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business
statistics for business and economics

Questions and Answers of Statistics For Business And Economics

Retaliation against company “whistle-blowers.” Individuals who report perceived wrongdoing of a corporation or public agency are known as whistle-blowers. In the Journal of Applied Psychology,
Lobster fishing study. Refer to the Bulletin of Marine Science (April 2010) study of teams of fishermen fishing for the red spiny lobster in Baja California Sur, Mexico, Exercise 2.126 (p. 124). Two
Diamonds sold at retail. Refer to the Journal of Statistics Education study of 308 diamonds sold on the open market, Exercise 2.158 (p. 137). Recall that you related the size of the diamond (number
Software millionaires and birthdays. In Outliers: The Story of Success (Little, Brown, 2008), the author notes that a disproportionate number of software millionaires were born around the year 1955.
Prices of recycled materials. Prices of recycled materials (e.g., plastics, paper, and glass) are highly volatile due to the fact that supply is constant, rather than tied to demand. An exploratory
Doctors and ethics. Refer to the Journal of Medical Ethics (Vol. 32, 2006) study of physicians’ use of ethics consultation, Exercise 2.166 (p. 137). Recall that the medical researchers measured the
4 155.5 162.4 83.9 5 164.3 162.5
6 169.8 164.9
7 155.7 162.0 76.0 8 165.2 165.0
9 175.4 173.7 75.6 10 178.1 171.0 75.0 11 167.1 169.4 74.7 12 177.0 172.9 63.2 13 174.2 172.7
14 175.6 174.9 48.5 15 170.8 174.8 39.1 16 175.1 170.1 38.4 17 182.8 181.4 34.3 18 180.3 180.6 30.3 19 178.8 178.0 30.3 20 181.4 175.9 29.6 21 182.8 181.6 26.5 22 186.1 183.8 13.8 Source: Based on C.
Wastewater and electricity. Refer to the daily electricity consumption/supply and wastewater volume on Dillman Road for each of the first five days of each month of 2020, Exercise 2.26 (p. 77). The
Evaluating a truck weigh-in-motion program. The Minnesota Department of Transportation installed a state-of-the-art weigh-in-motion scale in the concrete surface of the eastbound lanes of Interstate
Energy efficiency of buildings. Firms conscious of the energy efficiency of proposed new structures are interested in the relation between yearly energy consumption and the number of square feet of
Forecasting managerial needs. Managers are an important part of any organization’s resource base. Accordingly, the organization should be just as concerned about forecasting its future managerial
Regression through the origin. Sometimes it is known from theoretical considerations that the straight-line relationship between two variables, x and y, passes through the origin of the xy-plane.
Comparing cost functions. Models of past cost behavior are called cost functions. Factors that influence costs are called cost drivers (Horngren, Datar, and Rajan, Cost Accounting, 2018). Assume the
Heart failure analysis. Cardiovascular diseases kill approximately 17 million people globally every year, and they mainly exhibit as myocardial infarctions and heart failures. Heart failure (HF)
SAS was used to fit the model E(y) = P, + P,x, +P,x, to n = 20 data points and the printout shown on page 573 was obtained.a. What are the sample estimates of P,,, P,, and P,?b. What is the least
Suppose you fit the multiple regression model Y = Po + Ptx1 + P2~2 + P3x3 + E to n = 30 data points and obtain the following result:jj = 3.4 - 4.6~~ + 2.7~~ + .93x3 The estimated standard errors of
Suppose you fit the first-order multiple regression model to n = 25 data points and obtain the prediction equamil= 6.4 + 3.1~~ + .92x, The estimated stand_ard deviations of the sampling distributions
Consider the first-order model equation in three quantitative independent variablesa. Graph the relationship between y and x, for x2 = 1 and x, = 3.b. Repeat part a for x, = -1 and x, = 1.c. How do
Detailed interviews were conducted with over 1,000 street vendors in the city of Puebla, Mexico, in order to study the factors influencing vendors' incomes (World Development, Feb. 1998). Vendors
Refer to the Chief Executive (Sept. 1999) study of chief e ecutive officers (CEOs) from a variety of industries,, 4 xercise 9.35 (p. 500). Recall that a CEO's pay (y) was modeled as a function of
Many variables influence the price of a company's common stock, including company-specific internal variables such as product quality and financial performance, and external market variables such as
A disabled person's acceptance of a disability is critical to the rehabilitation process. Thc Journal of Rehabilitation (Sept. 1989) published a study that investigated the relationship between
