CHAPTER EIGHT

Statistical Inference:  Estimation for Single Populations

201
Chapter Eight
B 1. When a statistic calculated from sample data is used to estimate
a population parameter, it is called _______.

M A. an interval estimate
Term B. a point estimate
C. a statistical parameter
D. a good guess

A 2. When a range of values is used to estimate a population

parameter, it is called _______.

E A. an interval estimate
Term B. a point estimate
C. a statistical parameter
D. a range estimate

202
 Chapter 8: Statistical Inference: Estimation for Single
Populations 203
A 3. Catherine Chao, Director of Marketing Research, is evaluating
consumer acceptance of a new toothpaste package. Her staff
reports that 17% of a random sample of 200 households prefer
the new package to all other package designs. If Catherine
concludes that 17% of all households prefer the new package,
she is using a _______.

M A. a point estimate
BApp B. a range estimate
C. a statistical parameter
D. an interval estimate

D 4. Brian Vanecek, VP of Operations at Portland Trust Bank, is

evaluating the service level provided to walk-in customers.
Accordingly, his staff recorded the waiting times for 45 randomly
selected walk-in customers, and calculated that their mean
waiting time was 15 minutes. If Brian concludes that the
average waiting time for all walk-in customers is 15 minutes, he
is using a ________.

M A. a range estimate
BApp B. a statistical parameter
C. an interval estimate
D. a point estimate

C 5. Eugene Gates, Marketing Director of Mansfield Motors

Manufacturers, Inc.’s Electrical Division, is leading a study to
assess the relative importance of product features. An item on a
survey questionnaire distributed to 100 of Mansfield’s customers
asked them to rate the importance of “ease of maintenance” on
a scale of 1 to 10 (with 1 meaning “not important” and 10
meaning “highly important”). His staff assembled the following
statistics.
Ease of Maintenance
Mean 7.5
Standard 1.5
De
via
tio
n
If Eugene concludes that the average rate of “ease of
maintenance” for all customers is 7.5, he is using ________.

M A. arange estimate
204 Test Bank
BApp B. a statistical parameter
C. a point estimate
D. an interval estimate
 Chapter 8: Statistical Inference: Estimation for Single
Populations 205
A 6. Eugene Gates, Marketing Director of Mansfield Motors
Manufacturers, Inc.’s Electrical Division, is leading a study to
assess the relative importance of product features. An item on a
survey questionnaire distributed to 100 of Mansfield’s customers
asked them to rate the importance of “efficiency of operation”
on a scale of 1 to 10 (with 1 meaning “not important” and 10
meaning “highly important”). His staff assembled the following
statistics.
Efficiency of
Operation
Mean 6.0
Standard 2.5
De
via
tio
n
If Eugene concludes that the average rate of “efficiency of
operation” for all customers is 6.0, he is using ________.

M A. a point estimate
BApp B. a statistical parameter
C. a range estimate
D. an interval estimate

D 7. Mary Flindt, a Marketing Director with Epsilon Airlines, is

assessing the relative importance of the "total flight"
experience. An item on a survey questionnaire distributed to
100 of Epsilon's customers asked them to rate the importance of
“on-time arrival” on a scale of 1 to 10 (with 1 meaning “not
important” and 10 meaning “highly important”). Her staff
assembled the following statistics from the responses.
On-time Arrival
Mean 9.1
Standard 2.5
De
via
tio
n
If Mary concludes that the average rate of “on-time arrival” for
all customers is 9.1, she is using ________.

M A. an interval estimate
BApp B. a statistical parameter
206 Test Bank
C. a range estimate
D. a point estimate
 Chapter 8: Statistical Inference: Estimation for Single
Populations 207
D 8. Mary Flindt, a Marketing Director with Epsilon Airlines, is
assessing the relative importance of the "total flight"
experience. An item on a survey questionnaire distributed to
100 of Epsilon's customers asked them to rate the importance of
“cabin space” on a scale of 1 to 10 (with 1 meaning “not
important” and 10 meaning “highly important”). Her staff
assembled the following statistics from the responses.
Cabin Space
Mean 7.2
Standard 3.7
De
via
tio
n
If Mary concludes that the average rate of “cabin space” for all
customers is 7.2, she is using ________.

M A. an interval estimate
BApp B. a statistical parameter
C. a range estimate
D. a point estimate

B 9. The Z value associated with a two-sided 90% confidence interval

is _______.

E A. 1.28
Calc B. 1.645
C. 1.96
D. 2.575

C 10. The Z value associated with a two-sided 95% confidence interval

is _______.

E A. 1.28
Calc B. 1.645
C. 1.96
D. 2.575

B 11. The Z value associated with a two-sided 80% confidence interval

is _______.

E A. 1.645
Calc B. 1.28
C. 0.84
208 Test Bank
D. 0.29
 Chapter 8: Statistical Inference: Estimation for Single
Populations 209
B 12. The Z value associated with a two-sided 88% confidence interval
is _______.

