REVIEW CHAPTER 11

1. The residuals represent_____________ (a)

a. the difference between the actual Y values and the predicted Y values. b.

the difference between the actual Y values and the mean of Y.

c. the square root of the slope.

d. the predicted value of Y for the average X value.

e. None of the other choices is correct

2. Suppose we have the following information from a simple regression n = 20, ∑ , ∑ ,

∑ , ∑ . Find the total sum of squares, SST. (173.37)

3. The following is Excel output of a simple regression model.

What is the value of the test statistic for testing whether the regression intercept
coefficient is equal to 10? (0.37)

4. Given the equation of a regression line ̂ , determine whether there is a positive linear
correlation or a negative linear correlation. (positive linear correlation)

5. Suppose that you are interested in the relationship between the return on a stock this
year (Y), compared to the return the year before (X). From a sample of 12 firms, you
have collected the following information:
Σxi = 106; Σyi = 165; Σxiyi = 2934; Σ(xi)2= 1968; Σ(yi)2= 4783.
What is the sample correlation coefficient between X and Y? (0.917)

6. Eight students in a mathematics anxiety workshop are given a questionnaire on math

anxiety (y) and an inventory test on basic arithmetic skill (x). Given that

Σxi = 492; Σyi = 379; Σxiyi = 21087; Σ(xi)2= 32894; Σ(yi)2= 20115.
Compute the sample correlation coefficient. (-0.93)

7. Given a sample with r = 0.833, n = 12, and α = 0.05, determine the test statistic t0
necessary to test the claim ρ = 0. Round answers to three decimal places. (4.761)

8. A simple regression model has the form: ̂ = 10 + 2x. As x increases by one unit, then the
value of y will increase by: (2 units)

9. The height y and base diameter x of four trees of a certain variety produced the
following data
x 2 2 3 5

y 30 40 90 100

Compute the correlation coefficient. (0.873)

10. A study of the effect on mileage obtained with different sizes of metering jets in a
particular model of a compact auto produced the following data
Size of jet x 3 4 5

Miles per gallon y 28 30 23

Find the equation of the regression line. ( ̂ = 37 – 2.5x)

11. An insurance company analyst is interested in analyzing the dollar value of damage in
automobile accidents. She collects data from 115 accidents, and records the amount of
damage as well as the age of the driver. The results of her regression analysis are listed
below.
On average, what would be the dollar value of an accident involving a 30-year-old
driver? ($12,824.722)

12. A recent study of 60 shoppers showed that the correlation between the time spent in the
store and the dollars spent was 0.235. Using a significance level equal to 0.01, the critical
value for the test to determine whether the true population correlation coefficient is zero is:
(2.66)

̂
13. In the sample linear regression, the estimated standard error of the slope is ______ (

√ ̂

14. A company has just brought out an annual report in which the capital investment and
profits were given for the past few years.
Capital investment x 10 12 18 25

Profits x 15 14 23 38

Assume that an unbiased estimator for variance of the error is 8.34.

Find an estimated standard error for slope of regression line. (0.71)

 REVIEW CHAPTER 10

1. Two different formulations of an oxygenated motor fuel are being tested to study their
road octane numbers. The variance of road octane number for formulation 1 is σ12 = 1.5,
and for formulation 2 it is σ22= 1.2. Two random samples of size n1 = 15 and n2 = 20 are
tested and the mean road octane numbers observed are x1 = 89.6 and x2 =92.5. Construct a
95% confidence interval for the difference in the means of two populations. (-3.684, -2.116)

Let z0.025 = 1.96, z0.05 = 1.64.

2. Find the test statistic, t, to test the claim that µ1 > µ2. Two samples are randomly selected
and come from populations that are normal with the same variance. The sample statistics
are given below. n1 = 14, x1 = 3, s1 = 2.5, n2 = 12, x2 = 4, s2 = 2.8. -0.96

3. In an election, exit polls provided the following results: 53% voted for one candidate and
46% voted for the other candidate. The number of respondents is 2020. Construct a 95%
confidence interval for the difference in the proportions of two populations. (0.039, 0.101)

Let z0.025 = 1.96, z0.05 = 1.64.

