31)The following cross-tabulation shows household income according to the

educational level of the head of household,(Statistical Abstract of the United States,

2002).

Household income (in thousands of dollars)

Less than 25.0 50.0 75.0
49.9 99.9 100 or more
Level of education 25 74.9 Total
Did not finish high 9 285 4 093 1 589 541 354 15 862
school
Finished high school 10 150 9 821 6 050 2 737 2 028 30 786
Part of baccalaureate 6011 8 221 5 813 3215 3 120 26 380
University degree 2 138 3 985 3 952 2 698 4 748 17521
Postgraduate 813 1497 1 815 1 589 3 765 9 479
Total 28 397 27 617 19219 10 780 14015 100 028

a. Calculate the percentages by line and identify the percentage frequency

distributions of income in households where the head of household completed
high school and in households where the head of household has a college
degree.

Less than 25 25-49,9 50-74,9 75-99,9 100 or more Total

Did not finish 9,3% 4,0% 1,6% 0,5% 0,4% 15,8%
high school
Finished high 10,2% 9,8% 6,1% 2,7% 2% 30,8%
school
Part from 6% 8,2% 5,8% 3,2% 3,1% 26,3%
bachelor
University 2,1% 4% 4% 2,7% 4,8% 17,6%
degree
Postgraduate 0,8% 1,5% 1,8% 1,6% 3,8% 9,5%
TOTAL 28,4 m 27,5% 19,3% 10,7% 14,1% 100%

Level of education Percentage frequency

Finished high school 30,8%
b. What percentage of
of It has a title 17,6% families in
those university. head of
that
family finished high school earning $75,000 or more? What percentage of
families in which the head of household has a college degree earn 75,000 or
more?

Rpta: The percentage of households in which the head of household with a

high school degree earns $75,000 or more is 4.7% while the percentage of
households in which the head of household with a college degree earns
$75,000 or more is 7.5%.

c. With the income of the households in which the head of household completed
high school, create a histogram of the percentage frequency, and another one
with
1
 income of families in which the head of household has a university degree.
Is there a clear relationship between household income and level of
education?

■ Less than 25 ■ 25-49.9 ■ 50-74.9 ■ 75-99.9 ■ 100 or more.

10.10% 9.80%

Finished high school

■ less than 25 ■ 25-49.9 ■ 50-74.9 ■ 75-99.9 ■ 100 or more.

8.50%

Possesses a university degree

Rpta: Yes, since, as seen in the first graph, the higher the salary, the fewer
people without higher education receive that amount. On the other hand, the
second graph shows that very few people with a college degree earn less
than $25,000.

32)Refer to the cross-tabulation of household income according to level of education in

fiscal year 31.
25-49,9 50-74,9 75-99,9 100 or more Total
Less than 25
9,3% 4,0% 1,6% 0,5% 0,4% 15,8%
Did not finish
high school
Finished high 10,2% 9,8% 6,1% 2,7% 2% 30,8%
school
2
 Part from 6% 8,2% 5,8% 3,2% 3,1% 26,3%
bachelor
University 2,1% 4% 4% 2,7% 4,8% 17,6%
degree
Postgraduate 0,8% 1,5% 1,8% 1,6% 3,8% 9,5%
TOTAL 28,4 m 27,5% 19,3% 10,7% 14,1% 100%

a. Calculate percentages and identify percentage frequency distributions. What

percentage of heads of household did not finish high school? Rpta: 15.8% of
household heads did not complete high school.

b. What percentage of households earning $100,000 or more are headed by a

person with a graduate degree? What percentage of households headed by a
person with a graduate degree earn more than $100,000? Why are these two
percentages different?
Rpta: 26.9% and 3.8% because the first one takes the total of 14,015, while
the other one takes the total of 100,028.

c. Compare the percentage frequency distributions of those households receiving

"Less than 25", "100 or more" and "Total". Comment on the relationship
between family income and level of education of the head of household.
Rpta: The higher the university degree, the higher the salary received,
while the lower the degree, the lower the salary.

33)Recently the managers of a golf course received some complaints about the
condition of the greens. Several players complained that they were too fast. Instead
of reacting to the comments of a few, the golf association conducted a survey of
100 female and 100 male players. The results of the survey are presented below.