E A. 1.28
Calc B. 1.55
C. 1.17
D. 0.88

D 13. The Z value associated with a two-sided 92% confidence interval

is _______.

E A. 1.41
Calc B. 0.92
C. 0.46
D. 1.75

B 14. The Z value associated with a two-sided 82% confidence interval

is _______.

E A. 1.41
Calc B. 1.34
C. 0.46
D. 1.75

D 15. Suppose a random sample of 36 is selected from a population

with a standard deviation of 12. If the sample mean is 98, the
99% confidence interval to estimate the population mean is
_______.

M A. 94.08 to 101.92
Calc B. 92.85 to 103.15
C. 97.35 to 98.65
D. 93.34 to 102.66

A 16. Suppose a random sample of 36 is selected from a population

with a standard deviation of 12. If the sample mean is 98, the
90% confidence interval for the population mean is _______.

M A. 94.71 to 101.29
Calc B. 97.45 to 98.55
C. 94.08 to 101.92
D. 97.35 to 98.65
210 Test Bank
C 17. Suppose a random sample of 36 is selected from a population
with a standard deviation of 12. If the sample mean is 98, the
95% confidence interval for the population mean is _______.

M A. 94.71 to 101.29
Calc B. 97.45 to 98.55
C. 94.08 to 101.92
D. 97.35 to 98.65

C 18. Suppose a random sample of size 64 is selected from a

population. The sample yields a mean of 26 and a standard
deviation of 4. From this information, the 90% confidence
interval to estimate the population mean can be computed to be
_______.

M A. 25.36 to 26.64
Calc B. 25.92 to 26.08
C. 25.18 to 26.82
D. 25.90 to 26.10

B 19. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the service
level provided to walk­in customers.  Accordingly, his staff recorded the waiting 
times for 64 randomly selected walk­in customers, and determined that their mean
waiting time was 15 minutes and that the standard deviation was 4 minutes.  The 
90% confidence interval for the population mean of waiting times is  ________.

M A.  14.27 to 15.73
BCalc B.  14.06 to 15.94
C.  9.88 to 20.12
D.  13.86 to 16.14

A 20. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the service
level provided to walk­in customers.  Accordingly, his staff recorded the waiting 
times for 64 randomly selected walk­in customers, and determined that their mean
waiting time was 15 minutes and that the standard deviation was 4 minutes.  The 
95% confidence interval for the population mean of waiting times is  ________.

M A.  13.88 to 16.12
BCalc B.  7.16 to 22.84
C.  14.06 to 15.94
D.  8.42 to 21.58
Chapter 8: Statistical Inference: Estimation for Single
Populations 211
212 Test Bank
D 21. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the service
level provided to walk­in customers.  Accordingly, his staff recorded the waiting 
times for 64 randomly selected walk­in customers, and determined that their mean
waiting time was 15 minutes and that the standard deviation was 4 minutes.  The 
88% confidence interval for the population mean of waiting times is  ________.

M A.  8.80 to 21.20
BCalc B.  14.33 to 15.67
C.  10.30 to 19.70
D.  14.11 to 15.89

B 22. James Desreumaux, VP of Human Resources of American First

Banks (AFB), is reviewing the employee training programs of AFB
banks. His staff randomly selected personnel files for 100 tellers
in the Southeast Region, and determined that their mean training time was 
25 hours and that the standard deviation was 5 hours.  The 88% confidence 
interval for the population mean of training times is  ________.

M A.  17.25 to 32.75
BCalc B.  24.23 to 25.78
C.  24.42 to 25.59
D.  19.15 to 30.85

D 23. James Desreumaux, VP of Human Resources of American First

Banks (AFB), is reviewing the employee training programs of AFB
banks. His staff randomly selected personnel files for 100 tellers
in the Southeast Region, and determined that their mean training time was 
25 hours and that the standard deviation was 5 hours.  The 92% confidence 
interval for the population mean of training times is  ________.

M A.  16.25 to 33.75
BCalc B.  24.30 to 25.71
C.  17.95 to 32.05
D.  24.13 to 25.99
 Chapter 8: Statistical Inference: Estimation for Single
Populations 213
C 24. James Desreumaux, VP of Human Resources of American First
Banks (AFB), is reviewing the employee training programs of AFB
banks. His staff randomly selected personnel files for 100 tellers
in the Southeast Region, and determined that their mean training time was 
25 hours and that the standard deviation was 5 hours.  The 95% confidence 
interval for the population mean of training times is  ________.

M A.  15.20 to 34.80
BCalc B.  24.18 to 25.82
C.  24.02 to 25.98
D.  16.78 to 33.23

B 25. Eugene Gates, Marketing Director of Mansfield Motors

Manufacturers, Inc.’s Electrical Division, is leading a study to
assess the relative importance of product features. An item on a
survey questionnaire distributed to 121 of Mansfield’s customers
asked them to rate the importance of “ease of maintenance” on
a scale of 1 to 10 (with 1 meaning “not important” and 10
meaning “highly important”). His staff assembled the following
statistics.
Ease of Maintenance
Mean 7.5
Standard 1.1
De
via
tio
n
The 90% confidence interval for the population mean rating of “ease of
maintenance” is ________.

