Chapter 8 - Interval Estimation

Multiple Choice

1. As the degrees of freedom increase, the t distribution approaches the

a. uniform distribution
b. normal distribution
c. exponential distribution
d. p distribution
ANSWER: b
POINTS: 1

2. If the margin of error in an interval estimate of μ is 4.6, the interval estimate equals
a.
b.
c.
d.
ANSWER: b
POINTS: 1

3. The t distribution is a family of similar probability distributions, with each individual distribution depending on a
parameter known as the
a. finite correction factor
b. sample size
c. degrees of freedom
d. standard deviation
ANSWER: c
POINTS: 1

4. The probability that the interval estimation procedure will generate an interval that does not contain the actual value of
the population parameter being estimated is the
a. level of significance
b. confidence level
c. confidence coefficient
d. error factor
ANSWER: c
POINTS: 1

5. To compute the minimum sample size for an interval estimate of μ, we must first determine all of the following except
a. desired margin of error
b. confidence level
c. population standard deviation
d. degrees of freedom
ANSWER: d
POINTS: 1

6. The use of the normal probability distribution as an approximation of the sampling distribution of is based on the
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Chapter 8 - Interval Estimation
condition that both np and n(1 – p) equal or exceed
a. .05
b. 5
c. 10
d. 30
ANSWER: b
POINTS: 1

7. The sample size that guarantees all estimates of proportions will meet the margin of error requirements is computed
using a planning value of p equal to
a. .01
b. .50
c. .51
d. .99
ANSWER: b
POINTS: 1

8. We can reduce the margin of error in an interval estimate of p by doing any of the following except
a. increasing the sample size
b. increasing the planning value p* to .5
c. increasing the level of significance
d. reducing the confidence coefficient
ANSWER: b
POINTS: 1

9. In determining an interval estimate of a population mean when σ is unknown, we use a t distribution with
a.
degrees of freedom
b.
degrees of freedom
c. n − 1 degrees of freedom
d. n degrees of freedom
ANSWER: c
POINTS: 1

10. The expression used to compute an interval estimate of μ may depend on any of the following factors except
a. the sample size
b. whether the population standard deviation is known
c. whether the population has an approximately normal distribution
d. whether there is sampling error
ANSWER: d
POINTS: 1

11. The mean of the t distribution is

a. 0
b. .5
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Chapter 8 - Interval Estimation
c. 1
d. problem specific
ANSWER: a
POINTS: 1

12. An interval estimate is used to estimate

a. the shape of the population's distribution
b. the sampling distribution
c. a sample statistic
d. a population parameter
ANSWER: d
POINTS: 1

13. An estimate of a population parameter that provides an interval believed to contain the value of the parameter is
known as the
a. confidence level
b. interval estimate
c. parameter value
d. population estimate
ANSWER: b
POINTS: 1

14. As the sample size increases, the margin of error

a. increases
b. decreases
c. stays the same
d. None of the other answers are correct.
ANSWER: b
POINTS: 1

15. The confidence associated with an interval estimate is called the

a. level of significance
b. degree of association
c. confidence level
d. precision
ANSWER: c
POINTS: 1

16. The ability of an interval estimate to contain the value of the population parameter is described by the
a. confidence level
b. degrees of freedom
c. precise value of the population mean μ
d. None of the other answers are correct.
ANSWER: a
POINTS: 1
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Chapter 8 - Interval Estimation

17. If an interval estimate is said to be constructed at the 90% confidence level, the confidence coefficient would be
a. 0.1
b. 0.95
c. 0.9
d. 0.05
ANSWER: c
POINTS: 1

18. If we want to provide a 95% confidence interval for the mean of a population, the confidence coefficient is
a. 0.485
b. 1.96
c. 0.95
d. 1.645
ANSWER: c
POINTS: 1

19. For the interval estimation of μ when σ is assumed known, the proper distribution to use is the
a. standard normal distribution
b. t distribution with n degrees of freedom
c. t distribution with n − 1 degrees of freedom
d. t distribution with n − 2 degrees of freedom
ANSWER: a
POINTS: 1

20. The z value for a 97.8% confidence interval estimation is

a. 2.02
b. 1.96
c. 2.00
d. 2.29
ANSWER: d
POINTS: 1

21. It is known that the variance of a population equals 1,936. A random sample of 121 has been taken from the
population. There is a .95 probability that the sample mean will provide a margin of error of
a. 7.84 or less
b. 31.36 or less
c. 344.96 or less
d. 1,936 or less
ANSWER: a
POINTS: 1

22. A random sample of 144 observations has a mean of 20, a median of 21, and a mode of 22. The population standard
deviation is known to equal 4.8. The 95.44% confidence interval for the population mean is
a. 15.2 to 24.8

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Chapter 8 - Interval Estimation
b. 19.2 to 20.8
c. 19.216 to 20.784
d. 21.2 to 22.8
ANSWER: b
POINTS: 1

Exhibit 8-1
In order to estimate the average time spent on the computer terminals per student at a local university, data were collected
from a sample of 81 business students over a one-week period. Assume the population standard deviation is 1.2 hours.
23. Refer to Exhibit 8-1. The standard error of the mean is
a. 7.5
b. 0.014
c. 0.160
d. 0.133
ANSWER: d
POINTS: 1

24. Refer to Exhibit 8-1. With a 0.95 probability, the margin of error is approximately
a. 0.26
b. 1.96
c. 0.21
d. 1.64
ANSWER: a
POINTS: 1

