MATH 131 TEST 3 REVIEW SHEET 8/11

Important terms and phrases: To locate these terms in the book, please use the index at the
back of the book.

c, level of confidence Type II error

Critical values , level of significance
E, Margin of Error Test statistic
Confidence interval P-value method for hypothesis testing
n, minimum sample size one and two-tailed tests
t-distribution Correlation
Degrees of freedom r, correlation coefficient
H 0 , null hypothesis Equation of a regression line
H a , alternative hypothesis Chi-Square Goodness-of-Fit Test
Type I error Chi-Square Test for Independence

Links to pencast solutions to selected problems are boxed next to these problems. Written
answers to all problems can be found at the end of the review sheet.

1. According to Bride’s Magazine, the cost of a wedding these days can be expensive when
the costs of the reception, engagement ring, bridal gown, and pictures-just to name a few-
are included. Shao Wei wants to estimate the mean cost for a wedding. From a random
sample of 115 recent U.S. weddings, the mean cost was $18,945 and the standard
deviation was $8,280.
a) Construct a 99% confidence interval for the population mean #1 SOLUTION
cost for a wedding.
b) Determine the minimum required sample size to construct a 99% confidence interval so
that the sample mean is within $1,000 of the population mean.

2. According to Crime in the United States, a publication of the FBI, the mean value lost to
purse-snatching was $362. However, you believe this amount is not correct. You select a
random sample of 12 purse-snatching offenses that yielded the following values lost, to
the nearest dollar.
#2 SOLUTION
237 452 302 392 195 299
256 235 378 296 460 268
At  = 0.05, do you have enough evidence to reject that the mean value lost to purse-
snatching was different from $362? Assume the population is normally distributed. Use a
critical value and rejection region for your test.

3. In a survey of 2000 adults from the U.S. age 65 and over, 1320
received a flu shot. #3 SOLUTION
a) Find a point estimate for the population proportion p of adults
receiving a flu shot.
b) Construct a 90% confidence interval for the population proportion.

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4. An economist wants to estimate the mean income for the first year of work for college
graduates. Determine the minimum required sample size to construct a 95% confidence
interval such that the sample mean is within $500 of the population mean. Assume that the
population standard deviation is $6250.

5. Explain, clearly and briefly, under what circumstances you might want to use the
following inferential statistical procedures.
a) estimating with confidence intervals (Chapter 6)
b) hypothesis testing with one sample (Chapter 7)
c) Chi Square test for independence (Chapter 10)
d) Chi Square test for goodness of fit (Chapter 10)
e) correlation analysis (Chapter 9)
f) regression analysis (Chapter 9)

6. An automaker estimates that the mean gas mileage of its luxury sedan is more than 25
miles per gallon. A random sample of eight such cars had a mean of 26 miles per gallon
and a standard deviation of 5 miles per gallon. At  = 0.05, can you reject the
automaker’s claim that the mean gas mileage of its luxury sedan is more than 25 miles per
gallon? Assume the population is normally distributed.

7. eBay sells products on the Internet. The management wants to find out if the number of
orders received at the eBay office is uniformly distributed throughout the week. A random
sample of 400 orders received during a four-week period is taken. The following table
lists the frequency distribution for these orders by the day of the #7 SOLUTION
week. At  = 0.05, can you conclude that number of orders
received are not uniformly distributed throughout the week?

Day of the Week Number of Orders Received

Monday 92
Tuesday 71
Wednesday 65
Thursday 83
Friday 89

8. In a random sample of 17 shoppers at a grocery store, the mean amount spent was $28.13
and the standard deviation was $12.05. Assume the population is normally distributed.
a) What distribution should be used to construct a 95% confidence interval for the population
mean? Justify your answer.
b) Construct a 95% confidence interval from above.

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9. Some researchers have found that there is a positive correlation between coffee drinking
and the risk of heart disease.
a) Does this mean that coffee drinking causes heart disease?
b) What third factor could be causing both factors to increase?

10. A random sample of eight auto drivers insured with a company and having similar auto
insurance policies was selected. The following table lists their driving experience (in
years) and monthly auto insurance premium.

