Question: An economist wants to determine whether the

> Steve is driving at 35 mi/h when he makes an emergency stop. His brakes lock and his tires leave four skid marks of equal length. The drag factor for the road surface was 0.97 and his brakes were operating at 90% efficiency. How long might the skid marks

> Explain how the quote can be interpreted given what you have learned.

> Sarah sold her Disney shares as indicated on the ticker. a. How many shares did she sell? b. How much did each share sell for? c. What was the total value of all the shares Sarah sold? d. Suppose that the next DIS trade that comes across the ticker

> Matt deposited $400 into an account that compounds interest daily at a rate of 1.095%. At the end of a certain period of time, he had a balance in the account of $417.91. a. Write an expression for the account term t but do not evaluate it. b. Using th

> Jess and Oscar have $200,000 to invest in a savings account that pays 2.875% interest compounded quarterly. How many years will it take for the account to earn $30,000 in interest? Round your answer to the nearest tenth of a year.

> Jasmine wants to start saving to purchase an apartment. Her goal is to save $225,000. If she deposits $180,000 into an account that pays 3.12% interest compounded monthly, approximately how long will it take for her money to grow to the desired amount? R

> In each of the following compound interest equations, the variable n represents the number of times per year that the interest is compounded. Use common logarithms to write an expression for n. Evaluate the expression to the nearest integer. a. 6252.40 5

> In each of the equations below, t represents the term of a savings account. Find the value of t to the nearest tenth of a year. log103 (1.975) a. t= 12 log, 2s (1.8) b. t = 6 log. (1.75) c. t = 2 log.0325 (1.636) d. t = 3 log,.002 (1.4875) e. t = 12

> Solve for t in each of the following compound interest equations. Leave your answer in terms of a logarithm. a. 5490 = 4800(1.009)3t b. 3900 = 3000(1.006)6t c. 1460 = 1000(1.0015)12t d. 5951.70 = 5000(1.00875)4t e. 33,010.20 = 30,000(1.008)4t

> Rewrite each of the compound interest equations in question 2 as an exponential equation in the standard form a=bc Question 2: a. 2254 = 2000(1.002)12t b. 244.04 = 200(1.01)2t c. 6900 = 6000(1.006)6t d. 15669.93 = 10000(1.00375)12t e. 268.57 = 100(

> In each of the following compound interest equations with t representing the account term, determine the number of times the account is compounded per year and the interest rate percent. a. 2254 = 2000(1.002)12t b. 244.04 = 200(1.01)2t c. 6900 = 6000(

> Find the term t of each continuously compounded account below rounded to the nearest tenth of a year. In the chart, B is the ending balance, P is the principal, and r is the interest rate expressed as a percent. B a. $2,124.00 $2,000.00 2% b. $957.6

> Marcy is a textbook sales representative. Traveling to visit schools in her region takes her across toll bridges frequently each month, as indicated in the following matrix. The round trip tolls on three bridges are listed in the following matrix: Fi

> The expense and revenue functions yield a profit function, but the equation can represent no profit made at any price. One of the profit functions in Exercises 6–9 models such a situation. a. Determine which profit function models a no-profit situation.

> In each case, the blue graph represents the expense function and the black graph represents the revenue function. Describe the profit situation in terms of the expense and revenue functions. dollars $100,000 price 100

> The following table shows the number (in 1,000s) of breakfasts sold at JJ Diner. Use this information, along with the price data provided in the previous exercise, to a. Compute and interpret the Laspeyres price index. b. Compute and interpret the Pa

> JJ Diner is a small mom and pop restaurant in Lincoln, Nebraska. They offer three choices for breakfast: omelets, pancakes, or cereal. The average prices (in $) for these options for 2007, 2008, and 2009 are shown in the accompanying table. a. Compute

> The MIT Sloan School of Management is one of the leading business schools in the United States. The following table contains the tuition data for the masters program in the Sloan School of Management. a. Use 2004 as the base year to form a simple price

> According to dollar cost averaging, a fixed amount of money is invested periodically in a portfolio. Consequently, more units of a financial asset are purchased when prices are low and fewer units are purchased when prices are high. Robert Dudek follows

