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BUSINESS STATISTICS COMMUNICATING

WITH NUMBERS 1ST EDITION JAGGIA

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Chapter 07

Sampling and Sampling Distributions

True / False Questions

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
1. A population consists of all items of interest in a statistical problem.

True False

2. We calculate a parameter to make inferences about a statistic.

True False

3. Bias refers to the tendency of a sample statistic to systematically over- or underestimate a


population parameter.

True False

4. Selection bias occurs when the sample is mistakenly divided into strata, and random samples
are drawn from each stratum.

True False

5. Nonresponse bias occurs when those responding to a survey or poll differ systematically from
the non-respondents.

True False

6. A simple random sample is a sample of n observations which has the same probability of
being selected from the population as any other sample of n observations.

True False

7. In stratified random sampling, the population is first divided up into mutually exclusive and
collectively exhaustive groups, called strata. A stratified sample includes randomly selected
observations from each stratum, which are proportional to the stratum's size.

True False

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
8. A sample consists of all items of interest in a statistical problem, whereas a population is a
subset of the population. We calculate a parameter to make inferences about the unknown
sample statistic.

True False

9. If we had access to data that encompass the entire population, then the values of the
parameters would be known and no statistical inference would be needed.

True False

10. A parameter is a random variable, whereas a sample statistic is a constant.

True False

11. When a statistic is used to estimate a parameter, the statistic is referred to as an estimator.
A particular value of the estimator is called an estimate.

True False

12. The standard deviation of equals the population standard deviation divided by the square

root of the sample size, or equivalently, .

True False

13. For any sample size n, the sampling distribution of is normal if the population from
which the sample is drawn is uniformly distributed.

True False

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
14. For any population with expected value µ and standard deviation σ, the sampling
distribution of will be approximately normal if the sample size n is sufficiently small. As a
general guideline, the normal distribution approximation is justified when .

True False

15. For any population proportion p, the sampling distribution of will be approximately normal
if the sample size n is sufficiently large. As a general guideline, the normal distribution

approximation is justified when and .

True False

Multiple Choice Questions

16. Which of the following is an example of a sample statistic?

A.

B. µ

C. σ

D. σ2

17. Which of the following is not a population parameter?

A.

B. µ

C. σ

D. σ2

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
18. A census is an example of __________.

A. Sample data

B. Sample statistic

C. Population data

D. Population parameter

19. Bias can occur in sampling. Bias refers to _____________________.

A. The division of the population into overlapping groups

B. The creation of strata, which are proportional to the stratum's size

C. The use of cluster sampling instead of stratified random sampling

D. The tendency of a sample statistic to systematically over- or underestimate a population


parameter

20. Selection bias occurs when ___________________.

A. The population has been divided into strata

B. Portions of the population are excluded from the consideration for the sample

C. Cluster sampling is used instead of stratified random sampling

D. Those responding to a survey or poll differ systematically from the non-respondents

21. Nonresponse bias occurs when _________________.

A. The population has been divided into strata

B. Portions of the population are excluded from the sample

C. Cluster sampling is used instead of stratified random sampling

D. Those responding to a survey or poll differ systematically from the non-respondents

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
22. Which of the following is not a form of bias?

A. Portions of the population are excluded from the sample.

B. Information from the sample is typical of information in the population.

C. Information from the sample overemphasizes a particular stratum of the population.

D. Those responding to a survey or poll differ systematically from the non-respondents.

23. Which of the following meets the requirements of a simple random sample?

A. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six people who volunteer for the sample.

B. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six people chosen at random, without regard to age.

C. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six males chosen at random, without regard to age.

D. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include two people chosen at random under the age of 25 and four
people chosen at random over 25.

24. Which of the following meets the requirements of a stratified random sample?

A. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six people who volunteer for the sample.

B. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six people chosen at random, without regard to age.

C. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include six males chosen at random, without regard to age.

D. A population contains 10 members under the age of 25 and 20 members over the age of
25. The sample will include two people chosen at random under the age of 25 and four
people chosen at random over 25.

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
25. Which of the following is true about statistics such as the sample mean or sample
proportion?

A. A statistic is a constant.

B. A statistic is a parameter.

C. A statistic is always known.

D. A statistic is a random variable.

26. Statistics are used to estimate population parameters, particularly when it is impossible or
too expensive to poll an entire population. A particular value of a statistic is referred to as
a(n) _______.

A. Mean

B. Stratum

C. Estimate

D. Finite correction factor

27. Which of the following is considered an estimator?

A.

B. µ

C. σ

D. σ2

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
28. Which of the following is considered an estimate?

A.

B.

C.

D.

29. What is the relationship between the expected value of the sample mean and the expected
value of the population?

A.

B.

C.

D.

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
30. How does the variance of the sample mean compare to the variance of the population?

A. It is smaller and therefore suggests that averages have less variation than individual
observations.

B. It is larger and therefore suggests that averages have less variation than individual
observations.

C. It is smaller and therefore suggests that averages have more variation than individual
observations.

D. It is larger and therefore suggests that averages have more variation than individual
observations.

31. What is the relationship between the standard deviation of the sample mean and the
population standard deviation?

A.

B.

C.

D.

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
32. A nursery sells trees of different types and heights. These trees average 60 inches in height
with a standard deviation of 16 inches. Suppose that 75 pine trees are sold for planting at
City Hall. What is the standard deviation for the sample mean?

A. 1.85

B. 3.41

C. 4

D. 16

33. If a population is known to be normally distributed, what can be said of the sampling
distribution of the sample mean drawn from this population?

A. For any sample size n, the sampling distribution of the sample mean is normally
distributed.

B. For a sample size , the sampling distribution of the sample mean is normally
distributed.

C. For a sample size , the sampling distribution of the sample mean is normally
distributed.

D. For a sample size , the sampling distribution of the sample mean is normally
distributed.

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
34. Over the entire six years that students attend an Ohio elementary school, they are absent, on
average, 28 days due to influenza. Assume that the standard deviation over this time period
is days. Upon graduation from elementary school, a random sample of 36 students is
taken and asked how many days of school they missed due to influenza.

Refer to Exhibit 7-1. What is the expected value for the sampling distribution of the number
of school days missed due to influenza?

A. 6

B. 9

C. 28

D. 168

35. Over the entire six years that students attend an Ohio elementary school, they are absent, on
average, 28 days due to influenza. Assume that the standard deviation over this time period
is days. Upon graduation from elementary school, a random sample of 36 students is
taken and asked how many days of school they missed due to influenza.

Refer to Exhibit 7-1. What is the standard deviation for the sampling distribution of the
number of school days missed due to influenza?

A. 1.22

B. 1.50

C. 2.25

D. 9.00

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
36. Over the entire six years that students attend an Ohio elementary school, they are absent, on
average, 28 days due to influenza. Assume that the standard deviation over this time period
is days. Upon graduation from elementary school, a random sample of 36 students is
taken and asked how many days of school they missed due to influenza.

Refer to Exhibit 7-1. The probability that the sample mean is less than 30 school days is
_______.

A. 0.0918

B. 0.4129

C. 0.5871

D. 0.9082

37. Over the entire six years that students attend an Ohio elementary school, they are absent, on
average, 28 days due to influenza. Assume that the standard deviation over this time period
is days. Upon graduation from elementary school, a random sample of 36 students is
taken and asked how many days of school they missed due to influenza.

Refer to Exhibit 7-1. The probability that the sample mean is between 25 and 30 school days
is ___________.

A. 0.0228

B. 0.0918

C. 0.8854

D. 0.9082

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
38. Suppose that, on average, electricians earn approximately dollars per year in the
United States. Assume that the distribution for electrician's yearly earnings is normally

distributed and that the standard deviation is dollars.

Refer to Exhibit 7-2. Given a sample of four electricians, what is the standard deviation for
the sampling distribution of the sample mean?

A. 6,000

B. 12,000

C. 36,000

D. 54,000

39. Suppose that, on average, electricians earn approximately dollars per year in the
United States. Assume that the distribution for electrician's yearly earnings is normally

distributed and that the standard deviation is dollars.

Refer to Exhibit 7-2. What is the probability that the average salary of four randomly selected
electricians exceeds $60,000?

A. 0.1587

B. 0.3085

C. 0.6915

D. 0.8413

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
40. Suppose that, on average, electricians earn approximately dollars per year in the
United States. Assume that the distribution for electrician's yearly earnings is normally

distributed and that the standard deviation is dollars.

Refer to Exhibit 7-2. What is the probability that the average salary of four randomly selected
electricians is less than $50,000?

A. 0.2514

B. 0.3707

C. 0.6293

D. 0.7486

41. Suppose that, on average, electricians earn approximately dollars per year in the
United States. Assume that the distribution for electrician's yearly earnings is normally

distributed and that the standard deviation is dollars.

Refer to Exhibit 7-2. What is the probability that the average salary of four randomly selected
electricians is more than $50,000 but less than $60,000?

A. 0.5899

B. 0.7486

C. 0.8413

D. 0.9048

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
42. Susan has been on a bowling team for 14 years. After examining all of her scores over that
period of time, she finds that they follow a normal distribution. Her average score is 225, with
a standard deviation of 13.

Refer to Exhibit 7-3. What is the probability that in a one-game playoff, her score is more
than 227?

A. 0.2676

B. 0.4404

C. 0.5596

D. 0.7324

43. Susan has been on a bowling team for 14 years. After examining all of her scores over that
period of time, she finds that they follow a normal distribution. Her average score is 225, with
a standard deviation of 13.

Refer to Exhibit 7-3. If during a typical week Susan bowls 16 games, what is the probability
that her average score is more than 230?

A. 0.0618

B. 0.3520

C. 0.6480

D. 0.9382

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
44. Susan has been on a bowling team for 14 years. After examining all of her scores over that
period of time, she finds that they follow a normal distribution. Her average score is 225, with
a standard deviation of 13.

Refer to Exhibit 7-3. If during a typical week Susan bowls 16 games, what is the probability
that her average score for the week is between 220 and 228?

A. 0.0618

B. 0.2390

C. 0.7594

D. 0.8212

45. Susan has been on a bowling team for 14 years. After examining all of her scores over that
period of time, she finds that they follow a normal distribution. Her average score is 225, with
a standard deviation of 13.

Refer to Exhibit 7-3. If during a typical month Susan bowls 64 games, what is the probability
that her average score in this month is above 227?

