Martin Luther University Halle-Wittenberg Statistics II

Chair of Econometrics

Exercise Set 7 - Solutions

Winter Semester 2023/24
1. A tire manufacturer tries to estimate the average number of miles (x) that may be driven on
a tire of a certain type before the tire wears out. A random sample of 31 tires is chosen;
the tires are driven on until they wear out, and the number of miles driven on each tire is
recorded. The data, in thousands of miles, are as follows: x̄ = 30.56 and s2 = 33.35.
Give a 99% confidence interval for the expected number and the variance of miles and that
may be driven on a tire of this kind.

• t0.005,30 = 2.750
• confidence interval for µ:
– ll: x̄ − t α2 ,n−1 √sn = 30.560 − 2.750 5.775
√
31
= 27.71
– ul: x̄ + t α2 ,n−1 √sn = 30.565 + 2.750 5.775
√
31
= 33.41
– CI: [27.71 , 33.41]
• χ20.005,30 = 53.672 and χ20.995,30 = 13.787
• confidence interval for σ2 :
n−1 30
– ll: χ20.005,30
s2 = 53.672 · 33.35 = 18.64
n−1 30
– ul: χ20.995,30
s2 = 13.787 · 33.35 = 72.57
– CI: [18.64 , 72.57]

2. A machine produces 50 gr of chocolate bars. The manufacturer knows from prior surveys
that the weight (in gr) is approximately distributed normal. A sample of size n = 5 gives the
following results:

55, 57, 53, 56, 54.

Find the 95% confidence interval for the mean weight µ of the chocolate bars which the
machine produces.

• t0.025,4 = 2.7764
• confidence interval for µ:
55+57+53+56+54
– x̄ = ∑ni=1 xi = 5 = 2755 = 55
1 (55−55) +(57−55)2 +...+(54−55)2
2
10
– s2 = n−1 ∑ni=1 (xi − x̄)2 = 4 = 4 = 2.5
√
– s = s2 = 1.5811
– ll: x̄ − t α2 ,d f √sn
55 − 2.7764 1.5811
√
5
= 55 − 2.7764 · 0.7071 = 53.0368
– ul: x̄ + t α2 ,d f √sn
55 + 2.7764 1.5811
√
5
= 55 + 2.7764 · 0.7071 = 56.9632
– CI: [53.04 , 56.96]

1
3. A statistician chooses 27 randomly selected dates, and when examining the occupancy
records of a particular motel for those dates, finds a standard deviation of 5.86 rooms rented.
If the number of rooms rented is normally distributed, find the 95% confidence interval for
the population standard deviation of the number of rooms rented.

• confidence interval for σ2 :

– χ20.025,26 = 13.844 and χ20.975,26 = 41.923
n−1 2 26
– ll: χ22
s = 41.923 · 5.862 = 21.297
n−1 2 26
– ul: χ21
s · 5.862 = 64.493
= 13.844
√ √
– CI for the standard error: [ 21.2968 , 64.4926]=[4.61 , 8.03]

4. In a research project, researchers wish to estimate, with 95% confidence, the proportion of
people who are dependent on social assistance. In a previous study, the social assistance
rate was estimated to be 9%. The researchers want to be accurate within 1% of the true
proportion. Find the minimum sample size necessary.

• z0.025 = 1.96
• B2 = 0.012
•
p(1 − p) 0.09 · 0.91 0.0819
n = z20.025 2
= 1.96002 · 2
= 3.8416 · = 3146.2704 ≈ 3147
B 0.01 0.0001

• The researchers should interview a random sample of at least 3147 people.