> The following table shows the monthly adjusted closing price per share of Microsoft Corporation for 2009. a. Construct a simple price index with January 2009 as the base. b. What is the percentage price change in July relative to January? c. What is

> Consider the following average monthly prices for regular gasoline in California in 2008. a. Construct a simple price index with January 2008 as the base. b. Determine the percentage change in the average gasoline price in California from January to J

> Use the price and quantity information in the previous exercise to compute the following aggregate price indices, given a base year of 2008: Previous exercise: Consider the following price and quantity data for three products from 2008 to 2010. a. T

> Consider the following price and quantity data for three products from 2008 to 2010. a. Compute the simple price index for each product, using 2008 as the base year. b. Compare the relative price movements of the three products. Year Product 1 Pro

> Consider the following price data from 1994 to 2002. a. Compute the simple price index using 1994 as the base year. b. Determine the percentage change in prices from 1994 to 1998. Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 Price 62 60 64 67

> Consider the following simple price index created with a base year of 2004. a. Update the index numbers using a revised base year of 2008. b. Determine the percentage change in price from 2004 to 2012. c. Determine the percentage change in price from

> Consider the following competing hypotheses and accompanying sample data drawn from a matched-pairs sample. a. Determine the value of the test statistic using a normal approximation for T. b. Calculate the p-value. c. At the 5% significance level, wha

> Consider the following adjusted closing stock prices for Ford Motor Company (Ford) and General Motors Company (GM). Compute and compare the monthly returns for both companies from January 2017 to May 2017. Date Ford GM 1/1/2017 12.36 36.61 2/1/2017

> Consider the following adjusted closing stock prices for Intel Corporation. Find the monthly returns for January and February of 2017. Date ………………………………………………………………………………. Adjusted Closing Price January 1, 2017 ………………………………………………………………………………………. 36.82 F

> You would like to invest $20,000 for a year in a risk-free investment. A conventional certificate of deposit (CD) offers a 4.6% annual rate of return. You are also considering an “Inflation-Plus” CD which offers a real rate of return of 2.2% regardless o

> Bill Anderson purchased 1,000 shares of Microsoft Corporation stock for $17,100 at the beginning of 2009. At the end of the year, he sold all of his Microsoft shares at $30.48 a share. He also earned a dividend of $0.52 per share during the year. a. Wha

> A portfolio manager invested $1,500,000 in bonds. In one year, the market value of the bonds dropped to $1,485,000. The interest payments during the year totaled $105,000. a. What was the manager’s total rate of return for the year? b. What was the man

> The price of a stock has gone up from $24 to $35 in one year. It also paid a year-end dividend of $1.20. What is the stock’s (a) income yield, (b) capital gains yield, and (c) total return?

> The year-end price and dividend information on a stock is given in the following table. a. What is the nominal return of the stock in years 2 and 3? b. What is the corresponding real return if the inflation rates for years 2 and 3 were 2.8% and 1.6%,

> You bought a corporate bond last year for $980. You received a coupon payment (interest) of $60, and the bond is currently selling for $990. What is the (a) income yield, (b) capital gains yield, and (c) total return on the investment?

> You borrowed $2,000 to take a vacation in the Caribbean islands. At the end of the year, you had to pay back $2,200. What is the annual interest that you paid on your loan?

> The Cheesecake Factory, Inc., is a popular restaurant chain in the United States. Although it started as a small restaurant in 1978, it currently has over 140 branches all over the country. The restaurants are characterized by extensive menus, custom d&A

> Mechanics A matched-pairs sample of 20 observations produced a test statistic of T = 165. a. Specify the competing hypotheses in order to determine whether the median difference is greater than zero. b. Determine the value of the test statistic using a

> The United States is often blamed for triggering the 2008 global financial crisis because many of the excesses and bad practices originated in the United States. The crisis has had consequences on all aspects of the global economy. According to a recent

> The dot-com period, roughly between 1995 and 2000, was characterized by extreme investor optimism for Internet-based businesses. This period was also marked by young, bold managers who made a good deal of money by reaching consumers over the Internet. Ar

> The consumption function, developed by John Maynard Keynes, captures one of the key relationships in economics. It expresses consumption as a function of disposable income, where disposable income is defined as income after taxes. For the years 2000&acir

