Chapter 2. Descriptive Se ‘Mean (Arithmetic Mean} A measure of central location computed by summing the data values and dividing by the nuruber of observations, Median A measure of central location provided by the value in ihe middle when the data are arranged in ascending order Mode A measure of location, defined as the value that occurs with greatest Frequency. Geometric Mean A measure of location that is calculated by finding the nth root of the product of 1 valves ‘Growth Factor The percentage increase of a value over a period of time is calculated using the ‘formuta (1 — growth factor), A growth factor less than 1 indicates negative growth, whereas growth factor greater than | indicates positive growth, The growth lactor canuot be les than zero. Range A measure of variability, defined to be the largest value minus the smallest value. Yariauce A measure of variability based on the squared deviations of the data values about the mean, Standard deviation A measure of variability computed by taking the positive square root of the variance. Coefficient of variation A measure of relative variability computed by dividing the stan- dard deviation by the mean and multiplying by 100. Percentile A value such that approximately p percent of the observations have values less than the pth percentile; hence, approximately (100p) percent of the observations have val- ues greater than the pth percentile, The 50th percentile is the median, Quartile The 25th, 50th, and 75th percentiles, referred to as the first quartile, the second quartile (median), and third quartile, respectively. The quartiles can be wsed to divide a data set into four parts, with each part containing approximately 25 percent of the data, Interquartile range The difference between the third and first quartiles. z-score A value computed by dividing the deviation about the mean (x ~ 3) by the stan- dard deviations. A z-score is referted to as a standardized value and denotes the number of standard deviations that +, is from the mean, Empirical rule A role that can be used to compute the percentage of data values that mast be within one, two, and three standard deviations of the mean for data that exhibit @ bell- shaped distribution. Outlier An unusually large or unusually stall data value, Box plot A graphical summary of data based on the quartiles of a distribution. Scatter chart A graphical presentation of the relationship between two quantitative variables, (One variable is shown on the horizontal axis, and the other variable is shown on the vertical Covariance A measure of liiear association between two variables. Positive values indi- cate a positive relationship; negative values indicate a negative relationship, Correlation coefficient A standardized measure of linear association between two vari- ables that takes on values between ~1 and +1. Values near ~1 indicate a strong negative linear relationship, values near +1 indicate a strong positive linear relationship, and values ‘near 2er0 indicate the lack of a linear relations! 1. A Wall Street Journal subscriber survey asked 46 questions about subscriber character- istics and interests. State winether each ofthe following questions provides categorical or quantitative data. a. What is your age? b. Are you male or female? ¢. When did you first start reading the WS/? High school, college, early career, midea- ‘eer, late career, of retirement? 4. How long have you heen in your present job or position? © What type of vehicle are you considering for your next purchase? Nine response calegories include sedan, sports car, SUV, minivan, and so on. gmt ning Ai ee Sy me ti np ch ih np i lo ek rsa on en elie cg Gap nctpome apt aratn else aeons tga opm Rextant of the [aw: wel ‘Dri file] Ccamlors cpr eng ah rs Ay mi i cn Problems 39 “the following table contains a partial list of countries, the continents on which they are located, and their respective gross domestic products (GDP) in U.S, dollars, A list of 125 countries and their GDPs is contained in the file GDPIst. GDR Country Continent (millions of USS) Afghanistan Asia 18,181 “Albania (2847 Algeria 190,709 ‘Angola 100.948 Argeatina South America 487,644 ‘Australia Oceania 1,488,221 Austcia Enrope 419.243, “Azerbaijan Europe 62,321 Bahrain