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(download pdf) Australasian Business Statistics 4th Edition black Test Bank full chapter
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to accompany
Australasian Business
th
Statistics 4 Edition
by Black et al.
Prepared by
Andrew Papadimos, Australian Catholic
University
Chapter 8
Statistical inference: estimation for single populations
True/False Questions
1. When a statistic calculated from sample data is used to estimate a population parameter, it
is called a point estimate.
*a. True
b. False
General Feedback:
Section 8.1, Difficulty: Medium
2. Catherine Cho, Director of Marketing Research at Vitalglow Pty Ltd, is evaluating consumer
acceptance of a new toothpaste package. Her staff report that 17% of a random sample of 200 Darwin
households prefer the new package to all other package designs. If Catherine concludes that 17% of all
households prefer the new package, she is using a range estimate.
a. True
*b. False
General Feedback:
Section 8.1, Difficulty: Medium
3. Sam Gates, Marketing Director of Mansfield Motors' Electrical Division, is leading a study to assess
the relative importance of product features. An item on a survey questionnaire distributed to 100
Mansfield customers asked them to rate the importance of 'ease of maintenance' on a scale of 1 to 10
(with 1 meaning 'not important' and 10 meaning 'highly important'). His staff assembled the following
statistics.
If Sam concludes that the average rate of 'ease of maintenance' for all customers is 7.5, he is using a
statistical parameter.
a. True
*b. False
General Feedback:
Section 8.1, Difficulty: Medium
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations2
Australasian Business Statistics 4th edition
4. Ann Huang, Marketing Director with Pacific West Airlines, is assessing the relative importance of the
'total flight' experience. An item on a survey questionnaire distributed to 100 of Pacific's customers
asked them to rate the importance of 'on-time arrival' on a scale of 1 to 10 (with 1 meaning 'not
important' and 10 meaning 'highly important'). Her staff assembled the following statistics from the
responses.
If Ann concludes that the average rate of 'on-time arrival' for all customers is 9.1, she is using a point
estimate.
*a. True
b. False
General Feedback:
Section 8.1, Difficulty: Medium
*a. True
b. False
General Feedback:
Section 8.1, Difficulty: Easy
a. True
*b. False
General Feedback:
Section 8.1, Difficulty: Easy
7. Suppose a random sample of 36 is selected from a population with a standard deviation of 12. If the
sample mean is 98, the 99% confidence interval to estimate the population mean is 93.34 to 102.66.
*a. True
b. False
General Feedback:
Section 8.1, Difficulty: Medium
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations3
Australasian Business Statistics 4th edition
8. Suppose a random sample of 36 is selected from a population with a standard deviation of 12. If the
sample mean is 98, the 95% confidence interval for the population mean is 97.35 to 98.65.
a. True
*b. False
General Feedback:
Section 8.1, Difficulty: Medium
9. Nick Petritis, Operations Manager with the Palmerston North Trust Bank, is evaluating the service
level provided to walk-in customers. Accordingly, his staff recorded the waiting times for 64 randomly
selected walk-in customers and determined that their mean waiting time was 15 minutes. Assume that
the population standard deviation is 4 minutes. The 90% confidence interval for the population mean of
waiting times is 14.06 to 15.94.
*a. True
b. False
General Feedback:
Section 8.1, Difficulty: Medium
10. A random sample of 64 items is selected from a population of 400 items. The sample mean is 200.
The population standard deviation is 48. From this data, a 95% confidence interval to estimate the
population mean can be calculated as 190.13 to 209.87.
a. True
*b. False
General Feedback:
Section 8.1, Difficulty: Medium
11. A researcher wants to estimate the proportion of the population which possess a given characteristic.
A random sample of size 600 is taken resulting in 330 items which possess the characteristic. The point
estimate for this population proportion is 0.55.
