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    CHAPTER 8: CONFIDENCE INTERVAL ESTIMATION

    1. The width of a co fide ce i te!"a# e$ti%ate fo! a &!o&o!tio wi## 'ea( a!!owe! fo! ))* co fide ce tha fo! )+* co fide ce.

    '( wide! fo! a $a%e $i,e of 1-- tha fo! a $a%e $i,e of +-.c( a!!owe! fo! )-* co fide ce tha fo! )+* co fide ce.d( a!!owe! whe the $a%e &!o&o!tio i$ -.+- tha whe the $a%e &!o&o!tio i$ -. -.

    ANS/ER: c T0PE: MC DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 &!o&e!tie$3 width

    . /he dete!%i i 4 the $a%e $i,e fo! a &!o&o!tio fo! a 4i"e #e"e# of co fide ce a d $a%i 4 e!!o!3 the c#o$e! to -.+- that e$ti%ated to 'e3 the $a%e $i,e !e56i!ed 7777777777.a( i$ $%a##e!

    '( i$ #a!4e! c( i$ ot affectedd( ca 'e $%a##e!3 #a!4e! o! 6 affected

    ANS/ER: ' T0PE: MC DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 &!o&e!tie$

    . A ))* co fide ce i te!"a# e$ti%ate ca 'e i te!&!eted to %ea thata( if a## &o$$i'#e $a%e$ a!e ta9e a d co fide ce i te!"a# e$ti%ate$ a!e de"e#o&ed3 ))* of the% wo6#d i c#6de the t!6e

    &o&6#atio %ea $o%ewhe!e withi thei! i te!"a#. '( we ha"e ))* co fide ce that we ha"e $e#ected a $a%e who$e i te!"a# doe$ i c#6de the &o&6#atio %ea .c( oth of the a'o"e.d( No e of the a'o"e.

    ANS/ER: c T0PE: MC DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 i te!&!etatio

    ;. If . It i$ de$i!ed to e$ti%ate the a"e!a4e tota# co%&e $atio of CEO$ i the Se!"ice i d6$t!* co fide ce i te!"a# wa$ ca#c6#ated to 'e B 31813 ?-3 +38 ?318-(. /hich of the fo##owi 4 i te!&!etatio $ i$co!!ecta( )>* of the $a%ed tota# co%&e $atio "a#6e$ fe## 'etwee 31813 ?- a d +38 ?318-.

    '( /e a!e )>* co fide t that the %ea of the $a%ed CEO$ fa##$ i the i te!"a# 31813 ?- to +38 ?318-.c( I the &o&6#atio of Se!"ice i d6$t!< CEO$3 )>* of the% wi## ha"e tota# co%&e $atio $ that fa## i the i te!"a# 31813

    to +38 ?318-.d( /e a!e )>* co fide t that the a"e!a4e tota# co%&e $atio of a## CEO$ i the Se!"ice i d6$t!< fa##$ i the i te!"a#

    31813 ?- to +38 ?318-.ANS/ER: d T0PE: MC DIFFIC LT0: Diffic6#t 2E0/ORDS: co fide ce i te!"a#3 i te!&!etatio

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    8. It i$ de$i!ed to e$ti%ate the a"e!a4e tota# co%&e $atio of CEO$ i the Se!"ice i d6$t!* co fide ce i te!"a# wa$ ca#c6#ated to 'e B 31813 ?-3 +38 ?318-(. a$ed o the i te!"a# a'o"e3 do 8* co fide t of it.c( I a% )>* co fide t that the a"e!a4e co%&e $atio i$ 3---3---.d( I ca ot co c#6de that the a"e!a4e e ceed$ 3---3--- at the )>* co fide ce #e"e#.

