,Solution manual For Essentials of Business
Statistics 1e Canadian Black
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
SOLUTIONS TO PROBLEMS IN
CHAPTER 1: INTRODUCTION TO STATISTICS
1.1 Examples of data in business disciplines:
Accounting - cost of goods, salary expense, depreciation, utility costs, taxes,
equipment inventory, etc.
Finance - World Bank bond rates, number of failed savings and loans, measured
risk of common stocks, stock dividends, foreign exchange rate, liquidity rates for
a single-family, etc.
Human resources - salaries, size of engineering staff, years of experience, age of
employees, years of education, etc.
Marketing - number of units sold, dollar sales volume, forecast sales, size of sales
force, market share, measurement of consumer motivation, measurement of
consumer frustration, measurement of brand preference, attitude measurement,
measurement of consumer risk, etc.
Operations and supply chain management - the number, location, and network
missions of suppliers, production facilities, distribution centers, warehouses,
cross-docks, and customers; the quantity and location of inventory, including raw
materials, work in process (WIP), and finished goods, etc.
Information systems - CPU time, size of memory, number of work stations,
storage capacity, percent of professionals who are connected to a computer
network, dollar assets of company computing, number of “hits” on the Internet,
time spent on the Internet per day, percentage of people who use the Internet,
retail dollars spent in e-commerce, etc.
Production - number of production runs per day, weight of a product; assembly
time, number of defects per run, temperature in the plant, amount of inventory,
turnaround time, etc.
Management - measurement of union participation, measurement of employer
support, measurement of tendency to control, number of subordinates reporting to
a manager, measurement of leadership style, etc.
Solutions Manual Chapter 1 1-1
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
1.2 Examples of data that can be gathered for decision-making purposes in
industries:
Manufacturing - size of punched hole, number of rejects, amount of inventory,
amount of production, number of production workers, etc.
Insurance - number of claims per month, average amount of life insurance per
family head, life expectancy, cost of repairs for major auto collision, average
medical costs incurred for a single female over 45 years of age, etc.
Travel - cost of airfare, number of miles traveled for ground transported
vacations, number of nights away from home, size of traveling party, amount
spent per day on besides lodging, etc.
Retailing - inventory turnover ratio, sales volume, size of sales force, number of
competitors within 2 miles of retail outlet, area of store, number of sales people,
etc.
Communications - cost per minute, number of phones per office, miles of cable
per customer headquarters, minutes per day of long distance usage, number of
operators, time between calls, etc.
Computing - age of company hardware, cost of software, number of CAD/CAM
stations, age of computer operators, measure to evaluate competing software
packages, size of data base, etc.
Agriculture - number of farms per county, farm income, number of acres of corn
per farm, wholesale price of a gallon of milk, number of livestock, grain storage
capacity, etc.
Banking - size of deposit, number of failed banks, amount loaned to foreign
banks, number of tellers per drive-in facility, average amount of withdrawal from
automatic teller machine, Federal Reserve discount rate, etc.
Health care - number of patients per physician per day, average cost of hospital
stay, average daily census of hospital, time spent waiting to see a physician,
patient satisfaction, number of blood tests done per week.
1.3 Descriptive statistics in recorded music industry:
1) Number of artists under contract to a company at a given time, number of
subscribers to streaming services.
2) Total dollars spent on advertising last month to promote an album.
Solutions Manual Chapter 1 1-2
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
3) Number of Spotify streams for a band.
4) Number of songs obtained via iTunes.
Inferential statistics in recorded music industry:
1) Measure the amount spent per month on streaming services for a few
consumers then use that figure to infer the amount for the population.
2) Determination of market share for rap music by randomly selecting a
sample of 500 purchasers of recorded music.
3) Determination of top ten single records by sampling the number of
requests at a few radio stations.
4) Estimation of the average length of a single recording by taking a sample
of records and measuring them.
The difference between descriptive and inferential statistics lies mainly in the
usage of the data. These descriptive examples all gather data from every item in
the population about which the description is being made.
In each of the inferential statistics examples, a sample of the population is taken
and the population value is estimated or inferred from the sample. For example, it
may be practically impossible to determine the proportion of buyers who prefer
rap music. However, a random sample of buyers can be contacted and
interviewed for music preference. The results can be inferred to population
market share.
