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Chapter 8 Solution To Example Exercises PDF

This document discusses interval estimation and provides examples of calculating confidence intervals for means using z-scores and the standard error. It demonstrates how to determine confidence intervals for population means based on sample data when the population standard deviation is known and unknown. Examples are provided to illustrate margin of error calculations and how confidence intervals widen with increasing confidence levels.

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Shiela Rengel
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397 views3 pages

Chapter 8 Solution To Example Exercises PDF

This document discusses interval estimation and provides examples of calculating confidence intervals for means using z-scores and the standard error. It demonstrates how to determine confidence intervals for population means based on sample data when the population standard deviation is known and unknown. Examples are provided to illustrate margin of error calculations and how confidence intervals widen with increasing confidence levels.

Uploaded by

Shiela Rengel
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
Download as pdf or txt
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Chapter 8 Interval Estimation

Solutions:

1. a.  x   / n  5 / 40  .79

b. At 95%, z / n  196 . (5 / 40 )  155


.
Using Excel for the margin of error: CONFIDENCE.NORM(.05,5,40) = 1.55
2. a. 32  1.645 (6 / 50 )

32  1.4 or 30.6 to 33.4


Using Excel for the margin of error: CONFIDENCE.NORM(.10,6,50) = 1.40
b. 32  1.96 (6 / 50 )

32  1.66 or 30.34 to 33.66


Using Excel for the margin of error: CONFIDENCE.NORM(.05,6,50) = 1.66
c. 32  2.576 (6 / 50 )

32  2.19 or 29.81 to 34.19


Using Excel for the margin of error: CONFIDENCE.NORM(.01,6,50) = 2.19
3. a. 80  1.96 (15 / 60 )

80  3.8 or 76.2 to 83.8


Using Excel for the margin of error: CONFIDENCE.NORM(.05,15,60) = 3.8
b. 80  1.96 (15 / 120 )

80  2.68 or 77.32 to 82.68


Using Excel for the margin of error: CONFIDENCE.NORM(.05,15,120) = 2.68
c. Larger sample provides a smaller margin of error.

160  152
4. Sample mean x   156
2

Margin of Error = 160 – 156 = 4

1.96( / n )  4

n  1.96 / 4  1.96(15) / 4  7.35

n = (7.35)2 = 54

5. Using Excel and the webfile Houston, the sample mean is x  21.52 and the sample size is n = 64.
The population standard deviation   6 is known.
a. With 99% confidence z /2  z.005  2.576

Margin of Error = 2.576 / n  2.576(6 / 64)  1.93


Using Excel for the margin of error: CONFIDENCE.NORM(.01,6,64) = 1.93
b. Confidence Interval: 21.52  1.93 or 19.59 to 23.45

8-1
Chapter 8

6. A 95% confidence interval is of the form

x  z.025 ( / n )

Using Excel and the webfile TravelTax, the sample mean is x  40.31 and the sample size is n =
200. The population standard deviation   8.5 is known. The confidence interval is

40.31  1.96(8.5/ 200 )

40.31  1.18 or 39.13 to 41.49


Using Excel for the margin of error: CONFIDENCE.NORM(.05,8.5,200) = 1.18
7. Margin of error = z.025 ( / n )

z.025  1.96   $3300 n  50

Margin of error = 1.96(3300/ 50 ) = 914.71


Using Excel for the margin of error: CONFIDENCE.NORM(.05,3300,50) = 914.70

A larger sample size would be needed to reduce the margin of error. Section 8.3 can be used to show
that the sample size would need to be increased to n = 465.

1.96  3300  n  300

Solving for n shows n = 465

8. a. Since n is small, an assumption that the population is at least approximately normal is required so
that the sampling distribution of x can be approximated by a normal distribution.

b. Margin of error: z.025 ( / n )  1.96(5.5 / 10)  3.41


Using Excel for the margin of error: CONFIDENCE.NORM(.05,5.5,10) = 3.41

c. Margin of error: z.005 ( / n )  2.576(5.5 / 10)  4.48


Using Excel for the margin of error: CONFIDENCE.NORM(.01,5.5,10) = 4.48

9. Using Excel and the webfile Tobacco Fires, the sample mean is x  19100 and the sample size is
n = 55. The population standard deviation   3027 is known.

x  z.025 ( / n ) 19100.0  1.96 (3027 / 55)

19,100  800 or 18,300 to 19,900 dollars


Using Excel for the margin of error: CONFIDENCE.NORM(.05,3027,55) = 800

The entire 95% confidence interval estimate of the cost to repair smoke and fire damage that results
from home fires caused by careless use of tobacco products exceeds the mean cost to repair smoke
and fire damage that results from home fires of all causes ($11,398). These results suggest cost to
repair smoke and fire damage that results from home fires caused by careless use of tobacco
products is much greater than the cost to repair smoke and fire damage that results from home fires
of all causes.

8-2
Interval Estimation


10. a. x  z / 2
n

3486  1.645 (650 / 120)

3486  98 or $3388 to $3584


Using Excel for the margin of error: CONFIDENCE.NORM(.10,650,120) = 98
b. 3486  1.96 (650 / 120)

3486  116 or $3370 to $3602


Using Excel for the margin of error: CONFIDENCE.NORM(.05,650,120) = 116
c. 3486  2.576 (650 / 120)

3486  153 or $3333 to $3639


Using Excel for the margin of error: CONFIDENCE.NORM(.01,650,120) = 153

d. The confidence interval gets wider as we increase our confidence level. We need a wider interval to
be more confident that the interval will contain the population mean.

8-3

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