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ECO 213B Statistics for Business and Economics GROUP HOMEWORK 2

Dr. Siddiquee 1. Andrews and Associates specialize in corporate law. They charge $100 an hour for researching a case, $75 an hour for consultations, and $200 an hour for writing a brief. Last week one of the associates spent 10 hours consulting with her client, 10 hours researching the case, and 20 hours writing the brief. What was the weighted mean hourly charge for her legal services? What is the arithmetic mean of hourly charges? $143.75, found by ($1000 +$750 + $4000)/40

2. The following are the ages of the 10 people in the video arcade at the Southwyck Shopping Mall at 10 a.m. Calculate the (a) arithmetic mean, (d) median, and (e) mode age. Mean = 11.1; Median = 10.5; Mode = 8 3. Compute the geometric mean of the following percent increases: 2, 8, 6, 4, 10, 6, 8, and 4. Compare it with the arithmetic mean percent increase in this case. 6.0 percent increase, found by
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(1.02)(1.08)(1.06)(1.04)(1.10)(1.06)(1.08)(1.04) = 1.060

4. The information below shows the cost for a year of college in public and private colleges in 1992 and 2004. What is the geometric mean annual increase for the period for the two types of colleges? Compare the rates of increase between the two types of colleges. Type of College 1992 2004 Public Private $4,975 12,284 $11,354 27,516

5. The annual incomes of the five vice presidents of TMV Industries are: $125,000; $128,000; $122,000; $133,000; and $140,000. Consider this a population. a. What is the range? 18,000, found by $140,000 $122,000 b. What is the mean deviation? c. What is the variance? The standard deviation? d. The annual incomes of officers of another firm similar to TMV Industries were also studied. The mean was $129,000 and the standard deviation $8,612. Compare the means and dispersions in the two firms. 6. A consumer watchdog organization is concerned about credit card debt. A survey of 10 young adults with credit card debt of more than $2,000 showed they paid an average of just over $100 per month against their balances. Listed below is the amounts each young adult paid last month.

a. What is the range? b. What is the mean deviation?

2 c. Is this a sample or population? d. What is the variance? The standard deviation? (101 95.1) 2 + (97 95.1) 2 + L + (88 95.1) 2 2 = 123.66 X = 95.1 s = 10 1 11.12 7. The mean income of a group of sample observations is $500; the standard deviation is $40. According to Chebyshev's theorem, at least what percent of the income values will lie between $400 and $600? About 84%, each income levels lie 2.5 standard deviations from the mean. Then 1 1 = 0.84 (2.5) 2

a. b. According to the Empirical Rule, what percentage of income values will lie between $420 and $580? 8. Kevin Horn is the national sales manager for National Textbooks, Inc. He has a sales staff of 40 who visit college professors all over the United States. Each Saturday morning he requires his sales staff to send him a report. This report includes, among other things, the number of professors visited during the previous week. Listed below, ordered from smallest to largest, are the number of visits last week.

a. b. c. d.

Determine the median number of calls. Determine the first and third quartiles. Determine the first decile and the ninth decile. Determine the 33rd percentile.

9. The box plot shows the undergraduate in-state charge per credit hour at four-year public colleges.

a. b. c. d.

Estimate the median. Estimate the first and third quartiles. Determine the inter-quartile range. Interpret. Beyond what point is a value considered an outlier?

3 e. Identify any outliers and estimate their value. f. Is the distribution symmetrical or positively or negatively skewed? 10 Listed below are the salaries, in $000, for a sample of 15 chief financial officers in the electronics industry.

a. Determine the mean, median, and the standard deviation. b. Determine the coefficient of skewness using Pearson's method. c. Interpret the skewness coefficient.