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Confidence Intervals

This document presents 16 problems related to confidence intervals. The problems involve sample data to estimate population parameters such as means, variances, and proportions. It is asked to determine whether the conclusions of the samples support certain hypotheses or if the observed differences are statistically significant, and to calculate sample sizes and confidence levels.
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0% found this document useful (0 votes)
14 views10 pages

Confidence Intervals

This document presents 16 problems related to confidence intervals. The problems involve sample data to estimate population parameters such as means, variances, and proportions. It is asked to determine whether the conclusions of the samples support certain hypotheses or if the observed differences are statistically significant, and to calculate sample sizes and confidence levels.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA

Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page1 of 11


Statistics
CONFIDENCE INTERVALS WORKSHOP
1 .] Media Metrix and Jupiter Communications collected data on the time adults and teenagers spend online during a month.
From the study that concluded that, on average, adults spend more time online than teenagers. Suppose that a follow-up study
sampled 25 adults and 30 adolescents. The standard deviations of online time over one month were 94min and 58min,
respectively. Do the sample results support the conclusion that adults have greater variance in online time than adolescents?
2 .] The national average sales price for single-family homes is U$181,900, with dt of U$33,500. In a new condominium of 150
houses, a sample of sales of 40 single-family houses is taken and a sample mean of U$166,400 is observed. Determine whether
the sample data support the conclusion that the population average sales price for new single-family homes is less than the
national average. With α = 0.01, what is your conclusion?
3 .] Perfect Figure, is a female modeling salon that specializes in weight reduction programs. In the table we see a sample of
clients before and after a preliminary program.
Weight
Custome Before After
r 1 140 132
2 160 158
3 210 195
4 148 152
5 190 179
6 170 164
1 ) With a confidence of 95% and maximum estimation error of 3Kg, are these sample sizes sufficient to determine whether
the efficiency of the program is significant or not? b) If the maximum allowable error is set at 5Kg and a sample of size 15 is
taken, what is the maximum confidence in the estimate? c) For a sample size of 25 and confidence of 85%, what will be the
maximum error?
4 .] The data shows the weight in grams of tea bags prepared with a machine and taken from a batch of 100. Determine a 95%
interval for the average weight of the bags in a lot of 100 bags.
2.95/3.45/3.50/3.75/3.48/3.26/3.33/3.20/3.16/3.20/3.22/3.38/3.90/3.36/3.25/3.28/3.12
5 .] In an article on commercial travel, Semana stated that based on samples of 82 and 97 hotels from two hotel chains, the
average cost of a night was $145,120 and $159,850 per night, respectively. The population variances of each chain are assumed
to be $20,000 and $18,000 squared, respectively. You must determine which hotel chain your company will use.
6 .] The useful life of a sample of 18 video cameras is 6 years on average, with a standard deviation of 0.75 years. A sample
lifespan of 30 televisions had a standard deviation of 2 years. Determine if the variance of the useful life of the TVs is greater
than that of the cameras.
7 .] Shell Oil office workers were asked which work schedule they found most attractive: working 8 hours a day for five days or
10 hours a day for four days. a) With a confidence of 90% and maximum allowed error of 0.1, what should be the sample size to
estimate the proportion of office workers in favor of 8 hours? b) If the maximum allowed error is set at 0.075 and a sample of
size 80 is taken, what is the maximum confidence in the estimate? c) For a sample size of 135 and confidence of 95%, what will
be the maximum error?
8 .] 26 mutual funds, each with US$500,000 invested in them, are selected for comparison. Of the 26 funds, 12 are geared
toward short-term income and produced an average return of $10,098.60 with a dt of U$430.20. The remaining funds are long-
term investment, generating an average profit of U$9870.60, with a dt of U$538.40. Calculate and interpret the 88% confidence
interval for the difference between the population average returns. There is no reason to believe that the variances are equal.
9 .] Many large companies use the services of consulting companies in the employee selection process. To test the benefit of
such consultants, IBM recently compared 100 employees hired through its own recruiting division with 150 employees hired
less formally. The results showed that 55% of those in the first group did not advance beyond the intermediate management
level in 7 years of work, while the corresponding figure for the second group was 60%. What can you conclude about the
difference in the effectiveness of these two recruiting methods?
10 .] To prepare project quotes, Constructoras Sol, SA, assumes that the idle time of its workers does not exceed 15% of their
available time. Consequently, for a normal 8-hour shift, the average idle time per worker should be 72 minutes or less with dt
20min/d. A sample of 30 workers had idle time of 80min/d. What is your conclusion?
11 .] To compare means of daily sales revenue, a retailer selects a 12-week sample size at one store, with average revenue of
$456,000 and a dt of $35,000 and a 15-week sample from another store, with a mean of $554,000 and a dt of $68000. With a
confidence level of 93% and a maximum estimation error of $9,500, are these sample sizes sufficient to determine whether the
difference is significant or not? b) If the maximum allowable error is set at $6300 and a common sample size of 45 is taken,
what is the maximum confidence in the estimate? c) For a common sample size of 70 and a confidence of 90%, what will be the
maximum error?
12 .] Market research, S. A., bases its rates on the hypothesis that the questions in a telephone survey can be answered in an
average time of 15 minutes or less. If longer survey time is necessary, an additional fee applies. Suppose that in a sample of 35
lectures we obtain a mean of 17min and a dt of 4min. Is the additional fee justified?
Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA
Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page2 of 11
Statistics
13 .] Data showing the weight in grams of tea bags prepared with two machines is seen in the table below and appeared in
Quality Progress magazine. Determine if there is a significant difference between the average weights of the bags obtained with
the two machines.
Machine 1 3.23 3.03 3.64 3.50 3.39 3.57 3.40 3.30 3.53 3.03 3.56 3.42 3.14
3.45 3.10 3.31 3.20 2.99 3.17 3.56 3.21 3.42 3.49 3.37 3.59 3.46 3.36 3.26 3.32
3.33 3.40 3.59 3.15 3.00 3.65 3.11 3.67 3.58 3.11 3.54 3.37 3.29
Machine 2
3.16 3.52 3.17 3.20 3.52 3.66 3.43 3.06 3.39 3.62 3.41 3.46 3.06

