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1.2
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1.3
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1.4
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1.5
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1.6
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1.7 The Ritz-Carlton Hotel used a customer opinion questionnaire to obtain performance data about its dining and entertainment services (The Ritz-Carlton Hotel, Naples, Florida, February 2006). Customers were asked to rate six factors: Welcome, Service, Food, Menu Appeal, Atmosphere, and Overall Experience. Data were recorded for each factor with 1 for Fair, 2 for Average, 3 for Good, and 4 for Excellent.
a. The customer responses provided data for six variables. Are the variables categorical or quantitative?
b. What measurement scale is used?
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1.8
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1.9 The Commerce Department reported receiving the following applications for the Malcolm Baldrige National Quality Award: 23 from large manufacturing firms, 18 from large service firms, and 30 from small businesses.
a. Is type of business a categorical or quantitative variable?
b. What percentage of the applications came from small businesses?
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1.10 The Wall Street Journal subscriber survey (October 13, 2003) asked 46 questions about subscriber characteristics and interests. State whether each of the following questions provided categorical or quantitative data and indicate the measurement scale appropriate for each.
a. What is your age?
b. Are you male or female?
c. When did you first start reading the WSJ? High school, college, early career, midcareer, late career, or retirement?
d. How long have you been in your present job or position?
e. What type of vehicle are you considering for your next purchase? Nine response categories include sedan, sports car, SUV, minivan, and so on.
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1.11 State whether each of the following variables is categorical or quantitative and indicate its measurement scale.
a. Annual sales
b. Soft drink size (small, medium, large)
c. Employee classification (GS1 through GS18)
d. Earnings per share
e. Method of payment (cash, check, credit card)
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1.12 The Hawaii Visitors Bureau collects data on visitors to Hawaii. The following questions were among 16 asked in a questionnaire handed out to passengers during incoming airline flights in June 2003.
• This trip to Hawaii is my: 1st, 2nd, 3rd, 4th, etc.• The primary reason for this trip is: (10 categories including vacation, convention, honeymoon)• Where I plan to stay: (11 categories including hotel, apartment, relatives, camping)• Total days in Hawaii
a. What is the population being studied?
b. Is the use of a questionnaire a good way to reach the population of passengers on incoming airline flights?
c. Comment on each of the four questions in terms of whether it will provide categorical or quantitative data.
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1.13
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1.14 CSM Worldwide forecasts global production for all automobile manufacturers. The following CSM data show the forecast of global auto production for General Motors, Ford, DaimlerChrysler, and Toyota for the years 2004 to 2007 (USA Today, December 21, 2005). Data are in millions of vehicles....
a. Construct a time series graph for the years 2004 to 2007 showing the number of vehicles manufactured by each automotive company. Show the time series for all four manufacturers on the same graph.
b. General Motors has been the undisputed production leader of automobiles since 1931. What does the time series graph show about who is the world’s biggest car company? Discuss.
c. Construct a bar graph showing vehicles produced by automobile manufacturer using the 2007 data. Is this graph based on cross-sectional or time series data?
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1.15 The Food and Drug Administration (FDA) reported the number of new drugs approved over an eight-year period (The Wall Street Journal, January 12, 2004). Figure 1.12 provides a bar chart summarizing the number of new drugs approved each year.
a. Are the data categorical or quantitative?FIGURE 1.12 NUMBER OF NEW DRUGS APPROVED BY THE FOOD AND DRUGADMINISTRATION...
b. Are the data time series or cross-sectional?
c. How many new drugs were approved in 2003?
d. In what year were the fewest new drugs approved? How many?
e. Comment on the trend in the number of new drugs approved by the FDA over the eight-year period.
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1.16
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1.17 A manager of a large corporation recommends a $10,000 raise be given to keep a valued subordinate from moving to another company. What internal and external sources of data might be used to decide whether such a salary increase is appropriate?
