Chapter 3: Descriptive Statistics: Numerical Measures Exercises: Applications

Book Title: Statistics for Business and Economics

Printed By: Josué García Mendoza (josue.garcia49@anahuac.mx)
© 2018 Cengage Learning, Cengage Learning

Exercises: Applications

26. Data collected by the Oil Price Information Service

from more than 90,000 gasoline and convenience
stores throughout the U.S. showed that the average
price for a gallon of unleaded gasoline was $3.28 (MSN Auto website,
February 2, 2014). The following data show the price per gallon ($) for a
sample of 20 gasoline and convenience stores located in San Francisco.

a. Use the sample data to estimate the mean price for a gallon of unleaded
gasoline in San Francisco.

b. Compute the sample standard deviation.

c. Compare the mean price per gallon for the sample data to the national
average price. What conclusions can you draw about the cost living in
San Francisco?

27. The results of a search to find the least expensive round-trip flights to Atlanta
and Salt Lake City from 14 major U.S. cities are shown in the following table.
The departure date was June 20, 2012, and the return date was June 27,
2012.
 Round-Trip Cost ($)

Departure
City Atlanta Salt Lake City

Cincinnati 340.10 570.10

New York 321.60 354.60

Chicago 291.60 465.60

Denver 339.60 219.60

Los Angeles 359.60 311.60

Seattle 384.60 297.60

Detroit 309.60 471.60

Philadelphia 415.60 618.40

Washington, 293.60 513.60

D.C.

Miami 249.60 523.20

San Francisco 539.60 381.60

Las Vegas 455.60 159.60

Phoenix 359.60 267.60

Dallas 333.90 458.60

a. Compute the mean price for a round-trip flight into Atlanta and the mean
price for a round-trip flight into Salt Lake City. Is Atlanta less expensive
to fly into than Salt Lake City? If so, what could explain this difference?
 b. Compute the range, variance, and standard deviation for the two
samples. What does this information tell you about the prices for flights
into these two cities?

28. The Australian Open is the first of the four Grand Slam professional tennis
events held each year. Victoria Azarenka beat Maria Sharapova to win the
2012 Australian Open women’s title (Washington Post, January 27, 2012).
During the tournament Ms. Azarenka’s serve speed reached 178 kilometers
per hour. A list of the 20 Women’s Singles serve speed leaders for the 2012
Australian Open is provided below.

Serve Speed
Player (km/h)

S. Williams 191

S. Lisicki 190

M. Keys 187

L. Hradecka 187

J. Gajdosova 187

J. Hampton 181

B. Mattek-Sands 181

F. Schiavone 179

P. Parmentier 179

N. Petrova 179

G. Arn 179
 Serve Speed
Player (km/h)

V. Azarenka 178

A. Ivanovic 178

P. Kvitova 178

M. Krajicek 178

V. Dushevina 178

S. Stosur 178

S. Cirstea 177

M. Barthel 177

P. Ormaechea 177

a. Compute the mean, variance, and standard deviation for the serve
speeds.

b. A similar sample of the 20 Women’s Singles serve speed leaders for the
2011 Wimbledon tournament showed a sample mean serve speed of
182.5 kilometers per hour. The variance and standard deviation were
33.3 and 5.77, respectively. Discuss any difference between the serve
speeds in the Australian Open and the Wimbledon women’s
tournaments.

29. The Los Angeles Times regularly reports the air quality index for various
areas of Southern California. A sample of air quality index values for Pomona
provided the following data: 28, 42, 58, 48, 45, 55, 60, 49, and 50.

a. Compute the range and interquartile range.

b. Compute the sample variance and sample standard deviation.

 c. A sample of air quality index readings for Anaheim provided a sample
mean of 48.5, a sample variance of 136, and a sample standard
deviation of 11.66. What comparisons can you make between the air
quality in Pomona and that in Anaheim on the basis of these descriptive
statistics?

30. The following data were used to construct the histograms of the number of
days required to fill orders for Dawson Supply, Inc., and J.C. Clark Distributors
(see Figure 3.2).

Dawson Supply Days for Delivery:

Clark Distributors Days for Delivery:

Use the range and standard deviation to support the previous observation that
Dawson Supply provides the more consistent and reliable delivery times.

31. The results of Accounting Principals’ latest Workonomix survey indicate the
average American worker spends $1092 on coffee annually (The
Consumerist, January 20, 2012). To determine if there are any differences in
coffee expenditures by age group, samples of 10 consumers were selected
for three age groups (18–34, 35–44, and 45 and Older). The dollar amount
each consumer in the sample spent last year on coffee is provided below.

18–34 35–44 45 and Older

1355 969 1135

115 434 956

1456 1792 400

2045 1500 1374

1621 1277 1244

 18–34 35–44 45 and Older

994 1056 825

1937 1922 763

1200 1350 1192

1567 1586 1305

1390 1415 1510

a. Compute the mean, variance, and standard deviation for the each of
these three samples.

b. What observations can be made based on these data?

32.
Advertising Age annually compiles a list of the 100 companies

that spend the most on advertising. Consumer-goods company Procter &

Gamble has often topped the list, spending billions of dollars annually
(Advertising Age website, March 12, 2013). Consider the data found in the file
Advertising. It contains annual advertising expenditures for a sample of 20
companies in the automotive sector and 20 companies in the department
store sector.

a. What is the mean advertising spent for each sector?

b. What is the standard deviation for each sector?

c. What is the range of advertising spent for each sector?

d. What is the interquartile range for each sector?

e. Based on this sample and your answers to parts (a), (b), (c) and (d),
comment on any differences in the advertising spending in the
automotive companies versus the department store companies.

33. Scores turned in by an amateur golfer at the Bonita Fairways Golf Course in
Bonita Springs, Florida, during 2011 and 2012 are as follows:

2011 Season:
 2012 Season:

a. Use the mean and standard deviation to evaluate the golfer’s

performance over the two-year period.

b. What is the primary difference in performance between 2011 and 2012?

What improvement, if any, can be seen in the 2012 scores?

34. The following times were recorded by the quarter-mile and mile runners of a
university track team (times are in minutes).

Quarter-Mile Times:

Mile Times:

After viewing this sample of running times, one of the coaches commented
that the quarter-milers turned in the more consistent times. Use the standard
deviation and the coefficient of variation to summarize the variability in the
data. Does the use of the coefficient of variation indicate that the coach’s
statement should be qualified?

Chapter 3: Descriptive Statistics: Numerical Measures Exercises: Applications

Book Title: Statistics for Business and Economics
Printed By: Josué García Mendoza (josue.garcia49@anahuac.mx)
© 2018 Cengage Learning, Cengage Learning

© 2023 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means -
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