Question: Do more educated people have children who

> Repeat Exercise 7.100 using Table 1 in Appendix B. Data from Exercise 7.100: Given a binomial random variable with n = 10 and p = .3, use the formula to find the following probabilities. a. P(X = 3) b. P(X = 5) c. P(X = 8)

> Refer to Exercise 7.97. a. Compute the expected value and variance of the portfolio described next. INTC: 20.9%, ORCL: 7.4%, SIRI: 11.9%, SBUX: 59.8% b. Can you do better? That is, can you find a portfolio whose expected value is greater than or equal to

> Refer to Exercise 7.92. a. Compute the expected value and variance of the portfolio described next. BNS: 44.0%, CNR: 27.5%, CTC.A: 21.9%, MG: 6.6% b. Can you do better? That is, can you find a portfolio whose expected value is greater than or equal to 1%

> During 2002 in the state of Florida, a total of 365,474 drivers were involved in car accidents. The accompanying table breaks down this number by the age group of the driver and whether the driver was injured or killed. (There were actually 371,877 accid

> Coin collecting is big business around the world. As an illustration, there are more than 500,000 American coins and more than 100,000 Canadian coins for sale/auction on Ebay. Moreover, there are dozens of other coin auctions every month. There are three

> One general belief held by observers of the business world is that taller men earn more money than shorter men. In a University of Pittsburgh study, 250 MBA graduates, all about 30 years old, were polled and asked to report their height (in inches) and t

> Canadians who visit the United States often buy liquor and cigarettes, which are much cheaper in the United States. However, there are limitations. Canadians visiting in the United States for more than 2 days are allowed to bring into Canada one bottle o

> In attempt to determine the factors that affect the amount of energy used, 200 households were analyzed. The number of occupants and the amount of electricity used were measured for each household. Produce a scatter diagram. What does the graph tell you

> Because inflation reduces the purchasing power of the dollar, investors seek investments that will provide higher returns when inflation is higher. It is frequently stated that common stocks provide just such a hedge against inflation. The annual percent

> a. Calculate the violent crime and property crime rates per 100,000 of population. b. Draw a line chart of the violent crime rate per 100,000 of population. c. Draw a line chart of the property crime rate per 100,000 of population. d. Describe your findi

> The number of customers entering a bank in the first hour of operation for each of the last 200 days was recorded. Draw a histogram and describe its shape.

> Refer to Exercise 6.11. a. What is the probability that a customer does not use a credit card? b. What is the probability that a customer pays in cash or with a credit card? c. Which method did you use in part (b)? Data from Exercise 6.11: Shoppers can p

> The distribution of the number of home runs in soft-ball games is shown here. a. Calculate the mean number of home runs. b. Find the standard deviation. Number of home runs 0 1 2 3 4 5 Probability .05 .16 41 .27 .07 .04

> How long does it take for someone to be deeply in debt? If it takes a long time we would expect AGE and DEBT to be related. Determine if they are by using a graphical technique. What have you learned?

> Are younger Americans more educated than older Americans? Answer the question by using a graphical technique to examine the relationship between AGE and EDUC. What does the graph tell you?

> It seems reasonable to believe that as one grows older one accumulates more money. To see if this is true use a graphical method to determine whether AGE and ASSETS are related. What did you discover?

> We expect that older respondents will have few, if any, children living in the household. Perform a statistical analysis to determine whether the age (AGE) of the respondent is linearly related to the number of children in the household (KIDS). Estimate

> After analyzing several months of sales data, the owner of an appliance store produced the following joint probability distribution of the number of refrigerators and stoves sold daily. a. Find the marginal probability distribution of the number of refr

> Repeat Exercise 4.152 using wage and salary income (WAGEINC) instead of income. Data from Exercise 4.152: Investigate the relationship between total household income (INCOME) and total value of household assets (ASSET). Conduct a statistical analysis to

> Investigate the relationship between total household income (INCOME) and total value of household assets (ASSET). Conduct a statistical analysis to measure how well the two variables correlate. Estimate the average marginal increase in assets for each ad

> The survey measured total household assets (ASSET) and total net worth of household (NETWORTH). Use a statistical technique to show that they should have just measured one of the two variables.

> Determine the quartiles of the household debt (DEBT) of the respondents in the 2013 survey. What information did you extract?

> Calculate the quartiles of household assets (ASSET). Interpret these statistics.

> Find the quartiles of the incomes (INCOME) of the respondents. What do they tell you about incomes of the heads of households?

> The following exercises are based on the 2013 Survey of Consumer Finances featuring the variables listed next. (The data are in folder SCF2013.) HHSEX (head of household): 1. Male; 2. Female EDCL: 1. No high school diploma; 2. High school diploma or GED;

> Find the mean and standard deviation of the household debt (DEBT) of the respondentsin the 2013 survey. If we assume that debt is not bell shaped describe what the mean and standard deviation tell you.

> Calculate the mean and standard deviation of household assets (ASSET). Assuming that this variable is positively skewed interpret the two statistics.

> Find the mean and standard deviation of the incomes (INCOME) of the heads of households. We know that the distribution of income is extremely positively skewed. Briefly describe what the two statistics tell you about the distribution of incomes.

> The distributions of X and of Y are described here. If X and Y are independent, determine the joint probability distribution of X and Y . 1 y 1 2 p(x) .2 .8 p(y) .2 .4 .4 3.

> Compute the mean and standard deviation of the ages (AGE) of the heads of households. Assuming that the distribution is bell shaped what do the mean and standard deviation tell you?

> Determine the mean and median of the amount of debt (DEBT) owed by the respondents. Briefly describe what the two statistics tell you.

> Calculate the mean and median of the respondent’s assets (ASSET). Is the mean greater than the median? If so, explain what that tells you about the distribution of assets.

> Find the mean and median of the incomes (INCOME) of the respondents. Briefly describe what the large difference between the two statistics tells you about the distribution of incomes of the respondents.

> Compute the mean and median of the ages (AGE) of the respondents in the 2013 survey. Interpret each statistic.

> How does age (AGE) affect respondents’ television viewing (TVHOURS)? Conduct a statistical analysis to determine whether the two variables are related and the average marginal increase in television viewing for each additional year of age.

> Repeat Exercise 4.146 for the respondents’ mothers education (MAEDUC). Data from Exercise 4.146: Is someone’s education (EDUC) affected by his or her father’s education (PAEDUC)? Use a statistical analysis to answer the following questions: a. How strong

> Is someone’s education (EDUC) affected by his or her father’s education (PAEDUC)? Use a statistical analysis to answer the following questions: a. How strong is the linear relationship between the two variables? b. What is the average marginal increase i

> Calculate the coefficient of correlation of the amount of education of the respondents and their spouses (EDUC and SPEDUC). What does this statistic tell you about the relationship between the two variables?

> Are there differences between the three categories of race with respect to working for the government or working in the private sector? Draw a graph to depict the differences.

> The following distributions of X and of Y have been developed. If X and Y are independent, determine the joint probability distribution of X and Y . 0 1 2 y 1 2 p(x) .6 3 .1 p(y) .7 3

> It seems reasonable to assume that more educated people will wait longer before having children. To determine whether this is reasonable draw a scatter diagram of years of education (EDUC) and the age at which a first child is born (AGEKDBRN). Describe y

> Do more educated people watch less television? Draw a scatter diagram of EDUC and TVHOURS. Describe what you have discovered.

> Use a graphical method to determine whether men and women differ with respect to working for themselves or someone else.

> Determine the quartiles of the amount of television watched (TVHOURS) by the respondents. Briefly describe what they tell you about this variable.

> Calculate the quartiles for the years of education (EDUC) completed by the respondents. What information do they provide?

> Find the quartiles of the respondents’ incomes (RINCOME). Describe what they tell you about incomes of the respondents.

> Do older people watch more television? Draw a scatter diagram of AGE and TVHOURS. What conclusion can you draw for the chart?

> If one half of a married couple works long hours, does the spouse work less? Draw a scatter diagram of HRS and SPHRS to answer the question.

> Refer to Exercise 3.73. Draw a scatter diagram of years of education (EDUC) and years of education of mothers (MAEDUC). What conclusion can you draw? Data from Exercise 3.73: Do more educated people have children who are also more educated? Answer this q

> The joint probability distribution of X and Y is shown in the following table. a. Determine the marginal distributions of X and Y . b. Compute the covariance and coefficient of correlation between X and Y . c. Develop the probability distribution of X +

> Do educated people tend to marry other educated people? Draw a scatter diagram of EDUC and SPEDUC. What conclusions can you draw from the graph?