Refer to the Journal ofApplied Ecology (Vol. 32,1995)study of the feeding habits of baby snow geese, Exercise 9.56 (p. 514). The data on gosling weight change, digestion efficiency, acid-detergent
Empirical research was conducted to investigate the variables that impact the size distribution of manufacturing firms in international markets (World Development, Vol. 20,1992). Data collected on n
Location is one of the most important decisions for hotel chains and lodging firms. A hotel chain that can select good sites more accurately and quickly than its competition has a distinct
In the oil industry, water that mixes with crude oil during production and transportation must be removed. Chemists have found that the oil can be extracted from the waterloil mix
The owner of an apartment building in Minneapolis believed that her property tax bill was too high because of an overassessment of the property's value by the city tax assessor.The owner hired an
Suppose you fit the first-order model to n = 30 data points and obtain SSE = .33 R2 = .92a. Do the values of SSE and R2 suggest that the model provides a good fit to the data? Explain.b. Is the model
The first-order model y = Po + Plxl + P2x2 + E was fit to n = 19 data points with the results shown in the SAS printout provided below.a. Find R2 and interpret its value.b. Find Ri and interpret its
Suppose you fit the first-order model to n = 20 data points and obtaina. Construct an analysis of variance table for this regression analysis, using the same format as the printout in Exercise 10.17.
Refer to the World Development (Feb. 1998) study of street vendors in the city of Puebla, Mexico, Exercise 10.7(p. 573). Recall that the vendors' mean annual earnings Eb) was modeled as a first-order
Refer to the Chief Executive (Sept. 1999) study of CEOs, Exercise 10.8(p. 574). Recall that a CEO's pay y was modeled as a function of company performance x, and company sales x2 using a first-order
The Journal of Quantitative Criminology (Vol. 8,1992)published a paper on the determinants of area property crime levels in the United Kingdom. Several multiple regression models for property crime
External auditors are hired to review and analyze the financial and other records of an organization and to attest to the integrity of the organization's financial statements. In recent years, the
An important goal in occupational safety is "active caring." Employees demonstrate active caring (AC)about the safety of their co-workers when they identify environmental hazards and unsafe work
Refer to the Interfaces (Mar.-Apr. 1990) study of La Quinta Motor Inns, Exercise 10.13(p. 578).The researchers used state population per inn (x,), inn room ratc (x,), median income of the area (x?),
Regression analysis was employed to investigate the determinants of survival size of nonprofit hospitals(Applied Economics,Vol. 18,1986). For a given sample of hospitals, survival size, y, is defined
Because the coefficient of determination R2 always increases when a new independent variable is addcd to the model, it is tempting to include many variables in a model to force R2 to be near 1.
Much research-and much litigation-has been conducted on the disparity between the salary levels of men and women. Research reported in Work and Occupations (Nov. 1992) analyzes the salaries for a
Refer to the Journal of Applied Ecology study of the feeding habits of baby snow geese, Exercise 10.11(p. 577).The MINITAB printout for the model relating weight change (y) to digestion efficiency
Multiple regression is used by accountants in cost analysis to shed light on the factors that cause costs to be incurred and the magnitudes of their effects.The independent variables of such a
Refer to the World Development (Feb. 1998) study of street vendors' earnings, y, Exercises 10.7 and 10.20(pp. 573,586).The STATISTIX printout below shows both a 95% prediction interval for y (left
Refer to the Journal of Applied Ecology study of the feeding habits of baby snow geese, Exercises 10.11 and 10.29(pages 577,59l).The MINITAB printout for the first-order model relating gosling weight
Refer to Exercise 10.14(p. 578). The researchers concluded that "in order to break a water-oil mixture with' the lowest possible voltage, the volume fraction of the disperse phase x, should be high,
An article published in Geography (July 1980) used multiple regression to predict annual rainfall levels in California. Data on the average annual precipitation (y), altitude (x,), latitude (x,), and
In a production facility, an accurate estimate of manhours needed to complete a task is crucial to manage ment in making such decisions as the proper number of workers to hire, an accurate deadline
Identify the problem(s) in each of the residual plots shown at the bottom of the page.