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1.18 A survey of 430 business travelers found 155 business travelers used a travel agent to make the travel arrangements (USA Today, November 20, 2003).
a. Develop a descriptive statistic that can be used to estimate the percentage of all business travelers who use a travel agent to make travel arrangements.
b. The survey reported that the most frequent way business travelers make travel arrangements is by using an online travel site. If 44% of business travelers surveyed made their arrangements this way, how many of the 430 business travelers used an online travel site?
c. Are the data on how travel arrangements are made categorical or quantitative?
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1.19 A BusinessWeek North American subscriber study collected data from a sample of 2861 subscribers. Fifty-nine percent of the respondents indicated an annual income of $75,000 or more, and 50% reported having an American Express credit card.
a. What is the population of interest in this study?
b. Is annual income a categorical or quantitative variable?
c. Is ownership of an American Express card a categorical or quantitative variable?
d. Does this study involve cross-sectional or time series data?
e. Describe any statistical inferences BusinessWeek might make on the basis of the survey.
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1.20 A survey of 131 investment managers in Barron’s Big Money poll revealed the following:
• 43% of managers classified themselves as bullish or very bullish on the stock market.• The average expected return over the next 12 months for equities was 11.2%.• 21% selected health care as the sector most likely to lead the market in the next 12 months.• When asked to estimate how long it would take for technology and telecom stocks to resume sustainable growth, the managers’ average response was 2.5 years.
a. Cite two descriptive statistics.b. Make an inference about the population of all investment managers concerning the average return expected on equities over the next 12 months.c. Make an inference about the length of time it will take for technology and telecom stocks to resume sustainable growth.
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1.21 A seven-year medical research study reported that women whose mothers took the drug 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 involved the comparison of 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 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?
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1.22
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1.23 Nielsen Media Research conducts weekly surveys of television viewing throughout the United States, publishing both rating and market share data. The Nielsen rating is the percentage of households with televisions watching a program, while the Nielsen share is the percentage of households watching a program among those households with televisions in use. For example, Nielsen Media Research results for the 2003 Baseball World Series between the New York Yankees and the Florida Marlins showed a rating of 12.8% and a share of 22% (Associated Press, October 27, 2003). Thus, 12.8% of households with televisions were watching the World Series and 22% of households with televisions in use were watching the World Series. Based on the rating and share data for major television programs, Nielsen publishes a weekly ranking of television programs as well as a weekly ranking of the four major networks: ABC, CBS, NBC, and Fox.
a. What is Nielsen Media Research attempting to measure?
b. What is the population?
c. Why would a sample be used in this situation?
d. What kinds of decisions or actions are based on the Nielsen rankings?
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1.24 A sample of midterm grades for five students showed the following results: 72, 65, 82, 90, 76. Which of the following statements are correct, and which should be challenged as being too generalized?
a. The average midterm grade for the sample of five students is 77.
b. The average midterm grade for all students who took the exam is 77.
c. An estimate of the average midterm grade for all students who took the exam is 77.
d. More than half of the students who take this exam will score between 70 and 85.
e. If five other students are included in the sample, their grades will be between 65 and 90.
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1.25 Table 1.8 shows a data set containing information for 25 of the shadow stocks tracked by the American Association of Individual Investors (http://www.aaii.com, February 2002). Shadow stocks are common stocks of smaller companies that are not closely followed by Wall Street analysts. The data set is also on the CD accompanying the text in the file named Shadow02.
a. How many variables are in the data set?TABLE 1.8 DATA SET FOR 25 SHADOW STOCKS...
b. Which of the variables are categorical and which are quantitative?
c. For the Exchange variable, show the frequency and the percent frequency for AMEX, NYSE, and OTC. Construct a bar graph similar to Figure 1.5 for the Exchange variable.
d. Show the frequency distribution for the Gross Profit Margin using the five intervals: 0-14.9, 15-29.9, 30-44.9, 45-59.9, and 60-74.9. Construct a histogram similar to Figure 1.6.
e. What is the average price/earnings ratio?
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