> Use a pie chart to depict the proportion of respondents who worked for the government or worked in the private sector.

> Are there differences between men and women in terms of the completion of their highest degree? Use a graphical method to answer the question.

> Graphically describe the respondents’ highest completed degree.

> a. Determine the relative frequency distribution of marital status. b. Which graphical technique would you use to graphically describe marital status? c. Use your choice of graph.

> Graphically describe the racial makeup of the respondents.

> The population of the United States is approximately evenly divided between men and women. Draw a pie chart of the number of male and female respondents. Does it appear that the General Social Survey chose its respondents at random?

> Calculate the mean and standard deviation of the annual incomes (RINCOME). Assuming that the distribution of incomes is very skewed what information do the mean and standard deviation give you?

> Determine the mean and standard deviation of the amount of television watched (TVHOURS). If we assume that the distribution is bell shaped what do the two statistics tell you?

> Respondents were asked about the number of years of education (EDUC). Calculate the mean and standard deviation. Histograms of this variable reveal an approximate bell shape. What do the mean and standard deviation tell you?

> Refer to Exercise 7.49. a. Determine the distribution of X + Y . b. Determine the mean and variance of X + Y . c. Does your answer to part (b) equal the answer to Exercise 7.49? Data from Exercise 7.49: The bivariate distribution of X and Y is described

> Calculate the mean and standard deviation of the ages of the respondents. What do these statistics tell you?

> Calculate the mean and median of RINCOME. Is the mean greater than the median? If so, explain why.

> How much television were Americans watching in 2014? Answer the question by calculating the mean and median of TVHOURS. What have you learned?

> Calculate the mean and median of the years of education (EDUC). Briefly summarize what these statistics tell you about the years of education of Americans in 2014.

> Compute the mean and median of the ages (AGE) of the respondents. What information do these statistics give you?

> Do more educated (EDUC) Americans watch less television (TVHOURS)? a. To answer this question calculate a statistic that measures the strength of the linear relationship. b. Calculate the average marginal decrease in the hours of television viewing for e

> We would expect that people with more education would postpone having children. To examine the relationship between years of education (EDUC) and the age at which one’s first child is born (AGEKDBRN), perform a statistical analysis that answers the follo

> Use the Canada CPI Annual to calculate the inflation adjusted (using 2002 as the base) per capita debt from 1915 to 2015. Briefly describe your results.

> Use the population of Canada from 1870 to compute the per capita debt. Graph the results. What have you learned?

> The debt owed by the Canadian federal government was recorded for the years 1870 to 2015. Use a graph to present these figures. Should future tax-paying Canadians be concerned? Briefly explain.

> Refer to Exercise 7.49. Use the laws of expected value and variance of the sum of two variables to compute the mean and variance of X + Y . Data from Exercise 7.49: The bivariate distribution of X and Y is described here. y 1 2 1 .28 42 .12 .18 2.

> Use the U.S. CPI Annual to adjust the per capita debt figures to 1982–1984 dollars. Graph these figures. Does removing the effect of inflation allay your concerns for the future? Explain.

> Use the population of the United States from 1935 to 2015 to compute the per capita debt figures. Briefly describe what you have learned.

> The size of the U.S. federal government debt was recorded for every year starting in 1790. (Yes, the government was in debt even then.) Use a graphical technique to display these figures. Briefly describe what the graph tells you.

> Two other questions were asked in Exercise 2.65. Number of weeks job searching? Salary in ($ thousands)? a. Graphically describe salary. b. Is salary related to the number of weeks needed to land the job? Data from Exerices 2.65: A survey of the business

> In addition to the previously discussed data in Examples 3.3 and 3.4, the professor listed the midterm mark. Conduct an analysis of the relationship between the final exam mark and the midterm mark in each course. What does this analysis tell you?