A. 0.1093

B. 0.4404

C. 0.5596

D. 0.8907

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
46. Professor Elderman has given the same multiple choice final exam in his Principles of
Microeconomics class for many years. After examining his records from the past 10 years, he
finds that the scores have a mean of 76 and a standard deviation of 12.

Refer to Exhibit 7-4. What is the probability that a class of 15 students will have a class
average greater than 70 on Professor Elderman's final exam?

A. 0.0262

B. 0.6915

C. 0.9738

D. Cannot be determined.

47. Professor Elderman has given the same multiple choice final exam in his Principles of
Microeconomics class for many years. After examining his records from the past 10 years, he
finds that the scores have a mean of 76 and a standard deviation of 12.

Refer to Exhibit 7-4. What is the probability that a class of 36 students will have an average
greater than 70 on Professor Elderman's final exam?

A. 0.0014

B. 0.3085

C. 0.6915

D. 0.9986

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
48. Professor Elderman has given the same multiple choice final exam in his Principles of
Microeconomics class for many years. After examining his records from the past 10 years, he
finds that the scores have a mean of 76 and a standard deviation of 12.

Refer to Exhibit 7-4. Professor Elderman offers his class of 36 a pizza party if the class
average is above 80. What is the probability that he will have to deliver on his promise?

A. 0.0228

B. 0.3707

C. 0.6293

D. 0.9772

49. Professor Elderman has given the same multiple choice final exam in his Principles of
Microeconomics class for many years. After examining his records from the past 10 years, he
finds that the scores have a mean of 76 and a standard deviation of 12.

Refer to Exhibit 7-4. What is the probability Professor Elderman's class of 36 has a class
average below 78?

A. 0.1587

B. 0.5675

C. 0.8413

D. Cannot be determined.

50. According to the central limit theorem, the distribution of the sample means is normal if
_______________.

A. The underlying population is normal

B. The sample size

C. If the standard deviation of the population is known

D. Both A and B are correct

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
51. The central limit theorem states that, for any distribution, as n gets larger, the sampling
distribution of the sample mean ____________.

A. Becomes larger

B. Becomes smaller

C. Is closer to a normal distribution

D. Is closer to the standard deviation

52. A random sample of size 36 is taken from a population with mean and standard
deviation .

Refer to Exhibit 7-5. What is the expected value and the standard deviation for the sampling
distribution of the sample mean?

A. Option A

B. Option B

C. Option C

D. Option D

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
53. A random sample of size 36 is taken from a population with mean and standard
deviation .

Refer to Exhibit 7-5. The probability that the sample mean is greater than 18 is _______.

A. 0.1587

B. 0.4325

C. 0.5675

D. 0.8413

54. A random sample of size 36 is taken from a population with mean and standard
deviation .

Refer to Exhibit 7-5. The probability that the sample mean is less than 15 is ________.

A. 0.0228

B. 0.3707

C. 0.6293

D. 0.9772

55. A random sample of size 36 is taken from a population with mean and standard
deviation .

Refer to Exhibit 7-5. The probability that the sample mean is between 15 and 18 is _______.

A. 0.0228

B. 0.8185

C. 0.8413

D. 0.8641

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
56. Using the central limit theorem, applied to the sampling distribution of the sample proportion,
what conditions must be met?

A.

B.

C.

D.

57. A random sample of size 100 is taken from a population described by the

proportion .

Refer to Exhibit 7-6. What is the expected value and the standard deviation for the sampling
distribution of the sample proportion?

A. Option A

B. Option B

C. Option C

D. Option D

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
58. A random sample of size 100 is taken from a population described by the

proportion .

Refer to Exhibit 7-6. The probability that the sample proportion is greater than 0.62 is
_______.

A. 0.3409

B. 0.4082

C. 0.6591

D.

59. A random sample of size 100 is taken from a population described by the

proportion .

Refer to Exhibit 7-6. The probability that the sample proportion is less than 0.55 is ________.

A.

B. 0.1539

C. 0.3669

D. 0.8461

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
60. A random sample of size 100 is taken from a population described by the

proportion .

Refer to Exhibit 7-6. The probability that the sample proportion is between 0.55 and 0.62 is
__________.

A. 0.1539

B. 0.5052

C. 0.6591

D. 0.8130

61. A university administrator expects that 25% of students in a core course will receive an A. He
looks at the grades assigned to 60 students.

Refer to Exhibit 7-7. What are the expected value and the standard deviation for the
proportion of students that receive an A?

A. Option A

B. Option B

C. Option C

D. Option D

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
62. A university administrator expects that 25% of students in a core course will receive an A. He
looks at the grades assigned to 60 students.

Refer to Exhibit 7-7. The probability that the proportion of students that receive an A is 0.20
or less is ________.

A. 0.1867

B. 0.6266

C. 0.8133

D. 0.8900

63. A university administrator expects that 25% of students in a core course will receive an A. He
looks at the grades assigned to 60 students.

Refer to Exhibit 7-7. The probability that the proportion of students who receive an A is
between 0.20 and 0.35 is _________.

A. 0.1867

B. 0.7766

C. 0.8133

D. 0.9633

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
64. A university administrator expects that 25% of students in a core course will receive an A. He
looks at the grades assigned to 60 students.

Refer to Exhibit 7-7. The probability that the proportion of students who receive an A is NOT
between 0.20 and 0.30 is _________.

A. 0.1867

B. 0.3734

C. 0.6266

D. 0.8133

65. The labor force participation rate is the number of people in the labor force divided by the
number of people in the country that are of working age and not institutionalized. The BLS
reported in February of 2012 that the labor force participation rate in the United States was
63.7% (Calculatedrisk.com). A marketing company asks 120 working-age people if they either
have a job or are looking for a job, or, in other words, whether they are in the labor force.

Refer to Exhibit 7-8. What is the expected value and the standard deviation for a labor
participation rate in the company's sample?

A. Option A

B. Option B

C. Option C

D. Option D

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
66. The labor force participation rate is the number of people in the labor force divided by the
number of people in the country that are of working age and not institutionalized. The BLS
reported in February of 2012 that the labor force participation rate in the United States was
63.7% (Calculatedrisk.com). A marketing company asks 120 working-age people if they either
have a job or are looking for a job, or, in other words, whether they are in the labor force.

Refer to Exhibit 7-8. For the company's sample, the probability that the proportion of people
who are in the labor force is greater than 0.65 is ___________.

A. 0.1179

B. 0.3000

C. 0.3821

D. 0.6179

67. The labor force participation rate is the number of people in the labor force divided by the
number of people in the country that are of working age and not institutionalized. The BLS
reported in February of 2012 that the labor force participation rate in the United States was
63.7% (Calculatedrisk.com). A marketing company asks 120 working-age people if they either
have a job or are looking for a job, or, in other words, whether they are in the labor force.

Refer to Exhibit 7-8. What is the probability that less than 60% of those surveyed are
members of the labor force?

A. 0.2005

B. 0.7995

C. 0.8400

D. 0.9706

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
68. The labor force participation rate is the number of people in the labor force divided by the
number of people in the country that are of working age and not institutionalized. The BLS
reported in February of 2012 that the labor force participation rate in the United States was
63.7% (Calculatedrisk.com). A marketing company asks 120 working-age people if they either
have a job or are looking for a job, or, in other words, whether they are in the labor force.

Refer to Exhibit 7-8. What is the probability that between 60% and 62.5% of those surveyed
are members of the labor force?

A. 0.0243

B. 0.1931

C. 0.2005

D. 0.3936

69. Super Bowl XLVI was played between the New York Giants and the New England Patriots in
Indianapolis. Due to a decade-long rivalry between the Patriots and the city's own team, the
Colts, most Indianapolis residents were rooting heartily for the Giants. Suppose that 90% of
Indianapolis residents wanted the Giants to beat the Patriots.

Refer to Exhibit 7-9. What is the probability that, of a sample of 100 Indianapolis residents, at
least 15% were rooting for the Patriots in Super Bowl XLVI?

A. 0.0300

B. 0.0475

C. 0.4763

D. 0.9525

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
70. Super Bowl XLVI was played between the New York Giants and the New England Patriots in
Indianapolis. Due to a decade-long rivalry between the Patriots and the city's own team, the
Colts, most Indianapolis residents were rooting heartily for the Giants. Suppose that 90% of
Indianapolis residents wanted the Giants to beat the Patriots.

Refer to Exhibit 7-9. What is the probability that from a sample of 100 Indianapolis residents,
fewer than 95% were rooting for the Giants in Super Bowl XLVI?

A. 0.0300

B. 0.0475

C. 0.4763

D. 0.9525

71. Super Bowl XLVI was played between the New York Giants and the New England Patriots in
Indianapolis. Due to a decade-long rivalry between the Patriots and the city's own team, the
Colts, most Indianapolis residents were rooting heartily for the Giants. Suppose that 90% of
Indianapolis residents wanted the Giants to beat the Patriots.

Refer to Exhibit 7-9. What is the probability that from a sample of 40 Indianapolis residents,
fewer than 95% were rooting for the Giants in Super Bowl XLIV?

A. 0.0474

B. 0.1469

C. 0.8531

D. Cannot be determined

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
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72. Super Bowl XLVI was played between the New York Giants and the New England Patriots in
Indianapolis. Due to a decade-long rivalry between the Patriots and the city's own team, the
Colts, most Indianapolis residents were rooting heartily for the Giants. Suppose that 90% of
Indianapolis residents wanted the Giants to beat the Patriots.

Refer to Exhibit 7-9. What is the probability that from a sample of 200 Indianapolis residents,
fewer than 170 were rooting for the Giants in Super Bowl XLIV?

A. 0.0091

B. 0.0212

C. 0.4954

D. 0.9908

73. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012),
Mississippi is the most conservative U.S. state, with 53.4 percent of its residents identifying
themselves as conservative.

Refer to Exhibit 7-10. What is the probability that at least 60% of a random sample of 200
Mississippi residents identify themselves as conservative?

A. 0.0307

B. 0.3530

C. 0.4847

D. 0.9693

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74. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012),
Mississippi is the most conservative U.S. state, with 53.4 percent of its residents identifying
themselves as conservative.

Refer to Exhibit 7-10. What is the probability that at least 100 but fewer than 115
respondents of a random sample of 200 Mississippi residents identify as conservative?