4. Assuming that the weights (kg) of two groups of children with non-smoking and smoking
mothers both follow normal distributions with standard deviations of 0.576 and 0.776.
respectively. Testing on the corresponding samples gives us the following results:

n1 = 20, x1 = 3.4; n2 =17, x2 = 3.2.

a) With a= 0.05. What is the P-value when testing the hypothesis that both groups have the
same weight?
Let P(Z<0.86)= 0.805. P(Z<0.88) = 0.810, P(Z<0.90)- 0.816. P(Z<1) = 0.841. b)
Calculate a 95% upper confident bound on the difference in population µ1 - µ2.

Let z0.025 = 1.96, z0.05 = 1.64.

5. Check the lengths (cm) of randomly selected products from two manufacturing plants, we
get the following data: n1 = 26, x1 = 6.9, s1 = 1.26, n2 = 23, x2 = 7.2, s2 = 1.76. Assume that the
variances are equal, what is the width of the 95% confidence interval on the difference in
population mean lengths?
Let t0.05, 47 = 1.68, t0.025, 47 = 2.

6. A researcher was interested in comparing the response times of two different cab
companies. Companies A and B were each called at 50 randomly selected times. The calls
to
company A were made independently of the calls to company B. The response times
for each call were recorded. The summary statistics were as follows:
Company A Company B

Mean response time 7.6 mins 6.9 mins

Standard deviation 1.4 mins 1.7 mins

Use a 0.02 significance level to test the claim that the mean response time for conmpany
A is the same as the mean response time for company B. Use the P-value method of
hypothesis testing.

7. A researcher was interested in comparing the amount of time spent watching television
by women and by men. Independent simple random samples of 14 women and 17 men
were selected, and each person was asked how many hours he or she had watched
television during the previous week. The summary statistics are as follows.
women men

x1 = 12.9 hr x2 = 16.3 hr

s1 = 4.2 hr s2 = 4.4 hr

n1 = 14 n2 = 17

Use a 0.05 significance level to test the claim that the mean amount of time spent watching
television by women is smaller than the mean amount of time spent watching television by
men. Use the traditional method of hypothesis testing.

8. When testing for a difference between the means of a treatment group and a placebo
group, the computer display below is obtained. Using a 0.05 significance level, is there
sufficient evidence to support the claim that the treatment group (variable 1) comes from a
population with a mean that is less than the mean for the placebo population?
9. Assume that you plan to use a significance level of a = 0.05 to test the claim that p1 = p2.
Use the given sample sizes and numbers of successes to find the z test statistic for the
hypothesis test. In a vote on the Clean Water bill, 44% of the 205 Democrats voted for the
bill while 46% of the 230 Republicans voted for it.
 Review Chapter 9

1. If an economist wishes to determine whether there is evidence that average family

income in a community exceeds $25,000, ________________ (a)

a. a one-tailed test should be utilized.

b. either a one-tailed or two-tailed test could be used with equivalent results. c.

a two-tailed test should be utilized.

d. None of the other choices is correct

2. A sample is used to obtain a 95% confidence interval for the mean of a population. The
confidence interval goes from 15 to 19. If the same sample had been used to test the null
hypothesis that the mean of the population is equal to 20 versus the alternative hypothesis
that the mean of the population differs from 20, the null hypothesis could be rejected at a
level of significance of 0.05. (a)

a. True

b. False

3. An article stated that students in FPT university system take an average of 4.5 years to
finish their undergraduate degrees. Suppose you believe that the average time is longer. You
conduct a survey of 49 students and obtain a sample mean of 5.1 with a sample standard
deviation of 1.2. Assume that time to finish their undergraduate degrees is normally
distributed. Calculate the value of the test statistic and the critical values for this test statistic.
Use a significance level of 0.05. (Test statistic: 3.5 and critical value: 1.677)

Let z0.05 = 1.645, z0.025 = 1.96, t0.05, 48 = 1.677, t0.025, 48 = 2.011.

