Question: The chartered financial analyst (CFA) is a

> 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

> The Wilfrid Laurier University bookstore conducts annual surveys of its customers. One question asks respondents to rate the prices of textbooks. The wording is, “The bookstore’s prices of textbooks are reasonable.” The responses are as follows: 1. Stro

> Refer to Exercise 2.59. The percentage of uninsured in 2013 and 2014 in each of the 50 states plus District of Columbia was recorded. Use a graphical technique to show the decrease in the uninsured rate. Data from Exercise 2.59: The primary objective of

> The primary objective of the Affordable Care Act was to decrease the number of nonelderly without any health insurance. It is estimated that there are still approximately 40 million Americans without health insurance. Researchers asked a sample of them w

> The Consumer Expenditure Survey measures how consumers allocate their spending. A recent survey asked respondents to specify the amount of their budget spent on food, housing, transportation, healthcare, and insurance and pensions. Also recorded were the

> Refer to Exercise 7.45. 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 7.45? Data from Exercise 7.45: The following table lists the bivariate distributio

> June 7 is known as Tax Freedom day in Canada. The annual taxes paid by an average Canadian family earning $105,236 is $45,167. The breakdown of these taxes is shown in the table below. Use an appropriate graphical technique to present these figures. Inco

> Refer to Exercise 2.55. Here is a list of the top 10 foreign governments that own the U.S. debt (in order of magnitude). Depict these figures with a graph. Government Debt China, m

> As of May 2016 the U.S. government owes $19,190,059,553,782. To whom does the U.S. government owe money? The list is shown below (in $billions). Use a graphical technique to depict these figures. U.S. Individuals and Institutions

> Your favorite team is in the final playoffs. You have assigned a probability of 60% that it will win the championship. Past records indicate that when teams win the championship, they win the first game of the series 70% of the time. When they lose the s

> Three airlines serve a small town in Ohio. Airline A has 50% of all the scheduled flights, airline B has 30%, and airline C has the remaining 20%. Their on-time rates are 80%, 65%, and 40%, respectively. A plane has just left on time. What is the probabi

> Data from the Office on Smoking and Health, Centers for Disease Control and Prevention, indicate that 40% of adults who did not finish high school, 34% of high school graduates, 24% of adults who completed some college, and 14% of college graduates smoke

> Refer to Exercise 6.93. If 40% of the people in a community will have a heart attack, what is the probability that a person with periodontal disease will have a heart attack? Data from Exercise 6.93: Bad gums may mean a bad heart. Researchers discovered

> The U.S. National Highway Traffic Safety Administration gathers data concerning the causes of highway crashes where at least one fatality has occurred. The following probabilities were determined from the 1998 annual study (BAC is blood-alcohol content).

> Refer to Exercise 6.70. The plant manager randomly selects a molding from the early morning run and discovers it is defective. What is the probability that the foreman forgot to shut off the machine the previous night? Data from Exercise 6.70: A foreman

> Three contractors (call them contractors 1, 2, and 3) bid on a project to build a new bridge. What is the sample space?

> Refer to Exercise 7.45. 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 7.45: The following table lists the bivariate distribution of X and Y . y 1 2 1 5 .1 .1 3 2

> Refer to Example 6.9. An MBA applicant believes that the probability of scoring more than 650 on the GMAT without the preparatory course is .95. What is the probability of attaining that level after taking the preparatory course? Data from Exercise 6.9:

> Refer to Exercise 6.60. Find the following. a. P(A 0 B) b. P(AC 0 B) c. P(A 0 BC ) d. P(AC 0 BC ) Data from Exercise 6.60: Determine all joint probabilities from the following. P(A) = .8 P(B 0 A) = .4 P(AC ) = .2 P(B 0 AC ) = .7

> Refer to Exercise 6.59. Determine P(A 0 B). Data from Exercise 6.59: Given the following probabilities, compute all joint probabilities. P(A) = .9 P(B 0 A) = .4 P(AC ) = .1 P(B 0 AC ) = .7

> A statistics professor was in the process of comparing the pass rates (the percentage of entering students who graduate in 5 years or less) for B.A.’s, B.B.A.’s, B.Sc.’s, and B.Eng.’

