Basic Business Statistics, Student Value Edition
14th Edition
ISBN: 9780134685113
Author: Mark L. Berenson, David M. Levine, David F. Stephan, Kathryn Szabat
Publisher: PEARSON
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Chapter 8, Problem 64PS
Claims fraud (illegitimate claims) and buildup (exaggerated loss amounts) continue to be issue of concern among automobile insurance companies. Fraud is defined as specific material misrepresentation of the facts of a loss; buildup is defined as the inflation of an otherwise legitimate claim. A recent study examined auto injury claims closed with payment under private passenger coverages. Detailed data on injury, medical treatment, claimed losses, and total payments, as well as claim-handing techniques, were collected. In addition , auditors were asked to review the claim files to indicate whether specific elements of fraud of buildup appeared in the claim and, in the case of buildup to specify the amount of excess payment. The file InsuranceClaims contains data for 90 randomly selected auto injury claims. The following variables are included: CLAIM–Claim ID; BUILDUP–1 if buildup indicated, 0 if not; and EXCESSPAYMENT –excess payment amount, in dollars.
a. Construct a
b. Construct a
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The Bank of Canada is interested in studying the relationship between mortgage rates and medianhome prices. The data is provided belowYear interest rate (%) Median home price1988 10.30 $183,8001989 10.30 $183,2001990 10.10 $174,9001991 9.30 $173,5001992 8.40 $172,9001993 7.30 $173,2001994 8.40 $173,2001995 7.90 $169,7001996 7.60 $174,5001997 7.60 $177,9001998 6.90 $188,1001999 7.40 $203,2002000 8.10 $230,2002001 7.00 $258,2002002 6.50 $309,8002003 5.80 $329,8002004 5.80 $431,0002005 5.80 $515,0002006 6.40 $537,0002007 6.30 $496,0002008 6.00 $352,0002009 5.00 $232,0002010 4.70 $291,7002011 4.40 $262,9002012 3.60 $299,2002013 4.00 $321,2002014 4.10 $373,5002015 3.80 $358,1002016 3.60 $382,5002017 4.00 $402,900a) Estimate a simple linear regression model and find the value of the parameters for theestimation of mortgage rates and the median home price. All JASP input files and outputtables should be provided. Interpret the intercept and the slope coefficientsb) State the correlation…
2. Which of the following is not considered a personal risk?
a. Insufficient income during retirement
b. Unemployment
c. Financial risk
d. Premature death
Chapter 8 Solutions
Basic Business Statistics, Student Value Edition
Ch. 8 - If X=85, =8,andn=64, construct a 95 confidence...Ch. 8 - If X=125,=24,andn=36, construct a 99 confidence...Ch. 8 - Why is it not possible in Example 8.1 on page 280...Ch. 8 - Is it true in Example 8.1 on page 280 that you do...Ch. 8 - A market researcher selects a simple random sample...Ch. 8 - Suppose that you are going to collect a set of...Ch. 8 - Consider the confidence interval estimate...Ch. 8 - You are working as an assistant to the dean of...Ch. 8 - A bottled water distributor wants to estimate the...Ch. 8 - The operations manager at a light emitting diode...
