Essential Statistics
2nd Edition
ISBN: 9781259570643
Author: Navidi
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 1, Problem 1CQ
Provide an example of a qualitative variable and an example of a quantitative variable.
Expert Solution & Answer
To determine
Give examples for qualitative and quantitative variables.
Answer to Problem 1CQ
The variable “Last model of car sold by a particular car dealer” is qualitative.
The variable “number of points scored in a football game” is quantitative.
Explanation of Solution
Qualitative variables:
Qualitative variables are the variables where the individuals are classified based on characteristics or categories such as male, female, eye color and left handed or right handed.
Quantitative variables:
Quantitative variables basically represent numerical values of individuals such as income, age, height and weight. It conveys how much or how many of something is given.
Example for qualitative variable:
“Last model of car sold by a particular car dealer”.
Here, the given variable is qualitative because it represents the categories of car model sold by a particular car dealer.
Thus, the variable “Last model of car sold by a particular car dealer” is qualitative.
Example for quantitative variable:
“Number of points scored in a football game.”
Here, the variable “number of points scored in a football game” is quantitative because it tells how much or many points were scored in a football game. Also, the variable is expressed in terms of numbers and not in terms of categories.
Thus, the variable “number of points scored in a football game” is quantitative.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Business discuss
You have been hired as an intern to run analyses on the data and report the results back to Sarah; the five questions that Sarah needs you to address are given below.
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship.
Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. (In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size).
Include the manufacturer dummy variable (Samsung=1, 0 otherwise) and estimate the relationship between screen size, price and manufacturer dummy as a multiple linear regression model.
Interpret the…
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship. How to take snapshots: if you use a MacBook, press Command+ Shift+4 to take snapshots. If you are using Windows, use the Snipping Tool to take snapshots.
Question 1: Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Value of correlation coefficient:
Direction of the relationship (positive, negative, or zero relationship):
Strength of the relationship (strong/moderate/weak):
Question 2: Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size. (The answer for the…
Chapter 1 Solutions
Essential Statistics
Ch. 1.1 - 1. A pollster wants to estimate the proportion of...Ch. 1.1 - Prob. 2CYUCh. 1.1 - 3. A radio talk-show host invites listeners to...Ch. 1.1 - 4. Every 10 years, the U.S. Census Bureau attempts...Ch. 1.1 - 5. A public health researcher is designing a study...Ch. 1.1 - 6. A college basketball team held a promotion at...Ch. 1.1 - Prob. 7ECh. 1.1 - In Exercises 7–12, fill in each blank with the...Ch. 1.1 - In Exercises 7–12, fill in each blank with the...Ch. 1.1 - In Exercises 7–12, fill in each blank with the...
Ch. 1.1 - In Exercises 7–12, fill in each blank with the...Ch. 1.1 - In Exercises 7–12, fill in each blank with the...Ch. 1.1 - In Exercises 13–16, determine whether the...Ch. 1.1 - In Exercises 13–16, determine whether the...Ch. 1.1 - In Exercises 13–16, determine whether the...Ch. 1.1 - In Exercises 13–16, determine whether the...Ch. 1.1 - Prob. 17ECh. 1.1 - In Exercises 17–20, determine whether the number...Ch. 1.1 - Prob. 19ECh. 1.1 - In Exercises 17–20, determine whether the number...Ch. 1.1 - Prob. 21ECh. 1.1 - Prob. 22ECh. 1.1 - Prob. 23ECh. 1.1 - Prob. 24ECh. 1.1 - Prob. 25ECh. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - In Exercises 25–36, identify the kind of sample...Ch. 1.1 - 39. You’re giving me a headache: A pharmaceutical...Ch. 1.1 - 40. Pay more for recreation? The director of the...Ch. 1.1 - Prob. 41ECh. 1.1 - 42. Quality control: Products come off an assembly...Ch. 1.1 - 43. On-site day care: A large company wants to...Ch. 1.1 - Prob. 44ECh. 1.1 - 45. Draw a sample: Imagine that you are asked to...Ch. 1.1 - Prob. 46ECh. 1.2 - 1. A pollster asks a group of six voters about...Ch. 1.2 - Prob. 2CYUCh. 1.2 - Prob. 3CYUCh. 1.2 - Prob. 4CYUCh. 1.2 - Prob. 5ECh. 1.2 - Prob. 6ECh. 1.2 - Prob. 7ECh. 1.2 - Prob. 8ECh. 1.2 - Prob. 9ECh. 1.2 - Prob. 10ECh. 1.2 - Prob. 11ECh. 1.2 - In Exercises 11–14, determine whether the...Ch. 1.2 - In Exercises 11–14, determine whether the...Ch. 1.2 - In Exercises 11–14, determine whether the...Ch. 1.2 - Prob. 15ECh. 1.2 - In Exercises 15–24, determine whether the data...Ch. 1.2 - Prob. 17ECh. 1.2 - In Exercises 15–24, determine whether the data...Ch. 1.2 - In Exercises 15–24, determine whether the data...Ch. 1.2 - In Exercises 15–24, determine whether the data...Ch. 1.2 - Prob. 21ECh. 1.2 - In Exercises 15–24, determine whether the data...Ch. 1.2 - Prob. 23ECh. 1.2 - In Exercises 15–24, determine whether the data...Ch. 1.2 - Prob. 25ECh. 1.2 - In Exercises 25–32, determine whether the data...Ch. 1.2 - Prob. 27ECh. 1.2 - In Exercises 25–32, determine whether the data...Ch. 1.2 - Prob. 29ECh. 1.2 - Prob. 30ECh. 1.2 - Prob. 31ECh. 1.2 - In Exercises 25–32, determine whether the data...Ch. 1.2 - Prob. 33ECh. 1.2 - In Exercises 33–40, determine whether the data...Ch. 1.2 - Prob. 35ECh. 1.2 - In Exercises 33–40, determine whether the data...Ch. 1.2 - Prob. 37ECh. 1.2 - In Exercises 33–40, determine whether the data...Ch. 1.2 - Prob. 39ECh. 1.2 - In Exercises 33–40, determine whether the data...Ch. 1.2 - Working with the Concepts
41. Ringtones: Following...Ch. 1.2 - 42. More Ringtones: The following table presents...Ch. 1.2 - 43. How’s the economy? A poll conducted by the...Ch. 1.2 - 44. Global warming: A recent Pew poll asked people...Ch. 1.2 - 45. Read any good books lately? According to Time...Ch. 1.2 - 46. Watch your language: According to...Ch. 1.2 - 47. Top ten PC games: Nielsen Media recently...Ch. 1.2 - 48. At the movies: The following table provides...Ch. 1.2 - Prob. 49ECh. 1.3 - 1. To study the effect of air pollution on...Ch. 1.3 - 2. It is known that drinking alcohol increases the...Ch. 1.3 - In a study conducted at the University of Southern...Ch. 1.3 - In a study conducted at the University of...Ch. 1.3 - In Exercises 5–10, fill in each blank with the...Ch. 1.3 - Prob. 6ECh. 1.3 - Prob. 7ECh. 1.3 - Prob. 8ECh. 1.3 - Prob. 9ECh. 1.3 - Prob. 10ECh. 1.3 - Prob. 11ECh. 1.3 - Prob. 12ECh. 1.3 - Prob. 13ECh. 1.3 - Prob. 14ECh. 1.3 - In Exercises 11–16, determine whether the...Ch. 1.3 - Prob. 16ECh. 1.3 - Prob. 17ECh. 1.3 - Prob. 18ECh. 1.3 - Prob. 19ECh. 1.3 - Prob. 20ECh. 1.3 - Prob. 21ECh. 1.3 - Prob. 22ECh. 1.3 - 23. Taxicabs and crime: A sociologist discovered...Ch. 1.3 - Prob. 24ECh. 1.3 - Prob. 25ECh. 1.3 - Prob. 26ECh. 1.3 - Prob. 27ECh. 1.3 - Prob. 28ECh. 1.3 - Prob. 29ECh. 1.3 - Prob. 30ECh. 1.4 - Exercises 1 and 2 are the Check Your Understanding...Ch. 1.4 - Exercises 1 and 2 are the Check Your Understanding...Ch. 1.4 - Prob. 3ECh. 1.4 - Prob. 4ECh. 1.4 - Prob. 5ECh. 1.4 - Prob. 6ECh. 1.4 - In Exercises 6–8, determine whether the statement...Ch. 1.4 - Prob. 8ECh. 1.4 - In Exercises 9–16, specify the type of bias...Ch. 1.4 - In Exercises 9–16, specify the type of bias...Ch. 1.4 - In Exercises 9–16, specify the type of bias...Ch. 1.4 - In Exercises 9–16, specify the type of bias...Ch. 1.4 - In Exercises 9–16, specify the type of bias...Ch. 1.4 - In Exercises 9–16, specify the type of bias...Ch. 1.4 - Prob. 15ECh. 1.4 - In Exercises 9–16, specify the type of bias...Ch. 1.4 - Nuclear power, anyone? In a survey conducted by...Ch. 1.4 - Prob. 18ECh. 1.4 - Prob. 19ECh. 1.4 - Prob. 20ECh. 1.4 - Literary Digest poll: In the 1936 presidential...Ch. 1 - Provide an example of a qualitative variable and...Ch. 1 - Is the