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Chapter 07: Sampling and Sampling Distributions
True / False
1. A list of all members of the population from which we can choose a sample is called a frame, and the
potential sample members are called sampling units.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy | Bloom’s: Remember
QUESTION TYPE: True / False
HAS VARIABLES: False
TOPICS: A-Head: 7-2 Sampling Terminology
OTHER: BUSPROG: Analytic | DISC: Statistical Inference
DATE CREATED: 1/14/2019 12:09 PM
DATE MODIFIED: 3/29/2019 2:11 PM
2. A probability sample is a sample in which the sampling units are chosen from the population by means of a
random mechanism such as a random number table.
a. True
b. False
ANSWER: True
POINTS: 1
3. We can measure the accuracy of judgmental samples by applying some simple rules of probability. This
way, judgmental samples are not likely to contain our built-in biases.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy | Bloom’s: Understand
4. Simple random samples are samples in which every possible sample of size n from the population has the
Copyright Cengage Learning. Powered by Cognero. Page 1
same probability of being chosen.
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: A-Head: 7-3 Methods for Selecting Random Samples
5. A simple random sample is one where each member of the population has a known chance (this may differ
from one member to another) or probability of being chosen.
a. True
b. False
ANSWER: False
POINTS: 1
6. In systematic sampling, one of the first k members is selected randomly, and then every kth member after
this one is selected. The value k is called the sampling interval and equals the ratio N / n, where N is the
population size and n is the desired sample size.
a. True
b. False
ANSWER: True
POINTS: 1
7. In stratified sampling, the population is divided into relatively homogeneous subsets called strata, and then
random samples are taken from each stratum.
a. True
b. False
ANSWER: True
POINTS: 1
8. In stratified sampling with proportional sample sizes, the proportion of each stratum selected differs from
stratum to stratum.
a. True
b. False
ANSWER: False
POINTS: 1
9. In cluster sampling, the population is divided into subsets called clusters (such as cities or city blocks), and
then a random sample of the clusters is selected. Once the clusters are selected, we typically acquire
information from all of the members in each selected cluster.
a. True
b. False
ANSWER: True
POINTS: 1
10. The primary advantage of cluster sampling is sampling convenience (and possibly less cost). The
downside, however, is that the inferences drawn from a cluster sample can be less accurate, for a given
sample size, than for other sampling plans.
a. True
b. False
ANSWER: True
POINTS: 1
11. The finite population correction factor is a correction for the standard error when the sample size is fairly large relative
to the population size.
a. True
b. False
ANSWER: True
POINTS: 1
12. Simple random sampling can result in under-representation or over-representation of certain segments of
the population. This is one of several reasons that simple random samples are almost never used in real
applications.
a. True
b. False
ANSWER: True
POINTS: 1
13. Stratified samples are typically not used in real applications because they provide less accurate estimates
of population parameters for a given sampling cost.
a. True
b. False
ANSWER: False
POINTS: 1
14. Cluster sampling is often less convenient and more costly than other random sampling methods.
a. True
b. False
ANSWER: False
POINTS: 1
15. One obvious advantage of stratified sampling is that we obtain separate estimates within each stratum –
which we would not obtain if we took a simple random sample from the entire population. A more important
advantage is that we can increase the accuracy of the resulting population estimates by using appropriately
defined strata.
a. True
b. False
ANSWER: True
POINTS: 1
16. Systematic sampling is generally similar to simple random sampling in its statistical properties.
a. True
b. False
ANSWER: True
POINTS: 1
17. The standard error of sample mean is large when the observations in the population are spread out
(large ), but that the standard error can be reduced by taking a smaller sample.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: A-Head: 7-4 Introduction to Estimation
18. When we sample less than 5% of the population, the finite population correction factor; fpc =
, is used to modify the formula for the standard error of the sample mean.
a. True
b. False
ANSWER: False
POINTS: 1
19. A point estimate is a single numeric value, a “best guess” of a population parameter, calculated from the
sample data.
a. True
b. False
ANSWER: True
POINTS: 1
20. The difference between the point estimate and the true value of the population parameter being estimated
is called the estimation error.
a. True
b. False
ANSWER: True
POINTS: 1
21. A confidence interval is an interval calculated from the population data, where we strongly believe the true
value of the population parameter lies.
a. True
b. False
ANSWER: False
POINTS: 1
22. The sampling distribution of any point estimate (such as the sample mean or proportion) is the distribution
of the point estimates we would obtain from all possible samples of a given size drawn from the population.
a. True
b. False
ANSWER: True
POINTS: 1

