CHAPTER 3

DESCRIBING DATA: NUMERICAL MEASURES

88. a. The mean is $73,063,563. The median is $66,191,417.
The standard deviation is $34,233,970.
b. In 2006, the mean age is 25.20. The median age is 14.50.
The standard deviation is 25.94.
c. The mean is 45,913. The median is 44,174.
The standard deviation is 5894.
CHAPTER 5
A SURVEY OF PROBABILITY CONCEPTS
56. a. 0.6561 found by (0.9)(0.9)(0.9)(0.9)
b. 0.0001 found by (0.1)(0.1)(0.1)(0.1)
c. 0.3439 found by 1 − 0.6561
CHAPTER 6
DISCRETE PROBABILITY DISTRIBUTIONS
21 e −2
64. a. P (1) = = 0.2707
1!
b. 0.0526, found by 0.0361 + 0.0120 +0.0034 +0.0009 + 0.0002 +0.0000
2 0 e −2
c. P (0) = = 0.1353
0!
CHAPTER 7
CONTINUOUS PROBABILITY DISTRIBUTIONS
50. a. 0.0047, found by 0.5000 – 0.4953
b. 0.1241, found by 0.4292 – 0.3051
c. 0.8413, found by 0.5000 + 0.3413
70,000 − 60,000
d. No, because z = = 5.0
2000
CHAPTER 8
SAMPLING METHODS AND THE CENTRAL LIMIT THEOREM
25 − 23.5
38. a. z= = 2.12 So probability is 0.0170, found by 0.5000 −0.4830.
5 50
22.5 − 23.5
b. z= = −1.41 So probability is 0.9037, found by 0.4207 + 0.4830.
5 50
 5 
c. Between 22.33 and 24.67, found by 23.50 ± 1.65  .
 50 
CHAPTER 9
ESTIMATION AND CONFIDENCE INTERVALS
 $1000 
54. a. Between $10,592 and $11,366, found by $10,979 ± 1.729  .
 20 
b. 107, found by {(2.576 × 1000)/250}2 = 106.2

CHAPTER 10
ONE SAMPLE TESTS OF HYPOTHESIS
42. H0 :µ ≥ 3.5 H1 :µ < 3.5 Reject H0 if t < –1.746
Assume the population is normally distributed.

1
 2.955 − 3.5
t= = −4.01
0.56 / 17
Reject H0. The mean time is less than 3.5 hours. The p-value is less than 0.0005.
CHAPTER 11
TWO SAMPLE TESTS OF HYPOTHESIS
6.3
t= = 2.258
58. H0: µ d ≤ 0 H 1: µ d > 0 12.48 / 20
The p-value is 0.018. For a 5% significance level the decision rule is: Reject H0 if t > 1.729.
Reject the null hypothesis. It is reasonable to conclude the percent is less now.
CHAPTER 12
ANALYSIS OF VARIANCE
42. For Cars For Gasoline
Ho: µ 1 = µ 2 = µ 3 Ho: µ 1 = µ 2 = µ 3 = µ 4
H1: Means not equal H1: Means not equal
Ho is rejected if F > 5.14 Ho is rejected if F > 4.76
Source SS df MS F
Treatment 3.92 2 1.96 1.39
Blocks 10.21 3 3.40 2.41
Error 8.46 6 1.41
Total 22.59 11
a. There is no difference between the two types of gasoline because 2.41 is less than 4.76.
b. There is no difference in the cars because 1.39 is less than 5.14.
CHAPTER 13
LINEAR REGRESSION AND CORRELATION
37. Ho: ρ ≤ 0 H 1: ρ > 0 Reject Ho if t > 1.714
0.94 25 − 2
t= = 13.213
1 − (0.94) 2
Reject Ho there is a positive correlation between passengers and weight of luggage.

40. a.
Scatterplot of Income vs Occupied
1550

1500
Income

1450

1400

1350

10 20 30 40 50 60
Occupied

Revenue increases slightly as the number of occupied rooms increases.

b. Pearson correlation of Income and Occupied = 0.423
c. H o: ρ ≤ 0 H 1: ρ > 0 Reject Ho if t > 1.319 df = 23
0.423 25 − 2
t = = 2.24 Reject Ho.
1 − (0.423 ) 2
There is a positive correlation between revenue and occupied rooms.

2
 d. 17.9%, found by (0.423)2, of the variation in revenue is explained by variation in
occupied rooms
CHAPTER 14
MULTIPLE REGRESSION AND CORRELATION ANALYSIS
17. a. $28,000
SSR 3050
b. 0.5809 found by R 2 = =
SStotal 5250
c. 9.199 found by 84.62
d. Ho is rejected if F > 2.97 (approximately) Computed F = 1016.67/84.62 = 12.01 Ho is
rejected. At least one regression coefficient is not zero.
e. If computed t is to the left of −2.056 or to the right of 2.056, the null hypothesis in each of
these cases is rejected. Computed t for X2 and X3 exceed the critical value. Thus,
“population” and “advertising expenses” should be retained and “number of
competitors,” X1 dropped.

18. a. The strongest relationship is between sales and income (0.964). A problem could occur if
both “cars” and “outlets” are part of the final solution. Also, outlets and income are
strongly correlated (0.825). This is called multicollinearity.
1593.81
b. R2 = = 0.9943
1602.89
c. Ho is rejected. At least one regression coefficient is not zero. The computed value of F is
140.42.
d. Delete “outlets” and “bosses”. Critical values are −2.776 and 2.776
1593.66
e. R2 = = 0.9942
1602.89
There was little change in the coefficient of determination
f. The normality assumption appears reasonable.
g. There is nothing unusual about the plots.
CHAPTER 17
NONPARAMETRIC METHODS: CHI-SQUARE APPLICATIONS
22. Ho: Distribution with Poisson with µ = 2. H1: Distribution is not Poisson with µ = 2
Decision rule: If χ 2 > 9.488 reject Ho.
Applications fo fe (fo ! fe)2/fe
0 50 40.59 2.1815
1 77 81.21 0.2183
2 81 81.21 0.0005
3 48 54.12 0.6921
4 31 27.06 0.5737
5 or more 13 15.78 0.4898
Total 300 4.1558
Do not reject Ho. It is reasonable to conclude the distribution is Poisson with µ =2.