name of your favorite author a qualitative...Ch. 1 - True or false: Nominal variables do not have a...Ch. 1 - Prob. 4CQCh. 1 - Prob. 5CQCh. 1 - Prob. 6CQCh. 1 - Prob. 7CQCh. 1 - Prob. 8CQCh. 1 - True or false: An experiment where neither the...Ch. 1 - Prob. 10CQCh. 1 - Prob. 11CQCh. 1 - Prob. 12CQCh. 1 - Prob. 13CQCh. 1 - Prob. 14CQCh. 1 - Prob. 15CQCh. 1 - Prob. 1RECh. 1 - Prob. 2RECh. 1 - Discrete or continuous? Is the area of a college...Ch. 1 - Prob. 4RECh. 1 - In Exercises 5–8, identify the kind of sample that...Ch. 1 - In Exercises 5–8, identify the kind of sample that...Ch. 1 - Prob. 7RECh. 1 - In Exercises 5–8, identify the kind of sample that...Ch. 1 - Prob. 9RECh. 1 - Prob. 10RECh. 1 - Prob. 11RECh. 1 - Prob. 12RECh. 1 - In Exercises 13–15, explain why the results of the...Ch. 1 - In Exercises 13–15, explain why the results of the...Ch. 1 - In Exercises 13–15, explain why the results of the...Ch. 1 - Prob. 1WAICh. 1 - Prob. 2WAICh. 1 - Describe circumstances under which each of the...Ch. 1 - Prob. 4WAICh. 1 - Prob. 5WAICh. 1 - Prob. 6WAICh. 1 - Prob. 7WAICh. 1 - Prob. 9WAICh. 1 - Prob. 1CSCh. 1 - Prob. 2CSCh. 1 - Prob. 3CSCh. 1 - Prob. 4CSCh. 1 - Prob. 5CSCh. 1 - Prob. 6CSCh. 1 - Prob. 7CSCh. 1 - Prob. 8CSCh. 1 - Prob. 9CSCh. 1 - Prob. 10CSCh. 1 - Prob. 11CSCh. 1 - Air pollution is a serious problem in many places....
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- In this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0 given (under the measure P) by d.St 0.03 St dt + 0.2 St dwt, with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to price an option on this stock (which we name cubic put). This option is European-type, with maturity 3 months (i.e. T = 0.25 years), and payoff given by F = (8-5)+ (a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure Q. (You don't need to prove it, simply give the answer.) (b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2. (c) Let X = S. Find the Stochastic Differential Equation satisfied by the process (Xt) under the measure Q. (d) Find an explicit expression for X₁ = S3 under measure Q. (e) Using the results above, find the price of the cubic put option mentioned above. (f) Is the price in (e) the same as in question (b)? (Explain why.)arrow_forwardProblem 4. Margrabe formula and the Greeks (20 pts) In the homework, we determined the Margrabe formula for the price of an option allowing you to swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility σ and correlation p, the formula was given by Fo=yo (d+)-x0Þ(d_), where In (±² Ꭲ d+ õ√T and σ = σ√√√2(1 - p). дго (a) We want to determine a "Greek" for ỡ on the option: find a formula for θα (b) Is дго θα positive or negative? (c) We consider a situation in which the correlation p between the two stocks increases: what can you say about the price Fo? (d) Assume that yo< xo and p = 1. What is the price of the option?arrow_forwardWe consider a 4-dimensional stock price model given (under P) by dẴ₁ = µ· Xt dt + йt · ΣdŴt where (W) is an n-dimensional Brownian motion, π = (0.02, 0.01, -0.02, 0.05), 0.2 0 0 0 0.3 0.4 0 0 Σ= -0.1 -4a За 0 0.2 0.4 -0.1 0.2) and a E R. We assume that ☑0 = (1, 1, 1, 1) and that the interest rate on the market is r = 0.02. (a) Give a condition on a that would make stock #3 be the one with largest volatility. (b) Find the diversification coefficient for this portfolio as a function of a. (c) Determine the maximum diversification coefficient d that you could reach by varying the value of a? 2arrow_forward