23. An unbiased estimate is a point estimate such that the mean of its sampling distribution is equal to the true
value of the population parameter being estimated.
a. True
b. False
ANSWER: True
POINTS: 1
24. The standard error of an estimate is the standard deviation of the sampling distribution of the estimate. It
measures how much estimates from different samples vary.
a. True
b. False
ANSWER: True
POINTS: 1
25. The standard error of the estimate measures how much estimates vary from sample to sample.
a. True
b. False
ANSWER: True
POINTS: 1
26. It is customary to approximate the standard error of the sample mean by substituting the sample
standard deviation s for in the formula: SE( )= .
a. True

b. False
ANSWER: True
POINTS: 1
27. An estimator is said to be biased if the mean of its sampling distribution is not equal to the value of the
population parameter being estimated.
a. True
b. False
ANSWER: True
POINTS: 1
28. Estimation is the process of inferring the value of an unknown population parameter using data from a random
sample drawn from the population.
a. True
b. False
ANSWER: True
POINTS: 1
29. The central limit theorem (CLT) states that the sampling distribution of the mean is approximately normal,
no matter what the distribution of the population, as long as the sample size is large enough.
a. True
b. False
ANSWER: True
POINTS: 1
30. When the sample size is greater than 5% of the population, the formula for the standard error of the mean should be
modified with a finite population correction.
a. True
b. False
ANSWER: True
POINTS: 1
31. A sample of size 20 is selected at random from a population of size N. If the finite population correction
factor is 0.9418, then N must be 169.
a. True
b. False
ANSWER: True
POINTS: 1
32. The sampling distribution of the mean will have the same mean as the original population from which the
samples were drawn.
a. True
b. False
ANSWER: True
POINTS: 1
33. The sampling distribution of the mean will have the same standard deviation as the original population from
which the samples were drawn.
a. True
b. False
ANSWER: False
POINTS: 1
34. Nontruthful responses is an example of a nonsampling error.

a. True
b. False
ANSWER: True
POINTS: 1
35. Voluntary response bias occurs when the responses to questions do not reflect what the investigator had in
mind.
a. True
b. False
ANSWER: False
POINTS: 1

36. If the sample size is greater than 30, the Central Limit Theorem (CLT) will always guarantee that the
sampling distribution of the sample mean is approximately normal.
a. True
b. False
ANSWER: False
POINTS: 1
37. The central limit theorem (CLT) says that as long as the sample size is reasonably large, there is about a
95% chance that the magnitude of the sampling error for the mean will be no more than two standard errors.
a. True
b. False
ANSWER: True
POINTS: 1
38. The size of a sample can be selected by first determining the desired standard error and then using the
formula to calculate n.
a. True
b. False
ANSWER: True
POINTS: 1

Multiple Choice
39. A sample in which the sampling units are chosen from the population by means of a random mechanism is
a _____ sample.
a. probability
b. judgmental
c. convenience
d. voluntary response
ANSWER: a
POINTS: 1
QUESTION TYPE: Multiple Choice
40. A judgmental sample is a sample in which the

a. sampling units are chosen using a random number table.
b. quality of sampling units judged before they are added to the sample.
c. sampling units are chosen according to the sampler’s judgment.
d. sampling units condemn the sampling method used.
ANSWER: c
POINTS: 1
41. Potential sample members, called sampling units, may be

a. people.
b. companies.
c. households.
d. all of these choices.
ANSWER: d
POINTS: 1

42. In sampling, a population is

a. the set of all humans.
b. the set of all members about which a study intends to make inferences.
c. the set of all members from whom data was collected.
d. a random group of individuals, households, cities, or countries.
ANSWER: b
POINTS: 1
43. A list of all members of the population is called a

a. sampling unit.
b. probability sample.
c. frame.
d. relevant population
ANSWER: c
POINTS: 1
44. A sample chosen in such a way that every possible subset of same size has an equal chance of being
selected is called a _____sample.
a. cluster
b. systematic random
c. simple random
d. stratified random
ANSWER: c
POINTS: 1
45. The sampling method in which a population is divided into blocks and then selected by choosing a random
mechanism is called a _____ sampling.
a. systematic random
b. simple random
c. stratified
d. cluster
ANSWER: b
POINTS: 1
46. Which of the following is not a consideration when determining appropriate sample size?
a. the cost of sampling
b. the timely collection of the data
c. interviewer fatigue
d. the likelihood of nonsampling error
ANSWER: c
POINTS: 1
47. Identifiable subpopulations within a population are called

a. clusters.
b. samples.
c. blocks.
d. strata.
ANSWER: d
POINTS: 1
48. The defining property of a simple random sample is that

a. every possible sample of a particular size has the same chance of being chosen.
b. it is the easiest method to access samples that are chosen.
c. it requires the fewest samples necessary for statistical significance.
d. every kth subject is chosen as a sample.
ANSWER: a
POINTS: 1
49. Selecting a random sample from each identifiable subgroup within a population is called _____ sampling.
a. simple random
b. systematic
c. stratified
d. cluster
ANSWER: c
POINTS: 1
50. Which of the following are reasons for why simple random sampling is used infrequently in real
applications?
a. Samples can be spread over a large geographic region.
b. Simple random sampling requires that all sampling units be identified prior to sampling.
c. Simple random sampling can result in underrepresentation or overrepresentation of certain
segments of the population.
d. All of these choices are valid reasons.
ANSWER: d
POINTS: 1
51. Which statement is true of proportional sample sizes?