25. Refer to Exhibit 8-1. If the sample mean is 9 hours, then the 95% confidence interval is approximately
a. 7.04 to 110.96 hours
b. 7.36 to 10.64 hours
c. 7.80 to 10.20 hours
d. 8.74 to 9.26 hours
ANSWER: d
POINTS: 1

Exhibit 8-2
The manager of a grocery store has taken a random sample of 100 customers. The average length of time it took these 100
customers to check out was 3.0 minutes. It is known that the standard deviation of the checkout time is one minute.
26. Refer to Exhibit 8-2. The standard error of the mean equals
a. 0.001
b. 0.010
c. 0.100
d. 1.000
ANSWER: c
POINTS: 1

27. Refer to Exhibit 8-2. With a .95 probability, the sample mean will provide a margin of error of
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Chapter 8 - Interval Estimation
a. 0.95
b. 0.10
c. .196
d. 1.96
ANSWER: c
POINTS: 1

28. Refer to Exhibit 8-2. If the confidence coefficient is reduced to 0.80, the standard error of the mean
a. will increase
b. will decrease
c. remains unchanged
d. becomes negative
ANSWER: c
POINTS: 1

29. Refer to Exhibit 8-2. The 95% confidence interval for the average checkout time of all customers is
a. 3 to 5
b. 1.36 to 4.64
c. 2.804 to 3.196
d. 1.04 to 4.96
ANSWER: c
POINTS: 1

Exhibit 8-3
A random sample of 81 automobiles traveling on a section of an interstate showed an average speed of 60 mph. The
distribution of speeds of all cars on this section of highway is normally distributed, with a standard deviation of 13.5 mph.
30. Refer to Exhibit 8-3. If we are interested in determining an interval estimate for μ at 86.9% confidence, the z value to
use is
a. 1.96
b. 1.31
c. 1.51
d. 2.00
ANSWER: c
POINTS: 1

31. Refer to Exhibit 8-3. The value to use for the standard error of the mean is
a. 13.5
b. 9
c. 2.26
d. 1.5
ANSWER: d
POINTS: 1

32. Refer to Exhibit 8-3. The 86.9% confidence interval for μ is

a. 46.500 to 73.500
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Chapter 8 - Interval Estimation
b. 57.735 to 62.265
c. 59.131 to 60.869
d. 50 to 70
ANSWER: b
POINTS: 1

33. Refer to Exhibit 8-3. If the sample size was 25 (other factors remain unchanged), the interval for μ would
a. not change
b. become narrower
c. become wider
d. become zero
ANSWER: c
POINTS: 1

34. In general, higher confidence levels provide

a. wider confidence intervals
b. narrower confidence intervals
c. a smaller standard error
d. unbiased estimates
ANSWER: a
POINTS: 1

35. When the level of confidence increases, the confidence interval

a. stays the same
b. becomes wider
c. becomes narrower
d. cannot tell from the information given
ANSWER: b
POINTS: 1

36. A 95% confidence interval for a population mean is determined to be 100 to 120. If the confidence coefficient is
reduced to 0.90, the interval for μ
a. becomes narrower
b. becomes wider
c. does not change
d. becomes 0.1
ANSWER: a
POINTS: 1

37. If we change a 95% confidence interval estimate to a 99% confidence interval estimate, we can expect the
a. width of the confidence interval to increase
b. width of the confidence interval to decrease
c. width of the confidence interval to remain the same
d. sample size to increase
ANSWER: a
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Chapter 8 - Interval Estimation
POINTS: 1

38. In developing an interval estimate of the population mean, if the population standard deviation is unknown
a. it is impossible to develop an interval estimate
b. a sample proportion can be used
c. the sample standard deviation and t distribution can be used
d. None of the other answers are correct.
ANSWER: c
POINTS: 1

39. A bank manager wishes to estimate the average waiting time for customers in line for tellers. A random sample of 50
times is measured and the average waiting time is 5.7 minutes. The population standard deviation of waiting time is 2
minutes. Which Excel function would be used to construct a confidence interval estimate?
a. CONFIDENCE.NORM
b. NORM.INV
c. T.INV
d. INT
ANSWER: a
POINTS: 1

40. An auto manufacturer wants to estimate the annual income of owners of a particular model of automobile. A random
sample of 200 current owners is taken. The population standard deviation is known. Which Excel function would not be
appropriate to use to construct a confidence interval estimate?
a. NORM.S.INV
b. COUNTIF
c. AVERAGE
d. STDEV
ANSWER: b
POINTS: 1

41. Whenever the population standard deviation is unknown, which distribution is used in developing an interval estimate
for a population mean?
a. standard distribution
b. z distribution
c. binomial distribution
d. t distribution
ANSWER: d
POINTS: 1

42. The t distribution should be used whenever

a. the sample size is less than 30
b. the sample standard deviation is used to estimate the population standard deviation
c. the population is not normally distributed
d. None of the other answers are correct.
ANSWER: b
POINTS: 1
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Chapter 8 - Interval Estimation

43. Whenever using the t distribution in interval estimation, we must assume that the
a. sample size is less than 30
b. degrees of freedom equals n − 1
c. population is approximately normal
d. finite population correction factor is necessary
ANSWER: b
POINTS: 1

44. From a population that is normally distributed with an unknown standard deviation, a sample of 25 elements is
selected. For the interval estimation of μ, the proper distribution to use is the
a. standard normal distribution
b. z distribution
c. t distribution with 26 degrees of freedom
d. t distribution with 24 degrees of freedom
ANSWER: d
POINTS: 1

