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CHAPTER 1 Introduction to Statistics ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING  OBJECTIVE) Level of Difficulty  (Moderate to Challenging)  1

Learning Objectives

1. Define statistics.



2. Identify the two major branches of statistics, describe their function and discuss the role of probability theory as the link between the two.


3. Distinguish between a deterministic and probabilistic analytic view. 4. Differentiate qualitative from quantitative data, times series data from cross-sectional data, and define the four levels of measurement. 5. Discuss the various sources of data.


12 6. Summarize the main points in ASA’s Ethical Guidelines for Statistical Practice.

5,6,8,10,1 1


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CHAPTER 1 2. Descriptive statistics focuses on summarizing and presenting data. Statistical inference, or inferential statistics, deals with the selection and use of sample data to learn about the larger population from which the sample data was selected. 4. Probability serves a link between descriptive and inferential statistics. 6. Variable (a) Delivery charge (b) SAT score (c) Paint color (d) Body temperature (e) Shirt size (S, M, L, XL) (f) Stock price (g) Sales volume (h) Gross Domestic Product (i) Interest rate (j) Occupation (k) Driver’s license number (l) Typing speed (m) Soccer uniform number (n) Diameter (o) Personality type (p) Favorite type of music (q) Television channel


Quantitative X X


Numeric? Yes Yes No Yes No Yes Yes Yes Yes No Yes Yes Yes Yes No No Yes

8. Data (a) Responses to a survey conducted on May 30 of this year (b) Diameters of 25 units sampled at 3 o’clock today (c) GNP for each of the past 15 years (d) Ages of the workers currently working at Company ABC (e) Semester-by-semester enrollment figures from 2000 to the present (f) Theater receipts for the 10 most popular movies on the first weekend in May (g) Attendance at Major League Baseball games on opening day, 2014 (h) Executive salaries at General Motors for each of the past 25 years (i) Housing starts by geographical region for the last quarter (j) Total days you overslept your 8 AM class last term

Cross-Sect Cross-Sect Time Series Cross-Sect Time Series Cross-Sect Cross-Sect Time Series Cross-Sect Cross-Sect

10. For the cases listed below, indicate the level of measurement for the numeric data involved (N = nominal, O = ordinal, I = interval, or R = ratio):

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Variable (a) Movie ratings (1=G, 2=PG, 3=PG.13, 4=R,5=X) (b) Commuting distances (c) Floors in a building (-1=basement, 0=lobby, 1, 2, etc.) (d) Years of education (e) Korean shoe sizes (f) College ID numbers (g) Income taxes owed (h) Military ranks (1=2nd lieutenant, 2=1st lieutenant, 3=captain, etc.) (i) Academic degrees (1=associate, 2=BS/BA, 3=masters, etc.) (j) Time of day (military time: 0600, 1830, etc.) (k) Stock ratings (1=Strong Buy, 2=Buy, 3=Hold, 4=Sell) (l) PIN numbers (m) Temperatures on the absolute Kelvin scale

Level O R O R R N R O O I O N R

Note: (e) For American and British shoe sizes, there is no natural “0” point indicating the complete absence of length. Size 0 corresponds to an insole length of approximately 8 inches. Therefore, a size 10 is not twice as long as a size 5. The difference in successive shoe sizes is a uniform1/3 of an inch. In contrast, Korean shoe sizes are on a ratio scale, where size 0 actually does represent the absence of length and a size 200 is exactly twice as long as a size 100. Korean shoe sizes use the Mondopoint scale, measuring length in millimeters. (j) Technically, the time scale itself is interval since 0 doesn’t naturally mark the beginning of time. However, differences on the time scale provide ratio data. If activity A takes from 0600 to 0700 and activity B takes from 1600 to 1800, activity B takes twice as long as activity A. (m) On the absolute Kelvin scale, a temperature of 0 means “no heat.” A temperature of 100 indicates twice the amount of heat as a temperature of 50.

Solution manual understanding business statistics 1st edition freed