Essentials Of Statistics For Business & Economics
9th Edition
ISBN: 9780357045435
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 7, Problem 50SE
Shadow Stocks. 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 is contained in the file ShadowStocks. Jack would like to select a simple random sample of 5 of these companies for an interview concerning management practices.
- a. In the file ShadowStock, 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
Select a simple random sample of 5 of the given companies using the given random numbers.
Answer to Problem 50SE
The random sample of 5 of the given companies is tabulated below:
| Company |
Random Number |
| LMI Aerospace | 0.008012 |
| Alpha & Omega Semiconductor | 0.055369 |
| Olympic Steel | 0.059279 |
| Kimball International | 0.144127 |
| International Shipholding | 0.227759 |
Explanation of Solution
Calculation:
The given data represent the Shadow Stock of 30 companies.
Step-by-step procedure to obtain a simple random sample.
- Open the data file Shadow Stocks.
- Sort the random numbers and the corresponding company names into an ascending order.
- Select the companies associated with the first five smallest random numbers.
Thus, the random sample of 5 of the given companies is tabulated below:
| Company |
Random Number |
| LMI Aerospace | 0.008012 |
| Alpha & Omega Semiconductor | 0.055369 |
| Olympic Steel | 0.059279 |
| Kimball International | 0.144127 |
| International Shipholding | 0.227759 |
b.
Expert Solution
To determine
Generate a new random set of random numbers and select a new simple random sample.
Check whether the companies in the new simple random sample are the same as in Part (a).
Answer to Problem 50SE
The new simple random sample of the given companies is as follows:
| Company |
Random Number |
| Five Star Quality Care | 0.018590 |
| SigmaTron International | 0.085862 |
| CSS Industries | 0.097172 |
| REX American Resources Corp | 0.122113 |
| VOXX International Corp | 0.158389 |
The companies in the new random samples do not match with the companies in the random sample of Part (a).
Explanation of Solution
Calculation:
A new simple random sample is to be obtained.
Software procedure:
Step-by-step software procedure to obtain a random sample using EXCEL.
- Open the EXCEL.
- Enter company names in column A.
- Generate a new set of random numbers using the formula “=RAND()” in column B.
- Sort the random numbers and the corresponding company names into an ascending order.
- Select the companies associated with the first five smallest random numbers.
The output obtained using EXCEL software is as follows:
Therefore, the random sample of 5 of the given companies is as follows:
| Company |
Random Number |
| Five Star Quality Care | 0.018590 |
| SigmaTron International | 0.085862 |
| CSS Industries | 0.097172 |
| REX American Resources Corp | 0.122113 |
| VOXX International Corp | 0.158389 |
Here, it is observed that the companies in the new random sample do not match with the companies in the random sample of Part (a).
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Business discuss
Business discuss
I just need to know why this is wrong below:
What is the test statistic W? W=5 (incorrect)
and
What is the p-value of this test? (p-value < 0.001-- incorrect)
Use the Wilcoxon signed rank test to test the hypothesis that the median number of pages in the statistics books in the library from which the sample was taken is 400. A sample of 12 statistics books have the following numbers of pages
pages
127
217
486
132
397
297
396
327
292
256
358
272
What is the sum of the negative ranks (W-)? 75 What is the sum of the positive ranks (W+)? 5What type of test is this? two tailedWhat is the test statistic W? 5 These are the critical values for a 1-tailed Wilcoxon Signed Rank test for n=12
Alpha Level
0.001
0.005
0.01
0.025
0.05
0.1
0.2
Critical Value
75
70
68
64
60
56
50
What is the p-value for this test? p-value < 0.001
Chapter 7 Solutions
Essentials Of Statistics For Business & Economics
Ch. 7.2 - Consider a finite population with five elements...Ch. 7.2 - Assume a finite population has 350 elements. Using...Ch. 7.2 - Industrial Stock Performance. Fortune publishes...Ch. 7.2 - The 10 most active stocks on the New York Stock...Ch. 7.2 - A student government organization is interested in...Ch. 7.2 - 6. The County and City Data Book, published by the...Ch. 7.2 - 7. Assume that we want to identify a simple random...Ch. 7.2 - Prob. 8ECh. 7.2 - Returns on Mutual Finds. The Wall Street Journal...Ch. 7.2 - 10. Indicate which of the following situations...
