EBK STATISTICS FOR BUSINESS & ECONOMICS
12th Edition
ISBN: 9780100460461
Author: Anderson
Publisher: YUZU
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Textbook Question
Chapter 3, Problem 75SE
The Panama Railroad Company was established in 1850 to construct a railroad across the isthmus that would allow fast and easy access between the Atlantic and Pacific Oceans. The following table (The Big Ditch, Mauer and Yu, 2011) provides annual returns for Panama Railroad stock from 1853 through 1880.
| Year | Return on Panama Railroad Company Stock (%) |
| 1853 | −1 |
| 1854 | −9 |
| 1855 | 19 |
| 1856 | 2 |
| 1857 | 3 |
| 1858 | 36 |
| 1859 | 21 |
| 1860 | 16 |
| 1861 | −5 |
| 1862 | 43 |
| 1863 | 44 |
| 1864 | 48 |
| 1865 | 7 |
| 1866 | 11 |
| 1867 | 23 |
| 1868 | 20 |
| 1869 | −11 |
| 1870 | −51 |
| 1871 | −42 |
| 1872 | 39 |
| 1873 | 42 |
| 1874 | 12 |
| 1875 | 26 |
| 1876 | 9 |
| 1877 | −6 |
| 1878 | 25 |
| 1879 | 31 |
| 1880 | 30 |
- a. Create a graph of the annual returns on the stock. The New York Stock Exchange earned an annual average return of 8.4% from 1853 through 1880. Can you tell from the graph if the Panama Railroad Company stock outperformed the New York Stock Exchange?
- b. Calculate the
mean annual return on Panama Railroad Company stock from 1853 through 1880. Did the stock outperform the New York Stock Exchange over the same period?
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Students have asked these similar questions
The table to the right represents the annual percentage
of smartphones sold in a certain region in 2011, 2012,
and 2013 (projected).
a. What conclusions can you reach about the market for
smartphones in 2011, 2012, and 2013?
b. What differences are there in the market for
smartphones in 2011, 2012, and 2013?
Type
Type 1
Type 2
Type 3
Type 4
Type 5
Type 6
2011
2012
52% 65%
18%
16%
1%
6%
13%
7%
13%
3%
4%
2%
a. Select all that apply.
A. Type 3 had the second largest percentage of smartphones sold in all three years.
B. Type 2 had the second largest percentage of smartphones sold in all three years.
C. Type 6 had the smallest or close to the smallest percentage of smartphones sold in all three years.
D. Type 1 had the largest percentage of smartphones sold in all three years.
E. Type 5 had the smallest or close to the smallest percentage of smartphones sold in all three years.
2013
54%
20%
18%
4%
2%
2%
The stock market did well during the 1990s. Here are the percent total returns (change in price plus dividends paid) for the Standard & Poor's 500 stock index:
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Return
–3.1
30.5
7.6
10.1
1.3
37.6
23.0
33.4
28.6
21.0
Reference: Ref 14-1
The correlation of U.S. stock returns with overseas stock returns during these years was about r = 0.4. This tells you that
The following table gives the U.S. national debt for selected years from 1900 to 2013.
U.S. Debt
($ billions)
U.S. Debt
($ billions)
Year
Year
1900
1990
3233
1910
1996
5225
1920
24
2000
5674
1930
16
2005
7933
1940
43
2009
11,957
1945
259
2010
13,529
1955
273
2011
15,476
1965
314
2012
16,067
1975
533
2013
16,856
1985
1823
(a) Using a function of the form y = a*b^x, with x = 0 in 1900 and y equal to the national debt in billions, model the data. (Round your coefficients to four
decimal places.)
y =
(b) Use the model to predict the debt in 2017. (Round your answer to the nearest billion.)
$
billion
(c) Predict the year in which the debt will be $99 trillion ($99,000 billion).
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Chapter 3 Solutions
EBK STATISTICS FOR BUSINESS & ECONOMICS
Ch. 3.1 - Consider a sample with data values of 10, 20, 12,...Ch. 3.1 - Consider a sample with data values of 10, 20, 21,...Ch. 3.1 - Consider the following data and corresponding...Ch. 3.1 - Consider the following data. Period Rate of Return...Ch. 3.1 - Consider a sample with data values of 27, 25, 20,...Ch. 3.1 - Consider a sample with data values of 53, 55, 70,...Ch. 3.1 - The average number of minutes Americans commute to...Ch. 3.1 - During the 2007-2008 NCAA college basketball...Ch. 3.1 - Endowment income is a critical part of the annual...Ch. 3.1 - The cost of consumer purchases such as...
