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business
business statistics in practice

Questions and Answers of Business Statistics In Practice

=+d) State the conclusion from this analysis.
=+13. Observatories. The two Gemini observatories (www.gemini.edu) were built and are operated by a partnership of seven countries including the United States, United Kingdom, Canada, Chile,
=+c) Given the results, was it necessary to use Major as a blocking factor? Explain.
=+b) What was the purpose of using Major as a blocking factor?
=+a) Was this an observational study or an experiment?
=+test the three approaches. Because they believed that educational background may affect the results, they selected 3 employees from each of 10 different college major programs of study (liberal
=+34. Six Sigma training. A large financial institution is interested in training its college educated workforce in Six Sigma principles and methods. One part of the training involves basic
=+d) Perform the ANOVA and report your conclusions.
=+c) What is the response?
=+b) What is the factor?
=+a) Is this an observational or experimental study?
=+33. Cholesterol. A pharmaceutical company tested three formulations of cholesterol-lowering drugs for patients with very high levels of cholesterol. For the experiment, 30 volunteers were selected
=+14. DVD production. Plastic covers for DVDs must be manufactured with enough precision so that a DVD can properly fit into the cover. Specifically, the diameter of the central plastic piece over
=+e) The P-value for this statistic turns out to be
=+c) State the null and alternative hypotheses.
=+32. Auto batteries. Most auto batteries are made by just three manufacturers. Each make batteries sold under several brand names. To determine if the average length of life was affected by who made
=+e) The P-value for this statistic turns out to be 0.002.State the conclusion. Can a causal link be established?Explain.
=+c) State the null and alternative hypothesis.d) Calculate the F-statistic.
=+15. Lottery. A quality control team for a state lottery noticed that there seems to be no pattern to the numbers that are selected in the power ball draw. Is this an example of special- or
=+b) Is this a prospective or retrospective study? Explain.
=+a) Is this an experimental or observational study? Explain.
=+agree to 4 = strongly disagree) with a variety of statements including “I don’t like giving my credit card number or personal information online.” A part of the data set was used to
=+31. E-security. A report released by the Pew Internet &American Life Project entitled The Internet & Consumer Choice focused on current online issues. Respondents were asked to indicate their level
=+c) Would it be appropriate to run a multiple comparisons test (for example, a Bonferroni test) to see which lists differ from each other in terms of mean percent correct?Explain.
=+16. Pennsylvania lottery. In 1980, millions of viewers watched as the number 666 was drawn for the Pick 3 Pennsylvania lottery. Although as likely as any other number, lottery authorities and
=+background. To find out, she tested 24 subjects with normal hearing and measured the number of words perceived correctly in the presence of background noise. Here are the boxplots of the four
=+30. Hearing. Vendors of hearing aids test them by having patients listen to lists of words and repeat what they hear.The word lists are supposed to be equally difficult to hear accurately. But the
=+c) Would it be appropriate to run a multiple comparisons test (for example, a Bonferroni test) to see which tellers differ from each other? Explain.
=+b) What do you conclude?
=+464, 466, 644, 646, 664, and 666. Soon, a handful of players came forward to claim approximately $1.8 million of the then-record $3.5 million payout. Officials eventually discovered that 8 of the
=+29. Bank tellers. A bank is studying the average time that it takes 6 of its tellers to serve a customer. Customers line up in the queue and are served by the next available teller.Here is a
=+28. Summer jobs. Many college and university students obtain summer jobs. In order to study their earnings, samples of students in three undergraduate programs were asked to report what they earned
=+b) Are the conditions for ANOVA met? Why or why not?
=+a) What are the null and alternative hypotheses (in words, not symbols)?
