Solution Manual for Essentials Of Modern Business Statistics With Microsoft Excel 8th Edition David R. Anderson

Chapter 1 n




Data and Statistics
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Learning Objectives
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1. Obtain an appreciation for the breadth of statistical applications in business and economics.
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2. Understand the meaning of the terms elements, variables, and observations as they are used in
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statistics.
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3. Obtain an understanding of the difference between categorical, quantitative, cross-sectional, and
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time series data.
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4. Learn about the sources of data for statistical analysis both internal and external to the firm.
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5. Be aware of how errors can arise in data.
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6. Know the meaning of descriptive statistics and statistical inference.
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7. Be able to distinguish between a population and a sample.
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8. Understand the role a sample plays in making statistical inferences about the population.
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9. Know the meaning of the terms analytics, big data and data mining.
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10. Be aware of ethical guidelines for statistical practice.
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,Solutions:

1. Statistics can be referred to as numerical facts. In a broader sense, statistics is the field of study
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dealing with the collection, analysis, presentation, and interpretation of data.
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2. a. The ten elements are the ten tablet computers.
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b. Five variables: Cost ($), Operating System, Display Size (inches), Battery Life (hours), CPU
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Manufacturer
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c. Categorical variables: Operating System and CPU Manufacturer n n n n n n




Quantitative variables: Cost ($), Display Size (inches), and Battery Life (hours)
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d. n



Variable Measurement Scale n




Cost ($) n Ratio
Operating System n Nominal
Display Size (inches) n n Ratio
Battery Life (hours) n n Ratio
n n CPU Manufacturer n Nominal

3. a. Average cost = 5829/10 = $582.90 n n n n n




b. Average cost with a Windows operating system = 3616/5 = $723.20
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Average cost with an Android operating system = 1714/4 = $428.5
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n The average cost with a Windows operating system is much higher.
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c. 2 of 10 or 20% use a CPU manufactured by TI OMAP.
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d. 4 of 10 or 40% use an Android operating system.
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4. a. There are eight elements in this data set; each element corresponds to one of the eight models of
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cordless telephones.
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b. Categorical variables: Voice Quality and Handset on Base n n n n n n n




n Quantitative variables: Price, Overall Score, and Talk Time n n n n n n n




c. Price – ratio measurement
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Overall Score – interval measurement n n n n




Voice Quality – ordinal measurement
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Handset on Base – nominal measurement
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Talk Time – ratio measurement
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5. a. Average Price = 545/8 = $68.13 n n n n n




b. Average Talk Time = 71/8 = 8.875 hours n n n n n n n




c. Percentage rated Excellent: 2 of 8 n n n n n 2/8 = .25, or 25% n n n n




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,6. a. Categorical

b. Quantitative

c. Categorical

d. Quantitative

e. Quantitative

7. a. Since there are five choices, the response is a categorical response.
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b. The five responses are the labels for the customer responses. A nominal scale is being used.
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8. a. 762

b. Categorical

c. Percentages

d. .67(762) = 510.54 n n




510 or 511 respondents said they want the amendment to pass.
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9. a. The population is employed individuals in the United States aged 25–29.
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b. Have you earned a bachelor’s degree (or higher)?
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c. Since the response is yes or no, the response is categorical.
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10. a. Categorical

b. Percentages

c. 44 of 1080 respondents or approximately 4% strongly agree with allowing drivers of motor vehiclesto
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talk on a hand-held cell phone while driving.
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d. 165 of the 1080 respondents or 15% of said they somewhat disagree and 741 or 69% said they
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strongly disagree. Thus, there does not appear to be general support for allowing drivers of motor
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vehicles to talk on a hand-held cell phone while driving.
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11. a. Since the respondents answer with some time interval, the response is categorical.b.
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.53(1503) = 796.59 or approximately 797
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c. .10(1503) = 150.3 or approximately 150 n n n n n




12. a. The population is all visitors coming to the state of Hawaii.
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b. Since airline flights carry the vast majority of visitors to the state, the use of questionnaires for
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passengers during incoming flights is a good way to reach this population. The questionnaire
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actually appears on the back of a mandatory plants and animals declaration form that passengers
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must complete during the incoming flight. A large percentage of passengers complete the visitor
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information questionnaire.
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© 2021 Cengage Learning. All Rights Reserved. n n n n n n



May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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, c. Questions 1 and 4 provide quantitative data indicating the number of visits and the number of days in
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Hawaii. Questions 2 and 3 provide categorical data indicating the categories of reason for the tripand
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where the visitor plans to stay.
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13. a. Facebook worldwide advertising revenue. n n n




b. Quantitative

c. Time series n




d. Facebook advertising revenue is increasing at an increasing rate over time.
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14. a. The graph of the time series follows:
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Hertz Dollar Avis
350


300


250
Cars in Service (1000s)




200
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150
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100


50


0
Yea r 1 n n Yea r 2 n n Yea r 3 n n Yea r 4 n n




b. In Year 1 and Year 2 Hertz was the clear market share leader. In Year 3 and Year 4 Hertz and Avishave
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approximately the same market share. The market share for Dollar appears to be declining.
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c. The bar chart for Year 4 is shown below.
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4 -4n n