Chapter 2

Descriptive Statistics: Tabular and

Graphical Presentations

Learning Objectives

1. Learn how to construct and interpret summarization procedures for qualitative data such as:
frequency and relative frequency distributions, bar graphs and pie charts.

2. Learn how to construct and interpret tabular summarization procedures for quantitative data such as:
frequency and relative frequency distributions, cumulative frequency and cumulative relative
frequency distributions.

3. Learn how to construct a dot plot, a histogram, and an ogive as graphical summaries of quantitative
data.

4. Learn how the shape of a data distribution is revealed by a histogram. Learn how to recognize when a
data distribution is negatively skewed, symmetric, and positively skewed.

5. Be able to use and interpret the exploratory data analysis technique of a stem-and-leaf display.

6. Learn how to construct and interpret cross tabulations and scatter diagrams of bivariate data.

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Chapter 2

Solutions:

1.
Class Frequency Relative Frequency
A 60 60/120 = 0.50
B 24 24/120 = 0.20
C 36 36/120 = 0.30
120 1.00

2. a. 1 - (.22 + .18 + .40) = .20

b. .20(200) = 40

c/d.
Class Frequency Percent Frequency
A .22(200) = 44 22
B .18(200) = 36 18
C .40(200) = 80 40
D .20(200) = 40 20
Total 200 100

3. a. 360° x 58/120 = 174°

b. 360° x 42/120 = 126°

c.

No
35.0%

Yes
48.3%

No Opinion
16.7%

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 Descriptive Statistics: Tabular and Graphical Presentations

d.

70
60
50

Frequency
40
30
20
10
0
Yes No No Opinion
Response

4. a. Categorical

b.
Percent
TV Show Frequency Frequency
Law & Order 10 20%
CSI 18 36%
Without a Trace 9 18%
Desperate Housewives 13 26%
Total: 50 100%

20
18
16
14
Frequency

12
10
8
6
4
2
0
L&O CSI Trace Housewives
TV Show

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Chapter 2

L&O
Housewives
20%
26%

Trace
18% CSI
36%

d. CSI had the largest viewing audience. Desperate Housewives was in second place.

5. a.
Name Frequency Relative Frequency Percent Frequency
Brown 7 .14 14%
Davis 6 .12 12%
Johnson 10 .20 20%
Jones 7 .14 14%
Smith 12 .24 24%
Williams 8 .16 16%
50 1.00

b.

14

12

10
Frequency

0
Brown Davis Johnson Jones Smith Williams
Name

c. Brown .14 x 360 = 50.4

Davis .12 x 360 = 43.2
Johnson .20 x 360 = 72.0
Jones .14 x 360 = 50.4
Smith .24 x 360 = 86.4
Williams .16 x 360 = 57.6

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 Descriptive Statistics: Tabular and Graphical Presentations

Williams
Smith
16%
24%

Brown
14%

Jones
14%
Davis
12%
Johnson
20%
d. Most common: Smith, Johnson and Williams

6. a.

Network Frequency Percent Frequency

ABC 15 30%
CBS 17 34%
FOX 1 2%
NBC 17 34%
Total 50 100%

18
16
14
12
Frequency

10
8
6
4
2
0
ABC CBS FOX NBC
Network

b. CBS and NBC are tied, each with 17 of the top rated television shows. ABC is a close third with 15.
The fact that the three networks are so close is surprising. FOX, the newest television network, does
not have the history to compete with the other three networks in term of the top rated shows in
television history.

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Chapter 2

7.
Rating Frequency Relative Frequency
Outstanding 19 0.38
Very Good 13 0.26
Good 10 0.20
Average 6 0.12
Poor 2 0.04
50 1.00

Management should be pleased with these results. 64% of the ratings are very good to outstanding.
84% of the ratings are good or better. Comparing these ratings with previous results will show
whether or not the restaurant is making improvements in its ratings of food quality.

8. a.
Position Frequency Relative Frequency
Pitcher 17 0.309
Catcher 4 0.073
1st Base 5 0.091
2nd Base 4 0.073
3rd Base 2 0.036
Shortstop 5 0.091
Left Field 6 0.109
Center Field 5 0.091
Right Field 7 0.127
55 1.000

b. Pitchers (Almost 31%)

c. 3rd Base (3 - 4%)

d. Right Field (Almost 13%)

e. Infielders (16 or 29.1%) to Outfielders (18 or 32.7%)

9. a. Living Area Live Now Ideal Community

City 32% 24%
Suburb 26% 25%
Small Town 26% 30%
Rural Area 16% 21%
Total 100% 100%

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 Descriptive Statistics: Tabular and Graphical Presentations

b. Where do you live now?

What do you consider the ideal community?

c. Most adults are now living in a city (32%).

d. Most adults consider the ideal community a small town (30%).

e. Percent changes by living area: City -8%, Suburb -1%, Small Town +4%, and Rural Area +5%.
Suburb living is steady, but the trend would be that living in the city would decline while
living in small towns and rural areas would increase.

