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business
statistics for business and economics

Questions and Answers of Statistics For Business And Economics

Select a problem, event, or condition whose cause or causes you would like to diagnose. Construct a cause-andeffect diagram that would facilitate your diagnosis.
What is a process? Give an example of an organizational process.
Lowering the thickness of an expensive blow-molded container. Refer to the Quality (March 2009) study of a plant that produces a high-volume, blow-molded container, Exercise 13.33 (p. 13-41). Recall
Driver gear bore holes. During the manufacture of the driver gear of an automobile, a dial bore gauge is used to bore a hole into cast steel. Specifications require that the diameter of the bore hole
Bioreactor production of antibodies. Benchtop bioreactors are used to produce antibodies for anti-cancer drugs. Engineers calibrate bioreactors in order to maximize production. The African Journal
Military aircraft bolts. Refer to Exercise 13.37 (p. 13-42) and the data on lengths of bolts used in military aircraft. Management has specified the USL and LSL as 37 cm and 35 cm, respectively.a.
Producing aluminum plates with holes. Refer to the Quality and Reliability Engineering International (June 2020) data on diameters of drilled holes, Exercise 13.18 (p. 13-31). Assume the
Water use at a thermal power plant. Thermal power plants use demineralized (DM) water for steam generation. Since it is costly to replace, power plants must conserve the use of DM water. DM water
Drip irrigation. In agriculture, water is distributed to the active root zone of plants using a drip irrigation system. The system involves drippers and drip lines. The quality of the water flow
Upper specification limit of a process. An in-control, centered process that follows a normal distribution has a Cp = 2.0. How many standard deviations away from the process mean is the upper
Find the value of Cp for each of the following situations:a. USL = 1.0065, LSL = 1.0035, s = .0005b. USL = 22, LSL = 21, s = .2c. USL = 875, LSL = 870, s = .75 Applying the Concepts—Basic
Find (or estimate) the process spread for each of the following.a. s = 21b. s = 5.2c. s = 110.06d. s = .0024
Rubber company tire tests. Goodstone Tire & Rubber Company is interested in monitoring the proportion of defective tires generated by the production process at its Akron, Ohio, production plant. The
Leaky process pumps. Quality (February 2008) presented a problem that actually occurred at a company that produces process pumps for a variety of industries. The company recently introduced a new
Monitoring organizational e-mails. One way to measure the level of communication at a company is by the number of daily e-mails sent. The communication network at Enron (just prior to the scandal
Monitoring newspaper typesetters. Accurate typesetting is crucial to the production of high-quality newspapers and magazines. The editor of a weekly publication has instituted a process for
Hand break cable defects. In Control Engineering Practice (March 2013), researchers demonstrated the use of a p-chart for monitoring defects in new automobile hand break cables. A sample of 20 hand
Quality monitoring of soybeans. The success of soybean cultivation in Brazil was the topic of research published in the Brazilian Journal of Agricultural and Environmental Engineering (October 2018).
Rental car call center study. A worldwide rental car company receives about 10,000 customer complaint calls per month at its European call center. In an effort to reduce the proportion of issues
Monitoring surgery complications. An article on the use of control charts for monitoring the proportion of post operative complications at a large hospital was published in the International Journal
Academic failure rates in Nigeria. The quality assurance of the college education system in Nigeria was investigated and the results reported in the American Journal of Mathematics and Statistics
To construct a p-chart, 20 samples of size 150 were drawn from a process. The proportion of defective items found in each of the samples is listed in the next table. Sample Proportion Defective
To construct a p-chart for a manufacturing process, 25 samples of size 200 were drawn from the process. The number of defectives in each sample is listed in time order in the table that follows.
In each of the following cases, use the sample size formula to determine a sample size large enough to avoid constructing a p-chart with a negative lower control limit.a. p0 = .01b. p0 = .05c. p0 =
What characteristic of a process is a p-chart designed to monitor?