Asia 26,108 Bangladesh Asia 113,032 Belarus Europe 55.483 Belgium Europe $13,396 Bolivia South America 24,604 Bosnia and Herzegovina Europe 17,965 Botswana Africa 173570 ‘a, Sort the countiies in GDPfist from largest to smallest GDP. What are the top ten countries according to GDP? 1b, Filter the countries to display only the countries located in Aftica, What are the top five countries located in Africa according to GDP? ce. What ate the top five countries by GDP that are located in Europe? Ohio Logistics manages the logistical activities for firms by matching companies that need products shipped with carriers that ean provide the best rates and best service forthe companies. Ohio Logisties is very concemed that it uses carriers that get their customers” ‘matetial delivered on time, so it carefully monitors its eariers’ on-fime percentage of de- liveries. The following table contains a list of the carriers used by Ohio Logistics and the ‘comesponding on-time percentages for the current and previous year Previous Year On-Time Current Year On-Time Carrier Percentage (%) Percentage (%) Blue Box Shipping 88.4 948 Cheetah LLC 393 918 Granite State Carriers 318 876 Honsin Limited 42 80.1 Jones Brothers 689 828 Minuteman Company 91.0 842 Rapid Response 788 709 ‘Smith Logistics 343 38.7 Super Freight 924 86.8 a. Sort the carriers in descending order by their current year’s on-time percentage. Which ‘carrier is providing the best service inthe current year? Which carter is providing the worst service in the current year? bb. Calculate the change in on-fime percentage from the previous to the current year for each carrier. Use Exeel’s conditional formatting to highlight the carriers whose on- time peteentage decreased from the previous year tothe current year. ¢. Use Excel's conditional formatting too! to create data bars for the change in on-time percentage from the previous year o the current year for each canter calculated in part b, Which carriers should Ohio Logistics try to use ia the future’? Why? ee aeoiboncs spots Caney nays Bb a atone eArr file} Tshows WEB Balle ‘czOtIme Chapter 2 Descriptive Statistics A.A purtial relative frequency distribution is given Class Relative Frequency iN 022 B 018 c 940 D ‘What is the relative equeney of class D? ‘The total saenple size is 200, What isthe frequency of class D? Show the frequency distibution Show the percent frequency distribution 5. Ina recent report, the top five syndicated television programs were The Big Bang Theory (BBT), Judge Judy (J), Wheel of Fortune (WoF), Jeopardy (ep), and Two and a Half ‘Men (THM), The preferred shows for a sample of 50 viewers are shown in the following, table: WoF ep u Sep BBT THM Wor BBT BRT BBT Jep BBT Wor Wor Wor Wor THM BBT THM WoF BBT a a kep BBT BET Ber D wD Jep u Wor THM WoF Wor THM BET Wo a a Jep BBT Wor dep Jep WoF THM BBT BBT ep ‘Are these data categorical or quantitative? . Provide frequency and percent frequency distributions. ©. On the basis of the sample, which television show has the largest viewing audience’? Which one has the second largest? 6. Ina study of how chie? executive officers (CEOs) spend their days, it was found that CEOs spend an average of about 18 hours per week in mectings, not inclnding conference calls, business meals, and public events. Shown here are the times spent per week in meet ings (hours) for a sample of 25 CEOs: 14 1s 18 3 15 19 20 B 15 2B 23 ee 15 20 a 16 1s 18 18 19 19 2 3 a 2 ‘4, What is the least amount of time a CBO spent pet week on meetings in this sample? ‘The highest? bb. Use a class width of 2 hours to prepare a frequency distribution and a percent fe- queney distribution for the data. ‘c. Prepare a histogram and comment on the shape of the distribution, 7. Consumer complaints are frequently reported fo the Beiter Business Bureau, Industries ‘with the most complaints to the Better Business Bureau arc often banks, cable and satellite ptt cave ee ig ey na an acti i De em ey nmap ei ale ut eons tars etna oo ampactes easuy ara br ee aan edeEe aaMEse Caer re file Bee file] ‘Communion weg Frequency ufc ieee cl a ot inna a Problems 4 tolevision companies, collection agencies, cellular phone providers, and nov car dealer~ ships. The results for a sample of 200 complaints are in the file BBB. a, Show the frequency and percent frequency of complaints by indstry b. Which industry had the highest number of complaints? c. Comment ov the percentage frequency distribution For complaints. 