Ch. 7.3 - The following data are from a simple random...Ch. 7.3 - Prob. 12ECh. 7.3 - 13. A sample of 5 months of sales data provided...Ch. 7.3 - 14. Morningstar publishes ratings data on 1208...Ch. 7.3 - Rating Wines. According to Wine-Searcher, wine...Ch. 7.3 - AARP Survey. In a sample of 426 U.S. adults age 50...Ch. 7.3 - Attitudes Toward Automation. The Pew American...Ch. 7.5 - 18. 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 - 20. Assume the population standard deviation is σ...Ch. 7.5 - 21. Suppose a random sample of size 50 is selected...Ch. 7.5 - Sampling Distribution for Electronic Associates,...Ch. 7.5 - Finding Probabilities for Electronic Associates,...Ch. 7.5 - Barrons reported that the average number of weeks...Ch. 7.5 - SAT Scores. In May 2018, The College Board...Ch. 7.5 - Federal Income Tax Returns. The Wall Street...Ch. 7.5 - College Graduate-Level Wages. The Economic Policy...Ch. 7.5 - State Rainfalls. The state of California has a...Ch. 7.5 - Income Tax Return Preparation Fees. The CPA...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 - 32. A population proportion is .40. A sample of...Ch. 7.6 - Prob. 33ECh. 7.6 - 34. The population proportion is .30. What is the...Ch. 7.6 - Orders from First-Time Customers. The president of...Ch. 7.6 - The Wall Street Journal reported that the age at...Ch. 7.6 - Food Waste. In 2017, the Restaurant Hospitality...Ch. 7.6 - Unnecessary Medical Care. According to Readers...Ch. 7.6 - Better Business Bureau Complaints. In 2016 the...Ch. 7.6 - 40. The Grocery Manufacturers of America reported...Ch. 7.6 - 41. The Food Marketing Institute shows that 17% of...Ch. 7.9 - A population has a mean of 400 and a standard...Ch. 7.9 - Assume the population standard deviation is = 25....Ch. 7.9 - Prob. 44ECh. 7.9 - Assume that the population proportion is .44....Ch. 7.9 - Vacation Hours Earned by Blue-Collar and Service...Ch. 7.9 - MPG for New Cars. The New York Times reported that...Ch. 7.9 - Repeat Purchases. The president of Colossus.com,...Ch. 7.9 - Landline Telephone Service. According to the U.S....Ch. 7 - Shadow Stocks. Jack Lawler, a financial analyst,...Ch. 7 - Personal Health Expenditures. Data made available...Ch. 7 - 44. Foot Locker uses sales per square foot as a...Ch. 7 - Airline Fares. The mean airfare for flights...Ch. 7 - After deducting grants based on need, the average...Ch. 7 - Prob. 55SECh. 7 - Survey Research Results. A researcher reports...Ch. 7 - Production Quality Control. A production process...Ch. 7 - Australians and Smoking. Reuters reports that 15...Ch. 7 - 51. A market research firm conducts telephone...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 - Life of Compact Fluorescent Lights. In 2018, the...Ch. 7 - Typical Home Internet Usage. According to USC...Ch. 7 - Undeliverable Mail Pieces. Of the 155 billion...Ch. 7 - U.S. Drivers and Speeding. ABC News reports that...Ch. 7 - Managerial Report Prepare a managerial report that...
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
- ons 12. A sociologist hypothesizes that the crime rate is higher in areas with higher poverty rate and lower median income. She col- lects data on the crime rate (crimes per 100,000 residents), the poverty rate (in %), and the median income (in $1,000s) from 41 New England cities. A portion of the regression results is shown in the following table. Standard Coefficients error t stat p-value Intercept -301.62 549.71 -0.55 0.5864 Poverty 53.16 14.22 3.74 0.0006 Income 4.95 8.26 0.60 0.5526 a. b. Are the signs as expected on the slope coefficients? Predict the crime rate in an area with a poverty rate of 20% and a median income of $50,000. 3. Using data from 50 workarrow_forward2. The owner of several used-car dealerships believes that the selling price of a used car can best be predicted using the car's age. He uses data on the recent selling price (in $) and age of 20 used sedans to estimate Price = Po + B₁Age + ε. A portion of the regression results is shown in the accompanying table. Standard Coefficients Intercept 21187.94 Error 733.42 t Stat p-value 28.89 1.56E-16 Age -1208.25 128.95 -9.37 2.41E-08 a. What is the estimate for B₁? Interpret this value. b. What is the sample regression equation? C. Predict the selling price of a 5-year-old sedan.arrow_forwardian income of $50,000. erty rate of 13. Using data from 50 workers, a researcher estimates Wage = Bo+B,Education + B₂Experience + B3Age+e, where Wage is the hourly wage rate and Education, Experience, and Age are the years of higher education, the years of experience, and the age of the worker, respectively. A portion of the regression results is shown in the following table. ni ogolloo bash 1 Standard Coefficients error t stat p-value Intercept 7.87 4.09 1.93 0.0603 Education 1.44 0.34 4.24 0.0001 Experience 0.45 0.14 3.16 0.0028 Age -0.01 0.08 -0.14 0.8920 a. Interpret the estimated coefficients for Education and Experience. b. Predict the hourly wage rate for a 30-year-old worker with four years of higher education and three years of experience.arrow_forward
