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# Chapter 7:

## The distribution shows no significant evidence of nonnormality.

b. Assuming normality, the unbiased and most efficient point estimator for the population
mean is the sample mean:

X
X i 1705 = 60.89
n 28
c. Assuming normality, the sample mean is an unbiased estimator of the population mean with
2
variance Var ( X ) . Also, assuming normality, the unbiased and most efficient point
n
estimator for the population variance is the sample variance, s 2 .
d. Thus, the unbiased point estimate of the variance of the sample mean:
s 2 (5.231)2
Var ( X ) .9771
n 28

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-1
7-2 Statistics for Business & Economics, 8th edition

## 7.2 a. There appears to be no evidence of nonnormality, as shown by the normal probability

plot.

b. Assuming normality, the unbiased and most efficient point estimator for the population
mean is the sample mean, X .

X
X i 2411 301.375 thousand dollars
n 8
c. Assuming normality, the sample mean is an unbiased estimator of the population mean with
2
variance Var ( X ) . Also, assuming normality, the unbiased and most efficient point
n
estimator for the population variance is the sample variance, s 2 .
s 2 8373.125
Var ( X ) 1046.64
n 8
d. The unbiased and most efficient point estimator for a proportion is the sample
proportion, p .
x 3
p 0.375
n 8

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-3

7.3 n = 10 economists forecast for percentage growth in real GDP in the next year

## Descriptive Statistics: RGDP_Ex7.3

Variable N N* Mean SE Mean TrMean StDev Variance CoefVar Sum
RGDP_Ex7.3 10 0 2.5700 0.0716 2.5625 0.2263 0.0512 8.81 25.7000

## Variable Minimum Q1 Median Q3 Maximum Range IQR

RGDP_Ex7.3 2.2000 2.4000 2.5500 2.7250 3.0000 0.8000 0.3250

## a. Unbiased point estimator of the population mean is the sample mean:

X
X i 25.7 2.57
n 10
b. The unbiased point estimate of the population variance: s 2 .0512
c. Unbiased point estimate of the variance of the sample mean
s 2 .0512
Var ( X ) .00512
n 10
x 7
d. Unbiased estimate of the population proportion: p .70
n 10

## 7.4 n = 12 employees. Number of hours of overtime worked in the last month:

a. Unbiased point estimator of the population mean is the sample mean:

X
X i 293 24.42
n 12
b. The unbiased point estimate of the population variance: s 2 85.72
c. Unbiased point estimate of the variance of the sample mean
s 2 85.72
Var ( X ) 7.1433
n 12
x 3
d. Unbiased estimate of the population proportion: p .25
n 12

## 7.5 n = 350 accounts of the companys total portfolio

a. Unbiased point estimator of the population mean is the sample mean

X
X i 4, 428, 043 \$12,651.55
n 350
b. Unbiased point estimate of the population variance
s 2 \$28,192, 687.10
c. Unbiased point estimate of the variance of the sample mean
s 2 28,192, 687.10
Var ( X ) \$80,550.53
n 350
d. Unbiased estimate of the population proportion
x 133
p .38
n 350

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-4 Statistics for Business & Economics, 8th edition

7.6 a.

## No evidence of the data distribution coming from a nonnormal population.

b. The minimum variance unbiased point estimate of the population mean is the sample

mean: X
X i 285.59 3.8079
n 75
Descriptive Statistics: Volumes
Variable N Mean Median TrMean StDev SE Mean
Volumes 75 3.8079 3.7900 3.8054 0.1024 0.0118

## Variable Minimum Maximum Q1 Q3

Volumes 3.5700 4.1100 3.7400 3.8700

c. The minimum variance unbiased point estimate of the population variance is the sample
variance s2 = 0.10242 = .0105.

1 1
7.7 a. E ( X ) E( X1 ) E( X 2 )
2 2 2 2
1 3 3
E (Y ) E ( X 1 ) E ( X 2 )
4 4 4 4
1 2 2
E (Z ) E ( X1 ) E ( X 2 )
3 3 3 3

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-5

1 1 2 2 2
b. Var ( X ) Var ( X 1 ) Var ( X 2 )
4 4 4 4 2
1 9 5 2
Var (Y ) Var ( X 1 ) Var ( X 2 )
16 16 8
1 4 5 2
Var ( Z ) Var ( X 1 ) Var ( X 2 )
9 9 9
X is most efficient since Var ( X ) Var ( Z ) Var (Y )
Var (Y ) 5
c. Relative efficiency between Y and X : 1.25
Var ( X ) 4
Var ( Z ) 10
Relative efficiency between Z and X : 1.111
Var ( X ) 9

## 7.8 Reliability factor for each of the following:

a. 93% confidence level: z 2 = +/ 1.81
b. 96% confidence level: z 2 = +/ 2.05
c. 80% confidence level: z 2 = +/ 1.28