10. a.
Rating Frequency
Excellent 20
Good 101
Fair 528
Bad 244
Terrible 122
Total 1015

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Chapter 2

b.
Percent
Rating Frequency
Excellent 2
Good 10
Fair 52
Bad 24
Terrible 12
Total 100

c.

d. 24% + 12% = 36% of adults in the United Sates think the Federal Bank is doing a bad or a terrible
job in handling the credit problems. Only 10% + 2% = 12% think the Federal Bank is doing a good
or excellent job.

e. 40% + 10% = 50% of adults in Spain think the European Central Bank is doing a bad or terrible job
in handling the credit problems. Only 4% of adults in Spain think the European Central Bank is
doing a good or excellent job.

Both countries show pessimism and relatively low confidence in how the banks are handling the
credit problems in the financial markets. But in comparing the two countries, adults in Spain show
more concern and more pessimism about the bank’s ability compared to adults in the United States.

11.
Class Frequency Relative Frequency Percent Frequency
12-14 2 0.050 5.0
15-17 8 0.200 20.0
18-20 11 0.275 27.5
21-23 10 0.250 25.0
24-26 9 0.225 22.5
Total 40 1.000 100.0

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 Descriptive Statistics: Tabular and Graphical Presentations

12.
Class Cumulative Frequency Cumulative Relative Frequency
less than or equal to 19 10 .20
less than or equal to 29 24 .48
less than or equal to 39 41 .82
less than or equal to 49 48 .96
less than or equal to 59 50 1.00

13.

18
16
14
12
Frequency

10
8
6
4
2
0
10-19 20-29 30-39 40-49 50-59

1.0

.8

.6

.4

.2

0 10 20 30 40 50 60

14. a.

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Chapter 2

b/c.
Class Frequency Percent Frequency
6.0 - 7.9 4 20
8.0 - 9.9 2 10
10.0 - 11.9 8 40
12.0 - 13.9 3 15
14.0 - 15.9 3 15
20 100
15. a/b.
Waiting Time Frequency Relative Frequency
0-4 4 0.20
5-9 8 0.40
10 - 14 5 0.25
15 - 19 2 0.10
20 - 24 1 0.05
Totals 20 1.00

c/d.

Waiting Time Cumulative Frequency Cumulative Relative Frequency

Less than or equal to 4 4 0.20
Less than or equal to 9 12 0.60
Less than or equal to 14 17 0.85
Less than or equal to 19 19 0.95
Less than or equal to 24 20 1.00

e. 12/20 = 0.60

16. a.
Salary Frequency
150-159 1
160-169 3
170-179 7
180-189 5
190-199 1
200-209 2
210-219 1
Total 20

b.
Percent
Salary Frequency
150-159 5
160-169 15
170-179 35
180-189 25
190-199 5
200-209 10
210-219 5
Total 100

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 Descriptive Statistics: Tabular and Graphical Presentations

c.
Cumulative Percent
Salary Frequency
Less than or equal to 159 5
Less than or equal to 169 20
Less than or equal to 179 55
Less than or equal to 189 80
Less than or equal to 199 85
Less than or equal to 209 95
Less than or equal to 219 100
Total 100

d.

e. There is skewness to the right.

f. (3/20)(100) = 15%

17. a. The highest price stock is for IBM with a price of $107 per share.
The lowest price stock is for Alcoa with a price of $11 per share.

b. A class size of 10 results in 10 classes.

Price per Share Frequency

$10-19 5
$20-29 10
$30-39 3
$40-49 2
$50-59 6
$60-69 2
$70-79 1
$80-89 0
$90-99 0
$100-109 1

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Chapter 2

c.

The general shape of the distribution is skewed to the right. Half of the companies (15) have a price
per share less than $30. A mid-priced stock appears to be in the $30 to $49 range, while the most
frequently priced stock is in the $20 to $29 range.

Five stocks are less than $20 per share (Alcoa, Bank of America, General Electric, Intel and Pfizer).
Four stocks are $60 or more per share (3M, Chevron, ExxonMobil and IBM).

d. A variety of comparisons are possible depending upon when the study is done.

18. a. The lowest holiday spending is $180; the highest $2050.

b.
Spending Frequency Percent
0-249 3 12
250-499 6 24
500-749 5 20
750-999 5 20
1000-1249 3 12
1250-1499 1 4
1500-1759 0 0
1750-1999 1 4
2000-2249 1 4
Total 25 100

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 Descriptive Statistics: Tabular and Graphical Presentations

c. The distribution shows a positive skewness.

7
6
5
Frequency

4
3
2
1
0
0-249 250-499 500-749 750-999 1000- 1250- 1500- 1750- 2000-
1249 1499 1759 1999 2249
Holiday Spending

d. The holiday spending ranges from $0 to less than $2250. The majority of the spending is between
$250 and $1000 with 16 of the 25 customers, 64%, in this range. The middle or average spending is around
$750 per customer. The distribution has a positive skewness with two consumers above $1750. One consumer
is above $2000.

19. a/b/c/d.

