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Practic Problems Chapter 10

This document contains 4 statistics problems: 1) Constructing a 95% confidence interval for the proportion of insurance claims exceeding $3,500 based on sample data. 2) Calculating the minimum sample size needed to estimate an unknown proportion within 0.06 error and 95% confidence. 3) Determining the confidence level that the error of an estimate of fish pollution is at most 0.065. 4) Performing a hypothesis test at the 0.05 significance level to determine if the observed proportion of pumps needing repair is greater than the claimed 30%.

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Sabir Ali
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68 views1 page

Practic Problems Chapter 10

This document contains 4 statistics problems: 1) Constructing a 95% confidence interval for the proportion of insurance claims exceeding $3,500 based on sample data. 2) Calculating the minimum sample size needed to estimate an unknown proportion within 0.06 error and 95% confidence. 3) Determining the confidence level that the error of an estimate of fish pollution is at most 0.065. 4) Performing a hypothesis test at the 0.05 significance level to determine if the observed proportion of pumps needing repair is greater than the claimed 30%.

Uploaded by

Sabir Ali
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 PDF, TXT or read online on Scribd
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Problem 1

In a random sample of 200 claims filed against an insurance company writing collision insurance on cars,
84 exceeded $3,500. Construct a 95% confidence interval for the true proportion of claims filed against
this insurance company that exceed $3,500, using the large sample confidence interval formula.

Problem 2

What is the size of the smallest sample required to estimate and unknown proportion of customers who
would pay for an additional service, to within a maximum error of 0.06 with at least 95% confidence?

Problem 3

Among 100 fish caught in a large lake, 18 were inedible due to the pollution of the environment. If we
use 18/100=0.18 as an estimate of the corresponding true proportion, with what confidence can we
assert that the error of this estimate is at most 0.065.

Problem 4

A manufacturer of submerisible pumps claims that at most 30% of the pumps requires repairs within the
first 5 years of operation. If a random sample of 120 of these pumps includes 47 which required repairs
within the first 5 years, test the null hypothesis of the proportion equal to 0.30 and the against the
alternative hypothesis of p greater than 0.30 at the 0.05 level of significance.

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