## 7.9 Reliability factor for each of the following:

a. .08 ; z 2 = +/ 1.75
b. 2 = .02 ; z 2 = +/ 2.05

## 7.10 Calculate the margin of error to estimate the population mean

a. 98% confidence level, n = 64; variance = 144
ME z 2 = 2.33 12 = 3.495

n 64
b. 99% confidence interval, n = 120; standard deviation = 100
ME z 2 = 2.58 100 = 23.552

n 120

## 7.11 Calculate the width to estimate the population mean, for

a. 90% confidence level, n = 100, variance = 169
width = 2ME = 2 z 2 = 2 1.645 13
= 4.277
n 100
b. 95% confidence interval, n = 120, standard deviation = 25
width = 2ME = 2 z 2 = 2 1.96 25
= 8.9461
n 120

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-6 Statistics for Business & Economics, 8th edition

## 7.12 Calculate the LCL and UCL:

a. x z 2 = 50 1.96 40 = 40.2 to 59.8

n 64
b. x z 2 = 85 2.58 20 = 81.56 to 88.44

n 225
c. x z 2 = 510 1.645 50 = 506.27 to 513.73

n 485

## 7.13 a. n 9, x 187.9, 32.4, z.10 1.28

80% confidence interval:
187.9 1.28(32.4/3) = 174.076 up to 201.724

## b. 210.0 187.9 = 22.1 = z / 2 (32.4 / 3), z / 2 2.05

2[1 Fz (2.05)] .0404
Confidence level: 100(1.0404) = 95.96%

## 7.14 a. Calculate the standard error of the mean

5 = .5
n 100

b. Calculate the margin of error of the 90% confidence interval for the population mean
ME z 2 = 1.645(.5) = .8225
n
c. Calculate the width of the 98% confidence interval for the population mean

n

## 7.15 a. n 25, x 2.90, .45, z.025 1.96

95% confidence interval:
x z = 2.90 1.96(.45/5) = 2.7236 up to 3.0764

n
b. 2.99 2.90 = .09 = z / 2 (.45 / 5), z / 2 1
2[1 Fz (1)] .3174
Confidence level: 100(1.3174) = 68.26%

## 7.16 n 25, x 19.8, 1.2, z.005 2.58

99% confidence interval:
x z = 19.8 2.58(1.2/5) = 19.1808 up to 20.4192

n

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-7

## 7.17 Find the standard error

a. n = 17, 95% confidence level, s = 16;
s 16 = 3.8806
n 17
b. n = 25, 90% confidence level, s = 6.56;
s 6.56 = 1.3115
n 25

## 7.18 Find the ME

a. n = 4, 99% confidence level, x1 = 25, x2 = 30, x3 = 33, x4 = 21
s = 5.3151
ME tv, 2 s 5.841 5.3151 = 15.5227
n 4
b. n = 5, 90% confidence level, x1 = 15, x2 = 17, x3 = 13, x4 = 11, x5 = 14
s = 2.2361
ME tv, 2 s 2.132 2.2361 = 2.1320
n 5

## Descriptive Statistics: Driving_Ex7.19

Variable N N* Mean SE Mean TrMean StDev Variance CoefVar
Driving_Ex7.19 20 0 35.10 2.21 35.39 9.87 97.36 28.11

## Variable Sum Minimum Q1 Median Q3 Maximum Range IQR

Driving_Ex7.19 702.00 15.00 27.25 33.50 45.00 50.00 35.00 17.75

## a. Calculate the standard error

s 9.867 = 2.2063
n 20
b. Find the value of t for the 95% confidence interval
tv , 2 t19,.025 = 2.093
c. Calculate the width for a 95% confidence interval for the population mean
width = 2ME = 2 t 2 s 2 2.093 2.2063 = 9.2356
n

7.20 Find the LCL and UCL for each of the following:
a. = .05, n = 25, sample mean = 560, s = 45
x tv, 2 s = 560 2.064 45

= 541.424 to 578.576

n 25
b. / 2 = .05, n = 9, sample mean = 160, sample variance = 36
x tv, 2 s = 160 1.860 6 = 156.28 to 163.72

n 9
c. 1 = .98, n = 22, sample mean = 58, s = 15
x tv, 2 s = 58 2.518 15

= 49.9474 to 66.0526

n 22

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-8 Statistics for Business & Economics, 8th edition

7.21 n = 16, sample mean = 47,500 miles, sample standard deviation = 4,200 miles
a. Calculate the margin of error for 95% confidence level to estimate the population
mean;
ME tv , 2 s = 2.131 4200 = 2237.55

n 16
b. 90% confidence interval:
x tv, 2 s = 47500 1.753 4200

= 45,659.35 miles to 49,340.65 miles

n 16

## 7.22 Calculate the width for each of the following:

a. = 0.05, n = 6, s = 40

w 2ME 2 tv , 2 s 2 2.571 40 2(41.98425) 83.9685
n 6
b. = 0.01, n = 22, sample variance = 400
2(12.07142) 24.1428
w 2ME 2 tv , 2 s 2 2.831 20
n 22
c. = 0.10, n = 25, s = 50
2(17.11) 34.22
w 2ME 2 tv , 2 s 2 1.711 50
n 25

## 7.23 95% confidence interval:

Results for: HEI Cost Data Variable Subset.xls
Descriptive Statistics: HEI-2005_day2

