CHAPTER EIGHT INTERVAL ESTIMATION MULTIPLE CHOICE QUESTIONS In the following multiple choice questions, circle the correct

answer. 1. When s is used to estimate , the margin of error is computed by using a. normal distribution b. t distribution c. the mean of the sample d. the mean of the population Answer: b 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 these alternati es is correct. Answer: b "or the inter al estimation of when is #nown and the sample is large, the proper distribution to use is a. the normal distribution b. the t distribution with n degrees of freedom c. the t distribution with n $ 1 degrees of freedom d. the t distribution with n $ 2 degrees of freedom Answer: a An estimate of a population parameter that pro ides an inter al of alues belie ed to contain the alue of the parameter is #nown as the a. confidence le el b. inter al estimate c. parameter alue d. population estimate Answer: b 'he alue added and subtracted from a point estimate in order to de elop an inter al estimate of the population parameter is #nown as the a. confidence le el b. margin of error c. parameter estimate d. inter al estimate Answer: b

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(hapter )ight If an inter al estimate is said to be constructed at the +,- confidence le el, the confidence coefficient would be a. ,.1 b. ,.+& c. ,.+ d. ,.,& Answer: c Whene er the population standard de iation is unknown and the population has a normal or near/normal distribution, which distribution is used in de eloping an inter al estimation0 a. standard distribution b. 1 distribution c. alpha distribution d. t distribution Answer: d In inter al estimation, the t distribution is applicable only when a. the population has a mean of less than !, b. the sample standard de iation is used to estimate the population standard de iation c. the ariance of the population is #nown d. the standard de iation of the population is #nown Answer: b In de eloping an inter al estimate, if the population standard de iation is un#nown a. it is impossible to de elop an inter al estimate b. the standard de iation is arri ed at using the range c. the sample standard de iation can be used d. it is assumed that the population standard de iation is 1 Answer: c In order to use the normal distribution for inter al estimation of when is #nown and the sample is ery small, the population a. must be ery large b. must ha e a normal distribution c. can ha e any distribution d. must ha e a mean of at least 1 Answer: b "rom a population that is not normally distributed and whose standard de iation is not #nown, a sample of * items is selected to de elop an inter al estimate for the mean of the population 34. a. 'he normal distribution can be used. b. 'he t distribution with & degrees of freedom must be used. c. 'he t distribution with * degrees of freedom must be used. d. 'he sample si1e must be increased.

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Inter al )stimation Answer: d 12.

A sample of 2,, elements from a population is selected, and the standard de iation of the sample is computed. "or an inter al estimation of , the proper distribution to use is the a. normal distribution b. t distribution with 2,, degrees of freedom c. t distribution with 2,1 degrees of freedom d. t distribution with 2,2 degrees of freedom Answer: a "rom a population that is normally distributed, a sample of 2& elements is selected and the standard de iation of the sample is computed. "or the inter al estimation of , the proper distribution to use is the a. normal distribution b. t distribution with 2& degrees of freedom c. t distribution with 2* degrees of freedom d. t distribution with 2% degrees of freedom Answer: d 'he 1 alue for a +..2- confidence inter al estimation is a. 2.,2 b. 1.+* c. 2.,, d. 2.2+ Answer: d 'he t alue with a +&- confidence and 2% degrees of freedom is a. 1..11 b. 2.,*% c. 2.%+2 d. 2.,*+ Answer: b As the sample si1e increases, the margin of error a. increases b. decreases c. stays the same d. increases or decreases depending on the si1e of the mean Answer: b "or which of the following alues of 5 is the alue of 531 / 54 ma6imi1ed0 a. 5 7 ,.++ b. 5 7 ,.+, c. 5 7 ,.,1 d. 5 7 ,.&, Answer: d