8. Reports have found that many U.S. adults would rather live in «different type of com- tunity than where they are living. A national survey of 2260 adults asked: “Where do you live now?" and “What do you consider to be the ideal commnvnity?” Response options ‘were City (C), Suburb (S), Small Town (1), or Rural (R), A representative portion of this, survey fora sample of 100 respondents is as follows. ‘Where do you live now? STRORRTCSTCSCST sscssTTccstcst¢ TRSSTCSCTCTCTCR CORTCSSTSCCCRSC SSCCSCRTTTCRTGR CTRRCTCCRTITRSRT TSSSSSCCRT ‘What do you consider to be the deal eonununity? SCRRRSTSSTTSCST CCRTRSTTSSCCTTS SRCSCCSCRCTSRRR CTSTTTRRSCCRRSS STCTTCRTTTCTTRE CSRTICTCCTTTRCRT TCSSCSTSSR Provide a percent frequency distribution and a histogram for each question. ‘Where are most adults living now? ‘Where do most adults consider the ideal community? ‘What changes in living areas would you expect to see if people moved from where they currently live to their ideal community? 9. Consider the following dats, Bese i 24. 8 2 wv 18 16 2 24 7 15 16 19 23 on 16 16 26 2 16 20 22 16 2 24 2B 19 25 20 25 a 19 2 25 3 24 2 0 20 20 a. Develop a frequency distribution using classes of 12-14, 15-17, 18-20, 21-23, and 24-26. b. Develop a relative frequency distribution and a percent frequency distribution using the classes in part a. iar ann eon oak mee i Honea acre alia nadine os Sten sacn ejeocmen aa eme rnyipee62 wo epalrshon ol ‘sar Rents Chapter 2. Descriptive Statistics 10, 12, 13 14, 15, 16. Consider the following frequency disseibution, Cass Frequency 10-19 10 20-20 u 30-39 a 40-49 7 50-59 2 Construct a cumulative frequency distribution ‘The owner of an automobile tepuir shop studied the waiting times for customers who ar rive atthe shop for an oil change. The following data with waiting times in ssinutes were collected over a J-month period 250 2445 17 1898 22687 2 18 3 Using classes of 0-4, 5-9, and so on, show: ‘The frequency distribution ‘The relative frequency distribution. The cumulative frequency distribution ‘The cumulative relative frequency distribution, ‘The proportion of customers needing an oil change who wait 9 minutes or ess. Approximately 1,65 million high school students take the Scholastic Aptitude Test (SAT) cach year, and nearly 80 percent of the college and universities without open admissions policies use SAT seores in making admission decisions. The current version of the SAT includes three parts: reading comprehension, mathematics, and writing, A perfect cam- bined score forall three parts is 2400. A sample of SAT scares for the cosnbined three-part SAT are as follows: pape 1665 1525 1355 16as 1780 1275 2135 1230 1060 1585 1650 1560 1150 1485 1990 1590 1880 1420 1755 1375 1475 1680 1440 1260 1730 1490 1560 940 1390 175 8, Show a frequency distribution and histogram. Begin withthe frst bin stating at £00, and use a bin width of 200. Comment on the shape of the distribution. ¢. What other observations can be made about the SAT scores based on the tabular and graphical surmmaries? Consider a sample with data values of 10, 20, 12, 17, and 16. a. Compute the mean and median. B, Consider a sample with data values (0, 20, 12, 17, 16, and 12. How would you expect the mean and median for these sample data to compare to the mean and median for part a (higher, lower, or the samme)? Compute the mean and median for the sample data 10, 20, 12, 17, 16, and 12. Consider a sample with data values of 27,25, 20, 15, 30,34, 28, and 25. Compute the 20th, 25th, 65¢h, and 75th perceatiles. Consider a sample with data values of 53, 55, 70, 58, 64,57, 53,69, $7, 68, and 53, Com pute the mean, median, and mode. ‘Fan asset declines in value from $5,000 to $3,500 over 9 years, what is the mean annual growth rate in the asset's value over these 9 years? api Cag acy A Ry mabe etn nan A nya ak ye ee Bo ant ag. sient lyre ao ast aang eps Casing eights eso tfaa anaes aEEE OE em: Problems 63 17, Suppose that you initially invested $10,000 in the Stivers matual fund aed $5,000 in the ‘Tripp mutual fund. The value of each investment ai the end of each subsequent year is provided in the table Year Stivers ($) ‘Teippl (8) 1 11,000 5,600 2 12,000 6300 3 13,000 6900 4 14,000 7,600 5 15,000 8,500 6 16,000 57200 7 17,000 5,900 8 18,000 10,600 Which of the two mutual funds performed better over this time period? 