M A. 5.34 to 9.66
BCalc B. 7.34 to 7.66
C. 5.69 to 9.31
D. 7.30 to 7.70
214 Test Bank
D 26. Eugene Gates, Marketing Director of Mansfield Motors
Manufacturers, Inc.’s Electrical Division, is leading a study to
assess the relative importance of product features. An item on a
survey questionnaire distributed to 121 of Mansfield’s customers
asked them to rate the importance of “ease of maintenance” on
a scale of 1 to 10 (with 1 meaning “not important” and 10
meaning “highly important”). His staff assembled the following
statistics.
Ease of Maintenance
Mean 7.5
Standard 1.1
De
via
tio
n
The 95% confidence interval for the population mean rating of “ease of
maintenance” is ________.

M A. 5.34 to 9.66
BCalc B. 7.34 to 7.66
C. 5.69 to 9.31
D. 7.30 to 7.70

A 27. Mary Flindt, a Marketing Director with Epsilon Airlines, is

assessing the relative importance of the "total flight"
experience. An item on a survey questionnaire distributed to
100 of Epsilon's customers asked them to rate the importance of
“cabin space” on a scale of 1 to 10 (with 1 meaning “not
important” and 10 meaning “highly important”). Her staff
assembled the following statistics from the responses.
Cabin Space
Mean 7.2
Standard 3.7
De
via
tio
n
The 95% confidence interval for the population mean rating of “cabin space”
is ________.

M A. 6.47 to 7.93
BCalc B. 0.00 to 14.45
C. 0.00 to 6.47
D. 6.47 to 14.45
Chapter 8: Statistical Inference: Estimation for Single
Populations 215
216 Test Bank
C 28. Mary Flindt, a Marketing Director with Epsilon Airlines, is
assessing the relative importance of the "total flight"
experience. An item on a survey questionnaire distributed to
121 of Epsilon's customers asked them to rate the importance of
“cabin space” on a scale of 1 to 10 (with 1 meaning “not
important” and 10 meaning “highly important”). Her staff
assembled the following statistics from the responses.
Cabin Space
Mean 7.2
Standard 3.7
De
via
tio
n
The 99% confidence interval for the population mean rating of “cabin space”
is ________.

M A. 0.00 to 7.39
BCalc B. 0.00 to 14.45
C. 6.33 to 8.07
D. 6.47 to 14.45

A 29. A random sample of 64 items is selected from a population of

400 items. The sample mean is 200 and the sample standard
deviation is 48. From this data, a 95% confidence interval to
estimate the population mean can be computed as _______.

M A. 189.21 to 210.79
Calc B. 188.24 to 211.76
C. 190.13 to 209.87
D. 190.94 to 209.06

D 30. A random sample of 64 items is selected from a population of

400 items. The sample mean is 200 and the sample standard
deviation is 48. From this data, a 90% confidence interval to
estimate the population mean can be computed as _______.

M A. 189.21 to 210.79
Calc B. 188.24 to 211.76
C. 190.13 to 209.87
D. 190.94 to 209.06
 Chapter 8: Statistical Inference: Estimation for Single
Populations 217
A 31. A researcher wants to estimate the proportion of the population
which possess a given characteristic. A random sample of size
600 is taken resulting in 330 items which possess the
characteristic. The point estimate for this population proportion
is _______.

E A. 0.55
Calc B. 0.33
C. 0.60
D. 0.45

C 32. The normal distribution is used to test about a population mean

for large samples. "Large" is usually defined as _______.

E A. at least 100
Term B. at least 5% of the population size
C. at least 30
D. at least 12

B 33. The t test was developed by _______.

E A. Charles Student
Term B. William Gosset
C. deMoivre
D. Gauss

C 34. The t-distribution is similar to a normal distribution. However

the t-distribution is _______.

M A. not symmetric
Term B. bimodal
C. flatter
D. discrete

B 35. The t-distribution is similar to a normal distribution. However

the t-distribution is a _______.

M A. leptokurtic distribution
Term B. platykurtic distribution
C. mesopotamian distribution
D. discrete distribution
218 Test Bank
B 36. In order to find values in the t distribution table, you must
convert the sample size or sizes to _______.

E A. population sizes
Term B. degrees of freedom
C. Z values
D. student values

A 37. If the degrees of freedom in a t distribution get very large,

_______.

M A. the t values and the Z values are almost the same

Term B. the sample size must be very small
C. the population size must be very large
D. the sample mean approaches zero

B 38. The table t value associated with the upper 5% of the t

distribution and 12 degrees of freedom is _______.

