Professional Documents
Culture Documents
Interval Estimation
Learning Objectives
3. Learn about the t distribution and its use in constructing an interval estimate when is
confidence level
Solutions
1. a. x / n 5 / 40 .79
2. a. 32 + 1.645 (6 / 50 )
b. 32 + 1.96 (6 / 50 )
c. 32 + 2.576 (6 / 50 )
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in part.
32 + 2.19 or 29.81 to 34.19
160 152
x 156
Sample mean 2
1.96( / n) 4
n 1 .9 6 / 4 1 .9 6 (1 5) / 4 7 .3 5
n = (7.35)2 = 54
Margin of error = 2 .5 7 6 / n 2 .5 7 6 (6 / 6 4 ) 1 .9 3
Using Excel and the web file TravelTax, the sample mean is x 40.31 and the sample size
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in part.
z.025 1.96 , $255 , n 50
8. a. Because n is small, an assumption that the population is at least approximately normal
distribution.
b. Margin of error: z .0 2 5 ( / n ) 1 .9 6 (5 .5 / 1 0 ) 3 .4 1
c. Margin of error: z .0 0 5 ( / n ) 2 .5 7 6 (5 .5 / 1 0 ) 4 .4 8
9. x+ z .0 2 5 ( / n )
The average cost to repair the smoke and fire damage that result from home fires of all
causes is $11,389. The 95% confidence interval shows the mean cost of fires resulting
x z / 2
10. a. n
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in part.
3,486 + 153 or $3,333 to $3,639
The confidence interval gets wider as we increase our confidence level. We need a
wider interval to be more confident that the interval will contain the population mean.
11. a. .025
b. 1 – .10 = .90
c. .05
d. .01
e. 1 – 2(.025) = .95
f. 1 – 2(.05) = .90
12. a. 2.179
b. –1.676
c. 2.457
xi 80
x 10
13. a. n 8
b.
xi ( xi x ) ( xi x ) 2
10 0 0
8 –2 4
12 2 4
15 5 25
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in part.
13 3 9
11 1 1
6 –4 16
5 –5 25
84
( xi x ) 2 84
s 3.464
n 1 7
t .025 ( s / n ) 2 .3 6 5(3 .4 6 4 / 8 ) 2 .9
c.
x t .0 2 5 ( s / n)
d.
x t / 2 ( s / n)
14. , df = 53
d. As the confidence level increases, there is a larger margin of error and a wider
confidence interval.
x t / 2 ( s / n)
15.
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in part.
19.5 ± 1.669 (5.2 / 65 )
The sample mean years to maturity is 9.7063 years with a standard deviation of
7.9805.
9.7063 ± 2.023 (7 .9 8 0 5 / 40 )
The 95% confidence interval for the population mean years to maturity is 7.1536 to
12.2590 years.
The sample mean yield on corporate bonds is 3.8854% with a standard deviation of
1.6194.
d. x t .0 2 5 ( s / n) df = 39 t.025 = 2.023
3.8854 ± 2.023 (1 .6 1 9 4 / 40 )
The 95% confidence interval for the population mean yield is 3.3674 to 4.4034%.
x t .0 2 5 ( s / n) df = 49 t.025 = 2.010
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in part.
6.34 ± 2.010 ( 2 .1 6 3 / 50 )
a. x = 22 weeks
d. Skewness = 1.0062, data are skewed to the right. Use a larger sample next time.
19. a. t .0 2 5 ( s / n) , df = 41
x t .0 2 5 ( s / n)
b.
c. The mean cost for a mid-range meal for two in Tokyo ($40) is not in the 95%
confidence interval for comparable meals in Hong Kong. The mean cost of
The point estimate of the mean annual auto insurance premium in Michigan is
$2,551.
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in part.