Precision of scale weight measurements. The Journal of Quality Technology (July 1998) published an article examining the effects of the precision of measurement on the R-chart. The authors presented
Military aircraft bolts. A precision parts manufacturer produces bolts for use in military aircraft. Ideally, the bolts should be 37 centimeters in length. The company sampled four consecutively
Replacement times for lost ATM cards. In an effort to reduce customer dissatisfaction with delays in replacing lost automated teller machine (ATM) cards, some retail banks monitor the time required
Chunky data. Refer to Exercise 13.21 (p. 13-32) and the hourly data collected by BPI consulting. Recall that the data are saved in the file.a. Construct an R-chart for the data. Is the process
Cola bottle filling process. A soft-drink bottling company is interested in monitoring the amount of cola injected into 16-ounce bottles by a particular filling head. The process is entirely
Lowering the thickness of an expensive blow-molded container. Quality (March 2009) presented a problem that actually occurred at a plant that produces a highvolume, blow-molded container with
Photoresists in semiconductor manufacturing. Refer to the Quality and Reliability Engineering International (April 2020) study of photoresists in semiconductor manufacturing, Exercise 13.22 (p.
4.4 3 22.6 21.4 21.4 22.1 19.2 20.6 18.7 20.86 3.9 4 18.1 20.8 17.8 19.6 19.8 21.7 20.0 19.69 3.9 5 22.6 19.1 21.4 21.8 18.4 18.0 19.5 20.11 4.6 6 19.1 19.0 22.3 21.5 17.8 19.2 19.4 19.76 4.5 7 17.1
Construct and interpret an R-chart and an x@chart from the sample data shown below. Remember to interpret the R-chart before the x@chart. L13028 Data for Exercise 13.28 Sample Measurements x R 1 2 3
Construct and interpret an R-chart for the data in Exercise 13.11 (p. 13-29).a. Calculate and plot the upper control limit and, if appropriate, the lower control limit.b. Calculate and plot the A,
Use Table IX on page 13-74 to find the values of D3 and D4 for each of the following sample sizes.a. n = 4b. n = 12c. n = 24 13.26 Construct and interpret an R-chart for the data in Exercise 13.10
Photoresists in semiconductor manufacturing. Photoresists are light-sensitive polymeric resins used in the manufacturing of a variety of products, including printing plates, printed circuit
Chunky data. BPI Consulting, a leading provider of statistical process control software and training in the United States, alerted its clients to problems with “chunky” data. BPI Consulting
Selecting the best wafer-slicing machine. Silicon wafer slicing is a critical step in the production of semiconductor devices (e.g., diodes, solar cells, transistors). Yuanpei (China) University
Improving public health waiting times. Statistical process control was utilized in an effort to improve the service delivery at a Women, Infants, and Children (WIC) health clinic in Minnesota
Producing aluminum plates with holes. A French company produces aluminum plates in which holes are bored using a drilling machine. The inner diameter of each hole is designed to be 19.1 millimeters.
Pain levels of ICU patients. Various interventions are available for nurses to help relieve patients’ pain (e.g., heat/cold applications, breathing exercises, massage). The ICU Data for Exercise
COVID-19 control charts. To help deal with the COVID-19 pandemic of 2020, the Montgomery County (PA) Fire & Rescue Service created quality control charts for various virus metrics such as daily call
Active pharmaceutical ingredient. During the development of a new drug, pharmaceutical companies monitor the drug’s active pharmaceutical ingredient (API). An article published in Organic Process
Monitoring urinary tract infections. In Quality Engineering (Vol. 25, 2013), control chart methodology was applied to monitor the time between discharges of male patients with hospital-acquired
Inspection of parts produced. A new inspection scheme for determining if parts produced meet customer satisfaction was evaluated in Quality Engineering (Vol. 31, 2019). For a particular part, the
HVAC energy consumption. A control chart to monitor the installation of a new heating, ventilation, and air conditioning (HVAC) system for a clothing store in Panama City, FL, was presented in
The data in the following table were collected for the purpose of constructing an x@chart.a. Calculate x and R for each sample.b. Calculate x and R.c. Calculate and plot the centerline and the upper
Twenty-five consecutive samples of size n = 5 were collected to construct an x@chart. The sample means and ranges for the data are shown in the table. Sample xQ R Sample xQ R 1 80.2 7.2 14 83.1 10.2
Use Table IX on page 13-74 to find the value of A2 for each of the following sample sizes.a. n = 3b. n = 10c. n = 22
Consider the x@chart shown below. 1 A B C C B A Sample number UCL x LCL = x – 5 10 15 20 25 5 10 15 20 25 30 35a. Is the process affected by special causes of variation only, common causes of
to determine whether the process being monitored with the x@chart shown below is out of statistical control. 1 A B C C B A Sample number UCL x LCL = x – 5 10 15 20 25
Use the six pattern-analysis rules described in Figure
What must be true about the variation of a process before an x@chart is used to monitor the mean of the process? Why?
