Chapter 3 Descriptive Statistics: Numerical Measures

Solutions: 5. a. b.
x! 7xi 3181 ! ! $159 n 20

Median 10th $160 11th $162 Median =

Los Angeles Seattle

160  162 ! $161 2

c.

Mode = $167 San Francisco and New Orleans

d.

25 i! 20 ! 5 100

5th 6th
Q1 !

$134 $139

134  139 ! $136.50 2

e.

75 i! 20 ! 15 100

15th $167 16th $173

Q3 ! 167  173 ! $170 2

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Chapter 3

10. a. b.

Minimum = .4%; Maximum = 3.5%

7xi = 69 x!

Median is average of 15th and 16th items. Both are 2.5%, so the median is 2.5%. The mode is 2.7%; forecast by 4 economists. c. For Q1,
25 th i! 30 ! 7.5; round up and use the 8 item 100

Q1 = 2.0% For Q3,

75 i! 30 ! 22.5; round up and use the 23rd item 100

Q3 = 2.8% d. Generally, the 2% to 3% growth should be considered optimistic.

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7xi 69 ! ! 2.3 n 30

Descriptive Statistics: Numerical Measures

15.

15, 20, 25, 25, 27, 28, 30, 34

i! 25 (8) ! 2 100 75 (8) ! 6 100 Q1 !

Range = 34 - 15 = 19
20  25 ! 22.5 2 28  30 ! 29 2

i!

Q3 !

IQR = Q3 - Q1 = 29 - 22.5 = 6.5

x! 7xi 204 ! ! 25.5 n 8 7( xi  x ) 2 242 ! ! 34.57 7 n 1

s2 !

s ! 34.57 ! 5.88

17. a.

With DVD

x!

7xi 2050 ! ! 410 n 5 7xi 1550 ! ! 310 n 5

Without DVD With DVD b. With DVD

x!

$410 - $310 = $100 more expensive Range = 500 - 300 = 200 s2 ! 7( xi  x ) 2 22000 ! ! 5500 n 1 4

s ! 5500 ! 74.2 Without DVD Range = 360 - 290 = 70 s2 ! 7( xi  x )2 3200 ! ! 800 n 1 4

s ! 800 ! 28.3 Models with DVD players have the greater variation in prices. The price range is $300 to $500. Models without a DVD player have less variation in prices. The price range is $290 to $360.

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Chapter 3

22. a.

Freshmen x !

7xi 32125 ! ! 1285 n 25 7xi 8660 ! ! $433 n 20

Seniors

x!

Freshmen spend almost three times as much on back-to-school items as seniors. b. Freshmen Range = 2094 374 = 1720 Seniors c. Freshmen 25 i! 25 ! 6.25 100 75 i! 25 ! 18.75 100 Q1 = 1079 (7th item) Range = 632 280 = 352

Q3 = 1475 (19th item)

IQR = Q3 - Q1 = 1479 1075 = 404 Seniors 25 i! 20 ! 5 100 75 i! 20 ! 15 100

Q1 ! 368  373 ! 370.5 2 489  515 ! 502 2

Q1 !

IQR = Q3 - Q1 = 502 370.5 = 131.5 d.

s! 7( xi  x ) 2 n 1 3233186 ! 367.04 24 178610 ! 96.96 19

Freshmen s !

Seniors e.

s!

All measures of variability show freshmen have more variation in back-to-school expenditures.

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Descriptive Statistics: Numerical Measures

25.

x!

7xi 75 ! ! 15 n 5 7( xi  x ) 2 ! n 1 z! 64 !4 4

s2 !

10

10  15 ! 1.25 4

20 12

z!

20  15 ! 1.25 4 12  15 z! ! .75 4 17  15 ! .50 4 16  15 z! ! .25 4 z!