Players Players
Condition of the gre en
Condition of greens s
Deinasiad or fast
Handicap Too fast Well Handicap Well
Less than 15 10 40 Less than 15 1 9
15 or more 25 25 15 or more 39 51

a. Combine these two cross tabulations using Players and Players as row headers and
Too Fast and Good as column headers. In which group do you find the highest
percentage of those who say the greens are too fast?
Too fast Well
Players 40% 60%
Players 35% 65%

Rpta: It is found in the players with 40% affirming that option.

b. Return to the initial cross tabulations. Of the low handicap players (better
players), in which group (players) do you find a higher percentage of those who
3
 say that the greens are too fast?
Rpta: In players, with 10%.

c. Return to the initial cross tabulations. Of the high handicap players, in which
group (players) is there a higher percentage for whom the greens are too fast?
Rpta: In female players with 39%.

d. What conclusions do you draw about women and men with respect to greens
speed? Are the conclusions you obtained in a) consistent with b) and c)?
Explain any apparent inconsistencies.
Rpta: They can be several according to their sport level. They are not
consistent, since different groups are evaluated, one with a high handicap
and the other with a lower handicap; in item A, both are taken as a total
regardless of their level.

34)Table 2.13 presents financial data for 36 companies in a sample whose shares are
listed on the New York Stock Exchange (Investor's Business Daily, April 7, 2000).
The data in the Sales/Margin/ROE column are composite financial evaluations
based on a company's sales growth rate, profit margin and return on assets (ROE
return on capital employed). EPS is a measure of growth per share.

4
TABLE 2 J 3 FINANCIALDATA OF 36 SAMPLED COMPANIES

EPS Relative strength of the

Company Relative price strength industry group Sales/margin/ ROE
dvo 81 74 B A
Alaska Air Group 58 17 C B
84
Alliant Tech 22 B B
Atmos Energy 21 9 c E
B ank of Am. 87 38 [ A
Bowater PLC 14 46 c D
Callaway Golf 46 62 B E
Central Parking 76 18 B C
Dcan Foods 84 7 B C
Dole Food 70 54 E c
Elec. Data Sys. 72 69 A B
Fed. Dept. Store 79 2] D B
Gateway 82 68 A A
Goodyear 21 9 E D
Hanson PLC 57 32 B B
ICN Pharm. 76 56 A D
Jefferson Pit. 80 38 D C
Kroger 84 24 D A
Mattel 18 20 E D
McDermott 6 6 .A C
Monaco 97 21 D A
M urphy Oil 80 62 B B
Nordstrom 58 57 B C
NYMAGIC 17 45 D D
Office Depot 58 40 B B
Payless Shoes 76 59 B B
Praxair 62 32 [ B
Reebok 31 72 C E
Safeway 91 61 D A
Toco Energy 49 48 D B
Texaco 80 31 [3 C
US West 60 65 B A
United Rental 98 12 • A
Wachovia 69 36 E B
Winnebago 83 49 D A
York Internationa] 28 14 D B

Source: Investor 's Bas iness Daily, April 7 , 2000.

a. Cross tabulate the Sales/Margin/ROE (rows) and EPS (columns) data. For EPS use
classes 0-19, 20-39, 40-59, 60-79 and 80-99.
Sales 0-19 20-39 40-59 60-79 80-99 TOTAL
A 0 0 0 1 8 9
B 0 1 4 5 2 12
C 1 0 1 2 3 7
D 3 1 0 1 0 5
E 0 2 1 0 0 3
TOTAL 4 4 6m 9• 13 m 36

b. Calculate the percentages of the columns and make a comment on the

relationship between the variables.
Sales 0-19 20-39 40-59 60-79 80-99 TOTAL
A 0% 0% 0% 2,8% 22,2% 25%
B 0% 2,8% 11,1% 13,9% 5,6% 33,3%
C 2,8% 0% 2,8% 5,6% 8,3% 19,4%
D 8,3% 2,8% 0% 2,8% 0% 13,9%
E 0% 5,6% 2,8% 0% 0% 8,3%
TOTAL 11,1% 11,2% 16,7% 25,1% 36,1% 100%

5
Rpta: The variables are increasing in both tables, so the percentages are also
increasing.

35)Return to table 2.13.

a. Cross tabulate the Sales/Margin/ROE and Relative Strength data for the
industry group.
Sales 0-19 20-39 40-59 60-79 80-99 TOTAL
A 0 0 0 1 8 9
B 0 1 4 5 2 12
C 1 0 1 2 3 7
D 3 1 0 1 0 5
E 0 2 1 0 0 3
TOTAL 4• 4• 6• 9• 13 36

Relative industry 0-19 20-39 40-59 60-79 80-99 TOTAL

strength
A 1 0 0 2 1 4
B 0 0 4 3 4 11
C 1 2 1 1 2 7
D 1 1 1 1 6 10
E 1 1 0 2 0 4
TOTAL 4 4• 6• 9• 13 36

b. Develop a frequency distribution of the data Sales/margin/ROE.

