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8. List and describe at least three basic data transformations.
Data transformation is the process of changing the data from their original form to a format
9. What conditions suggest that a ratio variable should be transformed into a dichotomous (two
group) variable represented with dummy coding?
10. [Ethics Question] A data processing analysis for a research supplier finds that preliminary
computer runs of survey results show that consumers love a client’s new product. The
employee buys a large block of the client’s stock. Is this ethical?
11. [Internet Question] Use a Web site such as http://www.styledrops.com to find some prices for
4 Prada handbags, 4 Gucci handbags, 4 Yves Saint Laurent handbags, 4 Burberry handbags,
and 4 Ferragamo handbags. Enter these into a spreadsheet. Using the lowest priced Prada
handbag as a base, compute an index displaying the price of all other handbags. Which brand
offers the best value in your opinion? Compute the appropriate statistic for central tendency
using a spreadsheet or some other software. Use the chart feature (in Excel or another
package) to depict the prices as a frequency distribution.