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: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 26P
The economic downturn in 2008–2009 resulted in the loss of jobs and an increase in delinquent loans for housing. In projecting where the real estate market was headed in the coming year, economists studied the relationship between the jobless rate and the percentage of delinquent loans. The expectation was that if the jobless rate continued to increase, there would also be an increase in the percentage of delinquent loans. The following data show the jobless rate and the delinquent loan percentage for 27 major real estate markets.
Source: The Wall Street Journal, January 27, 2009.
- a. Compute the
correlation coefficient . Is there apositive correlation between the jobless rate and the percentage of delinquent housing loans? What is your interpretation? - b. Show a
scatter diagram of the relationship between the jobless rate and the percentage of delinquent housing loans.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In a two-way data table, you can compare how different values of one input variable
influence the return on invested capital by holding the remaining input variables
constant.
True or False
True
False
The Pennsylvania State University had enrollments of 40,571 students in 2000 and 41,289 students in 2004 at its main campus in University Park, Pennsylvania. Assuming the enrollment growth is linear, predict the enrollments in 2008 and 2010.
Government economic studies reveal that young adults, not middle-aged or older adults, are having the most difficult time in today’s economy. Although the nation’s labor market shows a decline in the unemployment rate, the percentage of young adults, ages 18 to 24, currently employed (54 percent) is at the lowest level since the government data collection began in 1948. If you were working for a national survey organization doing a general public survey of young adults and older adults, what topics and questions would you design into your survey to elaborate on this finding?
Chapter 2 Solutions
Essentials of Business Analytics (MindTap Course List)
Ch. 2 - A Wall Street Journal subscriber survey asked 46...Ch. 2 - The following table contains a partial list of...Ch. 2 - Ohio Logistics manages the logistical activities...Ch. 2 - A partial relative frequency distribution is...Ch. 2 - In a recent report, the top five most-visited...Ch. 2 - In a study of how chief executive officers (CEOs)...Ch. 2 - Consumer complaints are frequently reported to the...Ch. 2 - Reports have found that many U.S. adults would...Ch. 2 - Consider the following data: a. Develop a...Ch. 2 - Consider the following frequency distribution....
Ch. 2 - The owner of an automobile repair shop studied the...Ch. 2 - Approximately 1.65 million high school students...Ch. 2 - Consider a sample with data values of 10, 20, 12,...Ch. 2 - Consider a sample with data values of 27, 25, 20,...Ch. 2 - Consider a sample with data values of 53, 55, 70,...Ch. 2 - If an asset declines in value from 5,000 to 3,500...Ch. 2 - Suppose that you initially invested 10,000 in the...Ch. 2 - The average time that Americans commute to work is...Ch. 2 - Suppose that the average waiting time for a...Ch. 2 - According to the National Education Association...Ch. 2 - Return to the waiting times given for the...Ch. 2 - The results of a national survey showed that on...Ch. 2 - Suppose that the national average for the math...Ch. 2 - Five observations taken for two variables follow....Ch. 2 - The scatter chart in the following figure was...Ch. 2 - The economic downturn in 20082009 resulted in the...Ch. 2 - Heavenly Chocolates manufactures and sells quality...