18, The average time that Americans commute to work is 27.7 minutes (Sterling's Best Places, April 13, 2012). The average commute times in minutes for 48 cities are as follows: Albuquerque 23.3-—_Jacksonville 262 Phoenix 283 Atlanta 283 Kansas City 234 Pittsbargh 25.0 Austin 24.6 Las Vegas 784 — Portland 264 Baltimore 321 Little Rock 20.1 Providence 236, Boston 317 Los Angeles 322 Richmond 234 Charlotte 258 Louisville 214 Sacramento 258 Chicago 38.1 Memphis 23.8 Salt Lake City 202 fil Gineinnatt 249 Miami 307 San Aatono 361 Cleveland 268 — Milwaukee 243 San Diego 4 Wee Columbus 23.4 Minneapolis 2316 San Francisco 326 Dallas 285 Nashville 253 San Jose 285 CommateTimes Denver 281 New Orleans 317 Seattle 3 Detroit 293 New York 438 St. Louis 268 ELPaso 244 Oklahoma City 22.0 Tucson 240 Fresno 23.0 Orlando 21 Tulsa 20. Indianapolis 248 Philadelphia 342 Washington, D.C. 32.8 a. What is the mean commute time for these 48 cities? b. What is the median commute tims for these 48 cities? cc. What is the mode for these 48 cities? 4d, Whats the variance and standard deviation of commute times for these 48 cities? e. What is the third quartile of commute times for these 48 cities? 19. Suppose that the average waiting time for a patient at a physician's office is just over 29 minutes. To address the issue of long patient wait times, some physician's offices ane us- ing waittracking systems to notify patients of expected wait times. Patients can adjust their arrival times based on this information and spend fess time in waiting rooms. The following ‘data show wait times (in minutes) for a sample of patients at offices that do not have a wait- tracking system and wait times for a sample of patients at offices with such systeus, Without Wait-Tracking. With Wait-Tracking Systern System 28 at a it ¥ ” i 20 is WEBBEITG FY 2 a4 37 rates a 23 B ie B a 5 ris og ering Ae sry hp am an verge ne inc ep any ee a esse ta ledeentor ethene son manus inv nag spare bape Sie cnt asad erate a aa apaFe UAE TETAS SOR CORN TINIE Mert ae 64 ‘Chopler 2 Descriptive Statistics «a, What are dhe mean and median patient wait times for offices with # wait-trecking system? ‘Whatare the mean and median patient wat times for offices without wait-tracking system? b. What are the variance and standard deviation of patient wait times for offices with a wait-racking system? What are the variance and standard deviation of patient wait times for visits to offices without a wait racking system? Create a box plot for patient wait times for offices without a wait-tracking system Create a box plot for patient wait times for offices with a sait-tracking system. Do offices with « wait-tracking system have shorter patient wait times than offices without 2 wai-tracking system? Explain, 20, According to the National Education Association (NEA), teachers generally spend more than 40 honts each week working on instructional dutics. The following data show the ‘number of hours worked pec week for a sample of 13 high school science teachers and @ sample of 11 high school English teachers. High school science teachers 53 56 Sd 54 55 58 49 61 S4 Sd 52 53 S4 High school English teachers $2 47 50 46 47 48 49 46 55 44 47 a, Whatis the median number of hours worked per week forthe sample of 13 high school science teachers? 'b, What s the median number of hours worked per week forthe sample of 1 high school English teachers? ¢. Create 2 box plot for the number of hours worked for high school science teachers. Create a box plot for the mumber of hours worked for high schoo! English teachers. fe, Comment on the differences between the box plots for science and English teachers, 21, Return to the waiting times given for the physician’s office in Problem 19. WEBHAIG 4. Considering only offices without a wait tracking system, what is the z-score for the tenth patient in the sample (wait time = 37 minutes)? PatientWaits b. Considering only offices with a wait tracking system, what isthe <-score for the sixth patient in the sample (wait time = 37 minutes}? How does this z-score compare with the c-score you calculated for part a? Based on z-scores, do the data for offices without a wait tracking system contain any ‘outliers? Based on z-scores, do the data for offices without a wait tracking system contain any outliers? 