CHAPTER EIGHT

Statistical Inference: Estimation for Single Populations

201
Chapter Eight
B 1. When a statistic calculated from sample data is used to estimate a population
parameter, it is called _______.

M A. an interval estimate
Term B. a point estimate
C. a statistical parameter
D. a good guess

A 2. When a range of values is used to estimate a population parameter, it is called

_______.

E A. an interval estimate
Term B. a point estimate
C. a statistical parameter
D. a range estimate

202
 Chapter 8: Statistical Inference: Estimation for Single Populations 203
A 3. Catherine Chao, Director of Marketing Research, is evaluating consumer
acceptance of a new toothpaste package. Her staff reports that 17% of a random
sample of 200 households prefer the new package to all other package designs. If
Catherine concludes that 17% of all households prefer the new package, she is
using a _______.

M A. a point estimate
BApp B. a range estimate
C. a statistical parameter
D. an interval estimate

D 4. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the

service level provided to walk-in customers. Accordingly, his staff recorded the
waiting times for 45 randomly selected walk-in customers, and calculated that
their mean waiting time was 15 minutes. If Brian concludes that the average
waiting time for all walk-in customers is 15 minutes, he is using a ________.

M A. a range estimate
BApp B. a statistical parameter
C. an interval estimate
D. a point estimate

C 5. Eugene Gates, Marketing Director of Mansfield Motors Manufacturers, Inc.’s

Electrical Division, is leading a study to assess the relative importance of product
features. An item on a survey questionnaire distributed to 100 of Mansfield’s
customers asked them to rate the importance of “ease of maintenance” on a scale
of 1 to 10 (with 1 meaning “not important” and 10 meaning “highly important”).
His staff assembled the following statistics.
Ease of Maintenance
Mean 7.5
Standard Deviation 1.5
If Eugene concludes that the average rate of “ease of maintenance” for all
customers is 7.5, he is using ________.

M A. arange estimate
BApp B. a statistical parameter
C. a point estimate
D. an interval estimate
204 Test Bank
A 6. Eugene Gates, Marketing Director of Mansfield Motors Manufacturers, Inc.’s
Electrical Division, is leading a study to assess the relative importance of product
features. An item on a survey questionnaire distributed to 100 of Mansfield’s
customers asked them to rate the importance of “efficiency of operation” on a
scale of 1 to 10 (with 1 meaning “not important” and 10 meaning “highly
important”). His staff assembled the following statistics.
Efficiency of Operation
Mean 6.0
Standard Deviation 2.5
If Eugene concludes that the average rate of “efficiency of operation” for all
customers is 6.0, he is using ________.

M A. a point estimate
BApp B. a statistical parameter
C. a range estimate
D. an interval estimate

D 7. Mary Flindt, a Marketing Director with Epsilon Airlines, is assessing the relative
importance of the "total flight" experience. An item on a survey questionnaire
distributed to 100 of Epsilon's customers asked them to rate the importance of
“on-time arrival” on a scale of 1 to 10 (with 1 meaning “not important” and 10
meaning “highly important”). Her staff assembled the following statistics from
the responses.
On-time Arrival
Mean 9.1
Standard Deviation 2.5
If Mary concludes that the average rate of “on-time arrival” for all customers is
9.1, she is using ________.

M A. an interval estimate
BApp B. a statistical parameter
C. a range estimate
D. a point estimate
 Chapter 8: Statistical Inference: Estimation for Single Populations 205
D 8. Mary Flindt, a Marketing Director with Epsilon Airlines, is assessing the relative
importance of the "total flight" experience. An item on a survey questionnaire
distributed to 100 of Epsilon's customers asked them to rate the importance of
“cabin space” on a scale of 1 to 10 (with 1 meaning “not important” and 10
meaning “highly important”). Her staff assembled the following statistics from
the responses.
Cabin Space
Mean 7.2
Standard Deviation 3.7
If Mary concludes that the average rate of “cabin space” for all customers is 7.2,
she is using ________.

M A. an interval estimate
BApp B. a statistical parameter
C. a range estimate
D. a point estimate

B 9. The Z value associated with a two-sided 90% confidence interval is _______.

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

C 10. The Z value associated with a two-sided 95% confidence interval is _______.

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

B 11. The Z value associated with a two-sided 80% confidence interval is _______.

E A. 1.645
Calc B. 1.28
C. 0.84
D. 0.29
206 Test Bank
B 12. The Z value associated with a two-sided 88% confidence interval is _______.

E A. 1.28
Calc B. 1.55
C. 1.17
D. 0.88

D 13. The Z value associated with a two-sided 92% confidence interval is _______.

E A. 1.41
Calc B. 0.92
C. 0.46
D. 1.75

B 14. The Z value associated with a two-sided 82% confidence interval is _______.