A. 0.1685

B. 0.3370

C. 0.7085

D. 0.8770

75. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012),
Mississippi is the most conservative U.S. state, with 53.4 percent of its residents identifying
themselves as conservative.

Refer to Exhibit 7-10. What is the probability that at least 50 respondents of a random sample
of 100 Mississippi residents do NOT identify themselves as conservative?

A. 0.0499

B. 0.2483

C. 0.4966

D. 0.7517

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76. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012),
Mississippi is the most conservative U.S. state, with 53.4 percent of its residents identifying
themselves as conservative.

Refer to Exhibit 7-10. What is the probability that fewer than 45 respondents of a random
sample of 100 Mississippi residents do NOT identify themselves as conservative?

A. 0.0499

B. 0.1873

C. 0.3745

D. 0.6255

77. Under what condition is the finite population correction factor used for computing the

standard deviations of and ?

A.

B.

C.

D.

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78. The finite correction factor is always _________________.

A. Less than one, and therefore increases the standard deviations of and computed
under the assumption of infinite population

B. Less than one, and therefore decreases the standard deviations of and computed
under the assumption of infinite population

C. Greater than one, and therefore increases the standard deviations of and computed
under the assumption of infinite population

D. Greater than one, and therefore decreases the standard deviations of and computed
under the assumption of infinite population

79. A local company makes snack size bags of potato chips. Each day, the company produces
batches of 400 snack size bags using a process designed to fill each bag with an average of 2
ounces of potato chips. However, due to imperfect technology, the actual amount placed in a
given bag varies. Assume the amount placed in each of the 400 bags is normally distributed
and has a standard deviation of 0.1 ounces. What is the probability that a sample of 40 bags
has an average weight of at least 2.02 ounces?

A. 0.0150

B. 0.0918

C. 0.1038

D. 0.4207

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80. Suppose 35% of homes in a Miami, Florida, neighborhood are under water (in other words,
the amount due on the mortgage is larger than the value of the home). There are 160 homes
in the neighborhood and 30 of those homes are owned by your friends. What is the probability
that less than 30% of your friend's homes are under water?

A. 0.2611

B. 0.2843

C. 0.6400

D. 0.7389

81. Successful firms must focus on the quality of the products and services that they offer. Which
factor(s) contributes to the quest for quality?

A. Global competition

B. Consumer expectations

C. Technological advances

D. All of the above

82. Acceptance sampling is a(n) ___________.

A. Division of the population into strata.

B. Plot of calculated statistics of the production process over time.

C. Inspection of a portion of the products at the completion of the production process.

D. Determination of a point at which the production process does not conform to


specifications.

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83. The detection approach to statistical quality control ____________.

A. Divides the population into strata

B. Inspects a portion of the products at the completion of the production process

C. Determines at which point the production process does not conform to specifications

D. Uses the finite correction factor when the sample size is not much smaller than the
population size

84. In any production process, variation in the quality of the end product is inevitable. Chance
variation, or common variation, refers to ___________.

A. The variation caused by stratified random sampling

B. The variation caused by the use of the finite correction factor

C. Specific events or factors that can usually be identified and eliminated

D. A number of randomly occurring events that are part of the production process.

85. In any production process, variations in the quality of the end product are inevitable.
Assignable variation refers to ___________.

A. The variation caused by stratified random sampling

B. The variation caused by the use of the finite correction factor

C. Specific events or factors that can usually be identified and eliminated

D. A number of randomly occurring events that are part of the production process

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forwarded, distributed, or posted on a website, in whole or part.
86. A local company makes snack size bags of potato chips. The company produces batches of
400 snack size bags using a process designed to fill each bag with an average of 2 ounces of
potato chips. However, due to imperfect technology, the actual amount placed in a given bag
varies. Assume the population of filling weights is normally distributed with a standard
deviation of 0.1 ounces. The company periodically weighs samples of 10 bags to ensure the
proper filling process. The last five sample means, in ounces, were 1.99, 2.02, 2.07, 1.96, and
2.01. Is the production process under control?

A. No, since the sample means show a downward trend

B. Yes, since the sample means show a downward trend

C. No, since the sample means fall within the upper and lower control limits

D. Yes, since the sample means fall within the upper and lower control limits

87. A manufacturing process produces computer chips in batches of 100. The firm believes that
the percent of defective computer chips is 2%. If in five batches the percent defective were
3%, 8%, 1%, 2%, and 7%, how many of these fell outside of the upper or lower control limits
for the proportion of defective computer chips in a batch?

A. 0

B. 1

C. 2

D. 3

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88. A random sample of 49 cast aluminum pots is taken from a production line once every day.
The number of defective pots is counted. The proportion of defective pots has been closely
examined in the past and is believed to be 0.05.

Refer to Exhibit 7-11. What are the upper and lower control limits for the chart?

A. Option A

B. Option B

C. Option C

D. Option D

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89. A random sample of 49 cast aluminum pots is taken from a production line once every day.
The number of defective pots is counted. The proportion of defective pots has been closely
examined in the past and is believed to be 0.05.

Refer to Exhibit 7-11. The sample proportions for the week are shown in the accompanying
table.

Is the production process in control?

A. No, since the sample proportions show a downward trend

B. No, since the sample proportions fall within the upper and lower control limits

C. Yes, since the sample proportions show a downward trend

D. Yes, since the sample proportions fall within the upper and lower control limits

Essay Questions

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90. The California Department of Education wants to gauge the difficulty of a new exam by
having a sample of students at a particular school take the exam. The quality of the students
at the chosen school varies widely and the school administrators are allowed to choose who
gets to take the exam. The administrators have a strong incentive for the school to do well on
the exam. Do you think the results will represent the true ability of the students at school?
What kind of bias if any do you think will be present? Explain.

91. The campaign manager for a candidate for governor in Arizona wants to conduct a poll to
better understand his candidate's chances for the upcoming election.

a. What is the population of interest?


b. Why may the poll be biased if a simple random sample of voters in the last gubernatorial
election (four years prior) is taken?

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92. It is known that college students at a local community college study 12 hours per week with a
standard deviation of 5 hours. What is the expected value and variance for a sample of nine
students?

93. A fast food restaurant uses an average of 110 grams of meat per burger patty. Suppose the
amount of meat in a burger patty is normally distributed with a standard deviation of 20
grams. What is the probability that the average amount of meat in four randomly selected
burgers is less than 105 grams?

94. Suppose residents in a well-to-do neighborhood pay an average overall tax rate of 25% with a
standard deviation of 8%. Assume tax rates are normally distributed. What is the probability
that the mean tax rate of 16 randomly selected residents is between 20% and 30%.

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95. Suppose the average casino patron in Las Vegas loses $110 dollars per day, with a standard
deviation of $700. Assume winnings/losses are normally distributed.

a. What is the probability that a random group of nine people average more than $500 in
winnings on their one day trip to Las Vegas?
b. What is the probability that a random group of nine people average more than $500 in
losses on their one day trip to Las Vegas?

96. A ski resort gets an average of 2,000 customers per weekday with a standard deviation of 800
customers. Assume the underlying distribution is normal. What is the probability a ski resort
averages between 1,500 customers and 3,000 customers per weekday over the course of four
weekdays?

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97. A mining company made some changes to their mining process in an attempt to save fuel.
Before the changes were made, it took an average of 20 gallons of diesel fuel to mine 1,000
pounds of copper. Suppose the standard deviation of fuel used per 1,000 pounds of copper
mined is 6 gallons. After the changes were made, the company only used an average of 18
gallons of diesel for the next 30,000 pounds of copper mined.

a. How unusual would it be to get a sample average of 18 gallons or less for 30,000 pounds of
copper mined if the changes to the mining process had no effect?
b. Do you think the changes in the mining process actually lowered the fuel used? Explain.

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98. A gym knows that each member, on average, spends 70 minutes at the gym per week, with a
standard deviation of 20 minutes. Assume the amount of time each customer spends at the
gym is normally distributed.

a. What is the probability that a randomly selected customer spends less than 65 minutes at
the gym?
b. Suppose the gym surveys a random sample of 49 members about the amount of time they
spend at the gym each week. What is the expected value and standard deviation of the
sample mean of the time spent at the gym?
c. If 49 members are randomly selected, what is the probability that the average time spent
at the gym exceeds 75 minutes?

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99. A book publisher knows that it takes an average of nine business days from when the
material for the book is finalized until the first edition is printed and ready to sell. Suppose
the exact amount of time has a standard deviation of four days.

a. Suppose the publisher examines the printing time for a sample of 36 books. What is the
probability that the sample mean time is shorter than eight days?
b. Suppose the publisher examines the printing time for a sample of 36 books. What is the
probability that the sample mean time is between 7 and 10 days?
c. Suppose the publisher signs a contract for the printer to print 100 books. If the average
printing time for the 100 books is longer than 9.3 days, the printer must pay a penalty. What
is the probability the penalty clause will be activated?
d. Suppose the publisher signs a contract for the printer to print 10 books. If the average
printing time for the 10 books is longer than 9.7 days, the printer must pay a penalty. What is
the probability the penalty clause will be activated?

100.In a large metropolitan area, the top providers for television and Internet services are a
phone company, a satellite company, and a cable company. The satellite company serves
43% of the homes in the area. What is the probability that in a survey of 1,000 homes, more
than 447 of them are served by the satellite company?

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101.In early 2012, the United States Congress approval rating was approximately 10%
(Reuters.com). In a poll of 400 Americans, what is the probability that their approval rating is
between 8% and 12%?

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102 A tutoring company claims that 75% of the high school students who hire one of their tutor's
. will improve their grades.

a. In a sample of 100 high school students, what is the probability that 80% or more
improved their grades?
b. In a sample of 200 high school students, what is the probability that 80% or more
improved their grades?
c. Comment on the reason for the difference between the computed probabilities in parts a
and b.
Answer: a. 0.1251 b. 0.0516 c. The standard deviation of is lower with a larger sample
size.

Feedback: a.

Transform into ;

b.

Transform into ;

c. The larger sample size in part b makes for a smaller standard deviation of and a

smaller probability of event .

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103.A school is required by the government to give some randomly chosen students a
standardized test. From previous experience, the school knows about 68% of their students
will receive passing scores in math and English. To improve funding, the school needs to
score at least 70% on the standardized test. This year the school can decide if it wants to
test 100 or 200 students. Should the school test 100 or 200 students? Explain.

