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32. A state meat inspector in Iowa has been given the assignment of estimating the mean
net weight of packages of ground chuck labeled “3 pounds.” Of course, he realizes that
the weights cannot be precisely 3 pounds. A sample of 36 packages reveals the mean
weight to be 3.01 pounds, with a standard deviation of 0.03 pounds.
a. What is the estimated population mean?
b. Determine a 95 percent confidence interval for the population mean.
33. As part of their business promotional package, the Milwaukee Chamber of Commerce
would like an estimate of the mean cost per month of a one-bedroom apartment. A ran-
dom sample of 40 apartments currently available for lease showed the mean cost per
month was $323. The standard deviation of the sample was $25.
a. Develop a 98 percent confidence interval for the population mean.
b. Would it be reasonable to conclude that the population mean is $350 per month?
34. A recent survey of 50 executives who were laid off during a recent recession revealed it
took a mean of 26 weeks for them to find another position. The standard deviation of
the sample was 6.2 weeks. Construct a 95 percent confidence interval for the popula-
tion mean. Is it reasonable that the population mean is 28 weeks? Justify your answer.
35. Marty Rowatti recently assumed the position of director of the YMCA of South Jersey.
He would like some current data on how long current members of the YMCA have been
members. To investigate, suppose he selects a random sample of 40 current members.
The mean length of membership of those included in the sample is 8.32 years and the
standard deviation is 3.07 years.
a. What is the mean of the population?
b. Develop a 90 percent confidence interval for the population mean.
c. The previous director, in the summary report she prepared as she retired, indicated
the mean length of membership was now “almost 10 years.” Does the sample infor-
mation substantiate this claim? Cite evidence.
36. The American Restaurant Association collected information on the number of meals eaten
outside the home per week by young married couples. A survey of 60 couples showed
the sample mean number of meals eaten outside the home was 2.76 meals per week,
with a standard deviation of 0.75 meals per week. Construct a 97 percent confidence
interval for the population mean.
37. The National Collegiate Athletic Association (NCAA) reported that the mean number of
hours spent per week on coaching and recruiting by college football assistant coaches
during the season was 70. A random sample of 50 assistant coaches showed the sam-
ple mean to be 68.6 hours, with a standard deviation of 8.2 hours.
a. Using the sample data, construct a 99 percent confidence interval for the popula-
tion mean.
b. Does the 99 percent confidence interval include the value suggested by the NCAA?
Interpret this result.
c. Suppose you decided to switch from a 99 to a 95 percent confidence interval. With-
out performing any calculations, will the interval increase, decrease, or stay the same?
Which of the values in the formula will change?
38. The Human Relations Department of Electronics Inc. would like to include a dental plan
as part of the benefits package. The question is: How much does a typical employee
and his or her family spend per year on dental expenses? A sample of 45 employees
reveals the mean amount spent last year was $1,820, with a standard deviation of $660.
a. Construct a 95 percent confidence interval for the population mean.
b. The information from part (a) was given to the president of Electronics Inc. He indi-
cated he could afford $1,700 of dental expenses per employee. Is it possible that the
population mean could be $1,700? Justify your answer.
39. A student conducted a study and reported that the 95 percent confidence interval for the
mean ranged from 46 to 54. He was sure that the mean of the sample was 50, that the
standard deviation of the sample was 16, and that the sample was at least 30, but could
not remember the exact number. Can you help him out?
40. A recent study by the American Automobile Dealers Association revealed the mean
amount of profit per car sold for a sample of 20 dealers was $290, with a standard devi-
ation of $125. Develop a 95 percent confidence interval for the population mean.
41. A study of 25 graduates of four-year colleges by the American Banker’s Association
revealed the mean amount owed by a student in student loans was $14,381. The stan-
dard deviation of the sample was $1,892. Construct a 90 percent confidence interval for
the population mean. Is it reasonable to conclude that the mean of the population is actu-
ally $15,000? Tell why or why not.
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Estimation and Confidence Intervals 325

42. An important factor in selling a residential property is the number of people who look
through the home. A sample of 15 homes recently sold in the Buffalo, New York, area
revealed the mean number looking through each home was 24 and the standard deviation
of the sample was 5 people. Develop a 98 percent confidence interval for the population
mean.
43. Warren County Telephone Company claims in its annual report that “the typical customer
spends $60 per month on local and long-distance service.” A sample of 12 subscribers
revealed the following amounts spent last month.

