New York Times, February 9 ,
F IL E A government researcher is analyzing the relationship between retail sales and the gross national product (GNP).He also wonders whether there are significant differences in retail sales
F IL E A researcher wonders whether males get paid more, on average, than females at a large firm . She interviews 50 employees and collects data on each worker's hourly wage (Wage), years of higher
FILE A manager at an ice cream store is trying to determine how many customers to expect on any given day. Overall business has been relatively steady over the past several years, but the customer
FILE Use the data described in Exercise 7 to estimate a linear regression model w ith math score as the response variable and GPA and the female dummy variable as the explanatory variables.a. Compute
F I L E The SAT has gone through many revisions over the years. In 2005, a new writing section was introduced that includes a direct writing measure in the form of an essay.People argue that female
FILE In the United States, baseball has always been a favorite pastime and is rife with statistics and theories. While baseball purists may disagree, to an applied statistician no topic in baseball
In an a tte m p t to "tim e the market," a financial analyst studies the quarterly returns of a stock. He uses the model y = β 0 +β1 d1 + β 2d2 + β 3d3 + ε where y is the quarterly return of a
Using 30 observations, the following regression output is obtained from estimating ln(y) = β 0 + β1 x + β 2d + ε , where ln(y) is the natural log o f y .Coefficients Standard Error t Stat p-value
Using 50 observations, the following regression output is obtained from estimating y = β 0 + β1x + β 2d1 + β 3d2 + ε .Coefficients Standard Error t Stat p-value Intercept – 0.61 0.23 – 2.75
Consider a linear regression model where y represents the response variable, d1 is a dummy variable assuming values of 0 or 1, and d2 is another dummy variable assuming values of 0 or 1. The model is
Consider a linear regression model where y represents the response variable and x and d are the explanatory variables;d is a dummy variable assuming values 0 or 1. The model is estimated asŷ = 14.8
Interpret the results from a logit model. P-36
Use a linear probability model to estimate a binary response variable. P-36
Use dummy variables to capture a shift of the intercept and/or slope. P-36
Test for differences between the categories of a qualitative variable. P-36
Use dummy variables to capture a shift of the intercept. P-36
T a b le 16.6 sh o w s a p o rtio n o f d a ta o n th e to ta l c o s t (in $ 1 ,0 0 0 s ) a n d o u tp u t fo r p ro d u c in g a p a rtic u la r p ro d u c t; th e e n tire d a ta set ca n be fo u
R e fe r b a c k to the fo o d e x p e n d itu re e x a m p le w h e re y re p re se n ts e x p e n d itu re o n fo o d and x represents income. Let the sample regression be w ith the standard error
C o n tin u in g w ith th e e a rlie r e x a m p le o f fo o d e x p e n d itu re , le t th e e s tim a te d re g re s s io n b e ŷ = 12 + 5 6 6 In (x ).a. W h a t is the p re d ic te d fo o d e x
Continuing again w ith the example o f expenditure on food, let the estimated re g re s s io n be w ith the standard error o f the estimate, se = 0.20.a. W hat is the predicted expenditure on food fo
T h e o b je c tiv e o u tlin e d in th e in tro d u c to ry case w a s to e v a lu a te th e in flu e n c e o f th e n u m b e r o f b e d ro o m s (B e d s ), th e n u m b e r o f b a th ro o m s
Revisit the four regression models in Example 16.8 and determine which model is best suited for making predictions. PLO5
Compare the above quadratic regression model with a linear model that uses BA, RBI, and Experience as the explanatory variables. PLO5
Estimate a quadratic regression model using Salary as the response variable and BA, RBI, Experience, and Experience2 as the explanatory variables. PL5
Discuss the potential problems of serial correlation in this time series data application.
Estimate a linear and an exponential regression model and use numerical measures to select the most appropriate model for prediction.
Construct scatterplots to quantify the relationship of housing starts with the mortgage rate and the unemployment rate.
F I L E savings rate has declined dram atically over the past few decades (CNNMoney.com, June 3 0 , 2010). W hile some economists are extrem ely concerned about this decline, others believe th a t it
F IL E A nutritionist wants to understand the influence of income and healthy food on the incidence of smoking. He collects 2009 data on the percentage o f smokers in each state in the U.S. and the
FILE A realtor examines the factors that influence the price of a house. He collects data on the prices for 36 single-fam ily homes in Arlington, Massachusetts sold in the first quarter of 2009. For
F IL E A sports enthusiast wants to examine the factors that influence a quarterback's salary (Salary). In particular, he wants to assess the influence o f the pass com pletion rate (PC), the total
F I L E Economists often exam ine the relationship betw een th e inputs o f a production fu n ction and th e resulting o u tpu t. A com m on w ay o f m odeling this relationship is referred to as
F I L E Use th e d a ta in E xercise 19 t o a n s w e r th e s a m e fo u r q u e s tio n s re g a rd in g life e x p e c ta n c y o f m a le s. W h o is m o re lik e ly to b e n e fit fr o m a d d
F I L E L ife e x p e c ta n c y a t b ir th is th e a v e ra g e n u m b e r o f ye ars th a t a p e rs o n is e x p e c te d to live . T h e re is a h u g e v a ria tio n in life e x p e c ta n c
F IL E Chad Dobson has heard about the positive outlook fo r real estate investm ent in college towns. He is interested in investing in Davis, California, w hich houses one o f the University o f
F I L E P ro fe sso r O rle y A s h e n fe lte r o f P rin c e to n U n iv e rs ity is a p io n e e r in th e fie ld o f w in e e c o n o m ic s . H e c la im s th a t, c o n tr a r y to o ld o rth o
F I L E A c c o rd in g to th e W o rld H e a lth O rg a n iz a tio n , o b e s ity has re a c h e d e p id e m ic p ro p o rtio n s g lo b a lly . W h ile o b e s ity has g e n e ra lly b e e n lin
C o n s id e r th e fo llo w in g 10 o b s e rv a tio n s o f y a n d x .34.62 8.06 12.67 23.02 11.82 27.23 18.23 11.23 11.00 21.07 22 2 11 19 2 21 18 11 19 20a. P lo t th e a b o v e d a ta to c h o
Consider the follow ing 10 observations o f y and x .22.21 21.94 22.83 22.66 21.44 22.51 22.87 22.50 22.88 23.16 12 5 15 16 4 8 11 12 18 16a. P lo t th e a b o v e d a ta to c h o o s e b e tw e e n
Consider the sample regressions for the linear, the logarithm ic, the exponential, and the log-log models. For each o f the estimated models, predict y when x equals 50.Response V a ria b le : y R
C o n s id e r th e s a m p le re g re s s io n s fo r th e lin e a r, th e lo g a rith m ic , th e e x p o n e n tia l, a n d th e lo g -lo g m o d e ls . For e a ch o f th e e s tim a te d m o d e
C o n s id e r th e fo llo w in g e s tim a te d m o d e ls :a. In te r p r e t th e s lo p e c o e ffic ie n t in e a ch o f th e s e e s tim a te d m o d e ls .b. For e ach m o d e l, w h a t is th
F I L E You collect data on 26 metropolitan areas to analyze average monthly debt payments in terms of income and the unemployment rate. A portion of the data is shown in the accompanying table; the
F I L E Consider a sample comprised o f firm s that were targets o f tender offers during the period 1978– 1985. Conduct an analysis where the response variable represents the num ber o f bids
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