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Statistics for Managers Study Set 1
Quiz 8: Confidence Interval Estimation
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Question 41
True/False
The t distribution allows the calculation of confidence intervals for means for small samples when the population variance is not known, regardless of the shape of the distribution in the population.
Question 42
Short Answer
A prison official wants to estimate the proportion of cases of recidivism. Examining the records of 250 convicts, the official determines that there are 65 cases of recidivism. A 99% confidence interval for the proportion of cases of recidivism would go from __________ to __________.
Question 43
Short Answer
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
ˉ
=
180.975
and
S
=
143.042
\bar { X } = 180.975 \text { and } S = 143.042
X
ˉ
=
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
\$ 180.975 \pm \$ 94.066
$180.975
±
$94.066
b)
$
180.975
±
$
99.123
\$ 180.975 \pm \$ 99.123
$180.975
±
$99.123
c)
$
180.975
±
$
116.621
\$ 180.975 \pm \$ 116.621
$180.975
±
$116.621
d)
$
180.975
±
$
119.586
\$ 180.975 \pm \$ 119.586
$180.975
±
$119.586
Question 44
Short Answer
The county clerk wants to estimate the proportion of voters who will need special election facilities. The clerk wants to construct a 95% confidence interval for the population proportion which extends at most 0.07 to either side of the sample proportion. How large a sample must be taken to assure these conditions are met?
Question 45
True/False
The upper bound of a 90% confidence interval estimate of the population mean is 34.32.
Question 46
True/False
The confidence interval estimate of the population proportion is constructed around the sample proportion.
Question 47
Essay
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. Use a 90% confidence interval to estimate the true proportion of students who receive financial aid.
Question 48
True/False
A sample of 100 fuses from a very large shipment is found to have 10 that are defective. The 95% confidence interval would indicate that, for this shipment, the proportion of defective fuses is between 0 and 0.28.