Basic Business Statistics
Pearson International Edition
Chapter 3
Answers
3.56
Range is the simplest measure of variation. It is the difference between the largest and the smallest values: Range = Xlargest – Xsmallest
The advantage of range is that it is very simple but the disadvantage is that it ignores the way in which data are distributed.

If we square the difference between each value and the mean and sum the squared differences, we find the sum of squares and if we divide this sum by the number of values minus 1, we get variance. It is the approximate average of squared deviations of values from the mean.

The square root of variance is the standard deviation.

Standard deviation is the most commonly used measure of deviation because it is always a number that is in the same units as the original sample data. For almost all sets of data, the majority of the observed values lie within an interval of plus and minus one standard deviation above and below the mean. So it helps to define where at least majority of the data values are clustering.

The coefficient of variation is a relative measure of variation, a percentage. It shows variation relative to mean. It is equal to the standard deviation divided by the mean, multiplied by 100%.

The advantage of the coefficient of variation is that you may compare the variability of two or more data sets measured in different units.

3.58
The empirical rule approximates the variation of data in a bell-shaped distribution. Approximately 68% of the data in a bell shaped distribution is within 1 standard deviation of the mean or . Approximately 95% of the data in a bell shaped distribution is within 1 standard deviation of the mean or . Approximately 99.7% of the data in a bell shaped distribution is within 1 standard deviation of the mean or .

The Chebyshev rule states that for any data set, regardless of how data are distributed, at least (1 - 1/k2) x 100% of the values will fall...

...Case Study #3: Contract for the International Sale of Goods
A chip off the new block
Semicontronics is an Australian manufacturing company that has been in the business of semi manufactured electronics for over a decade. Semicontronics has a solid reputation for meeting customer demands for quality products on time and on budget. The majority of Semicontronics customers are international, mid-market manufacturing companies that produce generic electronics such as cell phones, digital media players and game consoles. Retail stores in foreign countries purchase the generic products and rebrand them for sale.
Recently, Semicontronics has been approached by Phoneson to act as a supplier in their supply chain. Based in Japan, Phoneson is an original design electronics manufacturing company specializing in high-end mobility devices including cell phones, navigation systems and PDAs. Phoneson is impressed with Semicontronics’ reputation and wants Semicontronics to supply several components for its next release of legacy products.
Phoneson has a reputation for producing best in class brands of electronics, and is recognized for cutting edge technology and aesthetic design. It has built a loyal following from electronics enthusiasts in its native Japan as well as other Asian and European electronics markets. Phoneson wants to extend its brand into the highly competitive North American market and sees standard...

...EXECUTIVE SUMMARY
By analyzing PEST model partly which contains four main factor as Economic; Political and Legal; Culture, Social and Ethics and some others (technology or environment), this paper has clearly presented penetration strategy Tesco PLC, a multinational retailer in grocery and merchandise towards Vietnam market. The paper conducted the report through collecting secondary data from General Statistics Office of Vietnam, Work Bank Data Source, CIA and some other trusted data source to indicate in detail whether Vietnamese market is a possible one for Tesco. The result point out that Vietnam could be a possible market for the core strategy of Tesco PLC.
1. INTRODUCTION
Retail section has becoming one of the most potential businesses in the booming industry recently. Along with an active market, a level of competitiveness among retailers is also considered as a core factor influences each typical business strategy with the aim at obtaining big goal of profit. Numerous big retailer Groups in the world, now is trying to expand their business towards prospective market but not only domestic one such as Wal-mart or Metroto be able to perform, develop and compete through having effective plan and well performing. This report would like to examine Tesco PLC, the biggest retailer from the United Kingdom as a representative case for the effective expansion strategy implementation basing on analysing some key factors of host...

...of short duration given that it has high yield
a) The bond fund is long duration, P(D3)= n(D3)/n(S)= 10/38=.263
b) The bond has a high yield, P(Y3)= n(Y3)/n(S)= 11/38= .289
c) High yield given of short duration, P(Y3/D1)= P(Y3nD1)/P(D1)= 2/11= .1818
d) Short duration given of high yield, P(D1/Y3)= P(D1nY3)/P(Y3)= 2/15= .1333
5.52 A real estate office has 10 sales agents. Each of four new customers must be assigned an agent (a) Find the number of agents arrangements where order is important. (b) Find the number of agent arrangement where order is not important (c) Why is the number of combinations smaller than the number of permutations?
a) nCx= n!/x! (n-x)!
10C4= 10!/ 4! (10-4) !
=10*9*8*7*6!/4!*6!
=10*9*8*7/4*3*2*1= 5040/24= 210 Combinations
b) nPx= n!/(x-n)!
10P4= 10!/ (10-4)!
= 10*9*8*7*6!/ 6!
= 5040 Permutations
5.75
(a) In certain state, license plates consist of three letters (A-Z) followed by three digits (0-9) how many different plates can be issued? (b) if the state allows any six-character mix (in any order) of 26 letters and 10 digits, how many unique plates are possible? (c) Why might some combinations of digits and letters be disallowed? * (d) Would the system described in (b) permit a unique license number for every car in the United States? For every car in the world? Explain your assumption. * (e) if the letters O and I are not used because they look too much like the numerals 0 and 1, how many...