Even if all the points on an x@chart fall between the control limits, the process may be out of control. Explain.
Which process parameter is an x@chart used to monitor?
When a control chart is first constructed, why are the centerline and control limits treated as trial values?
Explain why rational subgrouping should be used in constructing control charts.
IQs and The Bell Curve. The Bell Curve (Free Press, 1994), written by Richard Herrnstein and Charles Murray (H&M), is a controversial book about race, genes, IQ, and economic mobility. The book
Developing a model for college GPA. Many colleges and universities develop regression models for predicting the GPA of incoming freshmen. This predicted GPA can then be used to make admission
Modeling monthly collision claims. A mid-Atlantic state automobile insurance company is interested in developing a regression model to help predict the monthly collision claims of its
State casket sales restrictions. Refer to the Journal of Law and Economics (February 2008) study of the impact of lifting casket sales restrictions on the cost of a funeral, Exercise 12.123 (p.
Household food consumption. The data in the table below were collected for a random sample of 26 households in Washington, D.C. An economist wants to relate household food consumption, y, to
Forecasting a job applicant’s merit rating. A large research and development firm rates the performance of each member of its technical staff on a scale of 0 to 100, and this merit rating is used
Homework assistance for accounting students. Refer to the Journal of Accounting Education (Vol. 25, 2007) study of assisting accounting students with their homework, Exercise 9.103 (p. 595). Recall
Sale prices of apartments. A Minneapolis, Minnesota, real estate appraiser used regression analysis to explore the relationship between the sale prices of apartment buildings and various
Forecasting daily admission of a water park (cont’d). Refer to Exercise 12.165. The owners of the water adventure park are advised that the prediction model could probably be improved if
Forecasting daily admission of a water park. To determine whether extra personnel are needed for the day, the owners of a water adventure park would like to find a model that would allow them to
Cooling method for gas turbines. Refer to the Journal of Engineering for Gas Turbines and Power (January 2005) study of a high-pressure inlet fogging method for a gas turbine engine, Exercise 7.131
Impact of advertising on market share. The audience for a product’s advertising can be divided into four segments according to the degree of exposure received as a result of the advertising. These
Glass as a waste encapsulant. Because glass is not subject to radiation damage, encapsulation of waste in glass is considered to be one of the most promising solutions to the problem of low-level
Fishing in Finland. A set of data contains the weight (gram) and the percentage of height based on the length of two types of fish (Bream, Perch) in Finland with n = 90 observations. The data are
Estimating change-point dosage. A standard method for studying toxic substances and their effects on humans is to observe the responses of rodents exposed to various doses of the substance over
Girolando cattle weight. A group of researchers generated a model of the body measurements of Girolando cattle by extracting their image measurements, aiming to understand which measurements further
Promotion of supermarket vegetables. A supermarket chain is interested in exploring the relationship between the sales of its store-brand canned vegetables 1y2, the amount spent on promotion of the
Tourist satisfaction. A study presented in IOP Conference Series: Materials Science and Engineering (2020) predicted consumer behavior in the tourism industry in Indonesia. The study used a survey of
Ketogenic diet. A study was conducted to measure the improvement of heart function following a ketogenic diet. Consider a model relating heartbeat rate 1y2 to total daily calories 1x12, carbohydrate
Self-care behaviors among patients. A study in the Journal of Clinical Nursing (Vol. 29, 2020) examined the level of and identified factors affecting the self-care behaviors in patients with diabetic