E A. 1.41
Calc B. 1.34
C. 0.46
D. 1.75

D 15. Suppose a random sample of 36 is selected from a population with a standard

deviation of 12. If the sample mean is 98, the 99% confidence interval to estimate
the population mean is _______.

M A. 94.08 to 101.92
Calc B. 92.85 to 103.15
C. 97.35 to 98.65
D. 93.34 to 102.66

A 16. Suppose a random sample of 36 is selected from a population with a standard

deviation of 12. If the sample mean is 98, the 90% confidence interval for the
population mean is _______.

M A. 94.71 to 101.29
Calc B. 97.45 to 98.55
C. 94.08 to 101.92
D. 97.35 to 98.65
 Chapter 8: Statistical Inference: Estimation for Single Populations 207
C 17. Suppose a random sample of 36 is selected from a population with a standard
deviation of 12. If the sample mean is 98, the 95% confidence interval for the
population mean is _______.

M A. 94.71 to 101.29
Calc B. 97.45 to 98.55
C. 94.08 to 101.92
D. 97.35 to 98.65

C 18. Suppose a random sample of size 64 is selected from a population. The sample
yields a mean of 26 and a standard deviation of 4. From this information, the 90%
confidence interval to estimate the population mean can be computed to be
_______.

M A. 25.36 to 26.64
Calc B. 25.92 to 26.08
C. 25.18 to 26.82
D. 25.90 to 26.10

B 19. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the

service level provided to walk-in customers. Accordingly, his staff recorded the
waiting times for 64 randomly selected walk-in customers, and determined that
their mean waiting time was 15 minutes and that the standard deviation was 4
minutes. The 90% confidence interval for the population mean of waiting times
is ________.

M A. 14.27 to 15.73
BCalc B. 14.06 to 15.94
C. 9.88 to 20.12
D. 13.86 to 16.14

A 20. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the

service level provided to walk-in customers. Accordingly, his staff recorded the
waiting times for 64 randomly selected walk-in customers, and determined that
their mean waiting time was 15 minutes and that the standard deviation was 4
minutes. The 95% confidence interval for the population mean of waiting times
is ________.

M A. 13.88 to 16.12
BCalc B. 7.16 to 22.84
C. 14.06 to 15.94
D. 8.42 to 21.58
208 Test Bank
D 21. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the
service level provided to walk-in customers. Accordingly, his staff recorded the
waiting times for 64 randomly selected walk-in customers, and determined that
their mean waiting time was 15 minutes and that the standard deviation was 4
minutes. The 88% confidence interval for the population mean of waiting times
is ________.

M A. 8.80 to 21.20
BCalc B. 14.33 to 15.67
C. 10.30 to 19.70
D. 14.11 to 15.89

B 22. James Desreumaux, VP of Human Resources of American First Banks (AFB), is

reviewing the employee training programs of AFB banks. His staff randomly
selected personnel files for 100 tellers in the Southeast Region, and determined
that their mean training time was 25 hours and that the standard deviation was 5
hours. The 88% confidence interval for the population mean of training times is
________.

M A. 17.25 to 32.75
BCalc B. 24.23 to 25.78
C. 24.42 to 25.59
D. 19.15 to 30.85

D 23. James Desreumaux, VP of Human Resources of American First Banks (AFB), is

reviewing the employee training programs of AFB banks. His staff randomly
selected personnel files for 100 tellers in the Southeast Region, and determined
that their mean training time was 25 hours and that the standard deviation was 5
hours. The 92% confidence interval for the population mean of training times is
________.

M A. 16.25 to 33.75
BCalc B. 24.30 to 25.71
C. 17.95 to 32.05
D. 24.13 to 25.99
 Chapter 8: Statistical Inference: Estimation for Single Populations 209
C 24. James Desreumaux, VP of Human Resources of American First Banks (AFB), is
reviewing the employee training programs of AFB banks. His staff randomly
selected personnel files for 100 tellers in the Southeast Region, and determined
that their mean training time was 25 hours and that the standard deviation was 5
hours. The 95% confidence interval for the population mean of training times is
________.

M A. 15.20 to 34.80
BCalc B. 24.18 to 25.82
C. 24.02 to 25.98
D. 16.78 to 33.23

B 25. Eugene Gates, Marketing Director of Mansfield Motors Manufacturers, Inc.’s

Electrical Division, is leading a study to assess the relative importance of product
features. An item on a survey questionnaire distributed to 121 of Mansfield’s
customers asked them to rate the importance of “ease of maintenance” on a scale
of 1 to 10 (with 1 meaning “not important” and 10 meaning “highly important”).
His staff assembled the following statistics.
Ease of Maintenance
Mean 7.5
Standard Deviation 1.1
The 90% confidence interval for the population mean rating of “ease of
maintenance” is ________.

