Chapter 08 Sampling Distributions and Estimation

True / False Questions

 

1. The expected value of an unbiased estimator is equal to the parameter whose value is
being estimated. 
 
TRUE

An unbiased estimator's expected value is the true parameter value.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain the desirable properties of estimators.
Topic: Estimators and Sampling Error
 

2. All estimators are biased since sampling errors always exist to some extent. 
 
FALSE

Some estimators are systematically biased, regardless of sampling error.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain the desirable properties of estimators.
Topic: Estimators and Sampling Error
 

3. An estimator must be unbiased if you are to use it for statistical analysis. 

 
FALSE

An estimator can be useful as long as its bias is known.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
 Learning Objective: 08-02 Explain the desirable properties of estimators.
Topic: Estimators and Sampling Error
 

4. The efficiency of an estimator depends on the variance of the estimator's sampling

distribution. 
 
TRUE

Efficiency is measured by the variance of the estimator's sampling distribution.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain the desirable properties of estimators.
Topic: Estimators and Sampling Error
 

5. In comparing estimators, the more efficient estimator will have a smaller standard
error. 
 
TRUE

Efficiency is measured by the variance of the estimator's sampling distribution.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain the desirable properties of estimators.
Topic: Estimators and Sampling Error
 

6. A 90 percent confidence interval will be wider than a 95 percent confidence interval,

ceteris paribus. 
 
FALSE

We can make a more precise statement about the true parameter if we are willing to
sacrifice some confidence. For example, z.025 = 1.960 (for 95 percent confidence) gives
a wider interval than z.05 = 1.645 (for 90 percent confidence). The proffered statement
would also hold true for the Student's t distribution.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 
7. In constructing a confidence interval for the mean, the z distribution provides a result
nearly identical to the t distribution when n is large. 
 
TRUE

Student's t approaches z as sample size increases.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 

8. The Central Limit Theorem says that, if n exceeds 30, the population will be normal. 
 
FALSE

The population cannot be changed.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Mean and the Central Limit Theorem
 

9. The Central Limit Theorem says that a histogram of the sample means will have a bell
shape, even if the population is skewed and the sample is small. 
 
FALSE

A large sample size may be required if the population is skewed.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Mean and the Central Limit Theorem
 
10. The confidence level refers to the procedure used to construct the confidence interval,
rather than to the particular confidence interval we have constructed. 
 
TRUE

A particular interval either does or does not contain the true parameter.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 

11. The Central Limit Theorem guarantees an approximately normal sampling distribution
when n is sufficiently large. 
 
TRUE

Yes, although a large sample size may be required if the population is skewed.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Mean and the Central Limit Theorem
 

12. A sample of size 5 shows a mean of 45.2 and a sample standard deviation of 6.4. The
standard error of the sample mean is approximately 2.86. 
 
TRUE

The standard error is the standard deviation divided by the square root of the sample
size.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 08-04 Explain how sample size affects the standard error.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 
13. As n increases, the width of the confidence interval will decrease, ceteris paribus. 
 
TRUE

The standard error is the standard deviation divided by the square root of the sample
size.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 

14. As n increases, the standard error decreases. 

 
TRUE

The standard error is the standard deviation divided by the square root of the sample
size.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-04 Explain how sample size affects the standard error.
Topic: Sample Mean and the Central Limit Theorem
 

15. A higher confidence level leads to a narrower confidence interval, ceteris paribus. 
 
FALSE

Higher confidence requires more uncertainty (a wider interval). For example, z.025 =
1.960 (for 95 percent confidence) gives a wider interval than z.05 = 1.645 (for 90
percent confidence). The proffered statement would also hold true for the Student's t
distribution.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 
16. When the sample standard deviation is used to construct a confidence interval for the
mean, we would use the Student's t distribution instead of the normal distribution. 
 
TRUE

We should use t when the population variance is unknown.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 

17. As long as the sample is more than one item, the standard error of the sample mean
will be smaller than the standard deviation of the population. 
 
TRUE

The standard error is the standard deviation divided by the square root of the sample
size.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-04 Explain how sample size affects the standard error.
Topic: Sample Mean and the Central Limit Theorem
 

18. For a sample size of 20, a 95 percent confidence interval using the t distribution would
be wider than one constructed using the z distribution. 
 
TRUE

Student's t is always larger than z for the same level of confidence.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 
19. In constructing a confidence interval for a mean, the width of the interval is dependent
on the sample size, the confidence level, and the population standard deviation. 
 
