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SOLUTION MANUAL FOR BASIC STATISTICS FOR BUSINESS AND ECONOMICS 7TH EDITION BY DOUGLAS A. LIND, WILLIAM G. MARCHAL, SAMUEL A. W ATHEN, CAROL ANN W AITE, KEVIN MURPHY

Chapter 1-17 CHAPTER 1 WHAT IS STATISTICS? 1.

a. b. c. d. e. f. g. h. i. j.

Interval Ratio Ratio Nominal Ordinal Ratio Nominal Ordinal Nominal Ratio (LO1-5)

a. b. c. d. e. f.

Ratio Ratio Ratio Ratio Ratio Ratio

(LO1-5)

Answers will vary

(LO1-6)

a. b. c. d.

Qualitative data are not numerical, whereas quantitative data are numerical. Examples will vary by student. (LO1-4)

A population is the entire group which you are studying. A sample is a subset taken from a population. (LO1-3)

Discrete variables can assume only certain values, whereas continuous variables can assume any value within a specific range. Examples will vary. (LO1-4)

The cell phone provider is nominal level data. The minutes used are ratio level. Satisfaction is ordinal level. (LO1-5)

If you were using one store as typical of all of the stores selling electronic book readers in the mall then it would be sample data. However, if you were considering all of the stores

Sample Population Population Sample (LO1-3)

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selling electronic book readers in the mall, then the data would be population data. (LO1-3) 10.

Based on these findings, we can infer that 270/300 or 90 percent of the executives would move. (LO1-3)

11.

If you were using this store as typical of all Best Buy stores, then the daily number sold last month would be a sample. However, if you considered the store as the only store of interest, then the daily number sold last month would be a population. (LO1-3)

12.

The clear majority of customers surveyed (400/500, or 80%) believe the take-out service is excellent. Based on this finding, we can expect a similar proportion of all customers to feel the same way. (LO1-3)

13.

a b.

This year total sales = 1 000 772; last year total sales = 942 973; total sales increased about 6% from last year to this year. Increases: Hockey Men’s Finals by 19.9% and Hockey Women’s by 23.5%. It appears that there has been a significant shift within the market from last year to this year. (LO1-3)

14.

a. b.

qualitative nominal

(LO1-4) (LO1-5)

15.

a. b. c.

quantitative discrete interval

(LO1-4) (LO1-4) (LO1-5)

16.

a. b. c.

quantitative discrete ratio

(LO1-4) (LO1-4) (LO1-5)

17.

a. b. c.

quantitative discrete ratio

(LO1-4) (LO1-4) (LO1-5)

18.

sample

19.

a. b. c.

20.

population

(LO1-3)

21.

sample

(LO1-3)

22.

a. b.

qualitative nominal

(LO1-4) (LO1-5)

23.

a. b.

qualitative nominal

(LO1-4) (LO1-5)

(LO1-3) quantitative continuous ratio

(LO1-4) (LO1-4) (LO1-5)

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24.

a. b. c. d.

A sample is used because it is difficult to locate every student. A population is employed because the information is easy to find. A population is used because the information is easy to find. A sample works because it is difficult to locate every musical. (LO1-3)

25.

a. b. c. d. e. f. g. h. i.

discrete, quantitative, ratio discrete, qualitative, nominal discrete, quantitative, ratio discrete, qualitative, nominal continuous, quantitative, interval continuous, quantitative, interval discrete, qualitative, ordinal discrete, qualitative, ordinal discrete, quantitative, ratio (LO1-4 & 1-5)

26.

Qualitative: Company, Industry, Established, Public, Parent, Physical rating, Cafeteria, and on site fitness Quantitative: Full time, Part time, % Contract, and Starting vacation (LO1-4) Nominal: Company, Industry, Established, Public, Parent, Cafeteria, on-site fitness Ordinal: Physical rating Ratio: Full time, Part time, % Contract, and Starting vacation (LO1-5)

a. b.

28.