    ANS/ER: d T0PE: MC DIFFIC LT0: Diffic6#t 2E0/ORDS: co fide ce i te!"a#3 i te!&!etatio

    ). A co fide ce i te!"a# wa$ 6$ed to e$ti%ate the &!o&o!tio of $tati$tic$ $t6de t$ that a!e fe%a#e$. A !a do% $a%e of > $tati$t$t6de t$ 4e e!ated the fo##owi 4 )-* co fide ce i te!"a#: B-.; 83 -.?; (. a$ed o the i te!"a# a'o"e3 i$ the &o&6#atio

    &!o&o!tio of fe%a#e$ e56a# to -.?-a( No3 a d we a!e )-* $6!e of it.

    '( No. The &!o&o!tio i$ +;.1>*.c( Ma

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    '( wide! c( #e$$ $i4 ifica td( 'ia$ed

    ANS/ER: a T0PE: MC DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&e!tie$3 width

    1?. A %a o! de&a!t%e t $to!e chai i$ i te!e$ted i e$ti%ati 4 the a"e!a4e a%o6 t it$ c!edit ca!d c6$to%e!$ $&e t o thei! fi!$t "i$itto the chai @$ ew $to!e i the %a##. Fiftee c!edit ca!d acco6 t$ we!e !a do%#< $a%ed a d a a#. A %a o! de&a!t%e t $to!e chai i$ i te!e$ted i e$ti%ati 4 the a"e!a4e a%o6 t it$ c!edit ca!d c6$to%e!$ $&e t o thei! fi!$t "i$itto the chai @$ ew $to!e i the %a##. Fiftee c!edit ca!d acco6 t$ we!e !a do%#< $a%ed a d a a#+

    c( 1; .-;d( 8

    ANS/ER: ' T0PE: MC DIFFIC LT0: Ea$< 2E0/ORDS: &oi t e$ti%ate3 %ea

    1). P!i"ate co##e4e$ a d 6 i"e!$itie$ !e#< o %o e< co t!i'6ted '< i di"id6a#$ a d co!&o!atio $ fo! thei! o&e!ati 4 e &e $e$. M6chof thi$ %o e< i$ &6t i to a f6 d ca##ed a e dow%e t3 a d the co##e4e $&e d$ o #< the i te!e$t ea! ed '< the f6 d. A !ece t$6!"e< of 8 &!i"ate co##e4e$ i the ited State$ !e"ea#ed the fo##owi 4 e dow%e t$ Bi %i##io $ of do##a!$(: ?-. 3 ;>.-3 +.;)-.-3 1 .?3 1>>.+3 )+.;3 a d -.-. S6%%a!< $tati$tic$ + a d s = 1;8.-; . Ca#c6#ate a )+*co fide ce i te!"a# fo! the %ea e dow%e t of a## the &!i"ate co##e4e$ i the ited State$ a$$6%i 4 a o!%a# di$t!i'6tio fo!the e dow%e t$.a( 18-.)>+ );.-??

    '( 18-.)>+ )).1c( 18-.)>+ 11?.? 1d( 18-.)>+ 11).+8?

    ANS/ER: d T0PE: MC DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 %ea 3 t di$t!i'6tio

    -. A 6 i"e!$it< $

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    that the $a%e $ta da!d de"iatio &!o"ided a 4ood e$ti%ate fo! the &o&6#atio $ta da!d de"iatio . How #a!4e a tota# $a%ewo6#d the< eed to ta9e

    ANS/ER: n = - T0PE: PR DIFFIC LT0: Ea$< 2E0/ORDS: %ea 3 $a%e $i,e dete!%i atio

    1. A$ a aid to the e$ta'#i$h%e t of &e!$o e# !e56i!e%e t$3 the di!ecto! of a ho$&ita# wi$he$ to e$ti%ate the %ea 6%'e! of &eoe who a!e ad%itted to the e%e!4e c< !oo% d6!i 4 a ; ho6! &e!iod. The di!ecto! !a do%#< $e#ect$ ?; diffe!e t ; ho6! &e!iod$ a d dete!%i e$ the 6%'e! of ad%i$$io $ fo! each. Fo! thi$ $a%e3 X = 1).8 a d s = +. /hich of the fo##owi 4a$$6%&tio $ i$ ece$$a!< i o!de! fo! a co fide ce i te!"a# to 'e "a#id

    a( The &o&6#atio $a%ed f!o% ha$ a a&&!o i%ate o!%a# di$t!i'6tio . '( The &o&6#atio $a%ed f!o% ha$ a a&&!o i%atet di$t!i'6tio .c( The %ea of the $a%e e56a#$ the %ea of the &o&6#atio .d( No e of the$e a$$6%&tio $ a!e ece$$a! o! -.+ -.?;>T0PE: PR DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio

    +. A 6 i"e!$it< dea i$ i te!e$ted i dete!%i i 4 the &!o&o!tio of $t6de t$ who !ecei"e $o%e $o!t of fi a cia# aid. Rathe! thae a%i e the !eco!d$ fo! a## $t6de t$3 the dea !a do%#< $e#ect$ -- $t6de t$ a d fi d$ that 118 of the% a!e !ecei"i 4 fi a cia#aid. The )+* co fide ce i te!"a# fo! p i$ -.+) -.->. I te!&!et thi$ i te!"a#.a( /e a!e )+* co fide t that the t!6e &!o&o!tio of a## $t6de t$ !ecei"i 4 fi a cia# aid i$ 'etwee -.+ a d -.??.

    '( )+* of the $t6de t$ 4et 'etwee + * a d ??* of thei! t6itio &aid fo! '< fi a cia# aid.c( /e a!e )+* co fide t that 'etwee + * a d ??* of the $a%ed $t6de t$ !ecei"e $o%e $o!t of fi a cia# aid.d( /e a!e )+* co fide t that +)* of the $t6de t$ a!e o $o%e $o!t of fi a cia# aid.

    ANS/ER: a T0PE: MC DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 i te!&!etatio

    ?. A 6 i"e!$it< dea i$ i te!e$ted i dete!%i i 4 the &!o&o!tio of $t6de t$ who !ecei"e $o%e $o!t of fi a cia# aid. Rathe! thae a%i e the !eco!d$ fo! a## $t6de t$3 the dea !a do%#< $e#ect$ -- $t6de t$ a d fi d$ that 118 of the% a!e !ecei"i 4 fi a cia#aid. If the dea wa ted to e$ti%ate the &!o&o!tio of a## $t6de t$ !ecei"i 4 fi a cia# aid to withi * with ))* !e#ia'i#it8;c( n = 13+-d( n = 13; +

    ANS/ER: ' T0PE: MC DIFFIC LT0: Mode!ate 2E0/ORDS: &!o&o!tio 3 $a%e $i,e dete!%i atio

    >. A eco o%i$t i$ i te!e$ted i $t6d

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    Confidence Interval Estimation 228

    8. A eco o%i$t i$ i te!e$ted i $t6d

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    ANS/ER: ? T0PE: FI DIFFIC LT0: Ea$< 2E0/ORDS: %ea 3 $a%e $i,e dete!%i atio

    +. Refe!!i 4 to Ta'#e 8 3 d6e to fi a cia# #i%itatio $3 the %a a4e!$ decide to ta9e a $a%e of ;+ e%o. Refe!!i 4 to Ta'#e 8 3 the c!itica# "a#6e to 6$e i o'tai i 4 the co fide ce i te!"a# i$ 77777777.ANS/ER: .+8 T0PE: FI DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 %ea 3 $ta da!di,ed o!%a# di$t!i'6tio

    8. Refe!!i 4 to Ta'#e 8 3 the co fide ce i te!"a# 4oe$ f!o% 77777777 to 77777777.ANS/ER: 1 .-) to 1 .1)T0PE: FI DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 %ea 3 $ta da!di,ed o!%a# di$t!i'6tio

    ). Refe!!i 4 to Ta'#e 8 3 $6&&o$e the e 4i ee! had decided to e$ti%ate the %ea #e 4th to withi -.- with ))* co fide ce. Thethe $a%e $i,e wo6#d 'e 77777777.