45. From a population that is not normally distributed and whose standard deviation is not known, a sample of 50 items is
selected to develop an interval estimate for μ. Which of the following statements is true?
a. The standard normal distribution can be used.
b. The t distribution with 50 degrees of freedom must be used.
c. The t distribution with 49 degrees of freedom must be used.
d. The sample size must be increased in order to develop an interval estimate.
ANSWER: c
POINTS: 1

46. As the number of degrees of freedom for a t distribution increases, the difference between the t distribution and the
standard normal distribution
a. becomes larger
b. becomes smaller
c. stays the same
d. None of the other answers are correct.
ANSWER: b
POINTS: 1

47. The t value with a 95% confidence and 24 degrees of freedom is

a. 1.711
b. 2.064
c. 2.492
d. 2.069
ANSWER: b
POINTS: 1

48. A sample of 26 elements from a normally distributed population is selected. The sample mean is 10 with a standard
deviation of 4. The 95% confidence interval for μ is
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Chapter 8 - Interval Estimation
a. 6.000 to 14.000
b. 9.846 to 10.154
c. 8.384 to 11.616
d. 8.462 to 11.538
ANSWER: c
POINTS: 1

49. A random sample of 36 students at a community college showed an average age of 25 years. Assume the ages of all
students at the college are normally distributed with a standard deviation of 1.8 years. The 98% confidence interval for the
average age of all students at this college is
a. 24.301 to 25.699
b. 24.385 to 25.615
c. 23.200 to 26.800
d. 23.236 to 26.764
ANSWER: a
POINTS: 1

50. A random sample of 25 statistics examinations was taken. The average score in the sample was 76 with a variance of
144. Assuming the scores are normally distributed, the 99% confidence interval for the population average examination
score is
a. 70.02 to 81.98
b. 69.82 to 82.18
c. 70.06 to 81.94
d. 69.48 to 82.52
ANSWER: b
POINTS: 1

51. A random sample of 25 employees of a local company has been measured. A 95% confidence interval estimate for the
mean systolic blood pressure for all company employees is 123 to 139. Which of the following statements is valid?
a. 95% of the sample of employees has a systolic blood pressure between 123 and 139.
b. If the sampling procedure were repeated many times, 95% of the resulting confidence intervals would contain
the population mean systolic blood pressure.
c. 95% of the population of employees has a systolic blood pressure between 123 and 139.
d. If the sampling procedure were repeated many times, 95% of the sample means would be between 123 and
139.
ANSWER: b
POINTS: 1

52. To estimate a population mean, the sample size needed to provide a margin of error of 2 or less with a .95 probability
when the population standard deviation equals 11 is
a. 10
b. 11
c. 116
d. 117
ANSWER: d
POINTS: 1
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Chapter 8 - Interval Estimation

53. It is known that the population variance equals 484. With a 0.95 probability, the sample size that needs to be taken to
estimate the population mean if the desired margin of error is 5 or less is
a. 25
b. 74
c. 189
d. 75
ANSWER: d
POINTS: 1

54. We can use the normal distribution to make confidence interval estimates for the population proportion, p, when
a. np ≥ 5
b. n(1 − p) ≥ 5
c. p has a normal distribution
d. Both np ≥ 5 and n(1 − p) ≥ 5
ANSWER: d
POINTS: 1

55. Using an α = 0.04, a confidence interval for a population proportion is determined to be 0.65 to 0.75. If the level of
significance is decreased, the interval for the population proportion
a. becomes narrower
b. becomes wider
c. does not change
d. Not enough information is provided to answer this question.
ANSWER: b
POINTS: 1

56. In determining the sample size necessary to estimate a population proportion, which of the following information is
not needed?
a. the maximum margin of error that can be tolerated
b. the confidence level required
c. a preliminary estimate of the true population proportion p
d. the mean of the population
ANSWER: d
POINTS: 1

57. For which of the following values of p is the value of p(1 − p) maximized?
a. p = 0.99
b. p = 0.90
c. p = 1.0
d. p = 0.50
ANSWER: d
POINTS: 1

58. A manufacturer wants to estimate the proportion of defective items that are produced by a certain machine. A random
sample of 50 items is taken. Which Excel function would not be appropriate to construct a confidence interval estimate?
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Chapter 8 - Interval Estimation
a. NORM.S.INV
b. COUNTIF
c. STDEV
d. All are appropriate.
ANSWER: c
POINTS: 1

59. A newspaper wants to estimate the proportion of Americans who will vote for Candidate A. A random sample of 1000
voters is taken. Of the 1000 respondents, 526 say that they will vote for Candidate A. Which Excel function would be
used to construct a confidence interval estimate?
a. NORM.S.INV
b. NORM.INV
c. T.INV
d. INT
ANSWER: a
POINTS: 1

60. The general form of an interval estimate of a population mean or population proportion is the _____ plus and minus
the _____.
a. population mean, standard error
b. level of significance, degrees of freedom
c. point estimate, margin of error
d. planning value, confidence coefficient
ANSWER: c
POINTS: 1

61. The degrees of freedom associated with a t distribution are a function of the
a. area in the upper tail
b. sample standard deviation
c. confidence coefficient
d. sample size
ANSWER: d
POINTS: 1

62. The margin of error in an interval estimate of the population mean is a function of all of the following except
a. level of significance
b. sample mean
c. sample size
d. variability of the population
ANSWER: b
POINTS: 1

63. To compute the necessary sample size for an interval estimate of a population mean, all of the following procedures
are recommended when σ is unknown except
a. use the estimated s from a previous study

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Chapter 8 - Interval Estimation
b. use the sample standard deviation from a preliminary sample
c. use judgment or a best guess
d. use .5 as a conservative estimate
ANSWER: d
POINTS: 1

