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 Quick Check 1

The rental market in Odessa is very small with 500 units. High-priced units
are those that rent for more than $1500 / month.
Suppose you select a random sample of 30 units, 12 of which were high-
priced. Determine the 95% confidence interval for the proportion of high-
priced units

Quick Check 2
A local company uses a machine to fill containers of paint. The machine is
supposed to fill the containers to the level of 1000 ml. However, it may not
be working properly. It is known that, whether it’s working properly or not,
the standard deviation of its fill rate is 21 ml.

a)A sample of 49 contains is taken; average fill is 995 ml. Construct a 95%
confidence interval for the population mean.
What can you say about the machine?

b)A sample of 100 contains is taken and 78 of them were found to be

underfilled. Calculate the 95% confidence interval on the proportion of
those that were underfilled

Quick Check 3

The price of single bedroom apartments is approximately normal, the

mean or standard deviation are NOT known.
Based on a sample of 36 apartments you found that the sample mean is
$2100, and the sample standard deviation is $240.

a) Construct a 95% confidence interval for the population mean. Explain

The price of single bedroom apartments is approximately normal, the
mean or standard deviation are NOT known.
Based on a sample of 36 apartments you found that the sample mean is
$2100, and the sample standard deviation is $240.
a) Construct a 95% confidence interval for the population mean. Explain
what your interval means

b) Construct a 98% confidence interval. What does “98% confidence”

mean?

Quick Check 4

Based on a sample of 100 apartments you find sample mean = 2100 and
standard deviation = 240.

Would you expect a 95 % CI be wider, narrower or the same compared to

problem 3? Why?

Construct a 95% confidence interval for the population mean.

Quick Check 5

A group of investors wants to develop a chain of fast-food restaurants

In determining potential costs for each facility, they must consider, among
other expenses, the average monthly electric bill. They decide to sample
some fast-food restaurants currently operating to estimate the monthly
cost of electricity. They want to be 90% confident of their results and want
the error of the estimate to be no more than $100. They estimate that
such bills range from $600 to $2,500.

How large a sample should they take?

cost of electricity. They want to be 90% confident of their results and want
the error of the estimate to be no more than $100. They estimate that
such bills range from $600 to $2,500.

How large a sample should they take?

Quick Check 6

Recall the Gallup Poll: “Generally speaking, do you believe the death
penalty is applied fairly or unfairly in this country today?”

a) What sample size would we need to get an estimate within 2% of the

estimate of p (i.e., 𝑝 ̂=474/1009=0.47)

actual value with a 95% confidence level? Use the previous study as an

b) What sample size would we need to get an estimate within 2% of the

actual value with a 95% confidence level? be conservative in your estimate
(ie worst case scenario)
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Practice Problem 1

A restaurant group collected information on the number of meals eaten

outside the home per week by young married couples who lived in large
cities. A survey of 60 couples showed the sample mean number of meals
eaten outside the home was 2.76 meals per week, with a standard
deviation of 0.75 meals per week. Construct a 97% confidence interval for
the population mean.

Practice Problem 2

Fashion Industries randomly tests its employees throughout the year. Last
year, in the 400 random tests conducted, 14 employees failed the test.
Develop a 99% confidence interval for the proportion of applicants that fail
the test. Would it be reasonable to conclude that less than 5% of the
employees are not able to pass the random drug test?

Practice Problem 3

A random sample of 85 group leaders, supervisors, and similar personnel

at General Motors revealed that, on the average, they spent 6.5 years on
the job before being promoted. The standard deviation of the sample was
1.7 years. Construct a 95% confidence interval.

Practice Problem 4

Companies often print their corporate policies for training purposes. What
is the average length of a company's policy book? Suppose policy books are
sampled from 45 medium-sized companies. The average number of pages
in the sample books is 213, and the population standard deviation is 48.
Use this information to construct a 98% confidence interval to estimate the
mean number of pages for the population of policy books for medium-
sized companies.
Companies often print their corporate policies for training purposes. What
is the average length of a company's policy book? Suppose policy books are
sampled from 45 medium-sized companies. The average number of pages
in the sample books is 213, and the population standard deviation is 48.
Use this information to construct a 98% confidence interval to estimate the
mean number of pages for the population of policy books for medium-
sized companies.

Practice Problem 5

A regional survey of 560 employees was conducted asking whether the

employees were satisfied with the level of received IT support. Suppose
33% of employees said they were satisfied. Construct a 99% confidence
interval.

Practice Problem 6

A marketing analyst collects information on the average number of

customer arrivals within a ten-minute time period. Sample data is obtained
as 58, 32, 41, 47, 56, 80, 45, 29, 32 and 78. The analyst believes the
number of arrivals is normally distributed. Compute a 95% confidence
interval for the number of arrivals within ten-minute periods.

Practice Problem 7

Suppose a small engine manufacturer sells 1,500 lawn mowers. After

several years, 200 customers were contacted to determine at what point
the lawn mower required its first repair. Of those, 187 responded to the
survey. Among the 187 respondents, the average time to the first repair
was 5.3 years. The manufacturer believes that the standard deviation
within the population is 1.28 years. Construct a 95% confidence interval.
Practice Problem 8

A bank officer wants to determine the amount of the average total monthly
deposits per customer at the bank. He believes an estimate of this average
amount using a confidence interval is sufficient. How large a sample should
he take to be within $200 of the actual average with 99% confidence. He
assumes the standard deviation of total monthly deposits for all customers
is about $1,000.

Practice Problem 9
Suppose a production facility purchases a particular component part in
large lots from a supplier. The production manager wants to estimate the
proportion of defective parts received from this supplier. She believes the
defective proportion is no more than 0.20 and wants to be within 0.02 of
the true proportion of defective parts with a 90% level of confidence. How
large a sample should she take?
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