A summary table indicates the frequency, amount, or percentage of items in a set of categories so that you can see differences

between categories. An ordered array is a sequence of data, in rank order, from the smallest value to the largest value. The frequency distribution is a summary table in which the data are arranged into numerically ordered classes.

You must give attention to selecting the appropriate number of class groupings for the table, determining a suitable width of a class grouping, and establishing the boundaries of each class grouping to avoid overlapping. The central tendency is the extent to which all the data values group around a typical or central value. The variation is the amount of dispersion or scattering of values The shape is the pattern of the distribution of values from the lowest value to the highest value. The mean is generally used, unless extreme values (outliers) exist. The median is often used, since the median is not sensitive to extreme values. For example, median home prices may be reported for a region; it is less sensitive to outliers. In some situations it makes sense to report both the mean and the median. A random variable represents a possible numerical value from an uncertain event. Discrete random variables produce outcomes that come from a counting process (e.g. number of classes you are taking). Continuous random variables produce outcomes that come from a measurement (e.g. your annual salary, or your weight). A probability distribution for a discrete random variable is a mutually exclusive listing of all possible numerical outcomes for that variable and a probability of occurrence associated with each outcome. In convenience sampling, items are selected based only on the fact that they are easy, inexpensive, or convenient to sample. In a judgment sample, you get the opinions of pre-selected experts in the subject matter.

In a probability sample, items in the sample are chosen on the basis of known probabilities. A point estimate is a single number,

a confidence interval provides additional information about the variability of the estimate

An interval estimate provides more information about a population characteristic than does a point estimate. Point Estimate is the sample statistic estimating the population parameter of interest Critical Value is a table value based on the sampling distribution of the point estimate and the desired confidence level Standard Error is the standard deviation of the point estimate

Problems:
1)The 184 bond funds involved in Part I of the Choice IsYours scenario (see page 27) are classified according to their risk level, categorized as below average, average, and above average. Construct a summary table of the bond funds, categorized by risk. SOLUTION From Table 2.2, you can see that about the same number of funds are below average, average, and above average in risk. This means that 69.57% of the bond funds are classified as having an average or above average level of risk. Fund Risk Level Number of Funds Percentage of Funds (%) Below average 56 30.43% Average 69 37.50% Above average 59 32.07% Total 184 100.00%

2) In the Using Statistics scenario, you are interested in comparing the 2009 return of intermediate government and short-term corporate bond mutual funds. Construct frequency distributions for the intermediate government funds and the short-term corporate bond funds. SOLUTION The 2009 returns of the intermediate government bond funds are highly concentrated between 0 and 10, whereas the 2009 returns of the short-term corporate bond funds are highly concentrated between 5 and 15 (see Table 2.9). For the bond fund data, the number of values is different in the two groups. When the number of values in the two groups is not the same, you need to use proportions or relative frequencies and percentages in order to compare the groups.

2009 Return

Intermediate Government Frequency Short-Term Corporate Frequency -10 but less than -5 0 1 -5 but less than 0 13 0 0 but less than 5 35 15 5 but less than 10 30 38 10 but less than 15 6 31 15 but less than 20 1 9 20 but less than 25 1 1 25 but less than 30 1 1 30 but less than 35 0 1 Total 87 97 3) Nutritional data about a sample of seven breakfast cereals (stored in ) includes the number of calories per serving (see Example 3.1 on page 98). Compute the median number of calories in breakfast cereals. SOLUTION Because the result of dividing by 2 is for this sample of seven, using Rule 1, the median is the measurement associated with fourth ranked value. The number of calories per serving data are ranked from the smallest to the largest: 1234567 The median number of calories is 110. Half the breakfast cereals have equal to or less than 110 calories per serving, and half the breakfast cereals have equal to or more than 110 calories. Median = 110 c Ranks: Ranked values: 80 100 100 110 130 190 200
4) The bounced check fees ($) for a sample of 10 banks is Compute the mode. SOLUTION These data have no mode. None of the values is most typical because each value appears once. 5) The percentage change in the Russell 2000 Index of the stock prices of 2,000 small companies was in 2008 and 27.17% in 2009. Compute the geometric mean rate of return per year.

