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business statistics

Questions and Answers of Business Statistics

Web-based exercise. The online version of the newspaper The Independent has an interesting story concerning the use of “anonymised”information in a legal case. Visit the Web page,
Decency and public money. Congress has often objected to spending public money on projects that seem “indecent” or “in bad taste.” The arts are most often affected, but science can also be a
Tempting subjects. A psychologist conducts the following experiment:she measures the attitude of subjects toward cheating, then has them play a game rigged so that winning without cheating is
Deceiving subjects. Students sign up to be subjects in a psychology experiment. When they arrive, they are told that interviews are running late and are taken to a waiting room. The experimenters
Surveys of youth. The Centers for Disease Control and Prevention, in a survey of teenagers, asked the subjects if they were sexually active. Those who said “Yes” were then asked, “How old were
Charging for data? Data produced by the government are often available free or at low cost to private users. For example, satellite weather data produced by the U.S. National Weather Service are
Telling the government. The 2000 census long form asked 53 detailed questions, for example:Do you have COMPLETE plumbing facilities in this house, apartment, or mobile home; that is, 1) hot and and
A right to know? Some people think that the law should require that all political poll results be made public. Otherwise, the possessors of poll results can use the information to their own
Opinion polls. The presidential election campaign is in full swing, and the candidates have hired polling organizations to take regular polls to find out what the voters think about the issues. What
AIDS trials in Africa. One of the most important goals of AIDS research is to find a vaccine that will protect against HIV. Because AIDS is so common in parts of Africa, that is the easiest place to
AIDS trials in Africa. Effective drugs for treating AIDS are very expensive, so most African nations cannot afford to give them to large numbers of people. Yet AIDS is more common in parts of Africa
AIDS clinical trials. Now that effective treatments for AIDS are at last available, is it ethical to test treatments that may be less effective? Combinations of several powerful drugs reduce the
Sham surgery? Clinical trials like the Parkinson’s disease study mentioned in Example 6 are becoming more common. One medical researcher says,“This is just the beginning. Tomorrow, if you have a
Equal treatment. Researchers on aging proposed to investigate the effect of supplemental health services on the quality of life of older people. Eligible patients on the rolls of a large medical
Human biological materials. Long ago, doctors drew a blood specimen from you as part of treating minor anemia. Unknown to you, the sample was stored. Now researchers plan to use stored samples from
Not really anonymous. Some common practices may appear to offer anonymity while actually delivering only confidentiality. Market researchers often use mail surveys that do not ask the respondent’s
Anonymous or confidential? A Web site looking for volunteers for a research study contains the following information. “This is a research study about menstruation. People of all ages may
Anonymous or confidential? The University of Wisconsin at Madison, like many universities, offers free screening for HIV, the virus that causes AIDS. The announcement says that for persons who come
Anonymous or confidential? One of the most important nongovernment surveys in the United States is the General Social Survey (see Example 7 in Chapter 1). The GSS regularly monitors public opinion on
How common is HIV infection? Researchers from Yale University, working with medical teams in Tanzania, wanted to know how common infection with the AIDS virus is among pregnant women in that African
Students as subjects. Students taking Psychology 001 are required to serve as experimental subjects. Students in Psychology 002 are not required to serve, but they are given extra credit if they do
Is consent needed? In which of the circumstances below would you allow collecting personal information without the subjects’ consent?(a) A government agency takes a random sample of income tax
Informed consent. A researcher suspects that ultraconservative political beliefs tend to be associated with an authoritarian personality. She prepares a questionnaire that measures authoritarian
Institutional review boards. If your college or university has an institutional review board that screens all studies that use human subjects, get a copy of the document that describes this board