$64 $66 $64 $66 $59 $62 $67 $61 $64 $58 $54 $66

a. What is the point estimate of the population mean?

b. Develop a 90 percent confidence interval for the population mean.
c. Is the company’s claim that the “typical customer” spends $60 per month reason-
able? Justify your answer.
44. The manufacturer of a new line of ink-jet printers would like to include as part of its
advertising the number of pages a user can expect from a print cartridge. A sample of
10 cartridges revealed the following number of pages printed.

2,698 2,028 2,474 2,395 2,372 2,475 1,927 3,006 2,334 2,379

a. What is the point estimate of the population mean?

b. Develop a 95 percent confidence interval for the population mean.
45. Dr. Susan Benner is an industrial psychologist. She is currently studying stress among
executives of Internet companies. She has developed a questionnaire that she believes
measures stress. A score above 80 indicates stress at a dangerous level. A random sam-
ple of 15 executives revealed the following stress level scores.

94 78 83 90 78 99 97 90 97 90 93 94 100 75 84

a. Find the mean stress level for this sample. What is the point estimate of the popula-
tion mean?
b. Construct a 95 percent confidence level for the population mean.
c. Is it reasonable to conclude that Internet executives have a mean stress level in the
dangerous level, according to Dr. Benner’s test?
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 pro-
portion 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?
47. 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?
Explain.
48. During a national debate on changes to health care, a cable news service performs an opin-
ion poll of 500 small-business owners. It shows that 65 percent of small-business owners
do not approve of the changes. Develop a 95 percent confidence interval for the proportion
opposing health care changes. Comment on the result.
49. There are 20,000 eligible voters in York County, South Carolina. A random sample of
500 York County voters revealed 350 plan to vote to return Louella Miller to the state
senate. Construct a 99 percent confidence interval for the proportion of voters in the
county who plan to vote for Ms. Miller. From this sample information, can you confirm
she will be re-elected?
50. In a poll to estimate presidential popularity, each person in a random sample of 1,000
voters was asked to agree with one of the following statements:
1. The president is doing a good job.
2. The president is doing a poor job.
3. I have no opinion.
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326 Chapter 9