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A +&- confidence inter al for a population mean is determined to be 1,, to 12,. If the confidence coefficient is reduced to ,.+,, the inter al for a. becomes narrower b. becomes wider c. does not change d. becomes ,.1 Answer: a 8sing an 7 ,.,% a confidence inter al for a population proportion is determined to be ,.*& to ,..&. If the le el of significance is decreased, the inter al for the population proportion a. becomes narrower b. becomes wider c. does not change d. remains the same Answer: b 'he ability of an inter al estimate to contain the alue of the population parameter is described by the a. confidence le el b. degrees of freedom c. precise alue of the population mean d. degrees of freedom minus 1 Answer: a After computing a confidence inter al, the user belie es the results are meaningless because the width of the inter al is too large. Which one of the following is the best recommendation0 a. Increase the le el of confidence for the inter al. b. 9ecrease the sample si1e. c. Increase the sample si1e. d. :educe the population ariance. Answer: c If we change a +&- confidence inter al estimate to a ++- confidence inter al estimate, we can e6pect a. the si1e of the confidence inter al to increase b. the si1e of the confidence inter al to decrease c. the si1e of the confidence inter al to remain the same d. the sample si1e to increase Answer: a In general, higher confidence le els pro ide a. wider confidence inter als b. narrower confidence inter als c. a smaller standard error

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Inter al )stimation d. unbiased estimates Answer: a 2%. An inter al estimate is a range of alues 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 In determining the sample si1e necessary to estimate a population proportion, which of the following information is not needed0 a. the ma6imum margin of error that can be tolerated b. the confidence le el required c. a preliminary estimate of the true population proportion 5 d. the mean of the population Answer: d Whene er using the t distribution for inter al estimation 3when the sample si1e is ery small4, we must assume that a. the sample has a mean of at least !, b. the sampling distribution is not normal c. the population is appro6imately normal d. the finite population correction factor is necessary Answer: c A sample of 2, items from a population with an un#nown is selected in order to de elop an inter al estimate of . Which of the following is not necessary0 a. We must assume the population has a normal distribution. b. We must use a t distribution. c. <ample standard de iation must be used to estimate . d. 'he sample must ha e a normal distribution. Answer: d A random sample of 1%% obser ations has a mean of 2,, a median of 21, and a mode of 22. 'he population standard de iation is #nown to equal %.2. 'he +&.%%- confidence inter al for the population mean is a. 1&.2 to 2%.2 b. 1+.2,, to 2,.2,, c. 1+.21* to 2,..2% d. 21.2 to 22.2 Answer: b 'he sample si1e needed to pro ide a margin of error of 2 or less with a .+& probability when the population standard de iation equals 11 is a. 1, b. 11

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(hapter )ight c. 11* d. 11. Answer: d

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It is #nown that the population ariance equals %2%. With a ,.+& probability, the sample si1e that needs to be ta#en if the desired margin of error is & or less is a. 2& b. .% c. 12+ d. .& Answer: d When constructing a confidence inter al for the population mean and the standard de iation of the sample is used, the degrees of freedom for the t distribution equals a. n/1 b. n c. 2+ d. !, Answer: a Which of the following best describes the form of the sampling distribution of the sample proportion0 a. When standardi1ed, it is e6actly the standard normal distribution. b. When standardi1ed, it is the t distribution. c. It is appro6imately normal as long as n !,. d. It is appro6imately normal as long as np & and n31/p4 &. Answer: d In a random sample of 1%% obser ations, for 5 is a. ,.&2 to ,.*2 b. ,.1%% to ,.2,, c. ,.*, to ,.., d. ,.&, to ,.., Answer: a
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A machine that produces a ma=or part for an airplane engine is monitored closely. In the past, 1,- of the parts produced would be defecti e. With a .+& probability, the sample si1e that needs to be ta#en if the desired margin of error is .,% or less is a. 11, b. 111 c. 21* d. 21. Answer: d We are interested in conducting a study in order to determine what percentage of oters of a state would ote for the incumbent go ernor. What is the minimum

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si1e sample needed to estimate the population proportion with a margin of error of ,.,& or less at +&- confidence0 a. 2,, b. 1,, c. &2 d. 1+* Answer: d !*. In a sample of %,, oters, !*, indicated they fa or the incumbent go ernor. 'he +&- confidence inter al of oters not fa oring the incumbent is a. ,.2.1 to ,.+2+ b. ,.12, to ,.22, c. ,..*& to ,.2!& d. ,.,.1 to ,.12+ Answer: d

