Essentials of Business Statistics Communicating With Numbers 1st Edition Jaggia Test Bank Download

Essentials of Business Statistics Communicating with Numbers 1st Edition Jaggia Test Bank
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Chapter 07
Sampling and Sampling Distributions
True / False Questions
1. Bias refers to the tendency of a sample statistic to systematically over-or underestimate a population
parameter.
True False
2. Selection bias occurs when the sample is mistakenly divided into strata, and random samples are drawn
from each stratum.
True False
3. Nonresponse bias occurs when those responding to a survey or poll differ systematically from the
nonrespondents.
True False
4. 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.
True False
5. 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
6. A parameter is a random variable, whereas a sample statistic is a constant.
True False
7. 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
8. The standard deviation of equals the population standard deviation divided by the square root of
the sample size, or, equivalently, .
True False
7-1
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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
9. The standard deviation of suggests that the variation between observations is smaller than the
variation between averages.
True False
10. A point estimator refers to an estimator that provides a single value.
True False
11. If the expected value of a sample mean equals the population mean, the sample mean is biased.
True False
12. For any sample size n, the sampling distribution of is normal if the population X from which the
sample is drawn is uniformly distributed.
True False
13. 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 small. As a general guideline, the
normal distribution approximation is justified when n < 30.
True False
14. The central limit theorem approximation improves as the sample size decreases.
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 np ≥ 5 and n(1 - p) ≥ 5.
True False
Multiple Choice Questions
16. 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
7-2
17. 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 nonrespondents
18. Nonresponse bias occurs when _________________.

B. portions of the population are excluded from the sample
19. 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 nonrespondents.
20. 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.
7-3
21. Which of the following meets the requirements of a stratified random sample?
random over 25.
22. 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.
23. 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
24. Which of the following is considered an estimator?
A.
B. µ
C. σ
D. σ2
7-4
25. Which of the following is considered an estimate?
A.
B.
C.
D.
26. What is the relationship between the expected value of the sample mean and the expected value of the
population?
A.
B.
C.
D.
27. 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.
7-5
28. What is the relationship between the standard deviation of the sample mean and the population
standard deviation?
A.
B.
C.
D.
29. 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
30. 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 n < 50, the sampling distribution of the sample mean is normally distributed.
C. For a sample size n < 30, the sampling distribution of the sample mean is normally distributed.
D. For a sample size n > 30, the sampling distribution of the sample mean is normally distributed.
7-6
31. Exhibit 7-1.
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 σ = 9 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
32. Exhibit 7-1.
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
33. Exhibit 7-1.
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
7-7
34. Exhibit 7-1.
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
35. Exhibit 7-2.
Suppose that, on average, electricians earn approximately µ = 54,000 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 σ = 12,000 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
36. Exhibit 7-2.
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
7-8
37. Exhibit 7-2.
electricians is less than $50,000?
A. 0.2514
B. 0.3707
C. 0.6293
D. 0.7486
38. Exhibit 7-2.
electricians is more than $50,000 but less than $60,000?
A. 0.5899
B. 0.7486
C. 0.8413
D. 0.9048
39. Exhibit 7-3.
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
7-9
40. Exhibit 7-3.
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
41. Exhibit 7-3.
deviation of 13.
average score for the week is between 220 and 228?
A. 0.0618
B. 0.2390
C. 0.7594
D. 0.8212
42. Exhibit 7-3.
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
7-10
43. Exhibit 7-4.
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.
44. Exhibit 7-4.
Refer to Exhibit 7-4. What is the probability that a class of 36 students will have an average greater
A. 0.0014
B. 0.3085
C. 0.6915
D. 0.9986
45. Exhibit 7-4.
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
7-11
46. Exhibit 7-4.
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
47. 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 n ≥ 30
C. the standard deviation of the population is known
D. Both the underlying population is normal and the sample size n ≥ 30 are correct
48. 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
7-12
49. Exhibit 7-5.
A random sample of size 36 is taken from a population with mean µ = 17 and standard deviation σ = 6.
Refer to Exhibit 7-5. What are the expected value and the standard deviation for the sampling
A. Option A
B. Option B
C. Option C
D. Option D
50. Exhibit 7-5.
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
51. Exhibit 7-5.
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
7-13
52. Exhibit 7-5.
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
53. Using the central limit theorem, applied to the sampling distribution of the sample proportion, what
conditions must be met?
A.
B.
C.
D.
54. Exhibit 7-6.
A random sample of size 100 is taken from a population described by the proportion p = 0.60.
distribution of the sample proportion?
A. Option A
B. Option B
C. Option C
D. Option D
7-14
55. Exhibit 7-6.
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.
56. Exhibit 7-6.
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
57. Exhibit 7-6.
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
7-15
58. Exhibit 7-7.
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
59. Exhibit 7-7.
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
60. Exhibit 7-7.
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
7-16
61. Exhibit 7-7.
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
62. Exhibit 7-8.
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
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 are 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
7-17
63. Exhibit 7-8.
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
64. Exhibit 7-8.
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
7-18
65. Exhibit 7-8.
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
66. Exhibit 7-9.
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
67. Exhibit 7-9.
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
7-19
68. Exhibit 7-9.
95% were rooting for the Giants in Super Bowl XLIV?
A. 0.0474
B. 0.1469
C. 0.8531
D. Cannot be determined
69. Exhibit 7-9.
170 were rooting for the Giants in Super Bowl XLIV?
A. 0.0091
B. 0.0212
C. 0.4954
D. 0.9908
70. Exhibit 7-10.
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
7-20
71. Exhibit 7-10.
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
72. Exhibit 7-10.
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
73. Exhibit 7-10.
Refer to Exhibit 7-10. What is the probability that fewer than 45 respondents of a random sample of 100
A. 0.0499
B. 0.1873
C. 0.3745
D. 0.6255
7-21
74. Under what condition is the finite population correction factor used for computing the standard
deviations of and ?
A. n ≥ Np
B. n < Np
C. n ≥ 0.05N
D. n < 0.05N
75. 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
C. greater than one, and therefore increases the standard deviations of and computed under the
D. greater than one, and therefore decreases the standard deviations of and computed under the
76. 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
ounce. 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
77. 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
friends' homes are under water?
A. 0.2611
B. 0.2843
C. 0.6400
D. 0.7389
7-22
78. 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 Answers
79. 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
80. 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
81. 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.
82. In any production process, variations in the quality of the end product are inevitable. Assignable
variation refers to ___________.

