Chapter 8:

Estimation: Additional Topics

8.1 a. Find the 95% confidence interval for the difference in means
s 2.8
d ± tn -1,a 2 d = 25.4 ± 2.145 = 23.8493 up to 26.9507
nd 15
b. Find the margin of error for a 95% confidence interval
s 2.8
ME = tn-1,a 2 d = ME = 2.145 = 1.5507
nd 15

8.2 Two normally distributed populations based on dependent samples of n=5

observations
a. Find the margin of error for 90% confidence level
Paired T-Test and CI: Before_Ex8.2, After_Ex8.2
Paired T for Before_Ex8.2 - After_Ex8.2
N Mean StDev SE Mean
Before_Ex8.2 5 8.4000 2.6077 1.1662
After_Ex8.2 5 10.2000 3.1145 1.3928
Difference 5 -1.80000 0.83666 0.37417

90% CI for mean difference: (-2.59766, -1.00234)

sd .83666
ME = tn-1,a 2 = ME = 2.132 = .79772
nd 5

b. Find the UCL and LCL for a 90% confidence interval

UCL = -2.59766, LCL = -1.00234

c. Find the width of a 95% confidence interval

é s ù é .83666 ù
width = 2 ê ME = tn -1,a 2 d ú = 2 ê 2.776 ú = 2.07737
êë nd úû ë 5 û

8.3 After removing observations with missing values, we have the following data:

Child Pre-Test Score Post-Test Score

1 40 48
2 36 42
4 38 36
6 33 38
7 35 45
200 Statistics for Business & Economics, 7 edition
th

Paired T-Test and Confidence Interval

Paired T for Post-Test - Pre-Test

N Mean StDev SE Mean

Post-Test 5 41.80 4.92 2.20
Pre-Test 5 36.40 2.70 1.21
Difference 5 5.40 4.56 2.04

95% CI for mean difference: (-0.26, 11.06)

8.4 Let X = Without Passive Solar; Y = With Passive Solar; di = xi - yi

n = 10, å d = 373, i d = 37.3, t9,.05 = 1.833

å(d - d ) =
2
i
sd = 2806.1/ 9 = 17.6575
nd - 1
37.3 ± 1.833(17.6575) / 10
27.0649 < µ x - µ y < 47.5351

8.5 di = xi - yi , xi = after course

n = 6, å d = 45, d = 7.5, t = 1.476
i 5,.10

å ( d - d ) = 1761.5 / 5 = 18.770
2
i
sd =
nd - 1
7.5 ± 1.476(18.770) / 6 = 7.5 ± 11.3103
-3.8103 < µ x - µ y < 18.8103

8.6 Independent random samples, find a 90% confidence interval estimate of

the difference in the means of the two populations
s 2x s 2y 202 252
( x - y ) ± za 2 + = (400 - 360) ± 1.645 + = 40 ±
nx ny 64 36
7.9933, 32.0067 up to 47.9933

8.7 Independent random samples, find a 95% confidence interval estimate of

the difference in the means of the two populations
s x2 s y2 25 14
( x - y ) ± za / 2 + = (140 - 120) ± 1.96 + = 20 ± 1.3128, or
nx ny 81 100
(18.6872, 21.3128)
 Chapter 8: Estimation: Additional Topics 201

8.8 Assuming equal population variances, determine the number of degrees of

freedom for each
a. degrees of freedom = nx + n y - 2 = 12 + 14 – 2 = 24
b. degrees of freedom = nx + n y - 2 = 6 + 7 – 2 = 11
c. degrees of freedom = nx + n y - 2 = 9 + 12 – 2 = 19

8.9 Compute the pooled sample variance, for parts (a) through (c) of Exercise 8.8
(n - 1) s12 - (n2 - 1) s2 2
sp2 = 1
n1 + n2 - 2
(12 - 1)30 + (14 - 1)36
a. s p 2 = = 33.25
12 + 14 - 2
(6 - 1)30 + (7 - 1)36
b. s p 2 = = 33.2727
6+7-2
(9 - 1)16 + (12 - 1)25
c. s p 2 = = 21.2105
9 + 12 - 2