Sales Frequency
A 9
B 12
C 7
D 5
E 3
TOTAL 36 •

c. Develop a frequency distribution of the data Relative strength of the industry

group.
Relative industry strength Frequency
A 4
B 11
C 7
D 10
E 4
TOTAL 36 •

6
 d. Did the cross-tabulation help you in the elaboration of the frequency distributions
of items b and c?
Rpta: Yes, since it was only copying the total data of each letter.

36)Again, to table 2.13.

a. Prepare a scatter plot with the EPS data and relative price strength.

b. Comment on the relationship between the variables. (The meaning of EPS is

described in exercise 34. Relative price strength is a measure of the change in a
stock's price over the past 12 months. High values indicate large variation).

Rpta: According to the graph, the EPS and relative price strength variables have
an apparent relationship, pulling towards positive, this means that as the EPS
grows, the relative price strength is also growing, however, this is not so
noticeable because the trend line is not so high.

37)The National Football League of the United States evaluates candidates position by
position with a scale ranging from 5 to 9. The evaluation is interpreted as follows: 8-
9 should start the first year; 7.0-7.9 should start; 6.0-6.9 will be a team supporter;
and 5.0-5.9 can belong to the club and contribute. Table 2.14 presents position,
weight, time (seconds to run 40 yards), and evaluation of 40 candidates(USA
Today, April 14, 2000).

7
TABLE 2.14 DATA ON 40 UNITED STATES NATIONAL FOOTBALL LEAGUE CANDIDATES

Observation Name Position Weight Weather Evaluation

1 Peter Warrick Open receiver 194 4.53 9
7
Plaxico Burress Open receiver 231 4.52 8.8
3 Sylvester Morris Open receiver 216 4.59 8.3
4 Travis Taylor Open receiver 199 4.36 8.1
5 Laveranucs Cabbage Open receiver 192 4.29 8
6 Dez White Open receiver 21E 4.49 7.9
7 Jerry Porter Open receiver 221 4.55 7.4
8 Ron Dugans Open receiver 206 4.47 7.1
Todd Pinkston Open receiver 169 4.37 7
10 Dennis Northcutt Open receiver 175 4.43 7
II Anthony Lucas Open receiver 194 4.51 6.9
12 Darrell Jackson Open receiver 197 4.56 6.6
13 Danny Farmer Open receiver 217 4.6 6.5
14 Sherrod Gideon Open receiver 173 4.57 6,4
15 Trevor Gaylor Open receiver 199 4.57 6.2
16 Cosey Coleman Guard 322 5.38 7.4
17 Travis Claridge Guard 303 5.18 7
IS Kaulana Noa Guard 317 5.34 6.8
19 Leander Jordan Guard 330 5.46 6.7
20 Chad Clifton Guard 334 5.18 6.3
21 Manula Savea
Guard 308 5.32 6.1
27
Ryan Johanningmeir Guard 310 5.28 6
23 Mark Tauscher Guard 318 5.37 6
24 Blaine Saipaia Guard 321 5.25 6
25 Richard Mercier Guard 295 5.34 5.8
26 Damion McIntosh Guard 328 5.31 5.3
27 Jeno James Guard 320 5.64 5
28 Al Jackson Guard 304 5.2 5
29 Chris Samuels Taele offensive 325 4.95 8.5
30 Stockar McDougle Taele offensive 361 5.5 8
31 Chris Mclngosh Taele offensive 315 5.39 7.8
32 Adrian Klemm Taele offensive 307 4.98 7.6
33 Todd Wade Taele offensive 326 5.2 7.3
34 Marvel Smith Taele offensive 320 5.36 7.1
35 Michael Thompson Taele offensive 287 5.05 6.8
36 Bobby Williams Taele offensive 332 5.26 6.8
37 Darnell Alford Taele offensive 334 5.55 6.4
38 Terrance Beadles Taele offensive 312 5.15 6.3
39 Tutan Reyes Taele offensive 299 5.35 6.1
40 Greg Robinson-Ran Taele offensive 333 5.59 6

a. With the data position (rows) and time (columns) make a cross tabulation. For
time use classes 4.00-4.49, 4.50-4.99, 5.00-5.49 and 5.50-5.99.

Position 4-4,49 4,5-4,99■ 5-5,49 5,5-5,99 TOTAL

Receiver 6 9 0 0 15
Guard 0 0 12 1 13
Tacle 0 2 7 3 12
TOTAL 6• 11 • 19 • 4 40

b. Make a comment about the relationship between position and time, based on
the cross-tabulation you elaborated in a. above.
Rpta: Open receivers are faster with respect to guards and offensive
tackles.