D. a number of randomly occurring events that are part of the production process
7-23
83. 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 ounce. 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
84. 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
85. For quantitative data, the most appropriate control chart to monitor central tendency is a(n):
A.
chart.
B. chart.
C. c chart.
D. s chart.
86. For qualitative data, the most appropriate control chart to monitor the proportion of a certain
characteristic is a(n):
A. chart.
B. chart.
C. c chart.
D. s chart.
7-24
87. Exhibit 7-11.
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
88. Exhibit 7-11.
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
7-25
Short Answer Questions
89. 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.
90. 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?
7-26
91. It is known that college students at a local community college study 12 hours per week with a
standard deviation of 5 hours. What are the expected value and variance for a sample of nine
students?
92. 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?
93. 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%.
7-27
94. Suppose the average casino patron in Las Vegas loses $110 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
95. A ski resort gets an average of 2000 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 1500 customers and 3000 customers per weekday over the course of four weekdays?
7-28
96. 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 1000 pounds of copper.
Suppose the standard deviation of fuel used per 1000 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.
97. 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 are 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?
7-29
98. 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?
99. 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 1000 homes, more than 447 of them are served
by the satellite company?
7-30
100. In early 2012, the U.S. 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%?
101. A tutoring company claims that 75% of the high school students who hire one of their tutors 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.
102. 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.
7-31
103. 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?
104. 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?
7-32
105. In a small town, there are 3000 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.
106. 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.
7-33
107. 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:
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.
108. 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?
7-34
109. 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 the chart.
b. Should the engineer be worried? Comment on any trend in the proportion of tubeless tires that will
not hold air.
110. A large accounting firm gives out 1000 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:
b. Does the company need to worry about its ability to attract college graduates to the firm?
7-35
7-36
Chapter 07 Sampling and Sampling Distributions Answer Key
True / False Questions
1. 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: 07-01 Explain common sample biases.
Topic: Sampling
2. 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
Topic: Sampling
3. Nonresponse bias occurs when those responding to a survey or poll differ systematically from the
nonrespondents.
TRUE
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Sampling
4. 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.
TRUE
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-02 Describe various sampling methods.
7-37
Topic: Sampling
5. 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
Topic: Sampling
6. 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
Topic: Sampling
7. 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
Topic: Sampling
8. 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
Learning Objective: 07-03 Describe the properties of the sampling distribution of the sample mean.
Topic: The Sampling Distribution of the Sample Mean
7-38
9. The standard deviation of suggests that the variation between observations is smaller than the
variation between averages.
FALSE
The standard deviation of the sample mean suggests the variation between averages is less than the
variation between observations.
AACSB: Analytic
Blooms: Remember
10. A point estimator refers to an estimator that provides a single value.
TRUE
A point estimator provides a single value or a point.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
11. If the expected value of a sample mean equals the population mean, the sample mean is biased.
FALSE
If the expected value of a sample mean equals the population mean, the sample mean is unbiased.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
12. For any sample size n, the sampling distribution of is normal if the population X 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
7-39
Learning Objective: 07-04 Explain the importance of the central limit theorem.
13. 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 small. As a general guideline, the
normal distribution approximation is justified when n < 30.
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 n ≥ 30.
AACSB: Analytic
Blooms: Remember
14. The central limit theorem approximation improves as the sample size decreases.
FALSE
The central limit theorem approximation improves as the sample size increases.
AACSB: Analytic
Blooms: Remember
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 np ≥ 5 and n(1 - p) ≥ 5.
TRUE
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the properties of the sampling distribution of the sample proportion.
Topic: The Sampling Distribution of the Sample Proportion
Multiple Choice Questions
7-40
16. 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
Topic: Sampling
17. Selection bias occurs when ___________________.