With a confidence level of 95% and a maximum estimation error of 0.78g, are these sample sizes sufficient to determine
whether the difference is significant or not? b) If the maximum allowable error is set at 0.5g and a common sample size of 45 is
taken, what is the maximum confidence in the estimate? c) For a sample size of 30 and confidence of 90%, what will be the
maximum error?
14 .] Shell Oil office workers were asked which work schedule they found most attractive: working 8 hours a day for five days
or 10 hours a day for four days. With α=0.01. In a sample of 105 office workers, it was observed that 67 of them preferred the
10-hour-a-day schedule. Does the indicated preference between the two options have statistical significance?
15 .] In an article on commercial travel, Semana stated that based on samples of 82 and 97 hotels from two hotel chains, the
average price of a night was $145,120 and $159,850 per night, respectively. The population variances of the prices of each
chain are assumed to be $20,000 and $18,000 squared, respectively. You must determine which hotel chain your company will
use. At a 99% confidence level, and with a maximum estimation error of $8000, what should be the common size of the two
samples? b) If the maximum allowable error is set at $5000 and samples of common size 100 are taken, what is the maximum
confidence in the estimate? c) For a common sample size of 70 and a confidence level of 95%, what will be the maximum error
in the estimate?
16 .] Most Americans believe that corporate profits are distributed inequitably. Suppose that in a sample of 40 inhabitants of
the Midwest it was found that 27 considered that the profits of companies are distributed unequally, while in a sample of 70
inhabitants of the center 23 agreed. a) With a confidence of 90% and maximum estimation error of 0.05, are these sample sizes
sufficient to determine if there are differences in perception between the two areas? b) If the maximum allowed error is set at
0.02 and samples of equal size of 60 are taken, what is the maximum confidence in the estimate? c) For a common sample size
of 55 and a confidence level of 99%, what will be the maximum error in the estimate?
17 .] The Cartagena Chamber of Commerce announces that residential land is available at an average cost of $50000000 or less
per lot and with a dt of $5000000. We wish to test the validity of this assertion. a) With a confidence level of 90% and
maximum allowed error of $6500000, what should be the sample size? b) If the maximum allowable error is set at 7500000
and a sample of size 35 is taken, what is the maximum confidence in the estimate? c) For a sample size of 50 and a confidence of
99%, what will be the maximum error in the estimate?
18 .] A company studies the delivery times of raw material suppliers. In general, she is satisfied with Supplier A, and will keep
him only if, after subjecting him to a strategic training program, his average delivery time is equal to or less than the current
one. Suppose that completely equal order lead time samples before and after training give the following lead time
characteristics (days):
Order 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Before 24 29 15 23 11 9 19 26 8 28 7 25 26 127 16 7 24 22 11 21 25 21 10 28 10
After 19 27 24 12 13 29 10 20 25 23 8 14 27 137 15 26 22 12 17 28 17 15 27 28 29

1 ) With a confidence of 97% and maximum estimation error of 3 days, are these sample sizes sufficient to determine whether
to change providers? b) If the maximum allowable error is set at 5 days and a sample of size 30 is taken, what is the maximum
confidence in the estimate? c) For a sample size of 25 and a confidence level of 95%, what will be the maximum error in the
estimate?
19 .] Sample test scores for a statistics group with different teachers resulted in the attached information.
Student 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Teacher 1 1.9 0.7 3.7 4.3 0.8 1.5 2.6 4.8 1.3 2.7 3.0 3.8 3.3 2.6 2.9
Master 2 0.7 4.9 3.1 3.7 2.2 1.1 2.0 1.5 4.6 3.9 4.4 4.3 4.2 2.4 1.5

