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# Chapter 1

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## Program For The First Semester

Saatlarn miqdar Saatlarn miqdar Ml Drslrin mvzular Mhazir Qeyd Laboratoriya Qeyd

## Statistics for Business and Economics

Chapter 1 Why Study Statistics?

Drslrin mvzular

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Introduction Introduction Problem solving Tables and Charts, Inferential statistics Tables and Charts, Inferential statistics Problem solving Measures of Central Tendency Measures of Central Tendency Problem solving Probability Distributions Probability Distributions Problem solving Binomial Distribution Binomial Distribution Problem solving Normal Distribution Normal Distribution Problem solving Normal Distribution Normal Distribution Problem solving Central Limit Theorem Central Limit Theorem

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Ml Laborator iya

Mhazir

24 Problem solving
25 Central Limit Theorem 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

Central Limit Theorem Problem solving Sampling Distributions Sampling Distributions Problem solving Sampling Distributions Sampling Distributions Problem solving Confidence Interval Estimation Confidence Interval Estimation Problem solving Confidence Interval Estimation Confidence Interval Estimation Problem solving Hypothesis Testing Hypothesis Testing Problem solving Hypothesis Testing Hypothesis Testing Problem solving

Chap 1-2

## mtahanlardan Kem Qaydas

1. Mcburi semestr daxili faliyyt 100 bal 20% 2. Semestr daxili imtahan 100 bal 30 % 3. sty bal semestr daxili faliyyt 100 bal 10% 4. Semestr sonu imtahan 100 bal 50 % 5. Ksrlrin lvi imtahan 100 bal 50 % 6. lav imtahan 100 bal 100 %

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## Qafqaz University F. N. Aliyev 2012

Chap 1-4

Chapter Goals
After completing this chapter, you should be able to:

What is Statistics?
Statistics is a way to get information from data
Statistics Data Information

How statistics is used in business ? The sources of data used in business The types of data used in business Explain key definitions:
Population vs. Sample Parameter vs. Statistic Descriptive vs. Inferential Statistics

Describe random sampling Explain the difference between Descriptive and Inferential statistics
Chap 1-5

## Statistics is a tool for creating new understanding from a set of numbers.

Definitions: Oxford English Dictionary Qafqaz University F. N. Aliyev 2012 Qafqaz University F. N. Aliyev 2012 Chap 1-6

## 2007 Pearson Education, Inc.

Chapter 1

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Every day you use news and information sources to gather the facts that you need to lead your life. You might listen to a weather forecast to decide what clothes to wear, and if you live in a large city, you might listen to a commuter report to learn about the best route for traveling to your job or school. Your personal likes and dislikes shape some of your decisions, too. In spite of hearing bad reviews of a motion picture that suggest you skip seeing it, you might decide to go anyhow just because you happen to like a particular actor who appears in that film. Likewise, every day business managers have to make decisions. Although managers sometimes resort to "gut instincts" to make some decisions (this is more formally known as unstructured decision making), they more typically make decisions that are directly influenced by hard facts.
Qafqaz University F. N. Aliyev 2012 Chap 1-8

## Qafqaz University F. N. Aliyev 2012

Chap 1-7

As a business student, you cannot really learn how to make decisions, as such decisions require instincts and insights that require years of experience to form. You can learn, though, the procedures and methods that will help you make better decisions that are based on hard facts. When you begin focusing on the procedures and methods involved in the collecting, presenting, and summarizing of a set of data, or forming conclusions about that data, you have discovered statistics.

In the Good Tunes scenario, you should proceed with the reasonable assumption that the bankers seek to make a decision based on the hard facts you help present, and not on other factors, such as whims or personal likes or dislikes. Presenting the wrong information or the correct information in the wrong fashion could lead the bankers to make a bad business decision, which could jeopardize the future of Good Tunes. You need to know something about statistics to provide the hard facts that are necessary, and to know something about statistics, you first need to know the basic concepts of statistics.

