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One one-sided
Question
Max Score
10
10
10
page.
10
10
TOTAL
50
Your Score
Question 1 (10 marks) Research concerning purchasing habits at the grocery store suggests
that impulse buys make up 60% of all purchases. Suppose 100 customers are selected at
random.
(a) Let X be the number of customers who make an impulse purchase out of the 100
randomly selected customers. Find the mean and variance of X.
Solution varp =
p(1p)
n
.6(.4)
100
X
n.
= .0024
(c) find the probability that at most one customer makes an impulse purchase.
Solution
100
100
0 (.4)
++
100
99
1 (.6)(.4)
Question 2 (10 marks) Let X1 , . . . , X16 be a random sample from the N (, 2 ) distribution
with = 5. The sample mean is 4.8 and the sample standard deviation is s = .5967
=
(a) Give the sampling distribution of X
X1 +...+X16
16
N (5, 2 )
Solution X
16
5.2)
(b) Assume 2 = 4 is known. Find P (X
Solution
5.2) = P (
P (X
n(X )
4(5.2 5)
) = P (Z .4) = .6554
5.2)
(c) Assume 2 is unknown. Find P (X
Solution
n(X )
4(5.2 5)
P (X 5.2) = P (
Solution a = p 1.23
p(1p)
n
= 0.284408
Question 4 (10 marks) Parrot Jungle Island is a roadside attraction in Miami, Florida,
featuring tropical birds, crocodiles, and over 2000 varieties of plants and flowers. A new
advertising campaign was developed to attract more out-of-state visitors. In a random
sample of 270 visitors, 189 were area residents.
(a) Find the sample proportion of visitors who were area residents.
Solution: p=189/270=0.7; n
p = 189 5, n(1 p) = 81 5
(b) Find a 99% confidence interval for the true proportion of visitors who were area
residents.
Question 5 (10 marks) According to the U.S. Fire Administration, approximately 25,000
fires are caused by fireworks each year in the United States. Despite numerous public
warnings against the use of fireworks, the home property damage due to these fires is
enormous. In a random sample of 25 fires due to fireworks, the resulting mean property
damage (in dollars) was 860.75 with a standard deviation 350.50. Assume the underlying
distribution of property damage due to these fires is normal.
(a) Find a 99% confidence interval for the true mean property damage due to a fire caused
by fireworks.
Solution: 860.75+2.7969*350.5/5=1056.813
860.75-2.7969*350.5/5= 664.6873
(b) What is the bound on the error of estimation in part (a)?
Solution: B=2.7969*350.5/5=196.0627
(c) What is the width of a 95% confidence interval for the true mean property damage
due to a fire caused by fireworks?