Class Relative Cumulative Cumulative Relative

(Minutes) Frequency Frequency Frequency Frequency
1-5 12 .60 12 .60
6-10 3 .15 15 .75
11-15 2 .10 17 .85
16-20 1 .05 18 .90
21-25 1 .05 19 .95
26-30 0 .00 19 .95
31-34 1 .05 20 1.00

e.

0.8

0.6

0.4

0.2

0
0 5 10 15 20 25 30 35
Time

f. 60% of office workers spend 5 minutes or less on unsolicited email and spam. However, 25% of
office workers spend more than 10 minutes per day on this task.

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Chapter 2

20. a.
Off-Course Income Percent
($1000s) Frequency Frequency
0-4,999 30 60
5,000-9,999 9 18
10,000-14,999 4 8
15,000-19,999 0 0
20,000-24,999 3 6
25,000-29,999 2 4
30,000-34,999 0 0
35000-39,999 0 0
40,000-44,999 1 2
45,000-49,999 0 0
Over 50,000 1 2
Total 50 100

b. Histogram of Off-Course Income

Note: The first class is labeled 5000 and provides the golfers who had an off-course income in the
range 0 to 4999 or less than 5000. These were the golfers with less than $5 million in off-course
income.

c. Off-course income is skewed to the right. Only Tiger Woods earns over $50 million.

d. Considering the top 50 golfers, the majority (60%) earn less than $5 million in off-course income per
year. 60% + 18% = 78% earn less than $10 million. Five golfers (10%) earn between $20 million
and $30 million. Tiger Woods with $99.8 million and Phil Mickelson with $40.2 million in off-
course income are clearly the leaders in this income category.

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 Descriptive Statistics: Tabular and Graphical Presentations

21. a/b.
Computer Relative
Usage (Hours) Frequency Frequency
0.0 - 2.9 5 0.10
3.0 - 5.9 28 0.56
6.0 - 8.9 8 0.16
9.0 - 11.9 6 0.12
12.0 - 14.9 3 0.06
Total 50 1.00

c.

30

25

20
Frequency

15
10

5
0
0-2.9 3-5.9 6-8.9 9-11.9 12-14.9
Computer Usage (Hours)

d.

e. The majority of the computer users are in the 3 to 6 hour range. Usage is somewhat skewed toward
the right with 3 users in the 12 to 14.9 hour range.

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Chapter 2

22.
5 7 8
6 4 5 8
7 0 2 2 5 5 6 8
8 0 2 3 5

23. Leaf Unit = .1

6 3
7 5 5 7
8 1 3 4 8
9 3 6
10 0 4 5
11 3

24. Leaf Unit = 10

11 6
12 0 2
13 0 6 7
14 2 2 7
15 5
16 0 2 8
17 0 2 3
25.
9 8 9
10 2 4 6 6
11 4 5 7 8 8 9
12 2 4 5 7
13 1 2
14 4
15 1

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 Descriptive Statistics: Tabular and Graphical Presentations

26. a. 100 shares at $50 per share

1 0 3 7 7
2 4 5 5
3 0 0 5 5 9
4 0 0 0 5 5 8
5 0 0 0 4 5 5

This stem-and-leaf display shows that the trading prices are closely grouped together. Rotating the
stem-and-leaf display counter clockwise shows a histogram that is slightly skewed to the left but is
roughly symmetric.

b. 500 shares traded online at $50 per share.

0 5 7
1 0 1 1 3 4
1 5 5 5 8
2 0 0 0 0 0 0
2 5 5
3 0 0 0
3 6
4
4
5
5
6 3

This stretched stem-and-leaf display shows that the distribution of online trading prices for most of
the brokers for 500 shares are lower than the trading prices for broker assisted trades of 100 shares.
There are a couple of outliers. York Securities charges $36 for an online trade and Investors National
charges much more than the other brokers: $62.50 for an online trade.

27. a.
7 5 9
8 3 6
9 5 6 8
10 0 4 4
11 1 5
12
13 7
14 5 5

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Chapter 2

b. Observations such as the following can be made using the stem-and-leaf display.
 The daily rate varies from $75 to $145

 Typical mid-priced daily rates are $95 to $115 with the average daily rate around $100.

 A daily rate in excess of $115 should be considered relatively high. High daily rates of $137 and
$145 were found at three ski resorts.

28. a.
2 1 4
2 6 7
3 0 1 1 1 2 3
3 5 6 7 7
4 0 0 3 3 3 3 3 4 4
4 6 6 7 9
5 0 0 0 2 2
5 5 6 7 9
6 1 4
6 6
7 2

b. Most frequent age group: 40-44 with 9 runners

c. 43 was the most frequent age with 5 runners

d. 4/40 = 10% of the runners were “20-something.” With only 10% of the registrants “20-something,”
the article pointed out that surprisingly few registrants were in this age group. One suggested reason
was that “20-somethings” don’t have the time to train for a 13.1 mile race. For “20-somethings,”
college, starting careers, and starting families may take priority over training for long distance races.

