BASIC STAT PROBLEM SET#1:

 Activity is for a group of 3 members maximum. Submission will be on April 22, 2019.
 Copy and answer the following problems in a short bond paper (1 problem per page, with cover page, 6 pages total).
 All final answers should be briefly written in complete sentence (use red ink for the final answer only).
 Margin: ½ inch on all sides in red ink.

1. You want to rent an unfurnished one-bedroom apartment for next semester. The mean monthly rent for a random sample
of 10 apartments advertised in the local newspaper is ₱2540. Assume that the standard deviation is ₱80.
(a) Find a 95% confidence interval for the mean monthly rent for unfurnished one-bedroom apartments available for rent in
this community.
(b) Compare the margin of error for intervals with 90, 95, and 99% confidence. Make an inference in one sentence only.

2. Your company sells exercise clothing and equipment on the Internet. To design the clothing, you collect data on the physical
characteristics of your different types of customers. Here are the weights (in kilograms) for a sample of 24 male runners.
Suppose the standard deviation of the population is known to be 4.5 kg.

67.8 61.9 63.0 53.1 62.3 59.7 55.4 58.9 60.9 69.2 63.7 61.7
68.3 64.7 65.6 56.0 57.8 66.0 62.9 53.6 65.0 55.8 60.4 69.3

(a) What is the standard deviation of the sample?

(b) Give a 95% confidence interval for µ, the mean of the population from which the sample is drawn.
(c) Suppose a 25th male runner had a reported weight of 92.3 kg. Find the 95% interval for the new data and compare. Make
an inference in one sentence.

3. The operations manager of a large production plant would like to estimate the mean amount of time a worker takes to
assemble a new electronic component. Assume that the standard deviation of this assembly time is 3.6 minutes.
(a) After observing 120 workers assembling similar devices, the manager noticed that their average time was 16.2 minutes.
Construct a 92% confidence interval for the mean assembly time.
(b) How many workers should be involved in this study in order to have the mean assembly time estimated up to ±15 seconds
with 92% confidence?

4. An important issue facing Filipinos is the large number of medical malpractice lawsuits and the expenses that they generate.
In a study of 1228 randomly selected medical malpractice lawsuits, it is found that 856 of them were later dropped or
dismissed. Construct a 99% confidence interval estimate of the proportion of medical malpractice lawsuits that are dropped
or dismissed. Does it appear that the majority of such suits are dropped or dismissed?

5. Because cardiac deaths appear to increase after heavy snowfalls, an experiment was designed to compare cardiac demands
of snow shovelling to those of using an electric snow thrower. Ten subjects cleared tracts of snow using both methods, and
their maximum heart rates were recorded during both activities. The following results were obtained (based on data from
“Cardiac Demands of Heavy Snow Shovelling,” by Franklin et al., Journal of the American Medical Association, Vol. 273, No.11);
Assume that maximum heart rates are normally distributed.

Manual snow shovelling maximum heart rates: n = 10, 𝑥̅ = 175, s = 15.

Electric snow thrower maximum heart rates: n = 10, 𝑥̅ = 124, s = 18.

(a) Find the 95% confidence interval estimate of the population mean for those people who shovel snow manually.
(b) Find the 95% confidence interval estimate of the population mean for those people who use the electric snow thrower.
(c) Compare the confidence intervals from parts a) and b) and interpret your findings.

6. Suppose a consumer advocacy group would like to conduct a survey to find the proportion p of consumers who bought the
newest generation of an IPhone were happy with their purchase.
(a) How large a sample n should they take to estimate p with 2% margin of error and 90% confidence?
(b) The advocacy group took a random sample of 1000 consumers who recently purchased this IPhone and found that 400
were happy with their purchase. Find a 95% confidence interval for p.