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Appendix D: Self-Test Solutions and Answers To Even-Numbered Exercises
Appendix D: Self-Test Solutions and Answers To Even-Numbered Exercises
to Even-Numbered Exercises
Chapter 1 14. a. Graph with a time series line for each manufacturer
b. Toyota surpasses General Motors in 2006 to become
2. a. 10 the leading auto manufacturer
b. 5 c. A bar chart would show cross-sectional data for 2007;
c. Categorical variables: Size and Fuel bar heights would be GM 8.8, Ford 7.9, DC 4.6, and
Quantitiative variables: Cylinders, City MPG, and Toyota 9.6
Highway MPG
18. a. 36%
d.
b. 189
Variable Measurement Scale c. Categorical
Size Ordinal 20. a. 43% of managers were bullish or very bullish, and 21%
Cylinders Ratio of managers expected health care to be the leading
City MPG Ratio industry over the next 12 months
Highway MPG Ratio b. The average 12-month return estimate is 11.2% for the
Fuel Nominal population of investment managers
3. a. Average for city driving 5 182/10 5 18.2 mpg c. The sample average of 2.5 years is an estimate of how
b. Average for highway driving 5 261/10 5 26.1 mpg long the population of investment managers think it
On average, the miles per gallon for highway driving will take to resume sustainable growth
is 7.9 mpg greater than for city driving 22. a. The population consists of all customers of the chain
c. 3 of 10 or 30% have four-cyclinder engines stores in Charlotte, North Carolina
d. 6 of 10 or 60% use regular fuel b. Some of the ways the grocery store chain could use to
4. a. 7 collect the data are
b. 5 • Customers entering or leaving the store could be
c. Categorical variables: State, Campus Setting, and surveyed
NCAA Division • A survey could be mailed to customers who have a
d. Quantitiative variables: Endowment and Applicants shopper’s club card
Admitted • Customers could be given a printed survey when
6. a. Quantitative they check out
b. Categorical • Customers could be given a coupon that asks them
c. Categorical to complete a brief online survey; if they do, they will
d. Quantitative receive a 5% discount on their next shopping trip
e. Categorical 24. a. Correct
8. a. 1015 b. Incorrect
b. Categorical c. Correct
c. Percentages d. Incorrect
d. .10(1015) 5 101.5; 101 or 102 respondents e. Incorrect
3. a. 360° 3 58/120 5 174° Management should be pleased with these results: 64%
b. 360° 3 42/120 5 126° of the ratings are very good to outstanding, and 84% of
c. 48.3% the ratings are good or better; comparing these ratings to
previous results will show whether the restaurant is
making improvements in its customers’ ratings of food
Yes No 16.7%
Opinion
quality
8. a.
No
Relative
Position Frequency Frequency
35% P 17 .309
H 4 .073
d. 1 5 .091
60 2 4 .073
3 2 .036
S 5 .091
40 L 6 .109
C 5 .091
R 7 .127
20
Totals 55 1.000
Yes No No Opinion
b. Pitcher
c. 3rd base
4. a. Categorical d. Right field
b. e. Infielders 16 to outfielders 18
Percent
TV Show Frequency Frequency 10. a/b.
Law & Order 10 20% Percent
CSL 18 36% Rating Frequency Frequency
Without a Trace 9 18% Excellent 20 2
Desp Housewives 13 26% Good 101 10
Total: 50 100% Fair 528 52
Bad 244 24
Terrible 122 12
d. CSI had the largest viewing audience; Desperate House- Total 1015 100
wives was in second place
6. a. c.
Percent 60
Network Frequency Frequency
ABC 15 30 50
Percent Frequency
CBS 17 34
40
FOX 1 2
NBC 17 34 30
20
b. CBS and NBC tied for first; ABC is close with 15
10
7. 0
Terrible Bad Fair Good Excellent
Relative
Rating Frequency Frequency Rating
Outstanding 19 .38
Very good 13 .26 d. 36% a bad or a terrible job
Good 10 .20 12% a good or excellent job
Average 6 .12 e. 50% a bad or a terrible job
Poor 2 .04 4% a good or excellent job
More pessimism in Spain
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1009
12.
Cumulative Salary Percent Frequency
Cumulative Relative 170–179 35
Class Frequency Frequency
180–189 25
#19 10 .20 190–199 5
#29 24 .48 200–209 10
#39 41 .82 210–219 5
#49 48 .96
#59 50 1.00 Total 100
c.
14. b/c.
Cumulative
Percent Percent
Class Frequency Frequency Salary Frequency
6.0 –7.9 4 20 Less than or equal to 159 5
8.0 –9.9 2 10 Less than or equal to 169 20
10.0 –11.9 8 40 Less than or equal to 179 55
12.0 –13.9 3 15 Less than or equal to 189 80
14.0 –15.9 3 15 Less than or equal to 199 85
Totals 20 100 Less than or equal to 209 95
Less than or equal to 219 100
Total 100
15. a/ b.
Waiting Relative
Time Frequency Frequency e. There is skewness to the right
f. 15%
0–4 4 .20
5–9 8 .40 18. a. Lowest $180; highest $2050
10–14 5 .25 b.
15–19 2 .10
20–24 1 .05 Percent
Spending Frequency Frequency
Totals 20 1.00
$0–249 3 12
250–499 6 24
c/d. 500 –749 5 20
Cumulative 750–999 5 20
Waiting Cumulative Relative 1000–1249 3 12
Time Frequency Frequency 1250–1499 1 4
1500–1749 0 0
#4 4 .20 1750–1999 1 4
#9 12 .60 2000–2249 1 4
#14 17 .85
Total 25 100
#19 19 .95
#24 20 1.00
c. The distribution shows a positive skewness
d. Majority (64%) of consumers spend between $250 and
e. 12/20 5 .60 $1000; the middle value is about $750; and two high
16. a. spenders are above $1750
Salary Frequency 20. a.
150–159 1 Off-Course Percent
160–169 3 Income ($1000s) Frequency Frequency
170–179 7 0–4,999 30 60
180–189 5 5,000–9,999 9 18
190–199 1 10,000–14,999 4 8
200–209 2 15,000–19,999 0 0
210–219 1
20,000–24,999 3 6
Total 20 25,000–29,999 2 4
30,000–34,999 0 0
b. 35,000–39,999 0 0
40,000–44,999 1 2
Salary Percent Frequency 45,000–49,999 0 0
150–159 5 Over 50,000 1 2
160–169 15 Total 50 100
1010 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
30. a. c.
56 Fund Type Frequency
DE 27
40 FI 10
IE 8
24
Total 45
8
y
1.0–2.9 0 6 72 46 4 128
Household Income ($1000s) 3.0–4.9 3 56 86 0 0 145
Under 25.0– 50.0– 75.0– 100 or 5.0–6.9 23 14 1 0 0 38
Education Level 25 49.9 74.9 99.9 more Total
Total 26 76 159 46 4 311
Not H.S. Graduate 32.10 18.71 9.13 5.26 2.20 13.51
H.S. Graduate 37.52 37.05 33.04 25.73 16.00 29.97
Some College 21.42 28.44 30.74 31.71 24.43 27.21
b. Higher fuel efficiencies are associated with smaller
Bachelor’s Degree 6.75 11.33 18.72 25.19 32.26 18.70 displacement engines
Beyond Bach. Deg. 2.21 4.48 8.37 12.11 25.11 10.61 Lower fuel efficiencies are associated with larger dis-
placement engines
Total 100.00 100.00 100.00 100.00 100.00 100.00
d. Lower fuel efficiencies are associated with larger dis-
placement engines
13.51% of the heads of households did not graduate e. Scatter diagram
from high school
40. a.
b. 25.11%, 53.54%
c. Positive relationship between income and education Division Frequency Percent
level Buick 10 5
Cadillac 10 5
Chevrolet 122 61
34. a. GMC 24 12
Hummer 2 1
5-Year Average Return
Pontiac 18 9
Saab 2 1
0– 10– 20– 30– 40– 50– Saturn 12 6
Fund Type 9.99 19.99 29.99 39.99 49.99 59.99 Total
Total 200 100
DE 1 25 1 0 0 0 27
FI 9 1 0 0 0 0 10
IE 0 2 3 2 0 1 8
b. Chevrolet, 61%
c. Hummer and Saab, both only 1%
Total 10 28 4 2 0 1 45
Maintain Chevrolet and GMC
42. a.
b. SAT Score Frequency
5-Year Average Return Frequency 800–999 1
0–9.99 10 1000–1199 3
10–19.99 28 1200–1399 6
20–29.99 4 1400–1599 10
30–39.99 2 1600–1799 7
40–49.99 0 1800–1999 2
50–59.99 1 2000–2199 1
Total 45 Total 30
1012 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
b. Nearly symmetrical d.
c. 33% of the scores fall between 1400 and 1599 High Low
A score below 800 or above 2200 is unusual Temp Frequency Temp Frequency
The average is near or slightly above 1500 10–19 0 10–19 1
20–29 0 20–29 5
44. a. 30–39 1 30–39 5
Percent 40–49 4 40–49 5
Population Frequency Frequency 50–59 3 50–59 3
0.0–2.4 17 34 60–69 9 60–69 1
2.5–4.9 12 24 70–79 2 70–79 0
5.0–7.4 9 18 80–89 1 80–89 0
7.5–9.9 4 8 Total 20 Total 20
10.0–12.4 3 6
12.5–14.9 1 2
15.0–17.4 1 2 48. a.
