Business Statistics: A First Course (7th Edition)
7th Edition
ISBN: 9780321979018
Author: David M. Levine, Kathryn A. Szabat, David F. Stephan
Publisher: PEARSON
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Chapter 2, Problem 2.83CYU
To determine
To explain: The difference between a time-series plot a
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the costello Music company has been in business for five years. during that time, salesof pianos increased from 12 units in the first year to 76 units in the most recent year. Fredcostello, the firm’s owner, wants to develop a forecast of piano sales for the coming year.the historical data follow.Year 1 2 3 4 5Sales 12 28 34 50 76a. construct a time series plot. What type of pattern exists in the data?b. develop the linear trend equation for the time series. What is the average increase insales that the firm has been realizing per year?c. Forecast sales for years 6 and 7.
Chapter 2 Solutions
Business Statistics: A First Course (7th Edition)
Ch. 2 - Prob. 2.1LBCh. 2 - The following data represent the responses to two...Ch. 2 - Prob. 2.3ACCh. 2 - Prob. 2.4ACCh. 2 - Prob. 2.5ACCh. 2 - Prob. 2.6ACCh. 2 - Prob. 2.7ACCh. 2 - A survey of 1,085 adults asked Do you enjoy...Ch. 2 - Prob. 2.9ACCh. 2 - Prob. 2.10AC
Ch. 2 - Prob. 2.11LBCh. 2 - Prob. 2.12LBCh. 2 - Prob. 2.13LBCh. 2 - Prob. 2.14LBCh. 2 - The file NBACost2013 contains the total cost ($)...Ch. 2 - The file UTILITY contains the following data about...Ch. 2 - Prob. 2.17ACCh. 2 - One operation of a mill to cut pieces of steel...Ch. 2 - A manufacturing company produces steel housings...Ch. 2 - Prob. 2.21ACCh. 2 - Prob. 2.22ACCh. 2 - Prob. 2.23ACCh. 2 - An online survey of CFA Institute members was...Ch. 2 - Prob. 2.25ACCh. 2 - Prob. 2.26ACCh. 2 - Prob. 2.27ACCh. 2 - The following table indicates the percentage of...Ch. 2 - Prob. 2.29ACCh. 2 - Prob. 2.30ACCh. 2 - A study of Kickstarter projects showed that 54.2%...Ch. 2 - Prob. 2.32ACCh. 2 - Prob. 2.33LBCh. 2 - Prob. 2.34LBCh. 2 - Prob. 2.35ACCh. 2 - Prob. 2.37ACCh. 2 - The file UTILITY contains the following data about...Ch. 2 - Prob. 2.39ACCh. 2 - Prob. 2.40ACCh. 2 - Prob. 2.41ACCh. 2 - Prob. 2.42ACCh. 2 - Prob. 2.43ACCh. 2 - Prob. 2.45ACCh. 2 - Prob. 2.46ACCh. 2 - The data stored in DRINK represents the amount of...Ch. 2 - Prob. 2.48LBCh. 2 - Prob. 2.49LBCh. 2 - Prob. 2.50ACCh. 2 - Data were collected on the typical cost of dining...Ch. 2 - College football is big business, with coaches pay...Ch. 2 - Prob. 2.54ACCh. 2 - Prob. 2.56ACCh. 2 - Prob. 2.57ACCh. 2 - Prob. 2.58ACCh. 2 - Prob. 2.59ACCh. 2 - Prob. 2.60ACCh. 2 - Prob. 2.61ACCh. 2 - Prob. 2.66ACCh. 2 - Prob. 2.67ACCh. 2 - Prob. 2.68ACCh. 2 - Prob. 2.69ACCh. 2 - Prob. 2.71ACCh. 2 - (Student Project) The Data and Story Library...Ch. 2 - Prob. 2.73ACCh. 2 - Prob. 2.75ACCh. 2 - Figure 2.1 shows a bar chart and a pie chart for...Ch. 2 - Prob. 2.78ACCh. 2 - Prob. 2.79CYUCh. 2 - Prob. 2.80CYUCh. 2 - Prob. 2.81CYUCh. 2 - Compare and contrast the bar chart for categorical...Ch. 2 - Prob. 2.83CYUCh. 2 - Prob. 2.84CYUCh. 2 - What are the three different ways to break down...Ch. 2 - How can a multidimensional table differ from a...Ch. 2 - Prob. 2.87CYUCh. 2 - Prob. 2.88CRPCh. 2 - The owner of a restaurant that serves...Ch. 2 - Suppose that the owner of the restaurant in...Ch. 2 - Prob. 2.94CRPCh. 2 - One of the major measures of the quality of...Ch. 2 - Prob. 2.98CRPCh. 2 - The file CEO-Compensation includes the total...Ch. 2 - Prob. 2.100CRPCh. 2 - What was the average price of a room at two-star,...Ch. 2 - Prob. 2.102CRPCh. 2 - Prob. 2.103CRPCh. 2 - The following data (stored in Drink) represent...Ch. 2 - Prob. 2.106CRPCh. 2 - Prob. 2.109RWE
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- Use this data for the exercises that follow: In 2013, there were roughly 317 million citizens in the United States, and about 40 million were elderly (aged 65 and over).[34] 60. It is predicted that by 2030, one in five U.S. citizens will be elderly. How much greater will the chances of meeting an elderly person be at that time? What policy changes do you foresee if these statistics hold true?arrow_forwardThe Seneca Children’s Fund (SCC) is a local charity that runs a summer camp for disadvantagedchildren. The fund’s board of directors has been working very hard over recentyears to decrease the amount of overhead expenses, a major factor in how charities arerated by independent agencies. The following data show the percentage of the money SCChas raised that was spent on administrative and fund-raising expenses over the last sevenyears. a. Construct a time series plot. What type of pattern exists in the data?b. Use simple linear regression analysis to find the parameters for the line that minimizesMSE for this time series.c. Forecast the percentage of administrative expenses for year 8.d. If SCC can maintain its current trend in reducing administrative expenses, how longwill it take SCC to achieve a level of 5 percent or less?arrow_forwardHow do I construct a time series plot and determine type of pattern in data?arrow_forward
