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One Population Parameter Estimation

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Do Huyen Thy Dong
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10 views2 pages

One Population Parameter Estimation

Uploaded by

Do Huyen Thy Dong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Estimating µ and p – Worksheet Solution

Question 1

A random sample of 250 teenagers was taken to find the average number of concerts attended over the past year.
The mean of the sample was calculated to be 6.26. It is known that the population standard deviation is 3. Estimate
with 99% confidence the mean number of concerts attended annually by all teenagers

n = 250
𝑥̅ = 6.26
=3
α = 0.01 z0.005 = 2.575

𝑥̅ ± 𝑧 ⁄ → 6.26 ± 2.575 × → 6.26 ± 0.489 → 5.771 < µ < 6.749


√ √

Thus we can say that we are 99% confident that the the mean number of concerts attended annually by all teenagers
is between 5.771 and 6.749.

Question 2

A real-estate company appraised the market value of 20 homes in a prestigious district of Sydney, and found a
sample mean of $1 236 500, with a sample standard deviation of $53 000. Estimate the mean appraisal value of all
homes in this area, with 95% confidence. Assume the appraised values are normally distributed.

n = 20 d.f = n – 1 = 20 – 1 = 19
𝑥̅ = 1236500
s = 53000
α = 0.05 t0.025, 19 = 2.093

𝑥̅ ± 𝑡 ⁄ → 1236500 ± 2.093 × →
√ √
1236500 ± 24804.5 → 1211695.50 < µ < 1261304.50

The mean appraisal value of all homes in this area, with 95% confidence is between $1,211,696 and $1,261,304.

Question 3

A factory produces a component used in manufacturing computers, each of which is tested prior to shipment to
determine whether or not it is defective. In a random sample of 1000 units, 50 were found to be defective. Estimate,
with 95% confidence, the true proportion of defective components produced by this factory

n = 1000
x = 50 Hence 𝑝̂ = = 0.05 and 𝑞 = 1 − 𝑝̂ = 1 − 0.05 = 0.95
α = 0.05 z0.025 = 1.96

× . × .
𝑝̂ ± 𝑧 ⁄ → 0.05 ± 1.96 → 0.05 ± 0.014 → 0.036 < p < 0.064

The 95% confidence interval for the true proportion of defective components produced by this factory is from 3.6%
to 6.4%.

STATISTICS FOR BUSINESS – ONE POPULATION PARAMETER ESTIMATION


Sample Size Determination – Worksheet Solution
Question 1

A national survey research firm has past data that indicates that the time a teenager spends on the phone per day
has a standard deviation of 25 minutes. How large a sample should be taken if the firm wants a 0.90 probability of
estimating the mean time a teenager spends on a phone daily to within 2 minutes or less?

 = 25 minutes B = 2 minutes α = 0.10 z0.05 = 1.645

⁄ . ×
𝑛≥ = = 422.82 Thus a sample size of 423 should be taken

Question 2

A new food product is to be test marketed by giving a free sample to randomly selected customers and asking them
to state whether or not they like the product. With a 99% confidence level and a target sampling error of 0.02 or
less, what sample size would you recommend if preliminary estimates indicate that approximately 65% of the
individuals in the population will like the product?

p = 0.65 B = 0.02 α = 0.01 z0.005 = 2.575

⁄ .
𝑛≥ × 𝑝 ×𝑞 = .
× 0.65 × 0.35 = 3771.17

Thus a sample size of 3772 should be taken

Question 3

a) A manager wants to estimate the average amount of time her workers take to approach a customer in the
store. After observing several workers, she noted that the shortest time taken was 2 minutes, while the
longest time taken was 12 minutes. How large a sample of workers should she take if she wishes to estimate
the mean time approach a customer to within 20 seconds, with 99% confidence?

Range = 720 – 120 = 600 seconds Thus we can estimate  = = 150 seconds
B = 20 seconds α = 0.01 z0.005 = 2.575

⁄ . ×
𝑛≥ = = 372.97

Thus a sample size of 373 should be taken


b) A market analyst wants to estimate the proportion of shoppers who visit the store, will buy a new type of
liquid detergent. How large a sample should he take in order to estimate the proportion to within 0.04, with
90% confidence?

p is unknown so we will take p = 0.5 B = 0.04 α = 0.10 z0.05 = 1.645

⁄ .
𝑛≥ × 𝑝 ×𝑞 = .
× 0.5 × 0.5 = 422.82

Thus a sample size of 423 should be taken

STATISTICS FOR BUSINESS – ONE POPULATION PARAMETER ESTIMATION

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