Premium Essay

Applied Business Statistics

In: Business and Management

Submitted By MsShaw
Words 2510
Pages 11
Applied Business Statistics
FINAL Examination 1. The t distribution
 A) assumes the population is normally distributed.
 B) approaches the normal distribution as the sample size increases. C) has more area in the tails than does the normal distribution.
 D) All of the above. 2. Suppose a 95% confidence interval for μ turns out to be (1,000, 2,100). Give a definition of what it means to be "95% confident" in an inference.
 A) In repeated sampling, the population parameter would fall in the given interval 95% of the time. B) In repeated sampling, 95% of the intervals constructed would contain the population mean. 
 C) 95% of the observations in the entire population fall in the given interval. D) 95% of the observations in the sample fall in the given interval. 3. In the construction of confidence intervals, if all other quantities are unchanged, an increase in the sample size will lead to a wider interval.

A) narrower

B) wider 

C) less significant
D) biased 4. An economist is interested in studying the incomes of consumers in a particular region. The population standard deviation is known to be $1,000. A random sample of 50 individuals resulted in an average income of $15,000. What is the upper end point in a 99% confidence interval for the average income?

A) $15,052

B) $15,141
 See worksheet
C) $15,330

D) $15,364 5. A prison official wants to estimate the proportion of cases of recidivism. Examining the records of 250 convicts, the official determines that there are 65 cases of recidivism. A confidence interval will be obtained for the proportion of cases of recidivism. Part of this calculation includes the estimated standard error of the sample proportion. For this sample, the estimated standard error is 0.28 .
See worksheet 6. Which of the following would be an…...

Similar Documents

Premium Essay

Applied Managerial Statistics

...the manager’s speculations. A. The first speculation is that the average mean annual income was less than $50,000. Below is my hypothesis testing: The null hypothesis H0 is that the mean annual income μ is equal to $50,000. H0: μ = $50,000. The alternative hypothesis H1 is that the mean annual income μ is less than $50,000. H1: μ < $50,000. Significance level is 5% or α = 0.05 Since, the population standard deviation is of the project is unknown. Therefore, I will use a t statistic which is t = X-μS/n follows a t distribution with n-1 degrees of freedom. Looking at the t table corresponding to 0.05 probability, the critical value tα =1.6766. Hence the critical region is t < -1.6766. Otherwise, we will reject the null hypothesis, if the p value is less than the significance level. If we substituting the value we get t = 43.74-5014.6396/50 = -3.02 the p value corresponding to t = -3.02 and 49 d.f. is 0.002 which is smaller than the significance level. The value of the test statistic is in the critical region and therefore it is significant. So, i will reject the null hypothesis at 5% level of significance. My p-value is 0.002 which is smaller than the significance level. Hence there are 0.002 chances that such a small value can be observed when the null hypothesis is true. Since, my probability is smaller than the significance level I will reject the null hypothesis at 5% level. Therefore, I conclude that there is enough evidence to support the......

Words: 5609 - Pages: 23

Premium Essay

Statistics in Business

... Statistics in Business Statistics is a mathematical science pertaining to the collection, analysis, interpretation or explanation, and presentation of data. It also provides tools for prediction and forecasting based on data. It is applicable to a wide variety of academic disciplines, from the natural and social sciences to the humanities, government and business ("Statanalysis Consulting", 2013). Statistics is used in decision making that affects our everyday lives. The study of statistics is divided into two categories and has four levels of measurements. The two types of statistics are descriptive statistics and inferential statistics. Descriptive statistics is the organizing, presenting, and analyzing of data in an informative way. Inferential statistics is the methods used to estimate a property of a population on the basis of a sample. The four levels of measurements in statistics are nominal, ordinal, interval, and ratio. The first scale is nominal. The nominal level of measurement is the lowest level. Nominal data deals with names, categories, or labels. The next level is called the ordinal level of measurement. Data at this level can be ordered, but no differences between the data can be taken that are meaningful. The interval level of measurement deals with data that can be ordered, and in which differences between the data does make sense. The fourth and highest level of measurement is the ratio level. Data at the ratio level possess all of the features of......

Words: 530 - Pages: 3

Premium Essay

Applied Business

...Business name My name is Megan Quigley, and I am a sole trader of a new pizza business. My pizza business will trade under the name of “Mama’s Delight Pizza ”. My business will be located in Northside Shantallow, Derry, Northern Ireland Mission Statement A mission statement is a formal short written statement of the purpose of a company or organisation. The mission statement should guide the actions of the organisation, show its overall goal, and provide a sense of direction. The mission statement also defines the essence of a company what it stands for, what products or services it intends to offer customers. The mission statement also gives the readers a window on the raison deters of the company. Our mission statement for Mama’s Delight Pizza is: "At Mama's delight Pizza we aim to produce pizzas of the best quality and taste to give pleasure to our customers. We want to become well known for good quality pizzas and excellent customer service pizzas in the Derry area" Aims and objectives An aim is where the business wants to go in the future, its goals. It is a statement of purpose, e.g. we want to grow the business into Europe. The aims of Mama’s Delight Pizza are: • To be the best pizza take away in the Derry area • To improve customer relations • To delivery a high quality standard of pizzas to our customer Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can......

Words: 1511 - Pages: 7

Premium Essay

Statistics in Business

...Statistics in Business Joseph Giardino Qnt 351 November 20, 2013 Forrest Boyd Statistics in Business Webster’s dictionary (2013) defines statistics as “a branch of mathematics dealing with the collection, analysis, interpretation, and presentation of masses of numerical data; a collection of quantitative data.” At its core, statistics is a mathematical process of crunching numbers and solving equations, just like all other math disciplines. Statistics separates itself by using the data and equations to interpret and influence business decisions. Statistics are commonly classified in one of two category types, descriptive and inferential. Descriptive statistics can be summarized as “the information revealed in a data set, and to present the information in a convenient form” (McClave, Benson, & Sincich, 2011). Inferential uses the data sample to allow individuals to predict or make decisions that will impact the larger data. Having accurate data plays a huge role in the decision-making process businesses go through on a daily basis. “Successful managers rely heavily on statistical thinking to help them make decisions” (McClave, Benson, & Sincich, 2011). Everyday issues that managers face are solved most efficiently when managers create a statistical question that can be solved by data. Collecting data and analyzing outcomes prior to implementing actions will allow the manager to make an informed decision and save time and money by avoiding trial and error. ...

Words: 406 - Pages: 2

Premium Essay

Statistics in Business

...Statistics in Business Alfred Lewis QNT/351 October 23, 2013 Victor Ornelas Statistics in Business In the book Lind, Marchal, and Warhen (2011), the field of study of data is what's called statistics . It includes classifying, collecting, organizing, summarizing, interpreting numerical information, and analyzing (Chapter 1). The different types, and levels of statistics.The use of graphical, and numerical systematic way to find a perceptual structure in data, to sum up the collection of facts discovered in data, and to deliver the collection of facts in accessible sorts is Descriptive statistics. Statistical Descriptive problems are sample of interest, and the grouping, variety of logical expressions that are researched, graphs, Tables, numerical summary tools, and the individuality of systematic way in data. Also there are statistics that are Inferential that uses data to come up with, decide, predict, or other ideas about data. The five conditions of inferential statistical problems: The collection of one or more facts(the character of the grouping units) that can be examined, the collection of units, the inferential about the collection based on data controlled in the sample, and the measurement of responsibility for the inferential system. When it comes to the role of statistics in business decision making it is applied in many ways in terms of consumer preferences or even financial trends. For......

Words: 347 - Pages: 2

Premium Essay

Applied Business

...Sainsbury’s Job Roles Manager Roles/responsibilities As a store manager, it’s ultimately there job to deliver a great shopping experience in a safe and secure environment for all their customers. The manager has overall responsibility for the store and for planning for making sure that the store meets the objectives set for the business by the head office. They delegate authority to supervisors however they have to take responsibility for everything that occurs in the store. Store managers need to be able to employ staffing and conduct training. The manager is responsible for employing people with the right attitude and skills in order to become a general assistant. The manager is also responsible to give the employee suitable training and conditioning as per the organizational requirements. Furthermore the manager also makes sure that the employees are working as expected, on a daily basis and in case of disorganisation, the store manager has the ability to warn, or even fire the employee. Also Store managers need to be able to handle customer complaints and queries. The success of the retail store depends upon if the customer is satisfied with their shopping experience. There are many occasions when the customer is unhappy about the customer service which is provided by the store. It could be due to an unpleasant general assistant, or because of bad quality. The manager is expected to handle all the complaints and queries faced by the customers in a satisfying way...

Words: 403 - Pages: 2

Premium Essay

Applied Managerial Statistics

...206 | 356 | 4603 | 4603 | 4828 | 5301 | 5301 | 698 | The table shows us that the household size with the most credit balance is the household size of 6 with $5032 average balance. And the lowest credit balance is household size of 1 with an average balance of $2781. This basically tells us that the more people in a household the higher the credit balance. Conclusion From the data provided we have gathered where most customers are, which area does the biggest household live in, and how much more they are buying by the average of credit balance shown in table F. We could also gather from the data who makes more money and who spends more which could be considered as the sample with the more buying power. This data can be helpful in a business because we could figure out from the information who and where is our target audience....

