Bundle: Introduction to Statistics and Data Analysis, 5th + WebAssign Printed Access Card: Peck/Olsen/Devore. 5th Edition, Single-Term
5th Edition
ISBN: 9781305620711
Author: Roxy Peck, Chris Olsen, Jay L. Devore
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 7, Problem 7CRE
Two shipping services offer overnight delivery of parcels, and both promise delivery before 10 A.M. A mail-order catalog company ships 30% of its overnight packages using service 1 and 70% using service 2. Service 1 fails to meet the 10 A.M. delivery promise 10% of the time, whereas Service 2 fails to deliver by 10 A.M. 8% of the time.
Suppose that you made a purchase from this company and were expecting your package by 10 A.M., but it is late. Which shipping service was more likely to have been used?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Suppose Janice has a 25% chance of totaling her car (worth $13,500) this year and Sam has a 19%
chance of totaling his car ($23,700) this year. If you have a car insurance company and you want to
offer an insurance policy to these two customers and offer it for the same price, what price should
you charge (without any profit mark-up)?
Meier and Frank is a chain of department stores located in the Northwest. The company has issued its own credit cards for a number of years. As a new employee in the finance department, imagine that you have been assigned to a major investigation of the firm’s credit policies designed to reduce bad debt losses. You are requested to investigate the relationship between marital status at the time the card is issued and the subsequent payment record of the individual.
You randomly select 100 credit cards issued three years previously. Of the 70 individuals that were married at the time the cards were issued, 11 have defaulted on a payment. Of the 30 individuals who were single when the cards were issued, 7 have defaulted. Do these data present sufficient evidence to indicate that marital status affects credit-worthiness? Use Alpha = 0.05.
Avicenna, an insurance company, offers five-year commercial property insurance policies to small businesses. If the holder of one of these policies experiences
property damage in the next five years, the company must pay out $23,600 to the policy holder. Executives at Avicenna are considering offering these policies
for $791 each. Suppose that for each holder of a policy there is a 3% chance they will experience property damage in the next five years and a 97% chance
they will not.
(If necessary, consult a list of formulas.)
If the executives at Avicenna know that they will sell many of these policies, should they expect
to make or lose money from offering them? How much?
To answer, take into account the price of the policy and the expected value of the amount paid
out to the holder.
O Avicenna can expect to make money from offering these policies.
In the long run, they should expect to make
dollars on each policy sold.
O Avicenna can expect to lose money from offering these policies.…
Chapter 7 Solutions
Bundle: Introduction to Statistics and Data Analysis, 5th + WebAssign Printed Access Card: Peck/Olsen/Devore. 5th Edition, Single-Term
Ch. 7.1 - State whether each of the following random...Ch. 7.1 - Classify each of the following random variables as...Ch. 7.1 - Starting at a particular time, each car entering...Ch. 7.1 - A point is randomly selected from the interior of...Ch. 7.1 - A point is randomly selected on the surface of a...Ch. 7.1 - Prob. 6ECh. 7.1 - A box contains four slips of paper marked 1, 2, 3,...Ch. 7.2 - Let x be the number of courses for which a...Ch. 7.2 - Let y denote the number of broken eggs in a...Ch. 7.2 - Suppose that fund-raisers at a university call...
Ch. 7.2 - Airlines sometimes overbook flights. Suppose that...Ch. 7.2 - Suppose that a computer manufacturer receives...Ch. 7.2 - Simulate the chance experiment described in the...Ch. 7.2 - Of all airline flight requests received by a...Ch. 7.2 - Suppose that 20% of all homeowners in an...Ch. 7.2 - A box contains five slips of paper, marked 1, 1,...Ch. 7.2 - Components coming off an assembly line are either...Ch. 7.2 - A contractor is required by a county planning...Ch. 7.2 - A library subscribes to two different weekly news...Ch. 7.3 - Let x denote the lifetime (in thousands of hours)...Ch. 7.3 - A particular professor never dismisses class...Ch. 7.3 - Refer to the probability distribution given in the...Ch. 7.3 - The article “Modeling Sediment and Water Column...Ch. 7.3 - Let x denote the amount of gravel sold (in tons)...Ch. 7.3 - Let x be the amount of time (in minutes) that a...Ch. 7.3 - Prob. 26ECh. 7.4 - Consider selecting a household in rural Thailand...Ch. 7.4 - Suppose