8.10 Assuming unequal population variances, determine the number of degrees

of freedom
2
éæ s12 ö æ s2 2 ö ù
êç ÷ + ç ÷ú
ë è n1 ø è n2 ø û
a. v = 2 2
=
æ s 21 ö æ s 22 ö
ç ÷ /(n1 - 1) + ç ÷ /(n2 - 1)
è n1 ø è n2 ø
2
éæ 6 ö æ 10 ö ù
êç 12 ÷ + ç 14 ÷ ú
v= ëè ø è ø û » 24
2 2
æ 6ö æ 10 ö
ç ÷ /(12 - 1) + ç ÷ /(14 - 1)
è 12 ø è 14 ø
2
éæ s12 ö æ s2 2 ö ù éæ 30 ö æ 36 ö ù
2

êç ÷ ç + ÷ú êç 6 ÷ + ç 10 ÷ ú
ë è n1 ø è n2 ø û ëè ø è ø û
b. v = 2 2
- v= 2 2
æ s 21 ö æ s 22 ö æ 30 ö æ 36 ö
ç ÷ /(n1 - 1) + ç ÷ /(n2 - 1) ç ÷ /(6 - 1) + ç ÷ /(10 - 1)
è n1 ø è n2 ø è 6 ø è 10 ø
» 11

2
éæ s12 ö æ s2 2 ö ù éæ 16 ö æ 25 ö ù
2

êç ÷ + ç ÷ú êç 9 ÷ + ç 12 ÷ ú
c. v = ëè n1 ø è n2 ø û - v= ëè ø è ø û
2 2 2 2
æs 1ö
2
æs 2ö
2
æ 16 ö æ 25 ö
ç ÷ /(n1 - 1) + ç ÷ /(n2 - 1) ç ÷ /(9 - 1) + ç ÷ /(12 - 1)
è n1 ø è n2 ø è9ø è 12 ø
» 19
202 th
Statistics for Business & Economics, 7 edition

2
éæ s12 ö æ s2 2 ö ù éæ 30 ö æ 36 ö ù
2

êç ÷ + ç ÷ú êç 6 ÷ + ç 7 ÷ ú
d. v = ëè n1 ø è n2 ø û - v= ëè ø è ø û
2 2 2 2
æ s 21 ö æ s 22 ö æ 30 ö æ 36 ö
ç ÷ /(n1 - 1) + ç ÷ /(n2 - 1) ç ÷ /(6 - 1) + ç ÷ /(7 - 1)
n
è 1ø n
è 2 ø è 6 ø è 7 ø
» 11

8.11 Find the margin of error for a 95% confidence interval, assume equal
population variances
1 1 (n1 - 1) s 21 + (n2 - 1) s 2 2
a. ME = tn1 + n2 - 2,a 2 s p + where s p =
n1 n2 n1 + n2 - 2
(12 - 1)6 + (14 - 1)10 1 1
sp = = 2.85774 ME = 2.064(2.85774) + =
12 + 14 - 2 12 14
2.3204
(6 - 1)6 + (7 - 1)10 1 1
b. sp = = 2.8604 ME = 2.201(2.8604) + =
6+7-2 6 7
3.5026
c. Doubling the size of both samples will reduce the margin of
error; however, it does not reduce it in half.

8.12 Let X = machine A and Y = machine B.

x = 130, s x = 8.4, nx = 40 y = 120, s y = 11.3, n y = 36
Find the 95% confidence interval for the difference in means

s 2x s 2y 8.42 11.32
( x - y ) ± za 2 + = (130 - 120) ± 1.96 + = 10 ±
nx ny 40 36
4.5169, 5.4831 up to 14.5169

2 2
sx s y
8.13 95% confidence interval: ( X - Y ) ± t( v ,a / 2) + =
nx ny
2
éæ s 2 ö æ s y 2 ö ù
êç x ÷ + çç ÷÷ ú
êëè nx ø è n y ø úû
where v = 2 2
=
æ sx ö
2 æ sy 2
ö
ç ÷ /(nx - 1) + çç ÷÷ /( n y - 1)
è nx ø è ny ø
 Chapter 8: Estimation: Additional Topics 203

