## Solution Manual for Business Statistics 3rd Edition by Jaggia

Chapter 01 – Statistics and Data

1-1

Solution Manual for Business Statistics © 2019 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any

manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 1. Statistics and Data

Solutions

1.

a. The population is all iPhone 4 users.

b. Sample statistics

2.

The value 35 is the estimated average age of the population. It is both costly and

time consuming (likely impossible) to take a census of all video game players

and compute the actual average age.

3.

a. The population is all students enrolled in the accounting class.

b. The value 3.29 represents the population parameter since we are not

choosing a sample but drawing results from the actual population.

4.

a. The population is all marketing managers.

b. No, the average salary is a sample statistic computed from a sample, not the

population.

5.

a. The population is all elderly people. The sample consists of 949 elderly

people.

b. 22% and 17% represent the sample statistics.

Chapter 01 – Statistics and Data

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© 2019 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any

manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

6.

Date Adj. Close Price

1/4/2016 27.99

2/1/2016 28.26

3/1/2016 30.83

4/1/2016 29.82

5/2/2016 29.31

6/1/2016 30.76

7/1/2016 30.43

8/1/2016 30.52

9/1/2016 29.17

10/3/2016 28.65

11/1/2016 30.29

12/1/2016 31.35

Source: Monthly Adj Close Price in 2016 from http://www.finance.yahoo.com.

Retrieved March 19, 2017.

These numbers represent time series data. The adjusted close price of the stock grew

over this 12-month period, ranging from a low of $27.99 in January and increasing to

$31.35 by December.

7.

Note: Individual answers will vary. This is an example of what an answer may

look like.

Accommodation Monthly

Expenses

Dorm $435

Dorm $480

Rental $505

Other $50

Rental $600

Dorm $425

Rental $525

Other $550

Other $325

Dorm $385

Rental $475

Dorm $400

Dorm $485

Rental $485

Other $475

Dorm $425

Rental $500

Dorm $375

Rental $625

Other $350

Chapter 01 – Statistics and Data

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© 2019 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any

manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

This data is cross-sectional data because it can be assumed to be taken at the

same point in time. The monthly lodging expenses ranges from a low of $50 to a

high of $625. The average expense is $443.75.

8. Note: The data for this website changes regularly. Therefore, individual answers

will differ depending on the date the data is retrieved. This is an example of what

the table may look like:

Homes Price Number of

Beds Square Feet Built

1 $374,900.00 3 3073 2004

2 $112,000.00 4 1788 2005

3 $190,000.00 3 1467 2009

4 $160,000.00 4 1891 2000

5 $30,000.00 3 1026 1977

6 $317,000.00 4 3465 2004

7 $62,000.00 3 1362 1973

8 $120,000.00 3 2005 2002

9 $289,324.00 3 1705 2008

10 $355,000.00 4 3648 2001

11 $65,000.00 2 1296 1976

12 $33,000.00 4 1696 1987

13 $110,000.00 3 1376 2000

14 $310,000.00 5 3716 2001

15 $75,000.00 3 1230 2004

16 $60,000.00 3 1285 2004

17 $140,000.00 4 2217 2003

18 $178,000.00 4 1967 1998

19 $226,000.00 1 533 2006

20 $128,000.00 3 1483 2006

Source: http://zillow.com/; Retrieved August 20, 2012.

The data above is cross-sectional data. The data represents characteristics of

homes sold at approximately the same time of the year.

9.

DATE GPSAVE

Q1.2012 3631.8

Q2.2012 3667.5

Q3.2012 3653.8

Q4.2012 3750.2

Q1.2013 3417.8

Q2.2013 3252.1

Chapter 01 – Statistics and Data

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The Morningstar’s based rating system is measured on an ordinal scale. The

values can be ranked and categorized but the differences between ranks are

meaningless. The data shows that 25 of the 30 (approximately 83%) of the

companies have a two or three-star rating. Only 5 of the 30 companies have

a four-star rating. None of the companies has a one-star or a five-star rating.

c. The Stock Price data is measured on a ratio scale. This type of scale is the

strongest form of measurement. There is a true zero point which allows for

the calculation of meaningful ratios between values.