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STATISTICS FOR BUSINESS

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Student: ___________________________________________________________________________
1. i. The 95 percent confidence interval states that 95 percent of the sample means
of a specified sample size selected from a population will lie within plus and minus
1.96 standard deviations of the hypothesized population mean.
ii. A distribution of sample means is normally distributed with a mean equal to the
population mean and a standard deviation equal to the standard error of the mean.
iii. A sample mean is the best point estimate of a population mean.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).

C. (i) and (iii) are correct statements but not (ii).

D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

2. Which of the following would be used as a point estimate for the population mean
()?
A.
B. x/n
C.
D. s
E. p

3. Mileage tests were conducted on a randomly selected sample of 100 newly

developed automobile tires. The average tread life was found to be 80,000
kilometres with a standard deviation of 5,600 kilometres. What is the best estimate
of the average tread life in miles for the entire population of these tires?
A. 80,000
B. 5,600
C. (80,000/100)
D. (5,600/100)

4. A sample mean is the best point estimate of the

A. population standard deviation.
B. population median.
C. population mean.
D. the sample standard deviation.
E. the population variance.

5. A sample standard deviation is the best point estimate of the

A. population range.
B. population skewness.

C. population mode.
D. population standard deviation.
E. population variance.

6. Recently, a university surveyed recent graduates of the English Department for

their starting salaries. Four hundred graduates returned the survey. The average
salary was $55,000 with a standard deviation of $2,500.
What is the best point estimate of the population mean?
A. $55,000
B. $52,500
C. 400
D. $62.5

7. Recently, a university surveyed recent graduates of the English Department for

their starting salaries. One hundred graduates returned the survey. The average
salary was $35,000 with a standard deviation of $2,000.
What is the best point estimate of the population mean?
A. $25,000
B. $2,000
C. $500
D. $400
E. $35,000

8. A confidence interval for a population mean

A. estimates the population range.
B. estimates a likely interval for a population mean.
C. estimates a likelihood or probability.
D. estimates the population standard deviation.

9. A 95% confidence interval infers that the population mean is

A. between 0 and 100%.

B. within 1.96 standard deviations of the sample mean.

C. within 1.96 standard errors of the sample mean.
D. within 1.645 standard deviations of the sample mean.
E. too large.

10. When a confidence interval for a population mean is constructed from sample
data,
A. we can conclude that the population mean is in the interval.
B. we can conclude that the population mean is not in the interval.
C. we can conclude, with a stated level of confidence, that the population mean is in
the interval.
D. we cannot make any inferences.

11. Dottie Kleman is the "Cookie Lady." She bakes and sells cookies at 50 different
locations. Ms. Kleman is concerned about absenteeism among her workers. The
information below reports the number of days absent for a sample of 10 workers
during the last two-week pay period.

The sample mean is calculated to be 1.8 and sample standard deviation is 1.1353.
Develop a 95% confidence interval for the population mean. Assume that the
population distribution is normal. Is it reasonable to conclude that the typical worker
does not miss any days during a pay period?
A. [0.99, 2.61] It is unreasonable to conclude that the mean number of days of work
missed is 0 per employee.
B. [0.99, 2.61] It is reasonable to conclude that the mean number of days of work
missed is 0 per employee.
C. [-0.99, -2.61] It is unreasonable to conclude that the mean number of days of
work missed is 0 per employee.
D. [-0.99, -2.61] It is reasonable to conclude that the mean number of days of work
missed is 0 per employee.

12. Dottie Kleman is the "Cookie Lady." She bakes and sells cookies at 50 different
locations. Ms. Kleman is concerned about absenteeism among her workers. The
information below reports the number of days absent for a sample of 10 workers
during the last two-week pay period.

The sample mean is calculated to be 1.8 and sample standard deviation is 1.1353.
Develop a 95% confidence interval for the population mean. Assume that the
population distribution is normal. Is it reasonable to conclude that the typical worker
misses 1 day during a pay period?
A. [0.99, 2.61] It is unreasonable to conclude that the mean number of days of work
missed is Error! Hyperlink reference not valid. per employee.
B. [0.99, 2.61] It is reasonable to conclude that the mean number of days of work
missed is 1 per employee.
C. [-0.99, -2.61] It is unreasonable to conclude that the mean number of days of
work missed is 1 per employee.
D. [-0.99, -2.61] It is reasonable to conclude that the mean number of days of work
missed is 1 per employee.

13. Recently, a university surveyed recent graduates of the English Department for
their starting salaries. Four hundred graduates returned the survey. The average
salary was $25,000. The population standard deviation is known to be $2,500.
Interpret the results of the 95% confidence interval.
A. The population mean is in the interval.
B. The population mean is not in the interval.
C. The likelihood that any confidence interval based on a sample of 400 graduates
will contain the population mean is 0.95.
D. There is a 95% chance that the computed interval does not contain the
population mean.

14. The z-value associated with a 90% level of confidence is:

A. 1.96
B. 1.645
C. 2.33

D. 2.575
E. 1.28

15. The z-value associated with a 94% level of confidence is:

A. 1.96
B. 1.645
C. 2.33
D. 2.575
E. 1.88

16. The z-value associated with a 96% level of confidence is:

A. 1.96
B. 1.645
C. 2.33
D. 2.05
E. 1.28

17. The z-value associated with an 80% level of confidence is:

A. 1.96
B. 1.645
C. 2.33
D. 2.575
E. 1.28

18. A random sample of 85 group leaders, supervisors, and similar personnel

revealed that on the average a person spent 6.5 years on the job before being
promoted. The standard deviation of the population was 1.7 years. Find the 95%
confidence interval for the population mean.
A. 6.99 and 7.99
B. 4.15 and 7.15
C. 6.14 and 6.86

D. 6.49 and 7.49

19. A sample of 25 is selected from a known population of 100 elements. What is

the finite population correction factor?
A. 8.66
B. 75
C. 0.87
D. Cannot be determined from the information given.