2
éæ 2.532 ö æ 8.612 ö ù
êç ÷+ç ÷ú
v= ëè 6 ø è 9 ø û = 9.940
2 2
æ 2.532 ö æ 8.612 ö
ç ÷ /(6 - 1) + ç ÷ /(9 - 1)
è 6 ø è 9 ø
2 2
sx sy (2.53)2 (8.61) 2
(76.12 – 74.61) ± t10,.025 + = 1.51 ± 2.228 + =
nx n y 6 9
-5.286 up to 8.306

8.14
Descriptive Statistics: Machine 1, Machine 2
Variable N Mean Median TrMean StDev SE Mean
Machine 100 520.95 518.75 520.52 9.45 0.95
Machine 100 513.75 514.05 513.91 5.49 0.55

Variable Minimum Maximum Q1 Q3

Machine 504.70 544.80 513.80 527.28
Machine 496.50 527.00 510.33 517.68

95% confidence level: assuming normal populations and similar variances

(9.45)2 (5.49)2
(520.95 - 513.75) ± (1.96) + = 5.0579 up to 9.3421
100 100

8.15 nx = 16, x = 34,500, sx = 8,520

n y = 9, y = 31, 499, s y = 7,521, 90% confidence interval assuming
equal variances (supported by the results of the F-test of equality of
variances)
(8,520) 2 (7,521) 2
(34,500 - 31, 499) ± (1.714) + = -2,637.4997 up to
16 9
8,639.4997

8.16 n1 = 200, x = .517, s1 = .148, z.005 = 2.58

n2 = 400, y = .489, s2 = .159
(.148)2 (.159)2
(.517 - .489) ± (2.58) + = -.00591 up to .061907
200 400

8.17 nx = 9, x = 9.78, s 2 x = 17.64, t17,.05 = 1.74

ny = 10, y = 15.1, s 2 y = 27.01
8(17.64) 9(27.01)
(9.78 - 15.10) ± (1.74) + = -16.3232 up to 5.6832
9 10
204 th
Statistics for Business & Economics, 7 edition

8.18 Calculate the margin of error, assuming 95% confidence level

pˆ (1 - pˆ1 ) pˆ 2 (1 - pˆ 2 ) .75(1 - .75) .68(1 - .68)
a. ME = za 2 1 + = 1.96 + =
n1 n2 260 200
.083367
pˆ (1 - pˆ1 ) pˆ 2 (1 - pˆ 2 ) .60(1 - .60) .68(1 - .68)
b. ME = za 2 1 + = 1.96 + =
n1 n2 400 500
.063062
pˆ (1 - pˆ1 ) pˆ 2 (1 - pˆ 2 ) .20(1 - .20) .25(1 - .25)
c. ME = za 2 1 + = 1.96 + =
n1 n2 500 375
.056126

8.19 Calculate the 95% confidence interval for the difference in population
proportions
pˆ (1 - pˆ1 ) pˆ 2 (1 - pˆ 2 )
a. ( pˆ1 - pˆ 2 ) ± za 2 1 + =
n1 n2
.65(1 - .65) .68(1 - .68)
(.65 - .68) ± 1.96 + =-.03 ± .080881=-.110881 up to
370 200
.050881
.48(1 - .48) .52(1 - .52)
b. (.48 - .52) ± 1.96 + =-.04 ± .088937=-.12894 to
220 270
.04894
.30(1 - .30) .25(1 - .25)
c. (.30 - .25) ± 1.96 + =.05± .061885=-.011885 to
500 325
.111885

8.20
x 85 y 78
nx = 120, pˆ x = = = .7083, ny = 163, pˆ y = = = .4785, z.01 = 2.33
n 120 n 163
pˆ (1 - pˆ x ) pˆ y (1 - pˆ y )
( pˆ x - pˆ y ) ± za / 2 x + =
nx ny
(.7083)(.2917) (.4785)(.5215)
(.7083 - .4785) ± (2.326) + =
120 163
.2298 ± .132657 = .0971 up to .3625
 Chapter 8: Estimation: Additional Topics 205

8.21 Results for: Library.xls

Tabulated Statistics: Class, Adequate Variety
Rows: Class Columns: Adequate
1 2 All