8
 c. With the data time and grade obtained in the evaluation, draw a scatter
diagram, place the grade obtained in the evaluation on the vertical axis.

e. Comment on the relationship between time and grade obtained in the

evaluation.

Rpta: According to the graph, the relationship that appears is a negative

relationship, implying that the grades begin to decrease as time progresses.

9
 38)The top five best-selling cars in the United States during 2003 were the Chevrolet
Silverado/C/K pickup truck, the Dodge Ram pickup truck, the Ford F-Series pickup
truck, the Honda Accord and the Toyota Camry (Motor Trend, 2003). Table 2.15
shows a sample of 50 automobile purchases.

TABLE 2.15 DATA ON 50 AUTOMOBILE PURCHASES

Silverado Ram Accord Camry Camry
Silverado Silverado Camry Ram F-Series
Ram F-Series Accord Ram Ram
Silverado F-Series F-Series Silverado Rani
Ram Ram Accord Silverado Camry
F-Series Ram Silverado Accord Silverado
Camry F-Series F-Series F-Series Silverado
F-Series Silverado F-Series F-Series Ram
Silverado Silverado Camry Camry F-Series
Silverado F-Series F-Series Accord Accord

a. Prepare a frequency distribution and a percentage frequency distribution.

Vehicle Frequency F. Percentage

Chevrolet Silverado 13 26%
Dodge Ram 10 20%
Ford F-Series 14 28%
Honda Accord 6 12%
Toyota Camry 7 14%
TOTAL 50 100%

b. What is the best-selling pickup truck and passenger car?

Rpta: The best sellers are the Ford F-Series pickup truck and the Toyota
Camry.
c. Make a pie chart.

Automobile sales

■ S ilverado ■ Ram ■ F-Series

Accord ■ Camry ■ Camry

39)The Higher Education Research Institute at UCLA has statistics on the areas that are
most chosen by incoming students. The

1
0
 five most chosen are arts and humanities (A), business administration (B),
engineering (E), politics (P), and social sciences (S)(The New York Times Almanac,
2006). Other areas (O), including biology, physics, computer science and education
were all grouped into a single category. The following were chosen by 64 incoming
freshmen from a sample.

s P P O B E O E P Ü 0 B 0 O O A
o E E B S O B O A 0 E O E O B P
B A S 0 E A B O S s O o E B O B
A E B E A A P O 0 E 0 B B O P B
a. Give a frequency distribution and a percentage frequency distribution.

Areas Frequency F. Percentage

A 7 10.9%
B 13 20.3%
E 11 17.2%
P 6 9.4%
S 5 7.8%
O 22 34.4%
TOTAL 64 100%

b. Create a bar chart

c. What percentage of incoming freshmen

choose one of the top five areas of choice?
Rpta: 65.6% of students
choose one of the five most popular
areas.
d. What is the area most chosen by
incoming students? What percentage of incoming freshmen choose this area?
Rpta: The area most chosen by new students is business administration (B),
with 20.3% of students choosing it.

40) Golf Magazine asked the top 100 golf coaches, "What is the most relevant aspect
that prevents golfers from realizing their full potential?" The responses were lack of
accuracy, improper stroke technique, improper mental attitude, lack of energy,

1
1
 insufficient practice, inadequate hole shot, inadequate short game and inadequate
decision strategy. The following data is presented(Golf Magazine, February 2002)

a. Prepare a frequency distribution and a percentage frequency distribution.

Mental attitude Mental attitude Short game Short game Short game
Practice Accuracy Mental attitude Accuracy Hole shot
Energy Striking technique Accuracy Short game Hole shot
Accuracy Mental attitude Mental attitude Accuracy Energy
Accuracy Accuracy Short game Energy Short game
Accuracy Hole shot Mental attitude Decision strategy Accuracy
Short game Energy Mental attitude Striking technique Short game
Practical Practice Mental attitude Energy Energy
Mental attitude Short game Mental attitude Short game Decision strategy
Accuracy Short game Accuracy Mental attitude Short game
Mental attitude Hole shot Mental attitude Mental attitude Hole shot
Practice Hole shot Practice Short game Hole shot
Energy Mental attitude Short game Practice Decision strategy
Accuracy Short game Accuracy Practice Hole shot
Accuracy Short game Accuracy Short game Hole shot
Accuracy Striking technique Short game Mental attitude Practice
Short game Short game Decision strategy Short game Short game
Practical Practice Short game Practice Decision strategy
Mental attitude Decision strategy Decision strategy Energy Short game
Accuracy Practice Practice Practice Accuracy