Ch. 3.1 - According to the National Education Association...Ch. 3.1 - The Big Bang Theory, a situation comedy featuring...Ch. 3.1 - In automobile mileage and gasoline-consumption...Ch. 3.1 - The data contained in the file named StateUnemp...Ch. 3.1 - Martinez Auto Supplies has retail stores located...Ch. 3.1 - The grade point average for college students is...Ch. 3.1 - The following table shows the total return and the...Ch. 3.1 - Based on a survey of masters programs in business...Ch. 3.1 - Annual revenue for Corning Supplies grew by 5.5%...Ch. 3.1 - Suppose that at the beginning of 2004 you invested...Ch. 3.1 - If an asset declines in value from 5000 to 3500...Ch. 3.1 - The current value of a company is 25 million. If...Ch. 3.2 - Consider a sample with data values of 10, 20, 12,...Ch. 3.2 - Consider a sample with data values of 10, 20, 12,...Ch. 3.2 - Consider a sample with data values of 27, 25, 20,...Ch. 3.2 - A bowlers scores for six games were 182, 168, 184,...Ch. 3.2 - The results of a search to find the least...Ch. 3.2 - The Australian Open is the first of the four grand...Ch. 3.2 - The Los Angeles times regularly reports the air...Ch. 3.2 - The following data were used to construct the...Ch. 3.2 - The results of Accounting Principals latest...Ch. 3.2 - Prob. 32ECh. 3.2 - Scores turned in by an amateur golfer at the...Ch. 3.2 - The following times were recorded by the...Ch. 3.3 - Consider a sample with data values of 10, 20, 12,...Ch. 3.3 - Consider a sample with a mean of 500 and a...Ch. 3.3 - Consider a sample with a mean of 30 and a standard...Ch. 3.3 - Suppose the data have a bell-shaped distribution...Ch. 3.3 - The results of a national survey showed that on...Ch. 3.3 - The energy information Administration reported...Ch. 3.3 - The national average for the math portion of the...Ch. 3.3 - Many families in California are using backyard...Ch. 3.3 - Florida Power Light (FPL) Company has enjoyed a...Ch. 3.3 - A sample of 10 NCAA college basketball game scores...Ch. 3.3 - The Associated Press Team Marketing Report listed...Ch. 3.4 - Consider a sample with data values of 27, 25, 20,...Ch. 3.4 - Prob. 47ECh. 3.4 - Prob. 48ECh. 3.4 - A data set has a first quartile of 42 and a third...Ch. 3.4 - Naples, Florida, hosts a half-marathon (13.1-mile...Ch. 3.4 - Annual sales, in millions of dollars, for 21...Ch. 3.4 - Consumer Reports provided overall customer...Ch. 3.4 - The Philadelphia Phillies defeated the Tampa Bay...Ch. 3.4 - A listing of 46 mutual funds and their 12-month...Ch. 3.5 - Five observations taken for two variables follow....Ch. 3.5 - Five observations taken for two variables follow....Ch. 3.5 - Ten major college football bowl games were played...Ch. 3.5 - A department of transportations study on driving...Ch. 3.5 - At the beginning of 2009, the economic downturn...Ch. 3.5 - The Dow Jones Industrial Average (DJIA) and the...Ch. 3.5 - Prob. 61ECh. 3 - The average number of times Americans dine out in...Ch. 3 - The U.S. Census Bureau provides statistics on...Ch. 3 - The average waiting time for a patient at an El...Ch. 3 - The U.S. Department of Education reports that...Ch. 3 - Small business owners often look to payroll...Ch. 3 - Public transportation and the automobile are two...Ch. 3 - The National Association of Realtors reported the...Ch. 3 - Prob. 69SECh. 3 - Travel + Leisure magazine provides an annual list...Ch. 3 - Morningstar tracks the performance of a large...Ch. 3 - Does a major league baseball teams record during...Ch. 3 - The days to maturity for a sample of five money...Ch. 3 - Automobiles traveling on a road with a posted...Ch. 3 - The Panama Railroad Company was established in...Ch. 3 - Pelican Stores Pelican Stores, a division of...Ch. 3 - Motion Picture Industry The motion picture...Ch. 3 - Business Schools of Asia-Pacific The pursuit of a...Ch. 3 - Heavenly Chocolates Website Transactions Heavenly...Ch. 3 - African Elephant Populations Although millions of...
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