B. portions of the population are excluded from the consideration for the sample
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Sampling
18. Nonresponse bias occurs when _________________.

B. portions of the population are excluded from the sample
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Sampling
19. 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 nonrespondents.
AACSB: Analytic
7-41
Blooms: Remember
Difficulty: 1 Easy
Topic: Sampling
20. Which of the following meets the requirements of a simple random sample?
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 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.
AACSB: Analytic
Blooms: Remember
Topic: Sampling
7-42
21. Which of the following meets the requirements of a stratified random sample?
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 that are proportional to the stratum's size. The only option that
allows for this is 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.
AACSB: Analytic
Blooms: Remember
Topic: Sampling
22. 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
7-43
23. 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
24. 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
25. 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
7-44
26. 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
27. 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
7-45
28. 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
29. 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
7-46
30. 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 n < 50, the sampling distribution of the sample mean is normally distributed.
C. For a sample size n < 30, the sampling distribution of the sample mean is normally distributed.
D. For a sample size n > 30, the sampling distribution of the sample mean is normally distributed.
sample is drawn is normally distributed.
AACSB: Analytic
Blooms: Understand
31. Exhibit 7-1.
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 σ = 9
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
A. 6
B. 9
C. 28
D. 168
Distractors: Wrong answers include the number of years of the study = 6, σ=

