Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
7th Edition
ISBN: 9781337298353
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 14.8, Problem 49E
The DATAfile named CostLiving contains the cost of living indexes and the population densities (number of people per square mile) for 61 cities in the United States. The cost of living index measures the cost of living in a particular city relative to the cost of living in New York City. San Francisco has an index of 112.15, meaning that is 12.15% more expensive to live in San Francisco than New York City. Washington DC has an index of 84.64, which means that the cost to live in Washington DC is only 84.64% of what it costs to live in New York City (Numbeo website, July 13, 2016).
a. Develop the estimated regression equation that can be used to predict the cost of living index for a U.S. city, given the city's population density.
b. Construct a residual plot against the independent variable.
c. Review the residual plot constructed in part (b). Do the assumptions of the error term and model form seem reasonable?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
4.96 The breaking strengths for 1-foot-square samples of a particular synthetic fabric are approximately normally distributed with a mean of 2,250 pounds per square inch (psi) and a standard deviation of 10.2 psi. Find the probability of selecting a 1-foot-square sample of material at random that on testing would have a breaking strength in excess of 2,265 psi.4.97 Refer to Exercise 4.96. Suppose that a new synthetic fabric has been developed that may have a different mean breaking strength. A random sample of 15 1-foot sections is obtained, and each section is tested for breaking strength. If we assume that the population standard deviation for the new fabric is identical to that for the old fabric, describe the sampling distribution forybased on random samples of 15 1-foot sections of new fabric
Une Entreprise œuvrant dans le domaine du multividéo donne l'opportunité à ses
programmeurs-analystes d'évaluer la performance des cadres supérieurs.
Voici les résultats obtenues (sur une échelle de 10 à 50) où 50 représentent une
excellente performance. 10 programmeurs furent sélectionnés au hazard pour
évaluer deux cadres. Un rapport Excel est également fourni.
Programmeurs
Cadre A Cadre B
1
34
36
2
32
34
3
18
19
33
38
19
21
21
23
7
35
34
8
20
20
9
34
34
10
36
34
Test d'égalité des espérances: observations pairées
A television news channel samples 25 gas stations from its local area and uses the results to estimate the average gas price for the state. What’s wrong with its margin of error?
Chapter 14 Solutions
Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
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
- You’re fed up with keeping Fido locked inside, so you conduct a mail survey to find out people’s opinions on the new dog barking ordinance in a certain city. Of the 10,000 people who receive surveys, 1,000 respond, and only 80 are in favor of it. You calculate the margin of error to be 1.2 percent. Explain why this reported margin of error is misleading.arrow_forwardYou find out that the dietary scale you use each day is off by a factor of 2 ounces (over — at least that’s what you say!). The margin of error for your scale was plus or minus 0.5 ounces before you found this out. What’s the margin of error now?arrow_forwardSuppose that Sue and Bill each make a confidence interval out of the same data set, but Sue wants a confidence level of 80 percent compared to Bill’s 90 percent. How do their margins of error compare?arrow_forward
- Suppose that you conduct a study twice, and the second time you use four times as many people as you did the first time. How does the change affect your margin of error? (Assume the other components remain constant.)arrow_forwardOut of a sample of 200 babysitters, 70 percent are girls, and 30 percent are guys. What’s the margin of error for the percentage of female babysitters? Assume 95 percent confidence.What’s the margin of error for the percentage of male babysitters? Assume 95 percent confidence.arrow_forwardYou sample 100 fish in Pond A at the fish hatchery and find that they average 5.5 inches with a standard deviation of 1 inch. Your sample of 100 fish from Pond B has the same mean, but the standard deviation is 2 inches. How do the margins of error compare? (Assume the confidence levels are the same.)arrow_forward