*a. True
b. False
General Feedback:
Section 8.1, Difficulty: Easy
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations4
Australasian Business Statistics 4th edition
a. True
*b. False
General Feedback:
Section 8.2, Difficulty: Easy
*a. True
b. False
General Feedback:
Section 8.2, Difficulty: Medium
14. If the degrees of freedom in a t-distribution become very large, the sample size must be very small.
a. True
*b. False
General Feedback:
Section 8.2, Difficulty: Medium
15. The table t-value associated with the upper 5% of the t-distribution and 14 degrees of freedom is
2.145
a. True
*b. False
General Feedback:
Section 8.2, Difficulty: Easy
16. The table t-value associated with 21 degrees of freedom and used to calculate a 90% confidence
interval is 1.721.
*a. True
b. False
General Feedback:
Section 8.2, Difficulty: Easy
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations5
Australasian Business Statistics 4th edition
17. A researcher is interested in estimating the mean value for a population. She takes a random sample
of 17 items and calculates a sample mean of 224 and a sample standard deviation of 32. She decides to
construct a 98% confidence interval to estimate the mean. The degrees of freedom associated with this
problem are 16.
*a. True
b. False
General Feedback:
Section 8.2, Difficulty: Easy
18. Life tests performed on a sample of 13 batteries of a new model indicated: (1) an average life of 75
months, and (2) a standard deviation of 5 months. Other battery models, produced by similar processes,
have normally distributed life spans. The 98% confidence interval for the population mean life of the
new model is 63.37 to 86.63.
a. True
*b. False
General Feedback:
Section 8.2, Difficulty: Medium
19. A researcher wants to estimate the proportion of a population which possess a given characteristic. A
random sample of size 800 is taken, resulting in 360 items which possess the characteristic. The point
estimate for this population proportion is 0.45.
*a. True
b. False
General Feedback:
Section 8.3, Difficulty: Easy
20. A researcher wants to estimate the proportion of a population which possess a given characteristic. A
random sample of size 250 is taken and 40% of the sample possess the characteristic. The 95%
confidence interval to estimate the population proportion is 0.35 to 0.45.
a. True
*b. False
General Feedback:
Section 8.3, Difficulty: Medium
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations6
Australasian Business Statistics 4th edition
21. A random sample of 225 items from a population results in 60% possessing a given characteristic.
Using this information, the researcher constructs a 90% confidence interval to estimate the population
proportion. The resulting confidence interval is 0.536 to 0.664.
a. True
*b. False
General Feedback:
Section 8.3, Difficulty: Medium
22. Cameron Sinclair, Information Services Manager with Global Financial Service (GFS), is studying
employee use of GFS email for non-business communications. A random sample of 200 email messages
was selected. Thirty of the messages were not business related. The 90% confidence interval for the
population proportion is 0.091 to 0.209.
a. True
*b. False
General Feedback:
Section 8.3, Difficulty: medium
23. Catherine Cho, Director of Marketing Research at Vitalglow Pty Ltd, is evaluating consumer
acceptance of a new toothpaste package. She randomly selects a sample of 200 Darwin households.
Forty households prefer the new package to all other package designs. The 90% confidence interval for
the population proportion is 0.153 to 0.247.
*a. True
b. False
General Feedback:
Section 8.3, Difficulty: Medium
24. Nick Petritis, Operations Manager with the Palmerston North Trust Bank, is evaluating the service
level provided to walk-in customers. Nick would like to minimise the variance of waiting time for these
customers, since this would mean that each customer received the same level of service. Accordingly,
his staff recorded the waiting times for 15 randomly selected walk-in customers, and determined that
their mean waiting time was 15 minutes and that the variance was 4 minutes. Assume that waiting time
is normally distributed. The 95% confidence interval for the population variance of waiting times is 8.58
to 39.79.
*a. True
b. False
General Feedback:
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations7
Australasian Business Statistics 4th edition
25. Kylie Ventura, Investments Manager with Ventura Value Funds, manages a portfolio of 250
common stocks. Kylie relies on various statistics, such as variance, to assess the overall risk of stocks in
an economic sector. Her staff reported that for a sample 14 utility stocks the mean annualised return was
14% and that the variance was 3%. Assume that annualised returns are normally distributed. The 95%
confidence interval for the population variance of annualised returns is 0.018 to 0.064.
a. True
*b. False
General Feedback:
Section 8.4, Difficulty: Medium
26. James Weepu, Human Resources Manager with Auckland First Bank (AFB), is reviewing the
employee training programs of AFB branches. His staff randomly selected personnel files for 10 tellers
in the Northern Region, and determined that their mean training time was 25 hours and that the standard
deviation was 5 hours. Assume that training times are normally distributed. The 95% confidence interval
for the population variance of training times is 11.83 to 83.33.