17 16

30. a. $3.90 is one standard deviation below the mean and $4.10 is one standard deviation above the mean. The empirical rule says that approximately 68% of gasoline sales are in the price range. b. Part (a) shows that approximately 68% of the gasoline sales are between $3.90 and $4.10. Since the bell-shaped distribution is symmetric, approximately half of 68%, or 34%, of the gasoline sales should be between $3.90 and the mean price of $4.00. $4.20 is two standard deviations above the mean price of $4.00. The empirical rule says that approximately 95% of the gasoline sales should be within two standard deviations of the mean. Thus, approximately half of 95%, or 47.5%, of the gasoline sales should be between the mean price of $4.00 and $4.20. The percentage of gasoline sales between $3.90 and $4.20 should be approximately 34% + 47.5% = 81.5%. c. $4.20 is two standard deviations above the mean and the empirical rule says that approximately 95% of the gasoline sales should be within two standard deviations of the mean. Thus, 1 - 95% = 5% of the gasoline sales should be more than two standard deviations from the mean. Since the bell-shaped distribution is symmetric, we expected half of 5%, or 2.5%, would be more than $4.20.

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Chapter 3

31. a.

607 is one standard deviation above the mean. Approximately 68% of the scores are between 407 and 607 with half of 68%, or 34%, of the scores between the mean of 507 and 607. Also, since the distribution is symmetric, 50% of the scores are above the mean of 507. With 50% of the scores above 507 and with 34% of the scores between 507 and 607, 50% - 34% = 16% of the scores are above 607. 707 is two standard deviations above the mean. Approximately 95% of the scores are between 307 and 707 with half of 95%, or 47.5%, of the scores between the mean of 507 and 707. Also, since the distribution is symmetric, 50% of the scores are above the mean of 507. With 50% of the scores above 507 and with 47.5% of the scores between 507 and 707, 50%- 47.5% = 2.5% of the scores are above 707. Approximately 68% of the scores are between 407 and 607 with half of 68%, or 34%, of the scores between 407 and the mean of 507. Approximately 95% of the scores are between 307 and 707 with half of 95%, or 47.5%, of the scores between 307 and the mean of 507. Approximately 68% of the scores are between 407 and 607 with half of 68%, or 34%, of the scores between the mean of 507 and 607. Thus, 47.5% + 34% = 81.5% of the scores are between 307 and 607.
z! x  Q 2300  3100 ! ! .67 W 1200 x  Q 4900  3100 ! ! 1.50 W 1200

b.

c. d.

32. a.

b. c.

z!

$2300 is .67 standard deviations below the mean. $4900 is 1.50 standard deviations above the mean. Neither is an outlier.
z! x  Q 13000  3100 ! ! 8.25 W 1200

d.

$13,000 is 8.25 standard deviations above the mean. This cost is an outlier.

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Descriptive Statistics: Numerical Measures

44. a.

x!

7xi 837.5 ! ! 18.2 n 46

Median 23rd position 15.1 24th position 15.6 Median =

15.1  15.6 ! 15.35 2

b.

Q1:

25 i! n ! .25(46) ! 11.5 100

Q3:

12th position: Q1 = 11.7 75 i! n ! .75(46) ! 34.5 100 35th position: Q3 = 23.5

c. d.

3.4, 11.7, 15.35, 23.5, 41.3 IQR = 23.5 - 11.7 = 11.8 Lower Limit = Q1 - 1.5(IQR) = 11.7 - 1.5(11.8) = -6 Upper Limit = Q3 + 1.5(IQR) = 23.5 + 1.5(11.8) = 41.2 Yes, one: Alger Small Cap 41.3 Use 0

10

20

30

40

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Chapter 3

51. a.

x!

7xi 420 ! ! 35 n 12 7xi 288 ! ! 24 n 12 7( xi  x )( yi  y ) 3446 ! ! 313.27 n 1 12  1 7 ( xi  x ) 2 4058 ! ! 19.21 n 1 12  1 7( yi  y ) 2 3448 ! ! 17.70 n 1 12  1 sxy sx s y ! 313.27 ! .92 19.21(17.70)

b.

x!

c.

sxy !

sx !

sy !

rxy !

High positive correlation.

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