29. a.
y

1 2 Total

A 5 0 5

x B 11 2 13

C 2 10 12

Total 18 12 30

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 Descriptive Statistics: Tabular and Graphical Presentations

b.
y

1 2 Total

A 100.0 0.0 100.0

x B 84.6 15.4 100.0

C 16.7 83.3 100.0

c.
y

1 2

A 27.8 0.0

x B 61.1 16.7

C 11.1 83.3

Total 100.0 100.0

d. Category A values for x are always associated with category 1 values for y. Category B values for x
are usually associated with category 1 values for y. Category C values for x are usually associated
with category 2 values for y.

30. a.
56

40

24

8
y

-8

-24

-40
-40 -30 -20 -10 0 10 20 30 40
x

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Chapter 2

b. There is a negative relationship between x and y; y decreases as x increases.

31. a. Row Percentages:

Household Income ($1000s)

Education Level Under 25 25.0-49.9 50.0-74.9 75.0-99.9 100 or Total
More
Not H.S. Graduate 42.23 34.73 13.94 5.41 3.68 100.00
H.S. Graduate 22.25 31.00 22.75 11.93 12.07 100.00
Some College 13.99 26.20 23.31 16.20 20.30 100.00
Bachelor's Degree 6.42 15.19 20.66 18.72 39.02 100.00
Beyond Bach. Deg. 3.71 10.60 16.29 15.87 53.54 100.00
Total 17.77 25.08 20.64 13.90 22.62 100.00

There are six percent frequency distributions in this table with row percentages. The first five give
the percent frequency distribution of income for each educational level. The total row provides an
overall percent frequency distribution for household income.

The second row, labeled H.S. Graduate, is the percent frequency distribution for households headed
by high school graduates. The fourth row, labeled Bachelor's Degree, is the percent frequency
distribution for households headed by bachelor's degree recipients.

b. The percentage of households headed by high school graduates earning $75,000 or more is 11.93% +
12.07 = 24.00%. The percent of households headed by bachelor's degree recipients earning $75,000
or more is 18.72% + 39.02% = 57.74%.

c. The percent frequency histogram for high school graduates.

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 Descriptive Statistics: Tabular and Graphical Presentations

The percent frequency distribution for college graduates with a bachelor’s degree.

The histograms show that households headed by a college graduate with a bachelor’s degree earn
more than households headed by a high school graduate. Yes, there is a positive relationship between
education level and income.

32. a. Column Percentages:

Household Income ($1000s)

Education Level Under 25 25.0-49.9 50.0-74.9 75.0-99.9 100 or Total
More
Not H.S. Graduate 32.10 18.71 9.13 5.26 2.20 13.51
H.S. Graduate 37.52 37.05 33.04 25.73 16.00 29.97
Some College 21.42 28.44 30.74 31.71 24.43 27.21
Bachelor's Degree 6.75 11.33 18.72 25.19 32.26 18.70
Beyond Bach. Deg. 2.21 4.48 8.37 12.11 25.11 10.61
Total 100.00 100.00 100.00 100.00 100.00 100.00

There are six percent frequency distributions in this table of column percentages. The first five
columns give the percent frequency distributions for each income level. The percent frequency
distribution in the "Total" column gives the overall percent frequency distributions for educational
level. From that percent frequency distribution we see that 13.51% of the heads of households did
not graduate from high school.

b. The column percentages show that 25.11% of households earning $100,000 or more were headed by
persons having schooling beyond a bachelor's degree. The row percentages show that 53.54% of the
households headed by persons with schooling beyond a bachelor's degree earned $100,000 or more.
These percentages are different because they came from different percent frequency distributions and
provide different kinds of information.

c. Compare the "under 25" percent frequency distributions to the "Total" percent frequency
distributions. We see that for this low income level the percentage with lower levels of education is
higher than for the overall population and the percentage with higher levels of education is lower
than for the overall population.

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Chapter 2

Compare the "100 or more" percent frequency distribution to "Total" percent frequency distribution.
We see that for this high income level the percentage with lower levels of education is lower than for
the overall population and the percentage with higher levels of education is higher than for the
overall population.

From the comparisons it is clear that there is a positive relationship between household incomes and
the education level of the head of the household.

33. a. The crosstabulation of condition of the greens by gender is below.

Green Condition
Gender Too Fast Fine Total
Male 35 65 100
Female 40 60 100
Total 75 125 200

The female golfers have the highest percentage saying the greens are too fast: 40/100 = 40%. Male
golfers have 35/100 = 35% saying the greens are too fast.

b. Among low handicap golfers, 1/10 = 10% of the women think the greens are too fast and 10/50 =
20% of the men think the greens are too fast. So, for the low handicappers, the men show a higher
percentage who think the greens are too fast.

c. Among the higher handicap golfers, 39/51 = 43% of the woman think the greens are too fast and
25/50 = 50% of the men think the greens are too fast. So, for the higher handicap golfers, the men
show a higher percentage who think the greens are too fast.

d. This is an example of Simpson's Paradox. At each handicap level a smaller percentage of the women
think the greens are too fast. But, when the crosstabulations are aggregated, the result is reversed and
we find a higher percentage of women who think the greens are too fast.

The hidden variable explaining the reversal is handicap level. Fewer people with low handicaps think
the greens are too fast, and there are more men with low handicaps than women.

