Question 1: Height of Dutch Men.
Males in the Netherlands are the tallest, on average, in the
world with an average height of 183 centimeters (cm) (BBC News website). Assume that the
height of men in the Netherlands is normally distributed with a mean of 183 cm and a standard
deviation of 10.5 cm.
Solution:
i. What is the probability that a Dutch male is shorter than 175 cm?
Given that
X=175cm
μ=183 cm
σ =10.5 cm
Using the Z-score formula:
Z = (X - μ) / σ
Putting values in the formula;
Z = (175 - 183) / 10.5
Z = -0.76
We can then find the cumulative probability using a Z-table or a statistical calculator. From the Z-table, we
find that the cumulative probability for a Z-score of -0.76 is approximately .2764
=0.5-0.2564
=0.2236
Therefore, the probability that a Dutch male is shorter than 175 cm is approximately 0.2236, or 22.36%.
ii. What is the probability that a Dutch male is taller than 195 cm?
Given that
X= 195cm
μ=183 cm
σ =10.5 cm
Using the Z-score formula:
Z = (X - μ) / σ
Putting values in the formula;
Z = (195 - 183) / 10.5
Z = 1.14
Using the Z-table or a statistical calculator, we find that the cumulative probability for a Z-score of 1.14 is
approximately 0.3729
=0.5-0.3729
Therefore, the probability that a Dutch male is taller than 195 cm is approximately 0.1271, or 12.71%.
iii. What is the probability that a Dutch male is between 173 and 193 cm?
Given that
x 1= 173cm
x 2= 193cm
μ=183 cm
σ =10.5 cm
Using the Z-score formula: For x 1
Z1 = ( x 1- μ) / σ
Using the Z-score formula: For x 2
Z 2 = ( x 2 - μ) / σ
Putting values in the formula;
Z1 = (173 - 183) / 10.5
= -0.95 Z2
Z 2 = (193 - 183) / 10.5
= 0.95
Using the Z-table, the cumulative probability for a Z-score of -0.95 is approximately 0.3289, and the
cumulative probability for a Z-score of 0.95 is approximately 0..3289
=0.3289+0.3289
=0.6578
The probability that a Dutch male is between 173 and 193 cm is the difference between these two probabilities
is0.6578, or 65.78%.
iv. Out of a random sample of 1000 Dutchme, how many would we expect to be taller than 190 cm?
The expected value is given by the mean of the distribution, which is 183 cm. In a sample of 1000, we would expect
the same proportion of individuals to be taller than 190 cm as in the entire population.
So, the expected number of Dutch males taller than 190 cm in a random sample of 1000 would be 1000 *
(probability of being taller than 190 cm).
To find the probability of being taller than 190 cm, we can follow the steps from part ii.
Z = (190 - 183) / 10.5 = 0.67
Using the Z-table or a statistical calculator, we find that the cumulative probability for a Z-score of 0.67 is
approximately 0.2486
=0.5-0.2486
=0.2514
Therefore, the expected number of Dutch males taller than 190 cm in a random sample of 1000 would be 1000 *
0.2486= 251
v. Interpret the findings you got in parts I, ii, iii, and iv.
Interpret;
i Probability that a Dutch male is shorter than 175 cm is approximately 0.2236, or 22.36% This means
that about 22.36% of Dutch males have a height of less than 175 cm.
ii The probability that a Dutch male is taller than 195 cm is approximately 0.1271, or 12.71%.
iii. The probability that a Dutch male is between 173 and 193 cm is 0.6578, or 65.78%.
iv. The expected number of Dutch males taller than 190 cm in a random sample of 1000 would be 1000 *
0.2486= 251
Question 2: Labor Day Travel Costs. The American Automobile Association (AAA) reported
that families planning to travel over the Labor Day weekend would spend an average of $749.
Assume that the amount spent is normally distributed with a standard deviation of $225.
a. What is the probability of family expenses for the weekend being less than $400?