> How many Americans under the age of 40 have student debts? A Pew Research Center attempted to answer the question by asking whether respondents had student debt and in what was their occupation. The following probabilities were determined. Calculate the

> A financial analyst estimates that the probability that the economy will experience a recession in the next 12 months is 25%. She also believes that if the economy encounters a recession, the probability that her mutual fund will increase in value is 20%

> According to TNS Intersearch, 69% of wireless web users use it primarily for receiving and sending e-mail. Suppose that three wireless web users are selected at random. What is the probability that all of them use it primarily for e-mail?

> The controls of an airplane have several backup systems or redundancies so that if one fails the plane will continue to operate. Suppose that the mechanism that controls the flaps has two backups. If the probability that the main control fails is .0001 a

> The manager of a computer store has kept track of the number of computers sold per day. On the basis of this information, the manager produced the following list of the number of daily sales. Number of Computers Sold

> An investor believes that on a day when the Dow Jones Industrial Average (DJIA) increases, the probability that the NASDAQ also increases is 77%. If the investor believes that there is a 60% probability that the DJIA will increase tomorrow, what is the p

> Refer to Exercise 7.45. Compute the covariance and the coefficient of correlation. Data from Exercise 7.45: The following table lists the bivariate distribution of X and Y . y 1 2 1 5 .1 .1 3 2.

> A financial analyst has determined that there is a 22% probability that a mutual fund will outperform the market over a 1-year period provided that it outperformed the market the previous year. If only 15% of mutual funds outperform the market during any

> All printed circuit boards (PCBs) that are manufactured at a certain plant are inspected. An analysis of the company’s records indicates that 22% are flawed in some way. Of those that are flawed, 84% are reparable and the rest must be discarded. If a new

> The Nickels restaurant chain regularly conducts surveys of its customers. Respondents are asked to assess food quality, service, and price. The responses are Excellent Good Fair Surveyed customers are also asked whether they would come back. After ana

> A survey of middle-aged men reveals that 28% of them are balding at the crown of their heads. Moreover, it is known that such men have an 18% probability of suffering a heart attack in the next 10 years. Men who are not balding in this way have an 11% pr

> Among many other pieces of information, the U.S. Census Bureau records the race or ethnicity of the residents of every county in every state. From these results, the bureau calculated a “diversity index” that measures the probability that two people chos

> A study undertaken by the Miami-Dade Supervisor of Elections revealed that 44% of registered voters are Democrats, 37% are Republicans, and 19% are others. If two registered voters are selected at random, what is the probability that both of them have th

> A foreman for an injection-molding firm admits that on 10% of his shifts, he forgets to shut off the injection machine on his line. This causes the machine to overheat, increasing the probability from 2% to 20% that a defective molding will be produced d

> Refer to Exercise 6.6. Employing the subjective approach a political scientist has assigned the following probabilities: P(Adams wins) = .42 P(Brown wins) = .09 P(Collins wins) = .27 P(Dalton wins) = .22 Determine the probabilities of the following event

> A telemarketer calls people and tries to sell them a subscription to a daily newspaper. On 20% of her calls, there is no answer or the line is busy. She sells subscriptions to 5% of the remaining calls. For what proportion of calls does she make a sale?

> The following table lists the bivariate distribution of X and Y . 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 .