TRUE

The confidence interval depends on all of these.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 

20. In constructing confidence intervals, it is conservative to use the z distribution when n

≥ 30. 
 
FALSE

While t and z may be similar for large samples, it is more conservative to use t.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 

21. The Central Limit Theorem can be applied to the sample proportion. 
 
TRUE

We are sampling a Bernoulli population, but the CLT still applies.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
22. The distribution of the sample proportion p = x/n is normal when n ≥ 30. 
 
FALSE

We want at least 10 successes and 10 failures to assume that p is normally distributed.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

23. The standard deviation of the sample proportion p = x/n increases as n increases. 
 
FALSE

The proffered statement is backwards because n is in the denominator of [p(1 - p)/n]1/2.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

24. A 95 percent confidence interval constructed around p will be wider than a 90 percent
confidence interval. 
 
TRUE

Higher confidence requires more uncertainty (a wider interval).

 
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
25. The sample proportion is always the midpoint of a confidence interval for the
population proportion. 
 
TRUE

The interval is p ± z[p(1 - p)/n]1/2.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

26. The standard error of the sample proportion is largest when π = .50. 
 
TRUE

The value of [π(1 - π)/n]1/2 is smaller for any value less than π = .50.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

27. The standard error of the sample proportion does not depend on the confidence level. 
 
TRUE

The standard error of p is [π(1 - π)/n]1/2.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
28. To narrow the confidence interval for π, we can either increase n or decrease the level
of confidence. 
 
TRUE

The interval is p ± z[p(1 - p)/n]1/2.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

29. Ceteris paribus, the narrowest confidence interval for π is achieved when p = .50. 
 
FALSE

The value of [p(1 - p)/n]1/2 is smaller for any value less than π = .50.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

30. The statistic p = x/n may be assumed normally distributed when np ≥ 10 and n(1 - p) ≥
10. 
 
TRUE

We want at least 10 successes and 10 failures in the sample to assume normality of p.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
31. The Student's t distribution is always symmetric and bell-shaped, but its tails lie above
the normal. 
 
TRUE

Student's t resembles a normal, but its PDF is above the normal PDF in the tails.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 

32. The confidence interval half-width when π = .50 is called the margin of error. 
 
TRUE

Pollsters use this definition.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

33. Based on the Rule of Three, if no events occur in n independent trials we can set the
upper 95 percent confidence bound at 3/n. 
 
TRUE

We need a special rule because when p = 0 we can't apply the usual formula p ± z[p(1 -
p)/n]1/2.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
34. The sample standard deviation s is halfway between the lower and upper confidence
limits for the population σ (i.e., the confidence interval is symmetric around s). 
 
FALSE

The chi-square distribution is not symmetric.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-10 Construct a confidence interval for a variance (optional).
Topic: Confidence Interval for a Population Variance, σ2 (Optional)
 

35. In a sample size calculation, if the confidence level decreases, the size of the sample
needed will increase. 
 
FALSE

Reduced confidence allows a smaller sample.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Mean
 

36. To calculate the sample size needed for a survey to estimate a proportion, the
population standard deviation σ must be known. 
 
FALSE

For a proportion, the sample size formula requires π not σ.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 
37. Assuming that π = .50 is a quick and conservative approach to use in a sample size
calculation for a proportion. 
 
TRUE

Assuming that π = .50 is quick and safe (but may give a larger sample than is needed).

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 

38. To estimate the required sample size for a proportion, one method is to take a small
pilot sample to estimate π and then apply the sample size formula. 
 
TRUE

This is a common method, but assuming that π = .50 is quicker and safer.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 

39. To estimate π, you typically need a sample size equal to at least 5 percent of your
population. 
 
FALSE

The sample size n bears no necessary relation to N.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 
40. To estimate a proportion with a 4 percent margin of error and a 95 percent confidence
level, the required sample size is over 800. 
 
FALSE

n = (z/E)2(π)(1 - π) = (1.96/.04)2(.50)(1 - .50) = 600.25.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 

41. Approximately 95 percent of the population X values will lie within the 95 percent
confidence interval for the mean. 
 
FALSE

The confidence interval is for the true mean, not for individual X values.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 

42. A 99 percent confidence interval has more confidence but less precision than a 95
percent confidence interval. 
 
TRUE

The higher confidence level widens the interval so it is less precise.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 
43. Sampling variation is not controllable by the statistician. 
 
