Question 1

A population consists of the following 5 values: 12, 12, 14, 15, and 20.
a. List all samples of size 3 and compute the mean of each sample
b. Compute the mean of the distribution of sample means and the population mean. Compare the two values.
c. Compare the dispersion in the population with that of the sample means

Question 2

IIUM gives each of its employees an aptitude test. The scores on the test are normally distributed with a
mean of 75 and a standard deviation of 15. A simple random sample of 25 is taken from a population of
1345.
a. What are the expected value, the standard deviation, and the shape of the sampling distribution of x ?
b. What is the probability that the average aptitude test in the sample will be between 70.14 and 82.14?
c. What is the probability that the average aptitude test in the sample will be greater than 82.68?
d. What is the probability that the average aptitude test in the sample will be less than 78.69?
e. Find a value, A, such that P( x  A) = .015.

Question 3
The makers of a soft drink want to identify the average age of its consumers. A sample of 16 consumers is
taken. The average age in the sample was 22.5 years with a standard deviation of 5 years.
a. Construct a 95% confidence interval for the true average age of the consumers. Interpret your answers.
b. Construct an 80% confidence interval for the true average age of the consumers. Interpret your
answers.
c. Discuss why the 95% and 80% confidence intervals are different.

Question 4 (self-review 9-1)

The Bun-and-Run is a franchise fast-food restaurant specializing in burgers and sandwiches. The Planning
department of Bun-and-Run Inc. reports that the distribution of daily sales for restaurants follows the
normal distribution with population standard deviation is $3000. A sample of 40 showed the mean daily
sales to be $20, 000.
a. What is the population mean?
b. What is the best estimate of the population mean? What is this value called?
c. Develop a 95% confidence interval for the population mean/
d. Interpret

Question 5 (self-review 9-3)

A market survey was conducted to estimate the proportion of homemakers who would recognize the brand
name of a cleaner based on the shape and the color of the container. Of the 1400 homemakers sampled, 420
were able to identify the brand by name.
a. Estimate the value of the population proportion
b. Develop a 99% CI for the population proportion
c. Interpret your findings.

Question 6 (self-review 9-4)

The registrar wants to estimate the arithmetic mean GPA of all graduating seniors during the past 10 years.
GPAs range between 2.0 and 4.0. The mean GPA is to be estimated within plus or minus .05 of the
population mean. Based on prior experience, the population standard deviation is 0.279. Use the 99% level
of confidence. Will you assist the registrar in determining how many transcripts to study?

Question 7 (chapter exercises no. 63)

The proportion of accountants who have changed companies for the last 3 years is to be estimated within
3%. The 95% level of confidence is to be used. A study conducted several years ago revealed that the
percent of accountants changing companies in 3 years was 21.
a. To update this study, the files of how many accountants should be studied?
b. How many accountants should be contacted if no previous estimates of the population proportion are
available?