A total of 560 respondents selected the first statement, indicating they thought the pres-
ident was doing a good job.
a. Construct a 95 percent confidence interval for the proportion of respondents who feel
the president is doing a good job.
b. Based on your interval in part (a), is it reasonable to conclude that a majority (more
than half ) of the population believes the president is doing a good job?
51. Police Chief Edward Wilkin of River City reports 500 traffic citations were issued last
month. A sample of 35 of these citations showed the mean amount of the fine was $54,
with a standard deviation of $4.50. Construct a 95 percent confidence interval for the
mean amount of a citation in River City.
52. The First National Bank of Wilson has 650 checking account customers. A recent sam-
ple of 50 of these customers showed 26 have a Visa card with the bank. Construct the
99 percent confidence interval for the proportion of checking account customers who
have a Visa card with the bank.
53. It is estimated that 60 percent of U.S. households subscribe to cable TV. You would like
to verify this statement for your class in mass communications. If you want your esti-
mate to be within 5 percentage points, with a 95 percent level of confidence, how large
of a sample is required?
54. You need to estimate the mean number of travel days per year for outside salespeople.
The mean of a small pilot study was 150 days, with a standard deviation of 14 days. If
you must estimate the population mean within 2 days, how many outside salespeople
should you sample? Use the 90 percent confidence level.
55. You are to conduct a sample survey to determine the mean family income in a rural area
of central Florida. The question is, how many families should be sampled? In a pilot sam-
ple of 10 families, the standard deviation of the sample was $500. The sponsor of the
survey wants you to use the 95 percent confidence level. The estimate is to be within
$100. How many families should be interviewed?
56. Families USA, a monthly magazine that discusses issues related to health and health
costs, surveyed 20 of its subscribers. It found that the annual health insurance premiums
for a family with coverage through an employer averaged $10,979. The standard deviation
of the sample was $1,000.
a. Based on this sample information, develop a 90 percent confidence interval for the
population mean yearly premium.
b. How large a sample is needed to find the population mean within $250 at 99 percent
confidence?
57. Passenger comfort is influenced by the amount of pressurization in an airline cabin.
Higher pressurization permits a closer-to-normal environment and a more relaxed flight.
A study by an airline user group recorded the corresponding air pressure on 30 randomly
chosen flights. The study revealed a mean equivalent pressure of 8,000 feet with a stan-
dard deviation of 300 feet.
a. Develop a 99 percent confidence interval for the population mean equivalent pressure.
b. How large a sample is needed to find the population mean within 25 feet at 95 percent
confidence?
58. A random sample of 25 people employed by the Florida state authority established they
earned an average wage (including benefits) of $65.00 per hour. The sample standard
deviation was $6.25 per hour.
a. What is the population mean? What is the best estimate of the population mean?
b. Develop a 99 percent confidence interval for the population mean wage (including
benefits) for these employees.
c. How large a sample is needed to assess the population mean with an allowable error
of $1.00 at 95 percent confidence?
59. A film alliance used a random sample of 50 U.S. citizens to estimate that the typical
American spent 78 hours watching videos and DVDs last year. The standard deviation of
this sample was 9 hours.
a. Develop a 95 percent confidence interval for the population mean number of hours
spent watching videos and DVDs last year.
b. How large a sample should be used to be 90 percent confident the sample mean is
within 1.0 hour of the population mean?
60. Dylan Jones kept careful records of the fuel efficiency of his new car. After the first nine
times he filled up the tank, he found the mean was 23.4 miles per gallon (mpg) with a
sample standard deviation of 0.9 mpg.
a. Compute the 95 percent confidence interval for his mpg.
b. How many times should he fill his gas tank to obtain a margin of error below 0.1 mpg?
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Estimation and Confidence Intervals 327

61. A survey of 36 randomly selected “iPhone” owners showed that the purchase price has
a mean of $416 with a sample standard deviation of $180.
a. Compute the standard error of the sample mean.
b. Compute the 95 percent confidence interval for the mean.
c. How large a sample is needed to estimate the population mean within $10?
62. You plan to conduct a survey to find what proportion of the workforce has two or more
jobs. You decide on the 95 percent confidence level and state that the estimated pro-
portion must be within 2 percent of the population proportion. A pilot survey reveals that
5 of the 50 sampled hold two or more jobs. How many in the workforce should be inter-
viewed to meet your requirements?
63. The proportion of public accountants who have changed companies within the last three
years is to be estimated within 3 percent. The 95 percent level of confidence is to be
used. A study conducted several years ago revealed that the percent of public accoun-
tants changing companies within three years was 21.
a. To update this study, the files of how many public accountants should be studied?
b. How many public accountants should be contacted if no previous estimates of the
population proportion are available?
64. As part of an annual review of its accounts, a discount brokerage selects a random
sample of 36 customers. Their accounts are reviewed for total account valuation, which
showed a mean of $32,000, with a sample standard deviation of $8,200. What is a
90 percent confidence interval for the mean account valuation of the population of
customers?
65. The National Weight Control Registry tries to mine secrets of success from people who
have lost at least 30 pounds and kept it off for at least a year. It reports that out of 2,700
registrants, 459 were on low-carbohydrate diets (less than 90 grams a day).
a. Develop a 95 percent confidence interval for this fraction.
b. Is it possible that the population percentage is 18 percent?
c. How large a sample is needed to estimate the proportion within 0.5 percent?
66. Near the time of an election, a cable news service performs an opinion poll of 1,000
probable voters. It shows that the Republican contender has an advantage of 52 percent
to 48 percent.
a. Develop a 95 percent confidence interval for the proportion favoring the Republican
candidate.
b. Estimate the probability that the Democratic candidate is actually leading.
c. Repeat the above analysis based on a sample of 3,000 probable voters.
67. A sample of 352 subscribers to Wired magazine shows the mean time spent using the
Internet is 13.4 hours per week, with a sample standard deviation of 6.8 hours. Find
the 95 percent confidence interval for the mean time Wired subscribers spend on the
Internet.
68. The Tennessee Tourism Institute (TTI) plans to sample information center visitors enter-
ing the state to learn the fraction of visitors who plan to camp in the state. Current esti-
mates are that 35 percent of visitors are campers. How large a sample would you take
to estimate at a 95 percent confidence level the population proportion with an allowable
error of 2 percent?

