Statistics for Business & Economics
12th Edition
ISBN: 9781285528830
Author: David R. Anderson
Publisher: Cengage Learning US
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Textbook Question
Chapter 3, Problem 75SE
The Panama Railroad Company was established in 1850 to construct a railroad across the isthmus that would allow fast and easy access between the Atlantic and Pacific Oceans. The following table (The Big Ditch, Mauer and Yu, 2011) provides annual returns for Panama Railroad stock from 1853 through 1880.
| Year | Return on Panama Railroad Company Stock (%) |
| 1853 | −1 |
| 1854 | −9 |
| 1855 | 19 |
| 1856 | 2 |
| 1857 | 3 |
| 1858 | 36 |
| 1859 | 21 |
| 1860 | 16 |
| 1861 | −5 |
| 1862 | 43 |
| 1863 | 44 |
| 1864 | 48 |
| 1865 | 7 |
| 1866 | 11 |
| 1867 | 23 |
| 1868 | 20 |
| 1869 | −11 |
| 1870 | −51 |
| 1871 | −42 |
| 1872 | 39 |
| 1873 | 42 |
| 1874 | 12 |
| 1875 | 26 |
| 1876 | 9 |
| 1877 | −6 |
| 1878 | 25 |
| 1879 | 31 |
| 1880 | 30 |
- a. Create a graph of the annual returns on the stock. The New York Stock Exchange earned an annual average return of 8.4% from 1853 through 1880. Can you tell from the graph if the Panama Railroad Company stock outperformed the New York Stock Exchange?
- b. Calculate the
mean annual return on Panama Railroad Company stock from 1853 through 1880. Did the stock outperform the New York Stock Exchange over the same period?
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Students have asked these similar questions
The Panama Railroad Company was established in to construct a railroad across the isthmus that would allow fast and easy access between the Atlantic and Pacific Oceans. The following table provides annual returns for Panama Railroad stock from through .
Year
Return on Panama Railroad Company Stock (%)
1853
-1
1854
-9
1855
19
1856
2
1857
3
1858
36
1859
21
1860
16
1861
-5
1862
43
1863
44
1864
48
1865
7
1866
11
1867
23
1868
20
1869
-11
1870
-51
1871
-42
1872
39
1873
42
1874
12
1875
26
1876
9
1877
-6
1878
25
1879
31
1880
30
a. Select a graph of the annual returns on the stock. The New York Stock Exchange earned an annual average return of from through .
A.
B.
C.
D.
Can you tell from the graph if the Panama Railroad Company stock outperformed the New York Stock Exchange?
b. Calculate the mean annual return on Panama Railroad…
The table to the right represents the annual percentage
of smartphones sold in a certain region in 2011, 2012,
and 2013 (projected).
a. What conclusions can you reach about the market for
smartphones in 2011, 2012, and 2013?
b. What differences are there in the market for
smartphones in 2011, 2012, and 2013?
Type
Type 1
Type 2
Type 3
Type 4
Type 5
Type 6
2011
2012
52% 65%
18%
16%
1%
6%
13%
7%
13%
3%
4%
2%
a. Select all that apply.
A. Type 3 had the second largest percentage of smartphones sold in all three years.
B. Type 2 had the second largest percentage of smartphones sold in all three years.
C. Type 6 had the smallest or close to the smallest percentage of smartphones sold in all three years.
D. Type 1 had the largest percentage of smartphones sold in all three years.
E. Type 5 had the smallest or close to the smallest percentage of smartphones sold in all three years.
2013
54%
20%
18%
4%
2%
2%
The following table gives the U.S. national debt for selected years from 1900 to 2013.
U.S. Debt
($ billions)
3233
5225
Year
1900
1910
1920
1930
1940
1945
1955
1965
1975
1965
U.S. Debt
($ billions)
1
1
24
16
43
259
273
314
533
1823
Year
1990
1996
2000
2005
2009
2010
2011
2012
2013
5674
7933
11,957
13,529
15,476
16,067
16,856
(a) Using a function of the form ya b^x, with x=0 in 1900 and y equal to the national debt in billions, model the data. (Round your coefficients to four decimal places.)
y=
(b) Use the model to predict the debt in 2023. (Round your answer to the nearest billion.)
$
billion
(c) Predict the year in which the debt will be $71 trillion ($71,000 billion).