20. A sample of 50 is selected from a known population of 250 elements. The

population standard deviation is 15. What is the standard error of the sample means
using the finite population correction factor?
A. 2.89
B. 1.90
C. 2.12
D. 13.44
E. Cannot be determined from information given.

21. Recently, a university surveyed recent graduates of the English Department for
their starting salaries. Four hundred graduates returned the survey. The average
salary was $55,000. The population standard deviation is known to be $2,500.
What is the 95% confidence interval for the mean salary of all graduates from the
English Department?
A. 52,500, $57,500
B. 54,755, $55,245
C. 54,988, $55,012
D. 54,600, $55,600

22. Recently, a university surveyed recent graduates of the English Department for
their starting salaries. Four hundred graduates returned the survey. The average
salary was $55,000. The population standard deviation is known to be $2,500.
What is the 90% confidence interval for the mean salary of all graduates from the
English Department?

A. 5,497, $55,039
B. 54,794, $55,206
C. 54,671, $55,329
D. 54,961, $5,539
E. 54,800, $55,200

23. A survey of 144 retail stores revealed that the average price of a DVD was $375
with a standard error of $20. What is the 95% confidence interval to estimate the
true cost of the DVD?
A. $323.40 to $426.60
B. $328.40 to $421.60
C. $335.00 to $415.00
D. $335.80 to $414.20

24. A survey of 144 retail stores revealed that the average price of a DVD was $375
with a standard error of $20. What is the 99% confidence interval to estimate the
true cost of the DVD?
A. $323.40 to $426.60
B. $328.40 to $421.60
C. $335.00 to $415.00
D. $335.80 to $414.20

25. A survey of 144 retail stores revealed that the average price of a DVD was $375
with a standard error of $20. If 90% and 95% confidence intervals were developed
to estimate the true cost of the DVD, what similarities would they have?
A. Point estimates
B. Z-values would be the same
C. Standard errors
D. Both point estimates and standard errors would be the same
E. Both standard errors Z-values would be the same

26. A survey of 144 retail stores revealed that the average price of a DVD was $375
with a standard error of $20. If 95% and 98% confidence intervals were developed
to estimate the true cost of the DVD, what differences would they have?
A. Standard errors
B. Interval widths
C. Z-values
D. Both standard errors and interval widths
E. Both interval widths and Z-values

27. A survey of 25 grocery stores revealed that the average price of a 4-litre bag of
milk was $2.98 with a standard error of $0.10. What is the 95% confidence interval
to estimate the true cost of a 4-litre bag of milk?
A. $2.81 to $3.15
B. $2.94 to $3.02
C. $2.78 to $3.18
D. $2.95 to $3.01
E. $2.73 to $3.23

28. A survey of 25 grocery stores revealed that the average price of a 4-litre bag of
milk was $2.98 with a standard error of $0.10. What is the 98% confidence interval
to estimate the true cost of a 4-litre bag of milk?
A. $2.75 to $3.21
B. $2.85 to $3.11
C. $2.94 to $3.02
D. $2.95 to $3.01
E. $2.77 to $3.19

29. A survey of 25 grocery stores revealed that the average price of a 4-litre bag of
milk was $2.98 with a standard error of $0.10. If 90% and 95% confidence intervals
were developed to estimate the true cost of a 4-litre bag of milk, what similarities
would they have?
A. Point estimates
B. t-statistics

C. Standard errors
D. Both the same point estimate and the same standard error
E. Both the same t-statistic and point estimate

30. Dr. Patton is a professor of English. Recently she counted the number of
misspelled works in a group of student essays. She noted the distribution of
misspelled words per essay followed the normal distribution with a standard
deviation of 2.44 words per essay. For her Tuesday class of 50 students, the mean
number of misspelled words per essay was 6.05. Construct a 95% confidence
interval for the mean number of misspelled words in the population of student
essays.
A. 5.374 to 6.726
B. 5.161 to 6.939
C. 5.102 to 6.998
D. 5.482 to 6.618
E. 5.445 to 6.3655

31. Dr. Patton is a professor of English. Recently she counted the number of
misspelled works in a group of student essays. She noted the distribution of
misspelled words per essay followed the normal distribution with a standard
deviation of 2.44 words per essay. For her Tuesday class of 50 students, the mean
number of misspelled words per essay was 6.05. Construct a 99% confidence
interval for the mean number of misspelled words in the population of student
essays.
A. 5.374 to 6.726
B. 5.160 to 6.940
C. 5.102 to 6.998
D. 5.482 to 6.618
E. 5.445 to 6.3655

32. Dr. Patton is a professor of English. Recently she counted the number of
misspelled works in a group of student essays. She noted the distribution of
misspelled words per essay followed the normal distribution with a standard
deviation of 2.44 words per essay. For her Tuesday class of 50 students, the mean
number of misspelled words per essay was 6.05. Construct a 90% confidence

interval for the mean number of misspelled words in the population of student
essays.
A. 5.374 to 6.726
B. 5.161 to 6.939
C. 5.102 to 6.998
D. 5.482 to 6.618
E. 5.445 to 6.3655

33. Dr. Patton is a professor of English. Recently she counted the number of
misspelled works in a group of student essays. She noted the distribution of
misspelled words per essay followed the normal distribution with a standard
deviation of 2.44 words per essay. For her Tuesday class of 44 students, the mean
number of misspelled words per essay was 6.05. Construct a 90% confidence
interval for the mean number of misspelled words in the population of student
essays.
A. 5.374 to 6.726
B. 5.161 to 6.939
C. 5.102 to 6.998
D. 5.482 to 6.618
E. 5.445 to 6.6551