Data Set Exercises

69. Refer to the Real Estate data, which report information on homes sold in the Goodyear,
Arizona, area during the last year.
a. Develop a 95 percent confidence interval for the mean selling price of the homes.
b. Develop a 95 percent confidence interval for the mean distance the home is from the
center of the city.
c. Develop a 95 percent confidence interval for the proportion of homes with an attached
garage.
d. To report your findings, write a business style memo to Gary Loftus, the president of
the Goodyear Chamber of Commerce.
70. Refer to the Baseball 2009 data, which report information on the 30 Major League Base-
ball teams for the 2009 season.
a. Develop a 95 percent confidence interval for the mean number of home runs per team.
b. Develop a 95 percent confidence interval for the mean number of errors committed
by each team.
c. Develop a 95 percent confidence interval for the mean number of stolen bases for
each team.
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328 Chapter 9

71. Refer to the Buena School District bus data.

a. Develop a 95 percent confidence interval for the mean bus maintenance.
b. Develop a 95 percent confidence interval for the mean bus miles.
c. Write a business memo to the state transportation official to report your results.

Software Commands
1. The Minitab commands for the 60 columns of 30 2. The Minitab commands for the 60 confidence inter-
random numbers used in the example/solution on vals on page 304 follow.
page 304 are: a. Select Stat, Basic Statistics, and then click on
a. Select Calc, Random Data, and then click on 1-Sample Z.
Normal. b. In the dialog box, indicate that the Variables are
b. From the dialog box, click in the Generate box C1-C60 and that Standard Duration is 5. Next,
and type 30 for the number of rows of data, click on Options in the lower right corner, and
Store in column(s) is C1-C60, Mean is 50, in the next dialog box, indicate that the Confi-
Standard deviation is 5.0, and finally click OK. dence level is 95, and then click OK. Click OK
in the main dialog box.

3. The Minitab commands for the descriptive statistics

on page 311 follow. Enter the data in the first col-
umn and label this column Amount. On the Toolbar,
select Stat, Basic Statistics, and Display Descrip-
tive Statistics. In the dialog box, select Amount as
the Variable and click OK.
4. The Minitab commands for the confidence interval
for the amount spent at the Inlet Square Mall on
page 311 are:
a. Enter the 20 amounts spent in column C1 and
name the variable Amount, or locate the data on
the student data disk. It is named Shopping and
is found in the folder for Chapter 9.
b. On the Toolbar, select Stat, Basic Statistics,
and click on 1-Sample t.
c. Select Samples in columns: and select Amount
and click OK.
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A Review of Chapters 8 and 9 329

5. The Excel commands for the confidence interval

for the amounts spent at the Inlet Square Mall on
page 312 are:
a. Select the Data tab on the top menu. Then, on
the far right, select Data Analysis, and then
Descriptive Statistics, and click OK.
b. For the Input Range, type A1:A21, click on
Labels in first row, type C1 as the Output
Range, click on Summary statistics and Confi-
dence Level for Mean, and then click on OK.

