AC10410 and EC10910 Confidence Intervals Questions

1. A random sample of 100 invoices from a company averages 860.Past experience

suggests that the standard deviation is 60. Calculate a 95% confidence interval for
the expected amount.
[ (848.24 , 871.76) ]

2. In a Housing survey a random sample of 100 respondents had mortgages averaging

253 per month. It is known that the standard deviation for mortgages in this area is
70. Calculate a 95% confidence interval for the true mean amount paid per month.
[ (239.28 , 266.72) ]

3. A random sample of 300 components from a production line is selected for testing to
estimate the average length of life. The sample mean is 250 hours and the standard
deviation of the sample is 6 hours. Calculate a 99% confidence interval for the
expected lifetime of a component. [ (249.1hours, 250.9hours)]

4. A sample of 6 sales representatives is selected from a large company to try to estimate

the average daily mileage. The sample mean was found to be 340 miles with a
standard deviation of 60 miles. Calculate a 95% confidence interval for the true
average mileage.
[ ( 277.02 miles , 402.98 miles ) ]

5. A sample of 15 employees is selected at random from a large workforce to estimate

the average travel time to work for the workforce as a whole. The sample mean is
55minutes and the sample standard deviation is 13 minutes. Calculate 95% and 99%
confidence intervals for the expected travel time. [ (47.8mins , 62.2mins )
(45.01mins , 64.99mins ) ]