Determine if this information is sufficient to conclude that the mean scores for the two teachers are different.
20 .] Media Metrix, Inc., monitors Internet users in 7 countries: Australia, Great Britain, Canada, France, Germany, Japan and
the United States. According to recent measurement figures, American users rank first in Internet usage with an average of 180
hours per month. Suppose that in a study involving 145 Canadian Internet users, the mean was 170.8h/m and the dt It was
19.2h/m. Determine whether the sample data supports the conclusion that Canadian Internet users have a lower average than
the American average. With α = 0.01. What is your conclusion?
Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA
Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page3 of 11
Statistics
21 .]Burger King sponsored what it assumed was the biggest giveaway in fast food history by starting “FreeFriDay” on January
2, 1998. 30 people who went to any of the 7,400 Burger King locations received a free order of fries. The basis of Burger King's
promotion was a national taste test where fries from Burger King and McDonald's were compared. Of the customers who
received the taste test, 19 expressed a preference for Burger King fries. a) If each free test and processing of the information
costs $10,000, we want a confidence level of 98% and a maximum allowed error of 0.077. What should be the budget for the
research? b) If the maximum allowable error is set at 0.077 and we have a budget of $5670000, what is the maximum
confidence in the estimate? c) For a budget of 7000000 and a confidence of 90%, what will be the maximum error in the
estimate?
22 .]The data shows the weight in grams of tea bags prepared with a machine and taken from a batch of 100. a) With a
confidence of 96% and maximum allowed error of 6.5min/d. What should be the sample size to estimate the average weight?
b) If the maximum allowable error is set at 1.5g and a sample of size 35 is taken, what is the maximum confidence in the
estimate? c) For a sample size of 50 and confidence of 92%, what will be the maximum error?
23 .]Many financial decisions of companies are based on cash flows. An old machine that your company is currently using
generated an average positive net cash flow of $15,600 with a dt of U$2300 for a period of 18 weeks. A new machine used by
the competition provided the respective values of $16,100 and $3,400 over a 13-week period. Based on this analysis, what
would you recommend?
24 .]Eléctrica Medina manages a fleet of trucks to provide electrical service to the construction industry. The average monthly
maintenance cost has been U$75 per month per truck with a dt of U$30. a) With a confidence of 96% and maximum allowed
error of U$6.5, what should be the sample size? b) If the maximum error allowed is set at U$7.5 and a sample of size 55 is taken,
what is the maximum confidence in the estimate? c) For a sample size of 20 and a confidence level of 99%, what will be the
maximum error in the estimate?
25 .]In finance, an efficient market is defined as one that allocates funds to the most productive use. Business Week recently
surveyed financial analysts. Of the 1,000 analysts who worked for private production companies in their effort to sell their
firms' securities, 42 of the 110 randomly chosen considered the markets to be efficient, while of the 1,310 analysts who worked
for brokerage houses that assist such sales 71 were chosen and only 31 accepted that the markets were efficient. With 95%
confidence, is there a difference in the proportion of types of analysts who accept market efficiency?
26 .]Market research, S. A., bases its rates on the hypothesis that the questions in a telephone survey can be answered in an
average time of 15 minutes or less. If longer survey time is necessary, an additional fee applies. Suppose that in a sample of 35
lectures a dt is obtained of 4min. a) With a confidence of 96% and maximum allowed error of 3min, what should be the sample
size to estimate the average time? b) If the maximum allowed error is set at 3.7min and a sample of size 50 is taken, what is the
maximum confidence in the estimate? c) For a sample size of 50 and a confidence of 93%, what will be the maximum error?
27 .]Burger King conducted a service satisfaction test among its 7,400 restaurants, applying several instruments and
determining a consolidated score that classified the restaurant as compliant or non-compliant. To do this, he took a sample of
500 of his restaurants and found that, of them, 432 were classified as compliant. Determine the IC of 95% for the proportion of
non-compliant restaurants owned by the franchise.
28 .]In a Nielsen survey we want to estimate the average number of hours of watching TV per family, in a small town of 5000
inhabitants, it is known that it has a dt of 2.5 h/d. a) To estimate with a confidence of 92% and maximum error of 0.75h/d the
average daily number of hours of watching TV, what should be the size of your sample? b) If the maximum allowed error is set
at 1h/d and a sample of size 300 is taken, what is the maximum confidence in the estimate? c) For a sample size of 230 and a
confidence of 98%, what will be the maximum error in the estimate?
29 .]Fortune magazine asked Yankelovich Parthers to research her 4,800 subscribers in Colombia to find out their thoughts on
divorce and the contribution of a wife who works towards her husband. In response to the statement: “In a divorce from a
hitherto stable marriage, in which the husband works and the wife does not perform paid work, she should be entitled to half of
the assets accumulated during the marriage,” 279 out of 300 women selected men agreed, and 105 of 300 selected men agreed.
What is your conclusion?
30 .] An airline's promotion to travelers is based on the assumption that they use a laptop on evening business trips rather
than daytime ones. An American Express online survey found that 355 of 546 night travel agents use a laptop, while 221 of 587
day travelers use one. a) With a confidence of 90% and maximum error of 0.05, are these sample sizes sufficient to determine if
there are differences in preferences between the two types of travelers? b) If the maximum allowable error is set at 0.02 and