1 73 71 144
50.69 49.31 100.00
54.07 32.27 40.56
20.56 20.00 40.56

2 26 76 102
25.49 74.51 100.00
19.26 34.55 28.73
7.32 21.41 28.73

3 19 47 66
28.79 71.21 100.00
14.07 21.36 18.59
5.35 13.24 18.59

4 17 26 43
39.53 60.47 100.00
12.59 11.82 12.11
4.79 7.32 12.11

All 135 220 355

38.03 61.97 100.00
100.00 100.00 100.00
38.03 61.97 100.00

Cell Contents --
Count
% of Row
% of Col
% of Tbl

pˆ seniors = 17 / 43 = .3953, pˆ freshmen = 73 /144 = .5069

(.3953)(.6047) (.5069)(.4931)
(.3953 - .5069) ± (1.645) + =
43 144
-.1116 ± .1405 = -.2521 up to .0289

8.22 pˆ freshmen = 80 /138 = .5797, pˆ sophs = 73 / 96 = .7604

(.5797)(.4203) (.7604)(.2396)
(.5797 - .7604) ± (1.96) + =
138 96
-.1807 ± .1187 = -.3001 up to -.0627

8.23 nx = 100, pˆ x = .61, n y = 100, pˆ y = .54

(.61)(.39) (.54)(.46)
.1 - (.61 - .54) = .03 = za / 2 + , za / 2 = .43
100 100
a = 2[1 - Fz (.43)] = .6672
100(1-.6672)% = 33.28% confidence level
206 th
Statistics for Business & Economics, 7 edition

8.24 nx = 510, pˆ x = .6275, n y = 332, pˆ y = .6024, z.05 = 1.645

(.6275)(.3725) (.6024)(.3976)
(.6275 - .6024) ± (1.645) +
510 332
.0251 ± .0565 = -.0314 up to .0816

8.25 How large a sample is needed to estimate the mean of a normally

distributed population?
(z ) s
2 2
a 2 2.582 402
a. n= = = 426.01. Take a sample of size n = 427.
ME 2 52
(z ) s
2 2
a 2 2.582 402
b. n= = = 106.502 Take a sample of size n = 107.
ME 2 102
c. In order to cut the ME in half, the sample size must be quadrupled.

8.26 How large a sample is needed to estimate the population proportion?

.25 ( za 2 )
2
.25 (1.96 )
2

a. n = = = 1067.111. Take a sample of size n =

ME 2 .032
1068.
.25 ( za 2 )
2
.25 (1.96 )
2

b. n = 2
= = 384.16. Take a sample of size n = 385.
ME .052
c. In order to reduce the ME in half, the sample size must be increased by
a larger proportion

8.27 How large a sample size to estimate the population proportion?

.25 ( za 2 )
2
.25 ( 2.58 )
2

a. n = = = 665.64. Take a sample of size n = 666.

ME 2 .052
.25 ( za 2 )
2
.25 (1.645 )
2

b. n = 2
= = 270.6. Take a sample of size n = 271.
ME .052
c. In order to increase the confidence level for a given margin of error, the
sample size must be increased

8.28 a. z.05 = 1.645, ME = .04

.25( za / 2 )2 (.25)(1.645)2
n= = = 422.8 , take n = 423
ME 2 (.04)2
(.25)(1.96)2
b. = 600.25 , take n = 601
(.04)2
(.25)(2.33)2
c. = 542.89 , take n = 543
(.05)2
 Chapter 8: Estimation: Additional Topics 207

8.29 z.005 = 2.58, ME = .05

.25( za / 2 )2 (.25)(2.58)2
n= = = 665.64 , take n = 666
ME 2 (.05)2

8.30 z.05 = 1.645, B = .03

.25( za / 2 )2 (.25)(1.645)2
n= = = 751.7 , take n = 752
ME 2 (.03)2

Ns 2
8.31 Use the equation n = to find the sample size needed.
( N - 1)s x2 + s 2
50
a. Since 1.96s x = 50, s x = = 25.51.
1.96

Ns 2 (1650)(500) 2
n= = = 311.8, take n = 312
( N - 1)s x2 + s 2 (1650 - 1)(25.51) 2 + (500) 2

100
b. Since 1.96s x = 100, s x = = 51.02.
1.96

Ns 2 (1650)(500)2
n= = = 90.8, take n = 91
( N - 1)s x2 + s 2 (1650 - 1)(51.02) 2 + (500) 2

