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The “lucky store effect” in lottery ticket sales. In the American Economic Review (Vol. 98, 2008), University of Chicago researchers investigated the lucky store effect theory in lottery ticket sales, i.e., the theory that a lottery retail store that sold a large-prize-winning ticket will experience greater ticket sales the following week. The researchers examined the weekly ticket sales of all 24,400 active lottery retailers in Texas. The analysis showed that "the week following the sale of [a winning Lotto Texas ticket], the winning store experiences a 12 to 38 percent relative sales increase. . . . ”Consequently, the researchers project that future winning lottery retail stores will experience the lucky store effect. Is this study an example of
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Chapter 1 Solutions
Statistics for Business and Economics (13th Edition)
- Westminster Financial has released a summary of investment package information from the past fiscal year. During that time, Westminster provided a choice of several pre-designed investment packages. Westminster classified the packages into three categories according to riskiness. We're interested in the possible relationship between the age of an investor and the riskiness of the investment package she chose. So, there are two variables under consideration: age of Westminster investor ("under 35", "35-49", or "50+") and riskiness of investment choice ("risky", "moderate/mixed", or "conservative"). The contingency table below gives a summary of the information released by Westminster regarding age and riskiness of investment package for a random sample of 150 investors. Each cell of the table contains three numbers: the first number is the observed cell frequency (fo); the second number is the expected cell frequency (f) under the assumption that there is no relationship between the two…arrow_forwardIs it possible to predict the annual number of business bankruptcies by the number of firm births (business starts) in the United States? The following data published by the U.S. Small Business Administration, Office of Advocacy, are pairs of the number of business bankruptcies (1,000s) and the number of firm births (10,000s) for a six-year period. Business Bankruptcies (1,000) 34.3 Firm Births (10,000) 58.1 35.0 55.4 38.5 57.0 40.1 58.5 35.5 57.4 37.9 58.0 i) Based on the output given, use these data to develop the equation of the regression model to predict the number of business bankruptcies by the number of firm births. ii) Explain the values of r and r. iii) Predict the number of business bankruptcies if the number of firm births is 54.0 (10,000s). iv) Do the data support the existence of a linear relationship between the number of firm births and the number of business bankruptcies? Test using a = 0.05. OUTPUT Model Summary Std. Error of the Estimate Adusted R Model R R Square…arrow_forwardDiabetes and unemployment. A 2012 Gallup poll surveyed Americans about their employment status and whether or not they have diabetes. The survey results indicate that 1.5% of the 47,774 employed (full or part time) and 2.5% of the 5,855 unemployed 18-29 year olds have diabetes.60 (a) Create a two-way table presenting the results of this study.arrow_forward
- A health policy economist interested in investigating the relationship between the cost of prescription drugs in Canada and the cost of prescription drugs in the United States has information from a random sample of 48 prescription drugs sold in both countries. For each of these drugs, the economist is examining two pieces of information: the average cost of a one-month supply of the drug in Canada, and the average cost of a one-month supply of the drug in the United States. For the sample of drugs examined, the sample correlation coefficient r relating these two pieces of information is 0.33. Test for a significant linear relationship between the two variables average prescription drug cost in Canada and average prescription drug cost in the United States by doing a hypothesis test regarding the population correlation coefficient p. (Assume that the two variables have a bivariate normal distribution.) Use the 0.05 level of significance, and perform a two-tailed test. Then complete the…arrow_forwardClassify each scenario as a meta-analysis or a case study. a. An economist studies the various factors that could make it more likely for people to remain in their current jobs. b. A researcher collects data from previous studies on the price of auto insurance premiums in a particular state over the past 10 years. c. A food scientist examines the factors that influence the intensity of heat that is released from burning charcoal in an outdoor grill. d. A researcher analyzes 15 previous studies about the most effective long term weight loss strategies.arrow_forward4. Straight As now, healthy later A study by Pamela Herd of the University of Wisconsin-Madison found a link between high-school grades and health. Analyzing data from the Wisconsin Longitudinal Study, which has tracked the lives of thousands of Wisconsin high-school graduates from the class of 1957, Herd found that students with higher grade-point averages were more likely to say they were in excellent or very good health in their early 60s. Does this mean people will live healthier lives if they increase their GPA? Explain.47arrow_forward