TRUE

Sampling variation is inevitable.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-01 Define sampling error; parameter; and estimator.
Topic: Sampling Variation
 

44. The sample mean is not a random variable when the population parameters are
known. 
 
FALSE

The sample mean is a random variable regardless of what we know about the
population.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-01 Define sampling error; parameter; and estimator.
Topic: Sampling Variation
 

45. The finite population correction factor (FPCF) can be ignored if n = 7 and N = 700. 
 
TRUE

The FPCF has a negligible effect when the sample is less than 5 percent of the
population.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-08 Construct confidence intervals for finite populations.
Topic: Estimating from Finite Populations
 
46. In constructing a confidence interval, the finite population correction factor (FPCF)
can be ignored if samples of 12 items are drawn from a population of 300 items. 
 
TRUE

The FPCF has a negligible effect when the sample is less than 5 percent of the
population.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-08 Construct confidence intervals for finite populations.
Topic: Estimating from Finite Populations
 

47. The finite population correction factor (FPCF) can be ignored when the sample size is
large relative to the population size. 
 
TRUE

The FPCF has a negligible effect when n is small relative to N.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-08 Construct confidence intervals for finite populations.
Topic: Estimating from Finite Populations
 
 

Multiple Choice Questions

 
48. A sampling distribution describes the distribution of: 
 

A.  a parameter.
B.  a statistic.
C.  either a parameter or a statistic.
D.  neither a parameter nor a statistic.

A statistic has a sampling distribution.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Mean and the Central Limit Theorem
 

49. As the sample size increases, the standard error of the mean: 
 

A.  increases.
B.  decreases.
C.  may increase or decrease.

The standard error of the mean is σ/(n)1/2.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Mean and the Central Limit Theorem
 
50. Which statement is most nearly correct, other things being equal? 
 

A.  Doubling the sample size will cut the standard error of the mean in half.
B.  The standard error of the mean depends on the population size.
C.  Quadrupling the sample size roughly halves the standard error of the mean.
D.  The standard error of the mean depends on the confidence level.

The standard error of the mean is σ/(n)1/2 so replacing n by 4n would cut the SEM in
half.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-04 Explain how sample size affects the standard error.
Topic: Sample Mean and the Central Limit Theorem
 

51. The width of a confidence interval for μ is not affected by: 

 

A.  the sample size.

B.  the confidence level.
C.  the standard deviation.
D.  the sample mean.

The mean is not used in calculating the width of the confidence interval zσ/(n)1/2.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 
52. The Central Limit Theorem (CLT) implies that: 
 

A.  the population will be approximately normal if n ≥ 30.

B.  repeated samples must be taken to obtain normality.
C.  the distribution of the mean is approximately normal for large n.
D.  the mean follows the same distribution as the population.

The sampling distribution of the mean is asymptotically normal for any population.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Mean and the Central Limit Theorem
 

53. The owner of Limp Pines Resort wanted to know the average age of its clients. A
random sample of 25 tourists is taken. It shows a mean age of 46 years with a standard
deviation of 5 years. The width of a 98 percent CI for the true mean client age is
approximately: 
 

A.  ± 1.711 years.

B.  ± 2.326 years.
C.  ± 2.492 years.
D.  ± 2.797 years.

The width is ts/(n)1/2 = (2.492)(5)/(25)1/2 = 2.492.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 
54. In constructing a confidence interval for a mean with unknown variance with a sample
of 25 items, Bob used z instead of t. "Well, at least my interval will be wider than
necessary, so it was a conservative error," said he. Is Bob's statement correct? 
 

A.  Yes.
B.  No.
C.  It depends on μ.

z is always smaller than t (ceteris paribus) so the interval would be narrower than is
justified.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 

55. A random sample of 16 ATM transactions at the Last National Bank of Flat Rock
revealed a mean transaction time of 2.8 minutes with a standard deviation of 1.2
minutes. The width (in minutes) of the 95 percent confidence interval for the true
mean transaction time is: 
 

A.  ± 0.639
B.  ± 0.588
C.  ± 0.300
D.  ± 2.131

The width is ts/(n)1/2 = (2.131)(1.2)/(16)1/2 = 0.639.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 
56. We could narrow a 95 percent confidence interval by: 
 

A.  using 99 percent confidence.

B.  using a larger sample.
C.  raising the standard error.

A larger sample would narrow the interval width zσ/(n)1/2.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 

57. The owner of Torpid Oaks B&B wanted to know the average distance its guests had
traveled. A random sample of 16 guests showed a mean distance of 85 miles with a
standard deviation of 32 miles. The 90 percent confidence interval (in miles) for the
mean is approximately: 
 