Exhibit 8-1 In order to estimate the a erage time spent on the computer terminals per student at a local uni ersity, data were collected for a sample of 21 business students o er a one wee# period. Assume the population standard de iation is 1.2 hours. !.. :efer to )6hibit 2/1. 'he standard error of the mean is a. ..&, b. ,.!+ c. 2.,, d. ,.2, Answer: d :efer to )6hibit 2/1. With a ,.+& probability, the margin of error is appro6imately a. ,.!+ b. 1.+* c. ,.2, d. 1.*% Answer: a :efer to )6hibit 2/1. If the sample mean is + hours, then the +&- confidence inter al is a. ..,% to 11,.+* hours b. ..!* to 1,.*% hours c. ..2, to 1,.2, hours d. 2.*1 to +.!+ hours Answer: d

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Exhibit 8A random sample of 121 automobiles tra eling on an interstate showed an a erage speed of *& mph. "rom past information, it is #nown that the standard de iation of the population is 22 mph.

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(hapter )ight :efer to )6hibit 2/2. If we are interested in determining an inter al estimate for at +*.*- confidence, the > alue to use is a. 1.+* b. ,.%2! c. 2.12 d. 1.*%& Answer: c :efer to )6hibit 2/2. 'he standard error of the mean is a. 22.,, b. +*.*, c. %.2% d. 2.,, Answer: d :efer to )6hibit 2/2. If the confidence coefficient is reduced to ,.+, the standard error of the mean a. will increase b. will decrease c. remains unchanged d. becomes negati e Answer: c :efer to )6hibit 2/2. 'he +*.*- confidence inter al for is a. *!.,, to *..,, b. *,..* to *+.2% c. *1.,2 to *2.+2 d. *,.,, to 2,.,, Answer: b :efer to )6hibit 2/2. If the sample si1e was 1,, 3other factors remain unchanged4, the inter al for would a. not change b. become narrower c. become wider d. become 1ero Answer: c

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Inter al )stimation PRO!LEMS 1.

?ou are gi en the following information obtained from a sample of & obser ations ta#en from a population that has a normal distribution. +% .2 +! &% ..

9e elop a +2- confidence inter al estimate for the mean of the population. Answer: &,.2+ to 1,&..1 2. @any people who bought A/Bame gaming systems o er the holidays ha e complained that the systems they purchased were defecti e. In a sample of 12,, units sold, 12 units were defecti e. a. 9etermine a +&- confidence inter al for the percentage of defecti e systems. b. If 1.& million A/Bames were sold o er the holidays, determine an inter al for the number of defecti es in sales. Answers: a. ,.,,212 to ,.,2122 3rounded4 b. 12,12% to !2,21* !. 'he a erage monthly electric bill of a random sample of 2&* residents of a city is C+, with a standard de iation of C2%. a. (onstruct a +,- confidence inter al for the mean monthly electric bills of all residents. b. (onstruct a +&- confidence inter al for the mean monthly electric bills of all residents. Answers: a. 2..&!2& to +2.%*.& b. 2..,* to +2.+% %. 'wo hundred students are enrolled in an )conomics class. After the first e6amination, a random sample of * papers was selected. 'he grades were *&, .&, 2+, .1, ., and 2,. a. 9etermine the standard error of the mean. b. What assumption must be made before we can determine an inter al for the mean grade of all the students in the class0 )6plain why. c. Assume the assumption of 5art b is met. 5ro ide a +&- confidence inter al for the mean grade of all the students in the class. Answers: a. !.%.%

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(hapter )ight b. <ince is estimated from s, we must assume the distribution of all the grades is normal. c. **.,. to 2!.+!

