CHAPTER 2 2.

22 The data displayed below represent the cost of electricity during July 2004 for a random sample of 50 one-bedroom apartments in a large city. Raw data on Utility Charges ($) : 96 157 141 95 108 a. b. c. d. 171 185 149 163 119 202 90 206 150 183 178 116 175 154 151 147 172 123 130 114 102 111 128 143 135 153 148 144 187 191 197 213 168 166 137 127 130 109 139 129 82 165 167 149 158

Form a frequency distribution and a percentage distribution that have class intervals with the upper class limits $99, $119, and so on. Plot a histogram and a percentage polygon. Form the cumulative percentage distribution and plot the ogive (cumulative percentage polygon). Around what amount does the monthly electricity cost seem to be concentrated?

2.28 The following data represent the responses to two questions asked in a survey of 40 college students majoring in business what is your gender? (Male=M; Female=F) and what is your major? (Accountancy=A; Computer Information Systems=C; Marketing=M): Gender : Major : Gender : Major : MMMFMFFMFMFMMMMFFMFF ACCMACAACCAAAMCMAAAC MMMMFMFFMMFMMMMFMFMM CCAAMMCAAACCAAAACAC

a.

Tally the data into a contingency table where the two rows represent the gender categories and the three columns represent the academicmajor categories. Form cross-classification tables based on percentages of all 40 student responses, based on row percentages, and based on column percentages. Using the results from (a), construct a side-by-side bar chart of gender based on student major.

b.

c.

CHAPTER 3 3.9 In the 2002-2003 academic year, many public universities in the United States raised tuition and fees due to a decrease in state subsidies (Mary Beth Marklein, Public Universities Raise Tuition, Fees-and Ire, USA Today, August 8, 2002, 1A-2A). The following represents the change in the cost of tuition, a shared dormitory room, and the most popular meal plan between the 20012002 academic year and the 2002-2003 academic year for a sample of 10 public universities. University University of California, Berkeley University of Georgia, Athens University of Illinois, Urbana-Champaign 1,589 593 1,223

3.10 The following data COFFEEDRINK represent the calories and fat (in grams) of 16-ounce iced coffee drinks at Dunkin Donuts and Starbucks. Product Calories 240 260 3.5 Fat

Dunkin Donuts Iced Mocha Swirl Latte (whole milk) 8.0 Starbucks Coffee Frappuccino blended coffee

Dunkin Donuts Coffee Coolatta (cream) Starbucks Iced Coffee Mocha Expresso (whole milk and whipped cream) Starbucks Mocha Frappuccino blended coffee (whipped cream) 420

350

22.0

350

20.0

16.0

Starbucks Chocolate Brownie Frappucinno blended Coffee (whipped cream) Starbucks Chocolate Frappucinno blended crme (whipped cream) 530 19.0 510 22.0

For each variable (calories and fat): a) b) Compute the mean, median, first quartile, and third quartile Compute the variance, standard deviation, range, interquartile range, coefficient of variation, and Z scores. Are there any outliers? Explain c) d) Are the data skewed? If so, how? Based on the results of (a) through (c), what conclusions can you reach concerning the calories and fat in iced coffee drinks at Dunkin Donuts and Starbucks? 3.23 The following data represent the quarterly sales tax receipts (in thousands of dollars) submitted to the comptroller of the Village of Fair Lake for the period ending March 2004 by all 50 business establishments in that locale: TAX 10.3 13.0 13.0 8.0 11.1 6.7 11.2 11.8 9.6 11.0 7.3 8.7 9.0 8.4 5.3 10.6 14.5 10.3 12.5 9.5

11.1 11.6 10.0 12.5 9.3 10.5

10.2 15.1 12.9 9.3 11.5 7.6

11.1 12.5 9.2 10.4 10.7 10.1

9.9 6.5 10.0 12.7 11.6 8.9

9.8 7.5 12.8 10.5 7.8 8.6

a) Compute the mean, variance, and standard deviation for this population b) What proportions of these businesses have quarterly sales tax receipts within 1, 2, or 3 standard deviation of the mean? c) Compare and contrast your findings whit what would be expected on the basis of the empirical rule. Are you surprised at the results in (b)? CHAPTER 4 4.63 A survey asked workers which aspects of his or her job are extremely important. The results in percentages are as follows: Is Aspect Extremely Important? Aspect of Job Good relationship with boss Up-to-date equipment Resources to do the job Easy commute Flexible hours at work Able to work at home Men 63% 59 55 48 40 21 Women 77% 69 74 60 53 34

Suppose the survey was based on the responses of 500 men and 500 women. Construct a contingency table for the different responses concerning each aspect of the job. If a respondent is chosen at random, what is the probability that

a)

He or she feels that a good relationship with the boss is an important aspect of the job?

b) c)

He or she feels that an easy commute is an important aspect of the job? The person is a male and feels that a good relationship with the boss is an important aspect of the job?

d)

The person is a female and feels that having the flexible hours is an important aspect of the job?

e)

Given that the person feels that having a good relationship with the boss is an important aspect of the job, what is the probability that the person is a male?

f)

Are any of the things that workers say are extremely important aspects of a job statistically independent of the gender of the respondent? Explain.

