Introduction To Statistics And Data Analysis
6th Edition
ISBN: 9781337793612
Author: PECK, Roxy.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 13.3, Problem 33E
To determine
Construct a standardized residual plot.
Write about the plot suggestion about the adequacy of the simple linear regression model.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
There is some evidence that, in the years 1981-85, a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw, "Does it pay to change your company's name? A stock market perspective," Marketing Science v.6, pp. 320-35,1987.)
Suppose that, to test the profitability of name changes in the more recent market (the past five years), we analyze the stock prices of a large sample of corporations shortly after they changed names, and we find that the mean relative increase in stock price was about 0.87 %, with a standard deviation of 16 %. Suppose that this mean and standard deviation apply to the population of all companies that changed names during the past five years. Complete the following statements about the distribution of relative increases in stock price for all companies that changed names during the past five years.
(a) According to Chebyshev's theorem, at least…
There is some evidence that, in the years 1981— 85, a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw, "Does it pay to change your company's name? A stock market perspective," Marketing Science v.6 pp. 320— 35, 1987.)
Suppose that, to test the profitability of name changes in the more recent market (the past five years), we analyze the stock prices of a large sample of corporations shortly after they changed names, and we find that the mean relative increase in stock price was about 0.76%, with a standard deviation of 0.12%. Suppose that this mean and standard deviation apply to the population of all companies that changed names during the past five years. Complete the following statements about the distribution of relative increases in stock price for all companies that changed names during the past five years.
(a)According to Chebyshev's theorem,…
There is some evidence that, in the years−198185, a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw, "Does it pay to change your company's name? A stock market perspective," Marketing Science v. 6, pp.−32035,1987.)
Suppose that, to test the profitability of name changes in the more recent market (the past five years), we analyze the stock prices of a large sample of corporations shortly after they changed names, and we find that the mean relative increase in stock price was about 0.86 %, with a standard deviation of 0.10%.
Suppose that this mean and standard deviation apply to the population of all companies that changed names during the past five years. Complete the following statements about the distribution of relative increases in stock price for all companies that changed names during the past five years.
According to Chebyshev's theorem, at least 84%…
Chapter 13 Solutions
Introduction To Statistics And Data Analysis
Ch. 13.1 - Let x be the size of a house (in square feet) and...Ch. 13.1 - Consider the variables and population regression...Ch. 13.1 - The flow rate in a device used for air quality...Ch. 13.1 - The paper Predicting Yolk Height, Yolk Width,...Ch. 13.1 - A sample of small cars was selected, and the...Ch. 13.1 - Prob. 6ECh. 13.1 - Suppose that a simple linear regression model is...Ch. 13.1 - a. Explain the difference between the line y x...Ch. 13.1 - Prob. 9ECh. 13.1 - Hormone replacement therapy (HRT) is thought to...
Ch. 13.1 - Consider the data and estimated regression line...Ch. 13.1 - A simple linear regression model was used to...Ch. 13.1 - Consider the accompanying data on x = Advertising...Ch. 13.2 - What is the difference between and b? What is the...Ch. 13.2 - The largest commercial fishing enterprise in the...Ch. 13.2 - Prob. 16ECh. 13.2 - Prob. 17ECh. 13.2 - Prob. 18ECh. 13.2 - An experiment to study the relationship between x...Ch. 13.2 - The paper The Effects of Split Keyboard Geometry...Ch. 13.2 - The authors of the paper Decreased Brain Volume in...Ch. 13.2 - Do taller adults make more money? The authors of...Ch. 13.2 - Researchers studying pleasant touch sensations...Ch. 13.2 - Prob. 24ECh. 13.2 - Acrylamide is a chemical that is sometimes found...Ch. 13.2 - Prob. 26ECh. 13.2 - Exercise 13.18 described a regression analysis...Ch. 13.2 - Consider the accompanying data on x = Research and...Ch. 13.2 - Prob. 29ECh. 13.2 - In anthropological studies, an important...Ch. 13.3 - The graphs accompanying this exercise are based on...Ch. 13.3 - Prob. 32ECh. 13.3 - Prob. 33ECh. 13.3 - The article Vital Dimensions in Volume Perception:...Ch. 13.3 - Prob. 35ECh. 13.3 - An investigation of the relationship between x =...Ch. 13.4 - Prob. 37ECh. 13.4 - Prob. 38ECh. 13.4 - In Exercise 13.19, we considered a regression of y...Ch. 13.4 - Prob. 40ECh. 13.4 - A subset of data read from a graph that appeared...Ch. 13.4 - Prob. 42ECh. 13.4 - Prob. 43ECh. 13.4 - The article first introduced in Exercise 13.34 of...Ch. 13.4 - The shelf life of packaged food depends on many...Ch. 13.4 - For the cereal data of the previous exercise, the...Ch. 13.4 - The article Performance Test Conducted for a Gas...Ch. 13.5 - Prob. 48ECh. 13.5 - Prob. 49ECh. 13.5 - A sample of n = 353 college faculty members was...Ch. 13.5 - Prob. 51ECh. 13.5 - Prob. 52ECh. 13.5 - The accompanying summary quantities for x =...Ch. 13.5 - Prob. 54ECh. 13.5 - Prob. 55ECh. 13.6 - Prob. 56ECh. 13 - Prob. 1CRECh. 