=+27. Cell phone adoption. Cell phone adoption rates are available for various countries in the United Nations Database(unstats.un.org). Countries were randomly selected from three regions (Africa,
=+b) Do the conditions for an ANOVA seem to be met here?Why or why not?0 50 100 150 200 250 300 350 400 McDonalds Wendys Jack in the Box Min Outlier
=+17. Out-of-control rules. Most control charts use three sigmas (standard deviations) to set the upper and lower control limits. For a run chart, what is the probability that an observation would
=+a) What are the null and alternative hypotheses? Talk about times and restaurants, not symbols.M20_SHAR8696_03_SE_C20.indd 761 14/07/14 7:36 AM 762 CHAPTER 20 Design and Analysis of Experiments and
=+26. Service time. The boxplots display the service time (in seconds) taken for a sample of drive-through customers at each of three fast-food restaurants.
=+b) Do the conditions for an ANOVA seem to be met here?Why or why not?Miles per Gallon 20 25 30 35 4 5 6 8 Cylinders
=+a) What are the null and alternative hypotheses? Talk about cars and fuel efficiency, not symbols.
=+25. Cars (fuel efficiency). These boxplots show the relationship between the number of cylinders in a car’s engine and its fuel economy from a study conducted by a major car manufacturer.
=+24. Safety switch. An industrial machine requires an emergency shutoff switch that must be designed so that it can be easily operated with either hand. Design an experiment to find out whether
=+18. Out-of-control rules, part 2. Instead of one observation outside of 3s from the mean as in Exercise 17, suppose a quality control engineer decides to use only the run chart rule that the system
=+c) Suppose you suspect that the tutorial course might be more helpful for students whose initial scores were particularly low. How would this affect your proposed design?
=+b) Propose a design for an experiment that could test the effectiveness of the tutorial course.
=+a) Explain why this does not necessarily prove that the special course caused the scores to go up.
=+23. SAT prep courses. Can special study courses actually help raise SAT scores? One organization says that the 30 students they tutored achieved an average gain of 60 points when they retook the
=+c) Can studies such as these prove causation (that wine helps prevent heart attacks, that drinking wine makes one richer, that being rich helps prevent heart attacks, etc.)?Explain.
=+b) It is generally true that people with high levels of education and high socioeconomic status are healthier than others. How does this call into question the supposed health benefits of wine?
=+a row lie on the same side of the mean. What is the probability that this would happen based on random chance variation alone? What assumptions do you have to make to answer this?
=+a) What kind of study was this?
=+22. Wine marketing. A Danish study published in the Archives of Internal Medicine casts significant doubt on suggestions that adults who drink wine have higher levels of “good” cholesterol
=+c) They suspect that children who regularly watch the Saturday morning cartoon show starring Frump, the flying teenage warrior rabbit who eats Frumpies in every episode, may respond differently to
=+b) They are thinking of introducing a new flavor, maplemarshmallow Frumpies and want to know whether children will prefer the new flavor to the old one. Design a completely randomized experiment
=+a) They first want to know what fraction of children, ages 10 to 13, like their celery-flavored cereal. What kind of study should they perform?
=+21. Cereal marketing. The makers of Frumpies, “the breakfast of rug rats,” want to improve their marketing, so they consult you.
=+19. Basketballs. A company that makes basketballs has the motto: “Our basketballs are ready to play.” Therefore, it is important to the company that the basketballs are inflated with the
=+would design the experiment. Indicate factors and response and how they would be measured, controlled, or randomized.
=+20. More Mozart. An advertisement selling specially designed CDs of Mozart’s music specifically because they will“strengthen your mind, heal your body, and unlock your creative spirit”
=+d) Do you think the results prove that listening to Mozart is beneficial? Explain.Glass Mozart Silence Treatment–3 03 69 Test 2 – Test 1 (# of items correct)
=+Recently the company selected a random basketball from its production line at four different time periods over its normal production day. The results were recorded and listed in the following
=+c) The boxplots show the differences in score before and after treatment for the three groups. Did the Mozart group show improvement?
