Tutorial 8

Chapter 8 Interval Estimation

Khondker Aktaruzzaman

Problem 1
A simple random sample of 40 items resulted in a sample mean of 25. The population
standard deviation is σ = 5.
a. What is the standard error of the mean σ x ?
b. At 95% confidence, what is the margin of error?

Problem 2
A simple random sample of 50 items from a population with σ = 6 resulted in a sample
mean of 32.
a. Provide a 90% confidence interval for the population mean.
b. Provide a 95% confidence interval for the population mean.
c. Provide a 99% confidence interval for the population mean.

Problem 3
Studies show that massage therapy has a variety of health benefits and it is not too
expensive (The Wall Street Journal, March 13, 2012). A sample of 10 typical one-hour
massage therapy sessions showed an average charge of $59. The population standard
deviation for a one-hour session is σ = $5.50.
a. What assumptions about the population should we be willing to make if a margin of
error is desired?
b. Using 95% confidence, what is the margin of error?
c. Using 99% confidence, what is the margin of error?

Problem 4
Costs are rising for all kinds of medical care. The mean monthly rent at assisted-living
facilities was reported to have increased 17% over the last five years to $3486 (The
Wall Street Journal, October 27, 2012). Assume this cost estimate is based on a sample
of 120 facilities and, from past studies, it can be assumed that the population standard
deviation is σ = $650.
a. Develop a 90% confidence interval estimate of the population mean monthly rent.
b. Develop a 95% confidence interval estimate of the population mean monthly rent.
c. Develop a 99% confidence interval estimate of the population mean monthly rent.
d. What happens to the width of the confidence interval as the confidence level is
increased? Does this seem reasonable? Explain.

Problem 5
Find the t value(s) for each of the following cases.
a. Upper tail area of .025 with 12 degrees of freedom
b. Lower tail area of .05 with 50 degrees of freedom
c. Upper tail area of .01 with 30 degrees of freedom
d. Where 90% of the area falls between these two t values with 25 degrees of freedom
e. Where 95% of the area falls between these two t values with 45 degrees of freedom

Problem 6
The following sample data are from a normal population: 10, 8, 12, 15, 13, 11, 6, 5.
a. What is the point estimate of the population mean?
b. What is the point estimate of the population standard deviation?
c. With 95% confidence, what is the margin of error for the estimation of the population
mean?
d. What is the 95% confidence interval for the population mean?

Problem 7
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.

Problem 8
How large a sample should be selected to provide a 95% confidence interval with a
margin of error of 10? Assume that the population standard deviation is 40.

Problem 9
A survey of 100 adults in Malaysia found that 40 of them have a college degree.
Construct a 95% confidence interval for the proportion of adults in Malaysia who have a
college degree.