> There has been a lot of discussion lately surrounding the levels and structure of executive compensation. It is well documented that in general, compensation received by senior executives has risen steeply in recent years. The accompanying table lists a

> In order to analyze differences in home prices between coastal and inland areas in California, an economist gathers 20 recent home sales (in $1,000s) in Southern California and 20 recent home sales (in $1,000s) in the Inland Empire. A portion of the resu

> The following table shows a portion of the percent change in the consumer price index (CPI) for the United States from 1980 through 2008. Use the method of runs above and below the median with a significance level of 5% to test the null hypothesis of ran

> A research analyst follows the monthly price data for the Dow Jones Industrial Average for the years 2008–2010. The accompanying table shows a portion of the price data. The analyst wants to test the random-walk hypothesis that suggests that prices move

> The following table shows a portion of the growth rate in the gross domestic product (GDP) for China from 1980 through 2008. Use the method of runs above and below the median with a significance level of 5% to test the null hypothesis of randomness again

> In order to ensure the public’s health and safety, state health inspectors are required to rate the cleanliness and quality of all restaurants in the state. Restaurants that consistently score below a certain level often lose their lice

> A research analyst believes that a positive relationship exists between a firm’s advertising expenditures and its sales. For 65 firms, she collects data on each firm’s yearly advertising expenditures and subsequent sales. She calculates a Spearman rank c

> An entrepreneur examines monthly sales (in $1,000s) for 40 convenience stores in Rhode Island. a. Specify the competing hypotheses to determine whether median sales differ from $130,000. b. At the 5% significance level, do median sales differ from $130

> The following table shows a portion of the annual returns (in percent) for two of Fidelity’s mutual funds: the Fidelity Advisor’s Electronic Fund and the Fidelity Advisor’s Utilities Fund. a. Specif

> A psychiatrist believes that the location of a test center may influence a test taker’s performance. To test his claim, he collects SAT scores from four different locations. a. Specify the competing hypotheses to test whether some med

> A consumer advocate researches the length of life between two brands of refrigerators, Brand A and Brand B. He collects data on the longevity of 40 refrigerators for Brand A and repeats the sampling for Brand B. A portion of the data is shown in the acco

> The table below shows a portion of the returns for Fidelity’s Equity Income mutual fund and Vanguard’s Equity Income mutual fund from 2000 through 2010. a. Specify the competing hypotheses to determine whether the me

> A farmer is concerned that a change in fertilizer to an organic variant might change his crop yield. He subdivides six lots and uses the old fertilizer on one half of each lot and the new fertilizer on the other half. The following table shows the result

> The following are the closing stock prices for a pharmaceutical firm over the past five days. a. Specify the competing hypotheses to determine whether the median stock price is greater than $61.25. b. Calculate the value of the Wilcoxon signed-rank te

> A research analyst follows the biotechnology industry and examines the daily stock price of Amgen, Inc. over the past year. The table below shows a portion of the daily stock price of Amgen (in $) for the 252 trading days in 2010. The research analyst wa

> The superintendent of a large suburban high school must decide whether to close the school for at least two days due to the spread of flu. If she can confirm a trend in absenteeism, then she will close the high school. The following are the number of stu

> The following table shows a portion of the growth rate in the gross domestic product (GDP) for India from 1980 through 2008. Use the method of runs above and below the median with a significance level of 5% to test the null hypothesis of randomness again

> A realtor in Mission Viejo, California, believes that the median price of a house is more than $500,000. The accompanying data is in $1,000s. a. Specify the competing hypotheses for the test. b. At the 5% significance level, is the realtor’s claim supp

> A gambler suspects that a coin may be weighted more heavily toward the outcome of tails (T) over heads (H). He flips the coin 25 times and notes the following sequence: T T H T T T H H T H T T H T T T H H T H T H TT H a. Specify the competing hypothese

> Given the digits zero through nine, a computer program is supposed to generate even and odd numbers randomly. The computer produced the following sequence of numbers: 5 3 4 6 8 0 2 9 7 7 1 6 8 3 1 5 2 4 3 3 9 2 a. Specify the competing hypotheses to te

> Let D denote a desirable outcome and U denote an undesirable outcome. The sequence of the outcomes is as follows: DDDUUDUUUUUDDDUUDUUUDDDUUUUDDD At the 1% significance level, conduct a hypothesis test to determine if the outcomes are nonrandom.

