Exam

Name___________________________________

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) True or False: The sample mean is a point estimate of the population mean. 1)

2) True or False: A population parameter is used to estimate a confidence interval. 2)

3) True or False: Holding the sample size fixed, increasing the level of confidence in a confidence 3)
interval will necessarily lead to a wider confidence interval.

4) True or False: Holding the level of confidence fixed, increasing the sample size will lead to a wider 4)
confidence interval.

5) True or False: The difference between the sample mean and the population mean is called the 5)
sampling error.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

6) Private colleges and universities rely on money contributed by individuals and corporations for 6)
their operating expenses. Much of this money is put into a fund called an endowment, and the
college spends only the interest earned by the fund. A recent survey of 8 private colleges in the
United States revealed the following endowments (in millions of dollars): 60.2, 47.0, 235.1, 490.0,
122.6, 177.5, 95.4, and 220.0. What value will be used as the point estimate for the mean endowment
of all private colleges in the United States?
A) $143.042 B) $1,447.8 C) $180.975 D) $8

7) The head librarian at the Library of Congress has asked her assistant for an interval estimate of the 7)
mean number of books checked out each day. The assistant provides the following interval
estimate: from 740 to 920 books per day. What is an efficient, unbiased point estimate of the
number of books checked out each day at the Library of Congress?
A) 1,660 B) 920 C) 740 D) 830

8) A 99% confidence interval estimate can be interpreted to mean that 8)

A) if all possible sample sizes of n are taken and confidence interval estimates are developed,
99% of them would include the true population mean somewhere within their interval.
B) we have 99% confidence that we have selected a sample whose interval does include the
population mean.
C) Both of the above.
D) None of the above.

9) An economist is interested in studying the incomes of consumers in a particular country. The 9)

population standard deviation is known to be $1,000. A random sample of 50 individuals resulted
in a mean income of $15,000. What is the width of the 90% confidence interval?
A) $232.60 B) $465.23 C) $728.60 D) $364.30

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10) Which of the following is not true about the Student's t distribution? 10)
A) It has more area in the tails and less in the center than does the normal distribution.
B) It is bell shaped and symmetrical.
C) It is used to construct confidence intervals for the population mean when the population
standard deviation is known.
D) As the number of degrees of freedom increases, the t distribution approaches the normal
distribution.

11) The t distribution 11)

A) has more area in the tails than does the normal distribution.
B) assumes the population is normally distributed.
C) approaches the normal distribution as the sample size increases.
D) All of the above.

12) Suppose a 95% confidence interval for µ turns out to be (1,000, 2,100). Give a definition of what it 12)
means to be "95% confident" as an inference.
A) 95% of the observations in the sample fall in the given interval.
B) In repeated sampling, 95% of the intervals constructed would contain the population mean.
C) In repeated sampling, the population parameter would fall in the given interval 95% of the
time.
D) 95% of the observations in the entire population fall in the given interval.

13) As an aid to the establishment of personnel requirements, the director of a hospital wishes to 13)
estimate the mean number of people who are admitted to the emergency room during a 24-hour
period. The director randomly selects 64 different 24-hour periods and determines the number of
admissions for each. For this sample, X = 396 and S = 100. Which of the following assumptions is
necessary in order for a confidence interval to be valid?
A) The population sampled from has an approximate t distribution.
B) The population sampled from has an approximate normal distribution.
C) The mean of the sample equals the mean of the population.
D) None of these assumptions are necessary.

14) Private colleges and universities rely on money contributed by individuals and corporations for 14)
their operating expenses. Much of this money is put into a fund called an endowment, and the
college spends only the interest earned by the fund. A recent survey of 8 private colleges in the
United States revealed the following endowments (in millions of dollars): 60.2, 47.0, 235.1, 490.0,
122.6, 177.5, 95.4, and 220.0. Summary statistics yield X = 180.975 and S = 143.042. Calculate a 95%
confidence interval for the mean endowment of all the private colleges in the United States
assuming a normal distribution for the endowments.
A) $180.975 ± $116.621 B) $180.975 ± $94.066
C) $180.975 ± $99.123 D) $180.975 ± $119.586

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 15) A university dean is interested in determining the proportion of students who receive some sort of 15)
financial aid. Rather than examine the records for all students, the dean randomly selects 200
students and finds that 118 of them are receiving financial aid. The 95% confidence interval for is
0.59 ± 0.07. Interpret this interval.
A) We are 95% confident that between 52% and 66% of the sampled students receive some sort of
financial aid.
B) We are 95% confident that 59% of the students are on some sort of financial aid.
C) We are 95% confident that the true proportion of all students receiving financial aid is
between 0.52 and 0.66.
D) 95% of the students get between 52% and 66% of their tuition paid for by financial aid.

