ismch03 - Chapter 3 Summarizing Descriptive Relationships...

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Unformatted text preview: Chapter 3: Summarizing Descriptive Relationships 25 Chapter 3: Summarizing Descriptive Relationships 3.1 Information on the scatter plot includes; direction & type of relation, strength, slope or rate of response and outliers: 0.3 0.2 0.1 0.0 0.055 0.045 0.035 0.025 0.015 0.005 Comper taxrate Tax Rate vs. % Commercial Property Data source: citydat The scatter plot shows no evidence of a relationship between the two variables. No evidence that a larger percent of commercial property will be associated with a lower the tax rate. 26 Instructor’s Solutions Manual for Statistics for Business & Economics, 5 th Edition 3.2 Scatterplot – Bishop’s Supermarket 500 400 300 200 3.0 2.5 2.0 Quantity Price Weekly quantities sold - Orange Juice Bishops Supermarket The scatterplot shows the expected negative relationship between price and quantity demanded per unit of time. This is what economic theory suggests for a typical demand curve. 3-3 Relationship between the number of workers X, and the number of tables produced Y, by Rising Hills Manufacturing in their Redwood Falls plant. 30 20 10 600 500 400 300 200 Workers Tables Produced Number of Workers vs. Tables produced per Day Rising Hills Manufacturing - Redwood Falls plant The scatter plot shows a strong positive association with more tables being produced as more workers are added. Chapter 3: Summarizing Descriptive Relationships 27 3-4 a. Scatter plot 20 15 10 5 65 55 45 Drug Units Recovery Days Number of drug units vs. Days for Complete Recovery River Hills Hospital b. Very weak positive association between the two. Because higher dosages of the drug does not appear to reduce the number of recovery days, recommend low or no dosages of the drug. 3-5 Acme Delivery – relation between shipping cost and number of delivery days 10 9 8 7 6 5 4 3 10 9 8 7 6 5 4 3 2 1 Shipping Cost Days Shipping Cost versus Number of Delivery Days Acme Delivery Maine to the west coast 28 Instructor’s Solutions Manual for Statistics for Business & Economics, 5 th Edition The relationship appears to be negative; however there is significant variability in delivery time at each of the three shipping costs – regular, $3; fast, $5; and lightning, $10. 3-6 a. Cov(X,Y) = 0.00008527 b. r (X,Y) = 0.147 3.7 a. Cov(X,Y) = -15.0387 b. r(X,Y) = -.723 3-8 a. Cov (X,Y) = 1069.333 b. r (X,Y) = 0.989 c. Strong positive association between the number of workers and the number of tables produced per day. 3-9 a. Cov (X,Y) = 4.268 b. r (X,Y) = 0.128 c. Weak positive association between the number of drug units and the number of days to complete recovery. Recommend low or no dosage units. 3-10 a. Cov (X,Y) = - 5.5 b. r (X,Y) = -.776 c. Higher prices are associated with faster delivery time....
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This note was uploaded on 03/25/2009 for the course FIN FIN534 taught by Professor Stevenjordan during the Spring '09 term at Korea Advanced Institute of Science and Technology.

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ismch03 - Chapter 3 Summarizing Descriptive Relationships...

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