64. To compute the necessary sample size for an interval estimate of a population proportion, all of the following
procedures are recommended when p is unknown except
a. use the sample proportion from a previous study
b. use the sample proportion from a preliminary sample
c. use 1.0 as an estimate
d. use judgment or a best guess
ANSWER: c
POINTS: 1

65. When σ is known, the margin of error in a confidence interval estimate

a. varies from sample to sample of the same size
b. is the same for all samples of the same size
c. increases as the sample size increases
d. is independent of sample size
ANSWER: b
POINTS: 1

66. If we have a finite population such that n/N > .05, the desired margin of error can be obtained using
a. a smaller sample size than the one needed if the population were infinite
b. a larger sample size than the one needed if the population were infinite
c. the same sample size as the one needed if the population were infinite
d. a sample size of 30 or more
ANSWER: a
POINTS: 1

Subjective Short Answer

67. In order to estimate the average electric usage per month, a sample of 196 houses was selected and the electric usage
determined.
a. Assume a population standard deviation of 350 kilowatt hours. Determine the standard error of the mean.
b. With a 0.95 probability, determine the margin of error.
c. If the sample mean is 2,000 KWH, what is the 95% confidence interval estimate of the population mean?
ANSWER: a. 25
b. 49
c. 1951 to 2049
POINTS: 1

68. A random sample of 100 credit sales in a department store showed an average sale of $120.00. From past data, it is
known that the standard deviation of the population is $40.00.
a. Determine the standard error of the mean.
b. With a 0.95 probability, determine the margin of error.
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Chapter 8 - Interval Estimation
c. What is the 95% confidence interval of the population mean?
ANSWER: a. 4.00
b. 7.84
c. 112.16 to 127.84
POINTS: 1

69. In order to determine the average weight of carry-on luggage by passengers in airplanes, a sample of 36 pieces of
carry-on luggage was weighed. The average weight was 20 pounds. Assume that we know the standard deviation of the
population to be 8 pounds.
a. Determine a 97% confidence interval estimate for the mean weight of the carry-on luggage.
b. Determine a 95% confidence interval estimate for the mean weight of the carry-on luggage.
ANSWER: a. 17.11 to 22.89
b. 17.39 to 22.61
POINTS: 1

70. A small stock brokerage firm wants to determine the average daily sales (in dollars) of stocks to their clients. A
sample of the sales for 36 days revealed average daily sales of $200,000. Assume that the standard deviation of the
population is known to be $18,000.
a. Provide a 95% confidence interval estimate for the average daily sale.
b. Provide a 97% confidence interval estimate for the average daily sale.
ANSWER: a. $194,120 to $205,880
b. $193,490 to $206,510
POINTS: 1

71. A random sample of 121 checking accounts at a bank showed an average daily balance of $280. The population
standard deviation is known to be $60.
Is it necessary to know anything about the shape of the distribution of the account balances in order to make an
a.
interval estimate of the mean of all the account balances? Explain.
b. Find the standard error of the mean.
c. Give a point estimate of the population mean.
d. Construct a 95% confidence interval estimate for the population mean.
e. Interpret the confidence interval estimate that you constructed in part d.
ANSWER: a. No, since the sample means will be normally distributed by the central limit theorem.
b. 5.4545
c. 280
d. 269.31 to 290.69
With a 95% level of confidence, we can state that the average daily balance of all checking accounts at
e.
this bank is between $269.31 and $290.69.
POINTS: 1

72. A random sample of 49 lunch customers was taken at a restaurant. The average amount of time the customers in the
sample stayed in the restaurant was 33 minutes. From past experience, it is known that the population standard deviation
equals 10 minutes.
a. Compute the standard error of the mean.
What can be said about the sampling distribution for the average amount of time customers spent in the restaurant?
b.
Be sure to explain your answer.
c. With a .95 probability, what statement can be made about the size of the margin of error?
d. Construct a 95% confidence interval for the true average amount of time customers spent in the restaurant.
With a .95 probability, how large of a sample would have to be taken to provide a margin of error of 2.5 minutes or
e.
less?
ANSWER: a. 1.4286
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Chapter 8 - Interval Estimation
b. Normal by the central limit theorem
c. There is a .95 probability that the sample mean will provide a margin of error of 2.80 or less.
d. 30.20 to 35.80
e. 62
POINTS: 1

73. A simple random sample of 144 items resulted in a sample mean of 1080. The population standard deviation is known
to be 240. Develop a 95% confidence interval for the population mean.
ANSWER: 1040.8 to 1119.2
POINTS: 1

74. A random sample of 26 checking accounts at a bank showed an average daily balance of $300 and a standard
deviation of $45. The balances of all checking accounts at the bank are normally distributed. Develop a 95% confidence
interval estimate for the mean of the population.
ANSWER: $281.82 to $318.18
POINTS: 1

75. A random sample of 81 students at a local university showed that they work an average of 100 hours per month. The
population standard deviation is known to be 27 hours. Compute a 95% confidence interval for the mean hours per month
all students at the university work.
ANSWER: 94.12 to 105.88
POINTS: 1

76. A random sample of 81 children with working mothers showed that they were absent from school an average of 6
days per term. The population standard deviation is known to be 1.8 days. Provide a 90% confidence interval for the
average number of days absent per term for all the children.
ANSWER: 5.631 to 6.329
POINTS: 1

77. The Highway Safety Department wants to study the driving habits of individuals. A sample of 41 cars traveling on the
highway revealed an average speed of 60 miles per hour and a standard deviation of 7 miles per hour. The population of
car speeds is approximately normally distributed. Determine a 90% confidence interval estimate for the speed of all cars.
ANSWER: 58.16 to 61.84
POINTS: 1