17.5–19.9 1 2
20.0–22.4 0 0 Level of Support Percent Frequency
22.5–24.9 1 2 Strongly favor 30.10
25.0–27.4 0 0 Favor more than oppose 34.83
27.5–29.9 0 0 Oppose more than favor 21.13
30.0–32.4 0 0 Strongly oppose 13.94
32.5–34.9 0 0
Total 100.00
35.0–37.4 1 2
Total 50 100
Overall favor higher tax 5 30.10% 1 34.83%
5 64.93%
c. High positive skewness b. 20.2, 19.5, 20.6, 20.7, 19.0
d. 17 (34%) with population less than 2.5 million Roughly 20% per country
29 (58%) with population less than 5 million c. The crosstabulation with column percentages:
8 (16%) with population greater than 10 million
Largest 35.9 million (California)
Smallest .5 million (Wyoming) Country
Great United
46. a. High Temperatures Support Britain Italy Spain Germany States
1 2
0–8000 23 4 27 130 1 140
8000–16,000 4 4 2 2 12 Median 5 5 135
16,000–24,000 2 1 1 4
2
24,000–32,000 1 2 1 4 Mode 5 120 (occur 3 times)
32,000– 40,000 2 1 3
11002 20 5 5; use 5th and 6th positions
25
Total 27 13 6 4 50 b. i5
Q 51 2 5 115
115 1 115
1
b. Crosstabulation of row percentages 2
i51
100 2
75
20 5 15; use 15th and 16th positions
Profit ($1000s)
Q 51 2 5 187.5
Market Value 0– 300 – 600– 900 – 180 1 195
($1000s) 300 600 900 1200 Total 3
2
c. i 5 1
100 2
0–8000 85.19 14.81 0.00 0.00 100 90
8000–16,000 33.33 33.33 16.67 16.67 100 20 5 18; use 18th and 19th positions
16,000–24,000 0.00 50.00 25.00 25.00 100
90th percentile 5 1 2 5 245
235 1 255
24,000–32,000 0.00 25.00 50.00 25.00 100
32,000– 40,000 0.00 66.67 33.33 0.00 100 2
90% of the tax returns cost $245 or less
c. A positive relationship is indicated between profit and 10. a. .4%, 3.5%
market value; as profit goes up, market value goes up b. 2.3%, 2.5%, 2.7%
c. 2.0%, 2.8%
54. b. A positive relationship is demonstrated between mar- d. optimistic
ket value and stockholders’ equity
12. Disney: 3321, 255.5, 253, 169, 325
Pixar: 3231, 538.5, 505, 363, 631
Pixar films generate approximately twice as much box
Chapter 3 office revenue per film
2. 16, 16.5 14. 16, 4
3. Arrange data in order: 15, 20, 25, 25, 27, 28, 30, 34 15. Range 5 34 2 15 5 19
20 Arrange data in order: 15, 20, 25, 25, 27, 28, 30, 34
i5 (8) 5 1.6; round up to position 2
100 25 20 1 25
20th percentile 5 20 i5 (8) 5 2; Q1 5 5 22.5
100 2
1014 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
75 28 1 30 38 2 30 1
i5 (8) 5 6; Q3 5 5 29 c. z 5 5 1.6; 1 2 5 .61
100 2 5 (1.6)2
IQR 5 Q3 2 Q1 5 29 2 22.5 5 6.5 42 2 30 1
d. z 5 5 2.4; 1 2 5 .83
o xi 204 5 (2.4)2
x̄ 5 5 5 25.5
n 8 48 2 30 1
e. z 5 5 3.6; 1 2 5 .92
5 (3.6)2
xi (xi 2 x̄) (xi 2 x̄)2 28. a. 95%
27 1.5 2.25 b. Almost all
25 2.5 .25 c. 68%
20 25.5 30.25
15 210.5 110.25 29. a. z 5 2 standard deviations
30 4.5 20.25 1 1 3
34 8.5 72.25 1 2 2 5 1 2 2 5 ; at least 75%
z 2 4
28 2.5 6.25
25 2.5 .25 b. z 5 2.5 standard deviations
242.00 1 1
12 2512 5 .84; at least 84%
z 2.52
o(xi 2 x̄)2 242
s2 5 5 5 34.57 c. z 5 2 standard deviations
n21 821
Empirical rule: 95%
s 5 Ï34.57 5 5.88
30. a. 68%
b. 81.5%
c. 2.5%
16. a. Range 5 190 2 168 5 22
o xi 1068 32. a. 2.67
b. x̄ 5 5 5 178 b. 1.50
n 6
o(xi 2 x̄)2 c. Neither an outlier
s2 5 d. Yes; z 5 8.25
n21
42 1 (210)2 1 62 1 122 1 (28)2 1 (24)2 34. a. 76.5, 7
5 b. 16%, 2.5%
621
c. 12.2, 7.89; no
376
5 5 75.2 36. 15, 22.5, 26, 29, 34
5
38. Arrange data in order: 5, 6, 8, 10, 10, 12, 15, 16, 18
c. s 5 Ï75.2 5 8.67
25
s 8.67 i5 (9) 5 2.25; round up to position 3
d. (100) 5 (100%) 5 4.87% 100
x̄ 178
Q1 5 8
18. a. 38, 97, 9.85 Median (5th position) 5 10
b. Eastern shows more variation 75
i5 (9) 5 6.75; round up to position 7
20. Dawson: range 5 2, s 5 .67 100
Clark: range 5 8, s 5 2.58 Q3 5 15
5-number summary: 5, 8, 10, 15, 18
22. a. 1285, 433
Freshmen spend more
b. 1720, 352
c. 404, 131.5 5 10 15 20
d. 367.04, 96.96
e. Freshmen have more variability 40. a. Men’s 1st place 43.73 minutes faster
b. Medians: 109.64, 131.67
24. Quarter-milers: s 5 .0564, Coef. of Var. 5 5.8% Men’s median time 22.03 minutes faster
Milers: s 5 .1295, Coef. of Var. 5 2.9% c. 65.30, 87.18, 109.64, 128.40, 148.70
26. .20, 1.50, 0, 2.50, 22.20 109.03, 122.08, 131.67, 147.18, 189.28
d. Men’s Limits: 25.35 to 190.23; no outliers
27. Chebyshev’s theorem: at least (1 2 1/z2) Women’s Limits: 84.43 to 184.83; 2 outliers
40 2 30 1 e. Women runners show less variation
a. z 5 5 2; 1 2 5 .75
5 (2)2 41. a. Arrange data in order low to high
45 2 30 1 25
b. z 5 5 3; 1 2 5 .89 i5 (21) 5 5.25; round up to 6th position
5 (3)2 100
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1015
52. b. .2022 4. x 5 0, 1, 2, . . . , 9
c. .4618
d. .4005 6. a. 0, 1, 2, . . . , 20; discrete
54. a. .49 b. 0, 1, 2, . . . ; discrete
b. .44 c. 0, 1, 2, . . . , 50; discrete
c. .54 d. 0 # x # 8; continuous
d. No e. x . 0; continuous
e. Yes
7. a. f (x) $ 0 for all values of x
56. a. .25 of (x) 5 1; therefore, it is a valid probability
b. .125 distribution
c. .0125 b. Probability x 5 30 is f (30) 5 .25
d. .10 c. Probability x # 25 is f (20) 1 f (25) 5 .20 1 .15 5 .35
e. No d. Probability x . 30 is f (35) 5 .40
58. a.
Young Older 8. a.
Adult Adult Total x f(x)
Blogger .0432 .0368 .08 1 3/20 5 .15
Nonblogger .2208 .6992 .92 2 5/20 5 .25
Total .2640 .7360 1.00 3 8/20 5 .40
4 4/20 5 .20
b. .2640 Total 1.00
c. .0432
d. .1636
b. f(x)
60. a. .40
b. .67 .4
.3
Chapter 5 .2
1. a. Head, Head (H, H)
Head, Tail (H, T ) .1
Tail, Head (T, H)
x
Tail, Tail (T, T ) 1 2 3 4
b. x 5 number of heads on two coin tosses
c.
c. f (x) $ 0 for x 5 1, 2, 3, 4
Outcome Values of x of (x) 5 1
(H, H ) 2
(H, T ) 1 10. a. x 1 2 3 4 5
(T, H ) 1
(T, T ) 0 f (x) .05 .09 .03 .42 .41
b. x 1 2 3 4 5
d. Discrete; 0, 1, and 2
2. a. x 5 time in minutes to assemble product f (x) .04 .10 .12 .46 .28
b. Any positive value: x . 0
c. .83
c. Continuous
d. .28
3. Let Y 5 position is offered e. Senior executives are more satisfied
N 5 position is not offered
a. S 5 {(Y, Y, Y ), (Y, Y, N ), (Y, N, Y ), (Y, N, N ), (N, Y, Y ), 12. a. Yes
(N, Y, N ), (N, N, Y ), (N, N, N )} b. .15
b. Let N 5 number of offers made; N is a discrete random c. .10
variable
c. Experimental (Y, Y, (Y, Y, (Y, N, (Y, N, (N, Y, (N, Y, (N, N, (N, N, 14. a. .05
Outcome Y) N) Y) N) Y) N) Y) N)
b. .70
Value of N 3 2 2 1 2 1 1 0 c. .40
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1019
S
b. F
1121 4 2 1 2 11!2!213!4!2
d. P(no defects) 5 (.97)(.97) 5 .9409 3 10 2 3 3! 7!
P(1 defect) 5 2(.03)(.97) 5 .0582
P(2 defects) 5 (.03)(.03) 5 .0009 46. a. f (1) 5 5
142
10 10!
32. a. .90 4!6!
b. .99 (3)(35)
5 5 .50
c. .999 210
1 21 2
d. Yes 3 10 2 3
34. a. .2262 2 222 (3)(1)
b. f (2) 5 5 5 .067
1 2
b. .8355 10 45
2
36. a. .1897
1 21 2
3 10 2 3
b. .9757
0 220 (1)(21)
c. f (12) 5 .0008; yes c. f (0) 5 5 5 .4667
1 2
d. 5 10 45
2
3xe23
1 21 2
3 10 2 3
38. a. f (x) 5
x! 2 422 (3)(21)
d. f (2) 5 5 5 .30
b. .2241
1 2
10 210
c. .1494 4
d. .8008 e. x 5 4 is greater than r 5 3; thus, f(4) 5 0
x 22
2e 48. a. .5250
39. a. f (x) 5
x! b. .8167
b. µ 5 6 for 3 time periods 50. N 5 60, n 5 10
6xe26 a. r 5 20, x 5 0
c. f (x) 5
1 21 2 1 2
x! 20 40 40!
(1)
22e22 4(.1353) 0 10 10!30!
d. f (2) 5 5 5 .2706 f (0) 5 5
2! 2
1 2
60 60!
6 26
6e 10 10!50!
e. f (6) 5 5 .1606
6!
1 21 2
40! 10!50!
45e24 5
f. f (5) 5 5 .1563 10!30! 60!
5! 40 .39 .38 .37 .36 .35 .34 .33 .32 .31
5 . . . . . . . . .
40. a. .1952 60 59 58 57 56 55 54 53 52 51
b. .1048 5 .0112
c. .0183 b. r 5 20, x 5 1
1 21 2
d. .0907 20 40
1 21 2
1 9 40! 10!50!
7 0e27 f (1) 5 5 20
5 e27 5 .0009
1 2
42. a. f (0) 5 60 9!31! 60!
0!