104.The Office of Career Services at a major university knows that 74% of its graduates find full-
time positions in the field of their choosing within six months of graduation. Suppose the
Office of Career Services surveys 25 alumni six months after graduation.

a. What is the probability that at least 80% of the alumni have a job in the field of their
choosing?
b. What is the probability that between 60% and 76% of the alumni have a job in the field of
their choosing?
c. What is the probability that fewer than 60% of the alumni have a job in the field of their
choosing?

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105.Administrative assistants in a local university have been asked to prove their proficiency in
the use of spreadsheet software by taking a proficiency test. Historically, the mean test score
has been 74 with a standard deviation of 4. A random sample of size 40 is taken from the 100
administrative assistants and asked to complete the proficiency test.

a. Calculate the expected value and the standard deviation of the sample mean.
b. What is the probability that the sample mean score is more than 75, the predetermined
passing score?

106.In a small town, there are 3,000 registered voters. An editor of a local newspaper would like
to predict the outcome of the next election; in particular he is interested in the likelihood that
Eli Brady will be elected. The editor believes that Eli, a local hero, will garner 54% of the vote.
A poll of 500 registered voters is taken. Assuming that the editor's belief is true, calculate:

a. The expected value and the standard deviation of the sample proportion.
b. The probability that the sample proportion score is more than 0.58.

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107.A random sample of nine cast aluminum pots is taken from a production line once every hour.
The interior diameter of the pots is measured and the sample mean is calculated. The target
for the diameter is 12' and the standard deviation for the pot diameter is 0.05'. Assume the
pot diameter is normally distributed.

a. Construct the centerline and the upper and lower control limits for the chart.
b. The means of the samples for a given eight-hour day are 12.01, 12.06, 11.97, 12.08, 11.92,

11.95, 11.97, and 12.04. Plot these values on the chart.


c. Does it appear that the process is under control? Explain.

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108.In a recent investigation, the National Highway Traffic Safety Administration (NHTSA) found
that the Chevrolet Volt and other electric vehicles do not pose a greater risk of fire than
gasoline-powered vehicles (The Boston Globe, January 25, 2012). Specifically, it was
determined that "no discernible defect trend exists." Suppose a consumer advocacy group

wants to verify some of these claims by constructing a chart. The group expects 2% of
electric cars to catch fire each month. For each of the last six months, 500 electric car
owners are asked if their cars have caught fire. The following sample proportions are
obtained:

0.010 0.020 0.015 0.030 0.025 0.015

a. Assuming that the group expectation is correct, construct the centerline and the upper

and lower control limits for the chart.


b. Do the consumer group's findings support those of the NHTSA? Explain.

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109.A bottled water plant utilizes a production process designed to fill bottles with 20 ounces of
water. The population of filling volumes is normally distributed with a standard deviation of
1.3 ounces. Periodically, process engineers take 20-bottle samples and compute the sample
mean.

a. What are the upper and lower control limits?


b. Suppose the last five sample means were 19.4, 20.2, 20.5, 20.7, and 21.1 ounces. Is the
process under control?

110.A manufacturing process produces tubeless mountain bike tires in batches of 200. Past
records show that 6% of the tires will not hold air. An engineer tests five batches, each one
week apart, and shows the proportion of tires that will not hold air below.

Proportion of tires that will not hold air:

a. Construct the centerline and the upper control limit for chart.
b. Should the engineer be worried? Comment on any trend in the proportion of tubeless tires
that will not hold air.

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111.A large accounting firm gives out 1,000 job offers every year to new college graduates.
Suppose that 85% of those that received offers accept the position. The following shows the
number of graduates that have accepted jobs in the last four years.

Number of job offers accepted:

a. Construct the centerline and the upper and lower control limits for the chart.
b. Does the company need to worry about its ability to attract college graduates to the
firm?

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Chapter 07 Sampling and Sampling Distributions Answer Key

True / False Questions

1. A population consists of all items of interest in a statistical problem.

TRUE

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Differentiate between a population parameter and a sample statistic.
Topic: Sampling

2. We calculate a parameter to make inferences about a statistic.

FALSE

We calculate a sample statistic to make inferences about a population parameter.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Differentiate between a population parameter and a sample statistic.
Topic: Sampling

3. Bias refers to the tendency of a sample statistic to systematically over- or underestimate a


population parameter.

TRUE

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain common sample biases.
Topic: Sampling

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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
4. Selection bias occurs when the sample is mistakenly divided into strata, and random
samples are drawn from each stratum.

FALSE

Selection bias refers to a systematic exclusion of certain groups from consideration for the
sample.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain common sample biases.
Topic: Sampling

5. Nonresponse bias occurs when those responding to a survey or poll differ systematically
from the non-respondents.

TRUE

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Differentiate between a population parameter and a sample statistic.
Topic: Sampling

6. A simple random sample is a sample of n observations which has the same probability of
being selected from the population as any other sample of n observations.

TRUE

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-03 Describe simple random sampling.
Learning Objective: 07-04 Distinguish between stratified random sampling and cluster sampling.
Topic: Sampling

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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
7. In stratified random sampling, the population is first divided up into mutually exclusive and
collectively exhaustive groups, called strata. A stratified sample includes randomly
selected observations from each stratum, which are proportional to the stratum's size.

TRUE

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Distinguish between stratified random sampling and cluster sampling.
Topic: Sampling

8. A sample consists of all items of interest in a statistical problem, whereas a population is


a subset of the population. We calculate a parameter to make inferences about the
unknown sample statistic.

FALSE

A population consists of all items of interest in a statistical problem, whereas a sample is


a subset of the population. We calculate a sample statistic to make inferences about the
unknown population parameter.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Differentiate between a population parameter and a sample statistic.
Topic: Sampling

9. If we had access to data that encompass the entire population, then the values of the
parameters would be known and no statistical inference would be needed.

TRUE

AACSB: Analytic
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 07-01 Differentiate between a population parameter and a sample statistic.
Topic: Sampling

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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
10. A parameter is a random variable, whereas a sample statistic is a constant.

FALSE

A parameter is a constant, although its value may be unknown. A sample statistic, such as
the sample mean or the sample proportion, is a random variable whose value depends on
the chosen random sample.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

11. When a statistic is used to estimate a parameter, the statistic is referred to as an


estimator. A particular value of the estimator is called an estimate.

TRUE

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

12. The standard deviation of equals the population standard deviation divided by the

square root of the sample size, or equivalently, .

TRUE

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
13. For any sample size n, the sampling distribution of is normal if the population from
which the sample is drawn is uniformly distributed.

FALSE

For any sample size n, the sampling distribution of is normal if the population x from
which the sample is drawn is normally distributed.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

14. For any population with expected value µ and standard deviation σ, the sampling
distribution of will be approximately normal if the sample size n is sufficiently small. As
a general guideline, the normal distribution approximation is justified when .

FALSE

For any population x with expected value µ and standard deviation σ, the sampling
distribution of will be approximately normal if the sample size n is sufficiently large. As a
general guideline, the normal distribution approximation is justified when .

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-06 Explain the importance of the central limit theorem.
Topic: The Sampling Distribution of the Sample Mean

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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
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15. For any population proportion p, the sampling distribution of will be approximately
normal if the sample size n is sufficiently large. As a general guideline, the normal

distribution approximation is justified when and .

TRUE

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Explain the importance of the central limit theorem.
Topic: The Sampling Distribution of the Sample Mean

Multiple Choice Questions

16. Which of the following is an example of a sample statistic?

A.

B. µ

C. σ

D. σ2

is a sample statistic; µ, σ, and σ2are parameters.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Differentiate between a population parameter and a sample statistic.
Topic: Sampling

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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
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17. Which of the following is not a population parameter?

A.

B. µ

C. σ

D. σ2

is a sample statistic; µ, σ, and σ2 are population parameters.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Differentiate between a population parameter and a sample statistic.
Topic: Sampling

18. A census is an example of __________.

A. Sample data

B. Sample statistic

C. Population data

D. Population parameter

A census involves collecting all information of interest from an entire population. Consider
the U.S. census performed every 10 years.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Differentiate between a population parameter and a sample statistic.
Topic: Sampling

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
19. Bias can occur in sampling. Bias refers to _____________________.

A. The division of the population into overlapping groups

B. The creation of strata, which are proportional to the stratum's size

C. The use of cluster sampling instead of stratified random sampling

D. The tendency of a sample statistic to systematically over- or underestimate a


population parameter

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-02 Explain common sample biases.
Topic: Sampling

20. Selection bias occurs when ___________________.

A. The population has been divided into strata

B. Portions of the population are excluded from the consideration for the sample

C. Cluster sampling is used instead of stratified random sampling

D. Those responding to a survey or poll differ systematically from the non-respondents

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain common sample biases.
Topic: Sampling

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
21. Nonresponse bias occurs when _________________.

A. The population has been divided into strata

B. Portions of the population are excluded from the sample

C. Cluster sampling is used instead of stratified random sampling

D. Those responding to a survey or poll differ systematically from the non-respondents

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain common sample biases.
Topic: Sampling

22. Which of the following is not a form of bias?

A. Portions of the population are excluded from the sample.

B. Information from the sample is typical of information in the population.

C. Information from the sample overemphasizes a particular stratum of the population.

D. Those responding to a survey or poll differ systematically from the non-respondents.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Explain common sample biases.
Topic: Sampling

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
23. Which of the following meets the requirements of a simple random sample?

A. A population contains 10 members under the age of 25 and 20 members over the age
of 25. The sample will include six people who volunteer for the sample.

B. A population contains 10 members under the age of 25 and 20 members over the age
of 25. The sample will include six people chosen at random, without regard to age.

C. A population contains 10 members under the age of 25 and 20 members over the age
of 25. The sample will include six males chosen at random, without regard to age.

D. A population contains 10 members under the age of 25 and 20 members over the age
of 25. The sample will include two people chosen at random under the age of 25 and
four people chosen at random over 25.

A simple random sample is a sample of n observations that has the same probability of
being selected from the population as any other sample of n observations. The only option
that allows for this is option B.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-03 Describe simple random sampling.
Topic: Sampling

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
24. Which of the following meets the requirements of a stratified random sample?

A. A population contains 10 members under the age of 25 and 20 members over the age
of 25. The sample will include six people who volunteer for the sample.