200
c. Since 1.96s x = 200, s x = = 102.04.
1.96

Ns 2 (1650)(500)2
n= = = 23.7, take n = 24
( N - 1)s x2 + s 2 (1650 - 1)(102.04)2 + (500)2

d. The required sample size for part (b) is larger than that for part (a), and the required
sample size for part (c) is larger than that for parts (a) and (b). This shows that the
required sample size increases as 1.96s X increases. Thus, the required sample size
increases as the desired standard deviation, s X , of the sample mean increases and as the
desired variance, s X2 , of the sample mean increases.
208 th
Statistics for Business & Economics, 7 edition

Ns 2
8.32 Use the equation n = to find the sample size needed.
( N - 1)s x2 + s 2
50
a. Since 1.96s x = 50, s x = = 25.51.
1.96

Ns 2 (3300)(500) 2
n= = = 344.2 , take n = 345
( N - 1)s x2 + s 2 (3300 - 1)(25.51) 2 + (500) 2

b. As in part (a), s x = 25.51.

Ns 2 (4950)(500)2
n= = = 356.6, take n = 357
( N - 1)s x2 + s 2 (4950 - 1)(25.51)2 + (500)2

c. As in part (a), s x = 25.51.

Ns 2 (5000000)(500) 2
n= = = 384.1, take n = 385
( N - 1)s x2 + s 2 (5000000 - 1)(25.51) 2 + (500) 2

d. The required sample size for part (b) is larger than that for part (a), and the required
sample size for part (c) is larger than that for parts (a) and (b). This shows that the
required sample size increases as N increases.

0.25 N
8.33 Use the equation nmax = to find the maximum sample size needed.
( N - 1)s p2ˆ + 0.25
0.05
a. Since 1.96s pˆ = 0.05, s pˆ = = 0.02551.
1.96

0.25 N 0.25(2500)
nmax = = = 333.1, take n = 312
( N - 1)s pˆ + 0.25 (2500 - 1)(0.02551) 2 + 0.25
2

0.03
b. Since 1.96s x = 0.03, s x = = 0.015306.
1.96

0.25N 0.25(2500)
nmax = = = 748.1, take n = 749
( N - 1)s pˆ + 0.25 (2500 - 1)(0.015306)2 + 0.25
2
 Chapter 8: Estimation: Additional Topics 209

c. The sample size for part (b) is larger than that for part (a). This shows that the required
sample size increases as 1.96s p̂ increases. Thus, the sample size increases as the desired
standard deviation, s p̂ , of the sample mean increases and as the desired variance, s p̂2 , of
the sample mean increases.

2000 812(20000)2
8.34 sx = = 1020.4 , n = = 261.0038 = 262
1.96 811(1020.4)2 + (20000)2
observations

8.35 How large n?

Ns 2 (400)(10, 000) 2
n= = = 57.988, take 58
( N - 1)s x + s 2 (399)(1215.8055) + (10, 000)
2 2 2

observations

.05
8.36 s pˆ = = .0194
2.575
.25 N (.25)320
n= = = 216.18 = 217 observations
( N - 1)s px + .25 319(.0194)2 + .25
2

.04 417(.25)
8.37 s pˆ = = .0243, n = = 210.33 = 211 observations
1.645 416(.0243) 2 + .25

8.38 Independent random samples from two normally distributed populations.

Assuming equal variances, find the 90% confidence interval
1 1 (nx - 1) s 2 x + (n y - 1) s 2 y
( x - y ) ± tn1 + n2 - 2,a 2 s p + where s p =
nx n y nx + n y - 2
(15 - 1)202 + (13 - 1)252
sp = = 22.4465
15 + 13 - 2
1 1
(400 - 360) ± 1.706(22.4465) + = 40 ± 14.5107 = 25.4893 to
15 13
54.5107
210 th
Statistics for Business & Economics, 7 edition

