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**1. Sample Size Calculation for Confidence Interval**

**Question:**

A student conducted a study and reported that the 95% confidence

interval for the population mean was (46, 54). He was sure that the
population standard deviation was 20. What was the sample size (rounded
up to the nearest whole number) used to calculate this confidence
interval?

**Answer:**

To find the sample size, we use the formula for the margin of error (ME):

- **Confidence level:** 95% (so z ≈ 1.96)

- **Margin of error:** ME = (54 - 46) / 2 = 4

- **Population standard deviation:** σ = 20

Rearranging the formula to solve for n:

n = (z × σ / ME)²

Substituting the values:

n = (1.96 × 20 / 4)² ≈ (9.8)² = 96.04

**Rounded up, the sample size is:** **97**

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**2. Degrees of Freedom in Hypothesis Testing**

**Question:**

The null hypothesis of independence of variables in a contingency table

with 6 rows and 4 columns should be rejected (at a 95% confidence level)
if the test statistic is greater than:

**Answer:**

Degrees of freedom for a contingency table are calculated as:

df = (r - 1) × (c - 1)

For 6 rows and 4 columns:

df = (6 - 1) × (4 - 1) = 5 × 3 = 15

For a 95% confidence level and 15 degrees of freedom, the critical value
from the chi-square distribution table is approximately **24.996**.

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**3. Degrees of Freedom for Two Independent Samples**

**Question:**

Two samples of sizes 25 and 39 are independently drawn from two normal
populations, where the unknown variances are assumed to be equal. What
is the number of degrees of freedom for the test statistic?

**Answer:**
When the variances are assumed equal, the degrees of freedom is
calculated as:

df = n₁ + n₂ - 2

Where n₁ = 25 and n₂ = 39:

df = 25 + 39 - 2 = 62

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**4. Sampling Error and Bias**

**Question:**

What do we call the difference between the parameter value that is being
estimated and the expected value of that statistic?

**Answer:**

The difference between the parameter value and the expected value of
the statistic is known as **bias**.

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**5. P-value Calculation for a Hypothesis Test**

**Question:**

Consider the hypothesis test: H₀: μ = -12 against Hₐ: μ ≠ -12. If a random
sample of n = 49 provides a value of x̄ = -9, what is the p-value? Assume
that the population standard deviation is known to be 10.50.

**Answer:**
Calculate the z-score:

z = (x̄ - μ₀) / (σ / √n) = (-9 - (-12)) / (10.50 / √49) = 3 / 1.5 = 2

For a two-tailed test, the p-value is:

2 × P(Z > 2) ≈ 2 × 0.0228 = 0.0456

The closest option to this value is **0.04550026**.

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**6. Sampling Distributions and Tests**

**Question:**

Assuming that samples are drawn from normal distributions, which of the
following statements is false?

**Answer:**

The false statement is:

**c.** The unequal-variances t-test is used whenever the population

standard deviations are unknown and cannot be assumed to be equal.

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**7. P-value Determination**

**Question:**
In order to determine the p-value of a hypothesis test, which of the
following is not needed?

**Answer:**

To determine the p-value, you do not need **the level of significance

(alpha)**.

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**8. Confidence Interval Calculation**

**Question:**

An analyst is conducting a hypothesis test to determine if the mean time

spent on investment research by portfolio managers is different from 3
hours per day. The test uses a random sample of 64 portfolio managers,
where the sample mean time spent on research is found to be 2.7 hours.
The population standard deviation is 1.5 hours. What is the 99%
confidence interval for the population mean time spent on investment
research by portfolio managers?

**Answer:**

Calculate the margin of error using:

ME = z × (σ / √n)

For a 99% confidence level, z ≈ 2.576:

ME = 2.576 × (1.5 / √64) = 2.576 × 0.1875 = 0.4845

The confidence interval is:

2.7 ± 0.4845 = (2.2155, 3.1845)

Rounded to the closest option: **(2.22, 3.18)**.

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**9. Confidence Interval Definition**

**Question:**

A confidence interval is defined as:

**Answer:**

A confidence interval is defined as:

**b.** A lower and upper confidence limit associated with a specific level
of confidence.

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**10. Population Standard Deviation Calculation**

**Question:**

On the basis of a random sample of 100 men from a particular province in

South Africa, a 95% confidence interval for the mean height of men in the
province is found to be (178.54 cm; 179.94 cm). What is the value of the
standard deviation of the population from which this sample was drawn?