Aspects Frequency F. Percentage

Mental Attitude 17 17%
Practice 14 14%
Energy 8 8%
Accuracy 18 18%
Short game 24 24%
Hole shot 9 9%
Strategy 7 7%

Striking technique 3 3%
TOTAL 100 100%

1
2
 b. What are the most relevant aspects that prevent a golfer from developing his or
her potential?
Rpta: inadequate short game, inadequate mental attitude, lack of
of precision and insufficient practice

41)Dividend yield is the annual profit paid by a company expressed as a percentage of

the price of a share (Dividend/share price X 100). Table 2.16 shows the dividend
yield of the Dow Jones Industrial Average companies(The Wall Street Journal, March
3, 2006).

TABLE 2.16 DIVIDEND YIELD OF DOW JONES INDUSTRIAL AVERAGE COMPANIES.

Performance Performance
Company of dividends Company of dividends
AIG 0.9 Home Depot 1.4
Alcoa 2.0 Honeywell 2.2
Aliña Group 4.5 IBM 1.0
American Express 0.9 Intel 2.0
AT&T 4.7 Johnson & Johnson 2.3
Boeing 1.6 JPMorgan Chase 3.3
Caterpillar 13 McDonald's 1.9
Citigroup 4.3 Merck 4.3
Coca-Cola 3.0 Microsoft 1.3
Disney 1.0 3M 2.5
DuPont 3.6 Pfizer 3.7
ExxonMobil 2.1 Procter & Gamble 1.9
General Electric 3.0 United Technologies 1.5
General Motors 5.2 Verizon 4.8
Hewlett-Packard 0.9 Wal-Man Stores 1.3

a. Make a frequency distribution and a percentage frequency distribution.

Company performance data Upper limit Frequency Percentage Frequency

0,9 - 1,9 1,9 13 43%
2,0 - 3,9 3,9 11 37%
4,0 - 4,9 4,9 5 17%
5,0 - 5,9 5,9 1 3%
TOTAL 30 100%
b. Make a histogram

HISTOGRAM
□ Frequency

1
3
0,9-1,9 2,0-3,9 4,0-4,9 5,0-5,9
1,9
 c. Provide a comment on the form of distribution
Rpta: The distribution form has much more data, so the data are grouped in
intervals where great care must be taken at the moment of defining the
classes.
d. What do the tabular and graphical summaries indicate about the dividends of the
Dow Jones Industrial Average companies?
Rpta: According to the tabular summaries and the graph it can be seen that
there are a large number of companies that have a low dividend yield with
only one company having the highest yield of the industry average.
e. Which company has the highest dividend yield? If today the stock price of this
company is $20 per share and you buy 500 shares, what will be the annual
dividend income generated by this investment?
Rpta: The company with the highest dividend yield is General Motors and if
I buy 500 shares today for $20 each, the dividend income I will generate
annually will be

42)Each year in the United States, approximately 1.5 million students in higher
education take the Scholastic Aptitude Test (SAT). About 80% of colleges and
universities use student scores on this test as a criterion for admission(College
Board, March 2006). The scores obtained in the areas of mathematics and verbal
expression by a sample of students are presented below.
1025 1042 ¡195 880 945
1102 845 1095 936 790
1097 913 1245 1040 998
998 940 1043 1048 1130

1017 1140 1030 1171 1035

1
4
 a. Present a distribution and histogram of these scores. The first class should start
at score 750 and the class width should be 100.

Score data Upper limit Frequency Relative frequency

750 - 849 849 2 0,08
850 - 949 949 5 0,2
950 - 1049 1049 10 0,4
1050 - 1149 1149 5 0,2
1150 - 1249 1249 3 0,12
TOTAL 25 1

b. Comment on the form of distribution

Rpta: This histogram was elaborated with the frequency distribution and is
an almost symmetrical histogram.
c. What other observations can you make about these scores based on the
summaries and graphs?
Rpta: 40% of the scores are between 950 and 1049. Scores lower than 750
or higher than 1249 are unusual. The average is slightly above 1000.

43)The American Association of Independent Investors reports 94 phantom stocks.

The term phantom refers to stocks of small or medium-sized companies that are
not closely followed by the major brokerage houses. For a sample of 20 phantom
stocks, information on where the stock is traded - New York Stock Exchange
(NYSE), American Stock Exchange (AMEX), or over-the-counter (OTC) - the
earnings per share and the price/earnings ratio is presented below.

