Statistics for

Business

Practice 1
3.1 A random sample of 15 articles in a Fortune revealed the following word counts per article: 4,132
4,188
𝑛 = 15 5,176 6,005 5,052 5,310 4,188
4,209
4,132 5,736 5,381 4,983 4,423
4,423
5,002 4,573 4,209 5,611 4,568
4,568
Compute the mean, median, first quartile, and third quartile for these sample data. 4,573
Mode, Construct a Box and whisker plot. 4,983
First Quartile à 25% of the 5,002
data ßà Lower quatile, Q1 5,052
MEAN:
∑ 𝑥! 5176 + 6005 + ⋯ + 5611 + 4568 74349 5,176
𝑥= = = = 4956.6 25
𝑛 15 15 𝑖= 15 = 3.75 5,310
100 5,381
→ 𝑣𝑎𝑙𝑢𝑒 𝑜𝑛 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 4
The mean of the Word counts per article is 4956.6 5,611
Q1 = 4423
5,736
MEDIAN: (Second quartile à Q2) Third Quartile à 75% of the data ßà Upper 6,005
𝑛 15 quatile, Q3
𝑖= = = 7.5 → 𝑣𝑎𝑙𝑢𝑒 𝑜𝑛 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 8
2 2
The median is 5002. 75
𝑖= 15 = 11.25 → 𝑣𝑎𝑙𝑢𝑒 𝑜𝑛 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 12
100
No Mode Q3 = 5381

Prof. H.Castro Statistics 2

Box and whisker plot:
Minimum – Q1—Q2 – Q3 –Maximum: 4132 – 4423 -- 5002 -- 5381 -- 6005 4,132
4,188
4,209
4,423
4,568
4,573
4,983
5,002
5,052
5,176
5,310
5,381
5,611
Whisker 1 = Q1 – 1.5(IQR) = Q1 – 1.5 (Q3 – Q1) = 4423 – 1.5(5381 – 4423) = 2986 5,736
6,005
Whisker 2 = Q3 + 1.5(IQR) = Q3 + 1.5 (Q3 – Q1) = 5381 + 1.5(5381 – 4423) = 6818

Prof. H.Castro Statistics 3

 6
3.31 The following set of data shows the number of alcoholic drinks that students at a Kansas university 9
reported they had consumed in the past month: 10
12
24 16 23 26 30 21 15 9 18 27 14 6 14 10 12
14
15
a. Assume the data set is a sample. Calculate the range, variance, standard deviation, and interquartile
16
range for the data set.
b. Assume the data set is a population. Calculate the range, variance, standard deviation, and 18

interquartile range for the data set. 21

c. Indicate the relationship between the statistics and the respective parameters calculated in parts a and 23
b. 24

(A) Sample (n =14) : Range = 30 – 6 = 24 26

27
30
∑ 𝑥! 24 + 16 + ⋯ + 10 + 12 251
𝑥= = = = 17.93
𝑛 14 14
"
251 251 " 251 "
24 − + 16 − + ⋯ 12 −
= 14 14 14 = 54.84 → s = 54.84 = 7.41
14 − 1

Prof. H.Castro Statistics 4

3-50. You are given the following parameters for two populations:
Population 1 Population 2
𝜇 = 700 𝜇 = 29,000
𝜎 = 50 𝜎 = 5,000

a. Compute the coefficient of variation for each population.

b. Based on the answers to part a, which population has data values that are more variable relative to the size of
the population mean?

Prof. H.Castro Statistics 5

3-90. Zepolle’s Bakery makes a variety of bread types that it sells to supermarket chains in the area. One of Zepolle’s
problems is that the number of loaves of each type of bread sold each day by the chain stores varies considerably,
making it difficult to know howmany loaves to bake. A sample of daily demand data is contained in the file Bakery.
a. Which bread type has the highest average daily demand?
b. Develop a frequency distribution for each bread type.
c. Which bread type has the highest standard deviation in demand?
d. Which bread type has the greatest relative variability? Which type has the lowest relative variability?
e. Assuming that these sample data are representative of demand during the year, determine how many loaves of
each type of bread should be made such that demand would be met on at least 75% of the days during the year.
f. Create a new variable called Total Loaves Sold. On which day of the week is the average for total loaves sold the
highest?

Prof. H.Castro Statistics 6