B. A population contains 10 members under the age of 25 and 20 members over the age
of 25. The sample will include six people chosen at random, without regard to age.

C. A population contains 10 members under the age of 25 and 20 members over the age
of 25. The sample will include six males chosen at random, without regard to age.

D. A population contains 10 members under the age of 25 and 20 members over the age
of 25. The sample will include two people chosen at random under the age of 25 and
four people chosen at random over 25.

In stratified random sampling, the population is first divided up into mutually exclusive and
collectively exhaustive groups, called strata. A stratified sample includes randomly
selected observations from each stratum, which are proportional to the stratum's size. The
only option that allows for this is option D.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-04 Distinguish between stratified random sampling and cluster sampling.
Topic: Sampling

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
25. Which of the following is true about statistics such as the sample mean or sample
proportion?

A. A statistic is a constant.

B. A statistic is a parameter.

C. A statistic is always known.

D. A statistic is a random variable.

A parameter is a constant, although its value may be unknown. A statistic, such as the
sample mean or the sample proportion, is a random variable whose value depends on the
chosen random sample.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

26. Statistics are used to estimate population parameters, particularly when it is impossible or
too expensive to poll an entire population. A particular value of a statistic is referred to as
a(n) _______.

A. Mean

B. Stratum

C. Estimate

D. Finite correction factor

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
27. Which of the following is considered an estimator?

A.

B. µ

C. σ

D. σ2

Only the sample mean, , is an estimator, the others are parameters.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

28. Which of the following is considered an estimate?

A.

B.

C.

D.

An estimate is the value of a statistic; therefore, is an estimate.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
29. What is the relationship between the expected value of the sample mean and the
expected value of the population?

A.

B.

C.

D.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
30. How does the variance of the sample mean compare to the variance of the population?

A. It is smaller and therefore suggests that averages have less variation than individual
observations.

B. It is larger and therefore suggests that averages have less variation than individual
observations.

C. It is smaller and therefore suggests that averages have more variation than individual
observations.

D. It is larger and therefore suggests that averages have more variation than individual
observations.

Averages have less variation than individual observations. Since each sample is likely to
contain both high and low observations, the highs and lows cancel one another, making
the variation between sample means smaller than the variation between individual
observations.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
31. What is the relationship between the standard deviation of the sample mean and the
population standard deviation?

A.

B.

C.

D.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
32. A nursery sells trees of different types and heights. These trees average 60 inches in
height with a standard deviation of 16 inches. Suppose that 75 pine trees are sold for
planting at City Hall. What is the standard deviation for the sample mean?

A. 1.85

B. 3.41

C. 4

D. 16

Distractors: Wrong answers include population standard deviation and square root of
population standard deviation.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
33. If a population is known to be normally distributed, what can be said of the sampling
distribution of the sample mean drawn from this population?

A. For any sample size n, the sampling distribution of the sample mean is normally
distributed.

B. For a sample size , the sampling distribution of the sample mean is normally
distributed.

C. For a sample size , the sampling distribution of the sample mean is normally
distributed.

D. For a sample size , the sampling distribution of the sample mean is normally
distributed.

For any sample size n, the sampling distribution of is normal if the population x from
which the sample is drawn is normally distributed.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
34. Over the entire six years that students attend an Ohio elementary school, they are absent,
on average, 28 days due to influenza. Assume that the standard deviation over this time
period is days. Upon graduation from elementary school, a random sample of 36
students is taken and asked how many days of school they missed due to influenza.

Refer to Exhibit 7-1. What is the expected value for the sampling distribution of the
number of school days missed due to influenza?

A. 6

B. 9

C. 28

D. 168

Distractors: Wrong answers include the number of years of the study: 6,

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
35. Over the entire six years that students attend an Ohio elementary school, they are absent,
on average, 28 days due to influenza. Assume that the standard deviation over this time
period is days. Upon graduation from elementary school, a random sample of 36
students is taken and asked how many days of school they missed due to influenza.

Refer to Exhibit 7-1. What is the standard deviation for the sampling distribution of the
number of school days missed due to influenza?

A. 1.22

B. 1.50

C. 2.25

D. 9.00

Distractors: Wrong answers include , , .

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
36. Over the entire six years that students attend an Ohio elementary school, they are absent,
on average, 28 days due to influenza. Assume that the standard deviation over this time
period is days. Upon graduation from elementary school, a random sample of 36
students is taken and asked how many days of school they missed due to influenza.

Refer to Exhibit 7-1. The probability that the sample mean is less than 30 school days is
_______.

A. 0.0918

B. 0.4129

C. 0.5871

D. 0.9082

Transform into ; .

Distractors: Wrong answers include .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
37. Over the entire six years that students attend an Ohio elementary school, they are absent,
on average, 28 days due to influenza. Assume that the standard deviation over this time
period is days. Upon graduation from elementary school, a random sample of 36
students is taken and asked how many days of school they missed due to influenza.

Refer to Exhibit 7-1. The probability that the sample mean is between 25 and 30 school
days is ___________.

A. 0.0228

B. 0.0918

C. 0.8854

D. 0.9082

Transform into ; transform into

Distractors: Wrong answers include , , .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
38. Suppose that, on average, electricians earn approximately dollars per year in
the United States. Assume that the distribution for electrician's yearly earnings is normally

distributed and that the standard deviation is dollars.

Refer to Exhibit 7-2. Given a sample of four electricians, what is the standard deviation for
the sampling distribution of the sample mean?

A. 6,000

B. 12,000

C. 36,000

D. 54,000

Distractors: Wrong answers include σ, .

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
39. Suppose that, on average, electricians earn approximately dollars per year in
the United States. Assume that the distribution for electrician's yearly earnings is normally

distributed and that the standard deviation is dollars.

Refer to Exhibit 7-2. What is the probability that the average salary of four randomly
selected electricians exceeds $60,000?

A. 0.1587

B. 0.3085

C. 0.6915

D. 0.8413

Transform into ;

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
40. Suppose that, on average, electricians earn approximately dollars per year in
the United States. Assume that the distribution for electrician's yearly earnings is normally

distributed and that the standard deviation is dollars.

Refer to Exhibit 7-2. What is the probability that the average salary of four randomly
selected electricians is less than $50,000?

A. 0.2514

B. 0.3707

C. 0.6293

D. 0.7486

Transform into ;

Distractors: Wrong answers include , , and

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
41. Suppose that, on average, electricians earn approximately dollars per year in
the United States. Assume that the distribution for electrician's yearly earnings is normally

distributed and that the standard deviation is dollars.

Refer to Exhibit 7-2. What is the probability that the average salary of four randomly
selected electricians is more than $50,000 but less than $60,000?

A. 0.5899

B. 0.7486

C. 0.8413

D. 0.9048

Transform into and into

Distractors: Wrong answers include .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
42. Susan has been on a bowling team for 14 years. After examining all of her scores over that
period of time, she finds that they follow a normal distribution. Her average score is 225,
with a standard deviation of 13.

Refer to Exhibit 7-3. What is the probability that in a one-game playoff, her score is more
than 227?

A. 0.2676

B. 0.4404

C. 0.5596

D. 0.7324

Transform into ;

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
43. Susan has been on a bowling team for 14 years. After examining all of her scores over that
period of time, she finds that they follow a normal distribution. Her average score is 225,
with a standard deviation of 13.

Refer to Exhibit 7-3. If during a typical week Susan bowls 16 games, what is the probability
that her average score is more than 230?

A. 0.0618

B. 0.3520

C. 0.6480

D. 0.9382

Transform into ;

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
44. Susan has been on a bowling team for 14 years. After examining all of her scores over that
period of time, she finds that they follow a normal distribution. Her average score is 225,
with a standard deviation of 13.

Refer to Exhibit 7-3. If during a typical week Susan bowls 16 games, what is the probability
that her average score for the week is between 220 and 228?

A. 0.0618

B. 0.2390

C. 0.7594

D. 0.8212

Transform into and into ;

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
45. Susan has been on a bowling team for 14 years. After examining all of her scores over that
period of time, she finds that they follow a normal distribution. Her average score is 225,
with a standard deviation of 13.

Refer to Exhibit 7-3. If during a typical month Susan bowls 64 games, what is the
probability that her average score in this month is above 227?

A. 0.1093

B. 0.4404

C. 0.5596

D. 0.8907

Transform into ;

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
46. Professor Elderman has given the same multiple choice final exam in his Principles of
Microeconomics class for many years. After examining his records from the past 10 years,
he finds that the scores have a mean of 76 and a standard deviation of 12.

Refer to Exhibit 7-4. What is the probability that a class of 15 students will have a class
average greater than 70 on Professor Elderman's final exam?

A. 0.0262

B. 0.6915

C. 0.9738

D. Cannot be determined.

Since , we cannot use the Central Limit Theorem to determine the sampling
distribution of the sample mean.

Distractors: Wrong answers include and , if the sample mean was


normally distributed, as well as if x was normally distributed.

AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-06 Explain the importance of the central limit theorem.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
47. Professor Elderman has given the same multiple choice final exam in his Principles of
Microeconomics class for many years. After examining his records from the past 10 years,
he finds that the scores have a mean of 76 and a standard deviation of 12.

Refer to Exhibit 7-4. What is the probability that a class of 36 students will have an
average greater than 70 on Professor Elderman's final exam?

A. 0.0014

B. 0.3085

C. 0.6915

D. 0.9986

Transform into ;

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
48. Professor Elderman has given the same multiple choice final exam in his Principles of
Microeconomics class for many years. After examining his records from the past 10 years,
he finds that the scores have a mean of 76 and a standard deviation of 12.

Refer to Exhibit 7-4. Professor Elderman offers his class of 36 a pizza party if the class
average is above 80. What is the probability that he will have to deliver on his promise?

A. 0.0228

B. 0.3707

C. 0.6293

D. 0.9772

Transform into ;

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
49. Professor Elderman has given the same multiple choice final exam in his Principles of
Microeconomics class for many years. After examining his records from the past 10 years,
he finds that the scores have a mean of 76 and a standard deviation of 12.

Refer to Exhibit 7-4. What is the probability Professor Elderman's class of 36 has a class
average below 78?

A. 0.1587

B. 0.5675

C. 0.8413

D. Cannot be determined.

Transform into ; .

Distractors: Wrong answers include and if x was normally


distributed.

