Suppose that the average number of miles that a car is driven in the first three years is 41,500. To determine whetheleased cars are driven more than "average", 25 leased cars were sampled and the average number of miles on theleased cars was 43,780 with a standard deviation of 10,520. To determine whether the average number of miles onleased cars is statistically significantly greater than the number of miles on other cars (using the 5% level ofsignificance), what is the critical value? (please round your answer to 3 decimal places)

Here n = 25 and x-bar = 43780, s = Sample SD = 10520 Now since Population SD is not known, we use t…

Answered: Suppose that the average number of…

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 12P

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Assume you have asked your data folks to determine the relationship between customer service scores (i.e. the ratings provided by customers in response to a survey) and profit. The analyst reports the following: "I gathered data for the last 48 months and ran a regression where profit in a given month is the dependent variable and customer service score in that same month is the independent variable. I found an intercept of $10,000 (p-value: 0.31) and the coefficient on customer service score is $1,200 (p-value: 0.22). The R-2 (which is appropriate when there is just one independent variable) is 0.07." What do you infer from the results (two to three sentences, sticking to the information provided) and why?
The table below shows the number of cars sold last month by seven employees at Concord Motors and their number of years of sales experience. Experience Sales 8 6 17 1 2 2 4 LO 5 6 8 14 19 13 10 Management would like to use simple regression analysis to estimate monthly car sales using the number of years of sales experience. The 95% confidence interval for the regression slope is (-1.842, 3.158) (0.408, 0.908) (0.058, 1.258) (0.481, 1.797)
A sample of 5 months of sales data provided the following information. Month 1 2 3 4 5 Units Sold 96 101 82 90 96 (a) Develop a point estimate of the population mean number of units sold per month. 93 Correct: Your answer is correct. (b) Develop a point estimate of the population standard deviation. (Round your answer to two decimal)
A simple random sample of 5 months of sales data provided the following information: a. Develop a point estimate of the population mean number of units sold per month. b. Develop a point estimate of the population standard deviation.
If a company knows that the EVPI= $85,000 and the efficiency of the sample is 27%, and the cost for conducting the survey is 5,000 and EMV is three times the price then the expected value of sample information is:
The Port Authority sells a wide variety of cables and adapters for electronic equipment online. Last year the mean value of orders placed with the Port Authority was 47.28, and management wants to assess whether the mean value of orders placed to date this year is the same as last year. The values of a sample of 49,896 orders placed this year are collected and recorded in the tile PortAuthority. a. Formulate hypotheses that can be used to test whether the mean value of orders placed this year differs from the mean value of orders placed last year. b. Use the data in the file PortAuthority to conduct your hypothesis test. What is the p value for your hypothesis test? At = 0.01, what is your conclusion?
According to the National Automobile Dealers Association, the mean price for used cars is 10,192. A manager of a Kansas City used car dealership reviewed a sample of 50 recent used car sales at the dealership in an attempt to determine whether the population mean price for used cars at this particular dealership differed from the national mean. The prices for the sample of 50 cars are shown in the tile named UsedCars. a. Formulate the hypotheses that can be used to determine whether a difference exists in the mean price for used cars at the dealership. b. What is the p value? c. At = 0.05, what is your conclusion?
Jensen Tire Auto is deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars). a. Develop a scatter chart with weekly usage hours as the independent variable. What does the scatter chart indicate about the relationship between weekly usage and annual maintenance expense? b. Use the data to develop an estimated regression equation that could be used to predict the annual maintenance expense for a given number of hours of weekly usage. What is the estimated regression model? c. Test whether each of the regression parameters 0 and 1 is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? d. How much of the variation in the sample values of annual maintenance expense does the model you estimated in part (b) explain? e. If the maintenance contract costs 3,000 per year, would you recommend purchasing it? Why or why not?
Mileage tests are conducted for a particular model of automobile. If a 98% confidence interval with a margin of error of 1 mile per gallon is desired, how many automobiles should be used in the test? Assume that preliminary mileage tests indicate the standard deviation is 2.5 miles per gallon. Round your answer up to the nearest whole number.
Curry Rubber manufactures rubber bands for retail companies. The accounting manager has performed a regression analysis of past data. You notice that the formula has an R-squared of 0.68, a t-value of 2.2, and a standard error of the estimate of $218,200. The estimate for next quarter costs is $2,597,623. Calculate Standard Error as a % of predicted total cost which represents a measure of precision of his regression analysis? (Round your answer to one decimal place, i.e., 0.052 = 5.2%.)
1. Data: Lower control limit = 30, upper control limit = 33; overall sample mean = 31, standard deviation = 0.5. Calculate Cpk using z=3. Is the process capable? What is the Cpk? Yes, 1.33 No, 1.33 Yes, 0.67 No, 0.67 2. A machine costs $102,000 with a projected annual operating and maintenance cost of $10,000 and a salvage value of $36,000 after 3 years. If the cash flows are discounted annually at 12 percent what is the NPV? A. $2,361 B. -$100,378 C. -$121,987 D. -$48,271
A marketing professor at Givens College is interested in the relationship between hours spent studying and total points earned in a course. Data collected on 156 students who took the course last semester are provided in the tile MktHrsPts. Develop a scatter chart for these data. What does the scatter chart indicate about the relationship between total points earned and hours spent studying? Develop an estimated regression equation showing how total points earned is related to hours spent studying. What is the estimated regression model? Test whether each of the regression parameters β0 and β1 is equal to zero at a 0.01 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? How much of the variation in the sample values of total point earned does the model you estimated in part (b) explain? Mark Sweeney spent 95 hours studying. Use the regression model you estimated in part (b) to predict the total points Mark earned.

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