MATH 52540 STATISTICS –WORKSHEET
CHAPTER 10-11 Statistics for Management and Economics (GERALD KELLER)
CHAPTER 10
a. = NORM.S.INV(0.05) = 1.645
b. = NORM.S.INV(0.005) = 2.576
c. = NORM.S.INV(0.025) = 1.96
d. = NORM.S.INV(0.10) = 1.282
Problem 10.13 Pg 325
a. A statistics practitioner took a random sample of 50 observations from a population with
a standard deviation of 25 and computed the sample mean to be 100. Estimate the
population mean with 90% Confidence.
b. Repeat using 95% Confidence Level.
c. Repeat using a 99% Confidence Level.
d. Describe the effect on the Confidence interval estimate of increasing the confidence
level.
10.13 a. x z / 2 / n = 100 1.645(25/ 50 ) = 100 5.82; LCL = 94.18, UCL = 105.82
b. x z / 2 / n = 100 1.96(25/ 50 ) = 100 6.93; LCL = 93.07, UCL = 106.93
c. x z / 2 / n = 100 2.575(25/ 50 ) = 100 9.11; LCL = 90.89, UCL = 109.11
d. The interval widens.
Problem 10.29, Pg 326
The number of cars sold annually by used car salespeople is normally distributed with a standard
deviation of 15. A random sample of 15 salespeople was taken, and the number of cars each sold
is listed here. Find the 95% confidence interval estimate of the population mean. Interpret the
interval estimate.
79 43 58 66 101 63 79 33 58 71 60 101 74 55 88
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x z / 2 / n = 68.6 1.96(15/ 15 ) = 68.6 7.59; LCL = 61.01, UCL = 76.19
We estimate that the mean number of cars sold annually by all used car salespersons lies between
61.01 and 76.19. This type of estimate is correct 95% of the time.
Problem 10.54
a. A statistics practitioner would line to estimate a population mean to within 10 units. The
confidence level has been set at 95% and 𝜎 = 200. Determine the sample size.
b. Suppose that the sample mean was calculated as 500. Estimate the population mean with
95% Confidence.
z
2 2
1.96 200
10.54 a. n / 2 = = 1,537
B 10
b. 500 10
When 𝜎 𝑖𝑠 𝑢𝑛𝑘𝑛𝑜𝑤𝑛
𝜶 .𝟏𝟎
n= 6 df = n-1 = 5 = = 𝟎. 𝟎𝟓
𝟐 𝟐
a. Use excel Data > Data analysis > Descriptive statistics 5 ±𝟏. 𝟖𝟖 (3.12, 6.88)
b. 5 ±𝟐. 𝟑𝟗 (2.61, 7.39)
c. 5 ±𝟑. 𝟕𝟓 (1.25, 8.75)
d. Decreased width
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Confidence interval for p.
a. Yes 225*0.46 = 103.5 >15, 225*0.54 = 121.5>15
b. .46 ±1.96√. 46 ∗ .54⁄225 = .46 ±0.065= (0.395,0.525)
c. We are 95% confident that the true population proportion is between 0.395 and 0. 525
d. 95% of all similarly constructed intervals contain the true population proportion
CHAPTER 11
Problem 11.13 Pg 354
Calculate the p-value, and determine whether there is sufficient evidence to infer research
objective:
Research Objective: The population mean is less than 250.
𝜎 = 40, 𝑛 = 70, 𝑥̅ = 240.
𝐻0 : 𝜇 ≥ 250 𝐻1 : 𝜇 < 250 (𝑐𝑙𝑎𝑖𝑚)
x 240 250
z 2.09
/ n 40 / 70
p-value = P(Z < -2.09) = .0182 (NORM.S.DIST (-2.09,TRUE))
Problem 11.36 Pg 356
A business student claims that, on average, an MBA student is required to prepare more than five
cases per week. To examine the claim, a statistics professor asks a random sample of 10 MBA
students to report the number of cases they prepare weekly. The results are exhibited here. Can
the professor conclude at the 5% significance level that the claim is true, assuming that the
number of cases is normally distributed with a standard deviation of 1.5?
2 7 4 8 9 5 11 3 7 4.
