WORK BOOK

BUSINESS STATISTICS

Chapter - 1

Descriptive Statistics, Correlation and Regression

Name :

Section:

Reg No:

1. The cost of consumer purchases such as single-family housing, gasoline, Internet services, tax
preparation,

and hospitalization were provided in The Wall-Street Journal (January 2, 2007). Sample data typical of
the

cost of tax-return preparation by services such as H&R Block are shown below.

120 230 110 115 160 130 150 105 195 155 105 360

120 120 140 100 115 180 235 255

a. Compute the mean, median, and mode.

b. Compute the first and third quartiles.

c. Compute and interpret the 90th percentile.

2. In automobile mileage and gasoline-consumption testing, 13 automobiles were road tested for 300
miles in

both city and highway driving conditions. The following data were recorded for miles-per-gallon

performance.

City: 16.2 16.7 15.9 14.4 13.2 15.3 16.8 16.0 16.1 15.3 15.2 15.3 16.2

Highway: 19.4 20.6 18.3 18.6 19.2 17.4 17.2 18.6 19.0 21.1 19.4 18.5 18.7

Use the mean, median, and mode to make a statement about the difference in performance for city and

highway driving.

3. For the following data on number of days required to fill orders for Dawson Supply, Inc., and J.C. Clark

Distributors find the range and standard deviation. Also find who is more consistent and reliable delivery

times.

Dawson Supply Days for Delivery: 11 10 9 10 11 11 10 11 10 10

Clark Distributors Days for Delivery: 8 10 13 7 10 11 10 7 15 12

4. Scores turned in by an amateur golfer at the Bonita Fairways Golf Course in Bonita Springs, Florida,
during

2005 and 2006 are as follows:

2005 Season: 74 78 79 77 75 73 75 77

2006 Season: 71 70 75 77 85 80 71 79

a. Use the mean and standard deviation to evaluate the golfer’s performance over the two-year period.

b. What is the primary difference in performance between 2005 and 2006? What improvement, if any,
can be seen in

the 2006 scores?

5. The following frequency distribution shows the price per share of the 30 companies in the

Dow Jones Industrial Average (Barron’s, February 2, 2009).

a. Compute the mean price per share and the standard deviation

of the price per share for the Dow Jones Industrial Average

companies.

b. On January 16, 2006, the mean price per share was $45.83

and the standard deviation was $18.14. Comment on the

changes in the price per share over the three-year period.

6. Automobiles traveling on a road with a posted speed limit of 55 miles per hour are checked for speed

by a state police radar system. Following is a frequency distribution of speeds.

a. What is the mean speed of the automobiles

traveling on this road?

b. Compute the variance and the standard

deviation.

7. A department of transportation’s study on driving speed and miles per gallon for midsize automobiles
resulted

in the following data:

Speed (Miles per Hour): 30 50 40 55 30 25 60 25 50 55

Miles per Gallon: 28 25 25 23 30 32 21 35 26 25

a) Develop a scatter diagram and comment.

b) Compute and interpret the sample covariance and sample correlation coefficient.
8. To investigate the relationship between the car’s mileage and the sales price, data were collected on
the

mileage and the sale price for 10 private sales of model year 2000 Honda Accords.

a. Develop a scatter diagram with miles as the independent variable and

discuss about the relationship between the two variables?

b. Use the least squares method to develop the estimated regression

equation.

c. Predict the sales price for a 2000 Honda Accord with 100,000 miles.

9. The following data were collected from a sample of 10 Armand’s Pizza Parlor restaurants located near
college

campuses. For the ith observation or restaurant in the sample, xi is the size of the student population (in

thousands) and yi is the quarterly sales (in thousands of dollars).

a) Develop a scatter diagram for this data and

comment.

b) Use the least squares method to develop the

estimated regression equation.

c) Predict the quarterly sales for a restaurant

to be located near a campus with 16,000

students

10. A sales manager collected the following data on annual sales and years of experience.

a. Develop a scatter diagram for these data

with years of experience as the independent

variable.

b. Develop an estimated regression equation

that can be used to predict annual sales given

the years of experience.

c. Use the estimated regression equation to

predict annual sales for a salesperson with

9 years of experience.