10
b. probability 5 1 2 [f (0) 1 f (1)]
5 .0725
71e27
f (1) 5 5 7e27 5 .0064 c. 1 2 f(0) 2 f (1) 5 1 2 .0112 2 .0725 5 .9163
1!
d. Same as the probability one will be from Hawaii; .0725
probability 5 1 2 [.0009 1 .0064]5 .9927
c. µ 5 3.5 52. a. .2917
3.5 0e23.5 b. .0083
f (0) 5 5 e23.5 5 .0302 c. .5250, .1750; 1 bank
0!
probability 5 1 2 f (0) 5 1 2 .0302 5 .9698 d. .7083
d. e. .90, .49, .70
probability 5 1 2 [f (0) 1 f (1) 1 f (2) 1 f (3) 1 f (4)] 54. a. x 1 2 3 4 5
5 1 2 [.0009 1 .0064 1 .0223 1 .0521 1 .0912] f (x) .24 .21 .10 .21 .24
5 .8271 b. 3.00, 2.34
c. Bonds: E(x) 5 1.36, Var(x) 5 .23
44. a. µ 5 1.25
Stocks: E(x) 5 4, Var(x) 5 1
b. .2865
c. .3581 56. a. .0596
d. .3554 b. .3585
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1021
c. .1251
d. P(x # 5) 5 1 2 e25/3 5 1 2 .1889 5 .8111
d. 242.84 million
e. P(2 # x # 5) 5 P(x # 5) 2 P(x # 2)
26. a. µ 5 np 5 100(.20) 5 20 5 .8111 2 .4866 5 .3245
σ 2 5 np(1 2 p) 5 100(.20)(.80) 5 16 34. a. .5624
σ 5 Ï16 5 4 b. .1915
b. Yes, because np 5 20 and n(1 2 p) 5 80 c. .2461
c. P(23.5 # x # 24.5) d. .2259
24.5 2 20 35. a. f(x)
z5 5 1.13 P(z # 1.13) 5 .8708
4
23.5 2 20 .09
z5 5 .88 P(z # .88) 5 .8106
4 .08
P(23.5 # x # 24.5) 5 P(.88 # z # 1.13) .07
5 .8708 2 .8106 5 .0602 .06
d. P(17.5 # x # 22.5) .05
22.5 2 20
z5 5 .63 P(z # .63) 5 .7357 .04
4
.03
17.5 2 20
z5 5 2.63 P(z # 2.63) 5 .2643 .02
4
P(17.5 # x # 22.5) 5 P(2.63 # z # .63) .01
5 .7357 2 .2643 5 .4714 x
0 6 12 18 24
e. P(x # 15.5)
15.5 2 20 b. P(x # 12) 5 1 2 e212@12 5 1 2 .3679 5 .6321
z5
4
5 21.13 P(z # 21.13) 5 .1292 c. P(x # 6) 5 1 2 e26 @12 5 1 2 .6065 5 .3935
P(x # 15.5) 5 P(z # 21.13) 5 .1292 d. P(x $ 30) 5 1 2 P(x , 30)
5 1 2 (1 2 e230@12 )
28. a. µ 5 np 5 250(.20) 5 50 5 .0821
b. σ 2 5 np(1 2 p) 5 250(.20)(1 2 20) 5 40 36. a. .3935
σ 5 Ï40 5 6.3246 b. .2386
P(x , 40) 5 P(x # 39.5) c. .1353
x2µ 39.5 2 50 38. a. f (x) 5 5.5e25.5x
z5 5 5 21.66 Area 5 .0485
σ 6.3246 b. .2528
P(x # 39.5) 5 .0485 c. .6002
c. P(55 # x # 60) 5 P(54.5 # x # 60.5) 40. a. $3780 or less
x2µ 54.5 2 50 b. 19.22%
z5 5 5 .71 Area 5 .7611
σ 6.3246 c. $8167.50
x2µ 60.5 2 50
z5 5 5 1.66 Area 5 .9515 42. a. 3229
σ 6.3246
b. .2244
P(54.5 # x # 60.5) 5 .9515 2 .7611 5 .1904
c. $12,383 or more
d. P(x $ 70) 5 P(x $ 69.5)
x2µ 69.5 2 50 44. a. .0228
z5 5 5 3.08 Area 5 .9990
σ 6.3246 b. $50
P(x $ 69.5) 5 1 2 .9990 5 .0010 46. a. 38.3%
30. a. 220 b. 3.59% better, 96.41% worse
b. .0392 c. 38.21%
c. .8962 48. µ 5 19.23 ounces
32. a. .5276 50. a. Lose $240
b. .3935 b. .1788
c. .4724 c. .3557
d. .1341 d. .0594
33. a. P(x # x0 ) 5 1 2 e2x0y3 52. a. ¹⁄₇ minute
b. P(x # 2) 5 1 2 e22/3 5 1 2 .5134 5 .4866 b. 7e27x
c. P(x $ 3) 5 1 2 P(x # 3) 5 1 2 (1 2 e23/3 ) c. .0009
5 e21 5 .3679 d. .2466
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1023
Î
At x̄ 5 210, z 5 5 52
o(xi 2 x̄)2 σx̄ 5
b. s 5
n21 P(z # 2) 5 .9772
2 2 2 2
o(xi 2 x̄ ) 5 (24) 1 (21) 1 1 1 (22) 1 1 1 5 2 2 2 x̄ 2 µ 210
At x̄ 5 190, z 5 5 5 22
5 48 σx̄ 5
s5 Î621
48
5 3.1
P(z , 22) 5 .0228
P(190 # x̄ # 210) 5 .9722 2 .0228 5 .9544
23. a.
s5 Î o(xi 2 x̄)2
n21
5 Î 116
4
5 5.39
51,300 51,800 52,300
x
σ 4000
σx̄ 5 5 5 516.40
Ïn Ï60
14. a. .45
b. .15 52,300 2 51,800
At x̄ 5 52,300, z 5 5 .97
c. .45 516.40
1024 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
Î Î
51,300 2 51,800
At x̄ 5 51,300, z 5 5 21.37 p(1 2 p) .30(.70)
365.15 σp̄ 5 5 5 .0458
n 100
P(x̄ , 51,300) 5 P(z , 21.37) 5 .0853
P(51,300 # x̄ # 52,300) 5 .9147 2 .0853 5 .8294 The normal distribution is appropriate because np 5
100(.30) 5 30 and n(1 2 p) 5 100(.70) 5 70 are
24. a. Normal with E(x̄) 5 17.5 and σx̄ 5 .57 both greater than 5
b. .9198 b. P(.20 # p̄ # .40) 5 ?
c. .6212 .40 2 .30
z5 5 2.18
.0458
26. a. .4246, .5284, .6922, .9586
P(.20 # p̄ # .40) 5 P(22.18 # z # 2.18)
b. Higher probability the sample mean will be close to
5 .9854 2 .0146
population mean
5 .9708
28. a. Normal with E(x̄) 5 95 and σx̄ 5 2.56 c. P(.25 # p̄ # .35) 5 ?
b. .7580 .35 2 .30
c. .8502 z5 5 1.09
.0458
d. Part (c), larger sample size
P(.25 # p̄ # .35) 5 P(21.09 # z # 1.09)
30. a. n/N 5 .01; no 5 .8621 2 .1379
b. 1.29, 1.30; little difference 5 .7242
c. .8764 36. a. Normal with E( p̄) 5 .66 and σp̄ 5 .0273
b. .8584
32. a. E( p̄) 5 .40 c. .9606
σp̄ 5 Î
p(1 2 p)
n
5 Î
(.40)(.60)
200
5 .0346
d.
e.
Yes, standard error is smaller in part (c)
.9616, the probability is larger because the increased
Within 6.03 means .37 # p̄ # .43 sample size reduces the standard error
38. a. Normal with E( p̄) 5 .56 and σp̄ 5 .0248
p̄ 2 p .03
z5 5 5 .87 b. .5820
σp̄ .0346
c. .8926
P(.37 # p̄ # .43) 5 P(2.87 # z # .87) 40. a. Normal with E( p̄) 5 .76 and σp̄ 5 .0214
5 .8078 2 .1922 b. .8384
5 .6156 c. .9452
p̄ 2 p .05 42. 122, 99, 25, 55, 115, 102, 61
b. z 5 5 5 1.44
σp̄ .0346
44. a. Normal with E(x̄) 5 115.50 and σx̄ 5 5.53
P(.35 # p̄ # .45) 5 P(21.44 # z # 1.44) b. .9298
5 .9251 2 .0749 c. z 5 22.80, .0026
5 .8502 46. a. 955
34. a. .6156 b. .50
b. .7814 c. .7062
c. .9488 d. .8230
d. .9942 48. a. 625
e. Higher probability with larger n b. .7888
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1025
1Ï652
50. a. Normal with E( p̄) 5 .28 and σp̄ 5 .0290 5.2
19.5 6 1.998
b. .8324
c. .5098 19.5 6 1.29 or (18.21 to 20.79)
52. a. .8882 16. a. 1.69
b. .0233 b. 47.31 to 50.69
54. a. 48 c. Fewer hours and higher cost for United
b. Normal, E( p̄) 5 .25, σp̄ 5 .0625 18. a. 22 weeks
c. .2119 b. 3.8020
c. 18.20 to 25.80
Chapter 8 d. Larger n next time
2. Use x̄ 6 zα/2(σyÏn ) 20. x̄ 5 22; 21.48 to 22.52
a. 32 6 1.645(6yÏ50) 22. a. $9,269 to $12,541
32 6 1.4; 30.6 to 33.4 b. 1523
b. 32 6 1.96(6yÏ50) c. 4,748,714, $34 million
32 6 1.66; 30.34 to 33.66 Range 36
24. a. Planning value of σ 5 5 59
c. 32 6 2.576(6yÏ50) 4 4
32 6 2.19; 29.81 to 34.19 2 2
z .025 σ (1.96)2(9)2
b. n 5 2 5 5 34.57; use n 5 35
4. 54 E (3)2
5. a. 1.96σ yÏn 5 1.96(5yÏ49 ) 5 1.40 (1.96)2(9)2
c. n 5 5 77.79; use n 5 78
b. 24.80 6 1.40; 23.40 to 26.20 (2)2
6. 8.1 to 8.9 z2α/2 σ 2
25. a. Use n 5
8. a. Population is at least approximately normal E2
b. 3.1 (1.96)2(6.84)2
c. 4.1 n5 5 79.88; use n 5 80
(1.5)2
10. a. $113,638 to $124,672 (1.645)2(6.84)2
b. $112,581 to $125,729 b. n5 5 31.65; use n 5 32
(2)2
c. $110,515 to $127,795
26. a. 18
d. Width increases as confidence level increases
b. 35
12. a. 2.179 c. 97
b. 21.676
28. a. 328
c. 2.457
b. 465
d. 21.708 and 1.708
c. 803
e. 22.014 and 2.014
d. n gets larger; no to 99% confidence
oxi 80
13. a. x̄ 5 5 5 10 30. 81
n 8
Î Î
100
o(xi 2 x̄)2 84 31. a. p̄ 5 5 .25
b. s 5 5 5 3.464 400
Î Î
n21 7
p̄(1 2 p̄) .25(.75)
1 2 1 2
s 3.46 b. 5 5 .0217
c. t.025 5 2.365 5 2.9 n 400
Î
Ïn Ï8
p̄(1 2 p̄)
1 2
s c. p̄ 6 z.025
d. x̄ 6 t.025 n
Ïn
10 6 2.9 (7.1 to 12.9) .25 6 1.96(.0217)
14. a. 21.5 to 23.5 .25 6 .0424; .2076 to .2924
b. 21.3 to 23.7 32. a. .6733 to .7267
c. 20.9 to 24.1 b. .6682 to .7318
d. A larger margin of error and a wider interval
34. 1068
15. x̄ 6 tα/2(syÏn )
1760
90% confidence: df 5 64 and t.05 5 1.669 35. a. p̄ 5 5 .88
2000
1 2
5.2
19.5 6 1.669 b. Margin of error
Ï65
19.5 6 1.08 or (18.42 to 20.58)
95% confidence: df 5 64 and t.025 5 1.998
z.05 5 Î p̄(1 2 p̄)
n
Î
5 1.645
.88(1 2 .88)
2000
5 .0120
1026 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
Î Î
d. 7.83 to 8.97; yes 36. a. z 5 5 5 22.80
p0(1 2 p0) .75(1 2 .75)
x̄ 2 µ0 17 2 18
24. a. t5 5 5 21.54 n 300
syÏn 4.5y Ï48 p-value 5 .0026
b. Degrees of freedom 5 n 2 1 5 47 p-value # .05; reject H0
Area in lower tail is between .05 and .10
.72 2 .75
Î
p-value (two-tail) is between .10 and .20 b. z 5 5 21.20
Exact p-value 5 .1303 .75(1 2 .75)
c. p-value . .05; do not reject H0 300