*a. True
b. False
General Feedback:
Section 8.4, Difficulty: Medium
27. In finding a confidence interval for the population mean, the population standard deviation should be
used if it is known. If the population standard deviation is not known, then it should be estimated with
the sample standard deviation.
*a. True
b. False
General Feedback:
Section 8.4, Difficulty: Easy
28. In estimating the sample size necessary to estimate a population mean, the error of estimation, E, is
equal to the distance between the sample mean and the variance.
a. True
*b. False
General Feedback:
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations8
Australasian Business Statistics 4th edition
29. Suppose a researcher wants to conduct a study to estimate the population mean. He plans to use a
95% level of confidence to estimate the mean, and the population standard deviation is approximately 34.
The researcher wants the error to be no more than 4. The sample size should be at least 278.
*a. True
b. False
General Feedback:
Section 8.5, Difficulty: Medium
30. Cameron Sinclair, Information Services Manager with Global Financial Service (GFS), is studying
employee use of GFS email for non-business communications. He plans to use a 98% confidence
interval estimate of the proportion of email messages that are non-business; he will accept a 0.05 error.
Previous studies indicate that approximately 30% of employee email is not business related. Cameron
should sample 323 email messages.
a. True
*b. False
General Feedback:
Section 8.5, Difficulty: Easy
31. When a range of values is used to estimate a population parameter, it is called _______.
General Feedback:
Section 8.1, Difficulty: Easy
32. Nick Petritis, Operations Manager with the Palmerston North Trust Bank, is evaluating the service
level provided to walk-in customers. Accordingly, his staff recorded the waiting times for 45 randomly
selected walk-in customers, and calculated that their mean waiting time was 15 minutes. If Nick
concludes that the average waiting time for all walk-in customers is 15 minutes, he is using a ________.
a. a range estimate
b. a statistical parameter
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations9
Australasian Business Statistics 4th edition
c. an interval estimate
*d. a point estimate
General Feedback:
Section 8.1, Difficulty: Medium
33. Sam Gates, Marketing Director of Mansfield Motors' Electrical Division, is leading a study to assess
the relative importance of product features. An item on a survey questionnaire distributed to 100
Mansfield customers asked them to rate the importance of 'efficiency of operation' on a scale of 1 to 10
(with 1 meaning 'not important' and 10 meaning 'highly important'). His staff assembled the following
statistics.
If Sam concludes that the average rate of 'efficiency of operation' for all customers is 6.0, he is using
________.
General Feedback:
Section 8.1, Difficulty: Medium
34. Ann Huang, Marketing Director with Pacific West Airlines, is assessing the relative importance of
the 'total flight' experience. An item on a survey questionnaire distributed to 100 of Pacific's customers
asked them to rate the importance of 'cabin space' on a scale of 1 to 10 (with 1 meaning 'not important'
and 10 meaning 'highly important'). Her staff assembled the following statistics from the responses.
If Ann concludes that the average rate of 'cabin space' for all customers is 7.2, she is using
________.
a. an interval estimate
b. a statistical parameter
c. a range estimate
*d. a point estimate
General Feedback:
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations10
Australasian Business Statistics 4th edition
35. The z-value associated with a two-sided 95% confidence interval is _______.
a. 1.28
b. 1.645
*c. 1.96
d. 2.575
General Feedback:
Section 8.1, Difficulty: Easy
36. The z-value associated with a two-sided 82% confidence interval is _______.
a. 1.41
*b. 1.34
c. 0.46
d. 1.75
General Feedback:
Section 8.1, Difficulty: Easy
37. Suppose a random sample of 36 is selected from a population with a standard deviation of 12. If the
sample mean is 98, the 90% confidence interval for the population mean is _______.