1
5
 Earnings per share ($) Price/ga ntity ratio
Action Exchange
Chemi-Trol OTC 0.39 27.30
Candie's OTC 0.07 36.20
TST/Printed OTC 0.65 12.70

Earnings per share Price/ga nancia ratio

Action Exchange
Unimed Pharm. OTC 0.12 59.30
Skyline Chili AMEX 0.34 19.30
Cyanotech OTC 0.22 29.30
Catalina Light. NYSE 0.15 33.20
DDL Elect. NYSE 0.10 10.20
Euphonix OTC 0.09 49.70
Mesa Labs OTC 0.37 14.40
RCM Tech. OTC 0.47 18.60
Anuhco AMEX 0.70 11.40
Hello Direct OTC 0.23 21.10
Hilite industries OTC 0.61 7.80
Alpha Tech. OTC 0.11 34.60
Wegener Group OTC 0.16 24.50
U.S. Home & Garden OTC 0.24 8.70
Chalone Wine OTC 0.27 44.40
Eng. Support Sys. OTC 0.89 16.70
Int. Remote Imaging AMEX 0.86 4.70

a. Make a frequency distribution and a relative frequency distribution using the

exchange rate data. Which one has more phantom stock?
Stock market data Frequency Relative Frequency
OTC 15 0,75
AMEX 3 0,15
NYSE 2 0,1
TOTAL 20 1m
Rpta: The company that has the most phantom shares, according to the table, is
the OTC company.
b. With the data earnings per share and price/earnings ratio, develop frequency and
relative frequency distributions. For earnings per share use classes 0.00-0.19,
0.20-0.39, etc.; for price/earnings ratio use classes 0.0-9.9,10.0-19.9, etc. What
observations and comments can you make about phantom stocks?

Profit data Upper limit Frequency Relative Frequency

0,00 - 0,19 0,19 7 0,35
0,20 - 0,39 0,39 7 0,35
0,40 - 0,59 0,59 1 0,05
0,50 - 0,69 0,69 2 0,1
0,70 - 0,89 0,89 3 0,15
1
TOTAL 20

Relationship data Upper limit Frequency Relative Frequency

0,0 - 9,9 9,9 3 0,15

1
6
 10,0 - 19,9 19,9 7 0,35
20,0 - 29,9 29,9 4 0,2
30,0 - 39,9 39,9 3 0,15
40,0 - 49,9 49,9 2 0,1
50,0 - 59,9 59,9 1 0,05
1
TOTAL 20

Rpta:

44)The following data from the U.S. Census Bureau provides population in millions of
people by state(The World Almanac, 2006).

State Population State Population State Population

Alabama 4.5 Louisiana 4.5 Otrio 11.5
Alaska 0.7 Maine 1.3 Oklahoma 3.5
Arizona 5.7 Maryland 5.6 Oregon 3.6
Arkansas 2.8 Massachusetts 6.4 Pennsylvania 12.4
California 35.9 Michigan 10.1 Rhode Island 1.1
Colorado 4.6 Minnesota 5.1 South Carolina 4.2
Connecticut 3.5 Mississippi 2.9 South Dakota 0.8
Delaware 0.8 Missouri 5.8 Tennessee 5.9
Florida 17.4 Montana 0.9 Texas 22.5
Georgia 8.8 Nebraska 1.7 Utah 2.4
Hawaii 1.3 Nevada 2.3 Vermont 0.6
Idaho 1.4 New Hampshire 13 Virginia 7.5
Illinois 12.7 New Jersey 8.7 Washington 6.2
Indiana 6.2 New Mexico 1.9 West Virginia 1.8
Iowa 3.0 New York 19.2 Wisconsin 5.5
Kansas 2.7 North Carolina 8.5 Wyoming 0.5
Kentucky 4.1 North Dakota 0.6

a. Prepare a frequency distribution, a percentage frequency distribution and a

histogram. Use as class width 2.5 million
Population data Upper limit Frequency Percentage Frequency
0,0 - 2,4 2,4 17 34%
2,5 - 4,9 4,9 12 24%
5,0 - 7,4 7,4 9 18%
7,5 - 9,9 9,9 4 8%
10,0 - 12,4 12,4 3 6%

1
7
 12,5 - 14,9 14,9 1 2%
15,0 - 17,4 17,4 1 2%
17,5 - 19,9 19,9 1 2%
20,0 - 22,4 22,4 0 0%
22,5 - 24,9 24,9 1 2%
25,0 - 27,4 27,4 0 0%
27,5 - 29,9 29,9 0 0%
30,0 - 32,4 32,4 0 0%
32,5 - 34,9 34,9 0 0%
35,0 - 37,4 37,4 1 2%
TOTAL 50 m 100%

Histogram

□ Frequency

b. Explain the distribution bias

Rpta: The skew of the distribution is slightly positive and moderately skewed to
the right.
c. What observations can you make about the population in the 50 states?
Rpta: 34% of the states have a population less than 2.5 million, 58% of the states
have a population less than 5 million and 16% of the states have a population
greater than 10 million. The largest has 35.9 million (California). The lesser 0.5
million (Wyoming)
45)Drug Store News (September 2006) provides drug sales data from major U.S.
pharmacies. The following figures are annual sales in millions.