...Omkar & Yaying
Wednesday 5-6pm
WEEK 3 BES PASS
Descriptive Statistics Population - a set of all possible observations. Sample - a portion of a population. We often use information concerning a sample to
make an inference (conclusion) about the population.
Parameter - describes a characteristic of the population, eg: the population variance Statistic- describes a characteristic of a sample, eg: the sample variance
Frequency Distribution and Histograms Class - a collection of data which are mutually exclusive Frequency distribution - a grouping of data into classes Relative frequency distribution - calculates the number of data in a class as a percentage
of the total data
Shapes of Distributions and Histograms
A histogram is symmetrical if one half of the histogram is a mirror reflection of the other Non-symmetrical distributions are said to be “skewed”
a) Skewed to the right (Positively skewed) Mode < Median < Mean
b) Skewed to the left (Negatively skewed) Mode > Median > Mean
c) Symmetric Distribution Mode = Median = Mean
Measures of Central Tendency: The Mean, Mode and Median The mean is the average of scores: Population mean: μ = Σ xi/N
Sample mean: x = Σ xi/n
The mode is the value that has the highest frequency The median is the middle value of data ordered from lowest to highest The median and the mode are relatively less sensitive to outliers.
Quartiles and...

...Title: Does culture still matter in InternationalBusiness and Management?
As global competition is getting tougher, more and more companies are being “forced” to engage in internationalbusiness if they are to survive. Companies depend on a variety of factors, such as a high level of administrative competence from their managers in order to achieve success. One factor that is frequently being referred to as a critical success factor is cross-cultural literacy. This means that there is an increasingly need for business people to understand how cultural differences across and within nations can influence the way business is practiced.
On the other hand, many may argue that, because of the Globalization Phenomena, differences between nations are getting smaller or even disappearing because of the raise of a global culture. Supporters of this idea probably share the same view as Levitt (1983) who claimed that “effective global strategy is all about product standardization”. He also believed that a unified world marketplace would be created and that localizing the marketing mix would be unnecessary. Consequently, if Levitt were right, this would probably suggest that cultural differences would not really have any consequences for internationalbusiness and management anymore.
It is possible to agree with Levitt to some extent about product...

...Chapter3- Personality, Perception, and Attribution (37-53)
Individual Differences
Managers need to understand individual differences. The basis for understanding comes from Kurt Lewin’s early contention that behavior is a function of the person and the environment. B=P*E
This idea has been developed into the interactional psychology approach. This approach states that we must know something about the person and something about the situation to understand the human behavior. Four propositions of this approach
Behavior is a function of continuous, multidirectional interaction between the person and the situation.
The person is active in this process. He changes the situation and is changed by it.
People vary in many characteristics.
Two aspects of a situation are important: the objective situation and the person’s subjective view of the situation.
Person- skills and abilities, personality, perception, and ability
Situation- organization, work group, job, personal life
General mental ability (GMA) is a measure of an individual’s intelligence. It is the best predictor of work performance.
Personality
Personality is the relatively stable set of characteristics that influences an individual’s behavior. It is debated that two things determine it: heredity and environment.
There are two major theories of personality:
Trait Theory:
Advocates breaking down behavior patterns into a series of observable traits in order to understand...

...does most of her job in this skill. She does human skills in a large extend; she works closely with team and ensure total supervision of all workers. It reflects to most of her functions and roles as a manager.
During the interview, Ms. X stated in question 1(iii), she is practicing interpersonal role by giving her employees incentives when target sales are achieved. This can make employees to bring the organizational goal into their personal goal and this will be easier for organization to achieve its goal. In addition, Ms. X also applies Henry Mintzberg’s interpersonal roles. In 3(ii), she gives the employees compliment when they do a good job. It shows that she works closely with the employees, it is very helpful in maintaining a good relationship by creating feeling of trust and openness which will make them encourage to work everyday with a good performance. Other than that, it is also proven by 3(v), which is she ensures workers knowledge is at an acceptable level by conducting regular training. This will make employees to be sure at what they are doing; therefore they are able to do their task as what the manager wants it to be.
As what Mintzberg’s (2000) says a competent manager should be able to get deal with diverse people. That is how twenty-first century style of management should be; manager must be able to work closely with employees. And John C. Maxwell says, “People don’t care how much you know, until they know how much you...

...investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
The accepted proportion for a foreign direct investment relationship, as defined by the OECD Organization for Economic Co-operation and Development, is 10%.
That is, the foreign investor must own at least 10% or more of the voting stock or ordinary shares of the investee company.
Example of foreign direct investment:
American company taking a majority stake in a company in China.
Canadian company setting up a joint venture to develop a mineral deposit in Chile.
Notice:
Foreign direct investment is in contrast to portfolio investment which is an
Indirect (passive) investment in the securities of another country such as shares .
Types of FDI
Strategically FDI comes in three types:
1) Horizontal: where the company carries out the same activities abroad as at home
Example: Toyota assembling cars in both Japan and the UK.
2) Vertical: when different stages of activities are added abroad.
Forward vertical FDI is where the FDI takes the firm nearer to the market.
Example: Toyota acquiring a car distributorship in America
Backward Vertical FDI is where international integration moves back towards raw materials Example: Toyota acquiring a tire manufacturer or a rubber plantation). ...