Concept explainers
In 2014, Congress cut $8.7 billion from the Supplemental Nutrition Assistance Program (SNAP), more commonly referred to as food stamps. The rationale for the decrease is that providing assistance to people will result in the next generation of citizens being more dependent on the government for support. Hoynes (2012) describes a study to evaluate this claim. The study examines 60,782 families over the time period of 1968 to 2009 which is subsequent to the introduction of the Food Stamp Program in 1961. This study examines the impact of a positive and policy-driven change in economic resources available in utero and during childhood on the economic health of individuals in adulthood. The study assembled data linking family background in early childhood to adult health and economic outcomes. The study concluded that the Food Stamp Program has effects decades after initial exposure. Specifically, access to food stamps in childhood leads to a significant reduction in the incidence of metabolic syndrome (obesity, high blood pressure, and diabetes) and, for women, an increase in economic self-sufficiency. Overall, the results suggest substantial internal and external benefits of SNAP.
- a. Identify the population that is of interest to the researchers.
- b. Describe the sample.
- c. What characteristics of the population are of interest to the researchers?
- d. If the sample measurements are used to make inferences about the population characteristics, why is a measure of reliability of the inferences important?
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Chapter 1 Solutions
An Introduction to Statistical Methods and Data Analysis
- According to the IRS, individuals filing federal income tax returns prior to March 31 received an average refund of $1,089 in 2018. Consider the population of "last-minute" filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15). a. A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. Develop appropriate hypotheses such that rejection of Ho will support the researcher's contention. Ho: is greater than or equal to 1,089 v Ha: is less than 1,089 ✔ b. For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $910. Based on prior experience a population standard deviation of o= $1,800 may be assumed. What is the p-value (to 4 decimals)? * 0.0173 c. Using a = 0.05, can you conclude that the population mean refund for "last minute" filers is less than the population mean refund…arrow_forwardYou may need to use the appropriate appendix table or technology to answer this question. For many years, businesses have struggled with the rising cost of health care. But recently, the increases have slowed due to less inflation in health care prices and employees paying for a larger portion of health care benefits. A recent survey showed that 52% of employers are likely to require higher employee contributions for health care coverage this year relative to last year. Suppose the survey was based on a sample of 700 companies likely to require higher employee contributions for health care coverage this year relative to last year. At 95% confidence, compute the margin of error for the proportion of companies likely to require higher employee contributions for health care coverage. (Round your answer to four decimal places.) Compute a 95% confidence interval for the proportion of companies likely to require higher employee contributions for health care coverage. (Round your answers to…arrow_forwardAccording to the IRS, individuals filing federal income tax returns prior to March 31 received an average refund of $1,072 in 2018. Consider the population of "last-minute" filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15). a. A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. Develop appropriate hypotheses such that rejection of Ho will support the researcher's contention. Ho: u is less than or equal to 1,072 Ha: H is Select your answer- b. For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $920. Based on prior experience a population standard deviation of o = $1,600 may be assumed. What is the p-value (to 4 decimals)? c. Using a = 0.05, can you conclude that the population mean refund for "last minute" filers is less than the population mean refund for…arrow_forward