Chap 1-9

## Qafqaz University F. N. Aliyev 2012

Chap 1-10

1.1 BASIC CONCEPTS OF STATISTICS Statistics is the branch of mathematics that examines ways to process and analyze data. Statistics provides procedures to collect and transform data in ways that are useful to business decision-makers. To understand anything about statistics, you need to first understand the definition of a variable. Examples of variables are your gender, your major field of study, the amount of money you have in your wallet, and the amount of time it takes you to get ready to go to school in the morning. The key aspect of the word variable is the idea that items differ and people differ.
Chap 1-11

The person next to you may be male rather than female, may be majoring in a different field of study than you, almost certainly has a different amount of money in his or her wallet, and undoubtedly takes a different amount of time to get ready in the morning than you do. You should distinguish between a variable, such as gender, and its value for an individual observation (e.g., "male"). Now that variables have been defined, you need to understand the meaning of population, sample, parameter, and statistic.

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## 2007 Pearson Education, Inc.

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POPULATION A population consists of all of the members of a group about which you want to draw a conclusion. SAMPLE A sample is the portion of the population selected for analysis. PARAMETER A parameter is a numerical measure that describes a characteristic of population. STATISTIC A statistic is a numerical measure that describes a characteristics of a sample.
Chap 1-13

Examples of populations are all the full-time students at a college, all the voters in New York, and all the people who went shopping at the local mall this weekend. Samples could be selected from each of the three populations mentioned above. Examples include 10 full-time students selected for a focus group, 500 voters in New York, and 30 mall shoppers who were asked to complete a customer satisfaction survey. In each case, the people in the sample represent a portion or subset of the people comprising the population.

## Qafqaz University F. N. Aliyev 2012

Chap 1-14

Key Definitions

The average amount spent by all the people who went shopping at the local mall this weekend is a parameter. Information from all the shoppers in the entire population is needed to compute this parameter. The average amount spent by the 30 shoppers completing the customer satisfaction survey is a statistic. Information from only 30 people who went to the local mall this weekend is used in calculating the statistic.
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Chap 1-16

## Population vs. Sample

Population
a b cd

Examples of Populations

Sample
b gi o r y c

Names of all registered voters in the United States Incomes of all families living in Daytona Beach Annual returns of all stocks traded on the New York Stock Exchange Grade point averages of all the students in your university
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ef gh i jk l m n o p q rs t u v w x y z

n u

## Values calculated using population data are called parameters

Qafqaz University F. N. Aliyev 2012

Chap 1-17

Chapter 1

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## Descriptive and Inferential Statistics

Two branches of statistics:

Statistics, itself, is divided into two branches, both of which are applicable to managing businesses. Descriptive statistics focuses on collecting, summarizing, and presenting a set of data. Inferential statistics uses sample data to draw conclusions about a population.

Descriptive statistics

## Collecting, summarizing, and processing data to transform data into information

Inferential statistics

provide the bases for predictions, forecasts, and estimates that are used to transform information into knowledge
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Chap 1-19

## Qafqaz University F. N. Aliyev 2012

Descriptive Statistics

Inferential Statistics
Estimation

Collect data

e.g., Survey

e.g., Estimate the population mean weight using the sample mean weight e.g., Test the claim that the population mean weight is 120 pounds

Present data

Hypothesis testing

Summarize data

## e.g., Sample mean =

X
n

Inference is the process of drawing conclusions or making decisions about a population based on sample results
Chap 1-21 Qafqaz University F. N. Aliyev 2012 Chap 1-22

## Where Start Statistics ?

Descriptive statistics has its roots in the recordkeeping needs of large political and social organizations. For example, every decade since 1790, the United States has conducted a census that collects and summarizes data about its citizens. Through the years, the U.S. Census Bureau has been one of the many groups that have refined the methods of descriptive statistics. The foundation of inferential statistics is based on the mathematics of probability theory. Inferential methods use sample data to calculate statistics that provide estimates of the characteristics of the entire population.
Chap 1-23

Today, applications of statistical methods can be found in different areas of business. Accounting uses statistical methods to select samples for auditing purposes and to understand the cost drivers in cost accounting. Finance uses statistical methods to track trends in financial measures over time. Management uses statistical methods to improve the quality of the products manufactured or the services delivered by an organization. Marketing uses statistical methods to estimate the proportion of customers who prefer one product over another and why they do, and to draw conclusions about what advertising strategy might be most useful in increasing sales of a product.
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## THE GROWTH OF STATISTICS AND INFORMATION TECHNOLOGY

