Let’s assume you have taken 100 samples of size 64 each from a normally distributed population.
Calculate the standard deviation of the sample means if the population’s variance is 49.
sqrt(var)
= sqrt(49)
=7
sd/sqrt(N)
= 7/sqrt(64)
= 7/8
= 0.875
2.
A business wants to estimate the true mean annual income of its customers. It randomly samples 200
of its customers. The mean annual income was $52,500 with a standard deviation of $1,800. Find a
95% confidence interval for the true mean annual income of the business’ customers.
3.
B) 0
C) 1
D) 2
4.
A) 2
B) 1
C) 0
D) none of these
5.
A) 1
B) 0
C) none of these
D) 2
6.
If Tom gets a 70 on a physics test where the mean is 65 and the standard deviation is 5.8, where
does he stand in relation to his classmates?
Z=(70-65)/5.8=0.86 corresponds to a probability of 0.8051. This means that about 80% of the
students scored lower than him.
A) he is in the top 10%
7.
A) 1
B) none of these
C) 2
D) 0
8.
The area to the left of "z" is .9976. What z score corresponds to this area?
A) 2.85
B) 2.82
C) none of these
D) -2.89
9.
B) none of these
C) 0
D) 1
10.
An auditor wants to estimate what proportion of a bank’s commercial loan files are incomplete. The
auditor randomly samples 100 files and finds 9 are incomplete. Using a 95% confidence interval,
estimate the true proportion of incomplete files for ALL the bank’s commercial loans.
Phat ± z*Sqrt(phat(1-phat)/n)
= 0.09 ±1.96*Sqrt(0.09(1-0.09)/100)
= (0.034, 0.146)
We are 95% confident that the proportion of all bank's commercial loan files lies between 0.034 and
0.146.
11.
According to the Central Limit Theorem, how big of a sample is necessary to make sure the sampling
distribution of sample means is normally distributed, if we know the underlying population is already
normally distributed?
Choose a sample of 30 to ensure that the sample means are normally distributed
12.
Interpret a 95% confidence interval of (3.355, 3.445) for the population mean.
We are 95 percent confident that the population mean lies between 3.355 and 3.445
13.
Find P(9 < x < 15) when mu = 12 and sigma = 2. Write your steps in probability notation.
P(9<x<15)=P((9-12)/2<x<(15-12)/2)=P(-1.5<z<1.5)=z(1.5)-z(-1.5)= 0.933-0.0668=0.8664
14.
An auditor wants to estimate what proportion of a bank’s commercial loan files are incomplete. The
auditor wants to be within 4% of the true proportion when using a 95% confidence level. How many
files must the auditor sample? No estimate of the proportion is available, so use 0.5 for the population
proportion.
N ≥ p(1-p)z^2/E^2
N ≥ 0.5(1-0.5)1.96^2 / 0.04^2
N ≥ 600.25
15.
Compute the population mean margin of error for a 99% confidence interval when sigma is 4 and the
sample size is 36.
2.5758 * 4/sqrt(36)
A) ± 1.3066...
B) ± 1.0966...
C) none of these
D) ± 1.717...
16.
An automobile safety engineer wants to estimate the mean cost to repair a Chevy Corvette involved in
a 30 mile per hour head-on collision. The engineer crashes 20 Corvettes and finds the mean damage
is $16,300 with a standard deviation of $2,330. Find a 95% confidence interval for the true mean cost
to repair this type of car.
The t score for a 0.95 confidence interval is the t score such that 0.025 is in each tail.
t = 2.093024
The confidence interval is:
17.
A standard IQ test has a mean of 98 and a standard deviation of 16. We want to be 90% certain that
we are within 8 IQ points of the true mean. Determine the sample size.
A) 10
B) 11
C) 27
D) none of these
18.
A business wants to estimate the true mean annual income of its customers. The business needs to be
within $500 of the true mean. The business estimates the true population standard deviation is around
$2,300. If the confidence level is 95%, find the required sample size in order to meet the desired
accuracy.
19.
-3=(x-25)/3
-9=x-25
-9+25=x
16=x
A) none of these
B) 20
C) 18
D) 16
20.
What is the critical z-value that corresponds to a confidence level of 88%
A) approximately 1.48
B) approximately 1.75
C) approximately 1.55
D) approximately 2.11