34. i. The t distribution is based on the assumption that the population of interest is
normal or nearly normal.
ii. The t distribution is a continuous distribution.
iii. There is not one t distribution, but rather a "family" of t distributions.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

35. i. The t distribution is based on the assumption that the population of interest is
normal or nearly normal.

ii. The t distribution is a discrete distribution.

iii. There is not one t distribution, but rather a "family" of t distributions.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

36. i. The t distribution is positively skewed.

ii. All t distributions have the same mean of zero and a standard deviation of 1.
iii. The t distribution is more spread out and flatter at the center than is the
standard normal distribution. However, as the sample size increases, the t
distribution curve approaches the standard normal distribution.
A. (i), (ii), and (iii) are all correct statements.
B. (iii) is a correct statement but not (i) or (ii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

37. i. The Student t distribution has a greater spread than does the z distribution. As
a result, the critical values of t for a given level of significance are larger in
magnitude than the corresponding z critical values.
ii. The test statistic t has n-1 degrees of freedom.
iii. William S. Gosset, a brewmaster, developed the t test for the Guinness Brewery
in Ireland, who published it in 1908 using the pen name "Student."
A. (i), (ii), and (iii) are all correct statements.
B. (iii) is a correct statement but not (i) or (ii).
C. (i) and,(iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

38. i. The test statistic t has n-1 degrees of freedom.

ii. All t distributions have the same mean of zero and a standard deviation of 1.
iii. The t distribution is more spread out and flatter at the center than is the
standard normal distribution. However, as the sample size increases, the t
distribution curve approaches the standard normal distribution.
A. (i), (ii), and (iii) are all correct statements.
B. (iii) is a correct statement but not (i) or (ii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

39. i. The test statistic for a problem involving an unknown population standard
deviation is the Student's t distribution.
ii. The t distribution approaches the Z distribution as the sample size increases.
iii. As the sample size increases, the computed value of t decreases.
A. (i), (ii), and (iii) are all correct statements.
B. (iii) is a correct statement but not (i) or (ii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

40. Which statement(s) is/are correct about the t distribution?

A. Mean = 0
B. Symmetric
C. Based on degrees of freedom
D. Mean = 0, symmetric and based on degrees of freedom
E. Mean = 0 and symmetric

41. What kind of distribution is the t distribution?

A. Continuous
B. Discrete

C. Subjective
D. Standard

42. How does the t distribution differ from the standard z distribution?
A. Continuous distribution
B. Bell-shaped
C. Family of distributions
D. Symmetrical

43. A sample of 20 is selected from the population. What is the number of degrees
of freedom used to determine the appropriate critical t-value?
A. 20
B. 19
C. 21
D. 25

44. The t distribution is similar to the z distribution in all BUT ONE of the following
characteristics. Which one is it?
A. Continuous
B. Symmetrical
C. Bell-shaped
D. t distribution's mean = 0 and standard deviation = 1

45. Student's t is used when

A. the sample is more than 30 observations.
B. the sample size is 5% of the population.
C. the population standard deviation is unknown.
D. any time.

46. The distribution of Student's t has

A. a mean of zero and a standard deviation of one.

B. a mean of one and a standard deviation of one.
C. a mean of zero and a standard deviation that depends on the sample size.
D. a mean that depends on the sample size and a standard deviation of one.

47. The distribution of Student's t is

A. symmetrical.
B. negatively skewed.
C. positively skewed.
D. a discrete probability distribution.

48. When using Student's t to compute an interval estimate,

A. we assume that the samples are collected from normally distributed populations.
B. we estimate the population standard deviation based on the sample standard
deviation.
C. use the z distribution.
D. we assume that samples are collected from normally distributed populations and
the estimate of the population standard deviation based on the sample standard
deviation.
E. we assume that the samples are collected from normally distributed populations
and use the z distribution.

49. The t distribution approaches __________ as the sample size increases.

As the sample size increases, the computed value of t ______________.
A. Z distribution; decreases
B. Z distribution; increases
C. Z distribution; stays the same
D. 0; decreases
E. 0; increases

50. In order to construct a 90% confidence interval for the population mean when
the population standard deviation is unknown and the sample size is 18, you should
use the t-value indicated as:
A. t0.10,18
B. t0.10,17
C. t0.05,18
D. t0.05,17
E. t0.90,17

51. In order to construct a 95% confidence interval for the population mean when
the population standard deviation is unknown and the sample size is 15, you should
use the t-value indicated as:
A. t0.10,15
B. t0.10,14
C. t0.05,15
D. t0.05,14
E. t0.025,14

52. A student wanted to quickly construct a 95% confidence interval for the average
age of students in her statistics class. She randomly selected 9 students. Their
average age was 19.1 years with a standard deviation of 1.5 years. What is the best
point estimate for the population mean?
A. 2.1 years
B. 1.5 years
C. 19.1 years
D. 9 years
E. 17.6 years

53. A student wanted to quickly construct a 95% confidence interval for the average
age of students in her statistics class. She randomly selected 9 students. Their
average age was 19.1 years with a standard deviation of 1.5 years. What is the 95%
confidence interval for the population mean?
A. [0.97, 3.27]

B. [15.64, 22.56]
C. [17.97, 20.23]
D. [17.95, 20.25]
E. [17.42, 20.78]

54. A student wanted to quickly construct a 99% confidence interval for the average
age of students in her statistics class. She randomly selected 9 students. Their
average age was 19.1 years with a standard deviation of 1.5 years. What is the 99%
confidence interval for the population mean?
A. [17.42, 20.78]
B. [17.48, 20.72]
C. [14.23, 23.98]
D. [0.44, 3.80]
E. [17.95, 20.25]

55. A sample of 100 students is selected from a known population of 1,000 students
to construct a 95% confidence interval for the average SAT score. What correction
factor should be used to compute the standard error?
A. 0.949
B. 0.901
C. 1.96
D. 9.01
E. Cannot be determined

56. A manager of a local store wants to estimate the mean amount spent per
shopping visit by customers. Summary statistics from a sample taken reveal the
following:

Determine a 95% confidence interval for the mean amount spent.