Words: 901 - Pages: 4

Premium Essay

Statistics in Business

...Statistics in Business Statistics is the collection of numerical information. Statistics collect and analyze the numerical information in large amount. There are many different types and levels of statistics. Statistics is separated into two groups’ descriptive statistic and inferential statistics. Descriptive statistics is the methods of classifying, summarizing, and giving information in an informative way. Inferential statistics method is used to estimate a property of a population on the basis of a sample. Statistics is a major factor in businesses decision making, statistics in business give them an idea of what customer they are trying to target and the amount of services and products that they will need to meet their goal Lind, Marchal, & Wathen (2011). There are many examples where statistics are used. For example when the census bureau sends out documents to fill out about your house they are gathering information to analyze the numbers to get a figure of what is going on with the population. Another example of statistics is when a certain amount of population tune in Sunday to watch the super bowl it was one of the most watch game in NFL history it was also a commercial that catch the eye of most of the viewers they went on social media to view their opinions about the commercial some find that it was not fit for that moment and some on the other hand find that it was ok. Another example of statistics is when the University of Phoenix takes a survey at the end of......

Words: 372 - Pages: 2

Free Essay

Applied Statistics

...GM533 Applied Managerial Statistics Course Project Ebenezer Newman and Mark Cherry * NE (Northeast) 1: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, Pennsylvania, New Jersey 0: Others * MW (Midwest) 1: Wisconsin, Michigan, Illinois, Indiana, Ohio, Missouri, North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa 0: Others * WEST (West) 1: Idaho, Montana, Wyoming, Nevada, Utah, Colorado, Arizona, New Mexico, Alaska, Washington, Oregon, California, Hawaii 0: Others * Region 3 (South) Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida, Kentucky, Tennessee, Mississippi, Alabama, Oklahoma, Texas, Arkansas, Louisiana Scatter plots Get the scatter plots for each variable against the crime rate VIF From the result we see that there is no Multicorinality Predictor Coef SE Coef T P VIF Constant -340 1101 -0.31 0.759 NEAST -304.9 508.9 -0.60 0.553 3.307 MID-WEST -164.5 475.2 -0.35 0.731 3.564 WEST 351.6 588.9 0.60 0.554 5.773 PINCOME -0.01055 0.07966 -0.13 0.895 4.154 DROPOUT 70.66 26.61 2.66 0.011 2.975 PUBAID -76.43 86.78 -0.88 0.384 2.305 DENSITY -1.6666 0.9109 -1.83 0.075 3.760 KIDS 0.851 1.801 0.47 0.639 3.959 PRECIP 7.69 13.85 0.56 0.582 3.328 UNEMPLOY -93.30 ...

Words: 1030 - Pages: 5

Premium Essay

Statistics in Business

...Statistics in Business Kathleen S. Power-Davenport QNT/351 May 25, 2015 Lance Milner Statistics in Business Introduction Statistics is "the science of collecting, organizing presenting, analyzing, and interpreting data to assist in making more efficient decisions" (Lind, Marchal & Wathen, 2011). This paper will summarize the types, levels, and the role of statistics in business decision making, followed by examples of statistics in action. Types, Levels, and the Role in Business Decision Making The two categories of statistics are descriptive and inferential. Descriptive statistics is the analysis of data that describes, or summarizes the data in a meaningful way (Laerd Statistics, 2013). Business leaders can organize large amounts of data into a comprehensive format utilizing descriptive statistics. But descriptive statistics do not make conclusions about the data. An inferential statistic is calculated by taking a sample of the data from the population, and drawing a conclusion about the whole based on the small amount (Lind, Marchal & Wathen). Decision makers move forward based on a conclusion drawn from statistical inference. The data gathered for statistics is classified into four levels of measurement: nominal, ordinal, interval and ratio (Lind, Marchal & Wathen). Data at the lowest level is nominal and has a qualitative variable divided into categories or outcomes. Ordinal data is qualitative and represented by sets of labels or......

Words: 484 - Pages: 2

Free Essay

Statistics in Business

...Statistics in Business Name QNT/351 Date Instructor Statistics in Business As defined by the text, “Statistics is the science of data. It involves collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information.” (McClave, Benson, & Sincich, 2011) Numbers, recorded as data, are gathered and then evaluated by professional statisticians who draw conclusions from the information. Two different types of statistics are descriptive and inferential. Descriptive statistics uses numbers and graphs to find patterns. The patterns presented in a form that is easy to read and understand to summarize the gathered data. In inferential statistics, decisions or predictions regarding larger data sets are done using sample data. There are four different levels to measurement in statistics: nominal, ordinal, interval, and ratio. In the first level, nominal measurement, numbers are used to classify data; words and numbers can also be used. In the second level, ordinal level, a type of relationships shows the compatibility between the numbers collected in the first level. In the third level, or the interval level, measurements are classified, ordered, and distances between each interval are defined. The fourth and final level, the ratio level, measurements can be a value of zero. It’s important to know that of the levels, the nominal level is the simplest where data is only classified. Levels of measurement in the interval and ratio levels are......