A.  (71.0, 99.0)

B.  (71.8, 98.2)
C.  (74.3, 95.7)
D.  (68.7, 103.2)

The interval is 85 ± ts/(n)1/2 or 85 ± (1.753)(32)/(16)1/2 with d.f = 15 (don't use z).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 
58. A highway inspector needs an estimate of the mean weight of trucks crossing a bridge
on the interstate highway system. She selects a random sample of 49 trucks and finds a
mean of 15.8 tons with a sample standard deviation of 3.85 tons. The 90 percent
confidence interval for the population mean is: 
 

A.  14.72 to 16.88 tons.

B.  14.90 to 16.70 tons.
C.  14.69 to 16.91 tons.
D.  14.88 to 16.72 tons.

The interval is 15.8 ± ts/(n)1/2 or 15.8 ± (1.677)(3.85)/(49)1/2 using d.f. = 48 (don't use
z).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 

59. To determine a 72 percent level of confidence for a proportion, the value of z is

approximately: 
 

A.  ± 1.65
B.  ± 0.77
C.  ± 1.08
D.  ± 1.55

Look up the z value that puts 14 percent in each tail.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
60. To estimate the average annual expenses of students on books and class materials a
sample of size 36 is taken. The sample mean is $850 and the sample standard deviation
is $54. A 99 percent confidence interval for the population mean is: 
 

A.  $823.72 to $876.28

B.  $832.36 to $867.64
C.  $826.82 to $873.18
D.  $825.48 to $874.52

The interval is 850 ± ts/(n)1/2 or 850 ± (2.724)(54)/(36)1/2 with d.f = 35 (don't use z).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 

61. In constructing a 95 percent confidence interval, if you increase n to 4n, the width of
your confidence interval will (assuming other things remain the same) be: 
 

A.  about 25 percent of its former width.

B.  about two times wider.
C.  about 50 percent of its former width.
D.  about four times wider.

The standard error of the mean is σ/(n)1/2 so replacing n by 4n would cut the SEM in
half.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-04 Explain how sample size affects the standard error.
Topic: Confidence Interval for a Mean (μ) with Known σ
 
62. Which of the following is not a characteristic of the t distribution? 
 

A.  It is a continuous distribution.

B.  It has a mean of 0.
C.  It is a symmetric distribution.
D.  It approaches z as degrees of freedom decrease.

It approaches z as degrees of freedom increase.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 

63. Which statement is incorrect? Explain. 

 

A.  If p = .50 and n = 100, the standard error of the sample proportion is .05.
B.  In a sample size calculation for estimating π, it is conservative to assume π = .50.
C.  If n = 250 and p = .06, we cannot assume normality in a confidence interval for π.

Normality of p may be assumed because np = 15 and n(1 - p) = 235.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
64. What is the approximate width of a 90 percent confidence interval for the true
population proportion if there are 12 successes in a sample of 25? 
 

A.  ± .196
B.  ± .164
C.  ± .480
D.  ± .206

The interval width is ± z[p(1 - p)/n]1/2 = ± (1.645)[(.48)(.52)/25]1/2.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

65. A poll showed that 48 out of 120 randomly chosen graduates of California medical
schools last year intended to specialize in family practice. What is the width of a 90
percent confidence interval for the proportion that plan to specialize in family
practice? 
 

A.  ± .0447
B.  ± .0736
C.  ± .0876
D.  ± .0894

The interval width is ± z[p(1 - p)/n]1/2 = ± (1.645)[(.40)(.60)/120]1/2.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
66. What is the approximate width of an 80 percent confidence interval for the true
population proportion if there are 12 successes in a sample of 80? 
 

A.  ± .078
B.  ± .066
C.  ± .051
D.  ± .094

The interval width is ± z[p(1 - p)/n]1/2 = ± (1.282)[(.15)(.85)/80]1/2.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

67. A random sample of 160 commercial customers of PayMor Lumber revealed that 32
had paid their accounts within a month of billing. The 95 percent confidence interval
for the true proportion of customers who pay within a month would be: 
 

A.  0.148 to 0.252

B.  0.138 to 0.262
C.  0.144 to 0.256
D.  0.153 to 0.247

The interval is p ± z[p(1 - p)/n]1/2 = .20 ± (1.960)[(.20)(.80)/160]1/2.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
68. A random sample of 160 commercial customers of PayMor Lumber revealed that 32
had paid their accounts within a month of billing. Can normality be assumed for the
sample proportion? 
 