a. The proportion of a stratum in the sample is independent of the proportion of that stratum in the
population.
b. The proportion of a stratum in the sample is the same as the proportion of that stratum in the
population.
c. The proportion of a stratum in the sample is greater than the proportion of that stratum in the
population.
d. The proportion of a stratum in the sample is less than the proportion of that stratum in the
population.
ANSWER: b
POINTS: 1
52. The probability of being chosen in a simple random sample of size n from a population of size N is
a. 1/N.
b. N – 1/n.
c. N/n.
d. n/N.
ANSWER: d
POINTS: 1

53. The key to using stratified sampling is
a. identifying the strata.
b. selecting the appropriate strata.
c. defining the strata.
d. randomizing the strata.
ANSWER: b
POINTS: 1
54. If systematic sampling is chosen as the sampling technique, it is probably because

a. systematic sampling has better statistical properties than simple random sampling.
b. systematic sampling is more convenient.
c. systematic sampling always results in more representative sampling than simple random sampling.
d. systematic sampling gives every possible sample of the same size from the population an equal
chance of being selected.
ANSWER: b
POINTS: 1
55. Which of the following statements correctly describe estimation?

a. It is the process of inferring the values of known population parameters from those of unknown
sample statistics.
b. It is the process of inferring the values of unknown sample statistics from those of known population
parameters.
c. It is the process of inferring the values of known sample statistics from those of unknown population
parameters.
d. It is the process of inferring the values of unknown population parameters from those of known
sample statistics.
ANSWER: d
POINTS: 1
56. A sampling error is the result of

a. measurement error.
b. nonresponse bias.
c. nontruthful responses.
d. "unlucky" sampling.
ANSWER: d
POINTS: 1
57. The standard deviation of is usually called the

a. standard error of the mean.
b. standard error of the sample.
c. standard error of the population.
d. randomized standard error.
ANSWER: a
POINTS: 1
58. When a portion of the sample does not respond to the survey, ____ has occurred.
a. a measurement error
b. nonresponse bias
c. a sampling error
d. systematic failure
ANSWER: b
POINTS: 1
59. The accuracy of the point estimate is measured by its

a. standard deviation.
b. standard error.
c. sampling error.
d. nonsampling error.
ANSWER: b
POINTS: 1
60. The sampling mean is the ____ estimate for the population mean .
a. random
b. point
c. simple
d. interval
ANSWER: b
POINTS: 1
61. Non-truthful response is a particular problem when

a. sensitive questions are asked.
b. surveys are anonymous.
c. interviewers are not trained.
d. the sample is from an unusual population.
ANSWER: a
POINTS: 1
62. Measurement error occurs when

a. a portion of the sample does not respond to the survey.
b. the sample responses are not clear.
c. the responses to question do not reflect what the investigator had in mind.
d. the investigator does not correctly tally all responses.
ANSWER: c
POINTS: 1
63. The two basic sources for error when using random sampling are _____ error.
a. sampling and selection
b. identification and selection
c. sampling and nonsampling
d. bias and randomness
ANSWER: c
POINTS: 1
64. Sampling error is evident when

a. a question is poorly worded and results in bias.
b. the sample is too small.
c. the sample is not random.
d. the sample mean differs from the population mean.
ANSWER: d
POINTS: 1
65. The opportunity for sampling error is decreased by

a. larger sample sizes.
b. smaller sample sizes.
c. affluent samples.
d. interviewer selected samples.
ANSWER: a
POINTS: 1
66. The theorem that states that the sampling distribution of the sample mean is approximately normal when
the sample size n is reasonably large is known as the _____ theorem.
a. central limit
b. central tendency
c. simple random sample
d. point estimate
ANSWER: a
POINTS: 1
67. There is an approximately _____% chance that any particular will be within two standard deviations of
the population mean ( ).
a. 90
b. 95
c. 99
d. 99.7
ANSWER: b
POINTS: 1
68. Which of the following statements are correct?

a. A point estimate is an estimate of the range of a population parameter.
b. A point estimate is a single value estimate of the value of a population parameter.
c. A point estimate is an unbiased estimator if its standard deviation is the same as the actual value of
the population standard deviation.
d. All of these choices are correct.
ANSWER: b
POINTS: 1
69. An unbiased estimator is a sample statistic

a. used to approximate a population parameter.
b. which has an expected value equal to the value of the population parameter.
c. whose value is usually less than the population parameter.
d. that arises from samples that are of size 30 or fewer.
ANSWER: b
POINTS: 1
70. Which of the following statements is correct?