d. With df 5 47, t.025 5 2.012 p-value 5 .1151
Reject H0 if t # 22.012 or t $ 2.012 p-value . .05; do not reject H0
t 5 21.54; do not reject H0 .70 2 .75
Î
c. z 5 5 22.00
26. a. Between .02 and .05; exact p-value 5 .0397; reject H0 .75(1 2 .75)
b. Between .01 and .02; exact p-value 5 .0125; reject H0 300
c. Between .10 and .20; exact p-value 5 .1285; do not p-value 5 .0228
reject H0 p-value # .05; reject H0
27. a. H0: µ $ 238 .77 2 .75
Î
Ha: µ , 238 d. z 5 5 .80
.75(1 2 .75)
x̄ 2 µ0 231 2 238
b. t 5 5 5 2.88 300
syÏn 80y Ï100 p-value 5 .7881
Degrees of freedom 5 n 2 1 5 99 p-value . .05; do not reject H0
p-value is between .10 and .20
Exact p-value 5 .1905 38. a. H0: p 5 .64
c. p-value . .05; do not reject H0 Ha: p Þ .64
Cannot conclude mean weekly benefit in Virginia is less b. p̄ 5 52/100 5 .52
than the national mean p̄ 2 p0 .52 2 .64
Î Î
z5 5 5 22.50
d. df 5 99, t.05 5 21.66 p0(1 2 p0) .64(1 2 .64)
Reject H0 if t # 21.66
n 100
2.88 . 21.66; do not reject H0
p-value 5 2(.0062) 5 .0124
28. a. H0: µ $ 9 c. p-value # .05; reject H0
Ha: µ , 9 Proportion differs from the reported .64
b. Between .005 and .01 d. Yes, because p̄ 5 .52 indicates that fewer believe the
Exact p-value 5 .0072 supermarket brand is as good as the name brand
c. Reject H0; mean tenure of a CEO is less than 9 years
40. a. .2702
30. a. H0: µ 5 600 b. H0: p # .22
Ha: µ Þ 600 Ha: p . .22
b. Between .20 and .40 p-value < 0; reject H0; there is a significant increase
Exact p-value 5 .2491 after viewing commercials
c. Do not reject H0; cannot conclude there has been a c. Helps evaluate the effectiveness of
change in mean CNN viewing audience commercials
d. A larger sample size
42. a. p̄ 5 .15
32. a. H0: µ 5 10,192
b. .0718 to .2282
Ha: µ Þ 10,192
c. The return rate for the Houston store is different than
b. Between .02 and .05
the national average
Exact p-value 5 .0304
c. Reject H0; mean price at dealership differs from 44. a. H0: p # .51
national mean price Ha: p . .51
1028 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
Chapter 10 s 21 s 22 2
1n 1 n 2
1 2
1. a. x̄1 2 x̄ 2 5 13.6 2 11.6 5 2 b. df 5 2 2 2 2
n 2 1 1n 2 n 2 1 1n 2
1 s 1 1 s 2
b. zα/2 5 z.05 5 1.645 1
x̄1 2 x̄ 2 6 1.645 Î σ 21
n1 1
σ 22
n2
1
5.2 2
1 35 1 40 2
8.5
1 2
2 2
2
(2.2)2
Î (3)2 5 2 2 5 65.7 2 2
34 1 35 2 39 1 40 2
2 6 1.645 1 1 5.2 1 8.5
50 35 1
2 6 .98 (1.02 to 2.98)
c. zα/2 5 z.05 5 1.96 Use df 5 65
2 6 1.96
(2.2)
50
Î 1
(3)
35
2 2 c. df 5 65, area in tail is between .01 and .025;
two-tailed p-value is between .02 and .05
Exact p-value 5 .0329
2 6 1.17 (.83 to 3.17) d. p-value # .05; reject H0
(x̄1 2 x̄ 2 ) 2 D0 (25.2 2 22.8) 2 0
Î Î
2. a. z 5 5 5 2.03 12. a. x̄1 2 x̄ 2 5 22.5 2 18.6 5 3.9 miles
σ 21 σ2 (5.2)2 (6)2 s 21 s2 2
n1
1 2
n2 40
1
50 1n1
1 2
n2 2
b. df 5
b. p-value 5 1.0000 2 .9788 5 .0212 s 21 2 s 22 2
1 2 1 2
1 1
c. p-value # .05; reject H0 1
n1 2 1 n1 n2 2 1 n2
2 2 2
1 50 1 40 2
4. a. x̄1 2 x̄ 2 5 85.36 2 81.40 5 3.96 8.4 7.4
b. z.025 Î σ 21
1
σ 22
5 1.96 Î (4.55) 2
1
(3.97) 2
5 1.88 5 2 2 2 2 5 87.1
49 1 50 2 39 1 40 2
n1 n2 37 44 1 8.4 1 7.4
1
c. 3.96 6 1.88 (2.08 to 5.84)
Use df 5 87, t.025 5 1.988
Î
6. p-value 5 .0351
8.42 7.42
Reject H0; mean price in Atlanta lower than mean price in 3.9 6 1.988 1
Houston 50 40
3.9 6 3.3 (.6 to 7.2)
8. a. Reject H0; customer service has improved for Rite Aid
b. Do not reject H0; the difference is not statistically 14. a. H0: µ1 2 µ 2 $ 0
significant Ha: µ1 2 µ 2 , 0
c. p-value 5 .0336; reject H0; customer service has b. 22.41
improved for Expedia c. Using t table, p-value is between .005 and .01
d. 1.80 Exact p-value 5 .009
e. The increase for J.C. Penney is not statistically signif- d. Reject H0; nursing salaries are lower in Tampa
icant
16. a. H0: µ1 2 µ 2 # 0
9. a. x̄1 2 x̄ 2 5 22.5 2 20.1 5 2.4 Ha: µ1 2 µ 2 . 0
s 21 s2 2
1 2
b. 38
1 2 c. t 5 1.80, df 5 25
n1 n2
b. df 5 Using t table, p-value is between .025 and .05
s 21 2 s 22 2
1 2 1 2
1 1
1 Exact p-value 5 .0420
n1 2 1 n1 n2 2 1 n2
d. Reject H0; conclude higher mean score if college grad
2.52 4.82 2
20 1 1
30 2 18. a. H0: µ1 2 µ 2 $ 120
5 5 45.8 Ha: µ1 2 µ 2 , 120
1 2.52 2 1 4.82 2
19 20 1 2 1
29 30 1 2 b. 22.10
c. df 5 45, t.025 5 2.014 Using t table, p-value is between .01 and .025
Î Î
Exact p-value 5 .0195
s 21 s2 2.52 4.82 c. 32 to 118
t.025 1 2 5 2.014 1 5 2.1
n1 n2 20 30 d. Larger sample size
d. 2.4 6 2.1 (.3 to 4.5)
19. a. 1, 2, 0, 0, 2
(x̄1 2 x̄ 2 ) 2 0 (13.6 2 10.1) 2 0 b. d̄ 5 odiyn 5 5y5 5 1
Î Î Î Î
10. a. t 5 5 5 2.18
s 21 s2 5.22 8.52 o(di 2 d̄ )2 4
1 2 1 c. sd 5 5 51
n1 n2 35 40 n21 521
1030 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
Î
d. t 5 5 5 2.24 5 5 1.70
1y Ï5
sd yÏn
1 2
1 1
.1840(1 2 .1840) 1
df 5 n 2 1 5 4 200 300
Using t table, p-value is between .025 and .05 p-value 5 1.0000 2 .9554 5 .0446
Exact p-value 5 .0443 b. p-value # .05; reject H0
p-value # .05; reject H0 30. p̄1 5 .55, p̄2 5 .48
.07 6 .0691
20. a. 3, 21, 3, 5, 3, 0, 1
b. 2 32. a. H0: pw # pm
c. 2.08 Ha: pw . pm
d. 2 b. p̄w 5 .3699
e. .07 to 3.93 c. p̄m 5 .3400
d. p-value 5 .1093
21. H0: µ d # 0 Do not reject H0; cannot conclude women are more
Ha: µ d . 0 likely to ask directions
d̄ 5 .625
34. a. .64
sd 5 1.30
d̄ 2 µd .625 2 0 b. .45
t5 5 5 1.36 c. .19 6 .0813 (.1087 to .2713)
sd y Ïn 1.30y Ï8
36. a. H0: p1 2 p2 5 0
df 5 n 2 1 5 7
Ha: p1 2 p2 Þ 0
Using t table, p-value is between .10 and .20
b. .13
Exact p-value 5 .1080
c. p-value 5 .0404
p-value . .05; do not reject H0; cannot conclude com-
d. Reject H0; there is a significant difference between
mercial improves mean potential to purchase
the younger and older age groups
22. $.10 to $.32; earnings have increased 38. a. H0: µ 1 2 µ 2 5 0
Ha: µ 1 2 µ 2 Þ 0
24. t 5 1.32
z 5 2.79
Using t table, p-value is greater than .10
p-value 5 .0052
Exact p-value 5 .1142
Reject H0; a significant difference between systems
Do not reject H0; cannot conclude airfares from Dayton
exists
are higher
40. a. H0: µ 1 2 µ 2 # 0
26. a. t 5 21.42 Ha: µ 1 2 µ 2 . 0
Using t table, p-value is between .10 and .20 b. t 5 .60, df 5 57
Exact p-value 5 .1718 Using t table, p-value is greater than .20
Do not reject H0; no difference in mean scores Exact p-value 5 .2754
b. 21.05 Do not reject H0; cannot conclude that funds with loads
c. 1.28; yes have a higher mean rate of return
28. a. p̄1 2 p̄2 5 .48 2 .36 5 .12 42. a. A decline of $2.45
Î
b. 2.45 6 2.15 (.30 to 4.60)
p̄1(1 2 p̄1) p̄ (1 2 p̄2 ) c. 8% decrease
b. p̄1 2 p̄2 6 z.05 1 2
n1 n2 d. $23.93
.12 6 1.645 Î
.48(1 2 .48)
400
1
.36(1 2 .36)
300
44. a. p-value < 0, reject H0
b. .0468 to .1332
.12 6 .0614 (.0586 to .1814) 46. a. .35 and .47
b. .12 6 .1037 (.0163 to .2237)
c. .12 6 1.96 Î .48(1 2 .48)
400
1
.36(1 2 .36)
300
c. Yes, we would expect occupancy rates to be higher
b. With 19 degrees of freedom, χ 2.025 5 32.852 and 17. a. Population 1 is 4-year-old automobiles
χ 2.975 5 8.907 H0: σ 21 # σ 22
19(25) 19(25) Ha: σ 21 . σ 22
# σ2 #
32.852 8.907 s2 170 2
b. F 5 12 5 5 2.89
14.46 # σ 2 # 53.33 s2 100 2
c. 3.8 # σ # 7.3 Degrees of freedom: 25, 24
4. a. .22 to .71 From tables, p-value is less than .01
b. .47 to .84 p-value # .01; reject H0
Conclude that 4-year-old automobiles have a larger
6. a. .2205, 47.95, 6.92 variance in annual repair costs compared to 2-year-old
b. 5.27 to 10.11 automobiles, which is expected because older auto-
8. a. .4748 mobiles are more likely to have more expensive repairs
b. .6891 that lead to greater variance in the annual repair costs
c. .2383 to 1.3687 18. F 5 1.44
.4882 to 1.1699 p-value greater than .20
9. H0: σ 2 # .0004 Do not reject H0; the difference between the variances is
