Exercise IX - Sampling Distribution and Estimation
Exercise IX - Sampling Distribution and Estimation
1. The average life of TV is known to be 20000 hours with a standard deviation of 8000 hours.
(i) What is the probability that a sample of 33 TV sets has an average life of more than
24000 hours?
(ii) What is the probability that a randomly chosen TV set has an average life of more than
24000 hours, if life in hours is normally distributed?
2. The marks of 36 students in an examination are normally distributed with an average of 58 marks
and a standard deviation of 18 marks.
(i) What is the probability that a random sample of 9 students will have an average mark
more than 70?
(ii) What is the probability that an individual student will have a mark greater than 70?
3. The posted speed limit on a highway is 55 km/hr. A random sample of 57 vehicles clocked
speeds with an average speed of 23.2 km/hr. If the standard deviation of vehicle speeds on the
highway is known to be .3 km/hr, construct a 95% confidence interval for the average speed of all
vehicles on the highway.
4. A water purification plant measures the chlorine content of water samples daily. The standard
deviation of chlorine content has been established as 1.4 mg per litre over the years and chlorine
content follows a normal distribution. Today’s 20 samples gave an average chlorine content of
4.6 mg/litre. Establish a 99%confidence interval for the average chlorine content today.
5. The income tax department recently sampled 200 returns and found the sample average tax
refund amounted to Rs. 4254.30 with a standard deviation of Rs. 1071.10. Estimate an interval in
which the average tax refund of all returns this year is likely to fall with 95% confidence.
6. From a sample of 25 buses, a city’s transport department found the average number of passengers
per km to be 4.1 with a standard deviation of 1.2 passengers per km. Construct a 99% confidence
interval for the mean number of passengers per km.
7. 12 bank tellers were sampled and it was found that they made an average of 3.6 errors per day
with a standard deviation of 0.42 error. Construct a 95% confidence interval for the average
number of errors made per day by all tellers.
8. In view of the growing concern that too many foreign students are being admitted into MBA
programs in American Universities, a random survey of 300 students across the country was
taken. The survey showed that 120 of these students were from foreign countries. Construct a
99% confidence interval for the true proportion of all foreign students in American Universities
pursuing the MBA degree.
9. A survey is planned to determine the average annual family medical expenses of the employees
of an MNC. The management wishes to be 99% confident that the sample average is within + Rs.
200 of the true average annual family medical expenses. A pilot study indicates that the standard
deviation as Rs. 500. How large a sample size is necessary?
10. In problem 8, what should be the sample size for a margin of error of .05 with a confidence of
99%? What would be the sample size if there was no idea of the true proportion?