4. The National Center for Education Statistics would like to test the hypothesis that the
proportion of Bachelor's degrees that were earned by women equals 0.60. A random sample
of 140 college graduates with Bachelor degrees found that 75 were women. The National
Center for Education Statistics would like to set the significant level to be 0.10. What is the
value of the test statistic for this hypothesis test? (-1.55)

5. A simple random sample of 15-year-old boys from one city is obtained and their weights
are listed below. Use a 0.01 significance level to test the claim that these sample weights
come from a population with a mean smaller than 150. Assume that the standard
deviation of the weights of all 15-year-old boys in the city is known to be 16.7 and
population has normal distribution. 150 138 158 151 134 189 157 144 175 127 164

(Reject µ < 150, α = 0.01)

6. In tests of a computer component, it is found that the mean time between failures is 520
hours. A modification is made which is supposed to increase the time between failures. Test
on a random sample of 10 modified components resulted in the following times (in hours)
between failures: 518 548 561 523 536 499 538 557 528 563. At the 0.05 significance level,
test the claim that for the modified components, the mean time between failures is greater
than 520 hours. (Fail to reject µ > 520, α = 0.05)

7. A machine which manufactures black polythene dustbin bags is known to produce 3%

defective bags. Following a major breakdown of the machine, extensive repair work is
carried out which may result in a change in the percentage of defective bags produced. To
investigate this possibility, a random sample of 200 bags is taken from the machine’s
production and a count reveals 12 defective bags. What may be concluded? Use α = 0.03.

(Reject p = 3%, α = 0.03)

8. An airline claims that only 6% of all lost luggage is never found. If, in a random sample,
17 of 200 pieces of lost luggage are not found, test the null hypothesis p = 0.06 against the
alternative hypothesis p > 0.06 at a = 005. Find the test statistic. What may be concluded?
Let z0.05 = 1.65. (z0 = 1.489, fail to reject H0)

9. A large software development firm recently relocated its facilities. Top management is
interested in fostering good relations with its new local community and has encouraged its
professional employees to engage in local service activities. The company believes that its
professionals volunteer an average of more than 15 hours per month. If this is not the case, it
will institute an incentive program to increase community involvement. The correct null and
alternative hypotheses are….? (H0: µ = 15, H1: µ > 15)

10. Suppose you want to test the claim that µ ≠ 31.5, with known σ. If the sample size n = 81
and the level of significant α = 0.1, when you should reject H0? (Reject H0 if the test statistic
is greater than 1.645 or less than -1.645)

Let z0.005 = 2.575, z0.01 = 2.33, z0.025 = 1.96, z0.05 = 1.645.

 SECTION I: MULTIPLE-CHOICE

1. Which of the following would be an appropriate null hypothesis?

a. The mean of a population is equal to 55.
b. The mean of a sample is equal to 55.
c. The mean of a population is greater than 55.
d. Only (a) and (c) are true.

2. Which of the following would be an appropriate alternative hypothesis?

a. The mean of a population is equal to 55.
b. The mean of a sample is equal to 55.
c. The mean of a population is greater than 55.
d. The mean of a sample is greater than 55.

3. A Type II error is committed when

a. we reject a null hypothesis that is true.
b. we don't reject a null hypothesis that is true.
c. we reject a null hypothesis that is false.
d. we don't reject a null hypothesis that is false.

4. The power of a test is measured by its capability of

a. rejecting a null hypothesis that is true.
b. not rejecting a null hypothesis that is true.
c. rejecting a null hypothesis that is false.
d. not rejecting a null hypothesis that is false.

5. If an economist wishes to determine whether there is evidence that average family income in a
community exceeds $25,000
a. either a one-tailed or two-tailed test could be used with equivalent results.
b. a one-tailed test should be utilized.
c. a two-tailed test should be utilized.
d. None of the above.

6. If the p-value is less than α in a two-tailed test,

a. the null hypothesis should not be rejected.
b. the null hypothesis should be rejected.
c. a one-tailed test should be used.
 d. no conclusion should be reached.

7. It is possible to directly compare the results of a confidence interval estimate to the results obtained by
testing a null hypothesis if
a. a two-tailed test for µ is used.
b. a one-tailed test for µ is used.
c. Both of the previous statements are true.
d. None of the previous statements is true.

8. The symbol for the power of a statistical test is

a. α.
b. 1 – α.
c. β .
d. 1 – β .

