Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 2: Q152SE (page 143)

U.S. business bankruptcies.The American Bankruptcy Institute and the National Bankruptcy Research Center monitor the number of business bankruptcy filings each quarter. The table below lists the number of business bankruptcy filings for each quarter of a recent 2-year period. FILING

a.Explain why the data in the table represent time series data.

b.Construct a time series plot for the quarterly number of bankruptcy filings.

c.Do you detect a trend in the time series plot? Explain.

Year

Quarter

Number of

Bankruptcies

2011

1

2

3

4

12,376

12,304

11,705

11,149

2012

1

2

3

4

10,998

10,374

9,248

9,231

Short Answer

Expert verified
  1. Data collected over a period of time is called time-series data.



C. Downward sloping trend

Step by step solution

01

Explaining why the data is a time series

Data that is spread over a period of time is called time-series data. For example, data collected every month on a person’s weight from birth to 18 years is time-series data.

The data above is a time series because the data on the number of bankruptcy filings is collected quarterly for 2 years. So the period of time over which the data is spread is 2 years.

02

Plotting the time series data

03

Detecting a trend

The most visible observation is that over a period of 2 years, the number of bankruptcy filings has declined. Therefore, there is a downward trend.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Performance of stock screeners.Investment companies provide their clients with automated tools—called stock screeners—to help them select a portfolio of stocks to invest in. The American Association of Individual Investors (AAII) provides statistics on stock screeners at its Website, www.aaii.com. The next table lists the annualized percentage return on investment (as compared to the Standard & Poor’s 500 Index) for 13 randomly selected stock screeners. (Note:A negative annualized return reflects a stock portfolio that performed worse than the S&P 500.)

(9.0, -.1, -1.6, 14.6, 16.0, 7.7, 19.9, 9.8, 3.2, 24.8, 17.6, 10.7, 9.1)

a.Compute the mean for the data set. Interpret its value.

b.Compute the median for the data set. Interpret its value.

For each of the following data sets, compute xbar, s2, and s. If appropriate, specify the units in which your answers are expressed.

a.4, 6, 6, 5, 6, 7

b.- \(1, \)4, - \(3, \)0, - \(3, - \)6

c.3/5 %, 4/5 %, 2/5 %, 1/5 %, 1/16 %

d.Calculate the range of each data set in parts a–c.

Question: In business, do nice guys really finish last?Do “nice guys finish last” in the competitive corporate world? In a study published in Nature(March 20, 2008), college students repeatedly played a version of the game “prisoner’s dilemma,” where competitors choose cooperation, defection, or costly punishment. (Cooperation meant paying 1 unit for the opponent to receive 2 units; defection meant gaining 1 unit at a cost of 1 unit for the opponent, and punishment meant paying 1 unit for the opponent to lose 4 units.) At the conclusion of the games, the researchers recorded the average payoff and the number of times punishment was used against each player. A graph of the data

is shown in the accompanying scatterplot. Does it appear that average payoff is associated with punishment use? The researchers concluded that “winners don’t punish.” Do you agree? Explain.

Cable TV subscriptions and “cord cutters.” Has the increasing popularity of smartphones and video streaming over the Internet affected cable and satellite TV subscriptions? This was one of the questions of interest in a recent Pew Research Center survey (December 2015). Telephone (both landline and cell phone) interviews were conducted on a representative sample of 2,001 adults living in the United States. For this sample, 1,521 adults reported that they currently receive cable or satellite TV service at home, 180 revealed that they have never subscribed to cable/satellite TV service at home, and the remainder (300 adults) admitted that they are “cord cutters,” i.e., they canceled the cable/satellite TV service. The results are summarized in the Minitab pie chart shown.

a. According to the pie chart, what proportion of the adults in the sample currently have a cable/satellite TV subscription at home? Verify the accuracy of this proportion using the survey results.

b. Now consider only the 1,821 adults in the sample that have at one time or another subscribed to cable/satellite TV service. Create a graph that compares the proportions of adults who currently subscribe to cable/satellite TV service with the proportion who are “cord cutters.”

Compare the z-scores to decide which of the following x values lie the greatest distance above the mean and the greatest distance below the mean.

a. x=100,  μ=50,  σ=25b. x=1,  μ=4,  σ=1c. x=0,  μ=200,  σ=100d.x=10,  μ=5,  σ=3
See all solutions

Recommended explanations on Math Textbooks

Decision Maths

Read Explanation

Mechanics Maths

Read Explanation

Pure Maths

Read Explanation

Applied Mathematics

Read Explanation

Calculus

Read Explanation

Probability and Statistics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free