78. Computer Services, Inc. wants to determine a confidence interval for the average CPU time of their teleprocessing
transactions. A sample of 196 transactions yielded a mean of 5 seconds. The population standard deviation is 1.4 seconds.
Determine a 97% confidence interval for the average CPU time.
ANSWER: 4.783 to 5.217
POINTS: 1

79. The average monthly electric bill of a random sample of 256 residents of a city is $90. The population standard
deviation is assumed to be $24.
a. Construct a 90% confidence interval for the mean monthly electric bills of all residents.
b. Construct a 95% confidence interval for the mean monthly electric bills of all residents.
ANSWER: a. 87.5325 to 92.4675
b. 87.06 to 92.94
POINTS: 1

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Chapter 8 - Interval Estimation
80. A sample of 100 cans of coffee showed an average weight of 13 ounces. The population standard deviation is 0.8
ounces.
a. Construct a 95% confidence interval for the mean of the population.
b. Construct a 95.44% confidence interval for the mean of the population.
c. Discuss why the answers in parts a and b are different.
ANSWER: a. 12.8432 to 13.1568
b. 12.84 to 13.16
c. As the level of confidence increases, the confidence interval becomes wider.
POINTS: 1

81. In order to determine how many hours per week freshmen college students watch television, a random sample of 256
students was selected. It was determined that the students in the sample spent an average of 14 hours. The standard
deviation is 3.2 hours per week for all freshman college students.
Provide a 95% confidence interval estimate for the average number of hours that all college freshmen spend
a.
watching TV per week.
Suppose the sample mean came from a sample of 25 students. Provide a 95% confidence interval estimate for the
b. average number of hours that all college freshmen spend watching TV per week. Assume that the hours are normally
distributed.
ANSWER: a. 13.608 to 14.392
b. 12.679 to 15.321
POINTS: 1

82. A random sample of 36 magazine subscribers is taken to estimate the mean age of all subscribers. The data follow.
Use Excel to construct a 90% confidence interval estimate of the mean age of all of this magazine's subscribers.
Subscriber Age Subscriber Age Subscriber Age
1 39 13 40 25 38
2 27 14 35 26 51
3 38 15 35 27 26
4 33 16 41 28 39
5 40 17 34 29 35
6 35 18 46 30 37
7 51 19 44 31 33
8 36 20 44 32 41
9 47 21 43 33 36
10 28 22 32 34 33
11 33 23 29 35 46
12 35 24 33 36 37
ANSWER:
A B C D Value for D
1 Subscriber Age Sample Size =COUNT(B2:B37) 36
2 1 39 Sample Mean =AVERAGE(B2:B37) 37.5
3 2 27
Popul. Std.
4 3 38 6.6 6.6
Dev.
Confid.
5 4 33 0.9 0.9
Coeffic.
Level of
6 5 40 =1-D5 0.1
Signif.
7 6 35
Margin of
8 7 51 =CONFIDENCE.NORM(D6,D4,D1) 1.8095
Error
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Chapter 8 - Interval Estimation
9 8 36
Point
10 9 50 =D2 37.5
Estimate
11 10 28 Lower Limit =D12-D8 35.6905
12 11 33 Upper Limit =D12+D8 39.3095
13 12 35
14 13 40
15 14 35
16 15 35

Interval is 35.6905 to 39.3095

POINTS: 1

83. A simple random sample of 25 items from a normally distributed population resulted in a sample mean of 28 and a
standard deviation of 7.5. Construct a 95% confidence interval for the population mean.
ANSWER: 24.904 to 31.096
POINTS: 1

84. A sample of 25 patients in a doctor's office showed that they had to wait an average of 35 minutes with a standard
deviation of 10 minutes before they could see the doctor. Provide a 98% confidence interval estimate for the average
waiting time of all the patients who visit this doctor. Assume the population of waiting times is normally distributed.
ANSWER: 30.016 to 39.984
POINTS: 1

85. A sample of 16 students from a large university is taken. The average age in the sample was 22 years with a standard
deviation of 6 years. Construct a 95% confidence interval for the average age of the population. Assume the population of
student ages is normally distributed.
ANSWER: 18.8035 to 25.1965
POINTS: 1

86. The proprietor of a boutique in New York wanted to determine the average age of his customers. A random sample of
25 customers revealed an average age of 28 years with a standard deviation of 10 years. Determine a 95% confidence
interval estimate for the average age of all his customers. Assume the population of customer ages is normally distributed.
ANSWER: 23.872 to 32.128
POINTS: 1

87. A statistician selected a sample of 16 accounts receivable and determined the mean of the sample to be $5,000 with a
standard deviation of $400. She reported that the sample information indicated the mean of the population ranges from
$4,739.80 to $5,260.20. She did not report what confidence coefficient she had used. Based on the above information,
determine the confidence coefficient that was used.
ANSWER: 0.98
POINTS: 1

88. The makers of a soft drink want to identify the average age of its consumers. A sample of 16 consumers is taken. The
average age in the sample was 22.5 years with a standard deviation of 5 years. Assume the population of consumer ages is
normally distributed.
a. Construct a 95% confidence interval for the average age of all the consumers.
b. Construct an 80% confidence interval for the average age of all the consumers.
c. Discuss why the 95% and 80% confidence intervals are different.
ANSWER: a. 19.836 to 25.164
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Chapter 8 - Interval Estimation
b. 20.824 to 24.176
c. As the level of confidence increases, the confidence interval gets wider.
POINTS: 1

