MACT 2222: Fall 2018

Assignment 6

Name:
Section:

Question Mark
1
2
3
4
5
6
Total

Write your solutions on the same paper. Don’t use any other papers.

1
Question (1)
A survey of 100 businesses revealed that the mean after-tax profit was $80,000 and the standard
deviation was $15,000:

1. Determine the 95% confidence interval estimate of the mean after-tax profit for all
businesses and comment.

2. Explain why you can use the confidence interval formula here, even though the
population is not necessarily normal.

Question (2)
An electronics retailer is interested in studying the incomes of consumers in a particular area. The
population standard deviation is known to be $1,000. What sample size would the researcher
need to use for a 95% confidence interval if the interval width should not be more than $100?

2
Question (3)
A hotel chain wants to estimate the average number of conference rooms rented daily in each
month. The population of conference rooms rented daily is assumed to be normally distributed for
each with a standard deviation of 24 rooms. During January, a sample of 16 days has a sample
mean of 48 rooms. This piece of information is used to calculate an interval estimate for the
population mean. The interval turned out to be from 40 to 56 rooms.
1. What is the level of confidence of this interval?

2. During February, a sample of 25 days has a sample mean of 37 rooms and a standard
deviation of 20. Use this information to calculate a 95% confidence interval for the population
mean.

Question (4)
In a random sample of 400 registered voters, 120 indicated they plan to vote for Candidate A.
Determine a 95% confidence interval for the proportion of all the registered voters who will vote
for Candidate A and comment

3
Question (5)
Two random samples of size 15 selected from two normal populations, have the following
statistics:
X 1 =524 S 1=129
X 2 =469 S 2=141
Estimate the difference between the two population means with 95% confidence assuming that
the two population standard deviations are equal. What assumption is needed to solve this
question?

Question (6)
To study the effectiveness of a drug for arthritis, two samples of patients were randomly selected.
One sample of 100 given the drug, the other sample of 60 receiving a placebo. After a period of
time the patients were asked if their arthritic condition had improved. Results were:

Drug Placebo
Improved 59 22
Not Improved 41 38
Total 100 60

Find a 95% confidence interval for the difference between the proportions of improvement by the
drug and by the Placebo. Do you think the drug is effective?