samples of equal size of 600 are taken, what is the maximum confidence in the estimate? c) For a common sample size of 500
and confidence of 99%, what will be the maximum error in the estimate?
31 .] A plumbing contractor wants to estimate the difference in the proportion of construction jobs that require a second visit
to the construction site before completing the work. The contractor tries to deliver his work to the plumbing company with the
lowest level of repeat visits. Of the 150 jobs completed by Alpha Plumbing Corporation, he chooses 50 and finds that 39
required a second visit, while of the 80 completed by Omega Plumbing Group he chooses 15 and finds that he made a second
visit 67% of the time. What can you conclude about the difference in the proportions of jobs requiring a second effort? Which
company should the contractor use?
32 .] One issue of Money discussed the efforts made by a car sales company to determine whether a certain type of vehicle
could withstand wear and tear rather than a second type of vehicle. An industrial administrator who recently graduated from
Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA
Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page4 of 11
Statistics
the U of C was hired to determine if there is a difference in the average lifespan. Knowing that σ 1 = 7.8month and ^ 2 =
10.4month. At a confidence level of 99%, and with a maximum estimation error of 8 months, what should be the common size
of the two samples? b) If the maximum allowed error is set at 5 months and samples of common size 40 months are taken, what
is the maximum confidence in the estimate? c) For a common sample size of 30 months and a confidence level of 95%, what
will be the maximum error in the estimate?
Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA
Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page5 of 11
Statistics
33 .] The Cartagena Chamber of Commerce announces that residential land is available at an average cost of $50000000 or less
per lot and with a dt of $5000000. Using a 95% confidence level, we wish to test the validity of this assertion by taking a sample
of 32 properties; An average of $5,200,000 per lot was calculated. What is your conclusion?
34 .] The International Air Transport Association surveyed business travelers to determine their evaluation of international
airports. The maximum possible score was 10. Suppose that a simple random sample of 50 travelers were asked to rate the
Miami airport, and another simple random sample of 48 travel agents were asked to rate the Los Angeles airport. The answers
were the following.
Miami 10 7 10 3 8 8 2 4 7 10 6 7 6 4 2 6 6 2 1 9 6 6 5 3
6
1m 1 7 74 3 4 76 3 4 2 2 9 4 4 9 4 1 3 9 8 4 3 9
7 Angels 1 8 5 7 3 6 10 4 5 4 10 4 2 5 7 5 2 9 3 4 3 10
1 75 6 9 4 3 10 6 3 6 7 3 5 1 6 5 4 3 6 4 6 10 6 8 7
1 ) With a confidence of 96% and maximum allowed error of 2.0, what should be the common sample size to answer this? b) If
the maximum allowed error is set at 2.5 and a common sample size of 35 is taken, what is the maximum confidence in the
estimate? c) For a common sample size of 50 and a confidence level of 99%, what will be the maximum error in the estimate?
35 .] To compare means of daily sales revenue, a retailer selects a 12-week sample in a store, with average revenue of
$456,000 and a dt of $35,000 and a 15-week sample from another store, with a mean of $554,000 and dt of $68000. What is
concluded?
36 .] A toilet soap manufacturing process should produce quantities that do not vary greatly from the standard. That is why a
variance greater than 9, in a set of lots, means that there is a mismatch. A sample of 10 lots resulted in the following quantities
of bars of soap. The population is assumed to be normal. 108/118/120/122/119/113/124/122/120/123. Do the results of
this sample indicate that the manufacturing process is working correctly?
37 .] 6 economists working for the government are asked to forecast the inflation rate for 2012. 8 economists working in
private companies receive the same task. The 6 government economists report rates of 4.2/5.1/3.9/4.7/4.9/5.8. The 8 private
ones project rates of 5.7/6.1/5.2/4.9/4.6/4.5/5.2/5.5. Is the difference in average forecasts significant?
38 .] In a study of driving practices in Strathcona County (Alberta, Canada), it was found that 48% of drivers did not stop at
intersections with stop signs on county roads. Suppose that you want to carry out a follow-up study a) With a confidence of
80% and maximum allowed error of 0.02, what should be the sample size to estimate the proportion of offending drivers? b) If
the maximum allowed error is set at 0.0858 and a sample of size 800 is taken, what is the maximum confidence in the estimate?
c) For a sample size of 835 and a confidence of 98%, what will be the maximum error in the estimate?
39 .] In a study of driving practices in Strathcona County, Canada, it was found that 48% of drivers did not stop at intersections
with stop signs on county roads. Suppose that a follow-up study conducted two months later found that 360 of 800 drivers
failed to stop at intersections with stop signs on county roads. Has the proportion of non-compliant drivers changed? What is
your conclusion?
40 .] The average price of a one-carat H color, VS2 clarity diamond among the 87 establishments that sell it in the USA is
U$4000. A jeweler from the central region of E. OR. He calls his contacts in New York's diamond district to see if the average
price of similar diamonds differs from $4,000. The jeweler agrees to gather price data from 14 contacts in New York City.
Suppose that for the sample of 14 we have that the average price is U$4120 and that the dt It is U$275. With α = 0.05. What is
your conclusion?
41 .] Car rentals, in a sample of eight cities, appear below (The Wall Street Journal, December 12, 1997).
City Daily car rental (dollars)
SUCCESS!!!...........................................................................................................................................................11
Matthew 6:33.......................................................................................................................................................11