13 - Prob. 2CRECh. 13 - Prob. 3CRECh. 13 - Prob. 4CRECh. 13 - Prob. 5CRECh. 13 - The accompanying graphical display is similar to...Ch. 13 - Prob. 7CRECh. 13 - Prob. 8CRECh. 13 - Consider the following data on y = Number of songs...Ch. 13 - Many people take ginkgo supplements advertised to...Ch. 13 - Prob. 11CRECh. 13 - Prob. 12CRECh. 13 - Prob. 13CRECh. 13 - Prob. 14CRECh. 13 - The discharge of industrial wastewater into rivers...Ch. 13 - Many people take ginkgo supplements advertised to...Ch. 13 - It is hypothesized that when homing pigeons are...Ch. 13 - Prob. 18CRECh. 13 - Prob. 57CRCh. 13 - Prob. 58CRCh. 13 - Prob. 59CRCh. 13 - The article Photocharge Effects in Dye Sensitized...Ch. 13 - Prob. 61CRCh. 13 - Prob. 62CRCh. 13 - Prob. 63CRCh. 13 - Prob. 64CRCh. 13 - Prob. 65CRCh. 13 - The article Improving Fermentation Productivity...Ch. 13 - Prob. 67CRCh. 13 - Prob. 68CRCh. 13 - Prob. 69CR
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- There is some evidence that, in the years −198185 , a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw, "Does it pay to change your company's name? A stock market perspective," Marketing Science v. 6 , pp. −32035,1987 .) Suppose that, to test the profitability of name changes in the more recent market (the past five years), we analyze the stock prices of a large sample of corporations shortly after they changed names, and we find that the mean relative increase in stock price was about 0.89 %, with a standard deviation of 0.16 %. Suppose that this mean and standard deviation apply to the population of all companies that changed names during the past five years. Complete the following statements about the distribution of relative increases in stock price for all companies that changed names during the past five years. (a)…arrow_forwardIt has been shown that the fertilizer magnesium ammonium phosphate, Mg, NH4PO4, is an effective supplier of the nutrients necessary for plant growth. A study was conducted at George Mason University to determine a possible optimum level of fertilization, based on the enhanced vertical growth response of the chrysanthemums. Forty chrysanthemum seedlings were divided into four groups, each containing 10 plants. Each was planted in a similar pot containing a uniform growth medium. To each group of plants an increasing concentration of Mg,NH4PO4, measured in grams per bushel, was added: 50 g/bu, 100 g/bu, 200 g/bu, and 400g/bu. The sample means for each group was 15.34 cm, 17.16 cm, 18.3 cm, and 20.1 cm, respectively. Here SST = 758.035. (a) Construct the ANOVA table. (b) Use the Bonferroni correction to construct all g pairwise confidence intervals with t a df 2.792. What is a?arrow_forwardA study showed that 56 of 80 persons who saw a spaghetti sauce advertised on television during a situation comedy and 38 of 80 other persons who saw it advertised during a football game remembered the brand name two hours later. At the 0.01 level of significance, is it more cost effective to advertise this product during situation comedy rather than a football game?arrow_forward
- There is some evidence that, in the years−198185, a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw, "Does it pay to change your company's name? A stock market perspective," Marketing Sciencev. 6, pp.−32035,1987.) Suppose that, to test the profitability of name changes in the more recent market (the past five years), we analyze the stock prices of a large sample of corporations shortly after they changed names, and we find that the mean relative increase in stock price was about 0.82%, with a standard deviation of 0.13%. Suppose that this mean and standard deviation apply to the population of all companies that changed names during the past five years. Complete the following statements about the distribution of relative increases in stock price for all companies that changed names during the past five years. a) According to Chebyshev's theorem, at least 56%…arrow_forwardSuppose a researcher is interested inthe effectiveness in a new childhood exercise program implemented in a SRS of schools across a particular county. In order to test the hypothesis that the new program decreases BMI (Kg/m2), the researcher takes a SRS of children from schools where the program is employed and a SRS from schools that do not employ the program and compares the results. Assume the following table represents the SRSs of students and their BMIs. Student intervention group BMI (kg/m2) Student control group BMI (kg/m2) A 18.6 A 21.6 B 18.2 B 18.9 C 19.5 C 19.4 D 18.9 D 22.6 E 24.1 F 23.6 A) Assuming that all the necessary conditions are met (normality, independence, etc.) carry out the appropriate statistical test to determine if the new exercise program is effective. Use an alpha level of 0.05. Do not assume equal variances.B) Construct a 95% confidence interval about your estimate for the average difference in BMI between the groups.arrow_forwardThe UWI Open Campus has commissioned a study to determine how student will perform in ECON3080 based on the hours of studying each semester. Students are separated by gender and the results of the study are given below: Males Females Hours Studying ECON3080 Grade Hours Studying ECON3080 Grade 377 92 182 51 280 100 99 41 187 99 44 38 225 62 387 90 157 91 200 75 280 99 331 48 80 32 263 78 374 88 377 93 141 59 297 49 385 72 229 88 238 30 254 80 105 94 347 80 180 53 119 55 288 48 142 67 241 96 293 45 72 57 318 36 314 82 319 94 196 81 60 60 209 79 319 42 306 79 184 81 167 51 193 56 380 44 239 34 389 88 144 49 122 49 97 100 354 76 337 33 327 94 330 78 181 70 157 57 349 66 262 43 117 35…arrow_forward