## Variable N Mean SE Mean TrMean StDev Minimum Q1

HEI-2005_day2 4130 54.371 0.227 54.317 14.559 12.462 43.256

## Variable Median Q3 Maximum

HEI-2005_day2 54.550 64.929 93.709

One-Sample T: HEI-2005_day2

## Variable N Mean StDev SE Mean 95.0% CI

HEI-2005_day2 4130 54.371 14.559 0.227 (53.927, 54.815)

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-9

## 7.24 Results for: Sugar.xls

Descriptive Statistics: Weights
Variable N Mean Median TrMean StDev SE Mean
Weights 100 520.95 518.75 520.52 9.45 0.95

## Variable Minimum Maximum Q1 Q3

Weights 504.70 544.80 513.80 527.28

## 90% confidence interval:

Results for: Sugar.xls
One-Sample T: Weights
Variable N Mean StDev SE Mean 90.0% CI
Weights 100 520.948 9.451 0.945 ( 519.379, 522.517)

b. Narrower since a smaller value of t will be used in generating the 80% confidence
interval.

n 400

n 28

## a. 99% confidence interval:

24.375 2.807(8.9434/ 24 ) = 19.2506 pounds up to 29.4994 pounds

b. Narrower since the t-score will be smaller for a 90% confidence interval than for a
99% confidence interval.

## 7.28 n 25, x 42, 740, s 4, 780, t24,.05 1.711

90% confidence interval:
42,740 1.711(4780/5) = \$41,104.28 up to \$44,375.72

## 7.29 n 9, x 16.222, s 4.790, t8,.05 1.86

We must assume a normally distributed population
90% confidence interval:
16.222 1.86(4.790/3) = 13.252 up to 19.192

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-10 Statistics for Business & Economics, 8th edition

7.30 Find the margin of error to estimate the population proportion for each of the following:
a. n = 350, p = .3, = .01
p (1 p ) .3(.7)
ME z 2 2.576 = .0631
n 350
b. n = 275, p = .45, = .05
p (1 p ) .45(.55)
ME z 2 1.96 = .0588
n 275
c. n = 500, p = .05, = .10
p (1 p ) .05(.95)
ME z 2 1.645 = .01603
n 500

7.31 Find the confidence level for estimating the population proportion for each of the following:

## a. 98% confidence level; n = 450, p = .10

p (1 p ) .10(1 .10)
p z 2 = .10 2.326 = .0671 to .1329
n 450
b. 95% confidence level; n = 240, p = .01
p (1 p ) .01(1 .01)
p z 2 = .01 1.96 = 0.0026 to .0226
n 240
c. = .04; n = 265, p = .50
p (1 p ) .5(.5)
p z 2 = .50 2.054 = .4369 to .5631
n 265

## 7.32 n = 250 + 75 + 25 = 350;

a. Estimate the percent of alumni in favor of the program:
p 250 / 350 .7143
= .05
p (1 p ) .7143(.2857)
p z /2 .7143 1.96 = .667 up to .7616
n 350
b. Estimate the percent of alumni in opposed to the program:
p 75 / 350 .2143
90% confidence interval
p (1 p ) .2143(.7857)
p z /2 .2143 1.645 = .1782 up to .2504
n 350

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-11

## 7.33 n = 142, 87 answered GMAT or GRE is very important.

95% confidence interval for the population proportion:
p (1 p ) .6127(1 .6127)
p z 2 = .6127 1.96 = .5326 to .6928
n 142

## 7.34 n 95, p 67 / 95 .7053, z.005 2.58

99% confidence interval:
p (1 p ) .7053(.2947)
p z / 2 = .7053 (2.58) = .5846 up to .8260
n 95

x 133
7.35 p .38
n 350
n 350, p 133 / 350 .38, .02
p (1 p ) .38(.62)
p z / 2 = .38 2.33 = .3195 up to .4405
n 350

## 7.36 n 350, p 73 / 350 .2086, z.025 1.96

95% confidence interval:
p (1 p )
p z / 2 = .2086 (1.96) .2086(.7914) / 350 = .166 to .2512
n

## 7.37 n 400, p 320 / 400 .80, z.01 2.326

p (1 p ) .80(1 .80)
a. LCL = p z / 2 = .80 2.326 = .75348
n 400
b. width of a 90% confidence interval
p (1 p ) .8(1 .8)
w 2ME 2 z 2 2 1.645 2(.0329) .0658
n 400

## 7.38 width = .76 .68 = .08; ME = .04, p 180 / 250 0.72

p (1 p ) .72(.28)
.0284
n 250
ME = .04 = z / 2 (.0284), z / 2 1.41
2[1 Fz (1.41)] 2[.0793] .1586
Confidence level: 100(1 .1586) = 84.14%

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-12 Statistics for Business & Economics, 8th edition

## 7.39 n 540, p 320 / 540 .5926, z.025 1.96

95% confidence interval:
p (1 p ) .5926(.4074)
p z / 2 = .5926 (1.96) = .5512 up to .634
n 540