A. [45.21, 53.56]

B. [40.36, 58.35]
C. [30.54, 68.14]
D. [45.13, 53.56]
E. [29.34, 69.34]

57. A manager of a local store wants to estimate the mean amount spent per
shopping visit by customers. Summary statistics from a sample taken reveal the
following:

If 90% and 95% confidence intervals were developed to estimate the true shopping
expenditure, what similarities would exist?
A. Point estimates
B. t-values would be the same
C. Standard errors
D. Both point estimates and standard errors
E. Both point estimates and t-values

58. A manager of a local store wants to estimate the mean amount spent per
shopping visit by customers. Summary statistics from a sample taken reveal the
following:

If 95% and 98% confidence intervals were developed to estimate the true shopping
expenditure, what differences would exist?
A. Standard errors
B. Interval widths
C. t-values
D. Both interval widths and t-values
E. Both standard errors and interval widths

59. A manager of a local store wants to estimate the mean amount spent per
shopping visit by customers. Summary statistics from a sample taken reveal the
following:

The store manager wonders whether the population mean could have been $50 or
$60.
A. Since $60 is within the 95% confidence interval, the population mean is likely to
be $60.
B. Since $60 is not within the 95% confidence interval, the population mean is not
likely to be $60.
C. Since $50 is within the 95% confidence interval, the population mean is likely to
be $50.
D. Since $50 is not within the 95% confidence interval, the population mean is not
likely to be $50.
E. Since $60 is not within the 95% confidence interval, the population mean is not
likely to be $60; however, it is likely to be $50.

60. A statistics professor wishes to estimate the average mark on a term test for a
course that has multiple sections and many students. A survey of some of the
students registered for the course reveals the following results:

Determine a 95% confidence interval for the term test results.

A. [48.0, 93.6]
B. [66.8, 74.8]
C. [62.9, 78.71]
D. [64.2, 77.3]
E. [62.6, 79.0]

61. A statistics professor wishes to estimate the average mark on a term test for a
course that has multiple sections and many students. A survey of some of the
students registered for the course reveals the following results:

Determine a 98% confidence interval for the term test results.

A. [48.0, 93.6]
B. [66.8, 74.8]
C. [62.9, 78.71]
D. [64.2, 77.3]
E. [60.9, 80.7]

62. A statistics professor wishes to estimate the average mark on a term test for a
course that has multiple sections and many students. A survey of some of the
students registered for the course reveals the following results:

If 90% and 95% confidence intervals were developed to estimate the true term test
mean, what similarities would exist?
A. Point estimates
B. t-values
C. Standard errors
D. Both point estimates and standard errors
E. No similarities with point estimates, t-values or standard errors

63. A statistics professor wishes to estimate the average mark on a term test for a
course that has multiple sections and many students. A survey of some of the
students registered for the course reveals the following results:

If 95% and 98% confidence intervals were developed to estimate the true term test
mean, what differences would exist?
A. Standard errors
B. Interval widths
C. t-values
D. Both interval widths and t-values

64. A statistics professor wishes to estimate the average mark on a term test for a
course that has multiple sections and many students. A survey of some of the
students registered for the course reveals the following results:

The student from the course wonders whether the population mean could have
been 75 or 80.
A. Since 80 is within the 95% confidence interval, the population mean is likely to be
80.
B. Since 80 is not within the 95% confidence interval, the population mean is not
likely to be 80.
C. Since 75 is within the 95% confidence interval, the population mean is likely to be
75.
D. Since neither 75 nor 80 is within the 95% confidence interval, the population
mean is not likely to be 75 or 80.
E. Since 80 is not within the 95% confidence interval, the population mean is not
likely to be 80, but it is likely to be 75.

65. A statistics professor wishes to estimate the average mark on a term test for a
course that has multiple sections and many students. A survey of some of the
students registered for the course reveals the following results:

The student from the course wonders whether the population mean could have
been 60 or 80.
A. Since 80 is within the 95% confidence interval, the population mean is likely to be
80.
B. Since 80 is not within the 95% confidence interval, the population mean is not
likely to be 80.
C. Since 60 is within the 95% confidence interval, the population mean is likely to be
60.
D. Since neither 60 nor 80 is within the 95% confidence interval, the population
mean is not likely to be 60 or 80.

66. The following summarizes the amount of snowfall in Ontario over the past
number of years.

Determine a 95% confidence interval for the average annual snowfall.

A. [1,698, 2,046]
B. [1,665, 2,079]
C. [1,213, 2,531]
D. [1,783, 1,961]
E. [1694, 2050]

67. The following summarizes the amount of snowfall in Ontario over the past
number of years.

Determine a 98% confidence interval for the average annual snowfall.