During the past century, statistics has played an important role in spurring the use of information technology and, in turn, such technology has spurred the wider use of statistics. Statisticians such as Pearson, Fisher, Gosset, Neyman, Wald, and Tukey established the techniques of modern inferential statistics in response to the need to analyze large sets of population data that had become increasingly costly, time-consuming, and cumbersome to collect.
Chap 1-25

For many years businesses have had access to statistical packages, such as Minitab and SPSS, that are standardized sets of programs that help managers use a wide range of statistical techniques. Whereas such packages were once available only in corporate computing centers, the increasing power and connectivity of personal computers have brought the statistical power of these packages to the desktop, where they have joined such familiar tools as word processing, worksheet, and Web browser programs.
Chap 1-27

## Qafqaz University F. N. Aliyev 2012

The leasing and training costs associated with statistical packages have led many to consider using some of the graphical and statistical functions of Microsoft Excel. However, you need to be aware of concerns that many statisticians have about the accuracy and completeness of the statistical results that Excel produces. Unfortunately, some investigators have determined that certain Microsoft Excel statistical capabilities contain flaws that can lead to invalid results especially when the data sets used are very large or have unusual statistical properties (see reference 3). Clearly, when you use Microsoft Excel, you must be careful about the data and the analysis you are undertaking. Whether this complication outweighs the benefits of Excel' attractive features is still an unanswered question in business today.
Qafqaz University F. N. Aliyev 2012 Chap 1-28

Because learning in context enhances comprehension, each chapter begins with a "Using Statistics" scenario, such as the "Good Tunes Part I" that identifies a business problem in which statistics can be applied to change data into the useful information required for a rational decision. Questions raised in the scenarios lead to answers in the form of statistical methods presented in subsequent sections of the text. By thinking about these questions, you will gain an appreciation of how business managers are using statistics today to solve problems and improve the quality of their products and services.
Chap 1-29

## Qafqaz University F. N. Aliyev 2012

For the "Good TunesPart I" scenario, selecting what to present is just as important as selecting the proper method for presentation and summarization. In this case, presumably the bankers themselves would demand some of the data, the "financials" of the business. But what other data could you collect and present that would help win the approval of the loans? (See "Good TunesPart II" below.) Of course, having presented your data, you would hope that the bankers would make the right inferences. That is, you would hope that the bankers were knowledgeable about the appropriate statistical methods that assist in the loan-making decision!
Chap 1-30

USNG OF STATSTCS

Good TunesPart II The owners of Good Tunes have decided to supplement the financial data in their loan application with data concerning customer perceptions about Good Tunes. To help assess these perceptions, Good Tunes has been asking its customers to complete and promptly return a customer satisfaction survey that is included in every order. The survey includes the following questions:
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Chapter 1

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## Survey Provided by Good-Tunes

You have been asked to review the survey. What type of data does the survey seek to collect? What type of information can be generated from the data of the completed survey? How can Good Tunes use that information to improve the perceived quality of the service and merchandise? How can Good Tunes use that information to increase its chance of getting a loan approval? What other questions would you suggest to include in the survey?
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Chap 1-32

## Qafqaz University F. N. Aliyev 2012

COLLECTING DATA

Managing a business effectively requires collecting the appropriate data. In most instances, the data are measurements acquired from items in a sample. The samples are chosen from populations in such a manner that the sample is as representative of the population as possible. The most common technique to ensure proper representation is to use a random sample. (Chapter 7 for a detailed discussion of sampling techniques.) Many different types of circumstances require the collection of data:
Chap 1-34

## Qafqaz University F. N. Aliyev 2012

A marketing research analyst needs to assess the effectiveness of a new television advertisement. A pharmaceutical manufacturer needs to determine whether a new drug is more effective than those currently in use. An operations manager wants to monitor a manufacturing process to find out whether the quality of a product is conforming to company standards. An auditor wants to review the financial transactions of a company in order to determine whether or not the company is in compliance with generally accepted accounting principles. A potential investor wants to determine which firms within which industries are likely to have accelerated growth in a period of economic recovery.
Chap 1-35