> Let A and B be two possible outcomes of a single experiment. The sequence of the outcomes is as follows: BBAABAABBABABBBABBAAABABBABBABA At the 5% significance level, conduct a hypothesis test to determine if the outcomes are nonrandom.

> Consider the following information: n1 = 10, n2 = 13, and R = 8, where R is the number of runs, n1 and n2 are the number of elements in a sequence possessing and not possessing a certain attribute, and n1 + n2 = n. a. Specify the competing hypotheses to

> Consider the following information: n1 = 24, n2 = 28, and R = 18, where R is the number of runs, n1 and n2 are the number of elements in a sequence possessing and not possessing a certain attribute, and n1 + n2 = n. a. Specify the competing hypotheses t

> For scholarship purposes, two graduate faculty members rate 12 applicants to the PhD program on a scale of 1 to 10 (with 10 indicating an excellent candidate). These ratings are shown in the following table. a. Using the sign test, specify the competin

> In March 2009, 100 registered voters were asked to rate the effectiveness of President Obama. In March 2010, these same people were again asked to make the same assessment. Seventy percent of the second ratings were lower than the first ratings and 30% w

> In March 2009, 100 registered voters were asked to rate the effectiveness of President Obama. In March 2010, these same people were again asked to make the same assessment. Seventy percent of the second ratings were lower than the first ratings and 30% w

> Concerned with the increase of plastic water bottles in landfills, a leading environmentalist wants to determine whether there is any difference in taste between the local tap water and the leading bottled water. She randomly selects 14 consumers and con

> An economist wants to test whether the median hourly wage is less than $22. a. Specify the competing hypotheses for the test. b. At the 5% significance level, can you conclude that the median hourly wage is less than $22? Explain.

> Consider the following sign data, produced from a matched-pairs sample of ordinal data. a. Specify the competing hypotheses to determine whether the proportion of negative signs is significantly greater than the proportion of positive signs. b. Calcul

> Consider the following sign data, produced from a matched-pairs sample of ordinal data. a. Specify the competing hypotheses to determine whether the proportion of negative signs differs from the proportion of positive signs. b. Calculate the value of

> Consider the following competing hypotheses and sample data. a. Calculate the value of the test statistic for the sign test. b. Calculate the p-value. c. At the 1% significance level, what is the conclusion? Explain. Hoip <0.50 n= 25 p= 0.64 HẠ:

> Consider the following competing hypotheses and sample data. a. Calculate the value of the test statistic for the sign test. b. Calculate the p-value. c. At the 5% significance level, what is the conclusion? Explain. Hoip= 0.50 Hai P # 0.50 n= 40

> The accompanying table shows a portion of the number of cases of crime related to gambling and offenses against the family and children for the 50 states in the United States during 2010. Using the Spearman rank correlation coefficient, determine wheth

> . Many attempts have been made to relate happiness with various factors. One such study relates happiness with age and finds that, holding everything else constant, people are least happy when they are in their mid-40s (The Economist, December 16, 2010).

> An engineer examines the relationship between the weight of a car and its average miles per gallon (MPG). For a sample of 100 cars, he calculates a Spearman rank correlation coefficient of −0.60. a. Specify the competing hypotheses to determine whether

> A social scientist analyzes the relationship between educational attainment and salary. For 65 individuals, he collects data on each individual’s educational attainment (in years) and his/her salary (in $1,000s). He then calculates a Spearman rank correl

> The director of graduate admissions at a local university is analyzing the relationship between scores on the Graduate Record Examination (GRE) and subsequent performance in graduate school, as measured by a student’s grade point average (GPA). She uses

> In an attempt to determine whether a relationship exists between the price of a home (in $1,000s) and the number of days it takes to sell the home, a real estate agent collected the relevant data from recent sales in his city. A portion of the data is sh

> During the fourth quarter of 2009, rents declined in almost all major cities in the United States. The largest fall was in New York, where average rents fell nearly 20% to $44.69 per square foot annually (The Wall Street Journal, January 8, 2010). The fo