SOLUTION Using Equation (3.4), the geometric mean rate of return per year in the Russell 2000 Index for the two years is The geometric mean rate of return in the Russell 2000 Index for the two years is -8.24% per year. = 0.9176 - 1 = -0.0824 = 30.841992541>2 - 1 = 310.66212 * 11.2717241>2 - 1 = 311 + (-0.33792) * 11 + (0.27172)41>2 - 1 RG = 311 + R12 * 11 + R2241>n 1
6) Nutritional data about a sample of seven breakfast cereals (stored in ) includes the number of calories per serving (see Example 3.1 on page 98). Compute the Z scores of the calories in breakfast cereals. SOLUTION Table 3.4 on page 108 illustrates the Z scores of the calories for the cereals. The largest Z score is 1.49, for a cereal with 200 calories. The lowest Z score is for a cereal with 80 calories. There are no apparent outliers in these data because none of the Z scores are less than -3.0 or greater than +3.0. 7) A population of 2 liter bottles of cola is known to have a mean fill-weight of 2.06 liters and a standard deviation of 0.02 liters. The population is known to be bell-shaped. Describe the distribution of fill-weights. Is it very likely that a bottle will contain less than 2 liters of cola? SOLUTION Using the empirical rule, you can see that approximately 68% of the bottles will contain between 2.04 and 2.08 liters, approximately 95% will contain between 2.02 and 2.10 liters, and approximately 99.7% will contain between 2.00 and 2.12 liters. Therefore, it is highly unlikely that a bottle will contain less than 2 liters. 8) A standard six-sided die has six faces. Each face of the die contains either one, two, three, four, five, or six dots. If you roll a die, what is the probability that you will get a face with five dots? SOLUTION Each face is equally likely to occur. Because there are six faces, the probability of getting a face with five dots is 1/6. 9) Using the cross-classified data in Table 4.2 on page 149, construct the decision tree. Use the decision tree to find the probability that a household purchased a Blu-ray disc player, given that the household purchased a television with a faster refresh rate. SOLUTION The decision tree for purchased a Blu-ray disc player and a television with a faster refresh rate is displayed in Figure 4.4 on page 156. Using Equation (4.4b) on page 155 and the following definitions, A = purchased a television with a faster refresh rate B = purchased a Blu-ray disc player

P1B|A2 = P1A and B2 P1A2 = 38>300 80>300 = 0.475 10) A restaurant menu has a price-fixed complete dinner that consists of an appetizer, an entree, a beverage, and a dessert. You have a choice of 5 appetizers, 10 entrees, 3 beverages, and 6 desserts. Determine the total number of possible dinners. SOLUTION Using Equation (4.11), the total number of possible dinners is 1521102132162 = 900.

11) If a set of six books is to be placed on a shelf, in how many ways can the six books be arranged? SOLUTION To begin, you must realize that any of the six books could occupy the first position on the shelf. Once the first position is filled, there are five books to choose from in filling the second position. You continue this assignment procedure until all the positions are occupied. The number of ways that you can arrange six books is n! = 6! = 6*5*4*3*2*1 = 720 12) You already found that the area under the normal curve less than 9 seconds is 0.8413. To find the area under the normal curve less than 5 seconds, Using Table E.2, you look up and find 0.1587. Therefore, the probability that the download time will be between 5 and 9 seconds is as displayed in Figure 6.10. 0.8413 - 0.1587 = 0.6826 13) The download time of videos was assumed to be normally distributed with a mean of 7 seconds. Suppose that the download time follows a uniform (instead of a normal) distribution between 4.5 and 9.5 seconds. What is the probability that a download time will take more than 9 seconds.