4.65 The owner of a restaurant serving Continental-style entrees was interested in studying ordering patterns of patrons for the Friday to Sunday weekend time period. Records were maintained that indicated the demand for dessert during the same time period. The owner decided to study two other variables along with whether a dessert was ordered: the gender of the individual and whether a beef entre was ordered. The results are as follows: GENDER Dessert ordered Yes No Total Male 96 224 320 Female 40 240 280 Total 136 464 600

BEEF ENTREE

Dessert ordered Yes No Total

Male 71 116 187

Female 65 348 413

Total 136 464 600

A waiter approaches a table to take an order. What is the probability that the first customer to order at the table a) b) c) d) e) Orders a dessert? Orders a dessert or a beef entre? Is a female and does not order a dessert? Is a female or does not order a dessert? Suppose the first person that the waiter takes the dessert order from is a female. What is the probability that she does not order dessert? f) g) Are gender and ordering dessert statistically independent? Is ordering a beef entre statistically independent of whether the person orders dessert?

CHAPTER 5 5.27 J.D Power & Associates calculates and publishes various statistics concerning car quality. The Initial Quality score measures the number of problems per new car sold. For 2003 model cars, the Lexus was the top brand with 1.63 problems per car. Koreas Kia came in last with 5.09 problems per car (L. Hawkins, Finding a Car Thats Built to Last? The Wall Street Journal, July 9,

2003, D1, D5). Let the random variable X be equal to the number of problems with a newly purchased Lexus. a. What assumptions must be made in order for X to be distributed as a Poisson random variable? Are these assumptions reasonable? Making the assumptions as in (a), if you purchased a 2003 Lexus, what is the probability that the new car will have: b. c. d. Zero problems? Two or fewer problems? Give an operational definition for problem. Why is the operational definition important in interpreting the Initial Quality score?

5.41 Cinema advertising is increasing. Normally 60 to 90 seconds long, these advertisements are longer and more extravagant, and tend to have more captive audiences than television advertisements. Thus, it is not surprising that the recall rates for viewers of cinema advertisements are higher that for television advertisements. According to survey research conducted by the ComQUEST division of BBM Bureau of Measurement in Toronto, the probability a viewer will remember a cinema advertisement is 0.74, whereas the probability a viewer will remember a 30-second television advertisement is 0.37 (Nate Hendley, Cinema Advertising Comes of Age, Marketing Magazine, May 6, 2002, 16) a. Is the 0.74 probability reported by the BBM Bureau of Measurement best classified as a priori classical probability, empirical classical probability, or subjective probability?

b.

Suppose that 10 viewers of cinema advertisement are randomly sampled. Consider the random variable defined by the number of viewers that recall the advertisement. What assumptions must be made in order to assume that this random variable is distributed as a binomial random variable?

c.

Assuming

that

the

number

of

viewers

that

recall

the

cinema

advertisement is a binomial variable, what are the mean and standard deviation of this distribution? d. Based on your answer to (c), if none of the viewers can recall the ad, what can be inferred about the 0.74 probability given in the article?

5.51 A study of the homepages for Fortune 500 companies reports that the mean number of bad links per homepage is 0.4 and the mean number of spelling errors per homepage is 0.16 (Nabil Tamimi, Murii Rajan, and Rose Sebastianella, Benchmarking the Home Pages of Fortune 500 Companies, Quality Progress, July 2000). Use the Poisson distribution to find the probability that a randomly selected homepage will contain a. b. c. d. Exactly 0 bad links 5 or more bad links Exactly 0 spelling errors 10 or more spelling errors

CHAPTER 6 6.7 During 2001, 61.3% of U.S. household purchased ground coffee and spent an average of $36.16 on ground coffee during the year (Annual Product Preference Study, Progressive Grocer, May 1, 2002, 31). Consider the annual ground coffee expenditures for households purchasing ground coffee, assuming that these expenditures are approximately distributed as a normal random variable with mean of $36.16 and a standard deviation of $10.00. a. b. c. d. Find the probability that a household spent less than $25.00. Find the probability that a household spent more than $50.00. What proportion of the households spent between $30.00 and $40.00? 99% of the households spent less than what amount?

6.28 The fill amount of soft drink bottles is normally distributed with a mean of 2.0 liters and a standard deviation of 0.005 liter. Bottles that contain less than 95% of the listed net content (1.90 liters in the case) can make the manufacturer subject to penalty by the state office of consumer affairs.

Bottles that have a net content above 2.10 liters may cause excess spillage upon opening. What proportion of the bottles will contain a. b. c. d. e. Between 1.90 and 2.0 liters? Between 1.90 and 2.10 liters? Below 1.90 liters or above 2.10 liters? 99% of the bottles contain at least how much soft drink? 99% of the bottles contain an amount that is between which two values (symmetrically distributed) around the mean?