Who serves on the review board? Government regulations require that institutional review boards consist of at least five people, including at least one scientist, one nonscientist, and one person
Minimal risk? You are a member of your college’s institutional review board. You must decide whether several research proposals qualify for less rigorous review because they involve only minimal
Anonymous or confidential? A university offers screening for sexually transmitted diseases. The announcement says, “Persons who sign up for screening will be assigned a number so that they do not
Informed consent? A 72-year-old man with multiple sclerosis is hospitalized. His doctor feels he may need to be placed on a feeding tube soon to ensure adequate nourishment. He asks the patient about
Web-based exercise. Find an example of a variable, such as the price of a commodity, that is changing over time. One possible source is the Bureau of Labor Statistics Web site. Go to
Web-based exercise. Find an example of a poor graphic. One possible source is the CHANCE Web site at Dartmouth College. In particular, the Chance News section, www.dartmouth.edu/~chance/chance
The Boston Marathon. Women were allowed to enter the Boston Marathon in 1972. The time (in minutes, rounded to the nearest minute) for each winning woman from 1972 to 2007 appears in Table 10.4.(a)
Yields of money market funds. Many people invest in money market funds. These are mutual funds that attempt to maintain a constant price of $1 per share while paying monthly interest. Table 10.3
Accidental deaths. In 2004 there were 112,012 deaths from accidents in the United States. Among these were 44,933 deaths from motor vehicle accidents, 20,950 from poisoning, 3308 from drowning, 3229
Bad habits. According to the National Household Survey on Drug Abuse, 40.4% of adolescents aged 12 to 17 years used alcohol in 2006, 17.3% used marijuana, 2.2% used cocaine, and 25.8% used
Sketch line graphs of a series of observations over time having each of these characteristics. Mark your time axis in years.(a) A strong downward trend, but no seasonal variation.(b) Seasonal
The Border Patrol. Here are the numbers of deportable aliens caught by the U.S. Border Patrol for 1971 through 2005. Display these data in a graph.What are the most important facts that the data
Who sells cars? Make a bar graph of the data in Exercise 10.21. What advantage does your new graph have over the pie chart in Figure 10.18?
The sunspot cycle. Some plots against time show cycles of up-anddown movements. Figure 10.17 is a line graph of the average number of sunspots on the sun’s visible face for each month from 1900 to
Counting employed people. A news article says:More people were working in America in June than in any month since the end of 1990. If that’s not what you thought you read in the papers last week,
Sales are up. The sales at your new gift shop in December are double the November value. Should you conclude that your shop is growing more popular and will soon make you rich? Explain your answer.
Seasonal variation. You examine the average temperature in Chicago each month for many years. Do you expect a line graph of the data to show seasonal variation?Describe the kind of seasonal variation
Trends. Which of these series of data do you expect to show a clear trend? Will the trend be upward or downward?(All data are recorded annually.)(a) The percentage of students entering a university
Births to unwed mothers. Here are data on births to unwed mothers as a percentage of births in the United States, from the Statistical Abstract.These data show a clear increasing trend over time.
Civil disorders. The years around 1970 brought unrest to many U.S.cities. Here are government data on the number of civil disturbances in each 3-month period during the years 1968 to 1972.Period
College freshmen. A survey of college freshmen in 2001 asked what field they planned to study. The results: 12.6%, arts and humanities; 16.6%, business; 10.1%, education; 18.6%, engineering and
Murder weapons. The 2008 Statistical Abstract of the United States reports FBI data on murders for 2005. In that year, 50.5% of all murders were committed with handguns, 17.3% with other firearms,
Marital status. In the U.S. Census Bureau document America’s Families and Living Arrangements: 2006, we find these data on the marital status of American women 15 years and older as of 2006:Marital
Consistency? Table 10.2 shows how Indiana state lottery sales are divided among different types of games. What is the sum of the amounts spent on the nine types of games? Why is this sum not exactly
Lottery sales. States sell lots of lottery tickets. Table 10.2 shows where the money comes from in the state of Indiana. Make a bar graph that shows the distribution of lottery sales by type of game.