A. [1698, 2046]
B. [1665, 2079]
C. [1213, 2531]

D. [1783, 1961]
E. [1659, 2085]

68. The following summarizes the amount of snowfall in Ontario over the past
number of years.

If 90% and 95% confidence intervals were developed to estimate the true average
annual snowfall, what similarities would they have?
A. Point estimates
B. Z-values
C. Standard errors
D. Both point estimates and standard errors
E. Both point estimates and Z-Values

69. The following summarizes the amount of snowfall in Ontario over the past
number of years.

If 95% and 98% confidence intervals were developed to estimate the true average
annual snowfall, what differences would exist?
A. Standard errors
B. Interval widths
C. Z-values
D. Both interval widths and Z-values

70. The following summarizes the amount of snowfall in Ontario over the past
number of years.

You wonder whether the population mean could have been 2000 or 1900.
A. Since 1900 is within the 95% confidence interval, the population mean is likely to
be 1900.
B. Since 1900 is within the 95% confidence interval, the population mean is not
likely to be 1900.
C. Since 2000 is within the 95% confidence interval, the population mean is likely to
be 2000.
D. Since neither 1900 nor 200 is within the 95% confidence interval, the population
mean is not likely to be 1900 or 2000.
E. Since 1900 and 2000 are both within the 95% confidence interval, the population
mean is likely to be either value.

71. The following summarizes the amount of snowfall in Ontario over the past
number of years.

You wonder whether the population mean could have been 1,600 or 2,100.
A. Since 1600 is within the 95% confidence interval, the population mean is likely to
be 1,600.
B. Since 1600 is not within the 95% confidence interval, the population mean is not
likely to be 1,600.
C. Since 2100 is within the 95% confidence interval, the population mean is likely to
be 2,100.
D. Since neither 1,600 nor 2,100 is within the 95% confidence interval, the
population mean is not likely to be 1,600 or 2000.
E. Since 1900 and 2000 are both within the 95% confidence interval, the population
mean is likely to be either value.

72. The following summarizes the average price of Air Canada stock at the end of
20 randomly selected weeks in 2000.

Determine a 90% confidence interval for the average Air Canada stock price in
2000.
A. [16.44, 18.36]
B. [14.90, 19.87]
C. [17.48, 19.40]
D. [16.43, 18.35]
E. Unable to determine from the information given

73. The following summarizes the average price of Air Canada stock at the end of
20 randomly selected weeks in 2000.

Determine a 95% confidence interval for the average Air Canada stock price in
2000.
A. [16.83, 17.42]
B. [14.90, 19.87]
C. [17.48, 19.40]
D. [16.24, 18.56]
E. [16.23, 18.55]

74. Dottie Kleman is the "Cookie Lady." She bakes and sells cookies at 50 different
locations. Ms. Kleman is concerned about absenteeism among her workers. The
information below reports the number of days absent for a sample of 10 workers
during the last two-week pay period.

The sample mean is calculated to be 1.8 and sample standard deviation is 1.1353.
Develop a 95% confidence interval for the population mean. Assume that the

population distribution is normal. Is it reasonable to conclude that the typical worker

misses 2 days during a pay period?
A. [0.99, 2.61] It is unreasonable to conclude that the mean number of days of work
missed is 2 per employee.
B. [0.99, 2.61] It is reasonable to conclude that the mean number of days of work
missed is 2 per employee.
C. [1.99, 2.61] It is unreasonable to conclude that the mean number of days of work
missed is 2 per employee.
D. [0.99, 1.61] It is reasonable to conclude that the mean number of days of work
missed is 2 per employee.

75. The following summarizes the average price of Air Canada stock at the end of
20 randomly selected weeks in 2000.

Determine a 98% confidence interval for the average TSE 300 stock index in 2000.
A. [9467.57, 10 084.68]
B. [9401.80, 10 150.40]
C. [9628.70, 9923.55]
D. [9468.61, 10 083.65]

76. A pharmaceutical company wanted to estimate the population mean of monthly

sales for their 250 sales people. Forty sales people were randomly selected. Their
mean monthly sales were $10,000 with a standard deviation of $1,000. Construct a
95% confidence interval for the population mean.
A. [9,690.1, 10,309.9]
B. [9706.3, 10293.7]
C. [8,040, 11,960]
D. [8,000, 12,000]
E. [9,000, 11,000]

77. The mean weight of trucks traveling on a particular section of Highway 401 is
not known. A provincial highway inspector needs an estimate of the mean. He
selects a random sample of 49 trucks passing the weighing station and finds the
mean is 15.8 tons, with a standard deviation of the sample of 3.8 tons. What is the
95 percent interval for the population mean?
A. 14.7 and 16.9
B. 13.2 and 17.6
C. 10.0 and 20.0
D. 16.1 and 18.1

78. A random sample of 85 group leaders, supervisors, and similar personnel

revealed that on the average a person spent 6.5 years on the job before being
promoted. The standard deviation of the sample was 1.7 years. What is the 95%
confidence interval for the true population mean?
A. 6.46 and 6.54
B. 3.17 and 9.83
C. 6.13 and 6.87
D. 6.20 and 6.70
E. 6.32 and 6.88

79. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 16 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. For a
90% confidence interval, what is the critical value needed?
A. t = 1.753
B. t = 2.131
C. t = 2.947
D. z = 1.645
E. z = 1.96

80. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 16 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. For a
95% confidence interval, what is the critical value needed?

