Chapter 2

5. a.
Relative Percent
Name Frequency Frequency Frequency
Brown 7 0.14 14%
Johnson 10 0.20 20%
Jones 7 0.14 14%
Miller 6 0.12 12%
Smith 12 0.24 24%
Williams 8 0.16 16%
Total: 50 1 100%

b.
Common U.S. Last Names
14
12
10
Frequency

8
6
4
2
0
Brown Johnson Jones Miller Smith Williams
Name

c.
Common U.S. Last Names

Williams Brown
16% 14%

Johnson
20%

Smith
24%
Jones
Miller 14%
12%
d. The three most common last names are Smith (24%), Johnson (20%), Williams (16%5)
10. a.

Rating Frequency
Excellent 187
Very Good 252
Average 107
Poor 62
Terrible 41
Total 649

b.
Percent
Rating Frequency
Excellent 29
Very Good 39
Average 16
Poor 10
Terrible 6
Total 100

c.
45
40
35
Percent Frequency

30
25
20
15
10
5
0
Excellent Very Good Average Poor Terrible
Rating

d. 29% + 39% = 68% of the guests at the Sheraton Anaheim Hotel rated the hotel as Excellent or
Very Good. But, 10% + 6% = 16% of the guests rated the hotel as poor or terrible.
 e. The percent frequency distribution for Disney’s Grand Californian follows:

Percent
Rating Frequency
Excellent 48
Very Good 31
Average 12
Poor 6
Terrible 3
Total 100

48% + 31% = 79% of the guests at the Sheraton Anaheim Hotel rated the hotel as Excellent or
Very Good. And, 6% + 3% = 9% of the guests rated the hotel as poor or terrible.

Compared to ratings of other hotels in the same region, both of these hotels received very
favorable ratings. But, in comparing the two hotels, guests at Disney’s Grand Californian
provided somewhat better ratings than guests at the Sheraton Anaheim Hotel.

45. a.

16

14

12

10
Frequency

0
AZ CA FL GA LA MN MN TX
State

b. Florida has had the most Super Bowl with 15, or 15/43(100) = 35%. Florida and California
have been the states with the most Super Bowls. A total of 15 + 11 = 26, or 26/43(100) = 60%.
Only 3 Super Bowls, or 3/43(100) = 7%, have been played in the cold weather states of
Michigan and Minnesota.
 c.
133333444
0 4
0 57779
1 00012234
567777899
1 9
2 123
2 577
3 2
3 56
4
4 5

d. The most frequent winning points have been 0 to 4 points and 15 to 19 points. Both occurred in 10
Super Bowls. There were 10 close games with a margin of victory less than 5 points,
10/43(100) = 23% of the Super Bowls. There have also be 10 games, 23%, with a margin of
victory more than 20 points.

e. The closest games was the 25th Super Bowl with a 1 point margin. It was played in Florida.
The largest margin of victory occurred one year earlier in the 24 th Super Bowl. It had a 45
point margin and was played in Louisiana. More detailed information not available from the
text information.

25th Super Bowl: 1991 New York Giants 20 Buffalo Bills 19, Tampa Stadium, Tampa, FL
24th Super Bowl: 1990 San Francisco 49ers 55 Denver Broncos 10, Superdome, New
Orleans, LA

Note: The data set SuperBowl contains a list of the teams and the final scores of the 43 Super
Bowls. This data set can be used in Chapter 2 and Chapter 3 to provide interesting data
summaries about the points scored by the winning team and the points scored by the losing team
in the Super Bowl. For example, using the median scores, the median Super Bowl score was
28 to 13.
Chapter 3

4.
Period Rate of Return (%)
1 -6.0
2 -8.0
3 -4.0
4 2.0
5 5.4

The mean growth factor over the five periods is:

xg  n  x1  x2 L  x5   5  0.940  0.920  0.960 1.020 1.054   5 0.8925  0.9775

So the mean growth rate (0.9775 – 1)100% = –2.25%.

14. For March 2011:

p 25
L25  ( n  1)  (50  1)  12.75
100 100

First quartile or th percentile . . . . .

p 50
L50  (n  1)  (50  1)  25.5
100 100

Second quartile or median .

p 75
L75  ( n  1)  (50  1)  38.25
100 100

Third quartile or th percentile . . . . .

For March 2012:

p 25
L25  ( n  1)  (50  1)  12.75
100 100

First quartile or th percentile . . . . .

p 50
L50  ( n  1)  (50  1)  25.5
100 100

econd quartile or median . . . . .

p 75
L75  ( n  1)  (50  1)  38.25
100 100

Third quartile or th percentile . . . . .

 It may be easier to compare these results if we place them in a table.

March 2011 March 2012

First Quartile 6.80 6.20
Median 8.00 7.35
Third Quartile 9.45 8.60

The results show that in March 2012 approximately 25% of the states had an unemployment rate
of 6.2% or less, lower than in March 2011. And, the median of 7.35% and the third quartile of
8.6% in March 2012 are both less than the corresponding values in March 2011, indicating that
unemployment rates across the states are decreasing.

22. 25,000,000=10,000,000  x1  x2 L  x6  , so  x1  x2 L  x6  =2.50, and so

xg  n  x1  x2 L  x6   6 2.50  1.165

So the mean annual growth rate is (1.165 – 1)100 = 16.5%

26. Excel’s Descriptive Statistics tool provides the following values:

Mean 3.72
Standard Error 0.0659
Median 3.605
Mode 3.59
Standard Deviation 0.2948
Sample Variance 0.0869
Kurtosis 9.4208
Skewness 2.9402
Range 1.24
Minimum 3.55
Maximum 4.79
Sum 74.4
Count 20

a. x = 3.72

b. s = .2948

c. The average price for a gallon of unleaded gasoline in San Francisco is much higher than the
national average. This indicates that the cost of living in San Francisco is higher than it would be
for cities that have an average price close to the national average.
53. a. Using Excel’s MEDIAN function the median one year – total return is 13.9%.

b. 20 of the 50 companies or 40% had a one year – total return greater than the S&P average return.

c. Excel’s MIN, QUARTILE.EXC, and MAX functions provided the following results; values for
the IQR and the upper and lower limits are also shown.

Return
Minimum -13.9
First Quartile 3.7
Median 13.9
Third Quartile 30.0
Maximum 117.1
IQR 26.3
1.5(IQR) 39.45
Lower Limit -35.75
Upper Limit 69.45

Thus, the five-number summary is -13.9, 3.7, 13.9, 30.0, 117.1

d. Returns less than -35.75 or greater than 69.45 are considered outliers. Thus, the following
observations are outliers:

Southwest Airlines: Return = 84.5

Delta Air Lines: Return = 116.6
Facebook: Return = 117.1

e. A box plot created using StatTools follows: