Concept explainers
The “lucky store effect” in lottery ticket sales. In the American Economic Review (Vol. 98, 2008), University of Chicago researchers investigated the lucky store effect theory in lottery ticket sales, i.e., the theory that a lottery retail store that sold a large-prize-winning ticket will experience greater ticket sales the following week. The researchers examined the weekly ticket sales of all 24,400 active lottery retailers in Texas. The analysis showed that "the week following the sale of [a winning Lotto Texas ticket], the winning store experiences a 12 to 38 percent relative sales increase. . . . ”Consequently, the researchers project that future winning lottery retail stores will experience the lucky store effect. Is this study an example of
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- In a 1993 article in Accounting and Business Research, Meier, Alam, and Pearson studied auditor lobbying on several proposed U.S. accounting standards that affect banks and savings and loan associations. As part of this study, the authors investigated auditors’ positions regarding proposed changes in accounting standards that would increase client firms’ reported earnings. It was hypothesized that auditors would favor such proposed changes because their clients’ managers would receive higher compensation (salary, bonuses, and so on) when client earnings were reported to be higher. Table (below) summarizes auditor and client positions (in favor or opposed) regarding proposed changes in accounting standards that would increase client firms’ reported earnings. Here the auditor and client positions are cross-classified versus the size of the client firm. LargeFirms SmallFirms Total In Favor 13 130 143 Opposed 10 24 34 Total 23 154 177 LargeFirms SmallFirms Total…arrow_forwardIn a research to study the gender differences in receiving Lidocaine therapy in Acure Myocardial infarction (AMI) patients older than 75 years who have a history of hypertension and strokes, there were 81 patients in total (30 males and 51 females). The following table provides the outcomes. Therapy Gender Receive Not receive Total Male 8 22 30 Female 16 35 51 Total 24 57 81 According to the hypothesis that there is no association between receive Lidocaine therapy and gender, what does the minimum expected cell count in this table? Based on the answer to part a, which test should you use to test the hypothesis of no association between receive Lidocaine therapy and gender? Test the hypothesis whether the receiving Lidocaine therapy is independent of their gender at .05 significance level. Find the critical value and p-value, respectively. Therapy Gender Receive Not receive Total Male 2 28 30…arrow_forwardThe Behavioral Risk Factor Surveillance System (BRFSS) is an annual telephone survey designed to identify risk factors in the adult population and reportemerging health trends. The following table summarizes two variables for the respondents: health status and health coverage, which describes whether each respondent had health insurance: Health Status Excellent Very Good Good Fair Poor Total Health No 459 727 854 385 99 2524 Coverage Yes 4198 6245 4821 1634 578 17476 Total 4657 6972 5675 2019 677 20000 If we draw one individual at random, what is the probability that the respondent has health coverage if they have good health? Answer with a decimal rounded to 3 decimal places.arrow_forward
- Based on a survey of 12,344 U.S. college students and 6,729 Canadian college students, Kuo, Adlaf, Lee, Gliksman, Demers, and Wechsler (2002) report that alcohol use is more common among Canadian than U.S. students, but heavy drinking (five or more drinks in a row for males, four or more for females) is significantly higher among U.S. students than Canadian students. Is this an example of a survey research design?arrow_forwardIn studies examining the effect of humor on interpersonal attractions, McGee and Shevlin (2009) found that an individual’s sense of humor had a significant effect on how the individual was perceived by others. In one part of the study, female college students were given brief descriptions of a potential romantic partner. The fictitious male was described positively as being single and ambitious and having good job prospects. For one group of participants, the description also said that he had a great sense of humor. For another group, it said that he has no sense of humor. After reading the description, each participant was asked to rate the attractiveness of the man on a seven-point scale from 1 (very unattractive) to 7 (very attractive). A score of 4 indicates a neutral rating. The females who read the “great sense of humor” description gave the potential partner an average attractiveness score of M = 4.53 with a standard deviation of s = 1.04. If the sample consisted of n = 16…arrow_forwardA development corporation purchased land that will be the site of a new luxury condominium complex. Management is considering a six month market research study designed to learn more about potential market acceptance of the condominium project. Management anticipates that, if conducted, the market research study will provide one of the following two results. 1. Favorable report (F): A significant number of the individuals contacted express interest in purchasing a condominium. 2. Unfavorable report (U): Very few of the individuals contacted express interest in purchasing a condo- minium. After deciding whether to conduct the market research study, they have the following two decision alternatives. d1 = a small complex with 30 condominiumsd2 = a medium complex with 60 condominiumsFollowing this, a chance event concerning the demand for the condominiums has two states of nature. s1 = strong demand for the condominiumss2 = weak demand for the condominiumsThe payoffs, probabilities, and…arrow_forward