A. t = 1.753
B. t = 2.131
C. t = 2.947
D. z = 1.645
E. z = 1.96

81. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 16 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. For a
99% confidence interval, what is the critical value needed?
A. t = 1.753
B. t = 2.131
C. t = 2.947
D. z = 1.645
E. z = 1.96

82. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 25 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. For a
90% confidence interval, what is the critical value needed?
A. t = 1.708
B. t = 1.711
C. t = 2.797
D. z = 1.645
E. z = 1.96

83. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 25 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. For a
99% confidence interval, what is the critical value needed?
A. t = 1.708
B. t = 1.711
C. t = 2.797

D. z = 1.645
E. z = 1.96

84. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 25 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. For a
95% confidence interval, what is the critical value needed?
A. t = 2.787
B. t = 2.064
C. t = 2.797
D. z = 1.645
E. z = 1.96

85. The Dean of the Business School wants to estimate the mean number of hours
worked per week by students. A sample of only 12 students showed a mean of 24
hours with a standard deviation of 4 hours. Find the 95 percent confidence interval
for the population mean.
A. 21.46 and 26.54
B. 21.17 and 26.45
C. 22.88 and 25.12
D. 21.07 and 26.07
E. 21.93 and 26.07

86. The manager of the college cafeteria wants to estimate the mean amount spent
per customer per purchase. A sample of 10 customers revealed the following
amounts spent:

Find the 99 percent confidence limits for the mean amount spent.
Sample mean = $4.53, s = $1.00
A. 3.53 and 5.53
B. 3.50 and 5.56

C. 3.48 and 5.58

D. 3.84 and 5.85
E. 3.35 and 5.35

87. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 16 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. Develop
a 90% confidence interval for the mean annual consumption of sugar.
A. 23.06 to 30.94
B. 22.20 to 31.80
C. 20.37 to 33.63
D. 23.30 to 30.70
E. 23.0 to 30.0

88. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 16 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. Develop
a 95% confidence interval for the mean annual consumption of sugar.
A. 23.06 to 30.94
B. 22.21 to 31.79
C. 20.37 to 33.63
D. 23.30 to 30.70
E. 23.0 to 30.0

89. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 16 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. Develop
a 99% confidence interval for the mean annual consumption of sugar.
A. 23.06 to 30.94
B. 22.20 to 31.80
C. 20.37 to 33.63
D. 23.30 to 30.70
E. 23.0 to 30.0

90. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 25 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. Develop
a 90% confidence interval for the mean annual consumption of sugar.
A. 23.06 to 30.94
B. 23.285 to 30.715
C. 21.97 to 32.03
D. 23.30 to 30.70
E. 23.92 to 30.08

91. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 25 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. Develop
a 95% confidence interval for the mean annual consumption of sugar.
A. 23.06 to 30.94
B. 23.285 to 30.715
C. 21.97 to 32.03
D. 23.30 to 30.70
E. 23.92 to 30.08

92. The Sugar Producers Association wants to estimate the mean yearly sugar
consumption. A sample of 25 people reveals the mean yearly consumption to be 27
kg with a sample standard deviation of 9 kg. Assume a normal population. Develop
a 99% confidence interval for the mean annual consumption of sugar.
A. 23.06 to 30.94
B. 23.285 to 30.715
C. 21.97 to 32.03
D. 23.30 to 30.70
E. 23.92 to 30.08

93. A sample of 500 executives who own their own home revealed 175 planned to
sell their homes and retire to Victoria. Develop a 98% confidence interval for the
proportion of executives that plan to sell and move to Victoria.

A. 30% and 40%

B. 29% and 41%
C. 28% and 42%
D. 29.5% and 40.5%
E. 29.3% and 41.3%

94. College X is concerned about their employees making use of their email for nonbusiness purposes. A random sample of 400 e-mails discovered 80 messages that
were not business related. The 95% confidence interval for the population
proportion is:
A. 0.167 to 0.233
B. 0.161 to 0.239
C. 0.148 to 0.252
D. 0.186 to 0.254
E. 0.179 to 0.261

95. College X is concerned about their employees making use of their email for nonbusiness purposes. A random sample of 400 e-mails discovered 80 messages that
were not business related. The 99% confidence interval for the population
proportion is:
A. 0.167 to 0.233
B. 0.161 to 0.239
C. 0.148 to 0.252
D. 0.186 to 0.254
E. 0.179 to 0.261

96. College X is concerned about their employees making use of their email for nonbusiness purposes. A random sample of 400 e-mails discovered 80 messages that
were not business related. The 90% confidence interval for the population
proportion is:
A. 0.167 to 0.233
B. 0.161 to 0.239
C. 0.148 to 0.252

D. 0.186 to 0.254
E. 0.179 to 0.261

97. College X is concerned about their employees making use of their email for nonbusiness purposes. A random sample of 400 e-mails discovered 60 messages that
were not business related. The 99% confidence interval for the population
proportion is:
A. 0.104 to 0.196
B. 0.115 to 0.185
C. 0.148 to 0.252
D. 0.121 to 0.179
E. 0.186 to 0.254

98. College X is concerned about their employees making use of their email for nonbusiness purposes. A random sample of 400 e-mails discovered 60 messages that
were not business related. The 95% confidence interval for the population
proportion is:
A. 0.104 to 0.196
B. 0.115 to 0.185
C. 0.148 to 0.252
D. 0.121 to 0.179
E. 0.186 to 0.254

99. College X is concerned about their employees making use of their email for nonbusiness purposes. A random sample of 400 e-mails discovered 60 messages that
were not business related. The 90% confidence interval for the population
proportion is:
A. 0.104 to 0.196
B. 0.115 to 0.185
C. 0.148 to 0.252
D. 0.121 to 0.179
E. 0.186 to 0.254

100. Suppose 1,600 of 2,000 registered voters sampled said they planned to vote
for a particular candidate. Using the 0.95 degree of confidence, what is the interval
estimate for the population proportion (to the nearest tenth of a percent)?
A. 78.2% to 81.8%
B. 69.2% to 86.4%
C. 76.5% to 83.5%
D. 77.7% to 82.3%

101. A sample of union members was selected and their opinions regarding the
proposed management union contract were recorded with 1,600 out of the 2,000
members in favour of it. Using a 95% confidence level, the interval estimate for the
population proportion was computed to be 0.78 and 0.82.
A. This indicates that about 68 out of 100 similarly constructed intervals would
include the population proportion.
B. This indicates that about 95 out of 100 similarly constructed intervals would
include the population proportion.
C. This indicates that about 99 out of 100 similarly constructed intervals would
include the population proportion.
D. This indicates that about 78 out of 100 similarly constructed intervals would
include the population proportion.