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H 0 : ≤5
H1 : > 5
x 65
z 2.11
/ n 1.5 / 10
Z-crit = NORM.S.INV(0.05) = 1.96 (Right tailed test)
Hence Z-crit =1.96< 2.11 = Test statistic (Reject the null hypothesis).
p-value = P(Z > 2.11) = 1 – .9826 = .0174 ( 1- (NORM.S.DIST(-2.11, TRUE)).
p-value = 0.0174< 0.05 = 𝛼. Reject the null hypothesis.
There is enough evidence to infer that the mean is greater than 5 cases.
CHAPTER 12
a. 𝐻0 : 𝜇 ≥ 6 𝐻1 : 𝜇 < 6 (left tailed test). Critical value is =T.INV(0.05,4)=-2.131
4.8−6
𝑡 = 1.3 = −2.06 > tcrit = -2.131. Fail to Reject the null hypothesis.
⁄
√5
b. 𝐻0 : 𝜇 = 6 𝐻1 : 𝜇 ≠ 6 (two tailed test). Critical value is =T.INV(0.025,4)=-2.776
4.8−6
𝑡 = 1.3 = −2.06 > tcrit = -2.776. Fail to Reject the null hypothesis.
⁄
√5
c. P-value = P(t< -2.06) = =T.DIST(-2.06,4,TRUE)= 0.054 (left tailed test)
d. P-value =2* P(t< -2.06) =2* =T.DIST(-2.06,4,TRUE)= 2*0.054=.108 (right tailed test)
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Problem 12.23 Pg 384
A courier service advertises that its average delivery time is less than 6 hours for local deliveries.
A random sample of times for 12 deliveries to an address across town was recorded. These data
are shown here. Is this sufficient evidence to support the courier’s advertisement, at 5% level of
significance?
3.03 6.33 6.50 5.22 3.56 6.76
7.98 4.82 7.96 4.54 5.09 6.46
H0: µ ≥ 6
H1: µ < 6 (Left tailed)
a Rejection region: t t ,n 1 t .05,11 = –1.796= (T.INV(0.05,11))
x 5.69 6
t .68, p-value = T.DIST (-0.68,11,TRUE) = .2554 > 0.05 = 𝛼. Fail to reject
s/ n 1.58 / 12
the null hypothesis. There is not enough evidence to support the courier’s advertisement.
Use excel: Data> Data analysis> t-test Two sample assuming unequal variances).
3.03 6
t-Test: Two-Sample Assuming Unequal Variances
6.33 6
6.5 6
Variable 1 Variable 2
5.22 6
Mean 5.6875 6
3.56 6
Variance 2.497565909 0
6.76 6 Observations 12 12
7.98 6 Hypothesized Mean Difference 0
4.82 6 df 11
7.96 6 t Stat -0.68498674
4.54 6 P(T<=t) one-tail 0.253764693
5.09 6 t Critical one-tail 1.795884819
6.46 6 P(T<=t) two-tail 0.507529385
t Critical two-tail 2.20098516
Problem 12.97 pg 408
What type of educational background do CEOs have? In one survey, 344 CEOS of medium and
large companies were asked whether they had an MBA degree. There were 97 MBAs. Estimate
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with 95% confidence the proportion of all CEOs of medium and large companies who have
MBAs.
p̂ = 97/344 = .28
p̂ z / 2 p̂(1 p̂) / n = .28 ±1.96 .28(1 .28) / 344 = .28 ± .0474; LCL = .2326, UCL = .3274
Problem 12.108 pg 409
The results of an annual Claimant Satisfaction Survey of policyholders who have had a claim
with State Farm Insurance Company revealed a 90% satisfaction rate for claim service. To check
the accuracy of this claim, a random sample of state Farm claimants were asked to rate whether
they were satisfied with the quality of the service ( 1 = Satisfied and 2 = Unsatisfied). Can we
infer that the satisfaction rate is less than 90%?
H0: p ≥ .90
H1: p < .90
p̂ p .8644 .90
z = = –1.58, p-value = P(Z < –1.58) = .0571. There is not enough evidence
p(1 p) / n .90(1 .90) / 177
to infer that the satisfaction rate is less than 90%.
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