Ha: σ 2 . .0004 not statistically significant
(n 2 1)s 2 (30 2 1)(.0005) 20. F 5 5.29
χ2 5 5 5 36.25 p-value < 0
σ 20 .0004
From table with 29 degrees of freedom, p-value is greater Reject H0; population variances are not equal for seniors
than .10 and managers
p-value . .05; do not reject H0 22. a. F 5 4
The product specification does not appear to be violated p-value less than .01
10. H0: σ 2 # 331.24 Reject H0; greater variability in stopping distance on
Ha: σ 2 . 331.24 wet pavement
χ 2 5 52.07, df 5 35 24. 10.72 to 24.68
p-value between .025 and .05
Reject H0; standard deviation for Vanguard is greater 26. a. χ 2 5 27.44
p-value between .01 and .025
12. a. .8106 Reject H0; variance exceeds maximum requirements
b. χ 2 5 9.49 b. .00012 to .00042
p-value greater than .20
Do not reject H0; cannot conclude the variance for the 28. χ 2 5 31.50
other magazine is different p-value between .05 and .10
Reject H0; conclude that population variance is greater
14. a. F 5 2.4
than 1
p-value between .025 and .05
Reject H0 30. a. n 5 15
b. F.05 5 2.2; reject H0 b. 6.25 to 11.13
15. a. Larger sample variance is s 21 32. F 5 1.39
s2 8.2 Do not reject H0; cannot conclude the variances of grade
F 5 21 5 5 2.05 point averages are different
s2 4
Degrees of freedom: 20, 25 34. F 5 2.08
From table, area in tail is between .025 and .05 p-value between .05 and .10
p-value for two-tailed test is between .05 and .10 Reject H0; conclude the population variances are not equal
p-value . .05; do not reject H0
b. For a two-tailed test:
Fα/2 5 F.025 5 2.30
Reject H0 if F $ 2.30 Chapter 12
2.05 , 2.30; do not reject H0 1. a. Expected frequencies: e1 5 200(.40) 5 80
16. F 5 1.59 e2 5 200(.40) 5 80
p-value less than .05 e3 5 200(.20) 5 40
Reject H0; the Fidelity Fund has greater variance Actual frequencies: f1 5 60, f2 5 120, f3 5 20
1032 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
(60 2 80)2 (120 2 80)2 (20 2 40)2 (20 2 28.5)2 (44 2 39.9)2 (50 2 45.6)2
χ2 5 1 1 χ2 5 1 1
80 80 40 28.5 39.9 45.6
400 1600 400
5 1 1 (30 2 21.5)2 (26 2 30.1)2 (30 2 34.4)2
80 80 40 1 1 1
21.5 30.1 34.4
5 5 1 20 1 10 5 35
Degrees of freedom: k 2 1 5 2 5 7.86
χ 2 5 35 shows p-value is less than .005 Degrees of freedom: (2 2 1)(3 2 1) 5 2
p-value # .01; reject H0; the proportions are not .40, χ 2 5 7.86, p-value between .01 and .025
.40, and .20 Reject H0; column variable and row variable are not
b. Reject H0 if χ 2 $ 9.210 independent
χ 2 5 35; reject H0 10. χ 2 5 19.77, df 5 4
2. χ 2 5 15.33, df 5 3 p-value less than .005
p-value less than .005 Reject H0; column variable and row variable are not
Reject H0; the proportions are not all .25 independent
11. H0: Type of ticket purchased is independent of the type of
3. H0: pABC 5 .29, pCBS 5 .28, pNBC 5 .25, pIND 5 .18
flight
Ha: The proportions are not
pABC 5 .29, pCBS 5 .28, pNBC 5 .25, pIND 5 .18 Ha: Type of ticket purchased is not independent of the type
Expected frequencies: 300(.29) 5 87, 300(.28) 5 84 of flight
300(.25) 5 75, 300(.18) 5 54 Expected frequencies:
e1 5 87, e2 5 84, e3 5 75, e4 5 54 e11 5 35.59 e12 5 15.41
Actual frequencies: f1 5 95, f2 5 70, f3 5 89, f4 5 46 e21 5 150.73 e22 5 65.27
(95 2 87)2 (70 2 84)2 (89 2 75)2 e31 5 455.68 e32 5 197.32
χ2 5 1 1
87 84 75
(46 2 54)2
1 5 6.87 Observed Expected
54
Frequency Frequency
Degrees of freedom: k 2 1 5 3 Ticket Flight ( fi ) (ei ) ( fi 2 ei )2/ei
χ 2 5 6.87, p-value between .05 and .10 First Domestic 29 35.59 1.22
Do not reject H0; cannot conclude that the audience First International 22 15.41 2.82
proportions have changed Business Domestic 95 150.73 20.61
Business International 121 65.27 47.59
4. χ 2 5 29.51, df 5 5 Full-fare Domestic 518 455.68 8.52
p-value is less than .005 Full-fare International 135 197.32 19.68
Reject H0; the percentages differ from those reported by Totals 920 χ 2 5 100.43
the company
Degrees of freedom: (3 2 1)(2 2 1) 5 2
6. a. χ 2 5 12.21, df 5 3
χ 2 5 100.43, p-value is less than .005
p-value is between .005 and .01 Reject H0; type of ticket is not independent of type of
Conclude difference for 2003 flight
b. 21%, 30%, 15%, 34%
Increased use of debit card 12. a. χ 2 5 7.95, df 5 3
c. 51% p-value is between .025 and .05
Reject H0; method of payment is not independent of
8. χ 2 5 16.31, df 5 3 age group
p-value less than .005 b. 18 to 24 use most
Reject H0; ratings differ, with telephone service slightly
better 14. a. χ 2 5 8.47; p-value is between .025 and .05
Reject H0; intent to purchase again is not independent
9. H0: The column variable is independent of the row of the automobile
variable b. Accord 77, Camry 71, Taurus 62, Impala 57
Ha: The column variable is not independent of the row c. Impala and Taurus below, Accord and Camry above;
variable Accord and Camry have greater owner satisfaction,
Expected frequencies: which may help future market share
16. a. 6446
A B C b. χ 2 5 425.4; p-value 5 0
P 28.5 39.9 45.6 Reject H0; attitude toward nuclear power is not
Q 21.5 30.1 34.4 independent of country
c. Italy (58%), Spain (32%)
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1033
21. With n 5 30 we will use six classes with .1667 of the 34. a. 71%, 22%, slower preferred
probability associated with each class b. χ 2 5 2.99, df 5 2
p-value greater than .10
x̄ 5 22.8, s 5 6.27
Do not reject H0; cannot conclude men and women dif-
The z values that create 6 intervals, each with probability fer in preference
.1667 are 2.98, 2.43, 0, .43, .98
36. χ 2 5 6.17, df 5 6
p-value is greater than .10
z Cutoff Value of x Do not reject H0; assumption that county and day of week
2.98 22.8 2 .98(6.27) 5 16.66 are independent cannot be rejected
2.43 22.8 2 .43(6.27) 5 20.11
0 22.8 1 .00(6.27) 5 22.80 38. χ 2 5 7.75, df 5 3
.43 22.8 1 .43(6.27) 5 25.49 p-value is between .05 and .10
.98 22.8 1 .98(6.27) 5 28.94 Do not reject H0; cannot conclude office vacancies differ
by metropolitan area
22.80–25.49 7 5 2
5 6(156 2 144)2 1 6(142 2 144)2 1 6(134 2 144)2
25.49–28.94 3 5 22
28.94 and up 5 5 0 5 1488
SSTR 1488
b. MSTR 5 5 5 744
k21 2
(22)2 (2)2 (0)2 (2)2 (22)2 (0)2
χ2 5 1 1 1 1 1 c. s 1 5 164.4, s 2 5 131.2, s 23 5 110.4
2 2
5 5 5 5 5 5
k
5
16
5
5 3.20 SSE 5 o (n 2 1)s
j51
j
2
j
1034 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
Î
j j
j51
1n 1 n 2
1 1
1 6(66 2 73)2 5 516 b. LSD 5 tα/2 MSE
i j
SSTR 516
MSTR 5
2
k21
s 1 5 34
5
2
2
5 258
s2 5 20 s23 5 32
Î
5 t.025 5.5 15 1 52
1 1
k
5 2.179Ï2.2 5 3.23
SSE 5 o (n 2 1)s
j51
j j
2
5 5(34) 1 5(20) 1 5(32) 5 430
| x̄1 2 x̄ 2 | 5 | 30 2 45 | 5 15 . LSD; significant difference
SSE 430 | x̄1 2 x̄3 | 5 | 30 2 36 | 5 6 . LSD; significant difference
MSE 5 5 5 28.67
n T 2 k 18 2 3 | x̄ 2 2 x̄3 | 5 | 45 2 36 | 5 9 . LSD; significant difference
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1035
o(x̄ . 2 x̄¯)
j j
2
j51 SSTR 5 b j
j
5 3(6.67) 1 3(4.67) 1 3(3.33) 5 44.01
SSE 44.01 5 5[(13.6 2 11.73)2 1 (11.0 2 11.73)2
MSE 5 5 5 4.89 1 (10.6 2 11.73)2] 5 26.53
n T 2 k 12 2 3
MSTR 52 Step 3
F5 5 5 10.63
MSE 4.89 SSBL 5 k o(x̄ . 2 x̄¯)
j
i
2
Î 1
5 t.025 4.89 1
4
1
4 1 2
Treatments 26.53
Blocks 312.32
2
4
13.27 6.60 .0203
78.08
Error 16.08 8 2.01
5 2.262Ï2.45 5 3.54 Total 354.93 14
Since | x̄1 2 x̄3 | 5 | 23 2 21 | 5 2 , 3.54, there does not
appear to be any significant difference between the means From the F table (2 numerator degrees of freedom and
for manufacturer 1 and manufacturer 3 8 denominator), p-value is between .01 and .025
16. x̄1 2 x̄2 6 LSD Actual p-value 5 .0203
23 2 28 6 3.54 Because p-value # α 5 .05, we reject the null hypothe-