34. a.

5 Year Average Return

.
Fund Type 0-9.99 10-19.99 20-29.99 30-39.99 40-49.99 50-59.99 Total
DE 1 25 1 0 0 0 27
FI 9 1 0 0 0 0 10
IE 0 2 3 2 0 1 8
Total 10 28 4 2 0 1 45

b. 5 Year Average Return Frequency

0-9.99 10
10-19.99 28
20-29.99 4
30-39.99 2
40-49.99 0
50-59.99 1
Total 45
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 Descriptive Statistics: Tabular and Graphical Presentations

c.
Fund Type Frequency
DE 27
FI 10
IE 8
Total 45

d. The right margin shows the frequency distribution for the fund type variable and the bottom margin
shows the frequency distribution for the 5 year average return variable.

e. Higher returns are associated with International Equity funds and lower returns are associated with
Fixed Income funds.

35. a.
Expense Ratio (%)
Fund Type 0-0.24 0.25-0.49 0.50-0.74 0.75-0.99 1.00-1.24 1.25-1.49 Total
DE 1 1 3 5 10 7 27
FI 2 4 3 0 0 1 10
IE 0 0 1 2 4 1 8
Total 3 5 7 7 14 9 45

b.
Expense Ratio (%) Frequency Percent
0-0.24 3 6.7
0.25-0.49 5 11.1
0.50-0.74 7 15.6
0.75-0.99 7 15.6
1.00-1.24 14 31.0
1.25-1.49 9 20.0
Total 45 100

c. Higher expense ratios are associated with Domestic Equity funds and lower expense ratios are
associated with Fixed Income fund

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Chapter 2

36. a. The scatter diagram is shown below:

b. There is some indication that higher 5-year returns are associated with higher net asset values.

37. a.
Highway MPG
Size 15-19 20-24 25-29 30-34 35-39 Total
Compact 26 76 9 0 0 111
Midsize 0 0 85 46 4 135
Large 0 0 65 0 0 65
Total 26 76 159 46 4 311

b. Higher fuel efficiencies are associated with midsize cars. In fact, for these data compact cars had the
lowest fuel efficiencies.

c.
City MPG
Drive 5-9 10-14 15-19 20-24 25-29 30-35 Total
4 0 10 51 8 0 0 69
F 0 2 80 74 9 2 167
R 1 23 50 1 0 0 75
Total 1 35 181 83 9 2 311

d. Higher fuel efficiencies are associated with front wheel drive cars. Rear wheel drive cars had
somewhat lower fuel efficiencies than four wheel drive cars.

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 Descriptive Statistics: Tabular and Graphical Presentations

e.
City MPG
Fuel Type 5-9 10-14 15-19 20-24 25-29 30-35 Total
P 1 33 105 18 0 0 157
R 0 2 76 65 9 2 154
Total 1 35 181 83 9 2 311

f. Higher fuel efficiencies are associated with cars that use regular fuel.

38. a.
Highway MPG
Displace 15-19 20-24 25-29 30-34 35-39 Total
1.0-2.9 0 6 72 46 4 128
3.0-4.9 3 56 86 0 0 145
5.0-6.9 23 14 1 0 0 38
Total 26 76 159 46 4 311

b. Higher fuel efficiencies are associated with smaller displacement engines and lower fuel efficiencies
are associated with larger displacement engines.

c. The scatter diagram is shown below:

d. The scatter diagram shows that lower fuel efficiencies are associated with larger displacement
engines.

e. It is easier to see the relationship between the two variables using the scatter diagram.

2 - 25
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Chapter 2

39. a.
Major Frequency Percent Frequency
Arts/Humanities 7 10.9
Business Administration 13 20.3
Engineering 11 17.2
Professional 6 9.4
Social Science 5 7.8
Other 22 34.4
Total 64 100.0

b.

25

20
Frequency

15

10

0
Arts BA Engr Prof Soc Sci Other
College Major

c. 34.4% select another major. So 100% - 34.4% = 65.6% select one of the five most popular majors.

d. Business Administration is the most popular major selected by incoming freshmen, 20.3%

40. a. Frequency distribution and percent frequency distribution of sales by division.

Division Frequency Percent

Buick 10 5
Cadillac 10 5
Chevrolet 122 61
GMC 24 12
Hummer 2 1
Pontiac 18 9
Saab 2 1
Saturn 12 6
Total 200 100

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 Descriptive Statistics: Tabular and Graphical Presentations

b.

c. Chevrolet is General Motors leading division with 61% of the vehicles sold. This is considered
General Motors most important division.

d. Based on the percentages shown, the Hummer division at 1% and Saab division at 1% would be good
candidates for General Motors to consider discontinuing. Chevrolet at 61% and GMC at 12%
account for 73% of the total vehicles sold. General Motors would be almost certain to maintain these
two divisions.

Pontiac remains a solid contributor with 9% of vehicles sold. At the time it was doubtful than
General Motors would be able to maintain all three of the other divisions. Some elimination or
merging of divisions was anticipated for Saturn 6%, Buick 5%, and Cadillac 5%.

