Tutorial 5

5.1. Consider a finite population with five elements labeled A, B, C, D, and E. Ten
possible simple random samples of size 2 can be selected.

a. List the 10 samples beginning with AB, AC, and so on.

b. Using simple random sampling, what is the probability that each sample of size 2
is selected?
c. Assume random number 1 corresponds to A, random number 2 corresponds to B,
and so on. List the simple random sample of size 2 that will be selected by using
the random digits 8 5 0 2 4 5 3 2.

5.2. A population has a mean of 100 and a standard deviation of 50. A simple random
sample of size 400 will be taken and the sample mean will be used to estimate the
population mean.

a. What is the expected value of x ?

b. What is the standard deviation of x ?
c. Show the sampling distribution of x .
d. What does the sampling distribution of x show?

5.3. The mean annual cost of automobile insurance is $900. Assume that the standard
deviation is σ = $240. What is the probability that a simple random sample of automobile
insurance policies will have a sample mean within $25 of the population mean for each of
the following sample sizes: 30, 100, and 400?

5.4. BusinessWeek conducted a survey of graduates from 30 top MBA programs

(BusinessWeek, September 22, 2003). On the basis of the survey, assume that the mean
annual salary for male and female graduates 10 years after graduation is $168,000 and
$117,000, respectively. Assume the standard deviation for the male graduates is $40,000,
and for the female graduates it is $25,000.

a. What is the probability that a simple random sample of 40 male graduates will
provide a sample mean within $10,000 of the population mean, $168,000?
b. What is the probability that a simple random sample of 40 female graduates will
provide a sample mean within $10,000 of the population mean, $117,000?
c. In which of the preceding two cases, part (a) or part (b), do we have a higher
probability of obtaining a sample estimate within $10,000 of the population mean?
Why?
d. What is the probability that a simple random sample of 100 male graduates will
provide a sample mean more than $4000 below the population mean?
5.5. The Cincinnati Enquirer reported that, in the United States, 66% of adults and 87%
of youths ages 12 to 17 use the Internet (The Cincinnati Enquirer, February 7, 2006). Use
the reported numbers as the population proportions and assume that samples of 300
adults and 300 youths will be used to learn about attitudes toward Internet security.

a. Show the sampling distribution of where is the sample proportion of adults using
the Internet.
b. What is the probability that the sample proportion of adults using the Internet will
be within ± .04 of the population proportion?
c. What is the probability that the sample proportion of youths using the Internet will
be within ± .04 of the population proportion?
d. Is the probability different in parts (b) and (c)? If so, why? e. Answer part (b) for a
sample of size 600. Is the probability smaller? Why?