ESTIMATION (One Population): CHAPTER - 8

1. A point estimate is defined as:

a. the average of the sample values
b. the average of the population values
c. a single value that is the best estimate of an unknown population parameter
d. a single value that is the best estimate of an unknown sample statistic

2. Unbiased estimator of a population parameter is defined as:

a. an estimate whose expected value is equal to the parameter
b. an estimator whose variance is equal to one
c. an estimator whose expected value is equal to zero
d. an estimator whose variance goes to zero as the sample size goes to infinity

3. Estimation is a procedure by which a numerical value or numerical values are

assigned to the:
a. population parameter based on the information collected from a sample
b. sample statistic based on the information collected from a sample
c. population parameter based on the information collected from a population
d. sample statistic based on the information collected from a population

4. The value(s) assigned to a population parameter based on the value of a sample

statistic is called:
a. the probability
b. a probability distribution
c. a sampling distribution
d. an estimate

5. An estimator is said to be consistent if:

a. it is an unbiased estimator
b. the variance of the estimator is close to one
c. the expected value of the estimator is known
d. the difference between the estimator and the population parameter grows smaller
as the sample size grows larger

6. The sample statistic which is used to estimate a population parameter is called a(n):
a. random variable
b. qualitative variable
c. estimator
d. parameter

7. The single numerical value of a sample statistic that is assigned to the population
parameter is called

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a. interval estimates
b. unique estimate
c. point estimate
d. singular estimate

8. If there are two unbiased estimators of a population parameter, the one whose
variance is smaller is said to be:
a. a biased estimator
b. minimum variance unbiased (MVU) estimator
c. consistent
d. relatively unbiased

9. Confidence level for an interval estimate is denoted by:

a. α
b. (1 – α) × 100%
c. ß
d. (1 – ß) × 100%

10. Normal distribution (approximation) is used to make a confidence interval for the
population mean when the sample size is :
a. greater than 10
b. less than 25
c. greater than or equal to 30
d. greater than 100

11. Which of the following statements is (are) correct?

a. The sample mean is an unbiased estimator of the population mean
b. The sample proportion is an unbiased estimator of the population proportion
c. The difference between two sample means is an unbiased estimator of the
difference between two population means
d. All of the above statements are correct

12. Maximum error (or Bound on error) of estimate for the population mean (for
large sample) is:
a. z multiplied by the population standard deviation
b. z multiplied by t
c. z multiplied by the standard deviation of the sample mean
d. z multiplied by the sample mean

13. The z value for a 95% confidence interval for the population mean is:
a. 2.07
b. 1.96
c. 2.33
d. 1.645

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14. Problem with relying on a point estimate of a population parameter is that:
a. it has no variance
b. it might be unbiased
c. it might not be relatively efficient
d. it does not tell us how close or far the point estimate might be from the parameter

15. The z value for a 97% confidence interval for the population mean is:
a. 2.07
b. 2.33
c. 2.17
d. 2.575

16. Width of the confidence interval of a parameter depends on the size of the:
a. population parameter
b. maximum error of estimate
c. sample estimator
d. all of the above

17. A confidence interval is defined as:

a. a point estimate plus or minus a specific level of confidence
b. a lower and upper confidence limit associated with a specific level of confidence
c. an interval that has a 95% probability of containing the population parameter
d. a lower and upper confidence limit that has a 95% probability of containing the
population parameter

18. Width of a confidence interval can be decreased by:

a. lowering the confidence level or decreasing the sample size
b. increasing the confidence level or decreasing the sample size
c. lowering the confidence level or increasing the sample size
d. increasing the confidence level or increasing the sample size

19. The objective of estimation is to determine the approximate value of:

a. a population parameter on the basis of a sample statistic
b. a sample statistic on the basis of a population parameter
c. the sample mean
d. the sample variance

20. To decrease the width of a confidence interval, we should always prefer to:
a. lower the confidence level
b. increase the confidence level
c. increase the sample size
d. decrease the sample size

21. A sample of 100 workers in a Mitsubishi plant near Bloomington-Normal

produced a mean of 48 cars and a standard deviation of 8 cars. The 99% confidence