89. A random sample of 25 observations was taken from a normally distributed population. The average in the sample was
84.6 with a variance of 400.
a. Construct a 90% confidence interval for μ.
b. Construct a 99% confidence interval for μ.
c. Discuss why the 90% and 99% confidence intervals are different.
What would you expect to happen to the confidence interval in part a if the sample size was increased? Be sure to
d.
explain your answer.
ANSWER: a. 77.756 to 91.444
b. 73.412 to 95.788
c. As the level of confidence increases, the confidence interval gets wider.
d. Decrease in width since the margin of error decreased.
POINTS: 1

90. You are given the following information obtained from a random sample of 4 observations taken from a large,
normally distributed population.
25 47 32 56
Construct a 95% confidence interval for the mean of the population.
ANSWER: 17.613 ≤ μ ≤ 62.387
POINTS: 1

91. You are given the following information obtained from a random sample of 4 observations from a large, normally
distributed population.
25 47 32 56
a. What is the point estimate of μ?
b. Construct a 95% confidence interval for μ.
c. Construct a 90% confidence interval for μ.
d. Discuss why the 90% and 95% confidence intervals are different.
ANSWER: a. 40
b. 17.613 to 62.387
c. 23.445 to 56.555
d. As the level of confidence increases, the confidence interval gets wider.
POINTS: 1

92. The monthly incomes from a random sample of faculty at a university are shown below.
Monthly Income ($1000s)
3.0
4.0
6.0
3.0
5.0
5.0
6.0
8.0
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Chapter 8 - Interval Estimation
Compute a 90% confidence interval for the mean of the population. The population of all faculty incomes is known to be
normally distributed. Give your answer in dollars.
ANSWER: $3,867.52 to $6,132.48
POINTS: 1

93. Fifty students are enrolled in an Economics class. After the first examination, a random sample of 5 papers was
selected. The grades were 60, 75, 80, 70, and 90.
a. Calculate the estimate of the standard error of the mean.
What assumption must be made before we can determine an interval for the mean grade of all the students in the
b.
class? Explain why.
Assume the assumption of Part b is met. Provide a 90% confidence interval for the mean grade of all the students in
c.
the class.
If there were 200 students in the class, what would be the 90% confidence interval for the mean grade of all the
d.
students in the class?
ANSWER: a. 4.79
Since the sample is small (n < 30) and σ is estimated from s, we must assume the distribution of all the
b.
grades is normal.
c. 64.783 to 85.217
d. 64.34 to 85.66
POINTS: 1

94. A local university administers a comprehensive examination to the recipients of a B.S. degree in Business
Administration. A sample of 5 examinations is selected at random and scored. The scores are shown below.
Grade
56
85
65
86
93
Use Excel to determine an interval estimate for the mean of the population at a 98% confidence level. Interpret your
results.
ANSWER:
A B C D Value for D
1 Grade Mean 77
2 56 Standard Error 7.021396
3 85 Median 85
4 65 Mode #N/A
5 86 Standard Deviation 15.70032
6 93 Sample Variance 246.5
7 Kurtosis -2.00512
8 Skewness -0.608507
9 Range 37
10 Minimum 56
11 Maximum 93
12 Sum 385
13 Count 5
14 Confidence Level (98.0%) 26.308723
15
16 Point Estimate =D1 77.0000

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Chapter 8 - Interval Estimation
17 Lower Limit =D1-D14 50.6913
18 Upper Limit =D1+D14 103.3087

Interpretation of Interval Estimate: With a 98% level of confidence, we can state that the mean
comprehensive examination score of all recipients of the B.S. degree in Business Administration is between
50.6913 and 103.3087.
POINTS: 1

95. Below you are given ages that were obtained by taking a random sample of 9 undergraduate students.
19 22 23 19 21 22 19 23 21
Use Excel to determine an interval estimate for the mean of the population at a 99% confidence level. Interpret your
results.
ANSWER:
A B C D Value for D
1 Grade Mean 21
2 19 Standard Error 0.552771
3 22 Median 21
4 23 Mode 19
5 19 Standard Deviation 1.658312
6 21 Sample Variance 2.75
7 22 Kurtosis -1.667060
8 19 Skewness -0.211450
9 23 Range 4
10 21 Minimum 19
11 Maximum 23
12 Sum 189
13 Count 9
14 Confidence Level (98.0%) 1.854756
15
16 Point Estimate =D1 21.0000
17 Lower Limit =D1-D14 19.1452
18 Upper Limit =D1+D14 22.8548

Interpretation of Interval Estimate: With a 99% level of confidence, we can state that the mean age of
undergraduate students is between 19.1452 and 22.8548.
POINTS: 1

96. The monthly starting salaries of students who receive an MBA degree have a standard deviation of $110. What size
sample should be selected to obtain a 0.95 probability of estimating the mean monthly income within $20 or less?
ANSWER: 117
POINTS: 1

97. A coal company wants to determine a 95% confidence interval estimate for the average daily tonnage of coal that they
mine. Assuming that the company reports that the standard deviation of daily output is 200 tons, how many days should
they sample so that the margin of error will be 39.2 tons or less?
ANSWER: 100
POINTS: 1

98. If the standard deviation of the lifetimes of vacuum cleaners is estimated to be 300 hours, how large of a sample must
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Chapter 8 - Interval Estimation
be taken in order to be 97% confident that the margin of error will not exceed 40 hours?
ANSWER: 265
POINTS: 1

99. A researcher is interested in determining the average number of years employees of a company stay with the company.
If past information shows a standard deviation of 7 months, what size sample should be taken so that at 95% confidence
the margin of error will be 2 months or less?
ANSWER: 48
POINTS: 1