A.  Yes.
B.  No.
C.  Need more information to say.

Yes, because there were at least 10 "successes" and at least 10 "failures" in the sample.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

69. The conservative sample size required for a 95 percent confidence interval for π with
an error of ± 0.04 is: 
 

A.  271.
B.  423.
C.  385.
D.  601.

n = (z/E)2(π)(1 - π) = (1.96/.04)2(.50)(1 - .50) = 600.25 (round up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 
70. Last week, 108 cars received parking violations in the main university parking lot. Of
these, 27 had unpaid parking tickets from a previous violation. Assuming that last
week was a random sample of all parking violators, find the 95 percent confidence
interval for the percentage of parking violators that have prior unpaid parking tickets. 
 

A.  18.1 to 31.9 percent.

B.  16.8 to 33.2 percent.
C.  15.3 to 34.7 percent.
D.  19.5 to 30.5 percent.

The interval is p ± z[p(1 - p)/n]1/2 = .25 ± (1.960)[(.25)(.75)/108]1/2.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 

71. In a random sample of 810 women employees, it is found that 81 would prefer
working for a female boss. The width of the 95 percent confidence interval for the
proportion of women who prefer a female boss is: 
 

A.  ± .0288
B.  ± .0105
C.  ± .0207
D.  ± .0196

The width is ± z[p(1 - p)/n]1/2 or ± (1.960)[(.10)(.90)/810]1/2 or ± .0207.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
72. Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs and
would like to know what proportion of the positive lab tests for prostate cancer are
actually proven correct through subsequent biopsy. JBGHI demands a sample large
enough to ensure an error of ± 2 percent with 90 percent confidence. What is the
necessary sample size? 
 

A.  4,148
B.  2,401
C.  1,692
D.  1,604

n = (z/E)2(π)(1 - π) = (1.645/.02)2(.50)(1 - .50) = 1691.3 (round up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 

73. A university wants to estimate the average distance that commuter students travel to
get to class with an error of ± 3 miles and 90 percent confidence. What sample size
would be needed, assuming that travel distances are normally distributed with a range
of X = 0 to X = 50 miles, using the Empirical Rule μ ± 3σ to estimate σ. 
 

A.  About 28 students

B.  About 47 students
C.  About 30 students
D.  About 21 students

Using σ = (50 - 0)/6 = 8.333, we get n = [zσ/E]2 = [(1.645)(8.333)/3]2 = 20.9 (round

up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Mean
 
74. A financial institution wishes to estimate the mean balances owed by its credit card
customers. The population standard deviation is $300. If a 99 percent confidence
interval is used and an interval of ± $75 is desired, how many cardholders should be
sampled? 
 

A.  3382
B.  629
C.  87
D.  107

n = [zσ/E]2 = [(2.576)(300)/75]2 = 106.2 (round up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Mean
 

75. A company wants to estimate the time its trucks take to drive from city A to city B.
The standard deviation is known to be 12 minutes. What sample size is required in
order that error will not exceed ± 2 minutes, with 95 percent confidence? 
 

A.  12 observations
B.  139 observations
C.  36 observations
D.  129 observations

n = [zσ/E]2 = [(1.960)(12)/2]2 = 138.3 (round up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Mean
 
76. In a large lecture class, the professor announced that the scores on a recent exam were
normally distributed with a range from 51 to 87. Using the Empirical Rule μ ± 3σ to
estimate σ, how many students would you need to sample to estimate the true mean
score for the class with 90 percent confidence and an error of ± 2? 
 

A.  About 17 students

B.  About 35 students
C.  About 188 students
D.  About 25 students

Using σ = (87 - 51)/6 = 6, we get n = [zσ/E]2 = [(1.645)(6)/2]2 = 24.35 (round up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Mean
 

77. Using the conventional polling definition, find the margin of error for a customer
satisfaction survey of 225 customers who have recently dined at Applebee's. 
 

A.  ± 5.0 percent

B.  ± 4.2 percent
C.  ± 7.1 percent
D.  ± 6.5 percent

The margin of error is ± z[π(1 - π)/n]1/2 or ± (1.960)[(.50)(.50)/225]1/2 or ± .065.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 
78. A marketing firm is asked to estimate the percent of existing customers who would
purchase a "digital upgrade" to their basic cable TV service. The firm wants 99 percent
confidence and an error of ± 5 percent. What is the required sample size (to the next
higher integer)? 
 

A.  664
B.  625
C.  801
D.  957

n = (z/E)2(π)(1 - π) = (2.576/.05)2(.50)(1 - .50) = 663.6 (round up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 

79. An airport traffic analyst wants to estimate the proportion of daily takeoffs by small
business jets (as opposed to commercial passenger jets or other aircraft) with an error
of ± 4 percent with 90 percent confidence. What sample size should the analyst use? 
 