> An aerospace company has submitted bids on two separate federal government defense contracts. The company president believes that there is a 40% probability of winning the first contract. If they win the first contract, the probability of winning the sec

> Refer to Exercise 6.66. Suppose that three people are selected at random. a. Draw a probability tree and insert the probabilities of each branch. b. What is the probability of no right-handers, one right-hander, two right-handers, and three right-handers

> Suppose there are 100 students in your accounting class, 10 of whom are left-handed. Two students are selected at random. a. Draw a probability tree and insert the probabilities for each branch. What is the probability of the following events? b. Both ar

> Refer to Exercise 6.64. Suppose that three people are selected at random. a. Draw a probability tree to depict the experiment. b. If we use the notation RRR to describe the selection of three right-handed people, what are the descriptions of the remainin

> Approximately 10% of people are left-handed. If two people are selected at random, what is the probability of the following events? a. Both are right-handed. b. Both are left-handed. c. One is right-handed and the other is left-handed. d. At least one is

> Given the following probabilities, find the joint probability P(A and B). P(A) = .7 P(B 0 A) = .3

> Given the following probabilities, draw a tree to compute the joint probabilities. P(A ) = .8 P(B 0 A ) = .3 P(AC ) = .2 P(B 0 AC ) = .3

> Draw a probability tree to compute the joint probabilities from the following probabilities. P(A) = .5 P(B 0 A) = .4 P(AC ) = .5 P(B 0 AC ) = .7

> Determine all joint probabilities from the following. P(A) = .8 P(B 0 A) = .4 P(AC ) = .2 P(B 0 AC ) = .7

> Four candidates are running for mayor. The four candidates are Adams, Brown, Collins, and Dalton. Determine the sample space of the results of the election.

> At a private golf course known for its excellent golfers a statistician quizzed the members to determine how many holes in one each made in their lifetime. From his work the following probability distribution of the number of career holes in one. One me

> Given the following probabilities, compute all joint probabilities. P(A) = .9 P(B 0 A) = .4 P(AC ) = .1 P(B 0 AC ) = .7

> Here are the joint probabilities for CNN. a. If one person is selected at random what is the probability that he or she distrusts CNN? b. Find the probability that a consistent Conservative trusts CNN. c. Compute the probability that a mostly Liberal ne

> We list the joint probabilities for Fox News. a. Determine the probability that a consistent Liberal would distrust Fox News. b. Find the probability that a mostly Conservative trusts Fox News c. Find the probability that a consistent Conservative neith

> Here are the joint probabilities for MSNBC a. Compute the probability that a mostly Conservative would distrust MSNBC. b. Find the probability that a mixed Liberal– Conservative would neither trust nor distrust MSNBC. c. If one person

> After tabulating the results for NBC news the table of joint probabilities was created. a. Find the probability that one respondent selected at random would trust NBC News. b. What is the probability that a consistent Conservative would distrust NBC New

> There are no universally accepted definitions of the ages of Millennials and Generation Xers; the consensus is that the former are Americans born between 1984 and 2000 and the latter are Americans born between 1965 and 1984. Baby boomers are defined as p

> There are three major political parties in Canada. They are Conservatives, Liberals, and New Democrats. Suppose that in one city the breakdown of the party preferences and gender produced the following table of joint probabilities. a. Find the probabili

> Arthritis is an inflammation of one or more joints. The symptoms are pain and stiffness, which usually worsen with age. Suppose that an analysis of age and incidence of arthritis produced the following table of joint probabilities. a. What is the probab

> A Gallup survey asked a sample of Americans how much confidence they had in the criminal justice system. After recording the responses as well as the race of the respondent, the following table of joint probabilities was created. a. Calculate the probab

> The decision about where to build a new plant is a major one for most companies. One of the factors that is often considered is the education level of the location’s residents. Census information may be useful in this regard. After anal

> Refer to Exercise 7.42. Compute the mean, variance, and standard deviation of the population. Data from Exercise 7.42: An expensive restaurant conducted an analysis of the number of people at tables from which the probability distribution was developed.