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interval for the population mean cars of such plants is:
a. 44.62 to 51.38
b. 46.33 to 49.67
c. 45.94 to 50.06
d. 43.78 to 52.22

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22. As discussed in class, the sample variance s is an unbiased estimator of the
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population variance σ when the denominator of s is:
a. n + 1
b. n
c. n - 1
d. n - 2

23. A sample of 81 observations produced a mean of 245 and a standard deviation of

36. The 95% confidence interval for the population mean is:
a. 237.16 to 252.84
b. 231.24 to 258.76
c. 239.31 to 250.69
d. 234.67 to 255.33

24. A random sample of 100 customers, who visited a department store near State
Farm headquarter, spent an average of $77 at this store with a standard deviation of
$19. The 97% confidence interval for the population mean is:
a. 74.56 to 79.44
b. 70.18 to 83.82
c. 73.89 to 80.11
d. 72.88 to 81.12

25. Which of the following assumptions must be true in order to use the formula
 σ 
X ± Z α / 2   to find a confidence interval estimate of the population mean?
 n
a. The population variance is known
b. The population mean is known
c. The population is normally distributed
d. The confidence level is greater than 90%

26. Average IQ score of a sample of 64 students selected from a Normal high school
is 89 with a standard deviation of 8. The 99% confidence interval for the mean IQ
score of all students at this school is:
a. 87.91 to 90.09
b. 86.42 to 91.58
c. 85.23 to 92.77
d. 83.85 to 94.15

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27. Average federal income tax paid last year by a sample of 36 tax payers selected
from a city was $4264 with a standard deviation of $780. The 95% confidence interval
for the mean federal income tax paid last year by all tax payers living in this city is:
a. $4009.20 to $4518.80
b. $4156.74 to $4371.26
c. $3890.41 to $4637.59
d. $3924.82 to $4603.18

 σ 
28. In the formula X ± Z α / 2   , the α/2 refers to:
 n
a. the probability that the confidence interval will contain the population mean
b. the probability that the confidence interval will not contain the population mean
c. the area in the lower tail or upper tail of the sampling distribution of the sample
mean
d. the level of confidence

29. The t distribution is used to make a confidence interval for the population mean if
the population from which the sample is drawn is (approximately) normally distributed,
the population standard deviation is not known, and the sample size is:
a. at least 30
b. less than 100
c. less than 30
d. 10 or less

30. When making a confidence interval for the population mean for small samples (in
one population), the degrees of freedom for the t distribution are:
a. n
b. n – 2
c. n – 1
d. n + 1

31. Which of the following is not a part of the formula for constructing a confidence
interval estimate of the population mean?
a. A point estimate of the population mean
b. The standard error of the sampling distribution of the sample mean
c. The confidence level
d. The value of the population mean

32. The value of t for 19 degrees of freedom and .01 area in the right tail is:
a. 2.861
b. 2.539
c. – 2.539
d. 1.328

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33. The value of t for 14 degrees of freedom and .05 area in the left tail is:
a. 1.761
b. – 1.761
c. 2.977
d. – 2.977

34. A sample of 20 students at ISU produced a mean test scores of 85 and a standard
deviation of test scores 12. Assuming that the population has a normal distribution, the
90% confidence interval for the population mean test scores is:
a. 81.54 to 88.46
b. 78.21 to 91.79
c. 80.36 to 89.64
d. 82.69 to 87.31

35. The larger the level of confidence used in constructing a confidence interval
estimate of the population mean:
a. the smaller the probability that the confidence interval will contain the population
mean
b. the smaller the value of Zα /2
c. the wider the confidence interval
d. the narrower the confidence interval

36. A sample of 27 workers at Caterpillar produced a mean of 124 items and a

standard deviation of 16 items. Assuming that the population has a normal distribution,
the 98% confidence interval for the population mean items produced in Caterpillar is:
a. 115.50 to 132.50
b. 117.50 to 130.50
c. 114.25 to 133.75
d. 116.37 to 131.63

