STATS DOESNT SUCK!

~ CHAPTER 10
CHAPTER 10 - ESTIMATE OF ONE POPULATION MEAN
1.
A bank manager wishes to know the average yearly return on
the index funds that are sold at his branch. In a random sample of 60
of these funds he finds a mean return of 11.8%. If we assume that the
population standard deviation is 4%, estimate with 95% confidence
the mean yearly return on all their index funds.

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STATS DOESNT SUCK! ~ CHAPTER 10

Quick Reference Table: Estimation Z-Scores:

z 2

.90

.10

.05

z.05 = 1.645

.95

.05

.025

z.025 = 1.96

.98

.02

.01

z.01 = 2.33

.99

.01

.005

z.005 = 2.575

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STATS DOESNT SUCK! ~ CHAPTER 10

2.
The amount of time that dog owners in the city spend walking
their dog each week is normally distributed with a standard deviation
of 1.5 hours. A sample of 100 dog owners is selected at random, and
the sample mean computed as 6.5 hours.
a)

Determine the 95% confidence interval estimate of the

population mean.

b)

Interpret the 95% confidence interval for this situation.

c)

Determine and interpret the 99% confidence interval estimate of

the population mean.

d)

Determine and interpret the 90% confidence interval estimate of

the population mean.

e)

Determine the 95% confidence interval estimate of the

population mean if the sample size is changed to 300.

f)

Determine the 95% confidence interval estimate of the

population mean if the sample size is changed to 36.

g)

Determine the 95% confidence interval estimate of the

population mean if the population standard deviation is
changed to 2.

h)

Determine the 95% confidence interval estimate of the

population mean if the population standard deviation is
changed to 1.2.

i)

Determine the 95% confidence interval estimate of the

population mean if the sample mean is changed to 5.0 hours.

j)

Determine the 95% confidence interval estimate of the

population mean if the sample mean is changed to 8.5 hours.

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STATS DOESNT SUCK! ~ CHAPTER 10

CHAPTER 10 - MINIMUM SAMPLE SIZE CALCULATION

3.
A consumer advocacy group is doing a large study on car rental
practices. Among other things, the consumer group would like to
estimate the mean monthly mileage, , of cars rented in the U.S. over
the past year. The consumer group plans to choose a random sample
of monthly U.S. rental car mileages and then estimate using the
mean of the sample.
Using the value 800 miles per month as the standard deviation of
monthly U.S. rental car mileages from the past year, what is the
minimum sample size needed in order for the consumer group to be
99% confident that its estimate is within 175 miles per month of ?

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STATS DOESNT SUCK! ~ CHAPTER 10

MULTIPLE CHOICE QUESTIONS
In the following multiple-choice questions, please circle the correct
answer.
001. The term 1- refers to:
a. the probability that a confidence interval does not contain the
population parameter
b. the level of confidence
c. the level of unbiasedness
d. the level of consistency
002. The letter in the formula for constructing a confidence interval
estimate of the population mean is
a. the level of confidence
b. the probability that a confidence interval will contain the
population mean
c. the probability that a confidence interval will not contain the
population mean
d. the area in the lower tail of the sampling distribution of the
sample mean
003. A 90% confidence interval estimate of the population mean
can be interpreted to mean that:
a. if we repeatedly draw samples of the same size from the
same population, 90% of the values of the sample means
x will result in a confidence interval that includes the
population mean .
b. there is a 90% probability that the population mean will lie
between the lower confidence limit (LCL) and the upper
confidence limit (UCL).
c. we are 90% confident that we have selected a sample
whose range of values does not contain the population mean
.
d. We are 90% confident that 10% the values of the sample
means x will result in a confidence interval that includes the
population mean .

