You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2016.
a. Decide on the weights to be applied to each item in the leading index.
b. Compute the leading economic indicator for 2016.
c. Interpret the indexes.
2000 2016 New businesses 1,088 1,162 Business failures 627 520 State income tax receipts ($ millions) College student enrollment State sales tax ($ millions) 191.7 162.6 242,119 290,841 41.6 39.9
> A sample of 60 college students was given a special training program designed to improve their time management skills. One month after completing the course, the students were contacted and asked whether the skills learned in the program were effective
> The following hypothesis-testing situation is given: H0: π = .50 and H1: π ≠ .50. The significance level is .05, and the sample size is 9. a. What is the decision rule? b. There were five successes. What is your decision regarding the null h
> The following hypotheses are given. H0: π = .40 H1: π ≠ .40 A sample of 120 observations revealed that p = .30. At the .05 significance level, can the null hypothesis be rejected? a. State the decision rule. b. Compute the value of the
> Thompson Photo Works purchased several new, highly sophisticated processing machines. The production department needed some guidance with respect to qualifications needed by an operator. Is age a factor? Is the length of service as an operator (in year
> A sample of 36 observations is selected from a normal population. The sample mean is 12, and the population standard deviation is 3. Conduct the following test of hypothesis using the .01 significance level. H0: μ ≤ 10 H1: μ > 10 (a) Is
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> Lahey Motors specializes in selling cars to buyers with a poor credit history. Listed below is the number of cars that were repossessed from Lahey customers because they did not meet the payment obligations over each of the last 36 months. Dev
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> Research at the University of Toledo indicates that 50% of students change their major area of study after their first year in a program. A random sample of 100 students in the College of Business revealed that 48 had changed their major area of study af
> Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating
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> Under what conditions should the Kruskal-Wallis test be used instead of the Wilcoxon rank-sum test?
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> Describe the difference between an attribute control chart and a variable control chart.
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> The quality assurance department at Malcomb Products must either inspect each part in a lot or not inspect any of the parts. That is, there are two decision alternatives: inspect all the parts or inspect none of the parts. The proportion of parts defecti
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> The following regression output was obtained from a study of architectural firms. The dependent variable is the total amount of fees in millions of dollars. x1 is the number of architects employed by the company. x2 is the number of engineers employed
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> Swiss Watches, Ltd. purchases watch stems for their watches in lots of 10,000. Their sampling plan calls for checking 20 stems, and if 3 or fewer stems are defective, the lot is accepted. a. Based on the sampling plan, what is the probability that a lot
> Christina Sanders is a member of the women’s basketball team at Windy City College. Last season, she made 55% of her free throw attempts. In an effort to improve this statistic, she attended a summer camp devoted to shooting techniques.
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> Develop a trend equation for the net sales ($ million) for Home Depot. Consider both a linear trend and a nonlinear trend. Which one would you select and why? Given the trend equation you selected, forecast the net sales for 2016 and 2017. Use the follow
> The enrollment in the College of Business at Midwestern University by quarter from 2013 to spring 2017 is: Using the ratio-to-moving-average method: a. Determine the four quarterly indexes. b. Interpret the quarterly pattern of enrollment. Does the sea
> The following is the number of retirees receiving benefits from the State Teachers Retirement System of Ohio from 1996 until 2015. a. Plot the data. b. Determine the least squares trend equation. Use a linear equation. c. Calculate the points for the y
> (The data for this exercise are available at the text website: www.mhhe.com/Lind17e.) Refer to the Lincolnwood School District bus data. a. Suppose we consider a bus “old” if it has been in service more than 8 years. At the .01 significance level, can we
> Sales of roof material, by quarter, for 2010 through 2016, by Carolina Home Construction Inc. are shown below (in $000). a. Determine the typical seasonal patterns for sales using the ratio-to-moving-average method. b. Deseasonalize the data and determ
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> At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, “You can average $80 a day in tips.” Assume the population of daily tips is normally distributed with a standard deviation of $9.95. Over the first 35 days she
> The quarterly production of pine lumber, in millions of board feet, by Northwest Lumber for 2012 through 2016 is: a. Determine the typical seasonal pattern for the production data using the ratio-to-moving-average method. b. Interpret the pattern. c. D
> The production of Reliable Manufacturing Company for 2012 and part of 2013 follows. a. Using the ratio-to-moving-average method, determine the specific seasonals for July, August, and September 2012. b. Assume that the specific seasonal indexes in the
> Listed below is the selling price for a share of PepsiCo Inc. at the close of each year from 1998 to 2015. a. Plot the data. b. Determine the least squares trend equation. c. Calculate the points for the years 2008 and 2013. d. Estimate the selling pri
> Refer to the Baseball 2016 data, which include information on the 2016 Major League Baseball season. The data also include the mean player salary since 1989. a. Use the year 2000 salary as the base period and 100 as the base value to develop a simple ind
> We are making a historical study of the American economy from 1950 to 1980. Data on prices, the labor force, productivity, and the GNP were collected. Note in the following table that the CPI has a base period of 1967, employment is in millions of person
> The National Cable and Telecommunications Association recently reported that the mean number of HDTVs per household in the United States is 2.30 with a standard deviation of 1.474 sets. A sample of 100 homes in Boise, Idaho, revealed the following sample
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