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A statistician selected a sample of 1* accounts recei able and determined the mean of the sample to be C&,,,, with a standard de iation of C%,,. De reported that the sample information indicated the mean of the population ranges from C%,.!+.2, to C&,2*,.2,. De neglected to report what confidence coefficient he had used. Eased on the abo e information, determine the confidence coefficient that was used. Assume the population has a normal distribution. Answer: ,.+2

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A researcher is interested in determining the a erage number of years employees of a company stay with the company. If past information shows a standard de iation of . months, what si1e sample should be ta#en so that at +&- confidence the margin of error will be 2 months or less0 Answer: %2

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A sample of 1%% cans of coffee showed an a erage weight of 1* ounces with a standard de iation of 1.2 ounces. a. (onstruct a *2.!*- confidence inter al for the mean of the population. b. (onstruct a +.- confidence inter al for the mean of the population. c. 9iscuss why the answers in 5arts a and b are different. Answers: a. !1.22 to !2.12 b. !1..& to !2.2& c. As the le el of confidence increases, the confidence inter al becomes wider.

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A random sample of 121 chec#ing accounts at a ban# showed an a erage daily balance of C22,. 'he standard de iation of the population is #nown to be C**. a. Is it necessary to #now anything about the shape of the distribution of the account balances in order to ma#e an inter al estimate of the mean of all the account balances0 )6plain. b. "ind the standard error of the mean. c. Bi e a point estimate of the population mean. d. (onstruct a 2,- confidence inter al estimates for the mean. e. (onstruct a +&- confidence inter al for the mean. Answers: a. No, the sample is large and the standard de iation of the population is #nown. b. *

Inter al )stimation c. 22, d. 2.2.!1 to 22..*+ e. 2*2.2% to 2+1..* +.

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A random sample of &! obser ations was ta#en. 'he a erage in the sample was +, with a ariance of %,,. a. b. c. d. (onstruct a +2- confidence inter al for . (onstruct a ++- confidence inter al for . 9iscuss why the +2- and ++- confidence inter als are different. What would you e6pect to happen to the confidence inter al in 5art a if the sample si1e was increased0 Ee sure to e6plain your answer.

Answers: a. 2!.%1 to +*.&+ b. 22.*& to +..!% c. As the le el of confidence increases, the confidence inter al gets wider. d. 9ecrease since the sampling error decreased. 1,. A new brand of chocolate bar is being mar#et tested. "our hundred of the new chocolate bars were gi en to consumers to try. 'he consumers were as#ed whether they li#ed or disli#ed the chocolate bar. ?ou are gi en their responses below. R"#$on#" Fi#ed 9isli#ed %&"'u"n() !,, 1,, %,,

a. What is the point estimate for the proportion of people who li#ed the chocolate bar0 b. (onstruct a +&- confidence inter al for the true proportion of people who li#ed the chocolate bar. c. With a .+& probability, how large of a sample needs to be ta#en to pro ide a margin of error of !- or less0 Answers: a. ,..& b. ,..1 to ,..+ c. 2,1 11. If the standard de iation of the lifetime of washing machines is estimated to be +,, hours, how large a sample must be ta#en in order to be +.- confident that the margin of error will not e6ceed 1,, hours0 Answer: !22

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'he manager of a department store wants to determine what proportion of people who enter the store use the store;s credit cards for their purchases. What si1e sample should he ta#e so that at +&- confidence the error will not be more than *-0 Answer: 2*.

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An )6cel printout of the descripti e measures of daily chec#ing account balances 3in dollars4 of customers of "irst 9aisy Ean# is shown below. 9e elop a +&confidence inter al estimate for the mean of the population of the chec#ing balances. Account Balance Information @ean %222.2+ @edian &11&.2& @ode %+.*.&, <tandard 9e iation 11%!.&. <ample Gariance 1!,..*!.%+ Hurtosis 2.*! <#ewness /!.,* :ange %+*2.&, @inimum *,,.,, @a6imum &&*2.&, <um 1.!212.&, (ount !*.,, Answer: %%%1.!22 to &21&.1+2

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Information regarding the price of a roll of camera film 3!& mm, 2% e6posure4 for a #*+$," of 12 cities worldwide is shown below. 9etermine a +&- confidence inter al for the population mean. Price of Film Information @ean <tandard )rror @edian <tandard 9e iation <ample Gariance Hurtosis <#ewness :ange

&.!**. ,..%,+ %.2.,, 2.&*** *.&2.! %.,2,1 1.2,%1 +.%1,,

Inter al )stimation @inimum @a6imum <um (ount Answer: !..!* to *.++. 2..!,, 12.1%,, *%.%,,, 12.,,,,

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