## Identifying Sources of Data

Identifying the most appropriate source of data is a critical aspect of statistical analysis. If biases, ambiguities, or other types of errors flaw the data being collected, even the most sophisticated statistical methods will not produce accurate information. Four important sources of data are: Data distributed by an organization or an individual A designed experiment A survey An observational study
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Market research firms and trade associations also distribute data pertaining to specific industries or markets. Investment services such as Mergent's provide financial data on a company-by-company basis. Syndicated services such as A. C. Nielsen provide clients with data enabling the comparison of client products with those of their competitors. Daily newspapers are filled with numerical information regarding stock prices, weather conditions, and sports statistics.
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## 2007 Pearson Education, Inc.

Chapter 1

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As listed above, conducting an experiment is another important data collection source. For example, to test the effectiveness of laundry detergent, an experimenter determines which brands in the study are more effective in cleaning soiled clothes by actually washing dirty laundry instead of asking customers which brand they believe to be more effective. Proper experimental designs are usually the subject matter of more advanced texts, because they often involve sophisticated statistical procedures. However, some fundamental experimental design concepts will be considered in Chapter 10. Conducting a survey is a third important data source. Here the people being surveyed are asked questions about their beliefs, attitudes, behaviors, and other characteristics. Responses are then edited, coded, and tabulated for analysis.
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Conducting an observational study is the fourth important data source. In such a study, a researcher observes the behavior directly, usually in its natural setting. Observational studies take many forms in business. One example is the focus group, a market research tool that is used for eliciting unstructured responses to open-ended questions. In a focus group, a moderator leads the discussion, and all the participants respond to the questions asked. Other, more structured types of studies involve group dynamics and consensus building and use various organizational behavior tools such as brainstorming, the Delphi technique, and the nominal-group method. Observational study techniques are also used in situations in which enhancing teamwork, or improving the quality of products and service are management goals.
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## Qafqaz University F. N. Aliyev 2012

Data sources are classified as being either primary sources or secondary sources. When the data collector is the one using the data for analysis, the source is primary. When one organization or individual has compiled the data that are used by another organization or individual, the source is secondary. Organizations and individuals that collect and publish data typically use that data as a primary source and then let others use it as a secondary source. For example, the United States federal government collects and distributes data in this way for both public and private purposes. The Bureau of Labor Statistics collects data on employment as well as distributing the monthly Consumer Price Index. The Census Bureau oversees a variety of ongoing surveys regarding population, housing, and manufacturing and undertakes special studies on topics such as crime, travel, and health care.
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Azrbaycan Respublikas Dvlt Statistika Komitsi, Azrbaycann statistik gstricilri . http://www.azstat.org/ Azrbaycan Respublikas Dvlt Statistika Komitsi, Azrbaycann regionlar . http://www.azstat.org.shtml
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## Qafqaz University F. N. Aliyev 2012

TYPES OF DATA

Data are the observed values of variables, for example, the responses to a survey. Statisticians develop surveys to deal with a variety of different variables. As illustrated in figure, there are two types of variablescategorical and numerical.

Categorical variables yield categorical responses, such as yes or no answers. An example is the response to the question "Do you currently own any stocks or bonds?" because it is limited to a simple yes or no answer. Another example is the response to the question on the Good Tunes survey, "Are you likely to buy additional merchandise through Good Tunes in the next 12 months?" Categorical variables can also yield more than two possible responses. For example, "Which day of the week are you most likely to eat dinner in a restaurant?
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## 2007 Pearson Education, Inc.

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Numerical variables yield numerical responses such as your height in inches. Other examples are how much money you expect to spend on stereo equipment in the next 12 months (from the Good Tunes customer satisfaction survey) or the response to the question "To how many magazines do you currently subscribe?" There are two types of numerical variables: discrete and continuous. Discrete variables produce numerical responses that arise from a counting process. "The number of magazines subscribed to" is an example of a discrete numerical variable, because the response is one of a finite number of integers. You subscribe to zero, one, two, and so on, magazines.
Chap 1-44

