Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
6th Edition
ISBN: 9781337115186
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
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Textbook Question
Chapter 7, Problem 42SE
Shadow Stocks. Jack Lawler, a financial analyst, wants to prepare an article on the Shadow Stock portfolio developed by the American Association of Individual Investors (AAII). A list of the 30 companies in the Shadow Stock portfolio is contained in the file ShadowStocks. Jack would like to select a simple random sample of 5 of these companies for an interview concerning management practices.
- a. In the file ShadowStock, companies are listed in column A of an Excel worksheet. In column B we have generated a random number for each of the companies. Use these random numbers to select a simple random sample of 5 of these companies for Jack.
- b. Generate a new set of random numbers and use them to select a new simple random sample. Did you select the same companies?
a.
Expert Solution
To determine
Select a simple random sample of 5 of the given companies using the given random numbers.
Answer to Problem 42SE
The random sample of 5 of the given companies is tabulated below:
| Company |
Random Number |
| Company LA | 0.008012 |
| Company AO | 0.055369 |
| Company OS | 0.059279 |
| Company KI | 0.144127 |
| Company IS | 0.227759 |
Explanation of Solution
Calculation:
The given data represent the Shadow Stock of 30 companies.
Step-by-step procedure to obtain a simple random sample.
- Open the data file Shadow Stocks.
- Sort the random numbers and the corresponding company names into an ascending order.
- Select the companies associated with the first five smallest random numbers.
Thus, the random sample of 5 of the given companies is tabulated below:
| Company |
Random Number |
| Company LA | 0.008012 |
| Company AO | 0.055369 |
| Company OS | 0.059279 |
| Company KI | 0.144127 |
| Company IS | 0.227759 |
b.
Expert Solution
To determine
Generate a new random set of random numbers and select a new simple random sample.
Check whether the companies in the new simple random sample are the same as in Part (a).
Answer to Problem 42SE
The new simple random sample of the given companies is as follows:
| Company |
Random Number |
| Five Star Quality Care | 0.018590 |
| SigmaTron International | 0.085862 |
| CSS Industries | 0.097172 |
| REX American Resources Corp | 0.122113 |
| VOXX International Corp | 0.158389 |
The companies in the new random samples do not match with the companies in the random sample of Part (a).
Explanation of Solution
Calculation:
A new simple random sample is to be obtained.
Software procedure:
Step-by-step software procedure to obtain a random sample using EXCEL is given below:
- Open the EXCEL.
- Enter company names in column A.
- Generate a new set of random numbers using the formula “=RAND()” in column B.
- Sort the random numbers and the corresponding company names into an ascending order.
- Select the companies associated with the first five smallest random numbers.
The output obtained using EXCEL software is as follows:
Therefore, the random sample of 5 of the given companies is as follows:
| Company |
Random Number |
| Five Star Quality Care | 0.018590 |
| SigmaTron International | 0.085862 |
| CSS Industries | 0.097172 |
| REX American Resources Corp | 0.122113 |
| VOXX International Corp | 0.158389 |
Here, it is observed that the companies in the new random sample do not match with the companies in the random sample of Part (a).
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Chapter 7 Solutions
Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
Ch. 7.2 - Consider a finite population with five elements...Ch. 7.2 - Assume a finite population has 10 elements. Number...Ch. 7.2 - The 2012 American League consists of 14 baseball...Ch. 7.2 - The U.S. Golf Association has instituted a ban on...Ch. 7.2 - In this section we used a two-step procedure to...Ch. 7.2 - 10. Indicate which of the following situations...Ch. 7.3 - 11. The following data are from a simple random...Ch. 7.3 - Prob. 8ECh. 7.3 - Prob. 9ECh. 7.3 - 14. Morningstar publishes ratings data on 1208...
Ch. 7.3 - 15. The National Football League (NFL) polls fans...Ch. 7.3 - AARP Survey. In a sample of 426 U.S. adults age 50...Ch. 7.3 - 17. One of the questions in the Pew Internet &...Ch. 7.3 - In this section we showed how a simple random...Ch. 7.5 - 19. A population has a mean of 200 and a standard...Ch. 7.5 - Prob. 16ECh. 7.5 - 21. Suppose a random sample of size 50 is selected...Ch. 7.5 - Refer to the EAI sampling problem. Suppose a...Ch. 7.5 - In the EAI sampling problem (see Figure 7.8), we...Ch. 7.5 - 24. Barron’s reported that the average number of...Ch. 7.5 - The average full-sized front-loading Energy Star...Ch. 7.5 - Federal Income Tax Returns. The Wall Street...Ch. 7.5 - 27. The Economic Policy Institute periodically...Ch. 7.5 - State Rainfalls. The state of California has a...Ch. 7.5 - The mean preparation fee H&R Block charged retail...Ch. 7.5 - 30. To estimate the mean age for a population of...Ch. 7.6 - 31. A sample of size 100 is selected from a...Ch. 7.6 - 32. A population proportion is .40. A sample of...Ch. 7.6 - Prob. 29ECh. 7.6 - 34. The population proportion is .30. What is the...Ch. 7.6 - Prob. 31ECh. 7.6 - 36. The Wall Street Journal reported that the age...Ch. 7.6 - Seventy two percent of American adults have read a...Ch. 7.6 - Unnecessary Medical Care. According to Reader’s...Ch. 7.6 - Thirty-six percent of all Americans drink bottled...Ch. 7.6 - Prob. 36ECh. 7.6 - 41. The Food Marketing Institute shows that 17% of...Ch. 7.8 - Martina Levitt, director of marketing for the...Ch. 7.8 - Consider the Spontanversation sampling problem for...Ch. 7.8 - The Wall Street Journal reported that 37% of all...Ch. 7.8 - The vice president of sales for Blasterman...Ch. 7 - Shadow Stocks. Jack Lawler, a financial analyst,...Ch. 7 - 43. The latest available data showed health...Ch. 7 - 44. Foot Locker uses sales per square foot as a...Ch. 7 - 45. Allegiant Airlines charges a mean base fare of...Ch. 7 - 46. After deducting grants based on need, the...Ch. 7 - Prob. 47SECh. 7 - Prob. 48SECh. 7 - Production Quality Control. A production process...Ch. 7 - Prob. 50SECh. 7 - Prob. 51SECh. 7 - Prob. 52SECh. 7 - Prob. 53SECh. 7 - 54. Lori Jeffrey is a successful sales...Ch. 7 - Managerial Report
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