Find a 99% confidence interval for the population variance value.


42 .] According to the National Association of Automobile Dealers, the average price of the 250,000 used cars sold in 2014 is
$20,345,768 with dt of 7000000. A manager of a used car agency in the city of Cartagena wants to verify the veracity of this
information. a) With a confidence of 96% and maximum allowed error of $2,800,000, what should be the sample size to
estimate the average price? b) If the maximum allowable error is set at $3,580,000 and a sample size of 12,000 is taken, what is
the maximum confidence in the estimate? c) For a sample size of 15,000 and a confidence level of 97%, what will be the
maximum error?
43 .] Samples of 1,545 men and 1,691 women were used to compare the amount of housework done by women and by men in
marriages with double economic contributions. The study indicated that 67.5% of men felt that the division of household tasks
was fair, and that 60.8% of women felt that the division of tasks was fair (Journal of Sociology, September 1994). Is the
proportion of men who felt that the division of domestic labor was fair greater than the corresponding proportion of women?
44 .] An administrative team was asked to solve 10 quality control problems in their work. A second team was asked to solve
the same problems. The times each team needed to solve them appear below. With a level of 90%, what can you conclude about
the solution capacity of the two teams?
Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA
Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page6 of 11
Statistics
Problem 1 2 3 4 5 6 7 8 9 10
Team 1 12 15 14 21 19 12 25 18 17 20
Team 2 25 26 21 23 31 19 35 28 27 26

