1. For each the following variables from the Salary Data Set provide the measures of location and measures of dispersion for the following variables:
1. Previous Experience
2. Education
3. Which variable has the greatest relative variability?
2. You are the manager of a high-end ladies fashion store. For the past few months you have been gathering data and found that 45% of persons entering the store actually make a purchase. Assume these data follow a Binomial Distribution and use Excel to calculate the following binomial probabilities:
1. If 15 people enter the store, what is the probability that 9 of them will make a purchase?
2. What is the probability that at least 6 of the 15 people will make a purchase?
3. Using the Salary Data Set what is the probability of randomly selecting one individual (male or female) with a current annual salary of over $55,000?
4. The time required to complete a project is normally distributed with a mean of 80 weeks and a standard deviation of 5 weeks. The construction company must pay a penalty if the project is not finished by the due date of the contract. If a construction company bidding on this contract wishes to be 90 percent sure of finishing by the due date, use the NORMINV Excel Function to determine what due date (project week #) should be negotiated?
5. In a state lottery participants select 6 numbers between 1 and 49. At the end of the week, the state lottery commission randomly draws 6 numbers between 1 and 49. How many different possible winning number combinations could be drawn by the lottery commission?
6. From the Salary Data Set and assuming that the salary data is a random sample from the population of salaries from the multi-national company use the 90% confidence level in PHStat to estimate the mean current salary for company executives.
1. The 90% confidence level is:
2. If you were to change the confidence level to 95%, what would happen to the confidence interval?
7. Using the Salary Data Set,
1. Create a scatter plot to show this relationship between education and beginning salary
2. Determine the correlation between the variables
8. Explain why rejecting the null hypothesis does not make the alternative hypothesis true.
9. What is the purpose of statistical inference?
10. What is the difference between sampling error and the standard error of the mean?