A.  385
B.  601
C.  410
D.  423

n = (z/E)2(π)(1 - π) = (1.645/.04)2(.50)(1 - .50) = 422.8 (round up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 
80. Ersatz Beneficial Insurance wants to estimate the cost of damage to cars due to
accidents. The standard deviation of the cost is known to be $200. They want to
estimate the mean cost using a 95 percent confidence interval within ± $10. What is
the minimum sample size n? 
 

A.  1083
B.  4002
C.  1537
D.  2301

n = [zσ/E]2 = [(1.960)(200)/10]2 = 1536.6 (round up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Mean
 

81. Professor York randomly surveyed 240 students at Oxnard University and found that
150 of the students surveyed watch more than 10 hours of television weekly. Develop
a 95 percent confidence interval to estimate the true proportion of students who watch
more than 10 hours of television each week. The confidence interval is: 
 

A.  .533 to .717

B.  .564 to .686
C.  .552 to .698
D.  .551 to .739

The interval is p ± z[p(1 - p)/n]1/2 = .625 ± (1.960)[(.625)(.375)/240]1/2.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
82. Professor York randomly surveyed 240 students at Oxnard University and found that
150 of the students surveyed watch more than 10 hours of television weekly. How
many additional students would Professor York have to sample to estimate the
proportion of all Oxnard University students who watch more than 10 hours of
television each week within ± 3 percent with 99 percent confidence? 
 

A.  761
B.  1001
C.  1489
D.  1728

Using p = .625 we get n = (z/E)2(π)(1 - π) = (2.576/.03)2(.625)(.375) = 1728.06 (round

up).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 

83. The sample proportion is in the middle of the confidence interval for the population
proportion: 
 

A.  in any sample.

B.  only if the samples are large.
C.  only if π is not too far from .50.

The interval is p ± z[p(1 - p)/n]1/2.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
84. For a sample of size 16, the critical values of chi-square for a 95 percent confidence
interval for the population variance are: 
 

A.  6.262, 27.49

B.  6.908, 28.85
C.  5.629, 26.12
D.  7.261, 25.00

Using d.f. = n - 1 = 15, we get χ2L = 6.262 and χ2U = 27.49 from Appendix E.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-10 Construct a confidence interval for a variance (optional).
Topic: Confidence Interval for a Population Variance, σ2 (Optional)
 

85. For a sample of size 11, the critical values of chi-square for a 90 percent confidence
interval for the population variance are: 
 

A.  6.262, 27.49

B.  6.908, 28.85
C.  3.940, 18.31
D.  3.247, 20.48

d.f. = n - 1 = 10, we get χ2L = 3.940 and χ2U = 18.31 from Appendix E.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-10 Construct a confidence interval for a variance (optional).
Topic: Confidence Interval for a Population Variance, σ2 (Optional)
 
86. For a sample of size 18, the critical values of chi-square for a 99 percent confidence
interval for the population variance are: 
 

A.  6.262, 27.49

B.  5.697, 35.72
C.  5.629, 26.12
D.  7.261, 25.00

d.f. = n - 1 = 17, we get χ2L = 5.697 and χ2U = 35.72 from Appendix E.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-10 Construct a confidence interval for a variance (optional).
Topic: Confidence Interval for a Population Variance, σ2 (Optional)
 

87. Which of the following statements is most nearly correct, other things being equal? 
 

A.  Using Student's t instead of z makes a confidence interval narrower.

B.  The table values of z and t are about the same when the mean is large.
C.  For a given confidence level, the z value is always smaller then the t value.
D.  Student's t is rarely used because it is more conservative to use z.

As n increases, t approaches z, but t is always larger than z.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-04 Explain how sample size affects the standard error.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 
88. The Central Limit Theorem (CLT): 
 

A.  applies only to samples from normal populations.

B.  applies to any population.
C.  applies best to populations that are skewed.
D.  applies only when μ and σ are known.

The appeal of the CLT is that is applies to populations of any shape.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Mean and the Central Limit Theorem
 

89. In which situation may the sample proportion safely be assumed to follow a normal
distribution? 
 

A.  12 successes in a sample of 72 items

B.  8 successes in a sample of 40 items
C.  6 successes in a sample of 200 items
D.  4 successes in a sample of 500 items

We prefer at least 10 "successes" and at least 10 "failures" to assume that p is normal.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Confidence Interval for a Proportion (π)
 
90. In which situation may the sample proportion safely be assumed to follow a normal
distribution? 
 

A.  n = 100, π = .06

B.  n = 250, π = .02
C.  n = 30, π = .50
D.  n = 500, π = .01

We want nπ ≥ 10 and n(1 - π) ≥ 10 to assume that p is normal.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Confidence Interval for a Proportion (π)
 

91. If σ = 12, find the sample size to estimate the mean with an error of ± 4 and 95 percent
confidence (rounded to the next higher integer). 
 