Continuous variables produce numerical responses that arise from a measuring process. Your height is an example of a continuous numerical variable, because the response takes on any value within a continuum or interval, depending on the precision of the measuring instrument. For example, your height may be 67 inches, 67.5 inches, or 67.53 inches, depending on the precision of the available instruments. No two persons are exactly the same height and the more precise the measuring device used, the greater the likelihood of detecting differences between their heights. However, most measuring devices are not sophisticated enough to detect small differences. Hence, tied observations are often found in experimental or survey data even though the variable is truly continuous, and theoretically all values of a continuous variable are different.
Qafqaz University F. N. Aliyev 2012 Chap 1-45

## Qafqaz University F. N. Aliyev 2012

Types of Data
Data

Categorical
Examples:

Numerical

Marital Status Are you registered to vote? Eye Color (Defined categories or groups)

Discrete
Examples:

Continuous
Examples:

## Qafqaz University F. N. Aliyev 2012

Chap 1-46

Random Sampling
Simple random sampling is a procedure in which
each member of the population is chosen strictly by chance, each member of the population is equally likely to be chosen, and every possible sample of n objects is equally likely to be chosen

Decision

Knowledge

## Information Begin Here: Identify the Problem

Qafqaz University F. N. Aliyev 2012

## The resulting sample is called a random sample

Qafqaz University F. N. Aliyev 2012 Chap 1-48

Chap 1-49

Chapter 1

1-9

Chapter Summary

## Introduced key definitions:

Population vs. Sample Parameter vs. Statistic Descriptive vs. Inferential statistics

## Described random sampling Examined the decision making process

1.12 What is the difference between a sample and a population? 1.13 What is the difference between a statistic and a parameter? 1.14 What is the difference between descriptive and inferential statistics? 1.15 What is the difference between a categorical and a numerical variable? 1.16 What is the difference between a discrete and a continuous variable? 1.17 What is an operational definition and why is it so important?
Chap 1-50 Qafqaz University F. N. Aliyev 2012 Chap 1-51

## Exercises and Questions

1.1 Three different beverages are sold at a fast-food restaurantsoft drinks, tea, and coffee. Explain why the type of beverage sold is an example of a categorical variable. 1.2 Soft drinks are sold in three sizes in a fast-food restaurantsmall, medium, and large. Explain why the size of the soft drink is a categorical variable.

1.2 Small, medium and large sizes are categories.

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Chap 1-53

## Exercises and Questions

1.3 Suppose that you measure the time it takes to download an MP3 file from the Internet. a.Explain why the download time is a numerical variable. b.Is the variable discrete or continuous?

## Exercises and Questions (Applying the Concepts)

1.4 For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. a.Number of telephones per household b.Length (in minutes) of the longest longdistance call made per month c. Whether there is a telephone line connected to a computer modem in the household d.Whether there is a fax machine in the household
Qafqaz University F. N. Aliyev 2012 Chap 1-55

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Chapter 1

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## Exercises and Questions

1.5 The following information is collected from students upon exiting the campus bookstore during the first week of classes: a.Amount of time spent shopping in the bookstore b.Number of textbooks purchased c. Academic major d.Gender Classify each of these variables as categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous.
Qafqaz University F. N. Aliyev 2012 Chap 1-57

1.4 (a) The number of telephones is a numerical variable that is discrete because the variable is counted, (b) The length of the longest longdistance call is a numerical variable that is continuous since any value within a range of values can occur, (c) Whether there is a telephone line connected to a computer modem in the household is a categorical variable because the answer can only be yes or no. (d) Same answer as in (c).
Chap 1-56

## Exercises and Questions

1.6 For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. a.Name of Internet provider b.Amount of time spent surfing the Internet per week c. Number of e-mails received in a week d. Number of online purchases m.ade in a month

1.6 (a) categorical; (b) numerical, continuous; (c) numerical, discrete; (d) numerical, discrete.

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Chap 1-59

## Exercises and Questions

1.7 For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. a.Amount of money spent on clothing in the last month b.Favorite department store c. Most likely time period during which shopping for clothing takes place (weekday, weeknight, or weekend) d.Number of pairs of winter gloves owned
Qafqaz University F. N. Aliyev 2012 Chap 1-60

## Exercises and Questions

1.8 Suppose the following information is collected from Robert Keeler on his application for a home mortgage loan at the Metro County Savings and Loan Association: a.Monthly Payments: \$1,427 b.Number of Jobs in Past 10 Years: 1 c. Annual Family Salary Income: \$86,000 d.Marital Status: Married Classify each of the responses by type of data.
Qafqaz University F. N. Aliyev 2012 Chap 1-61

Chapter 1

1-11

## Exercises and Questions

1.9 One of the variables most often included in surveys is income. Sometimes the question is phrased "What is your income (in thousands of dollars)?" In other surveys, the respondent is asked to "Place an X in the circle corresponding to your income level" and given a number of ranges to choose from. a. In the first format, explain why income might be considered either discrete or continuous. b. Which of these two formats would you prefer to use if you were conducting a survey? Why? c. Which of these two formats would likely bring you a greater rate of response? Why?
Chap 1-62 Qafqaz University F. N. Aliyev 2012 Chap 1-63

1.8 (a) numerical, continuous; (b) numerical, discrete; (c) numerical, continuous; (d) categorical.

## Exercises and Questions

1.10 If two students score a 90 on the same examination, what arguments could be used to show that the underlying variable test score is continuous?

1.10 The underlying variable, ability of the students, may be continuous but the measuring device, the test, does not have enough precision to distinguish between the two students.

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Chap 1-65

## Exercises and Questions

1.11 The director of market research at a large department store chain wanted to conduct a survey throughout a metropolitan area to determine the amount of time working women spend shopping for clothing in a typical month. a. Describe both the population and the sample of interest, and indicate the type of data the director might wish to collect. b. Develop a first draft of the questionnaire needed in (a) by writing a series of three categorical questions and three numerical questions that you feel would be appropriate for this survey.
Qafqaz University F. N. Aliyev 2012 Chap 1-66

## Exercises and Questions (Applying the Concepts)

1.18 The Data and Story Library lib.stat.cmu.edu/DASL is an online library of data files and stories that illustrate the use of basic statistical methods. The stories are classified by method and by topic. Go to this site and click on List all topics. Pick a story and summarize how statistics are used in the story.

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Chapter 1

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## Exercises and Questions

1.19 Go to the official Microsoft Excel Web site www.microsoft.com/office/excel. Explain how you think Microsoft Excel could be useful in the field of statistics. 1.20 Go to the official Minitab Web site www.minitab.com. Explain how you think Minitab could be useful in the field of statistics. 1.21 Go to the official SPSS Web site www.spss.com. Explain how you think SPSS could be useful in the field of statistics.
Qafqaz University F. N. Aliyev 2012 Chap 1-68

## Exercises and Questions

1.22 The Gallup organization releases the results of recent polls at its Web site www.gallup.com. Go to this site and click on an article of interest to you in the "Top Stories" section. a.Give an example of a categorical variable found in the article. b.Give an example of a numerical variable found in the article. c. Is the variable you selected in (b) discrete or continuous?
Qafqaz University F. N. Aliyev 2012 Chap 1-69

## Exercises and Questions

1.23 The U.S. Census Bureau www.census.gov site contains survey information on people, business, geography, and other topics. Go to the site and click on Housing in the "People" section. Then click on American Housing Survey. a. Briefly describe the American Housing Survey. b. Give an example of a categorical variable found in this survey. c. Give an example of a numerical variable found in this survey. d. Is the variable you selected in (c) discrete or continuous?
Qafqaz University F. N. Aliyev 2012 Chap 1-70

## Exercises and Questions

1.24 On the U.S. Census Bureau www.census.gov site, click on Survey of Business Owners in the"Business" section and read the description of The Survey of Business Owners and Self-Employed Persons (SBO). Click on SBO-1 in the "Forms and Instructions" section to view the actual survey form used. a. Give an example of a categorical random variable found in this survey. b. Give an example of a numerical random variable found in this survey. c. Is the variable you selected in (b) discrete or continuous?
Qafqaz University F. N. Aliyev 2012 Chap 1-71