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
- A poll uses responses to several questions to calculate a "Happiness" index that measures overall happiness. An article included the happiness index for the 7 years between 2008 and 2016. Also included in the article were the percentages of people who responded "somewhat agree" or "strongly agree" to the following statements. Statement 1 (happy with life) 1: At this time, I'm generally happy with my life. Statement 2 (won't benefit): I won't get much benefit from the things that I do anytime soon. Year 2008 2009 2010 2011 2013 2015 2016 Happiness Index 32 34 34 36 32 35 30 Happy with Life Statement (percentage somewhat or strongly agree) 78 81 78 83 79 82 82 Won't Benefit Statement (percentage somewhat or strongly agree) 35 39 35 35 43 35 42 (a) Calculate the value of the correlation coefficient for Happiness index and the response to the Happy with life statement. (Round your answer to four decimal places.) (b) Calculate the value of the correlation coefficient for Happiness index and…arrow_forwardA poll uses responses to several questions to calculate a "Happiness" index that measures overall happiness. An article included the happiness index for the 7 years between 2008 and 2016. Also included in the article were the percentages of people who responded "somewhat agree" or "strongly agree" to the following statements. Statement 1 (happy with life) 1: At this time, I'm generally happy with my life. Statement 2 (won't benefit): I won't get much benefit from the things that I do anytime soon. Year HappinessIndex Happy withLife Statement(percentagesomewhat orstrongly agree) Won't BenefitStatement(percentagesomewhat orstrongly agree) 2008 32 78 35 2009 34 81 39 2010 34 78 35 2011 34 81 37 2013 30 77 45 2015 31 78 39 2016 32 84 40 (a) Calculate the value of the correlation coefficient for Happiness index and the response to the Happy with life statement. (Round your answer to four decimal places.) (b) Calculate the value of the correlation coefficient…arrow_forwardA poll uses responses to several questions to calculate a "Happiness" index that measures overall happiness. An article included the happiness index for the 7 years between 2008 and 2016. Also included in the article were the percentages of people who responded "somewhat agree" or "strongly agree" to the following statements. Statement 1 (happy with life) 1: At this time, I'm generally happy with my life. Statement 2 (won't benefit): I won't get much benefit from the things that I do anytime soon. Year 2008 2009 2010 2011 2013 2015 2016 Happiness Index 32 36 34 34 32 35 30 Happy with Life Statement (percentage somewhat or strongly agree) 78 83 78 81 79 82 82 Won't Benefit Statement (percentage somewhat or strongly agree) 35 37 35 37 43 35 42 (a) Calculate the value of the correlation coefficient for Happiness index and the response to the Happy with life statement. (Round your answer to four decimal places.) (b) Calculate the value of the correlation coefficient for Happiness index and…arrow_forward
- A poll uses responses to several questions to calculate a "Happiness" index that measures overall happiness. An article included the happiness index for the 7 years between 2008 and 2016. Also included in the article were the percentages of people who responded "somewhat agree" or "strongly agree" to the following statements. Statement 1 (happy with life) 1: At this time, I'm generally happy with my life. Statement 2 (won't benefit): I won't get much benefit from the things that I do anytime soon. Year 2008 2009 2010 2011 2013 2015 2016 Happiness Index 34 32 36 32 34 33 34 Happy with Life Statement (percentage somewhat or strongly agree) 80 79 80 79 81 80 86 Won't Benefit Statement (percentage somewhat or strongly agree) 33 41 33 39 41 37 38 (a) Calculate the value of the correlation coefficient for Happiness index and the response to the Happy with life statement. (Round your answer to four decimal places.) (b) Calculate the value of the correlation coefficient for Happiness index and…arrow_forwardCase Switzerland: If all positions were paid equally, how much would Switzerland spend on wages for data processing in a year? A) CHF 1.03 billion B) CHF 3.45 billion C) CHF 162.5 billion D) CHF 103.9 billion E) CHF 188.5 billionarrow_forwardSuppose that you are a researcher and wish to construct a linear mathematical (statistical) model that relates the number of years and the corresponding exports (million U.S.$) of a country. The constructed model may use to forecasts the future values. You have obtained the relevant data for the during of 1990 to 1995 and you have listed the data in Table 5. Table 5. Shows the list of the amount that have earned on exports Year No. 1 2 3 4 5 6 Exports 4954 6131 6904 6813 6803 8137 (a) Construct a suitable graph that explains the relationship between the number of years and the corresponding exports. (b) Construct a mathematical (Statistical) model by using least square method between number of years and the corresponding sales. (c) Interpret the slope of the estimated linear model (d) Forecast the value of exports by using the estimated linear model for the year of 2000arrow_forward
