BUSINESS RESEARCH

06 QUIZ
 1. Given a normal distribution with 𝜇 = 100 and 𝜎 = 12, a sample of 𝑛 = 36 is drawn at
random.

a. What is the probability that the sample mean will fall above 99?

Answer: (Standard error of the mean)

𝜎 12 12
𝜎𝑀

𝑀 − 𝑀 99 − 100 −1
𝜁= = = = −0.5
𝜎𝑀 2 2
𝑝 = (𝑀 > 99) = 0.2912

Significance level 0.05 or 5%

b. What proportion of the sample means will have a value less than 95?

Answer: 𝜁=𝑀 −𝑀 = 95−100 = = −𝟐. 𝟓

𝜎𝑀 2

𝑝 = (𝑀 < 95) = 𝟎. 𝟎𝟎𝟓𝟒

2. The Wehsler IQ test is normally distributed and has a known 𝜇 = 100 and a 𝜎 = 15. A
sample of 𝑛 = 25 is drawn at random.

a. The probability is .04 that the mean of the sample will be below what value?

Answer: (Standard error of the mean)

𝜎𝑀 𝟑
 𝑀 = 𝜇 + (𝜁 × 𝜎𝑀)
=100 + (1.63 x 3)

1 b. What middle range of sample IQs will be expected to occur 95% of the time?

Answer: 𝑀 = 𝜇 + (𝜁 × 𝜎𝑀)
=100 + (1.63 x 3)
=95 + 4.95
=99.95

𝑀 = 𝜇 + (𝜁 × 𝜎𝑀)
= 100 + (-1.63 x 3)
=95 + (-4.95) =90.05