Chapter 9 Answers to Self-Review

9–1 a. Unknown. This is the value we wish to estimate. number of days of work missed is 0 per
b. $20,000, point estimate. employee.
$3,000 420
c. $20,000 ⫾ 2.58 ⫽ $20,000 ⫾ $1,224 9–3 a. p ⫽ ⫽ .30
140 1,400
d. The endpoints of the confidence interval are b. .30 ⫾ 2.58(.0122) ⫽ .30 ⫾ .03
$18,776 and $21,224. About 99 percent of the c. The interval is between .27 and .33. About 99
intervals similarly constructed would include the percent of the similarly constructed intervals
population mean. would include the population mean.
18 11.6
a. X ⫽ ⫽ 1.8 s⫽ ⫽ 1.1353
n⫽ a b ⫽ 207.26. The sample should
9–2 2.58(.279) 2
10 C 10 ⫺ 1 9–4
.05
b. The population mean is not known. The best be rounded to 208.
estimate is the sample mean, 1.8 days.
1.1353 .375(1 ⫺ .375) 250 ⫺ 40
c. 1.80 ⫾ 2.262 ⫽ 1.80 ⫾ 0.81 9–5 .375 ⫾ 1.96 ⫽
110 C 40 C 250 ⫺ 1
The endpoints are 0.99 and 2.61
d. t is used because the population standard .375 ⫾ 1.96(.0765)(.9184) ⫽ .375 ⫾ .138
deviation is unknown.
e. The value of 0 is not in the interval. It is
unreasonable to conclude that the mean

A Review of Chapters 8 and 9

We began Chapter 8 by describing the reasons sampling is necessary. We sample because it is
often impossible to study every item, or individual, in some populations. It would be too expensive
and time consuming, for example, to contact and record the annual incomes of all U.S. bank offi-
cers. Also, sampling often destroys the product. A drug manufacturer cannot test the properties of
each vitamin tablet manufactured, because there would be none left to sell. To estimate a popula-
tion parameter, therefore, we select a sample from the population. A sample is a part of the popu-
lation. Care must be taken to ensure that every member of our population has a chance of being
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330 Chapter 9

selected; otherwise, the conclusions might be biased. A number of probability-type sampling meth-
ods can be used, including simple random, systematic, stratified, and cluster sampling.
Regardless of the sampling method selected, a sample statistic is seldom equal to the corre-
sponding population parameter. For example, the mean of a sample is seldom exactly the same as
the mean of the population. The difference between this sample statistic and the population para-
meter is the sampling error.
In Chapter 8, we demonstrated that, if we select all possible samples of a specified size from
a population and calculate the mean of these samples, the result will be exactly equal to the pop-
ulation mean. We also showed that the dispersion in the distribution of the sample means is equal
to the population standard deviation divided by the square root of the sample size. This result is
called the standard error of the mean. There is less dispersion in the distribution of the sample
means than in the population. In addition, as we increase the number of observations in each sam-
ple, we decrease the variation in the sampling distribution.
The central limit theorem is the foundation of statistical inference. It states that, if the popula-
tion from which we select the samples follows the normal probability distribution, the distribution of
the sample means will also follow the normal distribution. If the population is not normal, it will
approach the normal probability distribution as we increase the size of the sample.
Our focus in Chapter 9 was point estimates and interval estimates. A point estimate is a sin-
gle value used to estimate a population parameter. An interval estimate is a range of values within
which we expect the population parameter to occur. For example, based on a sample, we estimate
that the mean annual income of all professional house painters in Atlanta, Georgia (the population),
is $45,300. That estimate is called a point estimate. If we state that the population mean is proba-
bly in the interval between $45,200 and $45,400, that estimate is called an interval estimate. The two
endpoints ($45,200 and $45,400) are the confidence limits for the population mean. We also described
procedures for establishing a confidence interval for a population mean when the population stan-
dard deviation is not known and for a population proportion. In this chapter, we also provided a
method to determine the necessary sample size based on the dispersion in the population, the level
of confidence desired, and the desired precision of the estimate or margin of error.