E A. 2.179
Calc B. 1.782
C. 1.356
D. 3.055

D 39. The table t value associated with the upper 5% of the t

distribution and 14 degrees of freedom is _______.

E A. 2.977
Calc B. 2.624
C. 2.145
D. 1.761

A 40. The table t value associated with the upper 10% of the t
distribution and 23 degrees of freedom is _______.

E A. 1.319
Calc B. 1.714
C. 2.069
D. 1.321
 Chapter 8: Statistical Inference: Estimation for Single
Populations 219
B 41. The table t value associated with the upper 1% of the t
distribution and 5 degrees of freedom is _______.

E A. 4.032
Calc B. 3.365
C. 3.747
D. 1.476

A 42. The table t value associated with the upper 10% of the t
distribution and 17 degrees of freedom is _______.

E A. 1.333
Calc B. 1.337
C. 1.740
D. 2.567

D 43. The table t value associated with the upper 5% of the t

distribution and 15 degrees of freedom is _______.

E A. 2.947
Calc B. 2.602
C. 2.131
D. 1.753

A 44. The table t value associated with the upper 0.5% of the t
distribution and 4 degrees of freedom is _______.

E A. 4.604
Calc B. 2.776
C. 2.132
D. 2.353

B 45. The table t value associated with 10 degrees of freedom and

used to compute a 95% confidence interval is _______.

E A. 1.812
Calc B. 2.228
C. 3.169
D. 1.372
220 Test Bank
B 46. The table t value associated with 12 degrees of freedom and
used to compute a 95% confidence interval is _______.

E A. 3.055
Calc B. 2.179
C. 1.782
D. 1.796

B 47. The table t value associated with 21 degrees of freedom and

used to compute a 90% confidence interval is _______.

E A. 1.323
Calc B. 1.721
C. 2.080
D. 2.518

C 48. The table t value associated with 8 degrees of freedom and used
to compute a 99% confidence interval is _______.

E A. 1.397
Calc B. 1.860
C. 3.355
D. 2.896

C 49. A researcher is interested in estimating the mean value for a

population. She takes a random sample of 17 items and
computes a sample mean of 224 and a sample standard
deviation of 32. She decides to construct a 98% confidence
interval to estimate the mean. The degrees of freedom
associated with this problem are _______.

E A. 18
Calc B. 17
C. 16
D. 15
 Chapter 8: Statistical Inference: Estimation for Single
Populations 221
C 50. The lengths of steel rods produced by a shearing process are
normally distributed. A random sample of 10 rods is selected;
the sample mean length is 119.05 inches; and the sample
standard deviation is 0.10 inch. The 95% confidence interval for the 
population mean rod length is ______________.

M A. 118.99 to 119.11
BCalc B. 118.82 to 119.28
C. 118.98 to 119.12
D. 118.85 to 119.25

A 51. The lengths of steel rods produced by a shearing process are

normally distributed. A random sample of 10 rods is selected;
the sample mean length is 119.05 inches; and the sample
standard deviation is 0.10 inch. The 90% confidence interval for the 
population mean rod length is ______________.

M A. 118.99 to 119.11
BCalc B. 118.87 to 119.23
C. 119.00 to 119.10
D. 118.89 to 119.21

B 52. The weights of aluminum castings produced by a process are

normally distributed. A random sample of 5 castings is selected;
the sample mean weight is 2.21 pounds; and the sample
standard deviation is 0.12 pound. The 98% confidence interval for the 
population mean casting weight is _________.

M A. 1.76 to 2.66
BCalc B. 2.01 to 2.41
C. 2.08 to 2.34
D. 1.93 to 2.49

D 53. Life tests performed on a sample of 13 batteries of a new model

indicated: (1) an average life of 75 months, and (2) a standard
deviation of 5 months. Other battery models, produced by
similar processes, have normally distributed life spans. The 98% 
confidence interval for the population mean life of the new model is _________.

M A. 63.37 to 86.63
BCalc B. 61.60 to 88.41
C. 71.77 to 78.23
D. 71.28 to 78.72
222 Test Bank
 Chapter 8: Statistical Inference: Estimation for Single
Populations 223
C 54. Life tests performed on a sample of 13 batteries of a new model
indicated: (1) an average life of 75 months, and (2) a standard
deviation of 5 months. Other battery models, produced by
similar processes, have normally distributed life spans. The 90% 
confidence interval for the population mean life of the new model is _________.

M A. 66.78 to 83.23
BCalc B. 72.72 to 77.28
C. 72.53 to 77.47
D. 66.09 to 83.91

B 55. A researcher wants to estimate the proportion of the population

which possess a given characteristic. A random sample of size
800 is taken resulting in 360 items which possess the
characteristic. The point estimate for this population proportion
is _______.

E A. 0.55
Calc B. 0.45
C. 0.35
D. 0.65

A 56. A researcher wants to estimate the proportion of a population

which possess a given characteristic. A random sample of size
250 is taken and 40% of the sample possess the characteristic.
The 90% confidence interval to estimate the population
proportion is _______.