Words: 313 - Pages: 2

Premium Essay

Statistics of Business

...Statistics in Business Michael Foster QNT/351 September 16, 2015 Henry Jacobs Statistics in Business The definition of statistics is the logic science of gathering data. The application of statistics is a systematic procedure of collecting, classifying, summarizing, organizing, analyzing, and communicating numerical information's (Lind, Marchal, & Wathen, 2011). There are two categories of statistics; descriptive and inferential statistics. The identity of descriptive statistics is a certain method of organization, summarizing, and presenting data in an informative way (Lind, Marchal, & Wathen, 2011). The identity of inferential statistics is classified as a method implemented to estimate a property of a certain population on basis of a sample (Lind, Marchal, & Wathen, 2011). There are four type and levels of statistics in the business and industry. The four types and levels of statistics are classified as (level 1) nominal-data is classified information. Ordinal-data (level 2) is date of rank of information. Interval-data ( level 3) is the difference in value. Ratio-data (level 4) is meaningful 0 points and ratio between values ("Data Levels Of Measurement", 2015). The role that statistics play in the business world is describe as a insightful communication tool to resolve key issues in modern-day business, through decision-making (Hahn, 2015). Today's statistics allow supervisor to encourage their employees to be proactive and productive in...

Words: 419 - Pages: 2

Premium Essay

Business Statistics

...What I’ve Learned about Statistics Statistics is all around us that, in fact, it would be difficult to go through the day without being flooded with some sort of statistics or statistical information. It is so commonly used in everyday conversations – be it regarding customer surveys, weather forecasts, political polls, or sports statistics – that we find it difficult to differentiate flawed from actual valid claims. So many times we hear “9 out of 10 says…” or “99 percent of the people” that statistics has been labeled as the science of stating precisely what we do not really know. In this paper, I will break down what statistics actually is and its daily application in our lives, business and personal. Statistics and Its Importance Statistics is more than just a complex branch of mathematics. It is the collection, classification, analysis, and interpretation of numerical facts from data (Dunn & Fahey, 2005) that businesses use to evaluate trends and make estimates or forecasts critical to its success and/or failure. When done correctly, the use of historical data or trends can help make future business decisions leading to the success of your organization (Carden, 2013). In economics, for instance, relationships between supply and demand are found using statistical information. In this paper, I will use the Air Force Reserve Officer Training Corps (AFOQT) cadet life cycle information to explain some of the basic facets of statistics. Types of Statistical......

Words: 1058 - Pages: 5

Premium Essay

Statistic in Business

...Statistics in Business Statistics is defined by Merriam-Webster as a branch of math dealing with the collection, analysis, interpretation and presentation of masses of numerical data; or a collection of quantitative data (Statistics, n.d.). Statistics is all around us. Everything from our actions, to our purchases, to even sports involve the collection, analysis, interpretation and presentation of data. There are two types of statistics. One type is called, descriptive statistics, which uses numbers and graphs to identify patterns and trends in data sets and is used to present revealed information in an easy to understand form. The other type of statistic is known as inferential statistic. Inferential statistics is using sample data collected from a smaller sample, and using those results to make predictions, estimates, decisions and other generalizations about a larger set of data (McClave, Benson, & Sincich, 2011). Statistics plays a number of roles in business decisions. One of the more obvious roles it plays is in marketing. Research studies allow businesses to be proactive by predicting customer behavior and creating specific marketing plans. For instance a business that sells sandals would use statistics to identify when sales have increased and when they are likely to increase again. For instance the spring and summer months show statistics of higher sales, which tells the business to increase inventory at those times. Another one of the many roles......

Words: 455 - Pages: 2

Free Essay

Statistics in Business

...Statistics in Business QNT/275 June 29, 2016 Statistics in Business According to "Define Statistics At Dictionary.com the science that deals with the collection, classification, analysis, and interpretation of numerical facts or data, and that, by use of mathematical theories of probability, imposes order and regularity on aggregates of more or less disparate elements. Quantitative vs. Quantities There are two general types of data. Quantitative data is information about quantities; that is, information that can be measured and written down with numbers. Some examples of quantitative data are your height, your shoe size, and the length of your fingernails. Speaking of which, it might be time to call Guinness. You've got to be close to breaking the record. Qualitative data is information about qualities; information that can't actually be measured. Some examples of qualitative data are the softness of your skin, the grace with which you run, and the color of your eyes. However, try telling Photoshop you can't measure color with numbers. Here's a quick look at the difference between qualitative and quantitative data. The age of your car. (Quantitative.) The number of hairs on your knuckle. (Quantitative.) The softness of a cat. (Qualitative.) The color of the sky. (Qualitative.) The number of pennies in your pocket. (Quantitative.) Remember, if we're measuring a quantity, we're making a statement about quantitative data. If we're describing qualities, we're making a...

Words: 1380 - Pages: 6