Glossary
Bias A possible consequence if certain members of the Probability sample A sample of items or individuals
population are denied the chance to be selected for the chosen so that each member of the population has a
sample. As a result, the sample may not be representative of chance of being included in the sample.
the population. Sampling distribution of the sample mean A probabil-
Central limit theorem The sampling distribution of the ity distribution consisting of all possible means of samples
sample mean will approach a normal distribution regard- of a given size selected from the population.
less of the shape of the population as sample size Sampling error The difference between a sample statistic
increases. and the corresponding population parameter. Example: The
Cluster sampling A method often used to lower the cost sample mean income is $22,100; the population mean is
of sampling if the population is dispersed over a wide geo- $22,000. The sampling error is $22,100 ⫺ $22,000 ⫽ $100.
graphic area. The area is divided into smaller units (coun- This error can be attributed to sampling—that is, chance.
ties, precincts, blocks, etc.) called primary units. Then a Simple random sampling A sampling scheme such that
few primary units are chosen, and a random sample is se- each member of the population has the same chance of
lected from each primary unit. being selected as part of the sample.
Finite-population correction factor (FPC) When sam- Stratified random sampling A population is first divided
pling without replacement from a finite population, a cor- into subgroups called strata. A sample is then chosen from
rection term is used to reduce the standard error of the each stratum. If, for example, the population of interest
mean according to the relative size of the sample to the consisted of all undergraduate students, the sample de-
size of the population. The correction factor is used when sign might call for sampling 62 freshmen, 51 sophomores,
the sample is more than 5 percent of a finite population. 40 juniors, and 39 seniors.
Interval estimate The interval within which a population Systematic random sampling Assuming the popula-
parameter probably lies, based on sample information. tion is arranged in some way, such as alphabetically, by
Example: According to sample data, the population mean height, or in a file drawer, a random starting point is se-
is in the interval between 1.9 and 2.0 pounds. lected, then every kth item becomes a member of the
Point estimate A single value computed from a sample sample. If a sample design called for interviewing every
and used to estimate a population parameter. Example: If ninth household on Main Street starting with 932 Main, the
the sample mean is 1,020, it is the best estimate of the sample would consist of households at 932 Main, 941
population mean. Main, 950 Main, and so on.
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A Review of Chapters 8 and 9 331

Problems
1. A recent study indicated that women took an average of 8.6 weeks of unpaid leave from
their jobs after the birth of a child. Assume that this distribution follows the normal prob-
ability distribution with a standard deviation of 2.0 weeks. We select a sample of 35
women who recently returned to work after the birth of a child. What is the likelihood
that the mean of this sample is at least 8.8 weeks?
2. The manager of Tee Shirt Emporium reports that the mean number of shirts sold per
week is 1,210, with a standard deviation of 325. The distribution of sales follows the nor-
mal distribution. What is the likelihood of selecting a sample of 25 weeks and finding the
sample mean to be 1,100 or less?
3. The owner of the Gulf Stream Café wished to estimate the mean number of lunch cus-
tomers per day. A sample of 40 days revealed a mean of 160 per day, with a standard
deviation of 20 per day. Develop a 98 percent confidence interval for the mean number
of customers per day.
4. The manager of the local Hamburger Express wishes to estimate the mean time cus-
tomers spend at the drive-through window. A sample of 20 customers experienced a
mean waiting time of 2.65 minutes, with a standard deviation of 0.45 minutes. Develop
a 90 percent confidence interval for the mean waiting time.
5. The office manager for a large company is studying the usage of its copy machines. A
random sample of six copy machines revealed the following number of copies (reported
in 000s) made yesterday.

826 931 1,126 918 1,011 1,101

Develop a 95 percent confidence interval for the mean number of copies per machine.
6. John Kleman is the host of KXYZ Radio 55 AM drive-time news in Denver. During his
morning program, John asks listeners to call in and discuss current local and national
news. This morning, John was concerned with the number of hours children under
12 years of age watch TV per day. The last 5 callers reported that their children watched
the following number of hours of TV last night.