1.4 Descriptive statistics in manufacturing batteries to make better decisions:
1) Total number of worker hours per plant per week - help management to
understand labor costs, work allocation, productivity, etc.
2) Company sales volume of batteries in a year - help management to decide
if the product is profitable, how much to advertise in coming year,
compare to costs to determine profitability.
3) Total amount of sulfuric acid purchased per month for use in battery
production. - can be used by management to study wasted inventory,
scrap, etc.
Solutions Manual Chapter 1 1-3
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
Inferential Statistics in manufacturing batteries to make better decisions:
1) Take a sample of batteries and test them to determine the average shelf life
- use the sample average to reach conclusions about all batteries of this
type. Management can then make labeling and advertising claims. They
can compare these figures to the shelf- life of competing batteries.
2) Take a sample of battery consumers and determine how many batteries
they purchase per year. Infer to the entire population - management can
use this information to estimate market potential and penetration.
3) Interview a random sample of production workers to determine attitude
towards company management - management can use this survey results
to ascertain employee morale and to direct efforts towards creating a more
positive working environment which, hopefully, results in greater
productivity.
1.5 1) Size of sale ($) per customer in men’s formal wear. Either by taking a
sample or using a census, management could compute the average sale in
men’s formal wear of a weekly period and compare the number to the
same average taken a year ago or a month ago to determine if more is
being sold per customer. Other variables might include number of sales
per hour, number of people entering the department per day, number of
dress shirts sold per day, etc.
2) Number of employees working per day. This variable could indicate the
day of the week (certain days have more or less sales), sales activity (how
sales are doing overall), or even health of associates. Other variables
might include percent of employees absent due to illness, average number
of hours worked per week per employee, number of open positions, etc.
3) Inventory turnover rate. How fast are items in the store selling? Other
variables might include reorder rate, percent of storage space utilized,
number of stockouts per week, etc.
4) Number of customers that enter the store per hour. This figure will vary
by day, time of day, and season. Comparing figures on this variable from
period to period can give some indication of sales trends which can help
drive human resource planning, etc. Other variables might include amount
of time spent per customer in the store per visit, distance that customers
travel to shop in the store, number of referrals that customers make to
other people annually, etc.
5) Percentage of people paying with cash and percentage of people using
credit cards. These can be used to expedite pay systems, investigate
Solutions Manual Chapter 1 1-4
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
employee theft, calculate surcharges associated with credit cards, etc.
Other variables might include average time per checkout, average wait
time in pay line, etc.
1.6 1) Size of bill or tab. This variable is the total amount in dollars spent by a
patron per visit to the restaurant. The bill or tab could be for an individual
or a group and would include both food and beverages if they are all
included in the bill. Of course, the measurement would be in dollars. This
information could be very useful for the manager or owner to know the
average size of a bill both in projecting out total revenues over a period or
as a baseline before a marketing effort to increase sales.
2) Percentage of capacity filled. This variable could be measured at various
intervals, times, and days of the week. The measurement would be
calculated by taking the number of patrons in the restaurant at any one
time divided by the total number of seats in the restaurant (capacity).
From this, management could make staffing decisions for various times
and days of the week. In addition, management could make decisions
about when to expand, how much to advertise, and/or when to run
specials.
3) Length of stay. The measurement is how many minutes people are
actually in the restaurant from the time they are assigned a table until they
are leaving. From this, management could determine customer turnover
rates which have capacity implications. That is, how many times in a day
is an average table “turned over”. If people stay longer, do they spend
more?
4) Number of arrivals per 5-minute intervals. The measurement is how many
customers arrive at the front door to be greeted by the maître‘d in any
given five-minute period. This figure will likely vary by day of the week,
season of the year, and time of day. Management can use this information
for staffing decisions and planning.
1.7 a) quantitative
b) quantitative
c) categorical (ordinal)
d) categorical
e) quantitative
f) quantitative
g) categorical
h) quantitative
1.8 a) either
Solutions Manual Chapter 1 1-5
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
b) quantitative
c) categorical
d) quantitative
e) quantitative
f) quantitative
g) categorical
h) categorical (ordinal)
1.9 a) The population for this study is the 900 electric contractors who purchased
Mapletech’s wire.
b) The sample is the randomly chosen group of 35 contractors.
c) The statistic is the average satisfaction score for the sample of 35
contractors.
d) The parameter is the average satisfaction score for all 900 electric
contractors in the population.
