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, Chapter: 5 -Problem: 14 >> A corporate executive officer is attempting to arrange a meeting of his three vice presidents for tomorrow morning. He believes that each of these three busy individuals, independently of the others, has about a 60% chance of being able to attend the meeting.a. Find the probability distribution of X, the number of vice presidents who can attend the meeting.b. What is the probability that none of t
Answer Preview: To solve these probability questions, we'll use the concept of the binomial distribution. The binomial distribution is used to model the number of suc…

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, Chapter: 6 -Problem: 15 >> You have been told that the distribution of regular unleaded gasoline prices over all gas stations in Indiana is normally distributed with mean $1.25 and standard deviation $.075, and you have been asked to find two dollar values such that 95% of all gas stations charge somewhere between these two values. Why are each of the following acceptable answers: between $1.076 and $1.381, or between $1.10
Answer Preview: The given distribution of regular unleaded gasoline prices is normally distributed with a mean of $1 25 and a standard deviation of $0 075. To find tw…

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, Chapter: 5 -Problem: 68 >> You have placed 30% of your money in investment A and 70% of your money in investment B. The annual returns on investments A and B depend on the state of the economy as shown in Table 5.35. Determine the mean and standard deviation of the annual return on your investments.  Transcribed Image Text: T
Answer Preview: To determine the mean and standard deviation of the annual return on your investments, we can use th…

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, Chapter: 5 -Problem: 69 >> There are three possible states of the economy during the next year (states 1, 2, and 3). The probability of each state of the economy, as well as the percentage annual return on IBM and Disney stocks, are as shown in Table 5.36. a. Find the correlation between the annual return on IBM and Disney. Interpret this correlation.b. If you put 80% of your money in IBM and 20% in Disney, find the mean an
Answer Preview: To find the correlation between the annual return on IBM and Disney, we first need to calculate the covariance between the two stocks. The covariance is given by the formula: Cov(X, Y) = [(Xi - X_mean…

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, Chapter: 8 -Problem: 68 >> Wal-Mart buyers seek to purchase adequate supplies of various brands of toothpaste to meet the ongoing demands of their customers. In particular, Wal-Mart is interested in knowing the proportion of its customers who favor such leading brands of toothpaste as Aquafresh, Colgate, Crest, and Mentadent. The file P8_41.XLS contains the toothpaste brand preferences of 2000 Wal-Mart customers, obtained r
Answer Preview: To answer the questions, we will follow these steps: a. Determine the proportion of Wal-Mart custome…

, Chapter: 8 -Problem: 67 >> Wal-Mart buyers seek to purchase adequate supplies of various brands of toothpaste to meet the ongoing demands of their customers. In particular, Wal-Mart is interested in knowing the proportion of its customers who favor such leading brands of toothpaste as Aquafresh, Colgate, Crest, and Mentadent. The file P8_41.XLS contains the toothpaste brand preferences of 2000 Wal-Mart customers, obtained r
Answer Preview: a. To determine the proportion of Wal-Mart customers who favor each major brand of toothpaste, we need to analyze the data in the "P8_41 XLS" file. Th…

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, Chapter: 8 -Problem: 69 >> Suppose that you are an entrepreneur interested in establishing a new Internet-based sports information service. Furthermore, suppose that you have gathered basic demographic information on a large number of Internet users. Assume that these 1000 individuals were carefully selected through stratified sampling. These data are stored in the file P2_43.XLS. a. To assess potential interest in your pro
Answer Preview: a. To conduct telephone interviews with a representative subset of the 1000 Internet users, stratified sampling can be used. In stratified sampling, t…

, Chapter: 6 -Problem: 28 >> Suppose that 60% of all people prefer Coke to Pepsi. We randomly choose 500 people and ask them if they prefer Coke to Pepsi. What is the probability that our survey will (erroneously) indicate that Pepsi is preferred by more people than Coke?
Answer Preview: To calculate the probability of the survey erroneously indicating that Pepsi is preferred by more people than Coke, we need to use the concept of samp…

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, Chapter: 6 -Problem: 14 >> The lifetime of a washing machine is normally distributed with mean 4 years. Only 15% of all washing machines last at least 5 years. What is the standard deviation of the lifetime of a washing machine?
Answer Preview: To find the standard deviation of the lifetime of a washing machine, we can use the properties of …

