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Economics

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May 15, 2024

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AP Statistics 1.03 Working With Graphs Directions: Complete this assignment. Clearly label each answer. Your answers for this assignment must include reasons; simply stating the answer without justification will earn only partial credit. (30 points) 1. Property and casualty insurance companies have to file insurance premium rates (such as how much you pay for car insurance) with each state’s regulatory agency. The agency reviews the proposed rates, the insurance company’s expenses and payouts, and overall financial well-being. One of the items an insurance company must provide is an exhibit (in this case, a chart) of how a dollar of income is spent (this would be how a typical dollar of your insurance premium is spent by the insurance company). Here is an example of such a breakdown: Expense Category Amount Claims payments $0.65 Expenses, fixed and variable $0.28 Taxes $0.04 Reinsurance (insurance companies buy insurance, too) $0.02 Reinvestment (stocks and bonds) $0.01 a. Construct a pie chart for the distribution. (2 points) Chart should have a title and each slice fully labeled with name and percent/number
b. Construct a bar graph for this distribution. (2 points) Chart should have a title and be fully labeled c. Compare the two graphs constructed above. Which one seems to be the most informative? Explain why. (3 points) The pie chart is the most informative because pie charts are meant for categorical data. It also displays the percentages, so viewers can clearly see who much of the dollar was spent on each category. 2. A survey was conducted involving 50 randomly selected households. The surveyor asked how many internet accessible devices are owned by the household (this would include televisions, tablets, smart phones, computers, etc). Following are the responses: 0 5 7 13 3 2 3 5 10 6 4 4 13 6 7 2 10 11 7 7 0 1 2 1 1 4 5 9 14 7
12 13 6 5 2 4 4 5 7 8 11 10 12 11 12 9 10 9 8 7 Data is hypothetical a. Construct a dotplot of the data. (2 points): Plot should have a title b. What is the most common occurrence? (1 point) Seven devices with internet access in a house hold is the most common occurrence with seven households c. Explain the purpose of using dot plots. (3 points) the purpose of dot plaits is to quickly view the distribution of a small ranged data set. Every point is displayed, so the data points don’t lose their individuality 3. Here is the listed mileage for some of the 2014 Mazdas (data courtesy of www.fueleconomy.gov): City: 28, 26, 25, 22, 21, 21, 30, 29, 26, 26, 25, 25, 24 Highway: 40, 38, 37, 28, 28, 28, 40, 40, 35, 35, 32, 31, 34 a. Make a back to back stemplot of this data. (2 points) Plot should have five stems, a legend, and a title:
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