    ANS/ER: 1?+.8> ; !o6 d$ 6& to 1?? T0PE: FI DIFFIC LT0: Mode!ate 2E0/ORDS: %ea 3 $a%e $i,e dete!%i atio

    TA LE 8 ;

    To 'eco%e a act6a!. ; T0PE: FI DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 %ea 3 t di$t!i'6tio;;. S6&&o$e a de&a!t%e t $to!e wa t$ to e$ti%ate the a"e!a4e a4e of the c6$to%e!$ of it$ co te%&o!a!< a&&a!e# de&a!t%e t3 co!!ec

    to withi

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    ;+. Refe!!i 4 to Ta'#e 8 +3 a co fide ce i te!"a# fo! thi$ $a%e wo6#d 'e 'a$ed o the t di$t!i'6tio with 7777777777 de4!ee$ off!eedo%.

    ANS/ER: ? T0PE: FI DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 %ea 3 t di$t!i'6tio

    ;?. Refe!!i 4 to Ta'#e 8 +3 the c!itica# "a#6e fo! a ))* co fide ce i te!"a# fo! thi$ $a%e i$ 7777777777.ANS/ER: .>->; T0PE: FI DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 %ea 3 t di$t!i'6tio

    ;>. Refe!!i 4 to Ta'#e 8 +3 a ))* co fide ce i te!"a# fo! the %ea "o#ta4e of the &owe! &ac9$ i$ f!o% 7777777777 to 7777777777.ANS/ER: 11.? ?> to 1 .-8)1 T0PE: FI DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 %ea 3 t di$t!i'6tio2E0/ORDS: co fide ce i te!"a#3 %ea 3 i te!&!etatio

    ;8. A &!i$o officia# wa t$ to e$ti%ate the &!o&o!tio of ca$e$ of !ecidi"i$%. E a%i i 4 the !eco!d$ of +- co "ict$3 the officia#dete!%i e$ that the!e a!e ?+ ca$e$ of !ecidi"i$%. A co fide ce i te!"a# wi## 'e o'tai ed fo! the &!o&o!tio of ca$e$ of !ecidi"i$%.Pa!t of thi$ ca#c6#atio i c#6de$ the e$ti%ated $ta da!d e!!o! of the $a%e &!o&o!tio . Fo! thi$ $a%e3 the e$ti%ated $ta da!e!!o! i$ 7777777777.

    ANS/ER: -.- 8 T0PE: FI DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio

    ;). A &!i$o officia# wa t$ to e$ti%ate the &!o&o!tio of ca$e$ of !ecidi"i$%. E a%i i 4 the !eco!d$ of +- co "ict$3 the officia#dete!%i e$ that the!e a!e ?+ ca$e$ of !ecidi"i$%. A ))* co fide ce i te!"a# fo! the &!o&o!tio of ca$e$ of !ecidi"i$% wo6#d 4of!o% 7777777777 to 7777777777.

    ANS/ER: -.18) to -. 1 T0PE: FI DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio

    +-. The head of a co%&6te! $cie ce de&a!t%e t i$ i te!e$ted i e$ti%ati 4 the &!o&o!tio of $t6de t$ e te!i 4 the de&a!t%e t whowi## choo$e the ew co%&6te! e 4i ee!i 4 o&tio . S6&&o$e the!e i$ o i fo!%atio a'o6t the &!o&o!tio of $t6de t$ who %i4htchoo$e the o&tio . /hat $i,e $a%e $ho6#d the de&a!t%e t head ta9e if $he wa t$ to 'e )+* co fide t that the e$ti%ate i$ withi-.1- of the t!6e &!o&o!tio

    ANS/ER: )> T0PE: PR DIFFIC LT0: Mode!ate 2E0/ORDS: &!o&o!tio 3 $a%e $i,e dete!%i atio

    +1. The head of a co%&6te! $cie ce de&a!t%e t i$ i te!e$ted i e$ti%ati 4 the &!o&o!tio of $t6de t$ e te!i 4 the de&a!t%e t whowi## choo$e the ew co%&6te! e 4i ee!i 4 o&tio . A &!e#i%i a!< $a%e i dicate$ that the &!o&o!tio wi## 'e a!o6 d -. +.The!efo!e3 what $i,e $a%e $ho6#d the de&a!t%e t head ta9e if $he wa t$ to 'e )+* co fide t that the e$ti%ate i$ withi -.1- of the t!6e &!o&o!tio