M A. 0.35 to 0.45
Calc B. 0.34 to 0.46
C. 0.37 to 0.43
D. 0.39 to 0.41

B 57. A researcher wants to estimate the proportion of a population

which possess a given characteristic. A random sample of size
250 is taken and 40% of the sample possess the characteristic.
The 95% confidence interval to estimate the population
proportion is _______.

M A. 0.35 to 0.45
Calc B. 0.34 to 0.46
C. 0.37 to 0.43
D. 0.39 to 0.41
224 Test Bank
C 58. A researcher wants to estimate the proportion of a population
which possess a given characteristic. A random sample of size
200 is taken and 30% of the sample possess the characteristic.
The 95% confidence interval to estimate the population
proportion is _______.

M A. 0.53 to 0.67
Calc B. 0.25 to 0.35
C. 0.24 to 0.36
D. 0.27 to 0.33

B 59. A researcher wants to estimate the proportion of a population

which possess a given characteristic. A random sample of size
200 is taken and 30% of the sample possess the characteristic.
The 90% confidence interval to estimate the population
proportion is _______.

M A. 0.53 to 0.67
Calc B. 0.25 to 0.35
C. 0.24 to 0.36
D. 0.27 to 0.33

D 60. A random sample of 225 items from a population results in 60%

possessing a given characteristic. Using this information, the
researcher constructs a 99% confidence interval to estimate the
population proportion. The resulting confidence interval is
_______.

M A. 0.54 to 0.66
Calc B. 0.59 to 0.61
C. 0.57 to 0.63
D. 0.52 to 0.68

A 61. A random sample of 225 items from a population results in 60%

possessing a given characteristic. Using this information, the
researcher constructs a 90% confidence interval to estimate the
population proportion. The resulting confidence interval is
_______.

M A. 0.546 to 0.654
Calc B. 0.536 to 0.664
C. 0.596 to 0.604
D. 0.571 to 0.629
 Chapter 8: Statistical Inference: Estimation for Single
Populations 225
A 62. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of
GFS e-mail for non-business communications. A random sample
of 200 e-mail messages was selected. Thirty of the messages
were not business related. The point estimate for this population
proportion is _______.

E A. 
BApp B. 0.300
C. 0.182
D. 0.667

A 63. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of

GFS e-mail for non-business communications. A random sample
of 200 e-mail messages was selected. Thirty of the messages
were not business related. The 90% confidence interval for the population 
proportion is _________.

M A. 0.108 to 0.192
BCalc B. 0.153 to 0.247
C. 0.091 to 0.209
D. 0.145 to 0.255

D 64. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of

GFS e-mail for non-business communications. A random sample
of 200 e-mail messages was selected. Thirty of the messages
were not business related. The 95% confidence interval for the population 
proportion is _________.

M A. 0.108 to 0.192
BCalc B. 0.153 to 0.247
C. 0.091 to 0.209
D. 0.101 to 0.199

C 65. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of

GFS e-mail for non-business communications. A random sample
of 200 e-mail messages was selected. Thirty of the messages
were not business related. The 98% confidence interval for the population 
proportion is _________.

M A. 0.108 to 0.192
BCalc B. 0.153 to 0.247
C. 0.091 to 0.209
D. 0.145 to 0.255
226 Test Bank
 Chapter 8: Statistical Inference: Estimation for Single
Populations 227
A 66. Catherine Chao, Director of Marketing Research, is evaluating
consumer acceptance of a new toothpaste package. She
randomly selects a sample of 200 households. Forty households
prefer the new package to all other package designs. The point
estimate for this population proportion is _______.

M A. 0.20
BCalc B. 0.25
C. 0.40
D. 0.45

B 67. Catherine Chao, Director of Marketing Research, is evaluating

consumer acceptance of a new toothpaste package. She
randomly selects a sample of 200 households. Forty households
prefer the new package to all other package designs. The 90% 
confidence interval for the population proportion is _________.

M A. 0.199 to 0.201
BCalc B. 0.153 to 0.247
C. 0.164 to 0.236
D. 0.145 to 0.255

C 68. Catherine Chao, Director of Marketing Research, is evaluating

consumer acceptance of a new toothpaste package. She
randomly selects a sample of 200 households. Forty households
prefer the new package to all other package designs. The 95% 
confidence interval for the population proportion is _________.

M A. 0.153 to 0.247
BCalc B. 0.199 to 02.01
C. 0.145 to 0.255
D. 0.198 to 0.202

C 69. Ophelia O'Brien, VP of Consumer Credit of American First Banks

(AFB), has implemented a 'fast feedback' to keep her informed
of the default rate on personal loans at the AFB member banks.
On each Friday, the default rate is calculated for a sample of 500
personal loans. Last Friday's sample contained 30 defaulted
loans. The point estimate for this population proportion is
_______.

