Chapter 8

Confidence interval estimation

σ 0.08
8.7 (a) X́ ± Z . =3.98 ± 2.58. =3.9508 ≤ μ ≤ 4.0092
√n √ 50
(b) Since the value of 4.0 is included in the interval, there is no reason to
believe that the mean is different from 4 litres.
(c) No. Since the population standard deviation is known and n = 50, from
the Central Limit Theorem, we may assume that the sampling distribution
of X́ is approximately normal.
(d) The reduced confidence level narrows the width of the confidence interval.
σ 0.08
(a) X́ ± Z . =3.98 ±1.96 . =3.9578 ≤ μ ≤ 4.0022
√n √ 50
(b) Since the value of 4.0 is still included in the interval, there is no
reason to believe that the mean is different from 4 litres.

σ 3000
8.8 (a) X́ ± Z . =34,000 ±1.96 . =33,265≤ μ ≤34,735
√n √ 64
(b) No. The manufacturer does not have the right to state that the light
globes last an average of 35,000 hours with 95% confidence.
(c) No. Since the population standard deviation is known and n = 64, from
Central Limit Theorem, we may assume that the sampling distribution of
X́ is approximately normal.
(d) The confidence interval is wider based on a standard deviation of 6,000
hours rather than the original assumption of 3,000 hours.
σ 6000
(a) X́ ± Z . =34,000 ±1.96 . =32,530 ≤ μ ≤ 35,470
√n √ 64
(b) Yes as 35,000 now lies within the interval the claim can be made
by the manufacturer with 95% confidence.

σ 0.05
8.9 (a) X́ ± Z . =1.99 ±1.96 . =1.9802 ≤ μ ≤ 1.9998
√n √100
(b) No. Since the population standard deviation is known, and n = 1000, from
the Central Limit Theorem, we may assume that the sampling distribution
of X́ is approximately normal.
(c) An individual value of 2.02 is only 0.60 standard deviations above the
sample mean of 1.99. The confidence interval represents bound on the
estimate of the average of a sample of 100, not an individual value.
(d) A shift of 0.02 units in the sample average shifts the confidence interval
by the same distance without affecting the width of the resulting interval.
σ 0.05
(a) X́ ± Z . =1.97 ± 1.96 . =1.9602≤ μ≤ 1.9798
√n √ 100
S 6.4660
8.14 Original data: X́ ± t .=5.8571 ±2.4469 . =−0.1229 ≤ μ ≤ 11.8371
√n √7
S 2.1602
Altered data: X́ ± t . =4.00 ±2.4469 . =2.0022 ≤ μ ≤ 5.9978
√n √7
The presence of an outlier in the original data increases the value of the
sample mean and greatly inflates the sample standard deviation.
 S 0.82
8.15 (a) X́ ± t . =4.95 ±2.0930 . =4.566 ≤ μ ≤ 5.334
√n √20
(b) The store owner can be 95% confident that the population mean retail
value of greeting cards that the store has in its inventory is somewhere
between $4.56 and $5.34. The store owner could multiply the ends of the
confidence interval by the number of cards to estimate the total value of
his inventory.

S 25
8.16 (a) X́ ± t . =380 ± 2.0096 . =372.895 ≤ μ ≤387.105
√n √ 50
(b) Sydney water can be 95% confident that the average household usage is
somewhere between 372.895 litres and 387.105 litres.
(c) Water usage seems to have changed in the second summer by a
significant amount (at least at a 5% significance level).

S 25.2835
8.20 (a) X́ ± t . =43.8889± 2.0555 . =33.89 ≤ μ ≤ 53.89
√n √ 27
(b) The population distribution needs to be normally distributed.
(c) Both the normal probability plot and the box-and-whisker plot show that
the population distribution is not normally distributed and is skewed to the
right.

8.24 (a)

p=
X 190
=
n 500
(b)
=0.38 p ± Z .
n√
p( 1− p)
=¿ 0.38± 2.5758
0.27 (1−0.27)
√
500
=0.3289 ≤ π ≤ 0.4311 ¿
The manager in charge of promotional programs for mobile customers can
infer that the proportion of customers that would purchase the Internet
mobile plan at the reduced cost is between 0.3289 and 0.4311 with a 99%
level of confidence.
Z 2 × σ 2 1.96 2 × 4002
8.35 (a) n= = =245.86 Use n=246
e2 502
 Z 2 × σ 2 1.96 2 × 4002
(b) n= = =983.41 Use n=984
e2 252

Z 2 × σ 2 1.96 2 × 0.0752
8.36 n= = =96.04 Use n=97
e2 0.0152