Solutions Manual Chapter 1 1-6
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
Legal Notice
Copyright
Copyright © 2018 by John Wiley & Sons Canada, Ltd. or related companies. All rights
reserved.
The data contained in these files are protected by copyright. This manual is furnished
under licence and may be used only in accordance with the terms of such licence.
The material provided herein may not be downloaded, reproduced, stored in a retrieval
system, modified, made available on a network, used to create derivative works, or
transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, scanning, or otherwise without the prior written permission of John Wiley &
Sons Canada, Ltd.
(MMXVII ix FI)
Solutions Manual Chapter 1 1-7
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
, Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
SOLUTIONS TO PROBLEMS IN
CHAPTER 2: ORGANIZING AND VISUALIZING DATA
2.1
Number of passengers
Percentage Cumulative
Airlines (in millions)
Delta 164.6 20.9% 20.9%
United 140.4 17.8% 38.7%
Southwest 134.0 17.0% 55.7%
American 107.9 13.7% 69.4%
China
Southern 86.5 11.0% 80.4%
Ryanair 79.6 10.1% 90.5%
Lufthansa 74.7 9.5% 100.0%
TOTAL 787.7 100.0%
2.2
Firm Revenue ($U.S. millions) Percentage Cumulative
Pfizer 67,809 23.3% 23.3%
Novartis 53,324 18.3% 41.6%
Merck & Co. 45,987 15.8% 57.4%
Bayer 44,200 15.2% 72.6%
GlaxoSmithKline 42,813 14.7% 87.3%
Johnson and 37,020
Johnson 12.7% 100.0%
TOTAL 291,153 100.0%
2.3
One-Way Commute Distance (in km)
0-3 4 - 10 More than 10 Total
Number of Annual 0-2 95 184 117 396
Non-vacation -Day 3-5 21 40 53 114
Absences More than 5 3 7 12 22
Total 119 231 182 532
Solutions Manual Chapter 2 2-1
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
Statistics 1e Canadian Black
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
SOLUTIONS TO PROBLEMS IN
CHAPTER 1: INTRODUCTION TO STATISTICS
1.1 Examples of data in business disciplines:
Accounting - cost of goods, salary expense, depreciation, utility costs, taxes,
equipment inventory, etc.
Finance - World Bank bond rates, number of failed savings and loans, measured
risk of common stocks, stock dividends, foreign exchange rate, liquidity rates for
a single-family, etc.
Human resources - salaries, size of engineering staff, years of experience, age of
employees, years of education, etc.
Marketing - number of units sold, dollar sales volume, forecast sales, size of sales
force, market share, measurement of consumer motivation, measurement of
consumer frustration, measurement of brand preference, attitude measurement,
measurement of consumer risk, etc.
Operations and supply chain management - the number, location, and network
missions of suppliers, production facilities, distribution centers, warehouses,
cross-docks, and customers; the quantity and location of inventory, including raw
materials, work in process (WIP), and finished goods, etc.
Information systems - CPU time, size of memory, number of work stations,
storage capacity, percent of professionals who are connected to a computer
network, dollar assets of company computing, number of “hits” on the Internet,
time spent on the Internet per day, percentage of people who use the Internet,
retail dollars spent in e-commerce, etc.
Production - number of production runs per day, weight of a product; assembly
time, number of defects per run, temperature in the plant, amount of inventory,
turnaround time, etc.
Management - measurement of union participation, measurement of employer
support, measurement of tendency to control, number of subordinates reporting to
a manager, measurement of leadership style, etc.
Solutions Manual Chapter 1 1-1
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
1.2 Examples of data that can be gathered for decision-making purposes in
industries:
Manufacturing - size of punched hole, number of rejects, amount of inventory,
amount of production, number of production workers, etc.
Insurance - number of claims per month, average amount of life insurance per
family head, life expectancy, cost of repairs for major auto collision, average
medical costs incurred for a single female over 45 years of age, etc.
Travel - cost of airfare, number of miles traveled for ground transported
vacations, number of nights away from home, size of traveling party, amount
spent per day on besides lodging, etc.