37. A random sample of 25 tourists who visited Illinois this summer spent an average
of $1420 on this trip with a standard deviation of $285. Assume that the money spent
by all tourists who visit Illinois has an approximate normal distribution. The 95%
confidence interval for the mean money spent by all tourists who visit Illinois is:
a. $1371.67 to $1468.33
b. $1281.24 to $1558.76
c. $1346.92 to $1493.08
d. $1302.35 to $1537.65

38. A random sample of 16 life insurance policy holders with State Farm showed that
the mean value of their life insurance policies is $200,000 with a standard deviation of
$50,000. Assume that the values of life insurance policies for all such policy holders
have an approximate normal distribution. The 99% confidence interval for the mean
value of all life insurance policies with State Farm is:

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a. $174,823.50 to $225,176.50
b. $163,162.50 to $236,837.50
c. $145,249.25 to $254,750.75
d. $157,482.50 to $242,517.50

39. The term 1- α refers to:

a. the probability that a confidence interval does not contain the population parameter
b. the level of confidence
c. the level of confidence minus one
d. the level of confidence plus one

40. A random sample of 20 houses selected from a Bloomington showed that the
mean size of these houses is 1850 square feet with a standard deviation of 320 square
feet. Assume that the sizes of all houses in Bloomington have an approximate normal
distribution. The 90% confidence interval for the mean size of all houses in
Bloomington is:
a. 1805.34 to 1894.66
b. 1726.28 to 1973.72
c. 1758.81 to 1941.19
d. 1711.46 to 1988.54

41. A sample of 500 observations produced a sample proportion (p-hat) of 0.75. The
95% confidence interval for the population proportion is:
a. .683 to .817
b. .690 to .810
c. .712 to .788
d. .734 to .766

42. A sample of 200 observations produced a sample proportion (p-hat) of 0.47. The
98% confidence interval for the population proportion is:
a. .388 to .552
b. .443 to .497
c. .421 to .519
d. .369 to .571

43. The letter (or symbol) α in the formula for constructing a confidence interval
estimate of the population mean is
a. the level of confidence
b. the probability that a confidence interval will contain the population mean
c. the probability that a confidence interval will not contain the population mean
d. the area in the lower tail of the sampling distribution of the sample mean

44. A sample of 1000 ISU students showed that 31% of them are smokers. The 90%
confidence interval for the proportion of all ISU students who are smokers is:
a. .300 to .320

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b. .285 to .335
c. .265 to .355
d. .247 to .373

45. In a sample of 500 items produced by a machine in an automobile factory, 7% are

found to be defective. The 95% confidence interval for the proportion of defective
items in all items produced by this machine is:
a. .061 to .079
b. .057 to .083
c. .048 to .092
d. .032 to .108

46. A sample of 1000 families selected from Peoria showed that 18% of them make
$100,000 or more per year. The 99% confidence interval for the proportion of all
families living in Peoria who make $100,000 or more per year is:
a. .167 to .193
b. .171 to .189
c. .158 to .202
d. .149 to .211

47. Which of the following is not a characteristic for a good estimator?

a. Biasedness
b. Consistency
c. efficiency
d. Unbiasedness

48. A sample of 800 people in Normal showed that 15% of them do not have any
health insurance. The 95% confidence interval for the proportion of all people in
Normal who do not have any health insurance is:
a. .125 to .175
b. .103 to .197
c. .141 to .159
d. .112 to .188

49. A researcher at UI wants to make a 99% confidence interval for the population
mean. She wants the maximum error of estimate to be within 4.8 of the population
mean. The population standard deviation is known to be 18.65. The sample size that
will yield a maximum error of estimate within 4.8 of the population mean is:
a. 183
b. 101
c. 54
d. 155

50. A researcher at UI wants to make a 95% confidence interval for the population
mean. She wants the maximum error of estimate to be within 2.5 of the population

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mean. The population standard deviation is known to be 10.50. The sample size that
will yield a maximum error of estimate within 2.5 of the population mean is:
a. 68
b. 95
c. 36
d. 8