- Table #2.3.7 contains the value of the house and the amount of rental income in a year that the house brings in ("Capital and rental," 2013). Create a scatter plot and state if there is a relationship between the value of the house and the annual rental income. Table #2.3.7: Data of House Value versus Rental Value Rental Value Rental Value Rental Value Rental 81000 6656 77000 4576 75000 7280 67500 6864 95000 7904 94000 8736 90000 6240 85000 7072 121000 12064 115000 7904 110000 7072 104000 7904 135000 8320 130000 9776 126000 6240 125000 7904 145000 8320 140000 9568 140000 9152 135000 7488 165000 13312 165000 8528 155000 7488 148000 8320 178000 11856 174000 10400 170000 9568 170000 12688 200000 12272 200000 10608 194000 11232 190000 8320 214000 8528 208000 10400 200000 10400 200000 8320 240000 10192…arrow_forwardSuppose that you are a researcher and wish to construct a linear mathematical (statistical) model that relates the number of years and the corresponding exports (million U.S,$) of a country. The constructed model may use to forecasts the future values. You have obtained the relevant data for a decade during 1990 to 1999 and you have listed the data in Table 5. Table 5. Shows the list of the amount that have earned on exports 6| 7| 8 Year No. 1| 2 | 3 | 4 10 Exports 4954 6131 | 6904| 6813 6803 8137| 8707 8320 8628 7779 (a) Construct a suitable graph that explains the relationship between the number of years and the corresponding exports. By inspection of the graph comment on the relationships between the number of vears and the corresponding exports. (b) Construct a mathematical (Statistical) model by using least square method between number of years and the corresponding sales. Also interpret the slope of the linear model to support your comment. (c) Forecast the value of sales by…arrow_forwardOpinions are split about a coffee company's pumpkin-flavored coffee (PFC). Yet every year over the last five years the consumption of pumpkin-flavored goods has increased. If we look at the numbers, it also becomes clear why a leading coffee company keeps offering the PFC earlier and earlier every year. According to a magazine, the amount spent by PFC buyers at the coffee company is about 17% higher than non-PFC buyers. The accompanying table shows a random sample of eight consumers, the amount they spend per week, and the number of PFCs purchased per week. PFC Spending 2 13.88 7 39.11 4 19.79 1 9.84 3 15.43 1 21.52 5 37.39 3 13.85 Calculate the slope and y-intercept for the regression formula. The slope is b1=4.465 The y-intercept is b0=6.840 Provide an interpretation for the value of the slope. Because the slope is positive, it can be…arrow_forward
- Opinions are split about a coffee company's pumpkin-flavored coffee (PFC). Yet every year over the last five years the consumption of pumpkin-flavored goods has increased. If we look at the numbers, it also becomes clear why a leading coffee company keeps offering the PFC earlier and earlier every year. According to a magazine, the amount spent by PFC buyers at the coffee company is about 17% higher than non-PFC buyers. The accompanying table shows a random sample of eight consumers, the amount they spend per week, y, and the number of PFCs purchased, x, per week. PFC Spending 1 13.17 8 38.65 3 19.49 2 9.56 4 15.85 1 21.82 5 37.53 3 13.69 α=0.05 t= 3.07 p-value= 0.022 Construct a 95% confidence interval for the population slope. UCL = 6.69 LCL = 0.75 What conclusions about PFC purchases and spending can be drawn from these…arrow_forwardOpinions are split about a coffee company's pumpkin-flavored coffee (PFC). Yet every year over the last five years the consumption of pumpkin-flavored goods has increased. If we look at the numbers, it also becomes clear why a leading coffee company keeps offering the PFC earlier and earlier every year. According to a magazine, the amount spent by PFC buyers at the coffee company is about 17% higher than non-PFC buyers. The accompanying table shows a random sample of eight consumers, the amount they spend per week, y, and the number of PFCs purchased, x, per week. PFC Spending 1 13.17 8 38.65 3 19.49 2 9.56 4 15.85 1 21.82 5 37.53 3 13.69 t= 3.07 Identify the p-value p-value= (Round to three decimal places as needed.)arrow_forwardOpinions are split about a coffee company's pumpkin-flavored coffee (PFC). Yet every year over the last five years the consumption of pumpkin-flavored goods has increased. If we look at the numbers, it also becomes clear why a leading coffee company keeps offering the PFC earlier and earlier every year. According to a magazine, the amount spent by PFC buyers at the coffee company is about 17% higher than non-PFC buyers. The accompanying table shows a random sample of eight consumers, the amount they spend per week, y, and the number of PFCs purchased, x, per week. PFC Spending 1 13.17 8 38.65 3 19.49 2 9.56 4 15.85 1 21.82 5 37.53 3 13.69 α=0.05 Calculate the test statistic for the hypothesis test. t= (Round to two decimal places as needed.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSON
The Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. Freeman
Introduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman
Correlation Vs Regression: Difference Between them with definition & Comparison Chart; Author: Key Differences;https://www.youtube.com/watch?v=Ou2QGSJVd0U;License: Standard YouTube License, CC-BY
Correlation and Regression: Concepts with Illustrative examples; Author: LEARN & APPLY : Lean and Six Sigma;https://www.youtube.com/watch?v=xTpHD5WLuoA;License: Standard YouTube License, CC-BY