Consider fitting the multiple regression model E(Y) = Po + PIXI + P2~2 +P3x3 + P4x4 + Psx5 A matrix of correlations for all pairs of independent variables is given to the right. Do you detect a
Chemical engineers at Tokyo Metropolitan University analyzed urban air specimens for the presence of low Correlation Matrix for Exercise 10.37.................................. -
World Development (Vol. 20,1992) published a study of the variables impacting the size distribution of manufacturing firms in international markets. Five independent variables, Gross Domestic Product
Passive exposure to environmental tobacco smoke has been associated with growth suppression and an increased frequency of respiratory tract infections in normal children. Is this association more
Road construction contracts in the state of Florida are awarded on the basis of com~etitive, sealed bids; the contractor who submits the lowest bid price wins the contract. During the 1980s, the
The data in the table on p. 624 were collected for a random sample of 26 households in Washington, D.C., during 2000. An economist wants to relate household food consumption, y, to household income,
Suppose you fit the model y = PO + Plxl + P~X: + hx2 + P4~1~2 +to n = 25 data points with the following results:SSE = .41 R2 = .83 .a. Is there sufficient evidence to conclude that at least one of
Suppose you have developed a regression model to explain the relationship between y and x,, x2, and x,.The ranges of the variables you observed were as follows: 10 5 y 5 100, 5 5 x, 5 55, .5 5 x2 5
Suppose you used MINITAB to fit the model to n = 15 data points and you obtained the printout shown below.a. What is the least squares prediction equation?b. Find R2 and interpret its value.c. Is
The first-order model E(y) = Po + P,x1 was fit to n = 19 data points. A residual plot for the model is shown on p. 628. Is the need for a quadratic term in the model evident from the residual plot?
To model the relationship between y, a dependent variable, and x, an indepcndent variable, a researcher has taken one measurement on y at each of three different x values. Drawing on his mathematical
BestS Review (June 1999) compared the mortgage loan portfolios for a sample of 25 lifelhealth insurance companies. The information in the table on page 629 is extracted from the articlc. Suppose you
Emergency services (EMS) personnel are constantly exposed to traumatic situations. However, few researchers have studied the psychological stress that EMS personnel may experience. The Journal of
Since the Great Depression of the 1930s. the link between the suicide rate and the state of the economy has been the subject of much research. Research exploring this link using regression analysis
To meet the increasing demand for new software products, many systems development experts hait adopted a prototyping methodology. The effects on prototyping on the system development life cycle(SDLC)
Traffic forecasters at the Minnesota Department of Transportation (MDOT) use regression analysis to estimate weekday peak-hour traffic volumes on existing and proposed roadways. In particular, they
The audience for a product's advertising can be divided into two segments according to the degree of exposurr.received as a result of the advertising. These segments are groups of consumers who
Many colleges and universities develop regression models for predicting the GPA of incoming freshmen.This predicted GPA can then be used to make admission decisions. Although most models use many
According to the U. S. Department of Commerce, the average price for a new home topped $200.000 for the first time in 1999. In November 1999, the average new-home price was $209.700 (Wall Street
We reject the null hypothesis when the test statistic falls in the rejection region, but we do not accept the null hypothesis when the test statistic does not fall in the rejection region. Why?