100. If the standard deviation for the lifetimes of washing machines is estimated to be 800 hours, how large a sample must
be taken in order to be 97% confident that the margin of error will not exceed 50 hours?
ANSWER: 1206
POINTS: 1

101. A real estate agent wants to estimate the mean selling price of two-bedroom homes in a particular area. She wants to
estimate the mean selling price to within $10,000 with an 89.9% level of confidence. The standard deviation of selling
prices is unknown but the agent estimates that the highest selling price is $1,000,000 and the lowest is $50,000. How
many homes should be sampled?
ANSWER: 1518
POINTS: 1

102. For inventory purposes, a grocery store manager wants to estimate the mean number of pounds of cat food sold per
month. The estimate is desired to be within 10 pounds with a 95% level of confidence. A pilot study provided a standard
deviation of 27.6 pounds. How many months should be sampled?
ANSWER: 30
POINTS: 1

103. It is known that the variance of a population equals 484. A random sample of 81 observations is going to be taken
from the population.
a. With a .80 probability, what statement can be made about the size of the margin of error?
b. With a .80 probability, how large of a sample would have to be taken to provide a margin of error of 3 or less?
ANSWER: a. There is a .80 probability that the sample mean will provide a margin of error of 3.129 or less.
b. 89
POINTS: 1

104. In a random sample of 400 registered voters, 120 indicated they plan to vote for Candidate A. Determine a 95%
confidence interval for the proportion of all the registered voters who will vote for Candidate A.
ANSWER: 0.255 to 0.345
POINTS: 1

105. In a random sample of 200 registered voters, 120 indicated they are Democrats. Develop a 95% confidence interval
for the proportion of registered voters in the population who are Democrats.
ANSWER: .5321 to .6679
POINTS: 1

106. In a random sample of 500 college students, 23% say that they read or watch the news every day. Develop a 90%
confidence interval for the population proportion. Interpret your results.
ANSWER: 0.199 to 0.261
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Chapter 8 - Interval Estimation
With a 90% level of confidence we can state that the proportion of all college students who read or watch the
news every day is between 0.199 and 0.261.
POINTS: 1

107. Six hundred consumers were asked whether they would like to purchase a domestic or a foreign automobile. Their
responses are given below.
Preference Frequency
Domestic 240
Foreign 360
Develop a 95% confidence interval for the proportion of all consumers who prefer to purchase domestic automobiles.
ANSWER: 0.3608 to 0.4392
POINTS: 1

108. A university planner wants to determine the proportion of spring semester students who will attend summer school.
She surveys 32 current students discovering that 12 will return for summer school.
Construct a 90% confidence interval estimate for the proportion of current spring students who will return for
a.
summer school.
b. With a 0.95 probability, how large of a sample would have to be taken to provide a margin of error of 3% or less?
ANSWER: a. 0.234 to 0.516
b. 1001
POINTS: 1

109. A new brand of breakfast cereal is being market tested. One hundred boxes of the cereal were given to consumers to
try. The consumers were asked whether they liked or disliked the cereal. You are given their responses below.
Response Frequency
Liked 60
Disliked 40
100
a. What is the point estimate of the proportion of people who will like the cereal?
b. Construct a 95% confidence interval for the proportion of all consumers who will like the cereal.
c. What is the margin of error for the 95% confidence interval that you constructed in part b?
d. With a .95 probability, how large of a sample needs to be taken to provide a margin of error of .09 or less?
ANSWER: a. 0.6
b. 0.504 to 0.696
c. .096
d. 114
POINTS: 1

110. A marketing firm is developing a new television advertisement for a large discount retail chain. A sample of 30
people is shown two potential ads and asked their preference. The results for ad #1 follow. Use Excel to develop a 95%
confidence interval estimate of the proportion of people in the population who will prefer ad #1.
Prefer Advertisement #1
yes no no yes yes no
no no no yes no yes
no no yes yes yes no
yes yes no no no yes
yes no yes yes no no
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Chapter 8 - Interval Estimation
ANSWER:
A B C D Value for D
1 Prefer Ad 1 Sample size =COUNTA(A2:A31) 30
2 yes Response of Interest yes yes
3 no Count for Response =COUNTIF(A2:A31,"yes") 14
4 no Sample Proportion =D3/D1 0.466667
5 yes
6 yes Confidence Coefficient 0.95 0.95
7 no Level of Significance =1-D5 0.05
8 no z value =NORM.S.INV(1-D7/2) 1.959961
9 no
10 no Standard Error =SQRT((D4*(1-D4)/D1)) 0.091084
11 yes Margin of Error =D8*D10 0.178521
12 no
13 yes Point Estimate =D4 0.466667
14 no Lower Limit =D13-D11 0.28815
15 no Upper Limit =D13+D11 0.64519
POINTS: 1

111. A survey of 40 students at a local college asks, "Where do you buy the majority of your books?" The responses fell
into three categories: "at the campus bookstore," "on the Internet," and "other." The results follow. Use Excel to estimate
the proportion of all of the college students who buy their books on the Internet.
Where Most Books Bought
bookstore bookstore internet other internet other bookstore
other bookstore bookstore bookstore bookstore bookstore other
bookstore bookstore bookstore internet internet other other
other other other other other internet bookstore
other other internet other bookstore bookstore other
bookstore internet internet other bookstore
ANSWER:
A B C D Value for D
1 where bought Sample size =COUNTA(A2:A41) 40
2 bookstore Response of Interest internet internet
3 bookstore Count for Response =COUNTIF(A2:A41,"internet") 8
4 internet Sample Proportion =D2/D1 0.2
5 other
6 internet Confidence Coefficient 0.95 0.95
7 other Level of Significance =1-D6 0.05
8 bookstore z value =NORM.S.INV(1-D6/2) 1.95996108
9 bookstore
10 bookstore Standard Error =SQRT((D4*(1-D4)/D1)) 0.06324555
11 bookstore Margin of Error =D8*D10 0.12395882
12 bookstore
13 bookstore Point Estimate =D4 0.2
14 bookstore Lower Limit =D13-D11 0.07604
15 internet Upper Limit =D13+D11 0.32396
POINTS: 1

