BUSA 2000: Statistical Analysis for Business

Topic #7 (Sampling & Interval Estimation) Problem Set

Directions: Complete these problems as many times as necessary, that is, until you feel confident in your
answers. Then, submit your final answers in Quizzes on our class MyCourses website before the assigned
due date/time. You may only submit your final answers once. When submitting your final answers, be
sure to follow any & all of the rounding & answer reporting rules that appear on the screen.
Not following these directions is likely to result in a lowered grade or possibly even a grade of 0%.

1. The following values are annual car insurance premiums ($) from a 2014 sample of car owners
living in Michigan. Use it to answer/do the following. Round everything to the penny, like
1,234.56 or 1,235.56 ± 789.12 for confidence intervals.

1,905 2,725 2,677 2,600 2,962 2,184 2,332 3,112 2,545 2,525

(a) Estimate the mean (average) car insurance premium.

(b) Develop a 90% confidence interval for the mean in (a).

(c) Develop a 95% confidence interval for the mean in (a).

(d) Develop a 99% confidence interval for the mean in (a).

(e) The national average car premium was $1,503 in 2014. Compare this to your answers for
(b)-(d). What can you say about car insurance in Michigan?

2. Disney’s Hannah Montana: The Movie opened in April 2009. The ticket sales revenue ($) for a
sample of theaters is below. Use it to answer/do the following. Round everything in (a)-(d) to
2 decimal places, like 1,234.56 or 1,235.56 ± 789.12 for confidence intervals. For (e)-(f ), you
may round to whole numbers.

20,200 8,350 10,750 13,900 13,185 10,150 7,300 6,240 4,200 21,400

(a) Estimate the mean (average) ticket sales revenue.

(b) Develop a 90% confidence interval for the mean in (a).

(c) Develop a 95% confidence interval for the mean in (a).

(d) Develop a 99% confidence interval for the mean in (a).

(e) If ticket prices were $7.16 on average, estimate the mean number of customers per theater.

(f) The movie was shown in 3,118 theaters. Estimate the number of people who saw the movie.
3. Wellpoint is a health insurer that provides online video doctor visits as a way to save patients
money. Below are the amounts saved ($) by a sample of patients in 2014. Use it to answer/do the
following. For (a), round your answer to 2 decimal places. For (b)-(d), report 2 decimal values
± 2 decimal values, like 1.23 ± 4.56.

92 105 56 76 93 78 53 34 83 49 90 45

(a) Estimate the mean (average) savings.

(b) Develop a 90% confidence interval for the mean in (a).

(c) Develop a 95% confidence interval for the mean in (a).

(d) Develop a 99% confidence interval for the mean in (a).

(e) Would it be okay for Wellpoint to claim they save patients about $100 on average?

(f) Would it be okay for Wellpoint to claim they save patients about $80 on average?

4. At GGC, 132 students were interviewed and 86 said that Dr. Wes Routon was the greatest
professor of all time. For (a), round to a 1 decimal percent, like 12.3%. For (b)-(d), report 1
decimal percents ± a 2 decimal percent, like 12.3% ± 4.56%.

(a) Estimate the proportion of students who think he’s the greatest.

(b) Develop a 90% confidence interval for the proportion in (a).

(c) Develop a 95% confidence interval for the proportion in (a).

(d) Develop a 99% confidence interval for the proportion in (a).

5. 4,100 voters were interviewed and 300 said they were going to vote for Ted. For (a), round to
a 1 decimal percent, like 12.3%. For (b)-(d), report 1 decimal percents ± a 1 decimal percent,
like 12.3% ± 4.5%.

(a) Estimate the proportion of voters who will vote for Ted.

(b) Develop a 90% confidence interval for the proportion in (a).

(c) Develop a 95% confidence interval for the proportion in (a).

(d) Develop a 99% confidence interval for the proportion in (a).