25 6 3.54 5 28.54 to 21.46 sis that the means of the three treatments are equal
1036 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
Factor A 588 1 588 2.05 .2022 b. There appears to be a positive linear relationship between
Factor B 2328 2 1164 4.06 .0767 x and y
Interaction 4392 2 2196 7.66 .0223 c. Many different straight lines can be drawn to provide
Error 1720 6 286.67 a linear approximation of the relationship between x
Total 9028 11 and y; in part (d) we will determine the equation of a
straight line that “best” represents the relationship
Factor A: F 5 2.05 according to the least squares criterion
Using F table (1 numerator degree of freedom and 6 d. Summations needed to compute the slope and y-intercept:
denominator), p-value is greater than .10 ox 15 oy 40
x̄ 5 i 5 5 3, ȳ 5 i 5 5 8,
Using Excel or Minitab, the p-value corresponding to n 5 n 5
F 5 2.05 is .2022 o(xi 2 x̄)( yi 2 ȳ) 5 26, o(xi 2 x̄)2 5 10
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1037
120
16. a. SSE 5 230, SST 5 1850, SSR 5 1620
110
b. r 2 5 .876
100 c. rxy 5 2.936
x 18. a. The estimated regression equation and the mean for the
60 62 64 66 68 70
dependent variable:
Height
ŷ 5 1790.5 1 581.1x, ȳ 5 3650
b. There appears to be a positive linear relationship The sum of squares due to error and the total sum of
between x 5 height and y 5 weight squares:
c. Many different straight lines can be drawn to provide SSE 5 o( yi 2 ŷi )2 5 85,135.14
a linear approximation of the relationship between SST 5 o( yi 2 ȳ)2 5 335,000
height and weight; in part (d) we will determine the
Thus, SSR 5 SST 2 SSE
equation of a straight line that “best” represents the
5 335,000 2 85,135.14 5 249,864.86
relationship according to the least squares criterion
d. Summations needed to compute the slope and y-intercept: SSR 249,864.86
b. r 2 5 5 5 .746
ox 325 oy 585 SST 335,000
x̄ 5 i 5 5 65, ȳ 5 i 5 5 117, The least squares line accounted for 74.6% of the total
n 5 n 5
sum of squares
o(xi 2 x̄)( yi 2 ȳ) 5 110, o(xi 2 x̄)2 5 20
c. rxy 5 Ï.746 5 1.8637
o(xi 2 x̄)( yi 2 ȳ) 110 20. a. ŷ 5 12.0169 1 .0127x
b1 5 5 5 5.5
o(xi 2 x̄) 2
20 b. r 2 5 .4503
b0 5 ȳ 2 b1x̄ 5 117 2 (5.5)(65) 5 2240.5 c. 53
ŷ 5 2240.5 1 5.5x 22. a. .77
e. ŷ 5 2240.5 1 5.5(63) 5 106 b. Yes
The estimate of weight is 106 pounds c. rxy 5 1.88, strong
SSE 12.4
6. c. ŷ 5 8.9412 2 .02633x 23. a. s 2 5 MSE 5 5 5 4.133
n22 3
e. 6.3 or approximately $6300
b. s 5 ÏMSE 5 Ï4.133 5 2.033
8. c. ŷ 5 359.2668 2 5.2772x c. o(xi 2 x̄)2 5 10
d. $254 s 2.033
sb1 5 5 5 .643
10. c. ŷ 526,745.44 1 149.29x Ïo(xi 2 x̄)2
Ï10
d. 4003 or $4,003,000 b1 2 β1 2.6 2 0
d. t 5 sb1 5 .643 5 4.044
12. c. ŷ 5 28129.4439 1 22.4443x From the t table (3 degrees of freedom), area in tail is
d. $8704 between .01 and .025
14. c. ŷ 5 37.1217 1 .51758x p-value is between .02 and .05
d. 73 Using Excel or Minitab, the p-value corresponding to
t 5 4.04 is .0272
15. a. ŷi 5 .2 1 2.6xi and ȳ 5 8 Because p-value # α, we reject H0: β1 5 0
1038 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
Î
3 denominator), p-value is between .025 and .05
Using Excel or Minitab, the p-value corresponding to 1 (4 2 3)2
5 2.033 1 5 1.11
F 5 16.36 is .0272 5 10
Because p-value # α, we reject H0: β1 5 0 b. ŷ 5 .2 1 2.6x 5 .2 1 2.6(4) 5 10.6
ŷp 6 tα/2sŷp
Source of Sum of Degrees of Mean 10.6 6 3.182(1.11)
Variation Squares Freedom Square F p-value 10.6 6 3.53, or 7.07 to 14.13
Regression
Error
Total
67.6
12.4
80
1
3
4
67.6
4.133
16.36 .0272
Î
c. sind 5 s 1 1
1
n
1
(xp 2 x̄)2
o(xi 2 x̄)2
24. a. 76.6667
5 2.033 1 1 Î 1
5
1
(4 2 3)2
10
5 2.32
sb1 5
s
Ïo(xi 2 x̄)2
5
145.89
Ï.74
5 169.59 sŷp 5 s Î 1
n
1
(xp 2 x̄)2
o(xi 2 x̄)2
t5 s
b1 2 β1 581.08 2 0
b1
5
169.59
5 3.43 5 145.89 Î
1
6
1
(3 2 3.2)2
.74
5 68.54
From the t table (4 degrees of freedom), area in tail is ŷp 6 tα/2sŷp
between .01 and .025
3533.8 6 2.776(68.54)
p-value is between .02 and .05
3533.8 6 190.27, or $3343.53 to $3724.07
Î
Using Excel or Minitab, the p-value corresponding to
t 5 3.43 is .0266 1 (xp 2 x̄)2
b. sind 5 s 1 1 1
Because p-value # α, we reject H0: β1 5 0 n o(xi 2 x̄)2
b. MSR 5
SSR 249,864.86
1
5
1
5 249,864.86 5 145.89 1 1 Î 1
6
1
(3 2 3.2)2
.74
5 161.19
From the F table (1 numerator degree of freedom and satisfied; the scatter diagram for these data also indi-
7 denominator), p-value is less than .01 cates that the underlying relationship between x and y
Using Excel or Minitab, the p-value corresponding to may be curvilinear
F 5 28.0 is .0011 d. s 2 5 23.78
Because p-value # α 5 .05, we reject H0: β1 5 0 1 (x 2 x̄)2
hi 5 1 i
e. ŷ 5 20.0 1 7.21(50) 5 380.5, or $380,500 n o(xi 2 x̄)2
1 (x 2 14)2
42. a. ŷ 5 80.0 1 50.0x 5 1 i
5 126
b. 30
c. Significant; p-value 5 .000
d. $680,000 Standardized
xi hi syi 2 ŷi yi 2 ŷi Residuals
44. b. Yes 6 .7079 2.64 3.48 1.32
c. ŷ 5 2044.38 2 28.35 weight 11 .2714 4.16 22.47 2.59
d. Significant; p-value 5 .000 15 .2079 4.34 24.83 21.11
e. .774; a good fit 18 .3270 4.00 21.60 2.40
20 .4857 3.50 5.22 1.49
oxi 70 oy 76
45. a. x̄ 5 5 5 14, ȳ 5 i 5 5 15.2,
n 5 n 5 e. The plot of the standardized residuals against ŷ has the
o(xi 2 x̄)( yi 2 ȳ) 5 200, o(xi 2 x̄)2 5 126 same shape as the original residual plot; as stated in
o(xi 2 x̄)( yi 2 ȳ) 200 part (c), the curvature observed indicates that the
b1 5 5 5 1.5873
o(xi 2 x̄)2 126 assumptions regarding the error term may not be
b0 5 ȳ 2 b1x̄ 5 15.2 2 (1.5873)(14) 5 27.0222 satisfied
ŷ 5 27.02 1 1.59x 46. a. ŷ 5 2.32 1 .64x
b. No; the variance appears to increase for larger values
b.
of x
xi yi ŷi yi 2 ŷi
47. a. Let x 5 advertising expenditures and y 5 revenue
6 6 2.52 3.48
11 8 10.47 22.47 ŷ 5 29.4 1 1.55x
15 12 16.83 24.83 b. SST 5 1002, SSE 5 310.28, SSR 5 691.72
18 20 21.60 21.60 SSR
20 30 24.78 5.22 MSR 5 5 691.72
1
SSE 310.28
MSE 5 5 5 62.0554
c. y – ^y n22 5
MSR 691.72
5 F5 5 5 11.15
4 MSE 62.0554
3 From the F table (1 numerator degree of freedom and
2 5 denominator), p-value is between .01 and .025
1 Using Excel or Minitab, p-value 5 .0206
0
Because p-value # α 5 .05, we conclude that the two
–1
–2 variables are related
–3 c.
–4 xi yi ŷi 5 29.40 1 1.55xi yi 2 ŷi
–5
x 1 19 30.95 211.95
5 10 15 20 25 2 32 32.50 2.50
4 44 35.60 8.40
With only five observations, it is difficult to determine 6 40 38.70 1.30
whether the assumptions are satisfied; however, the 10 52 44.90 7.10
plot does suggest curvature in the residuals, which 14 53 51.10 1.90
would indicate that the error term assumptions are not 20 54 60.40 26.40
1040 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
140
0 130
120
–10
110
^
y 100
30 40 50 60
90 x
100 110 120 130 140 150 160 170 180
d. The residual plot leads us to question the assumption
of a linear relationship between x and y; even though The scatter diagram also indicates that the observation
the relationship is significant at the α 5 .05 level, it x 5 135, y 5 145 may be an outlier; the implication is
would be extremely dangerous to extrapolate beyond that for simple linear regression outliers can be identi-
the range of the data fied by looking at the scatter diagram
48. b. Yes 52. a. Aportion of the Minitab output is shown in Figure D14.52
b. Minitab identifies observation 1 as having a large stan-
50. a. Using Minitab, we obtained the estimated regression dardized residual; thus, we would consider observation
equation ŷ 5 66.1 1 .402x; a portion of the Minitab 1 to be an outlier
output is shown in Figure D14.50; the fitted values and
54. b. Value 5 2252 1 5.83 Revenue
standardized residuals are shown:
c. There are five unusual observations (9, 19, 21, 22, and
32).
