Module 4 Practice Problems - Solutions

Unit 4.1 – Sampling Distributions of Sample Means

1. A study found that the average length of a hospital stay in the United States is 9 days with
standard deviation of 3 days. Assume a random sample of 100 patients is obtained.

(a) What is the mean of the sampling distribution of sample means for random samples of
size 100?

Mean of sample means: μ x =μ=9

(b) What is the standard deviation of the sampling distribution of sample means for samples
of size 100?

σ 3
Standard deviation (standard error) of sample means: σ x = = =0.30
√ n √100
(c) A random sample has a mean of 9.4 days. What is the Z-score of this sample mean?

Z = (9.4 – 9) / 0.30 = 1.33

(d) What is the probability that we obtain a sample mean greater than 9.4 days?

P( x > 9.4) = P(Z > 1.33) = 0.092 = 9.2%

(e) Would it be unusual to obtain a random sample of size 100 with a sample mean of 8 days
or less? Explain.8

We can find the Z-score of the sample mean of 8 days. Z = (8 – 9) / 0.3 = -3.33.
This Z-score is very unusual so a sample mean of 8 days or less is very unusual.

2. The scores of students on the ACT college entrance examination in a recent year had a
normal distribution, with mean µ = 18.6 and a standard deviation of σ = 5.9.

(a) What is the probability that a single student randomly chosen from all those taking the
test scores 21 or higher?

The Z-score of the test score is: Z = (21 – 18.6) / 5.9 = 0.41.

P(Z > 0.41) = 0.3409 ≈ 34%.

(b) Now take a simple random sample of 50 students who took the test. What are the mean
and standard deviation of the sample means for random samples of 50 students?
 Mean of sample means: μ x =μ=18.6
σ 5.9
Standard deviation (standard error) of sample means: σ x = = =0.834
√ n √50
(c) What is the probability that the mean score of these students is 21 or higher?

Z = (21 – 18.6) / 0.834 = 2.88. P(Z > 2.88) = 0.002 ≈ 0.2%

(d) What is the probability that the mean score of these students is less than 18?

Z = (18 – 18.6) / 0.834 = -0.72. P(Z < -0.72) = 0.236 ≈ 23.6%

Unit 4.2 - Confidence Intervals for a Population Mean

3. The board of a major credit card company seeks to estimate the mean wait time for customers
for service calls. A manager at the company obtains a random sample of 22 wait times and
finds the mean wait time of the sample to be 5.32 minutes with a standard deviation of 1.45
minutes. Assume the population of wait times is normally distributed. Construct a 95%
confidence interval for the mean wait time for all customers.

(a) Are the normality criteria met?

Yes, the population is assumed to be normal and the sample is random.

(b) What is the T-distribution critical value?

Tc = 2.080

(c) Calculate the margin of error of a 95% confidence interval for 𝝁.

E=Zc⋅s/ √n
E = 2.08 * 1.45 / SQRT(22) = 0.643

(d) Construct a 95% confidence interval for 𝝁.

5.32 ±0.643
(5.32 – 0.643, 5.32 + 0.643) = (4.677, 5.963)

(e) Interpret the confidence interval.

We are 95% confident that the mean wait time for all callers is between 4.677
minutes and 5.963 minutes.
4. A hardware manufacturer produces bolts used to assemble various machines. Assume that
the diameter of bolts produced by this manufacturer are normally distributed. A quality
control technician finds that a random sample of 15 bolts has a mean of 5.11 centimeters and
a standard deviation of 0.1 centimeters. Construct a 90% confidence interval for the mean
diameter of bolts produced by the manufacturer.

(a) Are the normality criteria met?

Yes, the population is assumed to be normal and the sample is random.

(b) What is the T-distribution critical value?

Tc = 1.761

(c) Calculate the margin of error of a 90% confidence interval for 𝝁.

E = 1.761 * 0.1 / SQRT(15) = 0.045

(a) Construct a 90% confidence interval for 𝝁.

5.11 ± 0.045
(5.11 – 0.045, 5.11 + 0.045) = (5.065, 5.155)

(b) Interpret the confidence interval.

We are 90% confident that the mean diameter of all bolts is between 5.065 cm and
5.155 cm.

5. You want to rent an unfurnished one-bedroom apartment in Boston next year, and are
interested in estimating the mean monthly rent for all one-bedroom apartments in the city.
The mean monthly rent for a random sample of 18 apartments advertised in the local
newspaper is $1,400, and the sample standard deviation is $220. Assume monthly rents for
one-bedroom apartments are normally distributed. Construct a 99% confidence interval for
the mean monthly rent of all one-bedroom apartments in Boston.

(a) Are the normality criteria met?

Yes, the population is assumed to be normal and the sample is random.

(b) What is the T-distribution critical value?

Tc = 2.898

(a) Calculate the margin of error of a 99% confidence interval for 𝝁.