Qualitative: region Quantitative: average house prices (LO1-4) Nominal: region Ratio: average house prices (LO1-5) Qualitative: Team name, Country, Star power. Quantitative: FMV worth, Revenue, Temperature, Total Snow, Average Attendance, Post season, Appearance in the cup, Cup wins, 2019/2020 season points (LO1-4) Nominal: Team name, Country Ordinal: Star power Interval: Temperature Ratio: FMV worth, Revenue Total Snow, Average attendance, Post Season, Appearances in the Cup, Cup wins, 2019/2020 Points. (LO1-5)

CHAPTER 2 DESCRIBING DATA: FREQUENCY DISTRIBUTIONS AND GRAPHIC PRESENTATION

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Maxwell Heating & Air Conditioning far exceeds the other corporations in sales. Mancell Electric & Plumbing and Mizelle Roofing & Sheet Metals are the two corporations with the least amount of fourth quarter sales.

Maxwell has the highest sales, and Mizelle the lowest. (LO2-2) 2.

Three classes are needed, one for each player. (LO2-1)

There are four classes: winter, spring, summer, and fall. The relative frequencies are 0.1, 0.3, 0.4, and 0.2, respectively.

(LO2-1)

(LO2-2) b.

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Aboriginal Identity

Number

Relative Frequency

Percent

First Nations

851 560

0.608

60.8

Métis

451 795

0.323

32.3

Inuit

59 445

0.042

4.2

Other

26 475

0.019

1.9

Multiple identities

11 415

0.008

0.8

(LO2-1) c.

Aboriginal Identities in Canada 4.2% 1.9%

0.8%

First Nations Métis 32.3%

Inuit 60.8%

Others Multiple Identities

(LO22) 5.

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(LO2-2) b. Colour Bright white Metallic black Magnetic lime Tangerine orange Fusion red Total

Frequency 130 104 325 455 286 1300

Relative Frequency 0.10 0.08 0.25 0.35 0.22 1.00 (LO21)

Pie Chart for Frequency vs Colour 10% 22%

Bright white

Metallic black Magnetic lime 25%

Tangerine orange Fusion red

35%

(LO2-2)

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Student loan amounts for the current year is shown in the bar chart. From the chart, Susan Chan’s loan is the largest and Enrique Lopes’ is the lowest.

(LO2-2) 7.

2 5  32, 2 6  64 ; therefore 6 classes are recommended. (LO2-3)

25 = 32, 26 = 64 suggests 6 classes. i 

27 = 128, 28 = 256 suggests 8 classes. i 

10.

11.

12.

$29  $0  $4.83 . Use interval of $5. (LO2-3) 6 $567  $235  $41.5 . Use interval of $42 or 8

$45.

(LO2-3)

25 = 32, 26 = 64 suggests 6 classes.

i

a. b. c. d.

24 =16, 25 = 32, suggests 5 classes (31-25)/5 = 6/5 = 1.2 Use interval of 1.5 24 Units f Relative frequency 24 to under 25.5 2 0.125 25.5 to under 27 4 0.250 27 to under28.5 8 0.500 28.5 to under 30 0 0.000 30 to under 31.5 2 0.125 Total 16 1.000 The largest concentration is in the 27 up to 28.5 class (8).

24 = 16, 25 = 32, suggests 5 classes

129  42  14.5 . Use interval of 15 and start first class at 40. (LO2-3) 6

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(LO2-3)

b. c. d.

13.

14.

b. c.

47/5 = 9.4 Use interval of 10. 50 Oil changes f Relative frequency 50 to under 60 4 0.20 60 to under 70 5 0.25 70 to under 80 6 0.30 80 to under 90 2 0.10 90 to under 100 3 0.15 Total 20 1.00 The fewest number is about 50, the highest about 100. The greatest concentration is in classes 60 up to 70 and 70 up to 80. (LO2-3) Number of Shoppers f 0 to under 3 9 3 to under 6 21 6 to under 9 13 9 to under 12 4 12 to under 15 3 15 to under 18 1 Total 51 The largest group of shoppers (21) shop at BiLo Supermarket 3, 4 or 5 times during a month and only one customer visits the store as many as 15 times in a month. Number of Relative Shoppers Frequency 0 to under 3 0.1765 3 to under 6 0.4118 6 to under 9 0.2549 9 to under 12 0.0784 12 to under 15 0.0588 15 to under 18 0.1960 Total 1.0000 (LO2-3) An interval of 10 is more convenient to work with. The distribution using 10 is: $ Spent f 15 to under 25 1 25 to under 35 2 35 to under 45 5 45 to under 55 10 55 to under 65 15 65 to under 75 4 75 to under 85 3 Total 40 Data tends to cluster in classes 45 up to 55 and 55 up to 65. Based on the distribution, the least spent is $15 (actually $18 from the raw data). The most spent was less than $85. The largest concentration of spending is between $45 up to $65. $ Spent Relative Frequency 15 to under 25 0.025

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25 to under 35 35 to under 45 45 to under 55 55 to under 65 65 to under 75 75 to under 85 Total 15.