3.0 3.5 4.0 4.5 3.0

Would it be reasonable to develop a confidence interval from these data to show the mean
number of hours of TV watched? If yes, construct an appropriate confidence interval and
interpret the result. If no, why would a confidence interval not be appropriate?
7. Historically, Widgets Manufacturing Inc. produces 250 widgets per day. Recently the new
owner bought a new machine to produce more widgets per day. A sample of 16 days’
production revealed a mean of 240 units with a standard deviation of 35. Construct a
confidence interval for the mean number of widgets produced per day. Does it seem rea-
sonable to conclude that the mean daily widget production has increased? Justify your
conclusion.
8. A manufacturer of cell phone batteries wants to estimate the useful life of its battery
(in thousands of hours). The estimate is to be within 0.10 (100) hours. Assume a 95 per-
cent level of confidence and that the standard deviation of the useful life of the battery is
0.90 (900 hours). Determine the required sample size.
9. The manager of a home improvement store wishes to estimate the mean amount of
money spent in the store. The estimate is to be within $4.00 with a 95 percent level of
confidence. The manager does not know the standard deviation of the amounts spent.
However, he does estimate that the range is from $5.00 up to $155.00. How large of a
sample is needed?
10. In a sample of 200 residents of Georgetown County, 120 reported they believed the
county real estate taxes were too high. Develop a 95 percent confidence interval for the
proportion of residents who believe the tax rate is too high. Would it be reasonable to
conclude that the majority of the taxpayers feel that the taxes are too high?
11. In recent times, the percent of buyers purchasing a new vehicle via the Internet has
been large enough that local automobile dealers are concerned about its impact on their
business. The information needed is an estimate of the proportion of purchases via the
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332 Chapter 9

Internet. How large of a sample of purchasers is necessary for the estimate to be within
2 percentage points with a 98 percent level of confidence? Current thinking is that about
8 percent of the vehicles are purchased via the Internet.
12. Historically, the proportion of adults over the age of 24 who smoke has been .30. In
recent years, much information has been published and aired on radio and TV that
smoking is not good for one’s health. A sample of 500 adults revealed only 25 per-
cent of those sampled smoked. Develop a 98 percent confidence interval for the pro-
portion of adults who currently smoke. Would you agree that the proportion is less
than 30 percent?
13. The auditor of the State of Ohio needs an estimate of the proportion of residents who
regularly play the state lottery. Historically, about 40 percent regularly play, but the audi-
tor would like some current information. How large a sample is necessary for the esti-
mate to be within 3 percentage points, with a 98 percent level of confidence?

Case
Century National Bank on the use of these cards. Develop a 95 percent confidence
Refer to the description of Century National Bank at the end interval for the proportion of customers using these cards.
of the Review of Chapters 1–4 on page 141. When Mr. Selig On the basis of the confidence interval, is it reasonable to
took over as president of Century several years ago, the use conclude that more than half of the customers use a debit
of debit cards was just beginning. He would like an update card? Write a brief report interpreting the results.

Practice Test
Part 1—Objective
1. If each item in the population has the same chance of being selected, this is called a .
1.
2. The difference between the population mean and the sample mean is called the . 2.
3. The is the standard deviation of the distribution of sample means. 3.
4. If the sample size is increased, the variance of the sample means will . (become smaller, become larger, not
change) 4.
5. A single value used to estimate a population parameter is called a . 5.
6. A range of values within which the population parameter is expected to occur is called a .
6.
7. Which of the following do not affect the width of a confidence interval? (sample size, variation in the population, level
of confidence, size of population) 7.
8. The fraction of a population that has a particular characteristic is called a . 8.
9. Which of the following is not a characteristic of the t distribution? (positively skewed, continuous, mean of zero,
based on degrees of freedom) 9.
10. To determine the required sample size of a proportion when no estimate of the population proportion is available,
what value is used? 10.

Part 2—Problems
1. Americans spend an average (mean) of 12.2 minutes (per day) in the shower. The distribution of times follows
the normal distribution with a population standard deviation of 2.3 minutes. What is the likelihood that the mean time
per day for a sample of 12 Americans was 11 minutes or less?
2. A recent study of 26 Conway, SC, residents revealed they had lived at their current address an average of 9.3 years.
The standard deviation of the sample was 2 years.
a. What is the population mean?
b. What is the best estimate of the population mean?
c. What is the standard error of estimate?
d. Develop a 90 percent confidence interval for the population mean.
3. A recent federal report indicated that 27 percent of children ages 2 to 5 ate a vegetable at least 5 times a week. How
large a sample is needed to estimate the true population proportion within 2 percent with a 98 percent level of confi-
dence? Be sure to use the information contained in the federal report.
4. The Philadelphia Area Transit Authority wishes to estimate the proportion of central city workers that use public trans-
portation to get to work. A sample of 100 workers revealed that 64 used public transportation. Develop a 95 percent
confidence interval for the population proportion.