21. What is sampling error? Could the value of the sampling error be zero?

If it were zero, what would this mean? The difference between this sample statistic and the population parameter is the sampling error. The value of the sample error could be zero although it is not likely, however if it were to be zero, the sample mean and the population mean would be equal. 22. List the reasons for sampling. Give an example of each reason for sampling. The reasons for sampling are: To contact the entire population is too time consuming or too expensive. If I wanted to know how many households in NC have cable TV, sampling would be easier and more convenient than trying to contact the whole population. Checking all the items is physically impossible or adequate. If I wanted to know how many homes have children over the age of 2 in a certain county, it would take forever to go door to door and actually be able to reach someone when they are home to verify the information

34. Information from the American Institute of Insurance indicates the mean amount of life Insurance per household in the United States is $110,000. This distribution follows the normal distribution with a standard deviation of $40,000. u=110,000, s=40,000 1. n=50 SE = s/sqrt(n) = 40000/sqrt(50) = 5656.85425 2. Since the distribution of x is normal, so will be the distribution of the sample mean. So we expect a bell shaped curve centered at the mean of 110,000 with a standard deviation of 5656.85 3. x=112,000 z=(x-u)/SE = (112000-110000) / 5656.85425 = 0.3536. If we look in a z-table we can find that this area has probability 0.6381 So then the remaining probability is 1-0.6381 = 0.3618 So there is a 36% likelihood of selecting a sample mean of at least $112,000 4. Using the same methods, we get z=-1.7678 so our probability is 1-0.0385 = 0.9614 There is a 96% likelihood of selecting a sample with a mean of more than $100,000. Using the z-scores 0.3536 (0.6381) 1.7678 (0.0385): The probability is then 0.6381 - 0.0385 = 0.5996 the likelihood of selecting a sample with a mean between 100,000 and 112,000 is 60%.

Chapter 9.- Excel Spreadsheet 32- Spreadsheet 34- Spreadsheet 46. As a condition of employment, Fashion Industries applicants must pass a drug test. Of the

last 220 applicants 14 failed the test. Develop a 99 percent confidence interval for the proportion of applicants that fail the test. Would it be reasonable to conclude that more than 10 percent of the applicants are now failing the test? In addition to the testing of applicants, Fashion Industries randomly tests its employees throughout the year. Last year in the 400 random tests conducted, 14 employees failed the test. Would it be reasonable to conclude that less than 5 percent of the employees are not able to pass the random drug test? Proportion is 14/220 = 0.064 Confidence interval= 0.064 +/- 2.575*sqrt(.064*.936/220) = (0.0215, 0.1065) 28 people who failed 620 tests= 0.0452 Critical values= 2.575 and -2.575 z = (0.0452-0.05)/sqrt(0.05*0.95/620)=-0.548. 0.548 employees and not pass the random drug test. Yes I can conclude that less than 5 percent of the employees are not able to pass the random drug test Discussion Question 5 You have been approached by the editor of Gentlemen's Magazine to carry out a research study. The magazine has been unsuccessful in attracting shoe manufacturers as advertisers. When the sales force tried to secure advertising from shoe manufacturers, they were told men's clothing stores are a small and dying segment of their business. Since Gentlemen's Magazine goes chiefly to men's clothing stores, the manufacturers reasoned that it was, therefore, not a good vehicle for their advertising. The editor believes that a survey (via mail questionnaire) of men's clothing stores in the United States will probably show that these stores are important outlets for men's shoes and are not declining in importance as shoe outlets. He asks you to develop a proposal for the study and submit it to him. Develop the management-research question hierarchy that will help you to develop a specific proposal Some of the questions that will help develop the proposal will include: First the managements concern need to be addressed. Next some of the questions that can be asked include: How to market Gentlemens Magazine to shoe manufactures. How profitable is shoe manufactures?

What types of sales sources does shoe manufactures uses the most? What percentage of clothing stores provide shoes sales? What is the percentage of demand of men shoes? How profitable are sales of shoes? How profitable are men shoes going to be to Gentlemens magazine? To customers: How many times a year do they purchase mens shoes? How many pair of shows do they purchase when they do purchase their shoes? What type of men shoes are they more likely to purchase? What are the preferred colors?