    ANS/ER: > T0PE: PR DIFFIC LT0: Ea$< 2E0/ORDS: &!o&o!tio 3 $a%e $i,e dete!%i atio

    TA LE 8 8

    A hote# chai wa t$ to e$ti%ate the a"e!a4e 6%'e! of !oo%$ !e ted dai#< i each %o th. The &o&6#atio of !oo%$ !e ted dai#< i$a$$6%ed to 'e o!%a##< di$t!i'6ted fo! each %o th with a $ta da!d de"iatio of ; !oo%$.

    + . Refe!!i 4 to Ta'#e 8 83 d6!i 4 a 6a! to eithe! $ide of the $a%e &!o&o!tioHow #a!4e a $a%e %6$t 'e ta9e to a$$6!e the$e co ditio $ a!e %et

    ANS/ER: 1)? T0PE: PR DIFFIC LT0: Ea$< 2E0/ORDS: &!o&o!tio 3 $a%e $i,e dete!%i atio

    ++. The co6 t< c#e!9 wa t$ to e$ti%ate the &!o&o!tio of !eti!ed "ote!$ who wi## eed $&ecia# e#ectio faci#itie$. S6&&o$e a $a%&;-- !eti!ed "ote!$ wa$ ta9e . If 1+- eed $&ecia# e#ectio faci#itie$3 ca#c6#ate a 8-* co fide ce i te!"a# fo! the &o&6#atio

    &!o&o!tio .ANS/ER: -. ;; to -.;-? T0PE: PR DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio

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    TA LE 8 )

    A wea#th< !ea# e$tate i "e$to! wa t$ to decide whethe! it i$ a 4ood i "e$t%e t to '6i#d a hi4h e d $ho&&i 4 co%e i a $6'6!'aco6 t< i Chica4o. Hi$ %ai co ce! i$ the tota# %a!9et "a#6e of the 3?-+ ho6$e$ i the $6'6!'a co6 t31+).8?T0PE: PR DIFFIC LT0: Mode!ateEJPLANATION: Thi$ co fide ce i te!"a# i$ co%&6ted with the t c!itica# "a#6e of 1.?+ +;?>;> o'tai ed i E ce#.2E0/ORDS: co fide ce i te!"a#3 tota# diffe!e ce3 fi ite &o&6#atio co!!ectio

    ?-. Refe!!i 4 to Ta'#e 8 )3 what wi## 'e the )-* co fide ce i te!"a# fo! the &o&6#atio &!o&o!tio of ho6$e$ that wi## 'e a&&!ai$edfo! hi4he! tha the %a!9et &!ice$

    ANS/ER: -.1)1> to -. 88T0PE: PR DIFFIC LT0: Mode!ateEJPLANATION: Thi$ i$ a co fide ce i te!"a# e$ti%ate fo! the &!o&o!tio with fi ite &o&6#atio co!!ectio facto!.2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 fi ite &o&6#atio co!!ectio

    ?1. A 56a#it< co t!o# e 4i ee! i$ i te!e$ted i e$ti%ati 4 the &!o&o!tio of defecti"e ite%$ co%i 4 off a &!od6ctio #i e. I a $a%of -- ite%$3 > a!e defecti"e. A )-* co fide ce i te!"a# fo! the &!o&o!tio of defecti"e$ f!o% thi$ &!od6ctio #i e wo6#d 4of!o% 7777777777 to 7777777777.

    ANS/ER: -.-? to -.11> T0PE: FI DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio

    TA LE 8 1-

    The &!e$ide t of a 6 i"e!$it< wo6#d #i9e to e$ti%ate the &!o&o!tio of the $t6de t &o&6#atio who ow $ a &e!$o a# co%&6te!. I a$a%e of +-- $t6de t$3 ;1> ow a &e!$o a# co%&6te!.