> You are interested in whether the returns on Asset A (in %) are negatively correlated with the returns on Asset B (in %). Consider the following annual return data on the two assets: a. Specify the competing hypotheses to determine whether the Spearman

> The following table shows a portion of the World Bank&acirc;&#128;&#153;s 2008 ranking of the richest countries, as measured by per capita GNP. In addition, it gives each country&acirc;&#128;&#153;s respective rank with respect to infant mortality accord

> Applications The following table shows the ranks given by two judges to the performance of six finalists in a men&acirc;&#128;&#153;s figure skating competition: a. Specify the competing hypotheses to determine whether the Spearman rank correlation coe

> Consider the following competing hypotheses and accompanying sample data. a. What is the value of the test statistic and its associated p-value? Assume the normal approximation for rs. b. At the 1% significance level, what is the conclusion? Hoi P

> Consider the following competing hypotheses and accompanying sample data. a. What is the value of the test statistic and its associated p-value? Assume the normal approximation for rs. b. At the 10% significance level, what is the conclusion? Ho:P

> Consider the following sample data: a. Specify the competing hypotheses to determine whether the Spearman rank correlation coefficient is less than zero. b. Calculate and interpret rs. c. The p-value associated with the test statistic in part b is 0.

> For exercises marked with an asterisk, it is advised that you use a statistical software package that accommodates the Spearman rank correlation test. Consider the following sample data: a. Specify the competing hypotheses to determine whether the Spe

> A human resource specialist wants to determine whether the median job satisfaction score (on a scale of 0 to 100) differs depending on a person&acirc;&#128;&#153;s field of employment. She collects scores from 30 employees in three different fields. A po

> A statistics instructor wonders whether significant differences exist in her students&acirc;&#128;&#153; median exam scores in her three different sections. She randomly selects scores from 10 different students in each section. A portion of the data is

> A well-known conglomerate claims that its detergent &acirc;&#128;&#156;whitens and brightens better than all the rest.&acirc;&#128;&#157; In order to compare the cleansing action of the top three detergents, 15 swatches of white cloth were soiled with re

> The following table lists a portion of the data representing the annual returns (in percent) over a 10-year period for the Balanced mutual fund, a top-performing mutual fund from the Janus Capital Group. Year …………………………………………………………………………………………… Return 2

> A research analyst examines annual returns (in percent) for Industry A, Industry B, and Industry C, as shown in the accompanying table. a. Specify the competing hypotheses to test whether some differences exist in the median returns by industry. b. Ca

> A quality-control manager wants to test whether there is any difference in the median length of life of light bulbs between three different brands. Random samples were drawn from each brand, where the duration of each light bulb (in hours) was measured.

> Consider the following competing hypotheses and sample data. a. Assuming that the sampling distribution of T is normally distributed, calculate the value of the test statistic. b. Calculate the p-value. c. At the 5% significance level, what is the co

> Consider the following sample data. a. Specify the competing hypotheses to determine whether the median is less than 10. b. Calculate the value of the test statistic T. c. The p-value corresponding to the test statistic in part b is approximately equ

> Consider the following sample data: a. Specify the competing hypotheses to determine whether the median is greater than 140. b. Calculate the value of the test statistic T. c. The p-value corresponding to the test statistic in part b is equal to 0.04

> Consider the following sample data: a. Specify the competing hypotheses to determine whether the median differs from 20. b. Calculate the value of the test statistic T. c. The p-value corresponding to the test statistic in part b is equal to 0.188. A

> Consider the sample regressions for the linear, the logarithmic, the exponential, and the log-log models. For each of the estimated models, predict y when x equals 50. Response Variable: y Response Variable: In(y) Model 1 Model 2 Model 3 Model 4 Int

> Consider the sample regressions for the linear, the logarithmic, the exponential, and the log-log models. For each of the estimated models, predict y when x equals 100. Response Variable: y Response Variable: In(y) Model 1 Model 2 Model 3 Model 4 In

> According to a report by the government, new home construction fell to an 18-month low in October 2010 (CNNMoney.com, November 17, 2010). Housing starts, or the number of new homes being built, experienced an 11.7% drop in the seasonally adjusted annual