- Brookdale College is conducting a study to determine the patterns in the number of degrees it has been awarding to students in different majors over the past 11 years. The data for some of these majors are shown in the table. Horticulture Auto Engineer Technology Business Administration Dental Hygiene Nursing ✔ Auto Engineer Technology ✔Business Administration Dental Hygiene Nursing 1999 2000 16 Auto Engineer Technology prediction Business Administration prediction Dental Hygiene prediction Nursing prediction 10 161 60 70 25 12 149 49 74 2001 2002 2003 21 16 136 46 63 15 12 93 46 62 20 10 106 34 55 2004 2005 20 9 89 44 64 14 13 81 39 64 2006 520 16 14 63 48 104 2007 2008 2009 12 12 50 46 147 12 20 59 44 155 6 27 50 41 (a) Decide for which of these majors there is a significant level of correlation and for which there is little or no correlation. (Select all the majors with a significant level of correlation.) Horticulture 146 (b) For those majors for which there is a significant level…arrow_forwardThe St. Lucian Government is interested in predicting the number of weekly riders on the public buses using the following variables: • Price of bus trips ~er week • The population in the city • The monthly income of riders • Average rate to park your personal vehicle Number of weekly riders 192,000 Population of city 1,800,000 1,790,000 Price per week Monthly income of riders Average parking rates per month City $15 $5,800 $50 $6,200 $50 190,400 191,200 $15 $15 1,780,000 $6,400 $60 4 $25 $6,500 $60 177,600 176,800 1,778,000 1,750,000 1,740,000 5 $25 $6,550 $60 6. 178,400 $25 $6,580 $70 7 180,800 $25 1,725,000 $8,200 $75 175,200 174,400 $30 $30 1,725,000 $8,600 $8,800 8 $75 9. 1,720,000 $75 10 173,920 $30 1,705,000 $80 $9,200 $9,630 $10,570 $11,330 $11,600 S11,800 $11,830 $12,650 S13.000 1,710,000 1,700,000 11 172,800 163,200 $30 $80 12 $40 $80 13 161,600 $40 1,695,000 1,695,000 1,690,000 $85 14 161,600 160,800 $40 $100 15 $40 $105 1,630,000 1,640,000 1,635,000 16 159,200 $40 $105 17…arrow_forwardSocial media provides an enormous amount of data about the activities and habits of people using social platforms like Face book and Twitter. The belief is that mining that data provides a treasure trove for those who seek to quantify and predict future human behavior. A marketer is planning a survey of Internet users in the United States to determine social media usage. The objective of the survey is to gain insight on these three items: key social media platforms used, frequency of social media usage, and demographics of key social media platform users. a. For each of the three items listed, indicate whether the variables are categorical or numerical. If a variable is numerical, is it dis crete or continuous? b. Develop five categorical questions for the survey. c. Develop five numerical questions for the survey.arrow_forward
- 5h. David's Landscaping has collected data on home values (in thousands of $) and expenditures (in thousands of $) on landscaping with the hope of developing a predictive model to help marketing to potential new clients. Data for 14 households may be found in the file Landscape. HomeValue($1,000) LandscapingExpenditures($1,000) 242 8.1 321 10.8 198 12.2 340 16.2 300 15.6 400 18.9 800 23.5 200 9.5 521 17.5 547 22.0 437 12.1 464 13.5 635 17.9 356 13.9 (c) Use the least squares method to develop the estimated regression equation. (Let x = home value (in thousands of $), and let y = landscaping expenditures (in thousands of $). Round your numerical values to five decimal places.) ŷ = (d) For every additional $1,000 in home value, estimate how much additional will be spent (in $) on landscaping. (Round your answer to the nearest cent.) $ (e) Use the equation estimated in part (c) to predict the landscaping expenditures (in $) for a…arrow_forwardA company conducted a survey of its employees to collect information about the travel time of the employees from their homes towards its offices. In response to the question on commute, 60% said they travelled one hour per day, 25% reported they travelled two hours per day, and 15% reported they travelled three hours per day. The next year, upon observing changes in the condition of the roads and the number of commuters travelling on a regular basis, the company again conducted a survey to check for the travel time of the employees. The following data were gathered: Based on the data, is there evidence of a shift in the distribution of responses to the travel time question a year after initial question was made? Run the test at a 5% level of significance.arrow_forwardThe London School of Economics and the Harvard Business School have conducted studies of how chief executive officers (CEOS) spend their time. These studies have found that CEOS spend many hours per week in meetings, not including conference calls, business meals, and public events (The Wall Street Journal). Shown below is the time spent per week in meetings (hours) for a sample of 25 CEOS. 21 23 18 22 19 22 15 19 14 14 18 16 20 17 17 16 23 18 12 13 19 12 22 21 22 a. What is the least amount of time spent per week on meetings? The highest? b. Use a class width of two hours to prepare a frequency distribution and a percent frequency distribution for the data. Round your answers to the nearest whole number. If your answer is zero, enter "0". Hours in Meetings per Percent week Frequency Frequency 11 - 12 13 14 15 - 16 17 18 19 20 21 22 23 - 24 Total * * * * * * * * ***** xx % % % % % % % %arrow_forward
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin HarcourtHolt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
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