16.

17.

0.050 0.125 0.250 0.375 0.100 0.075 1.000

(LO2-3)

a. b. c. d. e. f. g.

Histogram 100 5 28 0.28 12.5 13

(LO2-4)

a. b. c. d. e.

3 approximately 27 84 2 frequency polygon

(LO2-4)

a. b. c.

50 1.5 (thousands) or 1500 miles Using lower limits on the X-axis

d. e.

1.5, 5

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f. The frequent flier miles for most of the employees are between 6000-9000 and they are evenly spread on both sides of the graphs. (LO2-4) 18.

a. b. c. d.

40 2.5 2.5, 6 (always draw a frequency polygon using the midpoints)

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19.

20.

21.

Most orders take around 10-15 days.

a. b. c. d. e. f.

40 5 11 or 12 about $20 per hour about $9 per hour about 75%

a. b. c. d. e. f.

200 50 or $50,000 approximately $190,000 about $230,000 about 90 homes about 140 homes

a. b.

5 Frequent Flier Miles 0 to under 3 3 to under 6 6 to under 9 9 to under 12 12 to under 15

(LO2-4)

(LO2-5)

Frequency 5 12 23 8 2

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Less than Cumulative Frequency 5 17 40 48 50

22.

about 8500 miles

(LO2-5)

Frequent Flier Miles 0 to under 3 3 to under 6 6 to under 9 9 to under 12 12 to under 15

Frequency 5 12 23 8 2

about 7500 miles

(LO2-5)

a. b.

13, 25 Lead Time

More than Cumulative Frequency 50 45 33 10 2

23.

Frequency

Less than Cumulative Frequency

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0 to under 5 5 to under 10 10 to under 15 15 to under 20 20 to under 25

6 7 12 8 7

6 13 25 33 40

About 14 days

(LO2-5)

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24.

Lead Time Frequency 0 to under 5 6 5 to under 10 7 10 to under 15 12 15 to under 20 8 20 to under 25 7

More than Cumulative Frequency 40 34 27 15 7

About 18 days

a. b. c.

621 to 629 5 621, 623, 623, 627, 629

a. b. c.

210 to 219 6 210, 211, 213, 215, 217, 219

27.

a. b. c. d. e. f. g. h. i.

25 1 38, 106 60, 61, 63, 63, 65, 65, 69 No values 9 9 76 16 (LO2-8)

28.

a. b. c. d. e.

50 1 270, 126 155, 158, 159 No values

25.

26.

(LO2-5)

(LO2-8)

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29.

30.

31.

32.

f. g. h. i.

13 12 193.5 19

Stem 0 1 2 3 4 5

Leaf 5 28

Stem 3 4 5 6 7 8 9

Leaf 6 7 22499 0113458 035678 0344447 055 The daily usage ranged from 36 to 95. In a typical day the ATM is typically used between 52-87 times, the smallest was 36, the largest was 95, and clustered between 52-87 times. (LO2-8)

(LO2-8)

0024789 12366 2 There were a total of 16 calls studied. The number of calls received ranged from 5 to 52. Typical was 30-39 calls, smallest was 5, and largest was 52. (LO2-8)

a. Qualitative variables are ordinarily nominal level of measurement, but some are ordinal. Quantitative variables are commonly of interval or ratio level of measurement. b. Yes, both types depict samples and populations. (LO2-1&3) a.

(LO2-2)

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Pie Chart of preference vs Activity 8% 21%

Planned 26%

Non-planned Unsure No Answer 45%

(LO 2-2) c.

Both are readable, but the pie chart may be easier to comprehend. 2)

33.

2 6  64 and 2 7  128 suggest 7 classes. (LO2-3)

34.