Solution:
Given that
X= 400
μ=749
σ =225
Using the Z-score formula:
Z = (X - μ) / σ
Putting values in the formula;
Z = (400 - 749) / 225
Z = -1.55
From the Z-table, the probability for a Z-score of -1.55 is approximately 0.0606.
Therefore, the probability of family expenses for the weekend being less than $400 is approximately 0.0606, or
6.06%.
b. To find the probability of family expenses for the weekend being $800 or more, we need to find
the cumulative probability beyond $800.
Given that
X= 800
μ=749
σ =225
Using the Z-score formula:
Z = (X - μ) / σ
Putting values in the formula;
Z = (800 - 749) / 225
Z = 0.227
Using the Z-table or a statistical calculator, we find that the cumulative probability for a Z-score of 0.227 is
approximately 0.5896.
Therefore, the probability of family expenses for the weekend being $800 or more is approximately 0.5896, or
58.96%.
c. To find the probability that family expenses for the weekend will be between $500 and $1,000, we
need to find the cumulative probability between those two values.
Given that
x 1= 500
x 2= 1000
μ=749
σ =225
Using the Z-score formula: For x 1
Z1 = ( x 1- μ) / σ
Using the Z-score formula: For x 2
Z 2 = ( x 2 - μ) / σ
Putting values in the formula;
Z1 = (500 - 749) / 225
= -1.11
Z 2 = (1000 - 749) / 225
= 1.12
the probability for a Z-score of -1.11 is approximately 0.1325, and the cumulative probability for a Z-score of 1.12 is
approximately 0.8686.
The probability that family expenses for the weekend will be between $500 and $1,000 is the difference between
these two probabilities: 0.8686 - 0.1325 = 0.7361, or 73.61%.
Question 3: The U.S. Energy Information Administration (US EIA) reported that the average
price for a gallon of regular gasoline is $2.62. The US EIA updates its estimates of average gas
prices on a weekly basis. Assume the standard deviation is $.25 for the price of a gallon of
regular gasoline and recommend the appropriate sample size for the US EIA to use if they wish
to report each of the following margins of error at 95% confidence.
a. The desired margin of error is $.10.
To determine the appropriate sample size for the desired margin of error of $0.10 at a 95% confidence level, we can
use the formula for sample size calculation:
n = (Z * σ / E)²
Where:
n = sample size
Z = Z-score corresponding to the desired confidence level (in this case, for 95% confidence, Z ≈ 1.96)
σ = standard deviation
E = desired margin of error
Plugging in the values:
n = (1.96 * 0.25 / 0.10)²
n ≈ (0.49 / 0.10)²
n ≈ 4.9²
n ≈ 24.01
Rounding up to the nearest whole number, the appropriate sample size for the US EIA to use to achieve a desired
margin of error of $0.10 at a 95% confidence level would be 25.
b. The desired margin of error is $.07
To determine the appropriate sample size for the desired margin of error of $0.07 at a 95% confidence level, we can
use the same formula as before:
n = (Z * σ / E)²
Where:
n = sample size
Z = Z-score corresponding to the desired confidence level (in this case, for 95% confidence, Z ≈ 1.96)
σ = standard deviation
E = desired margin of error
Plugging in the values:
n = (1.96 * 0.25 / 0.07)²
n ≈ (0.49 / 0.07)²
n ≈ 6.99²
n ≈ 48.93
Rounding up to the nearest whole number, the appropriate sample size for the US EIA to use to achieve a desired
margin of error of $0.07 at a 95% confidence level would be 49.
Question 4: In the spring of 2017, the Consumer Reports National Research Center conducted a survey
of 1007 adults to learn about their major health-care concerns. The survey results showed that 574 of the
respondents lack confidence they will be able to afford health insurance in the future.
a. What is the point estimate of the population proportion of adults who lack confidence they will
be able to afford health insurance in the future.
The point estimate of the population proportion of adults who lack confidence they will be able to afford
health insurance in the future can be calculated using the sample proportion.