the probability distribution of x, the...Ch. 7.4 - Consider the following probability distribution...Ch. 7.4 - Referring to the previous exercise, use the result...Ch. 7.4 - Exercise 7.8 gave the following probability...Ch. 7.4 - Prob. 32ECh. 7.4 - Prob. 33ECh. 7.4 - Suppose that for a particular computer...Ch. 7.4 - A local television station sells 15-second,...Ch. 7.4 - An author has written a book and submitted it to a...Ch. 7.4 - A grocery store has an express line for customers...Ch. 7.4 - Prob. 38ECh. 7.4 - To assemble a piece of furniture, a wood peg must...Ch. 7.4 - A multiple-choice exam consists of 50 questions....Ch. 7.4 - Prob. 41ECh. 7.4 - Prob. 42ECh. 7.5 - Prob. 43ECh. 7.5 - The Los Angeles Times (December 13, 1992) reported...Ch. 7.5 - Refer to the previous exercise, and suppose that...Ch. 7.5 - Twenty-five percent of the customers of a grocery...Ch. 7.5 - Example 7.18 described a study in which a person...Ch. 7.5 - Prob. 49ECh. 7.5 - A breeder of show dogs is interested in the number...Ch. 7.5 - Prob. 51ECh. 7.5 - Prob. 52ECh. 7.5 - Suppose that the probability is 0.1 that any given...Ch. 7.5 - Suppose that 30% of all automobiles undergoing an...Ch. 7.5 - Suppose that you will take a multiple-choice exam...Ch. 7.5 - Suppose that 20% of the 10,000 signatures on a...Ch. 7.5 - Prob. 57ECh. 7.5 - Prob. 58ECh. 7.5 - Suppose a playlist on an MP3 music player consists...Ch. 7.5 - Sophie is a dog that loves to play catch....Ch. 7.5 - Suppose that 5% of cereal boxes contain a prize...Ch. 7.5 - Prob. 62ECh. 7.6 - Prob. 63ECh. 7.6 - Prob. 64ECh. 7.6 - Prob. 65ECh. 7.6 - Prob. 66ECh. 7.6 - Let z denote a variable that has a standard normal...Ch. 7.6 - Determine the value z that a. Separates the...Ch. 7.6 - Determine the value of z such that a. z and z...Ch. 7.6 - Because P(z 0.44) = 0.67, 67% of all z values are...Ch. 7.6 - Consider the population of all 1-gallon cans of...Ch. 7.6 - Consider babies born in the “normal” range of...Ch. 7.6 - Prob. 73ECh. 7.6 - The paper referenced in Example 7.30 (Estimating...Ch. 7.6 - The size of the left upper chamber of the heart is...Ch. 7.6 - The paper referenced in the previous exercise also...Ch. 7.6 - According to the paper "Commuters' Exposure to...Ch. 7.6 - A machine that cuts corks for wine bottles...Ch. 7.6 - Refer to the previous exercise. Suppose that there...Ch. 7.6 - A gasoline tank for a certain car is designed to...Ch. 7.6 - The time that it takes a randomly selected job...Ch. 7.6 - Suppose that the distribution of typing speed in...Ch. 7.7 - The authors of the paper Development of...Ch. 7.7 - The paper Risk Behavior, Decision Making, and...Ch. 7.7 - Prob. 85ECh. 7.7 - Macular degeneration is the most common cause of...Ch. 7.7 - Prob. 87ECh. 7.7 - Consider the following 10 observations on the...Ch. 7.7 - Prob. 89ECh. 7.7 - Prob. 90ECh. 7.7 - Prob. 91ECh. 7.7 - Prob. 92ECh. 7.7 - The figure on the next page appeared in the paper...Ch. 7.8 - Let x denote the IQ of an individual selected at...Ch. 7.8 - Suppose that the distribution of x = the number of...Ch. 7.8 - The number of vehicles leaving a turnpike at a...Ch. 7.8 - Prob. 97ECh. 7.8 - Prob. 98ECh. 7.8 - Prob. 99ECh. 7.8 - Suppose that 70% of the bicycles sold by a certain...Ch. 7.8 - Suppose that 25% of the fire alarms in a large...Ch. 7.8 - Suppose that 65% of all registered voters in a...Ch. 7.8 - Flashlight bulbs manufactured by a certain company...Ch. 7.8 - A company that manufactures mufflers for cars...Ch. 7 - Let x denote the duration of a randomly selected...Ch. 7 - A soft-drink machine dispenses only regular Coke...Ch. 7 - Prob. 107CRCh. 7 - Refer 10 the probability distribution given in...Ch. 7 - A new batterys voltage may be acceptable (A) or...Ch. 7 - A pizza company advertises that it puts 0.5 pounds...Ch. 7 - Suppose that fuel efficiency for a particular...Ch. 7 - A coin is flipped 25 times. Let x be the number of...Ch. 7 - The probability distribution of x, the number of...Ch. 7 - The amount of time spent by a statistical...Ch. 7 - The lifetime of a certain brand of battery is...Ch. 7 - A machine producing vitamin E capsules operates so...Ch. 7 - The Wall Street Journal (February 15, 1972)...Ch. 7 - The longest run of Ss in the sequence SSFSSSSFFS...Ch. 7 - Prob. 119CRCh. 7 - Four peoplea, b, c, and dare waiting to give...Ch. 7 - Kyle and Lygia are going to play a series of...Ch. 7 - Prob. 122CRCh. 7 - Suppose that your statistics professor tells you...Ch. 7 - Suppose that the pH of soil samples taken from a...Ch. 7 - The lightbulbs used to provide exterior lighting...Ch. 7 - Suppose there are approximately 40,000 travel...Ch. 7 - Prob. 1CRECh. 7 - Prob. 2CRECh. 7 - Prob. 3CRECh. 7 - Prob. 4CRECh. 7 - Prob. 5CRECh. 7 - Prob. 6CRECh. 7 - Two shipping services offer overnight delivery of...Ch. 7 - Prob. 8CRECh. 7 - Prob. 9CRECh. 7 - The Cedar Rapids Gazette (November 20, 1999)...Ch. 7 - Prob. 11CRECh. 7 - The article Men, Women at Odds on Gun Control...Ch. 7 - Suppose that a new Internet company Mumble.com...Ch. 7 - Refer to the previous exercise. Suppose that...Ch. 7 - A chemical supply company currently has in stock...Ch. 7 - Prob. 16CRECh. 7 - An experiment was conducted to investigate whether...Ch. 7 - A machine that produces ball bearings has...Ch. 7 - Consider the variable x = time required for a...Ch. 7 - Prob. 20CRECh. 7 - Prob. 21CRE
