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Business Statistics Canadian 3rd Edition Sharpe Solutions Manual 1
Business Statistics Canadian 3rd Edition Sharpe Solutions Manual 1
SECTION EXERCISES
SECTION 6.1
1.
a) The scatterplot of Sales against Number of Salespeople Working is shown below.
b) The direction of the association is positive. Sales increases as the Number of Salespeople Working
increases.
c) The form of the relationship is linear.
d) Since the points appear tightly clustered along the line, the strength of the relationship is strong.
e) There is no outlier evident in the scatterplot.
2.
a) The scatterplot of Price against Capacity is show below.
b) The direction of the association is positive. The Price of external disk drives increases as Capacity
increases.
c) Aside from the outlier (0.2 TB for $299), the form of the relationship is linear.
d) The points (excluding the outlier) appear tightly clustered along the line, so the linear relationship
is strong.
e) Yes, one observation stands away from the overall pattern of the scatterplot. This observation is for
an external disk drive with a capacity of 0.20 TB and price of $299.00. This external disk drive
seems to be grossly overpriced or the data was incorrectly recorded.
SECTION 6.2
3.
a) The explanatory (predictor) variable is Years of Experience.
4.
a) The explanatory (predictor) variable is Advertising Expenditure.
b) False. Correlation is not affected by changes in the centre or scale of either variable; consequently,
multiplying every value of x will not change the correlation.
b) False. Correlation is not affected by changes in the centre or scale of either variable; consequently,
standardizing the variables does not change the correlation.
c) True
SECTION 6.4
7.
a)
b) Since the relationship is exponentially increasing, we take logarithms of the average salary, since
that is the variable on the vertical axis.
4.75003
4.84587
4.92944
5.02416
c)
8.
a)
b) The graph shows that years of education (after Grade 10) increase exponentially with salary. We
should therefore take logarithms of the years of education after Grade 10.
0.90309
0.954243
1
c)
SECTION 6.5
9. Correlation docs not necessarily imply causation. The analyst’s argument is that the Number of Salespeople
Working causes Sales to increase. There may very well be a lurking variable. For example, the store may
hire more sales staff when it anticipates an increase in sales—for example, when there is a book signing
event or after a promotional campaign.
10. The association observed between online sales and the number of snow plows on the road does not imply a
causal relationship. This strong association can be explained by a lurking variable, the severity of the
blizzard. The more severe the blizzard, the more plows on the road and the more likely people are to stay at
home and shop online.
CHAPTER EXERCISES
11. Association.
a) The number of text messages sent is the explanatory variable and cost is the response variable.
Cost is predicted from the number of text messages sent. The association is positive, linear, and
moderately strong. The effect of increased text messages will be increased cost. A possible outlier
could be the result of cell phone contracts with fixed costs for texting.
b) Fuel efficiency is the explanatory variable and the sales volume is the response variable. In a time
of high fuel costs, cars with better fuel efficiency should sell more (a positive association), but due
to the higher costs of some of these vehicles, they may not sell during hard economic times.
Therefore, we cannot say with certainty what the association is and we have no information about
the shape or strength of the relationship.
c) At first, it appears that there should be no association between ice cream sales and air conditioner
sales. When the lurking variable of temperature is considered, the association becomes more
apparent. When the temperature is high, ice cream sales tend to increase. Also, when the
temperature is high, air conditioner sales tend to increase. Therefore, there is likely to be an
increase in the sales of air conditioners whenever there is an increase in the sales of ice cream. The
Dostoievski, the son of a Moscow physician, was born in 1821 and died of
consumption in 1881. For his connection with a revolutionary plot he was
condemned to death in 1849, but on the scaffold his sentence was commuted
to hard labor in Siberia. While his writings are not distinguished in form or
style, the author’s intimate knowledge of the life he portrays and his
wonderful power of analysis unite to create an impression of life that is all the
more poignant because it is so scientifically accurate.
The degree of relationship between “The Thief” and Gogol’s “The Cloak”
will be readily perceived.
“Crime and Punishment” is the only one of the few of his books translated
into English that is at all well known to American readers.
THE THIEF
BY FEODOR DOSTOIEVSKI
Translated by Lizzie B. Gorin. Copyright, 1907,
by P. F. Collier & Son.
Count Tolstoi, the son of a Russian nobleman, was born in 1828, so he is to-
day an old man. The greatest book that has come out of Russia is the tragic
but intensely lifelike “Anna Karenina,” published when Tolstoi was forty-
seven years old. Much of his early work is extremely interesting and valuable,
for artistic reasons, but his late years have been devoted almost entirely to
moralising and speculating. A consensus of opinion among students of
Russian literature shows that they consider “The Long Exile” to be the
author’s best short story.
THE LONG EXILE
BY COUNT LEO TOLSTOI
Translated by Nathan Haskell Dole. Copyright, 1888,
by Thomas V. Crowell & Co.
“God sees the truth, but bides his time.”
Once upon a time there lived in the city of Vladímir a young merchant
named Aksénof. He had two shops and a house.
Aksénof himself had a ruddy complexion and curly hair; he was a very
jolly fellow and a good singer. When he was young he used to drink too
much, and when he was tipsy he was turbulent; but after his marriage he
ceased drinking, and only occasionally had a spree.
One time in summer Aksénof was going to Nízhni[1] to the great Fair. As
he was about to bid his family good-by, his wife said to him:
“Iván Dmítrievitch, do not go to-day; I had a dream, and dreamed that
some misfortune befell you.”
Aksénof laughed at her, and said: “You are always afraid that I shall go
on a spree at the Fair.”
His wife said: “I myself know not what I am afraid of, but I had such a
strange dream: you seemed to be coming home from town, and you took
off your hat, and I looked, and your head was all gray.”
Aksénof laughed. “That means good luck. See, I am going now. I will
bring you some rich remembrances.”
And he bade his family farewell and set off.
When he had gone half his journey, he fell in with a merchant of his
acquaintance, and the two stopped together at the same tavern for the