Business Statistics — Winter 2021

Ordinal Data

Write about following terms

Interquartile range

Type I & Type II

coefficient of variation

Bayes’ rule

Mann-Whitney Utest

Friedman’s test

Apublic interest group was planning to make a court challenge to auto insurance rates in one of three cities: Atlanta, Baltimore and Cleveland. The probability that it would choose Atlanta was 0.40, Baltimore ,0.35, and Cleveland, 0.25. The group also knew that it had a 60 percent chance of favorable ruling if it chose Baltimore, 45 percent if it chose Atlanta and 35 percent if it chose Cleveland. If the group did receive a favorable ruling, which city did it most likely choose?

Write a note on statistical charts and graphs

According to a report by Scarborough research, the avg. monthly household cellular phone bill is $60. suppose local monthly household cell phone bills are normally distributed with a standard deviation of $11.35. a. what is the probability that randomly selected monthly cell phone bill is more than $85? b. what is the probability that randomly selected monthly cell phone bill is between $45 and $70? c. what is the probability that randomly selected monthly cell phone bill is between $65 and $75? d. what is the probability that randomly selected monthly cell phone bill is no more than $40?

Write a note on types of variables

Acompany’s auditor believes the per diem cost in Nashville, Tennessee, rose significantly between 1996 and 2006. To test this belief, The auditor samples 51 business trips from the company’s records for 1996, the sample average was $190 per day with a population standard deviation of $18.50. the auditor selects a second random sample of 47 business trips from company’s records for 2006, the sample average was $198 per day, with a population standard deviation of $15.60. if he uses a level of significance 0.01. does the auditor find that the per diem average expense in Nashville has gone up significantly? Page 1 of

For following data find mean, median and mode and identify Best measure of central tendency class frequency 10-20 20-30 62 30-40 54 40-50 9 50-60 Total 150

In an attempt to determine why customer service is important to managers in the United Kingdom, Researchers surveyed managing directors of manufacturing plants in Scotland. one of the reasons proposed was that customer service is a means of retaining customers. On a scale from 1 to 5 , with 1 being low and being high the survey respondents rated this reason more highly than any of the others, With a mean response of 4.3. suppose U.S. researchers believe American manufacturing mangers would not rate this reason as highly and conduct a hypothesis test to prove their theory. Alpha is set 0.05. Data are gathered, and the following results are obtained. Use these data and the eight steps of steps of hypothesis testing to determine whether U.S. managers rate this reason significantly lower than the 4.3 mean ascertained in the United Kingdom. Assume from previous studies that the population standard deviation is 0.574

Find following probabilities A D E F G B 3 9 7 C 8 4 6 D 10 5 3 1. P(FA) 2. P(A/B) 3. P(B) 4. P(EF) 5. P(D/B) 6. P(B/D) 7. P(F)

Find variance and standard deviation for following data 2618, 2118, 2027, 1535, 312, 281

Write a note on multidimensional scaling

Write a note on difference between parametric and non-parametric data Page 2 of Q.5 Awell-known chemical company is concern about money spent on research and development and the firm’s annual profit. Following table represents the information for last 6 years. year $ million spent on Annual profit in $ research millions

Identify independent and dependent variables and prepare scatter diagram.

Fit regression equation line

Find standard error of estimate and find estimate value for Annual profit if planning to spend money behind research in next three years are 9,7,6 respectively

Find correlation value and interpret it. Page 3 of