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Applied Statistics in Business and

Economics 4th Edition Doane Seward


0073521485 9780073521480
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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 False

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

True False

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

True False

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


sampling distribution.

True False

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


standard error.

True False

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


interval, ceteris paribus.

True False
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 False

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

True False

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.

True False

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 False

11. The Central Limit Theorem guarantees an approximately normal sampling


distribution when n is sufficiently large.

True False
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 False

13. As n increases, the width of the confidence interval will decrease, ceteris
paribus.

True False

14. As n increases, the standard error decreases.

True False

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


paribus.

True False

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 False
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 False

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 False

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 False

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


when n ≥ 30.

True False

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

True False

22. The distribution of the sample proportion p = x/n is normal when n ≥ 30.

True False
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