9. How many Kleenex should the Kimberly Clark Corporation package of tissues contain? Researchers
determined that 60 tissues is the average number of tissues used during a cold. Suppose a random sample
of 100 Kleenex users yielded the following data on the number of tissues used during a cold: X = 52, s =
22. Give the null and alternative hypotheses to determine if the number of tissues used during a cold is less
than 60.
a. H0 : μ ≤ 60 and H1 : μ > 60.
b. H0:μ ≥ 60 and H1: μ < 60.
c. H0 : X ≥ 60 and H1 : X < 60.
d. H0 : X = 52 and H1 : X ≠ 52.

10. How many Kleenex should the Kimberly Clark Corporation package of tissues contain? Researchers
determined that 60 tissues is the average number of tissues used during a cold. Suppose a random sample
of 100 Kleenex users yielded the following data on the number of tissues used during a cold: X = 52, s =
22. Suppose the alternative we wanted to test was H1 : μ < 60 . State the correct rejection region for =
0.05.
a. Reject H0 if t > 1.6604.
b. Reject H0 if t < – 1.6604.
c. Reject H0 if t > 1.9842 or Z < – 1.9842.
d. Reject H0 if t < – 1.9842.

11. How many Kleenex should the Kimberly Clark Corporation package of tissues contain? Researchers
determined that 60 tissues is the average number of tissues used during a cold. Suppose a random sample
of 100 Kleenex users yielded the following data on the number of tissues used during a cold: X = 52, s =
22. Suppose the test statistic does fall in the rejection region at α = 0.05. Which of the following
conclusion is correct?
a. At α = 0.05, there is not sufficient evidence to conclude that the average number of tissues used
during a cold is 60 tissues.
b. At α = 0.05, there is sufficient evidence to conclude that the average number of tissues used
during a cold is 60 tissues.
c. At α = 0.05, there is not sufficient evidence to conclude that the average number of tissues used
during a cold is not 60 tissues.

d. At α = 0.10, there is sufficient evidence to conclude that the average number of tissues used
during a cold is not 60 tissues.

12. We have created a 95% confidence interval for µ with the result (10, 15). What decision will we make if
we test H0 : μ = 16 versus H1 : μ ≠ 16 at = 0.10?
a. Reject H0 in favor of H1.
b. Accept H0 in favor of H1.
c. Fail to reject H0 in favor of H1.
d. We cannot tell what our decision will be from the information given.
13. A is a numerical quantity computed from the data of a sample and is used in reaching a decision
on whether or not to reject the null hypothesis.
a. significance level
b. critical value
c. test statistic
d. parameter

14. The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.
She would now like to determine whether or not the mean age of her customers is over 30. If so, she plans
to alter the entertainment to appeal to an older crowd. If not, no entertainment changes will be made. The
appropriate hypotheses to test are:
a. H0 : μ ≥ 30 versus H1 : μ < 30.
b. H 0 : μ ≤ 30 versus H1 : μ > 30 .
c. H0 : X ≥ 30 versus H1 : X < 30.
d. H0 : X ≤ 30 versus H1 : X > 30.

15. The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.
She would now like to determine whether or not the mean age of her customers is over 30. If so, she plans
to alter the entertainment to appeal to an older crowd. If not, no entertainment changes will be made. If she
wants to be 99% confident in her decision, what rejection region should she use?
a. Reject H0 if t < – 2.34.
b. Reject H0 if t < – 2.55.
c. Reject H0 if t > 2.34.
d. Reject H0 if t > 2.58.

16. The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.
She would now like to determine whether or not the mean age of her customers is over 30. If so, she plans
to alter the entertainment to appeal to an older crowd. If not, no entertainment changes will be made.
Suppose she found that the sample mean was 30.45 years and the sample standard deviation was 5 years. If
she wants to be 99% confident in her decision, what decision should she make?
a. Reject H0.
b. Accept H0.
c. Fail to reject H0.
d. We cannot tell what her decision should be from the information given.