9.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
7-47
32. Exhibit 7-1.
Refer to Exhibit 7-1. What is the standard deviation for the sampling distribution of the number of
A. 1.22
B. 1.50
C. 2.25
D. 9.00
Distractors: Wrong answers include
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
7-48
33. Exhibit 7-1.
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
AACSB: Analytic
Blooms: Apply
7-49
34. Exhibit 7-1.
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 transform
AACSB: Analytic
Blooms: Apply
7-50
35. Exhibit 7-2.
States. Assume that the distribution for electrician's yearly earnings is normally distributed and that
the standard deviation is σ = 12,000 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
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
7-51
36. Exhibit 7-2.
electricians exceeds $60,000?
A. 0.1587
B. 0.3085
C. 0.6915
D. 0.8413
Transform
Distractors: Wrong answers include , , and .
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
7-52
37. Exhibit 7-2.
electricians is less than $50,000?
A. 0.2514
B. 0.3707
C. 0.6293
D. 0.7486
Transform
Distractors: Wrong answers include , , and .
AACSB: Analytic
Blooms: Apply
7-53
38. Exhibit 7-2.
electricians is more than $50,000 but less than $60,000?
A. 0.5899
B. 0.7486
C. 0.8413
D. 0.9048
Transform and
AACSB: Analytic
Blooms: Apply
7-54
39. Exhibit 7-3.
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
AACSB: Analytic
Blooms: Analyze
7-55
40. Exhibit 7-3.
deviation of 13.
average score is more than 230?
A. 0.0618
B. 0.3520
C. 0.6480
D. 0.9382
Transform
AACSB: Analytic
Blooms: Analyze
7-56
41. Exhibit 7-3.
deviation of 13.
average score for the week is between 220 and 228?
A. 0.0618
B. 0.2390
C. 0.7594
D. 0.8212
Transform and
AACSB: Analytic
Blooms: Analyze
7-57
42. Exhibit 7-3.
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
AACSB: Analytic
Blooms: Analyze
7-58
43. Exhibit 7-4.
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
Since n < 30, 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
7-59
44. Exhibit 7-4.
Refer to Exhibit 7-4. What is the probability that a class of 36 students will have an average greater
A. 0.0014
B. 0.3085
C. 0.6915
D. 0.9986
Transform
AACSB: Analytic
Blooms: Analyze
7-60
45. Exhibit 7-4.
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
AACSB: Analytic
Blooms: Analyze
7-61
46. Exhibit 7-4.
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
Transform
Distractors: Wrong answers include and if X was normally distributed.
AACSB: Analytic
Blooms: Analyze
47. 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 n ≥ 30
C. the standard deviation of the population is known
D. Both the underlying population is normal and the sample size n ≥ 30 are correct
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 n ≥ 30, the central limit theorem allows
us to assume normality.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
7-62
48. 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
49. Exhibit 7-5.
A random sample of size 36 is taken from a population with mean µ = 17 and standard deviation σ =
6.
A. Option A
B. Option B
C. Option C
D. Option D
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
7-63
50. Exhibit 7-5.
6.
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
AACSB: Analytic
Blooms: Apply
51. Exhibit 7-5.
6.
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
AACSB: Analytic
Blooms: Apply
7-64
52. Exhibit 7-5.
6.
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 and
Distractors: Wrong answers include , , and the sum of probabilities instead

of the difference.
AACSB: Analytic
Blooms: Apply
53. 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
7-65
54. Exhibit 7-6.
distribution of the sample proportion?
A. Option A
B. Option B
C. Option C
D. Option D
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
7-66
55. Exhibit 7-6.
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
Distractors: Wrong answers include the value of z and .
AACSB: Analytic
Blooms: Apply
7-67
56. Exhibit 7-6.
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
Distractors: Wrong answers include .
AACSB: Analytic
Blooms: Apply
7-68
57. Exhibit 7-6.
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 and
Distractors: Wrong answers include , , and the sum of probabilities