51. The width of a confidence interval estimate of the population mean widens when
the:
a. level of confidence increases
b. sample size decreases
c. value of the population standard deviation increases
d. all of the above statements are correct

52. A researcher at UI wants to estimate the mean age of all Business Week readers
at a 99% confidence level. It is known that the standard deviation of ages of all
Business Week readers is nine years. The sample size that will yield a maximum error
of estimate within three years of the population mean is:
a. 60
b. 97
c. 185
d. 235

53. A food company in Chicago wants to estimate the mean net weight of all 32-
ounce packages of its Taste cookies at a 95% confidence level. It is known that the
standard deviation of net weights of all 32-ounce packages of Taste cookies is .10
ounces. The sample size that will yield a maximum error of estimate within .02 ounces
of the population mean is:
a. 48
b. 97
c. 191
d. 110

54. A researcher at ISU wants to make a 99% confidence interval for the population
proportion. A preliminary sample produced the sample proportion of .67. The sample
size that would limit the maximum error of estimate to within .03 of the population
proportion is:
a. 1629
b. 1007
c. 1890
d. 910

55. Which of the following statements is false?

a. The width of a confidence interval estimate of the population mean narrows when
the sample size increases

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b. The width of a confidence interval estimate of the population mean narrows when
the value of the sample mean increases
c. The width of a confidence interval estimate of the population mean widens when
the confidence level increases
d. The width of a confidence interval estimate of the population mean widens when
the sample size decreases

56. A researcher at ISU wants to make a 99% confidence interval for the population
proportion. The most conservative estimate of the sample size that would limit the
maximum error of estimate to within .04 of the population proportion is:
a. 1274
b. 1041
c. 824
d. 1637

57. A Bloomington company wants to estimate, at a 95% confidence level, the

proportion of all families who own its product. A preliminary sample showed that 34%
of the families in the sample own this company's product. The sample size that would
limit the maximum error of estimate to within .04 of the population proportion is:
a. 693
b. 245
c. 539
d. 838

58. A Bloomington company wants to estimate, at a 95% confidence level, the

proportion of all families who own its product. The most conservative estimate of the
sample size that would limit the maximum error of estimate to within .04 of the
population proportion is:
a. 875
b. 283
c. 727
d. 601

59. Which of the following statements is false?

a. The sample size needed to estimate a population mean is directly proportional to
the population variance
b. The sample size needed to estimate a population mean is directly proportional to
the square of the standard normal distribution value Zα /2
c. The sample size needed to estimate a population mean is directly proportional to
the square of the maximum allowable error B (or E)
d. The sample size needed to estimate a population mean is inversely proportional to
the square of the maximum allowable error B (or E)

60. The Labor Bureau of USA wants to estimate, at a 90% confidence level, the
proportion of all households that receive welfare. The most conservative estimate of

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the sample size that would limit the maximum error to within .03 of the population
proportion is:
a. 1169
b. 927
c. 1391
d. 752

61. The Labor Bureau of USA wants to estimate, at a 90% confidence level, the
proportion of all households that receive welfare. A preliminary sample showed that
16% of households in this sample receive welfare. The sample size that would limit
the maximum error of estimate to within .03 of the population proportion is:
a. 1091
b. 405
c. 845
d. 1269

62. A 98% confidence interval estimate for a population mean µ is determined to be

75.38 to 86.52. If the confidence level is reduced to 90%, the confidence interval for µ
a. a. becomes wider
b. b. remains the same
c. c. becomes narrower
d. d. none of the above answers is correct

63. Which of the following is not part of the procedure for estimating the value of a
population parameter?
a. Selecting a sample
b. Collecting the required information from the members of the sample
c. Calculating the value of the sample statistic
d. Calculating the exact value of the corresponding population parameter

64. You are estimating the mean waiting time in line at a particular fast-food
restaurant near downtown. You ask thirty customers, at varying times of the day, how
long they waited in line before placing their order. You then take the average of these
values and use this average to estimate the mean waiting time for all customers. The
average of the thirty values is an example of a(n):
a. Chebyshev estimate
b. point estimate
c. interval estimate
d. confidence estimate

