Statistical Reasoning for Everyday Life (5th Edition)
5th Edition
ISBN: 9780134494043
Author: Jeff Bennett, William L. Briggs, Mario F. Triola
Publisher: PEARSON
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Chapter 10.2, Problem 4E
To determine
Explain the meaning of
Explain the case when the test statistic is small.
Also explain how to use the
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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. please do it step by step
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…
Exercises: Find all the whole number
solutions of the congruence equation.
1. 3x 8 mod 11
2. 2x+3= 8 mod 12
3. 3x+12= 7 mod 10
4. 4x+6= 5 mod 8
5. 5x+3= 8 mod 12
Scenario
Sales of products by color follow a peculiar, but predictable, pattern that determines how many units will sell in
any given year. This pattern is shown below
Product Color
1995
1996
1997
Red
28
42
21
1998
23
1999
29
2000
2001
2002
Unit Sales
2003 2004
15
8
4
2
1
2005 2006
discontinued
Green
26
39
20
22
28
14
7
4
2
White
43
65
33
36
45
23
12
Brown
58
87
44
48
60
Yellow
37
56
28
31
Black
28
42
21
Orange
19
29
Purple
Total
28
42
21
49
68
78
95
123
176
181
164
127
24
179
Questions
A) Which color will sell the most units in 2007?
B) Which color will sell the most units combined in the 2007 to 2009 period?
Please show all your analysis, leave formulas in cells, and specify any assumptions you make.
Chapter 10 Solutions
Statistical Reasoning for Everyday Life (5th Edition)
Ch. 10.1 - t Distribution. What is the t distribution? What...Ch. 10.1 - Degrees of Freedom. How do you determine the...Ch. 10.1 - Prob. 3ECh. 10.1 - Hypothesis Test. Briefly summarize the procedure...Ch. 10.1 - Does It Make Sense? For Exercises 58, determine...Ch. 10.1 - Prob. 6ECh. 10.1 - Prob. 7ECh. 10.1 - Prob. 8ECh. 10.1 - Confidence Intervals. In Exercises 918, use the t...Ch. 10.1 - Confidence Intervals. In Exercises 918, use the t...
Ch. 10.1 - Elbow-to-Fingertip Length of Men. A simple random...Ch. 10.1 - Earthquake Epicenter Depths. A simple random...Ch. 10.1 - Hospital Costs with Seat Belts. A study was...Ch. 10.1 - Prob. 14ECh. 10.1 - Estimating Car Pollution. Each car in a sample of...Ch. 10.1 - Movie Lengths. Listed below are lengths (in...Ch. 10.1 - Prob. 17ECh. 10.1 - Prob. 18ECh. 10.1 - Hypothesis Tests. In Exercises 1928, test the...Ch. 10.1 - Prob. 20ECh. 10.1 - Hypothesis Tests. In Exercises 1928, test the...Ch. 10.1 - Prob. 22ECh. 10.1 - Hypothesis Tests. In Exercises 1928, test the...Ch. 10.1 - Hypothesis Tests. In Exercises 1928, test the...Ch. 10.1 - Prob. 25ECh. 10.1 - Prob. 26ECh. 10.1 - Prob. 27ECh. 10.1 - Prob. 28ECh. 10.2 - Two-Way Tables. What is a two-way table? What are...Ch. 10.2 - Hypotheses. When working with two variables in a...Ch. 10.2 - Prob. 3ECh. 10.2 - Prob. 4ECh. 10.2 - Does It Make Sense? For Exercises 58, determine...Ch. 10.2 - Does It Make Sense? For Exercises 58, determine...Ch. 10.2 - Does It Make Sense? For Exercises 58, determine...Ch. 10.2 - Does It Make Sense? For Exercises 58, determine...Ch. 10.2 - Prob. 9ECh. 10.2 - Understanding a Two-Way Table Hypothesis Test....Ch. 10.2 - Survey Results. In Exercises 1114, assume that a...Ch. 10.2 - Survey Results. In Exercises 1114, assume that a...Ch. 10.2 - Survey Results. In Exercises 1114, assume that a...Ch. 10.2 - Survey Results. In Exercises 1114, assume that a...Ch. 10.2 - Prob. 15ECh. 10.2 - Complete Hypothesis Test. In Exercises 1522, carry...Ch. 10.2 - Complete Hypothesis Test. In Exercises 1522, carry...Ch. 10.2 - Complete Hypothesis Test. In Exercises 1522, carry...Ch. 10.2 - Complete Hypothesis Test. In Exercises 1522, carry...Ch. 10.2 - Prob. 20ECh. 10.2 - Prob. 21ECh. 10.2 - Prob. 22ECh. 10.3 - ANOVA. What does ANOVA stand for? What is the...Ch. 10.3 - Prob. 2ECh. 10.3 - Variance in ANOVA. Describe and distinguish...Ch. 10.3 - Test Statistic F. What is the meaning of small and...Ch. 10.3 - Prob. 5ECh. 10.3 - Prob. 6ECh. 10.3 - Does It Make Sense? For Exercises 58, determine...Ch. 10.3 - Does It Make Sense? For Exercises 58, determine...Ch. 10.3 - Prob. 9ECh. 10.3 - Comparing Colleges. A researcher obtains random...Ch. 10.3 - Readability of Authors. Samples of Flesch-Kincaid...Ch. 10.3 - Fabric Flammability Tests in Different...Ch. 10.3 - Prob. 13ECh. 10.3 - Pulse Rates. A random sample of adult females is...Ch. 10.3 - Using Technology. In Exercises 1518, use software...Ch. 10.3 - Using Technology. In Exercises 1518, use software...Ch. 10.3 - Prob. 17ECh. 10.3 - Using Technology. In Exercises 1518, use software...Ch. 10 - In Exercises 13, use the following service times...Ch. 10 - In Exercises 13, use the following service times...Ch. 10 - In Exercises 13, use the following service times...Ch. 10 - Prob. 4CRECh. 10 - Prob. 1CQCh. 10 - As part of the results from the test described in...Ch. 10 - For the hypothesis test described in Exercise 1,...Ch. 10 - A simple random sample of 25 blood platelet counts...Ch. 10 - Prob. 5CQCh. 10 - Prob. 6CQCh. 10 - Prob. 7CQCh. 10 - If the hypothesis test of the claim described in...Ch. 10 - A two-way table, constructed from survey results,...Ch. 10 - Prob. 10CQ
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- One hundred students were surveyed about their preference between dogs and cats. The following two-way table displays data for the sample of students who responded to the survey. Preference Male Female TOTAL Prefers dogs \[36\] \[20\] \[56\] Prefers cats \[10\] \[26\] \[36\] No preference \[2\] \[6\] \[8\] TOTAL \[48\] \[52\] \[100\] problem 1 Find the probability that a randomly selected student prefers dogs.Enter your answer as a fraction or decimal. \[P\left(\text{prefers dogs}\right)=\] Incorrect Check Hide explanation Preference Male Female TOTAL Prefers dogs \[\blueD{36}\] \[\blueD{20}\] \[\blueE{56}\] Prefers cats \[10\] \[26\] \[36\] No preference \[2\] \[6\] \[8\] TOTAL \[48\] \[52\] \[100\] There were \[\blueE{56}\] students in the sample who preferred dogs out of \[100\] total students.arrow_forwardBusiness discussarrow_forwardYou 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…arrow_forward
- 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…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_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_forward
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