- 1. If a firm spends more on advertising, is it likely to increase sales? Data on annual sales (in $100,000s) and advertising expenditures (in $10,000s) were collected for 20 firms in order to estimate the model Sales = Po + B₁Advertising + ε. A portion of the regression results is shown in the accompanying table. Intercept Advertising Standard Coefficients Error t Stat p-value -7.42 1.46 -5.09 7.66E-05 0.42 0.05 8.70 7.26E-08 a. Interpret the estimated slope coefficient. b. What is the sample regression equation? C. Predict the sales for a firm that spends $500,000 annually on advertising.arrow_forwardCan you help me solve problem 38 with steps im stuck.arrow_forwardHow do the samples hold up to the efficiency test? What percentages of the samples pass or fail the test? What would be the likelihood of having the following specific number of efficiency test failures in the next 300 processors tested? 1 failures, 5 failures, 10 failures and 20 failures.arrow_forward
- The battery temperatures are a major concern for us. Can you analyze and describe the sample data? What are the average and median temperatures? How much variability is there in the temperatures? Is there anything that stands out? Our engineers’ assumption is that the temperature data is normally distributed. If that is the case, what would be the likelihood that the Safety Zone temperature will exceed 5.15 degrees? What is the probability that the Safety Zone temperature will be less than 4.65 degrees? What is the actual percentage of samples that exceed 5.25 degrees or are less than 4.75 degrees? Is the manufacturing process producing units with stable Safety Zone temperatures? Can you check if there are any apparent changes in the temperature pattern? Are there any outliers? A closer look at the Z-scores should help you in this regard.arrow_forwardNeed help pleasearrow_forwardPlease conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. 4. One-Way ANOVA: Analyze the customer satisfaction scores across four different product categories to determine if there is a significant difference in means. (Hints: The null can be about maintaining status-quo or no difference among groups) H0 = H1=arrow_forward
- Please conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points 2. Two-Sample T-Test: Compare the average sales revenue of two different regions to determine if there is a significant difference. (Hints: The null can be about maintaining status-quo or no difference among groups; if alternative hypothesis is non-directional use the two-tailed p-value from excel file to make a decision about rejecting or not rejecting null) H0 = H1=arrow_forwardPlease conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points 3. Paired T-Test: A company implemented a training program to improve employee performance. To evaluate the effectiveness of the program, the company recorded the test scores of 25 employees before and after the training. Determine if the training program is effective in terms of scores of participants before and after the training. (Hints: The null can be about maintaining status-quo or no difference among groups; if alternative hypothesis is non-directional, use the two-tailed p-value from excel file to make a decision about rejecting or not rejecting the null) H0 = H1= Conclusion:arrow_forwardPlease conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. The data for the following questions is provided in Microsoft Excel file on 4 separate sheets. Please conduct these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. 1. One Sample T-Test: Determine whether the average satisfaction rating of customers for a product is significantly different from a hypothetical mean of 75. (Hints: The null can be about maintaining status-quo or no difference; If your alternative hypothesis is non-directional (e.g., μ≠75), you should use the two-tailed p-value from excel file to…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Statistics 4.1 Point Estimators; Author: Dr. Jack L. Jackson II;https://www.youtube.com/watch?v=2MrI0J8XCEE;License: Standard YouTube License, CC-BY
Statistics 101: Point Estimators; Author: Brandon Foltz;https://www.youtube.com/watch?v=4v41z3HwLaM;License: Standard YouTube License, CC-BY
Central limit theorem; Author: 365 Data Science;https://www.youtube.com/watch?v=b5xQmk9veZ4;License: Standard YouTube License, CC-BY
Point Estimate Definition & Example; Author: Prof. Essa;https://www.youtube.com/watch?v=OTVwtvQmSn0;License: Standard Youtube License
Point Estimation; Author: Vamsidhar Ambatipudi;https://www.youtube.com/watch?v=flqhlM2bZWc;License: Standard Youtube License