Statistics for Decision- Making in Business - Maricopa Community ...
Statistics for Decision- Making in Business - Maricopa Community ...
Statistics for Decision- Making in Business - Maricopa Community ...
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Upper limit:<br />
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Similarly, there is a 95% chance that the population mean age is between 22.6 and 28.5.<br />
Compare this to our empirical result above of 22.8 to 28.2. We are, aga<strong>in</strong>, very close.<br />
Homework Problems –6.2<br />
1. Describe, <strong>in</strong> your own words, what a bootstrap distribution is and why we would want to<br />
use one. Be sure to mention the logical process beh<strong>in</strong>d build<strong>in</strong>g one, as well as the<br />
assumptions we are mak<strong>in</strong>g when we do so.<br />
2. What is a confidence <strong>in</strong>terval Expla<strong>in</strong> <strong>in</strong> your own words.<br />
3. The follow<strong>in</strong>g is a random sample of 10 labor costs associated with farm<strong>in</strong>g <strong>for</strong> civilian<br />
consumers (<strong>in</strong> billions of dollars) s<strong>in</strong>ce 1970.<br />
Labor Costs (bill. $)<br />
229.9 303.7<br />
137.9 58.3<br />
81.5 196.6<br />
36.6 168.4<br />
122.9 347.4<br />
(SOURCE: Data randomly sampled from U.S. Statistical Abstract, Table 847)<br />
a. Does the Central Limit Theorem apply <strong>for</strong> this data Why or why not<br />
b. Us<strong>in</strong>g a bootstrap distribution, calculate a 95% confidence <strong>in</strong>terval <strong>for</strong> , the true<br />
population average labor cost.<br />
c. In a complete sentence, <strong>in</strong>terpret the real-world mean<strong>in</strong>g of this value.<br />
d. Us<strong>in</strong>g the bootstrap distribution and percentiles, how likely is it that a sample of<br />
labor costs has a mean greater than $190,000,000,000<br />
4. In Arizona, primarily the Phoenix Metropolitan area, the issue of red-light cameras used<br />
to catch red-light runners and speeders was a prom<strong>in</strong>ent one <strong>for</strong> much of the early 2000‟s.<br />
Many studies were carried out over this period of debate to determ<strong>in</strong>e whether or not they<br />
were effective, and whether or not they used taxpayer money appropriately. Suppose the<br />
<strong>Statistics</strong> <strong>for</strong> <strong>Decision</strong>-<strong>Mak<strong>in</strong>g</strong> <strong>in</strong> Bus<strong>in</strong>ess © Milos Podmanik Page 200