- Study: What type of soil conditions are favorable for the growth of a common flowering species such as Daisy Fleabane (Erigeron annuus) often found along roadsides? Suppose that a controlled research study was conducted to compare the growth of this flower in three types of soil treatments, specifically the effects of nitrogen. (1) Group 1: No nitrogen added to the soil, (2) Group 2: Low amounts of nitrogen added to the soil, and (3) Group 3: High amounts of nitrogen added to the soil. The weight of dry biomass of Erigeron annuus (mg) planted in the containers under each of the three treatments was recorded and shown below. Express the null and alternative hypotheses with appropriate symbols for parameters. H0: Ha:arrow_forwardRandom samples of 900 people in the United States and in Great Britain indicated that 60% of the people in the United States were positive about the future economy, whereas 66% of the people in Great Britain were positive about the future economy. Does this provide strong evidence that the people in Great Britain are more optimistic about the economy (alpha = 0,01)?arrow_forward5h. David's Landscaping 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. Data for 14 households may be found in the file Landscape. HomeValue($1,000) LandscapingExpenditures($1,000) 242 8.1 321 10.8 198 12.2 340 16.2 300 15.6 400 18.9 800 23.5 200 9.5 521 17.5 547 22.0 437 12.1 464 13.5 635 17.9 356 13.9 (c) 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.) ŷ = (d) For every additional $1,000 in home value, estimate how much additional will be spent (in $) on landscaping. (Round your answer to the nearest cent.) $ (e) Use the equation estimated in part (c) to predict the landscaping expenditures (in $) for a…arrow_forward
- In the article “Bactericidal Properties of Flat Surfaces and Nanoparticles Derivatized with Alkylated Polyethylenimines” (J. Lin, S. Qiu, et al., Biotechnology Progress, 2002:1082– 1086), experiments were described in which alkylated polyethylenimines were attached to surfaces and to nanoparticles to make them bactericidal. In one series of experiments, the bactericidal efficiency against the bacterium E. coli was compared for a methylated versus a non-methylated polymer. The mean percentage of bacterial cells killed with the methylated polymer was 95 with a standard deviation of 1, and the mean percentage of bacterial cells killed with the nonmethylated polymer was 70 with a standard deviation of 6. Assume that five independent measurements were made on each type of polymer. Find a 95% confidence interval for the increase in bactericidal efficiency of the methylated polymer.arrow_forwardPCBs and Pelicans. Polychlorinated biphenyls (PCBs), industrial pollutants, are known to be carcinogens and a great danger to natural ecosystems. As a result of several studies, PCB production was banned in the United States in 1979 and by the Stockholm Convention on Persistent Organic Pollutants in 2001. One study, published in 1972 by R. Risebrough, is titled “Effects of Environmental Pollutants Upon Animals Other Than Man” (Proceedings of the 6th Berkeley Symposium on Mathematics and Statistics, VI, University of California Press, pp. 443–463). In that study, 60 Anacapa pelican eggs were collected and measured for their shell thickness, in millimeters (mm), and concentration of PCBs, in parts per million (ppm). The data are on the WeissStats site. a. obtain and interpret the standard error of the estimate. b. obtain a residual plot and a normal probability plot of the residuals. c. decide whether you can reasonably consider Assumptions 1–3 for regression inferences met by the two…arrow_forwardIn terms of the model parameters, state the null hypothesis that, after controlling for sales and roe, ros has no effect on CEO salary. State the alternative that better stock market performance increases a CEO’s salary.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons IncProbability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage LearningStatistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
- Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSONThe Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. FreemanIntroduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman
Hypothesis Testing using Confidence Interval Approach; Author: BUM2413 Applied Statistics UMP;https://www.youtube.com/watch?v=Hq1l3e9pLyY;License: Standard YouTube License, CC-BY
Hypothesis Testing - Difference of Two Means - Student's -Distribution & Normal Distribution; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=UcZwyzwWU7o;License: Standard Youtube License