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
- The chartered financial analyst (CFA) is a designation earned after taking three annual exams (CFA I,II, and III). The exams are taken in early June. Candidates who pass an exam are eligible to take the exam for the next level in the following year. The pass rates for levels I, II, and III are 0.51, 0.74, and 0.85, respectively. Suppose that 3,000 candidates take the level I exam, 2,500 take the level II exam and 2,000 take the level III exam. A randomly selected candidate who took a CFA exam tells you that he has passed the exam. What is the probability that he took the CFA I exam? Probability =arrow_forwardA friend who lives in Los Angeles makes frequent consultingtrips to Washington, D.C.; 50% of the time shetravels on airline #1, 30% of the time on airline #2, and the remaining 20% of the time on airline #3. For airline#1, flights are late into D.C. 30% of the time and late intoL.A. 10% of the time. For airline #2, these percentagesare 25% and 20%, whereas for airline #3 the percentagesare 40% and 25%. If we learn that on a particular trip shearrived late at exactly one of the two destinations, whatare the posterior probabilities of having flown on airlines#1, #2, and #3? Assume that the chance of a late arrival inL.A. is unaffected by what happens on the flight to D.C.[Hint: From the tip of each first-generation branch on atree diagram, draw three second-generation brancheslabeled, respectively, 0 late, 1 late, and 2 late.]arrow_forwardDuffin House, Higgins Press, and Sickle Publications all went public on the same day recently. John O'Hagan had the opportunity to participate in all three initial public offerings (partly because he and Marjory Duffin are good friends). He made a considerable profit when he sold all of the stock 2 days later on the open market. The following table shows the purchase price and percentage yield on the investment in each company. Purchase Priceper Share ($) Yield (%) Duffin House (DHS) 8 20 Higgins Press (HPR) 10 15 Sickle Publications (SPUB) 15 15 He invested $25,000 in a total of 2,600 shares and made a $4,350 profit from the transactions. How many shares in each company did he purchase? Duffin House shares Higgins Press shares Sickle Publications shares I have x+y+z=2600 8x+10y+15z=25,000 160x+150y+225z=435,000 i keep getting y=506, i know im doing something wrong :(arrow_forward
- A financial advisor frequently holds investment counseling workshops for persons who have responded to his direct mailings. The typical workshop has 10 attendees. In the past, the advisor has found that in 35% of the workshops, nobody signs up for the advanced class that is offered; in 30% of the workshops, one person signs up; in 25% of the workshops, two people sign up; and in 10% of the workshops, three or more people sign up. The advisor is holding a workshop tomorrow. What is the probability that at least two people will sign up for the advanced class? What is the probability that no more than one person will sign up?arrow_forwardAvicenna, an insurance company, offers five-year commercial property insurance policies to small businesses. If the holder of one of these policies experiences property damage in the next five years, the company must pay out $26,500 to the policy holder. Executives at Avicenna are considering offering these policies for $497 each. Suppose that for each holder of a policy there is a 2% chance they will experience property damage in the next five years and a 98% chance they will not.(If necessary, consult a list of formulas.) If the executives at Avicenna know that they will sell many of these policies, should they expect to make or lose money from offering them? How much? To answer, take into account the price of the policy and the expected value of the amount paid out to the holder. Avicenna can expect to make money from offering these policies. In the long run, they should expect to makedollars on each policy sold. Avicenna can…arrow_forwardA General Motors incentive program designed to reduce inventory of certain low-selling models offers a $7,800 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from GM is 18%. If the average sticker price (list price) of these remaining vehicles at your dealership is $21,500, calculate the following. d. If the cars were then sold from the fleets at $1,200 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest tenth of a percent. Do not enter the percent symbol in your answer. %arrow_forward