a. A confidence interval describes a range of values that is likely not to include the actual population
parameter
b. A confidence interval is an estimate of the range for a sample statistic.
c. A confidence interval is an estimate of the range of possible values for a population parameter.
d. A confidence interval describes a range of values that will always include the actual population
parameter.
ANSWER: c
POINTS: 1
71. The approximate standard error of the sample mean is calculated as

a. .
b. .
c. .
d. .
ANSWER: b
POINTS: 1
72. The approximate 95% confidence interval for a population mean is

a. .
b. .
c. .
d. .
ANSWER: d
POINTS: 1
73. The finite population correction factor, , should generally be used when
a. N is any finite size.

b. n is less than 5% of the population size N.
c. n is greater than 5% of the population size N.
d. n is any finite size.
ANSWER: c
POINTS: 1
74. The central limit theorem (CLT) is generally valid for

a. n > 5.
b. n > 10.
c. n > 30.
d. any size n.
ANSWER: d
POINTS: 1
75. The averaging effect means that as you average more and more observations from a given distribution, the
variance of the average
a. increases.
b. decreases.
c. is unaffected.
d. could either increase, decrease, or stay the same.
ANSWER: b
POINTS: 1
76. The mean of the sampling distribution of always equals:

a. the population mean .
b. / n.
c. the population standard deviation .
d. / n.
ANSWER: a
POINTS: 1
77. The opportunity for nonsampling error is larger when the

a. sample size is large.
b. sample size is small.
c. population size is small.
d. population size is large.
ANSWER: a
POINTS: 1
OTHER: BUSPROG: Analytic | DISCB: Statistical Inference
78. The central limit theorem (CLT) is considered to be an important result in statistics because
a. the CLT allows us to assume that the population distribution is approximately normal, provided n is
reasonably large.
b. the CLT allows us to estimate the population mean without knowing the exact form of the population
distribution, provided n is reasonably large.
c. the CLT allows us to construct confidence intervals for the population mean without knowing the
exact form of the population distribution, provided n is reasonably large.
d. of all of these choices.
ANSWER: d
POINTS: 1
Subjective Short Answer
79. Consider the frame of 50 full-time employees of Computer Technologies, Inc (CTI). CTI’s human resources
manager has collected annual salary figures for all employees and she has calculated a mean of $52,723, a
median of $48,082 and a standard deviation of $24,167. A simple random sample of 10 employees is
presented below (salary is in $1,000’s). Compute the mean, median, and standard deviation for the sample
and compare these statistics with the measures for the entire company.
Employee 1 2 3 4 5 6 7 8 9 10
Salary 38.8 46.7 61.1 49.6 58.5 78.8 36.7 46.5 47.6 56.7
ANSWER: Sample statistics: mean = $52,100, median = $48,600, standard deviation =
$12,279.52
Population parameters: mean = $52,723, median = $48,082, standard deviation =
$24,167
The sample mean and median are nearly the same as the corresponding
population mean and median, but the sample standard deviation is much smaller
than the population standard deviation.
POINTS: 1
DIFFICULTY: Easy | Bloom’s: Apply
QUESTION TYPE: Subjective Short Answer
STUDENT ENTRY MODE: Basic
80. A sales manager for a company that makes commercial ovens for restaurants is interested in estimating
the average number of restaurants in all metropolitan areas across the entire country. He does not have
access to the data for each metropolitan location, so he had decided to select a sample that will be
representative of all such areas, and will use a sample size of 30. Do you believe that simple random sampling
is the best approach to obtaining a representative subset of the metropolitan areas in the given frame? Explain.
If not, recommend how the sales manager might proceed to select a better sample of size 30 from this data?
ANSWER: Using a simple random sample may not be the best approach. If you are trying to
determine the number of restaurants in metropolitan areas, it seems as though this
would be somewhat dependent on the size (population) of the metropolitan areas

under investigation. It may be better to stratify the samples. You could divide the
metropolitan areas into several strata based on their population and then sample
within each stratum. This may be more representative of the metropolitan areas
across the country.
POINTS: 1
DIFFICULTY: Moderate | Bloom’s: Analyze
The manager of a small computer company has collected current annual salaries and number of years of post-
secondary education for 52 full-time employees. The data are shown below:
Current annual salaries:
Number of years of post-secondary education:
81. (A) Compute the mean, median, and standard deviation of the annual salaries for the 52 employees in the
given frame.
(B) Use Excel® to choose a systematic sample of size 13 from the frame of annual salaries.
(C) Compute the mean, median, and standard deviation of the annual salaries for the 13 employees included
in your systematic sample in (B)
(D) Compare your statistics in (C) with your computed descriptive measures for the frame in (A). Is your
systematic sample representative of the frame with respect to the annual salary variable?
(E) Assume that we wish to stratify these employees by the number of years of post-secondary education,
select such a stratified sample of size 15 with approximately proportional sample sizes.
(F) Compute the mean, median, and standard deviation of the annual salaries for the 15 employees included in
your stratified sample in (E).
(G) Compare these statistics in (F) with your computed descriptive measures for the frame obtained in (A). Is
your stratified sample representative of the frame with respect to the annual salary variable?
ANSWER: (A) The mean, median, and standard deviation of the given frame were computed
using StatTools as shown below:
(B) In order to generate a systematic sample, we must first divide the frame size
by the desired sample size to find the relevant intervals from which we will sample.
The sampling interval in this case is 4, meaning that every 4th salary will be
included in the sample. Next, we randomly choose a number between 1 and 4.
Suppose that this number happens to be 1. This will be our starting point in the
first block of 4 salaries. To identify every 4th salary thereafter, we first developed
an index column to assign an index value to each salary. We then used the MOD
function in Excel® to label every 4th salary with a "1" in column C. Lastly, we used
an IF statement to identify every value that has a "1" assigned to it. We have now
generated a systematic sample of size 13. The sample consists of the following
values shown below (read across rows):
$38,450 $109,285 $87,489 $49,638 $76,927 $90,473