102. There are 2,000 eligible voters in a precinct. Despite protests from
knowledgeable persons that a sample size of 500 was too large in relation to the
total, the 500 selected at random were asked to indicate whether they planned to
vote for the Liberal incumbent or the Conservative challenger. Of the 500 surveyed,
350 said they were going to vote for the Liberal incumbent. Using the 0.99
confidence coefficient, what are the confidence limits for the proportion that plan to
vote for the Liberal incumbent?
A. 0.060 and 0.700
B. 0.612 and 0.712
C. 0.397 and 0.797
D. 0.826 and 0.926
E. 0 .6542 and 0.7458

103. If 2,000 card-carrying members of a political party were randomly sampled,

and 1,600 said they wanted a change in leadership, what is the 95% confidence

interval for the true population percentage for all of the card-carrying members of
the party who wanted a change in leadership?
A. 78.2% to 81.8%
B. 78.0% to 82.0%
C. 76.5% to 83.5%
D. 77.7% to 82.3%
E. less than 50%

104. A financial analyst wanted to determine the mean annual return on mutual
funds. A random sample of 60 returns shows a mean of 12%. If the population
standard deviation is assumed to be 4%, estimate with 95% confidence the mean
annual return on all mutual funds.
A. 11.325% to 13.012%
B. 10.988% to 14.025%
C. 11.325% to 14.025%
D. 10.988% to 13.012%
E. 8% to 16%

105. A survey of an urban university (population of 25,450) showed that 870 of

1,100 students sampled supported a fee increase to fund improvements to the
student recreation center. Using the 95% level of confidence, what is the confidence
interval?
A. [0.767, 0.814]
B. [0.759, 0.822]
C. [0.771, 0.811]
D. [0.714, 0.866]

106. A survey of an urban university (population of 25,450) showed that 870 of

1,100 students sampled supported a fee increase to fund improvements to the
student recreation center. Using the 99% level of confidence, what is the confidence
interval?
A. [0.751, 0.829]
B. [0.760, 0.822]

C. [0.767, 0.814]
D. [0.771, 0.811]

107. A survey of an urban university (population of 25,450) showed that 870 of

1,100 students sampled supported a fee increase to fund improvements to the
student recreation center. If university officials say that at least 70% of the voting
student population support the fee increase, what conclusion can be drawn based
on a 95% level of confidence?
A. 70% is not in the interval, need to take another sample.
B. 70% is not in the interval, so assume it will not be supported.
C. 70% is below the interval, so assume it will be supported.
D. Since this was not based on population, cannot make conclusion.

108. College X is concerned about their employees making use of their email for
non-business purposes. A random sample of 400 e-mails discovered 40 messages
that were not business related. The 95% confidence interval for the population
proportion is:
A. 0.199 to 0.201
B. 0.101 to 0.199
C. 0.07060 to0.12940
D. 0.0753 to 0.1247
E. 0.0700 to 0.1000

109. College X is concerned about their employees making use of their email for
non-business purposes. A random sample of 400 e-mails discovered 70 messages
that were not business related. The 95% confidence interval for the population
proportion is:
A. 0.1378 to 0.2122
B. 0.101 to 0.199
C. 0.1206 to.1902
D. 0.0753 to 0.1247
E. 0.1300 to 0.2100

110. A consumer group would like to estimate the mean monthly electricity charge
for a single family house in July (within $5) using a 99 percent level of confidence.
Based on similar studies the standard deviation is estimated to be $20.00. How
large a sample is required?
A. 105
B. 106
C. 107
D. 108
E. 109

111. The Kennel Club wants to estimate the proportion of children that have a dog
as a pet. Assume a 95% level of confidence and that the club estimates that 30% of
the children have a dog as a pet. If the club wants the estimate to be within 3% of
the population proportion, how many children would they need to contact?
A. 978
B. 879
C. 789
D. 987
E. 897

112. College X is concerned about their employees making use of their email for
non-business purposes. You have been approached to assist in this matter. College
X decides on a 95% confidence level and state that the estimation proportion must
be within 2 percent of the population proportion. A pilot survey reveals that 8 out of
50 emails sampled were not for business purposes. How many emails should be
surveyed to meet your requirements?
A. 1,291
B. 707
C. 498
D. 2,230
E. 1,000

113. College X is concerned about their employees making use of their email for
non-business purposes. You have been approached to assist in this matter. College

X decides on a 90% confidence level and state that the estimation proportion must
be within 2 percent of the population proportion. A pilot survey reveals that 8 out of
50 emails sampled were not for business purposes. How many emails should be
surveyed to meet your requirements?
A. 910
B. 707
C. 498
D. 1,221
E. 1,000

114. College X is concerned about their employees making use of their email for
non-business purposes. You have been approached to assist in this matter. College
X decides on a 99% confidence level and state that the estimation proportion must
be within 2 percent of the population proportion. A pilot survey reveals that 8 out of
50 emails sampled were not for business purposes. How many emails should be
surveyed to meet your requirements?
A. 910
B. 2,100
C. 498
D. 1,221
E. 2,237

115. College X is concerned about their employees making use of their email for
non-business purposes. You have been approached to assist in this matter. College
X decides on a 90% confidence level and state that the estimation proportion must
be within 2 percent of the population proportion. A pilot survey reveals that 10 out
of 50 emails sampled were not for business purposes. How many emails should be
surveyed to meet your requirements?
A. 910
B. 1,537
C. 1,083
D. 1,221
E. 2,654