Standardized 58. a. ŷ 5 9.26 1 .711x
xi yi ŷi Residuals b. Significant; p-value 5 .001
135 145 120.41 2.11 c. r 2 5 .744; good fit
110 100 110.35 21.08 d. $13.53
130 120 118.40 .14
145 120 124.43 2.38 60. b. GR(%) 5 25.4 1 .285 RR(%)
175 130 136.50 2.78 c. Significant; p-value 5 .000
160 130 130.47 2.04 d. No; r 2 5 .449
120 110 114.38 2.41 e. Yes
f. Yes
FIGURE D14.50
The regression equation is
Y = 66.1 + 0.402 X
Analysis of Variance
SOURCE DF SS MS F p
Regression 1 497.2 497.2 3.12 0.137
Residual Error 5 795.7 159.1
Total 6 1292.9
Unusual Observations
Obs X Y Fit SE Fit Residual St Resid
1 135 145.00 120.42 4.87 24.58 2.11R
FIGURE D14.52
The regression equation is
Shipment = 4.09 + 0.196 Media$
Analysis of Variance
Source DF SS MS F p
Regression 1 735.84 735.84 28.93 0.000
Residual Error 8 203.51 25.44
Total 9 939.35
Unusual Observations
Obs Media$ Shipment Fit SE Fit Residual St Resid
1 120 36.30 27.55 3.30 8.75 2.30R
FIGURE D15.5a
The regression equation is
Revenue = 88.6 + 1.60 TVAdv
Analysis of Variance
SOURCE DF SS MS F p
Regression 1 16.640 16.640 11.27 0.015
Residual Error 6 8.860 1.477
Total 7 25.500
FIGURE D15.5b
The regression equation is
Revenue = 83.2 + 2.29 TVAdv + 1.30 NewsAdv
Analysis of Variance
SOURCE DF SS MS F p
Regression 2 23.435 11.718 28.38 0.002
Residual Error 5 2.065 0.413
Total 7 25.500
FIGURE D15.39
The regression equation is
Y = 0.20 + 2.60 X
Analysis of Variance
SOURCE DF SS MS F p
Regression 1 67.600 67.600 16.35 0.027
Residual Error 3 12.400 4.133
Total 4 80.000
Standardized 41. a. The Minitab output appears in Figure D15.5b; the esti-
Residuals mated regression equation is
1.0 Revenue 5 83.2 1 2.29 TVAdv 1 1.30 NewsAdv
0.0
Standardized Standardized
–0.5 ŷi Residual ŷi Residual
–1.0 96.63 21.62 94.39 1.10
90.41 21.08 94.24 2.40
–1.5 94.34 1.22 94.42 21.12
^ 92.21 2.37 93.35 1.08
–2.0 y
0 3 6 9 12 15
The point (3,5) does not appear to follow the trend of Standardized
the remaining data; however, the value of the standard- Residuals
ized residual for this point, 21.65, is not large enough 1.5
for us to conclude that (3,5) is an outlier
1.0
c. Minitab provides the following values:
0.5
Studentized 0.0
xi yi Deleted Residual
– 0.5
1 3 .13
2 7 .91 –1.0
3 5 24.42
4 11 .19 –1.5
5 14 .54 –2.0
^
y
90 91 92 93 94 95 96 97
FIGURE D16.1a
The regression equation is
Y = - 6.8 + 1.23 X
Analysis of Variance
SOURCE DF SS MS F p
Regression 1 362.13 362.13 6.85 0.059
Residual Error 4 211.37 52.84
Total 5 573.50
FIGURE D16.1d
The regression equation is
Y = - 169 + 12.2 X - 0.177 XSQ
Analysis of Variance
SOURCE DF SS MS F p
Regression 2 541.85 270.92 25.68 0.013
Residual Error 3 31.65 10.55
Total 5 573.50
1 2
b. Because the p-value corresponding to F 5 73.15 is MSR 1760/4
F5 5 5 244.44
.003 , α 5 .01, the relationship is significant; we MSE 45/25
would reject H0: β1 5 β2 5 0 Because p-value 5 .000 the relationship is
c. See Figure D16.5c significant
6. b. No, the relationship appears to be curvilinear b. SSE(x1, x2, x3, x4) 5 45
c. Several possible models; e.g., c. SSE(x2, x3) 5 1805 2 1705 5 100
ŷ 5 2.90 2 .185x 1 .00351x 2 (100 2 45)/2
d. F 5 5 15.28
8. a. It appears that a simple linear regression model is not 1.8
appropriate Because p-value 5 .000, x1 and x2 are significant
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1047
FIGURE D16.5a
The regression equation is
Y = 433 + 37.4 X -0.383 XSQ
Analysis of Variance
SOURCE DF SS MS F p
Regression 2 36643 18322 73.15 0.003
Residual Error 3 751 250
Total 5 37395
FIGURE D16.5c
Fit Stdev.Fit 95% C.I. 95% P.I.
1302.01 9.93 (1270.41, 1333.61) (1242.55, 1361.47)
FIGURE D16.12a
The regression equation is
Scoring Avg. = 46.3 + 14.1 Putting Avg.
Analysis of Variance
SOURCE DF SS MS F p
Regression 1 4.6036 4.6036 17.66 0.0000
Residual Error 28 7.2998 0.2607
Total 29 11.9035
FIGURE D16.12b
The regression equation is
Scoring Avg. = 59.0 - 10.3 Greens in Reg.
+ 11.4 Putting Avg - 1.81 Sand Saves
Analysis of Variance
Source DF SS MS F p
Regression 3 7.5795 2.5265 15.19 0.000
Residual Error 26 4.3240 0.1663
Total 29 11.9035
30. a.
2000
1800
1600
1400
1200
Price ($)
1000
800
600
400
200
0
15 20 25 30 35 40
Weight (lb.)
Analysis of Variance
SOURCE DF SS MS F p
Regression 2 3161747 1580874 26.82 0.000
Residual Error 16 943263 58954
Total 18 4105011
The results obtained support the conclusion that there is a curvilinear relationship between weight and price
c. A portion of the Minitab output follows:
Analysis of Variance
SOURCE DF SS MS F p
Regression 2 2944410 1472205 20.30 0.000
Residual Error 16 1160601 72538
Total 18 4105011
Type of bike appears to be a significant factor in predicting price, but the estimated regression equation developed in
part (b) appears to provide a slightly better fit
d. A portion of the Minitab output follows; in this output WxF denotes the interaction between the weight of the bike and the
dummy variable Type_Fitness and WxC denotes the interaction between the weight of the bike and the dummy variable
Type_Comfort
Analysis of Variance
SOURCE DF SS MS F p
Regression 5 3450170 690034 13.70 0.000
Residual Error 13 654841 50372
Total 18 4105011
By taking into account the type of bike, the weight, and the 6.
interaction between these two factors, this estimated re-
gression equation provides an excellent fit Base Period
Weighted
Price Price
32. a. Delay 5 63.0 1 11.1 Industry; no significant positive
Item Relative Price Usage Weight Relative
autocorrelation
A 150 22.00 20 440 66,000
34. Significant differences between comfort levels for the B 90 5.00 50 250 22,500
three types of browsers; p-value 5 .034 C 120 14.00 40 560 67,200
Totals 1250 155,700
Chapter 17 I5
155,700
5 125
1250
1. a.
Item Price Relative
7. a. Price relatives for A 5 (3.95/2.50)100 5 158
A 103 5 (7.75/7.50)(100) B 5 (9.90/8.75)100 5 113
B 238 5 (1500/630)(100)
C 5 (.95/.99)100 5 96
b.
7.75 1 1500.00 1507.75
b. I2009 5 (100) 5 (100) 5 237
7.50 1 630.00 637.50 Weighted
7.75(1500) 1 1500.00(2) Price Base Weight Price
c. I2009 5 (100) Item Relative Price Quantity Pi0Qi Relative
7.50(1500) 1 630.00(2)
14,625.00 A 158 2.50 25 62.5 9,875
5 (100) 5 117 B 113 8.75 15 131.3 14,837
12,510.00 C 96 .99 60 59.4 5,702
7.75(1800) 1 1500.00(1) Totals 253.2 30,414
d. I2009 5 (100)
7.50(1800) 1 630.00(1) 30,414
15,450.00 I5 5 120
5 (100) 5 109 253.2
14,130.00
Chapter 18
1. The following table shows the calculations for parts (a), (b), and (c):
22
a. MAE 5 5 4.4
5
104
b. MSE 5 5 20.8
5
159.38
c. MAPE 5 5 31.88
5
d. Forecast for week 7 is 14
2. The following table shows the calculations for parts (a), (b), and (c):
13. a. The data appear to follow a horizontal pattern b. The methods discussed in this section are only
b. applicable for a time series that has a horizontal pat-
tern, so if there is a really a long-term linear trend in
the data, the methods discussed in this section are not
3-
Month appropriate
Time- Moving c. The time series plot for the data for years 2002–2008
Series Average α 5 .2 exhibits a horizontal pattern; it seems reasonable to con-
Month Value Forecast (Error)2 Forecast (Error)2 clude that the extreme values observed in 1997 and
1 240 2001 are more attributable to viewer interest in the per-
2 350 240.00 12100.00 formance of Tiger Woods; basing the forecast on years
3 230 262.00 1024.00
2002–2008 does seem reasonable, but, because of the
4 260 273.33 177.69 255.60 19.36
5 280 280.00 0.00 256.48 553.19 injury that Tiger Woods experienced in the 2008 reason,
6 320 256.67 4010.69 261.18 3459.79 if he is able to play in the 2009 Masters, then the rating
7 220 286.67 4444.89 272.95 2803.70 for 2009 may be significantly higher than suggested by
8 310 273.33 1344.69 262.36 2269.57 the data for years 2002–2008
9 240 283.33 1877.49 271.89 1016.97
10 310 256.67 2844.09 265.51 1979.36 17. a. The time series plot shows a linear trend
11 240 286.67 2178.09 274.41 1184.05 n n
12 230 263.33 1110.89 267.53 1408.50
ot
t51 15 oY
t51
t
55
Totals 17,988.52 27,818.49 b. t 5 5 53 Y5 5 5 11
n 5 n 5
MSE (3-Month) 5 17,988.52/9 5 1998.72
MSE (α 5 .2) 5 27,818.49/11 5 2528.95 o(t 2 t̄ )(Yt 2 Ȳ ) 5 21 o(t 2 t̄ )2 5 10
n
MSE 5 540.55
b0 5 Ȳ 2 b1t̄ 5 12 2 (1.4567)(5) 5 4.7165
Conclusion: A smoothing constant of .3 is better than a
smoothing constant of .5 since the MSE is less for 0.3 Tt 5 4.7165 1 1.4567t
16. a. The time series plot indicates a possible linear trend in c. T10 5 4.7165 1 1.4567(10) 5 19.28
the data; this could be due to decreasing viewer interest 22. a. The time series plot shows a downward linear trend
in watching the Masters, but closer inspection of the b. Tt 5 13.8 2 .7t
data indicates that the two highest ratings correspond to c. 8.2
years 1997 and 2001, years in which Tiger Woods won d. If SCF can continue to decrease the percentage
the tournament; the pattern observed may be simply due of funds spent on administrative and fund-raising by
to the effect Tiger Woods has on ratings and not neces- .7% per year, the forecast of expenses for 2015 is
sarily on any long-term decrease in viewer interest 4.70%
1054 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
24. a. The time series plot shows a linear trend b. A portion of the Minitab regression output follows:
b. Tt 5 7.5623 2 .07541t
c. 6.7328 The regression equation is
d. Given the uncertainty in global market conditions, Revenue = 70.0 + 10.0 Qtr1 + 105
making a prediction for December using only time is Qtr2 + 245 Qtr3
not recommended
26. a. A linear trend is not appropriate Quarter 1 forecast is 80
b. Tt 5 5.702 1 2.889t 2 1618t2 Quarter 2 forecast is 175
c. 17.90 Quarter 3 forecast is 315
28. a. The time series plot shows a horizontal pattern, but Quarter 4 forecast is 70
there is a seasonal pattern in the data; for instance, in c. A portion of the Minitab regression output follows
each year the lowest value occurs in quarter 2 and the
highest value occurs in quarter 4 The regression equation is
b. A portion of the Minitab regression output is shown; Revenue = -70.1 + 45.0 Qtr1 + 128
Qtr2 + 257 Qtr3 + 11.7 Period
The regression equation is
Value = 77.0 - 10.0 Qtr1 - 30.0
Quarter 1 forecast 5 is 221
Qtr2 - 20.0 Qtr3
Quarter 2 forecast 5 is 315
Quarter 3 forecast 5 is 456
c. The quarterly forecasts for next year are as follows: Quarter 4 forecast 5 is 211
Quarter 1 forecast 5 77.0 2 10.0(1) 2 30.0(0)
34. a. The time series plot shows seasonal and linear trend
2 20.0(0) 5 67
effects
Quarter 2 forecast 5 77.0 2 10.0(0) 2 30.0(1)
b. Note: Jan 5 1 if January, 0 otherwise; Feb 5 1 if
2 20.0(0) 5 47
February, 0 otherwise; and so on
Quarter 3 forecast 5 77.0 2 10.0(0) 2 30.0(0)
2 20.0(1) 5 57 A portion of the Minitab regression output follows:
Quarter 4 forecast 5 77.0 2 10.0(0) 2 30.0(0)
2 20.0(0) 5 77 The regression equation is
30. a. There appears to be a seasonal pattern in the data and Expense = 175 - 18.4 Jan - 3.72 Feb +
perhaps a moderate upward linear trend 12.7 Mar + 45.7 Apr + 57.1
b. A portion of the Minitab regression output follows: May + 135 Jun + 181 Jul + 105
Aug + 47.6 Sep + 50.6 Oct +
The regression equation is 35.3 Nov + 1.96 Period
Value = 2492 - 712 Qtr1 - 1512
Qtr2 + 327 Qtr3 c. Note: The next time period in the time series is
Period 5 37 (January of Year 4); the forecasts for Janu-
c. The quarterly forecasts for next year are as follows: ary–December are 229; 246; 264; 299; 312; 392; 440;
Quarter 1 forecast is 1780 366; 311; 316; 302; 269
Quarter 2 forecast is 980 35. a. The time series plot indicates a linear trend and a sea-
Quarter 3 forecast is 2819 sonal pattern
Quarter 4 forecast is 2492 b.