A.  75
B.  35
C.  58
D.  113

n = [zσ/E]2 = [(1.960)(12)/4]2 = 34.6 (round up).

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Size Determination for a Mean
 
92. If σ = 25, find the sample size to estimate the mean with an error of ±3 and 90 percent
confidence (rounded to the next higher integer). 
 

A.  426
B.  512
C.  267
D.  188

n = [zσ/E]2 = [(1.645)(25)/3]2 = 187.9 (round up).

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-03 State the Central Limit Theorem for a mean.
Topic: Sample Size Determination for a Mean
 

93. Sampling error can be avoided: 

 

A.  by using an unbiased estimator.

B.  by eliminating nonresponses (e.g., older people).
C.  by no method under the statistician's control.
D.  either by using an unbiased estimator or by eliminating nonresponse.

Sampling error occurs in any random sample used to estimate an unknown parameter.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Explain the desirable properties of estimators.
Topic: Estimators and Sampling Error
 
94. A consistent estimator for the mean: 
 

A.  converges on the true parameter μ as the variance increases.

B.  converges on the true parameter μ as the sample size increases.
C.  consistently follows a normal distribution.
D.  is impossible to obtain using real sample data.

The variance becomes smaller and the estimator approaches the parameter as n
increases.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-02 Explain the desirable properties of estimators.
Topic: Estimators and Sampling Error
 

95. Concerning confidence intervals, which statement is most nearly correct? 

 

A.  We should use z instead of t when n is large.

B.  We use the Student's t distribution when σ is unknown.
C.  We use the Student's t distribution to narrow the confidence interval.

Student's t distribution widens the confidence interval when σ is unknown.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 
96. The standard error of the mean decreases when: 
 

A.  the sample size decreases.

B.  the standard deviation increases.
C.  the standard deviation decreases or n increases.
D.  the population size decreases.

The standard error of the mean σ/(n1/2) depends on n and σ.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-04 Explain how sample size affects the standard error.
Topic: Confidence Interval for a Mean (μ) with Known σ
 

97. For a given sample size, the higher the confidence level, the: 
 

A.  more accurate the point estimate.

B.  smaller the standard error.
C.  smaller the interval width.
D.  greater the interval width.

To have more confidence, we must widen the interval. For example, z.025 = 1.960 (for
95 percent confidence) gives a wider interval than z.05 = 1.645 (for 90 percent
confidence). The proffered statement would also be true for the Student's t distribution.

 
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 
98. A sample is taken and a confidence interval is constructed for the mean of the
distribution. At the center of the interval is always which value? 
 

A.  The sample mean

B.  The population mean μ
C.  Neither nor μ since with a sample anything can happen
D.  Both and μ as long as there are not too many outliers

The confidence interval for the mean is symmetric around the sample mean.

 
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-05 Construct a 90; 95; or 99 percent confidence interval for μ.
Topic: Confidence Interval for a Mean (μ) with Known σ
 

99. If a normal population has parameters μ = 40 and σ = 8, then for a sample size n = 4: 
 

A.  the standard error of the sample mean is approximately 2.

B.  the standard error of the sample mean is approximately 4.
C.  the standard error of the sample mean is approximately 8.
D.  the standard error of the sample mean is approximately 10.

The standard error is σ/(n1/2) = (8)/(41/2) = 4.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 08-04 Explain how sample size affects the standard error.
Topic: Confidence Interval for a Mean (μ) with Known σ
 
 

Short Answer Questions

 
100. On the basis of a survey of 545 television viewers, a statistician has constructed a
confidence interval and estimated that the proportion of people who watched the
season premiere of Glee is between .16 and .24. What level of confidence did the
statistician use in constructing this interval? Explain carefully, showing all steps in
your reasoning. 
 

We solve to get z = 2.33, which corresponds approximately to a 98 percent confidence

level.

Feedback: The confidence interval is

   

and the interval half-width is .04 so we set

   

and p = .20 (the midpoint of the interval) to solve for

   

= 2.33 which corresponds approximately to a 98 percent confidence level.