> Examples 3.3 and 3.4 listed final marks in the business statistics course and the mathematical statistics course. The professor also provided the final marks in the first-year required calculus course. Graphically describe the relationship between calcul

> Several years ago the Barnes Exhibit toured major cities all over the world, with millions of people flocking to see it. Dr. Albert Barnes was a wealthy art collector who accumulated a large number of impressionist masterpieces; the total exceeds 800 pai

> Most car-rental companies keep their cars for about a year and then sell them to used car dealers. Suppose that one company decided to sell the used cars themselves. Because most used car buyers make their decision on what to buy and how much to spend ba

> Is airline travel becoming safer? To help answer this question, a statistics professor recorded the number of fatal accidents involving airliners carrying at least 19 passengers that occurred in the years 1950 to 2014. Use a graphical method to answer th

> Refer to Exercise 3.97. In addition to reporting the annual payment per director, the survey recorded the number of meetings last year. Use a graphical technique to summarize and present these data. Data from Exerices 3.97: Most publicly traded companies

> Refer to Exercise 7.49. Compute the covariance and the coefficient of correlation. Data from Exercise 7.49: The bivariate distribution of X and Y is described here. y 1 2 1 .28 42 .12 .18 2.

> Most publicly traded companies have boards of directors. The rate of pay varies considerably. A survey was undertaken by the Globe and Mail wherein 100 companies were surveyed and asked to report how much their directors were paid annually. Use a graphic

> An increasing number of consumers prefer to use debit cards in place of both cash and credit cards. To analyze the relationship between the amounts of purchases made with debit and credit cards, 240 people were interviewed and asked to report the amount

> The value of monthly U.S. exports to Mexico and imports from Mexico (in $ millions) since 1985 were recorded. a. Draw a chart that depicts exports. b. Draw a chart that exhibits imports. c. Compute the trade balance and graph these data. d. What do these

> Do better golfers play faster than poorer ones? To determine whether a relationship exists, a sample of 125 foursomes was selected. Their total scores and the amount of time taken to complete the round were recorded. Graphically depict the data and descr

> The monthly values of one British pound measured in American dollars since 1971 were recorded. Produce a graph that shows how the exchange rate has varied over the past 45 years.

> When the Dow-Jones Industrial Index increases it usually means that the economy is growing, which in turn usually means that the unemployment rate is low. A statistics professor pointed out that in numerous periods (including when this edition was being

> In Chapters 16, 17, and 18, we introduce regression analysis, which addresses the relationships among variables. One of the first applications of regression analysis was to analyze the relationship between the heights of fathers and sons. Suppose that in

> SPAM is an unfortunate fact of life. A random sample of university students was asked to report the number of Spam e-mails they receive in a typical day. Use an appropriate graphical method to display these data.

> An economist wanted to determine whether a relationship existed between interest rates and currencies (measured in U.S. dollars). He recorded the monthly interest rate and the currency indexes for the years 1982 to 2008. Graph the data and describe the r

> Studies of twins may reveal more about the “nature” or “nurture” debate. The issue being debated is whether nature or the environment has more effect on individual traits such as intelligence. Suppose that a sample of identical twins was selected and the

> The bivariate distribution of X and Y is described here. a. Find the marginal probability distribution of X. b. Find the marginal probability distribution of Y . c. Compute the mean and variance of X. d. Compute the mean and variance of Y . y 1 2 1

> The monthly exchange rate of U.S. dollars to one Australian dollar was recorded from 1971 to 2016. Draw a graph that shows how the exchange rate has varied over the past 41 years.

> Gold and precious metals have traditionally been considered a hedge against inflation. If this is true, we would expect that a fund made up of precious metals (gold, silver, platinum, and others) would have a strong positive relationship with the inflati

> A survey of the business school graduates undertaken by a university placement office asked, among other questions, in which area each person was employed. The areas of employment are as follows: 1. Accounting 2. Finance 3. General management 4. Marketin

> The Red Lobster Restaurant chain conducts regular surveys of its customers to monitor the performance of individual restaurants. One of the questions asks customers to rate the overall quality of their last visit. The listed responses are Poor (1), Fair

> There are several ways to teach applied statistics. The most popular approaches are as follows: 1. Emphasize manual calculations. 2. Use a computer combined with manual calculations. 3. Use a computer exclusively with no manual calculations. A survey of

> A sample of 200 people who had purchased food at the concession stand at Yankee Stadium was asked to rate the quality of the food. The responses are as follows: 1. Poor 2. Fair 3. Good 4. Very good 5. Excellent Draw a graph that describes the data. What