8.39 Independent random samples from two normally distributed populations.

Assuming unequal variances, find the 90% confidence interval
2 2
sx s y
a. 95% confidence interval: ( X - Y ) ± t( v ,a / 2) + =
nx ny
2
éæ s 2 ö æ s y 2 ö ù
êç x ÷ + çç ÷÷ ú
êëè nx ø è n y ø úû
where v = 2 2
=
æ sx ö
2 æ s 2
ö
÷ /(nx - 1) + çç ÷÷ /( n y - 1)
y
ç
è nx ø è ny ø
2
éæ 102 ö æ 402 ö ù
êç ÷+ç ÷ú
v= ëè 15 ø è 13 ø û = 13.30176 » 13
2 2
æ 102 ö æ 402 ö
ç ÷ /(15 - 1) + ç ÷ /(13 - 1)
è 15 ø è 13 ø
102 402
(400 - 360) ± 1.771 + = 40 ± 20.1726 = 19.8274 to 60.1726
15 13

8.40 Independent random samples from two normally distributed populations

a. If the unknown population variances are equal, find a 90% confidence
interval
1 1 (nx - 1) s 2 x + (n y - 1) s 2 y
( x - y ) ± tn1 + n2 - 2,a 2 s p + where sp =
nx n y nx + n y - 2
(10 - 1)302 + (12 - 1)252
sp = = 27.3633
10 + 12 - 2
1 1
(480 - 520) ± 1.725(27.3633) + = -40 ± 20.2106 = -60.21056 to -
10 12
19.7894
 Chapter 8: Estimation: Additional Topics 211

b. If the unknown population variances are unequal, find a 90% CI

2
éæ s 2 ö æ s y 2 ö ù
êç x ÷ + çç ÷÷ ú
ëêè nx ø è n y ø ûú
2 2
sx s y
( X - Y ) ± t( v ,a / 2) + where v = 2
=
nx ny æ sx 2 ö
2
æ sy 2 ö
ç ÷ /(nx - 1) + çç ÷÷ /( n y - 1)
è nx ø è n y ø
2
éæ 302 ö æ 252 ö ù
êç ÷+ç ÷ú
v= ëè 10 ø è 12 ø û = 17.606 » 18
2 2
æ 302 ö æ 252 ö
ç ÷ /(10 - 1) + ç ÷ /(12 - 1)
è 10 ø è 12 ø
302 252
(480 - 520) ± 1.734 + = -40 ± 20.669 = -60.669 to -19.331
10 12

8.41 nx = 12, x = 435, 000, sx = 56, 000, t25,.025 = 2.06

ny = 15, y = 408, 000, s y = 43, 000
1 1 (nx - 1) s 2 x + (n y - 1) s 2 y
( x - y ) ± tn1 + n2 - 2,a 2 s p + where s p =
nx n y nx + n y - 2
(12 - 1)560002 + (15 - 1)430002
sp = = 49,145.349827
12 + 15 - 2
1 1
(435,000 - 408,000) ± 2.060(49,145.49827) + = 27,000 ±
12 15
39,209.97744 = -12,209.97744 to 66,209.97744

8.42 nx = 21, x = 72.1, sx = 11.3, t37,.10 = 1.303 (df = 37 does not appear in
Appendix Table 7; we used df = 40 to give an approximate answer)
n y = 18, y = 73.8, s y = 10.6
1 1 (nx - 1) s 2 x + (n y - 1) s 2 y
( x - y ) ± tn1 + n2 - 2,a 2 s p + where s p =
nx n y nx + n y - 2
(21 - 1)11.32 + (18 - 1)10.62
sp = = 10.9839
21 + 18 - 2
1 1
(72.1 - 73.8) ± 1.303(10.9839) + = -1.7 ± 4.5971 = -6.2971 to
21 18
2.8971
212 th
Statistics for Business & Economics, 7 edition

8.43 a. n = 10, x = 257, s = 37.163, t9,.05 = 1.833

90% confidence interval:
One-Sample T: Ex8.43
Variable N Mean StDev SE Mean 90% CI
Ex8.43 10 257.000 37.163 11.752 (235.457, 278.543)
assume that the population is normally distributed
x ± t æç s ö = 257 ± 1.833(37.163/
÷ 10 ) = 235.457 up to 278.543
è nø

b. Assuming that the confidence level remains constant, what sample size
is needed to reduce by half the margin of error of the confidence
interval in part (a)?
The sample size must quadruple from n = 10 to n = 40 to cut the margin
for error in half.