M A. 0.0002
BCalc B. 16.670
228 Test Bank
C. 0.0600
D. 0.0333
 Chapter 8: Statistical Inference: Estimation for Single
Populations 229
A 70. Ophelia O'Brien, VP of Consumer Credit of American First Banks
(AFB), has implemented a 'fast feedback' to keep her informed
of the default rate on personal loans at the AFB member banks.
On each Friday, the default rate is calculated for a sample of 500
personal loans. Last Friday's sample contained 30 defaulted
loans. The 90% confidence interval for the population proportion is
_________.

M A. 0.043 to 0.077
BCalc B. 0.046 to 0.074
C. 0.039 to 0.081
D. 0.028 to 0.060

D 71. Ophelia O'Brien, VP of Consumer Credit of American First Banks

(AFB), has implemented a 'fast feedback' to keep her informed
of the default rate on personal loans at the AFB member banks.
On each Friday, the default rate is calculated for a sample of 500
personal loans. Last Friday's sample contained 30 defaulted
loans. The 95% confidence interval for the population proportion is
_________.

M A. 0.043 to 0.077
BCalc B. 0.046 to 0.074
C. 0.028 to 0.060
D. 0.039 to 0.081

A 72. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the service
level provided to walk­in customers.  Brian would like to minimize the variance 
of waiting time for these customers, since this would mean each customer 
received the same level of service.  Accordingly, his staff recorded the waiting 
times for 15 randomly selected walk­in customers, and determined that their mean
waiting time was 15 minutes and that the variance was 4 minutes.  The 90% 
confidence interval for the population variance of waiting times is  ________.

M A.  9.46 to 34.09
BCalc B.  56.25 to 64.87
C.  11.05 to 16.03
D.  8.58 to 39.79
230 Test Bank
D 73. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the service
level provided to walk­in customers.  Brian would like to minimize the variance 
of waiting time for these customers, since this would mean each customer 
received the same level of service.  Accordingly, his staff recorded the waiting 
times for 15 randomly selected walk­in customers, and determined that their mean
waiting time was 15 minutes and that the variance was 4 minutes.  The 95% 
confidence interval for the population variance of waiting times is  ________.

M A.  9.46 to 34.09
BCalc B.  56.25 to 64.87
C.  11.05 to 16.03
D.  8.58 to 39.79

C 74. Velma Vasquez, fund manager of the Vasquez Value Fund,

manages a portfolio of 250 common stocks. Velma relies on
various statistics, such as variance, to assess the overall risk of
stocks in an economic sector. Her staff reported that for a
sample 14 utility stocks the mean annualized return was 14%
and that the variance was 3%. The 90% confidence interval for the 
population variance of annualized returns is  _______.

M A.  0.018 to 0.064
BCalc B.  0.016 to 0.078
C.  0.017 to 0.066
D.  0.016 to 0.075

B 75. Velma Vasquez, fund manager of the Vasquez Value Fund,

manages a portfolio of 250 common stocks. Velma relies on
various statistics, such as variance, to assess the overall risk of
stocks in an economic sector. Her staff reported that for a
sample 14 utility stocks the mean annualized return was 14%
and that the variance was 3%. The 95% confidence interval for the 
population variance of annualized returns is  _______.

M A.  0.018 to 0.064
BCalc B.  0.016 to 0.078
C.  0.017 to 0.066
D.  0.016 to 0.075
 Chapter 8: Statistical Inference: Estimation for Single
Populations 231
D 76. James Desreumaux, VP of Human Resources of American First
Banks (AFB), is reviewing the employee training programs of AFB
banks. His staff randomly selected personnel files for 10 tellers
in the Southwest Region, and determined that their mean training time was 
25 hours and that the standard deviation was 5 hours.  The 90% confidence 
interval for the population variance of training times is  ________.

M A.  11.83 to 83.33
BCalc B.  2.37 to 16.67
C.  2.66 to 13.51
D.  13.30 to 67.57

A 77. James Desreumaux, VP of Human Resources of American First

Banks (AFB), is reviewing the employee training programs of AFB
banks. His staff randomly selected personnel files for 10 tellers
in the Southwest Region, and determined that their mean training time was 
25 hours and that the standard deviation was 5 hours.  The 95% confidence 
interval for the population variance of training times is  ________.

M A.  11.83 to 83.33
BCalc B.  2.37 to 16.67
C.  2.66 to 13.51
D.  13.30 to 67.57

B 78. The finite correction factor should be used if the sample size is
_______.

M A. less than 5% of the population size

Term B. more than 5% of the population size
C. less than 30
D. more than 100

B 79. In finding a confidence interval for the population mean, the

population standard deviation should be used if it is known. If
the population standard deviation is not known, then it should
be estimated with _______.