For each of the following rejection regions, sketch the sampling distribution for z and indicate the location of the rejection region.a. H0: m … m0 and Ha: m 7 m0; a = .1b. H0: m … m0 and Ha: m 7
Use the applet Hypothesis Test for a Mean to investigate the frequency of Type I and Type II errors. For this exercise, use n = 100 and the normal distribution with mean 50 and standard deviation
Primary school absenteeism. Absence from school can lead to lower educational achievement and poor health. An article published in the BMC Public Health (Vol. 21, 2021) explored absenteeism in
Personal computers and laptops have come a long way since they were first developed. In the past, computers tended to be ridiculously huge and expensive, and they performed poorly. Today’s
Electricity needs. Solar energy is a form of renewable energy that is environment friendly, safe to you, and infinite. The Dubai Supreme Energy Council announced a new renewable electricity sources
Drill rig operations. In January 2021, an energy finance analysis study by the Institute for Energy Economics and Finance Analysis reported that the price volatility of liquefied natural gas (LNG)
Weight gained in twin pregnancies. A group of researchers established age-standardized charts reporting weight gain during term twin pregnancies in Southeast China in the BMC Pregnancy Childbirth
Libor interest rate. The interest rate at which London banks lend money to one another is called the London interbank offered rate, or Libor. The British Bankers Association regularly surveys
FDA certification of new drugs. Pharmaceutical companies spend billions of dollars per year on research and development of new drugs. The pharmaceutical company must subject each new drug to lengthy
Authorizing computer users with palm prints. Access to computers, email, and Facebook accounts is achieved via a password—a collection of symbols (usually letters and numbers) selected by the user.
● Observed Significance Levels: p-Values 399c. Another successful security system, the EyeDentifyer, “spots authorized computer users by reading the oneof-a-kind patterns formed by the network
Biomechanics of novice runners. An article published in Applied Bionics and Biomechanics (Vol. 2021) discusses how the study of the biomechanics of novice runners can help them avoid running injuries
Intrusion detection systems. The Journal of Research of the National Institute of Standards and Technology (November–December 2003) published a study of a computer intrusion detection system (IDS).
Consider the test of H0:m = 10. For each of the following, find the p-value of the test:a. Ha:m 7 10, z =
b. Ha:m 6 10, z = -0.75c. Ha:m ≠ 10, z =
7.20 If a hypothesis test were conducted using a = .05, for which of the following p-values would the null hypothesis be rejected?a. .06b. .10c. .01d. .001e. .251f. .042
For each a and observed significance level (p-value) pair, indicate whether the null hypothesis would be rejected.a. a = .05, p@value = .10b. a = .10, p@value = .05c. a = .01, p@value = .001d. a =
In a test of the hypothesis H0: m = 50 versus Ha: m 7 50, a sample of n = 100 observations possessed mean x =
and standard deviation s = 4.1. Find and interpret the p-value for this test.
In a test of H0: m = 100 against Ha: m 7 100, the sample data yielded the test statistic z = 2.17. Find and interpret the p-value for the test.
In a test of the hypothesis H0: m = 10 versus Ha: m ≠ 10, a sample of n = 50 observations possessed mean x =
In a test of H0: m = 100 against Ha: m ≠ 100, the sample data yielded the test statistic z = 2.17. Find the p-value for the test.
For each of the following situations, determine the p-value and make the appropriate conclusion.a. H0: m … 25, Ha: m 7 25, a = .01, z =
b. H0: m Ú 6, Ha: m 6 6, a = .05, z = -1.78c. H0: m = 110, Ha: m ≠ 110, a = .1, z = -1.93d. H0: m = 10, Ha: m ≠ 10, a = .05, z =
7.27 An analyst tested the null hypothesis that m Ú 20 against the alternative hypothesis that m 6 20. The analyst reported a p-value of .06. What is the smallest value of a for which the null
A random sample of 80 observations from a population with population mean 198 and population standard deviation of 15 yielded a sample mean of 190.a. Construct a hypothesis test with the alternative
A random sample of 45 observations produced the following summary statistics: x =
and s2 = 5.24.a. Test the null hypothesis that m = 20 against the alternative hypothesis that m 6 16 using a = 0.05.b. Test the null hypothesis that m = 20 against the alternative hypothesis that m
(p. 337). Recall that the level of support for corporate sustainability (measured on a quantitative scale ranging from 0 to 160 points) was obtained for each in a sample of 992 senior managers at CPA

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