Accuracy of software effort estimates. Periodically, software engineers must provide estimates of their effort in developing new software. In the Journal of Empirical Software Engineering (Vol. 9,
Agricultural business investment. A study in the Journal of Management & Agribusiness (Vol. 17, 2020) aimed to identify the factors that influence people’s participation in agricultural business
Profit of a production. The profit earned by a manufacturer after selling x products is shown in the following table. Production, x (in 00) Profit, y (in $000) 10 150 20 200 30 250 40 300 50 290 60
Consumption expenditure. A study in the European Journal of Marketing and Economics (Vol. 3, 2020) estimated the final recorded consumption of the Albanian economy using the data over a 10-year
Role of retailer interest on shopping behavior. Retail interest is defined by marketers as the level of interest a consumer has in a given retail store. Marketing professors investigated the role of
Burnout syndrome in academic physicians. A study in Behavioral Sciences (Vol. 10, 2020) investigated the prevalence of burnout and the potential etiological variables of work-related stressors of
Solar radiation. A study in Meteorology and Atmospheric Physics (2020) estimated the solar radiation over three scenarios of days by considering a few meteorological parameters. The results of the
Cyber security awareness. A study highlighted the differences in the cyber security awareness between Asian and European countries based on individuals’ computer knowledge scores. The cyber
GPAs of business students. Research scientists at the Educational Testing Service (ETS) used multiple regression analysis to model y, the final grade point average (GPA) of business and management
Life satisfaction in older adults with morbidity. A study in Psychogeriatrics (2020), the official journal of the Japanese Psychogeriatric Society, examined the moderating effect of gender on life
Suppose you fit the regression model E1y2 = b0 + b1x1 + b2x1 2 + b3x2 + b4x2 2 + b5x1 x2 to n = 22 data points and wish to test the null hypothesis H0: b5 = 0.a. State the alternative hypothesis.b.
To model the relationship between y, a dependent variable, and x, an independent variable, a researcher has taken one measurement on y at each of three different x-values. Drawing on his
Consider relating E1y2 to two quantitative independent variables x1 and x2.a. Write a first-order model for E1y2.b. Write a complete second-order model for E1y2.
It is desired to relate E1y2 to a quantitative variable x1 and a qualitative variable at three levels.a. Write a first-order model.b. Write a model that will graph as three different second-order
Write a model relating E1y2 to one qualitative independent variable that is at four levels. Define all the terms in your model.
The first-order model E1y2 = b0 + b1x1 was fit to n = 25 data points. A residual plot for the model is provided below. Is the need for a quadratic term in the model evident from the residual plot?
Suppose you used StatCrunch to fit the model y = b0 + b1x1 + b2x2 + e to n = 15 data points and obtained the printout shown below.a. What is the least squares prediction equation?b. Find R2 and
Suppose you fit the model y = b0 + b1x1 + b2x1 2 + b3x2 + b4x1x2 to n = 20 data points with the following results: bn 0 = 5.82 bn 1 = 1.94 bn 2 = -2.11 bn 3 = 1.79 bn 4 = -.36 sbn1 = .74 sbn2 = 2.15
When a multiple regression model is used for estimating the mean of the dependent variable and for predicting a new value of y, which will be narrower—the confidence interval for the mean or the
Suppose you have developed a regression model to explain the relationship between y and x1, x2, and x3. The ranges of the variables you observed were as follows: 10 … y … 100, 5 … x1 … 55, .5
Regression residuals in the Air Cargo class action case. Class actions are cases in which numerous plaintiffs have a common legal claim against multiple defendants. A recent class action (the Air
Agreeableness, gender, and wages. Refer to the Journal of Personality and Social Psychology (Feb. 2012) study of on-the-job agreeableness and wages, Exercise 12.107 (p. 778). Recall that the

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