Exam 8: Confidence Interval Estimation
Exam 1: Defining and Collecting Data202 Questions
Exam 2: Organizing and Visualizing256 Questions
Exam 3: Numerical Descriptive Measures217 Questions
Exam 4: Basic Probability167 Questions
Exam 5: Discrete Probability Distributions165 Questions
Exam 6: The Normal Distribution and Other Continuous Distributions170 Questions
Exam 7: Sampling Distributions165 Questions
Exam 8: Confidence Interval Estimation219 Questions
Exam 9: Fundamentals of Hypothesis Testing: One-Sample Tests194 Questions
Exam 10: Two-Sample Tests240 Questions
Exam 11: Analysis of Variance170 Questions
Exam 12: Chi-Square and Nonparametric188 Questions
Exam 13: Simple Linear Regression243 Questions
Exam 14: Introduction to Multiple394 Questions
Exam 15: Multiple Regression146 Questions
Exam 16: Time-Series Forecasting235 Questions
Exam 17: Getting Ready to Analyze Data386 Questions
Exam 18: Statistical Applications in Quality Management159 Questions
Exam 19: Decision Making126 Questions
Exam 20: Probability and Combinatorics421 Questions
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Which of the following is not true about the Student's t distribution?
(Multiple Choice)
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SCENARIO 8-13-A
You are the quality control manager of a water bottles company. One of the biggest complaints in the
past years has been the breakage and, hence, the concern on the durability of the connector between
the lid and the bottle which many users use as a handle for the bottles. To collect evidence before
implementing any modification to the production process, your department has subjected 50 water
bottle to durability test and the following data on the number of times the handles have been used to
lift the bottles before they break are contained in the file Scenario8-13-DataA.XLSX. 495 499 502 500 491 498 498 495 488 516 513 486 504 503 493 504 489 500 495 499 501 507 511 496 486 497 510 504 493 482 511 502 520 514 486 514 500 505 512 500 504 498 503 514 474 489 488 506 517 490 Assume that the population standard deviation is 5 and the number of times the handles have been
used to lift the bottles before they break follows a normal distribution.
-Referring to Scenario 8-13-A, the sampling error of the 95% confidence interval for the mean
number of times the handles have been used to lift the bottles before they break is _____.
(Short Answer)
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SCENARIO 8-7
A hotel chain wants to estimate the mean number of rooms rented daily in a given month. The
population of rooms rented daily is assumed to be normally distributed for each month with a
standard deviation of 240 rooms. During February, a sample of 25 days has a sample mean of 370
rooms.
-Referring to Scenario 8-7, the sampling error of a 99% confidence interval for the mean number of
rooms rented daily in a given month is __________.
(Short Answer)
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SCENARIO 8-11
A poll was conducted by the marketing department of a video game company to determine the
popularity of a new game that was targeted to be launched in three months. Telephone interviews
with 1,500 young adults were conducted which revealed that 49% said they would purchase the new
game. The margin of error was percentage points.
-Referring to Scenario 8-11, what is the needed sample size to obtain a 95% confidence interval
estimate of the percentage of the targeted young adults who will purchase the new game by allowing
the same level of margin of error?
(Short Answer)
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SCENARIO 8-8
The president of a university would like to estimate the proportion of the student population that
owns a personal computer. In a sample of 500 students, 417 own a personal computer.
-Referring to Scenario 8-8, a 99% confidence interval for the proportion of the student population
who own a personal computer is from __________ to __________.
(Short Answer)
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A confidence interval was used to estimate the proportion of statistics students who 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?
(Multiple Choice)
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The width of a confidence interval equals twice the sampling error.
(True/False)
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SCENARIO 8-2
A quality control engineer is interested in the mean length of sheet insulation being cut automatically
by machine. The desired mean length of the insulation is 12 feet. It is known that the standard
deviation in the cutting length is 0.15 feet. A sample of 70 cut sheets yields a mean length of
12.14 feet. This sample will be used to obtain a 99% confidence interval for the mean length cut
by machine.
-Referring to Scenario 8-2, the critical value to use in obtaining the confidence interval is ________.
(Short Answer)
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Given a sample mean of 2.1 and a population standard deviation of 0.7 from a sample
of 10 data points, a 90% confidence interval will have a width of 2.36.
(True/False)
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SCENARIO 8-8
The president of a university would like to estimate the proportion of the student population that
owns a personal computer. In a sample of 500 students, 417 own a personal computer.
