Understanding Basic Statistics
8th Edition
ISBN: 9781337558075
Author: Charles Henry Brase, Corrinne Pellillo Brase
Publisher: Cengage Learning
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Textbook Question
Chapter 5.3, Problem 1P
Statistical Literacy What is the main difference between a situation in which the use of the permutations rule is appropriate and one in which the use of the combinations rule is appropriate?
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Morningstar tracks the total return for a large number of mutual funds. The following table shows the total return and the number of funds for four categories of mutual funds.
Click on the datafile logo to reference the data.
DATA file
Type of Fund
Domestic Equity
Number of Funds
Total Return (%)
9191
4.65
International Equity
2621
18.15
Hybrid
1419
2900
11.36
6.75
Specialty Stock
a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (to 2 decimals)
%
b. Is there any difficulty associated with using the "number of funds" as the weights in computing the weighted average total return in part (a)? Discuss. What else might be used for weights?
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c. Suppose you invested $10,000 in this group of mutual funds and diversified the investment by placing $2000 in Domestic Equity funds, $4000 in International Equity funds, $3000 in Specialty Stock…
The days to maturity for a sample of five money market funds are shown here. The dollar amounts invested in the funds are provided.
Days to
Maturity
20
Dollar Value
($ millions)
20
12
30
7
10
5
6
15
10
Use the weighted mean to determine the mean number of days to maturity for dollars invested in these five money market funds (to 1 decimal).
days
c. What are the first and third quartiles?
First Quartiles (to 1 decimals)
Third Quartiles (to 4 decimals)
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Which companies spend the most money on advertising? Business Insider maintains a list of the top-spending companies. In 2014, Procter & Gamble spent more than any other company, a whopping $5 billion. In second place was Comcast, which spent $3.08 billion (Business Insider website, December 2014). The top 12 companies and
the amount each spent on advertising in billions of dollars are as follows.
Click on the datafile logo to reference the data.
DATA file
Company
Procter & Gamble
Comcast
Advertising
($billions)
$5.00
3.08
2.91
Company
American Express
General Motors
Advertising
($billions)
$2.19
2.15
ETET
AT&T
Ford
Verizon
L'Oreal
2.56
2.44
2.34
Toyota
Fiat Chrysler
Walt Disney Company
J.P Morgan
a. What is the mean amount spent on advertising? (to 2 decimals)
2.55
b. What is the median amount spent on advertising? (to 3 decimals)
2.09
1.97
1.96
1.88
Chapter 5 Solutions
Understanding Basic Statistics
Ch. 5.1 - Statistical Literacy List three methods of...Ch. 5.1 - Statistical Literacy Suppose a weather app says...Ch. 5.1 - Statistical Literacy What is the probability of...Ch. 5.1 - Statistical Literacy What is the law of large...Ch. 5.1 - Interpretation A Harris Poll indicated that of...Ch. 5.1 - Interpretation According to a recent Harris Poll...Ch. 5.1 - Basic Computation: Probability as Relative...Ch. 5.1 - Basic Computation: Probability of Equally Likely...Ch. 5.1 - Interpretation An investment opportunity boasts...Ch. 5.1 - Interpretation A sample space consists of 4 simple...
Ch. 5.1 - Critical Thinking Consider a family with three...Ch. 5.1 - Critical Thinking Consider the experiment of...Ch. 5.1 - Critical Thinking On a single toss of a fair coin,...Ch. 5.1 - Critical Thinking (a) Explain why -0.41 cannot be...Ch. 5.1 - Myers-Briggs: Personality Types Isabel Briggs...Ch. 5.1 - General: Roll a Die (a) If you roll a single fair...Ch. 5.1 - Psychology: Creativity When do creative people get...Ch. 5.1 - Agriculture: Cotton A botanist has developed a new...Ch. 5.1 - Expand Your Knowledge: Odds in Favor Sometimes...Ch. 5.1 - Expand Your Knowledge: Odds Against Betting odds...Ch. 5.1 - Business: Customers John runs a computer software...Ch. 5.2 - Statistical Literacy If two events are mutually...Ch. 5.2 - Statistical Literacy If two events A and B are...Ch. 5.2 - Basic Computation: Addition Rule Given P(A)=0.3...Ch. 5.2 - Basic Computation: Addition Rule Given P(A)=0.7...Ch. 5.2 - Basic Computation: Multiplication