45 .] Seven Asian nations reported an average increase in per capita income from the previous year of US$121.20, with a s.d. of
U$23.30. 9 European countries reported corresponding figures of US$111.10 and US$19.10. a) With a confidence of 95% and
maximum estimation error of U$0.9, are these sample sizes sufficient to determine whether the difference is significant or not?
b) If the maximum allowed error is set at U$1 and a common sample size of 15 is taken, what is the maximum confidence in the
estimate? c) For a common sample size of 25 and a confidence level of 99%, what will be the maximum error in the estimate?
46 .] In a new condominium of 150 houses, it is desired to take a sample of sales that allows establishing the real average price
of the same, knowing that the dt of the values of the 150 houses is U$33,500, a) To estimate with a confidence of 92% and
maximum error of U$5,000 the real average price, what should the sample size be? b) If the maximum error allowed is set at
U$10,000 and a sample of size 50 is taken, what is the maximum confidence in the estimate? c) For a sample size of 30 and a
confidence of 95%, what will be the maximum error in the estimate?
47 .] To prepare quotes for construction projects, Constructoras Sol, SA, assumes that the idle time of its workers does not
exceed 15% of their available time. Consequently, for a normal 8-hour shift, the average idle time per worker should be 72
minutes or less per day with dt 20min/d. a) With a confidence of 96% and maximum allowed error of 6.5min/d, what should
be the sample size to corroborate this? b) If the maximum allowed error is set at 7.5 and a sample of size 35 is taken, what is
the maximum confidence in the estimate? c) For a sample size of 50 and a confidence of 92%, what will be the maximum error
in the estimate?
48 .] Media Metrix, Inc., monitors Internet users in 7 countries: Australia, Great Britain, Canada, France, Germany, Japan and
the United States. According to recent measurement figures, American users rank first in Internet usage with an average of 180
hours per month. Suppose that in a study involving 145 Canadian Internet users, the dt It was 19.2h/m. a) With a confidence of
96% and maximum allowed error of 20h/m, what should be the sample size to estimate the average time? b) If the maximum
allowable error is set at 18h/m and a sample of size 120 is taken, what is the maximum confidence in the estimate? c) For a
sample size of 150 and a confidence of 97%, what will be the maximum error in the estimate?
Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA
Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page7 of 11
Statistics
49 .] An airline's promotion to travel agents is based on the assumption that travelers use a laptop on evening business trips
rather than daytime ones. An American Express online survey found that 355 of 546 night travel agents use a laptop, while 221
of 587 day travelers use one. Can the claim that preferences are different be rejected?
50 .] The Department of Transportation reported that Amtrack trains have a higher on-time percentage record in City A than
in City B. Suppose that a study found that 330 of 400 Amtrack train arrivals were on time in city A and that 400 of 500 arrivals
were on time in city B. a) With a confidence of 99% and maximum estimation error of 0.01, are these sample sizes sufficient to
determine if there are differences in the percentage of on-time arrivals? b) If the maximum allowable error is set at 0.02 and
samples of equal size of 300 are taken, what is the maximum confidence in the estimate? c) For a common sample size of 500
and a confidence level of 99%, what will be the maximum error in the estimate?
51 .] A production line operates with an average filling weight of 16oz per container in batches of 500 units with dt of 0.8oz.
Overfilling or underfilling are serious problems, and the production line must stop if a production batch occurs with any of
these problems. A quality inspector takes a sample of 30 items in each batch and based on the results makes the decision to
stop the production line for adjustments or leave it working. With 95% confidence, if a sample mean of 16.32 ounces were
found, what stock would you recommend? If it were 15.82 ounces, what stock would you recommend?
52 .] The Gallup organization administered a survey to 135 of the 1,350 people in a company. One question of the study was:
did you plan to have this job or do you have it due to chance or lack of other alternatives? The Gallup poll found that 41% of
respondents have the jobs they want. What can you conclude? Use 99%. Describe your conclusion.
53 .] According to the National Association of Automobile Dealers, the median price of the 250,000 used cars sold in 2014 is
$2,034,5768. A manager of a used agency in the city of Cartagena reviewed a sample of 13,000 sales from 2014, the average
price of the sample was $18567342 and the dt of the sample was $7800000. What is your opinion?
54 .] In a survey, some of the 1,805 senior executives of companies in Mamonal (Cartagena) were asked their opinions about
the economic outlook for the future. One of the questions was: “Do you think there will be an increase in the number of full-time
employees at your company over the next 12 months?” 44 executives out of 100 answered yes. What can you conclude?
55 .] Callaway Golf Company's new titanium alloy ERC golf club was called “illegal” because it promises tee shots that exceed
the USGA standard, with a dt of 5yd. Golf Digest aims to compare current tee shot distances with the ERC club and a USGA
approved club, which has a dt 3.8yd reach. At a 95% confidence level, and with a maximum estimation error of 2yd, what
should be the common size of the two samples? b) If the maximum allowable error is set at 2.5yd and samples of a common size
of 20 shots are taken, what is the maximum confidence in the estimate? c) For a common sample size of 30 shots and a
confidence level of 95%, what will be the maximum error in the estimate?
56 .] A study was done to determine whether aerobic exercises reduce a person's heart rate during rest, and by examining ten
volunteers before and after following such a program for six months, their heart rate, in beats per minute , gave the following
records:
Volunteer 1 2 3 4 5 6 7 8 9 10
Before 73 77 68 62 72 80 76 64 70 72
Determine if this After 68 72 64 60 71 77 74 60 64 68 information is sufficient
to conclude that aerobic exercises meet their objective.
57 .] The Gallup organization administered a survey to 135 of the 1,350 people in a company. One question of the study was:
Did you plan to have this job or do you have it due to chance or lack of other alternatives? A presample of 10 workers found
that 4 of the participants have the jobs they want. a) With a confidence of 92% and maximum allowed error of 0.1, what should
be the sample size to estimate the proportion of compliant workers? b) If the maximum allowed error is set at 0.093 and a
sample of size 160 is taken, what is the maximum confidence in the estimate? c) For a sample size of 135 and a confidence of
92%, what will be the maximum error in the estimate?
58 .] Burger King wants to carry out a satisfaction test with service among its 7,400 restaurants, applying several instruments
and determining a consolidated classification that classified the restaurant as compliant or non-compliant. a) With a confidence
of 92% and maximum allowed error of 0.07, what should be the sample size to estimate the proportion of compliant