instead of the difference.
AACSB: Analytic
Blooms: Apply
7-69
58. Exhibit 7-7.
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
7-70
59. Exhibit 7-7.
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
Distractors: Wrong answers include the absolute value of z and .
AACSB: Analytic
Blooms: Apply
7-71
60. Exhibit 7-7.
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 transform
AACSB: Analytic
Blooms: Apply
7-72
61. Exhibit 7-7.
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 transform
Then,
AACSB: Analytic
Blooms: Apply
7-73
62. Exhibit 7-8.
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 are 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
7-74
63. Exhibit 7-8.
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
Distractors: Wrong answers include the value of z and .
AACSB: Analytic
Blooms: Apply
7-75
64. Exhibit 7-8.
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
Distractors: Wrong answers include the absolute value of z, , and .
AACSB: Analytic
Blooms: Apply
7-76
65. Exhibit 7-8.
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
AACSB: Analytic
Blooms: Apply
7-77
66. Exhibit 7-9.
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
Distractors: Wrong answers include and
AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
7-78
67. Exhibit 7-9.
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
AACSB: Analytic
Blooms: Analyze
7-79
68. Exhibit 7-9.
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
7-80
69. Exhibit 7-9.
than 170 were rooting for the Giants in Super Bowl XLIV?
A. 0.0091
B. 0.0212
C. 0.4954
D. 0.9908
Transform
AACSB: Analytic
Blooms: Analyze
7-81
70. Exhibit 7-10.
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
AACSB: Analytic
Blooms: Analyze
7-82
71. Exhibit 7-10.
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 and
AACSB: Analytic
Blooms: Analyze
7-83
72. Exhibit 7-10.
conservative.
Refer to Exhibit 7-10. What is the probability that at least 50 respondents of a random sample of 100
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
AACSB: Analytic
Blooms: Analyze
7-84
73. Exhibit 7-10.
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
AACSB: Analytic
Blooms: Analyze
74. Under what condition is the finite population correction factor used for computing the standard
deviations of and ?
A. n ≥ Np
B. n < Np
C. n ≥ 0.05N
D. n < 0.05N
As a general guideline, we use the finite factor correction when the sample constitutes at least 5% of
the population-that is, n ≥ 0.05N.
AACSB: Analytic
Blooms: Understand
Learning Objective: 07-06 Use a finite population correction factor.
7-85
Topic: The Finite Population Correction Factor
75. The finite correction factor is always _________________.
A. less than one, and therefore increases the standard deviations of and computed under the
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
D. greater than one, and therefore decreases the standard deviations of and computed under
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
76. 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 ounce. 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
Distractors: Wrong answers include , in the absence of the finite correction

factor, and .
AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
7-86
77. 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
friends' 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
78. 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 Answers
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: 07-07 Construct and interpret control charts for quantitative and qualitative data.
Topic: Statistical Quality Control
7-87
79. 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
80. 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
7-88
81. In any production process, variation in the quality of the end product is inevitable. Chance variation,
or common variation, refers to ___________.

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

D. a number of randomly occurring events that are part of the production process
Assignable 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
7-89
83. 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 ounce. 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
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
7-90
84. 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. Since 7% and 8% were outside the control limits,
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
85. For quantitative data, the most appropriate control chart to monitor central tendency is a(n):
A.
chart.
B. chart.
C. c chart.
D. s chart.
The most appropriate control chart to monitor central tendency for quantitative data is an chart.
Distractors: Charts for qualitative data, a chart to monitor variation for quantitative data.
AACSB: Analytic
Blooms: Apply
7-91
86. For qualitative data, the most appropriate control chart to monitor the proportion of a certain
characteristic is a(n):
A. chart.
B. chart.
C. c chart.
D. s chart.
The most appropriate control chart to monitor a qualitative characteristic is a chart.
Distractors: Charts for quantitative data, a chart to monitor the counts of a qualitative
characteristic.
AACSB: Analytic
Blooms: Apply
7-92
87. Exhibit 7-11.
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
Since a defect percentage