    ? . T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 the &a!a%ete! of i te!e$t i$ the a"e!a4e 6%'e! of $t6de t$ i the &o&6#atio who ow a &e!$o a# co%&6te!.

    ANS/ER: Fa#$e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 &a!a%ete!

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    Confidence Interval Estimation 232

    ? . T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 the &a!a%ete! of i te!e$t i$ the &!o&o!tio of $t6de t &o&6#atio who ow a &e!$o a#co%&6te!.

    ANS/ER: T!6e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 &a!a%ete!

    ?;. Refe!!i 4 to Ta'#e 8 1-3 the c!itica# "a#6e fo! a ))* co fide ce i te!"a# fo! thi$ $a%e i$ 7777777777.ANS/ER: .+>+8 T0PE: FI DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio

    ?+. Refe!!i 4 to Ta'#e 8 1-3 a ))* co fide ce i te!"a# fo! the &!o&o!tio of $t6de t &o&6#atio who ow a &e!$o a# co%&6te! i$f!o% 7777777777 to 7777777777.

    ANS/ER: -.>)11 to -.8>?) T0PE: FI DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio

    ??. Refe!!i 4 to Ta'#e 8 1-3 the $a%i 4 e!!o! of a ))* co fide ce i te!"a# fo! the &!o&o!tio of $t6de t &o&6#atio who ow a &e!$o a# co%&6te! i$ 7777777777.

    ANS/ER: -.-; 8? T0PE: FI DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 $a%i 4 e!!o!

    ?>. T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 a )+* co fide ce i te!"a# fo! the &!o&o!tio of $t6de t &o&6#atio who ow a &e!$o a#co%&6te! i$ a!!owe! tha a ))* co fide ce i te!"a#.

    ANS/ER: T!6e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 &!o&e!tie$3 width

    ?8. T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 a ))* co fide ce i te!"a# wi## co tai ))* of the $t6de t &o&6#atio who ow a &e!$o a# co%&6te!.

    ANS/ER: Fa#$e T0PE: TF DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 i te!&!etatio

    ?). T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 a co fide ce i te!"a# e$ti%ate of the &o&6#atio &!o&o!tio wo6#d o #< 'e "a#id if thedi$t!i'6tio of the 6%'e! of $t6de t$ who ow a &e!$o a# co%&6te! i$ o!%a#.

    ANS/ER: Fa#$e T0PE: TF DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio

    >-. T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 a )-* co fide ce i te!"a# ca#c6#ated f!o% the $a%e data wo6#d 'e a!!owe! tha a ))*co fide ce i te!"a#.

    ANS/ER: T!6e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 &!o&e!tie$3 width

    >1. T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 it i$ &o$$i'#e that the ))* co fide ce i te!"a# ca#c6#ated f!o% the data wi## ot co taithe $a%e &!o&o!tio of $t6de t$ who ow a &e!$o a# co%&6te!.

    ANS/ER: Fa#$e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 i te!&!etatio

    > . T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 it i$ &o$$i'#e that the ))* co fide ce i te!"a# ca#c6#ated f!o% the data wi## ot co taithe &!o&o!tio of $t6de t &o&6#atio who ow a &e!$o a# co%&6te!.

    ANS/ER: T!6e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 i te!&!etatio

    > . T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 we a!e ))* co fide t that the a"e!a4e 6%'e!$ of $t6de t &o&6#atio who ow a &e!$o a# co%&6te! i$ 'etwee -.>)11 a d -.8>?).

    ANS/ER: Fa#$e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 i te!&!etatio

    >;. T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1-3 we a!e ))* co fide t that 'etwee >).11* a d 8>.?)* of the $t6de t &o&6#atio ow a &e!$o a# co%&6te!.

