Chapter 9 Page 1 of 7

WebQuizzing Ch. 9
Book ISBN-10 0538477490
Book ISBN-13 9780538477499
Author: Gerald Keller
Title: Statistics for Management and Economics
Ed: 9e

# Questions Submitted: 20 Multiple Choice

1. Which of the following is not a characteristic for a good estimator?

A. Being unbiased.
B. Being consistent.
C. Having relative efficiency.
D. All of these choices are true.

Analysis:
A. Incorrect. All of these choices are true.
B. Incorrect. All of these choices are true.
C. Incorrect. All of these choices are true.
D. Correct. All of these choices are true.
ANSWER: D Ref: Section 9.1

2. A point estimator is defined as:

A. a range of values that estimates an unknown population parameter.
B. a range of values that estimates an unknown sample statistic.
C. a single value that estimates an unknown population parameter.
D. a single value that estimates an unknown sample statistic.

Analysis:
A. Incorrect. A point estimator is defined as a single value that estimates an unknown population
parameter.
B. A point estimator is defined as a single value that estimates an unknown population
parameter.
C. Correct. A point estimator is defined as a single value that estimates an unknown population
parameter.
D. A point estimator is defined as a single value that estimates an unknown population
parameter.
ANSWER: C Ref: Section 9.1

3. An unbiased estimator of a population parameter is defined as:

A. an estimator whose expected value is equal to the parameter.
B. an estimator whose variance is equal to one.
C. an estimator whose expected value is equal to zero.
D. an estimator whose variance goes to zero as the sample size goes to infinity.
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Analysis:
A. Correct. It is defined as an estimator whose expected value is equal to the parameter.
B. Incorrect. It is defined as an estimator whose expected value is equal to the parameter.
C. Incorrect. It is defined as an estimator whose expected value is equal to the parameter.
D. Incorrect. It is defined as an estimator whose expected value is equal to the parameter.
ANSWER: A Ref: Section 9.1

4. An estimator is said to be consistent if:

A. it is an unbiased estimator.
B. the variance of the estimator is zero.
C. the difference between the estimator and the population parameter stays the same as the
sample size grows larger.
D. the difference between the estimator and the population parameter grows smaller as the
sample size grows larger.

Analysis:
A. Incorrect. An estimator is said to be consistent if the difference between the estimator and the
population parameter grows smaller as the sample size grows larger.
B. Incorrect. An estimator is said to be consistent if the difference between the estimator and the
population parameter grows smaller as the sample size grows larger.
C. Incorrect. An estimator is said to be consistent if the difference between the estimator and the
population parameter grows smaller as the sample size grows larger.
D. Correct. An estimator is said to be consistent if the difference between the estimator and the
population parameter grows smaller as the sample size grows larger.
ANSWER: D Ref: Section 9.1

5. If there are two unbiased estimators of a population parameter available, the one that has the
smallest variance is said to be:
A. a biased estimator.
B. relatively efficient.
C. consistent.
D. relatively unbiased.

Analysis:
A. Incorrect. The one that has the smallest variance is said to be relatively efficient.
B. Correct. The one that has the smallest variance is said to be relatively efficient.
C. Incorrect. The one that has the smallest variance is said to be relatively efficient.
D. Incorrect. The one that has the smallest variance is said to be relatively efficient.
ANSWER: B Ref: Section 9.1

6. Which of the following statements is correct?

A. The sample mean is an unbiased estimator of the population proportion.
B. The sample proportion is an unbiased estimator of the population proportion.
C. The difference between two sample proportions is an unbiased estimator of the difference
between two sample means.
D. All of these choices are true.
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Analysis:
A. Incorrect. The sample mean is an unbiased estimator of the population mean.
B. Correct. The sample proportion is an unbiased estimator of the population proportion.
C. Incorrect. The difference between two sample proportions is an unbiased estimator of the
difference between two sample proportions.
D. Incorrect.
ANSWER: D Ref: Section 9.2

7. When estimating the population proportion and the value of p is unknown, we can construct a
confidence interval using which of the following?