E A. the sample variance

Term B. the sample standard deviation
C. the range
D. the mean
232 Test Bank
 Chapter 8: Statistical Inference: Estimation for Single
Populations 233
A 80. What proportion of a population possesses a given
characteristic? To estimate this, a random sample of 1700
people are interviewed from the population. Seven hundred and
fourteen of the people sampled possess the characteristic. Using
this information, the researcher computes an 88% confidence
interval to estimate the proportion of the population who
possess the given characteristic. The resulting confidence
interval is _______.

M A. 0.401 to 0.439
Calc B. 0.409 to 0.431
C. 0.392 to 0.448
D. 0.389 to 0.451

A 81. In estimating the sample size necessary to estimate a

population mean, the error of estimation, E, is equal to _______.

E A. the distance between the sample mean and the population

mean
Term B. the distance between the sample mean and the variance
C. the Z score
D. the sample size

B 82. In estimating sample size, if the population standard deviation is

unknown, it can be estimated by using _______.

M A. the population mean

Term B. one-fourth of the range
C. one-half of the range
D. the Z score

C 83. Suppose a researcher wants to conduct a study to estimate the

population mean. He plans to use a 95% level of confidence to
estimate the mean, and the population standard deviation is
approximately 34. The researcher wants the error to be no more
than 4. The sample size should be at least _______.

M A. 7
Calc B. 196
C. 278
D. 1110
234 Test Bank
B 84. James Desreumaux, VP of Human Resources of American First
Banks (AFB), is reviewing the employee training programs of AFB
banks. He plans to use a 95% confidence interval estimate of
mean training time of tellers and is willing to accept an error of 1 hour; previous 
studies indicated a standard deviation of 2 hours. The sample size should
be at least _______.

M A.  4
BCalc B.  16
C.  34
D.  68

B 85. James Desreumaux, VP of Human Resources of American First

Banks (AFB), is reviewing the employee training programs of AFB
banks. He plans to use a 90% confidence interval estimate of
mean training time of tellers and is willing to accept an error of 1 hour; previous 
studies indicated a standard deviation of 5 hours. The sample size should
be at least _______.

M A.  4
BCalc B.  16
C.  34
D.  68

A 86. A researcher wants to determine the sample size necessary to

adequately conduct a study to estimate the population mean to
within 5 points. The range of population values is 80 and the
researcher plans to use a 90% level of confidence. The sample
size should be at least _______.

M A. 44
Calc B. 62
C. 216
D. 692

C 87. A study is going to be conducted in which a population mean will

be estimated using a 92% confidence interval. The estimate
needs to be within 12 of the actual population mean. The
population variance is estimated to be around 2500. The
necessary sample size should be at least _______.

M A. 15
 Chapter 8: Statistical Inference: Estimation for Single
Populations 235
Calc B. 47
C. 53
D. 638

B 88. In estimating the sample size necessary to estimate P, if there is

no good approximation for the value of P available, the value of
____ should be used as an estimate of P in the formula.

E A. 0.10
Term B. 0.50
C. 0.40
D. 1.96

D 89. A researcher wants to estimate the population proportion with a

95% level of confidence. He estimates from previous studies
that the population proportion is no more than .30. The
researcher wants the estimate to have an error of no more than .
03. The necessary sample size is at least _______.

M A. 27
Calc B. 188
C. 211
D. 897

C 90. Catherine Chao, Director of Marketing Research, is evaluating

consumer acceptance of a new toothpaste package. She plans
to use a 95% confidence interval estimate of the proportion of
households which prefer the new packages; she will accept a
0.05 error. Previous studies indicate that new packaging has an
approximately 70% acceptance rate. The sample size should be
at least _______.

M A. 27
BCalc B. 59
C. 323
D. 427

B 91. Catherine Chao, Director of Marketing Research, is evaluating

consumer acceptance of a new toothpaste package. She plans
to use a 80% confidence interval estimate of the proportion of
households which prefer the new packages; she will accept a
0.05 error. Previous studies indicate that new packaging has an
approximately 70% acceptance rate. The sample size should be
at least _______.
236 Test Bank

M A. 27
BCalc B. 59
C. 323
D. 427
 Chapter 8: Statistical Inference: Estimation for Single
Populations 237
A 92. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of
GFS e-mail for non-business communications. He plans to use a
95% confidence interval estimate of the proportion of e-mail
messages that are non-business; he will accept a 0.05 error.
Previous studies indicate that approximately 30% of employee e-
mail is not business related. Elwin should sample _______ e-mail
messages.

E A. 
BApp B. 12
C. 457
D. 14

C 93. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of

GFS e-mail for non-business communications. He plans to use a
98% confidence interval estimate of the proportion of e-mail
messages that are non-business; he will accept a 0.05 error.
Previous studies indicate that approximately 30% of employee e-
mail is not business related. Elwin should sample _______ e-mail
messages.

E A. 
BApp B. 12
C. 457
D. 14

D 94. A researcher wants to estimate the population proportion with a

90% level of confidence. She estimates from previous studies
that the population proportion is no more than .30. The
researcher wants the estimate to have an error of no more than .
02. The necessary sample size is at least _______.