    ANS/ER: T!6e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 i te!&!etatio

    TA LE 8 11

    The $6&e!i te de t of a 6 ified $choo# di$t!ict of a $%a## tow wa t$ to %a9e $6!e that o %o!e tha +* of the $t6de t$ $9i& %o!etha 1- da

  • 7/21/2019 8. Confidence Interval Estimationnew.doc

    10/12

    233 Confidence Interval Estimation

    >?. Refe!!i 4 to Ta'#e 8 113 what i$ the 6&&e! 'o6 d of the )+* o e $ided co fide ce i te!"a# fo! the &!o&o!tio of $t6de t$ who$9i&&ed %o!e tha 1- da). Refe!!i 4 to Ta'#e 8 1 3 what i$ the 6&&e! 'o6 d of the )-* o e $ided co fide ce i te!"a# fo! the &!o&o!tio of $t6de t$ whohad 6$ed i##icit d!64 d6!i 4 the #a$t 1 %o th$

    ANS/ER: -.-;-+ T0PE: PR DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 o e $ided

    8-. T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1 3 the &!e$ide t ca 'e )-* co fide t that o %o!e tha +* of the $t6de t$ at the 6 i"e!$it. Refe!!i 4 to Ta'#e 8 1 3 the $a%i 4 e!!o! of a ))* co fide ce i te!"a# fo! the &!o&o!tio of $t6de t &o&6#atio who fee#co%fo!ta'#e !e&o!ti 4 cheati 4 '< thei! fe##ow $t6de t$ i$ 7777777777.

    ANS/ER: -.- ; T0PE: FI DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 $a%i 4 e!!o!

    88. T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1 3 a )+* co fide ce i te!"a# fo! the &!o&o!tio of $t6de t &o&6#atio who fee# co%fo!ta'#!e&o!ti 4 cheati 4 '< thei! fe##ow $t6de t$ i$ a!!owe! tha a ))* co fide ce i te!"a#.

    ANS/ER: T!6e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 &!o&e!tie$3 width

    8). T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1 3 a ))* co fide ce i te!"a# wi## co tai ))* of the $t6de t &o&6#atio who fee#co%fo!ta'#e !e&o!ti 4 cheati 4 '< thei! fe##ow $t6de t$.

    ANS/ER: Fa#$e T0PE: TF DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 i te!&!etatio

    )-. T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1 3 a co fide ce i te!"a# e$ti%ate of the &o&6#atio &!o&o!tio wo6#d o #< 'e "a#id if thedi$t!i'6tio of the 6%'e! of $t6de t$ who fee# co%fo!ta'#e !e&o!ti 4 cheati 4 '< thei! fe##ow $t6de t$ i$ o!%a#.

    ANS/ER: Fa#$e T0PE: TF DIFFIC LT0: Mode!ate 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio

    )1. T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1 3 a )-* co fide ce i te!"a# ca#c6#ated f!o% the $a%e data wo6#d 'e a!!owe! tha a ))*co fide ce i te!"a#.

    ANS/ER: T!6e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 &!o&e!tie$3 width

    ) . T!6e o! Fa#$e: Refe!!i 4 to Ta'#e 8 1 3 it i$ &o$$i'#e that the ))* co fide ce i te!"a# ca#c6#ated f!o% the data wi## ot co taithe $a%e &!o&o!tio of $t6de t$ who fee# co%fo!ta'#e !e&o!ti 4 cheati 4 '< thei! fe##ow $t6de t$.

    ANS/ER: Fa#$eT0PE: TF DIFFIC LT0: Mode!ateEJPLANATION: The co fide ce i te!"a# a#wa* a d +-.; * of the $t6de t &o&6#atio fee#co%fo!ta'#e !e&o!ti 4 cheati 4 '< thei! fe##ow $t6de t$.

    ANS/ER: T!6e T0PE: TF DIFFIC LT0: Ea$< 2E0/ORDS: co fide ce i te!"a#3 &!o&o!tio 3 i te!&!etatio

    TA LE 8 1;

    The &!e$ide t of a 6 i"e!$it< i$ co ce! ed that the &e!ce ta4e of $t6de t$ who ha"e cheated o a e a% i$ hi4he! tha the 1*acce&ta'#e #e"e#. A co fide tia# !a do% $a%e of 1--- $t6de t$ f!o% a &o&6#atio of >--- !e"ea#ed that ? of the% $aid that the