An article gave the following data on median worker pay (in thousands of dollars) and the 1-year percent change in stock price for the 13 highest paying companies in the United States. Company Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8. Company 9 Company 10 Company 11 Company 12 Company 13 Median Worker Pay 134.7 USE SALT 132.2 125.0 122.8 122.5 121.2 121.2 119.0 118.0 118.0 117.6 117.4 115.1 Percent Change in Stock Price 21.5 92.4 34.0 52.0 41.8 2.7 5.0 30.2 8.1 37.5 15.7 21.8 -44.8 (a) Construct a scatterplot for these data. Percent Change Percent Change Percent Change Percent Change in Stock Price in Stock Price in Stock Price in Stock Price 80 80 60 60 40 40 L = K² K² K Median 20 20 Worker ........ Worker 115 120 125 130 135 140 115 120 125 130 135 140 115 120 125 130 135 140 115 120 125 130 135 140 -20 Pay O -40 80 60 40 20 -20 -40 (b) Calculate the value of the correlation coefficient. (Round your answer to four decimal places.) Median Worker Pay Interpret the correlation coefficient. O There is a moderate, positive association between the percent change in stock price and median worker pay. O There is a moderate, negative association between the percent change in stock price and median worker pay. O There is a weak, positive association between the percent change in stock price and median worker pay. O There is no association between the percent change in stock price and median worker pay. O There is a weak, negative association between the percent change in stock price and median worker pay. DO 80 60 40 20 -20 -40 Median Pay DO -20 -40 (c) The article states that companies that pay more are seeing a payoff in their stock performance. Is this conclusion justified based on these data? Explain. O The conclusion is justified based on these data because there is a negative association suggesting that in general, as median worker pay increases, so does the percent change in stock price. O The conclusion is not justified based on these data because there is a negative association suggesting that in general, as median worker pay increases, the percent change in stock price decreases. The conclusion is justified based on these data because there is a positive association suggesting that in general, as median worker pay increases, so does the percent change in stock price. O The conclusion is not justified based on these data because there is no association between the variables. O The conclusion is not justified based on these data because there is a positive association suggesting that in general, as median worker pay increases, the percent change in stock price decreases. (d) Is it reasonable to generalize conclusions based on these data to the population of all companies in the United States? Explain why or why not. O The companies do not represent a random sample of companies from the population of all U.S. companies. Therefore, it is not reasonable to generalize the results to all companies in the U.S. O The companies represent a random sample of companies from the population of all U.S. companies. Therefore, it is reasonable to generalize the results to all companies in the U.S. O The strength the of the association is strong enough to allow one to generalize the results to all companies in the U.S. O The companies represent a random sample of companies from the population of all U.S. companies. Therefore, it is not reasonable to generalize the results to all companies in the U.S. The companies do not represent a random sample of companies from the population of all U.S. companies. Therefore, it is reasonable to generalize the results to all companies in the U.S. Median Worke Pay

An article gave the following data on median worker pay (in thousands of dollars) and the 1-year percent change in stock price for the 13 highest paying companies in the United States. Company Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8. Company 9 Company 10 Company 11 Company 12 Company 13 Median Worker Pay 134.7 USE SALT 132.2 125.0 122.8 122.5 121.2 121.2 119.0 118.0 118.0 117.6 117.4 115.1 Percent Change in Stock Price 21.5 92.4 34.0 52.0 41.8 2.7 5.0 30.2 8.1 37.5 15.7 21.8 -44.8 (a) Construct a scatterplot for these data. Percent Change Percent Change Percent Change Percent Change in Stock Price in Stock Price in Stock Price in Stock Price 80 80 60 60 40 40 L = K² K² K Median 20 20 Worker ........ Worker 115 120 125 130 135 140 115 120 125 130 135 140 115 120 125 130 135 140 115 120 125 130 135 140 -20 Pay O -40 80 60 40 20 -20 -40 (b) Calculate the value of the correlation coefficient. (Round your answer to four decimal places.) Median Worker Pay Interpret the correlation coefficient. O There is a moderate, positive association between the percent change in stock price and median worker pay. O There is a moderate, negative association between the percent change in stock price and median worker pay. O There is a weak, positive association between the percent change in stock price and median worker pay. O There is no association between the percent change in stock price and median worker pay. O There is a weak, negative association between the percent change in stock price and median worker pay. DO 80 60 40 20 -20 -40 Median Pay DO -20 -40 (c) The article states that companies that pay more are seeing a payoff in their stock performance. Is this conclusion justified based on these data? Explain. O The conclusion is justified based on these data because there is a negative association suggesting that in general, as median worker pay increases, so does the percent change in stock price. O The conclusion is not justified based on these data because there is a negative association suggesting that in general, as median worker pay increases, the percent change in stock price decreases. The conclusion is justified based on these data because there is a positive association suggesting that in general, as median worker pay increases, so does the percent change in stock price. O The conclusion is not justified based on these data because there is no association between the variables. O The conclusion is not justified based on these data because there is a positive association suggesting that in general, as median worker pay increases, the percent change in stock price decreases. (d) Is it reasonable to generalize conclusions based on these data to the population of all companies in the United States? Explain why or why not. O The companies do not represent a random sample of companies from the population of all U.S. companies. Therefore, it is not reasonable to generalize the results to all companies in the U.S. O The companies represent a random sample of companies from the population of all U.S. companies. Therefore, it is reasonable to generalize the results to all companies in the U.S. O The strength the of the association is strong enough to allow one to generalize the results to all companies in the U.S. O The companies represent a random sample of companies from the population of all U.S. companies. Therefore, it is not reasonable to generalize the results to all companies in the U.S. The companies do not represent a random sample of companies from the population of all U.S. companies. Therefore, it is reasonable to generalize the results to all companies in the U.S. Median Worke Pay

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter12: Probability

Section12.3: Conditional Probability; Independent Events; Bayes' Theorem

Problem 81E

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