41. a.
Yield% Frequency Percent Frequency
0.0-0.9 4 13.3
1.0-1.9 2 6.7
2.0-2.9 6 20.0
3.0-3.9 10 33.3
4.0-4.9 3 10.0
5.0-5.9 2 6.7
6.0-6.9 2 6.7
7.0-7.9 0 0.0
8.0-8.9 0 0.0
9.0-9.9 1 3.3
Total 30 100.0

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Chapter 2

b.

c. The distribution is skewed to the right.

d. Dividend yield ranges from 0% to over 9%. The most frequent range is 3.0% to 3.9%. Average
dividend yields looks to be between 3% and 4%. Over 50% of the companies (16) pay from 2.0 % to
3.9%. Five companies (AT&T, DuPont, General Electric, Merck, and Verizon) pay 5.0% or more.
Four companies (Bank of America, Cisco Systems, Hewlett-Packard, and J.P. Morgan Chase) pay
less than 1%.

e. General Electric had an unusually high dividend yield of 9.2%. 500 shares at $14 per share is an
investment of 500($14) = $7,000. A 9.2% dividend yield provides .092(7,000) = $644 of dividend
income per year.

42. a.
Class Frequency
800-999 1
1000-1199 3
1200-1399 6
1400-1599 10
1600-1799 7
1800-1999 2
2000-2199 1
Total 30

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 Descriptive Statistics: Tabular and Graphical Presentations

b. The distribution if nearly symmetrical. It could be approximated by a bell-shaped curve.

c. 10 of 30 or 33% of the scores are between 1400 and 1599. The average SAT score looks to be a
little over 1500. Scores below 800 or above 2200 are unusual.

43. a.
State Frequency
Arizona 2
California 11
Florida 15
Georgia 2
Louisiana 8
Michigan 2
Minnesota 1
Texas 2
Total 43

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Chapter 2

b. Florida has had the most Super Bowl with 15, or 15/43(100) = 35%. Florida and California have
been the states with the most Super Bowls. A total of 15 + 11 = 26, or 26/43(100) = 60%. Only 3
Super Bowls, or 3/43(100) = 7%, have been played in the cold weather states of Michigan and
Minnesota.

c.
0 1333334444
0 57779
1 00012234
1 5677778999
2 123
2 577
3 2
3 56
4
4 5

d. The most frequent winning points have been 0 to 4 points and 15 to 19 points. Both occurred in 10
Super Bowls. There were 10 close games with a margin of victory less than 5 points, 10/43(100) =
23% of the Super Bowls. There have also be 10 games, 23%, with a margin of victory more than 20
points.

e. The closest games was the 25th Super Bowl with a 1 point margin. It was played in Florida. The
largest margin of victory occurred one year earlier in the 24 th Super Bowl. It had a 45 point margin
and was played in Louisiana. More detailed information not available from the text information.

25th Super Bowl: 1991 New York Giants 20 Buffalo Bills 19, Tampa Stadium, Tampa, FL
24th Super Bowl: 1990 San Francisco 49ers 55 Denver Broncos 10, Superdome, New Orleans, LA

Note: The data set SuperBowl contains a list of the teams and the final scores of the 43 Super Bowls.
This data set can be used in Chapter 2 and Chapter 3 to provide interesting data summaries about the
points scored by the winning team and the points scored by the losing team in the Super Bowl. For
example, using the median scores, the median Super Bowl score was 28 to 13.

2 - 30
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 Descriptive Statistics: Tabular and Graphical Presentations

44. a.
Population Frequency Percent Frequency
0.0-2.4 17 34
2.5-4.9 12 24
5.0-7.4 9 18
7.5-9.9 4 8
10.0-12.4 3 6
12.5-14.9 1 2
15.0-17.4 1 2
17.5-19.9 1 2
20.0-22.4 0 0
22.5-24.9 1 2
25.0-27.4 0 0
27.5-29.9 0 0
30.0-32.4 0 0
32.5-34.9 0 0
35.0-37.4 1 2
Total 50 100

b.

18
16
14
12
Frequency

10
8
6
4
2
0
4

1 0 .9

1 2 .4

1 5 .9

1 7 .4

2 0 .9

2 2 .4

2 5 .9

2 7 .4

3 0 .9

3 2 .4

3 5 .9

4
2.

4.

7.

7.
9

4
0-

5-

0-

5-

-1

-1

-1

-1

-2

-2

-2

-2

-3

-3

-3
0.

2.

5.

7.

.0

.5

.0

.5

.0

.5

.0

.5

.0

.5

.0

Population (millions)

c. High positive skewness.

d. 17 states (34%) have a population less than 2.5 million. Over half of the states have population less
than 5 million (29 states – 58%). Only eight states have a population greater than 10 million
(California, Florida, Illinois, Michigan, New York, Ohio, Pennsylvania and Texas). The largest state
is California (35.9 million) and the smallest state is Wyoming (500 thousand).