$89,867 $28,743 $39,205 $54,199 $49,987 $21,750
$31,008
(C)
(D) After generating the summary measures for both the frame and the sample,
we can conclude that the sample does not represent the frame well. The mean,
median, and standard deviation of the frame are all much smaller than the mean,
median, and standard deviation of the sample.
(E) This portion of the solution involves several steps. First, we noted the total
sample size needed. Second, we developed the strata we will use to separate the
given frame: in this case we placed every two years in a new stratum as shown
below. Next, we generated a column labeled "Category", to place a number
between 1 and 5 next to the salary that corresponds with the stratum of that
number. For example, if the annual salary was of a person who only had 2 years
of education beyond secondary education, then a number 2 for Stratum 2 was
placed next to the salary. The "Category" column was generated using an IF
statement. We then unstacked the categories in order to count the number of
salaries in each stratum. This was done by using StatTools's Data Utilities/Unstack
function. Once this was completed, we used the COUNT function in Excel® to
count the number of values in each stratum and then generated proportional
numbers for each stratum with respect to the size of the given population. Once
the proportions are generated, we used the random number function in Excel® to
assign a random number to each salary. Then, by using Excel® to sort the salaries
in each stratum by their random number (in this case by ascending number) we
selected the salaries in each stratum that will be included in the sample. These
salaries are shown below.
(F)

(G) When looking at the mean, median, and standard deviation of both the sample
and population, we can conclude that the stratified sample represents the
population fairly well, although the summary measures are all slightly lower than
those of the population.
POINTS: 1
PREFACE NAME: SA_96_102
Suppose that you are an entrepreneur interested in establishing a new Internet-based auction service.
Furthermore, suppose that you have gathered basic demographic information on a large number of Internet
users. You currently have information on 1000 individuals related to their gender, age, education, marital
status, annual household income, and number of people in household. Assume that these individuals were
carefully selected through stratified sampling.
82. (A) To assess potential interest in your proposed enterprise, you would like to conduct telephone interviews
with a representative subset of the 1000 Internet users. How would you proceed to stratify the given frame of
1000 individuals to choose 50 for telephone interviews? Explain your approach.
(B) Explain how you could apply cluster sampling to obtain a sample size of 50 from this frame. What are the
advantages and disadvantages of employing cluster sampling in this case?
ANSWER:
(A) Which of these factors will have an impact on the use of the auction service?
You may want to use gender, age, and annual household income. You should
attempt to gather data on individuals that represent the different gender, age, and
annual income groups that represent your customers. You may find that you have
different responses between these groups.
(B) You may decide that you want to sample 50 people in your immediate area.
You can use your local phone directory and call customers in your area. This type
of sampling is convenient and is less costly. The drawback is that the inference
drawn from this type of sample may not be representative of the entire
population. Cluster sampling is most effective when the clusters are small scale
replicas of the population as a whole.
POINTS: 1
A statistics professor has just given the final examination in his introductory statistics course. In particular, he is
interested in learning how his class of 50 students performed on this exam. The data are shown below.
78 72 73 75 79 72 75 77 71 78
83 84 71 81 82 79 71 73 89 74
75 93 74 88 83 90 82 79 62 73
88 76 76 76 80 84 84 91 70 76
74 68 80 87 92 84 79 80 91 74
83. (A) Using these 50 students as the frame, use Excel® to generate a simple random sample of size 10 from
this frame.
(B) Compute the mean scores in the frame and the simple random sample you generated in (A).
(C) Compare the mean scores you computed in (B). Is your simple random sample a good representative of
the frame? Why or why not?
(D) Using these 50 students as the frame, use Excel® to generate a systematic sample of size 10 from this
frame.
(E) Compare the mean scores in the frame with that in the systematic sample in (D). What do you conclude?
ANSWER:
In order to solve this problem, we first generated an index value for each score in
the given frame. Then we used StatTool’s Random Sample tool in the Data
Utilities section to generate a simple random sample of scores from the
population. Lastly, we used VLOOKUP function to find the corresponding score for
each index value. This process resulted in the following sample:
Index 6 34 37 10 26 24 32 36 4 33
Score 72 76 84 78 90 88 76 84 75 76
(B) Population mean score = 78.92, Sample mean score = 79.90 in the above
case.
(C) The mean of the sample generated from the given frame of scores is clearly
very close to the mean of the population. Therefore we may conclude that the
simple random sample is fairly representative of the population of introductory
statistics final exam scores.
(D) In order to generate a systematic sample, we must first divide the frame size
(50) by the desired sample size (10) to find the relevant intervals from which we
will sample. The sampling interval in this case is 5, meaning that every 5th score
will be included in the sample. Next, we randomly choose a number between 1
and 5. Suppose that this number happens to be 1. This will be our starting point in
the first block of 5 scores. To identify every 5th score thereafter, we first developed
an index column to assign an index value to each score. We then used the MOD
function in Excel® to label every 5th score with a “1” assigned to it. We have now
generated a systematic sample of size 10. The sample consists of the following
values: 78, 72, 83, 79, 75, 90, 88, 84, 74, and 84.
(E) The means of the frame and of the sample were found to be 78.92 and 80.7,
respectively. We see that these means are very close. From this analysis, we can
conclude that the systematic sample is fairly representative of the frame or
population.
POINTS: 1
DIFFICULTY: Easy | Bloom’s: Analyze
A university bookstore manager is mildly concerned about the number of textbooks that were under-ordered
and thus unavailable two days after the beginning of classes. The manager instructs an employee to pick a
random number, go to the place where that number book is shelved, examine the next 50 titles, and record
how many titles are unavailable.
84. (A) Technically, this process does not yield a random sample of the books in the store. Why not?
(B) How could a truly random sample be obtained?
ANSWER:
(A) For true random sampling, all possible combinations of 50 books must have
equal probability of being sampled. In this process, books that are shelved far from
each other could not be in the same sample. Thus not all combinations would
have equal probability; some combinations would have probability 0.
(B) Obtain an inventory list of all book titles and number the books. Use a table of
random numbers (or computer generated random numbers) to select 50 books to
be examined.
POINTS: 1

