Ariane Isabel V.

Dela Cruz May 25, 2022

BSBA-HRM 2-1 Prof: Labaclado

A manufacturer of computer paper has a production process that operates continuously

throughout an entire production shift. The paper is expected to have a mean length of 11 inches
and the standard deviation of the length is 0.02 inch. At periodic intervals, a sample is selected to
determine whether the mean paper length is still equal to 11 inches or whether something has
gone wrong in the production process to change the length of the paper produced. A random
sample of 100 sheets was selected and the mean paper length is 10.998 inches. Construct a 95%
confidence interval estimate for the population mean paper length.

Given:
n = 100
µ = 11
σ = 0.02 = 10.998
100(1 - α) = 95%

Required: 95% C.I. estimate

Solution:
10.998 – 1.96 (.02/√100) ≤ µ ≤ 10.998 + 1.96 (.02/√100)
10.998 – 1.96 (0.002) ≤ µ ≤ 10.998 + 1.96 (0.002)
10.998 – 0.0039 ≤ µ ≤ 10.998 + 0.0039

Answer:
10.994 ≤ µ ≤ 11.002

Interpretation:
Thus, with 95% confidence, it is concluded that the population mean is between 10.994 and
11.002 inches. Since the interval includes 11, the value indicating that the production process is
working properly, there is no reason to believe that anything is wrong with the production
process.
You want to rent an unfurnished one-bedroom apartment in Durham, NC next year. The mean
monthly rent for a random sample of 60 apartments advertised on Craig’s List (a website that
lists apartments for rent) is $1000. Assume a population standard deviation of $200. Construct a
95% confidence interval.

Given:
X̄ = 1000
Z = 1.96 / 95%
σ = 200
n = 60

Solution:
1000 – 1.96 (200/√60) ≤ µ ≤ 1000 + 1.96 (200/√60)
1000 – 1.96 (25.8198) ≤ µ ≤ 1000 + 1.96 (25.8198)
1000 – 50.606 ≤ µ ≤ 1000 + 50.606

ANSWER

= 949.39 ≤ µ ≤ 1050.61

Interpretation:
We are 95% confident that the interval $949.39, $1050.61 covers the true mean monthly rent of
Durham apartments listed on Craig’s List.