M A. 5.34 to 9.66
BCalc B. 7.34 to 7.66
C. 5.69 to 9.31
D. 7.30 to 7.70
210 Test Bank
D 26. Eugene Gates, Marketing Director of Mansfield Motors Manufacturers, Inc.’s
Electrical Division, is leading a study to assess the relative importance of product
features. An item on a survey questionnaire distributed to 121 of Mansfield’s
customers asked them to rate the importance of “ease of maintenance” on a scale
of 1 to 10 (with 1 meaning “not important” and 10 meaning “highly important”).
His staff assembled the following statistics.
Ease of Maintenance
Mean 7.5
Standard Deviation 1.1
The 95% confidence interval for the population mean rating of “ease of
maintenance” is ________.

M A. 5.34 to 9.66
BCalc B. 7.34 to 7.66
C. 5.69 to 9.31
D. 7.30 to 7.70

A 27. Mary Flindt, a Marketing Director with Epsilon Airlines, is assessing the relative
importance of the "total flight" experience. An item on a survey questionnaire
distributed to 100 of Epsilon's customers asked them to rate the importance of
“cabin space” on a scale of 1 to 10 (with 1 meaning “not important” and 10
meaning “highly important”). Her staff assembled the following statistics from
the responses.
Cabin Space
Mean 7.2
Standard Deviation 3.7
The 95% confidence interval for the population mean rating of “cabin space” is
________.

M A. 6.47 to 7.93
BCalc B. 0.00 to 14.45
C. 0.00 to 6.47
D. 6.47 to 14.45
 Chapter 8: Statistical Inference: Estimation for Single Populations 211
C 28. Mary Flindt, a Marketing Director with Epsilon Airlines, is assessing the relative
importance of the "total flight" experience. An item on a survey questionnaire
distributed to 121 of Epsilon's customers asked them to rate the importance of
“cabin space” on a scale of 1 to 10 (with 1 meaning “not important” and 10
meaning “highly important”). Her staff assembled the following statistics from
the responses.
Cabin Space
Mean 7.2
Standard Deviation 3.7
The 99% confidence interval for the population mean rating of “cabin space” is
________.

M A. 0.00 to 7.39
BCalc B. 0.00 to 14.45
C. 6.33 to 8.07
D. 6.47 to 14.45

A 29. A random sample of 64 items is selected from a population of 400 items. The
sample mean is 200 and the sample standard deviation is 48. From this data, a
95% confidence interval to estimate the population mean can be computed as
_______.

M A. 189.21 to 210.79
Calc B. 188.24 to 211.76
C. 190.13 to 209.87
D. 190.94 to 209.06

D 30. A random sample of 64 items is selected from a population of 400 items. The
sample mean is 200 and the sample standard deviation is 48. From this data, a
90% confidence interval to estimate the population mean can be computed as
_______.

M A. 189.21 to 210.79
Calc B. 188.24 to 211.76
C. 190.13 to 209.87
D. 190.94 to 209.06
212 Test Bank
A 31. A researcher wants to estimate the proportion of the population which possess a
given characteristic. A random sample of size 600 is taken resulting in 330 items
which possess the characteristic. The point estimate for this population proportion
is _______.

E A. 0.55
Calc B. 0.33
C. 0.60
D. 0.45

C 32. The normal distribution is used to test about a population mean for large samples.
"Large" is usually defined as _______.

E A. at least 100
Term B. at least 5% of the population size
C. at least 30
D. at least 12

B 33. The t test was developed by _______.

E A. Charles Student
Term B. William Gosset
C. deMoivre
D. Gauss

C 34. The t-distribution is similar to a normal distribution. However the t-distribution

is _______.

M A. not symmetric
Term B. bimodal
C. flatter
D. discrete

B 35. The t-distribution is similar to a normal distribution. However the t-distribution

is a _______.

M A. leptokurtic distribution
Term B. platykurtic distribution
C. mesopotamian distribution
D. discrete distribution
 Chapter 8: Statistical Inference: Estimation for Single Populations 213
B 36. In order to find values in the t distribution table, you must convert the sample size
or sizes to _______.

E A. population sizes
Term B. degrees of freedom
C. Z values
D. student values

A 37. If the degrees of freedom in a t distribution get very large, _______.

M A. the t values and the Z values are almost the same

Term B. the sample size must be very small
C. the population size must be very large
D. the sample mean approaches zero

B 38. The table t value associated with the upper 5% of the t distribution and 12 degrees
of freedom is _______.

E A. 2.179
Calc B. 1.782
C. 1.356
D. 3.055

D 39. The table t value associated with the upper 5% of the t distribution and 14 degrees
of freedom is _______.