## 7.40 a. n 460, p (50 120 80) / 460 .5435, z.025 1.96

95% confidence interval:
p (1 p ) .5435(.4565)
p z / 2 = .5435 (1.96) = .49798 up to .58898
n 460

## b. n 460, p (60 50 40) / 460 .3261, z.05 1.645

90% confidence interval:
p (1 p ) .3261(.6739)
p z / 2 = .3261 (1.645) = .29009 up to .36209
n 460

## 7.41 a. n 246, p 232 / 246 .9431, z.01 2.326

98% confidence interval:
p (1 p ) .9431(.0569)
p z / 2 = .9431 (2.326) = .9087 up to .9775
n 246
b. n 246, p 10 / 246 .0407, z.01 2.326
98% confidence interval:
p (1 p ) .0407(.9593)
p z / 2 = .0407 (2.326) = .0114 up to .0699
n 246

(n 1) s 2 20(16)
LCL = = 9.3649
2
n 1, /2 34.17

## b. n 16, s 8, taking .05, 215,.025 27.49

(n 1) s 2 15(8) 2
LCL = = 34.9218
2 n 1, /2 27.49

## c. n 28, s 15, taking .01, 227,.005 49.64

(n 1) s 2 27(15) 2
LCL = = 122.3811
2 n 1, /2 49.64

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-13

(n 1) s 2 20(16)
UCL = = 33.3681
2
n 1,1 /2 9.59

## b. n 16, s 8, taking .05, 215,.975 6.26

(n 1) s 2 15(8) 2
UCL = = 153.3546
2 n 1,1 /2 6.26

## c. n 28, s 15, taking .01, 227,.995 11.81

(n 1) s 2 27(15) 2
UCL = = 514.3946
2 n 1,1 /2 11.81

## 7.44 Random sample from a normal population

a. Find the 90% confidence interval for the population variance

## Descriptive Statistics: Ex7.44

Variable Mean SE Mean StDev Variance Minimum Maximum
Ex7.44 11.00 1.41 3.16 10.00 8.00 16.00

## n 5, s 2 10, 24,.95 .711, 24,.05 9.49

(n 1) s 2 (n 1)s 2 4(10) 4(10)
2 = 2 = 4.21496 < 2 < 56.25879
2
n 1, / 2 2
n 1,1 / 2 9.49 .711

## b. Find the 95% confidence interval for the population variance

n 5, s 2 10, 24,.975 .484, 24,.025 11.14
(n 1) s 2 (n 1)s 2 4(10) 4(10)
2 = 2 = 3.59066 < 2 < 82.64463
2
n 1, / 2 2
n 1,1 / 2 11.14 .484

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-14 Statistics for Business & Economics, 8th edition

## n = 50, s 2 0.000028 . Since df = 49 is not in the Chi-Square Table in the Appendix,

we will approximate the interval using df = 50.
(n 1) s 2 (n 1)s 2 49(0.000028) 49(0.000028)
2
2
n1, / 2
2
n1,1 / 2
2
71.42 32.36
= 4.27E-5 < 2 < 1.94E-5

## 7.46 n 10, s 2 28.3023, 29,.05 16.92, 29,.95 3.33

(n 1) s 2 (n 1)s 2
2 =
2 n1, / 2 2 n1,1 / 2
9(28.3023) 9(28.3023)
2 = 15.0544 up to 76.4927
16.92 3.33

## 7.47 Assume that the population is normally distributed.

n 20, s 2 6.62, 219,.025 32.85, 219,.975 8.91
(n 1) s 2 (n 1)s 2 19(6.62) 19(6.62)

2
= 2
2
n 1, / 2 2
n 1,1 / 2 32.85 8.91
= 3.8289 up to 14.1167.

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-15

## 7.48 n 18, s 2 (10.4)2 108.16, 217,.05 27.59, 217,.95 8.67

(n 1) s 2 (n 1)s 2
17(108.16) 17(108.16)
2 2
=
n1, / 2
2
n1,1 / 22
27.59 8.67
= 66.6444 up to 212.0784. Assume that the population is normally distributed.

## 7.49 a. n 15, s 2 (2.36)2 5.5696, 214,.025 26.12, 214,.975 5.63

14(5.5696) 14(5.5696)
2 = 2.9852 up to 13.8498
26.12 5.63
b. wider since the chi-square statistic for a 99% confidence interval is larger than for a
95% confidence interval.

## 7.50 n 9, s 2 .7875, 28,.05 15.51, 28,.95 2.73

8(.7875) 8(.7875)
2 = .4062 up to 2.3077
15.51 2.73

102 1200 80
7.51 a. 2
1.1676
x
80 1200 1
64 1425 90
b. x2 0.6667
90 1425 1
129 3200 200
c. x2 0.6049
200 3200 1

## 7.52 a. The confidence interval is x t n 1, / 2 x x t n 1, / 2 x . Use t79,0.025 1.990, and

x2 1.1676 from exercise 7.51 part a.

x t n 1, / 2 x x t n 1, / 2 x
142 (1.990)(1.0806) 142 (1.990)(1.0806)
or (139.85, 144.15)

## b. The confidence interval is x t n 1, / 2 x x t n 1, / 2 x . Use

t89,0.025 1.987, and x2 0.6667 from exercise 7.51 part b.