=+b) Steele, Bass, and Crook tried to replicate the original study. The subjects were 125 college students who participated in the experiment for course credit. Subjects first took the test. Then
=+a) These researchers said the differences were statistically significant. Explain what that means in this context.
=+ In a published study, Rauscher, Shaw, and Ky reported that when students were given a spatial reasoning section of a standard IQ test, those who listened to Mozart for 10 minutes improved their
=+19. Mozart. Will listening to a Mozart piano sonata make you smarter?
=+18. Golf clubs. A golf equipment manufacturer wants to test the distances achieved by its newly designed club. They design an experiment by having 10 professional golfers hit shots first with their
=+c) Keep the number of runs at 16, but save time by running all the standard detergent runs first to avoid swapping detergents back and forth.
=+b) Cut the runs to 8 by testing only in hot water.
=+a) Cut the runs to 8 by testing only the new detergent.Compare the results to results on the standard detergent published by the manufacturer.
=+17. Laundry detergents. One member of the consumer group in Exercise 15 is concerned that the experiment will take too long and makes some suggestions to shorten it.Comment briefly on each idea.
=+a) Create an X chart based on the calibration data statistics for these 30 samples.
=+b) Create an R chart based on the calibration data statistics for these 30 samples.
=+16. Sales scripts. An outdoor products company wants to test a new website design where customers can get information about their favorite outdoor activity. They randomly send half of the
=+c) What is/are the response(s)?
=+c) Assuming that the process was in control during the calibration period, is the company’s process for filling its basketball with the proper amount of air in control?
=+b) Identify all the factor levels.
=+a) What are the factors they are testing?
=+15. New Website. A mobile-home manufacturing company wants to test their newly designed website, where customers can purchase new products. Three-fourths of the customers visiting the old site
=+c) What were the treatments?Chapter Exercises
=+b) What were the factors and factor levels?
=+20. Paints. A company manufactures seats for different automobile companies. One component of the seat is a wire spring. A machine is used to bend the wire spring so that its length is 500 mm. The
=+a) What were the subjects?
=+14. The investment club described in Exercise 4 decided to repeat their experiment in a different way. Three members of the club took responsibility for one of each of the three investment
=+c) If an interaction was found to be significant, what would that mean?
=+b) What were the treatments?
=+a) What were the factors and factor levels?
=+13. In the experiment described in Exercise 3, in fact the study also compared the use of butter or margarine in the recipes. The design was balanced, with each combination of chip type and oil
=+They took a sample of 4 springs each hour and recorded the results in the following table.Sample 1 Sample 2 Sample 3 Sample 4 Hour 1 501.02 497.24 501.44 504.20 Hour 2 501.65 501.04 500.46 500.92
=+12. Refer to Exercise 11.a) State the null and alternative hypotheses.b) Calculate the F-ratio.c) What is the P-value?d) State your conclusion at a = .05.Section 20.10
=+a) What are the degrees of freedom for treatment, error, and total?b) What is SSE?c) What is MSTr?d) What is MSE?
=+11. In a completely randomized design, ten subjects were assigned to each of four treatments of a factor. Below is the partially completed ANOVA table.Source DF Sum of Squares Mean Square F-Ratio
=+envelope so the clerk providing the offer did not know the details of the offer. At the end of the program (a course and films along with diet and smoking cessation aids), clients were followed
=+Does a “stop smoking” program work better if it costs more? Smokers responding to an advertisement offering to help them stop smoking were randomly offered a program Exercises
=+10. For the following experiment, indicate whether it was single-blind, double-blind, or not blinded at all. Explain your reasoning.
=+Makers of a new frozen entrée arranged for it to be served to randomly selected customers at a restaurant in place of the equivalent entrée ordinarily prepared in the kitchen.After their meal,
=+9. For the following experiment, indicate whether it was single-blind, double-blind, or not blinded at all. Explain your reasoning.
=+Here is a diagram of that experiment. Fill in the parts.Section 20.5
=+how the customer arrived at their site.

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