Chapter 8:

Estimation: Single Population

a. Check for nonnormality

Probability Plot of Ex_8.1
Normal
99

Mean
StDev
N
AD
P-Value

95
90

7
2.268
8
0.185
0.865

80

Percent

8.1

70
60
50
40
30
20
10
5

10

12

Ex_8.1

The distribution shows no significant evidence of nonnormality.

b. Point estimate of the population mean that is unbiased, efficient and
consistent.
X i = 560 = 7.0
Unbiased point estimator is the sample mean: X =
n
8
c. The unbiased point estimate of the variance of the sample mean:
s 2 (2.268) 2
Var ( X ) = =
= .64298
8
n

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8.2 a. Evidence of non-normality?

Probability Plot of Homes_Ex8.2
Normal
99

Mean
StDev
N
AD
P-Value

95
90

101.4
14.20
8
0.194
0.837

Percent

80
70
60
50
40
30
20
10
5

60

70

80

90

100
110
Homes_Ex8.2

120

130

140

No evidence of non-normality.
b. The minimum variance unbiased point estimator of the population
X i = 560 = 101.375
mean is the sample mean: X =
n
8
c. The unbiased point estimate of the variance of the sample mean:
s 2 = 201.6964
2
s 2 201.6964
(X ) = =
Var ( X ) =
; Var
= 25.2121
n
n
8
x 3
d. p = = = .375
n 8

8.3

n = 10 economists forecast for percentage growth in real GDP in the next

year

Descriptive Statistics: RGDP_Ex8.3

Variable
RGDP_Ex8.3

N
10

N*
0

Variable
RGDP_Ex8.3

Minimum
2.2000

Mean
2.5700
Q1
2.4000

SE Mean
0.0716

TrMean
2.5625

StDev
0.2263

Variance
0.0512

Median
2.5500

Q3
2.7250

Maximum
3.0000

Range
0.8000

CoefVar
8.81
IQR
0.3250

a. Unbiased point estimator of the population mean is the sample mean:

X i = 2.57
X=
n
b. The unbiased point estimate of the population variance: s 2 = .0512
c. Unbiased point estimate of the variance of the sample mean
s 2 .0512
Var ( X ) = =
= .00512
n
10

Sum
25.7000

Chapter 8: Estimation: Single Population

x 7
= = .70
n 10
e. Unbiased estimate of the variance of the sample proportion:
p (1 p ) .7(1 .7)
Var ( p ) =
=
= .021
n
10

d. Unbiased estimate of the population proportion: p =

8.4 n = 12 employees. Number of hours of overtime worked in the last month:

a. Unbiased point estimator of the population mean is the sample mean:
X i = 24.42
X=
n
b. The unbiased point estimate of the population variance: s 2 = 85.72
c. Unbiased point estimate of the variance of the sample mean
s 2 85.72
Var ( X ) = =
= 7.1433
n
12
x 3
d. Unbiased estimate of the population proportion: p = = = .25
n 12
e. Unbiased estimate of the variance of the sample proportion:
p (1 p ) .25(1 .25)
Var ( p ) =
=
= .015625
n
12
a. Check each variable for normal distribution:

Normal Probability Plot

.999
.99
.95

Probability

8.5

.80
.50
.20
.05
.01
.001
45

50

55

Meals
Average: 50.1
StDev: 2.46842
N: 30

Anderson-Darling Normality Test

A-Squared: 0.413
P-Value: 0.318

165

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Statistics for Business & Economics, 6 edition

Normal Probability Plot

.999
.99

Probability

.95
.80
.50
.20
.05
.01
.001
15

20

25

Attendance
Average: 21.24
StDev: 2.50466
N: 25

Anderson-Darling Normality Test

A-Squared: 0.377
P-Value: 0.383

Normal Probability Plot

.999
.99
.95

Probability

166

.80
.50
.20
.05
.01
.001
9

10

11

12

13

14

15

16

Ages
Average: 12.24
StDev: 1.96384
N: 25

Anderson-Darling Normality Test

A-Squared: 0.569
P-Value: 0.126

No evidence of non-normality in Meals, Attendance or Ages

Chapter 8: Estimation: Single Population

167

b. Unbiased estimates of population mean and variance:

Descriptive Statistics: Meals, Attendance, Ages
Variable
Mean
Meals
0.451
Attendan
0.501
Ages
0.393
Variable
Meals
Attendan
Ages

Mean

Median

TrMean

StDev

30

50.100

50.000

50.192

2.468

25

21.240

21.000

21.348

2.505

25

12.240

12.000

12.217

1.964

Minimum
45.000
15.000
9.000

Maximum
55.000
25.000
16.000

Q1
48.000
19.500
10.000

Q3
52.000
23.500
14.000

Variable
Unbiased estimate of mean Unbiased estimate of variance (s2)
Meals
50.100
(2.468)2 = 6.0910
Attendance
21.240
(2.505)2 = 6.2750
Ages
12.240
(1.964)2 = 3.8573

8.6

1
1

E ( X1 ) + E ( X 2 ) = + =
2
2
2 2
1
3
3
E (Y ) = E ( X 1 ) + E ( X 2 ) = +
=
4
4
4 4
1
2
2
E (Z ) = E ( X1 ) + E ( X 2 ) = +
=
3
3
3 3
2 1
1
12 2
b. Var ( X ) =
= Var ( X 1 ) + Var ( X 2 ) =
=
4
2 8
4
n 4
2
1
9
5
Var (Y ) = Var ( X 1 ) + Var ( X 2 ) =
16
16
8
2
1
4
5
Var ( Z ) = Var ( X 1 ) + Var ( X 2 ) =
9
9
9
X is most efficient since Var ( X ) < Var (Y ) < Var ( Z )
Var (Y ) 5
= = 2.5
c. Relative efficiency between Y and X :
Var ( X ) 2
Var ( Z ) 20
Relative efficiency between Z and X :
=
= 2.222
Var ( X ) 9
a. E ( X ) =

SE

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8.7 a. Evidence of non-normality?

Normal Probability Plot for Leak Rates (
ML Estimates

99

ML Estimates

95

Mean

0.0515

StDev

0.0216428

90

Goodness of Fit

Percent

80

AD*

70
60
50
40
30

0.596

20
10
5
1
0.00

0.05

0.10

Data

No evidence of nonnormality exists.

b. The minimum variance unbiased point estimator of the population
X i = .0515
mean is the sample mean: X =
n
c. The unbiased point estimate of the variance of the sample mean:
s 2 x = (.0216428) 2 = .0004684

Var ( X ) =
8.8

2
n

(X ) =
; Var

s 2 .0004684
=
= .00000937
n
50

a. Evidence of non-normality?
No evidence of the data distribution coming from a non-normal
population
b. The minimum variance unbiased point estimator of the population
X i = 3.8079
mean is the sample mean: X =
n
Descriptive Statistics: Volumes
Variable
Mean
Volumes
0.0118
Variable
Volumes

Mean

Median

TrMean

StDev

75

3.8079

3.7900

3.8054

0.1024

Minimum
3.5700

Maximum
4.1100

Q1
3.7400

Q3
3.8700

SE

Chapter 8: Estimation: Single Population

c. Minimum variance unbiased point estimate of the population variance

is the sample variance s2 = .0105
8.9 Reliability factor for each of the following:
a. 96% confidence level: z 2 = +/- 2.05
b. 88% confidence level: z 2 = +/- 1.56
c. 85% confidence level: z 2 = +/- 1.44
d. = .07 z 2 = +/- 1.81
e. 2 = .07 z 2 = +/- 1.48
8.10 Calculate the margin of error to estimate the population mean
a. 98% confidence level; n = 64, variance = 144
= 3.495
ME = z 2
= 2.33 12

n
64

b. 99% confidence interval, n=120; standard deviation = 100

= 23.552
ME = z 2
= 2.58 100

n
120

8.11 Calculate the width to estimate the population mean, for

a. 90% confidence level, n = 100, variance = 169
= 4.277
= 2 1.645 13
width = 2ME = 2 z 2