**Answer:**

Calculate the standard deviation using:

ME = (Upper limit - Lower limit) / 2 = (179.94 - 178.54) / 2 = 0.70

Using the formula:

σ = (ME × √n) / z = (0.70 × 10) / 1.96 ≈ 3.57

**Correct Answer:** **3.6**

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**11. Hypothesis Test for Proportion**

**Question:**

Consider the hypothesis test: H₀: p ≤ 0.70 against Hₐ: p > 0.70 where p is
the population proportion of successes. If there are 608 successes in a
random sample of size 800, what should be the correct conclusion if α =
0.10?

**Answer:**

Calculate the sample proportion:

p̂ = 608 / 800 = 0.76

Calculate the z-score:

z = (p̂ - p₀) / √(p₀(1 - p₀) / n) = (0.76 - 0.70) / √(0.70 × 0.30 / 800) = 0.06 /
0.0162 ≈ 3.70

Since z = 3.70 exceeds the critical value of 1.28 for α = 0.10, we reject H₀.

**Correct Answer:** **Reject H₀: p ≤ 0.70**.

---

**12. Sampling Method**

**Question:**

Choose the correct option regarding the sampling method.

**Answer:**

Sampling methods are characterized by:

**d.** All of the above options are correct (sampling saves money, time,
and energy; the sample is a part of the population; it helps in determining
the sampling error).

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**13. Confidence Interval for Difference in Means**

**Question:**

Consider the following information about two independent random

samples:

- Sample 1: n₁ = 34, x̄₁ = 72, s₁ = 8

- Sample 2: n₂ = 40, x̄₂ = 64, s₂ = 10

What is the 95% confidence interval estimate of the difference between

the two population means, μ₁ - μ₂?

**Answer:**

Calculate the standard error (SE):

SE = √(s₁² / n₁ + s₂² / n₂) = √(64 / 34 + 100 / 40) ≈ 2.091

For a 95% confidence level, t ≈ 2.00 for df ≈ 72:

ME = t × SE = 2.00 × 2.091 = 4.182

Confidence interval:

(x̄₁ - x̄₂) ± ME = 8 ± 4.182 = (3.818, 12.182)

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**14. Properties of a Good Point Estimator**

**Question:**

Properties of a good point estimator include which of the following?

**Answer:**

A good point estimator should be:

**c.** All of the above (Unbiasedness, Efficiency, Consistency).

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**15. Distribution for Poisson Probability**

**Question:**
Which one of the following probability distributions is used for determining
whether or not a population has a Poisson probability distribution based
on observed data?

**Answer:**

The distribution used is:

**a.** Chi-square distribution.

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**16. Distribution Formed by All Possible Values**

**Question:**

The distribution that is formed by all possible values of a statistic is known

as:

**Answer:**

The distribution is called:

**a.** Sampling distribution.

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**17. Probability of Sample Proportion**

**Question:**

A population has a success proportion of p = 0.45. If a simple random

sample of 100 is drawn, what is the probability that the sample proportion
p̂ is greater
than 0.46 but less than 0.48?

**Answer:**

Calculate the z-scores:

z₁ = (0.46 - 0.45) / √(0.45 × 0.55 / 100) = 0.2

z₂ = (0.48 - 0.45) / 0.05 = 0.6

Find the probabilities:

P(0.46 < p̂ < 0.48) = P(0.2 < Z < 0.6) ≈ 0.1589 - 0.0793 = 0.0796

The closest option to this value is **0.1075812**.

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**18. Confidence Interval for Difference in Means (Reiteration)**

**Answer:**

The confidence interval is approximately **(3.826, 12.173)**.

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**19. Sample Size for Margin of Error**

**Question:**

What sample size is required for a 90% confidence interval with a margin
of error of 0.025 using a planning value of 0.40?
**Answer:**

Calculate sample size using:

n = (Z² × p × (1 - p)) / E²

For a 90% confidence level, Z = 1.645:

n = (1.645² × 0.40 × 0.60) / 0.025² ≈ 1039.04

**Rounded up, the required sample size is:** **1039**.

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**20. Width of Confidence Interval**

**Question:**

Which statement is false regarding the width of a confidence interval?

**Answer:**

**c.** The width of the interval decreases when the sample size is
decreased.

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