A Review of Chapters 1 – 4

Part III
Answers to section one exercises
A Review of Chapters 1 – 4

1. a. Mean is 147.9. Median is 148.5. Standard deviation is 69.24

b. The first quartile is 106. The third quartile is 186.25.
c.

Boxplot of C1

0 50 100 150 200 250 300

C1

There are no outliers. The distribution is symmetric. The whiskers and the boxes are about equal
on the two sides.
d.
Frequency Distribution - Quantitative

            cumulative
lowe
r upper midpoint width frequency percent frequency percent
0 < 50 25 50 3 6.0 3 6.0
50 < 100 75 50 8 16.0 11 22.0
100 < 150 125 50 15 30.0 26 52.0
150 < 200 175 50 13 26.0 39 78.0
200 < 250 225 50 7 14.0 46 92.0
250 < 300 275 50 4 8.0 50 100.0

50 100.0

Review 1-1
A Review of Chapters 1 – 4

e. Answers will vary but include all of the above information.

2. a. Mean is 54.636. Median is 54.5. Standard deviation is 6.273

b. The first quartile is 50.25. The third quartile is 57.75.
c.

Boxplot of C2

40 45 50 55 60 65 70
C2

There are no outliers. The distribution is symmetric. The whiskers and the boxes are
about equal on the two sides.
d.

Age Frequency
40 up to 45 2
45 up to 50 7
50 up to 55 13
55 up to 60 12
60 up to 65 7
65 up to 70 3
Total 44

e. Answers will vary but include all of the above information.

3. a. Mean is 35768. Median is 34405. Standard deviation is 5992.

b. The first quartile is 32030. The third quartile is 38994.

c.

Boxplot of C3

30000 35000 40000 45000 50000 55000 60000

C3

There are two outliers above $50,000. The distribution is positively skewed. The
whiskers and the boxes on the right are much larger than the ones on the left.

Review 1-2
A Review of Chapters 1 – 4

d.
Amounts Frequency
$24,000 up to 30,000 8
30,000 up to 36,000 22
36,000 up to 42,000 15
42,000 up to 48,000 4
48,000 up to 54,000 1
54,000 up to 60,000 1
Total 51

e. Answers will vary but include all of the above information.

4.

120

110

100
Price

90

80

70

0.8 0.9 1.0 1.1 1.2 1.3 1.4

Size

Yes, bigger homes generally have higher prices.

5. a. Box plot
b. Median = 48 Q1 = 24 Q3 = 84
c. Positive, because the distance from the median to the third quartile is greater than the
distance from the median to the first quartile.
d. Yes, 168,204
e. No

Review 1-3
A Review of Chapters 1 – 4

SOLUTION TO CASE I

CENTURY NATIONAL BANK

1. The following frequency distribution was developed.

Balance f
0 up to 500 4
500 up to 1000 7
1000 up to 1500 15
1500 up to 2000 22
2000 up to 2500 11
2500 up to 3000 1
Total 60
A typical customer maintains a balance of about $1500. About twenty percent of the customers
keep a balance of $2000 or more. The range of the balances is larger in cities 3 and 4, than 1 and
2.

The following MINITAB output is used to answer the remaining questions.

CITY N MEAN MEDIAN TRMEAN STDEV SEMEAN
1 16 1281 1397 1303 474 119
2 17 1879.6 1958.0 1894.7 350.9 85.1
3 14 1359 1505 1394 683 183
4 13 1423 1487 1435 709 197

CITY MIN MAX Q1 Q3

1 343 1913 919 1679
2 1125.0 2409.0 1645.5 2140.5
3 32 2276 975 1833
4 167 2557 777 2094

2. The mean balance is $1499.90 and the median balance is $1604.50. Half the balances are larger
than $1604.50 and half are less than $1604.50. The mean is smaller than the median, so the
distribution is somewhat negatively skewed. The coefficient of skewness is –0.527, a small
amount of negative skewness. The mean and median are much larger for city number 2. The
mean balance in City 2 is $456.60 more than that of the next closest city. For reference,
Cincinnati is City 1, Atlanta is City 2, Louisville is City 3, and Erie, Pennsylvania is City 4.