116. College X is concerned about their employees making use of their email for
non-business purposes. You have been approached to assist in this matter. College
X decides on a 95% confidence level and state that the estimation proportion must
be within 2 percent of the population proportion. A pilot survey reveals that 10 out
of 50 emails sampled were not for business purposes. How many emails should be
surveyed to meet your requirements?
A. 910
B. 1,537
C. 1,083
D. 1,221
E. 2,654

117. College X is concerned about their employees making use of their email for
non-business purposes. You have been approached to assist in this matter. College
X decides on a 99% confidence level and state that the estimation proportion must
be within 2 percent of the population proportion. A pilot survey reveals that 10 out
of 50 emails sampled were not for business purposes. How many emails should be
surveyed to meet your requirements?
A. 910
B. 1,537
C. 1,083
D. 1,221
E. 2,663

118. A group of statistics students decided to conduct a survey at their university to

find the average (mean) amount of time students spent studying per week.
Assuming a standard deviation of 6 hours, what is the required sample size if the
error is to be less than hour with a 95% level of confidence?
A. 554
B. 130
C. 35
D. 393

119. A group of statistics students decided to conduct a survey at their university to

find the average (mean) amount of time students spent studying per week.

Assuming a standard deviation of 3 hours, what is the required sample size if the
error is to be less than hour with a 99% level of confidence?
A. 196
B. 240
C. 15
D. 16

120. i. One factor in determining the size of a sample is the degree of confidence
selected. This is usually 0.95 or 0.99, but it may be any degree of confidence you
specify.
ii. One factor in determining the size of a sample is the maximum allowable error
that you must decide on. It is the maximum error you will tolerate at a specified
level of confidence.
iii. The variation in the population as measured by the standard deviation has little
or no effect in determining the size of a sample selected from the population.
A. (i), (ii), and (iii) are all correct statements.
B. (iii) is a correct statement but not (i) or (ii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

121. i. The higher the degree of confidence, the larger the sample required to give a
certain precision.
ii. To determine the size of a sample, the standard deviation of the population must
be estimated by either taking a pilot survey or by approximating it based on
knowledge of the population.
iii. One factor in determining the size of a sample is the maximum allowable error
that you must decide on. It is the maximum error you will tolerate at a specified
level of confidence.
A. (i), (ii), and (iii) are all correct statements.
B. (iii) is a correct statement but not (i) or (ii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

122. The mean number of travel days per year for the outside salespeople
employed by hardware distributors is to be estimated. The 0.90 degree of
confidence is to be used. The mean of a small pilot study was 150 days, with a
standard deviation of 14 days. If the population mean is to be estimated within two
days, how many outside salespeople should be sampled?
A. 133
B. 452
C. 511
D. 2,100

123. The proportion of junior executives leaving large manufacturing companies

within three years is to be estimated within 3 percent. The 0.95 degree of
confidence is to be used. A study conducted several years ago revealed that the
percent of junior executives leaving within three years was 21. To update this study,
the files of how many junior executives should be studied?
A. 594
B. 612
C. 709
D. 897

124. How large a sample of government employees should be taken if we want to

estimate with 98% confidence the mean salary to within $2,000? The population
standard deviation is assumed to be $10,500. (Round up to the nearest whole
number)
A. 150
B. 200
C. 525
D. 100
E. 75

125. Determine the sample size that is required to estimate a population mean to
within 0.4 units with a 99% confidence when the population standard deviation is
1.75.

A. 172
B. 128
C. 217
D. 61
E. Over 500

126. The sample size needed to estimate a population mean within 2 units with a
95% confidence when the population standard deviation equals 8 is
A. 9
B. 61
C. 62
D. 8
E. 50

127. A bank wishes to estimate the mean balances owed by customers holding
MasterCard. The population standard deviation is estimated to be $300. If a 98
percent confidence interval is used and an interval of $75 is desired, how many
cardholders should be sampled?
A. 44
B. 212
C. 629
D. 87

128. Which of the following is NOT necessary to determine how large a sample to
select from a population?
A. Level of confidence in estimating the population parameter
B. Size of the population
C. Maximum allowable error in estimating the population parameter
D. Estimate of the population variation

129. (i) The interval estimate states the range within which a population parameter
probably lies.

(ii). The measure of confidence that one has in the interval estimate is called degree
of level of confidence.
(iii) For a sampling distribution of the means, 95% percent of the means would be
between 1.96 standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

130. (i) The interval estimate states the range within which a population parameter
probably lies.
(ii) The confidence interval is the interval within which a population parameter is
expected to lie.
(iii) For a sampling distribution of the means, 95% percent of the means would be
between 1.96 standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

131. (i) The point estimate states the range within which a population parameter
probably lies.
(ii). The measure of confidence that one has in the interval estimate is called degree
of level of confidence.
(iii) For a sampling distribution of the means, 95% percent of the means would be
between 1.96 standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

132. (i) Reasoning from a sample or small group to the entire group or population is
called statistical inference.
(ii) A 95 percent confidence interval implies that about 95 out of 100 similarly
constructed intervals will include the parameter being estimated.
(iii) For a sampling distribution of the means, 95% percent of the means would be
between 1.96 standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

133. (i) The interval estimate states the range within which a population parameter
probably lies.
(ii) A 95 percent confidence interval implies that about 95 out of 100 similarly
constructed intervals will include the parameter being estimated.
(iii) For a sampling distribution of the means, 95% percent of the means would be
between 1.96 standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

134. (i) The interval estimate states the range within which a population parameter
probably lies.
(ii). The measure of confidence that one has in the interval estimate is called degree
of level of confidence.
(iii) For a sampling distribution of the means, 90% percent of the means would be
between 1.96 standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) and (ii) are correct statements but not (iii).

C. (i) and (iii) are correct statements but not (ii).

D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.