2 - 31
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Chapter 2

45. a.
1 7 7 8
2 1
3 4
4
5
6
7 2 7
8 6
9
10
11 6
12 7

b. Smallest roughly $3 billion or less; medium $7-$8 billion; largest $11-$12 billion.

c. CVS ($12,700) and Walgreens ($11,660)

46. a& b.
High Temperature Low Temperature

1 1 1
2 2 1 2 6 7 9
3 0 3 1 5 6 8 9
4 1 2 2 5 4 0 3 3 6 7
5 2 4 5 5 0 0 4
6 0 0 0 1 2 2 5 6 8 6 5
7 0 7 7
8 4 8

c. The most frequent range for temperature was in the 60s (9 of 20). Only one low temperature was
above 54. High temperatures were mostly 41 to 68, while low temperatures were mostly 21 to 47.

Low was 11; High was 84.

2 - 32
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 Descriptive Statistics: Tabular and Graphical Presentations

d.
High Temp Frequency Low Temp Frequency
10-19 0 10-19 1
20-29 0 20-29 5
30-39 1 30-39 5
40-49 4 40-49 5
50-59 3 50-59 3
60-69 9 60-69 1
70-79 2 70-79 0
80-89 1 80-89 0
Total 20 Total 20

47. a.

70

60
Low Temperature

50

40

30

20

10

0
0 10 20 30 40 50 60 70 80 90
High Temperature

b. There is a positive relationship between high temperature and low temperature for these cities. As
one goes up so does the other.

48. a. Level of Support Percent Frequency

Strongly favor 1617/5372 = 30.10
Favor more than oppose 1871/5372 = 34.83
Oppose more than favor 1135/5372 = 21.13
Strongly oppose 749/5372 = 13.94
Total 100.00

The results show support for a higher tax. Note that 30.10% + 34.83% = 64.93% of the respondents
said they strongly favor or favor more than oppose a higher tax on higher carbon emission cars.

b. Country Percent Frequency

Great Britain 1087/5372 = 20.2
Italy 1045/5372 = 19.5
Spain 1109/5372 = 20.6
Germany 1111/5372 = 20.7
United States 1020/5372 = 19.0
Total 100.0

The poll had an approximately equal representation of the five countries with roughly 20% of the
poll respondents coming from each country.
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Chapter 2

c. Converting the entries in the crosstabulation into column percentages provides the following results:

Country
Support Great Britain Italy Spain Germany United States
Strongly favor 31.00 31.96 45.99 19.98 20.98
Favor more than oppose 34.04 39.04 32.01 36.99 32.06
Oppose more than favor 23.00 17.99 13.98 24.03 26.96
Strongly oppose 11.96 11.01 8.03 18.99 20.00
Total 100.00 100.00 100.00 100.00 100.00

Considering the percentage of respondents who favor the higher tax by either saying “strongly favor”
or “favor more than oppose”, we have the following favorable support for the higher tax in each
country.

Great Britain 31.00 + 34.04 = 65.04%

Italy 31.96 + 39.04 = 71.00%
Spain 45.99 + 32.01 = 78.00%
Germany 19.98 + 36.99 = 56.97%
United States 20.98 + 32.06 = 53.04%

More that 50% of the respondents favor the higher tax for the higher carbon emission cars in all five
countries. But the support for the higher tax is greater in the European countries. Spain and Italy
have the greatest support for the higher tax with 78% and 71% respectively. Germany is close in
views to the United States with 56.97% expressing favor for the higher tax. United States shows the
lowest level of support for the higher tax with 53.04%. Note that United States ranks first in terms of
the response “strongly oppose” the higher tax with 20% of the respondents providing this opinion.

49. a. The batting averages for the junior and senior years for each player are as follows:

Junior year:
Allison Fealey 15/40 = .375
Emily Janson 70/200 = .350

Senior year:
Allison Fealey 75/250 = .300
Emily Janson 35/120 = .292

Because Allison Fealey had the higher batting average in both her junior year and senior year,
Allison Fealey should receive the scholarship offer.

b. The combined or aggregated two-year crosstabulation is as follows:

Combined 2-Year Batting

Outcome A. Fealey E. Jansen
Hit 90 105
No Hit 200 215
Total At Bats 290 320

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 Descriptive Statistics: Tabular and Graphical Presentations

Based on this crosstabulation, the batting average for each player is as follows:

Combined Junior/Senior Years

Allison Fealey 90/290 = .310
Emily Janson 105/320 = .328

Because Emily Janson has the higher batting average over the combined junior and senior years,
Emily Janson should receive the scholarship offer.

c. The recommendations in parts (a) and (b) are not consistent. This is an example of Simpson’s
Paradox. It shows that in interpreting the results based upon separate or un-aggregated
crosstabulations, the conclusion can be reversed when the crosstabulations are grouped or
aggregated. When Simpson’s Paradox is present, the decision maker will have to decide whether the
un-aggregated or the aggregated form of the crosstabulation is the most helpful in identifying the
desired conclusion. Note: The authors prefer the recommendation to offer the scholarship to Emily
Janson because it is based upon the aggregated performance for both players over a larger number of
at-bats. But this is a judgment or personal preference decision. Others may prefer the conclusion
based on using the un-aggregated approach in part (a).