Retailing - inventory turnover ratio, sales volume, size of sales force, number of
competitors within 2 miles of retail outlet, area of store, number of sales people,
etc.
Communications - cost per minute, number of phones per office, miles of cable
per customer headquarters, minutes per day of long distance usage, number of
operators, time between calls, etc.
Computing - age of company hardware, cost of software, number of CAD/CAM
stations, age of computer operators, measure to evaluate competing software
packages, size of data base, etc.
Agriculture - number of farms per county, farm income, number of acres of corn
per farm, wholesale price of a gallon of milk, number of livestock, grain storage
capacity, etc.
Banking - size of deposit, number of failed banks, amount loaned to foreign
banks, number of tellers per drive-in facility, average amount of withdrawal from
automatic teller machine, Federal Reserve discount rate, etc.
Health care - number of patients per physician per day, average cost of hospital
stay, average daily census of hospital, time spent waiting to see a physician,
patient satisfaction, number of blood tests done per week.
1.3 Descriptive statistics in recorded music industry:
1) Number of artists under contract to a company at a given time, number of
subscribers to streaming services.
2) Total dollars spent on advertising last month to promote an album.
Solutions Manual Chapter 1 1-2
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
3) Number of Spotify streams for a band.
4) Number of songs obtained via iTunes.
Inferential statistics in recorded music industry:
1) Measure the amount spent per month on streaming services for a few
consumers then use that figure to infer the amount for the population.
2) Determination of market share for rap music by randomly selecting a
sample of 500 purchasers of recorded music.
3) Determination of top ten single records by sampling the number of
requests at a few radio stations.
4) Estimation of the average length of a single recording by taking a sample
of records and measuring them.
The difference between descriptive and inferential statistics lies mainly in the
usage of the data. These descriptive examples all gather data from every item in
the population about which the description is being made.
In each of the inferential statistics examples, a sample of the population is taken
and the population value is estimated or inferred from the sample. For example, it
may be practically impossible to determine the proportion of buyers who prefer
rap music. However, a random sample of buyers can be contacted and
interviewed for music preference. The results can be inferred to population
market share.
1.4 Descriptive statistics in manufacturing batteries to make better decisions:
1) Total number of worker hours per plant per week - help management to
understand labor costs, work allocation, productivity, etc.
2) Company sales volume of batteries in a year - help management to decide
if the product is profitable, how much to advertise in coming year,
compare to costs to determine profitability.
3) Total amount of sulfuric acid purchased per month for use in battery
production. - can be used by management to study wasted inventory,
scrap, etc.
Solutions Manual Chapter 1 1-3
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
Inferential Statistics in manufacturing batteries to make better decisions:
1) Take a sample of batteries and test them to determine the average shelf life
- use the sample average to reach conclusions about all batteries of this
type. Management can then make labeling and advertising claims. They
can compare these figures to the shelf- life of competing batteries.
2) Take a sample of battery consumers and determine how many batteries
they purchase per year. Infer to the entire population - management can
use this information to estimate market potential and penetration.
3) Interview a random sample of production workers to determine attitude
towards company management - management can use this survey results
to ascertain employee morale and to direct efforts towards creating a more
positive working environment which, hopefully, results in greater
productivity.
1.5 1) Size of sale ($) per customer in men’s formal wear. Either by taking a
sample or using a census, management could compute the average sale in
men’s formal wear of a weekly period and compare the number to the
same average taken a year ago or a month ago to determine if more is
being sold per customer. Other variables might include number of sales
per hour, number of people entering the department per day, number of
dress shirts sold per day, etc.
2) Number of employees working per day. This variable could indicate the
day of the week (certain days have more or less sales), sales activity (how
sales are doing overall), or even health of associates. Other variables
might include percent of employees absent due to illness, average number
of hours worked per week per employee, number of open positions, etc.
3) Inventory turnover rate. How fast are items in the store selling? Other
variables might include reorder rate, percent of storage space utilized,
number of stockouts per week, etc.
4) Number of customers that enter the store per hour. This figure will vary
by day, time of day, and season. Comparing figures on this variable from
period to period can give some indication of sales trends which can help
drive human resource planning, etc. Other variables might include amount
of time spent per customer in the store per visit, distance that customers
travel to shop in the store, number of referrals that customers make to
other people annually, etc.
