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Theory of Estimation

1. The document discusses concepts related to confidence interval estimation for population means and proportions based on random samples. It provides 11 examples of estimating confidence intervals for percentages of people who agree with a statement, average lengths of hospital stays, paper lengths, and more. Confidence intervals at both 95% and 99% levels are calculated based on sample means, standard deviations, and sample sizes.

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Sushil Rana Magar
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169 views2 pages

Theory of Estimation

1. The document discusses concepts related to confidence interval estimation for population means and proportions based on random samples. It provides 11 examples of estimating confidence intervals for percentages of people who agree with a statement, average lengths of hospital stays, paper lengths, and more. Confidence intervals at both 95% and 99% levels are calculated based on sample means, standard deviations, and sample sizes.

Uploaded by

Sushil Rana Magar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Theory of estimation:

Confidence Interval estimate for population mean (large sample case, n˃30)

1. A random sample of size 36 from a finite population consisting 101 units. If the population
standard deviation is 12.6, find the standard error of sample mean when the sample is drawn i)
with replacement ii) without replacement.
2. If the sample mean is 20, population standard deviation is 3and sample size is 64. Find the
interval estimate of population mean.
3. The quality control manager at a light bulb factory needs to estimate the mean life of a large
shipment of light bulbs. The process standard deviation is known to be 100 hours. A random
sample of 64 light bulbs indicated a sample mean life of 350 hours. Set up a 95% confidence
interval estimate of the true population mean life of light bulb indicated a mean life of light
bulbs in this shipment
4. Systolic blood pressure of a sample of 400 males was taken. Sample mean blood pressure was
found to be 128mm and standard deviation 13.05mm. Find 95% confidence limits of blood
pressure within which the populations mean would lie?
5. The medical insurance company’s records indicate that the average length of stay at a hospital
for a patient after open-heart surgery is 10 days. A medicinal research group wants to reconfirm
this average stay. A random sample of 36 such patients was determined that the sample mean
was 8.5 days with a standard deviation of 3.3 days. Using a 95% confidence level (that is 5%
significance), check if the insurance company’s records are justified.
6. A manufacturer of computer paper has a production process that operates continuously
throughout an entire production shift. The paper is expected to have an average length of 11
inches and a standard deviation is known to be 0.01 inch. Suppose a random sample of 100
sheets is selected, and the average paper length is found to be 10.998 inches. Set up 95% and
99% confidence interval estimate of the population average paper length.
7. 400 oranges are taken from a large consignment and 50 of them are found to be bad. Estimate
the percentage of bad oranges in the consignment and assign 95% limits within which the
percentage lies.
8. Mrs. Sharma is a professional statistician and currently teaches Business Statistics at college X.
She surveyed 100 statisticians and found that 90 of them were in favor of “Computer-aided
Statistical Analysis in BBA”
I. Estimate the standard error of proportion.
II. Set up a 95% confidence interval estimate of the population proportion of the
statisticians who are in favor of “computer- aided Statistical Analysis in BBA”.
9. A marketing research firm wants to estimate the share that foreign companies have in American
market for certain products. A random sample of 100 consumers is obtained, and it is found that
34 people in the sample are users of foreign - made product; the rest are users of domestic
products. Give a 95% confidence interval estimate for the share of foreign products in this
market.
10. A survey of working women in Kathmandu was conducted by the Johnson and Johnson
Cosmetics. Of the 1000 women surveyed, 55% believed that companies should hold positions
for those on maternity leave for six months or less and 45% felt that they should hold that
positions for more than six months.
Construct a 95% confidence interval estimate for the proportion of all working women in
Kathmandu who believe that companies should hold positions for those on maternity leave for
more than six months.
11. Stanford University in USA is contemplating switching from the semester system to annual
system. The administration conducts a survey of a random sample of 400 management students
and finds that 240 o them prefer to remain in semester system. Construct a 95% confidence
interval for the true proportion of all management students who would prefer to remain on
semester system.
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