- Statista reports that the average monthly lease payment for an automobile is falling in the United States, but does this apply to all classes of automobiles?+ Suppose you are interested in whether this trend is true for sport utility vehicles (SUVS). Consider the following hypothetical monthly lease payment data for 33 randomly selected SUVs in 2015 and 46 randomly selected SUVs in 2016. 2015 692 684 550 549 769 602 633 674 781 674 $ 2016 546 576 711 501 770 506 718 589 743 605 530 734 927 661 658 387 446 658 742 556 393 502 433 587 605 562 641 432 498 552 489 697 718 646 764 659 566 749 482 450 588 526 521 478 570 603 627 484 379 565 Interpret the point estimate. Using the price ---Select--- 615 756 394 487 610 421 587 602 628 537 348 587 495 528 614 618 564 558 493 (a) Provide a point estimate (in $) of the difference between the population mean monthly lease payments for the two years. (Use SUVs in 2015 - SUVS in 2016. Round your answer to the nearest cent.) $ the 2015 ---Select---…arrow_forwardA five-year project requires an investment of -112 and has the following cash flows in years 1 through 5, respectively (all cash flows in dollars): 48, 88, 34, 15, and 52. Find the difference between the Cauchy upper bound and the Cauchy lower bound. Write your answer as a percentage with two decimals; e.g., 23.55% but do not write the % sign. (Acceptable error = 0.50%)arrow_forwardA customer has approached a bank for a $50,000 one-year loan at 12% interest. If the bank does not approve the loan, the $50,000 will be invested in bonds that earn a 6% annual return. WIthout further information, the bank feels that there is a 4% chance that the customer will totally default on the loan. If the customer totally defaults, the bank loses $50,000. At a cost of $500, the bank can thoroughly investigate the customer's credit record and supply a favorable or unfavorable recommendation. Past experiences indicates that p(favorable recommendations|customer does not default) =77/96 p(favorable recommendations|customer defaults)= 1/4 How can the bank maximize its expected profits? Find EVSI and EVPI.arrow_forward
- Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system. She knows that 2,500 payroll vouchers have been issued since January 1, 20002018, and her staff doesn't have time to inspect each voucher. So, she randomly selects 53 as a starting point and orders her staff to inspect the 53rd voucher and each voucher at an increment of 100 (53, 153, 253, etc.). Her sample is a ___________. stratified sample simple random sample convenience sample systematic samplearrow_forwardA salon owner estimates the number of clients she is expecting during the festive season to be 20% during Monday to Wednesday, 20% on Thursday and 60% over the weekend. She therefore hires additional staff to assist during the weekend to meet the client demand. She however only observes 30% during Monday to Wednesday, 20% on Thursday and 50% over the weekend in the first week of December. The salon owner is uncertain whether she should reduce the planned staff for the December festive period due the observed trend or not. She conducts a statistical test at α = 0.05 to determine if the observed trend fits the expected trend. Which of the following statements is true? A. The conclusion of the test is that she should not keep the additional staff for the weekend. B. The df for this test is 3. C. The p-value is greater than α. D. The null hypothesis is that the observed trend is different to the expected trend. E. The test statistic is χ2 = 5.33.arrow_forwardMoney markets are markets for Foreign stocks. Consumer automobile loans. U.S. stocks. Short-term debt securities. Long-term bonds.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
Use of ALGEBRA in REAL LIFE; Author: Fast and Easy Maths !;https://www.youtube.com/watch?v=9_PbWFpvkDc;License: Standard YouTube License, CC-BY
Compound Interest Formula Explained, Investment, Monthly & Continuously, Word Problems, Algebra; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=P182Abv3fOk;License: Standard YouTube License, CC-BY
Applications of Algebra (Digit, Age, Work, Clock, Mixture and Rate Problems); Author: EngineerProf PH;https://www.youtube.com/watch?v=Y8aJ_wYCS2g;License: Standard YouTube License, CC-BY