E A. 2.977
Calc B. 2.624
C. 2.145
D. 1.761

A 40. The table t value associated with the upper 10% of the t distribution and 23
degrees of freedom is _______.

E A. 1.319
Calc B. 1.714
C. 2.069
D. 1.321
214 Test Bank
B 41. The table t value associated with the upper 1% of the t distribution and 5 degrees
of freedom is _______.

E A. 4.032
Calc B. 3.365
C. 3.747
D. 1.476

A 42. The table t value associated with the upper 10% of the t distribution and 17
degrees of freedom is _______.

E A. 1.333
Calc B. 1.337
C. 1.740
D. 2.567

D 43. The table t value associated with the upper 5% of the t distribution and 15 degrees
of freedom is _______.

E A. 2.947
Calc B. 2.602
C. 2.131
D. 1.753

A 44. The table t value associated with the upper 0.5% of the t distribution and 4
degrees of freedom is _______.

E A. 4.604
Calc B. 2.776
C. 2.132
D. 2.353

B 45. The table t value associated with 10 degrees of freedom and used to compute a
95% confidence interval is _______.

E A. 1.812
Calc B. 2.228
C. 3.169
D. 1.372
 Chapter 8: Statistical Inference: Estimation for Single Populations 215
B 46. The table t value associated with 12 degrees of freedom and used to compute a
95% confidence interval is _______.

E A. 3.055
Calc B. 2.179
C. 1.782
D. 1.796

B 47. The table t value associated with 21 degrees of freedom and used to compute a
90% confidence interval is _______.

E A. 1.323
Calc B. 1.721
C. 2.080
D. 2.518

C 48. The table t value associated with 8 degrees of freedom and used to compute a
99% confidence interval is _______.

E A. 1.397
Calc B. 1.860
C. 3.355
D. 2.896

C 49. A researcher is interested in estimating the mean value for a population. She takes
a random sample of 17 items and computes a sample mean of 224 and a sample
standard deviation of 32. She decides to construct a 98% confidence interval to
estimate the mean. The degrees of freedom associated with this problem are
_______.

E A. 18
Calc B. 17
C. 16
D. 15
216 Test Bank
C 50. The lengths of steel rods produced by a shearing process are normally distributed.
A random sample of 10 rods is selected; the sample mean length is 119.05 inches;
and the sample standard deviation is 0.10 inch. The 95% confidence interval for
the population mean rod length is ______________.

M A. 118.99 to 119.11
BCalc B. 118.82 to 119.28
C. 118.98 to 119.12
D. 118.85 to 119.25

A 51. The lengths of steel rods produced by a shearing process are normally distributed.
A random sample of 10 rods is selected; the sample mean length is 119.05 inches;
and the sample standard deviation is 0.10 inch. The 90% confidence interval for
the population mean rod length is ______________.

M A. 118.99 to 119.11
BCalc B. 118.87 to 119.23
C. 119.00 to 119.10
D. 118.89 to 119.21

B 52. The weights of aluminum castings produced by a process are normally

distributed. A random sample of 5 castings is selected; the sample mean weight
is 2.21 pounds; and the sample standard deviation is 0.12 pound. The 98%
confidence interval for the population mean casting weight is _________.

M A. 1.76 to 2.66
BCalc B. 2.01 to 2.41
C. 2.08 to 2.34
D. 1.93 to 2.49

D 53. Life tests performed on a sample of 13 batteries of a new model indicated: (1) an
average life of 75 months, and (2) a standard deviation of 5 months. Other
battery models, produced by similar processes, have normally distributed life
spans. The 98% confidence interval for the population mean life of the new
model is _________.

M A. 63.37 to 86.63
BCalc B. 61.60 to 88.41
C. 71.77 to 78.23
D. 71.28 to 78.72
 Chapter 8: Statistical Inference: Estimation for Single Populations 217
C 54. Life tests performed on a sample of 13 batteries of a new model indicated: (1) an
average life of 75 months, and (2) a standard deviation of 5 months. Other
battery models, produced by similar processes, have normally distributed life
spans. The 90% confidence interval for the population mean life of the new
model is _________.

M A. 66.78 to 83.23
BCalc B. 72.72 to 77.28
C. 72.53 to 77.47
D. 66.09 to 83.91

B 55. A researcher wants to estimate the proportion of the population which possess a
given characteristic. A random sample of size 800 is taken resulting in 360 items
which possess the characteristic. The point estimate for this population proportion
is _______.

E A. 0.55
Calc B. 0.45
C. 0.35
D. 0.65

A 56. A researcher wants to estimate the proportion of a population which possess a

given characteristic. A random sample of size 250 is taken and 40% of the sample
possess the characteristic. The 90% confidence interval to estimate the population
proportion is _______.