restaurants? b) If the maximum allowed error is set at 0.0858 and a sample of size 560 is taken, what is the maximum
confidence in the estimate? c) For a sample size of 835 and a confidence of 92%, what will be the maximum error in the
estimate?
59 .] In a study carried out by Chanel One Network, it was revealed that teenagers spend an average of U$5.72 per visit to fast
food restaurants such as McDonald's, Burger King and Wendy's. In a follow-up study, in a sample of 102 adolescent visits to fast
food restaurants in Chicago, a sample mean of US$5.98 and a s.d. of U$1.24. With α = 0.05, determine whether the sample data
support the conclusion that Chicago adolescents have an average population expenditure of more than US$5.72 per visit to fast
food restaurants. What is your conclusion?
60 .] In the manufacture of bearings, the variability of its components is critical. Large variances in bearing dimensions cause
failure and rapid wear of the bearings. Production standards specify a maximum variance of 0.0001 when dimensions are
measured in inches. A sample of 15 bearings has a standard deviation of 0.014 inch. Determine whether the sample indicates
that the maximum acceptable variance has been exceeded.
61.] The estimated daily costs for an executive traveling to various major cities are shown below. A single room in a 4-star
Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA
Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page8 of 11
Statistics
hotel, drinks, breakfast, taxis are included.
City Daily expenses(U$) City Daily expenses(U$)
bangkok 242.87 Madrid 283.56
Bogota 260.93 Mexico City 212.00
Bombay 139.16 Milan 284.08
Cairo 194.19 Paris 436.72
Dublin 260.76 Rio de Janeiro 240.87
Frankfurt 355.36 Seoul 310.41
Hong Kong 346.32 Tel Aviv 223.73
Johannesburg 165.37 toronto 181.25
Lime 250.08 warsaw 238.20
london 326.76 Washington, D.C. 250.61
Find a 90% confidence interval for the variance of expenses.
62 .] A sample of the Dow Jones Industrial Average, determined at different times in the first 5 days of November and the first
5 days of December 1997, was as follows.
December: 7493/8066/7525/8209/7760/7842/7499/7943/7555/7846.
November: 7690/8071/7668/ 8055/7600/8159/7516/7828/7711/8109.
With a confidence level of 95%. Determine if the values of the Dow Jones Industrial Average for the two periods are equal. If the
variances are equal. What is your conclusion?
63 .] The average price of a one-carat H color, VS2 clarity diamond among the 87 establishments that sell it in the USA is
U$4000 with dt of U$480. A jeweler from the central region of E. OR. He calls his contacts in New York's diamond district to see
if the average price of similar diamonds differs from $4,000. a) With a confidence of 92% and maximum allowed error of
U$280, what should be the sample size to estimate the average price? b) If the maximum allowable error is set at $258 and a
sample of size 22 is taken, what is the maximum confidence in the estimate? c) For a sample size of 35 and a confidence of 97%,
what will be the maximum error in the estimate?
64 .] The accounting department analyzes the variance of weekly unit costs reported by two production departments. A
sample of 16 cost reports from each of these departments indicates cost variances of U$2.3 and U$5.4 (thousands),
respectively. Is this information sufficient to conclude that the two production departments are different in terms of unit cost
variance?
65 .] The grades of 352 students who completed a financial accounting course have a standard deviation of 0.940. The grades
of 73 students who dropped out of the same course have a standard deviation of 0.797. Do these data indicate that there is a
difference between the grade variances for students who completed the course and students who dropped out?
66.] Below are two samples of estimated returns per share (U$), for 1998 and another for 2002.
Company Performance Company Performance
AT&T ('98)
2.92 DELL ('02)
4.44
Caterpillar 4.65 MAC 5.86
Eastman Kodak 4.27 General Motors 6.23
Exxon 3.09 TEXACO 3.96
Hewlett-Packard 3.57 DO 2.42
IBM 7.04 Burger King 1.76
McDonald's 2.64 OIL Company 5.52
Wal-Mart 1.74 FORD 7.42
gmc 6.47
Wendy's 3.10
With annual performance data. What conclusion can be drawn about the variances of returns?
67 .] In a Nielsen survey, the estimate was obtained that the average number of hours of watching TV per family, in a small
town of 5000 inhabitants, is 7.25 hours per day with a dt of 2.5 h/d. Suppose someone who disagrees conducts a survey with
300 families and the average number of daily hours they obtained is 6.8. Use α=0.01. What is your conclusion?
68 .] The average time to locate flight information on major airline websites is typically two to three minutes. Representative
sample results of the times for Delta Airlines and Northwest Airlines are shown below. Delta: s=0.8min; m=22. Northwest:
s=1.1min; n=20. a) With a confidence of 98% and maximum estimation error of 0.5min, are these sample sizes sufficient to
determine whether the difference is significant or not? b) If the maximum allowable error is set at 1min and a common sample
size of 35 is taken, what is the maximum confidence in the estimate? c) For a common sample size of 45 and a confidence of
89%, what will be the maximum error in the estimate?
69 .] Burger King sponsored what it assumed was the biggest giveaway in fast food history by starting “FreeFriDay” on January
2, 1998. 500 people who went to any of the 7,400 Burger King locations received a free order of fries. The basis of Burger King's
promotion was a national taste test where fries from Burger King and McDonald's were compared. Of the customers who
received the taste test, 285 expressed a preference for Burger King fries. With α=0.01, what is your conclusion? Do you think
Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA
Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page9 of 11
Statistics
the statistics from the national taste test helped Burger King management decide to implement the “Free Potato Day”
campaign? Explain your answer.
70 .] A recent broadcast, Dinero discussed the efforts made by a car sales company to determine whether a certain type of
vehicle could withstand wear and tear more than a second type of vehicle. An industrial administrator who recently graduated
from the U of C was hired to determine if there is a difference in the average lifespan. It collects data on the average number of
months the vehicle is in service before the first service is needed — —
repair, and discover the following: vehicle1: X 1 = 36.3month, m=82veh; vehicle2: X 1 = 39.3month, n=73veh. Knowing that 0,
= 7.8month and 02 = 10.4month. At a confidence level of 98%. What is your conclusion?
71 .] The Asian economy collapsed during the last months of 1997. Investors anticipated that the decline of that economy
would have a negative effect on the profits of companies in the United States. during the last quarter of 1997. The following
data sample presents earnings per share during the last quarter of 1996 and the last quarter of 1997. What conclusion do you
reach?
Company Earnings 1996 Earnings 1997
Athletic Richfield 1.16 1.17
Balchem Corp. 0.16 0.13
Black & Decker Corp. 0.97 1.02
Dial Corp. 0.18 0.23
DSC Communications 0.15 -0.32
Eastman Chemical 0.77 0.36
Excel Communications 0.28 -0.14
Federal Signal 0.40 0.29
Ford Motor Company 0.97 1.45
GTE Corp 0.81 0.73
ITT Industries 0.59 0.60
Kimberly-Clark 0.61 -0.27
Minnesota Pussycat & Mfr. 0.91 0.89
Procter & Gamble 0.63 0.71