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
50. According to the central limit theorem, the distribution of the sample means is normal if
_______________.

A. The underlying population is normal

B. The sample size

C. If the standard deviation of the population is known

D. Both A and B are correct

For any sample size n, the sampling distribution of is normal if the population x from
which the sample is drawn is normally distributed. There is no need for the central limit
theorem in these instances. When the underlying distribution is unknown and , the
central limit theorem allows us to assume normality.

AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 07-06 Explain the importance of the central limit theorem.
Topic: The Sampling Distribution of the Sample Mean

51. The central limit theorem states that, for any distribution, as n gets larger, the sampling
distribution of the sample mean ____________.

A. Becomes larger

B. Becomes smaller

C. Is closer to a normal distribution

D. Is closer to the standard deviation

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Explain the importance of the central limit theorem.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
52. A random sample of size 36 is taken from a population with mean and standard
deviation .

Refer to Exhibit 7-5. What is the expected value and the standard deviation for the
sampling distribution of the sample mean?

A. Option A

B. Option B

C. Option C

D. Option D

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
53. A random sample of size 36 is taken from a population with mean and standard
deviation .

Refer to Exhibit 7-5. The probability that the sample mean is greater than 18 is _______.

A. 0.1587

B. 0.4325

C. 0.5675

D. 0.8413

Transform into ;

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
54. A random sample of size 36 is taken from a population with mean and standard
deviation .

Refer to Exhibit 7-5. The probability that the sample mean is less than 15 is ________.

A. 0.0228

B. 0.3707

C. 0.6293

D. 0.9772

Transform into ; .

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
55. A random sample of size 36 is taken from a population with mean and standard
deviation .

Refer to Exhibit 7-5. The probability that the sample mean is between 15 and 18 is
_______.

A. 0.0228

B. 0.8185

C. 0.8413

D. 0.8641

Transform into and into ;

Distractors: Wrong answers include , , and the sum of probabilities


instead of the difference.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
56. Using the central limit theorem, applied to the sampling distribution of the sample
proportion, what conditions must be met?

A.

B.

C.

D.

As a general guideline, the normal distribution approximation is justified when

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
57. A random sample of size 100 is taken from a population described by the

proportion .

Refer to Exhibit 7-6. What is the expected value and the standard deviation for the
sampling distribution of the sample proportion?

A. Option A

B. Option B

C. Option C

D. Option D

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
58. A random sample of size 100 is taken from a population described by the

proportion .

Refer to Exhibit 7-6. The probability that the sample proportion is greater than 0.62 is
_______.

A. 0.3409

B. 0.4082

C. 0.6591

D.

Transform into ;

Distractors: Wrong answers include the value of z and .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
59. A random sample of size 100 is taken from a population described by the

proportion .

Refer to Exhibit 7-6. The probability that the sample proportion is less than 0.55 is
________.

A.

B. 0.1539

C. 0.3669

D. 0.8461

Transform into ;

Distractors: Wrong answers include .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
60. A random sample of size 100 is taken from a population described by the

proportion .

Refer to Exhibit 7-6. The probability that the sample proportion is between 0.55 and 0.62 is
__________.

A. 0.1539

B. 0.5052

C. 0.6591

D. 0.8130

Transform into , and into

Distractors: Wrong answers include , , and the sum of


probabilities instead of the difference.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
61. A university administrator expects that 25% of students in a core course will receive an A.
He looks at the grades assigned to 60 students.

Refer to Exhibit 7-7. What are the expected value and the standard deviation for the
proportion of students that receive an A?

A. Option A

B. Option B

C. Option C

D. Option D

Distractors: Wrong answers include the

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
62. A university administrator expects that 25% of students in a core course will receive an A.
He looks at the grades assigned to 60 students.

Refer to Exhibit 7-7. The probability that the proportion of students that receive an A is
0.20 or less is ________.

A. 0.1867

B. 0.6266

C. 0.8133

D. 0.8900

Transform into ;

Distractors: Wrong answers include the absolute value of z and .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
63. A university administrator expects that 25% of students in a core course will receive an A.
He looks at the grades assigned to 60 students.

Refer to Exhibit 7-7. The probability that the proportion of students who receive an A is
between 0.20 and 0.35 is _________.

A. 0.1867

B. 0.7766

C. 0.8133

D. 0.9633

Transform into ; transform into

Distractors: Wrong answers include , and .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
64. A university administrator expects that 25% of students in a core course will receive an A.
He looks at the grades assigned to 60 students.

Refer to Exhibit 7-7. The probability that the proportion of students who receive an A is
NOT between 0.20 and 0.30 is _________.

A. 0.1867

B. 0.3734

C. 0.6266

D. 0.8133

Transform into ; transform into

. Then,

Distractors: Wrong answers include , and .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
65. The labor force participation rate is the number of people in the labor force divided by the
number of people in the country that are of working age and not institutionalized. The BLS
reported in February of 2012 that the labor force participation rate in the United States
was 63.7% (Calculatedrisk.com). A marketing company asks 120 working-age people if
they either have a job or are looking for a job, or, in other words, whether they are in the
labor force.

Refer to Exhibit 7-8. What is the expected value and the standard deviation for a labor
participation rate in the company's sample?

A. Option A

B. Option B

C. Option C

D. Option D

, .

Distractors: Wrong answers include the .

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
66. The labor force participation rate is the number of people in the labor force divided by the
number of people in the country that are of working age and not institutionalized. The BLS
reported in February of 2012 that the labor force participation rate in the United States
was 63.7% (Calculatedrisk.com). A marketing company asks 120 working-age people if
they either have a job or are looking for a job, or, in other words, whether they are in the
labor force.

Refer to Exhibit 7-8. For the company's sample, the probability that the proportion of
people who are in the labor force is greater than 0.65 is ___________.

A. 0.1179

B. 0.3000

C. 0.3821

D. 0.6179

Transform into ;

Distractors: Wrong answers include the value of z and .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
67. The labor force participation rate is the number of people in the labor force divided by the
number of people in the country that are of working age and not institutionalized. The BLS
reported in February of 2012 that the labor force participation rate in the United States
was 63.7% (Calculatedrisk.com). A marketing company asks 120 working-age people if
they either have a job or are looking for a job, or, in other words, whether they are in the
labor force.

Refer to Exhibit 7-8. What is the probability that less than 60% of those surveyed are
members of the labor force?

A. 0.2005

B. 0.7995

C. 0.8400

D. 0.9706

Transform into ;

Distractors: Wrong answers include the absolute value of z, , and

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
68. The labor force participation rate is the number of people in the labor force divided by the
number of people in the country that are of working age and not institutionalized. The BLS
reported in February of 2012 that the labor force participation rate in the United States
was 63.7% (Calculatedrisk.com). A marketing company asks 120 working-age people if
they either have a job or are looking for a job, or, in other words, whether they are in the
labor force.

Refer to Exhibit 7-8. What is the probability that between 60% and 62.5% of those
surveyed are members of the labor force?

A. 0.0243

B. 0.1931

C. 0.2005

D. 0.3936

Transform into into

Distractors: Wrong answers include , , and .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
69. Super Bowl XLVI was played between the New York Giants and the New England Patriots
in Indianapolis. Due to a decade-long rivalry between the Patriots and the city's own team,
the Colts, most Indianapolis residents were rooting heartily for the Giants. Suppose that
90% of Indianapolis residents wanted the Giants to beat the Patriots.

Refer to Exhibit 7-9. What is the probability that, of a sample of 100 Indianapolis residents,
at least 15% were rooting for the Patriots in Super Bowl XLVI?

A. 0.0300

B. 0.0475

C. 0.4763

D. 0.9525

Note that if at least 15% of the residents are rooting for the Patriots, less than 85% are

rooting for the Giants. Transform into ;

Distractors: Wrong answers include and

AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
70. Super Bowl XLVI was played between the New York Giants and the New England Patriots
in Indianapolis. Due to a decade-long rivalry between the Patriots and the city's own team,
the Colts, most Indianapolis residents were rooting heartily for the Giants. Suppose that
90% of Indianapolis residents wanted the Giants to beat the Patriots.

Refer to Exhibit 7-9. What is the probability that from a sample of 100 Indianapolis
residents, fewer than 95% were rooting for the Giants in Super Bowl XLVI?

A. 0.0300

B. 0.0475

C. 0.4763

D. 0.9525

Transform into ;

Distractors: Wrong answers include and

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
71. Super Bowl XLVI was played between the New York Giants and the New England Patriots
in Indianapolis. Due to a decade-long rivalry between the Patriots and the city's own team,
the Colts, most Indianapolis residents were rooting heartily for the Giants. Suppose that
90% of Indianapolis residents wanted the Giants to beat the Patriots.

Refer to Exhibit 7-9. What is the probability that from a sample of 40 Indianapolis
residents, fewer than 95% were rooting for the Giants in Super Bowl XLIV?

A. 0.0474

B. 0.1469

C. 0.8531

D. Cannot be determined

Since , we are unable to determine the sampling

distribution of

Distractors: Wrong answers include if was normally

distributed, as well as

AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
72. Super Bowl XLVI was played between the New York Giants and the New England Patriots
in Indianapolis. Due to a decade-long rivalry between the Patriots and the city's own team,
the Colts, most Indianapolis residents were rooting heartily for the Giants. Suppose that
90% of Indianapolis residents wanted the Giants to beat the Patriots.

Refer to Exhibit 7-9. What is the probability that from a sample of 200 Indianapolis
residents, fewer than 170 were rooting for the Giants in Super Bowl XLIV?

A. 0.0091

B. 0.0212

C. 0.4954

D. 0.9908

Transform into ;

Distractors: Wrong answers include and

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
73. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012),
Mississippi is the most conservative U.S. state, with 53.4 percent of its residents
identifying themselves as conservative.

Refer to Exhibit 7-10. What is the probability that at least 60% of a random sample of 200
Mississippi residents identify themselves as conservative?

A. 0.0307

B. 0.3530

C. 0.4847

D. 0.9693

Transform into ;

Distractors: Wrong answers include and

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
74. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012),
Mississippi is the most conservative U.S. state, with 53.4 percent of its residents
identifying themselves as conservative.

Refer to Exhibit 7-10. What is the probability that at least 100 but fewer than 115
respondents of a random sample of 200 Mississippi residents identify as conservative?