17. The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.
She would now like to determine whether or not the mean age of her customers is over 30. If so, she plans
to alter the entertainment to appeal to an older crowd. If not, no entertainment changes will be

made. Suppose she found that the sample mean was 30.45 years and the sample standard deviation was 5
years. If she wants to be 99% confident in her decision, what conclusion can she make? a. There is not
sufficient evidence that the mean age of her customers is over 30. b. There is sufficient evidence that the
mean age of her customers is over 30. c. There is not sufficient evidence that the mean age of her customers is
not over 30. d. There is sufficient evidence that the mean age of her customers is not over 30.

18. The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.
She would now like to determine whether or not the mean age of her customers is over 30. If so, she plans to
alter the entertainment to appeal to an older crowd. If not, no entertainment changes will be made. Suppose
she found that the sample mean was 30.45 years and the sample standard deviation was 5 years. What is the p-
value associated with the test statistic?
a. 0.3577
b. 0.1423
c. 0.0780
d. 0.02

19. The marketing manager for an automobile manufacturer is interested in determining the proportion of new
compact-car owners who would have purchased a passenger-side inflatable air bag if it had been available for
an additional cost of $300. The manager believes from previous information that the proportion is 0.30.
Suppose that a survey of 200 new compact-car owners is selected and 79 indicate that they would have
purchased the inflatable air bags. If you were to conduct a test to determine whether there is evidence that the
proportion is different from 0.30, which test would you use?
a. Z-test of a population mean
b. Z-test of a population proportion
c. t-test of population mean
d. t-test of a population proportion

20. The marketing manager for an automobile manufacturer is interested in determining the proportion of new
compact-car owners who would have purchased a passenger-side inflatable air bag if it had been available for
an additional cost of $300. The manager believes from previous information that the proportion is 0.30.
Suppose that a survey of 200 new compact-car owners is selected and 79 indicate that they would have
purchased the inflatable air bags. If you were to conduct a test to determine whether there is evidence that the
proportion is different from 0.30 and decided not to reject the null hypothesis, what conclusion could you
draw?
a. There is sufficient evidence that the proportion is 0.30.
b. There is not sufficient evidence that the proportion is 0.30.
c. There is sufficient evidence that the proportion is 0.30.
d. There is not sufficient evidence that the proportion is not 0.30.
 REVIEW CHAPTER 8

1. Suppose a 95% confidence interval for μ turns out to be (1000, 2100). Give a
definition of what it means to be 95% confident in an inference. (b)

a. 95% of the observations in the entire population fall in the given interval.

b. In repeated sampling, 95% of the intervals constructed would contain the

population mean.

c. 95% of the observations in the sample fall in the given interval.

d. In repeated sampling, the population parameter would fall in the given interval
95% of the time.

2. Weights of women in one age group are normally distributed with a standard
deviation of 13 lb. A researcher wishes to estimate the mean weight of all women
in this age group. Find how large a sample must be drawn in order to be 90 percent
confident that the sample mean will not differ from the population mean by more
than 3.5 lb. (38)

Let z0.05 = 1.645, z0.1 = 1.281.

3. If you were constructing a 99% confidence interval of the population mean
based on a sample of n = 25 where the standard deviation of the sample s = 0.05,
the percentage points will be ______________ (2.797)

Let z0.01 = 2.326, z0.005 = 2.576, t0.01, 24 = 2.492, t0.005, 24 = 2.797.

4. A manufacturer of golf equipment wishes to estimate the number of left-handed
golfers. How large a sample is needed in order to be 95% confident that the sample
proportion will not differ from the true proportion by more than 4%? A previous
study indicates that the proportion of left-handed golfers is 10%. (217)

Let z0.025 = 1.96.

5. A major tire manufacturer wishes to estimate the mean tread life in miles for one
of their tires. They wish to develop a confidence interval estimate that would have
a maximum sampling error of 500 miles with 90 percent confidence. Let
population standard deviation equal to 4,000 miles. Based on this information and
let z0.05 = 1.645, the required sample size is: (174)

