Table of contents
- 1. Intro to Stats and Collecting Data55m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically1h 45m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables2h 33m
- 6. Normal Distribution and Continuous Random Variables1h 38m
- 7. Sampling Distributions & Confidence Intervals: Mean1h 3m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 12m
- 9. Hypothesis Testing for One Sample1h 1m
- 10. Hypothesis Testing for Two Samples2h 8m
- 11. Correlation48m
- 12. Regression1h 4m
- 13. Chi-Square Tests & Goodness of Fit1h 20m
- 14. ANOVA1h 0m
1. Intro to Stats and Collecting Data
Intro to Stats
Problem 1.1.44
Textbook Question
In Exercises 37–44, answer the given questions, which are related to percentages.
Percentages in Advertising In an actual ad for the Club, a device used to discourage car thefts, it was stated that “The Club reduces your odds of car theft by 400%.” What is wrong with this statement?

1
Understand the concept of percentages: A percentage is a way of expressing a number as a fraction of 100. It is often used to compare relative sizes or to express changes in quantities.
Identify the claim in the statement: The ad claims that 'The Club reduces your odds of car theft by 400%.'
Analyze the meaning of a percentage reduction: A reduction of 100% would mean that the odds of car theft are completely eliminated. A reduction of more than 100% is mathematically nonsensical because it implies a negative probability, which is impossible.
Consider the correct interpretation: If the odds of car theft are reduced by 100%, it means there is no chance of theft. A reduction of 400% is misleading because it suggests that the odds are not only eliminated but somehow reversed, which is not possible.
Conclude the error in the statement: The statement is incorrect because it misuses the concept of percentage reduction. A more accurate claim would be to state the actual percentage reduction in risk, such as 'The Club reduces your odds of car theft by 80%' or similar, based on actual data.

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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Understanding Percentages
Percentages represent a fraction of 100 and are used to compare relative sizes. A percentage can indicate how much one quantity is of another, but it must be interpreted correctly. For example, saying something is reduced by a percentage implies a decrease, but exceeding 100% can lead to confusion.
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Step 1: Write Hypotheses
Limits of Percentage Reduction
A percentage reduction cannot exceed 100%, as this would imply a complete elimination and more. For instance, a 100% reduction means the item is gone, while a 400% reduction suggests an impossible scenario where the item is not only gone but somehow has a negative presence. This highlights the importance of logical consistency in statistical claims.
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Intro to Frequency Distributions Example 1
Statistical Misrepresentation
Statistical misrepresentation occurs when data is presented in a misleading way, often to exaggerate claims. In advertising, this can lead to false impressions about a product's effectiveness. The statement about reducing theft odds by 400% exemplifies this, as it misuses statistical language to create an unrealistic perception of the product's impact.
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