5.1: Random Variables
Definition: A RANDOM VARIABLE may be defined as a letter to which a numerical
value is assigned, representing the outcome of an experiment.
Suppose that we define the letter D to be the number of defecti
5.3: Expected Value and Variance
The expected value of a RV is also referred to as its mean value, and as such it is a
measure of central tendency in the population of all values that the RV may take.
Definition: If X is a discrete RV with
5.5: Binomial Probability Distribution
The defining characteristics of a Binomial Experiment are the following:
1. The experiment consists of a sequence of n identical trials.
2. Each trial will result in exactly one of two possible outcom
5.6: Poisson Probability Distribution
The defining characteristics of a Poisson experiment are:
1. The probability of the occurrence of the event of interest stays constant for any 2
intervals of equal length.
2. The occurrence of the even
Data is organized in visuals; tables.
-Tables to knowI.) Data Table: each row represents a case and each column represents a variable.
A.) Case: individual about whom or which we have data.
B.) Variable: holds informatio
Make & Model
Chevrolet Aveo LT
Chevrolet Cobalt LT
Ford Focus SES
Ford Focus SES (MT)
Honda Civic EX
Honda Civic EX (MT)
Honda Fit Sport (MT)
Hyundai Accent GLS
Hyundai Elantra GLS
Hyundai Elantra SE
Kia Spectra EX
Kia Spectra EX (MT)
Nissan Versa 1.8 SL
Adjusted R Square
Total Number Of Cases
Problems 5 and 7 on Page 483
Where women buy their casual clothing most often.
Does the sample provide evidence that that women shoppeers in
atlanta differ from the shopping preferences expre
The number of vehicles owned by subscribers to Fortune Magazine
Problem 38 - Pg. 390
Business Issue : Supermarket Brand Ketchup versus National Brand Ketchup
Business Question: Is the Percentage of Supermarket Shoppers who believe
supermarket ketchup was as good as the national brand
different from 64%?
Unemployment insurance benefits of Virginia residents versus rest of US
Is the mean unemployment insurance benefits of Virigina Residents less than $238?
100 residents of Virginia will be exami
Average sales per month for all financial service professionals
Are the average sales less than $80,000 per month?
Sample of 100, Standard deviaton of $12,000, and alpha =.01
Ha: < 80
New manufacturing production method
Is the mean cost of the new production method less than $230 per hour?
40 hours of the new method will be examined and the standard deviation is $10
And the old method has a mean of $220
St. Dev. =
Judgement of errors made by auditors
Can we conclude that the auditors judgemets were better than actual results
Homework # 15
Exercise 21 (p 471).
Exercises 2 & 3 (p524)
BFDA and F-Test
Use FDIST to calculate the p-value.
The risk of large cap growth and small cap growth mutual funds
Is the Small Cap Growth Fund R
Homework # 13
Problem # 15 on Page 469
Ho: 21 = 22
Ha: 21 22
(1) F = s1^2/s2^2
Required Condition: Populations are approx Normal.
(2) If Ho is true (var's equal), this ratio has a known "F" distribution with 2 df:
df1=n1-1 = 20
TV Comercial messages seen and recalled by viewers.
Is there any difference between the recall proportions for the two commercials. If so, what is the difference?
# who Saw
# who R
Homework # 11
Problem # 40 on Page 443
Rate of Return on Load or No-Load Mutual Funds
"Do 'Load' mutual funds have a higher mean annual return over this 5 year period than 'No Load" funds?"
A sample of 30 load 30 no l
Problem #23 on Page 428-429
Bank of America Annual credit card charges of 7 categories
Is there a difference in the mean credit card charges for groceries and dining out for America
ANNUAL CREDIT CARD
Problem 13 (Page 421)
Tons of cargo carried per day handled by memphis and louisville airports
"Is the average throughput(tons/day) different for Memphis and Louisville?
The financial consulting servies for Merril Lynch
Does the company with more years of experience have a higher population mean
Problem #1 on Page 524
Three possible Treatment Options
Business Question: "Are there any differences in the mean measure across the three treatments?"