Statistics for Business & Economics, Revised (MindTap Course List)
12th Edition
ISBN: 9781285846323
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Textbook Question
Chapter 4.4, Problem 35E
According to the Ameriprise Financial Money Across Generations study, 9 out of 10 parents with adult children ages 20 to 35 have helped their adult children with some type of financial assistance
| Buy a Car | Pay Rent | ||
| Yes | No | ||
| Yes | 56 | 52 | |
| No | 14 | 78 | |
- a. Develop a joint
probability table and use it to answer the remaining questions. - b. Using the marginal probabilities for buy a car and pay rent, are parents more likely to assist their adult children with buying a car or paying rent? What is your interpretation of the marginal probabilities?
- c. If parents provided financial assistance to buy a car, what it the probability that the parents assisted with paying rent?
- d. If parents did not provide financial assistance to buy a car, what is the probability the parents assisted with paying rent?
- e. Is financial assistance to buy a car independent of financial assistance to pay rent? Use probabilities to justify your answer.
- f. What is the probability that parents provided financial assistance for their adult children by either helping buy a car or pay rent?
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- A Read aloud Draw
5. According to the Ameriprise Financial Money Across Generations study, 9 out of 10 parents
with adult children ages 20 to 35 have helped their adult children with some type of
financial assistance ranging from college, a car, rent, utilities, credit card debt, and/or down
payments for houses. The following table with sample data consistent with the study
2|Page
shows the number of times parents have given their adult children financial assistance to
buy a car and to pay rent.
Pay Rent
Yes
No
Buy a car
Yes
583
529
No
169
788
a. Develop a joint probability table and use it to answer the remaining questions.
b. If parents did not provide financial assistance to buy a car, what it the probability
that the parents assisted with paying rent?
C. Is financial assistance to buy a car independent of financial assistance to pay rent?
Use probabilities to justify your answer.
3.
A Bloomberg Businessweek North American subscriber study collected data from a sample of 2861
sub-scribers. Fifty- nine percent of the respondents indicated an annual income of $ 75,000 or more,
and 50% reported having an American Express credit card.
a. What is the population of interest in this study?
b. Is annual income a categorical or quantitative variable?
c. Is ownership of an American Express card a categorical or quantitative variable?
d. Does this study involve cross- sectional or time series data?
e. Describe any statistical inferences Bloomberg Businessweek might make on the basis
of the survey.
4.
Table 1.8 shows a data set containing information for 25 of the shadow stocks tracked by the American
Association of Individual Investors. Shadow stocks are common stocks of smaller companies that are
not closely followed by Wall Street analysts. The data set is also on the website that accompanies the
text in the file named Shadow02.
a. How many variables are in the data set?…
5. According to the Ameriprise Financial Money Across Generations study, 9 out of 10 parents
with adult children ages 20 to 35 have helped their adult children with some type of
financial assistance ranging from college, a car, rent, utilities, credit card debt, and/or down
payments for houses. The following table with sample data consistent with the study
21Page
shows the number of times parents have given their adult children financial assistance to
buy a car and to pay rent.
Pay Rent
Yes
No
Buy a car
Yes
583
529
No
169
788
a. Develop a joint probability table and use it to answer the remaining questions.
If parents did not provide financial assistance to buy a car. what it the probability
that the parents assisted with paying rent?
cIs financial assistance to buy a car independent of financial assistance to pay rent?
Use probabilities to justify your answer.
b.
Chapter 4 Solutions
Statistics for Business & Economics, Revised (MindTap Course List)
Ch. 4.1 - An experiment has three steps with three outcomes...Ch. 4.1 - How many ways can three items be selected from a...Ch. 4.1 - How many permutations of three items can be...Ch. 4.1 - Consider the experiment of tossing a coin three...Ch. 4.1 - Suppose an experiment has five equally likely...Ch. 4.1 - An experiment with three outcomes has been...Ch. 4.1 - A decision maker subjectively assigned the...Ch. 4.1 - In the city of Milford, applications for zoning...Ch. 4.1 - Simple random sampling uses a sample of size n...Ch. 4.1 - Many students accumulate debt by the time they...
Ch. 4.1 - The National Occupant Protection Use Survey...Ch. 4.1 - The Powerball lottery is played twice each week in...Ch. 4.1 - A company that manufactures toothpaste is studying...Ch. 4.2 - An experiment has four equally likely outcomes:...Ch. 4.2 - Consider the experiment of selecting a playing...Ch. 4.2 - Consider the experiment of rolling a pair of dice....Ch. 4.2 - Refer to the KPL sample points and sample point...Ch. 4.2 - To investigate how often families eat at home,...Ch. 4.2 - Do you think the government protects investors...Ch. 4.2 - Fortune magazine publishes an annual list of the...Ch. 4.2 - Data on U.S. work-related fatalities by cause...Ch. 4.3 - Suppose that we have a sample space with five...Ch. 4.3 - Suppose that we have a sample space S = {E1, E2,...Ch. 4.3 - Clarkson University surveyed alumni to learn more...Ch. 4.3 - The U.S. Census Bureau provides data on the number...Ch. 4.3 - Information about mutual funds provided by...Ch. 4.3 - What NCAA college basketball conferences have the...Ch. 4.3 - A survey of magazine subscribers showed that 45.8%...Ch. 4.3 - High school seniors with strong academic records...Ch. 4.4 - Suppose that we have two events, A and B, with...Ch. 4.4 - Assume that we have two events, A and B, that are...Ch. 4.4 - The automobile industry sold 657,000 vehicles in...Ch. 4.4 - Students taking the Graduate Management Admissions...Ch. 4.4 - The U.S. Department of Transportation reported...Ch. 4.4 - According to the Ameriprise Financial Money Across...Ch. 4.4 - Jamal Crawford of the National Basketball...Ch. 4.4 - Visa Card USA studied how frequently young...Ch. 4.4 - Students in grades 3 through 8 in New York State...Ch. 4.5 - The prior probabilities for events A1 and A2 are...Ch. 4.5 - The prior probabilities for events A1, A2, and A3...Ch. 4.5 - A consulting firm submitted a bid for a large...Ch. 4.5 - A local bank reviewed its credit card policy with...Ch. 4.5 - Two Wharton professors analyzed 1,613,234 putts by...Ch. 4.5 - According to the Open Doors 2011 Report, 9.5% of...Ch. 4.5 - In an article about investment alternatives, Money...Ch. 4 - The Wall Street Journal/Harris Personal Finance...Ch. 4 - A financial manager made two new investmentsone in...Ch. 4 - Forty-three percent of Americans use social media...Ch. 4 - A study of 31,000 hospital admissions in New York...Ch. 4 - A telephone survey to determine viewer response to...Ch. 4 - The following crosstabulation shows household...Ch. 4 - An MBA new-matriculants survey provided the...Ch. 4 - Refer again to the data from the MBA...Ch. 4 - In February 2012, the Pew Internet American Life...Ch. 4 - A large consumer goods company ran a television...Ch. 4 - Cooper Realty is a small real estate company...Ch. 4 - A company studied the number of lost-time...Ch. 4 - A survey showed that 8% of Internet users age 18...Ch. 4 - An oil company purchased an option on land in...Ch. 4 - The five most common words appearing in spam...Ch. 4 - Hamilton County Judges Hamilton County judges try...
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