MACT 2222: Fall 2017

Assignment 9

Name:
Section:

Question Mark
1
2
3
4
5
6
7
8
Total

Write your solutions on the same paper. Don’t use any other papers.

1
Question (1)

A random sample of 81 credit sales in a department store showed an average sale of $68.00. From past
data, it is known that the standard deviation of the population is $27.00.
a. Determine the standard deviation of the mean.

b. With a 0.95 probability, what is the size of the margin of error?

c. Develop a 95% confidence interval of the population mean? Interpret what it means.

Question (2)

An economist is interested in studying the spending habits of consumers in a particular region. The
population standard deviation is known to be $1,000. A random sample of 50 individuals resulted in an
average expense of $15,000. What is the width of the 99% confidence interval?

Question (3)

The average monthly electric bill of a random sample of 256 residents of a city is $90 with a standard
deviation of $24.

a. Construct a 90% confidence interval for the mean monthly electric bills of all residents.

b. What is the effect of using a 95% confidence interval on the confidence limits?

2
Question (4)

A hotel chain wants to estimate the average number of conference rooms rented daily in each month.
The population of conference rooms rented daily is assumed to be normally distributed for each with a
standard deviation of 24 rooms. During January, a sample of 16 days has a sample mean of 48 rooms.
This information is used to calculate an interval estimate for the population mean to be from 40 to 56
rooms. What is the level of confidence of this interval?

Question (5)

Two hundred students are enrolled in an Economics class. After the first examination, a random sample
of 6 papers was selected. The grades were 65, 75, 89, 71, 70 and 80. The sample mean is 75 while the
sample standard deviation is 8.51.

a. Determine the standard deviation of the mean.

b. What assumption must be made before we can determine an interval for the mean grade of
all the students in the class? Explain why.

c. Assume the assumption of Part b is met. Provide a 95% confidence interval for the mean grade
of all the students in the class.

Question (6)

A researcher is interested in determining the average number of years employees of a company

stay with the company. If past information shows a standard deviation of 7 months, what is the
size of the sample that should be taken so that at 95% confidence the margin of error will be 2
months or less?

3
Question (7)

To study the effectiveness of a drug for arthritis, two samples of patients were randomly selected.
One sample of 100 was injected with the drug, the other sample of 60 receiving a placebo injection.
After a period of time the patients were asked if their arthritic condition had improved. Results
were:
Drug Placebo
Improved 59 22
Not Improved 41 38
Total 100 60
Find a 95% confidence interval for the difference between the proportions of improvement by
drug and by Placebo. Do you think the drug is effective?

Question (8)

A grocery store is interested in determining whether or not a difference exists between the shelf
life of two different brands of doughnuts. A random sample of 10 boxes of each brand was
selected and the shelf life in days was determined for each box. The sample results are given
below.

Brand A B
Sample mean 2.1 2.9
Sample standard deviation 0.8 1.1
Sample size 10 10

Find a 90% confidence interval for the difference in mean shelf life between brand A and brand B
assuming that both samples are coming from normal distribution and both population variances are
equal.