100
n

b. 95% confidence interval, n = 120, standard deviation = 25

= 8.9461
= 2 1.96 25
width = 2ME = 2 z 2

120
n

8.12

Calculate the LCL and UCL

= 40.2 to 59.8
a. x z 2
= 50 1.96 40

n
64

= 81.56 to 88.44
= 85 2.58 20
b. x z 2

n
225

= 506.2652 to 513.73478
= 510 1.645 50
c. x z 2

n
485

8.13 a. n = 9, x = 187.9, = 32.4, z.10 = 1.28

187.9 1.28(32.4/3) = 174.076 up to 201.724
b. 210.0 187.9 = 22.1 = z / 2 (32.4 / 3), z / 2 = 2.05
= 2[1 Fz (2.05)] = .0404
100(1-.0404)% = 95.96%

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8.14 a. Find the reliability factor for 92% confidence level: z 2 = +/- 1.75
b. Calculate the standard error of the mean

= 6
= .63246
90
n
c. Calculate the width of the 92% confidence interval for the population
mean
= 2.2136
= 2 1.75 6
width = 2ME = 2 z 2

90
n

8.15 a. n = 25, x = 2.90, = .45, z.025 = 1.96

= 2.90 1.96(.45/5) = 2.7236 up to 3.0764
x z

b. 2.99 2.90 = .09 = z / 2 (.45 / 5), z / 2 = 1

= 2[1 Fz (1)] = .3174

100(1-.3174)% = 68.26%
8.16 a. n = 16, x = 4.07, = .12, z.005 = 2.58
4.07 2.58(.12/4) = 3.9926 up to 4.1474
b. narrower since the z score for a 95% confidence interval is smaller
than the z score for the 99% confidence interval
c. narrower due to the smaller standard error
d. wider due to the larger standard error
8.17 Find the reliability factor tv , 2
a.
b.
c.
d.

n = 20, 90% confidence level; t = 1.729

n = 7, 98% confidence level; t = 3.143
n = 16, 95% confidence level; t = 2.131
n = 23, 99% confidence level; t = 2.819

8.18 Find the ME

a. n = 20, 90% confidence level, s = 36
= 13.9182
ME = t 2 s
= ME = 1.729 36

n
120

b. n = 7, 98% confidence level, s = 16

ME = t 2 s
= ME = 3.143 16 = 19.007
n
7

c. n = 16, 99% confidence level, x1 = 15, x2 = 17, x3 = 13, x4 = 11, x5 = 14

x = 14, s = 2.58199 ME = 5.841 2.58199 = 7.5407
4

Chapter 8: Estimation: Single Population

8.19 Time spent driving to work for n = 5 people

Descriptive Statistics: Driving_Ex8.19
Variable
Sum
Driving_Ex8.19
192.00

N*

Mean

SE Mean

TrMean

StDev

Variance

CoefVar

38.40

2.66

5.94

35.30

15.47

Variable
Driving_Ex8.19

Minimum
30.00

Q1
32.50

Median
40.00

Q3
43.50

Maximum
45.00

Range
15.00

IQR
11.00

a. Calculate the standard error

s
= 5.94138
2.6571
n
5
b. Find the value of t for the 95% confidence interval
tv , 2 = 2.776
c. Calculate the width for a 95% confidence interval for the population
mean
ME = t 2 s
= ME = 2.776 5.94138 = 14.752
n
5

8.20 Find the LCL and UCL for each of the following:
a. alpha = .05, n = 25, sample mean = 560, s = 45
= 560 2.064 45
= 541.424 to 578.576
x t 2 s

n
25

b. alpha/2 = .05, n = 9, sample mean = 160, sample variance = 36

= 160 1.860 6 = 156.28 to 163.72
x t 2 s

n
9

c. 1 = .98, n = 22, sample mean = 58, s = 15

= 58 2.518 15
= 49.9474 to 66.0526
x t 2 s

n
22

8.21 Calculate the margin of error to estimate the population mean for:
a. 98% confidence level; n = 64, sample variance = 144
= 3.585
ME = t 2 s
= ME = 2.390 12

64
n

b. 99% confidence level; n = 120, sample standard deviation = 100

= 24.2824
ME = t 2 s
= ME = 2.660 100

n
120

c. 95% confidence level; n = 200, sample standard deviation = 40

= 5.65685
ME = t 2 s
= ME = 2.000 40

n
200

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Statistics for Business & Economics, 6 edition

