(c) If the sample size is increased to 36, give

7.13 Refer to the monthly intersection accident data

the mean and variance of X .
in Exercise 5.92. The data suggests that one
plausible model, for X = the number of acci- 7.18 As suggested in Example 8, Chapter 6, the pop-
dents in one month, is a population distribution ulation of hours of sleep can be modeled as a
normal distribution with mean 7.2 hours and
having mean µ = 2.6 and variance ! 2 = 2.4.
standard deviation 1.3 hours. For a sample of
Determine the standard deviation of X for a
size 4, determine the
random sample of size (a) 25 and (b) 100 and
ECON2008 Unit 2 Practice Questions
(c) 400. (d) How does quadrupling the sample (a) mean of X .
(b) standard deviation of X .
size change the standard deviation of X ?
Sampling Methods (c) distribution of X .
7.14 Refer to Exercise 7.11. Determine the standard

deviation of X for a random sample of size (a) 9 7.19 According to Example 12, Chapter 6, a normal
(Source: OpenIntro Statistics, Chapter 1, page 60 – 62
b) 36 and (c) 144. (d) How does quadrupling the distribution with mean 115 and standard deviation
SAMPLE MEAN AND THE CENTRAL LIMIT THEOREM

sample
283
size change the standard deviation of X ? 22 hundredths of an inch describes the variation in
7.15 Using1.theExercise 1.21 Evaluating Sampling Methods
female salmon growth in fresh water. For a sample
sampling distribution determined for
of size 6, determine the
X "2.( XExercise 1.26 City council survey
1 $ X2 ) / 2 in Exercise 7.5, verify that
(a) mean of X .
f (a) DetermineE ( X3.the missing / √ 2.
) "Exercise 1.27 Sampling strategies
# and elements
sd ( X ) "in! the
(b) standard deviation of X .
- table for the sampling distribution of X =
7.16 Using the sampling distribution determined for
d ( X1 $ X 2 )"/ 2.( X $ X ) / 2 in Exercise 7.6, verify that
(c) distribution of X .
Sampling Distribution of the Mean
X 1 2
e 7.20 A population has distribution
m EQuestion 4
( X ) " # and sd ( X ) " ! / √ 2.
–x Probability
Suppose the number of different computers used by a student last week has
7.17 Suppose the number of different computers Value Probability
e distribution 

used by a student last week has distribution
0.0
s 0.5 0 .7
a 1.0 .34 2 .1
Value Probability 4 .2
d 1.5 .24
- 2.0 0 .3
- 1 .4 Let X1 and X2 be independent and each have
(b) Find the expected
F THE SAMPLE MEAN AND THE CENTRAL value of X .
2 LIMIT THEOREM .3 283 the same distribution as the population.
(c) If the sample size is increased to 36, give (a) Determine the missing elements in the
a
e
the mean Let X
LetandX and X
variance
11 and X of
2 2
bebe independent and each have the same distribution as the
X .
independent and each have table for the sampling distribution of X "
( X1 + X2 ) / 2.
- 7.18 As suggestedthe same distribution
population. 

in Example 8, Chapter as the population.
6, the pop-
2.121 of ulation of (a) hours
Determine
of sleepthe can missing
be modeled elements
as a in the
n
e popula- normal distribution tablea)forwith
Determine the missing elements in the table for the sampling distribution of
the mean
sampling 7.2 distribution
hours and of X =
4.standard (
standard deviationX 1 $ X X-bar = (X
) / 2.
1.32 hours. For1 + X )/2..
2 of
a sample
a
ulate the size 4, determine the
ad random –x
e (a) mean of X . Probability
(b) standard deviation of X .
magnitude 0.0
(c) distribution of X . 0.5
ad suggests
9tude,7.19
is a According to Example 12, 1.0Chapter 6,.34a normal
=e 6.7 and distribution with mean 1151.5 and standard .24deviation
2.0
? the ex- 22 hundredths of an inch describes the variation in
te
for a ran- female salmon growth in fresh water. For a sample
r

of size 6,(b) Findb)
determine theFind the expected value of X-bar.

the expected value of X .
t
dent data (a) mean of . c) If the sample size is increased to 36, give the mean and variance of X-bar.
(c) IfX the sample size is increased to 36, give
the mean and variance of X .
that one (b) standard deviation of X .
r 7.18distribution
As suggested
of acci- (c) of Xin
Question 5 . Example 8, Chapter 6, the pop-
t ulation of hours of sleep can be modeled as a
tribution
7.20 A population A population has distribution
hasdistribution
distributionwith mean 7.2 hours and
2 = 2.4. normal
standard deviation 1.3 hours. For a sample of
sX for a
size 4,Value
determine Probability
the
100 and
e sample (a) mean 0 of X . .7
? (b) 2
standard deviation.1 of X .
4
(c) distribution of X .2.
standard
size (a) 9 Let 7.19 Let X
According
X1 and X2 be1 to and X
Example
independent be independent and each have the same distribution as the
12,
2 and Chapter 6, a normal
each have
upling the the samedistribution
distribution with
as mean
the 115 and standard deviation
population.
on of X ? population.
22 hundredths of an inch describes the variation in
(a) Determine the Determine the missing elements in the table for the sampling distribution of
a)
female salmon missing
growth inelements
fresh water. in For
thea sample
mined for table for the sampling distribution of X "
( X1 + X2 ) / 2. X-bar = (X1 + X2)/2.
e of size 6, determine the
erify that
(a) mean of X .
(b) standard deviation of X .
mined for
(c) distribution of X . 1
erify that
7.20 A population has distribution

omputers Value Probability


284 CHAPTER 7/VARIATION IN REPEATED SAMPLES — SAMPLING DISTRIBUTIONS

–x (a) What is the approximate distribution for X

Probability based on a random sample of 100 persons?
0 (b) Evaluate P [ X " 41,500 ].
1
7.24 The result of a survey1 suggests that one plausi-
2 .29
ble population distribution, for X = number of
3
persons with whom an adult discusses important
4 .04
matters, can be modeled as a population having
mean µ = 2.0 and standard deviation ! = 2.0. A
b)expected
(b) Find the Find the expected value of X-bar. 

value of X . random sample of size 100 will be obtained.
(c) If the c) If the sample size is increased to 25, give the mean and variance of X-bar. 

sample size is increased to 25, give (a) What can you say about the probability
the mean and variance of X .
distribution of the sample mean X ?
7.21 SupposeApplication CLT
the weights of the contents of cans of ( b) Find the probability that X will exceed
mixed Question 6
nuts have a normal distribution with 2.3.
mean 32.4 ounces and standard deviation .4 7.25 The lengths of the trout fry in a pond at the fish
ounce.
A high-speed packing machine can be set to deliver between 11 and 13 ounces of a
hatchery are approximately normally distributed
liquid. For any delivery setting in this range the amount delivered is normally
(a) If every can is labeled 32 ounces, what with mean 3.4 inches and standard deviation .8
distributed with mean some amount, 𝜇, and with standard deviation 0.08 ounce. To
proportion of the cans have contents that inch. Three dozen fry will be netted and their
calibrate the machine it is set to deliver a particular amount, many containers are
weigh less than than the labeled lengths measured.
amount?
filled and 25 containers are randomly selected and the amount they contain is
(a) What is the probability that the sample
(b) If measured. Find the probability that the sample mean will be within 0.05 ounce of
two packages are randomly selected, mean length of the 36 netted trout fry will
specify the mean, standard deviation, and
the actual mean amount being delivered to all containers.
be less than 3.2 inches?
distribution of the average weight of the

contents.
(b) Why might the fish in the net not repre-
sent a random sample of trout fry in the
(c) If Question 7
two packages are randomly selected, what pond?
is Suppose speeds of vehicles on a particular stretch of roadway are normally
the probability that the average weight is
7.26 The heights of male students at a university
distributed with mean 36.6 mph and standard deviation 1.7 mph.
less than 32 ounces?
have a nearly normal distribution with mean 70
7.22 Suppose thea) Find the probability that the speed X of a randomly selected vehicle is
amount of a popular sport drink in inches and standard deviation 2.8 inches. If 5
bottles leaving the between 35 and 40 mph.
filling machine has a normal male students are randomly selected to make up
distribution b) with mean 101.5 milliliters (ml) an intramural basketball team, what is the prob-
Find the probability that the mean speed X of 20 randomly selected vehicles
and standard deviation 1.6 ml. ability that the heights of the team will average
is between 35 and 40 mph. over 72.0 inches?
(a) If the bottles are labeled 100 ml, what pro-

portion of the bottles contain less than the 7.27 According to the growth chart that doctors use
Question 8
labeled amount? as a reference, the heights of two-year-old boys
(b) If A normally distributed population has mean 1,214 and standard deviation 122.
four bottles are randomly selected, find are normally distributed with mean 34.5 inches
a) and
the mean Find the probability that a single randomly selected element X of the
standard deviation of the av- and standard deviation 1.3 inches. For a random
sample of 6 two-year-old boys, find the probabil-
population is between 1,100 and 1,300.
erage content.
ity that the sample mean will be between 34.1
(c) What b) Find the mean and standard deviation of X for samples of size 25.
is the probability that the average
and 35.2 inches.
content of four bottles is less than 100 ml?
c) Find the probability that the mean of a sample of size 25 drawn from this
1
M. McPherson, L. Smith-Lovin, and M. Brashears. “Social Iso-
7.23 The distributionpopulation is between 1,100 and 1,300.
of personal income of full-time lation in America: Changes in Core Discussion Networks
retail clerks
working in a large eastern city has Over Two Decades,” American Sociological Review, 71 ( 3)
m # $41,000 and s # $5000. ( 2006 ), pp. 353–375.
Question 9
You are the director of transportation safety at the Transport Authority. You are
concerned because the average highway speed of all trucks may exceed the 70 km
speed limit. A random sample of 120 trucks is taken and their speed recorded.
Assuming that the population mean is 70 km and the population standard deviation
is 12.5 km,
a) Find the probability that the average speed of the 120 trucks is greater than
or equal to 72 mph.

b) Find the probability that the average speed of this sample of trucks exceeded
the speed limit by 20km or more.

Confidence Interval
Question 10
Playbill magazine reported that the mean annual household income of its readers is
$119,155 (Playbill, December 2003). Assume this estimate of the mean annual
household income is based on a sample of 80 households and, based on past studies,
the population standard deviation is known to be σ $30,000.
a) Develop a 90% confidence interval estimate of the population mean.
b) Develop a 95% confidence interval estimate of the population mean.
c) Develop a 99% confidence interval estimate of the population mean.
d) Discuss what happens to the width of the confidence interval as the
confidence level

Question 11
Sales personnel for Skillings Distributors submit weekly reports listing the customer
contacts made during the week. A sample of 65 weekly reports showed a sample
mean of 19.5 customer contacts per week. The sample standard deviation was 5.2.

Provide 90% and 95% confidence intervals for the population mean number of
weekly customer contacts for the sales personnel.

Question 12
The mean number of hours of flying time for pilots at Continental Airlines is 49
hours per month (The Wall Street Journal, February 25, 2003). Assume that this
mean was based on actual flying times for a sample of 100 Continental pilots and
that the sample standard deviation was 8.5 hours.
a) At 95% confidence, what is the margin of error? 

b) What is the 95% confidence interval estimate of the population mean flying
time for 
the pilots? 

c) The mean number of hours of flying time for pilots at United Airlines is 36
hours 
per month. Use your results from part (b) to discuss differences
between the flying times for the pilots at the two airlines.
d) The Wall Street Journal reported United Airlines as having the highest labor
cost among all airlines. Does the information in this exercise provide insight
as to why United Airlines might expect higher labor costs? 


Hypothesis Testing
Question 13
Suppose a new production method will be implemented if a hypothesis test
supports the conclusion that the new method reduces the mean operating cost per
hour.
a) State the appropriate null and alternative hypotheses if the mean cost for the
current production method is $220 per hour. 

b) What is the Type I error in this situation? What are the consequences of
making this error? 

c) What is the Type II error in this situation? What are the consequences of
making this error? 


Question 14
Individuals filing federal income tax returns prior to March 31 received an average
refund of $1056. Consider the population of “last-minute” filers who mail their tax
return during the last five days of the income tax period (typically April 10 to April
15).
a) A researcher suggests that a reason individuals wait until the last five days is
that on 
average these individuals receive lower refunds than do early filers.
Develop appropriate hypotheses such that rejection of H0 will support the
researcher’s contention.
b) For a sample of 400 individuals who filed a tax return between April 10 and
15, the sample mean refund was $910. Based on prior experience a
population standard deviation of σ = $1600 may be assumed. What is the p-
value?
c) At α = .05, what is your conclusion?

Question 15
The average annual total return for U.S. Diversified Equity mutual funds from
1999 to 2003 was 4.1% (BusinessWeek, January 26, 2004). A researcher would
like to conduct a hypothesis test to see whether the returns for mid-cap growth
funds over the same period are significantly different from the average for U.S.
Diversified Equity funds.
a) Formulate the hypotheses that can be used to determine whether the mean
annual return for mid-cap growth funds differ from the mean for U.S.
Diversified Equity funds.
b) A sample of 40 mid-cap growth funds provides a mean return of
x-bar = 3.4%. Assume the population standard deviation for mid-cap
growth funds is known from previous studies to be σ =2%. Use the sample
results to compute the test statistic and p-value for the hypothesis test.
c) At α= .05, what is your conclusion?

Question 16
For the United States, the mean monthly Internet bill is $32.79 per household
(CNBC, January 18, 2006). A sample of 50 households in a southern state showed a
sample mean of $30.63. Use a population standard deviation of $5.60.
a) Formulate hypotheses for a test to determine whether the sample data
support the conclusion that the mean monthly Internet bill in the southern
state is less than the national 
mean of $32.79. 

b) What is the value of the test statistic? 

c) What is the p-value? 

d) At α = .01, what is your conclusion? 


Question 17
According to official data, the average annual expenditure on dental care in
Kingston, Jamaica is at least $50,000 per person. A random sample of 250 persons
showed that they spent an average of $49,000 on dental care last year with a
standard deviation of $10,350. Test at the 5% significance level whether last year’s
mean annual dental care expenditure per person in the parish was less than
$50,000.
a) Formulate the hypotheses to be tested.
b) Calculate the value of the test statistics.
c) What is the conclusion?