M A. 0.35 to 0.45
Calc B. 0.34 to 0.46
C. 0.37 to 0.43
D. 0.39 to 0.41

B 57. A researcher wants to estimate the proportion of a population which possess a

given characteristic. A random sample of size 250 is taken and 40% of the sample
possess the characteristic. The 95% confidence interval to estimate the population
proportion is _______.

M A. 0.35 to 0.45
Calc B. 0.34 to 0.46
C. 0.37 to 0.43
D. 0.39 to 0.41
218 Test Bank
C 58. A researcher wants to estimate the proportion of a population which possess a
given characteristic. A random sample of size 200 is taken and 30% of the sample
possess the characteristic. The 95% confidence interval to estimate the population
proportion is _______.

M A. 0.53 to 0.67
Calc B. 0.25 to 0.35
C. 0.24 to 0.36
D. 0.27 to 0.33

B 59. A researcher wants to estimate the proportion of a population which possess a

given characteristic. A random sample of size 200 is taken and 30% of the sample
possess the characteristic. The 90% confidence interval to estimate the population
proportion is _______.

M A. 0.53 to 0.67
Calc B. 0.25 to 0.35
C. 0.24 to 0.36
D. 0.27 to 0.33

D 60. A random sample of 225 items from a population results in 60% possessing a
given characteristic. Using this information, the researcher constructs a 99%
confidence interval to estimate the population proportion. The resulting
confidence interval is _______.

M A. 0.54 to 0.66
Calc B. 0.59 to 0.61
C. 0.57 to 0.63
D. 0.52 to 0.68

A 61. A random sample of 225 items from a population results in 60% possessing a
given characteristic. Using this information, the researcher constructs a 90%
confidence interval to estimate the population proportion. The resulting
confidence interval is _______.

M A. 0.546 to 0.654
Calc B. 0.536 to 0.664
C. 0.596 to 0.604
D. 0.571 to 0.629
 Chapter 8: Statistical Inference: Estimation for Single Populations 219
A 62. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for
non-business communications. A random sample of 200 e-mail messages was
selected. Thirty of the messages were not business related. The point estimate for
this population proportion is _______.

E A. 
BApp B. 0.300
C. 0.182
D. 0.667

A 63. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for
non-business communications. A random sample of 200 e-mail messages was
selected. Thirty of the messages were not business related. The 90% confidence
interval for the population proportion is _________.

M A. 0.108 to 0.192
BCalc B. 0.153 to 0.247
C. 0.091 to 0.209
D. 0.145 to 0.255

D 64. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for
non-business communications. A random sample of 200 e-mail messages was
selected. Thirty of the messages were not business related. The 95% confidence
interval for the population proportion is _________.

M A. 0.108 to 0.192
BCalc B. 0.153 to 0.247
C. 0.091 to 0.209
D. 0.101 to 0.199

C 65. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for
non-business communications. A random sample of 200 e-mail messages was
selected. Thirty of the messages were not business related. The 98% confidence
interval for the population proportion is _________.

M A. 0.108 to 0.192
BCalc B. 0.153 to 0.247
C. 0.091 to 0.209
D. 0.145 to 0.255
220 Test Bank
A 66. Catherine Chao, Director of Marketing Research, is evaluating consumer
acceptance of a new toothpaste package. She randomly selects a sample of 200
households. Forty households prefer the new package to all other package
designs. The point estimate for this population proportion is _______.

M A. 0.20
BCalc B. 0.25
C. 0.40
D. 0.45

B 67. Catherine Chao, Director of Marketing Research, is evaluating consumer

acceptance of a new toothpaste package. She randomly selects a sample of 200
households. Forty households prefer the new package to all other package
designs. The 90% confidence interval for the population proportion is
_________.

M A. 0.199 to 0.201
BCalc B. 0.153 to 0.247
C. 0.164 to 0.236
D. 0.145 to 0.255

C 68. Catherine Chao, Director of Marketing Research, is evaluating consumer

acceptance of a new toothpaste package. She randomly selects a sample of 200
households. Forty households prefer the new package to all other package
designs. The 95% confidence interval for the population proportion is
_________.

M A. 0.153 to 0.247
BCalc B. 0.199 to 02.01
C. 0.145 to 0.255
D. 0.198 to 0.202

C 69. Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB), has
implemented a 'fast feedback' to keep her informed of the default rate on personal
loans at the AFB member banks. On each Friday, the default rate is calculated
for a sample of 500 personal loans. Last Friday's sample contained 30 defaulted
loans. The point estimate for this population proportion is _______.