Driving Experience (years) Monthly Auto Insurance Premium

x y
5 $64
2 87
12 50
9 71
15 44
6 56
25 42
16 60

a) Do you expect a positive or a negative relationship between these two variables? Explain
your reasoning.
b) Graph a scatter plot of the data. Label the x and y axes. #10 SOLUTION
c) List the correlation coefficient r.
d) Test the significance of the correlation coefficient, r. Use α = 0.05
e) If it is meaningful, find the equation of the regression line.
f) What does the slope of the regression line represent in terms of driving experience and the
monthly auto insurance premium?
g) Explain clearly and in sentence form the meaning of the y-intercept of this line.
h) Give two points on the regression line. Use them to plot the regression line on the scatter
plot.
i) Predict the monthly auto insurance premium for a driver with 10 years of driving
experience.

11. According to past records, the average sale price of homes in Holmdel was higher than
$520,234. A random sample of 50 recent home sales from this neighborhood gave a mean
sale price of $565,750 with a standard deviation of $75,210. At  = 0.01, can you
conclude that the current mean sale price of homes in Holmdel is higher than $520,234?
Use a critical value and rejection region for your test.

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12. a) Would the correlation between the age of a used car and its price be positive or
negative? EXPLAIN. (Antique cars are not included.)
b) Suppose men always married women who were exactly 8% shorter than they are.
What would the correlation between their heights be?
c) Would the number of days absent from class and the numerical grade received in the
class have a positive, negative or zero correlation? EXPLAIN.

13. In a study of 200 accidents that required treatment in an emergency room, 80 of the
accidents occurred at home.
a) Find a 95% confidence interval for the population proportion of accidents treated in the
emergency room that occurs at home.
b) Find a 99% confidence interval for the same value.
c) Find a 90% confidence interval for the same value.
d) Clearly explain the relationship between confidence level and the width of the confidence
interval.

14. The number of cell phone users has increased exponentially in recent years. The increase
in cell phone use should bring a reduction in customer phone bills because of heightened
competition. According to The World of Wireless Communication, the mean local monthly
bill for cell phone users in the U.S. was $47.70. A random sample of 50 people in the
U.S. has a mean monthly bill of $41.20 and a standard deviation of $27.00. Assume
 = 0.05. Use the P-value method to test the claim that the mean local monthly bill for
cell phone users in the U.S. was $47.70?

15. A sociologist wishes to see whether the number of years of college a person has
completed is related to his/her place of residence. A sample of 1000 people is selected
and classified as given below. At α = 0.05, can you
conclude that the years of college and the residence #15 SOLUTION
location are related?

Location No College College degree Graduate degree

Urban 150 120 80
Suburban 80 150 70
Rural 160 90 100

16. The sociology department is conducting a study to see if the percentage of dual income
families has increased over the past 15 years. Fifteen years ago, studies showed that in
45% of the families studied, both spouses worked outside the home. A study this year
shows that for a random sample of 400 families in which both spouses were present, both
spouses earn income in 210 of the cases. Find a 90% confidence interval for the
proportion of families with dual incomes.

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17. A paper in the May 2002 issue of The Journal of Pediatrics presented the results of
research on various characteristics in children of diabetic mothers. The studies have
shown that maternal diabetes results in obesity and blood pressure complications in the
offspring. Following are the arterial blood pressures, in millimeters of mercury (mm Hg),
for a random sample of 16 children of diabetic mothers.
81.6 84.1 87.6 82.8 82.0 88.9 86.7 96.4
69.4 78.9 75.2 91.0 84.6 104.9 90.8 94.0

Construct a 98% confidence interval for the population mean arterial blood pressure for all
children of diabetic mothers. Assume the population is normally distributed.

18. A national survey was conducted to obtain information on the alcohol consumption
patterns of U.S. adults by marital status. A random sample of #18 SOLUTION
1772 residents, 18 years old and older, yielded the data displayed
below.

Drink per Month

Marital Status Abstain 1-60 Over 60
Single 67 213 74
Married 411 633 129
Widowed 85 51 7
Divorced 27 60 15

At  = 0.01, can you conclude that marital status is related to alcohol consumption?

19. a) Choose one of the following responses and explain your choice.
"The correlation between the ages of husbands and wives in the U.S. is
(a) exactly – 1 (b) close to – 1 (c) close to 0 (d) close to +1 (e) exactly +1
b) Explain this statement: "Study time and test grade were perfectly positively
correlated."
c) Explain this statement: "The president is reported to have a 39% approval rating with
a margin of error of 5%."
d) If you could choose any level of significance to use in hypothesis testing, what would
you choose and why?
e) Give 2 ways to make a confidence interval smaller.