1
8
 Pharmacy Sales Pharmacy Sales

Ahold USA S 1700 Medicine Shoppe $ 1 757

CVS 12 700 Rite-Aid 8 637
Eckerd 7 739 Safeway 2 150
Kmart 1 863 Walgreens 11 660
Kroger 3 400 Wal-Mart 7 250

a. From a diagram of stems and leaves.

b. Indicate what are the annual minor, major and intermediate sales. c. What are the
two major pharmacies?
Rpta: The two top-selling pharmacies are CVS Pharmacy and Walgreens
Pharmacy.

46)Below are the highest and lowest daily temperatures recorded in 20 U.S.
cities(USA Today, March 3, 2006).

City High Download City High Downl

Albuquerque 66 39 Los Angeles 60 oad
46
Atlanta 61 35 Miami 84 65
Bal ti more 42 26 Minneapolis 30 11
Charlotte 60 29 New Orleans 68 50
Cincinnati 41 2J Oklahoma City 62 40
Dallas 62 47 Phoenix 77 50
Denver 60 31 Portland 54 38
Houston 70 54 St. Louis Louis 45 27
Indianapolis 42 22 San Francisco 55 43
Las Vegas 65 43 Seattle 52 36

a. At high temperatures make a diagram of stems and leaves.

Stem Sheets
3 0
4 1 2 25
5 245
6 0 0 01 2 2 5 6 8
7 07
8 4

c. At low temperatures make a diagram of stems and leaves.

Stem Leaves

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 1 1
2 1 2 6 7 9
3 1 5 6 8 9
4 0 3 3 6 7
5 0 0 4
6 5

d. Compare the two diagrams and comment on the differences between the higher
and lower temperatures.
Rpta: The highest frequency among high temperatures is observed in the 60s.
Most of the high temperatures are between 41 and 68, while most of the low
temperatures are between 21 and 47. The lowest was 11 and the highest was 84.
e. Provide a frequency distribution of the lowest and highest temperatures.

High temperature data Upper limit Frequency

10 - 19 19 0
20 - 29 29 0
30 - 39 39 1
40 - 49 49 4
50 - 59 59 3
60 - 69 69 9
70 - 79 79 2
80 - 89 89 1
TOTAL 20 m

Low temperature data Upper limit Frequency

10 - 19 19 1
20 - 29 29 5
30 - 39 39 5
40 - 49 49 5
50 - 59 59 3
60 - 69 69 1
TOTAL 20 m

47)Return to the data set on the highest and lowest temperatures in 20 cities
presented in the previous exercise.
a. Draw a scatter plot showing the relationship between the two variables, highest
and lowest temperatures.

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 b. Provide your comments on the relationship between the highest and lowest
temperatures.
Rpta: According to the graph, it shows that it has a positive relationship, i.e. the
higher the low temperature, the higher temperatures will increase. One example is
Miami's temperature, being the highest of all the cities in terms of high and low
temperatures.
48)A job satisfaction survey was conducted in four occupations. Job satisfaction was
measured by means of an 18-item questionnaire in which each item had to be rated
on a scale of 1 to 5; higher scores corresponded to higher job satisfaction. The sum
of the ratings given to the 18 items provided a measure of job satisfaction for each
of the individuals in the sample. The data obtained were as follows.

Occupation Satisfaction Occupation Satisfaction Occupation Satisfaction

Lawyer 42 Physical Therapist 78 Systems Analyst 60
Physical Therapist 86 Systems Analyst 44 Physical Therapist 59
Lawyer 42 Systems Analyst 71 Cabinetmaker 78
Systems Analyst 55 Abosado 50 Physical Teraveuta 60
Occupation Satisfaction Occupation Satisfaction Occupation Satisfaction
Lawyer 38 Lawyer 48 Physical Therapist 50
Cabinetmaker 79 Cabinetmaker 69 Cabinetmaker 79
Lawyer 44 Physical Therapist 80 Systems Analyst 62
Systems Analyst 41 Systems Analyst 64 Lawyer 45
Physical Therapist 55 Physical Therapist 55 Cabinetmaker 84
Systems Analyst 66 Cabinetmaker 64 Physical Therapist 62
Lawyer 53 Cabinetmaker 59 Systems Analyst 73
Cabinetmaker 65 Cabinetmaker 54 Cabinetmaker 60
Lawyer 74 Systems Analyst 76 A bogado 64
Physical Therapist 52

a. From a cross-tabulation table for occupation and job satisfaction.