- Bartman Industries' and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000 data are adjusted to include dividends. Data as given in the problem are shown below: Bartman Industries Reynolds Inc. Winslow 5000 Year Stock Price Dividend Holding period return Stock Price Dividend Holding period return Includes Divs. Holding period return 2020 $17.25 $1.15 24.75% $48.75 $3.00 -1.05% 11,663.98 32.76% 2019 14.75 1.06 -4.18% 52.30 2.90 13.23% 8,785.70 1.22% 2018 16.50 1.00 62.79% 48.75 2.75 -10.04% 8,679.98 34.91% 2017 10.75 0.95 2.90% 57.25 2.50 -0.42% 6,434.03 14.85% 2016 11.37 0.90 61.02% 60.00 2.25 11.66% 5,602.28 19.05% 2015 7.62 55.75 4,705.97 Assume the risk-free rate on long-term Treasury bonds is 6.04%. Assume also that the average annual return on the Winslow 5000 is 11% as the expected return on the market. Use the SML equation (i.e., CAPM) to…arrow_forwardYou may need to use the appropriate appendix table or technology to answer this question. Individuals filing federal income tax returns prior to March 31 received an average refund of $1,059. Consider the population of "last-minute" filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15). (a) A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. Develop appropriate hypotheses such that rejection of H0 will support the researcher's contention. A) H0: ?= $1,059 Ha: ? ≠ $1,059 B) H0: ?< $1,059 Ha: ?≥ $1,059 C) H0: ? ≥ $1,059 Ha: ? < $1,059 D) H0: ?> $1,059 Ha: ? ≤ $1,059 E) H0: ?≤ $1,059 Ha: ? > $1,059 (b) For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $910. Based on prior experience, a population standard deviation of ? = $1,600may be…arrow_forwardThe Springfield Daily Gazette has reported that the average salary for City of Springfield employees is $81,500. The Gazette is claiming that city employees’ salaries are too high, and many of the citizens (who pay the taxes to support the city) are upset. The city council has called a special meeting to discuss whether employee salaries should be cut by 10–15%. You have collected data on employee incomes for the city, as shown below. In a paragraph of at least five or six sentences, explain what the measures of central tendency and standard deviation tell about the income of city employees. Using this information, respond to city council members. Should employee salaries be reduced? Why or why not?City of Springfield Employee Income DataMean = $81,500Median = $35,000Mode = $35,000Standard Deviation = $147,367arrow_forward
- The monthly cost for health care for an employee and two dependents in a certain year is given in the following table. Provider Cost Provider Cost Maxicare $415.31 Kaiser $4337 Cigna $424.74 Aetna $436.26 Health Net $427.29 Blue Shield $442.25 Pacific Care $428.06 Omni Healthcare $457.90 Redwoods Plan $431.53 Lifeguard $457.64 Draw a box plot for the monthly costs of health care (ranked from lowest to highest). 0415 420 425 430 435 440 0425 430 435 440 445 450 455 420 430 440 450 420 430 440 450arrow_forwardSuppose the table below gives the average tuition and fees at 2-year and 4-year state schools in a particular state. Values are adjusted to 2019 dollars. Academic Year 4-year state school 2-year state school 2005-06 $5,904 $2,661 2006-07 $6,066 $2,539 2007-08 $6,289 $2,604 2008-09 $7,222 $2,901 2009-10 $7,738 $3,065 2010-11 $8,035 $3,117 2011-12 $8,154 $3,108 2012-13 $8,497 $3,075 2013-14 $8,578 $3,025 2014-15 $9,390 $3,326 2015-16 $10,004 $3,504 2016-17 $10,474 $3,663 2017-18 $10,789 $3,830 2018-19 $10,874 $3,859 2019-20 $10,900 $3,907 Here is a graph of the information from the table. a. What is the absolute change in tuition and fees at this state's four-year institutions from 2005-06 to 2019-20? b. What is the relative change in tuition and fees at this state's four-year institutions from 2005-06 to 2019-20? Round to the nearest whole percentage…arrow_forward4. The CDC released the following table of life expectancies for Americans from 1900-2010.arrow_forward
- 3. A Bloomberg Businessweek North American subscriber study collected data from a sample of 2861 sub-scribers. 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 categorical or quantitative variable? c. Is ownership of an American Express card a categorical or quantitative variable? d. Does this study involve cross- sectional or time series data? e. Describe any statistical inferences Bloomberg Businessweek might make on the basis of the survey. 4. Table 1.8 shows a data set containing information for 25 of the shadow stocks tracked by the American Association of Individual Investors. Shadow stocks are common stocks of smaller companies that are not closely followed by Wall Street analysts. The data set is also on the website that accompanies the text in the file named Shadow02. a. How many variables are in the data set?…arrow_forwardAccording to "The Sociology of Health, Illness, and Health Care" by Weitz. What is Medicare? O The same thing as Obama Care O Government assisted programs for newborns and zygotes. O a federally funded insurance program for disabled and elderly people. O Medical programs that assist people who make less than 25k a year.arrow_forwardindividuals filing federal income tax returns prior to March 31 received an averagerefund of $1056. consider the population of “last-minute” filers who mail their taxreturn during the last five days of the income tax period (typically april 10 to april 15).a. a researcher suggests that a reason individuals wait until the last five days is that onaverage these individuals receive lower refunds than do early filers. develop appropriate hypotheses such that rejection of h0 will support the researcher’s contention.arrow_forward
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