A. 0.1685

B. 0.3370

C. 0.7085

D. 0.8770

Transform into and

into

Distractors: Wrong answers include and

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
75. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012),
Mississippi is the most conservative U.S. state, with 53.4 percent of its residents
identifying themselves as conservative.

Refer to Exhibit 7-10. What is the probability that at least 50 respondents of a random
sample of 100 Mississippi residents do NOT identify themselves as conservative?

A. 0.0499

B. 0.2483

C. 0.4966

D. 0.7517

Note that if at least 50 respondents do not identify themselves as conservative, then fewer

than 50 respondents do identify themselves as conservative. Transform into

Distractors: Wrong answers include and

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
76. According to the 2011 Gallup daily tracking polls (www.gallup.com, February 3, 2012),
Mississippi is the most conservative U.S. state, with 53.4 percent of its residents
identifying themselves as conservative.

Refer to Exhibit 7-10. What is the probability that fewer than 45 respondents of a random
sample of 100 Mississippi residents do NOT identify themselves as conservative?

A. 0.0499

B. 0.1873

C. 0.3745

D. 0.6255

Note that if fewer than 45 respondents do not identify themselves as conservative, then at

least 55 respondents do identify themselves as conservative. Transform into

Distractors: Wrong answers include and

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
77. Under what condition is the finite population correction factor used for computing the

standard deviations of and ?

A.

B.

C.

D.

As a general guideline, we use the finite factor correction when the sample constitutes at

least 5% of the population—that is, .

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Use a finite population correction factor.
Topic: The Finite Population Correction Factor

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
78. The finite correction factor is always _________________.

A. Less than one, and therefore increases the standard deviations of and computed
under the assumption of infinite population

B. Less than one, and therefore decreases the standard deviations of and

computed under the assumption of infinite population

C. Greater than one, and therefore increases the standard deviations of and

computed under the assumption of infinite population

D. Greater than one, and therefore decreases the standard deviations of and

computed under the assumption of infinite population

AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 07-08 Use a finite population correction factor.
Topic: The Finite Population Correction Factor

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
79. A local company makes snack size bags of potato chips. Each day, the company produces
batches of 400 snack size bags using a process designed to fill each bag with an average
of 2 ounces of potato chips. However, due to imperfect technology, the actual amount
placed in a given bag varies. Assume the amount placed in each of the 400 bags is
normally distributed and has a standard deviation of 0.1 ounces. What is the probability
that a sample of 40 bags has an average weight of at least 2.02 ounces?

A. 0.0150

B. 0.0918

C. 0.1038

D. 0.4207

Transform into ;

Distractors: Wrong answers include in the absence of the finite


correction factor, and .

AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-08 Use a finite population correction factor.
Topic: The Finite Population Correction Factor

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
80. Suppose 35% of homes in a Miami, Florida, neighborhood are under water (in other words,
the amount due on the mortgage is larger than the value of the home). There are 160
homes in the neighborhood and 30 of those homes are owned by your friends. What is the
probability that less than 30% of your friend's homes are under water?

A. 0.2611

B. 0.2843

C. 0.6400

D. 0.7389

Distractors: Wrong answers include the absolute value of z, , and

without a correction factor.

AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-08 Use a finite population correction factor.
Topic: The Finite Population Correction Factor

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
81. Successful firms must focus on the quality of the products and services that they offer.
Which factor(s) contributes to the quest for quality?

A. Global competition

B. Consumer expectations

C. Technological advances

D. All of the above

Global competition, technological advances, and consumer expectations are all factors
contributing to the quest for quality.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

82. Acceptance sampling is a(n) ___________.

A. Division of the population into strata.

B. Plot of calculated statistics of the production process over time.

C. Inspection of a portion of the products at the completion of the production process.

D. Determination of a point at which the production process does not conform to


specifications.

A firm uses acceptance sampling if, at the completion of the production process, the firm
inspects a portion of the products. If a particular product does not conform to certain
specifications, then it is either discarded or repaired.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
83. The detection approach to statistical quality control ____________.

A. Divides the population into strata

B. Inspects a portion of the products at the completion of the production process

C. Determines at which point the production process does not conform to specifications

D. Uses the finite correction factor when the sample size is not much smaller than the
population size

A firm using the detection approach inspects the production process and determines at
which point the production process does not conform to specifications.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

84. In any production process, variation in the quality of the end product is inevitable. Chance
variation, or common variation, refers to ___________.

A. The variation caused by stratified random sampling

B. The variation caused by the use of the finite correction factor

C. Specific events or factors that can usually be identified and eliminated

D. A number of randomly occurring events that are part of the production process.

Common variation is caused by a number of randomly occurring events that are part of the
production process. This type of variation is not generally considered under the control of
the individual worker or machine.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
85. In any production process, variations in the quality of the end product are inevitable.
Assignable variation refers to ___________.

A. The variation caused by stratified random sampling

B. The variation caused by the use of the finite correction factor

C. Specific events or factors that can usually be identified and eliminated

D. A number of randomly occurring events that are part of the production process

Special variation in the production process is caused by specific events or factors that can
usually be identified and eliminated. This type of variation is generally considered under
the control of the individual worker or machine.

AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
86. A local company makes snack size bags of potato chips. The company produces batches
of 400 snack size bags using a process designed to fill each bag with an average of 2
ounces of potato chips. However, due to imperfect technology, the actual amount placed
in a given bag varies. Assume the population of filling weights is normally distributed with
a standard deviation of 0.1 ounces. The company periodically weighs samples of 10 bags
to ensure the proper filling process. The last five sample means, in ounces, were 1.99,
2.02, 2.07, 1.96, and 2.01. Is the production process under control?

A. No, since the sample means show a downward trend

B. Yes, since the sample means show a downward trend

C. No, since the sample means fall within the upper and lower control limits

D. Yes, since the sample means fall within the upper and lower control limits

UCL: ;

LCL: . All sample means fall randomly between the lower


and upper control limits, indicating the process is under control.

AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
87. A manufacturing process produces computer chips in batches of 100. The firm believes
that the percent of defective computer chips is 2%. If in five batches the percent defective
were 3%, 8%, 1%, 2%, and 7%, how many of these fell outside of the upper or lower control
limits for the proportion of defective computer chips in a batch?

A. 0

B. 1

C. 2

D. 3

Since a defect percentage


cannot be less than 0, we use LCL = 0.

7% and 8% were outside the control limits. So, two of the points were outside the control
limits.
Distractors: Wrong answers include other possible values for the number of batches that
fell outside the UCL and LCL.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
88. A random sample of 49 cast aluminum pots is taken from a production line once every day.
The number of defective pots is counted. The proportion of defective pots has been
closely examined in the past and is believed to be 0.05.

Refer to Exhibit 7-11. What are the upper and lower control limits for the chart?

A. Option A

B. Option B

C. Option C

D. Option D

UCL: ;

LCL: . Since a defect percentage


cannot be less than 0, we use LCL = 0.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
89. A random sample of 49 cast aluminum pots is taken from a production line once every day.
The number of defective pots is counted. The proportion of defective pots has been
closely examined in the past and is believed to be 0.05.

Refer to Exhibit 7-11. The sample proportions for the week are shown in the
accompanying table.

Is the production process in control?

A. No, since the sample proportions show a downward trend

B. No, since the sample proportions fall within the upper and lower control limits

C. Yes, since the sample proportions show a downward trend

D. Yes, since the sample proportions fall within the upper and lower control limits

All sample proportions fall randomly between the lower and upper control limits.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

Essay Questions

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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
90. The California Department of Education wants to gauge the difficulty of a new exam by
having a sample of students at a particular school take the exam. The quality of the
students at the chosen school varies widely and the school administrators are allowed to
choose who gets to take the exam. The administrators have a strong incentive for the
school to do well on the exam. Do you think the results will represent the true ability of the
students at school? What kind of bias if any do you think will be present? Explain.

Results will be biased because of selection bias.

Feedback: The administrators will probably systematically choose the good students to
take the test. This is a systematic exclusion of the bad students from the sample and will
lead to a biased score. This is called selection bias.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-02 Explain common sample biases.
Topic: Sampling

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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
91. The campaign manager for a candidate for governor in Arizona wants to conduct a poll to
better understand his candidate's chances for the upcoming election.

a. What is the population of interest?


b. Why may the poll be biased if a simple random sample of voters in the last
gubernatorial election (four years prior) is taken?

a. voters in the upcoming election; b. selection bias

Feedback:
a. The campaign manager wants to know how voters in the upcoming election view his
candidate. That is the population of interest.
b. Voters from the last election may not vote in the coming election. Voters who were too
young to vote four years ago are not included using this sampling method. Additionally,
migration into and out of Arizona will change the voter rolls over a four-year period.

AACSB: Reflective Thinking


Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-02 Explain common sample biases.
Topic: Sampling

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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
92 It is known that college students at a local community college study 12 hours per week with a
. standard deviation of 5 hours. What is the expected value and variance for a sample of nine
students?

Feedback: ,

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

93. A fast food restaurant uses an average of 110 grams of meat per burger patty. Suppose the
amount of meat in a burger patty is normally distributed with a standard deviation of 20
grams. What is the probability that the average amount of meat in four randomly selected
burgers is less than 105 grams?

Feedback:

Transform into ; .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
9 Suppose residents in a well-to-do neighborhood pay an average overall tax rate of 25% with a
4. standard deviation of 8%. Assume tax rates are normally distributed. What is the probability
that the mean tax rate of 16 randomly selected residents is between 20% and 30%.

Feedback: Transform into ;

transform into ;

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
95 Suppose the average casino patron in Las Vegas loses $110 dollars per day, with a standard
. deviation of $700. Assume winnings/losses are normally distributed.

a. What is the probability that a random group of nine people average more than $500 in
winnings on their one day trip to Las Vegas?
b. What is the probability that a random group of nine people average more than $500 in
losses on their one day trip to Las Vegas?

a. 0.0045 b. 0.0475

Feedback: a. , ;

transform into .

.
b.

Transform into ;

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
96 A ski resort gets an average of 2,000 customers per weekday with a standard deviation of 800
. customers. Assume the underlying distribution is normal. What is the probability a ski resort
averages between 1,500 customers and 3,000 customers per weekday over the course of four
weekdays?