General Feedback:
Section 8.1, Difficulty: Medium
38. Nick Petritis, Operations Manager with the Palmerston North Trust Bank, is evaluating the service
level provided to walk-in customers. Accordingly, his staff recorded the waiting times for 64 randomly
selected walk-in customers and determined that their mean waiting time was 15 minutes. Assume that
the population standard deviation is 4 minutes. The 95% confidence interval for the population mean of
waiting times is ________.
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations11
Australasian Business Statistics 4th edition
General Feedback:
Section 8.1, Difficulty: Medium
39. James Weepu, Human Resources Manager with Auckland First Bank (AFB), is reviewing the
employee training programs of AFB branches. His staff randomly selected personnel files for 100 tellers
in the Southern Region and determined that their mean training time was 25 hours. Assume that the
population standard deviation is 5 hours. The 88% confidence interval for the population mean of
training times is ________.
# Section 8.1, Difficulty: Medium
a. 17.25 to 32.75
*b. 24.23 to 25.78
c. 24.42 to 25.59
d. 19.15 to 30.85
40. James Weepu, Human Resources Manager with Auckland First Bank (AFB), is reviewing the
employee training programs of AFB branches. His staff randomly selected personnel files for 100 tellers
in the Southern Region and determined that their mean training time was 25 hours. Assume that the
population standard deviation is 5 hours. The 95% confidence interval for the population mean of
training times is ________.
a. 15.20 to 34.80
b. 24.18 to 25.82
*c. 24.02 to 25.98
d. 16.78 to 33.23
General Feedback:
Section 8.1, Difficulty: Medium
41. Sam Gates, Marketing Director of Mansfield Motors' Electrical Division, is leading a study to assess
the relative importance of product features. An item on a survey questionnaire distributed to 121 of
Mansfield's customers asked them to rate the importance of 'ease of maintenance' on a scale of 1 to 10
(with 1 meaning 'not important' and 10 meaning 'highly important'). His staff assembled the following
statistics.
The 95% confidence interval for the population mean rating of 'ease of maintenance' is
_____.
a. 5.34 to 9.66
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations12
Australasian Business Statistics 4th edition
b. 7.34 to 7.66
c. 5.69 to 9.31
*d. 7.30 to 7.70
General Feedback:
Section 8.1, Difficulty: Medium
42. Ann Huang, Marketing Director with Pacific West Airlines, is assessing the relative importance of
the 'total flight' experience. An item on a survey questionnaire distributed to 121 of Pacific's customers
asked them to rate the importance of 'cabin space' on a scale of 1 to 10 (with 1 meaning 'not important'
and 10 meaning 'highly important'). Her staff assembled the following statistics from the responses.
The 99% confidence interval for the population mean rating of 'cabin space' is ________.
a. 0.00 to 7.39
b. 0.00 to 14.45
*c. 6.33 to 8.07
d. 6.47 to 14.45
General Feedback:
Section 8.1, Difficulty: Medium
43. A random sample of 64 items is selected from a population of 400 items. The sample mean is 200.
The population standard deviation is 48. From this data, a 90% confidence interval to estimate the
population mean can be calculated as _______.
a. 189.21 to 210.79
b. 188.24 to 211.76
c. 190.13 to 209.87
*d. 190.94 to 209.06
General Feedback:
Section 8.1, Difficulty: Medium
44. The normal distribution is used to test about a population mean for large samples if the population
standard deviation is known. 'Large' is usually defined as _______.
a. at least 100
b. at least 5% of the population size
*c. at least 30
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations13
Australasian Business Statistics 4th edition
d. at least 12
General Feedback:
Section 8.2, Difficulty: Easy
a. not symmetric
b. bimodal
*c. flatter
d. discrete
General Feedback:
Section 8.2, Difficulty: Medium
46. In order to find values in the t- distribution table, you must convert the sample size or sizes to
_______.
a. population sizes
*b. degrees of freedom
c. z-values
d. student values
General Feedback:
Section 8.2, Difficulty: Easy
47. The table t- value associated with the upper 5% of the t-distribution and 12 degrees of freedom is
_______.
a. 2.179
*b. 1.782
c. 1.356
d. 3.055
General Feedback:
Section 8.2, Difficulty: Easy
48. The table t-value associated with the upper 10% of the t-distribution and 23 degrees of freedom is
_______.
*a. 1.319
b. 1.714
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations14
Australasian Business Statistics 4th edition
c. 2.069
d. 1.321
General Feedback:
Section 8.2, Difficulty: Easy
49. The table t-value associated with the upper 10% of the t-distribution and 17 degrees of freedom is
_______.
*a. 1.333
b. 1.337
c. 1.740
d. 2.567
General Feedback:
Section 8.2, Difficulty: easy
50. The table t-value associated with the upper 0.5% of the t-distribution and 4 degrees of freedom is
_______.
*a. 4.604
b. 2.776
c. 2.132
d. 2.353
General Feedback:
Section 8.2, Difficulty: Easy
51. The table t-value associated with 12 degrees of freedom and used to calculate a 95% confidence
interval is _______.
a. 3.055
*b. 2.179
c. 1.782
d. 1.796
General Feedback:
Section 8.2, Difficulty: Easy
52. The table t-value associated with 8 degrees of freedom and used to calculate a 99% confidence
interval is _______.
a. 1.397
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations15
Australasian Business Statistics 4th edition
b. 1.860
*c. 3.355
d. 2.896
General Feedback:
Section 8.2, Difficulty: Easy
53. The lengths of steel rods produced by a shearing process are normally distributed. A random sample
of 10 rods is selected; the sample mean length is 119.05 cm; and the sample standard deviation is 0.10
cm. The 95% confidence interval for the population mean rod length is ______________.
a. 118.99 to 119.11
b. 118.82 to 119.28
*c. 118.98 to 119.12
d. 118.85 to 119.25
General Feedback:
Section 8.2, Difficulty: Medium
54. The weights of aluminium castings produced by a process are normally distributed. A random
sample of 5 castings is selected; the sample mean weight is 2.21 kg; and the sample standard deviation is
0.12 kg. The 98% confidence interval for the population mean casting weight is _________.
a. 1.76 to 2.66
*b. 2.01 to 2.41
c. 2.08 to 2.34
d. 1.93 to 2.49
General Feedback:
Section 8.2, Difficulty: Medium
55. Life tests performed on a sample of 13 batteries of a new model indicated: (1) an average life of 75
months, and (2) a standard deviation of 5 months. Other battery models, produced by similar processes,
have normally distributed life spans. The 90% confidence interval for the population mean life of the
new model is _________.
a. 66.78 to 83.23
b. 72.72 to 77.28
*c. 72.53 to 77.47
d. 66.09 to 83.91
General Feedback:
Section 8.2, Difficulty: Medium
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations16
Australasian Business Statistics 4th edition
56. A random sample of 225 items from a population results in 60% possessing a given characteristic.
Using this information, the researcher constructs a 99% confidence interval to estimate the population
proportion. The resulting confidence interval is _______.
a. 0.54 to 0.66
b. 0.59 to 0.61
c. 0.57 to 0.63
*d. 0.52 to 0.68
General Feedback:
Section 8.3, Difficulty: Medium
57. Cameron Sinclair, Information Services Manager with Global Financial Service (GFS), is studying
employee use of GFS email for non-business communications. A random sample of 200 email messages
was selected. Thirty of the messages were not business related. The point estimate for this population
proportion is _______.
*a. 0.150
b. 0.300
c. 0.182
d. 0.667
General Feedback:
Section 8.3, Difficulty: Easy
58. Cameron Sinclair, Information Services Manager with Global Financial Service (GFS), is studying
employee use of GFS email for non-business communications. A random sample of 200 email messages
was selected. Thirty of the messages were not business related. The 95% confidence interval for the
population proportion is _________.
a. 0.108 to 0.192
b. 0.153 to 0.247
c. 0.091 to 0.209
*d. 0.101 to 0.199
General Feedback:
Section 8.3, Difficulty: Medium
59. Catherine Cho, Director of Marketing Research at Vitalglow Pty Ltd, is evaluating consumer
acceptance of a new toothpaste package. She randomly selects a sample of 200 Darwin households.
Forty households prefer the new package to all other package designs. The point estimate for this
population proportion is _______.