Sally Bird of Big Rapids Realty has received data on 60 houses that were recently sold in Mecosta County in
Michigan. The data are recorded in the table shown below. Included in this data set are observations for each
of the following variables:
· The appraised value of each house (in thousands of dollars)
· The selling price of each house (in thousands of dollars)
· The size of each house (in hundreds of square feet)
· The number of bedrooms in each house
85. (A) Suppose that Sally wishes to examine a representative subset of these 60 houses that has been
stratified by the number of bedrooms. Use Excel® to assist her by finding such a stratified sample of size 10
with proportional sample sizes.
(B) Explain how Sally could apply cluster sampling in selecting a sample of size 15 from this frame.
(C) What are the advantages and disadvantages of employing cluster sampling in this case?
ANSWER:
(A) In this problem, the stratified sample was found by using strata that were
based on the number of bedrooms in the house. Once we established how to
stratify the frame, we unstacked the prices according to the strata (in this case, the
number of bedrooms). This was done by using StatPro’s Data Utilities/Unstack
variables. Once this was completed, we counted the number of houses in each
stratum and then assigned a proportional size to each stratum relative to the size
of the frame (in this case, size of the frame is 60). After the proportions were
generated, we used Excel to generate a random number for each price in each
stratum. Next, we used the sort function in Excel® to place the prices in order of
ascending random numbers. We then chose the prices to be included in the
stratified sample. These results are shown below. Note that the stratified sample
size is 11 (not 10) due to rounding.
HOUSE # BEDROOMS PRICE

17 2 132.54
29 2 111.95
18 2 114.33
2 2 111.70
1 3 132.98
45 3 136.16
27 3 153.69
34 3 127.30
12 4 136.51
32 4 155.46
6 5 162.03
(B) In this situation, Sally could have selected a few neighborhoods within Mecosta
County, Michigan, and obtained all the sample information from the selected
neighborhoods.
(C) By using cluster sampling, Sally would be able to generate her sample more
quickly and conveniently. The disadvantage of cluster sampling in this case is that
Sally would have to make sure she selected neighborhoods that fairly represented
the variety of households in the county. Cluster samples are the most effective
when the clusters are small scale replicas of the population. For example, if the
county had a large variety of homes with only 2 bedrooms, but the sample
neighborhoods selected mostly contained homes with 4 bedrooms, the sample
information would not fairly represent the entire frame. If this were the case,
cluster sampling would not be a good way to select a sample.
POINTS: 1
DIFFICULTY: Moderate | Bloom’s: Apply
Suppose that the average weekly earnings for employees in general automotive repair shops is $450, and that
the standard deviation for the weekly earnings for such employees is $50. A sample of 100 such employees is
selected at random.
86. (A) Find the mean and standard deviation of the sampling distribution of the average weekly earnings in the
sample.
(B) Find probability that the mean of the sample is less than $445.
(C) Find the probability that the mean of the sample is between $445 and $455.

(D) Find the probability that the mean of the sample is greater than $460.
(E) Explain why the assumption of normality about the distribution of the average weekly earnings for
employees was not involved in the answers to (A) through (D).
ANSWER: (A) E( ) = = 450, and SE( ) = =5
(B) P( < 445) = P(Z < -1) = 0.5000 – 0.3413 = 0.1587
(C) P(445< <455) = P(-1.0 < Z < 1.0) = 2(0.3413) = 0.6826
(D) P( > 460) = P(Z > 2.0) = 0.5000 – 0.4772 = 0.0228
(E) The sample size is large; n = 100 is greater than 30, so the distribution of the
average weekly earnings for employees is at least approximately normal.
POINTS: 1
An editor of a local newspaper is concerned with the number of errors that are found in the daily paper. In
order to understand the extent of this problem, the editor would like to estimate the average number of errors in
the daily paper. The frame in this case is the number of errors found in the daily paper for the past six months
(180 issues).
87. (A) What sample size would be required for the production personnel to be approximately 95% sure that
their estimate of the average number of errors per issue is within 4 errors of the true mean? Assume that the
editor’s best estimate of the population standard deviation ( ) is 10 errors per issue.
(B) How does your answer to (A) change if the editor wants the estimate to be within 3 errors of the actual
population mean? Explain the difference in your answers to (A) and (B).
ANSWER: (A)
(B) In this case, . This shows that we
need almost twice as many observations to decrease the absolute error from 4 to
3.
POINTS: 1
A columnist for the LA Times is working to meet a deadline on a story about commuting in Los Angeles. She
wants to include information about the current price of gasoline in the Los Angeles metro area, but her source
person for this type of information has already gone home for the day. So, she decides to take her own sample
as she drives home, writing down the prices she observes as she makes her way from downtown to her
neighborhood in the suburbs. Below is the data sample she obtains (units are $/gallon).
88. (A) Do you think she has obtained a true random sample?
(B) What average price could she report, based on the above sample?
(C) What is the 95% confidence interval for the average price range, based on the above sample?
(D) Do you see any issues with the 95% confidence interval calculated in part (C)?
ANSWER:
(A) For a true random sample, all possible gas stations in the LA metro area must
have an equal chance of being sampled. In this case, only the stations on her
route home were sampled, although they do at least represent a variety of settings
(different parts of town). Given her time constraints, this sample may suffice,
though.
(B) The sample mean is $3.23.
(C) Using the sample mean and sample standard deviation (0.185), the 95%
confidence interval for the true mean price is approximately $3.15/gallon to
$3.30/gallon.
(D) The sample, in addition to perhaps not being truly random, may also be too
small to justify using the assumptions used calculating the range in (C). Typically
we want n>30 unless the population data is approximately normal as well.
POINTS: 1
Auditors of Old Kent Bank are interested in comparing the reported value of customer savings account
balances with their own findings regarding the actual value of such assets. Rather than reviewing the records
of each savings account at the bank, the auditors decide to examine a representative sample of savings
account balances. The frame from which they will sample is shown below.
$75.30 $614.11 $696.34 $572.08