d. A portion of the Minitab regression output follows:
Time Four-Quarter Centered
The regression equation is Series Moving Moving
Value = 2307 - 642 Qtr1 - 1465 Year Quarter Value Average Average
Qtr2 + 350 Qtr3 + 23.1 t 1 1 4
2 2
The quarterly forecasts for next year are as follows:
3.50
Quarter 1 forecast is 2058 3 3 3.750
Quarter 2 forecast is 1258 4.00
Quarter 3 forecast is 3096 4 5 4.125
Quarter 4 forecast is 2769 4.25
2 1 6 4.500
32. a. The time series plot shows both a linear trend and sea- 4.75
sonal effects
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1055
d. The quadratic trend equation provides the best forecast d. Hudson Marine experiences the largest seasonal in-
accuracy for the historical data crease in quarter 2; since this quarter occurs prior to the
e. Linear trend equation peak summer boating season, this result seems reason-
46. a. The forecast for July is 236.97 able, but the largest seasonal effect is the seasonal de-
Forecast for August, using forecast for July as the ac- crease in quarter 4; this is also reasonable because of
tual sales in July, is 236.97 decreased boating in the fall and winter
Exponential smoothing provides the same forecast for
every period in the future; this is why it is not usually
recommended for long-term forecasting Chapter 19
b. Using Minitab’s regression procedure we obtained the 1. n 5 27 cases with a value different than 150
linear trend equation Normal approximation µ 5 .5n 5 .5(27) 5 13.5
Tt 5 149.72 1 18.451t σ 5 Ï.25 n 5 Ï.25(27) 5 2.5981
Forecast for July is 278.88 With the number of plus signs 5 22 in the upper tail,
Forecast for August is 297.33 use continuity correction factor as follows
c. The proposed settlement is not fair since it does not ac-
1 2
21.5 2 13.5
count for the upward trend in sales; based upon trend P(x $ 21.5) 5 P z $ 5 P(z $ 3.08)
2.5981
projection, the settlement should be based on forecasted
lost sales of $278,880 in July and $297,330 in August p-value 5 (1.0000 2 .9990) 5 .0010
p-value # .01; reject H0; conclude population median . 150
48. a. The time series plot shows a linear trend
b. Tt 5 25 1 15t 2. Dropping the no preference, the binomial probabilities
The slope of 15 indicates that the average increase in for n 5 9 and p 5 .50 are as follows
sales is 15 pianos per year
c. 85, 100 x Probability x Probability
50. a. 0 0.0020 5 0.2461
1 0.0176 6 0.1641
2 0.0703 7 0.0703
Quarter Adjusted Seasonal Index
3 0.1641 8 0.0176
1 1.2717 4 0.2461 9 0.0020
2 0.6120
3 0.4978 Number of plus signs 5 7
4 1.6185
P(x $ 7) 5 P(7) 1 P(8) 1 P(9)
5 .0703 1 .0176 1 .0020
4 5 .0899
Note: Adjustment for seasonal index 5 5 1.0260
3.8985 Two-tailed p-value 5 2(.0899) 5 .1798
b. The largest effect is in quarter 4; this seems reasonable p-value . .05, do not reject H0; conclude no indication
since retail sales are generally higher during October, that a difference exists
November, and December
4. a. H0: Median $ 15
52. a. Yes, a linear trend pattern appears to be present Ha: Median , 15
b. A portion of the Minitiab regression output follows: b. n 5 9; number of plus signs 5 1
p-value 5 .0196
The regression equation is
Reject H0; bond mutual funds have lower median
Number Sold = 22.9 + 15.5 Year
6. n 5 48; z 5 1.88
c. Forecast in year 8 is or approximately 147 units p-value 5 .0301
Reject H0; conclude median . $56.2 thousand
54. b. The centered moving average values smooth out the
time series by removing seasonal effects and some of 8. a. n 5 15
the random variability; the centered moving average p-value 5 .0768
time series shows the trend in the data Do not reject H0; no significant difference for the pace
c. b. 25%, 68.8%; recommend larger sample
10. n 5 600; z = 2.41
Quarter Adjusted Seasonal Index p-value 5 .0160
1 0.899 Reject H0; significant difference, American Idol preferred
2 1.362
3 1.118 12. H0: Median for Additive 1 2 Median for Additive 2 5 0
4 0.621 Ha: Median for Additive 1 2 Median for Additive 2 Þ 0
1058 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises
Î Î
20.7 13
n(n 1 1)(2n 1 1) 12(13)(25) 20.2 12
σT 1 5 5 5 12.7475
24 24 W 5 34
1 2
69.5 2 39
P(T 1 $ 70) 5 P z $ 5 P(z $ 2.39)
12.7475 1 1
p-value 5 2(1.0000 2 .9916) 5 .0168 µW 5 n (n 1 n2 1 1) 5 7(7 1 9 1 1) 5 59.5
2 1 1 2
p-value # .05, reject H0; conclude significant difference
between additives σW 5 Î 1
n n (n 1 n2 1 1) 5
12 1 2 1
Î 1
12
7(9)(7 1 9 1 1)
13. H0: Median time without Relaxant 2 Median time with 5 9.4472
Relaxant # 0 With W 5 34 in lower tail, use the continuity correction
Ha: Median time without Relaxant 2 Median time with
1 2
34.5 2 59.5
Relaxant . 0 P(W # 34) 5 P z # 5 P(z # 22.65)
9.4472
p-value 5 2(.0040) 5 .0080
Absolute Signed Ranks
Difference Difference Rank Negative Positive p-value , .05; reject H0; conclude additives are not
5 5 9 9
identical
2 2 3 3 Additive 2 tends to provide higher miles per gallon
10 10 10 10
23 3 6.5 26.5 19. a. H0: The two populations of salaries are identical
1 1 1 1 Ha: The two populations of salaries are not identical
2 2 3 3
22 2 3 23
3 3 6.5 6.5 Public Financial
3 3 6.5 6.5 Accountant Rank Planner Rank
3 3 6.5 6.5 50.2 5 49.0 2
Sum of Positive Signed Ranks T1 5 45.5 58.8 19 49.2 3
56.3 16 53.1 10
58.2 18 55.9 15
n(n 1 1) 10(11) 54.2 13 51.9 8.5
µT 1 5 5 5 27.5 55.0 14 53.6 11
4 4
Î Î
50.9 6 49.7 4
n(n 1 1)(2n 1 1) 10(11)(12) 59.5 20 53.9 12
σT 1 5 5 5 9.8107
24 24 57.0 17 51.8 7
51.9 8.5 48.9 1
1 2
45 2 27.5
P(T 1 $ 45.5) 5 P z $ 5 P(z $ 1.78) W 5 136.5
12.7475
1 1
p-value 5 (1.0000 2 .9925) 5 .0375 µW 5 n (n 1 n2 1 1) 5 10(10 1 10 1 1) 5 105
2 1 1 2
Î Î
p-value # .05; reject H0; conclude without the relaxant
1 1
has a greater median time σW 5 n n (n 1 n2 1 1) 5 10(10)(10 1 10 1 1)
12 1 2 1 12
14. n 5 11; T1 5 61; z 5 2.45 5 13.2288
p-value 5 .0142
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises 1059
412612 182
315(16) 1 5 24
With W 5 136.5 in upper tail, use the continuity 12
H5 11 2 3(16) 5 9.26
correction 5 5
1 2
136 2 105 χ 2 table with df 5 2, χ 2 5 9.26; the p-value is between
P(W $ 136.5) 5 P z $ 5 P(z $ 2.34)
13.2288 .005 and .01
p-value 5 2(1.0000 2 .9904) 5 .0192 p-value # .05 reject H0; conclude that the populations of
p-value # .05; reject H0; conclude populations are not calories burned are not identical
identical 30. H 5 8.03 with df 5 3
Public accountants tend to have higher salaries p-value is between .025 and .05
(55.0 1 56.3) Reject H0; conclude a difference between quality of courses
b. Public Accountant 5 $55.65 thousand
2
32. a. od 2i 5 52
(51.8 1 51.9)
Financial Planner 5 $51.85 thousand 6od 2i 6(52)
2 rs 5 1 2 512 5 .685
n(n2 2 1) 10(99)
20. a. $54,900, $40,400
b. W 5 69; z 5 2.04
p-value 5 .0414
b. σrs 5 Î 1
n21
5 Î 1
9
5 .3333
Reject H0; conclude a difference between salaries; men
rs 2 0 .685
higher z5 5 5 2.05
σrs .3333
22. W 5 157; z 5 2.74
p-value 5 2(1.0000 2 .9798) 5 .0404
p-value 5 .0062
Reject H0; conclude a difference between ratios; Japan p-value # .05 reject H0; conclude significant positive
tends to be higher rank correlation
r 20 2.136
z5 s 5 5 2.43
A B C σrs .3162
4 11 7 p-value 5 2(.3336) 5 .6672
8 14 2 p-value . .05 do not reject H0; we cannot conclude that
10 15 1
3 12 6 there is a significant relationship
9 13 5 36. rs 5 2.709, z 5 22.13
Sum of Ranks 34 65 21 p-value 5 .0332
Reject H0; conclude a significant negative rank correlation
342 652 212
315(16) 1 5 24
12 38. Number of plus signs 5 905, z 5 23.15
H5 1 1 2 3(16) 5 10.22
5 5 p-value less than .0020
χ 2 table with df 5 2, χ 2 5 10.22; the p-value is between Reject H0; conclude a significant difference between the
.005 and .01 preferences
p-value # .01; reject H0; conclude the populations of 40. n 5 12; T1 5 6; z 5 22.55
ratings are not identical p-value 5 .0108
28. H0: All populations of calories burned are identical Reject H0; conclude significant difference between prices
Ha: Not all populations calories burned are identical 42. W 5 70; z 5 22.93
p-value 5 .0034
Reject H0; conclude populations of weights are not identical
Swimming Tennis Cycling
44. H 5 12.61 with df 5 2
8 9 5
p-value is less than .005
4 14 1
11 13 3 Reject H0; conclude the populations of ratings are not
6 10 7 identical
12 15 2 46. rs 5 .757, z 5 2.83
Sum of Ranks 41 61 18 p-value 5 .0046
Reject H0; conclude a significant positive rank correlation
1060 Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises