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Confidence Interval Assignment

The document discusses confidence intervals and surveys. It provides examples of calculating confidence intervals from sample data and interpreting what confidence intervals mean about population parameters. It also discusses factors like sample size, margin of error, confidence levels, and assumptions that underlie statistical analysis of sample data. Key points include: - Larger sample sizes provide more accurate representations of populations than smaller samples. - A 95% confidence interval for a sample mean indicates there is a 95% chance the population mean falls within that range. - Increasing the confidence level, like from 95% to 98%, requires a larger minimum sample size to maintain the same margin of error.

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Mohammed Ashfaque Jamal
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225 views3 pages

Confidence Interval Assignment

The document discusses confidence intervals and surveys. It provides examples of calculating confidence intervals from sample data and interpreting what confidence intervals mean about population parameters. It also discusses factors like sample size, margin of error, confidence levels, and assumptions that underlie statistical analysis of sample data. Key points include: - Larger sample sizes provide more accurate representations of populations than smaller samples. - A 95% confidence interval for a sample mean indicates there is a 95% chance the population mean falls within that range. - Increasing the confidence level, like from 95% to 98%, requires a larger minimum sample size to maintain the same margin of error.

Uploaded by

Mohammed Ashfaque Jamal
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 – As the sample is coming from a population it should have a fixed
percentage.

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 – As we take the sample there are no such data which doesn’t respond to
the question.

III. Larger surveys convey a more accurate impression of the population than
smaller surveys.
Ans- TRUE – As we increase the size of the sample, we come close to the population.

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 - 9000


B. The parameter of interest – Kodak compact camera
C. The sampling frame -
D. The sample size - 225
E. The sampling design – Random Person Survey
F. Any potential sources of bias or other problems with the survey or sample
YES, there is a chance if the persons attending the survey is giving intentional
rating based on there past experience or only the satisfied persons are attending
the survey.

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 – As a sample coming from the population is a true replication and by
calculating parameters in sample, we can directly apply it on the population.

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- as we know the percentage, we have to consider the range out of 95%
Confidence Interval to predict the number of moviegoers

III. The 95% Confidence-Interval for μ only applies if the sample data are nearly
normally distributed.
Ans – TRUE – the central limit theorem states that the data coming is from Normal
Distribution

4. What are the chances that ?

A. ¼
B. ½ - There is a chance of 50% that the sample mean is greater than population
mean.
C. ¾
D. 1

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?

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 ( Only 95% of the books are in between 205 & 295).

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


Ans – Incorrect ( For a sample text 95% interval it was 205 & 295).

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 ( Its not necessary that for the another sample also it will be the
same).
E. We can be 95% confident that the range 160 to 340 holds the population
mean.
Ans – Incorrect (95% confidence interval doesn’t deal with the number exactly)

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- n=number of employers,
Assume, P=0.5, q=0.5 ,Margin of Error=0.04 For 95% confidence interval, the critical
value Z= 1.96
ME = Z * √ pq/ n
0.04 = 1.96 * √ 0.5∗0.5/ n
n= 3.84∗ 0.5∗0.5/ 0.0016
= 0.9604/0.0016 = 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 - 0.04 = 2.326 * √ 0.5∗0.5/ n
n= 5.4102∗ 0.5∗0.5/ 0.0016
n= 845 minimum samples

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