$748.23 $21.20 $99.79 $1,233.38
$530.40 $378.37 $596.14 $239.65
$2,995.38 $1,069.06 $929.80 $259.98
$123.65 $68.92 $192.35 $754.45
$309.00 $163.31 $71.75 $904.92
$40.70 $161.12 $459.38 $171.48
$402.81 $157.44 $41.81 $87.08
$489.97 $468.12 $400.57 $319.40
$533.82 $1,801.35 $1,666.50 $37.16
$85.92 $91.43 $193.14 $106.95
$214.62 $10.62 $582.18 $39.65
$123.66 $76.33 $291.73 $398.48
$659.18 $101.24 $1,740.47 $322.26
$1,509.34 $1,599.04 $358.62 $492.05
$1,052.68 $596.33 $100.54 $1,288.70
$421.46 $1,799.51 $581.21 $571.63
$180.58 $98.82 $358.68 $38.93
$874.78 $2,761.93 $750.44 $376.60
$269.48 $456.79 $216.81 $305.49
89. (A) What sample size would be required for the auditors to be approximately 95% sure that their estimate
of the average savings account balance at this bank is within $150 of the true mean? Assume that their best
estimate of the population standard deviation is $300.
(B) Choose a simple random sample of the size found in (A).
(C) Compute the observed sampling error based on the sample you have drawn from the population. How
does the actual sampling error compare to the maximum possible probable absolute error established in (A)?
Explain
ANSWER: (A)
(B) The simple random sample of size 16 was generated using StatTool’s
Random Sample tool in the Data Utilities section. Next, the VLOOKUP function
was used to place the appropriate balances next to the customers that were
selected to be included in the sample. The following sample was obtained.
Customer Balance
40 456.79
51 193.14
63 239.65
37 1799.51
8 402.81
20 269.48
42 99.79
39 2761.93
78 38.93
3 530.40
35 1599.04
64 259.98
14 659.18
32 10.62
11 85.92
68 87.08
(C)
Based on the above sample (results will differ):
The sample mean = $593.39
The frame mean = $537.31
The sampling error is the difference between the sample mean and the frame
mean. In this case, the sampling error is $56.08, which is much less than the
maximum probable absolute error of $150. This is the case because the maximum
probable absolute error is, by definition, the largest possible amount that will still
give 95% certainty. As illustrated here, the observed sampling error is smaller than
the largest possible error.
POINTS: 1
90. A cannery claims that its sardine cans have a net weight of 8 oz., with a standard deviation of 0.1 oz. You
take a simple random sample of 30 cans and encounter a sample mean of 7.85 oz. Does this provide
convincing evidence to reject the claimed weight of 8 oz?
ANSWER: The sampling distribution of is normal (since n30) with mean and standard
deviation given by E() = = 8, and SE() = = 0.0183, respectively.
Therefore, P( < 7.8) = P(Z < -8.2) = 0. If the claim were true, such a sample would
not be encountered. We have convincing evidence to reject the cannery’s claim.
POINTS: 1
The manager of a local fast-food restaurant is interested in improving service provided to customers who use
the restaurant’s drive-up window. As a first step in the process, the manager asks his assistant to record the
time (in minutes) it takes to serve a large number of customers at the final window in the facility’s drive-up
system. The given frame in this case is 200 customer service times observed during the busiest hour of the
day for this fast-food restaurant. The frame of 200 service times yielded a mean of 0.881. A simple random
sample of 10 from this frame is presented below.
Customer 1 2 3 4 5 6 7 8 9 10
Service time 1.02 1.18 0.95 0.90 0.85 1.10 0.75 0.60 1.25 1.00
91. (A) Compute the point estimate of the population mean from the sample above. What is the sampling error
in this case? Assume that the population consists of the given 200 customer service times.
(B) Compute the point estimate of the population standard deviation from the sample above.
(C) Should you use the finite population correction (fpc) factor to estimate the standard error of ? Explain. If
your answer is yes, what is the value of the fpc?
(D) Determine a good approximation to the standard error of the mean in this case.
ANSWER: (A) Sample mean = 0.96. Then, sampling error = 0.96 – 0.881 = 0.079
(B) s = 0.1963
(C) Yes, we should use the finite population correction factor in this case, since a
sample size of 10 is 5% of population size of 200. Here fpc = = 0.9771.
(D)
POINTS: 1
A manager at a battery manufacturing company wants to estimate the average number of defective (or dead)
batteries contained in a box shipped by the company. Production personnel at this company have recorded the
number of defective batteries found in each of the 2000 boxes shipped in the past week.
92. (A) What sample size would be required for the production personnel to be approximately 95% confident
that their estimate of the average number of defective batteries per box is within 0.3 unit of the true mean?
Assume that the best estimate of the population standard deviation ( ) is 0.9 defective batteries per box.
(B) How does your answer to (A) change if the production personnel want their estimate to be within 0.5 unit of
the actual population mean? Evaluate the tradeoff between required accuracy and sample size requirement for
this case and the case in (A).
ANSWER: (A)
(B) In this case, . This shows that
we need almost 3 times as many observations to reduce the absolute error from
0.5 to 0.3 units. However, 36 is still a relatively small sample, and may be with it to
keep the absolute error within 0.3 units.
POINTS: 1
DIFFICULTY: Challenging | Bloom’s: Analyze
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34. Nontruthful responses is an example of a nonsampling error.

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40. A judgmental sample is a sample in which the

41. Potential sample members, called sampling units, may be

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42. In sampling, a population is

43. A list of all members of the population is called a

47. Identifiable subpopulations within a population are called

48. The defining property of a simple random sample is that

51. Which statement is true of proportional sample sizes?

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54. If systematic sampling is chosen as the sampling technique, it is probably because

55. Which of the following statements correctly describe estimation?

56. A sampling error is the result of

57. The standard deviation of is usually called the

59. The accuracy of the point estimate is measured by its

61. Non-truthful response is a particular problem when

62. Measurement error occurs when

64. Sampling error is evident when

65. The opportunity for sampling error is decreased by

68. Which of the following statements are correct?

69. An unbiased estimator is a sample statistic

70. Which of the following statements is correct?

71. The approximate standard error of the sample mean is calculated as

72. The approximate 95% confidence interval for a population mean is

a. N is any finite size.

74. The central limit theorem (CLT) is generally valid for

76. The mean of the sampling distribution of always equals:

77. The opportunity for nonsampling error is larger when the

Subjective Short Answer

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Current annual salaries:

Number of years of post-secondary education:

$38,450 $109,285 $87,489 $49,638 $76,927 $90,473

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HOUSE # BEDROOMS PRICE

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$75.30 $614.11 $696.34 $572.08

(B) Choose a simple random sample of the size found in (A).

Chapter 07: Sampling and Sampling Distributions

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