5) Percentage of people paying with cash and percentage of people using
credit cards. These can be used to expedite pay systems, investigate
Solutions Manual Chapter 1 1-4
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
employee theft, calculate surcharges associated with credit cards, etc.
Other variables might include average time per checkout, average wait
time in pay line, etc.
1.6 1) Size of bill or tab. This variable is the total amount in dollars spent by a
patron per visit to the restaurant. The bill or tab could be for an individual
or a group and would include both food and beverages if they are all
included in the bill. Of course, the measurement would be in dollars. This
information could be very useful for the manager or owner to know the
average size of a bill both in projecting out total revenues over a period or
as a baseline before a marketing effort to increase sales.
2) Percentage of capacity filled. This variable could be measured at various
intervals, times, and days of the week. The measurement would be
calculated by taking the number of patrons in the restaurant at any one
time divided by the total number of seats in the restaurant (capacity).
From this, management could make staffing decisions for various times
and days of the week. In addition, management could make decisions
about when to expand, how much to advertise, and/or when to run
specials.
3) Length of stay. The measurement is how many minutes people are
actually in the restaurant from the time they are assigned a table until they
are leaving. From this, management could determine customer turnover
rates which have capacity implications. That is, how many times in a day
is an average table “turned over”. If people stay longer, do they spend
more?
4) Number of arrivals per 5-minute intervals. The measurement is how many
customers arrive at the front door to be greeted by the maître‘d in any
given five-minute period. This figure will likely vary by day of the week,
season of the year, and time of day. Management can use this information
for staffing decisions and planning.
1.7 a) quantitative
b) quantitative
c) categorical (ordinal)
d) categorical
e) quantitative
f) quantitative
g) categorical
h) quantitative
1.8 a) either
Solutions Manual Chapter 1 1-5
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
b) quantitative
c) categorical
d) quantitative
e) quantitative
f) quantitative
g) categorical
h) categorical (ordinal)
1.9 a) The population for this study is the 900 electric contractors who purchased
Mapletech’s wire.
b) The sample is the randomly chosen group of 35 contractors.
c) The statistic is the average satisfaction score for the sample of 35
contractors.
d) The parameter is the average satisfaction score for all 900 electric
contractors in the population.
Solutions Manual Chapter 1 1-6
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
,Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
Legal Notice
Copyright
Copyright © 2018 by John Wiley & Sons Canada, Ltd. or related companies. All rights
reserved.
The data contained in these files are protected by copyright. This manual is furnished
under licence and may be used only in accordance with the terms of such licence.
The material provided herein may not be downloaded, reproduced, stored in a retrieval
system, modified, made available on a network, used to create derivative works, or
transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, scanning, or otherwise without the prior written permission of John Wiley &
Sons Canada, Ltd.
(MMXVII ix FI)
Solutions Manual Chapter 1 1-7
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
, Black, Castillo, Goldlist, Edmunds: Essentials of Business Statistics
SOLUTIONS TO PROBLEMS IN
CHAPTER 2: ORGANIZING AND VISUALIZING DATA
2.1
Number of passengers
Percentage Cumulative
Airlines (in millions)
Delta 164.6 20.9% 20.9%
United 140.4 17.8% 38.7%
Southwest 134.0 17.0% 55.7%
American 107.9 13.7% 69.4%
China
Southern 86.5 11.0% 80.4%
Ryanair 79.6 10.1% 90.5%
Lufthansa 74.7 9.5% 100.0%
TOTAL 787.7 100.0%
2.2
Firm Revenue ($U.S. millions) Percentage Cumulative
Pfizer 67,809 23.3% 23.3%
Novartis 53,324 18.3% 41.6%
Merck & Co. 45,987 15.8% 57.4%
Bayer 44,200 15.2% 72.6%
GlaxoSmithKline 42,813 14.7% 87.3%
Johnson and 37,020
Johnson 12.7% 100.0%
TOTAL 291,153 100.0%
2.3
One-Way Commute Distance (in km)
0-3 4 - 10 More than 10 Total
Number of Annual 0-2 95 184 117 396
Non-vacation -Day 3-5 21 40 53 114
Absences More than 5 3 7 12 22
Total 119 231 182 532
Solutions Manual Chapter 2 2-1
Copyright © 2018 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is strictly
prohibited.