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20. A university science department has agreed upon the grading policy shown below for an
introductory course. The chairman of the department is not sure the policy was followed
last semester. Because the introductory course has 2000 students in 40 sections, he does
not want to tally all of these grades. Instead, he plans to take a random sample of 50
grades and perform a hypothesis test to see if the policy is
followed. The grading policy and the results of the sample are #20 SOLUTION
shown below.

Distribution of Grading Policy Survey Result

A Top 10% (n = 50)
B Next 20% A 10
C Middle 40% B 10
D Next 20% C 10
F Bottom 10% D 14
F 6

At  = 0.01, can you conclude that the distribution of grading policy was followed
last semester?

21. A consumer welfare agency wants to investigate the relationship between the sizes
of houses and the rents paid by tenants in a small town. The agency collected the following
information on the sizes (in hundreds of square feet) of six houses and the monthly rent (in
dollars) paid by tenants.

Size of House Monthly Rent

x y
21 700
13 580
19 720
27 1000
34 1250
23 800

a) Construct a scatter plot for these data. Does the scatter plot show a linear relationship
between size of home and monthly rent?
b) List the correlation coefficient r.
c) Test the correlation coefficient, r. Use  = 0.05.
d) If it is meaningful, find the equation of the regression line.
e) Plot the regression line on the scatter plot.
f) What does the slope of the regression line represent in terms of size of house and
monthly rent?
g) Predict the monthly rent for a house with 2500 square feet.
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Answer Key:
**Important: You must check with your instructor about how the computer will be used in your
testing and how much detail you must provide in your answers. Everyone must provide conclusions
written in clear and complete sentences. Sketches should accompany your solution whenever
appropriate. Also, follow the rounding rules specified by your instructor.

1. a) With 99% confidence, we say that the

population mean cost for a wedding is between
$16,956.81 and $20933.19. The test statistic t = 0.57 is not in the
b) At least 455 U.S. weddings should be rejection region. We do not reject the null
included in the sample. hypothesis. There is not enough evidence at
the 5% level of significance to support the
H 0 :   362 claim that the mean gas mileage of its luxury
2.
H a :   362  claim  sedan is more than 25 miles per gallon.

7.
H 0 : The distribution across days of the week is uniform.
H a : The distribution across days of the week is not uniform.

The test statistic t = –1.91 is not in the rejection

region. We do not reject H 0 . There is not
enough evidence at a 5% level of significance to 6.75 9.488

support the claim that the mean value lost to

purse-snatching was different than $362.
The Chi-square test  2 = 6.75 is not in
3. a) p̂ = 0.66 the rejection region. We do not reject
b) With 90% confidence, we say that the the null hypothesis. There is not enough
population proportion of those receiving evidence at the 5 % level of significance
the shots is between 64% and 68%. to conclude that the number of orders
received at the eBay office is not
4. We will need a sample of at least 601 to uniformly distributed throughout the
measure the population mean income for the week.
first year of work for college graduate; to
within $500. 8. a) t distribution because the sample size is
17,  is not known, and the population
5. Explain and go over each chapter. is normal distributed.
b) With 95% confidence, we say that the
H 0 :   25 population mean amount spent at a
6. grocery store was between $21.93 and
H a :   25 (claim)
$34.33.

9. a) see Section 9.1 & causation

b) lifestyle, stress, personality type,
genetics.

10. a) We might expect a negative relationship

between driving experience and monthly auto

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insurance premium. The insurance companies i) (10, 61.20) According to the regression
consider a new driver a high risk and he/she has line, if you have 10 years of driving
to pay a higher premium for auto insurance. The experience, the monthly auto insurance
insurance premium is expected to decrease with premium will cost $61.20.
an increase in the years of driving experience.
11. H 0 :   520, 234
H a :   520, 234 (claim)
b)
Driving Experience v.s. Month Auto Insurance Premium
90
Monthly Auto Insurance Premium

80

70

60

50

40
0 5 10 15 20 25
Driving Experience (Years)