The price of milk. The U.S. Department of Agriculture Web site provides data on the monthly average price of a gallon of whole milk. The following table gives the values for 2006 and 2007.Date Price
Taxes. The Retirement Living Information Center compiled data on projected combined state and local taxes as a percentage of income for each of the 50 states for 2007. The table below gives the
An implausible number? Newsweek once said in a story that a woman who is not currently married at age 40 has a better chance of being killed by a terrorist than of getting married. Do you think this
Percentage decrease. On Monday, September 10, 2001 (the day before the September 11 attacks), the NASDAQ stock index closed the day at 1695. By the end of Monday, September 17, 2001 (the first full
Percents up and down. Between March 2007 and June 2007 the average price of regular gasoline increased from $2.40 per gallon to $3.00 per gallon.(a) Verify that this is a 25% increase in price.(b) If
Observation or experiment? In a study of the relationship between physical fitness and personality, middle-aged college faculty who have volunteered for an exercise program are divided into
Observation or experiment? The Nurses’ Health Study has queried a sample of over 100,000 female registered nurses every two years since 1976.Beginning in 1980, the study asked questions about diet,
Reliability. You are laboring through a chemistry laboratory assignment in which you measure the conductivity of a solution. What does it mean for your measurement to be reliable? How can you improve
Measuring. Joni wants to measure the degree to which male college students belong to the political left. She decides simply to measure the length of their hair—longer hair will mean more
Ethics. What are the three first principles of data ethics? Explain briefly what the flu vaccine study must do to apply each of these principles. (Hint: See pages 123–128.)
Design an experiment. Use a diagram to outline the design of the experiment in this medical study.Part I Review Exercises 187
Experiment basics. Identify the subjects, the explanatory variable, and several response variables for this study. (Hint: See pages 81–83.)
Know these terms. Explain in one sentence each what “randomized,”“double-blind,” and “placebo-controlled” mean in the description of the design of the study.
Design an experiment. Gary thinks that the way to get a date is to tell a woman about yourself. Greg thinks that getting her to talk about herself works better. You recruit 20 guys who are willing to
Design an experiment. A university’s Department of Statistics wants to attract more majors. It prepares two advertising brochures. Brochure A stresses the intellectual excitement of statistics.
What kind of sample? At a party there are 30 students over age 21 and 20 students under age 21. You choose at random 3 of those over 21 and 186 Part I Review separately choose at random 2 of those
Find the margin of error. Should the commissioner of baseball punish Major League Baseball players named in the Mitchell report on steroid use in baseball for having used steroids? A poll of 413
Find the margin of error. On September 7, 2007, 384 professional golf fans were asked “Do you think that, as a result of becoming a father, Tiger Woods’s golf game will improve, not be affected,
Errors in surveys. A Gallup Poll found that 30% of adult Americans claim to have postponed medical treatment due to cost. The Gallup press release says:Results are based on telephone interviews with
Errors in surveys. Exercises I.7 and I.8 each mention a source of error in a sample survey. Would each kind of error be reduced by doubling the size of the sample with no other changes in the survey
Errors in surveys. A college chooses an SRS of 100 students from the registrar’s list of all undergraduates to interview about student life. If it selected two SRSs of 100 students at the same
Errors in surveys. An overnight opinion poll calls randomly selected telephone numbers. This polling method misses all people without a phone.Part I Review Exercises 185 Is this a source of
Errors in surveys. Give an example of a source of nonsampling error in a sample survey. Then give an example of a source of sampling error.