Rule Given...Ch. 5.2 - Basic Computation: Multiplication Rule Given...Ch. 5.2 - Basic Computation: Rules of Probability Given...Ch. 5.2 - Basic Computation: Rules of Probability Given...Ch. 5.2 - Critical Thinking Lisa is making up questions for...Ch. 5.2 - Critical Thinking Greg made up another question...Ch. 5.2 - Critical Thinking Suppose two events A and B are...Ch. 5.2 - Critical Thinking Suppose two events A and B are...Ch. 5.2 - Critical Thinking Consider the following events...Ch. 5.2 - Critical Thinking Consider the following events...Ch. 5.2 - General: Candy Colors MM plain candies come in...Ch. 5.2 - Environmental: Land Formations Arches National...Ch. 5.2 - General: Roll Two Dice You roll two fair dice, a...Ch. 5.2 - General: Roll Two Dice You roll two fair dice, a...Ch. 5.2 - General: Roll Two Dice You roll two fair dice, a...Ch. 5.2 - General: Roll Two Dice You roll two fair dice, a...Ch. 5.2 - General: Deck of Cards You draw two cards from a...Ch. 5.2 - General: Deck of Cards You draw two cards from a...Ch. 5.2 - General: Deck of Cards You draw two cards from a...Ch. 5.2 - General: Deck of Cards You draw two cards from a...Ch. 5.2 - Marketing: ToysUSA Today gave the information...Ch. 5.2 - Health Care: Flu Based on data from the...Ch. 5.2 - Focus Problem: Lie Detector Test In this problem,...Ch. 5.2 - Survey: Medical Tests Diagnostic tests of medical...Ch. 5.2 - Survey: Lung/Hear t In an article titled...Ch. 5.2 - Survey: Customer Loyalty Are customers more loyal...Ch. 5.2 - Survey: Sales Approach In a sales effectiveness...Ch. 5.3 - Statistical Literacy What is the main difference...Ch. 5.3 - Statistical Literacy Consider a series of events....Ch. 5.3 - Critical Thinking For each of the following...Ch. 5.3 - Critical Thinking You need to know the number of...Ch. 5.3 - TreeDiagram (a) Draw a tree diagram to display all...Ch. 5.3 - TreeDiagram (a) Draw a tree diagram to display all...Ch. 5.3 - Tree Diagram There are six balls in an urn. They...Ch. 5.3 - Prob. 8PCh. 5.3 - Multiplication Rule for Counting Four wires (red,...Ch. 5.3 - Multiplication Rule for Counting A sales...Ch. 5.3 - Counting: Agriculture Barbara is a research...Ch. 5.3 - Counting: Outcomes You toss a pair of dice. (a)...Ch. 5.3 - Compute P5,2.Ch. 5.3 - Compute P8,3.Ch. 5.3 - Compute P7,7.Ch. 5.3 - Compute P9,9.Ch. 5.3 - Compute C5,2.Ch. 5.3 - Compute C8,3.Ch. 5.3 - Compute C7,7.Ch. 5.3 - Compute C8,8.Ch. 5.3 - Counting: Hiring There are three nursing positions...Ch. 5.3 - Counting: Lottery In the Cash Now lottery game...Ch. 5.3 - Counting: Sports The University of Montana ski...Ch. 5.3 - Counting: Sales During the Computer Daze special...Ch. 5.3 - Counting: Hiring There are 15 qualified applicants...Ch. 5.3 - Counting: Grading One professor grades homework by...Ch. 5.3 - Counting: Hiring The qualified applicant pool for...Ch. 5.3 - Counting: Powerball The Viewpoint of this section,...Ch. 5 - Terminology Consider the following terms: sample...Ch. 5 - Terminology Consider the following situations:...Ch. 5 - Terminology Can two events that mutually exclusive...Ch. 5 - Terminology Consider two counting rules:...Ch. 5 - StatisticalLiteracy Consider the following two...Ch. 5 - Statistical Literacy If two events A and B are...Ch. 5 - Statistical Literacy If two events A and B are...Ch. 5 - Interpretation You are considering two facial...Ch. 5 - Interpretation You are applying for two jobs, and...Ch. 5 - Critical Thinking You are given the information...Ch. 5 - Critical Thinking You are given the information...Ch. 5 - Critical Thinking For a class activity, your group...Ch. 5 - Salary Raise: Women Does it pay to ask for a...Ch. 5 - Salary Raise: Men According to the same survey...Ch. 5 - General: Thumbtack Drop a thumbtack and observe...Ch. 5 - Survey: Reaction to Poison Ivy Allergic reactions...Ch. 5 - General: Two Dice In a game of craps, you roll two...Ch. 5 - Academic: Passing French Class records at Rockwood...Ch. 5 - Combination: City Council There is money to send...Ch. 5 - Basic Computation Compute....Ch. 5 - Counting: Exam Answers There are five...Ch. 5 - Scheduling: College Courses A student must satisfy...Ch. 5 - General: Combination Lock To open a combination...Ch. 5 - General: Combination Lock You have a combination...
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