Point Estimate (p̂) = Number of respondents lacking confidence / Total number of respondents
In this case, the number of respondents lacking confidence is 574, and the total number of respondents
is 1007.
Point Estimate (p̂) = 574 / 1007 ≈ 0.5699
Therefore, the point estimate of the population proportion of adults who lack confidence they will be
able to afford health insurance in the future is approximately 0.5699 or 56.99%.
b. At 90% confidence, what is the margin of error?
To calculate the margin of error at a 90% confidence level, we can use the formula:
Margin of Error = Z * sqrt((p̂ * (1 - p̂)) / n)
Where:
Z = Z-score corresponding to the desired confidence level (for 90% confidence, Z ≈ 1.645)
p̂ = point estimate of the population proportion
n = sample size
Given that the point estimate of the population proportion is p̂ ≈ 0.5699 and the sample size is n = 1007,
we can calculate the margin of error as follows:
Margin of Error = 1.645 * sqrt((0.5699 * (1 - 0.5699)) / 1007)
Margin of Error ≈ 1.645 * sqrt(0.2438 / 1007)
Margin of Error ≈ 1.645 * 0.0156
Margin of Error ≈ 0.0256
Therefore, at a 90% confidence level, the margin of error is approximately 0.0256 or 2.56%.
To develop a 95% confidence interval for the population proportion of adults who lack confidence they
will be able to afford health insurance in the future, we can use the same formula as before:
Confidence Interval = p̂ ± Z * sqrt((p̂ * (1 - p̂)) / n)
Where:
p̂ = point estimate of the population proportion
Z = Z-score corresponding to the desired confidence level (for 95% confidence, Z ≈ 1.96)
n = sample size
Given that the point estimate of the population proportion is p̂ ≈ 0.5699, the sample size is n = 1007, and
the Z-score for 95% confidence is approximately 1.96, we can calculate the confidence interval as
follows:
Confidence Interval = 0.5699 ± 1.96 * sqrt((0.5699 * (1 - 0.5699)) / 1007)
Confidence Interval = 0.5699 ± 1.96 * sqrt(0.2438 / 1007)
Confidence Interval ≈ 0.5699 ± 1.96 * 0.0156
Confidence Interval ≈ 0.5699 ± 0.0306
Confidence Interval ≈ (0.5393, 0.6005)
Therefore, at a 95% confidence level, the confidence interval for the population proportion of adults
who lack confidence they will be able to afford health insurance in the future is approximately (0.5393,
0.6005).
Question: Metropolitan Research, Inc., a consumer research organization, conducts
surveys designed to evaluate a wide variety of products and services available to
consumers. In one particular study, Metropolitan looked at consumer satisfaction with the
performance of automobiles produced by a major Detroit manufacturer. A questionnaire
sent to owners of one of the manufacturer’s full-sized cars revealed several complaints
about early transmission problems. To learn more about the transmission failures,
Metropolitan used a sample of actual transmission repairs provided by a transmission
repair firm in the Detroit area. The following data show the actual number of miles driven
for 50 vehicles at the time of transmission failure.
85,092 32,609 59,465 77,437 32,534 64,090 32,464 59,902 39,323 89,641 94,219 116,803
92,857 63,436 65,605 85,861 64,342 61,978 67,998 59,817 101,769 95,774 121,352 69,568
74,276 66,998 40,001 72,069 25,066 77,098 69,922 35,662 74,425 67,202 118,444 53,500
79,294 64,544 86,813 116,269 37,831 89,341 73,341 85,288 138,114 53,402 85,586 82,256
77,539 88,798
Managerial Report
1. Use appropriate descriptive statistics to summarize the transmission failure data
Mean = (85,092 + 32,609 + 59,465 + ... + 88,798) / 50
Mean = 71,839.72
σ= 28,424.49
2. Develop a 95% confidence interval for the mean number of miles driven until
transmission failure for the population of automobiles with transmission failure. Provide a
managerial interpretation of the interval estimate.
Confidence Interval = (Sample Mean) ± (Critical Value) * (Standard Error)
