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Topics: Confidence Intervals

The document discusses topics related to confidence intervals including true/false statements about sample sizes, surveys, and confidence intervals. Some key points: 1) Larger sample sizes provide more accurate representations of populations than smaller samples. 2) A survey of PC Magazine readers to rate electronics found the sample was over 9,000 readers, with 225 rating a Kodak camera as 7.5 average. 3) A 95% confidence interval of $50-$110 for store purchases means $100 is a plausible population mean.

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rushikesh wadekar
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120 views4 pages

Topics: Confidence Intervals

The document discusses topics related to confidence intervals including true/false statements about sample sizes, surveys, and confidence intervals. Some key points: 1) Larger sample sizes provide more accurate representations of populations than smaller samples. 2) A survey of PC Magazine readers to rate electronics found the sample was over 9,000 readers, with 225 rating a Kodak camera as 7.5 average. 3) A 95% confidence interval of $50-$110 for store purchases means $100 is a plausible population mean.

Uploaded by

rushikesh wadekar
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 DOC, PDF, TXT or read online on Scribd
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Topics: Confidence Intervals

1. For each of the following statements, indicate whether it is True/False. If false,


explain why.

I. The sample size of the survey should at least be a fixed percentage of the
population size in order to produce representative results.

ANS :- true.

II. The sampling frame is a list of every item that appears in a survey sample,
including those that did not respond to questions.

ANS :- false.

III. Larger surveys convey a more accurate impression of the population than
smaller surveys.

ANS : - true.

2. PC Magazine asked all of its readers to participate in a survey of their satisfaction


with different brands of electronics. In the 2004 survey, which was included in an
issue of the magazine that year, more than 9000 readers rated the products on a scale
from 1 to 10. The magazine reported that the average rating assigned by 225 readers
to a Kodak compact digital camera was 7.5. For this product, identify the following:

A. The population
B. The parameter of interest
C. The sampling frame
D. The sample size
E. The sampling design
F. Any potential sources of bias or other problems with the survey or sample

ANS:-
A) All the readers who rated which is 9000.

B) Rating of Kodak compact digital camera (7.5)

C) All the readers 9000

D) 225

E) Readers rated the products on a scale from 1 to 10 .

F) It is possible that only those who who were particularly please or who are
unpleased with the product participated in survey which can make the result unreliable.
3. For each of the following statements, indicate whether it is True/False. If false,
explain why.

I. If the 95% confidence interval for the average purchase of customers at a


department store is $50 to $110, then $100 is a plausible value for the
population mean at this level of confidence.

ANS:- TRUE

II. If the 95% confidence interval for the number of moviegoers who purchase
concessions is 30% to 45%, this means that fewer than half of all moviegoers
purchase concessions.

ANS :- False, we have direction but we can not 100% biased on that data.

III. The 95% Confidence-Interval for μ only applies if the sample data are nearly
normally distributed.

ANS :- FALSE , there is no need of sample data should be normally distributed , but the
sample size must be greater than 30.

4. What are the chances that ?

A. ¼
B. ½
C. ¾
D. 1
ANS :- It has 50% 50% chances that mean of sample can be greater than mean of
population.

5. In January 2005, a company that monitors Internet traffic (WebSideStory) reported


that its sampling revealed that the Mozilla Firefox browser launched in 2004 had
grabbed a 4.6% share of the market.

I. If the sample were based on 2,000 users, could Microsoft conclude that
Mozilla has a less than 5% share of the market?

II. WebSideStory claims that its sample includes all the daily Internet users. If
that’s the case, then can Microsoft conclude that Mozilla has a less than 5%
share of the market?

ANS :- 1. ) h0 = mozilla has more than 5% share of the market ; h0 > 5%


ha = Mozilla has less than 5% share of the market ; ha < 5%

Apply one sample one tail Z-test :-

z-score = (0.045 – 0.05) / np.sqrt ( ( 0.05 * (1-0.05) )/2000 )


z-score = - 0.82078

from z table we get the value of 1.96


so we will go with the null hypothesis
so we conclude that Mozilla has more than5% share of the market.

2. ) WebSideStory claims that its sample includes all the daily Internet users.
That means 4.6 % share of the market shows for entire population.
So Microsoft conclude that that Mozilla has a less than 5% share of the market.

6. A book publisher monitors the size of shipments of its textbooks to university


bookstores. For a sample of texts used at various schools, the 95% confidence
interval for the size of the shipment was 250 ± 45 books. Which, if any, of the
following interpretations of this interval are correct?

A. All shipments are between 205 and 295 books.

ANS:- INCORRECT

B. 95% of shipments are between 205 and 295 books.

ANS :- INCORRECT

C. The procedure that produced this interval generates ranges that hold the
population mean for 95% of samples.

ANS :- CORRECT

D. If we get another sample, then we can be 95% sure that the mean of this
second sample is between 205 and 295.

ANS :- INCORRECT

E. We can be 95% confident that the range 160 to 340 holds the population
mean.
ANS :- INCORRECT

7. Which is shorter: a 95% z-interval or a 95% t-interval for μ if we know that σ =s?

A. The z-interval is shorter


B. The t-interval is shorter
C. Both are equal
D. We cannot say

ANS:- A. The z-interval is shorter.

Questions 8 and 9 are based on the following: To prepare a report on the economy,
analysts need to estimate the percentage of businesses that plan to hire additional
employees in the next 60 days.

8. How many randomly selected employers (minimum number) must we contact in


order to guarantee a margin of error of no more than 4% (at 95% confidence)?

A. 600
B. 400
C. 550
D. 1000
ANS :- z-value of 95% confidence is 1.96
Stats.norm.ppf (0.975)
Margin of error = 0.04
ME = z* sqrt ((p*q)/n)

We have to find the n


Hence,
N = p*q / ME^2 * z
Assume p= 0.5 and q = 0.5

Then n = (05*0.5)/ (0.04*0.04) * 1.96^2 = (0.25/0.0016) * 3.8416


= 600.25
Option A is correct which is 600.

9. Suppose we want the above margin of error to be based on a 98% confidence level.
What sample size (minimum) must we now use?

A. 1000
B. 757
C. 848
D. 543

ANS :- z-value of 98% confidence is 2.326

N = (0.25/0.0016) * 5.41 = 1.352 / 0.0016 = 845.35


Option C is correct which is 848
.

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