cannot be less than 0, we use LCL = 0.
AACSB: Analytic
Blooms: Apply
7-93
88. Exhibit 7-11.
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
Short Answer Questions
7-94
89. 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
Topic: Sampling
90. 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
Topic: Sampling
7-95
91. It is known that college students at a local community college study 12 hours per week with a
standard deviation of 5 hours. What are the expected value and variance for a sample of nine
students?
Feedback:
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
92. 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
AACSB: Analytic
Blooms: Apply
7-96
93. 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%.
Feedback: Transform transform
AACSB: Analytic
Blooms: Apply
94. Suppose the average casino patron in Las Vegas loses $110 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
b. What is the probability that a random group of nine people average more than $500 in losses on
a. 0.0045; b. 0.0475
Feedback: a. transform
b. transform
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
7-97
95. A ski resort gets an average of 2000 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 1500 customers and 3000 customers per weekday over the course of four weekdays?
0.8882
Feedback: Transform and
AACSB: Analytic
Blooms: Apply
96. 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 1000 pounds of copper.
Suppose the standard deviation of fuel used per 1000 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
b. It is likely the fuel changes made a difference because an average of 18 gallons of fuel used per
ton of copper mined for 30,000 tons of copper should only occur 3.36% of the time.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
7-98
97. 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 are 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
b.
c. Transform
AACSB: Analytic
Blooms: Analyze
7-99
98. 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?
a. 0.0668; b. 0.9319; c. 0.2266; d. cannot be determined
b. Transform and
c. Transform
d. Since n < 30, we cannot determine the sampling distribution of the sample mean.
AACSB: Analytic
Blooms: Analyze
Difficulty: 3 Hard
7-100
99. 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 1000 homes, more than 447 of them are served by
the satellite company?
0.1401
Feedback:
AACSB: Analytic
Blooms: Apply
100. In early 2012, the U.S. 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%?
0.8164
Feedback: Transform transform
AACSB: Analytic
Blooms: Apply
7-101
101. A tutoring company claims that 75% of the high school students who hire one of their tutors 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.
a. 0.1251; b. 0.0516; c. The standard deviation of is lower with a larger sample size.
b. Transform
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
7-102
102. 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.
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
for n = 200, transform
AACSB: Analytic
Blooms: Apply
7-103
103. 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?
a. 0.2483; b. 0.5362; c. 0.0548
b. Transform and
c. Transform
AACSB: Analytic
Blooms: Analyze
7-104
104. 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 n = 40 is more than 5% of the population size N
= 100. Therefore, the standard deviation of the sample mean is
b. Transform
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
7-105
105. In a small town, there are 3000 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 n = 500 is more than 5% of the population size
. Therefore, the standard deviation of the sample proportion is
b. Transform
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
7-106
106. 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.
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: a. and
See directions in the text for graphing in Excel.
AACSB: Analytic
Blooms: Apply
7-107
107. 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:
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:
See directions in the text for

graphing in Excel.
AACSB: Analytic
Blooms: Apply
7-108
108. 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.
b. The sample means show an upward trend. Further, the final sample mean is above the upper
control limit.
AACSB: Analytic
Blooms: Analyze
7-109
109. 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 the 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
7-110
Essentials of Business Statistics Communicating with Numbers 1st Edition Jaggia Test Bank
110. A large accounting firm gives out 1000 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:
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 the 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
7-111
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True / False Questions

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

7. When a statistic is used to estimate a parameter, the statistic is referred to as an estimator. A

the sample size, or, equivalently, .

10. A point estimator refers to an estimator that provides a single value.

Multiple Choice Questions

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

A. the division of the population into overlapping groups

A. the population has been divided into strata

18. Nonresponse bias occurs when _________________.

A. the population has been divided into strata

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

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

24. Which of the following is considered an estimator?

32. Exhibit 7-1.

33. Exhibit 7-1.

35. Exhibit 7-2.

36. Exhibit 7-2.

38. Exhibit 7-2.

39. Exhibit 7-3.

41. Exhibit 7-3.

42. Exhibit 7-3.

44. Exhibit 7-4.

45. Exhibit 7-4.

A. the underlying population is normal

50. Exhibit 7-5.

51. Exhibit 7-5.

54. Exhibit 7-6.

56. Exhibit 7-6.

57. Exhibit 7-6.

59. Exhibit 7-7.

60. Exhibit 7-7.

62. Exhibit 7-8.

64. Exhibit 7-8.

66. Exhibit 7-9.

67. Exhibit 7-9.

69. Exhibit 7-9.

70. Exhibit 7-10.

72. Exhibit 7-10.

73. Exhibit 7-10.

75. The finite correction factor is always _________________.

79. Acceptance sampling is a(n) ___________.

A. division of the population into strata

80. The detection approach to statistical quality control ____________.

A. divides the population into strata

A. the variation caused by stratified random sampling

A. the variation caused by stratified random sampling

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

88. Exhibit 7-11.

Is the production process in control?

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

a. What is the population of interest?

a. What are the upper and lower control limits?

Proportion of tires that will not hold air:

Number of job offers accepted:

True / False Questions

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

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

7. When a statistic is used to estimate a parameter, the statistic is referred to as an estimator. A