Statistics for Business and Economics Revised

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Statistics for Business and Economics Revised 13th Edition Anderson Solutions Manual

Chapter 1 Data and Statistics

Learning Objectives

• Obtain an appreciation for the breadth of statistical applications in business and economics.

• Understand the meaning of the terms elements, variables, and observations as they are used in

statistics.

• Obtain an understanding of the difference between categorical, quantitative, crossectional and time

series data.

• Learn about the sources of data for statistical analysis, both internal and external, to the firm.

• Be aware of how errors can arise in data.

• Know the meaning of descriptive statistics and statistical inference.

• Be able to distinguish between a population and a sample.

• Understand the role a sample plays in making statistical inferences about the population.

• Know the meaning of the term data mining.

• Be aware of ethical guidelines for statistical practice. 1 / 4

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Chapter 1

Solutions:

• Statistics can be referred to as numerical facts. In a broader sense, statistics is the field of study

dealing with the collection, analysis, presentation and interpretation of data.

• The ten elements are the ten tablet computers

• 5 variables: Cost ($), Operating System, Display Size (inches), Battery Life (hours), CPU

Manufacturer

c. Categorical variables: Operating System and CPU Manufacturer

Quantitative variables: Cost ($), Display Size (inches), and Battery Life (hours)

d.Variable Measurement Scale

Cost ($) Ratio Operating System Nominal Display Size (inches) Ratio Battery Life (hours) Ratio CPU Manufacturer Nominal

• Average cost = 5829/10 = $582.90

• Average cost with a Windows operating system = 3616/5 = $723.20

Average cost with an Android operating system = 1714/4 = $428.5 The average cost with a Windows operating system is much higher.

• 2 of 10 or 20% use a CPU manufactured by TI OMAP

• 4 of 10 or 40% use an Android operating system

• There are eight elements in this data set; each element corresponds to one of the eight models of

cordless telephones

b. Categorical variables: Voice Quality and Handset on Base

Quantitative variables: Price, Overall Score, and Talk Time

• Price – ratio measurement

Overall Score – interval measurement Voice Quality – ordinal measurement Handset on Base – nominal measurement Talk Time – ratio measurement

• Average Price = 545/8 = $68.13

• Average Talk Time = 71/8 = 8.875 hours

c. Percentage rated Excellent: 2 of 8 2/8 = .25, or 25%

• Percentage with Handset on Base: 4 of 8 4/8 = .50, or 50% 2 / 4

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Data and Statistics

• Categorical

• Quantitative

• Categorical

• Quantitative

• Quantitative

• Each question has a yes or no categorical response.

• Yes and no are the labels for the customer responses. A nominal scale is being used.

• 762

• Categorical

• Percentages

• .67(762) = 510.54

510 or 511 respondents said they want the amendment to pass.

• Categorical

• 30 of 71; 42.3%

• a. Categorical

• Percentages

• 44 of 1080 respondents or approximately 4% strongly agree with allowing drivers of motor vehicles

to talk on a hand-held cell phone while driving.

• 165 of the 1080 respondents or 15% of said they somewhat disagree and 741 or 69% said they

strongly disagree. Thus, there does not appear to be general support for allowing drivers of motor vehicles to talk on a hand-held cell phone while driving.

• a. Categorical

• 295 + 672 + 51 = 1018

• (295/1018)100 = 29%

• Support against; (672/1018)100 = 66% said they would vote against the law.

• a. The population is all visitors coming to the state of Hawaii.

• Since airline flights carry the vast majority of visitors to the state, the use of questionnaires for

passengers during incoming flights is a good way to reach this population. The questionnaire actually appears on the back of a mandatory plants and animals declaration form that passengers must complete during the incoming flight. A large percentage of passengers complete the visitor information questionnaire. 3 / 4

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Chapter 1

• Questions 1 and 4 provide quantitative data indicating the number of visits and the number of days

in Hawaii. Questions 2 and 3 provide categorical data indicating the categories of reason for the trip and where the visitor plans to stay.

• a. Google revenue in billions of dollars

• Quantitative

• Time series

• Google revenue is increasing over time.

14. a. The graph of the time series follows:

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150

100

Hertz Dollar Avis 50

2006 2007 2008 2009 2010 2011

Year

• In 2007 and 2008 Hertz was the clear market share leader. In 2009 and 2010 Hertz and Avis have

approximately the same market share. The market share for Dollar appears to be declining.

• The bar chart for 2010 is shown below.

Cars in Service (1000s)

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