## Exercises and Questions

1.25 In a report based on U.S. Transportation Department statistics, the budget carrier JetBlue was number 1 in qual ity among all U.S. airlines in 2003. JetBlue had the second best on-time performance, arriving on time 86% of the Introduction to the Web Cases 11 time. Also, Jet Blue customers filed fewer complaints than all other airlines but one ("JetBlue ranked No. 1 Airline, Report Says," USAToday.com, April 5, 2004). a. Which of the four types of data sources listed in Section 1.4 on page 7 do you think were used in this study? b. Name a categorical variable discussed in this article. c. Name a numerical variable discussed in this article.
Qafqaz University F. N. Aliyev 2012 Chap 1-72

1.26 According to a Goldman Sachs survey, only about 4% of U.S. households bank online. A survey by Cyber Dialogue investigated reasons people quit online banking after trying it. A partial listing of the results of the Cyber Dialogue survey are given below ("USA Snapshots," USA Today, February 21, 2000, Al). Why Did You Quit Online Banking? Too complicated or time-consuming 27% Unhappy with customer service 25% No need/not interested 20% Concerns about security or fraud 11% Too costly 11% Concerns about privacy 5% a. Describe the population for the Goldman Sachs survey. b. Describe the population for the Cyber Dialogue survey. c. Is a response to the question "Why did you quit online banking?" categorical or numerical? d. Twenty-seven percent of respondents indicated that online banking was too complicated or too time-con suming. Is this a parameter or a statistic?
Qafqaz University F. N. Aliyev 2012 Chap 1-73

Chapter 1

1-13

## Exercises and Questions

1.27 A manufacturer of cat food was planning to survey households in the United States to determine purchasing habits of cat owners. Among the questions to be included are those that relate to where cat food is primarily purchased. whether dry or moist cat food is purchased. the number of cats living in the household. whether or not the cat is pedigreed. a. Describe the population. b. For each of the four items listed, indicate whether the variable is categorical or numerical. If numerical, is it discrete or continuous? c. Develop five categorical questions for the survey. d. Develop five numerical questions for the survey.
Qafqaz University F. N. Aliyev 2012 Chap 1-75

1.26 (a) all U.S. households; (b) all people who have tried and quit online banking; (c) categorical; (d) a statistic.

Chap 1-74

## Exercises and Questions

1.5 The college surveyed its students to determine average-weekly time spent surfing the Internet. From a sample of 174 students the average time was counted to be 6.1 hours. a. What is the population? b. What is the sample? c. What is the statistic? d. Is the value 6.1 hours a parameter or a statistic?
Qafqaz University F. N. Aliyev 2012 Chap 1-76

## Exercises and Questions

K 1.6 One airline claims that less than 1% of its scheduled flights out of Orlando International Airport depart late. From a random sample of 200 flights, 1.5% were found to depart later than the scheduled time. a. What is the population? b. What is the sample? c. What is the statistic? d. Is 1.5% a parameter or a statistic?
Chap 1-77

## Exercises and Questions

1.6 a. The population consists of all of the airline's scheduled flights at Orlando International Airport. b. The sample consists of the randomly selected 200 flights. c. The statistic is the 1.5% that were found to depart later than the scheduled time for the 200 randomly selected flights. d. 1.5% is a sample statistic.
Chap 1-78

1.7 Suppose that you own a grocery store. a. Give an example of a question that could be answered using descriptive statistics. b. Give an example of a question where estimating a parameter would be helpful. c. Give an example of a question concerning a possible relationship between two variables of interest to your grocery business. d. Give an example of a forecasting question.
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## Exercises and Questions

1.8 Determine if descriptive statistics or inferential statistics should be used to obtain the following information: a. A graph that shows the number of defective bottles produced during the day shift over one week's time b. An estimate of the percentage of employees who arrive to work late c. An indication of the relationship between years of employee experience and pay scale
Chap 1-80

1.8 a. Descriptiveto describe information about a one-week sample. b. Inferential statisticsto estimate the true percentage of all employees who arrive to work late. c. Inferential statisticsto predict the relationship between years of experience and pay scale.