Ch. 8 - If X=75,S=24,andn=36, and assuming that the...Ch. 8 - Determine the critical value of t in each of the...Ch. 8 - Assuming that the populations is normally...Ch. 8 - Assuming that the population is normally...Ch. 8 - A marketing researcher wants to estimate the mean...Ch. 8 - A survey of nonprofit organizations showed that...Ch. 8 - The U.S. Department of Transportation requires...Ch. 8 - The file FastFood contains the amount that a...Ch. 8 - The file AirportRating contains the rating of...Ch. 8 - The annual NFL Super Bowl is the most widely...Ch. 8 - Is there a difference in the yields of different...Ch. 8 - One of the major measures of the quality of...Ch. 8 - A manufacturing company produces electric...Ch. 8 - The file MobileCommerce contains mobile commerce...Ch. 8 - One operation of a mill is cut pieces of steel...Ch. 8 - Ifn=200andX=50, Construct a 95 confidence interval...Ch. 8 - ifn=400andX=25, Construct a 99 confidence interval...Ch. 8 - A cellphone provider has the business objective of...Ch. 8 - In a survey of 1,003 adults concerning complaints...Ch. 8 - What do you value most when shopping in a retail...Ch. 8 - In a survey of 823 human resource professionals...Ch. 8 - A Pew Research Center survey of 4,787 adults found...Ch. 8 - What business, economic, policy and environmental...Ch. 8 - If you want to be 95 confident of estimating the...Ch. 8 - If you want to be 99 confident of estimating of...Ch. 8 - If you want to be 99 confident of estimating the...Ch. 8 - If you want to be 95 confident of estimating the...Ch. 8 - A survey is planned to determine the mean annual...Ch. 8 - If the manager of a bottled water distributor...Ch. 8 - If a light bulb manufacturing company wants to...Ch. 8 - If the inspection division of a county weights and...Ch. 8 - An advertising media analyst wants to estimate the...Ch. 8 - An advertising media analyst wants to estimate the...Ch. 8 - A growing niche in the restaurant business is...Ch. 8 - What does brand loyalty mean to consumers?...Ch. 8 - A Federal Reserve Bank of Atlanta report looks at...Ch. 8 - In a study of 443 nonprofits nationwide, 130...Ch. 8 - Cybersecurity is a critical business issue that...Ch. 8 - Personal data is the new currency of the digital...Ch. 8 - Why can you never really have 100 confidence of...Ch. 8 - When should you use the t distribution to develop...Ch. 8 - Why is it true that for a given sample size, n an...Ch. 8 - Why is the sample size needed to determine the...Ch. 8 - GlobalWablndex study noted the percentage of...Ch. 8 - How do smartphone owners use their smartphones...Ch. 8 - A market researcher for a consumer electronics...Ch. 8 - An information technology (IT) provider of cloud...Ch. 8 - The human resource (HR) director of a large...Ch. 8 - A national association devoted to HR and workplace...Ch. 8 - The financial impact of IT system downtime is a...Ch. 8 - The branch manager of an outlet (Store 1) of a...Ch. 8 - Scarlett and Heather, the owners of an upscale...Ch. 8 - The manufacturer of Ice Melt claims that its...Ch. 8 - Claims fraud (illegitimate claims) and buildup...Ch. 8 - A quality characteristic of interest for a...Ch. 8 - Call centers today play an important role in...Ch. 8 - The manufacturer of Boston and Vermont asphalt...Ch. 8 - The manufacturer of Boston and Vermont asphalt...Ch. 8 - Referring to the results in Problem 8.66...
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- ….……………….……………………... ..………..….. In an effort to reduce its inventory, a warehouse runs a sale on its least popular Blu-ray discs. The sales rate (discs sold per day) on day t of the sale is predicted to be 70/t (for t≥ 1), where t = 1 corresponds to the beginning of the sale, at which time none of the inventory of 200 discs had been sold. (a) Find a formula for the total number of discs sold up to day t. C(t) = (b) Will the store have sold its inventory of 200 discs by day t = 70? Yes O Noarrow_forwardThe Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Median home price $183,800 $183,200 $174,900 $173,500 $172,900 $173,200 $173,200 $169,700 $174,500 $177,900 Year interest rate (%) 10.30 1988 1989 10.30 1990 10.10 1991 9.30 1992 8.40 1993 7.30 1994 8.40 1995 7.90 1996 7.60 1997 7.60 $188,100 $203,200 $230,200 $258,200 1998 6.90 1999 7.40 2000 8.10 2001 7.00 $309,800 $329,800 $431.000 2002 6.50 2003 5.80 2004 5.80 $515,000 $537,000 2005 5.80 2006 6.40 2007 6.30 $496,000 $352,000 $232,000 $291.700 $262,900 2008 6.00 