 
AACSB: Analytic
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
101. Read the news story below. Using the 95 percent confidence level, what sample size
would be needed to estimate the true proportion of stores selling cigarettes to minors
with an error of ± 3 percent? Explain carefully, showing all steps in your reasoning.

    
 

   

=   

= 813.5, or 814 (rounded up), using the sample proportion because it is available
(instead of assuming that π = .50).

Feedback:    

=   

= 813.5, or 814 (rounded up). We use the sample proportion because it is available,
instead of assuming that π = .50.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 
102. In a survey, 858 out of 2600 homeowners said they expected good economic
conditions to continue for the next 12 months. Construct a 95 percent confidence
interval for "good times" in the next 12 months. 
 

The confidence interval is .3119 < π < .3481.

Feedback:    

or    

or    

or .33 ± .0181, so the confidence interval is .3119 < π < .3481.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-07 Construct a 90; 95; or 99 percent confidence interval for π.
Topic: Confidence Interval for a Proportion (π)
 
103. Fulsome University has 16,059 students. In a sample of 200 students, 12 were born
outside the United States. Construct a 95 percent confidence interval for the true
population proportion. How large a sample is needed to estimate the true proportion of
Fulsome students who were born outside the United States with an error of ± 2.5
percent and 95 percent confidence? Show your work and explain fully. 
 

We have sampled less than 5 percent of the population, so the FPCF is unnecessary
(i.e., we can ignore the population size. The 95 percent confidence interval is p ±
z.025[p(1 - p)/n]1/2 = .06 ± (1.960)[(.06)(.94)/200]1/2 or .06 ± .032914 or .027 < π < .093.
To reduce the error to .025, the required sample size is

   

or    

= 346.7, or n = 347 (rounded up). We can use the sample value for p so we do not need
to assume that π = .50.

Feedback: The 95 percent confidence interval is p ± z.025[p(1 - p)/n]1/2 = .06 ± (1.960)

[(.06)(.94)/200]1/2 or .06 ± .032914 or .027 < π < .093. To reduce the error to .025, the
required sample size is

   

or    

= 346.7, or n = 347 (rounded up). We have a sample value for p so we do not need to
assume that π = .50. If you did assume π = .50, you would get an unnecessarily large
required sample since the preliminary sample indicates that π is not .50. The sample
does not exceed 5 percent of the population size, so the finite population correction
would make little difference.

 
AACSB: Analytic
 Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Proportion
 

104. List differences and similarities between Student's t and the standard normal
distribution. 
 

Both are bell-shaped and symmetric, but the Student's t distribution lies below the
standard normal in the middle, and its tails are above the standard normal.

Feedback: They are both bell-shaped and symmetric. However, the Student's t
distribution lies below the standard normal in the middle, and its tails are above the
standard normal ("thicker" or "heavier" tails). Therefore, the value of Student's t for a
given tail area will always be greater than the corresponding z value. We use the
Student's t whenever the standard deviation is estimated from a sample, which is to
say, most of the time.

 
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 08-06 Know when to use Student's t instead of z to estimate μ.
Topic: Confidence Interval for a Mean (μ) with Unknown σ
 
105. Why does σ pose a problem for sample size calculation for a mean? How can σ be
approximated when it is unknown? 
 

Truehe formula for the sample size to estimate μ requires knowing σ. But because μ is
unknown (we are trying to estimate it), then probably σ is unknown as well. There are
several ways to estimate σ: (1) take a small preliminary sample and calculate the
sample standard deviation s as an estimate of σ; or (2) if the range is known, we can
estimate σ = Range/6 because from the Empirical Rule μ ± 3σ contains almost all of
the data in a normal distribution (a sometimes doubtful assumption if there are outliers
or a skewed population); or (3) we might have some value for σ from prior experience
(e.g., a previous sample or historical data).

Feedback: The formula for the sample size to estimate μ requires knowing σ. But
because μ is unknown (we are trying to estimate it), then probably σ is unknown as
well. There are several ways to estimate σ: (1) take a small preliminary sample and
calculate the sample standard deviation s as an estimate of σ; or (2) if the range is
known, we can estimate σ = Range/6 because from the Empirical Rule μ ± 3σ contains
almost all of the data in a normal distribution (a sometimes doubtful assumption if
there are outliers or a skewed population); or (3) we might have some value for σ from
prior experience (e.g., a previous sample or historical data).

 
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-09 Calculate sample size to estimate a mean or proportion.
Topic: Sample Size Determination for a Mean