72 .] In a study carried out by Chanel One Network, it was revealed that teenagers spend an average of U$5.72 per visit to fast
food restaurants such as McDonald's, Burger King and Wendy's. In a follow-up study, a dt was found in a sample of 102
adolescent visits to fast food restaurants in Chicago of U$1.24. a) With a confidence of 97% and maximum allowed error of
U$1.33, what should be the sample size to estimate the average expense? b) If the maximum error allowed is set at U$1.8 and a
sample of size 120 is taken, what is the maximum confidence in the estimate? c) For a sample size of 150 and a confidence level
of 99%, what will be the maximum error in the estimate?
73 .] In a study carried out by Cornell University on the salary differences between men and women, it was revealed that one
of the reasons that men's salaries are higher than those of women is that men tend to accumulate more years of experience
than women (Business Week, August 28, 2000). Suppose that the following sample summaries show the years of experience for
each group. MEN: S=5.2 years; n=100; WOMEN: n=100; S=3.8 years. At the 95% level, is there a difference between the two
variances?
74 .] An urban planning group wants to estimate the difference between the mean family incomes in two areas of a large
metropolitan area. Independent random samples of families residing in the two areas produced the following results.
ZONE 1: x1=U$15700; S=U$700; m=8. ZONE 2: x2=U$14500; S=U$850; n=12. Assuming equal variances, 98% confidence,
and maximum estimation error of U$2,500, are these sample sizes sufficient to determine whether the difference is significant
or not? b) If the maximum allowed error is set at U$3000 and a common sample size of 25 is taken, what is the maximum
confidence in the estimate? c) For a common sample size of 30 and a confidence level of 99%, what will be the maximum error
in the estimate?
75 .] Eléctrica Medina manages a fleet of trucks to provide electrical service to the construction industry. The average monthly
maintenance cost has been U$75 per month per truck with a dt of U$30. One more of 40 trucks has an average maintenance
cost of U$82.50 monthly. Management wants to determine if the average monthly maintenance cost has increased. With a 95%
level. What is your conclusion?
76 .] The Oppenheimer capital appreciation fund, a savings fund, provides an average annual return of 17.6% over a 5-year
period. Suppose the following data indicate the annual returns in each of the last 5 years: 10.8, 34.2, 4.2, 9.4, and 29.4. The
variance of annual returns can be used as a measure of risk, and if it is greater it indicates more variation and consequently
more uncertainty in returns. It was reported that 10 aggressive savings funds, similar to Oppenheimer, have a variance of
30.2% squared. With the data of the 5 annual returns. Say whether the variance of the returns for Oppenheimer is 300.2% with
a 95% confidence level.
77 .] A production line operates with an average filling weight of 16oz per container in batches of 500 units with dt of 2.8oz.
Overfilling or underfilling are serious problems, and the production line must stop if a production batch occurs with any of
Teacher: JUAN MIGUEL MARTÍNEZ BUENDÍA
Mathematician - Eng. Environmental - Eng. Civil - Ms, c. Page10 of 11
Statistics
these problems. A quality inspector takes a sample in each batch and based on the results makes the decision to stop the
production line for adjustments or leave it working. a) With a confidence of 95% and maximum error allowed of 1oz, what
should be the sample size? b) If the maximum allowable error is set at 1.5oz and a sample of size 35 is taken, what is the
maximum confidence in the estimate? c) For a sample size of 50 and a confidence of 99%, what will be the maximum error in
the estimate?
78 .] The Rector of the U of C wishes to estimate the difference in the average time required by two organizations to decide on
scholarship applications submitted to them. If it is known that the dt They are 12.6 weeks for the National Science Foundation
and 16.8 weeks for Health and Human Services. On the other hand, 14 scholarship applications to the FNC took an average of
45.7 weeks, and 12 applications to SHS took an average of 32.9 weeks. With a confidence level of 90%, what is decided? If one
of the two takes 2 weeks longer than the other, the rector plans to submit your applications to the fastest one, exclusively.
Should you do it?
79 .] Using a 9-day sample over the past six months, a dentist has had the following numbers of patients:
22/25/20/18/15/22/24/19/26. If the number of patients seen per day is normal, would you reject the statement that the
variance in the number of patients seen per day is 10?
80 .] In the following database, the grades of the first and second midterms of a group of 47 Statistics II students are presented,
in list order. The objective of this problem is to investigate if there is evidence to confirm whether the average grades are
different.
Cut 1 1.9 4.8 1.6 3.6 1.7 2.4 2.7 0.6 2.8 0.5 1.8 4.0 3.8 2.1
2.8 1.5 0.6 1.0 2.7 3.5 3.7 3.4 0.7 3.6 1.1 3.3 4.2 4.4 2.5 2.9 2.8 3.2
Court 2 3.6 4.3 0.8 1.9 2.5 4.7 3.4 0.8 5.0 3.2 3.2 4.2 2.2 2.3
4.3 4.3 3.7 2.3 4.7 0.9 1.3 2.3 3.6 1.4 2.0 0.8 3.3 3.4 0.7 3.2 4.0 2.7

a) With a confidence of 99% and maximum estimation error of 1.0, are these sample sizes sufficient to determine if there was a
change from one cut to another? b) If the maximum allowable error is set at 0.8 and a sample of size 10 is taken, what is the
maximum confidence in the estimate? c) For a sample size of 15 and a confidence level of 99%, what will be the maximum error
in the estimate?
81.] In a survey, some of the 1,805 senior executives of large companies in Mamonal (Cartagena) were asked their opinions
about the economic outlook for the future. One of the questions was: “Do you think there will be an increase in the number of
full-time employees at your company over the next 12 months?” 4 executives out of 10 answered yes. a) With a confidence of
92% and maximum allowed error of 0.05, what should be the sample size to estimate the proportion of optimistic executives?
b) If the maximum allowed error is set at 0.093 and a sample of size 400 is taken, what is the maximum confidence in the
estimate? c) For a sample size of 535 and a confidence of 93%, what will be the maximum error in the estimate?

SUCCESS!!!
Matthew 6:33

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