22. ‘The results of a national survey showed that on average, adults sleep 6.9 hours per night. ‘Suppose that the standard deviation is 1.2 hous and that the number of hours of sleep fol- Jows a bell-shaped distribution, a, Use the empirical rule to calculate the percentage of individuals who sleep between 45 and 9.3 hours per day. b, What is the zvalue for an adult who sleeps 8 hours per night? ‘¢. Whatis the z-value for an adult who sleeps 6 hours per night?” 23, Suppose thatthe national average for the math portion of the College Board’s SAT is 515. ‘The College Board periodically rescales the test scores such that the standard deviation is approximately 100. Answer the following questions using a bell-shaped distribution and the empirical rule forthe math test scores. a. What percentage of students have an SAT math score greater than 6152 6. What percentage of students have an SAT math score greater than 715? ©. What percentage of students have an SAT math score between 415 and 515? What isthe z-score for student with an SAT math score of 620? © Whatis the z-score for a student with an SAT math score of 405? 24, Five observations taken for two variables follow. x 4 6 m3 y | so 50 4 O80 a. Develop a scatter diagtam with x on the horizontal axis, b, What does the scatter diagram developed in part a indicate about the relationship between the two variables? wn azo i tae nr ma want ae ade ay mami od eeProblems 65 ¢, Compute and interpret the sample covariance. 4, Compute and interpret the sample correlation coeticient. 2S. ‘The scatter chart in the following figure was eveated using sample clara For profits a market capitalizations from a sazaple of firms in the Fortune 00. 200,000 ‘Market Cap ($ millious) 0 4000 8,000 12,000 ‘16,000 Profits ($ millions) What, does this scatter chart indicate about the relationship between profits and market capitalization? Discuss. b. The data used to produce this are contained in the file ForruneS00, Cateulate the co- variance between profits and market capitalization, What does the covariance indicate about the relationship between profits and market capitalization? Discuss. ¢. Calculate the correlation coefficient between profits and market capitalization, What does the correlations coefficient indicate about the relationship between profits and market capitalization? 26, The recent economic downturn resulted in the loss of jobs and an increase in delinquent loans for housing. In projecting where the real estate market was headed in the coming year, economists studied the relationship between the jobless rate and the percentage of delinquent loans. The expectation was that if Une jobless rate continued to inerease, there ‘would also be an increase in the percentage of delinquent loans. The following data show the jobless rate and the delinguent loan percentage for 27 major real estate markets, Jobless Deliaguent Jobless Delinquent Metro Area ate(%) Loan (Se) MetroArea ‘Rate (40) ‘Loan (%) ‘Alana 74 7102 ‘New York 62 578 Bostoa 32 531° “Orange County 6.3 6.08 Chitote 13 538° Oilando 70 1005 Chicago 78 540. Philadelphia 62 475 Dallas 58 500 Phosaie 55 722 WEBABEle) Denver 58 407” Porland 65 379 Dest 33 633 Raleigh 60 302 JebleseRate : Houston. 37 337 Sacramento 83 924 Jacksonville 73 6.99 ‘St Louis. 1S 440 Las Vegis 76 1112 SenDiego ni 691 Los Angeles 82 7156+. SanFranciseo 68 557 ‘Miami 4 1QIE Seattle 35 3.87 Minneapolis. 63 439 Tampa 7s 342 Nashville. 66. 4.78 Source: The Wall Street Joumal, Sanuary 27, 2009. a. Compute the correlation coefficient. fs there a positive correlation between the jobless sate and the percentage of delinquent housing loans? What is your interpretation? 'b. Show a scatter diagram of the relationship between the jobless rate and the percentage of delinquent housing loans, gyi ans ett ie com ined or rns kane ing nt yeu heir) van cPanel sens emg: Cap anems bea om sObces enna eed emo gE