MATH201 - Assignment 1 1. Conde Nast Traveler magazine conducts an annual survey of subscribers in order to determine the best places to stay throughout the world. Table 1.6 shows a sample of nine European hotels (Cond Nast Traveler, January 2000). The price of a standard double room during the hotels high season ranges from $ (lowest price) to $$$$ (highest price). The overall score includes subscribers evaluations of each hotels rooms, service, restaurants, location/atmosphere, and public areas; a higher overall score corresponds to a higher level of satisfaction. (a) How many elements are in this data set? (b) How many variables are in this data set? (c) Which variables are qualitative and which variables are quantitative? (d) What type
(c) Are the data on how travel arrangements are made qualitative or quantitative? 8. A BusinessWeek North American subscriber study collected data from a sample of 2861 subscribers. Fifty-nine percent of the respondents indicated an annual income of $75, 000 or more, and 50% reported having an American Express credit card. (a) What is the population of interest in this study? (b) Is annual income a qualitative or quantitative variable? (c) Is ownership of an American Express card a qualitative or quantitative variable? (d) Does this study involve cross-sectional or time series data? (e) Describe any statistical inferences BusinessWeek might make on the basis of the survey. 9. A survey of 131 investment managers in Barrons Big Money poll revealed the following (Barrons, October 28, 2002): 2

• 43% of managers classified themselves as bullish or very bullish on the stock market. • The average expected return over the next 12 months for equities was 11.2%. • 21% selected health care as the sector most likely to lead the market in the next 12 months. • When asked to estimate how long it would take for technology and telecom stocks to resume sustainable growth, the managers average response was 2.5 years. (a) Cite two descriptive statistics. (b) Make an inference about the population of all investment managers concerning the average return expected on equities over the next 12 months. (c) Make an inference about the length of time it will take for