3. The data range from the smallest balance of $32 up to the largest, which is $2557. Fifty percent
of the accounts balance range from $1121 up to $1947. The standard deviation is $596.90. There
is more variation in the balance for cities 3 and 4, than for 1 and 2.

Review 1-4
A Review of Chapters 1 – 4

SOLUTION TO CASE II

WILDCAT PLUMBING SUPPLY, INC.

To begin, determine the cumulative and relative frequency distribution for the two distributions.
Women Men
Salary ($000) f CF Relative f CF Relative
less than $30 2 2 0.04 0 0 0
30 up to 40 3 5 0.06 1 1 0.02
40 up to 50 17 22 0.34 4 5 0.07
50 up to 60 17 39 0.34 24 29 0.40
60 up to 70 8 47 0.16 21 50 0.35
70 up to 80 3 50 0.06 7 57 0.12
80 or more 0 50 0.00 3 60 0.05
Total 50 1.00 60 1.00
Summary of descriptive statistics
Median Q1 Q3
Women 51.76 44.41 59.12
Men 60.48 54.17 67.62

The salaries for the men are larger than for the women. The median salary for the men is $60.48(000)
where as it is $51.76(000) for the women. The difference is $8.72. There are similar differences for the
first and third quartile.

Comparing the relative frequency distributions, forty percent of the women earn less than $50.0(000),
where as only nine percent of the men earn less than $50.00(000). It is reasonable to conclude that the
men earn more than the women.

Review 1-5
A Review of Chapters 1 – 4

SOLUTION TO CASE III

KIMBLE PRODUCTS

Listed below is a summary of the descriptive statistics from the MINITAB system.
Variable N Mean Median TrMean StDev SEMean
Athletic 40 822 527 737 830 131
Retail 30 1059.2 1074.5 1064.2 339.0 61.9

Variable Min Max Q1 Q3

Athletic 4 3202 250 1182
Retail 12.0 1858.0 865.0 1291.8

The mean amount of commission earned by those selling to athletic departments is $822. The mean
commission to retailers is $1059.20. The median commission is also larger for those selling to retailers.
Note that for the retail commissions the mean and median are about $15 apart, whereas for the athletic
commissions the difference is about $300. There is more variation in the sales to athletic departments.
The standard deviation to athletic departments is $830 and to retailers it is $339. The quartile deviation
for the athletic commissions is $932, found by $1182 – $250. The quartile deviation for the retail
commissions is $426.80.
Below is the box plot of the athletic commissions. Note that there are two outliers, which have the effect
of increasing both the mean and standard deviation. The distribution is positively skewed.

------------
--| + |------------- **
------------
+------+------+------+------+------+------
0 600 1200 1800 2400 3000

Below is a box plot for the retail commissions. There is an outlier near $0, but this distribution seems
more symmetrical and exhibits less variation.
--------
* ------| + |----------
--------
+------+------+------+------+------+------
0 350 700 1050 1400 1750

It is reasonable to conclude that those selling to retail customers earn larger commissions and there is less
variability in the commissions earned.

Review 1-6
A Review of Chapters 1 – 4

PRACTICE TEST

1. statistics
2. descriptive statistics
3. population
4. discrete and continuous or quantitative and qualitative
5. discrete
6. nominal
7. nominal
8. zero
9. seven
10. fifty
11. variance
12. never
13. median

Problems

1. 3 (1.18)(1.04)(1.02)  1  .0777or 7.77%

2. a. 30 thousands of dollars
b. 105
c. 52
d. 0.19, found by 20/105
e. 165
f. 120 and 330
3. a. 70
b. 71.5
c. 67.8
d. 28
e. 9.34
4. $44.20, found by [(200)$36+(300)$40+(500)$50]/1000
5. a. pie chart
b. 11.1
c. three times
d. 65%

Review 1-7