50. a.
Fuel Type
Year Constructed Elec Nat. Gas Oil Propane Other Total
1973 or before 40 183 12 5 7 247
1974-1979 24 26 2 2 0 54
1980-1986 37 38 1 0 6 82
1987-1991 48 70 2 0 1 121
Total 149 317 17 7 14 504

b.
Year Constructed Frequency Fuel Type Frequency
1973 or before 247 Electricity 149
1974-1979 54 Nat. Gas 317
1980-1986 82 Oil 17
1987-1991 121 Propane 7
Total 504 Other 14
Total 504

c. Crosstabulation of Column Percentages

Fuel Type
Year Constructed Elec Nat. Gas Oil Propane Other
1973 or before 26.9 57.7 70.5 71.4 50.0
1974-1979 16.1 8.2 11.8 28.6 0.0
1980-1986 24.8 12.0 5.9 0.0 42.9
1987-1991 32.2 22.1 11.8 0.0 7.1
Total 100.0 100.0 100.0 100.0 100.0

2 - 35
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 Chapter 2

d. Crosstabulation of row percentages.

Fuel Type
Year Constructed Elec Nat. Gas Oil Propane Other Total
1973 or before 16.2 74.1 4.9 2.0 2.8 100.0
1974-1979 44.5 48.1 3.7 3.7 0.0 100.0
1980-1986 45.1 46.4 1.2 0.0 7.3 100.0
1987-1991 39.7 57.8 1.7 0.0 0.8 100.0

e. Observations from the column percentages crosstabulation

For those buildings using electricity, the percentage has not changed greatly over the years. For the
buildings using natural gas, the majority were constructed in 1973 or before; the second largest
percentage was constructed in 1987-1991. Most of the buildings using oil were constructed in 1973
or before. All of the buildings using propane are older.

Observations from the row percentages crosstabulation

Most of the buildings in the CG&E service area use electricity or natural gas. In the period 1973 or
before most used natural gas. From 1974-1986, it is fairly evenly divided between electricity and
natural gas. Since 1987 almost all new buildings are using electricity or natural gas with natural gas
being the clear leader.

51. a. Crosstabulation for stockholder's equity and profit.

Profits ($000)
Stockholders' Equity ($000) 0-200 200-400 400-600 600-800 800-1000 1000-1200 Total
0-1200 10 1 1 12
1200-2400 4 10 2 16
2400-3600 4 3 3 1 1 1 13
3600-4800 1 2 3
4800-6000 2 3 1 6
Total 18 16 6 2 4 4 50

b. Crosstabulation of Row Percentages.

Profits ($000)
Stockholders' Equity ($1000s) 0-200 200-400 400-600 600-800 800-1000 1000-1200 Total
0-1200 83.33 8.33 0.00 0.00 0.00 8.33 100
1200-2400 25.00 62.50 0.00 0.00 12.50 0.00 100
2400-3600 30.77 23.08 23.08 7.69 7.69 7.69 100
3600-4800 0.00 0.00 0.00 33.33 66.67 100
4800-6000 0.00 33.33 50.00 16.67 0.00 0.00 100

c. Stockholder's equity and profit seem to be related. As profit goes up, stockholder's equity goes up.
The relationship, however, is not very strong.

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 Descriptive Statistics: Tabular and Graphical Presentations

52. a. Crosstabulation of market value and profit.

Profit ($1000s)
Market Value ($1000s) 0-300 300-600 600-900 900-1200 Total
0-8000 23 4 27
8000-16000 4 4 2 2 12
16000-24000 2 1 1 4
24000-32000 1 2 1 4
32000-40000 2 1 3
Total 27 13 6 4 50

b. Crosstabulation of Row Percentages.

Profit ($1000s)
Market Value ($1000s) 0-300 300-600 600-900 900-1200 Total
0-8000 85.19 14.81 0.00 0.00 100
8000-16000 33.33 33.33 16.67 16.67 100
16000-24000 0.00 50.00 25.00 25.00 100
24000-32000 0.00 25.00 50.00 25.00 100
32000-40000 0.00 66.67 33.33 0.00 100

c. There appears to be a positive relationship between Profit and Market Value. As profit goes up,
Market Value goes up.

53. a. Scatter diagram of Profit vs. Stockholders’ Equity.

1400.0

1200.0

1000.0
Profit ($1000s)

800.0

600.0

400.0

200.0

0.0
0.0 1000.0 2000.0 3000.0 4000.0 5000.0 6000.0 7000.0
Stockholders' Equity ($1000s)

b. Profit and Stockholders’ Equity appear to be positively related.

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Chapter 2

54. a. Scatter diagram of Market Value and Stockholders’ Equity.

45000.0

40000.0

35000.0
Market Value ($1000s)

30000.0

25000.0

20000.0

15000.0

10000.0

5000.0

0.0
0.0 1000.0 2000.0 3000.0 4000.0 5000.0 6000.0 7000.0
Stockholders' Equity ($1000s)

b. There is a positive relationship between Market Value and Stockholders’ Equity.

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