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations17
Australasian Business Statistics 4th edition
*a. 0.20
b. 0.25
c. 0.40
d. 0.45
General Feedback:
Section 8.3, Difficulty: Medium
60. Erin O'Brien, Director of Consumer Credit with Auckland First Bank (AFB), has implemented a 'fast
feedback' to keep her informed of the default rate on personal loans at AFB member banks. On each
Friday, the default rate is calculated for a sample of 500 personal loans. Last Friday's sample contained
30 defaulted loans. The 90% confidence interval for the population proportion is _________.
General Feedback:
Section 8.3, Difficulty: Medium
61. Kylie Ventura, Investments Manager with Ventura Value Funds, manages a portfolio of 250
common stocks. Kylie relies on various statistics, such as variance, to assess the overall risk of stocks in
an economic sector. Her staff reported that for a sample 14 utility stocks the mean annualised return was
14% and that the variance was 3%. Assume that annualised returns are normally distributed. The 90%
confidence interval for the population variance of annualised returns is _______.
a. 0.018 to 0.064
b. 0.016 to 0.078
*c. 0.017 to 0.066
d. 0.016 to 0.075
General Feedback:
Section 8.4, Difficulty: Medium
62. James Weepu, Human Resources Manager with Auckland First Bank (AFB), is reviewing the
employee training programs of AFB branches. His staff randomly selected personnel files for 10 tellers
in the Northern Region, and determined that their mean training time was 25 hours and that the standard
deviation was 5 hours. Assume that training times are normally distributed. The 90% confidence interval
for the population variance of training times is ________.
a. 11.83 to 83.33
b. 2.37 to 16.67
c. 2.66 to 13.51
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations18
Australasian Business Statistics 4th edition
General Feedback:
Section 8.4, Difficulty: Medium
63. The finite correction factor should be used if the sample size is _______.
General Feedback:
Section 8.4, Difficulty: Medium
64. In estimating sample size, if the population standard deviation is unknown, it can be estimated by
using _______.
General Feedback:
Section 8.5, Difficulty: Medium
65. James Weepu, Human Resources Manager with Auckland First Bank (AFB), is reviewing the
employee training programs of AFB branches. He plans to use a 95% confidence interval estimate of
mean training time of tellers and is willing to accept an error of 1 hour; previous studies indicated a
standard deviation of 2 hours. The sample size should be at least _______.
a. 4
*b. 16
c. 34
d. 68
General Feedback:
Section 8.5, Difficulty: Medium
66. A researcher wants to determine the sample size necessary to adequately conduct a study to estimate
the population mean to within 5 points. The range of population values is 80 and the researcher plans to
use a 90% level of confidence. The sample size should be at least _______.
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations19
Australasian Business Statistics 4th edition
*a. 44
b. 62
c. 216
d. 692
General Feedback:
Section 8.5, Difficulty: Medium
67. Cameron Sinclair, Information Services Manager with Global Financial Service (GFS), is studying
employee use of GFS email for non-business communications. He plans to use a 95% confidence
interval estimate of the proportion of email messages that are non-business; he will accept a 0.05 error.
Previous studies indicate that approximately 30% of employee email is not business related. Cameron
should sample _______ email messages.
*a. 323
b. 12
c. 457
d. 14
General Feedback:
Section 8.5, Difficulty: Easy
68. A researcher wants to estimate a population proportion with a 90% level of confidence.
From previous studies she estimates that the population proportion is no more than .30. The researcher
wants the estimate to have an error of no more than .02. The necessary sample size is at least _______.
a. 29
b. 47
c. 298
*d. 1421
General Feedback:
Section 8.5, Difficulty: Medium
Correct Answer:
Section 8.1. A point estimate is a statistic calculated from a sample that is used to estimate a population
parameter such as the mean or standard deviation.
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations20
Australasian Business Statistics 4th edition
70. What is the difference between a point estimate and an interval estimate?
Correct Answer:
Section 8.1. Because a point estimate is unlikely to be exactly the same as that for the entire population,
it could overestimate or underestimate to the true value. Since the value of a sample statistic is likely to
vary from sample to sample, estimating a population parameter with an interval estimate is often
preferable to simply using a point estimate. An interval estimate is a range of values within which the
researcher can declare, with a particular level of confidence, where the population parameter lies.