x t n 1, / 2 x x t n 1, / 2 x
232.4 (1.987)(0.8165) 232.4 (1.987)(0.8165)
or (230.78, 234.02)

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-16 Statistics for Business & Economics, 8th edition

## c. The confidence interval is x t n 1, / 2 x x t n 1, / 2 x . Use t199,0.025 1.972, and

x2 0.6049 from exercise 7.51 part c.

x t n 1, / 2 x x t n 1, / 2 x
59.3 (1.972)(0.7777) 59.3 (1.972)(0.7777)
or (57.77, 60.83)

7.53 a. A 100(1 )% confidence interval for the population total is obtained from the
following formula:
Nx tn 1, /2 N x N Nx tn 1, /2 N x
As stated, N 1325, n 121, s 20, and x 182.
For a 95% confidence level, note that tn 1, / 2 t120,0.025 1.98. Next calculate N x .
Ns N n (1325)( 20) 1325 121
N x 2297.325
n N 1 121 1325 1

## So the 95% confidence interval is

Nx tn 1, /2 N x N Nx tn 1, /2 N x
or
(1325)(182) (1.98)( 2297.325) N (1325)(182) (1.98)( 2297.325)
or
(236601, 245699)

## b. As stated, N 2100, n 144, s 50, and x 1325.

For a 98% confidence level, note that tn 1, / 2 t143,0.01 2.35. Next calculate N x .
Ns N n (2100)(50) 2100 144
N x 8446.684
n N 1 144 2100 1

## So the 98% confidence interval is

Nx tn 1, /2 N x N Nx tn 1, /2 N x
or
(2100)(1325) (2.35)(8446.684) N (2100)(1325) (2.35)(8446.684)
or
(2762650, 2802350)

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-17

7.54 a A 100(1 )% confidence interval for the population proportion is obtained from the
following formula:
p z / 2 p P p z / 2 p
As stated, N 1058, n 160, and x 40.
For a 95% confidence level, note that z / 2 z0.025 1.96. Next calculate p and p .
x 40
p 0.25
n 160
p (1 p ) ( N n) 0.25(1 0.25) 1058 160
p2 0.0010019
n 1 ( N 1) 160 1 1058 1
p 0.0010019 0.03165

## So the 95% confidence interval is

p z / 2 p P p z / 2 p
or
0.25 (1.96)(0.03165) P 0.25 (1.96)(0.03165)
or
(0.188, 0.312)

## b. As stated, N 854, n 81, and x 50.

For a 99% confidence level, note that z / 2 z0.005 2.576. Next calculate p and p .
x 50
p 0.6173
n 81
p (1 p ) ( N n) 0.6173(1 0.6173) 854 81
p2 0.002676
n 1 ( N 1) 81 1 854 1
p 0.002676 0.05173

## So the 99% confidence interval is

p z / 2 p P p z / 2 p
or
0.6173 (2.576)(0.05173) P 0.6173 (2.576)(0.05173)
or
(0.484, 0.751)

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-18 Statistics for Business & Economics, 8th edition

Within Minitab, go to Calc Make Patterned Data in order to generate a simple set of
numbers of size n or N. Enter first value as 1, last value as 854which is the total
number of pages in the text.
Go to Calc Random Data Sample from Columns in order to generate a simple
random sample of size n. Sample ____ rows from column(s): Enter 50 as the number
of rows to sample from. The results will be the observation numbers in the list to include
in the sample.
Then, count the number of pages which contains figure. Divide this number by 50 and the
result will be the required proportion.

## ( s)2 N n (6.2) 2 139

7.56 a. x 9.7, s 6.2 , x = .7539
n N 1 50 188
95% confidence interval:
9.7 2.01 (.7539)
or (8.1847, 11.2153)

## b. 99% confidence interval:

Nx t /2 N x N Nx t /2 N x
where, Nx (189)(9.7) 1833.30
N x 189 .7539 = 142.4871
1833.30 2.68(142.4871)
1451.4346 < N < 2215.1654

7.57 a. x 127.43
s 2 N n (43.27)2 760
b. x
2
= 28.9569
n N 1 60 819
c. 90% confidence interval: 127.43 1.671 ( 28.9569 ) = (118.438, 136.422)

## d. [137.43 117.43]/2 = 10 = t /2 28.9569 , solving for t: 1.858

yields a confidence level of 93.19% or an of .0681

## e. 95% confidence interval: using x 2 28.9569

Nx t /2 N x N Nx t /2 N x , where Nx (820)(127.43) 104, 492.6
N x 820 28.9569 4412.584
104,492.6 2.001(4412.584) = 95,663.0194 < N < 113,322.1806

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-19

## 7.58 a. 99% confidence interval:

(5.32) 2 85
x = .6964
40 124
7.28 2.708 (.6964) = (5.3941, 9.1659)

## b. 90% confidence interval:

Nx t /2 N x N Nx t /2 N x , where Nx (125)(7.28) 910
N x 125 .6964 = 87.05
910 1.685(87.05) = 763.3208 < N < 1,052.6793