16) A university dean is interested in determining the proportion of students who receive some sort of 16)
financial aid. Rather than examine the records for all students, the dean randomly selects 200
students and finds that 118 of them are receiving financial aid. If the dean wanted to estimate the
proportion of all students receiving financial aid to within 3% with 99% reliability, how many
students would need to be sampled?
A) n = 1,503 B) n = 1,784 C) n = 1,844 D) n = 1,435

17) When determining the sample size necessary for estimating the true population mean, which factor 17)
is not considered when sampling with replacement?
A) the allowable or tolerable sampling error
B) the population size
C) the level of confidence desired in the estimate
D) the population standard deviation

18) When determining the sample size for a proportion for a given level of confidence and sampling 18)
error, the closer to 0.50 that is estimated to be, the sample size required
A) is smaller. B) is not affected.
C) is larger. D) can be smaller, larger or unaffected.

19) The head librarian at the Library of Congress has asked her assistant for an interval estimate of the 19)
mean number of books checked out each day. The assistant provides the following interval
estimate: from 740 to 920 books per day. If the head librarian knows that the population standard
deviation is 150 books checked out per day, and she asked her assistant for a 95% confidence
interval, approximately how large a sample did her assistant use to determine the interval
estimate?
A) 4 B) 11 C) 125 D) 13

20) The head librarian at the Library of Congress has asked her assistant for an interval estimate of the 20)
mean number of books checked out each day. The assistant provides the following interval
estimate: from 740 to 920 books per day. If the head librarian knows that the population standard
deviation is 150 books checked out per day, and she asked her assistant to use 25 days of data to
construct the interval estimate, what confidence level can she attach to the interval estimate?
A) 99.7% B) 95.4% C) 99.0% D) 98.0%

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

21) A prison official wants to estimate the proportion of cases of recidivism. Examining the 21)
records of 250 convicts, the official determines that there are 65 cases of recidivism. A 99%
confidence interval for the proportion of cases of recidivism would go from ________ to
________.

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 22) As an aid to the establishment of personnel requirements, the director of a hospital wishes 22)
to estimate the mean number of people who are admitted to the emergency room during a
24-hour period. The director randomly selects 64 different 24-hour periods and
determines the number of admissions for each. For this sample, X = 396 and S = 100.
Estimate the mean number of admissions per 24-hour period with a 95% confidence
interval.

23) As an aid to the establishment of personnel requirements, the director of a hospital wishes 23)
to estimate the mean number of people who are admitted to the emergency room during a
24-hour period. The director randomly selects 64 different 24-hour periods and
determines the number of admissions for each. For this sample, X = 396 and S = 100. Using
the sample standard deviation as an estimate for the population standard deviation, what
size sample should the director choose if she wishes to estimate the mean number of
admissions per 24-hour period to within 1 admission with 99% reliability?

A quality control engineer is interested in the mean length of sheet insulation being cut automatically by machine. The
desired mean length of the insulation is 12 feet. It is known that the standard deviation in the cutting length is 0.15 feet. A
sample of 70 cut sheets yields a mean length of 12.14 feet. This sample will be used to obtain a 99% confidence interval for the
mean length cut by machine.

24) The critical value to use in obtaining the confidence interval is ________. 24)

25) The confidence interval goes from ________ to ________. 25)

26) Suppose the engineer had decided to estimate the mean length to within 0.03 with 99% 26)
confidence. Then the sample size would be ________.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

27) True or False: The confidence interval indicates that the machine is not working properly. 27)

28) True or False: The confidence interval is valid only if the lengths cut are normally distributed. 28)

After an extensive advertising campaign, the manager of a company wants to estimate the proportion of potential customers
that recognize a new product. She samples 120 potential consumers and finds that 54 recognize this product. She uses this
sample information to obtain a 95% confidence interval that goes from 0.36 to 0.54.

29) True or False: This interval requires the assumption that the distribution of the number of people 29)
recognizing the product has a normal distribution.

30) True or False: 95% of the time, the proportion of people that recognize the product will fall between 30)
0.36 and 0.54.

31) True or False: It is possible that the true proportion of people that recognize the product is between 31)
0.36 and 0.54.

32) True or False: It is possible that the true proportion of people that recognize the product is not 32)
between 0.36 and 0.54.

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Answer Key
Testname: CH8

1) TRUE
2) FALSE
3) TRUE
4) FALSE
5) FALSE
6) C
7) D
8) C
9) B
10) C
11) D
12) B
13) D
14) D
15) C
16) B
17) B
18) C
19) B
20) A
21) 0.189 to 0.331
22) 396 ± 24.9793 or 371.0207 µ 420.9793
23) n = 166
Note: The answer is computed using Z = 2.575 from Table E.2 or Z = 2.5758293 using PHStat.
24) 2.58
25) 12.09 to 12.19
26) 165.8724, which rounds up to 166
Note: The answer is computed using Z = 2.575 from Table E.2 or Z = 2.5758293 using PHStat.
27) TRUE
28) FALSE
29) FALSE
30) FALSE
31) TRUE
32) TRUE