UNITY UNIVERSITY TBH DEPARTMENT OF MANAGEMENT

Managerial Statistics Assignment: Statistical Inference

Instruction: Read the resources provided so far and solve the following problems showing all
the necessary steps clearly and fully.
1. There are totally five sales associates at Nyala Motors. The five associates and the
number of cars they sold last week are:
Sales Associate Paulos Chuchu Jerry Tariku Fatiyah
Cars Sold 8 6 4 10 6
A. Develop sampling distribution of sample means by taking a sample of 2 sales
associates randomly without replacement
B. Show how the mean of the sampling distribution of the sample means are equal with
that of the population mean.
C. Show how the standard deviation of the sampling distribution of the sample means
(standard error) is equal with that of the population standard deviation divided by the
square root of the random sample size. N.B.: Use the finite population correction
factor to adjust
D. For each sample listed, calculate the sampling error of the mean.
2. A company manufactured totally 6 television sets (A, B, C, D, E and F) on a given day
and these television sets were inspected for being good or defective; results are as
follows.
A. Develo
TV Sets A B C D E F
p
Inspection result Good Good Defective Defective Good Good
sampling distribution of sample proportions by taking a sample of 5 TV sets randomly
without replacement
B. Show how the mean of the sampling distribution of the sample proportions are equal
with that of the population proportion.
C. Show how the standard deviation of the sampling distribution of the sample
proportions (standard error) is equal with that of the square root of the (population
proportions (P & Q) multiplied divided by random sample size). N.B.: Use the finite
population correction factor to adjust
D. For each sample listed, calculate the sampling error of the proportion.

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UNITY UNIVERSITY TBH DEPARTMENT OF MANAGEMENT
3. According to one survey, it takes a mean of 330 minutes for taxpayers to prepare, copy,
and electronically file a tax form. This distribution of times follows positively skewed
distribution and the standard deviation is 80 minutes. Consumer watchdog agency selects
a random sample of 40 taxpayers.
A. What is the mean and standard error of the sampling distributions of sample
means in this example?
B. What is the shape of the sampling distribution of the sample means?
C. What is the likelihood the sample mean is between 310 and 320 minutes?
D. The fastest 3% of the electronic tax reporting sample mean time is below which
time in minutes?
4. DHL makes deliveries of a large number of products to its customers. Suppose it is known
that 85% of all the orders it receives from its customers are delivered on time. Suppose a
random sample of 100 orders are selected;
A. What is the mean and standard error of the sampling distributions of sample
proportions in this example?
B. What is the shape of the sampling distribution of the sample proportions?
C. What is the likelihood the sample proportion of orders delivered on time will be
less than 0.87?
D. The central 68.26% of the sample proportions are between which two sample
proportions?
5. A machine produces components, which have a standard deviation of 1.6 cm in length. A
random sample of 64 parts is selected from the output and this sample has a mean
length of 90 cm. The customer will reject the part if it is either less than 88cm or more
than 92cm.
A. Find the point estimate for the mean length of all components produced.
B. Find out the 95% confidence interval for mean length of all components
produced.
C. Does the 95% confidence interval for the true mean length of all the
components produced ensure acceptance by the customer?
6. Suppose 1600 of 2000 union members sampled said they plan to vote for the proposal to
merge with a national union.

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UNITY UNIVERSITY TBH DEPARTMENT OF MANAGEMENT
A. Find the point estimate for the proportion of union members that approve the
merger.
B. Develop the 98% confidence interval for the proportion of union members that
approve the merger.
C. Union bylaws state that at least 75% of all members must approve for the merger
to be enacted. Does the 98% confidence interval for the proportion of union
members that approve the merger ensure the merger to be enacted?
7. A firm has appointed a large number of dealers all over the country to sell its bicycle; it is
interested in knowing the average sales per dealer. A random sample of 25 dealers is
selected for this purpose, the sample mean is birr 50,000 and sample standard deviation
is 20,000. The population of sales is approximately normal. Construct an interval estimate
with 99 % confidence level.
8. In a survey, 220 people out of 400, when asked to identify their major source of news
information, stated that their major source was television news. How large a sample
would be necessary to estimate the population proportion with a margin of error of 0.05
at 95 percent confidence?
9. A hospital wants an estimate of the mean time that a doctor spends with each patient in
the OPD. How large a sample should be taken if the desired margin of error is 2 minutes
a t a 90 % confidence level, assuming a population standard deviation of 8 minutes?
10.The manufacturer of the Horizon truck tire claims that the mean mileage the tire can be
driven before the tread wears out is 60,000 miles. Assume the mileage wear follows the
normal distribution and the standard deviation of the distribution is 5,000 miles. Comet
Truck Company bought 48 tires and found that the mean mileage for its trucks is 59,500
miles. Is Comet’s experience different from that claimed by the manufacturer at the .05
significance level?
Required: Use both the critical value method and p-value method to test the hypothesis
11.A labor union claims “40% of those persons who retired from an industrial job before the
age of 60 would return to work if a suitable job were available” 74 persons out of the 200
sampled said they would return to work. Can we conclude that the proportion returning
to work is different from (either above or below) 0.40?
Required: Test the hypothesis with 2% significance level.

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UNITY UNIVERSITY TBH DEPARTMENT OF MANAGEMENT
12.Each patient at a hospital is asked to evaluate the service at the time of discharge.
Recently there have been several complaints that resident physicians and nurses on the
surgical wing respond too slowly to the emergency calls of senior citizens compared to
other patient groups. The administrator of the hospital asked the quality assurance
department to investigate. After studying the problem, the quality assurance department
collected the following sample information.

Patient type Smaple mean Sample Sample

standard deviation Size
Senor Citizens 5.5 Minutes 0.40 minuets 50
Other 5.3 Minutes 0.30 minutes 100

Required: At the 0.01 significance level, is the response time longer for the senior
citizens, emergencies?
A. Conduct hypothesis testing for the differences in the population means based on
the two independent samples.
B. What is the p-value in this problem? Interpret it.
13.A company is considering installing new machines to assemble its products. It is
considering two types of machines but it will buy only one type. It selected 8 assembly
workers and asked them to use these two types of machines to assemble products. The
following table gives the time taken (in minutes) to assemble one unit of the product on
each type of machine for each of these 8 workers. Assume that the population of paired
differences has a normal distribution.
Machine I 23 26 19 24 26 22 20 18
Machine II 21 24 23 25 24 25 24 23
Required:
Conduct hypothesis test for the differences of the two population means based on the
paired observations of the dependent samples at 5% significance level, if the mean
time taken to assemble a unit of the product is different for the two types of
machines.