- Time series data usually shows a pattern, which is caused by a systematic and unsystematic pattern. What are the causes of systematic patterns in time series data?arrow_forwardExplain Causal Effects and Time Series Data?arrow_forwardIn retail, a store manager uses time series models to understand shopping trends. Review the scatter plot of the store’s sales from 2010 through 2021 to answer the questions. See attached as image. Here is the data for Fiscal Year and Sales: Fiscal Year Sales 2010 $260,123.00 2011 $256,853.00 2012 $274,366.00 2013 $290,525.00 2014 $322,318.00 2015 $380,921.00 2016 $541,925.00 2017 $909,050.00 2018 $1,817,521.00 2019 $3,206,564.00 2020 $4,921,005.00 2021 $5,686,338.00 Time series decomposition seeks to separate the time series (Y) into 4 components: trend (T), cycle (C), seasonal (S), and irregular (I). What is the difference between these components? The model can be additive or multiplicative. When do you use each? Review the scatter plot of the exponential trend of the time series data. Do you observe a trend? If so, what type of trend do you observe? What predictions might you make about the store’s annual sales over the next few years?arrow_forward
- Consider the following time series. Quarter Year 1 Year 2 Year 3 1 70 67 61 2 50 42 52 3 59 61 54 4 79 82 73 (a) Construct a time series plot. What type of pattern exists in the data? Is there an indication of a seasonal pattern? The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data.The time series plot shows a horizontal pattern with no seasonal pattern present. The time series plot shows a trend pattern, but there is also a seasonal pattern in the data.The time series plot shows a trend pattern with no seasonal pattern present. (b) Use a multiple linear regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. x1 = 1 if quarter 1, 0 otherwise; x2 = 1 if quarter 2, 0 otherwise; x3 = 1 if quarter 3, 0 otherwise. ŷ = (c) Compute the quarterly forecasts for the next year. quarter 1 forecast quarter 2 forecast quarter 3 forecast quarter 4 forecastarrow_forwardA financial analyst is examining the relationship between stock prices and earnings per share. She chooses fifteen publicly traded companies at random and records for each the company's current stock price and the company's earnings per share reported for the past12 months. Her data are given below, with x denoting the earnings per share from the previous year and y denoting the current stock price (both in dollars). A scatter plot of her data is shown in Figure 1. Also given is the product of the earnings per share and the current stock price for each of the fifteen stocks. (These products, written in the column labelled " xy Earnings per share, x (in dollars) Current stock price, y (in dollars) xy 49.65 1.53 75.9645 27.34 1.09 29.8006 36.07 1.47 53.0229 21.11 0.70 14.777 58.19 2.32 135.0008 58.32 2.86 166.7952 43.48 1.08 46.9584 18.20 0.85 15.47 41.85 1.68 70.308 32.39 1.68 54.4152 30.67 1.34 41.0978 42.03 1.54 64.7262 15.56 0.54 8.4024…arrow_forwardA bank wanted to find out whether the number of loan applications received are influenced by the current loan interest rate. The manager selected 11 monthly periods for which different interest rates applied and recorded the number of loan applications received. (b) Show the data graphically in a scatter plot. What relationship is observed? SHOW SOLUTION PLEASE!arrow_forward
- The time series pattern that exists when the data fluctuate around a constant mean is the ______________. A. horizontal pattern. B. seasonal pattern. C. cyclical pattern. D. trend pattern.arrow_forwardA statistical program is recommended. The quarterly sales data (number of copies sold) for a college textbook over the past three years follow. Quarter Year 1 Year 2 Year 3 1 1,690 1,800 1,850 2 940 900 1,100 3 2,625 2,900 2,930 4 2,500 2,360 2,615 (a) Construct a time series plot. What type of pattern exists in the data? There appears be an upward linear trend but no seasonal pattern in the data. There appears be a downward linear trend but no seasonal pattern in the data. There appears to be a seasonal pattern in the data and perhaps a moderate downward linear trend. There appears to be a seasonal pattern in the data and perhaps a moderate upward linear trend. (b) Use a regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. (Round your numerical values to the nearest integer.) Qrt1 = 1 if quarter 1, 0 otherwise; Qrt2 = 1 if quarter 2, 0 otherwise; Qrt3 = 1 if quarter 3, 0 otherwise t = { } (c) Using…arrow_forwardConsider the following time series data. Quarter Year 1 1 De- 2 3 4 3 1 4 6 Year 2 quarter 3 forecast quarter 4 forecast 5 2 6 8 Year 3 6 5 7 (a) Construct a time series plot. What type of pattern exists in the data? O The time series plot shows a horizontal pattern and no seasonal pattern in the data. The time series plot shows a linear trend and no seasonal pattern in the data. O The time series plot shows a linear trend and a seasonal pattern in the data. O The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data. 9 (b) Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. (Round your numerical values to three decimal places.) x₁ = 1 If quarter 1, 0 otherwise; x₂ = 1 If quarter 2, 0 otherwise; x₂ = 1 If quarter 3, 0 otherwise (c) Compute the quarterly forecasts for the next year based on the model you developed in part (b). (Round your answers to two decimal…arrow_forward
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