Reference no: EM13911578
1. Discuss how a normal probability plot is constructed.
2. If a normal probability plot has the appearance of a straight line, what should we conclude?
METHODS AND APPLICATIONS
3. Consider the sample of 12 incomes given in Example 3.2 (page 105).
a. Sort the income data from smallest to largest, and compute i/(n + 1) for each observation.
b. Compute the standardized normal quantile value Oi for each observation.
c. Graph the normal probability plot for the salary data and interpret this plot. Does the plot indicate that the data are skewed? Explain. DS
Incomes
4. Consider the 20 DVD satisfaction ratings given on page 123. Construct a normal probability plot for these data and interpret the plot.
5. A normal probability plot can be constructed using MINITAB. Use the selections Stat : Basic Statistics : Normality test, and select the data to be analyzed. Although the MINITAB plot is slightly different from the plot outlined in this section, its interpretation is the same. Use MINITAB to construct a normal probability plot of the gas mileage data in Table 3.1 (page 103). Interpret the plot.
Text Book: Business Statics in Practice By BOWERMAN.
|
Accounting for capital leases versus purchased assets
: Accounting for capital leases versus purchased assets Ambrose Co. has the option of purchasing a new delivery truck for $42,300 in cash or leasing the truck for $9,150 per year, payable at the end of each year for six years.
|
|
Project is expected to create operating cash flows
: A project is expected to create operating cash flows of $22,500 a year for three years. The initial cost of the fixed assets is $50,000. These assets will be worthless at the end of the project. An additional $3,000 of net working capital will be req..
|
|
Face value zero-coupon bonds-number of bonds the firm
: The MerryWeather Firm wants to raise $22 million to expand its business. To accomplish this, the firm plans to sell 20-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 5 percent. What is the minimum number of bonds the fir..
|
|
What is the slope of charlie budget line
: What is Charlie's utility if he consumes the bundle (20, 10)? On the graph, draw his indifference curve through (20,10). Does this indifference curve cross Charlie's budget line, just touch it, or never touch it?
|
|
Discuss how a normal probability plot is constructed
: Discuss how a normal probability plot is constructed. If a normal probability plot has the appearance of a straight line, what should we conclude?
|
|
What is present value of these cash flows-present value
: Seaborn Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 17 percent?
|
|
About the what is the present value
: An investment will pay you $20,000 in 7 years. The appropriate discount rate is 7 percent compounded daily. What is the present value?
|
|
What is the payback period of the ice cream cart
: It will cost $4,000 to acquire a small ice cream cart. Cart sales are expected to be $3,200 a year for five years. After the five years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the pa..
|
|
Shareholders as the annual dividend
: Michael's, Inc. just paid $1.85 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.10 percent. If you require a rate of return of 8.3 percent, how much are you willing to pa..
|