M A. 29
Calc B. 47
C. 298
D. 1421

A 95. A study will be conducted to estimate the population proportion.

A level of confidence of 99% will be used and an error of no
more than .04 is desired. There is no knowledge as to what the
population proportion will be. The size of sample should be at
least _______.

M A. 1036
238 Test Bank
Calc B. 160
C. 41
D. 259

D 96. A researcher conducts a study to determine what the population

proportion is for a given characteristic. It is believed from
previous studies that the proportion of the population will be at
least .65. The researcher wants to use a 98% level of confidence.
He also wants the error to be no more than .03. The sample size
should be at least _______.

M A. 41
Calc B. 313
C. 1677
D. 1373

B 97. You wish to determine the proportion of all secretaries who are
familiar with a particular word processing package. You will
conduct a random survey. How large a sample should you take
if you want to be 95% confident of the results and within 0.05 of
the true population proportion?

M A. 73
Calc B. 384
C. 95
D. 277

C 98. You wish to determine the proportion of all secretaries who are
familiar with a particular word processing package. You will
conduct a random survey. How large a sample should you take
if you want to be 90% confident of the results and within 0.04 of
the true population proportion?

M A. 152
Calc B. 216
C. 423
D. 600

B 99. A bank officer wishes to estimate the amount of the average

total deposits per customer at the bank. She wishes the
estimate to be within $200 of the actual average with 95%
confidence. She assumes the standard deviation for this should
be $1000. How large should the sample be?

M A. 10
 Chapter 8: Statistical Inference: Estimation for Single
Populations 239
BCalc B. 96
C. 68
D. 19,208
240 Test Bank
B 100. A bank officer wishes to estimate the amount of the average
total deposits per customer at the bank. She wishes the
estimate to be within $100 of the actual average with 90%
confidence. She assumes the standard deviation for this should
be $800. How large should the sample be?

M A. 51
BCalc B. 173
C. 246
D. 17,318
 Chapter 8: Statistical Inference: Estimation for Single
Populations 241
101. While evaluating the service level provided to walk­in customers, Brian Vanecek,
VP of Operations at Portland Trust Bank, encountered resistance to some of his 
proposals from fellow executives.  Brian focuses on providing timely, efficient 
service to the banks customers; customers having to wait for service upsets him; 
and some customers share his philosophy, but not all.  The VP of Marketing 
points out that some customers (for various reasons) "don't want to rush in and 
out."  Moreover, the bank's management wants to provide a warm friendly 
atmosphere for customers.

Identify some potential segments of the bank's walk­in customers.  (Are drive­
through customers a distinct segment?)  How can a statistical analysis of walk­in 
customers help identify and evaluate service alternatives for the segments?  What 
estimates are needed?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
242 Test Bank
102. Stockton Steel, Inc. can qualify for a lucrative contract to supply
steel rods if it can meet the buyer’s process capability
requirements. Specifically, the buyer requires documented
evidence that the standard deviation of Stockton's process is no
more than 1/12th of the difference between the upper tolerance
limit and the lower tolerance limit,  £ (UTL - LTL)/12.

Sarah Shum, Director of Quality Programs, is assigned the task

of developing the documentation. She knows that variability of
the rod length depends on several factors: the operators' skill,
the mix used in the steel melt, the quality of materials used in
the mix, and the condition of the equipment.

Discuss Sarah's assignment. What estimates does she need?

Which departments must participate in the process capability
study? Which of these departments will not participate after
completion of the study?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
 Chapter 8: Statistical Inference: Estimation for Single
Populations 243
103. Alan Lessoff, VP of Marketing at CyberWarehouse, Inc. (CWI),
wants to learn more about online shoppers that visit the
CyperWarehouse web sites.

Identify some potential segments of the CWI's online shoppers.  (Are repeat­
visitors a distinct segment?)  How can a statistical analysis of online shoppers 
help identify and evaluate service alternatives, merchandise selection, and web 
site design for the segments?  What estimates are needed?

M
BApp
244 Test Bank
104. Online financial brokerages continue go grow with the Internet.
CyberMarkets, Inc. (CMI) advises e-commerce businesses on
their marketing strategies.

Addalie McMinn, VP of Research at CMI, expects increasingly

intense competition between online brokerages for new
customers as the industry matures.
She wants to learn more about the customers of online
brokerages; she wants to understand "what makes them tick" so
she can advise CMI clients how to compete more successfully.
What factors do these investors use to choose one broker over
another? Transaction costs? Basic service characteristics such
as fast order execution, and timely, well-organized statements?
Free tie-in services such as an address book, a calendar service,
and links to favorite web sites for gifts.

Should Addalie segment the customer population? Are all

factors equally important for all market segments? Does age,
gender, or professional occupation matter?  

How can a statistical analysis of online brokerage customers assist with stategy 
formulation?  Describe the statistical methods that will be useful to
Addalie during the study.  What estimates are needed?
M
BApp