M A. 0.0002
BCalc B. 16.670
C. 0.0600
D. 0.0333
 Chapter 8: Statistical Inference: Estimation for Single Populations 221
A 70. Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB), has
implemented a 'fast feedback' to keep her informed of the default rate on personal
loans at the AFB member banks. On each Friday, the default rate is calculated
for a sample of 500 personal loans. Last Friday's sample contained 30 defaulted
loans. The 90% confidence interval for the population proportion is _________.

M A. 0.043 to 0.077
BCalc B. 0.046 to 0.074
C. 0.039 to 0.081
D. 0.028 to 0.060

D 71. Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB), has
implemented a 'fast feedback' to keep her informed of the default rate on personal
loans at the AFB member banks. On each Friday, the default rate is calculated
for a sample of 500 personal loans. Last Friday's sample contained 30 defaulted
loans. The 95% confidence interval for the population proportion is _________.

M A. 0.043 to 0.077
BCalc B. 0.046 to 0.074
C. 0.028 to 0.060
D. 0.039 to 0.081

A 72. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the

service level provided to walk-in customers. Brian would like to minimize the
variance of waiting time for these customers, since this would mean each
customer received the same level of service. Accordingly, his staff recorded the
waiting times for 15 randomly selected walk-in customers, and determined that
their mean waiting time was 15 minutes and that the variance was 4 minutes. The
90% confidence interval for the population variance of waiting times is
________.

M A. 9.46 to 34.09
BCalc B. 56.25 to 64.87
C. 11.05 to 16.03
D. 8.58 to 39.79
222 Test Bank
D 73. Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the
service level provided to walk-in customers. Brian would like to minimize the
variance of waiting time for these customers, since this would mean each
customer received the same level of service. Accordingly, his staff recorded the
waiting times for 15 randomly selected walk-in customers, and determined that
their mean waiting time was 15 minutes and that the variance was 4 minutes. The
95% confidence interval for the population variance of waiting times is
________.

M A. 9.46 to 34.09
BCalc B. 56.25 to 64.87
C. 11.05 to 16.03
D. 8.58 to 39.79

C 74. Velma Vasquez, fund manager of the Vasquez Value Fund, manages a portfolio
of 250 common stocks. Velma relies on various statistics, such as variance, to
assess the overall risk of stocks in an economic sector. Her staff reported that for
a sample 14 utility stocks the mean annualized return was 14% and that the
variance was 3%. The 90% confidence interval for the population variance of
annualized returns is _______.

M A. 0.018 to 0.064
BCalc B. 0.016 to 0.078
C. 0.017 to 0.066
D. 0.016 to 0.075

B 75. Velma Vasquez, fund manager of the Vasquez Value Fund, manages a portfolio
of 250 common stocks. Velma relies on various statistics, such as variance, to
assess the overall risk of stocks in an economic sector. Her staff reported that for
a sample 14 utility stocks the mean annualized return was 14% and that the
variance was 3%. The 95% confidence interval for the population variance of
annualized returns is _______.

M A. 0.018 to 0.064
BCalc B. 0.016 to 0.078
C. 0.017 to 0.066
D. 0.016 to 0.075
 Chapter 8: Statistical Inference: Estimation for Single Populations 223
D 76. James Desreumaux, VP of Human Resources of American First Banks (AFB), is
reviewing the employee training programs of AFB banks. His staff randomly
selected personnel files for 10 tellers in the Southwest Region, and determined
that their mean training time was 25 hours and that the standard deviation was 5
hours. The 90% confidence interval for the population variance of training times
is ________.

M A. 11.83 to 83.33
BCalc B. 2.37 to 16.67
C. 2.66 to 13.51
D. 13.30 to 67.57

A 77. James Desreumaux, VP of Human Resources of American First Banks (AFB), is

reviewing the employee training programs of AFB banks. His staff randomly
selected personnel files for 10 tellers in the Southwest Region, and determined
that their mean training time was 25 hours and that the standard deviation was 5
hours. The 95% confidence interval for the population variance of training times
is ________.

M A. 11.83 to 83.33
BCalc B. 2.37 to 16.67
C. 2.66 to 13.51
D. 13.30 to 67.57

B 78. The finite correction factor should be used if the sample size is _______.

M A. less than 5% of the population size

Term B. more than 5% of the population size
C. less than 30
D. more than 100

B 79. In finding a confidence interval for the population mean, the population standard
deviation should be used if it is known. If the population standard deviation is
not known, then it should be estimated with _______.

E A. the sample variance

Term B. the sample standard deviation
C. the range
D. the mean
224 Test Bank
A 80. What proportion of a population possesses a given characteristic? To estimate
this, a random sample of 1700 people are interviewed from the population. Seven
hundred and fourteen of the people sampled possess the characteristic. Using this
information, the researcher computes an 88% confidence interval to estimate the
proportion of the population who possess the given characteristic. The resulting
confidence interval is _______.

