A financial magazine conducted a survey. It showed that a person with more years of education tends to have a higher salary. What is likely true?

Answer: There is a correlation between years of education and salary. There may or may not be causation. Further studies would have to be done to determine this.

A grocery store collected sales data. It found that a change in price does not imply that people will buy more or less milk. What can we determine from this information?

Answer: There is no correlation between price and amount of milk bought.

Ms. Ross studied her students' math test scores and TV habits. She found that students who watched less TV tended to earn higher scores on the test. What conclusion should she make?

Answer: There is a correlation between test score and amount of TV watched. There may or may not be causation. Further studies would have to be done to determine this.

A magazine collects data each year on the price of a hamburger in a certain fast food restaurant in various countries around the world. The price of this hamburger for a sample of restaurants in Europe in January resulted in the following hamburger prices (after conversion to U.S. dollars).

The mean price of this hamburger in the U.S. in January was $4.63. For purposes of this exercise, assume it is reasonable to regard the sample as representative of these European restaurants. Does the sample provide convincing evidence that the mean January price of this hamburger in Europe is greater than the reported U.S. price? Test the relevant hypotheses using α = 0.05. (Use a statistical computer package to calculate the P-value. Round your test statistic to two decimal places and your P-value to three decimal places.)

A magazine collects data each year on the price of a hamburger in a certain fast food restaurant in various countries around the world. The price of this hamburger for a sample of restaurants in Europe in January resulted in the following hamburger prices (after conversion to U.S. dollars).

5.19 4.92 4.04 4.69 5.25 4.64

4.17 4.99 5.12 5.52 5.36 4.60

The mean price of this hamburger in the U.S. in January was $4.61. For purposes of this exercise, assume it is reasonable to regard the sample as representative of these European restaurants. Does the sample provide convincing evidence that the mean January price of this hamburger in Europe is greater than the reported U.S. price? Test the relevant hypotheses using α = 0.05. (Use a statistical computer package to calculate the P-value. Round your test statistic to two decimal places and your P-value to three decimal places.)

t = _____

P-value =_______

A recent article in a local magazine indicated that the mean selling price of homes in the area is less than $232,000. Can we conclude that the mean selling price in the area is less than $232,000? Use the 0.01 significance level. {Use 232.0 as the value, not 232,000.}

Assume the list is a sample.

Requirement following the hypotheses testing 6-step process:

• State Null and Alternative Hypotheses,
• State the significance level.
• State which distribution is used.
• State the decision rule including graph.
• State the test statistic and the p-value.
• State the conclusion.

Notes:

• Use 232.0 instead of 232,000.
• State z-values to 2 decimal places unless 3 decimal places are needed; State t-values to 3 decimal places; State p-values to 4 decimal places.

An article in Fortune magazine reported on the rapid rise of fees and expenses charged by mutual funds. Assuming that stock fund expenses and municipal bond fund expenses are each approximately normally distributed, suppose a random sample of 12 stock funds gives a mean annual expense of 1.50 percent with a standard deviation of 0.38 percent, and an independent random sample of 12 municipal bond funds gives a mean annual expense of 0.73 percent with a standard deviation of 0.40 percent. Let µ₁ be the mean annual expense for stock funds, and let µ₂ be the mean annual expense for municipal bond funds. Do parts a, b, and c by using the equal variances procedure.

(a) Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds is larger than the mean annual expense for municipal bond funds. Test these hypotheses at the 0.05 level of significance. (Round your s_p² answer to 4 decimal places and t-value to 2 decimal places.)

(b) Set up the null and alternative hypotheses needed to attempt to establish that the mean annual expense for stock funds exceeds the mean annual expense for municipal bond funds by more than 0.5 percent. Test these hypotheses at the 0.05 level of significance. (Round your t-value to 2 decimal places and other answers to 1 decimal place.)