112. A health club annually surveys its members. Last year, 33% of the members said they use the treadmill at least 4
times a week. How large of sample should be taken this year to estimate the percentage of members who use the treadmill
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Chapter 8 - Interval Estimation
at least 4 times a week? The estimate is desired to have a margin of error of 5% with a 95% level of confidence.
ANSWER: 340
POINTS: 1

113. A local hotel wants to estimate the proportion of its guests that are from out-of-state. Preliminary estimates are that
45% of the hotel guests are from out-of-state. How large a sample should be taken to estimate the proportion of out-of-
state guests with a margin of error no larger than 5% and with a 95% level of confidence?
ANSWER: 381
POINTS: 1

114. The manager of a department store wants to determine what proportion of people who enter the store use the store's
credit card for their purchases. What size sample should he take so that at 99% confidence the error will not be more than
8%?
ANSWER: 260
POINTS: 1

115. The manager of Hudson Auto Repair wants to advertise one price for an engine tune-up, with parts included. Before
he decides the price to advertise, he needs a good estimate of the average cost of tune-up parts. A sample of 20 customer
invoices for tune-ups has been taken and the costs of parts, rounded to the nearest dollar, are listed below.
91 78 93 57 75 52 99 80 105 62
104 74 62 68 97 73 77 65 80 109

Provide a 90% confidence interval estimate of the mean cost of parts per tune-up for all of the tune-ups performed at
Hudson Auto Repair.
ANSWER: 80.05 +/− 6.54 or 73.51 to 86.59
POINTS: 1

116. The manager of University Credit Union (UCU) is concerned about checking account transaction discrepancies.
Customers are bringing transaction errors to the attention of the bank’s staff several months after they occur. The manager
would like to know what proportion of his customers balance their checking accounts within 30 days of receiving a
transaction statement from the bank.

Using random sampling, 400 checking account customers are contacted by telephone and asked if they routinely balance
their accounts within 30 days of receiving a statement. 271 of the 400 customers respond Yes.
a. Develop a 95% confidence interval estimate for the proportion of the population of checking account customers at UCU
that routinely balance their accounts in a timely manner.
b. Suppose UCU wants a 95% confidence interval estimate of the population proportion with a margin of error of E
= .025. How large a sample size is needed?
ANSWER: a. .6775 +/- .0458 or .6317 to .7233
b. 1343
POINTS: 1

117. National Discount has 260 retail outlets throughout the United States. National evaluates each potential location for
a new retail outlet in part on the mean annual income of the households in the marketing area of the new location.
National develops an interval estimate of the mean annual income in a potential marketing area after taking a random
sample of households.

For a marketing area being studied, a sample of 36 households was taken and the sample mean income was $21,100.39.
Based on past experience, National Discount assumes a known value of s = $4500 for the population income standard
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Chapter 8 - Interval Estimation
deviation.

a. Develop a 95% confidence interval for the mean annual income of households in this marketing area.
b. Suppose that National’s management team wants a 95% confidence interval estimate of the population mean with a
margin of error of E = $500. How large a sample size is needed?

ANSWER:
a. Interval is $19,630.42 to $22,570.36.
b. Sample size = 312.

POINTS: 1

118. A reporter for a student newspaper is writing an article on the cost of off-campus housing. A sample was taken of 10
one-bedroom units within a half-mile of campus and the rents paid. The sample mean is $550 and the sample standard
deviation is $60.05. Provide a 95% confidence interval estimate of the mean rent per month for the population of one-
bedroom units within a half-mile of campus. We will assume this population to be normally distributed.
ANSWER:
Interval is $507.05 to $592.95
POINTS: 1

119. Political Science, Inc. (PSI) specializes in voter polls and surveys designed to keep political office seekers informed
of their position in a race. Using telephone surveys, interviewers ask registered voters who they would vote for if the
election were held that day. In a recent election campaign, PSI found that 220 registered voters, out of 500 contacted,
favored a particular candidate.

a. PSI wants to develop a 95% confidence interval estimate for the proportion of the population of registered voters that
favors the candidate.
b. Suppose that PSI would like 99% confidence that the sample proportion is within +/- .03 of the population proportion.
How large a sample size is needed to provide the desired margin of error?

ANSWER:
a. Interval is .3965 to .4835
b. Sample size is 1816
POINTS: 1

120. An apartment complex developer is considering building apartments in College Town, but first wants to do a market
study. A sample of monthly rent values ($) for studio apartments in College Town was taken. The data collected from
the 70-apartment sample resulted in a sample mean of $490.80. (Based on past experience, the developer assumes a
known value of s = $55 for the population standard deviation.)

a. Develop a 98% confidence interval for the mean monthly rent for all studio apartments in this city.
b. Suppose the apartment developer wants a 98% confidence interval estimate of the population mean with a margin of
error of E = $10. How large a sample size is needed?

ANSWER:
a. Interval is 475.48 to 506.12
b. Sample size is 162

POINTS: 1

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