2,551 + 2.093 (301.3077 / 20 )
c. The 95% confidence interval for Michigan does not include the national average of
$1,503 for the United States. We would be 95% confident that auto insurance
xi 1420
x 71
21. n 20
(xi x )2 9492
s 22.3513
n 1 20 1
t.025 = 2.093 df = 19
71 + 2.093 (22.3513 / 20 )
xi 693,000
x $23,100
22. a. n 30
The point estimate of the population mean ticket sales revenue per theater is $23,100.
(xi x )2
s 3981.89
n 1
23,100 + 3981.89
2.045
30
23,100 + 1,487
The 95% confidence interval for the population mean is $21,613 to $24,587.
b. Mean number of customers per theater = 23,100/8.11 = 2,848 customers per theater
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in part.
c. Total number of customers = 4,080(2,848) = 11,619,840
Total box office ticket sales for the weekend = 4,080(23,100) = $94,248,000
2
z.025 2 (1.96) 2 (40) 2
n 61.47 Use n 62
23. E2 10 2
z.2025 2 (196
. ) 2 ( 9) 2
n 34.57 Use n 35
b. E2 32
(1.96) 2 ( 9) 2
n 77.79 Use n 78
c. 22
(1.96) 2 (6.84) 2
n 79.88 Use n 80
(1.5) 2
25.
(1.645) 2 (6.84) 2
n 31.65 Use n 32
22
26. a.
2
z.025 2 (1.96) 2 (.07) 2 Use 21.
n 20.92
E2 (.03) 2
If the normality assumption for the population appears questionable, this should be
b. (1.96) 2 (.07) 2
n 47.06
(.02) 2
Use 48 to guarantee a margin of error no greater than .02. However, the U.S. EIA
For reporting purposes, the U.S. EIA might decide to round up to a sample size of
200.
60,000 45,000
27. Planning value 3750
4
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in part.
2
z.025 2 (1.96) 2 (3750) 2
n 216.09 Use n 217
E2 (500) 2
a.
(1.96) 2 (3750) 2
n 1350.56 Use n 1351
(200) 2
b.
(1.96) 2 (3750) 2
n 5402.25 Use n 5403
(100) 2
c.
d. Sampling 5,403 college graduates to obtain the $100 margin of error would be viewed
b. (1.96) 2 (11.35) 2
n 271.54 Use n 272
(1.35) 2
c. (2.576) 2 (11.35) 2
n 469.05 Use n 470
(1.35) 2
d. The sample size gets larger as the confidence level is increased. We would not
(272 – 192) to go from 90% to 95%. This may be reasonable. However, increasing
the sample size by 198 respondents (470 – 272) to go from 95% to 99% would
probably be viewed as too expensive and time consuming for the 4% gain in
confidence level.
(1.96) 2 (4) 2
n 61.4656
b. 12 Use n = 62
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in part.
Use n = 1537 to guarantee the margin of error will not exceed 160.
p (1 p ) .25(.75)
.0217
b. n 400
p (1 p )
c. p z .025
n
.70(.30)
b. .70 + 1.96 800
(1.96) 2 (.50)(.50)
n 1067.11 Use n 1068
(.03) 2
b. Margin of Error
p (1 p ) 0.57(0.43)
z.05 1.645 0.0257
n 1007
c. Confidence interval:
d. Margin of Error
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in part.
p (1 p ) 0.57(0.43)
z.025 1.96 0.0306
n 1007
p (1 p ) .23(1 .23)
.0298
b. n 200
p (1 p )
p z .025
n
.23 + 1.96(.0298)
b. Margin of error:
p (1 p ) .3813(1 .3813)
z.025 1.96 .0300
n 1007
p .0300
c.
p (1 p ) .5492(1 .5492)
z.025 1.96 .0307
n 1007
The confidence interval in part c has the smaller margin of error. This is because p is
farther away from 0.5 in part c (the point at which the standard error is the largest)
than it is in part d.
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in part.
38. a. p 81 / 142 .5704
1.96 2 (.5704)(.4296)
n 1046
(.03) 2
c.