c) r = – 0.768 The test statistic z = 4.28 is in the

rejection region. We reject the null
H 0 :   0 (no correlation)
d) hypothesis. There is enough evidence at
H a :   0 (significant correlation) the 1% level of significance to support
The test statistic r = – 0.768. Because the claim that the current mean sale
r  0.768 > 0.707, we can decide that price of homes in Holmdel is greater
than $520,234.
the population correlation is significant.
So there is enough evidence at the 5% 12. a) The correlation would be negative, as
level of significance to conclude that the value of your car decreases over
there is significant linear correlation time.
between the driving experience and b) The correlation coefficient would be
monthly auto insurance premium. r =1 because we can find a regression
e) yˆ  1.55 x  76.70 equation that would describe all couples
f) slope = –1.55 indicates that for every perfectly. yˆ  0.92 x if x is the husband’s
extra year of driving experience, the height and y is his wife’s height.
monthly auto insurance premium c) Probably a strong negative correlation.
decreases by $1.55. More absences would go with lower
g) y-intercept = 76.70 gives the value of grades.
ŷ for x = 0. That is, it gives the monthly
auto insurance premium for a driver 13. a) With 95% confidence, we say that the
with no driving experience. population proportion of accidents
h) For example (4, 70.50), (20, 45.70) treated in the emergency that occur at
home is between 33.2% and 46.8%
regression line
90
b) With 99% confidence, we say that the
population proportion of accidents
Monthly Auto Insurance Premium

80 treated in the emergency that occur at

home is between 31.1% and 48.9%
70
c) With 90% confidence, we say that the
60 population proportion of accidents
treated in the emergency that occur at
50
home is between 34.3% and 45.7%
40
d) As the confidence level goes down, the
width of the confidence interval is
0 5 10 15 20 25
Driving Experience (Years) smaller.

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H 0 :   47.70  claim 
14. a)
H a :   47.70
The test statistic z = –1.70. Because
there are two tails, the P-value is 0.0892.
We do not have enough evidence to
reject the null hypothesis.
b) We do not have enough evidence to
reject the claim that the mean local
monthly bill for cell phone users in the
U.S. was $47.70.
15. H 0 : The number of years of college a
person has completed is independent of
his/her residence location.
H a : The number of years of college a
person has completed is dependent on
and his/her residence location.
46.75
9.488
The rejection region is 02  9.488.
The test statistic  2  46.75 is in the
rejection region so we reject H 0 . There
is enough evidence at the 5% level
significance to conclude that the
number of years of college a person has
completed and his/her residence
location are dependent.
16. With 90% confidence, we can say that
the population proportion of families
with two spouses earning incomes is
between 48.4% and 56.6%.
17. With 98% confidence, we can say that
the population mean arterial blood
pressure for all children of diabetic
mothers is between 80.7 mm Hg and
91.7 mm Hg.
18. H 0 : Alcohol consumption is independent of
marital status
H a : Alcohol consumption is dependent on
alcohol consumption.
16.812 94.269
The rejection region is 02  16.812 . The
test statistic  2  94.269 which is in the
rejection region. Thus, we reject H 0 .
There is enough evidence at 1% level of
significance to conclude that the alcohol
consumption is dependent on marital
status.
19. a) answer (d). For the most part younger
women marry younger men; older
women marry older men.
b) This means as study time increases, the
grade would increase.
c) At an unspecified confidence
level (probably 95%) we find the
population approval proportion to be
between 34% and 44%.
d) Opinion; but it should be small.
e) Increase the sample size. Decrease the
confidence level. Lower the standard
deviation.
20. H 0 : Distribution of grading policy in the
introductory course is as shown in table.
(claim)
H a : Distribution of grading policy in the
introductory course differs from the
claimed distribution.
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H 0 :   0 (no correlation)
c)
H a :   0 (significant correlation)
The test statistic r = 0.975. Because
r  0.975 > 0.811, we decide that the
population correlation is significant. So
there is enough evidence at the 5% level
of significance to conclude that there is
significant linear correlation between
the size of house and monthly rent.
d) yˆ  33.1x  85.0
e)
Size of House v.s. Monthly Rent
The test statistic  2  11.8 is not in the Size of House (in hundreds of sqare feet)
Monthly Rent (in dollars)

rejection region. We fail to reject H 0 . There 1300

1200
is not enough evidence at the 1% level of 1100
significance to conclude that the distribution 1000

of grading policy differs from the claimed

Rent
900

distribution. The data does not show that the 800

700
department policy was violated last semester.
600

500
21. 10 15 20 25 30 35
House
a) Scatter plot.

f) slope = 33.1 indicates that for every

Size of House v.s. Monthly Rent extra hundred of square feet, the
Size of House (in hundreds of sqare feet) monthly rent is increased by $33.10
Monthly Rent (in dollars)
1300
g) (25, 912.50). For a house with 2500
square feet, the monthly rent would be
1200
$912.50.
1100

1000
Rent

900

800

700

600

500
10 15 20 25 30 35
House

b) r = 0.975

10