> The sample space of the toss of a fair die is S = 51, 2, 3, 4, 5, 66 If the die is balanced each simple event has the same probability. Find the probability of the following events. a. An even number b. A number less than or equal to 4 c. A number greate

> To gauge the relationship between education and unemployment, an economist turned to the U.S. Census from which the following table of joint probabilities was produced: a. What is the probability that a high school graduate is unemployed? b. Determine t

> A retail outlet wanted to know whether its weekly advertisement in the daily newspaper works. To acquire this critical information, the store manager surveyed the people who entered the store and determined whether each individual saw the ad and whether

> Credit scorecards are used by financial institutions to help decide to whom loans should be granted. An analysis of the records of one bank produced the following probabilities. a. What proportion of loans are fully repaid? b. What proportion of loans g

> How are the size of a firm (measured in terms of the number of employees) and the type of firm related? To help answer the question, an analyst referred to the U.S. Census and developed the following. If one firm is selected at random, find the probabil

> A firm has classified its customers in two ways: (1) according to whether the account is overdue and (2) whether the account is new (less than 12 months) or old. An analysis of the firm’s records provided the input for the following tab

> Refer to Exercise 6.43. A similar analysis produced these joint probabilities. a. What is the probability that a school with an enrollment of less than 300 had at least one violent crime during the year? b. What is the probability that a school that has

> Violent crime in many American schools is an unfortunate fact of life. An analysis of schools and violent crime yielded the table of joint probabilities shown next. If one school is randomly selected find the following probabilities. a. Probability of a

> The issue of health care coverage in the United States is becoming a critical issue in American politics. A large-scale study was undertaken to determine who is and is not covered. From this study, the following table of joint probabilities was produced.

> Is there a relationship between the male hormone testosterone and criminal behavior? To answer this question, medical researchers measured the testosterone level of penitentiary inmates and recorded whether they were convicted of murder. After analyzing

> An expensive restaurant conducted an analysis of the number of people at tables from which the probability distribution was developed. If one table is selected at random determine the probability of the following events. a. Table has more than 4 people

> Many critics of television claim that there is too much violence and that it has a negative effect on society. There may also be a negative effect on advertisers. To examine this issue, researchers developed two versions of a cops-and-robbers made-for-te

> An investor tells you that in her estimation there is a 60% probability that the Dow Jones Industrial Averages index will increase tomorrow. a. Which approach was used to produce this figure? b. Interpret the 60% probability.

> An analysis of fired or laid-off workers, their age, and the reasons for their departure produced the following table of joint probabilities. a. What is the probability that a 25- to 54-yearold employee was laid off or fired because of insufficient work

> To determine whether drinking alcoholic beverages has an effect on the bacteria that cause ulcers, researchers developed the following table of joint probabilities. a. What proportion of people have ulcers? b. What is the probability that a teetotaler (

> A restaurant chain routinely surveys its customers. Among other questions, the survey asks each customer whether he or she would return and to rate the quality of food. Summarizing hundreds of thousands of questionnaires produced this table of joint prob

> The method of instruction in college and university applied statistics courses is changing. Historically, most courses were taught with an emphasis on manual calculation. The alternative is to employ a computer and a software package to perform the calcu

> Refer to Exercise 6.34. Are smoking and lung disease among 60- to 65-year-old men related? Explain. Data from Exercise 6.34: The costs of medical care in North America are increasing faster than inflation, and with the baby boom generation soon to need h

> The costs of medical care in North America are increasing faster than inflation, and with the baby boom generation soon to need health care, it becomes imperative that countries find ways to reduce both costs and demand. The following table lists the joi

> The following table lists the probabilities of unemployed females and males and their educational attainment. a. If one unemployed person is selected at random, what is the probability that he or she did not finish high school? b. If an unemployed femal

> A department store analyzed its most recent sales and determined the relationship between the way the customer paid for the item and the price category of the item. The joint probabilities in the following table were calculated. a. What proportion of pu

> Refer to Exercise 7.40. A previous analysis of historical records found that the mean value of orders for promotional goods is $20, with the company earning a gross profit of 20% on each order. Calculate the expected value of the profit contribution next