Satisfaction
Occupations 38-47 48-57 58-67 68-77 78-87 Grand total
Lawyer 5 3 1 1 10
System Analyst 2 1 4 3 10
Cabinetmaker 1 4 1 4 10
Physical Therapist 4 3 3 10

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Total, general 7 9 12 5 7 40

b. In the cross tabulation of item a calculate the percentages of lines

Satisfaction
Occupations 38-47 48-57 58-67 68-77 78-87 Grand total
Lawyer 42,20% 30,20% 12,80% 14,80% 0,00% 100,00%
System Analyst 13,89% 8,99% 41,18% 35,95% 0,00% 100,00%
Cabinetmaker 0,00% 7,81% 35,89% 9,99% 46,31% 100,00%
Physical Therapist 0,00% 33,28% 28,41% 0,00% 38,30% 100,00%
Grand total 12,13% 19,34% 30,53% 14,88% 23,11% 100,00%

c. What observations can you make regarding job satisfaction is these occupations?
Rpta: As far as can be seen, cabinetmakers have the highest job satisfaction, as
opposed to lawyers, who have the lowest job satisfaction.
49)Do large companies generate more revenue? The following data shows the number
of employees and annual revenue for 20 of the Fortune 1000 companies(Fortune,
April 17, 2000).

Revenue (in Revenue (in

Company Employees millions of $) Company Employees millions of $)
Sprint 77 600 19 930 American Financial 9 400 3 334
Chase Manhattan 74 801 33 710 Fluor 53 561 12417
Computer Sciences 50 000 7 660 Phillips Petroleum 15 900 13 852
Wells Fargo 89 355 21 795 Cardinal Health 36 000 25 034
Sunbeam 12 200 2 398 Borders Group 23 500 2 999
CBS 29 000 7510 MCI WorldCom 77 000 37 120
Time Warner 69 722 TI 333 Consolidated Edison 14 269 7491
Steelcase 16 200 2 743 IBP 45 000 14 075
Georgia-Pacific 57 000 17 796 Super Value 50 000 17421
Bull 1 275 4 673 H&R Block 4 200 1 669

a. Make a scatter plot to show the relationship between the variables income and
employees.

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 b. Comment on the relationship between these variables.
Rpta: The relationship in this diagram is positive, i.e., the higher the income in the
company, the more employees will be in the company.
50)A survey of commercial buildings that are customers of Cincinnati Gas & Electronic
Company asked what was the primary fuel used for heating and in what year the
building was constructed. The following is a part of the crossplot obtained with the
data.

Fuel type
of construction Electricity Natural gas Oil Propane Others
1973 or earlier 40 183 12 5 7
1974-1979 24 26 2 2 0
1980-1986 37 38 1 0 6
1987-1991 48 70 2 0 1

a. Complete this cross tabulation by giving the row and column totals.
Rpta: Row totals: 247; 54; 82; 121 and column totals: 149; 317; 17; 7; 14.
b. Give the frequency distributions of year of construction and type of fuel used.

Data years Frequency Fuel data Frequency

1973 or earlier 247 Electronic 149
1974-1979 54 Oil 317
1980-1986 82 Oil 17
Propane 7
1987-1991 121
TOTAL 504 Others 14
TOTAL 504

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 c. Make a cross tabulation in which percentages are shown in columns.
Fuel types
Year of construction Electricity Natural gas Oil Propane Others
1973 or earlier 26,85 57,73 70,59 71,43 50,00
1974 - 1979 16,11 8,20 11,76 28,57 0,00
1980 - 1986 24,83 11,99 5,88 0,00 42,86
1987 - 1991 32,21 22,08 11,76 0,00 7,14
Total, general 100% 100% 100% 100% 100%

d. Prepare a cross-tabulation showing line item percentages

Fuel types
Year of construction Electricity Natural gas Oil Propan Others Total, general
or
1973 or earlier 16,19 74,09 4,86 2,02 2,83 100%
1974 - 1979 44,44 48,15 3,70 3,70 0,00 100%
1980 - 1986 45,12 46,34 1,22 0,00 7,32 100%
1987 - 1991 39,67 57,85 1,65 0,00 0,83 100%

e. Comment on the relationship between year of construction and type of fuel used.

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