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Three professors examined awareness of four widely disseminated retirement rules among employees at the university of Utah. These rules provide simple answer to questions about retirement about retirement planning (R.N. Mayer, C.D. Zick, and M. Glattle, “public Awareness of Retirement planning Rules of Thumb,� Journal of personal Finance, 2011 10(1), 12-35). At the time of the investigation there were approximately 10,000 benefited employee and 3,095 participated in the study. Demographic data collected on these 3,095 employees included gender age (years), education level (years completed), marital status, household income ($) and employment category.
a. Describe the population of interest
b. Describe the sample that was collected.
c. Indicate whether each of the demographic variables mentioned is categorical or numerical.
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Basic Business Statistics
- a) Genenesis Dispensary is contemplating of opening a new branch in Mwanza. If the medical for medical service is favourable, Genesis could realize a net profit of Tsh.100 million. On the other hand, if the market turn out to be unfavourable, it can end up losing Tsh. 40 million. Of course, Genesis may opt not to persue this option of expanding its operations. In the absence of data from which to base its decision, te best guess for Gensis is equally likely that the dispensary will either be successful or unsuccessful Required: i) Use the decison tree approach, what decison should Genesis Dispensary take b) Market research firm named, Easy Market Access approach Genesis with an offer to undertake a study of Mwanza medical service market at a fee of Tsh. 5 million. Easy Market Access claims that their experience enables them to use Bayes’ Theoremn to make the following statements about different state of the market: ▪ Provide that the study is favourable, the probability of favourable…arrow_forwardWalmart predicted the following end-of-year earnings from 2003 - 2012 in billions of dollars (9.5, 9.8, 10.2, 10.7, 10.5, 11.0, 12.1, 14.7, 16.3, 18.7). Their actual end-of- year earnings for the same years are as follows: 9.1, 9.2, 10.6, 10.3, 9.9, 10.4, 11.6, 11.8, 13.1, 22.7). In testing the claim that the mean predicted value is the same as the mean actual value, which p-value is correct? 0.228 0.456 0.779 0.05 4arrow_forwardThe index of leading economic indicators, compiled and published by the U.S. National Bureau of Economic Research, is composed of 12 time series, such as the average work hours of production in manufacturing, manufacturers’ new orders, and money supply. This index and similar indexes are designed to move up or down before the economy begins to move the same way. Thus, an economist has statistical evidence to forecast future trends.You want to construct a leading indicator for Erie County in upstate New York. The index is to be based on 2000 data. Because of the time and work involved, you decide to use only four time series. As an experiment, you select these four series: unemployment in the county, a composite index of county stock prices, the County Price Index, and retail sales. Here are the figures for 2000 and 2018. The weights you assign are unemployment rate 20%, stock prices 40%, County Price Index 25%, and retail sales 15%. (Round your answers to 1 decimal place.) a. Using…arrow_forward
- The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 14.7% (i.e. an average gain of 14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn't change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. A) What percentage of years does this portfolio lose money, i.e. have a return less than 0%? B) What is the cutoff for the highest 15% of annual returns with this portfolio?arrow_forwardWould you include ros in a final model explaining CEO compensation in terms of firm performance?arrow_forwardIndividuals filing federal income tax returns prior to March 31 received an average refund of $1056. Consider the population of “last-minute” filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15). A researcher suggest that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. Develop appropriate hypotheses such that rejection of will support the researcher’s contention. For a sample of 400 individuals who file a tax return between April 10 and April 15, the sample mean refund was $910. Based on prior experience a population standard deviation of o=1600 may be assumed. What is the p-value? At a=.05 , What is your conclusion?arrow_forward
- Help me pleasearrow_forwardAutoWrecks, Inc. sells auto insurance. AutoWrecks keeps close tabs on its customers' driving records, updating its rates according to the trends indicated by these records. AutoWrecks' records indicate that, ina "typical" year, roughly 70% of the company's customers do not commit a moving violation, 10% commit exactly one moving violation, 15% commit exactly two moving violations, and 5% commit three or moremoving violations.This past year's driving records for a random sample of 100 AutoWrecks customers are summarized by the first row of numbers in the table below. That row gives this year's observed frequency for each moving violation category for the sample of 100 AutoWrecks customers. The second row of numbers gives thefrequencies expected for a sample of 100 AutoWrecks customers if the moving violations distribution for this year is the same as the distribution for a "typical" year. The bottom row of numbers contains thefollowing value for each of the moving violation categories.…arrow_forwardAn electronics retailer is developing a model for insur-ance policies on new cell phone purchases. It estimates that 60% of customers never make a claim, 25% of cus-tomers require a small repair costing an average of $50, and 15% of customers request a full refund costing $200.What is the long-term average cost the retailer shouldexpect to pay to its customers per claim?arrow_forward
- To design a benefit plan for your employees, you are estimating the number of people that will attain the age of retirement (65-years old). You are given the following cohorts: The employees of a group of 1,900 new employees (of age 22); a group of 950 workers of 35 years old; the people from a 45-year old labor force of size 110. The figure displays an excerpt of the appropriate life table for all three subgroups. Estimate the number of people that will attain the age of retirement with a confidence of 99%.arrow_forward10 There is some evidence that, in the years 1981 – 85, a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw, "Does it pay to change your company's name? A stock market perspective," Marketing Science v.6, pp. 320 - 35, 1987.) Suppose that, to test the profitability of name changes in the more recent market (the past five years), we analyze the stock prices of a large sample of corporations shortly after they changed names, and we find that the mean relative increase in stock price was about 0.79%, with a standard deviation of 0.16%. Suppose that this mean and standard deviation apply to the population of all companies that changed names during the past five years. Complete the following statements about the distribution of relative increases in stock price for all companies that changed names during the past five years. (a) According to Chebyshev's theorem, at…arrow_forwardFind out the next month after april income by using the forecasting method of the moving average methodarrow_forward
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