Name: __________________________________________________

Economics Dr. Sauer

Ch 6: Sampling Distributions: Means 1. A college examines its records and calculates that the average monthly rent for a room in student housing is $320 per month with a standard deviation of $84. Assuming that rents are normally distributed and that a sample of 100 students is selected: a. Calculate the mean and standard error of the sample means.

b. Comment on how the mean and standard error of the sample means would be different if the sample size were 20 students.

c. Calculate the two limits within which 90% of sample means will be.

d. Calculate the percentage of rents that are between$300 and $340 per month.

Name: __________________________________________________

Economics Dr. Sauer

Ch 6: Sampling Distributions: Proportions 1. Following an internal audit, the Great Northern Bank discovers that 28% of customers who had less than $1000 in their savings account were currently overdrawn in their checking account. If a random sample of 50 such customers is selected, what is the probability that at least 8 people are overdrawn on their checking account?

2. Three percent of the adult population test positive for a particular antibody in their blood. Calculate the probability that at most, two people test positive in a random sample of 50 people.

3. A labor force survey found that 28% of women and 6% of men in the labor force work 20 hours per week or less. In a randomly selected sample of 400 men in the labor force, calculate the probability that at least 350 work more than 20 hours per week.