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STATS DOESNT SUCK! ~ CHAPTER 10

004. Which of the following statements is false?
a. The width of a confidence interval estimate of the population
mean narrows when the sample size increases
b. The width of a confidence interval estimate of the population
mean narrows when the value of the sample mean increases
c. The width of a confidence interval estimate of the population
mean widens when the confidence level increases
d. All of the above statements are true

005. Which of the following statements is false?

a. The sample size needed to estimate a population mean is
directly proportional to the population variance
b. The sample size needed to estimate a population mean is
directly proportional to the square of the standard normal
cutoff value z / 2
c. The sample size needed to estimate a population mean is
directly proportional to the square of the maximum allowable
error W
d. All of the above statements are true
006. A 98% confidence interval estimate for a population mean is
determined to be 75.38 to 86.52. If the confidence level is
reduced to 90%, the confidence interval for
a. becomes wider
b. remains the same
c. becomes narrower
d. none of the above answers is correct

007. The z value for a 96.6% confidence interval estimate is

a. 2.12
b. 1.82
c. 2.00
d. 1.96

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STATS DOESNT SUCK! ~ CHAPTER 10

008. In developing an interval estimate for a population mean, the
population standard deviation was assumed to be 10. The
interval estimate was 50.92 2.14. Had equaled 20, the
interval estimate would be
a. 60.92 2.14
b. 50.92 12.14
c. 101.84 4.28
d. 50.92 4.28

009. In developing an interval estimate for a population mean, a

sample of 50 observations was used. The interval estimate was
19.76 1.32. Had the sample size been 200 instead of 50, the
interval estimate would have been
a. 19.76 .33
b. 19.76 .66
c. 9.88 1.32
d. 4.94 1.32

010. After constructing a confidence interval estimate for a

population mean, you believe that the interval is useless
because it is too wide. In order to correct this problem, you
need to:
a. increase the population standard deviation
b. increase the sample size
c. increase the level of confidence
d. increase the sample mean

011. In developing an interval estimate for a population mean, the

interval estimate was 62.84 to 69.46. The population standard
deviation was assumed to be 6.50, and a sample of 100
observations was used. The mean of the sample was
a. 56.34
b. 62.96
c. 13.24
d. 66.15

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STATS DOESNT SUCK! ~ CHAPTER 10

012. A point estimate is defined as:
a. the average of the sample values
b. the average of the population values
c. a single value that is the best estimate of an unknown
population parameter
d. a single value that is the best estimate of an unknown
sample statistic

013. 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

014. An estimator is said to be consistent if:

a. it is an unbiased estimator
b. the variance of the estimator is close to one
c. the expected value of the estimator is known and positive
d. it is an unbiased estimator and the difference between the
estimator and the population parameter grows smaller as the
sample size grows larger

015. If there are two unbiased estimators of a population parameter,

the one whose variance is smaller is said to be:
a. a biased estimator
b. relatively efficient
c. consistent
d. relatively unbiased

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STATS DOESNT SUCK! ~ CHAPTER 10

016. Which of the following statements is (are) true?
a. The sample mean is relatively more efficient than the sample
median
b. The sample median is relatively more efficient than the
sample mean
c. The sample variance is relatively more efficient than the
sample variance
d. All of the above statements are true

017. The problem with relying on a point estimate of a population

parameter is that:
a. it has no variance
b. it might be unbiased
c. it might not be relatively efficient
d. it does not tell us how close or far the point estimate might
be from the parameter

018. A confidence interval is defined as:

a. a point estimate plus or minus a specific level of confidence
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

019. Which of the following assumptions must be true in order to use

the formula x z / 2 / n to find a confidence interval estimate of
the population mean?
a. The population variance is known
b. The population mean is known
c. The population is normally distributed
d. The confidence level is greater than 90%

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STATS DOESNT SUCK! ~ CHAPTER 10

020. In the formula x z / 2 / n , the / 2 refers to:
a. the probability that the confidence interval will contain the
population mean
b. the probability that the confidence interval will not contain the
population mean
c. the area in the lower tail or upper tail of the sampling
distribution of the sample mean
d. the level of confidence

021. Which of the following is not a part of the formula for

constructing a confidence interval estimate of the population
mean?
a. A point estimate of the population mean
b. The standard error of the sampling distribution of the sample
mean
c. The confidence level
d. The value of the population mean

022. The larger the level of confidence used in constructing a

confidence interval estimate of the population mean, the:
a. smaller the probability that the confidence interval will
contain the population mean
b. smaller the value of z / 2
c. wider the confidence interval
d. narrower the confidence interval

Chapter 10 MCQ Answer Key

001 b

002 c

003 a

004 b

005 c

006 c

007 a

008 d

009 b

010 b

011 d

012 c

013 a

014 d

015 b

016 a

017 d

018 b

019 a

020 c

021 d

022 c

10

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