Correct Answer:
Section 8.2. Gosset developed the t distribution. This distribution is used instead of the z distribution for
doing inferential statistics on the population mean when both:
-the population standard deviation is unknown
- the population variable of interest is normally distributed.
Correct Answer:
Section 8.2. The t-distribution is used to obtain the critical value for a confidence interval estimate for
the population mean when the value for the population standard deviation is unknown and the sample
size is reasonably small. Technically, the t-distribution can be used when the standard deviation is not
known, but since the t-distribution and the z-distribution converge for large samples, it generally does
not matter in cases where the sample size is large.
Correct Answer:
Section 8.3. We conduct a pilot sample when we want to calculate a required sample size to estimate a
population mean or a population proportion. A pilot sample is a sample that is smaller than the final
sample that will be needed to complete the estimation. Using a pilot sample, we calculate s, the sample
standard deviation and use that value in the sample size computation. When we wish to estimate a
population proportion, the pilot sample is used to get an idea of what π is. From the pilot sample, we
compute p, the sample proportion and use that in the sample size formula.
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations21
Australasian Business Statistics 4th edition
74. In a recent audit report for a car wash, an accounting firm stated that the mean sale per customer for
the car wash was estimated to be between $22.50 and $32.50. Further, this was based on a random
sample of 150 customers and was computed using 95 percent confidence. Provide a correct
interpretation of this confidence interval estimate.
Correct Answer:
Section 8.3. A correct interpretation is: "Based on a random sample of 150 customers, with 95 percent
confidence, we believe that the true mean sale per customer is in the range $22.50 to $32.50."
75. Describe the disadvantages of using a small sample to estimate the population mean?
Correct Answer:
Section 8.5. A small sample has two types of effects on impacts the estimation of a population mean.
First, in developing a confidence interval estimate for μ, we need the standard error of the sampling
distribution. A small value for n results in larger standard error. Then, when we calculate the confidence
interval using , the width of the interval is greater than would be the case for a larger sample
size. This means that the margin of error is larger, which is undesirable. Further, in most applications,
the population standard deviation, , is unknown and we must estimate it using s, the sample standard
deviation. Furthermore, when we need to estimate the population standard deviation, , we estimate it
using s. Since the t-distribution is more spread out than the z-distribution, the width of the interval will
be wider when the small sample size is used. Thus, the width is expanded in two ways- larger standard
error and larger critical value.
76. If a manager needs to estimate the mean time customers spend shopping on each visit to the store but
can't afford a large sample size, what are her options?
Correct Answer:
Section 8.5.
The manager has three options:
- She may select to lower the sample size by lowering the desired level of confidence. This gives a
smaller critical value and she can get by with a smaller sample size if she does not have to be as
confident.
- She can allow a larger margin of error. This means that the width of the interval will be wider (not as
precise).
- She can do some combination of decreasing the confidence level and increasing the margin of error.
77. A major department store conducted a study recently to estimate the mean amount spent by
customers each time they visited. To do this, a random sample of customers was selected with the
following data being recorded that show the gallons of gasoline purchased.
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations22
Australasian Business Statistics 4th edition
Based on these sample data, construct and interpret a 95 percent confidence interval estimate for the
population mean.
Correct Answer:
Section 8.3. Since the population standard deviation is unknown, and since the size of the sample is
fairly small, the format for the confidence interval estimate is:
Thus, the 95 percent confidence interval estimate is 59.2547± 14.2189. We interpret this as follows:
"Based on a random sample of 15 customers selected from the population of interest, with 95 percent
confidence we believe that the true mean purchase per visit to the department store is between $45.04
and $73.47."
78. The number of computers coming off a production line each day is known to have a standard
deviation of 98 computers per day. The production manager tells you that the 90% confidence interval
for the population mean was 468.3 to 521.8. How large of a sample was this confidence interval based
on?
Correct Answer:
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations23
Australasian Business Statistics 4th edition
Section 8.5.