2
z .025 p (1 p ) (1.96) 2 (.16)(1 .16)
39. a. n 573.68 Use 574
E2 (.03) 2
2
z.005 p (1 p ) (2.576) 2 (.16)(1 .16)
n 990.94
E2 (.03) 2
b. Use 991
p (1 p ) .52(1 .52)
40. Margin of error: z.025 1.96 .0346
n 800
p (1 p ) .417(1 .417)
b. Margin of error = z .025 1.96 .0234
n 1200
c. The margin of error is larger in part b. This is because the sample proportion is closer
to .50 in part b than in part a. This also leads to a larger interval estimate in part b.
p * (1 p *) .50(1 .50)
.0226
42. a. n 491
p * (1 p *) = 1.96(.0226) = .0442
z.025
n
2
z.025 p (1 p )
n
b. E2
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in part.
1.96 2 (.50)(1 .50)
September n 600.25 Use 601
.04 2
44. a. 𝑥̅ = 326.6674
1.9600(12,318.01/√10,001) = 241.4165.
45. a. 𝑥̅ = 60.3964
b. 𝑧 ⁄ 𝜎 ̅ = 2.576(33.4460/√3500) = 1.4999
d. The 99% confidence interval for the mean sick hours taken last year does not include
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in part.
the value for the mean sick hours taken two years ago. This suggests that the mean
sick hours taken changed from two years ago to last year.
b. 𝑧 ⁄ 𝜎 ̅ = 1.96(.0015) = .0029
b. 𝑧 ⁄ 𝜎 ̅ = 2.576(.0035) = .0090
d. The 99% confidence interval for the proportion of vehicles on U.S. roads does not
include the value for the proportion reported by ABC News. This suggests that the
proportion of vehicles on U.S. roads that are speeding differs from the proportion
reported by ABC News. However, the sample was taken at 6 P.M. EST on a recent
Tuesday afternoon. We must question whether the drivers on U.S. roads at this time
are representative of all U.S. drivers. If it doesn’t, then our sample suffers from
nonsampling error.
15
48. a. Margin of error: z.025 1.96 4.00
n 54
b. Yes. The lower limit for the population mean at Niagara Falls is $233.84, which is
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in part.
greater than $215.60.
1.990 (5 5 0 / 80 ) = 122
b. x ± margin of error
c. Because 92 million Americans were age 50 and older, the estimate of total
In dollars, we estimate that $172,316 million dollars are spent annually by Americans
d. We would expect the median to be less than the mean of $1,873. The few individuals
who spend much more than the average cause the mean to be larger than the median.
51. a. From the sample of 7,044 people who have never been married, the proportion who
have a healthy sleep duration is p 4437 / 7044 .63 . This is our point estimate of the
p (1 p ) .63(1 .63)
Margin of error = z.025 1.96 .0113
n 6044
b. From the sample of 7044 people who have never been married, the sample mean
number of hours of sleep is x 7.2257 . Thus, our point estimate of the population
mean number of hours of sleep for people who have never been married is 7.226.
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in part.
Using Excel, we find that the sample standard deviation is s .8211 .
Therefore,
s .8211
Margin of error = t.025 1.96 .0192
n 7044
c. From the sample, we see that 4,437 people had a healthy sleep duration. The mean
number of hours of sleep for those who had a healthy sleep duration is given by
52. a. Using Excel shows that the sample mean and sample standard deviation are x 773
and s 738.3835 .
b. Using Excel shows that the sample mean and sample standard deviation are x 187
and s 178.6207 .
c. There were 136 employees who had no prescription medication cost for the year:
d. The margin of error in part a is 60.73; the margin of error in part c is 14.69. The
margin of error in part a is larger because the sample standard deviation in part a is
larger. The sample size and confidence level are the same in both parts.
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in part.
53. a. Using Excel or JMP: x 27.63
The estimated mean BMI for adults in the U.S. is 27.63. This is less than the standard
established by the National Institute of Diabetes and Digestive and Kidney Diseases.