Chapter 3 Solutions
Statistics for Business & Economics
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Ch. 3.1 - According to the National Education Association...Ch. 3.1 - The Big Bang Theory, a situation comedy featuring...Ch. 3.1 - In automobile mileage and gasoline-consumption...Ch. 3.1 - The data contained in the file named StateUnemp...Ch. 3.1 - Martinez Auto Supplies has retail stores located...Ch. 3.1 - The grade point average for college students is...Ch. 3.1 - The following table shows the total return and the...Ch. 3.1 - Based on a survey of masters programs in business...Ch. 3.1 - Annual revenue for Corning Supplies grew by 5.5%...Ch. 3.1 - Suppose that at the beginning of 2004 you invested...Ch. 3.1 - If an asset declines in value from 5000 to 3500...Ch. 3.1 - The current value of a company is 25 million. If...Ch. 3.2 - Consider a sample with data values of 10, 20, 12,...Ch. 3.2 - Consider a sample with data values of 10, 20, 12,...Ch. 3.2 - Consider a sample with data values of 27, 25, 20,...Ch. 3.2 - A bowlers scores for six games were 182, 168, 184,...Ch. 3.2 - The results of a search to find the least...Ch. 3.2 - The Australian Open is the first of the four grand...Ch. 3.2 - The Los Angeles times regularly reports the air...Ch. 3.2 - The following data were used to construct the...Ch. 3.2 - The results of Accounting Principals latest...Ch. 3.2 - Prob. 32ECh. 3.2 - Scores turned in by an amateur golfer at the...Ch. 3.2 - The following times were recorded by the...Ch. 3.3 - Consider a sample with data values of 10, 20, 12,...Ch. 3.3 - Consider a sample with a mean of 500 and a...Ch. 3.3 - Consider a sample with a mean of 30 and a standard...Ch. 3.3 - Suppose the data have a bell-shaped distribution...Ch. 3.3 - The results of a national survey showed that on...Ch. 3.3 - The energy information Administration reported...Ch. 3.3 - The national average for the math portion of the...Ch. 3.3 - Many families in California are using backyard...Ch. 3.3 - Florida Power Light (FPL) Company has enjoyed a...Ch. 3.3 - A sample of 10 NCAA college basketball game scores...Ch. 3.3 - The Associated Press Team Marketing Report listed...Ch. 3.4 - Consider a sample with data values of 27, 25, 20,...Ch. 3.4 - Prob. 47ECh. 3.4 - Prob. 48ECh. 3.4 - A data set has a first quartile of 42 and a third...Ch. 3.4 - Naples, Florida, hosts a half-marathon (13.1-mile...Ch. 3.4 - Annual sales, in millions of dollars, for 21...Ch. 3.4 - Consumer Reports provided overall customer...Ch. 3.4 - The Philadelphia Phillies defeated the Tampa Bay...Ch. 3.4 - A listing of 46 mutual funds and their 12-month...Ch. 3.5 - Five observations taken for two variables follow....Ch. 3.5 - Five observations taken for two variables follow....Ch. 3.5 - Ten major college football bowl games were played...Ch. 3.5 - A department of transportations study on driving...Ch. 3.5 - At the beginning of 2009, the economic downturn...Ch. 3.5 - The Dow Jones Industrial Average (DJIA) and the...Ch. 3.5 - Prob. 61ECh. 3 - The average number of times Americans dine out in...Ch. 3 - The U.S. Census Bureau provides statistics on...Ch. 3 - The average waiting time for a patient at an El...Ch. 3 - The U.S. Department of Education reports that...Ch. 3 - Small business owners often look to payroll...Ch. 3 - Public transportation and the automobile are two...Ch. 3 - The National Association of Realtors reported the...Ch. 3 - Prob. 69SECh. 3 - Travel + Leisure magazine provides an annual list...Ch. 3 - Morningstar tracks the performance of a large...Ch. 3 - Does a major league baseball teams record during...Ch. 3 - The days to maturity for a sample of five money...Ch. 3 - Automobiles traveling on a road with a posted...Ch. 3 - The Panama Railroad Company was established in...Ch. 3 - Pelican Stores Pelican Stores, a division of...Ch. 3 - Motion Picture Industry The motion picture...Ch. 3 - Business Schools of Asia-Pacific The pursuit of a...Ch. 3 - Heavenly Chocolates Website Transactions Heavenly...Ch. 3 - African Elephant Populations Although millions of...
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