- Question 1. Your manager asks you to explain why the Black-Scholes model may be inappro- priate for pricing options in practice. Give one reason that would substantiate this claim? Question 2. We consider stock #1 and stock #2 in the model of Problem 2. Your manager asks you to pick only one of them to invest in based on the model provided. Which one do you choose and why ? Question 3. Let (St) to be an asset modeled by the Black-Scholes SDE. Let Ft be the price at time t of a European put with maturity T and strike price K. Then, the discounted option price process (ert Ft) t20 is a martingale. True or False? (Explain your answer.) Question 4. You are considering pricing an American put option using a Black-Scholes model for the underlying stock. An explicit formula for the price doesn't exist. In just a few words (no more than 2 sentences), explain how you would proceed to price it. Question 5. We model a short rate with a Ho-Lee model drt = ln(1+t) dt +2dWt. Then the interest rate…arrow_forwardIn this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0 given (under the measure P) by d.St 0.03 St dt + 0.2 St dwt, with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to price an option on this stock (which we name cubic put). This option is European-type, with maturity 3 months (i.e. T = 0.25 years), and payoff given by F = (8-5)+ (a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure Q. (You don't need to prove it, simply give the answer.) (b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2. (c) Let X = S. Find the Stochastic Differential Equation satisfied by the process (Xt) under the measure Q. (d) Find an explicit expression for X₁ = S3 under measure Q. (e) Using the results above, find the price of the cubic put option mentioned above. (f) Is the price in (e) the same as in question (b)? (Explain why.)arrow_forwardThe managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Question content area bottom Part 1 a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costsequals=212495.2212495.2plus+left parenthesis 42.4857 right parenthesis42.485742.4857times×Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Part 2 b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, b 0b0, if appropriate. Choose the correct answer below. A. The value of b 0b0 is the predicted billable hours for an overhead cost of 0 dollars. B. It is not appropriate to interpret b 0b0, because its value…arrow_forward
- Using the accompanying Home Market Value data and associated regression line, Market ValueMarket Valueequals=$28,416+$37.066×Square Feet, compute the errors associated with each observation using the formula e Subscript ieiequals=Upper Y Subscript iYiminus−ModifyingAbove Upper Y with caret Subscript iYi and construct a frequency distribution and histogram. LOADING... Click the icon to view the Home Market Value data. Question content area bottom Part 1 Construct a frequency distribution of the errors, e Subscript iei. (Type whole numbers.) Error Frequency minus−15 comma 00015,000less than< e Subscript iei less than or equals≤minus−10 comma 00010,000 0 minus−10 comma 00010,000less than< e Subscript iei less than or equals≤minus−50005000 5 minus−50005000less than< e Subscript iei less than or equals≤0 21 0less than< e Subscript iei less than or equals≤50005000 9…arrow_forwardThe managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c Overhead Costs Billable Hours345000 3000385000 4000410000 5000462000 6000530000 7000545000 8000arrow_forwardUsing the accompanying Home Market Value data and associated regression line, Market ValueMarket Valueequals=$28,416plus+$37.066×Square Feet, compute the errors associated with each observation using the formula e Subscript ieiequals=Upper Y Subscript iYiminus−ModifyingAbove Upper Y with caret Subscript iYi and construct a frequency distribution and histogram. Square Feet Market Value1813 911001916 1043001842 934001814 909001836 1020002030 1085001731 877001852 960001793 893001665 884001852 1009001619 967001690 876002370 1139002373 1131001666 875002122 1161001619 946001729 863001667 871001522 833001484 798001589 814001600 871001484 825001483 787001522 877001703 942001485 820001468 881001519 882001518 885001483 765001522 844001668 909001587 810001782 912001483 812001519 1007001522 872001684 966001581 86200arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
what is Research Design, Research Design Types, and Research Design Methods; Author: Educational Hub;https://www.youtube.com/watch?v=LpmGSioXxdo;License: Standard YouTube License, CC-BY