-Referring to Scenario 8-8, it is possible that the 99% confidence interval calculated
from the data will not contain the proportion of the student population who own a personal computer.
(True/False)
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SCENARIO 8-9
A university wanted to find out the percentage of students who felt comfortable reporting cheating by
their fellow students. A surveyed of 2,800 students was conducted and the students were asked if
they felt comfortable reporting cheating by their fellow students. The results were 1,344 answered
"Yes" and 1,456 answered "no".
-Referring to Scenario 8-9, a 99% confidence interval will contain 99% of the student
population who feel comfortable reporting cheating by their fellow students.
(True/False)
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SCENARIO 8-12-B
You are the quality control manager of a water bottles company. One of the biggest complaints in the
past years has been the breakage and, hence, the concern on the durability of the connector between
the lid and the bottle which many users use as a handle for the bottles. To collect evidence before
implementing any modification to the production process, your department has subjected 50 water
bottles to a durability test and the following data on the number of times the handles have been used
to lift the bottles before they break are contained in the file SCENARIO 8-12-B.XLSX. 493 506 515 491 500 505 517 510 506 503 503 491 495 496 496 505 493 486 504 483 514 494 497 501 493 490 510 494 494 495 494 486 495 506 506 507 502 498 510 501 500 505 492 486 501 496 501 521 510 498 Assume that and the number of times the handles have been used to lift the bottles before they break
follows a normal distribution.
-Referring to Scenario 8-12-B, the sampling error of the 95% confidence interval for the mean
number of times the handles have been used to lift the bottles before they break is _____.
(Short Answer)
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SCENARIO 8-9
A university wanted to find out the percentage of students who felt comfortable reporting cheating by
their fellow students. A surveyed of 2,800 students was conducted and the students were asked if
they felt comfortable reporting cheating by their fellow students. The results were 1,344 answered
"Yes" and 1,456 answered "no".
-Referring to Scenario 8-9, it is possible that the 99% confidence interval calculated
from the data will not contain the sample proportion of students who feel comfortable reporting
cheating by their fellow students.
(True/False)
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SCENARIO 8-7
A hotel chain wants to estimate the mean number of rooms rented daily in a given month. The
population of rooms rented daily is assumed to be normally distributed for each month with a
standard deviation of 240 rooms. During February, a sample of 25 days has a sample mean of 370
rooms.
-Referring to Scenario 8-7, it is possible that the 99% confidence interval calculated
from the data will not contain the sample mean number of rooms rented daily in a given month.
(True/False)
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SCENARIO 8-10
A sales and marketing management magazine conducted a survey on salespeople cheating on their
expense reports and other unethical conduct. In the survey on 200 managers, 58% of the managers
have caught salespeople cheating on an expense report, 50% have caught salespeople working a
second job on company time, 22% have caught salespeople listing a "strip bar" as a restaurant on an
expense report, and 19% have caught salespeople giving a kickback to a customer.
-Referring to Scenario 8-10, it is possible that the 95% confidence interval calculated
from the data will not contain the sample proportion of managers who have caught salespeople
cheating on an expense report.
(True/False)
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It is desired to estimate the mean total compensation of CEOs in the Service industry. Data were randomly collected from 18 CEOs and the 95% confidence interval was calculated to be ($2,181,260,
$5,836,180). Based on the interval above, do you believe the mean total compensation of CEOs in the
Service industry is more than $3,000,000?
(Multiple Choice)
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SCENARIO 8-10
A sales and marketing management magazine conducted a survey on salespeople cheating on their
expense reports and other unethical conduct. In the survey on 200 managers, 58% of the managers
have caught salespeople cheating on an expense report, 50% have caught salespeople working a
second job on company time, 22% have caught salespeople listing a "strip bar" as a restaurant on an
expense report, and 19% have caught salespeople giving a kickback to a customer.
-Referring to Scenario 8-10, a 95% confidence interval will contain 95% of the
population proportion of managers who have caught salespeople cheating on an expense report.
(True/False)
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It is desired to estimate the mean total compensation of CEOs in the Service industry. Data were randomly collected from 18 CEOs and the 95% confidence interval was calculated to be ($2,181,260,
$5,836,180). Which of the following interpretations is correct?
(Multiple Choice)
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The county clerk wants to estimate the proportion of voters who will need special election facilities.
Suppose a sample of 400 voters was taken. If 150 need special election facilities, calculate an 90%
confidence interval for the population proportion.
(Short Answer)
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