- A development corporation purchased land that will be the site of a new luxury condominium complex. Management is considering a six month market research study designed to learn more about potential market acceptance of the condominium project. Management anticipates that, if conducted, the market research study will provide one of the following two results. 1. Favorable report (F): A significant number of the individuals contacted express interest in purchasing a condominium. 2. Unfavorable report (U): Very few of the individuals contacted express interest in purchasing a condo- minium. After deciding whether to conduct the market research study, they have the following two decision alternatives. d1 = a small complex with 30 condominiumsd2 = a medium complex with 60 condominiumsFollowing this, a chance event concerning the demand for the condominiums has two states of nature. s1 = strong demand for the condominiumss2 = weak demand for the condominiumsThe payoffs, probabilities, and…arrow_forwardIn a study examining the permanence of academic learning, Bahrick and Hall (1991) tested knowledge of high school algebra for two groups of participants 50 years after they graduated from high school. One group had received additional college math courses and the other group had received no advanced math courses in college. The following table shows data similar to Bahrick and Halls results. No College Math Additional Math n = 4 n = 8 M = 42 M = 50 s2 = 33.333 s2 = 20 1) Do the data indicate a significant difference between the two groups? Use a two- tailed test with α = .05. Report and interpret r2.arrow_forwardA landscaping company has collected data on home values (in thousands of $) and expenditures (in thousands of $) on landscaping with the hope of developing a predictive model to help marketing to potential new clients. Suppose the following table represents data for 14 households. HomeValue($1,000) LandscapingExpenditures($1,000) 243 8.2 322 10.7 199 12.3 340 16.3 300 15.7 400 18.8 800 23.5 200 9.5 522 17.5 548 22.0 438 12.2 463 13.5 635 17.8 357 13.8 a. Use the least squares method to develop the estimated regression equation. (Let x = home value (in thousands of $), and let y = landscaping expenditures (in thousands of $). Round your numerical values to five decimal places.) b. Use the equation estimated in part (b) to predict the landscaping expenditures (in $) for a home valued at $275,000. (Round your answer to the nearest dollar.)arrow_forward
- A landscaping company has collected data on home values (in thousands of $) and expenditures (in thousands of $) on landscaping with the hope of developing a predictive model to help marketing to potential new clients. Suppose the following table represents data for 14 households. HomeValue($1,000) LandscapingExpenditures($1,000) 241 8.2 322 10.7 199 12.1 340 16.1 300 15.7 400 18.8 800 23.5 200 9.5 522 17.5 548 22.0 436 12.2 463 13.5 635 17.8 357 13.8 (a) Develop a scatter diagram with home value as the independent variable. A scatter diagram has a horizontal axis labeled "Home Value ($1,000)" with values from 0 to 900 and a vertical axis labeled "Landscaping Expenditures ($1,000)" with values from 0 to 25. The scatter diagram has 14 points. A pattern goes down and right from (199, 21.8) to (800, 6.5). The points are scattered moderately from the pattern. A scatter diagram has a horizontal axis labeled "Landscaping Expenditures ($1,000)" with…arrow_forwardIn 2010, Seery, Holman, & Silver found that individuals with some history of adversity report better mental health and well-being compared to people with little to no history of adversity. In an attempt to examine this phenomenon, a researcher surveys a group of college students to determine the negative life events they experienced in the last 5 years and their current feeling of well-being. Participants: With 5-10 negative experiences With 2 or fewer negative experiences n=7 n=7 Well-being score of M=48 Well-being score of M=41 SS=325 SS=347 1. State the hypotheses both experimental and statistical 2. Do the results indicate significantly different reports of Well-being? Use a two-tailed test with a=.05. Please show work and state your decision regarding the H0. 3. Compute the estimated Cohen's d to measure the size of the effect. State…arrow_forwardIn a study reported in the July 2007 issue of the Journal of Epidemiology and Community Health, researchers investigated whether veterans are more likely to commit suicide than nonveterans. They spent 12 years following 104,000 veterans who had served in the armed forces between 1917 and 1994, and compared them with 216,000 nonveterans. They found that 197 veterans and 311 nonveterans committed suicide. Q: How many times more times is a veteran likely to commit suicide than a nonveteran? Round all values to 3 decimal places. Show as much work as possible.arrow_forward
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