- A survey of 1,000 dental patients produces 450 people who floss their teeth adequately. What’s the margin of error for this result? Assume 90 percent confidence.arrow_forwardThe annual aggregate claim amount of an insurer follows a compound Poisson distribution with parameter 1,000. Individual claim amounts follow a Gamma distribution with shape parameter a = 750 and rate parameter λ = 0.25. 1. Generate 20,000 simulated aggregate claim values for the insurer, using a random number generator seed of 955.Display the first five simulated claim values in your answer script using the R function head(). 2. Plot the empirical density function of the simulated aggregate claim values from Question 1, setting the x-axis range from 2,600,000 to 3,300,000 and the y-axis range from 0 to 0.0000045. 3. Suggest a suitable distribution, including its parameters, that approximates the simulated aggregate claim values from Question 1. 4. Generate 20,000 values from your suggested distribution in Question 3 using a random number generator seed of 955. Use the R function head() to display the first five generated values in your answer script. 5. Plot the empirical density…arrow_forwardFind binomial probability if: x = 8, n = 10, p = 0.7 x= 3, n=5, p = 0.3 x = 4, n=7, p = 0.6 Quality Control: A factory produces light bulbs with a 2% defect rate. If a random sample of 20 bulbs is tested, what is the probability that exactly 2 bulbs are defective? (hint: p=2% or 0.02; x =2, n=20; use the same logic for the following problems) Marketing Campaign: A marketing company sends out 1,000 promotional emails. The probability of any email being opened is 0.15. What is the probability that exactly 150 emails will be opened? (hint: total emails or n=1000, x =150) Customer Satisfaction: A survey shows that 70% of customers are satisfied with a new product. Out of 10 randomly selected customers, what is the probability that at least 8 are satisfied? (hint: One of the keyword in this question is “at least 8”, it is not “exactly 8”, the correct formula for this should be = 1- (binom.dist(7, 10, 0.7, TRUE)). The part in the princess will give you the probability of seven and less than…arrow_forward
- please answer these questionsarrow_forwardSelon une économiste d’une société financière, les dépenses moyennes pour « meubles et appareils de maison » ont été moins importantes pour les ménages de la région de Montréal, que celles de la région de Québec. Un échantillon aléatoire de 14 ménages pour la région de Montréal et de 16 ménages pour la région Québec est tiré et donne les données suivantes, en ce qui a trait aux dépenses pour ce secteur d’activité économique. On suppose que les données de chaque population sont distribuées selon une loi normale. Nous sommes intéressé à connaitre si les variances des populations sont égales.a) Faites le test d’hypothèse sur deux variances approprié au seuil de signification de 1 %. Inclure les informations suivantes : i. Hypothèse / Identification des populationsii. Valeur(s) critique(s) de Fiii. Règle de décisioniv. Valeur du rapport Fv. Décision et conclusion b) A partir des résultats obtenus en a), est-ce que l’hypothèse d’égalité des variances pour cette…arrow_forwardAccording to an economist from a financial company, the average expenditures on "furniture and household appliances" have been lower for households in the Montreal area than those in the Quebec region. A random sample of 14 households from the Montreal region and 16 households from the Quebec region was taken, providing the following data regarding expenditures in this economic sector. It is assumed that the data from each population are distributed normally. We are interested in knowing if the variances of the populations are equal. a) Perform the appropriate hypothesis test on two variances at a significance level of 1%. Include the following information: i. Hypothesis / Identification of populations ii. Critical F-value(s) iii. Decision rule iv. F-ratio value v. Decision and conclusion b) Based on the results obtained in a), is the hypothesis of equal variances for this socio-economic characteristic measured in these two populations upheld? c) Based on the results obtained in a),…arrow_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
College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning
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
Elementary Geometry For College Students, 7eGeometryISBN:9781337614085Author:Alexander, Daniel C.; Koeberlein, Geralyn M.Publisher:Cengage,
Algebra: Structure And Method, Book 1AlgebraISBN:9780395977224Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. ColePublisher:McDougal Littell
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
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
Elementary Geometry For College Students, 7e
Geometry
ISBN:9781337614085
Author:Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:Cengage,
Algebra: Structure And Method, Book 1
Algebra
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:McDougal Littell
Hypothesis Testing using Confidence Interval Approach; Author: BUM2413 Applied Statistics UMP;https://www.youtube.com/watch?v=Hq1l3e9pLyY;License: Standard YouTube License, CC-BY
Hypothesis Testing - Difference of Two Means - Student's -Distribution & Normal Distribution; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=UcZwyzwWU7o;License: Standard Youtube License