2009 5.00 2010 4.70 2011 4.40 $299,200 $321,200 $373,500 $358,100 $382,500 $402,900 2012 3.60 2013 4.00 2014 4.10 2015 3.80 2016 3.60 2017 4.00 a) Estimate a simple linear regression model and find the value of the parameters for the estimation of morteaze rates and the median home price. b) Interpret the intercept and the slope coefficient: c) State the comelation coefficient and the…arrow_forwardThe Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Median home price $183,800 $183,200 $174,900 $173,500 $172,900 $173,200 $173,200 $169,700 $174,500 $177,900 Year interest rate (%) 10.30 1988 1989 10.30 1990 10.10 1991 9.30 1992 8.40 1993 7.30 1994 8.40 1995 7.90 1996 7.60 1997 7.60 $188,100 $203,200 $230,200 $258,200 1998 6.90 1999 7.40 2000 8.10 2001 7.00 $309,800 $329,800 $431.000 2002 6.50 2003 5.80 2004 5.80 $515,000 $537,000 2005 5.80 2006 6.40 2007 6.30 $496,000 $352,000 $232,000 $291.700 $262,900 2008 6.00 2009 5.00 2010 4.70 2011 4.40 $299,200 $321,200 $373,500 $358,100 $382,500 $402,900 2012 3.60 2013 4.00 2014 4.10 2015 3.80 2016 3.60 2017 4.00 d) Confirm the intercept, slope and correlation coefficient by computing them without SPSS e) At the 5% significance level, determine if the model is useful. In responding, construct and test any appropriate hypothesis.arrow_forward
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- The table below shows a recent state income tax schedule for individuals filing a return. SINGLE, HEAD OF HOUSEHOLD,OR MARRIED FILING SEPARATE SINGLE, HEAD OF HOUSEHOLD,OR MARRIED FILING SEPARATE If taxable income is Over But Not Over Tax Due Is $0 $15,000 $30,000 $15,000 $30,000 2.5% of taxable income $375 plus 6.3% of excess over $15,000 $1320.00 plus 6.65% of excess over $30,000. a. Write a piecewise definition for the tax due T(x) on an income of x dollars. if 0sxs 15,000 T(x) = if 15,000arrow_forwardThe Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Year interest rate (%) Median home price S183,800 $183,200 1988 10.30 1989 10.30 1990 10.10 S174,900 1991 9.30 S173,500 1992 8.40 $172,900 1993 7.30 $173,200 1994 8.40 $173,200 S169,700 S174,500 Ineed 1995 7.90 1996 7.60 help with 1997 7.60 $177,900 1998 6.90 $188,100 1999 $203,200 $230,200 7.40 2000 8.10 parts 2001 7.00 $258,200 2002 2003 S309,800 $329,800 6.50 5.80 2004 5.80 $431,000 () $515,000 $537,000 $496,000 2005 5.80 2006 6.40 2007 6.30 2008 6.00 $352,000 2009 5.00 $232,000 2010 $291,700 $262,900 $299,200 4.70 2011 4.40 2012 2013 3.60 4.00 $321,200 $373,500 $358,100 $382,500 $402,900 2014 4.10 2015 2016 3.80 3.60 4.00 2017 a) Estimate a simple linear regression model and find the value of the parameters for the estimation of mortgage rates and the median home price. b) Interpret the intercept and the slope coefficients c) State the correlation…arrow_forwardCanton Supplies, Inc., is a service firm that employs approximately 100 people. Because of the necessity of meeting monthly cash obligations, the chief financial officer wants to develop a forecast of monthly cash requirements. Because of a recent change in equipment and operating policy, only the past seven months of data are considered relevant. The change in operations has had a great impact on cash flow. What forecasting model do you recommend?arrow_forwardThe table below shows a recent state income tax schedule for individuals filing a return. SINGLE, HEAD OF HOUSEHOLD, OR MARRIED FILING SEPARATE SINGLE, HEAD OF HOUSEHOLD, OR MARRIED FILING SEPARATE If taxable income is Over But Not Over Tax Due Is $0 4% of taxable income $15,000 $30,000 $15,000 $600 plus 5.6% of excess over $15,000 $1440.00 plus 6.65% of excess over $30,000. $30,000 a. Write a piecewise definition for the tax due T(x) on an income of x dollars. if 0 ≤x≤ 15,000 T(x)= if 15,000 < x≤ 30,000 if 30,000arrow_forwardThe following data were taken from Miller Company's balance sheet: Dec. 31, Year 2 Dec. 31, Year 1 Total liabilities $150,000 $105,000 Total stockholders' equity 75,000 60,000 a. Compute the ratio of liabilities to stockholders' equity. Round your answers to one decimal place. Liabilities toStockholders' Equity 12/31/Year 2: fill in the blank 1 12/31/Year 1: fill in the blank 2 b. Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?arrow_forward2b) Explain the differences between life insurance and general or non-life insurance.arrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_iosRecommended textbooks for you
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