CHAPTER 8 8.1 If X=85, =8, and n=64, construct a 95% confidence interval estimate of the population mean . 8.9 The inspection division of the Lee County Weights and Measures Department wants to estimate the actual amount of soft drink in 2-liter bottles at the local bottling plant of a large nationally known soft-drink company. The bottling plant has informed the inspection division that the population standard deviation for 2-liter bottles is 0.05 liter. A random sample of 100 2liter bottles at this bottling plant indicates a sample mean of 1.99 liters. a. Construct a 95% confidence interval estimate of the population mean amount of soft drink in each bottle. b. Must you assume that the population of soft-drink fill is normally distributed? Explain.

c. Explain why a value of 2.02 liters for a single bottle is not unusual, even though it is outside the confidence interval you calculated. d. Suppose that the sample mean had been 1.97 liters. What is your answer to (a)? 8.13 Construct a 95% confidence interval estimate for the population mean, based on each following sets of data, assuming that the population is normally distributed: Set 1 : Set 2 : 1,1,1,1,8,8,8,8 1,2,3,4,5,6,7,8

Explain why these data sets have different confidence intervals even though they have the same mean and range. 8.25 If n=400 and X=25, construct a 99% confidence interval estimate of the population proportion. 8.35 If you want to be 99% confident of estimating the population mean to within a sampling error of 0.02 and the standard deviation is assumed to be 100, what sample size is required?

8.63 The market research director for Dottys department store wants to study womens spending on cosmetics. A survey is designed in order to estimate the proportion of women who purchase their cosmetics primarily from Dottys department store, and the men yearly amount that women spend on cosmetics. A previous survey found that the standard deviation of the amount women spend on cosmetics in a year is approximately $18. a. What sample size is needed to have 99% confidence of estimating the population mean to within 5?

b. What sample size is needed to have 90% confidence of estimating the population proportion to within 0.045? c. Based on the results in (a) and (b), how many of the stores credit cardholders should be sampled? Explain.

QUIZ 1 4.62 A soft-drink bottling company maintains records concerning the number of unacceptable bottles of soft drink from the filling and capping machines. Based on past data, the probability that a bottle came from machine I and was nonconforming is 0.01 and the probability that a bottle came from machine II and was nonconforming is 0.025. Half the bottles are filled on machine I and the other half are filled on machine II. If a filled bottle of soft drink is selected at random, what is the probability that a. It is a nonconforming bottle? b. It was filled on machine I and is a conforming bottle? c. It was filled on machine or is a conforming bottle? d. Suppose you know that the bottle was produced on machine I. What is the probability that is nonconforming? e. Suppose you know that the bottle is nonconforming. What is the probability that it was produced on machine I? f. Explain the difference in the answers to (d) and (e). (Hint : Construct a 2x2 contingency table or a Venn diagram to evaluate the probabilities).

4.67
In February 2002, the Argentine peso lost 70% of its value compared to the United States dollar. This devaluation drastically raised the price of imported products. According to a survey conducted by AC Nielsen in April 2002, 68% of the consumers

in Argentina were buying fewer products than before the devaluation, 24% were buying the same number of products, and 8% were buying more products. Furthermore, in a trend toward purchasing less-expensive brands, 88% indicated that they had changed the brands they purchased (Michelle Wallin, Argentines Hone Art of Shopping in a Crisis, The Wall Street Journal, May 28, 2002, A15). Suppose the following complete set of results were reported.

NUMBER OF PRODUCTS PURCHASED BRANDS PURCHASED Same Changed Total Fewer 10 262 272 Same 14 82 96 More 24 8 32 Total 48 352 400

What is the probability that a consumer selected at random: a. Purchased the same number or more products than before? b. Purchased fewer products and changed brands? c. Given that a consumer changed the brands they purchased, what then is the probability that the consumer purchased fewer products than before?

4.68 Sport utility vehicles (SUVs), vans, and pickups are generally considered to be more prone to roll over than cars. In 1997, 24.0% of all highway fatalities involved a rollover; 15.8% of all fatalities in 1997 involved SUVs, vans, and pickups, given that the fatality involved a rollover. Given that a rollover was not involved, 5.6 % of all fatalities involved SUVs, vans, and pickups (Anna Wilde Mathews, Ford Ranger, Chevy Tracker Tilt in Test, The wall Street Journal, July 14, 1999, A2). Consider the following definitions: A = fatality involved an SUV, van, or pickup B = fatality involved a rollover a. Use Bayes theorem to find the probability that the fatality involved a rollover, given that the fatality involved an SUV, van, or pickup.

b. Compare the result in (a) to the probability that the fatality involved a rollover, and comment on whether SUVs, vans, and pickups are generally more prone to rollover accidents.