8.22 Calculate the width for each of the following:

a. alpha = 0.05, n = 6, s = 40
= 2 2.571 40 = 2(41.98425) = 83.9685
w = 2 ME = 2t 2 s
6
n

b. alpha = 0.01, n = 22, sample variance = 400

= 2(12.07142) = 24.1428
= 2 2.831 20
w = 2 ME = 2t 2 s

22
n

c. alpha = 0.10, n = 25, s = 50

= 2(17.11) = 34.22
= 2 1.711 50
w = 2 ME = 2t 2 s

25
n

8.23 a. 95% confidence interval:

Results for: TOC.xls
One-Sample T: Leak Rates (cc/sec.)
Variable
Leak Rates (

N
50

Mean
0.05150

StDev
0.02186

SE Mean
0.00309

95.0% CI
( 0.04529, 0.05771)

b. 98% confidence interval:

One-Sample T: Leak Rates (cc/sec.)
Variable
Leak Rates (

N
50

Mean
0.05150

StDev
0.02186

SE Mean
0.00309

98.0% CI
( 0.04406, 0.05894)

8.24 a.
Results for: Sugar.xls
Descriptive Statistics: Weights
Variable
Mean
Weights
0.95
Variable
Weights

Mean

Median

TrMean

StDev

100

520.95

518.75

520.52

9.45

Minimum
504.70

Maximum
544.80

Q1
513.80

Q3
527.28

90% confidence interval:

SE

Results for: Sugar.xls

One-Sample T: Weights
Variable
Weights

N
100

Mean
520.948

StDev
9.451

SE Mean
0.945

90.0% CI
( 519.379, 522.517)

b. narrower since a smaller value of z will be used in generating the 80%

confidence interval.
8.25

n = 9, x = 157.82, s = 38.89, t8,.025 = 2.306

margin of error: 2.306(38.89/3) = 29.8934

8.26

n = 7, x = 74.7143, s = 6.3957, t6,.025 = 2.447

margin of error: 2.447(6.3957/ 7 ) = 5.9152

Chapter 8: Estimation: Single Population

8.27

a. n = 10, x = 15.90, s = 5.30, t9,.005 = 3.25

15.90 3.25(5.30/ 10 ) = 10.453 up to 21.347
b. narrower since the t-score will be smaller for a 90% confidence
interval than for a 99% confidence interval

8.28

n = 25, x = 42, 740, s = 4, 780, t24,.05 = 1.711

42,740 1.711(4780/5) = $41,104.28 up to $44,375.72

8.29

n = 9, x = 16.222, s = 4.790, t8,.10 = 1.86

We must assume a normally distributed population
16.222 1.86(4.790/3) = 13.252 up to 19.192

8.30 Find the standard error of the proportion for

p (1 p )
.3(.7)
= .02898
a. n = 250, p = 0.3
=
n
250
p (1 p )
.45(.55)
= .03761
=
b. n = 175, p = 0.45
n
175
p (1 p )
.05(.95)
= .010897
=
c. n = 400, p = 0.05
n
400
8.31 Find the margin of error for
a. n = 250, p = 0.3, = .05 z 2
b. n = 175, p = 0.45, = .08 z 2
c. n = 400, p = 0.05, = .04 z 2

.3(.7)
p (1 p )
= .056806
= 1.96
250
n
.45(.55)
p (1 p )
= .05810
= 1.75
175
n
.05(.95)
p (1 p )
= .02234
= 2.05
400
n

8.32 Find the confidence level for estimating the population proportion for
a. 92.5% confidence level; n = 650, p = .10
p (1 p )
.10(1 .10)
= .10 1.78
= .079055 to .120945
n
650
b. 99% confidence level; n = 140, p = .01
p z 2

p (1 p )
.01(1 .01)
= .01 2.58
= 0.0 to .031696
n
140
c. alpha = .09; n = 365, p = .50
p z 2

p z 2

p (1 p )
.5(.5)
= .50 1.70
= .4555 to .5445
n
650

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Statistics for Business & Economics, 6 edition

8.33 n = 142, 87 answered GMAT or GRE is very important. 95%

confidence
interval for the population proportion:
p (1 p )
.61268(1 .61268)
= .61268 = 1.96
= .53255 to .6928
p = z 2
n
142
8.34

n = 95,

p = 67 / 95 = .7053, z.005 = 2.58

p (1 p )
.7053(.2947)
= .7053 (2.58)
=
95
n
99% confidence interval: .5846 up to .8260
p z / 2