0.8882

Feedback:

Transform into and into

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-06 Explain the importance of the central limit theorem.
Topic: The Central Limit Theorem

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
97. A mining company made some changes to their mining process in an attempt to save fuel.
Before the changes were made, it took an average of 20 gallons of diesel fuel to mine
1,000 pounds of copper. Suppose the standard deviation of fuel used per 1,000 pounds of
copper mined is 6 gallons. After the changes were made, the company only used an
average of 18 gallons of diesel for the next 30,000 pounds of copper mined.

a. How unusual would it be to get a sample average of 18 gallons or less for 30,000 pounds
of copper mined if the changes to the mining process had no effect?
b. Do you think the changes in the mining process actually lowered the fuel used?
Explain.

a. 0.0336; b. Yes, it's very unlikely to average 18 gallons or less for 30,000 pounds of
copper mined given no changes in the mining process.

Feedback: a.

Transform into ; .
b. It is likely the fuel changes made a difference because an average of 18 gallons of fuel
used per ton of copper mine for 30,000 tons of copper should only occur 3.36% of the time.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
98 A gym knows that each member, on average, spends 70 minutes at the gym per week, with a
. standard deviation of 20 minutes. Assume the amount of time each customer spends at the
gym is normally distributed.

a. What is the probability that a randomly selected customer spends less than 65 minutes at
the gym?
b. Suppose the gym surveys a random sample of 49 members about the amount of time they
spend at the gym each week. What is the expected value and standard deviation of the sample
mean of the time spent at the gym?
c. If 49 members are randomly selected, what is the probability that the average time spent at
the gym exceeds 75 minutes?

a. 0.4013; b. ; ; c. 0.0401

Feedback:

a. Transform into ;

b. ;

c.

Transform into ;

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
9 A book publisher knows that it takes an average of nine business days from when the material
9. for the book is finalized until the first edition is printed and ready to sell. Suppose the exact
amount of time has a standard deviation of four days.

a. Suppose the publisher examines the printing time for a sample of 36 books. What is the
probability that the sample mean time is shorter than eight days?
b. Suppose the publisher examines the printing time for a sample of 36 books. What is the
probability that the sample mean time is between 7 and 10 days?
c. Suppose the publisher signs a contract for the printer to print 100 books. If the average
printing time for the 100 books is longer than 9.3 days, the printer must pay a penalty. What is
the probability the penalty clause will be activated?
d. Suppose the publisher signs a contract for the printer to print 10 books. If the average
printing time for the 10 books is longer than 9.7 days, the printer must pay a penalty. What is
the probability the penalty clause will be activated?

a. 0.0668 b. 0.9319 c. 0.2266 d. Cannot be determined.

Feedback:

a. Transform into ; .
b.

Transform into and into

.
c.

Transform into ;

d. Since , we cannot determine the sampling distribution of the sample mean.

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean

100. In a large metropolitan area, the top providers for television and Internet services are a
phone company, a satellite company, and a cable company. The satellite company serves
43% of the homes in the area. What is the probability that in a survey of 1,000 homes,
more than 447 of them are served by the satellite company?

0.1401

Feedback:

Transform into ;

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
10 In early 2012, the United States Congress approval rating was approximately 10%
1. (Reuters.com). In a poll of 400 Americans, what is the probability that their approval rating is
between 8% and 12%?

0.8164

Feedback: Transform into ;

transform into ;

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
102 A tutoring company claims that 75% of the high school students who hire one of their tutor's
. will improve their grades.

a. In a sample of 100 high school students, what is the probability that 80% or more
improved their grades?
b. In a sample of 200 high school students, what is the probability that 80% or more
improved their grades?
c. Comment on the reason for the difference between the computed probabilities in parts a
and b.
Answer: a. 0.1251 b. 0.0516 c. The standard deviation of is lower with a larger sample
size.

Feedback: a.

Transform into ;

b.

Transform into ;

c. The larger sample size in part b makes for a smaller standard deviation of and a

smaller probability of event .

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
103A school is required by the government to give some randomly chosen students a
. standardized test. From previous experience, the school knows about 68% of their students
will receive passing scores in math and English. To improve funding, the school needs to
score at least 70% on the standardized test. This year the school can decide if it wants to test
100 or 200 students. Should the school test 100 or 200 students? Explain.

100 students

Feedback: A sample of 100 students will have a higher standard deviation of and a greater

probability that is at least 0.70 than a sample of 200 students. Clearly, for n = 100,

transform into ;

; for n=200,

transform into ;

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
1 The Office of Career Services at a major university knows that 74% of its graduates find full-
0 time positions in the field of their choosing within six months of graduation. Suppose the Office
4. of Career Services surveys 25 alumni six months after graduation.

a. What is the probability that at least 80% of the alumni have a job in the field of their
choosing?
b. What is the probability that between 60% and 76% of the alumni have a job in the field of
their choosing?
c. What is the probability that fewer than 60% of the alumni have a job in the field of their
choosing?

a. 0.2483 b. 0.5362 c. 0.0548

Feedback:

a.

Transform into ;

.
b.

Transform into and into

c. Transform into

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion

105. Administrative assistants in a local university have been asked to prove their proficiency in
the use of spreadsheet software by taking a proficiency test. Historically, the mean test
score has been 74 with a standard deviation of 4. A random sample of size 40 is taken
from the 100 administrative assistants and asked to complete the proficiency test.

a. Calculate the expected value and the standard deviation of the sample mean.
b. What is the probability that the sample mean score is more than 75, the predetermined
passing score?

a. 74, 0.4924; b. 0.0212

Feedback: a. The expected value of the sample mean is . We use the


finite population correction factor because the sample size is more than 5% of the

population size . Therefore, the standard deviation of the sample mean

is .

b. Transform into ;

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-08 Use a finite population correction factor.
Topic: The Finite Population Correction Factor

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
106. In a small town, there are 3,000 registered voters. An editor of a local newspaper would
like to predict the outcome of the next election; in particular he is interested in the
likelihood that Eli Brady will be elected. The editor believes that Eli, a local hero, will
garner 54% of the vote. A poll of 500 registered voters is taken. Assuming that the editor's
belief is true, calculate:

a. The expected value and the standard deviation of the sample proportion.
b. The probability that the sample proportion score is more than 0.58.

a. 0.54, 0.0204; b. 0.025

Feedback: a. The expected value of the sample proportion is . We use


the finite population correction factor because the sample size is more than 5%
of the population size . Therefore, the standard deviation of the sample

proportion is .
b.

Transform into ; .

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-08 Use a finite population correction factor.
Topic: The Finite Population Correction Factor

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
107. A random sample of nine cast aluminum pots is taken from a production line once every
hour. The interior diameter of the pots is measured and the sample mean is calculated.
The target for the diameter is 12' and the standard deviation for the pot diameter is 0.05'.
Assume the pot diameter is normally distributed.

a. Construct the centerline and the upper and lower control limits for the chart.
b. The means of the samples for a given eight-hour day are 12.01, 12.06, 11.97, 12.08,

11.92, 11.95, 11.97, and 12.04. Plot these values on the chart.
c. Does it appear that the process is under control? Explain.

a. UCL=12.05, Centerline = 12.00, LCL = 11.95; b. See graph; c. The process needs
adjustment since three sample means fall outside the control limits.

Feedback: UCL: and

LCL: . See directions in the text for graphing in Excel.

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
108. In a recent investigation, the National Highway Traffic Safety Administration (NHTSA)
found that the Chevrolet Volt and other electric vehicles do not pose a greater risk of fire
than gasoline-powered vehicles (The Boston Globe, January 25, 2012). Specifically, it was
determined that "no discernible defect trend exists." Suppose a consumer advocacy group

wants to verify some of these claims by constructing a chart. The group expects 2% of
electric cars to catch fire each month. For each of the last six months, 500 electric car
owners are asked if their cars have caught fire. The following sample proportions are
obtained:

0.010 0.020 0.015 0.030 0.025 0.015

a. Assuming that the group expectation is correct, construct the centerline and the upper

and lower control limits for the chart.


b. Do the consumer group's findings support those of the NHTSA? Explain.

a. See graph; b. Yes, all points are randomly dispersed between the upper and lower limits.
There is no evidence of a defective trend.

Feedback: UCL: ;

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
LCL: . See directions in the text for
graphing in Excel.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control

109. A bottled water plant utilizes a production process designed to fill bottles with 20 ounces
of water. The population of filling volumes is normally distributed with a standard
deviation of 1.3 ounces. Periodically, process engineers take 20-bottle samples and
compute the sample mean.

a. What are the upper and lower control limits?


b. Suppose the last five sample means were 19.4, 20.2, 20.5, 20.7, and 21.1 ounces. Is the
process under control?

a. UCL: 20.87; LCL: 19.13 b. No, the process is out of control.

Feedback:

a. UCL: ; LCL:

b. The sample means show an upward trend. Further, the final sample mean is above the
upper control limit.

AACSB: Analytic
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 07-07 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Mean

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
110. A manufacturing process produces tubeless mountain bike tires in batches of 200. Past
records show that 6% of the tires will not hold air. An engineer tests five batches, each one
week apart, and shows the proportion of tires that will not hold air below.

Proportion of tires that will not hold air:

a. Construct the centerline and the upper control limit for chart.
b. Should the engineer be worried? Comment on any trend in the proportion of tubeless
tires that will not hold air.

a. UCL: 0.1104; Centerline: 0.06 b. No, all proportions are below the UCL limit and the
trend is improving (trending downward).

Feedback: a. Centerline = 0.06

b. The engineer should not be worried. None of the batches were above the UCL and the
trend is sharply down. The LCL is not an issue because a lower percentage of tires that
will not hold air is good for the firm.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Construct and Interpret Control Charts

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
111. A large accounting firm gives out 1,000 job offers every year to new college graduates.
Suppose that 85% of those that received offers accept the position. The following shows
the number of graduates that have accepted jobs in the last four years.

Number of job offers accepted:

a. Construct the centerline and the upper and lower control limits for the chart.
b. Does the company need to worry about its ability to attract college graduates to the
firm?

a. UCL: 0.8839, LCL 0.8161, Centerline: 0.85 b. Yes, in 2011, fewer people accepted jobs
than the number resulting from LCL.

Feedback: a. Centerline 0.85

b. The firm should be worried. In 2011, only 810 of those offered jobs accepted. This is
below the LCL of 816 people.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Construct and interpret control charts for quantitative and qualitative data.
Topic: Construct and Interpret Control Charts

© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.

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