7.59 a. false: as n increases, the confidence interval becomes narrower for a given N and s2
b. true
c. true: the finite population correction factor is larger to account for the fact that a
smaller proportion of the population is represented as N increases relative to n.
d. true

## 7.60 x = 143/35 = 4.0857

90% confidence interval:
Nx t /2 N x N Nx t /2 N x , where Nx (120)(4.0857) 490.2857
(3.1)2 (120 35)
N x 120 = 53.1429
35 (120 1)
490.2857 1.691(53.1429) = 400.4211< N < 580.1503

## 7.61 p = x/n = 39/400 = .0975

p [ p (1 p ) / (n 1)][( N n) / ( N 1)]
[(.0975)(.9025) / (399)][(1395 400) / (1395 1)] = .0125
95% confidence interval: .0975 1.96(.0125): .073 up to .1220

## 7.62 p = x/n = 56/100 = .56

p [ p (1 p ) / (n 1)][( N n) / ( N 1)]
[(.56)(.44) / 99][(420 100) / (420 1)] = .0436
90% confidence interval: .56 1.645(.0436): .4883 up to .6317

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-20 Statistics for Business & Economics, 8th edition

## 7.63 p = x/n = 110/120 = .9167

p [ p (1 p ) / (n 1)][( N n) / ( N 1)]
[(.9167)(.0833) / (119)][(1200 120) / (1200 1)] = .024
95% confidence interval: .9167 1.96(.024): .8696 up to .9638

## 7.64 p = x/n = 31/80 = .3875

p [ p (1 p ) / (n 1)][( N n) / ( N 1)]
[(.3875)(.6125) / (79)][(420 80) / (420 1)] = .0494
90% confidence interval: .3875 1.645(.0494): .3063 up to .4687

Therefore, 128.646 < NP < 196.854 or between 129 and 197 students intend to take the
final.

## 7.65 To estimate the mean of a normally distributed population:

z
2 2
2 (2.582 )(402 )
a. n = = 426.01. Take a sample of size n = 427.
ME 2 52
z
2 2
2 (2.582 )(402 )
b. n = = 106.502. Take a sample of size n = 107.
ME 2 102
c. In order to cut the ME in half, the sample size must be quadrupled.

.25 z 2
2
.25 1.96
2

## a. n = = 1067.111. Take a sample of size n = 1068.

ME 2 .032
.25 z 2
2
.25 1.96
2

b. n 2
= = 384.16. Take a sample of size n = 385.
ME .052
c. In order to reduce the ME in half, the sample size must be increased by a larger
proportion.

.25 z 2
2
.25 2.58
2

ME 2 .052
.25 z 2
2
.25 1.645
2

## b. n = = 270.6. Take a sample of size n = 271.

ME 2 .052
c. In order to increase the confidence level for a given margin of error, the sample size
must be increased.

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-21

## 7.68 a. z.05 1.645, ME .04

.25( z / 2 )2 (.25)(1.645) 2
n = 422.8 , take n = 423
ME 2 (.04) 2
(.25)(1.96)2
b. 600.25 , take n = 601
(.04)2
(.25)(2.33)2
c. 542.89 , take n = 543
(.05)2

## 7.69 z.005 2.58, ME .05

.25( z / 2 )2 (.25)(2.58) 2
n = 665.64 , take n = 666
ME 2 (.05) 2

## 7.70 z.05 1.645, ME .03

.25( z / 2 )2 (.25)(1.645) 2
n = 751.7 , take n = 752
ME 2 (.03) 2

N 2
7.71 Use the equation n to find the sample size needed.
( N 1) x2 2
50
a. Since 1.96 x 50, x 25.51.
1.96
N 2 (1650)(500) 2
n 311.8, take n 312
( N 1) x2 2 (1650 1)(25.51) 2 (500) 2

100
b. Since 1.96 x 100, x 51.02.
1.96
N 2 (1650)(500)2
n 90.8, take n 91
( N 1) x2 2 (1650 1)(51.02)2 (500)2

200
c. Since 1.96 x 200, x 102.04.
1.96
N 2 (1650)(500)2
n 23.7, take n 24
( N 1) x2 2 (1650 1)(102.04)2 (500)2

d. The required sample size for part (b) is larger than that for part (c), and the required
sample size for part (a) is larger than that for parts (b) and (c). This shows that the
required sample size increases as 1.96 X decreases. Thus, the required sample size
increases as the desired standard deviation, X , and the desired variance, X2 , of the
sample mean decreases.

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-22 Statistics for Business & Economics, 8th edition

N 2
7.72 Use the equation n to find the sample size needed.
( N 1) x2 2
50
a. Since 1.96 x 50, x 25.51.
1.96

N 2 (3300)(500) 2
n 344.2 , take n 345
( N 1) x2 2 (3300 1)( 25.51) 2 (500) 2

## b. From part (a), x 25.51.

N 2 (4950)(500)2
n 356.6, take n 357
( N 1) x2 2 (4950 1)(25.51)2 (500)2

## c. From part (a), x 25.51.

N 2 (5000000)(500) 2
n 384.1, take n 385
( N 1) x2 2 (5000000 1)(25.51) 2 (500) 2

d. The required sample size for part (b) is larger than that for part (a), and the required
sample size for part (c) is larger than that for parts (a) and (b). This shows that the
required sample size increases as N increases.