, Chapter: 5 -Problem: 70 >> There are three possible states of the economy during the next year (states 1, 2, and 3). The probability of each state of the economy, as well as the percentage annual return on P&G and US Steel, are as shown in Table 5.37. a. Find the correlation between the annual return on P&G and US Steel. Interpret this correlation. b. If you put 80% of your money in P&G and 20% in US Steel, find the mean an
Answer Preview: To find the correlation between the annual return on P&G and US Steel, we need to calculate the covariance and standard deviations first. The formula …

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, Chapter: 9 -Problem: 49 >> Find a 95% confidence interval for the mean total cost of all customer orders. Then do this separately for each of the four regions. Create side-by-side boxplots of total cost for the four regions. Does the positive skewness in these boxplots invalidate the confidence interval procedure used?
Answer Preview: To find a 95% confidence interval for the mean total cost of all customer orders, you'll need some data to work with. The confidence interval procedur…

, Chapter: 6 -Problem: 5 >> Warren Dinner has invested in nine different investments. The returns on the different investments are probabilistically independent, and each return follows a normal distribution with mean $500 and standard deviation $100. a. There is a 1% chance that the total return on the nine investments is less than what value? (Use the fact that the sum of independent normal random variables is normally dis
Answer Preview: a. To find the value below which there is a 1% chance that the total return on the nine investments …

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, Chapter: 5 -Problem: 15 >> Several students enrolled in a finance course subscribe to Money magazine. If two students are selected at random from this class, the probability that neither of the chosen students subscribes to Money is 0.81. Furthermore, the probability of selecting one student who subscribes and one student who does not subscribe to this magazine is 0.18. Finally, the probability of selecting two students who
Answer Preview: To find the mean and standard deviation of X (the number of students who subscribe to Money magazine from the two selected at random), we can use the …

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, Chapter: 6 -Problem: 25 >> Suppose that the number of ounces of soda put into a Pepsi can is normally distributed with jt = 12.05 ounces and o = 0.03 ounce. a Legally, acan must contain at least 12 ounces of soda. What fraction of cans will contain at least 12 ounces of soda? What fraction of cans will contain less than 11.9 ounces of soda? What fraction of cans will contain between 12 and 12.08 ounces of soda? One percent
Answer Preview: To answer the questions, we will use the properties of the normal distribution. In this case, the number of ounces of soda in a Pepsi can follows a normal distribution with a mean () of 12 05 ounces a…

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, Chapter: 11 -Problem: 63 >> Continuing the previous problem, suppose that SteelCo can pay money to reduce the standard deviation of the process. It costs e100D dollars to reduce the standard deviation from 0.025 to 0.025 — d. (This reflects the fact that small reductions are fairly cheap, but large reductions are quite expensive.) If the company wants to make sure that at least 99% of all rods meet specifications, how much w
Answer Preview: To ensure that at least 99% of all rods meet specifications (fall within the range of 95 6 to 95 7 i…

, Chapter: 8 -Problem: 64 >> The Hite Report was Sheri Hite’s survey of the attitudes of American women toward sexuality. She sent out over 100,000 surveys; each contained multiple-choice and open-ended questions. These surveys were given to women’s groups and announced in church newsletters. Ads were also placed in women’s magazines. A total of 3019 surveys were returned. Sheri Hite’s findings challenged much conventional wi
Answer Preview: Critiquing Sheri Hite's methodology for the Hite Report requires an examination of the survey's sampling methodology and potential biases. Here are tw…

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, Chapter: 6 -Problem: 26 >> Suppose that 52% of all registered voters prefer Bill Clinton to Bob Dole. (You may substitute the names of the current presidential candidates!) a Inarandom sample of 100 voters, what is the probability that the sample will indicate that Clinton will win the election (that is, there will be more votes in the sample for Clinton)? b Inarandom sample of 100 voters, what is the probability that the s
Answer Preview: To calculate the probabilities in each case, we can use the binomial probability formula, which is given by: P(X = k) = (n C k) * p^k * (1 - p)^(n - k…

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13 Reviews for Managerial Statistics Textbook Questions And Answers