Introduction to Statistics and Data Analysis
5th Edition
ISBN: 9781305115347
Author: Roxy Peck; Chris Olsen; Jay L. Devore
Publisher: Brooks Cole
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Textbook Question
Chapter 2, Problem 79CR
A mortgage lender routinely places advertisements in a local newspaper. The advertisements are of three different types: one focusing on low interest rates, one featuring low fees for first-time buyers, and one appealing to people who may want to refinance their homes. The lender would like to determine which advertisement format is most successful in attracting customers to call for more information.
- a. Describe an experiment that would provide the information needed to make this determination. Be sure to consider extraneous variables, such as the day of the week that the advertisement appears in the paper, the section of the paper in which the advertisement appears, or daily fluctuations in the interest rate.
- b. What role does random assignment play in your design?
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Westminster Financial has released a summary of investment package information from the past fiscal year. During this time, Westminster provided a choice among twelve 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 (fE) under the assumption that there is no relationship between the…
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
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Mr. William Profit is studying companies going public for the first time. He is particularly interested in the relationship between the size of the offering and the price per share. A sample of 15 companies that recently went public revealed the following information.
Size
Price
Size
Price
($ millions),
per Share,
($ millions),
per Share,
Company
x
y
Company
x
y
1
9.0
10.8
9
160.7
11.3
2
94.4
11.3
10
96.5
10.6
3
27.3
11.2
11
83.0
10.5
4
179.2
11.1
12
23.5
10.3
5
71.9
11.1
13
58.7
10.7
6
97.9
11.2
14
93.8
11.0
7
93.5
11.0
15
34.4
10.8
8
70.0
10.7
Click here for the Excel Data File
a. Determine the regression equation. (Round your answers to 4 decimal places.)
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Chapter 2 Solutions
Introduction to Statistics and Data Analysis
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