8.35 a. unbiased point estimate of proportion:

Tally for Discrete Variables: Adequate Variety
Adequate Variety
1
2
N=

Count CumCnt
135
135
221
356
356

Percent CumPct
37.92 37.92
62.08 100.00

x 135
=
= .3792
n 356
b. 90% confidence interval:
n = 356, p = 135 / 356 = .3792, z.05 = 1.645
p =

p (1 p )
= .3792 (1.645) .3792(.6208) / 356 =
n
.3369 up to .4215
p z / 2

8.36

n = 320,

p = 80 / 320 = .25, z.025 = 1.96

p (1 p )
= .25 (1.96) .25(.75) / 320 =
n
95% confidence interval: .2026 up to .2974
p z / 2

8.37

n = 400,

p = 320 / 400 = .80, z.01 = 2.326

p (1 p )
.80(1 .80)
= .80 2.326
= .75348
400
n
b. width of a 90% confidence interval
.8(1 .8)
p (1 p )
= 2 1.645
= 2(.0329) = .0658
w = 2 ME = 2 z 2
400
n

a. LCL = p z / 2

Chapter 8: Estimation: Single Population

8.38

width = .545-.445 = .100; ME = 0.05 p = 0.495

.495(.505)
p (1 p )
=
= .0355
198
n
.05 = z / 2 (.0355), z / 2 = 1.41
= 2[1 Fz (1.41)] = .0793
100(1-.1586)% = 84.14%

8.39

n = 420,

p = 223 / 420 = .5310, z.025 = 1.96

p (1 p )
= .5310 (1.96) .5310(.4690) / 420 =
n
95% confidence interval: .4833 up to .5787
The margin of error is .0477
p z / 2

8.40

n = 246,

p = 40 / 246 = .1626, z.01 = 2.326

p (1 p )
= .1626 (2.326) .1626(.8374) / 246 =
n
98% confidence interval: .1079 up to .2173
p z / 2

8.41

a. n = 246,

p = 232 / 246 = .9431, z.01 = 2.326

p (1 p )
= .9431 (2.326) .9431(.0569) / 246 =
n
98% confidence interval: .9087 up to .9775
b. n = 246, p = 10 / 246 = .0407, z.01 = 2.326
p z / 2

p (1 p )
= .0407 (2.326) .0407(.9593) / 246 =
n
98% confidence interval: .0114 up to .0699
p z / 2

8.42 a. n = 10, x = 257, s = 37.2, t9,.05 = 1.833

= 257 1.833(37.2/ 10 ) = 235.4318 up to 278.5628
x t 2 s

assume that the population is normally distributed

b. 95% and 98% confidence intervals:
= 257 2.262(37.2/ 10 ) = 230.39 up to 283.61
[95%]: x t 2 s

= 257 2.821(37.2/ 10 ) = 223.815 up to

[98%]: x t 2 s

290.185

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8.43

n = 16, x = 150, s = 12, t15,.025 = 2.131

= 150 2.131(12/4) = 143.607 up to 156.393
x t 2 s

It is recommended that he stock 157 gallons.

8.44

n = 50, x = 30, s = 4.2, z.05 = 1.645

= 30 1.645(4.2/ 50 ) = 29.0229 up to 30.9771

8.45

Results from Minitab:

Descriptive Statistics: Passengers8_45

Variable
Mean
Passenge
3.46
Variable
Passenge

Mean

Median

TrMean

StDev

50

136.22

141.00

136.75

24.44

Minimum
86.00

Maximum
180.00

Q1
118.50

Q3
152.00

One-Sample T: Passengers8_45

SE

Variable
Passengers8_

N
50

Mean
136.22

StDev
24.44

SE Mean
3.46

95.0% CI
129.27, 143.17)

95% confidence interval: 129.27 up to 143.17

8.46

a. Use a 5% risk. Incorrect labels = 8/48 = 0.1667

0.1667(0.8333)
0.1667 1.96
= 0.1667 0.1054 = 0.0613 up to 0.2721
48
b. For a 90% confidence interval,
0.1667(0.8333)
0.1667 1.645
= 0.1667 0.0885 = 0.0782 up to
48
0.2552

8.47

a. The minimum variance unbiased point estimator of the population

X i = 27 = 3.375. The unbiased point
mean is the sample mean: X =
8
n
2
xi nx 2 94.62 8(3.375) 2

2
estimate of the variance: s =
=
= .4993
n 1
7
x 3
b. p = = = .375
n 8

8.48 3.69 3.59 = 0.10 = z / 2 (1.045 / 457), z / 2 = 2.05

= 2[1 Fz (2.05)] = .0404
100(1-.0404)% = 95.96%

Chapter 8: Estimation: Single Population

8.49

n = 174, x = 6.06, s = 1.43

6.16 6.06 = .1 = z / 2 (1.43 / 174), z / 2 = .922

= 2[1 Fz (.92)] = .3576
100(1-.3576)% = 64.24%
8.50 n = 33 accounting students who recorded study time
a. An unbiased, consistent, and efficient estimator of the population mean
is the sample mean x = 8.545
b. Find the sampling error for a 95% confidence interval; Using degrees of
freedom = 30,
= 1.3568
ME = 2.042 3.817

33

8.51 n = 25 patient records the average length of stay is 6 days with a standard
deviation of 1.8 days
a. find the reliability factor for a 95% interval estimate t / 2 = 2.064
b. Find the LCL for a 99% confidence interval estimate of the population
mean
. The LCL = 5.257
= 6 2.064 1.8
ME = t 2 s

25
n

8.52 n = 250, x = 100

a. Find the standard error to estimate population proportion of first timers
p (1 p )
.4(1 .4)
= .03098
=
n
250
b. Find the sampling error. Since no confidence level is specified, we find
the sampling error (Margin of Error) for a 95% confidence interval.
ME = 1.96 (0.03098) = 0.0607
c. For a 92% confidence interval,
ME = 1.75 (0.03098) = 0.05422
0.40 .05422 giving 0.3457 up to 0.4542
8.53

a. 90% confidence interval reliability factor = t / 2 = 1.729

b. Find the LCL for a 99% confidence interval
LCL = 60.75 2.861 21.83159
= 46.78 or approximately 47
20
passengers.

8.54 a. Find a 95% confidence interval estimate for the population proportion
of students who would like supplements in their smoothies.

177

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Statistics for Business & Economics, 6 edition

Tally for Discrete Variables: Supplements, Health Consciousness

Supplements
No
0
Yes
1
N=

n = 113,

Count
42
71
113

Percent
37.17
62.83

Health
Consciousness
Very
1
Moderately 2
Slight
3
Not Very
4
N=

Count
29
55
20
9
113

Percent
25.66
48.67
17.70
7.96

p = 71/113 = .62832, z.05 = 1.96

p (1 p )
.62832(1 .62832)
= .62832 1.96
n
113
0.0891 = 0.5392 up to 0.71742.
p z / 2

= 0.62832

b. p = 29 / 113 = 0.2566 For 98% confidence level,

p 2.33

(0.2566)(1 0.2566)
= 0.2566 0.09573
113

or 0.1609 up to

0.3523
c. p = 77 / 113 = 0.6814
0.6814 1.645

(0.6814)(1 0.6814)
= 0.6814 0.0721 or 0.6093 up to
113

0.7535
8.55

n = 100 students at a small university.

a. Estimate the population grade point average with 95% confidence level
One-Sample T: GPA
Variable
GPA

N
100

Mean
3.12800

StDev
0.36184

SE Mean
0.03618

95% CI
(3.05620, 3.19980)

b. Estimate the population proportion of students who were very

dissatisfied (code 1) or moderately dissatisfied (code 2) with parking. Use a
90% confidence level.
Tally for Discrete Variables: Parking
Parking
1
2
3
4
5
N=

Count
19
26
18
18
19
100

n = 100,
.45 1.645

Percent
19.00
26.00
18.00
18.00
19.00

p = 45 /100 = .45, z.05 = 1.645 , p z / 2

p (1 p )
n

.45(1 .45)
= .45 .08184 = .368162 up to .53184
100

c. Estimate the proportion of students who were at least moderately

satisfied
(codes 4 and 5) with on-campus food service

Chapter 8: Estimation: Single Population

179

Tally for Discrete Variables: Dining

Dining
1
2
3
4
5
N=

Count
14
26
21
20
19
100

Percent
14.00
26.00
21.00
20.00
19.00

n = 100,

p = 39 /100 = .39, z.05 = 1.645

p z / 2

p (1 p )
.39(1 .39)
= .39 1.645
= .39 .08023 = .30977 up
100
n

to .47023.
8.56

a. Estimate the average age of the stores customers by the sample mean
xi = 6310 = 50.48
x=
n
125
To find a confidence interval estimate we will assume a 95% confidence level:
13.06
50.48 1.96
= 50.48 2.29 ; 48.19 up to 52.77 years
125
b. Estimate the population proportion of customers dissatisfied with the delivery
system
Tally for Discrete Variables: Dissatisfied with Delivery
Dissatisfied
with
Delivery
1
2
N=

Count
9
116
125

Percent
7.20
92.80

p = 9 /125 = .072 ; Assuming a 95% confidence level, we find:

0.072 1.96

(0.072)(1 0.072)
= 0.072 0.0453 or 0.0267 up to 0.1173
125

c. Estimate the population mean amount charged to a Visa credit card

Descriptive Statistics: Cost of Flowers
Variable
Cost of Flowers

Method of
Payment
American Express
Cash
Master Card
Other
Visa

Mean
52.99
51.34
54.58
53.42
52.65

SE Mean
2.23
4.05
3.11
2.99
2.04

TrMean
52.83
51.46
54.43
53.72
52.58

StDev
10.68
16.19
15.25
14.33
12.71

The population mean can be estimated by the sample mean amount

charged to a Visa credit card = $52.65.
8.57 n = 500 motor vehicle registrations, 200 were mailed, 160 paid in person,
remainder paid on-line.
a. Estimate the population proportion to pay for vehicle registration
renewals in person, use a 90% confidence level.

Median
50.55
50.55
55.49
54.85
50.65

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Statistics for Business & Economics, 6 edition

Test and CI for One Proportion

Test of p = 0.5 vs p not = 0.5
Sample
X
N Sample p
90% CI
1
160 500 0.320000 (0.285686, 0.354314)

The 90% confidence interval is from 28.56856% up to 35.4314%

b. Estimate the population proportion of on-line renewals, use 95%
confidence.
Test and CI for One Proportion
Test of p = 0.5 vs p not = 0.5
Sample
X
N Sample p
95% CI
1
140 500 0.280000 (0.240644, 0.319356)

The 95% confidence interval is from 24.0644% up to 31.9356%

8.58

From the data in 8.57, find the confidence level if the interval extends
from 0.34 up to 0.46.
ME = the width of the confidence interval. 0.46 0.34 = 0.12 / 2 =
0.06
p (1 p )
or
ME = z 2
n
0.06 = z 2

(0.4)(0.6)
500
Solving for z:

z 2 = 2.74

Area from the z-table = .4969 x 2 = .9938. The confidence level is

99.38%
8.59 From the data in 8.57, find the confidence level if the interval extends from
23.7% up to 32.3%. ME = the width of the confidence interval. .323
.237 = .086 / 2 = .043 and p = .28
p (1 p )
.28(1 .28)
.043 = z 2
solving for z: z 2 = 2.14
n
500
Area from the z-table = .4838 x 2 = .9676. The confidence level is
96.76%

ME = z 2

8.60

a. What is the margin of error for a 99% confidence interval

p (1 p )
ME = z 2
p = x = 250
= .7143 ,
n
350
n
.7143(1 .7143)
350
ME = .0623

ME = 2.58

Chapter 8: Estimation: Single Population

181

b. Is the margin of error for a 95% confidence larger, smaller or the same as the
99% confidence level? The margin of error will be smaller (more
precise)
for a lower confidence level. The difference in the equation is the
value for z
which would drop from 2.58 down to 1.96.
8.61 Compute the 98% confidence interval of the mean age of on-line renewal
users. n= 460, sample mean = 42.6, s = 5.4.
= 42.6 .58664 = 42.0134 up to
= 42.6 2.33 5.4
x t 2 s

460
n

43.18664