27 = 128, 28 = 256 suggests 8 classes. i 

(LO2-

490  56  54.25 . Use the interval of 55. 8

(LO2-3) 35.

A pie chart is also acceptable. From the graph we can see that insurance and license fees are the highest expense at close to $1500 per year. (LO2-2)

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36.

(LO2-2) 37.

Business School Expenses Professional development

8.6%

Equipment 10.9%

32.3%

Mileage

12.1%

PAC meetings Office supplies

12.6% 23.5%

Other

Professional development is the largest expense. (LO2-2)

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38.

(LO 2-2) 39.

(LO2-2) 40.

Canada won the most medals in 2018 at 29, but 2014 and 2010 are a very close second with 25 and 26 medals won.

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(LO 2-2) 41.

Grades 7.1% 7.1%

Over 90% 19.0% 28.6%

80-89% 70-79% 60-69%

Below 60%

38.1%

The largest group had grades between 70 and 79% (38.1%). Three students (7.1%) had grades at 90% or more and 3 students (7.1%) had grades less than 60%. (LO 2-2) 42. Class Frequency 0 to under 200 19 200 to under 400 1 400 to under 600 4 600 to under 800 1 800 to under 1000 2

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This distribution is skewed with a large number of observations in the first class. Notice that the top 19 tunes account for 1318 plays out of a total of 5958 or about 70% of all plays. (LO2-3) 43. City Vancouver Calgary Edmonton Saskatoon

Frequency Relative Frequency 100 0.050 450 0.225 1300 0.650 150 0.075 2000 The preference among frequent business travelers is definitely Edmonton (65%). The least preferred is Vancouver (5%). (LO 2-3) 44.

Newcastle Inc. Sales Revenue 3%

Operating Expenses Dividends

11%

Interest Profit 73%

Sinking Fund

By far the largest part of sales revenue goes towards operating expenses. (LO22) 45.

4 5 5 because 2  16  25 and 2  32  25

i

c. d.

15 Class 15 to under 22 22 to under 29 29 to under 36 36 to under 43 43 to under 50

48  16  6.4 use interval of 7. 5

Frequency 3 8 7 5 2 25 e. The distribution is skewed with most of the values are clustered between 22 and 36. (LO2-3)

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46.

There will be many answers. The following pie chart shows the breakdown of the six colours. About 77% of the candies are either brown, yellow, or red. Each of these colours represents about 25% of the total. The percent of orange and blue is less than 10% each. About 4% of the candies are green.

M&M Colours in a 500g Bag 9.7%

Brown

24.8%

9.2%

Yellow 4.0%

Red Green Blue

23.5%

Orange

28.7%

(LO22) 47.

48.

49.

a. b. c. d. e. f. g. h.

70 1 0, 145 30, 30, 32, 39 24 21 77.5 25

6 because 2 = 32 < 45 and 2 = 64 > 45

90, found by

c. d.

40 Class 40 to under 130 130 to under 220 220 to under 310 310 to under 400 400 to under 490 490 to under 580

a. b. c.

(LO2-6)

570  41  88.17 6 Frequency 6 10 17 8 3 1 45

$36.60, (found by 265 – 82)/5 $40 Class Frequency

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(LO2-4)

50.

80 to under 120 8 120 to under 160 19 160 to under 200 10 200 to under 240 6 240 to under 280 1 Total 44 The purchases ranged from a low of about $80 to a high of about $280. The concentration is in the $120 to under $160 class. (LO2-3) Student Chequing Accounts End of Month Balances

Balance f CF 0 to under 100 9 9 100 to under 200 6 15 200 to under 300 6 21 300 to under 400 6 27 400 to under 500 5 32 500 to under 600 2 34 600 to under 700 1 35 700 to under 800 3 38 800 to under 900 1 39 900 to under 1000 1 40 Total 40 Probably a class interval of $200 would be better. b.

c. d. 51.

About 67% have less than a $400 balance. Therefore, about 33% would be considered “preferred.” Approximately $50 would be a convenient cutoff point. (LO2-3) Since 2  64  70  128  2 , 7 classes are recommended. The interval should be at least (1002.2  3.3)/7 = 142.7; use 150 as a convenient value. 6

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