STATISTICS FOR BUSINESS AND SOCIAL SCIENCES (STA404)

TUTORIAL 3

1. Noise levels at various area urban hospitals were measured in decibels. The mean of the
noise levels in 84 corridors was 61.2 decibels, and the standard deviation was 7.9.
a) Find the 95% confidence interval of true mean.
b) For a sample of 24 operating rooms taken, the mean noise level was 41.6 decibels,
and standard deviation was 7.5. Find the 95% confidence interval of the true mean.
Answer
a) 𝑛 = 84, 𝑥̅ = 61.2, 𝑠 = 7.9  large sample, unknown σ
𝑠
𝑥̅ ± 𝑧
√𝑛
7.9
= 61.2 ± 𝑧 .
√84
7.9
= 61.2 ± (1.96)
√84
= (59.51, 62.89)

Thus, we are 95% confident that the true mean is between 59.51 decibels and 62.89
decibels.

b) 𝑛 = 24, 𝑥̅ = 41.6, 𝑠 = 7.5 small sample, unknown σ

𝑠
𝑥̅ ± 𝑡 ,
√𝑛
7.5
= 41.6 ± 𝑡 .
, √24
7.5
= 41.6 ± (2.069)
√24
= (38.43, 44.77)

Thus, we are 95% confident that the true mean is between 38.43 decibels and 44.77
decibels.

2. The average hemoglobin reading for a sample of 20 teachers was 16 grams per 100
milliliters, with a sample standard deviation of 2 grams. Find the 99% confidence interval of
the true mean.
𝑛 = 20, 𝑥̅ = 16, 𝑠 = 2 small sample, unknown σ
𝑠
𝑥̅ ± 𝑡 ,
√𝑛
2
= 16 ± 𝑡 .
,
√20
2
= 16 ± (2.861)
√20
= (14.72, 17.28)

Thus, we are 99% confident that the true mean is between 14.72 grams and 17.28 grams
per 100 millilitres.

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 STATISTICS FOR BUSINESS AND SOCIAL SCIENCES (STA404)

3. The research department at the company took a sample of 25 comparable textbooks and
collected information on their prices. This information produced a mean price of $90.50 for
this sample. It is known that the standard deviation of the prices of all such textbooks is
$7.50 and the population of such prices is normal
a) What is the point estimate of the mean price of all such college textbooks?
b) Construct a 90% confidence interval for the mean price of all such college textbooks.
Answer:
a) The point estimate of the mean price is RM90.50.
b) 𝑛 = 25, 𝑥̅ = 90.50, 𝜎 = 7.50 known σ
𝜎
𝑥̅ ± 𝑧
√𝑛
7.5
= 90.50 ± 𝑧 .
√25
7.5
= 90.50 ± (1.6449)
√25
= (88.03,92.97)

Thus, we are 90% confident that the true mean is between $88.03 and $92.97.

4. Sixty-four randomly selected adults who buy books for general reading were asked how
much they usually spend on book per year. The sample produced a mean of $1450 and a
standard deviation of $300 for such annual expenses. Determine a 99% confidence interval
for the corresponding population mean.
Answer:
𝑛 = 64, 𝑥̅ = 1450, 𝜎 = 300 large sample, unknown σ
𝑠
𝑥̅ ± 𝑧
√𝑛
300
= 1450 ± 𝑧 .
√64
300
= 1450 ± (2.5758)
√64
= (1353.41, 1546.59)

With 99% confidence, we can state that the true mean is between $1353.41 and $1546.59.

5. A business consultant wanted to investigate if providing day-care facilities on premises by

companies reduces the absentee rate of working mother with six-year-old or younger
children. She took a sample of 45 such mothers from companies that provide day-care
facilities on premises. These mothers missed an average of 6.4 days from work last year.
Another sample of 50 such mothers taken from companies that do not provide day-care
facilities on premises showed that these mothers missed an average of 9.3 days last year.
Assume that the standard deviations for the two populations are 1.20 days and 1.85 days
respectively. Construct a 98% confidence interval for the difference between the two
population means.
Answer:
Companies provide day-care : 𝑛 = 45, 𝑥̅ = 6.4, 𝜎 = 1.20
Companies do not provide day-care : 𝑛 = 50, 𝑥̅ = 9.3, 𝜎 = 1.85
 Large sample, σ1 and σ2 are known

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𝜎 𝜎
(𝑥̄ − 𝑥̄ ) ± 𝑧 +
𝑛 𝑛

1.20 1.85
= (6.4 − 9.3) ± 𝑧 + .
45 50
= (−2.9) ± (2.3263)(0.3170)
= (−3.64, −2.16)
With 98% confidence, we can state that the difference in the mean of absentee rate is
between 3.64 days and 2.16 days.