E = 2.898 * 220 / SQRT(18) = 150.3

 (b) Construct a 99% confidence interval for 𝝁.

1400 ± 150.3
(1400 – 150.3, 1400 + 150.3) = (1249.7, 1550.3)

(c) Interpret the confidence interval.

We are 99% confident that the mean monthly rent of all one-room bedroom
apartments in Boston next year is between $1249.70 and $1550.30.

Unit 4.3 & 4.4 – Hypothesis Tests for a Population Mean

For each hypothesis test:

(a) Determine the null and alternative hypothesis. Specify the meaning of the population
parameter.
(b) Compute the T-standardized test statistic and specify the degrees of freedom.
(c) Determine the P-value.
(d) Make a decision about the hypotheses and interpret the decision regarding the underlying
question. Use a 5% level of significance for each test.

6. A company executive claims that the aptitude test scores of applicants who apply for a
certain job have a mean score of 500. Let’s assume that the scores are normally distributed.
You find that a random sample of 30 applicants has a mean score of 546 and a standard
deviation of 120. Is there evidence that their mean score is different from the mean that is
expected from all applicants?

Null Hypothesis: μ=500

Alt. Hypothesis: μ ≠500 (Two-Tailed Test)

The sample statistics are: x=546 , s=120 ,n=30.

Standardized Test Statistic:

546−500 46
T= = =2.099
120 21.91
√30
The T-distribution has 29 degrees of freedom. P-value = (0.022318*2) 0.045 = 4.5%

P-value < α . At the 0.05 significance level, we reject the null hypothesis and support the
alternative hypothesis.

There is sufficient evidence to conclude that the mean aptitude test score of all new
applicants is different than 500.
A. Determine the null and alternative hypothesis. Specify the meaning of the population
parameter.
 B. Compute the T-standardized test statistic and specify the degrees of freedom.
C. Determine the P-value.
D. Make a decision about the hypotheses and interpret the decision regarding the
underlying question. Use a 5% level of significance for each test.

7. The board of a major credit card company requires that the mean wait time for customer
service calls is at most 3 minutes. To make sure that the mean wait time is not exceeding the
requirement, an assignment manager tracks the wait times of 26 randomly selected calls. The
mean wait time was calculated to be 3.32 minutes with a standard deviation of 1.27 minutes.
Based on this sample, is there sufficient evidence to show that the mean wait time is greater
than 3.00 minutes? Assume the population of wait times is normally distributed.

Null Hypothesis: μ=3

Alt. Hypothesis: μ>3 (Right-Tailed Test)

The sample statistics are: x=3.32 , s=1.27 , n=26.

Standardized Test Statistic:

3.32−3 0.32
T= = =1.285
1.27 0.249
√26
The T-distribution has 25 degrees of freedom. P-value = 0.105 = 10.5%

P-value > α . At the 0.05 significance level, we fail to reject the null hypothesis and fail
to support the alternative hypothesis.

There is not sufficient evidence to conclude that the mean wait time for all customers is
greater than 3 minutes.

8. A used car dealer says that the mean price of a 2008 Honda CR-V is less than $20,500. To
test this claim, you find that a random sample of 34 similar vehicles has a mean price of
$19,950 with a standard deviation of $2255. Is there enough evidence to conclude that the
mean price of all of these vehicles is less than $20,500? Assume the population of car prices
is normally distributed.

Null Hypothesis: μ=20,500

Alt. Hypothesis: μ<20,500 (Left-Tailed Test)

The sample statistics are: x=19,950 , s=2,225 , n=34 .

Standardized Test Statistic:

19,950−20,500 −550
T= = =−1.422
2255 386.73
√34
 The T-distribution has 33 degrees of freedom. P-value = 0.082 = 8.2%

P-value > α . At the 0.05 significance level, we fail to reject the null hypothesis and fail
to support the alternative hypothesis.
There is not sufficient evidence to conclude that the mean price of all 2008 Honda CR-
Vs is less than $20,500.

9. An environmental agency claims that the mean pH level of the water in a nearby river is
greater than 6.8. A researcher randomly selects 32 water samples and measure their pH. The
sample mean is 6.85 with a standard deviation of 0.12. Is there enough evidence to support
the company’s claim? Assume the population is normally distributed.

Null Hypothesis: μ=6.8

Alt. Hypothesis: μ>6.8 (Right-Tailed Test)

The sample statistics are: x=6.85 , s=0.12, n=32.

Standardized Test Statistic:

6.85−6.8 0.05
T= = =2.38
0.12 0.021
√32
The T-distribution has 31 degrees of freedom. P-value = 0.012 = 1.2%

P-value < α . At the 0.05 significance level, we reject the null hypothesis and support the
alternative hypothesis.

There is sufficient evidence to conclude that the mean PH level of water in the lake is
greater than 6.8.