0.25 N
7.73 Use the equation nmax to find the maximum sample size needed.
( N 1) p2 0.25
0.05
a. Since 1.96 p 0.05, p 0.02551.
1.96

0.25 N 0.25(2500)
nmax 333.1, take n 334
( N 1) p 0.25 (2500 1)(0.02551)2 0.25
2

0.03
b. Since 1.96 p 0.03, p 0.015306.
1.96

0.25 N 0.25(2500)
nmax 748.1, take n 749
( N 1) p 0.25 (2500 1)(0.015306) 2 0.25
2

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-23

c. The sample size for part (b) is larger than that for part (a). This shows that the required
sample size increases as 1.96 p decreases. Thus, the sample size increases as the desired
standard deviation, p , and the desired variance, p2 , of the sample proportion decreases.

2000 812(20000)2
7.74 x 1020.4 , n 261.0038 . Take 262 observations.
1.96 811(1020.4)2 (20000)2

2000
7.75 x 1215.8055
1.645
N 2 (400)(10, 000) 2
n = 57.988. Take 58 observations.
( N 1) x 2 (399)(1215.8055) (10, 000)
2 2 2

.05
7.76 p .0194
2.575
.25 N (.25)320
n 216.18 = 217 observations.
( N 1) p .25 319(.0194)2 .25
2

.04 417(.25)
7.77 p .0243 , n 210.33 = 211 observations.
1.645 416(.0243)2 .25

## 90% confidence interval: x t 2 s = 227.60 1.711(41.86/ 25 ) = 213.2741 up

n
to 241.9259. Assume that the population is normally distributed.

## b. Width for 95% and 98% confidence intervals:

[95%]: Width = 2ME = 2 t 2 s 2 2.064 8.3728 = 34.563
n
[98%]: Width = 2ME = 2 t 2 s 2 2.492 8.3728 = 41.73
n

## 95% confidence interval: x t 2 s = 150 2.131(12/4) = 143.607 up to

n
156.393..It is recommended that he stock 157 gallons.

## 7.80 n 25, x 28.5, s 6.8, t24,.05 1.711

90% confidence interval = 28.5 1.711(6.8/ 25 ) = 26.173 up to 30.827

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-24 Statistics for Business & Economics, 8th edition

## Descriptive Statistics: Passengers7_68

Variable N Mean Median TrMean StDev SE Mean
Passenge 50 136.22 141.00 136.75 24.44 3.46
Variable Minimum Maximum Q1 Q3
Passenge 86.00 180.00 118.50 152.00

One-Sample T: Passengers7_68
Variable N Mean StDev SE Mean 95.0% CI
Passengers8_ 50 136.22 24.44 3.46 ( 129.27, 143.17)

## 7.82 n 25, x 12.5, s 3.8, t24,.025 2.064

b. For a 95% confidence interval, 12.5 2.064(3.8/5)
= 10.9314 up to 14.0686

7.83 a. The minimum variance unbiased point estimator of the population mean is the

sample mean: X
X i 27 3.375. The unbiased point estimate of the variance:
n 8

s2
xi nx 94.62 8(3.375)2 .4993
2 2

n 1 7
x 3
b. p .375
n 8

## 7.84 Width = 3.69 3.49 = .2, ME = .1 = z / 2 (1.045/ 457), z / 2 2.05

2[1 Fz (2.05)] .0404
100(1.0404) = 95.96%

## 7.85 n 174, x 6.06, s 1.43

Width = 6.16 5.96 = .2, ME = .1 = z /2 (1.43 / 174), z /2 .92
2[1 Fz (.92)] .3576
100(1.3576) = 64.24%

## 7.86 n = 33 accounting students who recorded study time

a. An unbiased, consistent, and efficient estimator of the population mean is the sample
mean, x = 8.545
b. The sampling error for a 95% confidence interval using degrees of freedom = 32,
ME 2.037 3.817 = 1.3536

33

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-25

7.87 n = 25 patient records the average length of stay is 6 days with a standard deviation of 1.8
days
a. The reliability factor for a 95% interval estimate, t24,.025 2.064
b. The LCL for a 99% confidence interval estimate of the population mean
ME t 2 s = 2.797 1.8 . The LCL = 4.9931 days.

n 25

x 100
7.88 n = 250, x = 100, p .4
n 250
a. The standard error to estimate population proportion of first timers
p (1 p ) .4(1 .4)
= .03098
n 250
b. Since no confidence level is specified, we find the sampling error (Margin of Error) for a
95% confidence interval.
ME = 1.96 (.03098) = .0607
c. For a 92% confidence interval,
ME = 1.75 (.03098) = .05422
92% confidence interval for estimating the proportion of repeat fans,
.6 .05422 giving .5458 up to .6542.