5. In order to fairly set flat rates for auto mechanics, a shop foreman needs to
estimate the average time it takes to replace a fuel pump in a car. How large a
sample must he select if he wants to be 99% confident that the true average time is
within 8 minutes of the sample average? Assume the standard deviation of all
times is 21 minutes. Let z0.005 = 2.58. (46)
6. A Professor at Hanoi Medical University is interested in estimating the birth
weight of infants. How large a sample must he select if he desires to be 99%
confident that the true mean is within 0.1 kilograms of the sample mean? A past
experience indicates that the standard deviation of the birth weights is known to be
0.7 kilograms. Let z0.005 = 2.58. (327)
7. A pollster wishes to estimate the proportion of United States voters who favor
capital punishment. How large a sample is needed in order to be 98% confident
that the sample proportion will not differ from the true proportion by more than
4%? 849

8. A random sample of 10 parking meters in a beach community showed the

following incomes for a day. Assume the incomes are normally distributed.

$6.30 $6.75 $4.25 $3.60 $4.50 $2.80 $8.00 $3.00 $2.60 $5.20

Find the 95% confidence interval for the true mean. ($3.39, $6.01)

9. A survey of 200 homeless persons showed that 35 were veterans. Construct a

90% confidence interval for the proportion of homeless persons who are veterans.
Let z0.05 = 1.65. (0.13, 0.22)
10. A confidence interval was used to estimate the proportion of statistics students
that are females. A random sample of 200 statistics students generated the
following 90% confidence interval: (0.48, 0.64). Based on the interval above, is the
population proportion of females equal to 0.60? (c)

a. No, and we are 90% sure of it.

b. No. The proportion is 54.17%.
c. Maybe. 0.60 is a believable value of the population proportion based on the
information above.

d. Yes, and we are 90% sure of it.

11. Thirty randomly selected students tool the calculus final. If the sample mean
was 82 and the population standard deviation was 12.2, Assume that population
has normal distribution.

a) Construct a 99% confidence interval for the mean score of all students. (75.86;
88.14).

b) Find a 98% upper-confidence bound for the mean score of all students. (86.8)

11. To find the standard deviation of the diameter of wooden dowels, the
manufacturer measures 19 randomly selected dowels and finds the variance 0.16.
a. Find the 95% confidence interval for the population standard deviation σ.

b. Find critical value if we want to find 99% lower confidence bound for σ.

12. The yield of chemical process is being studied. From previous experience yield
is known to be normally distributed. The past five days of plant operation have
resulted in the following percent yields: 91.6; 88.75, 90.8, 89.95, and 91.3. Find a
98% two-side confidence interval on the true mean yield. (87.35; 93.61)

13. To find the standard deviation of the diameter of wooden dowels, the
manufacturer measures 19 randomly selected dowels and finds the standard
deviation of the sample to be s = 0.16. Find the 95% confidence interval for the
population standard deviation σ.
 SECTION I: MULTIPLE-CHOICE

1. The width of a confidence interval estimate for a proportion will be

a) narrower for 99% confidence than for 95% confidence.
b) wider for a sample size of 100 than for a sample size of 50.
c) narrower for 90% confidence than for 95% confidence.
d) narrower when the sample proportion is 0.50 than when the sample proportion is 0.20.

2. A 99% confidence interval estimate can be interpreted to mean that

a) if all possible samples are taken and confidence interval estimates are developed, 99% of them
would include the true population mean somewhere within their interval.
b) we have 99% confidence that we have selected a sample whose interval does include the
population mean.
c) Both of the above.
d) None of the above.

3. Which of the following is not true about the Student’s t distribution?

a) It has more area in the tails and less in the center than does the normal
distribution.
b) It is used to construct confidence intervals for the population mean when the
population standard deviation is known.
c) It is bell shaped and symmetrical.
d) As the number of degrees of freedom increases, the t distribution approaches the normal
distribution.

4. It is desired to estimate the average total compensation of CEOs in the Service industry. Data were
randomly collected from 18 CEOs and the 97% confidence interval was calculated to be ($2,181,260,
$5,836,180). Which of the following interpretations is correct?
a) 97% of the sampled total compensation values fell between $2,181,260 and
$5,836,180.
b) We are 97% confident that the mean of the sampled CEOs falls in the interval
$2,181,260 to $5,836,180.

1
c) In the population of Service industry CEOs, 97% of them will have total
compensations that fall in the interval $2,181,260 to $5,836,180.
d) We are 97% confident that the average total compensation of all CEOs in the
Service industry falls in the interval $2,181,260 to $5,836,180.