M A. 0.401 to 0.439
Calc B. 0.409 to 0.431
C. 0.392 to 0.448
D. 0.389 to 0.451

A 81. In estimating the sample size necessary to estimate a population mean, the error
of estimation, E, is equal to _______.

E A. the distance between the sample mean and the population mean
Term B. the distance between the sample mean and the variance
C. the Z score
D. the sample size

B 82. In estimating sample size, if the population standard deviation is unknown, it can
be estimated by using _______.

M A. the population mean

Term B. one-fourth of the range
C. one-half of the range
D. the Z score

C 83. Suppose a researcher wants to conduct a study to estimate the population mean.
He plans to use a 95% level of confidence to estimate the mean, and the
population standard deviation is approximately 34. The researcher wants the error
to be no more than 4. The sample size should be at least _______.

M A. 7
Calc B. 196
C. 278
D. 1110
 Chapter 8: Statistical Inference: Estimation for Single Populations 225
B 84. James Desreumaux, VP of Human Resources of American First Banks (AFB), is
reviewing the employee training programs of AFB banks. He plans to use a 95%
confidence interval estimate of mean training time of tellers and is willing to
accept an error of 1 hour; previous studies indicated a standard deviation of 2
hours. The sample size should be at least _______.

M A. 4
BCalc B. 16
C. 34
D. 68

B 85. James Desreumaux, VP of Human Resources of American First Banks (AFB), is

reviewing the employee training programs of AFB banks. He plans to use a 90%
confidence interval estimate of mean training time of tellers and is willing to
accept an error of 1 hour; previous studies indicated a standard deviation of 5
hours. The sample size should be at least _______.

M A. 4
BCalc B. 16
C. 34
D. 68

A 86. A researcher wants to determine the sample size necessary to adequately conduct
a study to estimate the population mean to within 5 points. The range of
population values is 80 and the researcher plans to use a 90% level of confidence.
The sample size should be at least _______.

M A. 44
Calc B. 62
C. 216
D. 692

C 87. A study is going to be conducted in which a population mean will be estimated

using a 92% confidence interval. The estimate needs to be within 12 of the actual
population mean. The population variance is estimated to be around 2500. The
necessary sample size should be at least _______.

M A. 15
Calc B. 47
C. 53
D. 638

B 88. In estimating the sample size necessary to estimate P, if there is no good

approximation for the value of P available, the value of ____ should be used as an
estimate of P in the formula.
226 Test Bank

E A. 0.10
Term B. 0.50
C. 0.40
D. 1.96

D 89. A researcher wants to estimate the population proportion with a 95% level of
confidence. He estimates from previous studies that the population proportion is
no more than .30. The researcher wants the estimate to have an error of no more
than .03. The necessary sample size is at least _______.

M A. 27
Calc B. 188
C. 211
D. 897

C 90. Catherine Chao, Director of Marketing Research, is evaluating consumer

acceptance of a new toothpaste package. She plans to use a 95% confidence
interval estimate of the proportion of households which prefer the new packages;
she will accept a 0.05 error. Previous studies indicate that new packaging has an
approximately 70% acceptance rate. The sample size should be at least _______.

M A. 27
BCalc B. 59
C. 323
D. 427

B 91. Catherine Chao, Director of Marketing Research, is evaluating consumer

acceptance of a new toothpaste package. She plans to use a 80% confidence
interval estimate of the proportion of households which prefer the new packages;
she will accept a 0.05 error. Previous studies indicate that new packaging has an
approximately 70% acceptance rate. The sample size should be at least _______.

M A. 27
BCalc B. 59
C. 323
D. 427
 Chapter 8: Statistical Inference: Estimation for Single Populations 227
A 92. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for
non-business communications. He plans to use a 95% confidence interval
estimate of the proportion of e-mail messages that are non-business; he will
accept a 0.05 error. Previous studies indicate that approximately 30% of
employee e-mail is not business related. Elwin should sample _______ e-mail
messages.

E A. 
BApp B. 12
C. 457
D. 14

C 93. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for
non-business communications. He plans to use a 98% confidence interval
estimate of the proportion of e-mail messages that are non-business; he will
accept a 0.05 error. Previous studies indicate that approximately 30% of
employee e-mail is not business related. Elwin should sample _______ e-mail
messages.

E A. 
BApp B. 12
C. 457
D. 14

D 94. A researcher wants to estimate the population proportion with a 90% level of
confidence. She estimates from previous studies that the population proportion is
no more than .30. The researcher wants the estimate to have an error of no more
than .02. The necessary sample size is at least _______.