A. The Standard Error of the Mean

B. The Sample Proportion, p
C. The Standard Deviation of p
D. None of the above.

Analysis:
A. Incorrect. When the value of p is unknown, we can use p or the Sample Proportion.
B. Correct. When the value of p is unknown, we can use p or the Sample Proportion.
C. Incorrect. When the value of p is unknown, we can use p or the Sample Proportion.
D. Incorrect. When the value of p is unknown, we can use p or the Sample Proportion.

ANSWER: B Ref: Section 9.2

8. The problem with relying on a point estimate of a population parameter is that:

A. it is virtually certain to be wrong.
B. it doesnt have the capacity to reflect the effects of larger sample sizes.
C. it doesnt tell us how close or far the point estimate might be from the parameter.
D. All of these choices are true.

Analysis:
A. Incorrect. All of these choices are true.
B. Incorrect. All of these choices are true.
C. Incorrect. All of these choices are true.
D. Correct. All of these choices are true.
ANSWER: D Ref: Section 9.1

9. The term 1- refers to:

A. the probability that a confidence interval does contain the population parameter.
B. the probability that a confidence interval does not contain the population parameter.
C. the level of unbiasedness.
D. the level of consistency.

Analysis:
A. Correct. The term 1- refers to the confidence level.
B. Incorrect. The term 1- refers to the confidence level.
C. Incorrect. The term 1- refers to the confidence level.
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D. Incorrect. The term 1- refers to the confidence level.

ANSWER: B Ref: Section 9.2

10. If the confidence level is reduced, the confidence interval:

A. widens.
B. remains the same.
C. narrows.
D. disappears.

Analysis:
A. Incorrect. If the confidence level is reduced, the confidence interval narrows.
B. Incorrect. If the confidence level is reduced, the confidence interval narrows.
C. Correct. If the confidence level is reduced, the confidence interval narrows.
D. Incorrect. If the confidence level is reduced, the confidence interval narrows.
ANSWER: C Ref: Section 9.2

11. The width of a confidence interval estimate of the population mean increases when the:
A. level of confidence increases
B. sample size decreases
C. value of the population standard deviation increases
D. All of these choices are true.

Analysis:
A. Incorrect. All of these choices are true.
B. Incorrect. All of these choices are true.
C. Incorrect. All of these choices are true.
D. Correct. All of these choices are true.
ANSWER: D Ref: Section 9.2

12. The letter in the formula for constructing a confidence interval estimate of the population
proportion is:
A. the level of confidence.
B. the probability that a particular confidence interval will contain the population mean.
C. the area in the lower tail of the sampling distribution of the sample mean.
D. None of these choices.

Analysis:
A. Incorrect. None of these choices is the letter in the formula.
B. Incorrect. None of these choices is the letter in the formula.
C. Incorrect. None of these choices is the letter in the formula.
D. Correct. None of these choices is the letter in the formula.

ANSWER: D Ref: Section 9.2

13. After constructing a confidence interval estimate for a population proportion, you believe
that the interval is useless because it is too wide. In order to correct this problem, you need
to:
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A. increase the population standard deviation.

B. increase the sample size.
C. increase the level of confidence.
D. increase the sample mean.

Analysis:
A. Incorrect. In order to correct this problem, you need to increase the sample size.
B. Correct. In order to correct this problem, you need to increase the sample size.
C. Incorrect. In order to correct this problem, you need to increase the sample size.
D. Incorrect. In order to correct this problem, you need to increase the sample size.
ANSWER: B Ref: Section 9.2

14. A confidence interval is defined as:

A. a point estimate plus or minus a specific confidence level.
B. a lower and upper confidence limit associated with a specific level of confidence.
C. an interval that has a 95% probability of containing the population parameter.
D. a lower and upper confidence limit that has a 95% probability of containing the
population parameter.

Analysis:
A. Incorrect. A confidence interval is defined as a lower and upper confidence limit associated
with a specific level of confidence.
B. Correct. A confidence interval is defined as a lower and upper confidence limit associated
with a specific level of confidence.
C. Incorrect. A confidence interval is defined as a lower and upper confidence limit associated
with a specific level of confidence.
D. Incorrect. A confidence interval is defined as a lower and upper confidence limit associated
with a specific level of confidence.
ANSWER: B Ref: Section 9.2

15. Which of the following is not a part of the formula for constructing a confidence interval
estimate of the population proportion?
A. A point estimate of the population proportion.
B. The standard error of the sampling distribution of the sample proportion.
C. The confidence level.
D. The value of the population proportion.

Analysis:
A. Incorrect. The value of the population proportion is not a part of the formula.
B. Incorrect. The value of the population proportion is not a part of the formula.
C. Incorrect. The value of the population proportion is not a part of the formula.
D. Correct. The value of the population proportion is not a part of the formula.
ANSWER: D Ref: Section 9.2

16. Which of the following statements is false regarding the sample size needed to estimate a
population proportion?
A. It is directly proportional to the population variance.
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B. It is directly proportional to the square of z / 2 .

C. It is directly proportional to the square of the maximum allowable error B.
D. None of these choices.

Analysis:
A. Incorrect. The sample size needed to estimate a population proportion is directly proportional
to the square of the maximum allowable error B is false.
B. Incorrect. The sample size needed to estimate a population proportion is directly proportional
to the square of the maximum allowable error B is false.
C. Correct. The sample size needed to estimate a population proportion is directly proportional to
the square of the maximum allowable error B is false.
D. Incorrect. The sample size needed to estimate a population is proportion directly proportional
to the square of the maximum allowable error B is false.
ANSWER: C Ref: Section 9.3

17. The sample size needed to estimate a population proportion within 2 units with a 95%
confidence when the population proportion equals .80 is
A. 40
B. 1537
C. 246
D. None of these choices.

Analysis:
A. Incorrect. The sample size needed is 1537
B. Correct. The sample size needed is 1537
C. Incorrect. The sample size needed is 1537
D. Incorrect. The sample size needed is 1537
ANSWER: B Ref: Section 9.3

18. When we have no information as to the value of p, p=.50 is used because

A. the value of p(1-p)is at its maximum value at p=.50
B. the value of p(1-p)is at it minimum value at p=.50
C. the estimate of p=.50 is a valid point estimate of the sample proportion.
D. the allowable or tolerable sampling error is .50.

Analysis:
A. Correct. The product of p (1-p) is at its maximum value when p=.50
B. Incorrect. The product of p (1-p) is at its maximum value when p=.50
C. Incorrect. The product of p (1-p) is at its maximum value when p=.50
D. Incorrect. The product of p (1-p) is at its maximum value when p=.50

ANSWER: A Ref: Section 9.3

19. If everything is held equal, and the margin of error is increased, then the sample size will

A. increase.
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B. remain unchanged.
C. decrease
D. be determined by the sample proportion.

Analysis:
A. Incorrect. The sample size will decrease as the margin of error increases.
B. Incorrect. The sample size will decrease as the margin of error increases
C. Correct. The sample size will decrease as the margin of error increases
D. Incorrect. The sample size will decrease as the margin of error increases
ANSWER: C Ref: Section 9.3

20. In a production facility, 10% of the parts produced are defective. With a .95 probability, the sample
size that needs to be taken if the desired margin of error is 4% is

A. 100
B. 217
C. 95
D. 111

Analysis:
A. Incorrect. It requires a sample size of at least 217
B. Correct. It requires a sample size of at least 217
C. Incorrect. It requires a sample size of at least 217
D. Incorrect. It requires a sample size of at least 217
ANSWER: B Ref: Section 9.3