5. A confidence interval was used to estimate the proportion of statistics students that are
females. A random sample of 72 statistics students generated the following 90% confidence
interval: (0.438, 0.642). Based on the interval above, is the population proportion of
females equal to 0.60?
a) No, and we are 90% sure of it.
b) No. The proportion is 54.17%.
c) Maybe. 0.60 is a believable value of the population proportion based on the
information above.
d) Yes, and we are 90% sure of it.

6. A confidence interval was used to estimate the proportion of statistics students that are
female. A random sample of 72 statistics students generated the following 90% confidence
interval: (0.438, 0.642). Using the information above, what total size sample would be
necessary if we wanted to estimate the true proportion to within ±0.08 using 95%
 confidence?
a) 105
b) 150
c) 420
d) 597

7. When determining the sample size necessary for estimating the true population mean,
which factor is not considered when sampling with replacement?
a) The population size.
b) The population standard deviation.
c) The level of confidence desired in the estimate.
d) The allowable or tolerable sampling error.

8. Suppose a 95% confidence interval for turns out to be (1,000, 2,100). To make more useful
inferences from the data, it is desired to reduce the width of the confidence interval. Which
of the following will result in a reduced interval width?
a) Increase the sample size.
b) Increase the confidence level.
c) Increase the population mean.
d) Increase the sample mean.

9. A major department store chain is interested in estimating the average amount its credit card
customers spent on their first visit to the chain’s new store in the mall. Fifteen credit card
accounts were randomly sampled and analyzed with the following results: X = $50.50 and
s2= 400 . Construct a 95% confidence interval for the average amount its credit card
customers spent on their first visit to the chain’s new store in the mall assuming that the
amount spent follows a normal distribution.
a) $50.50 ± $9.09
b) $50.50 ± $10.12
c) $50.50 ± $11.00
d) $50.50 ± $11.08
10. Private colleges and universities rely on money contributed by individuals and corporations
for their operating expenses. Much of this money is put into a fund called an endowment,
and the college spends only the interest earned by the fund. A recent survey of 8 private
colleges in the United States revealed the following endowments (in millions of dollars):
60.2, 47.0, 235.1, 490.0, 122.6, 177.5, 95.4, and 220.0. Summary statistics yield X =
180.975 and s =143.042. Calculate a 95% confidence interval for the mean endowment
of all the private colleges in the United States assuming a normal distribution for the
endowments.
a) $180.975 ± $94.066
b) $180.975 ± $99.123
c) $180.975± $116.621
d) $180.975 ± $119.586

11. A university dean is interested in determining the proportion of students who receive some
sort of financial aid. Rather than examine the records for all students, the dean randomly
selects 200 students and finds that 118 of them are receiving financial aid. If the dean
wanted to estimate the proportion of all students receiving financial aid to within 3% with
99% reliability, how many students would need to be sampled?
a) n = 1,844
b) n = 1,784
c) n = 1,503
d) n = 1,435
 12. An economist is interested in studying the incomes of consumers in a particular region. The
population standard deviation is known to be $1,000. A random sample of 50 individuals
resulted in an average income of $15,000. What is the width of the 90% confidence
interval?
a) $232.60
b) $364.30
c) $465.23
d) $728.60

13. The head librarian at the Library of Congress has asked her assistant for an interval
estimate of the mean number of books checked out each day. The assistant provides the
following interval estimate: from 740 to 920 books per day. If the head librarian knows that
the population standard deviation is 150 books checked out per day, approximately how
large a sample did her assistant use to determine the interval estimate?
a) 2
b) 3
c) 12
d) It cannot be determined from the information given.

14. The head librarian at the Library of Congress has asked her assistant for an interval
estimate of the mean number of books checked out each day. The assistant provides the
following interval estimate: from 740 to 920 books per day. If the head librarian knows that
the population standard deviation is 150 books checked out per day, and she asked her
assistant to use 25 days of data to construct the interval estimate, what confidence level can
she attach to the interval estimate?
a) 99.7%
b) 99.0%
c) 98.0% d) 95.4%