8.44 pˆ x - pˆ y = .6222 - .5714 = .0508

a. Minitab results:
CI for Two Proportions
Sample X N Sample p
1 140 225 0.622222
2 120 210 0.571429
Estimate for p(1) - p(2): 0.0507937
95% CI for p(1) - p(2): (-0.0413643, 0.142952)

8.45 90% confidence interval for the difference in mean amount spent on
textbooks for accounting majors vs. management majors. Discuss
assumptions.
a. Assuming independent random samples taken from each type of major
from normal populations with a common variance.
nx = 40, x = 340, sx = 20, t88,.10 = 1.671
n y = 50, y = 285, s y = 30
1 1 (nx - 1) s 2 x + (n y - 1) s 2 y
( x - y ) ± tn1 + n2 - 2,a 2 s p + where s p =
nx n y nx + n y - 2
(40 - 1)202 + (50 - 1)302
sp = = 26.0463
40 + 50 - 2
1 1
(340 - 285) ± 1.671(26.0463) + = 55 ± 9.2327 = 45.7673 to
40 50
64.2327
 Chapter 8: Estimation: Additional Topics 213

8.46 Assume both populations are distributed normally with equal variances
and a 90% confidence interval.
nx = 15, x = 470, sx = 5, t25,.05 = 1.708
n y = 12, y = 460, s y = 7
2 2
(nx - 1) sx + (ny - 1) s y 1 1
(470 - 460) ± (1.708) +
nx + ny - 2 nx ny
(15 - 1)52 + (12 - 1)7 2 1 1
(470 - 460) ± (1.708) +
15 + 12 - 2 15 12
10 ± (1.708)(5.9632)(.3873) = 10 ± 3.9447 = 6.055 up to 13.945
Since both endpoints of
the confidence interval are
positive, this provides
evidence that the new
machine provides a larger
mean filling weight than
the old

8.47 90% confidence level:

z.05 = 1.645, ME = .025
.25( za / 2 )2 (.25)(1.645)2
n= = = 1082.4 , take n = 1,083
ME 2 (.025)2

8.48 98% confidence interval for student pair:

Paired T-Test and CI: COURSE, NO COURSE
Paired T for COURSE - NO COURSE
N Mean StDev SE Mean
COURSE 6 70.6667 16.0333 6.5456
NO COURSE 6 66.1667 14.1904 5.7932
Difference 6 4.50000 4.13521 1.68819

98% CI for mean difference: (-1.18066, 10.18066)

8.49 What size sample was taken to estimate approval ratings for a 95%
confidence level given a 65% approval rating and a margin of error of
.035?
( p)(1 - p)( za / 2 ) 2 (.65)(.35)(1.96)2
n= = = 713.44 , take n = 714
ME 2 (.035)2
observations
214 th
Statistics for Business & Economics, 7 edition

8.50 Construct a 95% confidence interval of the difference in population

proportions
pˆ1 = x = 300 = .75 , pˆ 2 = x = 225 = .45
n 400 n 500
pˆ (1 - pˆ1 ) pˆ 2 (1 - pˆ 2 )
( pˆ1 - pˆ 2 ) ± za 2 1 + =
n1 n2
.75(1 - .75) .45(1 - .45)
(.75 - .45) ± 1.96 + = .30 ± .06085= .23915 up to
400 500
.36085

2000 328(12000)2
8.51 sx = = 1215.8 , n = = 75.28 = 76 observations
1.645 327(1215.8)2 + (12000)2

.06 527(.25)
8.52 s pˆ = = .0306 , n = = 177.43 = 178 observations
1.96 526(.0306)2 + .25

za2 / 2s 2
8.53 We know that n0 = , where ME = za / 2s X . This gives
ME 2
za2 / 2s 2 s2 Ns 2
n0 = = or s 2 = n0s X2 . Substituting this into gives
( za / 2s X ) 2 s X2 ( N - 1)s X2 + s 2

N (n0s X2 ) s X2 × Nn0 n0 N
= = .
( N - 1)s + n0s
2
X
2
X
s [( N - 1) + n0 ]
2
X
n0 + ( N - 1)