Solutions Manual to Accompany Statistics for Business and Economics Eighth Edition David R. Anderson

Chapter 1. Data and Statistics 2. Descriptive Statistics: Tabular and Graphical Approaches 3. Descriptive Statistics: Numerical Methods 4. Introduction to Probability 5. Discrete Probability Distributions 6. Continuous Probability Distributions 7. Sampling and Sampling Distributions 8. Interval Estimation 9. Hypothesis Testing 10. Statistical Inference about Means and Proportions With Two Populations 11. Inferences about Population Variances 12. Tests of Goodness of Fit and Independence 13. Analysis of Variance and Experimental Design 14. Simple Linear Regression 15. Multiple Regression 16. Regression Analysis: Model Building 17. Index Numbers 18. Forecasting 19. Nonparametric Methods 20. Statistical Methods for Quality Control 21. Sample SurveyPreface The purpose of Statistics for Business and Economics is to provide students, primarily in the fields of business administration and economics, with a sound conceptual introduction to the field of statistics and its many applications. The text is applications-oriented and has been written with the needs of the nonmathematician in mind. The solutions manual furnishes assistance by identifying learning objectives and providing detailed solutions for all exercises in the text. Acknowledgements We would like to provide special recognition to Catherine J. Williams for her efforts in preparing the solutions manual. David R. Anderson Dennis J. Sweeney Thomas A. Williams1 - 1 Chapter 1 Data and Statistics Learning Objectives 1. Obtain an appreciation for the breadth of statistical applications in business and economics. 2. Understand the meaning of the terms elements, variables, and observations as they are used in statistics. 3. Obtain an understanding of the difference between qualitative, quantitative, crossectional and time series data. 4. Learn about the sources of data for statistical analysis both internal and external to the firm. 5. Be aware of how errors can arise in data. 6. Know the meaning of descriptive statistics and statistical inference. 7. Be able to distinguish between a population and a sample. 8. Understand the role a sample plays in making statistical inferences about the population.Chapter 1 1 - 2 Solutions: 1. Statistics can be referred to as numerical facts. In a broader sense, statistics is the field of study dealing with the collection, analysis, presentation and interpretation of data. 2. a. 9 b. 4 c. Country and room rate are qualitative variables; number of rooms and the overall score are quantitative variables. d. Country is nominal; room rate is ordinal; number of rooms and overall score are ratio. 3. a. Average number of rooms = 808/9 = 89.78 or approximately 90 rooms b. 2 of 9 are located in England; approximately 22% c. 4 of 9 have a room rate of $$; approximately 44% 4. a. 10 b. Fortune 500 largest U.S. industrial corporations c. Average revenue = $142,275.9/10 = $14,227.59 million d. Using the sample average, statistical inference would let us estimate the average revenue for the population of 500 corporations as $14,227.59 million. 5. a. 3 b. Industry code is qualitative; revenues and profit are quantitative. c. Average profit = 10,652.1/10 = $1065.21 million