(c) Calculate a 95 percent confidence interval for the difference between the mean annual expenses for stock funds and municipal bond funds. Can we be 95 percent confident that the mean annual expense for stock funds exceeds that for municipal bond funds by more than .5 percent? (Round your answers to 3 decimal places.)

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1. A recent report in Woman’s World magazine suggested that the typical family of four with an intermediate budget spends about $106 per week on food. The following frequency distribution was included in the report. Compute the mean, median, and standard deviation. How do your results compare with those of the report?

**Choose an article from a newspaper, magazine or internet site.

****A summary of the article in your own words

***Why this is a medical ethical issue, or a fallacy
***Your ethical analysis (Be sure to mention fallacies, if appropriate, in later memos.)
***Your conclusions, i.e., What do YOU think about this.
****Include the original article, or a copy, with the memo.
****The memo is NOT to exceed 1 page in length.

***You can choose any article*******about medical issue********

Cutting Edge is a monthly magazine that has been on the market for 18 months. It currently has a circulation of 1.4 million copies. Negotiations are underway to obtain a bank loan in order to update the magazine's facilities. Cutting Edge is producing close to capacity and expects to grow at an average of 20% per year over the next 3 years.

After reviewing the financial statements of Cutting Edge, Andy Rich, the bank loan officer, had indicated that a loan could be offered to Cutting Edge only if it could increase its current ratio and decrease its debt to equity ratio to a specified level. Jonathan Embry, the marketing manager of Cutting Edge, has devised a plan to meet these requirements. Embry indicates that an advertising campaign can be initiated to immediately increase circulation. The potential customers would be contacted after the purchase of another magazine's mailing list. The campaign would include:

1.An offer to subscribe to Cutting Edge at three-fourths the normal price.

2.A special offer to all new subscribers to receive the most current world atlas whenever requested at a guaranteed price of $2.

3.An unconditional guarantee that any subscriber will receive a full refund if dissatisfied with the magazine.

Although the offer of a full refund is risky, Embry claims that few people will ask for a refund after receiving half of their subscription issues. Embry notes that other magazine companies have tried this sales promotion technique and experienced great success. Their average cancellation rate was 25%. On average, each company increased its initial circulation threefold and in the long run increased circulation to twice that which existed before the promotion. In addition, 60% of the new subscribers are expected to take advantage of the atlas premium. Embry feels confident that the increased subscriptions from the advertising campaign will increase the current ratio and decrease the debt to equity ratio.

You are the controller of Cutting Edge and must give your opinion of the proposed plan.

Instructions

(a)When should revenue from the new subscriptions be recognized?

(b)How would you classify the estimated sales returns stemming from the unconditional guarantee?

(c)How should the atlas premium be recorded? Is the estimated premium claims a liability? Explain.

(d)Does the proposed plan achieve the goals of increasing the current ratio and decreasing the debt to equity ratio?

As reported in "Runner's World" magazine, the times of the finishers in the New York City 10 km run are normally distributed with a mean of 61 minutes and a standard deviation of 9 minutes. Let x denote finishing time for the finishers.

a) The distribution of the variable x has mean____ and standard deviation____ .

b) The distribution of the standardized variable z has mean____ and standard deviation____ .

c) The percentage of finishers with times between 60 and 80 minutes is equal to the area under the standard normal curve between____ and____ .

d) The percentage of finishers with times exceeding 86 minutes is equal to the area under the standard normal curve that lies to the____ of____ .

As reported in "Runner's World" magazine, the times of the finishers in the New York City 10 km run are normally distributed with a mean of 61 minutes and a standard deviation of 9 minutes. Let x denote finishing time for the finishers. a) The distribution of the variable x has mean ___ and standard deviation ___ b) The distribution of the standardized variable z has mean ___ and standard deviation ___ c) The percentage of finishers with times between 35 and 75 minutes is equal to the area under the standard normal curve between ___ and ___ d) The percentage of finishers with times exceeding 88 minutes is equal to the area under the standard normal curve that lies to the ___ of ___