Sampling Error

• Random samples vary, so an estimator is a random variable. The

sampling error is the difference between an estimate and the
corresponding population parameter. For example, for the population
mean:
UNIFORM DIST.
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A real estate agent needs to estimate the average value of a residential property of a

given size in a certain area. The real estate agent believes that the standard deviation

of the property values is $ δ = 5,500.00 and that property values are approximately

normally distributed. A random sample of 16 units gives a sample mean of

$89,673.12. Give a 95% confidence interval for the average value of all properties of

this kind
 
 
 
 6-81

A marketing research firm wants to estimate the share that foreign companies have in the American market for certain products. A random sample of 100

consumers is obtained, and it is found that 34 people in the sample are users of foreign-made products; the rest are users of domestic products. Give a 95%

confidence interval for the share of foreign products in this market.

 6-82

A marketing research firm wants to estimate the share that foreign companies have in the American market for certain products. A

random sample of 100 consumers is obtained, and it is found that 34 people in the sample are users of foreign-made products; the

rest are users of domestic products. Give a 95% confidence interval for the share of foreign products in this market.

Thus, the firm may be 95% confident that foreign manufacturers control

anywhere from 24.72% to 43.28% of the market.

A maker of portable exercise equipment, designed for health-conscious people who

travel too frequently to use a regular athletic club, wants to estimate the proportion of

traveling business people who may be interested in the product. A random sample of

120 traveling business people indicates that 28 may be interested in purchasing the

portable fitness equipment. Give a 95% confidence interval for the proportion of

all traveling business people who may be interested in the product

[0.157; 0.309]