Morningstar is a mutual fund rating agency. It ranks a fund’s performance by using one to five stars. A one-star mutual fund is in the bottom 10% of its investment class; a five-star mutual fund is at the 90th percentile of its investment class. Interpret the meaning of a five-star mutual fund.
Table of contents
- 1. Intro to Stats and Collecting Data1h 14m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically2h 5m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables3h 6m
- 6. Normal Distribution and Continuous Random Variables2h 11m
- 7. Sampling Distributions & Confidence Intervals: Mean3h 23m
- Sampling Distribution of the Sample Mean and Central Limit Theorem19m
- Distribution of Sample Mean - Excel23m
- Introduction to Confidence Intervals15m
- Confidence Intervals for Population Mean1h 18m
- Determining the Minimum Sample Size Required12m
- Finding Probabilities and T Critical Values - Excel28m
- Confidence Intervals for Population Means - Excel25m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 25m
- 9. Hypothesis Testing for One Sample3h 29m
- 10. Hypothesis Testing for Two Samples4h 50m
- Two Proportions1h 13m
- Two Proportions Hypothesis Test - Excel28m
- Two Means - Unknown, Unequal Variance1h 3m
- Two Means - Unknown Variances Hypothesis Test - Excel12m
- Two Means - Unknown, Equal Variance15m
- Two Means - Unknown, Equal Variances Hypothesis Test - Excel9m
- Two Means - Known Variance12m
- Two Means - Sigma Known Hypothesis Test - Excel21m
- Two Means - Matched Pairs (Dependent Samples)42m
- Matched Pairs Hypothesis Test - Excel12m
- 11. Correlation1h 24m
- 12. Regression1h 50m
- 13. Chi-Square Tests & Goodness of Fit2h 21m
- 14. ANOVA1h 57m
3. Describing Data Numerically
Percentiles & Quartiles
Problem 3.4.29b
Textbook Question
Threaded Problem: Tornado The data set “Tornadoes_2017” located at www.pearsonhighered.com/sullivanstats contains a variety of variables that were measured for all tornadoes in the United States in 2017. b. Determine the interquartile range of the length of tornadoes in Iowa (IA). Hint: If you are using StatCrunch, enter “State=IA” in the Where: box of the Summary Stats dialogue window. Determine the interquartile range of the length of tornadoes in Kansas (KS). Which state has lengths of tornadoes that are more dispersed? Explain.
Verified step by step guidance1
First, filter the data set to include only tornadoes from Iowa (IA). If using StatCrunch, enter "State=IA" in the Where: box of the Summary Stats dialogue window to isolate the relevant data.
Next, calculate the first quartile (Q1) and the third quartile (Q3) of the tornado lengths for Iowa. These quartiles represent the 25th and 75th percentiles of the data, respectively.
Compute the interquartile range (IQR) for Iowa by subtracting Q1 from Q3 using the formula: \(\text{IQR} = Q3 - Q1\).
Repeat the same process for Kansas (KS): filter the data to include only tornadoes from Kansas, then find Q1 and Q3 for tornado lengths, and calculate the IQR for Kansas.
Compare the IQR values for Iowa and Kansas. The state with the larger IQR has tornado lengths that are more dispersed, meaning there is a greater spread in the middle 50% of tornado lengths.
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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Interquartile Range (IQR)
The interquartile range measures the spread of the middle 50% of a data set by subtracting the first quartile (Q1) from the third quartile (Q3). It is a robust measure of variability that is less affected by outliers than the range. In this problem, the IQR helps compare the dispersion of tornado lengths within each state.
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Data Subsetting and Filtering
Data subsetting involves selecting a specific portion of a data set based on criteria, such as filtering tornado data by state (e.g., Iowa or Kansas). This allows focused analysis on relevant groups, ensuring that summary statistics like the IQR are calculated only for the tornadoes in the chosen state.
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Comparing Variability Between Groups
Comparing variability involves analyzing measures like the IQR to determine which group has more spread or dispersion in data values. Here, comparing the IQRs of tornado lengths in Iowa and Kansas reveals which state experiences more variation in tornado lengths, aiding in understanding differences in tornado characteristics.
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