Cancer Research. A seven-year medical research study reported that women whose mothers who took the drug diethylstilbestrol (DES) during pregnancy were twice as likely to develop tissue abnormalities that might lead to cancer as were women whose mothers did not take the drug. a. This study compared two populations. What were the populations? b. Do you suppose the data were obtained in a survey or an experiment?

c. For the population of women whose mothers took the drug DES during pregnancy, a sample of 3980 women showed that 63 developed tissue abnormalities that might lead to cancer. Provide a descriptive statistic that could be used to estimate the number of women out of 1000 in this population who have tissue abnormalities. d. For the population of women whose mothers did not take the drug DES during pregnancy, what is the estimate of the number of women out of 1000 who would be expected to have tissue abnormalities? e. Medical studies often use a relatively large sample (in this case, 3980). Why?

Readership Poll. The Tennessean, an online newspaper located in Nashville, Tennessee, conducts a daily poll to obtain reader opinions on a variety of current issues. In a recent poll, 762 readers responded to the following question: "If a constitutional amendment to ban a state income tax is placed on the ballot in Tennessee, would you want it to pass?" Possible responses were Yes, No, or Not Sure (The Tennessean website). a. What was the sample size for this poll?

b. Are the data categorical or quantitative?

c. Would it make more sense to use averages or percentages as a summary of the data for this question? d. Of the respondents, 67% said Yes, they would want it to pass. How many individuals provided this response?

Solution:

Question # 3 (5- marks) Cancer Research. A seven-year medical research study reported that women whose mothers who took the drug diethylstilbestrol (DES) during pregnancy were twice as likely to develop tissue abnormalities that might lead to cancer as were women whose mothers did not take the drug. a. This study compared two populations. What were the populations? b. Do you suppose the data were obtained in a survey or an experiment?

c. For the population of women whose mothers took the drug DES during pregnancy, a sample of 3980 women showed that 63 developed tissue abnormalities that might lead to cancer. Provide a descriptive statistic that could be used to estimate the number of women out of 1000 in this population who have tissue abnormalities. d. For the population of women whose mothers did not take the drug DES during pregnancy, what is the estimate of the number of women out of 1000 who would be expected to have tissue abnormalities? e. Medical studies often use a relatively large sample (in this case, 3980). Why?

Solution:

Question # 4 (5- marks) Middle-Level Manager Salaries. Suppose that an independent study of middle-level managers employed at companies located in Atlanta, Georgia, was conducted to compare the salaries of managers working at firms in Atlanta to the salaries of middle-level managers across the nation. The following data show the salary, in thousands of dollars, for a sample of 15 middle-level managers employed at companies in the Atlanta area. 108 83 106 73 53 85 80 63 67 75 124 55 93 118 77 a. Compute the median salary for the sample of 15 middle-level managers. Suppose the median salary of middle-level managers employed at companies located across the nation is $85,000. How does the median salary for middle-level managers in the Atlanta area compare to the median for managers across the nation? b. Compute the mean annual salary for managers in the Atlanta area and discuss how and why it differs from the median computed in part (a) for Atlanta area managers. c. Compute the first and third quartiles for the salaries of middle-level managers in the Atlanta area. Solutions:

Question # 5 (5- marks) Powerball Lottery. The Powerball lottery is played twice each week in 44 states, the District of Columbia, and the Virgin Islands. To play Powerball, a participant must purchase a $2 ticket, select five numbers from the digits 1 through 69, and then select a Powerball number from the digits 1 through 26. To determine the winning numbers for each game, lottery officials draw 5 white balls out of a drum of 69 white balls numbered 1 through 69 and 1 red ball out of a drum of 26 red balls numbered 1 through 26. To win the Powerball jackpot, a participant's numbers must match the numbers on the 5 white balls in any order and must also match the number on the red Powerball. The numbers 4-8-19-27-34 with a Powerball number of 10 provided the record jackpot of $1.586 billion (Powerball website). a. How many Powerball lottery outcomes are possible? (Hint: Consider this a two-step random experiment. Select the 5 white ball numbers and then select the 1 red Powerball number.)

b. What is the probability that a $2 lottery ticket wins the Powerball lottery? Solution:

Question # 6 (7- marks) Part: a (4- marks)

Bow Valley Electronics sold a mini stereo set during a sale for $776. Determine the regular selling price of the set if the price of the set had been reduced by 1/4 of the original regular selling price. Solution

Part: b (3 - marks)

1. An item that costs a store $152.50 is marked up by $47.45. Determine: a. The rate of markup on cost. b. The rate of markup on selling price. Solution: