Chapter 8

Interval Estimation

8. a. Since n is small, an assumption that the population is at least approximately

normal is required.
b. z.025 ( / n ) = 1.96(5 / 10) = 3.1
c. z.005 ( / n ) = 2.576(5 / 10) = 4.1

22. a. x = 3.35 So 3.35% is a point estimate of the mean return for the population.
b. x t.025 ( s / n ) t.025 = 2.064 df = 24
From the sample, s = 2.29
3.35 2.064 (2.29 / 25)
95% Confidence Interval: 3.35 .95 or 2.40% to 4.30%

28. a.

n=

z2 / 2 2 (1.645) 2 (1100) 2
=
= 327.43
E2
(100) 2

b.

n=

(1.96) 2 (1100) 2
= 464.83
(100)2

c.

n=

(2.576) 2 (1100) 2
= 802.93
(100) 2

Use n = 328

Use n = 465

Use n = 803

8-1

Chapter 8

d. The sample size gets larger as the confidence is increased. We would

not recommend 99% confidence. The sample size must be increased
by 137 = 465 - 328 to go from 90% to 95%. This may be reasonable.
However, increasing the sample size by 338 = 803 - 465 to go from
95% to 99% would probably be viewed as too expensive and time
consuming for the 4% gain in confidence.

38. a. p = 29 /162 = .1790

b.

p = 104 /162 =

.6420

Margin of error = 1.96

p (1 p )
(.642)(.358)
= 1.96
= .0738
n
162

Confidence interval: .6420 .0738 or .5682 to .7158

c.

n=

1.962 (.642)(.358)
= 353.18
(.05)2

Use n = 354

42.

a. since
z 2 * p * * (1 p * )
n=
E2
Such that
E=

z 2 * p * * (1 p * )
= z*
n

p * * (1 p * )
n

p *(1 p*)
.50(1 .50)
=
= .0226
n
491

z.025

p *(1 p*)
n

= 1.96(.0226) = .0442

8-2

Interval Estimation

b. n =

2
z.025
p (1 p )
E2

n=

September

October n =

1.962 (.50)(1 .50)

= 600.25
.04 2

1.962 (.50)(1 .50)

= 1067.11
.032

November

Pre-Election n =

n=

Use 1068

1.962 (.50)(1 .50)

= 2401
.02 2

1.962 (.50)(1 .50)

= 9604
.012

8-3

Use 601