65. The z value for a 96.6% confidence interval estimate is

a. 2.12
b. 1.82
c. 2.00
d. 1.96

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66. A scientist at UI bio-engineering department is estimating the mean lifetime of a
newly-discovered insect. From a sample of 100 insects, she finds a sample mean of
45 days and a sample standard deviation of 2.5 days. What are the boundaries for a
90% confidence interval for the mean lifetime of the insect?
a. 42.5 to 47.5
b. 44.5875 to 45.4125
c. 40.875 to 49.125
d. 44.51 to 45.49

67. In developing an interval estimate for a population mean, the population standard
deviation σ was assumed to be 10. The interval estimate was 50.92 ±2.14. Had σ
equaled 20, the interval estimate would be
a. 60.92 ± 2.14
b. 50.92 ± 12.14
c. 101.84 ± 4.28
d. 50.92 ± 4.28

68. Which of the following is not an acceptable condition for using the t distribution
to make a confidence interval for µ?
a. The population from which the sample is drawn is normal
b. The sample size is less than 30
c. The population distribution from which the sample was selected is highly skewed
d. The population standard deviation is not known

69. Each employee at Caterpillar is encouraged to contribute, through payroll

deduction, to an international charity. Annual contributions per employee follow
(approximately) a normal distribution. A sample of 25 employees is taken, and it is
found that the mean annual contribution per employee from this sample is $502 with a
standard deviation of $18. The 99% confidence interval for the population mean is:
a. $493.03 to $510.97
b. $491.93 to $512.07
c. $451.65 to $552.35
d. $494.47 to $509.53

70. In developing an interval estimate for a population mean, a sample of 50

observations was used. The interval estimate was 19.76 ± 1.32. Had the sample size
been 200 instead of 50, the interval estimate would have been
a. 19.76 ± .33
b. 19.76 ± .66
c. 9.88 ± 1.32
d. 4.94 ± 1.32

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71. An advisor to the mayor of Chicago wants to estimate, within 3 minutes, the
mean travel time to work for all employees who work within the city limits. He knows
that the standard deviation for all travel times is 12.25 minutes. He also wants to
achieve a 95% confidence interval. He will poll a random sample of city employees.
How many employees should he poll?
a. 25
b. 35
c. 65
d. 85

72. After constructing a confidence interval estimate for a population mean, you
believe that the interval is useless because it is too wide. In order to correct this
problem, you need to:
a. increase the population standard deviation
b. increase the sample size
c. increase the level of confidence
d. increase the sample mean

73. The sample size needed to estimate a population mean within 2 units with a 95%
confidence when the population standard deviation equals 8 is
a. 9
b. 61
c. 62
d. 8

74. In developing an interval estimate for a population mean, the interval estimate
was 62.84 to 69.46. The population standard deviation was assumed to be 6.50, and a
sample of 100 observations was used. The mean of the sample was
a. 56.34
b. 62.96
c. 13.24
d. 66.15

75. A random sample of 64 observations has a mean of 30. The population variance
is assumed to be 9. The 85.3% confidence interval estimate for the population mean is
a. 28.369 to 31.631
b. 29.456 to 30.544
c. 28.560 to 31.440
d. 29.383 to 30.617

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Answer Key
1. c 26. b 51. d
2. a 27. a 52. a
3. b 28. c 53. b
4. d 29. c 54. a
5. d 30. c 55. b
6. c 31. d 56. d
7. c 32. b 57. c
8. b 33. b 58. d
9. b 34. c 59. c
10. c 35. c 60. d
11. d 36. d 61. b
12. c 37. d 62. c
13. b 38. b 63. d
14. d 39. b 64. b
15. c 40. b 65. a
16. b 41. c 66. b
17. b 42. a 67. d
18. c 43. c 68. c
19. a 44. b 69. b
20. c 45. c 70. b
21. c 46. d 71. c
22. c 47. a 72. b
23. a 48. a 73. c
24. d 49. b 74. d
25. a 50. a 75. b

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