## 7.89 n 20, x 60.75, s 21.8316

a. 90% confidence interval reliability factor = t19,.05 1.729
b. For a 99% confidence interval,
21.8316
LCL = 60.75 2.861 = 46.78 or approximately 47 passengers.
20

7.90 n = 500 motor vehicle registrations, 200 were mailed, 160 paid in person, remainder paid
online.
a. 90% confidence interval to estimate the population proportion to pay for vehicle
registration renewals in person.

## Test and CI for One Proportion

Test of p = 0.5 vs p not = 0.5
Sample X N Sample p 90% CI
1 160 500 0.320000 (0.285686, 0.354314)
The 90% confidence interval is from 28.5686% up to 35.4314%

## b. 95% confidence interval to estimate the population proportion of online renewals.

Test and CI for One Proportion
Test of p = 0.5 vs p not = 0.5
Sample X N Sample p 95% CI
1 140 500 0.280000 (0.240644, 0.319356)
The 95% confidence interval is from 24.0644% up to 31.9356%

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-26 Statistics for Business & Economics, 8th edition

7.91 From the data in 7.90, find the confidence level if the interval extends from 0.34 up to
0.46.
ME = the width of the confidence interval = (0.46 0.34)/2 = 0.12 / 2 = 0.06
p (1 p ) (0.4)(0.6)
ME z 2 or 0.06 z 2
n 500
Solving for z: z 2 2 .74
Area from the z-table = (.5 .0031) 2 = .4969 2 = .9938. The confidence level is
99.38%

7.92 From the data in 7.90, find the confidence level if the interval extends from 23.7% up to
32.3%.
ME = the width of the confidence interval = (.323 .237)/2 = .086 / 2 = .043 and p .28
p (1 p )
ME z 2
n
.28(1 .28)
.043 z 2
500
solving for z: z 2 2.14
Area from the z-table = (.5 .0162) 2 = .4838 2 = .9676. The confidence level is
96.76%

## 7.93 a. The margin of error for a 99% confidence interval

p x 250 .7143 ,
n 350
p (1 p ) .7143(1 .7143)
ME z 2 = ME 2.58
n 350
ME = .0623

b. The margin of error will be smaller (more precise) for a lower confidence level. The
difference in the equation is the value for z which would drop from 2.58 down to 1.96.

7.94 The 98% confidence interval of the mean age of online renewal users. n = 460, sample
mean = 42.6, s = 5.4.
x t 2 s = 42.6 2.33 5.4 = 42.6 .58664 = 42.0134 up to
43.18664
n 460

747 (11.44)2 90 10
7.95 a. x 74.7 , s = 11.44, 2x 11.766
10 10 90 1
90% confidence interval: 74.7 1.833 11.766 : 68.412 up to 80.988

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Chapter 7: Estimation: Single Population 7-27

(149.92)2 272 50
7.96 a. 2x 368.242
50 272 1
99% confidence interval for the population mean:
492.36 2.68 368.242
440.9319 up to 543.7881

## b. N x (272)( 368.242) 5219.577

95% confidence interval for the population total:
(272 492.36) 2.01(5219.577)
123430.57 up to 144413.27

## c. The 90% interval is narrower; the t-score would decline to 1.677

36 .6(.4) 148 60
7.97 p .6 , 2p .0024
60 60 1 148 1
95% confidence interval: .6 1.96 .0024 : .504 up to .696

## 7.98. N 20, n 10, x 257, s 37.16, t9,.05 1.833

(37.16)2 20 10
2x 72.677
10 20 1
a. 90% confidence interval for the average number of new prescriptions:
257 1.833 72.677 = 241.3735 up to 272.6265, assuming that the population of the
number of new prescriptions written for the new drug is normal.

## b. Reducing ME in part (a) by half = 15.6265/2 = 7.8133.

z2 /2 2 (1.642 )(72.677 2 )
We know that n0 3.202
ME 2 7.81332
n0 N 3.202 20
n 2.88 3
n0 ( N 1) 3.202 (20 1)

7.99 Sample taken to estimate approval ratings for a 95% confidence level given a 45%
approval rating and a margin of error of .035:
( p )(1 p )( z /2 ) 2 (.45)(.55)(1.96) 2
n = 776.16 .
ME 2 (.035) 2
Take n = 777 observations.

## Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

7-28 Statistics for Business & Economics, 8th edition

2000 328(12000)2
7.100 x 1215.8 , n 75.28 . Take 76 observations
1.645 327(1215.8)2 (12000)2

.06 527(.25)
7.101 p .0306 , n 177.43 . Take 178 observations
1.96 526(.0306)2 .25

z2 / 2 2 z2 / 2 2 2
7.102 We know that n0 , where ME z / 2 X . This gives n0 or
ME 2 ( z / 2 X ) 2 X2
2 n0 X2 .
N 2
Substituting this into gives
( N 1) X2 2

N (n0 X2 ) X2 Nn0 n0 N
.
( N 1) n0
2
X
2
X
[( N 1) n0 ]
2
X
n0 ( N 1)

## 7.103 n 75, x 3.81, s .10, t74,.025 1.993

For a 95% confidence interval, 3.81 1.993(.10/ 75 )
= 3.7843 up to 3.8314 gallons