(2.33) 2 (1) 2
54. n 33.93 Use n 34
(0.4) 2
(1.96) 2 (8) 2
55. n 61.47 Use n 62
22
( 2.576) 2 (8) 2
n 106.17 Use n 107
22
. ) 2 (675) 2
(196
n 175.03 Use n 176
56. 100 2
p (1 p )
p 1.96
57. a. n
p (1 p ) (.5420)(.4580)
1.96 1.96 .0508
b. n 369
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in part.
c. .5420 + .0508 or .4912 to .5928
59. a. p = .78
b. p = .45
c. The margin of error is larger in part b for two reasons: (1) with p = .45, the estimate
of the standard error is larger than with p = .78, (2) And z .0 0 5 = 2.576 for 99%
60. a. With 165 out of 750 respondents rating the economy as good or excellent,
p= 165/750 = .22
p= 315/750 = .42
d. The confidence interval in part c is wider. This is because the sample proportion is
closer to .5 in part c.
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in part.
(1.96) 2 (.3)(.7)
n 2016.84 Use n 2017
(.02) 2
61. a.
b. p = 520/2017 = .2578
p (1 p )
p 1.96
c. n
(2.33) 2 (.70)(.30)
n 1266.74 Use n 1267
(.03) 2
62. a.
(2.33) 2 (.50)(.50)
n 1508.03 Use n 1509
(.03) 2
b.
.67(1 .67)
95% margin of error: 1.96 .0432
455
.83(1 .83)
95% margin of error: 1.96 .0345
455
.76(1 .76)
95% margin of error: 1.96 .0392
455
.78(1 .78)
95% margin of error: 1.96 .0380
455
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in part.
95% confidence interval: .78 .0381 or .7420 to .8180
b. The 18–24 age group has the largest margin of error, so the sample size must be large
enough to reduce the margin of error for the 18–24 age group to .05 or less. Using the
p * .67.
2
(1.96) (0.67)(0.33)
n 2
943.75 Use n 944
(0.03)
This is an increase of 489 people surveyed in each age group. The added cost of the
larger sample size would have to be taken into account before deciding whether the
smaller margin of error is worth the added cost of obtaining the data.
p (1 p )
b. p 1.96
1993
z 2 p (1 p )
n
c. E2
(1.96) 2 (.3101)(.6899)
z 8218.64 Use n 8219
(.01) 2
No, the sample appears unnecessarily large. The .02 margin of error reported in part b
65. a. 𝑥̅ = 68.5316
so 𝑡 ⁄ 𝑠 ̅ = 1.9600(12.5239/√15,717) = .1958
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in part.
c. 𝑥̅ 𝑡 ⁄ 𝑠 ̅ = 68.5316 ± .1958 = (68.3358, 68.7274)
66. a. 𝑥̅ = 34.9872
so 𝑡 ⁄ 𝑠 ̅ = 2.58(2.9246/√28,584) = .0446
d. The 99% confidence interval for the mean hours worked hours during the past week
does not include the value for the mean hours worked during the same week one year
ago. This suggests that the mean hours worked taken changed from last year to this
year.
b. 𝑧 ⁄ 𝜎 ̅ = 1.96(.0024) = .0047
The 95% confidence interval for the proportion of reports filed from Florida that dealt
with instances of fraud does not include the value for the proportion filed by the
entire country. This suggests that the proportion of instances of fraud in Florida
b. 𝑧 ⁄ 𝜎 ̅ = 1.64(.0025) = .0040
d. The 90% confidence interval for the proportion of California bridges that are deficient
does not include the value for the proportion of deficient bridges in the entire country.
This suggests that the proportion of California bridges that is deficient differs from
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in part.
Even though the IRC report indicates that California has a large proportion of the
nation’s deficient bridges, California has a large total number of bridges, so the
proportion of bridges in California that are deficient is smaller than the proportion of
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in part.