SOLUTION The download time is uniformly distributed from 4.5 to 9.5 seconds. The area between 9 and 9.5 seconds is equal to 0.5 seconds, and the total area in the distribution is 9.5 4.5 = 5 seconds. Therefore, the probability of a download time between 9 and 9.5 seconds is the portion of the area greater than 9, which is equal to 0.5/5.0 = 0.10. Because 9.5 is the maximum value in this distribution, the probability of a download time above 9 seconds is 0.10. In comparison, if the download time is normally distributed with a mean of 7 seconds and a standard deviation of 2 seconds (see Example 6.1 on page 223), the probability of a download time above 9 seconds is 0.1587. 14) A company wants to select a sample of 32 full-time workers from a population of 800 full-time

employees in order to estimate expenditures from a company-sponsored dental plan. Of the full-time employees, 25% are managers and 75% are nonmanagerial workers. How do you select the stratified sample in order for the sample to represent the correct percentage of managers and nonmanagerial workers? SOLUTION If you assume an 80% response rate, you need to send 40 surveys to get the necessary 32 responses. The frame consists of a listing of the names and e-mail addresses of all full-time employees included in the company personnel files. Because 25% of the full-time employees are managers, you first separate the frame into two strata: a subpopulation listing of all 200 managerial-level personnel and a separate subpopulation listing of all 600 fulltime nonmanagerial workers. Because the first stratum consists of a listing of 200 managers, you assign three-digit code numbers from 001 to 200. Because the second stratum contains a listing of 600 nonmanagerial workers, you assign three-digit code numbers from 001 to 600. To collect a stratified sample proportional to the sizes of the strata, you select 25% of the overall sample from the first stratum and 75% of the overall sample from the second stratum. You take two separate simple random samples, each of which is based on a distinct random starting point from a table of random numbers (Table E.1). In the first sample, you select 10 managers from the listing of 200 in the first stratum, and in the second sample, you select 30 nonmanagerial workers from the listing of 600 in the second stratum.You then combine the results to reflect the composition of the entire company. 15) Test the claim that the true mean diameter of a manufactured bolt is 30mm.

State the appropriate null and alternative hypotheses H0: = 30 H1: 30 (This is a two-tail test)

2. Specify the desired level of significance and the sample size Suppose that = 0.05 and n = 100 are chosen for this test

16) The average cost of a hotel room in New York is said to be $168 per night. To determine if this is true, a random sample of 25 hotels is taken and resulted in an X of $172.50 and an S of $15.40. Test the appropriate hypotheses at = 0.05.

a = 0.05 n = 25, df = 25-1=24 is unknown, so

t STAT = X 172.50 168 = statistic=1.46 S use a t 15.40 n 25

Critical Value: t24,0.025 = 2.0639 17) Population has = 368 and = 15. If you take a sample of size n = 25 you know 368 1.96 * 15 / means = (362.12, 373.88) contains 95% of the sample

When you dont know , you use X to estimate If X = 362.3 the interval is 362.3 1.96 * 15 / 368.18) = (356.42,

Since 356.42 368.18 the interval based on this sample makes a correct statement about .

18) For last 20 years the level Mediterranean Sea has risen 3,5 cm on average. We know that the population variance of the rise is 1 cm-squared. A researcher claims that the population mean of the rise is more than 5 cm. Find out the p-value associated with this claim. 19) Describe the probability sampling methods. 20) In temperature has uniform distribution and It changes between 10 and 50 degrees Celcius. Find out : a) Mean and variance of the temperature b) P( Temp > ) . You have taken a 20 .

21) You have two variables, X and Y. Variable

observation sample from sample y and you know that sample average Find the distribution of 3X+Y.

22) In the bookshelf Andrew have 10 books. 3 of them are related to statistics. If Andrew randomly take 4 books and put them on the table, what is the probability that there will be 2 statistics book on the table? 23) There are 4 billiard balls inside the box with numbers 1, 2, 3 and 4. You need three balls so you start picking the balls one-by-one/ Every time you take the balls out of the box, you put them aside, you do not return them back. What is the probability that you will get 314?