© John Wiley & Sons Australia, Ltd 2016 Chapter 8 Statistical inference: estimation for single populations24
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It must have been about the beginning of May—just at
the time when the lilac on the bush near Granny Robin's
window was in full bloom—that a very strange thing
happened. The children had seen nothing more of the light
in the church since the Sunday when they had called Mr.
Robin to see it, and they were beginning to despair of ever
seeing it again. Yet still, when Sunday evening came, they
climbed on the flat tombstone, and looked in through the
window, hoping against hope that it might appear, and that
they might be able to prove the truth of their story. But as
the days grew longer and lighter, it became more and more
unlikely that any one who might happen to be in the old
church would require a light until long after Audrey's and
Stephen's bedtime.
Audrey was in alone, for the rain was falling fast, and
she and Stephen had not been together all day. The little
girl sat for some time by the window, watching the rain
which was beating mercilessly on the old tombs, and
covering the grave of the two grandchildren who died young
with the tiny blue blossoms of the forget-me-not which
Stephen had planted there.
"What's the matter with you?" she said. "Are you ill?
Have you hurt yourself?"
"Oh no," said the old man in a louder voice, "don't tell
of me. I didn't do nobody any harm—don't fetch anybody;
don't thee now—they'll lock me up if they come!"
"I'LL FETCH SOMEBODY," SAID AUDREY.
"Mr. Robin won't lock you up," said Audrey; "he's very
kind is Mr. Robin."
She could hardly tell him what she wanted, for her
heart was beating so fast with the fright she had had; but
she begged him to come with her, and to come at once, and
to bring a candle with him.
CHAPTER X
Old Joe
There, on the grass under the yew tree, lay an old man,
so small, so thin, so shrivelled, that he looked no bigger
than a boy twelve years old. His hat had fallen from his
head, and his untidy grey hair hung upon his shoulders, and
round his neck was a board on which was written the one
word—"Blind."
But just then the old man opened his eyes, and said in
a trembling voice—
"We'll take him to the fire," said Mr. Robin. "Go and get
Stephen's father to help me, Audrey; he'll be in by now."
The kettle was soon boiled, and they gave him some hot
tea, and then the colour came back a little into his ashen
face, and he said—
"Yes," said the old man. "I've slept there about a year
now. You won't tell of me, will you? I've nowhere else to go
but to the house, and I don't do a bit of harm—not a bit I
don't."
"Did you see it?" said the old man piteously. "Don't tell
of me—don't!"
"Not in the pulpit," said the old man. "I curl away in the
pulpit, and put my head on an old cushion—it's snug up in
the pulpit. Don't tell of me—now don't, there's good folks!"
"But what do you want a light for?" said Mr. Robin
gravely.
"And you may sleep on this sofa till morning," added Mr.
Robin. "We are trusting you very much by letting you stay
under our roof; but we can't turn you out in the rain. You
won't disappoint our trust, will you?"
"No, I won't, sir," said old Joe; "and thank you kindly,
sir!"
"I've been a bad, wicked old man," said Joe. "I don't
suppose He would have anything to do with such as me."
"I haven't said a prayer since I was a little lad and went
to Sunday-school," said old Joe—"not for sixty years or
more. It's too late for me to begin now."
"No, it isn't too late," said Audrey. "It's never too late to
begin to pray."
"And you can say it when you're out under the railway-
bridge, can't you?" asked Audrey.
"I think so; I'll try," said the old man humbly.
CHAPTER XI
The Hot Summer
Yet tears would often come into the old man's eyes as
he looked at the child. He had had no one to love him or to
care for him till the children had found him, and now one of
them was going to leave him.
"He is, though," said the old man; "and what's more, he
knows it hisself."
Granny Robin dried her eyes; she would not grieve the
little lad by her tears. And there was Audrey to be
comforted—poor little Audrey—who had come in crying and
full of sorrow.
"I always look out before I get into bed," said the child.
"I always have a peep at the grave of the two
grandchildren. Yes—there it is; isn't it pretty, father? I
wonder if any angels are looking at it now, and if they see
you and me up here? Shall you plant any flowers on my
grave? You will, won't you? I do wish I could be buried here,
under the window."
CHAPTER XII
White Robes