## Qafqaz University F. N. Aliyev 2012

Chap 1-81

1.9 A random sample of 100 university students was asked a series of questions to obtain demographic data on their status as an American or an international student, major, gender, age, year in school, and current grade point average (GPA). Other questions asked for their levels of satisfaction with campus parking, campus housing, and campus dining. Responses to these satisfaction questions were measured on a scale from 1 to 5 with 5 being the highest level of satisfaction. Finally, these students were asked if they planned to attend graduate school within 5 years of their college graduation (0: no; 1: yes). These data are contained in the data file Finstad and Lie Study. a. Give an example of how to apply descriptive statistics to this data. b. Give an example of an estimation question that could be answered by inferential statistics. c. Give an example of a possible relationship between two variables.
Qafqaz University F. N. Aliyev 2012 Chap 1-82

## Exercises and Questions

K2.1 State whether each of the following variables is categorical or numerical. If categorical, give the level of measurement. If numerical, is it discrete or continuous? a. Number of e-mail messages sent daily by a financial planner b. Actual cost of a student's textbooks for a given semester c. Your monthly electricity bill d. Faculty ranks (professor, associate professor, assistant professor, instructor)
Chap 1-83

## Qafqaz University F. N. Aliyev 2012

K2.2 The public relations office of a professional basketball team wants information about fans that attend postseason tournament games. A questionnaire is given to each fan upon entrance to the postseason game. Is the answer to each of the following questions categorical or numerical? If categorical, give the level of measurement. If numerical, is it discrete or continuous? a. Are you a season-ticket holder? b. Do you live in Orange County? c. What was the actual cost of your ticket to this postseason game?

2.2 a. Categorical data. The measurements levels are qualitativenominal, yes/no response. b. Categorical data. The measurement levels are are qualitativenominal. c. Numerical data. Dollar amounts are generally considered continuous, even though we may truncate dollar amounts and treat dollar amounts as if they were the same as discrete.
Chap 1-85

Chap 1-84

## 2007 Pearson Education, Inc.

Chapter 1

1-15

K2.3 A questionnaire was distributed to students at a liberal arts college to find out the level of student satisfaction with various activities and services. For example, concerning the "method of registration for classes for the next semester," students were asked to check one of the following boxes: very satisfied moderately satisfied neutral moderately dissatisfied very dissatisfied Is a student's response to this question numerical or categorical? If numerical, is it discrete or continuous? If categorical, give the level of measurement.
Qafqaz University F. N. Aliyev 2012 Chap 1-86

## Exercises and Questions

K2.4 Faculty at one university were asked a series of questions in a recent survey. State the type of data for each question. a. Indicate your level of satisfaction with your teaching load (very satisfied; moderately satisfied; neutral; moderately dissatisfied; very dissatisfied). b. How many articles did you have published in refereed journals during the last year? c. Did you attend the last university faculty meeting? d. Do you think that the teaching evaluation process needs to be revised?
Chap 1-87

## 2.4 a. CategoricalQualitativeordinal b. NumericalQuantitativediscrete c. CategoricalQualitativenominal d. CategoricalQualitativenominal

K2.5 A sample of customers in a specialty ice cream store was asked a series of questions. Identify the type of data for each question. a. What is your favorite flavor of ice cream? b. How many times a month do you eat ice cream? c. Do you have children under the age of 10 living in your home? d. Have you tried our latest specialty ice cream flavor?
Chap 1-89

Chap 1-88

## Exercises and Questions

K2.6 Residents in one housing development were asked a series of questions by their homeowners' association. Identify the type of data for each question. a. Did you play golf during the last month on the development's new golf course? b. How many times have you eaten at the country club restaurant during the last three months? c. Do you own a camper? d. Rate the new security system for the develop ment (very good, good, poor, very poor).
Chap 1-90

Chap 1-91

Chapter 1

1-16

## Translation of Key Terms

categorical variables-kateqorik dyinlr continuous variables-ksilmz dyinlr data-mlumat descriptive statistics-tsviri statistika discrete variables-diskret dyinlr focus groupinferential statistics-mumildirici statistika numerical variables-ddi dyinlr operational definitionparameter-parametr
Chap 1-92

population-populyasiya(ana mahid) primary sources-sas mnblr sample-nmun(sem mahid) secondary sources-ikinci mnblr statistic-statistika statistics-statistika(elm mnasnda) statistical packages-statistik programlar variables-dyinlr

Chap 1-93