Problem No. 8.

23 Solution: a) .

= -0.00023 1.9842.

-0.000566 0.000106

b) The population distribution needs to be normally distributed. However with a sample of 100, we can still use t-distribution as a result of Central Limit Theorem even if population distribution is not normal c)

Normal Prob Plot

0.006 0.005 0.004 0.003 0.002 Error 0.001 0 -0.001 -0.002 -0.003 -0.004 -3 -2 -1 0 Z Value 1 2 3

Box-and-Whisker Plot

-0.004

-0.002

0.002

0.004

0.006

Both the normal probability Plot and Box-and-Whisker Plot suggest that the distribution is skewed to the right. d) The mean difference between the actual length of the steel part and the specified length of the steel part is between -0.000566 and 0.000106 inches, which is narrower than the plus or minus 0.005 inches requirement, we are 95% confident. The steel mill is doing good job at meeting the requirement. This is consistent with the finding in Problem 2.23.

Problem No. 8.33 Solution: a) = = = 0.21 p .

( )

= 0.21 1.96

0.18 0.24 = 0.21 p .

( )

b)

= =

= 0.21 2.57

0.17 0.25

c) Interpretation of (a): We are 95% confident that the population proportion of the employers who had a mandatory mail order program in place or are adopting one by the end of 2004 is between 0.18 & 0.24 Interpretation of (b): We are 99% confident that the population proportion of the employers who had a mandatory mail order program in place or are adopting one by the end of 2004 is between 0.17 & 0.25

d) When the level of confidence is increased, the confidence interval becomes wider. The loss in precision reflected as a wider confidence interval is the price we have to pay to achieve a higher level of confidence.

Problem No. 8.46 Solution a) n = b) n =

( ( ) )

= =

. .

. ( . . ( .

( . ) ( . )

) )

= 2376.896 = 1977.385

We will use n = 2377 We will use n = 1978

c) The sample sizes differ because the estimated population proportions are different. d) It is appropriate to use one sample and ask respondents both the questions. However, drawing two separate samples is also appropriate for the setup.