Select an SRS. The faculty grievance system at a university specifies that a 5-member hearing panel shall be drawn at random from the 30-member grievance committee. Use Table A at line 107 to draw an
Select an SRS. A student at a large university wants to study the responses that students receive when calling an academic department for information.She selects an SRS of 6 departments from the
A biased sample. You see a woman student standing in front of the student center, now and then stopping other students to ask them questions.She says that she is collecting student opinions for a
Know these terms. A friend who knows no statistics has encountered some statistical terms in her biology course. Explain each of the following terms in one or two simple sentences.(a) Observational
Know these terms. A friend who knows no statistics has encounteredsome statistical terms in reading for her psychology course. Explain each of the following terms in one or two simple sentences.(a)
Web-based exercise. Money magazine annually publishes a list of its best places to live. You can find the 2007 rankings online at money.cnn.com/magazines/moneymag/bplive/2007/. Read how the rankings
Web-based exercise. You can get the time direct from the atomic clock at NIST at www.time.gov. There is some error due to Internet delays, but the display even tells you roughly how accurate the time
Web-based exercise. Each year, U.S. News & World Report ranks the nation’s colleges and universities. You can find the current rankings on the magazine’s Web site, www.usnews.com. Colleges often
Where to live? Each year, Forbes magazine ranks the 150 largest metropolitan areas in the United States in an article on the best places for business. Second place in 2007 went to Provo, Utah. Provo
The best earphones. You are writing an article for a consumer magazine based on a survey of the magazine’s readers that asked about satisfaction with inexpensive earphones for the iPod. Of 1317
Testing job applicants. A company used to give IQ tests to all job applicants. This is now illegal because IQ is not related to the performance of workers in all the company’s jobs. Does the reason
Tough course? A friend tells you, “In the 7:30 A.M. lecture for Statistics 101, 9 students failed, but 20 students failed in the 1:30 P.M. lecture. The 7:30 A.M. prof is a tougher grader than the
Measuring pulse rate. You want to measure your resting pulse rate.You might count the number of beats in 6 seconds and multiply by 10 to get beats per minute. Why is this method less reliable than
Measuring crime. Twice each year, the National Crime Victimization Survey asks a random sample of about 49,000 households whether they have been victims of crime and, if so, the details. In all,
Measuring crime. Crime data make headlines.We measure the amount of crime by the number of crimes committed or (better) by crime rates (crimes per 100,000 population). The FBI publishes data on crime
A recipe for poor reliability. Every month, the government releases data on “personal savings.” This number tells us how many dollars individuals saved the previous month. Savings are calculated
Does job training work? To measure the effectiveness of government training programs, it is usual to compare workers’ pay before and after training.But many workers sign up for training when their
More on bias and reliability. The previous exercise gives 5 true values for lengths. A subject measures each length twice by eye. Make up a set of results from this activity that matches each of the
An activity on bias and reliability. Cut 5 pieces of string having these lengths in inches: 2.9 9.5 5.7 4.2 7.6(a) Show the pieces to another student one at a time, asking the subject to estimate the
An activity on bias. Let’s study bias in an intuitive measurement.Figure 8.3 is a drawing of a tilted glass. Reproduce this drawing on 10 sheets of paper. Choose 10 people: 5 men and 5 women.
Validity, bias, reliability. Give your own example of a measurement process that is valid but has large bias. Then give your own example of a measurement process that is invalid but highly
Testing job applicants. The law requires that tests given to job applicants must be shown to be directly job related. The Department of Labor believes that an employment test called the General
Fighting cancer. Congress wants the medical establishment to show that progress is being made in fighting cancer. Here are some variables that might be used:1. Total deaths from cancer. These have
Measuring pain. The Department of Veterans Affairs offers medical care to 5.5 million patients. It wants doctors and nurses to treat pain as a “fifth vital sign,” to be recorded along with blood
Measuring life’s quality. Is life in Britain getting better or worse? The usual government data don’t say. So the British government announced that it wants to add measures of such things as
Measuring intelligence. “Intelligence” means something like “general problem-solving ability.” Explain why it is not valid to measure intelligence by a test that asks questions such as Who
Capital punishment. Between 1976 and 2007, 1099 convicted criminals were put to death in the United States. Here are data on the number of executions in several states during those years, as well as
Rates versus counts. Customers returned 36 coats to Sears this holiday season, and only 12 to La Boutique Classique next door. Sears sold 1200 coats this season, while La Boutique sold 200.(a) Sears

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