M A. 29
Calc B. 47
C. 298
D. 1421

A 95. A study will be conducted to estimate the population proportion. A level of

confidence of 99% will be used and an error of no more than .04 is desired. There
is no knowledge as to what the population proportion will be. The size of sample
should be at least _______.

M A. 1036
Calc B. 160
C. 41
D. 259
228 Test Bank
D 96. A researcher conducts a study to determine what the population proportion is for
a given characteristic. It is believed from previous studies that the proportion of
the population will be at least .65. The researcher wants to use a 98% level of
confidence. He also wants the error to be no more than .03. The sample size
should be at least _______.

M A. 41
Calc B. 313
C. 1677
D. 1373

B 97. You wish to determine the proportion of all secretaries who are familiar with a
particular word processing package. You will conduct a random survey. How
large a sample should you take if you want to be 95% confident of the results and
within 0.05 of the true population proportion?

M A. 73
Calc B. 384
C. 95
D. 277

C 98. You wish to determine the proportion of all secretaries who are familiar with a
particular word processing package. You will conduct a random survey. How
large a sample should you take if you want to be 90% confident of the results and
within 0.04 of the true population proportion?

M A. 152
Calc B. 216
C. 423
D. 600

B 99. A bank officer wishes to estimate the amount of the average total deposits per
customer at the bank. She wishes the estimate to be within $200 of the actual
average with 95% confidence. She assumes the standard deviation for this should
be $1000. How large should the sample be?

M A. 10
BCalc B. 96
C. 68
D. 19,208
 Chapter 8: Statistical Inference: Estimation for Single Populations 229
B 100. A bank officer wishes to estimate the amount of the average total deposits per
customer at the bank. She wishes the estimate to be within $100 of the actual
average with 90% confidence. She assumes the standard deviation for this should
be $800. How large should the sample be?

M A. 51
BCalc B. 173
C. 246
D. 17,318
230 Test Bank
101. While evaluating the service level provided to walk-in customers, Brian Vanecek,
VP of Operations at Portland Trust Bank, encountered resistance to some of his
proposals from fellow executives. Brian focuses on providing timely, efficient
service to the banks customers; customers having to wait for service upsets him;
and some customers share his philosophy, but not all. The VP of Marketing
points out that some customers (for various reasons) "don't want to rush in and
out." Moreover, the bank's management wants to provide a warm friendly
atmosphere for customers.

Identify some potential segments of the bank's walk-in customers. (Are drive-
through customers a distinct segment?) How can a statistical analysis of walk-in
customers help identify and evaluate service alternatives for the segments? What
estimates are needed?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
 Chapter 8: Statistical Inference: Estimation for Single Populations 231
102. Stockton Steel, Inc. can qualify for a lucrative contract to supply steel rods if it
can meet the buyer’s process capability requirements. Specifically, the buyer
requires documented evidence that the standard deviation of Stockton's process is
no more than 1/12th of the difference between the upper tolerance limit and the
lower tolerance limit,  £ (UTL - LTL)/12.

Sarah Shum, Director of Quality Programs, is assigned the task of developing the
documentation. She knows that variability of the rod length depends on several
factors: the operators' skill, the mix used in the steel melt, the quality of materials
used in the mix, and the condition of the equipment.

Discuss Sarah's assignment. What estimates does she need? Which departments
must participate in the process capability study? Which of these departments will
not participate after completion of the study?
M _________________________________________________________________
BApp _________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
232 Test Bank
103. Alan Lessoff, VP of Marketing at CyberWarehouse, Inc. (CWI), wants to learn
more about online shoppers that visit the CyperWarehouse web sites.

Identify some potential segments of the CWI's online shoppers. (Are repeat-
visitors a distinct segment?) How can a statistical analysis of online shoppers
help identify and evaluate service alternatives, merchandise selection, and web
site design for the segments? What estimates are needed?

M
BApp
 Chapter 8: Statistical Inference: Estimation for Single Populations 233
104. Online financial brokerages continue go grow with the Internet. CyberMarkets,
Inc. (CMI) advises e-commerce businesses on their marketing strategies.

Addalie McMinn, VP of Research at CMI, expects increasingly intense

competition between online brokerages for new customers as the industry
matures.
She wants to learn more about the customers of online brokerages; she wants to
understand "what makes them tick" so she can advise CMI clients how to
compete more successfully. What factors do these investors use to choose one
broker over another? Transaction costs? Basic service characteristics such as fast
order execution, and timely, well-organized statements? Free tie-in services such
as an address book, a calendar service, and links to favorite web sites for gifts.

Should Addalie segment the customer population? Are all factors equally
important for all market segments? Does age, gender, or professional occupation
matter?

How can a statistical analysis of online brokerage customers assist with stategy
formulation? Describe the statistical methods that will be useful to Addalie
during the study. What estimates are needed?
M
BApp