6. An insurance company wants to know if the average speed at which men drive cars is
greater than that of women drivers. The company took a random sample of 27 cars driven
by men on a highway and found the mean speed to be 72 miles per hour with a standard
deviation of 2.2 miles per hour. Another sample of 18 cars driven by women on the same
highway gave a mean speed of 68 miles per hour with a standard deviation of 2.5 miles per
hour. Assume that the speeds at which all men and all women driver cars on this highway
are both normally distributed and (12 = 22). Construct a 98% confidence interval for the
difference between the mean speeds of cars driven by all men and all women on this
highway.
Answer:
Men driver :𝑛 = 27, 𝑥̅ = 72 𝑠 = 2.2
Women driver : 𝑛 = 18, 𝑥̅ = 68 𝑠 = 2.5
 small sample, σ1 and σ2 are unknown and equal variances
1 1
(x̄ − x̄ ) ± t α
,
s +
n n

df = n + n − 2 = 27 + 18 − 2 = 43

(n − 1)s + (n − 1)s (27 − 1)2.2 + (18 − 1)2.5

s = = = 2.3232
n +n −2 27 + 18 − 2

1 1
= (72 − 68) ± t . (2.3232) +
, 27 18

Interpolation:
.
=  thus x=2.41805
. .

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 STATISTICS FOR BUSINESS AND SOCIAL SCIENCES (STA404)

1 1
= (72 − 68) ± (2.41805)(2.3232) +
27 18

= 4 ± 1.7094

= (2.29, 5.71)

With 98% confidence, we can state that the difference between the mean speeds of cars
driven by all men and all women is between 2.29 and 5.71miles per hour.

7. Several retired bicycle racers are coaching a large group of young prospects. They
randomly select seven of their riders to take part in a test of the effectiveness of a new
dietary supplement that is supposed to increase strength and stamina. Each of the seven
riders does a time trial on the same course. Then they all take dietary supplement for four
weeks. All other aspects of their training program remain as they were prior to the time trial.
At the end of the four week, these riders do another time trial on the same course. The times
(in minutes) recorded by each rider for these trials, before and after four-week period, are
shown in the following table.

Before 103 97 111 95 102 96 108

After 100 95 104 101 96 91 101

Construct a 99% confidence interval for the mean μd .

Answer:
 Paired sample

Before After Difference d^2

103 100 3 9
97 95 2 4
111 104 7 49
95 101 -6 36
102 96 6 36
96 91 5 25
108 101 7 49
24 208

24
𝑑̅ = = 3.43
7
(24)
208 −
𝑠 = 7 = 4.58
7−1

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 STATISTICS FOR BUSINESS AND SOCIAL SCIENCES (STA404)

4.58
3.43 ± 𝑡 .
,
√7
4.58
= 3.43 ± (3.707)
√7
= (−2.99, 9.85)

With 99% confidence, we can state that the difference between the mean times recorded
before and after four-week period is between −2.99and 9.85 minutes.

FORMULAE

CONFIDENCE INTERVALS
Parameter & description Two-sided (1 - )100% confidence interval

σ s
Mean , for large samples x ± zα 2 or x ± zα 2
n n

Mean , for small samples, s

x  tα 2 ; df = n – 1
variance 2 unknown n

Difference in means of two 1 1

normal distributions 1 - 2, (x1 - x 2 ) ± t α 2 sp + ;
n1 n 2
variances 12 = 22 and
unknown
(n1 - 1) s12 + (n 2 - 1) s 2 2
df = n1 + n2 – 2, sp =
n1 + n 2 - 2

Difference in means of two s12 s 2 2

normal distributions 1 - 2, (x1 - x 2 ) ± t α 2 + ;
n1 n2
variances 12  22 and
unknown
(s12 n1 + s 2 2 n 2 )2
df =
(s12 n1 )2 (s 2 2 n2 )
2
+
n1 - 1 n2 - 1

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 STATISTICS FOR BUSINESS AND SOCIAL SCIENCES (STA404)

Mean difference of two  sd 

normal distributions for d  t  2   ; df = n – 1 where n is no. of pairs
 n
paired samples, d

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