I.

Solve the following problems:

1. Height of women: confidence interval is 95% n = 50 x = 63.4 s = 2.4 in.

Use the given degree of confidence and sample data to find:

a) the margin of error E, and

b) The confidence interval of the population mean µ.

SOLUTION:

a) Given: n = 50 σ = 2.4 x = 63.4

α = 95% (0.05) Za/2 = 1.96

E = Za/2 · σ/√n = (1.96) 2.4/ √50 = (1.96) 2.4/7.07106

= 1.96 (0.33941)

E = 0.66

b) Confidence interval of µ.

Given: x = 63.4 E = 0.66

X–E<µ < X + E

63.4 - 0.66 < µ < 63.4 + 0.66

62.74 <µ < 64.06

Therefore: µ = 63.4 ± 0.66

2. In a crash test of 15 Kia Saloon cars, collision repair costs are found to have a
distribution that is roughly bell shaped with a mean of P17,860 and a standard
deviation of P9,370. Construct the 99% confidence interval for the mean repair
cost in all such vehicle collision.

a) Given: n = 15 X = P17,860 s = P9,370

SOLUTION:

With 99% degree of confidence, α = 0.01 df = 15 - 1 = 14

cv (0.01, 14) ta/2 = 2.977

E = ta/2 · s/ √n = 2.977 (P9,370/ √15) = 2.977 (P9,370/3.87298)

= 2.977 (2,419.32)

E = P7,202.33

b) Confidence interval for µ

Given: X = P17,860 E = P7,202.33

X–E<µ < X + E

P17,860 - P7,202.33 < µ < P17,860 + P7,202.33

P10,657.67 <µ < P25,062.33

Therefore, the confidence interval is

P10,657.67 < µ < P25,062.33 or µ = P7,202.33 or (P10,657.67, P25,062.33)

& the confidence interval limits are P10,657.67 and P25,062.33

3. Assume that a sample is used to estimate a population proportion P. Find the
margin of error E that corresponds to: a) n = 800 x = 200, and 95% degree
of confidence.

a) Given: n = 800 x = 200

Therefore: p = x/n = 200/800 = 0.25

q = 1 - p = 1 - 0.25 = 0.75

with 95% confidence interval, α = 0.05 Za/2 = 1.96

E = Za/2 · √pq / n = 1.96 · √(0.25)(0.75) / 800 = 1.96 · √0.1875/800

= 1.96 (√0.00023) = 1.96 (0.01531)

E = 0.03

b) Confidence interval of P.

p–E<P < p + E

0.25 - 0.03 < P < 0.25 + 0.03

0.22 < P < 0.28

or P = 0.22 ± 0.28 or P = (0.22, 0.28)

4. A sales person of a computer company wants to conduct a survey to estimate
the true proportion of all college students who own personal computers, and he
wants a 95% confidence that his results have a margin of error of 0.04. How
many college students must he surveyed?

1. Assume that p = 27%

Given : p = 27% E = 0.04

q = 100% - 27% = 73% 0r 0.73

with 95% degree of confidence, α = 0.05 Za/2 = 1.96

n = (Za/2)2 (pq) / E2 = (1.96)2 [(0.27)(0.73)]/ (0.04)2

= 3.8416 (0.1971) / 0.0016

= 0.75718 / 0.0016

n = 473

2. P is unknown

Given: E = 0.04 95% level of confidence p & q unknown

n = (Za/2)2 [(0.5) (0.5)] / E2 = (1.96)2 (0.25) / (0.04)2

= 3.8416 (0.25) /0.0016

= 0.9604 / 0.0016 = 600.25

n = 600