EBK STATISTICS FOR BUSINESS & ECONOMICS
13th Edition
ISBN: 8220101456380
Author: Anderson
Publisher: CENGAGE L
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Textbook Question
Chapter 7, Problem 42SE
Jack Lawler, a financial analyst, wants to prepare an article on the Shadow Stock portfolio developed by the American Association of Individual Investors (AAII). A list of the 30 companies in the Shadow Stock portfolio as of March 2014 is contained in the DATAfile named ShadowStocks (AAII website March 27, 2014). Jack would like to select a simple random sample of 5 of these companies for an interview concerning management practices.
- a. In the DATAfile the Shadow Stock companies are listed in column A of an Excel worksheet. In column B we have generated a random number for each of the companies. Use these random numbers to select a simple random sample of 5 of these companies for Jack.
- b. Generate a new set of random numbers and use them to select a new simple random sample. Did you select the same companies?
a.
Expert Solution
To determine
Draw a random sample of 5 of the companies of Jack.
Answer to Problem 42SE
The random sample of 5 of these companies are tabulated below,
| Company |
Random Number |
| Hardinge Inc. (HDNG) | 0.4298384 |
| Medical Action Industries (MDCI) | 0.3792011 |
| Mitcham Industries, Inc. (MIND) | 0.4257654 |
| Rocky Brands Inc (RCKY) | 0.7556817 |
| Willis Lease Finance Corporati (WLFC) | 0.9063183 |
Explanation of Solution
Calculation:
Answers may vary. One of the possible answers is given:
The given data represents the Shadow Stock of 30 companies.
Software procedure:
Step-by-step software procedure to obtain a random samples using MINITAB software:
- Click on Calc > Random Data > Sample from columns.
- In Number of rows to sample, enter 5.
- In the Store in column, enter column C2.
- Click OK.
- Click on Data > Display Data
- Select C2.
- Click Ok.
Output using MINITAB software is as follows:
Therefore, the random sample of 5 of these companies is,
| Company |
Random Number |
| Hardinge Inc. (HDNG) | 0.4298384 |
| Medical Action Industries (MDCI) | 0.3792011 |
| Mitcham Industries, Inc. (MIND) | 0.4257654 |
| Rocky Brands Inc (RCKY) | 0.7556817 |
| Willis Lease Finance Corporati (WLFC) | 0.9063183 |
b.
Expert Solution
To determine
Generate a new simple random sample and compare it with the sample in part (a).
Answer to Problem 42SE
The random sample of 5 of these companies is,
| Company |
Random Number |
| Marlin Business Services Corp. (MRLN) | 0.6827254 |
| International Shipholding Corp (ISH) | 0.227759457 |
| VOXX International Corp (VOXX) | 0.629674789 |
| Hardinge Inc. (HDNG) | 0.429838402 |
| Rocky Brands Inc (RCKY) | 0.755681737 |
The random samples in these data set does not match with the random samples of part (a).
Explanation of Solution
Calculation:
Software procedure:
Step-by-step software procedure to obtain a random sample using MINITAB software is as follows,
- Click on Calc > Random Data > Sample from columns.
- In Number of rows to sample, enter 5.
- In the Store in column, enter column C2.
- Click OK
- Click on Data > Display Data
- Select C2.
- Click Ok.
Output using MINITAB software is as follows,
Therefore the random sample of 5 of these companies is,
| Company |
Random Number |
| Marlin Business Services Corp. (MRLN) | 0.6827254 |
| International Shipholding Corp (ISH) | 0.227759457 |
| VOXX International Corp (VOXX) | 0.629674789 |
| Hardinge Inc. (HDNG) | 0.429838402 |
| Rocky Brands Inc (RCKY) | 0.755681737 |
Here, it is observed that the drawn sample is not same as the sample drawn in part (a).
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Chapter 7 Solutions
EBK STATISTICS FOR BUSINESS & ECONOMICS
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Ch. 7.3 - The following data are from a simple random...Ch. 7.3 - A survey question for a sample of 150 individuals...Ch. 7.3 - A sample of 5 months of sales data provided the...Ch. 7.3 - Morningstar publishes ratings data on 1208 company...Ch. 7.3 - The National Football League (NFL) polls fans to...Ch. 7.3 - A sample of 426 U.S. adults age 50 and older were...Ch. 7.3 - One of the questions in the Pew Internet American...Ch. 7.5 - A population has a mean of 200 and a standard...Ch. 7.5 - A population has a mean of 200 and a standard...Ch. 7.5 - Assume the population standard deviation is = 25....Ch. 7.5 - Suppose a random sample of size 50 is selected...Ch. 7.5 - Refer to the EAI sampling problem. Suppose a...Ch. 7.5 - In the EAI sampling problem (see Figure 7.5), we...Ch. 7.5 - Barrons reported that the average number of weeks...Ch. 7.5 - The College Board reported the following mean...Ch. 7.5 - For the year 2010, 33% of taxpayers with adjusted...Ch. 7.5 - The Economic Policy Institute periodically issues...Ch. 7.5 - The state of California has a mean annual rainfall...Ch. 7.5 - The mean preparation fee HR Block charged retail...Ch. 7.5 - To estimate the mean age for a population of 4000...Ch. 7.6 - A sample of size 100 is selected from a population...Ch. 7.6 - A population proportion is .40. A sample of size...Ch. 7.6 - Assume that the population proportion is .55....Ch. 7.6 - The population proportion is .30. What is the...Ch. 7.6 - The president of Doerman Distributors, Inc.,...Ch. 7.6 - The Wall Street Journal reported that the age at...Ch. 7.6 - People end up tossing 12% of what they buy at the...Ch. 7.6 - Forty-two percent of primary care doctors think...Ch. 7.6 - In 2008 the Better Business Bureau settled 75% of...Ch. 7.6 - The Grocery Manufacturers of America reported that...Ch. 7.6 - The Food Marketing Institute shows that 17% of...Ch. 7 - Jack Lawler, a financial analyst, wants to prepare...Ch. 7 - The latest available data showed health...Ch. 7 - Foot Locker uses sales per square foot as a...Ch. 7 - Allegiant Airlines charges a mean base fare of 89....Ch. 7 - After deducting grants based on need, the average...Ch. 7 - Three firms carry inventories that differ in size....Ch. 7 - A researcher reports survey results by stating...Ch. 7 - A production process is checked periodically by a...Ch. 7 - Fifteen percent of Australians smoke. By...Ch. 7 - A market research firm conducts telephone surveys...Ch. 7 - Advertisers contract with Internet service...Ch. 7 - The proportion of individuals insured by the...Ch. 7 - Lori Jeffrey is a successful sales representative...Ch. 7 - Managerial Report Prepare a managerial report that...
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